diff --git a/reports/Annual Consolidated OAG audit reports 2021/Annual Consolidated OAG audit reports 2021.chunks.json b/reports/Annual Consolidated OAG audit reports 2021/Annual Consolidated OAG audit reports 2021.chunks.json new file mode 100644 index 0000000000000000000000000000000000000000..de5db6be968bb79741736da68b4ecf814273e7c3 --- /dev/null +++ b/reports/Annual Consolidated OAG audit reports 2021/Annual Consolidated OAG audit reports 2021.chunks.json @@ -0,0 +1 @@ +[{"content": "THE REPUBLIC OF UGANDA \n \n \n \n \n \n \nREPORT OF THE AUDITOR GENERAL TO PARLIAMENT \nFOR THE FINANCIAL YEAR ENDED 30TH JUNE 2021 \n \n \n \n \n \n \n \n \n \nOFFICE OF THE AUDITOR GENERAL \nUGANDA \n \n \n \n \n \nDECEMBER, 2021 \nii \niii \n \n \nTABLE OF CONTENTS \n \nLIST OF ACRONYMS ......................................................................................................................... ix \nGLOSSARY OF TERMS ....................................................................................................................... xi \nFOREWORD BY THE AUDITOR GENERAL ............................................................................................. xii \nPART 1: INTRODUCTION AND PURPOSE OF THE REPORT ......................................................................... 1 \n1.0 INTRODUCTION AND PURPOSE ...................................................................................................... 1 \n1.1 General Introduction .................................................................................................................... 1 \n1.2 Purpose ..................................................................................................................................... 1 \n1.3 Summary of Audit Results .............................................................................................................. 2 \n1.3.1 \nGeneral Performance ........................................................................................................... 2 \n1.3.2", "metadata": {"page": 0, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "1.3.2 \nSummary of Opinions ........................................................................................................... 3 \nPART 2: CONSOLIDATED FINANCIAL STATEMENTS.................................................................................. 4 \n2.0 REPORT OF THE AUDITOR GENERAL ON THE CONSOLIDATED FINANCIAL STATEMENTS .................. 4", "metadata": {"page": 2, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "2.1 REPORT AND OPINION OF THE AUDITOR GENERAL ON THE GOVERNMENT OF UGANDA \nCONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH JUNE 2021 .................................... 4 \nOpinion\u2026.. ..\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026..4 \nBasis for Opinion ............................................................................................................................... 4 \nKey Audit Matter ............................................................................................................................... 4 \n2.1.1. \nImplementation of the approved budget .................................................................................. 4 \n2.1.2. \n2.1.2. \nCOVID 19 expenditure ....................................................................................................... 11 \n2.1.3. \nCompensations/Acquisition of Right of Way for Selected Transmission Lines Projects ....................... 14 \nEmphasis of Matter .......................................................................................................................... 16 \nOther Matter .................................................................................................................................. 17 \n2.1.4. \n2.1.4. \nTax policy ........................................................................................................................ 17 \n2.1.5. \n2.1.5. \nAudit of public debt ........................................................................................................... 19 \n2.1.6. \nManagement of ICT in government ....................................................................................... 25 \n2.1.7. \n2.1.7. \nAudit of public investments ................................................................................................. 27 \n2.1.8. \nContinued expenditure off the IFMS \u2013 UGX. 695,372,792,876 ..................................................... 30", "metadata": {"page": 2, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Other Information ........................................................................................................................... 31 \nResponsibilities of Management for the Consolidated Financial Statements .................................................. 31 \nAuditor\u2019s Responsibilities for the Audit of the Consolidated Financial Statements ........................................... 32 \nOther Reporting Responsibilities ......................................................................................................... 33", "metadata": {"page": 2, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "iv \n \nReport on the Audit of Compliance with Legislation ................................................................................ 33 \n2.1.9. \nUse of prior financial years unspent funds .............................................................................. 33 \n2.2 REPORT AND OPINION OF THE AUDITOR GENERAL ON THE GOVERNMENT OF UGANDA \nCONSOLIDATED FINANCIAL STATEMENTS OF THE LOCAL GOVTS FOR THE YEAR ENDED 30TH JUNE 2021 ... 35 \nOpinion \u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u202635 \nBasis for Opinion ............................................................................................................................................ 35 \nKey Audit Matters .......................................................................................................................................... 35 \n2.2.1. \nPayroll management in Local Governments .......................................................................................... 35 \nOther Matter .................................................................................................................................................. 40 \n2.2.2. \n2.2.2. \nImplementation of the approved budget ............................................................................................. 40 \n2.2.3. \n Operationalization of New Cities ....................................................................................................... 44 \n2.2.4. \n2.2.4. \n Capitation Grant for Printing of Home Study Materials ....................................................................... 44 \n2.2.5. \n Un-Accounted for Funds .................................................................................................................. 45 \n2.2.6.", "metadata": {"page": 3, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "2.2.6. \n Irregular payment of Salary and Salary arrears to staff in Apac DLG .................................................. 45 \n2.2.7. \n Failure to submit Financial Statements for consolidation .................................................................... 46 \n2.2.8. \n2.2.8. \n Implementation of UgIFT project activities ....................................................................................... 47 \nOther Information .......................................................................................................................................... 49 \nManagement Responsibilities for the Financial Statements ................................................................................ 49 \nAuditor\u2019s Responsibilities for the Audit of the Financial Statements .................................................................... 49", "metadata": {"page": 3, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Other Reporting Responsibilities ..................................................................................................................... 51 \nReport on the Audit of Compliance with Legislation .......................................................................................... 51 \n2.3 REPORT OF THE AUDITOR GENERAL ON THE CONSOLIDATED SUMMARY STATEMENT OF FINANCIAL", "metadata": {"page": 3, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "PERFORMANCE OF PUBLIC CORPORATIONS AND STATE ENTERPRISES FOR THE YEAR ENDED 30TH JUNE 2021\n \n\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026..52 \n2.3.1. \nReview of the Consolidated Summary Statement of Financial Performance of Public Corporations and \nState Enterprises ........................................................................................................................ 52 \n2.4.1", "metadata": {"page": 3, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "2.4.1 \nReview of Financial Performance of Public Corporations and State Enterprises ............................... 54 \nPART 3: SECTORAL AND LOCAL GOVERNMENTS CROSS CUTTING FINDINGS ............................................ 60 \n3.1. \nPUBLIC SECTOR MANAGEMENT ........................................................................................... 60 \n3.1.1.", "metadata": {"page": 3, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "3.1.1. \nGovernment readiness to implement the programmatic approach ................................................ 60 \n3.1.2. \nLimited efforts to build the capacity of planning units within Government ...................................... 61 \n3.2. \nSECURITY SECTOR ............................................................................................................ 62", "metadata": {"page": 3, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "3.2.1. \nMonitoring and Supervision of Government Programmes under Office of the President .................... 62 \n3.3. \nAGRICULTURE SECTOR ...................................................................................................... 62 \n3.3.1. \nMainstreaming of Agriculture Sector agencies.......................................................................... 62", "metadata": {"page": 3, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "3.3.2. \nOver dependence on the Public Private Partnership in the Cotton sector ....................................... 63 \n3.3.3. \nManagement of Foot and Mouth Disease (FMD) Outbreaks in the Country ..................................... 64 \nv \n \n3.4. \nJUSTICE LAW AND ORDER SECTOR ...................................................................................... 65 \n3.4.1. \nManagement of cases and Case backlog ................................................................................ 65 \n3.4.2.", "metadata": {"page": 3, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "3.4.2. \nOperationalisation of the Joint Venture Agreement ................................................................... 66 \n3.5. \nINFORMATION COMMUNICATION TECHNOLOGY SECTOR ......................................................... 67 \n3.5.1. \nAbsence of a National IT Governance/Oversight System ............................................................ 67 \n3.5.2.", "metadata": {"page": 4, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "3.5.2. \nFailure by MDAs to Pay for National Backbone Infrastructure Services .......................................... 67 \n3.5.3. \nUncollected Revenue from Media Operators ............................................................................ 67 \n3.5.4. \n3.5.4. \nLack of a Communications Tribunal ....................................................................................... 68 \n3.6. \nACCOUNTABILITY SECTOR ................................................................................................. 69 \n3.6.1.", "metadata": {"page": 4, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "3.6.1. \nApproval of supplementary funding without matching revenue.................................................... 69 \n3.6.2. \nUnderperformance in Revenue Collection ............................................................................... 69 \n3.6.3. \nPerformance of the collaborating institutions under the Tax Registration and Expansion Programme .. 69 \n3.6.4.", "metadata": {"page": 4, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "3.6.4. \nOverstay of projects in the Public Investment Plan (PIP)-UGX.39.01Tn ......................................... 69 \n3.6.5. \nUn recovered Advances; UGX.2,819,193,074........................................................................... 70 \n3.6.6. \nAbsence of a monitoring and evaluation framework for impact assessment for tax exemptions .......... 70 \n3.7. \n3.7. \nENERGY SECTOR .............................................................................................................. 71 \n3.7.1. \nCapitalization of Uganda National Oil Company and its Subsidiary Companies ................................ 71 \n3.7.2.", "metadata": {"page": 4, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "3.7.2. \nImplementation of the Electricity Connection Policy(ECP) ........................................................... 71 \n3.7.3. \nVandalism and Theft of UETCL Grid Assets ............................................................................. 72 \n3.7.4. \nDeemed Energy Purchases: UGX.87.7 Billion and Power Evacuation Losses UGX.15.29 Billion ............ 72 \n3.7.5.", "metadata": {"page": 4, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "3.7.5. \nDelayed Commissioning of Karuma HPP ................................................................................. 73 \n3.7.6. \nBottlenecks in the Compensation of Project Affected Persons(PAPs) under Transmission Line Projects 74 \n3.8. \nGENDER AND SOCIAL DEVELOPMENT SECTOR ....................................................................... 75 \n3.8.1. \n3.8.1. \nLabour Externalization Inadequacies ..................................................................................... 75 \n3.8.2. \nImplementation of the Uganda Women Entrepreneurship Programme .......................................... 76 \n3.9. \n3.9. \nLAND SECTOR .................................................................................................................. 77 \n3.9.1. \nManagement of Government Land Matters ............................................................................. 77 \n3.10. \n3.10. \nEDUCATION SECTOR ......................................................................................................... 77 \n3.10.1. \nManagement of Bilateral Scholarships .................................................................................... 77 \n3.10.2.", "metadata": {"page": 4, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "3.10.2. \nManagement of Research Grants by Public Universities in Uganda ............................................... 78 \n3.11. \nWATER & ENVIRONMENT SECTOR ....................................................................................... 80 \n3.11.1. \nAfforestation and Restoration of Selected Central Forest Reserves (CFRS) by the (NFA) .................. 80 \n3.12. \n3.12. \nWORKS SECTOR ............................................................................................................... 81 \n3.12.1. \nUganda National Roads Authority ......................................................................................... 81 \n3.12.2. \n3.12.2. \nMinistry of Works and Transport ........................................................................................... 82 \nvi \n \n3.12.3. \nUganda Railways Corporation .............................................................................................. 83 \n3.12.4. \nUganda Civil Aviation Authority ............................................................................................ 83 \n3.13. \n3.13. \nHEALTH SECTOR .............................................................................................................. 85 \n3.13.1. \nMulago National Referral Hospital ......................................................................................... 85 \n3.13.2. \n3.13.2. \nNational Drug Authority ...................................................................................................... 86 \n3.14. \nSCIENCE, TECHNOLOGY AND INNOVATION SECTOR ................................................................ 86 \n3.14.1.", "metadata": {"page": 4, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "3.14.1. \nClosure of the Ministry of Science, Technology and Innovation ................................................... 86 \n3.14.2. \nUn-deployed Staff upon the abolition of the Ministry ................................................................. 87 \n3.14.3. \nProgress on the COVID-19 Vaccine, Diagnostics and Treatment Projects ....................................... 87 \n3.15. \n3.15. \nTRADE SECTOR ................................................................................................................ 88 \n3.16. \nTOURISM SECTOR ............................................................................................................ 89 \n3.17.", "metadata": {"page": 5, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "3.17. \nHIGHLIGHTS FROM THE AUDIT OF LOWER LOCAL GOVERNMENTS FOR THE PERIOD 2019/2020 ..... 90 \n3.17.1. \nUnder staffing .................................................................................................................. 90 \n3.17.2. \nBudget implementation in sample LLGs for FY 2018/2019 and 2019/2020 ..................................... 91 \n3.17.3. \n3.17.3. \nQuality of Financial Statements ............................................................................................ 92 \n3.17.4. \nLand Management in Local Governments ............................................................................... 92 \n3.17.5.", "metadata": {"page": 5, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "3.17.5. \nLack of Urban Physical Planning Committees ........................................................................... 93 \n4.0. \nHIGHLIGHTS FROM THE ENGINEERING AUDITS ...................................................................... 94 \n4.1. Value for Money Audit of Urban Infrastructure projects implemented by 22 Municipal Councils \u2026\u2026....94 \n4.2. Value for Money audit and assessment of Infrastructure projects under the UgIFT Program \u2026\u2026.\u2026\u2026. 95 \n4.3.", "metadata": {"page": 5, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "4.3. \nEngineering Audit of Selected Road and Building Projects in Kampala Capital City Authority (KCCA) .... 98 \n5.0. \nINFORMATION SYSTEMS AUDITS ....................................................................................... 100 \n5.1. \nInformation Systems Audit of Civil Aviation Authority .............................................................. 100 \n5.2.", "metadata": {"page": 5, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "5.2. \nInformation Systems Audit of the Academic Management Information System (AIMS) ................... 102 \n5.3. \nInformation Systems Audit of Uganda National Land Information System (Ug-NLIS) ...................... 105 \n6.0. \nSPECIAL VERIFICATIONS .................................................................................................. 108 \n6.1.", "metadata": {"page": 5, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "6.1. \nVerification of Assets and Liabilities for Uganda Telecom (In-Administration) ............................... 108 \n6.2. \nVerification of Terminal Benefits/Pension of former Employees UPTC ......................................... 109 \n7.0. \nHIGHLIGHTS OF VALUE FOR MONEY AUDIT RESULTS ............................................................ 111 \n7.1. \nValue for Money Audit on the Management of Government Investments by UDC .......................... 111", "metadata": {"page": 5, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "7.2. \nA Value for Money Audit on The Afforestation and Restoration of Selected Central Forest Reserves \n(CFRs) by the National Forestry Authority (NFA) .............................................................................. 113 \n7.3. \nA Value for Money Audit on the Implementation of the Uganda Women Entrepreneurship Programme\n \n\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026.115 \n7.4. \nA Value for Money Audit Report on the Management of Research Grants by Public Universities ....... 117", "metadata": {"page": 5, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "vii \n \n7.5. \nValue for Money Audit on The Management Of MATIP-1 Markets by Municipalities ........................ 121 \n7.6. \nPrevention and Response to Incidents of Fire by Uganda Police Force. ....................................... 122 \n7.7. \nValue for Money Audit on the Performance of the Agriculture Cluster Development Project ............. 125 \n7.8. \nFollow up on the Value for Money Audit on the Compensation of Project Affected Persons under the", "metadata": {"page": 6, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Refinery Project by the Ministry of Energy and Mineral Development.................................................... 126 \n7.9. \nVFM Audit on the Implementation of the Uganda Reproductive Maternal and Child Health Services \nImprovement Project (URMCHSIP) ............................................................................................... 127", "metadata": {"page": 6, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "ANNEXURES ................................................................................................................................. 129 \nANNEXURE I: SUMMARY OF ENTITY FINDINGS AND OPINIONS FOR MDAs, COMMISSIONS, STATUTORY \nCORPORATIONS AND STATE ENTERPRISES AND PROJECTS .............................................................. 129", "metadata": {"page": 6, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "ANNEXURE II: SUMMARY OF ENTITY FINDINGS AND OPINIONS FOR LOCAL GOVERNMENTS ....................... 316 \nANNEXURE III: REPORTS AND CONSOLIDATED GOVERNMENT OF UGANDA FINANCIAL STATEMENTS ........... 445", "metadata": {"page": 6, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "viii \n \nLIST OF TABLES \nTable 1: Status of audit performance for audit year 2021 ......................................................................... 2 \nTable 2: Summary of Current Year Opinions ............................................................................................ 3", "metadata": {"page": 7, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Table 3: Trend of Opinions for MDAs, Higher Local Governments for the last three years ............................ 3 \nTable 4: Tax arrears ............................................................................................................................ 19 \nTable 5: Debt portfolio analysis ............................................................................................................ 20 \nTable 6: Total revenue ratio ................................................................................................................. 22 \nTable 7: Tax to GDP ratio ..................................................................................................................... 23 \nTable 8: Noncompliance with the 70% capital threshold ......................................................................... 28 \nTable 9: Absorption of fund .................................................................................................................. 29 \nTable 10: Showing Level of Absorption for Wage, Pension and Gratuity ................................................... 36 \nTable 11: Entities with unsupported expenditure .................................................................................... 45 \nTable 12 Un-consolidated local governmentsSn ..................................................................................... 46 \nTable 13: Status of implementation of UgIFT projects ............................................................................ 47 \nTable 14: UgIFT projects without land titles ........................................................................................... 48", "metadata": {"page": 7, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Table 15: Entities not Consolidated, but Disclosed in summary statement ................................................ 53 \nTable 16: Entities neither reported nor Disclosed in the consolidated summary statement ......................... 53 \nTable 17: Entities not assessed ............................................................................................................. 54 \nTable 18: Profitability of Public Corporation and State Enterprises ........................................................... 55 \nTable 19: Returns on Assets ................................................................................................................. 56 \nTable 20: Enterprise Liquidity ............................................................................................................... 57 \nTable 21: Liquidity assessment for financial institutions .......................................................................... 58 \nTable 22: Loans and Advances performance .......................................................................................... 59 \nTable 23: Enterprises' ability to service loan obligations .......................................................................... 59", "metadata": {"page": 7, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Table 24: Comparison of consolidated quantities of production inputs ...................................................... 63 \nTable 25: Information Systems within the JLOS Sector ........................................................................... 65 \nTable 26: Understaffing in Lower Local Government ............................................................................... 90 \nTable 27: Performance of Central Government Grant .............................................................................. 91 \nTable 28: Performance of Local Revenue ............................................................................................... 91 \nTable 29: Unjustified Payments and Overpayments ................................................................................ 99 \nTable 30: Creditors Verified ................................................................................................................ 108 \nTable 31: Summary of claims presented for Verification ........................................................................ 110 \nTable 32: Summary of Verified claims payable ..................................................................................... 110 \nTable 33: Challenges of Project Implementation .................................................................................. 112", "metadata": {"page": 7, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "ix \n \nLIST OF ACRONYMS \n \nACRONYM \nDESCRIPTION \nAG \nAuditor General \nAO \nAccounting Officer \nBn \nBillion \nBoU \nBank of Uganda \nCAs \nContracting Authorities \nCFR \nCentral Forest Reserve \nDGAL \nDirectorate of Government Analytical Laboratory \nDLB \nDistrict Land Board \nFY \nFinancial Year \nGDP \nGross Domestic Product \nGoU \nGovernment of Uganda \nICT \nInformation Communication Technology \nIDA \nInternational Development Association \nIESBA \nInternational Ethics Standards Board for Accountants \nIFMS \nIntegrated Financial Management System \nIMF \nInternational Monetary Fund \nKIS \nKalangala Infrastructure Services \nMAAIF", "metadata": {"page": 8, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "MAAIF \nMinistry of Agriculture Animal Industry and Fisheries \nMDAs \nMinistries, Departments and Agencies \nMEMD \nMinistry of Energy and Mineral Development \nMOFPED \nMinistry of Finance, Planning, and Economic Development \nMoGLSD \nMinistry of Gender Labour and Social Development \nMoU \nMemoranda of Understanding \nMTEF \nMedium Term Expenditure Framework \nNAA \nNational Audit Act \nNBI \nNational Backbone Infrastructure \nNDP \nNational Development Plan \nNDPII \nSecond National Development Plan \nNEF \nNational Environment Fund \nNEMA \nNational Environment Management Authority \nNFA \nNational Forestry Authority \nNGO \nNon-Governmental Organisation \nNIN \nNational Identification Number \nNIRA \nNational Identification Registration Authority \nNPA", "metadata": {"page": 8, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "NPA \nNational Planning Authority \nNWSC \nNational Water and Sewerage Corporation \nOAG \nOffice of the Auditor General \nPAPs \nProject Affected Persons \nPDMF \nPublic Debt Management Framework \nPFMA \nPublic Finance Management Act, 2015 \nPS/ST \nPermanent Secretary/Secretary to the Treasury \nPSST \nPermanent Secretary and Secretary to Treasury \nTAI \nTreasury Accounting Instructions, 2016 \nTIN \nTax Identification Number \nTn \nTrillion \nTWGs \nTechnical Working Groups \nUCC \nUganda Communications Commission", "metadata": {"page": 8, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "x \n \nUCF \nUganda Consolidated Fund \nUDC \nUganda Development Corporation \nUETCL \nUganda Electricity Transmission Company Limited \nUGX \nUganda Shillings \nURA \nUganda Revenue Authority \nUSD \nUnited States Dollars \nUSMID \nUganda Support for Municipal Infrastructure Development \nWMD \nWetlands Management Department \nYIGs \nYouth Interest Groups \nYLP \nYouth Livelihood Programme", "metadata": {"page": 9, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "xi \n \nGLOSSARY OF TERMS \nTerm \nDefinition \nClassified Expenditure \nThe expenses and commitments incurred by an authorised agency for the \ncollection and dissemination of information related to national security \ninterests \nContingent Liability \nA potential liability that may occur depending on the outcome of an uncertain \nfuture event. \nDomestic Arrears \nDomestic arrears refer to short-term debts incurred by Governments against \nunpaid procurement invoices for supply of goods and services during the \nfinancial year \nExternal Debt \nPortion of a country's debt that was borrowed from foreign lenders including \ncommercial banks, Governments or international financial institutions. \nGarnishee order \nA form of enforcing a judgment debt against a creditor to recover money. \nNugatory Expenditure \nExpenditure that does not achieve any result \nOff-budget financing \nOff-buget refers to expenditure that is not funded through the budget", "metadata": {"page": 10, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Recruitment \nRefers to the process of attracting, screening, selecting, and on boarding a \nqualified person for a job, provided by an employer in another territory and \nthe preparation for their departure. \nRevolving Fund \nA fund that is continually replenished as withdrawals are made.", "metadata": {"page": 10, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "xii \n \nFOREWORD BY THE AUDITOR GENERAL \nIn accordance with my audit mandate set out under Article 163 of the Constitution of the Republic of \nUganda, 1995 (as amended) and the National Audit Act, 2008, I hereby present to you the Annual \nAudit Report on the Consolidated Public Accounts of Uganda; Local Government; and Summary \nStatement of Financial Performance of Public Corporations, and State Enterprises and Companies in \nwhich Government has a controlling interest. \n \nIn delivering my mandate, I audited financial statements for 128 MDAs, 107 Statutory Corporations \n145 Local Governments and 2048 Lower Local Governments. In addition, I undertook four (4) \nthematic audits covering, Management of Covid-19 pandemic intervention, compensations of Project \nAffected Persons, implementation of the approved budget, and Payroll and Pension payments. \n \n \nThe Office reviewed its audit process to comply with the Covid-19 guidelines from the Ministry of", "metadata": {"page": 11, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Health and Ministry of Public Service, by conducting some critical meetings virtually and coping with a \nlean staff. In addition, Stakeholders have increased their call to strengthen accountability in the wake \nof the Pandemic triggering special audits and investigations relating to Covid-19 expenditure. \n \n \nDue to the impact of the Pandemic, some audits were not conducted as planned, but we are \ncommitted to continuously adding value to society by making recommendations that enhance \naccountability and improved service delivery through audit services. \n \n \nI extend my gratitude to the Government of Uganda and all other stakeholders for the support \nrendered to my office during the audit year. I also thank my staff for their unwavering commitment \nduring this challenging period. \n \n \n \nJohn F.S. Muwanga \nAUDITOR GENERAL \n \n31st December 2021", "metadata": {"page": 11, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "1 \n \nPART 1: INTRODUCTION AND PURPOSE OF THE REPORT \n1.0 \nINTRODUCTION AND PURPOSE \n1.1 \nGeneral Introduction \n \nI am required by Article 163(3) of the Constitution of the Republic of Uganda and Section 13 \nand 19 of the National Audit Act 2008 to audit and report on the public accounts of Uganda \nand of all public offices including the Courts, the Central and Local Government \nAdministrations, Universities and Public Institutions of like nature and any Public \nCorporations or other bodies established by an Act of Parliament. \n \n \nSection 13 (b) of the National Audit Act 2008 further requires me to conduct the following \naudits: \n \n\uf0b7 \nFinancial audits \n\uf0b7 \nValue for money \n\uf0b7 \nEngineering \n\uf0b7 \nInformation Systems \n\uf0b7 \nSpecial/Forensic Audits \n\uf0b7", "metadata": {"page": 12, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nGender and Environment and any other audits in respect of any project or activity \ninvolving public funds \n\uf0b7 \nClassified expenditure \n\uf0b7 \nGovernment investments \n\uf0b7 \nProcurement audits, and \n\uf0b7 \nTreasury Memoranda \n \nUnder Article 163 (4) of the Constitution, I am also required to submit to Parliament \nannually a report of the accounts audited by me for the year immediately preceding. I am \ntherefore, issuing this report in accordance with the above provisions. \n \n1.2 \nPurpose \n \n \nThe purpose of this report is to provide: \n \n(i) \nA summary of audit results and opinions for audits done in the year \n(ii) \nA report and Opinion of the Auditor General on the; \n \n\uf0b7 \nConsolidated Financial Statements of the Government of the Republic of Uganda", "metadata": {"page": 12, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "for the year ended 30th June 2021 \n\uf0b7 \nConsolidated Financial Statements of Local Governments for the year ended 30th \nJune 2021 \n\uf0b7 \nThe Consolidated Summary Statement of Financial Performance of Public \nCorporations and State Enterprises for the year ended 30th June 2021 \n \n(iii) \nA summary of audit results from audit of thematic and focus areas", "metadata": {"page": 12, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "2 \n \n(iv) \nSectoral and cross cutting findings, implications and recommendations from the audit \nof Ministries, Departments, Agencies, Commissions, Statutory Corporations and Local \nGovernments and other specialised audit findings. For the first time, a summary of IT \nAudit findings have been included in the report under Part 4 of the report. \n \n(v) \nA summary of findings of completed audits which include opinions from the audit of \nMinistries, Departments, Agencies, Commissions, Statutory Corporations (Annexure I) \nand Local Governments (Annexure II). \n \n1.3 \nSummary of Audit Results \n \n1.3.1 General Performance \n \nDuring the current year, I planned to undertake 4,165 audits. I was able to undertake 2,692 \naudits which made up 88.1% of the annual approved budget of Government. The summary", "metadata": {"page": 13, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "is in Table 1 below and details are in Annexure I, II. \n \nA total of 1,473 audits, of which 50% are schools and tertiary institutions, could not be \nundertaken due to the effects of Covid-19 pandemic and resource constraints. This \nsignificantly affected the flow of work from the entities and within the offices. The summary \nis shown in Table 1 below. \n \nThe forensic investigations and special audit reports have been issued to the respective \nstakeholders who requested for them. \nTable 1: Status of audit performance for audit year 2021 \nType of Entity/Audit \nPlanned \nAudits for the \naudit year \n2021 \nRevised Planned \nAudits for the \nyear 2021 \nActual \nPerformance as \nat December 31, \n2021 \nAudits deferred \nduring the \nyear \nMDAs \n123", "metadata": {"page": 13, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "MDAs \n123 \n170 \n128 \n42 \nFunds \n3 \n3 \n3 \n0 \nClassified entities \n13 \n13 \n0 \n13 \nInternational Audits \n2 \n2 \n2 \n0 \nCommissions, Statutory \nAuthorities and State \nEnterprises \n95 \n121 \n107 \n14 \nProjects \n167 \n257 \n146 \n111 \nPSAs \n4 \n8 \n4 \n4 \nDistricts \n135 \n135 \n115 \n20 \nMunicipal Councils and \nCities \n41 \n41 \n24 \n17 \nLower Local Governments", "metadata": {"page": 13, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "17 \nLower Local Governments \nfor 18/19 and 19/20 \n1,662 \n2,291 \n2,048 \n243 \nRegional Referral hospitals \n14 \n14 \n6 \n8 \nSchools/Tertiary \ninstitutions \n379 \n746 \n0 \n746 \nForensics/Special Audit \n71 \n71 \n8 \n63 \nVFM Studies \n20 \n41 \n8 \n33 \nEngineering Audits \n230 \n240 \n90 \n150 \nIT Audits \n10 \n12 \n3 \n9 \nTOTAL \n2,969 \n4,165 \n2,692 \n2,692 \n1,473", "metadata": {"page": 13, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "3 \n \n \n \n1.3.2 Summary of Opinions \n \nOf the financial audits concluded (MDA, Commissions, Statutory Authorities and State \nEnterprises, Projects, Districts and Municipalities), 502 (95%) entities had unqualified \nopinions while twenty-seven (27) entities had qualified opinions. Table 2 and figure 1 below \nprovides the summary of the Opinions: \n \nTable 2: Summary of Current Year Opinions \nCategory of Audited entities \nType of Opinions \nTotal \n \nUnqualified \nQualified \nAdverse \nDisclaimer \n \nMinistries, Departments and \nAgencies \n116 \n12 \n0 \n0 \n128 \nCommissions, \nStatutory \nAuthorities \nand \nState \nEnterprises \n100", "metadata": {"page": 14, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Enterprises \n100 \n7 \n0 \n0 \n107 \nProjects \n144 \n2 \n0 \n0 \n146 \nDistricts Local Governments \n110 \n5 \n0 \n0 \n115 \nRegional Referral hospitals \n6 \n0 \n0 \n0 \n6 \nMunicipal Councils and Cities \n23 \n1 \n0 \n0 \n24 \nFunds \n3 \n0 \n0 \n0 \n3 \nTOTAL \n502 \n27 \n0 \n0 \n529 \n \n*The table above excludes Lower Local Governments", "metadata": {"page": 14, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Table 3: Trend of Opinions for MDAs, Higher Local Governments for the last three years \nType of Opinion \n2020/21 \n2019/20 \n2018/19 \nUnqualified \n502 \n420 \n433 \nQualified \n27 \n33 \n54 \nAdverse \n0 \n0 \n0 \nDisclaimer \n0 \n0 \n0 \nTotal \n529 \n453 \n487 \n \nFigure 1: Summary of opinions for the last 3 years \n \n \n0\n100\n200\n300\n400\n500\n600\n2018/19\n2019/20\n2020/21\nUnqualified\nqualified", "metadata": {"page": 14, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "4 \n \nPART 2: CONSOLIDATED FINANCIAL STATEMENTS \n2.0 \nREPORT OF THE AUDITOR GENERAL ON THE CONSOLIDATED FINANCIAL STATEMENTS \n \n2.1 \nREPORT AND OPINION OF THE AUDITOR GENERAL ON THE GOVERNMENT OF UGANDA \nCONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH JUNE 2021 \n \nTHE RT. HON. SPEAKER OF PARLIAMENT \n \n \nOpinion \n \nI have audited the accompanying Consolidated Financial Statements of the Government of the \nRepublic of Uganda for the year ended 30th June 2021. These financial statements comprise of the \nConsolidated Statement of Financial Position as at 30th June 2021, the Consolidated Statement of \nFinancial Performance, and Consolidated Cash Flow Statement together with other accompanying \nstatements, notes, and accounting policies. \n \nIn my opinion, the Consolidated Financial statements of the Government of the Republic of Uganda \nfor the financial year ended 30th June 2021 are prepared, in all material respects, in accordance", "metadata": {"page": 15, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "with Section 52 of the Public Finance Management Act, 2015 and the Financial Reporting Guide, \n2018. \n \nBasis for Opinion \n \nI conducted my audit in accordance with International Standards of Supreme Audit Institutions \n(ISSAIs). My responsibilities under those standards are further described in the Auditor\u2019s \nResponsibilities for the Audit of the Financial Statement\u2019s section of my report. I am independent of \nthe Treasury in accordance with the Constitution of the Republic of Uganda (1995) as amended, the \nNational Audit Act, 2008, the International Ethics Standards Board for Accountants (IESBA) Code of \nEthics for Professional Accountants (Parts A and B), the International Organization of Supreme \nAudit Institutions (INTOSAI) Code of Ethics and other independence requirements applicable to \nperforming audits of Financial Statements in Uganda. I have fulfilled my other ethical \nresponsibilities in accordance with the IESBA Code, and in accordance with other ethical \nrequirements applicable to performing audits in Uganda. I believe that the audit evidence I have", "metadata": {"page": 15, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "obtained is sufficient and appropriate to provide a basis for my qualified opinion. \n \nKey Audit Matter \n \nKey audit matters are those matters that, in my professional judgment, were of most significance in \nmy audit of the financial statements of the current period. These matters were addressed in the \ncontext of my audit of the financial statements as a whole, and in forming my opinion thereon, and \nI do not provide a separate opinion on these matters. I have determined the matters described \nbelow to be key audit matters communicated in my report. \n \n \n2.1.1. \nImplementation of the approved budget \n \nOn the 24th April 2020, Parliament approved the annual budget for MDAs and LGs that \ncontained the specific resource envelope allocated to each vote to implement agreed on", "metadata": {"page": 15, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "5 \n \noutputs. Subsequently, the PS/ST issued a Budget Execution Circular that communicated the \nbudget strategy, policy, and administrative issues to guide the budget implementation for \nthe financial year 2020/2021. \n \nDuring my overall risk assessment exercise, I noted that MDAs and LGs are still experiencing \nchallenges in implementing the budgets approved by parliament and policy guidance\u2019s \nissued by PS/ST, which has continued to affect the performance and credibility of the budget \nnegatively. These challenges include; lack of strategic plans that are aligned to the National \nDevelopment Plans, underperformance of revenue, implementation of off-budget activities, \nunder absorption of funds, insufficient quantification of outputs, partial and non-\nimplementation of outputs, diversion of funds and challenges in budget monitoring and \nreporting of performance. \n \nI am aware that the Covid-19 Pandemic continues to significantly affect the implementation \nof several activities. Consequently, a number of activities were not implemented due to", "metadata": {"page": 16, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "budget cuts and lockdown measures instituted to control the spread of the pandemic. It is \nagainst this background that the implementation of the budget was again considered a key \naudit area during the office-wide planning for the current audit year. \n \nConsequently, I developed procedures to address the performance of the budget of the \nentity (Detailed reports are provided in individual entity reports). \n \n From the procedures undertaken, I noted the following; \n \nSN \nFinding \nRecommendation \na) Revenue performance \n \nA review of the approved budget estimates of the Government of \nUganda for the financial year ended 30th June 2021 revealed that the \ninitial approved budget (resource envelope) for the financial year \n2020/21 was UGX.45,493.69 Bn. The funding was later revised to \nUGX.48,726.77 Bn, following approval for additional domestic", "metadata": {"page": 16, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "financing of UGX.3,234 Bn. It was estimated that Tax and Non Tax \nrevenue amounted to UGX.22,024.66 Bn, domestic borrowing would \nfinance UGX.6,794 Bn while external financing would provide grants \nof UGX.1,719.91Bn and loans of UGX.10,702.10Bn. \n \nThe table below summaries the performance of revenue by source; \nFunding source \nApproved \nBudget (Bn) - \nUGX \nRevised \nbudget \n(Bn)-UGX \nActual (Bn) \n- UGX \nVariance \n(Bn) - \nUGX \nPerform\nance \n(%) \nDomestic Resources \nTaxes \n20,218.68 \n20,218.68 \n18,252", "metadata": {"page": 16, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "18,252 \n1,966.68 \n90 \nNon-Tax \nrevenue1 \n1,805.98 \n1,805.98 \n1,648 \n157.98 \n91 \nDomestic \nfinancing \n3,560.32 \n6,794 \n6,794 \n - \n100 \nDomestic \nrefinancing \n7,486.1 \n7,486.1 \n7,420 \n66.1 \n99 \nI \nadvised \nthe \nSecretary \nto \nthe \nTreasury to devise \nmeans of ensuring \nthat \nall \nbudgeted \nrevenue \nis \nalways \ncollected to fund the \ncollected to fund the \nbudget as approved. \n \n1 Includes Appropriation in Aid of UGX 215 billion.", "metadata": {"page": 16, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "6 \n \nSN \nFinding \nRecommendation \nExternal Resources \nBudget support \nGrants \n133.56 \n133.56 \n62.85 \n70.71 \n47 \nLoans \n2,773.12 \n2,773.12 \n3,134.13 \n-361.01 \n113 \nProject support \n \n \n \n \n \nGrants \n1,586.35 \n1,586.35 \n1,026.04 \n560.31 \n65 \nLoans \n7,928.98 \n7,928.98 \n6,822.23 \n1,106.75 \n86 \nGrand Total", "metadata": {"page": 17, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "86 \nGrand Total \n45,493.09 \n48,726.77 \n45,159.25 \n1,667.06 \n93 \n \nActual funding for the budget during the financial year was UGX. \n45,159.25Bn (93%) against a revised revenue budget of UGX. \n48,726.77Bn, indicating a shortfall of UGX. 3,567.52Bn. The details of \neach funding source are provided below. \n \n\uf0b7 \nTaxes \nThe total tax revenue collected during the year was UGX. \n19,697.7Bn, representing 90% of the approved estimates. \n \n\uf0b7 \nNon-tax revenue \nA total of UGX.1,605.42Bn was realised from this source against a", "metadata": {"page": 17, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "target of UGX.1,805.98Bn representing a performance of 89%. \nBudgeting for NTR remains a challenge at the Treasury, as the \nfigures included in the revenue estimates are not agreed with \nindividual votes, and a number of entities do not reflect NTR in their \nbudgets. \n \n\uf0b7 \nBudget support \nGovernment planned to raise a total of UGX.2,906.68 Bn for budget \nsupport of which 5% was grants while 95% was from loans. Grants \nunderperformed by 52% while Government acquired loans of \nUGX.361 Bn in excess of what was planned translating into a 113% \nperformance. The increase in loans for budget support related to \nadditional borrowing that was secured in light of COVID -19 \ndisruptions. \n \n\uf0b7 \nProject support \nA total of UGX.9,515.33 Bn (20%) of the approved budget was", "metadata": {"page": 17, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "planned for project support of which grants and loans were \nUGX.1,586.35 Bn and UGX.7,928.98 Bn respectively. Grants \nunderperformed by 60% (UGX.1,026.04 Bn) while UGX.6,822.23 Bn \n(83%) was realised from the loans. \n \n\uf0b7 \nDomestic refinancing \nGovernment planned to pay back maturing Treasury Instruments by \nborrowing afresh from the market (domestic refinance) to a tune of \nUGX.7,486.1 Bn, of which UGX.7,420Bn (99%) was realised. \n \nManagement attributed the Tax and Non tax Revenue shortfall \nmainly to the lockdown measures that were instituted by government \nto curb the spread of the COVID 19 that constrained revenue major \nsources and the slow Economic growth which is a major contributor \nto taxes that declined from the projected 6.4% to 3.1%. Deficits", "metadata": {"page": 17, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "7 \n \nSN \nFinding \nRecommendation \nwere registered in CIT, VAT, excise duty and Corporation Tax since \ncompanies were not working. The EFRIS has now been rolled out \nand Digital stamps implementation is under way to revive revenue \ncollection. \n \nManagement also indicated that NTR Budget estimates books have \nbeen revised and the budget process for NTR enhanced to \nincorporate Universities fees collection which was a major challenge \nin terms of providing the right estimates. The NTR Budget \nconsultation process for FY 2022/23 had been concluded for all Votes \nand a realistic target set for NTR collections. \n \nb) Unfunded approved budget \n \nDuring the year under review, Government budgeted to spend a total \nof UGX.45,439 Bn, which was later revised to UGX.51,625 Bn. An", "metadata": {"page": 18, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "analysis of warrants approved revealed that a total of UGX.46,657 Bn \nwas approved against the budgeted amounts, thus representing 90% \nperformance. A sum of UGX.4,968 Bn was not availed for \nexpenditure. See table below; \n \nEntity \nPercenta\nge \nTotal Revised \nBudget \u2013 \nUGX(bn) \nTotal warrants - UGX(bn) \nVariance- \nUGX(bn) \nCentral \nGovt \n73.42% \n37,904.70 \n35,717.10 \n2,187.7 \nLocal Govt \n8.38% \n4,327.80 \n4,218.40 \n109.4 \nLocal \nRevenue \n0.42% \n217.4", "metadata": {"page": 18, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "217.4 \n115.3 \n102.0 \nProject \nFinancing \n17.77% \n9,176.00 \n6,606.80 \n2,569.2 \nTotal \n \n51,626.00 \n46,657.60 \n4,968.4 \n \nFailure to fully fund the revised budget affected the implementation \nof the planned activities which were intended to contribute to the \nachievement of the NDP III and Vision 2040. The detailed impact of \nthis shortfall on the entity activities has been reported in the \nindividual entity reports. Notably, there was a significant variance in \nproject financing which is explained by under absorption by the \nvarious implementing MDAs. \n \nIt was observed that whereas the performance contracts with \nAccounting Officers are premised on availing the appropriated", "metadata": {"page": 18, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "budgets during the year, such contracts are not revised in situations \nof shortfalls in budgets. \n \nThe Secretary to Treasury indicated that the funds releases to Votes \nare in line with the available resources issued in quarterly \nexpenditure limits which are supported by actual revenue collections \nfrom URA and also indicated that Ministry of finance provides \nguidance by way of circulars to all Votes to fund only critical activities \nwithin the work plans in line with the available resources. \n \nThe Secretary to Treasury committed to improving releases as \nI advised the PSST to \nprovide guidance to \nMDAs in regard to \nthe prioritization of \nactivities to the levels \nof availed resources \nin cases of shortfalls.", "metadata": {"page": 18, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "8 \n \nSN \nFinding \nRecommendation \nrevenue collections improve with the economy recovering from the \ncurrent economic shocks. \n \nc) Unspent warrants/under absorption of funds UGX .3,018.44Bn \n \nSection 45 (3) of the Public Finance Management Act, 2015 states \nthat an Accounting Officer shall enter into an annual budget \nperformance contract with the Secretary to the Treasury which shall \nbind the Accounting Officer to deliver on the activities in the work \nplan of the vote for a Financial year. \n \nIt was observed that warrants worth UGX.46,657.6 billion were \napproved in respect of various entities for which only UGX.43,639.2 \nbillion was paid out leaving UGX.3,018.4 billion (6.5% of approved \nwarrants) unspent. The details are indicated in the table below;", "metadata": {"page": 19, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Approved Warrants (UGX\u2019 \nbillion) \nTotal Payments (UGX\u2019 \nbillion) \nUnspent funds (UGX\u2019 \nbillion) \nENTI\nTY \nWage \nNon -\nWage \nDevelop\nment \nwage \nNon -\nWage \nDevelo\npment \nwag\ne \nNon- \nWage \nDev \nCG \n2,710 \n23,647 \n15,771 \n2,637 \n21,32 \n15,725 \n73 \n2,327 \n45 \nMissi\nons \n28 \n149 \n18 \n28", "metadata": {"page": 19, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "18 \n28 \n149 \n17.9 \n- \n- \n- \nLG \n2,271 \n1,071 \n992.1 \n2,151 \n1,025 \n586 \n119 \n46 \n406 \nTOTA\nL \n5,009 \n24,867 \n16,781 \n4,816 \n22,494 \n16,329 \n193 \n2,373 \n452 \n \nFrom the above, it can be seen that 79% of the unspent funds \nrelated to non-wage expenditure while wage and development \nexpenditure posted underperformance of 6% and 15% respectively.", "metadata": {"page": 19, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "98% of the unspent funds under non-wage related to Vote 130 \n(Treasury Operations) and were meant to settle interest costs and \ntreasury bills and Bonds redemptions. The occurrence has an \nimplication of increasing financing costs incurred by the government \nsince the interest costs and redemptions are done by Bank of Uganda \nwhich in turn charges the treasury for the advance. \n \nMost of the unspent funds under wage related to pension payments \ncasting doubt on the existence of the said pensioners. \n \nUnder absorption negatively affects service delivery since some of \nthe planned projects and activities are not undertaken. \n \nThe Secretary to Treasury indicated that GoU operates a Cash budget \nwhich is based on actual inflows. The year under audit experienced \ncash shortfalls arising from, Domestic revenue shortfall as a result of \nthe Covid -19 pandemic , late disbursements from IMF ,which came", "metadata": {"page": 19, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "in on 30 June 2021 & Non disbursement from Afri-Exim Bank and \nAfrican Development Fund. The occurrence contributed to delay in \nimplementation of planned activities hence the under absorption of \nfunds. \nI \nadvised \nthe \nSecretary \nto \nthe \nTreasury \nto \nstrengthen the cash \nforecasting \nfunction \nto \navoid \nissuing \nwarrants that cannot \nbe financed. \n \nd) Approval of supplementary funding without matching revenue \n \nSection 25(1) of the Public Finance and Accountability Act (PFMA) \nstipulates that the total supplementary expenditure that requires \nadditional resources over and above what is approved by Parliament \nI await the outcome \nof the new measures.", "metadata": {"page": 19, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "9 \n \nSN \nFinding \nRecommendation \nshall not exceed 3% of the total approved budget for that financial \nyear, without the approval of Parliament. \n \nIt was established that during the financial year ended 30th June \n2021, supplementary funding totalling UGX.6.13Tn was granted by \nthe Minister of Finance, Planning and Economic Development. It was, \nhowever, noted that the source of the funding for the supplementary \nexpenditure was not clearly shown before approval was granted. \nAs a result, the supplementary expenditure was instead financed by \ninternal budget cuts from various votes thus affecting implementation \nof plans/ activities by the affected votes. I noted that, although the \nbudget was increased to UGX.51.625Tn, it was only funded to the \ntune of UGX.46.6Tn (90%funding). \n \nContinued \napproval \nof", "metadata": {"page": 20, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "approval \nof \nsupplementary \nbudgets \nwithout \na \ncorresponding increase in revenue/financing could be attributed to \nfiscal indiscipline which leads to increased funding gap affecting the \nearlier budget objectives and plans. \n \nThe Secretary to Treasury responded that for the Financial Year \n2022/23, the Ministry of Finance was using zero based budgeting \napproach to prioritize critical activities and expenditures to avoid \nsupplementary requests during execution. The budget for 2022/23 is \nbeing used as a launchpad for restricting supplementary budgets to \nstabilize GoU budget execution going forward. \n \ne) Budgeting for Non-Tax Revenue \n \nSection 6 of the Budget Execution Circular for the FY 2020/21 \nprovides that all work plans and Budgets for FY2020/21 are prepared \nand approved using the Program Budgeting System (PBS). All", "metadata": {"page": 20, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Budgets, irrespective of the source of financing (GoU, NTR/AIA, \nDonor or LG Revenue), will be migrated and loaded into the \nIntegrated Financial Management System (IFMS) to facilitate Budget \nImplementation and reporting. \n \nAccording to the approved budget estimates for the FY2020/21, it \nwas projected that a total of UGX.1.590 Tn would be collected as \nNTR. Review of the Performance Budgeting System(PBS) tool used \nby the Government and IFMS records revealed that that NTR Budgets \nfor the respective MDAs were neither uploaded on PBS nor IFMS. The \nbudgeting tool only had details regarding expenditure, and no \nrevenue was included. I further noted that several Accounting \nOfficers disowned the figures incorporated in the NTR Estimates \nbook, indicating that they had not been consulted in arriving at the \nestimates incorporated therein.", "metadata": {"page": 20, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "As a result, I was unable to compare respective entity budget figures \nwith the URA NTR collections that totalled to UGX.1.605Tn. The \nabsence of revenue estimates for each entity undermines \ntransparency, affects motivation of staff, and hampers performance \nassessment. \n \nManagement responded that for the budget of FY 2022/23, \nI advised the PSST \nto ensure that all \nMinistries, \nDepartments \nand \nAgencies budget for \nthe Non-Tax Revenue \nand have the details \nprovided in the IFMS \nand the PBS.", "metadata": {"page": 20, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "10 \n \nSN \nFinding \nRecommendation \nrespective MDAs had been requested to submit their NTR estimates \nwhich will be uploaded and reflected on the PBS as had been done \nin the NTR estimates booklets. PBS has been upgraded to include the \nNTR budgets for Votes. The approved estimates will also be uploaded \non the IFMS for follow up on monthly performance reports. \n \n \n \n \nf) \n Quantification of activities and Implementation of planned outputs \n \nSection 13 (15, b) of the PFMA 2015 states that a policy statement \nsubmitted by a vote shall contain the annual and three months\u2019 work \nplans, outputs, targets and performance indicators of the work plans. \nRegulation 11 (3) of PFMR 2016 requires that a vote prepares a work \nplan that indicates the outputs of the vote for the financial year; the", "metadata": {"page": 21, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "indicators to be used to gauge the performance of the outputs and \nfunds allocated to each activity. \n \nI sampled 94 entities for purposes of assessing the extent of \nquantification and implementation of planned outputs I noted that \nout of the 1,681 outputs worth UGX.9.8tn sampled for review, 1,151 \noutputs (68.5%) worth UGX.6.8tn were fully quantified, 307 outputs \n(18.3%) worth UGX.2.1tn were partially quantified while 223 out puts \n(13.2%) worth UGX.902Bn were not quantified at all. \n \nOut of a total of 1,151 quantified out-puts worth UGX.6.8tn assessed, \n465 (40.4%) output worth UGX.2.5tn were fully implemented, 592", "metadata": {"page": 21, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "outputs (51.4%) worth UGX.4.1tn were partially implemented, while \n94 (8.2%) out-puts worth UGX.146bn were not implemented at all. \nThe graph below shows the extent of implementation; \n \nFailure to fully quantify the planned activities makes the assessment \nof implementation difficult. \n \nThe Accounting Officers indicated that the outbreak of the Covid-19 \nPandemic affected the implementation of the 2019/2020 budget, \nespecially activities in the last half of the financial year. \n \n \n \n \nI advised the PSST to \nfollow up the matter \nwith the Accounting \nOfficers \nof \nthe \nvarious \nMDAs \nto \nensure that there is \nfull quantification of \nactivities \nand \noutputs.", "metadata": {"page": 21, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "outputs. \n \ng) Existence of Strategic plans that are aligned to NDP-III \n \nParagraph 5 of the budget execution circular for the financial year \n2020/2021 cites poor alignment of Government Budgets with the \nNational Development Plans. The PS/ST urged Accounting Officers to \nensure that all activities for Financial Year 2020/2021 are aligned \nwith NDP III and implemented accordingly. Regulation 26 (1) of the \nNational Planning Authority (development of Plans) regulations \nrequire entities to submit to NPA their five-year development plans \nfor certification before approval. \n \nThis being the first year of implementation of the NDP-III, MDAs \nwere expected to prepare strategic plans aligned to NDP III and \nensure that these plans are certified by NPA before approval. These \nplans would then be the basis for preparation of the entity annual \nI advised the PSST \nto \nfollow \nup \nthe", "metadata": {"page": 21, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "up \nthe \nmatter with NPA and \nensure \nthat \nthe \nentities \nhave \nstrategic plans that \nare aligned to NDP-\nIII and certified by \nNPA.", "metadata": {"page": 21, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "11 \n \nSN \nFinding \nRecommendation \nplans. \n \nFrom the procedures undertaken I noted that out of 94 entities \nsampled, 75 were supposed to prepare strategic plans that were \naligned to NDPII. However, out of 75 only 25 (33%) had their \nstrategic plans certified by NPA. The balance of 50 representing 67% \nwere not certified by NPA. There is a risk that activities implemented \nby these entities during the financial year 2020/2021 were not \naligned to the NDP-III which negatively affects the achievement of \nNDP-III objectives. \n \nh) Off Budget Financing/Receipts \n \nSection 43 (1) of the PFMA 2015 states that all expenditure incurred \nby the government on externally financed projects in a financial year \nshall be appropriated by parliament. Paragraph 29 of the Budget \nExecution Circular for the Financial year states that if an external", "metadata": {"page": 22, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "agency provides funds in the course of implementation of the budget \nor any funds remain unspent at the expiry of an appropriation, these \nmust be declared and a supplementary issued in line with the Public \nFinance Management Act 2015. \n \nI noted that 30 entities received off-budget financing to a tune of \nUGX.627.124Bn, which was never declared to the PS/ST and was \nalso not appropriated by Parliament. As such, no supplementary \nappropriation was issued as guided by the PS/ST. These funds were \nreceived directly from development partners for undertaking activities \nnot budgeted for. Off-budget financing distorts planning, may result \nin duplication of activities, contrary to Section 43(1) of the PFMA \n2015 and the budget execution guidelines. \n \nThe Accounting Officers explained that this was due to limitations of \nthe PBS system which has no provision for inputting such receipts", "metadata": {"page": 22, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "and in some cases funds are received during the year which were not \nexpected at the time of planning. \nI \nadvised \nthe \nAccounting \nOfficers \nto comply with the \nlaw \nand \nguidance \ngiven by the PSST \nand ensure that in \nfuture, \nall \nfunds \nreceived outside the \napproved budget are \nappropriated by way \nof a supplementary. \n \n \n \n \n \n2.1.2. \nCOVID 19 expenditure \n \nThe emergence of the Global Covid-19 pandemic presented a social and economic threat to \nmany countries in the world, including Uganda. In response, the Government of Uganda \ndeveloped and instituted several interventions to control and avert the effects of the", "metadata": {"page": 22, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "pandemic on the economic and social wellbeing of its citizens. The interventions included \ninstituting a total lockdown, closure of airports, restriction of cross boarder movements, and \nincreased surveillance among others which in turn necessitated additional funding. \nMobilisation of revenue was also negatively affected due to low economic activity. \n \nIn addition to the local revenue raised by the Government to support the budget, \nGovernment proceeded to secure additional funding to facilitate the efforts and interventions", "metadata": {"page": 22, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "12 \n \nbeing undertaken to manage and control COVID-19 and its effects on the economy and the \nsociety in general. \n \nIn a letter dated 09th August 2021, the PSST advised me that the total amount released for \nCOVID expenditure in the FY 2020/21 was UGX.2,371Bn of which a total of UGX.677Bn was \ndisbursed for the settlement of domestic arrears. \n \nDuring the audit, I designed and performed procedures that I considered appropriate under \nthe circumstances to enable me to gather evidence to address the specific objectives listed \nbelow; \n \ni) \nConfirm whether the funds received by Treasury were dully appropriated by \nparliament. \nii) \nEstablish whether funds appropriated and allocated were received by the different \nvotes \niii) \nEstablish whether the appropriated funds were utilised for the purpose for which they", "metadata": {"page": 23, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "were approved. \niv) \nAssess the existence and effectiveness of internal control systems. \nv) \nAssess the extent of achievement of planned output by the different entities \nvi) \nEstablish whether all funds disbursed were properly accounted for and value for \nmoney was attained. \nvii) \nMake appropriate recommendations to strengthen accountability and transparency. \n \nFrom the procedures undertaken the following summarised key findings were noted, the \ndetailed report was issued separately as the COVID 19 thematic report; \n \nSummary of key findings \n \n\uf0b7 \nUSD 345million received by GoU in respect of support to Bank of Uganda for Balance of \nPayment was confirmed received and banked intact in Citi bank New York to enhance \nthe Country\u2019s foreign reserves. \n \n\uf0b7 \nA total of UGX 676Bn was allocated and disbursed to various MDAs to settle domestic", "metadata": {"page": 23, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "arrears with a view of improving liquidity within the local business community. I noted \nthat 90% of funds used appropriately for the intended puropose; however, I noted \ndiversion of funds to pay for unrelated expenditure worth UGX 4.897Bn (0.7%), \nunsupported domestic arrears of UGX 27.38Bn(4%), and Payment for contested/rejected \ndomestic arrears of UGX.1.245Bn(0.2%). I also noted that UGX 33.8Bn (5%) was used \nto settle international obligations thus did not contribute to the stated objective since the \nfunds were externalised. \n \n\uf0b7 \nUGX 260Bn allocated for the Emyooga programme was disbursed to Microfinance \nSupport Centre with a goal of transforming household incomes by increasing \nemployment opportunities and access to financial services to the rural areas. Audit", "metadata": {"page": 23, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "confirmed that UGX 219.40Bn (84%) had so far been disbursed to 6,326 EMYOOGA \nSACCOs. It was, however, noted that the SACCOs were in the process of obtaining \noperational licenses; no MoUs had been entered into between the disbursing entity and \nthe beneficiary SACCOs; UGX.34,716,666,049 (1.3%), though disbursed, remained un-\naccessed by the beneficiary SACCO.", "metadata": {"page": 23, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "13 \n \n\uf0b7 \nA total of UGX.56.8Bn was disbursed to MSc to increase the funds available for on-\nlending to different businesses. I noted that MSc lacked capacity at zonal offices to \nappraise loans which was also manifested in the unbalanced approach for loan \nappraisals. A total of UGX 13b (23%) was disbursed to applicants without MSC finalising \nthe perfection of securities for the collaterals. UGX.2.5Bn (4%) was irregularly advanced \nto applicants contrary to the credit policy. A total of UGX 3.149Bn (6%) was advanced to \napplicants with no collateral. \n \n\uf0b7 \nA total of UGX.31.033Bn was disbursed to the Ministry of Science Technology and \ninnovation to support 23 selected projects of scientists and innovators engaged in", "metadata": {"page": 24, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "CoVID-I9 scientific research, including the procurement of specialized machinery and \nequipment, development of vaccines, drug diagnostics, and other operational costs. The \nfunds were divided into UGX.15.787Bn for purchase of Equipment and UGX.15.245Bn for \nOperational Costs. An MOU was entered with Presidential Scientific Initiative on \nEpidemics (PRESIDE) to provide technical and administrative oversight at an operational \nlevel. It was noted that most projects were progressing well. It was also noted that due \nto the general weaknesses identified, there was a need to provide more guidance to the \nbeneficiaries on how to account for Government funds. \n \n\uf0b7 \nOut of UGX 558.68Bn appropriated, 531.8Bn was disbursed to Uganda Development \nBank for recapitalization, leaving UGX 26.87Bn unremitted by the Ministry of Finance and \nEconomic Development. From the amount disbursed, funds worth UGX 234bn had been", "metadata": {"page": 24, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "paid out to various beneficiaries; by the time of the audit, the balance of UGX 292.66Bn \nwas still deposited in commercial banks. \n\uf0b7 \nOf the amounts paid out, UGX95bn was sent to financial institutions and SACCOs \nfollowing MoUs entered into by UDB and the financial Institutions, for the latter to on \nlend to stated beneficiaries. \n \n\uf0b7 \nEuros 1,602,370 (equivalent to UGX.7,136,910,000) received by UDBL from the \nEuropean Union for the Tourism Sector. As at 10th June 2021, 25 applications worth UGX \n9.55 Bn had been approved, and grant disbursements worth UGX 4.34 Bn. had been \nprocessed to 14 projects. \n \n\uf0b7 \nFurthermore, the Ministry of Finance and Economic Development disbursed UGX.126.9Bn \nto Uganda Development Corporation, to finance projects aimed at supporting the private", "metadata": {"page": 24, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "sector to avert the effects of Covid-19. I noted that the capitalisation grants to UDC are \nassigned to specific projects thereby nullifying the internal appraisal processes of UDC. \n54% of the funds remained unutilised as the projects were not ready for investment. \n \n\uf0b7 \nUGX 253.59bn was released and received by the Ministry of Health. MoH used the \nmoney to procure medical supplies, 282 motor vehicles, pay allowances to medical \nworkers, masks, intensive care equipment and build modular houses at 6 border points. \nAll the planned activities were undertaken amidst many challenges. I noted a diversion \nof funds totalling UGX 7.98Bn. Though funds were paid for the acquisition of vaccines, \nthere were delays in the delivery of the vaccines due to the global demand. There was a \ndelay in the installation of intensive care equipment in Gulu, Mbarara, Bombo, and Lacor \nhospitals due to building inadequacies. \n \n\uf0b7", "metadata": {"page": 24, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nWhereas medical workers requested to be given UGX.150,000 per day as risk allowance, \nthis was not possible and they were instead paid UGX.80,000 per day. They made a", "metadata": {"page": 24, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "14 \n \nrequest to parliament to have this amount exempted from taxes, but the issue was \nnever resolved. In the meantime, UGX.2.2Bn meant for PAYE was not deducted from the \nallowances paid to medical workers in the period under review. \n \nKey Recommendations \n\uf0b7 \nManagement should ensure that compensating controls are put in place in times where \nconventional controls cannot be implemented. \n\uf0b7 \nSensitisation of private individuals and organisations to whom public resources are \nentrusted should be done prior to disbursement of the funds. \n\uf0b7 \nThe PS/ST should clearly communicate the intentions of given initiatives before funds \nare disbursed to implementing agencies to avoid a mismatch between the intended \nobjectives and actual outputs. \n\uf0b7 \nGovernment entities and projects should be assessed for capacity to implement given \ntasks before funds are disbursed to them.", "metadata": {"page": 25, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "2.1.3. \nCompensations/Acquisition of Right of Way for Selected Transmission Lines Projects \n \nThe Government, through the Ministry of Energy and Minerals Development, is responsible \nfor provision of\n policy guidance in the development and exploitation of the energy resources, \ncreation of an enabling environment to attract investment, and provision and utilization of \nenergy resources. \n \nCurrently, UETCL\u2019s network consists of 2,989.2Km of high voltage lines distributed as; \n1,008km of 220kv, 1,946km of 132kv and 35km of 66kv , with 25 substations with a total \ntransformation capacity of 2829.5 MVA. However, this is still low, given that Uganda still has \none of the lowest per capita electricity consumption in the world with 215 KWh per capita \n2\nper year, given that the Sub-Saharan Africa\u2019s average is 552Kwh .", "metadata": {"page": 25, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Government has spent significant amounts in compensation of Projected Affected Persons. \nIn a period of 5 years, financial years between 2016/17 to 2019/20, a total of UGX.564.57Bn \nhas been spent in compensations of PAPs. \n \nThe delays in undertaking the construction of the transmission lines has been largely \nattributed to inadequacies in the compensation of Project Affected Persons. The challenges \nfaced in \u201cAcquisition of the Right of Way (ROW)\u201d have led to delayed implementation of a \nnumber of projects in the Energy Sector. \n \nOwing to concerns over the progress of the implementation of the transmission \ninfrastructure under UETCL, the Office of the Auditor General undertook an audit on the \ncompensation of PAPs under selected transmission line projects. The overall objective of the \naudit was to ascertain whether the compensation process of the Project Affected Persons \n(PAPs) was implemented in accordance with the Compensation Guidelines and other \nGovernment Legal Frameworks to enable efficient and effective service delivery.", "metadata": {"page": 25, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "The scope of the audit included the Grid Extension and Reinforcement Project (GERP) and \nthe Mputa Transmission lines. The following are the summary of the key findings and \nrecommendations made, and the details are in the thematic report on compensations; \n \n2 Uganda energy situation-energypedia.", "metadata": {"page": 25, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "15 \n \n \nSummary of Key Findings: \n \n \uf0b7\n56% of the PAPs for GERP and Mputa projects were not properly identified, and this \nresulted in a mismatch between the number of PAPs appearing on the payment files and \nthe survey reports and Valuation Reports prepared by the Chief Government Valuer. \n \n \uf0b7\nThe valuation process was marred with a number of irregularities, which included; the \nuse of un-updated district compensation rates; and unverified legal interests in the land; \nresulting in unnecessary revaluations and ligation which in turn delayed the RAP \nprocesses, thus affecting timely project completion. \n \n \uf0b7\nThe budgeting, disbursement, and absorption of compensation funds were not properly \nmanaged. There are seemingly budget slacks. Although the Survey and Valuation \nReports are supposed to guide the budgeting for compensations, management prepared", "metadata": {"page": 26, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "budget estimates which were not supported, this resulted in over budgeting to the tune \nof UGX.111.3Bn. \n \n \uf0b7\nI noted that of the released compensation amount of UGX.21.5Bn for both GERP and \nMputa Projects, only UGX.5.86Bn (27%) was paid to PAPs, thus resulting in unspent \nfunds to the tune of UGX.15.64Bn (73%). This mostly affected the GERP Project which \nhad UGX.13.17Bn not utilized, while Mputa had UGX.1.66Bn. \n \n \uf0b7\nI also noted significant delays in compensation of PAPs. 1,109 PAPs (52.2%) for Mputa \nand 821 (35%) for the GERP Transmission Line remained unpaid by the time of \nconcluding the audit (November, 2021). This was mainly caused by outstanding", "metadata": {"page": 26, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "grievances whereby 52% and 15% of the grievances remained unresolved for GERP and \nMputa Projects, respectively. Relatedly, Compensations in kind also delayed whereby out \nof 149 PAPs identified, only 93 were resettled, leaving 56 PAPs not resettled. \n \n \uf0b7\nI noted a number of inadequacies in the construction of the resettlement houses which \nincluded; irregular payments to contractors, delayed progress of works, discrepancies in \ndrawing specifications and BOQs, poor materials used for construction, and a number of \ndefects which were not rectified. \n \nKey Recommendations \n \n \uf0b7\nManagement should always ensure that the RAP consultants thoroughly validate the \npreliminary information obtained during social survey and valuation processes, to enable \naccurate justification of PAPs \n \uf0b7\nThe District Land Boards should ensure compensation rates are regularly updated and \ncommunicated to the CGV, to enable appropriate valuation of the land and properties.", "metadata": {"page": 26, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7\nManagement should streamline its RAP processes, including proper identification of \nPAPs, clear valuation processes, and timely submission of PAP documentation, among \nothers. \n \uf0b7\nManagement should ensure proper supervision and monitoring of construction works.", "metadata": {"page": 26, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "16 \n \nEmphasis of Matter \n \nWithout qualifying my opinion, I draw attention to the following matters in the consolidated \nfinancial statements that in my judgment are of such importance and fundamental to users\u2019 \nunderstanding of the financial statements; \n \n\uf0b7 \nGovernment Loans (Borrowings) \u2013 UGX 69.6Tn \n \nAs disclosed in the statement of financial performance, the government Loans have \nincreased from UGX.56.9Tn, in 2020 to UGX UGX 69.6Tn in 2021 constituting an increase of \nUGX 12,718Bn (22.4%) increase. This position reflects the country\u2019s increased borrowing to \ncombat the effects of the Covid19 pandemic. \n \n\uf0b7 \nDomestic arrears \u2013 UGX 4.65Tn \n \nAs disclosed in the statement of financial performance, the domestic arrears have increased", "metadata": {"page": 27, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "from UGX.3.83Tn in 2020 to UGX 4.65Tn in 2021 constituting a 21% increase. The amount \nrepresents 9% of the revised budget of government of Uganda for the financial year \n2020/21. This is an indication of the failed commitment control system. The growth trend \nappears unsustainable and on the rise. This could also be as a result of approving \nsupplementary budgets with no matching funding. \n \nThe PS/ST explained that government is currently implementing a Domestic Arrears Strategy \nto clear significant amounts of the verified arrears. \n \n\uf0b7 \nContingent Liabilities \u2013 UGX 160Tn \n \nAs disclosed in the statement of contingent liabilities, Government contingent liabilities have \nincreased to UGX160Tn up from UGX.11.5Tn reported in the previous year, representing a \n1,290% increase. Most of the contigent Liabilities are arising out of court awards and", "metadata": {"page": 27, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "compensations. The trend continues to appear unsustainable in the event that a significant \npercentage crystallises into liabilities. \n \n\uf0b7 \nClassified Expenditure \u2013 UGX 840.8 Bn \n \nAs disclosed under note 8, a total of UGX 840.8 Bn relates to classified expenditure. In \ncompliance with Section 24 of the Public Finance Management Act, 2015 (Classified \nExpenditure), this expenditure is to be audited separately and a separate audit report \nissued. \n \n\uf0b7 \nNon-Consolidation of Subventions \n \nIt should be noted that this opinion excludes the details of expenditure worth UGX. 955Bn \nfor subventions whose financial statements are not consolidated in the financial statements \nof the parent votes. Separate opinions were given on the individual financial Statements of \nthe subventions.", "metadata": {"page": 27, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "17 \n \nOther Matter \n \nI consider it necessary to communicate the following matters other than those presented or \ndisclosed in the financial statements; \n \n2.1.4. \nTax policy \n \na) Absence of clear policies to guide the Tax Exemptions and other Investor Incentives \n \nAudit observed that there is no clear policy guideline for the issuance, management, and \nmonitoring of the different tax benefits and incentives issued by the Government to different \nindividuals. The absence of a clear mechanism and framework exposes the scheme to \nmismanagement and abuse. \n \nFor example, there were inconsistencies in the grant of tax benefits to the various \nbeneficiaries, and some conflicted with earlier policy decisions that were made by \nGovernment. A review of the letter of undertaking/commitment signed by the Minister of \nFinance relating to an Industrial park establishment revealed that Government was taking", "metadata": {"page": 28, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "over import duty and VAT on all materials and machinery imported by the beneficiary with \nthe exception of steel items. However, a review of the Memorandum of understanding \nsigned by the GoU and an Industrial park company investor revealed that there was no \nexception relating to steel. \n \nIt was also established that Government had offered a 10 year tax holiday to the steel \nsector with the aim of promoting the growth of the sector as well as boosting employment. \n \nIn light of the above, there is conflict in policy as presented in the above agreements and \ncommitments. The Government may not achieve the objectives for having granted the 10 \nyear tax holiday for the steel sector. \n \nIt was also noted that there is no mechanism in place for evaluating and or assessing the \nimpact of the benefits granted. I noted 20 beneficiaries whose benefit period has since \nexpired without follow up. \n \nIn the absence of a monitoring framework, Government is not in position to assess the", "metadata": {"page": 28, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "impact of the tax benefits granted to the various beneficiaries. Government is bound to lose \nrevenues that would have accrued if the beneficiaries were effecting payments and this may \nalso cause unfair competition in the market. \n \nManagement indicated that the issue at hand would be solved by the ongoing development \nand implementation of the tax governance framework. \n \nThe PS/ST is advised to develop a comprehensive framework to guide the identification of \nbeneficiaries/criteria, the nature of benefits to be granted, the duration of the grant and \nassessment mechanisms.", "metadata": {"page": 28, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "18 \n \n \nb) Continued loss of revenue due to Failure by Government to meet contractual obligations \n \nThe Government of Uganda (GOU), through the Ministry of Finance Planning and Economic \nDevelopment, entered an agreement on 4th April, 2003 with Oil Refinery company for the \ndevelopment of oil palm industry in Uganda. Under Article 5(7) of the Agreement, GOU was \nrequired to pay VAT on the products of the all companies envisaged under the project from \nthe first year of the project activities and ending after a period of eleven (11) years from the \nyear of handing over the 26,500 hectares of land. It was agreed that the company would \nthen refund (subject to clause 3 of article 4) the VAT paid by the Government with interest \nover a period of eight (8) years in eight equal installments, including accrued interest \nstarting in the twelfth (12th) year.", "metadata": {"page": 29, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "However, Government has breached the contract by failing to provide the balance of the \n10,000 hectares of land as agreed. There is no documentation to show that the Ministry has \nmade any follow-up on this matter. \n \nDue to Government\u2019s failure to provide the balance of the required land, the Ministry of \nFinance, Planning and Economic Development has continued to settle all tax obligations on \nbehalf of the Company. In the financial year 2019/20, the Minister wrote off a total of \nUGX.194Bn in line with the Tax Procedures Code Act (2019), being arrears as at 30th June \n2019 and also a total of UGX.79.8Bn was accumulated in the year under audit in arrears. \nUnder the circumstances, it is apparent that instead of paying for 11 years, Government has \nso far paid for 17 years and is still continuing while the chances of recovery appear to be \nslim. \n \nThe continued failure to provide land continues to affect the Uganda Revenue Authority in", "metadata": {"page": 29, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "its revenue collection efforts and also affects Government of Uganda revenue performance. \n \nManagement explained that Government has provided additional Land in Sango Bay bringing \nthe total land provided to 22,500 hectares. The balance of 4,000 hectares is being sought in \ncollaboration with Ministry of Agriculture Animal Industry and Fisheries. Once this is \ncompleted, the Company shall start refunding GoU taxes accumulated accordingly. The \nMinistry has further written to the Attorney General seeking advice on how the agreement \ncan be amended. \n \nI advised the Accounting Officer to liaise with the responsible agencies and ministries to \nexpeditiously address the land issue. In the meantime, the PS/ST should also follow up with \nthe Attorney General on the possibility of reviewing the terms of the agreement. \n \nc) Continued build up of Government tax arrears; UGX.212.747Bn \n \nArticle 17 of the 1995 Constitution of the Republic of Uganda (as amended) provides that it", "metadata": {"page": 29, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "is the duty of every Citizen to pay taxes. Article 152(1) provides that no tax shall be imposed \nexcept under the authority of an Act of Parliament. The same Article provides that where a \nlaw enacted under the provision of the Article empowers any person to waive or vary a tax \nimposed by that law, that person or authority shall report to parliament periodically on the \nexercise of those powers as is provided for by the law. \n \nThe tax procedures Code Act (as amended in 2019) provides that the Minister shall pay \ntaxes due and payable by the Government arising from any commitment made by the", "metadata": {"page": 29, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "19 \n \nGovernment to pay taxes on behalf of a person, or owing from the Government through the \nacquisition of goods and services. In addition, Section 40A (2) of the same Act provides that \nall unpaid taxes by Government as at 30th June 2019 are written off. The Minister was \ntasked with gazetting the list of all taxes waived under the provision of Section 40A(2). \n \nIn compliance with the provision of the Tax procedure Code Act, the Minister issued a list of \nbeneficiaries of the said tax waivers totalling UGX.809.734Bn. This was gazetted in the \nUganda Gazette of 13th March 2020. The write-off in question affected the tax heads and in \namounts as summarised in table 4below; \n \nTable 4: Tax arrears \nNature of Tax \nTotal Amount written off (UGX) \nValue Added tax (VAT)", "metadata": {"page": 30, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Value Added tax (VAT) \n348,986,568,013 \nStamp Duty \n8,460,910,000 \nPay As You Earn (PAYE) \n158,293,699,210 \nImport Duty \n98,569,989,826 \nExcise Duty \n52,685,114,511 \nIncome Tax \n114,133,374,978 \nWithholding Tax \n28,604,598,593 \nTotal \n809,734,255,131 \n \nIt has however been noted, that one year later, a total of UGX.212.747Bn has already been \naccumulated at the Ministry of Finance, Planning and Economic Development in tax arrears \nas 30th June 2021. The occurrence is a manifestation that a tax write off is not the solution", "metadata": {"page": 30, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "for the issue at hand. The tax arrears build up continues to negatively affect the revenue \ncollection efforts of Uganda Revenue Authority. \n \nManagement responded that the writing off of tax arrears by the minister was consistent \nwith the law, specifically Article 152 (1) of the Constitution and Section 40 of the Tax \nprocedures Code Act. This discretionary power is useful because it addresses strategic \ncircumstances which merit government interventions that were not provided for in the tax \nacts. Exercise of this discretion by the minister is reported to parliament every end of the \nquarter. \n \nI advised the Accounting Officer to review the practice and come up with a lasting solution \nin respect of companies to which tax incentives and other benefits a granted. \n \n2.1.5. \nAudit of public debt \n \na) \nPublic Debt Portfolio Analysis \n \nThe reported total public debt as at 30th June, 2021 stood at UGX.69,600 Bn, of which", "metadata": {"page": 30, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Domestic Debt Stock was UGX.25,288 Bn and the External Debt Stock was valued at \nUGX.44,312 Bn. This is an increase of UGX.13,429 Bn, equivalent to 23.9% when compared \nto the debt stock of UGX.56,892 Bn reported as at 30th June 2020. The table below shows \nthe details;", "metadata": {"page": 30, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "20 \n \nTable 5: Debt portfolio analysis \nFinancial year \nended \nDomestic debt (UGX Bn) \nForeign debt (UGX \nBn) \nTotal (UGX Bn) \n% \nchange \nJune 21 \n25,288 \n44,312 \n69,600 \n23.90% \nJune 20 \n17,975 \n38,196 \n56,171 \n23.50% \nJune 19 \n15,221 \n30,905 \n46,126 \n11.10% \nJune 18 \n13,059 \n28,386 \n41,445 \n23.60% \nJune 17 \n11,407 \n22,102 \n33,509", "metadata": {"page": 31, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "33,509 \n \nSource: Audited financial statements of Vote 130 \n \nFrom the above, I noted that there was a consistent increase in the total debt and from \nfinancial year 19/20 to 20/21, there was an increment of UGX. 13,429Bn (23.90%). The net \nincrease in the debt is due to increased borrowing from both the domestic and external \nsources, with domestic debt accounting for a higher increase. \n \nPublic debt is continuously on the rise, a fact that is attributed to persistent budget deficits \n(mismatch of government revenue and expenditure), rollover of liquidity papers, new \nborrowings for various development projects and foreign exchange loss arising from the \ndepreciation of Ugandan Shilling against stronger currencies. The graph below illustrates the \ntrend of public debt stock by type over the past five years; \n \n \nFigure 2: The trend of public debt", "metadata": {"page": 31, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Although government has developed a domestic revenue mobilisation strategy, this appears \nnot to be in harmony with the spending, raising concerns of sustainability. \n \nManagement indicated that revenue Mobilization had recently been affected by reduced \neconomic activity as a result of restrictions imposed to slowdown the spread of COVID 19. \nCOVID 19 has also led to additional expenditure pressures, which necessitated increased \nborrowing. Going forward, Government will focus on reducing expenditure and increasing \nrevenues in a bid to bridge the fiscal gap and reduce the rate of debt accumulation. These \ncommitments have been clearly spelt out in the Charter for Fiscal Responsibility, which is \n0\n10,000\n20,000\n30,000\n40,000\n50,000\n60,000\n70,000\n80,000\nJun-17\nJun-18\nJun-19\nJun-20\nJun-21 \nJun-21\nDomestic debt (UGX Bn)\nForeign debt (UGX Bn)\nTotal (UGX Bn)", "metadata": {"page": 31, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "21 \n \nawaiting Parliamentary approval. Further to the above, Government is finalising the Public \nInvestment Financing Strategy (PIFS) that will improve alignment of government \nprogrammes and projects to suitable financing options. The Strategy will in turn enhance the \nefforts in resources allocation, utilisation and address issues on debt sustainability. \n \nI await implementation of the Charter for Fiscal Responsibility. \n \nb) \nAssessment of debt sustainability \n \n\uf0b7 \nDebt to GDP Ratio \n \nDebt to GDP ratios is a measure that compares what a country owes (total debt) and what it \nproduces (manufactures or a service). The ratio reliably indicates a country\u2019s ability to pay \nback its debt. A high debt-to-GDP ratio may make it more difficult for a country to pay both \ninternal and external debts and may lead creditors to seek higher interest rates when \nlending due to the low credit rating of the country that pushes its lending risk high.", "metadata": {"page": 32, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Though the IMF has recommended 50% as the point of safety, many developed countries \nhave gone up to 200%. However, according to the IMF, the developing countries are more \nprone to economic shocks and exchange rate risk, thus advising on a 50% threshold. \n \nA review of Uganda\u2019s Debt to GDP revealed a 6% increase from 41% last year to 47% in the \nyear under review. The graph below illustrates the movement; \n \nFigure 3: Debt to GDP ratio \n \n \nFrom the above, it can be seen that though Uganda\u2019s GDP has been increasing over the \nyears since 2013/14, its debt position has also increased. The rate of increase of debt is \nhigher than the rate of increment in the GDP levels, which creates a risk of reaching \nunsustainable levels in the future. \n \nManagement attributed the increased debt levels to Government\u2019s ambitious infrastructure", "metadata": {"page": 32, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "program under National Development Plans I and II that were particularly focused on the \nenergy (dams and power lines) and transport sectors. In addition, the need to expedite \n29.0 \n31.0 \n34.0 \n35.0 \n41.0 \n47.0 \n -\n 20\n 40\n 60\n 80\n 100\n 120\n 140\n 160\nJun 2016\nJun 2017\nJun 2018\nJun 2019\nJun 2020\nJun 2021\nTotal Debt(UGX Bn)\nGDP\nDebt to GDP Ratio", "metadata": {"page": 32, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "22 \n \ncommercial production of our oil resources has also necessitated the development of \ninfrastructure which will aid the production process. \nIt was also indicated that the onset of the COVID-19 pandemic had led to a contraction in \neconomic activity and shortfalls in domestic revenue collections while at the same time \ncreating additional spending areas to mitigate the pandemic impact. To maintain debt at \nsustainable levels, Government had embarked on a fiscal consolidation strategy aimed at \naccelerating implementation of the Domestic Revenue Mobilisation Strategy and expenditure \nrationalisation. \n \nI advised the PSST to consider exploring ways of reducing dependence on debt and \nexpediting the implementation of strategies to enhance revenue generation for the country \nand/or reducing/rationalising government expenditures. \n \n\uf0b7 \nInterest to Total revenue ratio \n \nThis benchmark shows the proportion of the domestic revenue that goes into servicing", "metadata": {"page": 33, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "domestic interest costs. Since donor grants are inherently subject to uncertainty, the interest \ncost of domestic debt is considered in relation to the domestically-raised component of the \nbudget only. Government set the ceiling to be 12.5% in its debt strategy. The table 6 below \nshows the assessment of the benchmark over the years; \n \nTable 6: Total revenue ratio \nFinancial year \nTotal domestic \nRevenue - UGX \nTotal Interest - UGX \n% of Interest to \nrevenue \nBenchmark \n 2020/21 \n20,199,013,110,066 \n3,118,535,556,062 \n15.4 \n< 12.5 \n 2019/20 \n17,453,981,414,553 \n2,475,531,497,733 \n14.2 \n< 12.5", "metadata": {"page": 33, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "< 12.5 \n 2018/19 \n17,128,743,726,614 \n2,005,380,900,988 \n11.71 \n< 12.5 \n 2017/18 \n15,219,588,786,381 \n1,937,371,886,367 \n12.73 \n< 12.5 \n \nIt has been established that the interest to revenue benchmark has been breached as \nevidenced above. Almost 15% of the revenue being collected is going into servicing interest \npayments. This is gradually reducing the funds available for funding other critical \ngovernment expenditures, given that 25% goes to salaries and wages. \n \nManagement indicated that efforts were being made to reduce the interest to revenue ratio \nby taking steps to reduce the level of domestic borrowing a view to attaining the operational \nceiling of 1% of GDP and also working to increase domestic revenues through the", "metadata": {"page": 33, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "operationalization of the Domestic Revenue Mobilization Strategy (DRMS). The \nimplementation of the DRMS had stalled in the last two years due to the pandemic-induced \nshocks. The DRMS aims to increase to tax to GDP ratio by 0.5 percentage points every year \nlargely through the improvement of revenue administration. \n \nI advised the PS/ST to implement strategies of reducing the growth of interest expenditures \nat the same time increasing revenue mobilisation. \n \n\uf0b7 \nLow Tax to GDP ratio \n \nSection 2.1 (i) Public Debt and other Financial Liabilities Management Framework for the \nFY2018/19 to FY2022/23 provides that the Government of Uganda shall work towards", "metadata": {"page": 33, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "23 \n \nraising its tax-to-GDP ratio to the Sub-Sahara Africa\u2019s (SSA) average of 15.1% as part of \nUganda\u2019s Financing Strategy to limit on borrowing. \n \nAudit reviewed the Country\u2019s tax collections and its Gross Domestic Product (GDP) and \nnoted that from the start of the implementation of the framework in the FY2018/19, Uganda \nhad made an improvement and currently stands at 13%; however, more strides have to be \nmade to make it to 15% and more. Refer to the table 7 below; \n \n \nTable 7: Tax to GDP ratio \nFinancial year \nGDP at Current Prices \n(UGX) Billions \nTAX collections \n(UGX) Billions \nTax/GDP \n2020/21 \n147,962 \n18,594 \n13% \n2019/20", "metadata": {"page": 34, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "2019/20 \n139,689 \n16,042 \n11% \n2018/19 \n132,090 \n16,146 \n12% \n \nThe continued failure to collect sufficient revenue will imply more borrowing and creates a \nrisk that the Country may not achieve the World Bank Sustainable Development Goals by \n2030. \n \nManagement indicated that the Ministry\u2019s tax expenditure analysis revealed that government \nwas losing up to 1 to 2 percentage points of GDP per year, besides the fact that Government \nof Uganda informal economy is close to 50% of GDP. In addition, a VAT gap analysis carried \nout discovered a 40% compliance gap. The Ministry is implementing tax administration \nmeasures as part of the measures within the Domestic revenue mobilization strategy to \nimprove tax to GDP ratio that include Automation of URA revenue collection systems through \nEFRIS, Digital Tax Stamps, Enhancement of ICT infrastructure, Installation of scanners at all", "metadata": {"page": 34, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "customers border entry points, Improved Tax payer education, Implementation of a project \nto improve record-keeping by SMEs for improving compliance. \n \nManagement through URA also committed to ensuring increased tax compliance. \n \nI advised the PSST to formulate policies that will further enhance domestic revenue \nmobilization. In the meantime, government should consider limiting its expenditure to within \nthe limits of sustainable financing. \n \nc) \nContinued securing of High cost Temporary advance from Bank of Uganda \n \nSection 36 (3) of the PFMA 2015, stipulates that the Minister of Finance may raise a loan by \nissuing Government bills, bonds or stock or using any other method the Minister may deem \nexpedient, including a fluctuating overdraft. \n \nMinistry of Finance, Planning and Economic Development requested for a temporary \nadvance of UGX.2.1 Trillion from Bank of Uganda in line with the Public finance Management", "metadata": {"page": 34, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Act, 2015. The advance was granted on 1st October 2020, the Bank of Uganda granted the \nrequest based on an average interest rate of the 272 day Treasury bill rate of 9.999%. \nGovernment paid an amount of UGX.98,770,218,774 as interest for the temporary advance \ndue to delayed pay back.", "metadata": {"page": 34, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "24 \n \nThe Accounting Officer indicated that the Ministry had embarked on negotiation with the \ncentral bank to adjust the interest rate to a fairer benchmark, though this still has to be in \nline with the Bank of Uganda Act which stipulates use of a market rate. \n \nI await the outcome of the negotiations. \n \nd) \nAbsence of Policy to manage Interest rate risk \n \nA Policy Framework serves as the guiding policy document for institutional development. \nThe Policy Framework translates goals and objectives into attainable targets with \noutreaching impacts. Audit noted that the Treasury did not have a policy to manage interest \nrate risk. Without a Policy, there are no streamlined and institutionalized interventions that \nfoster proper safe guards of public resources. \n \nIt was noted that the country continues to engage in the acquisition of debt with floating \ninterest rates from Bilateral countries and Commercial Banks that use the \u2018Libor\u2019 and", "metadata": {"page": 35, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\u2018Eurobor\u2019 interest rates and thus the need for safeguards to be imposed. \n \nIt was further noted that the Government debt management policy on external debt does \nnot give sufficient guidance on the use of instruments such as \u2018SWAPs\u2019 in risk management. \nAs a result, most products are market-driven which is exposing Government further to new \nrisks. \n \nI noted that Government entered into a SWAP arrangement with two commercial banks \ntowards the repayment a loan. A review of interest movements on the LIBOR revealed that \nGovernment has since made a financial loss of UGX.65,627,696,205 and has not yet \nbenefited from the SWAP agreements with the two banks. \n \nThe Accounting Officer responded that the conclusion of the 15-year Interest Rate Swap \ntransaction in June 2016 was a risk mitigating action against possible increases in US$ \nLIBOR which was made on the basis of historical US$ LIBOR rates. It could not take into", "metadata": {"page": 35, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "account the ramifications of the CoVID-19 pandemic and the associated interventionist \nchanges in US Monetary policy; as they were not evident in 2016. Current Indications are \nthat restoration of market based interest rates will occur in the near future and hence \npointing to the necessity to keep the SWAP in place as insurance against likely future \ninterest rate increases. Government is currently undertaking a midterm review of the Public \nDebt Management Framework (PDMF) 2018. The proposed measure will therefore be \nconsidered and appropriate policy actions will be instituted for the remaining period of the \nframework and the longer term. \n \nI advised management is to develop a policy on management of interest rate risk to \nminimise the exposure. \n \ne) \nFailed on-lending scheme \n \nGovernment of Uganda has over the years, secured funds for on-lending to various \nministries, departments and agencies to undertake various projects. Whereas MDAs signed", "metadata": {"page": 35, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "the on-lent loan agreements, there was an inability by some of the MDA\u2019s to actually re-pay \nthe on-lent loans. It was oserved that only Four(4) out of the Thirteen(13) MDA\u2019s were \nfound to be compliant with the repayment of the loans.", "metadata": {"page": 35, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "25 \n \n \nIt was further noted that; \n \n\uf0b7 \nThere were no criteria in place to assess which MDAs to lend to. \n\uf0b7 \nThere was no record of assessment/ feasibility studies undertaken to establish whether \nthe choice of on-lent financing was the best modality to finance the infrastructure \nprojects. \n\uf0b7 \nI noted that Government used non-concessional loans for on-lending, which attracted \nhigher interest rates and shorter grace periods for the loan repayments as compared \nto the concessional loans which made it very costly. Some MDAs have had challenges \nwith absorption and thus repayment. \n \nWithout a clear policy in place, the above shortcomings will continue to occur. This is \ncausing a strain on government as funds are diverted to pay the loan obligations. \n \nThe Accounting Officer noted the observation and indicated that some of the beneficiary", "metadata": {"page": 36, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "agencies that were not servicing the loans were taking various steps to have the issues \nresolved including seeking cancellations, write off loans by Government, and conversion of \nloan into equity among others. \n \nGovernment should develop a clear on-lending policy if it continues to use the above option \nas a channel for funding projects. \n \n2.1.6. \nManagement of ICT in government \n \na) Failure to rationalize IT investments \n \nAudit observed that there is massive duplication of IT systems and projects by the different \nMDAs attributable to implementation of IT initiatives in silos by the different MDAs. This has \nthe effect of resulting into wastage of resources. \n \nThe isolated implementation of ICT initiatives also has the effect of compromising the \nstandard of ICT infrastructure used by Government, which has the effect of compromising \nservice delivery and wasteful expenditure on ICT systems that are not to be used.", "metadata": {"page": 36, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Audit noted that several MDAs have procured several systems with the same functionality, \nestablished data centers, server rooms and disaster recovery sites to which the government \nhas spent billions of shillings and the same continue claiming an annual maintenance fee. \nThe major challenges, however, are that due to rapid technological changes, the \ninvestments require frequent upgrade infrastructure. \n \nAudit noted that whereas the ICT strategy gives guidelines on the budgeting and acquisition \nof ICT systems including the involvement of the Ministry of ICT and NITA in ensuring \nstandardization of systems and prevention of duplication of government systems, the \ncontinued individual actions by some MDAs has resulted in uncoordinated budgets and \nprocurements of systems. \n \nIt is important to standardize, streamline and harmonize the budgeting, acquisition, \ndeployment and disposal of IT services in Government to eliminate duplication; enhance \ninformation sharing and interoperability of e-government applications.", "metadata": {"page": 36, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "26 \n \n \nManagement explained that rationalization of IT investments has been an ongoing activity \nspearheaded by NITAU. This activity resulted in a report which is still under discussion. \nDespite the desire by NITAU to rationalize IT investments, it is true that some Government \nMinistries, Departments and other Agencies have continued to procure own systems and \nInfrastructure. However, with the ongoing discussion, it is expected that rationalization of \ngovernment\u2019s investments in IT systems will be achieved. \n \nI advised Government to expedite the ongoing rationalization and also streamline the \nbudgeting and procurement of different ICT systems through seeking concurrence of the \nMinistry responsible for ICT and NITAU before funds for system acquisition are included in \nthe budgets of MDAs. \n \nb) Weaknesses in management of recoveries arising out of anti-corruption cases \n \nSection 10(4) of the Anti-corruption Act, provides that in addition to any other penalty", "metadata": {"page": 37, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "imposed upon conviction on a person order that person to make good the loss occasioned to \nthe property; and the value of the property or damage to the property shall constitute a civil \ndebt from the person to the Government or public body concerned and shall be recoverable \nfrom that person. \n \nA review of decisions from the Anti-corruption Division of the High Court revealed that on \nseveral instances, the court has made orders as to refund of proceeds of corrupt practices \nby persons convicted. The following were observed; \n \n\uf0b7 \nA sample of the cases reviewed revealed that a total of UGX.24,734,116,888 is \noutstanding as a result of decisions of the courts for refund of proceeds of corrupt \npractices but these are not provided for in the consolidated accounts as receivable. \n \n\uf0b7 \nIn my 2019/20 report for the DPP, I also observed that a total of", "metadata": {"page": 37, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "UGX.18,940,206,109 remained uncollected in spite of the setup of a department \nwithin the Office of the DPP responsible for enforcing the recovery of compensation \norders. \n \n\uf0b7 \nThe gaps in the collection were partly attributed to the lack of a clear mandate to the \nDPP, especially in so far as recoveries of compensation would require civil processes \nwhich are outside the mandate of the criminal mandate of the Office of the DPP. \n \n\uf0b7 \nWhereas the mandate of recovery would be a reserve of the Attorney General who is \nvested with the mandate to litigate civil matters, it was noted that the ODDP has in \nplace a unit for recovery of funds arising out of prosecutions in DPP while IGG also \nhas another. \n \nFailure to enforce the recovery of court orders, denies government the funds that should \nhave been generated and undermine the objective of recovering losses incurred by the \ngovernment due to corrupt practices.", "metadata": {"page": 37, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "It is therefore important that the Government comes up with a regulatory framework that \naddresses the inadequate legislation on recovery of proceeds of crime, provide for: civil \nasset recovery, detailed procedures in conviction based recovery, asset management and", "metadata": {"page": 37, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "27 \n \ndisposal, recovery of consequential benefits, and how to apply the recovered proceeds, \namong others. \n \nThe Accounting Officer responded that the Ministry had initiated consultations with the \nOffice of DPP, IGG and Attorney General for establishment of comprehensive procedures for \nrecovery of proceeds of crime, provide for civil asset recovery, provide for detailed \nguidelines in conviction based recovery, provide for asset management and disposal, \nrecovery of consequential benefits including application of the recovered proceeds. \n \nI await the outcome of the consultations. \n \n2.1.7. \nAudit of public investments \n \na) Failure to Appraise Projects before funding - UGX.643,434Bn \n \nSection 3.18 of the Development Committee Guidelines provides that assessment of the \nproject viability shall be measured by the following key indicators including: The Financial", "metadata": {"page": 38, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Cost Benefit Ratio (CBR), the financial Net Present Value (NPV) and the financial Internal \nRate of Return (IRR). \n \nThe guide further requires that all new Projects requiring funding should undergo four levels \nof approvals before they can be admitted into the Public Investment Plan (PIP). The four \nlevels include; preparing a project concept in line with NDP (II), preparing a Project Profile \ndemonstrating Key results, undertaking a prefeasibility study and undertaking feasibility \nstudy. \n \nReview of the Public Investment Plan for the year ended 30th/06/2021, revealed that out of \na sample of 371 projects, 245 projects (66%) with total Project values of UGX.643,434 Bn \ndid not have feasibility studies undertaken. \n \nFailure to conduct feasibility studies may lead to the projects failing to achieve the desired \nproject output, duplication or conflicting Government interventions thus causing wasteful \nexpenditure.", "metadata": {"page": 38, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "expenditure. \n \nManagement committed that going forward all projects will be appraised before inclusion in \nthe PIP. In addition, the DC guidelines were being revised to take into consideration other \nexceptions, such as social projects, IT solutions among others. \n \nI await the outcome of the commitment. \n \nb) Non-compliance with the 70% Capital Threshold \n \nSection 2.2: Scope and Institutional arrangements of the Development Committee guidelines \nrequires that Public investments admissible into the PIP shall be limited to public spending to \nacquire or establish physical assets necessary to facilitate production and delivery of \neconomic, social and administrative services. Interventions that can be undertaken in the \nrecurrent budget shall not be accommodated in the PIP. In this regard, for a project to be \nadmitted into the PIP, its capital component shall account for at least 70% of the total \nproject cost. It further states that interventions that can be undertaken in the recurrent \nbudget shall not be accommodated in the PIP.", "metadata": {"page": 38, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "28 \n \n \nAudit reviewed the Public Investment Plan for the year ending 30th June 2021 and noted \nthat 125 projects in the PIP with total budgets of UGX.4,410Bn did not meet the \nrequirement of 70% capital intervention. The aggregate project expenditure on \nadministrative functions was 75% while the aggregate capital expenditure requirements \nwere only 25% of the entire total budget. I noted that some projects had 100% \nadministrative expenditure. Refer to the table 8 below; \n \nTable 8: Noncompliance with the 70% capital threshold \nNo. of projects \nTotal Budget - \nUGX \nCapital \nExpenditure - UGX \nAdministrative \nexpenditure - UGX \n% of \nadministrative \nexpenditure \n125 \n4,410,809,884 \n1,087,332,424", "metadata": {"page": 39, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "3,323,477,460 \n75% \n \nIf this remains unchecked by the development committee, the government runs a risk of \nspending project funds on recurrent expenditure and thus failing to meet the targets set in \nthe National Development Plan III. \n \nIn addition, it was noted that the Development Committee does not consider software and \nintellectual properties as assets. This implies that any innovations in the ICT sector will \ncontinue to be unfunded, despite their potential to generative substantial returns. \n \nManagement explained that Section 2.2 applies to new projects to be admitted into the PIP \nand the budget. This requirement is fully adhered to by the DC but as projects continue into \nexecution, recurrent costs can go higher, depending on the requirements between OPEX \nand CAPEX. The current DC guidelines are currently under review to provide for among \nothers social projects, Grants, software investments and intangible assets, among others.", "metadata": {"page": 39, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "I advised the PS/ST to review the guidelines taking into account the project lifecycle and \nclassification of assets to include intangible assets. \n \nc) Overstay of projects in the PIP - UGX.39,011Bn \n \nThe Public Investment Management Reform Strategy provides that projects are supposed to \nbe delivered on budget and on time in order to achieve the desired goals and objectives. \n \nAudit observed that in the sample of 371 projects, 342 projects (92.2%) with budgets \ntotalling to UGX.39,011Bn had gone past their planned exit periods, that date as far back as \nthe FY2010/11, with some projects having been extended for more than 12 years. Audit \nnoted that the projects continued to receive DC approval for continued stay on the PIP It \nwas noted that only 40% of the projects in the Public Investment Plan (PIP) were still within \ntheir expected time period.", "metadata": {"page": 39, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "This was attributed to lack of adequate planning and readiness, delays in procurements, late \nacquisition of right of way, poor contract management and inadequate capacity to \nimplement and evaluate ongoing projects, and unauthorized change in the scope, among \nothers.", "metadata": {"page": 39, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "29 \n \nThis has caused delays in the completion of key projects, cost overruns and high \ncommitment fees on foreign debt on account of low absorption and failure to complete \nprojects on time. \n \nManagement attributed the overstay to implementation challenges which often lead to \nextensions in the PIP. Management also informed me that the Ministry had now adopted \nthe resolution not to admit any project into the PIP and budget before completion of all \nrequired feasibility studies and ensuring that challenges that often lead to project extensions \nsuch as delays in acquisition of right of way, Environmental and Social impact assessment, \namong others are fulfilled before project commencement. In addition, the Ministry\u2019s \nleadership had directed that all old projects which continue to face implementation \nchallenges either be cancelled and or renegotiated with the respective funders. \n \nI advised the PS/ST to devise a mechanism to improve the efficiency with which projects are \nimplemented by ensuring that the causes identified above are addressed.", "metadata": {"page": 40, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "d) Under absorption of funds by projects \n \nAccording to the approved Budget estimates of the FY2020/21, the Resource Envelope of \nFinancial year 2020/21 approved by Parliament totals UGX.45,493.7Bn of which External \nFinancing consists of Project Support of UGX.9,515.3Bn and General Budget Support \nUGX.2,906.7Bn. \n \nAudit obtained and reviewed cash inflows and expenditures of externally funded projects \nand noted poor absorption/performance of externally funded projects. Out of \nUGX.9,515.3Bn that was appropriated by Parliament, only UGX.4,516.5Bn (47%) was \nreleased. Relatedly, absorption of externally funded projects further declined in the year \nunder audit. Out of the UGX.4,516.5Bn Disbursed for donor-funded projects, only", "metadata": {"page": 40, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "UGX.2,937Bn was spent, representing 65.0% as compared to the 71% observed in the \nFY2019/20. The table 9 refers to; \nTable 9: Absorption of fund \nExternal \nfinancing \nBudget \n(UGX)Bn \nRelease \n(UGX) Bn \nExpenditure \n(UGX)Bn \nRelease \nVariance \n(UGX) Bn \nExpenditure \nVariance \n(UGX) Bn \n%of funds \nnot \nreleased \n(UGX) Bn \n%of funds \nnot \nAbsorbed \n(UGX) Bn \n9,515.30 \n4,516.50 \n2,937 \n4,998.80 \n1,579.50", "metadata": {"page": 40, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "1,579.50 \n53% \n35% \n \nThe under absorption of externally funded projects in the FY2020/21 was mainly due to the \nfollowing; \n \n\uf0b7 \nImplementation of unready projects, unrealistic conditions precedent to disbursements \nof funds which constrains decision making during project execution; \n\uf0b7 \nCovid-19 restrictions that affected implementation of projects \n\uf0b7 \nDelayed land acquisition; \n\uf0b7 \nFailure to quantify counterpart funding requirements at the time of project appraisal \nand; \n\uf0b7 \nCumbersome procurement processes as well as failure to undertake a comprehensive \nappraisal of projects. \n \nContinued underutilization of external financing may lead to an increase in commitment \ncharges and disadvantage other projects that could have utilized those resources efficiently.", "metadata": {"page": 40, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "30 \n \n \nManagement explained that a number of measures have been introduced to improve project \nabsorption as follows; \n \ni) \nAll projects to have feasibility studies before commencement and entry into the PIP, \nii) \nOnly sign loan agreements when conditions precedent have been fulfilled. \niii) \nAll readiness conditions including acquisition of right of way, availability of adequate \nfinancing etc. as stipulated in the Project Selection criteria should be met before \nadmission into the PIP and budget, \niv) \nEnforce and enhance contract management through adhering to procurement \nregulations and training of contract managers. \nv) \nA project management module in the Integrated Bank of Projects has been developed \nthat will flag delay in a milestone and remind project managers on the required steps \nto facilitate expenditure. \n \nvi) \nThe Ministry is encouraging that Project management and implementation is", "metadata": {"page": 41, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "undertaken by certified Project Management Professionals (PMP) who have the right \nskills, professionals and belong to a body that updates management knowledge. In \nthis way project managers will be charged for underperformance which leads to low \nabsorption. \nvii) \nTraining of staff involved in loan and contract negotiations, \nviii) Undertake continuous training of staff in project appraisal, selection, execution, and \nex-post evaluation, \nix) \nEstablish a Project Preparation Fund to support preparation of feasibility studies and \nprovide resources for preliminary activities. \nx) \nEnforce the use of the Integrated Bank of Projects (IBP) for submission, preparation, \nexecution and ex-post evaluation of projects, \nxi) \nAdjusting to alternative strategies and approaches for project execution in light of \nCovid -19 restrictions and protocols e.g. virtual platforms, shifts for workers, \nembracing mass vaccination among others, \nxii)", "metadata": {"page": 41, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "xii) \nFast track approval of the revised PPDA regulations, train staff on timely initiation of \nprocurement processes and execution of contracts, \nxiii) Applying sanctions and rewards to efficient and inefficient Accounting Officers, \nrespectively. \n \nI await the outcome of the above measures. \n \n \n2.1.8. \nContinued expenditure off the IFMS \u2013 UGX. 695,372,792,876 \n \nThe government of Uganda introduced the IFMS with a core objective of ensuring accurate, \nreliable and complete financial information for Government Ministries, Departments, \nAgencies and Local Authorities as well as an increase in the transparency of public spending. \n \nFrom a sample of ministries, it was observed that several entities which are already on the \nIFMS system, continue to send huge block figures outside the system after charging \nexpenditure codes on the system; however, the ultimate expenditure cannot be restricted to", "metadata": {"page": 41, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "what was charged. It was also noted that a number of entities post these funds to \ncommercial bank accounts a practice that was stopped many years back.", "metadata": {"page": 41, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "31 \n \nIt was also noted that a number of projects run by the various Ministries, departments and \nagencies are all spending off the IFMS. Although some of the bank accounts are held at \nBank of Uganda, there are challenges of monitoring expenditure. \n \nManagement explained that whereas a significant amount of projects and subventions have \nbeen set up on IFMS either directly through being converted into Votes, the remaining \nsubventions and Institutions are undergoing rationalization which will reduce the number of \nagencies off the IFMS. As explained, GoU is also undertaking a re-implementation of the \nIFMS which will have all projects aligned to departments under the parent Ministry. \n \nThe Ministry was to progressively set up the remaining agencies and stations as the exercise \nis ongoing coupled with resource availability to finance the IFMS rollout. \n \nI advised the PS/ST to ensure that all government expenditure is made on the IFMS and", "metadata": {"page": 42, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "also provide a road map to ensure integration of all projects onto the IFMS. \n \nOther Information \n \nThe Accounting Officer is responsible for the other information. The other information comprises \nthe statement of responsibilities, a statement from the Hon. Minister of Finance, Planning and \nEconomic Development, a statement from the Secretary to the Treasury, a statement from the \nAccountant General, and other supplementary information. The other information does not include \nthe financial statements and my auditors\u2019 report thereon. \n \nMy opinion on the financial statements does not cover the other information and I do not express \nan audit opinion or any form of assurance conclusion thereon. \n \nIn connection with my audit of the financial statements, my responsibility is to read the other \ninformation and, in doing so, consider whether the other information is materially consistent with \nthe financial statements or my knowledge obtained in the audit, or otherwise appears to be", "metadata": {"page": 42, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "materially misstated. If, based on the work I have performed, I conclude that there is a material \nmisstatement of this other information; I am required to report that fact. I have nothing to report in \nthis regard. \n \nResponsibilities of Management for the Consolidated Financial Statements \n \nUnder Article 164 of the Constitution of the Republic of Uganda, 1995 (as amended) and Section 45 \nof the Public Finance Management Act, 2015 (as amended), the Accounting Officers are \naccountable to Parliament for the funds and resources of the Government of Uganda. \n \nThe Accountant General is appointed as the Accounting Officer and Receiver of Revenue for the \nConsolidated Fund. The Accountant General is therefore responsible for the preparation of financial \nstatements in accordance with the requirements of the Public Finance Management Act 2015, and \nthe Financial Reporting Guide 2018, and for such internal control as management determines is \nnecessary to enable the preparation of financial statements that are free from material \nmisstatements, whether due to fraud or error.", "metadata": {"page": 42, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "In preparing the financial statements, the Accountant General is responsible for assessing the \nGovernment\u2019s ability to continue delivering its mandate, disclosing, as applicable, matters related to \naffecting the delivery of the mandate of the Government of Uganda, and using the Financial \nReporting Guide 2018 unless the Accountant General has a realistic alternative to the contrary.", "metadata": {"page": 42, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "32 \n \n \nThe Accountant General is responsible for overseeing the Government\u2019s financial reporting process. \n \nAuditor\u2019s Responsibilities for the Audit of the Consolidated Financial Statements \n \nMy objectives are to obtain reasonable assurance about whether the consolidated financial \nstatements of government as a whole are free from material misstatement, whether due to fraud or \nerror and to issue an auditor\u2019s report that includes my opinion. Reasonable assurance is a high level \nof assurance, but is not a guarantee that an audit conducted in accordance with ISSAIs will always \ndetect a material misstatement when it exists. Misstatements can arise from fraud or error and are \nconsidered material if, individually or in the aggregate, they could reasonably be expected to \ninfluence the economic decisions of users taken on the basis of these financial statements. \n \nAs part of an audit in accordance with ISSAIs, I exercise professional judgment and maintain \nprofessional skepticism throughout the audit. I also; \n \n\uf0b7", "metadata": {"page": 43, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nIdentify and assess the risks of material misstatement of the consolidated financial \nstatements, whether due to fraud or error, design and perform audit procedures responsive \nto those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis \nfor my opinion. The risk of not detecting a material misstatement resulting from fraud is \nhigher than for one resulting from error, as fraud may involve collusion, forgery, intentional \nomissions, misrepresentations, or the override of internal control. \n \n\uf0b7 \nObtain an understanding of internal control relevant to the audit in order to design audit \nprocedures that are appropriate in the circumstances, but not for the purpose of expressing \nan opinion on the effectiveness of the government\u2019s internal control. \n \n\uf0b7 \nEvaluate the appropriateness of accounting policies used and the reasonableness of \naccounting estimates and related disclosures made by management. \n \n\uf0b7", "metadata": {"page": 43, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nConclude on the appropriateness of management\u2019s use of the going concern basis of \naccounting and, based on the audit evidence obtained, whether a material uncertainty exists \nrelated to events or conditions that may cast significant doubt on the government\u2019s ability to \ndeliver its mandate. If I conclude that a material uncertainty exists, I am required to draw \nattention in my auditor\u2019s report to the related disclosures in the financial statements or, if \nsuch disclosures are inadequate, to modify my opinion. My conclusions are based on the \naudit evidence obtained up to the date of my auditor\u2019s report. However, future events or \nconditions may cause the government to fail to deliver its mandate. \n \n\uf0b7 \nEvaluate the overall presentation, structure, and content of the financial statements, \nincluding the disclosures, and whether the financial statements represent the underlying \ntransactions and events in a manner that achieves a fair presentation. \n \nI communicate with the Accounting Officer regarding, among other matters, the planned scope and", "metadata": {"page": 43, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "timing of the audit and significant audit findings, including any significant deficiencies in internal \ncontrol that I identify during my audit. \n \nI also provide the Accounting Officer with a statement that I have complied with relevant ethical \nrequirements regarding independence, and to communicate with him/her all relationships and other", "metadata": {"page": 43, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "33 \n \nmatters that may reasonably be thought to bear on my independence, and where applicable, \nrelated safeguards. \n \nFrom the matters communicated with the Accounting Officer, I determine those matters that were \nof most significance in the audit of the financial statements of the current period and are therefore \nthe key audit matters. I describe these matters in my auditor\u2019s report unless law or regulation \nprecludes public disclosure about the matter or when, in extremely rare circumstances, I determine \nthat a matter should not be communicated in my report because the adverse consequences of \ndoing so would reasonably be expected to outweigh the public interest benefits of such \ncommunication. \n \nOther Reporting Responsibilities \n \nIn accordance with Section 19(1) of the National Audit Act, 2008, I report to you, based on my \nwork described on the audit of the GoU Consolidated Financial Statements that; except for the \nmatters raised in the compliance with legislation section below, and whose effect has been", "metadata": {"page": 44, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "considered in forming my opinion on the GoU consolidated financial statements, the activities, \nfinancial transactions and information reflected in the consolidated financial statements that have \ncome to my notice during the audit, are in all material respects, in compliance with the authorities \nwhich govern them. \n \nReport on the Audit of Compliance with Legislation \n \nIn accordance with Section 19 of the NAA 2008, I have a responsibility to report material findings \non the compliance of Government, with specific matters in key legislations. I performed procedures \nprimarily to identify findings but not to gather evidence to express assurance. \n \nThe material findings in respect of the compliance criteria for the applicable subject matters are as \nfollows; \n \n2.1.9. \nUse of prior financial years unspent funds \n \nArticle 154(1)(b) of the 1995 Constitution of the Republic of Uganda (as amended), provides \nthat no monies shall be withdrawn from the Consolidated Fund except where the issue of", "metadata": {"page": 44, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "those monies has been authorised by an Appropriation Act, a Supplementary Appropriation \nAct or as provided under clause (4) of this article. The Article further provides that no \nmonies shall be withdrawn from any public fund of Uganda other than the Consolidated \nFund, unless the issue of those monies has been authorised by law. \n \nSection 17(3) of the Public Finance Management Act requires Votes which return funds to \nconsolidated fund to revise their annual work plan, procurement plan and recruitment plan \nto take into account the unexpended money and the Minister responsible for the vote shall \nsubmit, as part of the budget for the preceding year, the revised work plan, procurement \nplan and recruitment plan. \n \nIn the FY 20/21, it was observed that a total of UGX.26,098,586,831 was repaid into the \nconsolidated funds from unspent monies from different votes. The said funds were however \nconsequently utilized by the GOU without any form of appropriation. \nThe spending of funds by the GOU without appropriation of the said funds is irregular.", "metadata": {"page": 44, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "34 \n \n \nI advised the PSST to always seek supplementary approval from Parliament before using \nreturned funds. \n \n \n \n \nJohn F. S. Muwanga \nAUDITOR GENERAL \n \n31st December, 2021", "metadata": {"page": 45, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "35 \n \n2.2 \nREPORT AND OPINION OF THE AUDITOR GENERAL ON THE GOVERNMENT OF \nUGANDA CONSOLIDATED FINANCIAL STATEMENTS OF THE LOCAL GOVERNMENTS \nFOR THE YEAR ENDED 30TH JUNE 2021 \n \nTHE RT. HON. SPEAKER OF PARLIAMENT \n \nOpinion \nI have audited the accompanying consolidated financial statements of Local \nGovernments, which comprise the Consolidated Statement of Financial Position as at \n30th June 2021, the Consolidated Statement of Financial Performance, the Consolidated \nStatement of Changes in Equity, the Consolidated Statement of Cash Flows, together \nwith other accompanying Consolidated statements for the year then ended, and notes \nto the Consolidated financial statements, including a summary of significant accounting \npolicies. \n \nIn my opinion, the consolidated financial statements of Local Governments for the year \nended 30th June, 2021 are prepared in all material respects, in accordance with Section \n52(b) of the Public Finance Management Act (PFMA), 2015 (as amended) and the", "metadata": {"page": 46, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Financial Reporting Guide, 2018. \n \nBasis for Opinion \nI conducted my audit in accordance with International Standards of Supreme Audit \nInstitutions (ISSAIs). My responsibilities under those standards are further described in \nthe Auditor\u2019s Responsibilities for the audit of the Financial Statements section of my \nreport. I am independent of the Local Governments in accordance with the Constitution \nof the Republic of Uganda (1995) as amended, the National Audit Act, 2008, the \nInternational Organisation of Supreme Audit Institutions (INTOSAI) Code of Ethics, the \nInternational Ethics Standards Board for Accountants\u2019 Code of Ethics for Professional \nAccountants (IESBA Code) and other independence requirements applicable to \nperforming audits of Financial Statements in Uganda. I have fulfilled my ethical \nresponsibilities in accordance with the other requirements and the IESBA Code. I believe \nthat the audit evidence I have obtained is sufficient and appropriate to provide a basis \nfor my opinion. \n \nKey Audit Matters", "metadata": {"page": 46, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Key Audit Matters \nKey audit matters are those matters that, in my professional judgment, were of most \nsignificance in my audit of the consolidated financial statements of the current period. \nThese matters were addressed in the context of my audit of the consolidated financial \nstatements as a whole, and in forming my opinion thereon, and I do not provide a \nseparate opinion on these matters. \n \n2.2.1. \nPayroll management in Local Governments \nOver the years, several reforms have been implemented in payroll management \nincluding salary, pension and gratuity payroll management decentralisation. \nDespite these reforms, challenges have persisted in the management of payroll \nin the Local Governments (LGs). \nAs a result, I considered payroll management in Local Governments as a Key \nAudit Matter and identified crosscutting risks including; unrealistic budgeting for \nemployees and pension costs, under absorption of wage funds, delayed access", "metadata": {"page": 46, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "36 \n \nto the payroll, over payment of salaries, non-payment of salary and pension \narrears, among others. \n \nThe wage and Pension Payrolls of UGX.2,586.47 Bn constituted 46.1% of the \noverall Local Governments budget for 2020/2021 of UGX.5,615.86 Bn. \n \nI am aware that the Covid-19 Pandemic continues to significantly affect the \nimplementation of payroll management activities. A number of Local \nGovernments did not carry out planned recruitments resulting into huge unspent \nbalances. \n \nConsequently, I designed procedures to address the risks in the payroll \nmanagement in Local Governments. (Detailed findings are provided in individual \nentity reports) \n \nBased on the audit procedures performed, I made the following significant audit \nfindings; \nNo \nObservations \nRecommendations", "metadata": {"page": 47, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Observations \nRecommendations \na) Payroll management in Local Governments \nAbsorption of the released funds for payroll \nI reviewed funds absorption in 100 LGs and noted an under \nabsorption of UGX79.62Bn. Out of the total receipts of \nUGX.1,539.37Bn, UGX.1,459.79Bn (94.8%) was absorbed. The \nunabsorbed \nbalance \nwas \nsubsequently \nreturned \nto \nthe \nConsolidated Fund account as shown in the Table below. \n \nTable 10: Showing Level of Absorption for Wage, Pension and \nGratuity \nCateg\nory \nApproved \nEstimates \n(UGX) Bn \nReleases \n(UGX) Bn \nExpenditure \n(UGX) Bn \nVariance", "metadata": {"page": 47, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Variance \n(UGX) Bn \n%age \nAbsorpti\non \nWage \n1,327.65 \n1,337.68 \n1,272.10 \n65.57 \n 95.1 \nPensi\non/ \ngratu\nity \n204.20 \n201.69 \n187.63 \n14.05 \n93.0 \n \n1,531.85 \n1,539.37 \n1,459.73 \n79.62 \n94.8 \n \nSource: OAG analysis \nThe under absorbed funds, denied the use of funds for other \ndeserving service delivery areas. \n \nThe under absorption was mainly attributed to Covid-19", "metadata": {"page": 47, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "pandemic and the lockdown, especially in the education sector. \nThere was delayed deployment or non-recruitment of secondary \nschool teachers for seed schools that had been recently \nconstructed under the UgIFT projects. \nI \nadvised \nthe \nAccounting Officers to \nliaise with the relevant \nauthorities and rollover \nthe \nun-implemented \nactivities \nto \nthe \nsubsequent period. \n \nb) Management of Payroll Deductions \n \ni) \nUnder/delayed remittance of Deduction \nOut of a sample of 84 LGs, I noted that whereas UGX 259.65 Bn \nwas deducted from employees\u2019 salaries to be remitted to URA, \nUCLA/UBA and other beneficiaries, I noted that contrary to \nI \nadvised \nthe \nAccounting Officers to \nthe \nAccounting Officers to \nensure that necessary \npayroll \nchanges \nare \nmade \ntimely \nbefore \npayments are effected.", "metadata": {"page": 47, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "37 \n \nParagraph B-a(17) of the Uganda Public Standing Orders, 2010 \nthere were: \n\uf0b7 \nOver remittances of UGX 2.16 Bn and \n\uf0b7 \nUnder remittances of UGX 7.33 Bn \nas shown in table below. \nTable 11: Showing over and under remittance of deductions \nDetails \n Over remittance \n Under remittance \nNumber of \nEntities with \nover \nremittance \nAmount \n(UGX) Bn \nNumber of \nEntities with \nunder \nremittance \nAmount \n(UGX) \nBn \nPAYE \n \n13 \n \n0.92 \n65 \n 5.76 \nUCLA/", "metadata": {"page": 48, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "UCLA/ \nUBA \n \n27 \n 0 \n.92 \n 48 \n 1.15 \nLST \n \n33 \n \n0.27 \n 41 \n \n0.20 \nOthers \n \n31 \n \n0.50 \n 49 \n \n0.22 \nTotal \n \n2.16 \n \n 7.33 \nSource: OAG Analysis \n \nIn addition, 85 LGs (79.4%) out of 107 delayed to remit the funds \nto UCLA/UBA, contrary to the requirement that payroll deductions \nare remitted concurrently with salary payments. The extreme \ndelays were noted in the districts shown in the table below. \nTable 12: Average delay in remittance to UCLA", "metadata": {"page": 48, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Vote Number \nVote Name \nAverage Delay (in \nDays) \n564 \nAmolatar DLG \n38 \n604 \nNapak dlg \n35 \n623 \nNabilatuk dlg \n46 \n610 \nBuhweju DLG \n41 \n629 \nObongi DLG \n55 \n556 \nYumbe DLG \n35 \n633 \nMadi-Okollo DLG \n35 \n572 \nOyam DLG \n36 \nSource: OAG Analysis \n \nI further noted that 48 LGs (45%) out of 107 delayed to remit the \nfunds to URA, contrary to the requirement that withholding agents", "metadata": {"page": 48, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "remit to URA any tax that has been withheld or that should have \nbeen withheld within fifteen days after the end of the month in \nwhich the payment subject to withholding tax was made by the \nwithholding agent. The extreme delays were noted in Mbarara MC, \nKaberamaido DLG, Buyende DLG and Buhweju DLG of 8, 9, 8 and \n11 months respectively. \n \nDelayed/ non remittance of deductions to UCLA/UBA could lead to \ndelays in up-dating loan status with the various financial \ninstitutions causing un-necessary default charges on employees \nwhile delayed remittance of PAYE attracts fines and penalties from \nthe Revenue Authority. It further led to accumulation of arrears \nthat had not been paid by 30th June 2021. \nI further advised the \nAccounting Officers to \ninitiate strategies that \nensure \ntimely \nremittances of payroll \nremittances of payroll \ndeductions \nand \nthe \nover remittances should \nbe recovered.", "metadata": {"page": 48, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "38 \n \n \nThe Accounting Officers did not provide satisfactory explanations \nto justify the over remittances. For the under payments, the \nAccounting Officers attributed it mainly to suspension of staff \nsalaries due to disciplinary issues, delayed removal of staff from \nthe payroll and delays in resolving issues such as abscondment \nwhere payments were withheld. For delays in remittance of \ndeductions, the Accounting Officers attributed it to delays in \nreconciliation of interface deduction files. \n \nii) \nUn-authorized loans deductions \nI noted that 48 LGs made unauthorised loans deductions totaling \nUGX 11.10 Bn. The deductions were from 6,835 employees that \nlacked letters of consent/ undertaking. I further noted that out of \nthe 48 LGs, 23 LGs (48%) registered 1,916 employees with", "metadata": {"page": 49, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "deductions totaling to UGX 3.77 Bn that did not exist in the Payroll \nDeduction Management System (PDMS), operated by PCA-Payroll \nConsults Africa. \n \nThere is a risk of making deductions from staff that have no loans, \nwhich deprives them of their earnings. The inconsistencies in the \nPDMS undermine the relevance of the system and affect the \nintegrity of the data therein. \n \nThe Accounting Officers acknowledged the shortcoming and \nexplained that letters of undertaking were being signed although \nfile copies were not being retained for future reference. They \nfurther explained that the inconsistencies in the PDMS data were \nattributed to PCA who largely control and manage the system. \nI advised Government \nthrough \nMoPS \nto \nensure that PCA makes \nthe \nnecessary \ndata \nreconciliation \nand", "metadata": {"page": 49, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "reconciliation \nand \nupdate the information \non the PDMS regarding \nthe \ndeductions. \nI \nfurther \nadvised \nthe \nAccounting Officers to \nensure that all loan \napplications are backed \nby \nletters \nof \nundertaking \nand \napproved through the \nPDMS. \n \n \nc) Access to Payrolls \ni) \nDelayed access to salary payroll \n \nI noted that 2,178 newly recruited employees in 75 LGs delayed to \naccess payroll, with delays ranging from 1-34 months. I further \nnoted that 407 employees in 17 LGs had not yet accessed the \npayroll by the close of the financial year. \n \nDelayed access to payroll leads to demotivation of the affected \nstaff and accumulation of salary arrears.", "metadata": {"page": 49, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "The Accounting Officers attributed the shortcoming mainly to \ndelayed submission of key personnel documents and data \nmismatch between IPPS & NIRA. \n \nI \nadvised \nthe \nAccounting Officers to \nsensitise \nthe \nnewly \nrecruited employees on \nthe timely submission \nof the key documents. I \nfurther \nurged \nthe \nAccounting Officers to \nensure timely validation \nof the newly recruited \nemployees and to liaise \nwith \nthe \nrelevant \nauthorities to improve \neffectiveness \nand \nreliability \nof \nthe \nMoPS/NID interface. \n \nii) \nDelayed access to pension payroll \nI noted that 780 pensioners delayed to access the pension payroll,", "metadata": {"page": 49, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "with delays ranging from 1 to 24 months in 83 LGs (78%) out of \n107 Local Governments. There were instances of extreme delays in \n09 LGs extending over two years to 26 years. I further noted that \n146 pensioners in 21 LGs had not yet accessed the pension payroll \nby the close of the financial year. \nI \nadvised \nthe \nAccounting Officers to \nliaise with MoPS to \ninitiate \nstrategies \nof \nrectifying \nthe \ninconsistencies \nwith \nNIRA interface and to \ncause the beneficiaries", "metadata": {"page": 49, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "39 \n \n \nDelayed access to the pension payroll leads to poor wellbeing of \nthe affected retirees as well as accumulation of pension arrears. \n \nThe Accounting Officers attributed the shortcoming to mainly \nmismatch of data between NIRA and IPPS interfaces such as \nwrong dates of birth, delayed submission of documents and \ninadequate budget allocation to cater for all retirees hence phased \naccess to the pension payroll. \n \nto submit the essential \ndocuments in time. I \nfurther advised PS/ST \nto \nensure \nadequate \nallocation of pension \nand gratuity funds. \n \nd) Delayed deletion of staff from the salary payroll \nI noted that in 78 LGs, a total of UGX 1.13 Bn was paid to 635 \nstaff who had either retired, transferred, absconded or died.", "metadata": {"page": 50, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "These were payment for services that were not rendered to the \nLGs, hence loss of funds to Government. \n \nThis was mainly attributed to delayed communication from \nsupervisors of the affected staff as well as failure to delete affected \nstaff due to lack of validation on the MoPS/ NID interface. \n \n \n I \nadvised \nthe \nAccounting Officers to \nsensitise all supervisors \non when and how to \ncommunicate \nsuch \ncases so as to ensure \nprompt removal of staff \nfrom \nthe \npayroll. \nI \nfurther \nurged \nthe \nAccounting Officers to \nensure that all staff are \nvalidated on the MoPS/ \nNID interface. I also \nadvised \nMoPS \nto \nautomate the deletion", "metadata": {"page": 50, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "automate the deletion \nof \nretirees \non \nmandatory grounds. \ne) Misclassification of salary, pension and gratuity expenditure \nUGX 3.60 Bn in 33 LGs was charged on account codes other than \nthose prescribed for salary, pension and gratuity. \n \nMisclassification of funds distorts budget performance and \nmonitoring as well as the credibility of the financial statements. \n \nThe Accounting Officers attributed the misclassification to \ninsufficient budget provisions for pensions and gratuity. I advised \nthe Accounting Officers to liaise with MoFPED to ensure that \nsufficient budget provisions are made. \nI \nadvised \nthe \nAccounting Officers to \nensure \nthat \nwage, \npension and gratuity \nexpenditure is charged \non \nthe \nappropriate \ncodes.", "metadata": {"page": 50, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "appropriate \ncodes. \n \nf) \n Effectiveness and reliability of the IPPS/NID interface \nI reviewed the effectiveness and reliability of the IPPS/NID \nstaff/pensioner/beneficiaries\u2019 verification interface and made the \nfollowing observations; \n\uf0b7 \nThere was in-adequate sensitization and training in the \nuse and navigation of the system \n\uf0b7 \nSystem was not reliable and effective \n\uf0b7 \nOperational challenges were encountered, including; \n\uf076 Un-reliable network \n\uf076 Failure to reflect changes in updated staff information \n\uf076 Mismatches of names that take long to be corrected by \nNIRA \n\uf076 Some information on the NIRA interface is sometimes \nnot visible/available for instance date of birth and the \nI \nadvised \nthe \nAccounting Officers to \nengage MoPS and NIRA \nto \nhave \ntrainings \nhave \ntrainings \nconducted as well as \nresolve \nthe \nsystem \nchallenges.", "metadata": {"page": 50, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "40 \n \nphoto which delays the verification exercise. \n \nThe ineffectiveness of the system my affect the integrity of the \nIPPS payroll. \n \nThe Accounting Officers noted the finding. \n \n \nOther Matter \nI consider it necessary to communicate the following matters other than those \npresented or disclosed in the financial statements. \n \n2.2.2. \nImplementation of the approved budget \nA review of the Local Governments approved budgets of UGX 5,615.86Bn out of \nwhich UGX 4,328.01 Bn was warranted/ availed by the end of the financial year. \nThe total expenditure for the year was UGX 4,147.90 Bn out of which UGX \n2,853.55Bn was spent on employee costs and transfers to other units implying \nthat only UGX.1,294.35 Bn was available for implementation of service delivery", "metadata": {"page": 51, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "outputs. \n \nFrom the procedures undertaken, I noted the following significant observations \n \nNo \nObservations \nRecommendations \n 1.0 \nExistence of Strategic plans that are aligned to NDP-III \nParagraph 5 of the budget execution circular for the financial \nyear 2020/2021 cites poor alignment of Government Budgets \nwith the National Development Plans. The PS/ST urged \nAccounting Officers to ensure that all activities for Financial \nYear 2020/2021 are aligned with NDP III and implemented \naccordingly. Regulation 26 (1) of the National Planning \nAuthority (development of Plans) regulations require entities \nto submit to NPA their five-year development plans for \ncertification before approval. \n \nThis being the first year of implementation of the NDP-III, \nLGs were expected to prepare a strategic plan aligned to \nNDP III and ensure that these plans are certified by NPA. \nThese plans would then be the basis for preparation of the", "metadata": {"page": 51, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "entity annual plans. \n \nFrom the procedures undertaken I noted that out of 86 \nentities sampled, none had prepared a strategic plan that \nwas aligned to NDP-III and certified by NPA. There is a risk \nthat activities implemented by these entities during the \nfinancial year 2020/2021 were not aligned to the NDP-III \nwhich negatively affects the achievement of NDP-III \nobjectives. \n \n \nI \nadvised \nthe \nAccounting Officers to \nfollow up the matter \nwith NPA and ensure \nthat the entities have \nstrategic plans that are \naligned to NDP-III and \ncertified by NPA.", "metadata": {"page": 51, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "41 \n \n \n2.1 \n \na) \nAbsorption of released funds \nOut of the total receipts for the financial year of UGX \n4,328.01 Bn, UGX 4,147.90 Bn (95.8%) was spent by the \nLocal Governments resulting in an unspent balance of UGX \n180.11 Bn (4.2%). The unspent balance at the end of the \nfinancial year was remitted back to the consolidated fund \naccount. \n \nUnder absorption of released funds results in non-\nimplementation of planned activities and negates the \npurpose for which funds were disbursed, thereby affecting \nthe achievement of the objectives in the NDPIII. For \nexample, implementation of USMID projects in Municipal \nCouncils and UgIFT projects in DLGs was not undertaken.", "metadata": {"page": 52, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "The Accounting Officers attributed failure to utilise funds to \nCOVID-19 which affected the recruitment exercise, late \nrelease of USMID funds and delays in the procurement \nprocess and lotting policy of contract works under UgIFT. \nI \nadvised \nthe \nAccounting Officer to \nliaise \nwith \nline \nMinistries to revote the \nfunds, roll over the \nactivities \nand \nensure \nthey are subsequently \nimplemented. \n \n \n \nb) \nRevenue Performance \ni) \nLocal Revenue performance \nThe local governments budgeted to receive UGX 217.38 Bn \n(revised) as total revenue for the year. However, only UGX \n96.28 Bn representing 44.29% of their revised budgets was \nreceived performance.", "metadata": {"page": 52, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "received performance. \n \nUnder \ncollection \nof \nlocal \nrevenue \nresults \nin \nnon-\nimplementation of planned activities which affects service \ndelivery. \nThe Accounting Officers of the respective local government \nvotes attributed the shortfall in local revenue to COVID 19 \neffects. \n \nThe Accountant General explained that Government of \nUganda (GoU) had provided some interventions including \nvaccination and funding to revive the economy for activities \nto resume and stimulate revenue collection. \n \nI await the outcome of \nthe \ninterventions \ninstituted by GoU to \nstimulate \nrevenue \ncollection. \n \nIn addition, I urged the \nrespective \nAccounting \nOfficers \nto \nmake \nbudget revisions based", "metadata": {"page": 52, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "make \nbudget revisions based \non realistic forecasts in \nsuch \nunforeseen \ncircumstances. \n \n \nii) \nRevenue from External financing \nThe Local Governments budgeted to receive UGX 413.94 Bn \nas external/donor financing, out of which UGX 57 Bn \n(13.8%), was received \nRevenue shortfalls affect the implementation of planned \nactivities. \nThe Accounting Officer attributed this to the fact that the \nLocal governments did not receive indicative planning figures \nfrom the donors for proper and realistic budgeting for the \nFinancial Year under review.", "metadata": {"page": 52, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "42 \n \n \niii) \nOff Budget Financing/Receipts \n \nSection 43 (1) of the PFMA 2015 states that all expenditure \nincurred by the government on externally financed projects \nin a financial year shall be appropriated by parliament. \nParagraph 29 of the Budget Execution Circular for the \nFinancial year states that if an external agency provides \nfunds in the course of implementation of the budget or any \nfunds remain unspent at the expiry of an appropriation, \nthese must be declared and a supplementary issued in line \nwith the Public Finance Management Act 2015. \n \nI noted that 17 of the 86 LGs sampled received off-budget \nfinancing to a tune of UGX 14.20 Bn, which was never \ndeclared to the PS/ST and was also not appropriated by \nparliament. As such, no supplementary appropriation was \nissued as guided by the PS/ST. These funds were received", "metadata": {"page": 53, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "directly \nfrom \ndevelopment \npartners \nfor \nundertaking \nactivities not budgeted for. Off-budget financing distorts \nplanning, may result in duplication of activities, contrary to \nSection 43(1) of the PFMA 2015 and the budget execution \nguidelines issued by the PS/ST. \n \nThe Accounting Officers explained this was due to limitations \nof the PBS system which has no provision for inputting such \nreceipts and in some cases funds are received during the \nyear which were not expected at the time of planning. \n \nI advise Government \nthrough the Ministry of \nFinance \nto \nnegotiate \nand mainstream Donor \nfunding in the Local \nGovernments Budgeting \nProcess.", "metadata": {"page": 53, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "43 \n \n \niv) \nQuantification of activities and Implementation of \nplanned outputs \n \nSection 13 (15, b) of the PFMA 2015 states that a policy \nstatement submitted by a vote shall contain the annual and \nthree months\u2019 work plans, outputs, targets and performance \nindicators of the work plans. Regulation 11 (3) of PFMR 2016 \nrequires that a vote prepares a work plan that indicates the \noutputs of the vote for the financial year; the indicators to \nbe used to gauge the performance of the outputs and funds \nallocated to each activity. \n \nI sampled 86 entities for purposes assessing the extent of \nquantification and implementation of planned outputs I \nnoted that out of the 850 outputs worth UGX 254 Bn \nsampled for review, 675 outputs (79%) worth UGX 182 Bn", "metadata": {"page": 54, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "were fully quantified, 58 outputs (7%) worth UGX 34 Bn \nwere partially quantified while 117 out puts (14%) worth \nUGX 38 Bn were not quantified at all. \n \nOut of a total of 675 quantified out-puts worth UGX.182 Bn \nassessed, 475 (70.4%) output worth UGX 90.10 Bn were \nfully implemented, 172 outputs (25.5%) worth UGX 86.70 \nBn were partially implemented, while 28 (4%) out-puts \nworth UGX 4.90 Bn were not implemented at all. The graph \nbelow shows the extent of implementation; \n \n \n \nThe Accounting Officers explained that implementation of \nactivities was affected by the restrictions in movement \nimposed by government to curb the spread of Covid-19 and \nthe fact that staff at the entities were working at 30%", "metadata": {"page": 54, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "staffing levels. Failure to fully quantify the planned activities \nmakes the assessment of implementation difficult while \nfailure to implement planned activities denies citizens \nservices. \n \n \nI \nadvised \nthe \nAccounting Officers to \nensure that work plans \nand budgets are fully \nquantified and ensure \nthat \nun-implemented \nactivities are rolled over \nto \nthe \nsubsequent \nperiods \nfor \nimplementation. \n \n \n \n \n \n70% \n26% \n4% \nExtent of implementation of quantified out-\nputs \nFully Implemented\nPartially Implemented\nNot implemented", "metadata": {"page": 54, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "44 \n \n2.2.3. \nOperationalization of New Cities \nDuring the FY 2019/20 Government made a pronouncement upgrading ten (10) \nMunicipal Councils (MCs) to City status effective 1st July 2020. These include; \nArua, Mbarara, Gulu, Jinja Fort portal, Mbale, Masaka, Soroti, Hoima and Lira \nDuring my audit of the above cities for the F/Year 2020/21, I noted the \nfollowing; \ni) \nGovernment did not provide funding in the budgets of the newly created \nentities to enable them operate as cities. I noted that they continued to \noperate using the budgets of MCs. \nii) The High Court in Masaka was petitioned by some individuals to review the \nguidelines issued by the Minister of Local Governments for the new cities on \ngrounds that they contravened the procedures set out in the Local \nGovernment Act.", "metadata": {"page": 55, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Government Act. \niii) The cities lacked establishment structures against which the recruitment of \nthe required human resource could be undertaken. \niv) There was no guidance on the allocation/sharing of assets. This has become \na contentious matter between the councils of the newly created cities and \nthose of the hosting districts. \n \nAs a result of the above, the high expectations of both the local political \nleadership and the general public have not been met. \nI advise Government to ensure that the new cities are fully operationalised. \n \n2.2.4. \nCapitation Grant for Printing of Home Study Materials \nThe Government through MoES released UGX 23 Bn for printing of home study \nmaterials to facilitate home learning during the COVID 19 lockdown. \nHowever, I noted that the study materials were not procured and the districts \nwere advised to send the money to the school bank accounts with a condition \nthat they should not spend until instructed to do so.", "metadata": {"page": 55, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "At the time of writing this report, the home study materials had not been printed \nand the funds were either used or lying idle on the schools\u2019 bank accounts. \nConsequently, the objective of ensuring that learners continued to learn during \nthe lockdown was not achieved. \nThe Accounting Officers explained that no instructions were given as indicated \nby the MoES. \nI advise Government through MoES to always provide timely guidance and \ncoordination in such events that require urgent government interventions. \nI also recommend that schools are given guidance on the utilization of the funds.", "metadata": {"page": 55, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "45 \n \n2.2.5. \nUn-Accounted for Funds \nSection 43(2) of the of the Local Governments Financial and Accounting \nRegulations, 2007 require administrative advances to council employees to be \nauthorized by the executive and accounted for within a month. \nI noted expenditure of UGX 3.37 Bn paid out for implementation of various \nactivities in the LGs remained unaccounted at year-end as shown below \n \nTable 11: Entities with unsupported expenditure \n \n \n \n \n \n \n \n \n \n \n \nIn the circumstances, it was not possible to confirm that the funds were used for \nthe intended purposes. \n \nI advised the Accounting Officers to ensure that funds are either accounted for \nor else be recovered from the responsible officers.", "metadata": {"page": 56, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "2.2.6. \nIrregular payment of Salary and Salary arrears to staff in Apac DLG \nI reviewed the payroll data (IPPS) and the IFMS payments of Apac District Local \nGovernment and noted that the district irregularly paid out UGX 0.57 Bn to 25 \nindividuals and to the estate of the deceased staff as salary and salary arrears \nwithout any supporting documentation. The amounts were irregularly expended \nleading to the overstatement of salary expenditure. \n \nI observed that much as there were no payroll deductions made for Apac \nMunicipal Council, Apac Sub County, Chegere Sub County, Ibuje Sub County and \nAkokoro Sub County, the district transferred a total UGX 0.06 Bn from the wage \nprovisions to the same entities with no justification. \n \nAn interview with the Human Resource Officer revealed that these payments \nwere not generated by the Human Resource Department.", "metadata": {"page": 56, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "The Accounting Officer explained that investigations were going on by CID \nHeadquarters. \n \nIn the meantime, I have instituted a forensic audit on the matter. \n \n \n \n \nSn \nEntity \nAmount (UGX) Bn \n1. \n \nABIM DLG \n1.41 \n2. \n \nBUGWERI DLG \n0.25 \n3. \n \nBUKEDEA DLG \n0.01 \n4. \n \nHoima MC \n0.06 \n5. \n \nKikuube DLG \n0.07 \n6. \n \nKiryandongo DLG \n0.01 \n7. \n \nKOLE DLG", "metadata": {"page": 56, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "KOLE DLG \n0.26 \n8. \n \nMADI-OKOLLO DLG \n0.05 \n9. \n \nMOROTO DLG \n0.03 \n10. \nMOROTO MC \n 1.19 \n11. \nOYAM DLG \n 0.03 \n12. \nTotal \n3.37", "metadata": {"page": 56, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "46 \n \n2.2.7. \nFailure to submit Financial Statements for consolidation \nSection 52(1)(b) of the Public Finance Management Act (PFMA), 2015 requires \nthat the Accountant General shall within three months after the end of each \nfinancial year prepare and submit to the Minister and the Auditor General the \nconsolidated annual accounts of the local governments. \n \nA review of the consolidated financial statements of Local Governments revealed \nthat 3 District Local Governments and 6 Municipal Councils with a total actual \nexpenditure of UGX 163.08 Bn were not submitted for consolidation by the \nrespective Accounting Officers as shown table below: \n \nTable 12 un-consolidated local governmentsSn \nSource: Consolidated financial statements and schedules \n \nThe Accountant General explained that without any justification, the above \nentities failed to submit the financial statements contrary section 51 of the \nPFMA, 2015. These accounts were therefore not quality checked for compliance", "metadata": {"page": 57, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "by the Accountant General. \nFailure to include all individual local government votes in the consolidated \nfinancial statements means that the consolidated balances of revenue, \nexpenditure, assets and liabilities do not represent the actual Local Government \nconsolidated position. \nI advised the Accountant General to identify and address the specific challenges \nthat prevented the entities from submitting their Financial Statements for \nconsolidation. \n \n \n \n \n \n \n \n \n \n \n \n \n \n \nSN \nEntity \nCategory \nApproved/revised Budget(UGX) Bn \nActual Expenditure \n(UGX) Bn \n1 \n \nArua \nDLG \n71.71 \n52.29 \n2 \n \nButaleja", "metadata": {"page": 57, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Butaleja \nDLG \n31.68 \n29.84 \n3 \n \nBududa \nDLG \n25.82 \n24.61 \n4 \n \nArua \nMC \n23.50 \n21.85 \n5 \n \nNtungamo \nMC \n8.41 \n6.68 \n6 \n \nMityana \nMC \n8.38 \n8.10 \n7 \n \nKumi \nMC \n6.11 \n5.72 \n8 \n \nIbanda \nMC \n11.00 \n10.25 \n9 \n \nNebbi \nMC \nNebbi \nMC \n6.08 \n3.74 \nTotal \n \n192.69 \n163.08", "metadata": {"page": 57, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "47 \n \n2.2.8. \nImplementation of UgIFT project activities \na) \nStatus of completion of projects \nI undertook audit inspections of civil works in 24 Seed Schools and 41 Health \nCentre IIs located in a sample of 62 Districts and Municipal Councils and noted \nthat 53 projects (80%) had not been completed, 11 projects (17%) had been \ncompleted while 01 project (2%) was not implemented. Notably, Amolatar, \nOyam, Luwero, Sironko, Kamwenge and Kanungu Districts completed the \nconstruction of the seed schools and Health Centres. \n \nThe inspection results are summarised in the table below; \n \n \nTable 13: Status of implementation of UgIFT projects \nSN. \nSector \nStatus of \nimplementation \nNo. of \nprojects \n%age", "metadata": {"page": 58, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "projects \n%age \nStatus \nCommencement period \n1 \nEducation \nCompleted \n2 \n8.3% \nPrevious financial year(s) \nCompleted and \nhanded over \n1 \n4.2% \nPrevious financial year(s) \nIncomplete \n20 \n83.3% \nPrevious financial year(s) \n \n \n1 \n4.2% \n2020/2021 \nSubtotal \n24 \n100% \n \n2 \nHealth \nCompleted \n3 \n7.3% \nPrevious financial year(s) \n3 \n7.3% \n2020/2021 \nCompleted and \nhanded over \n1 \n2.4%", "metadata": {"page": 58, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "2.4% \nPrevious financial year(s) \n1 \n2.4% \n2020/2021 \nIncomplete \n19 \n46 % \nPrevious financial year(s) \n13 \n32% \n2020/2021 \nNot implemented \n1 \n2.4% \nNot started \nSubtotal \n41 \n100% \n \nGrand Total \n65 \n \n \nSource: OAG analysis \nI further noted that out of the 53 incomplete projects, 36projects had exceeded \ntheir planned completion dates by an average of 11 months. \nThe Accounting Officers attributed the delays in project completion to; \na) The Covid-19 lockdown measures which limited the movement of materials \nand labour, \nb) The contractors abandoning the sites,", "metadata": {"page": 58, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "b) The contractors abandoning the sites, \nc) Funds not being re-voted to the entities in time, \nd) Delayed hybrid procurements, \ne) Late release of funds, \nf) Poor terrain leading to impassable roads to some projects sites, \ng) Low capacity of the contractor in terms of manpower, machinery, and \nmultiple projects. \n \nConsequently, the projects planned to be completed within the year were not \ncompleted, and as such the intended beneficiaries were denied services. \nI advised the Accounting Officers to liaise with the sector Ministries to ensure \nthat the implementation bottlenecks identified above are addressed.", "metadata": {"page": 58, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "48 \n \nb) \n Land Ownership \nThe Circular issued by the MoFPED in May 2018 requested all Local \nGovernments to ensure that all Government projects are constructed on land \nwith proof of ownership or a Memorandum of Understanding (MOU) with \nlandowners; \nI observed 4 projects that did not have titles or MOUs for the land on which the \nseed schools and health centers were constructed as shown in the table below: \n \nTable 14: UgIFT projects without land titles \nSN \nDistrict/ \nMunicipal \nCouncil \nName \nof \nproject \n Contract price \n(UGX) Bn \nAmount \nspent \n(UGX) Bn \nStatus \n1 \nKamwenge \nDLG \nConstruction \nof Bwizi Seed \nschool", "metadata": {"page": 59, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "school \n2.02 \n1.92 Completed \nand handed \nover \n2 \nMityana \nDLG \nUpgrade \nof \nBusunjju \nHC \nII to HC III \n0.66 \nIncomplete \n3 \nKyotera \nDLG \nUpgrade \nof \nNyangoma HC \nII to HC III \n0.66 \n0.28 Incomplete \n4 \nMoroto DLG \nConstruction \nof Rupa Seed \nsecondary \nschool \n1.94 \n1.70 Incomplete \nTotal \n5.28 \n3.90 \nSource: OAG analysis \nLack of land titles exposes the projects to disputes.", "metadata": {"page": 59, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "I advised the Accounting Officers to acquire land titles or MoUs for all the \nUgIFT projects. \n \nc) \nProcurement of ICT equipment, Laboratory kits, and chemical reagents \nThe guidance on procurement of ICT equipment, science kits, and chemical \nreagents for seed schools by the Ministry of Education and Sports to all \nAccounting Officers on 28th August 2020 referenced EPD 192/335/01; which \nrequired the procurement to be conducted after successful completion and \nhandover of the facilities. \n \nI noted that ICT equipment, Science kits and chemicals were procured for seed \nschools that had not been completed. The equipment were instead being kept \nin inappropriate storage facilities exposing them to a risk of obsolescence. \n \nThe Accounting Officers pledged to engage the contractors to ensure that \nconstruction works on the laboratories are completed. \n \nI advised the Accounting Officers to ensure that procurements for the \nequipment are only effected when the construction works have been", "metadata": {"page": 59, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "49 \n \ncompleted. I also urged the Accounting Officer to ensure that items are \nproperly stored. \n \nOther Information \nThe Accounting Officer is responsible for the other information. The other information \ncomprises the statement of responsibilities of the Accounting Officer; the commentaries \nby the Head of Accounts and the Accounting Officer; and other supplementary \ninformation. The other information does not include the financial statements and my \nauditors\u2019 report thereon. My opinion on the financial statements does not cover the \nother information and I do not express an audit opinion or any form of assurance \nconclusion thereon. \n \nIn connection with my audit of the financial statements, my responsibility is to read the \nother information and, in doing so, consider whether the other information is materially \nconsistent with the financial statements or my knowledge obtained in the audit, or \notherwise appears to be materially misstated. If, based on the work I have performed,", "metadata": {"page": 60, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "I conclude that there is a material misstatement of this other information; I am required \nto report that fact. \n \nI have nothing to report in this regard. \n \nManagement Responsibilities for the Financial Statements \nUnder Article 164 of the Constitution of the Republic of Uganda, 1995 (as amended) and \nSection 45 of the Public Finance Management Act, 2015, the Accounting Officer is \naccountable to Parliament for the funds and resources of the local governments. \n \nThe Accounting Officer is also responsible for the preparation of financial statements in \naccordance with the requirements of the Public Finance Management Act, 2015 and for \nsuch internal control as management determines necessary to enable the preparation of \nfinancial statements that are free from material misstatement whether due to fraud or \nerror. \n \nIn preparing the financial statements, the Accounting Officer is responsible for assessing \nthe local government\u2019s ability to continue as a going concern, disclosing, as applicable,", "metadata": {"page": 60, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "matters related to going concern and using the going concern basis of accounting, \nunless the Accounting Officer has a realistic alternative to the contrary. \n \nThe Accounting Officer is responsible for overseeing the local governments\u2019 financial \nreporting process. \n \nAuditor\u2019s Responsibilities for the Audit of the Financial Statements \nMy objectives are to obtain reasonable assurance about whether the financial \nstatements as a whole are free from material misstatement, whether due to fraud or \nerror and to issue an auditor\u2019s report that includes my opinion. Reasonable assurance is \na high level of assurance but is not a guarantee that an audit conducted in accordance \nwith ISSAIs will always detect a material misstatement, when it exists. Misstatements \ncan arise from fraud or error and are considered material if, individually or in aggregate, \nthey could reasonably be expected to influence the economic decisions of users, taken \non the basis of these financial statements.", "metadata": {"page": 60, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "50 \n \nAs part of an audit in accordance with ISSAIs, I exercise professional judgement and \nmaintain professional scepticism throughout the audit. I also; \n \n\uf0b7 \nIdentify and assess the risks of material misstatement of the financial \nstatements, whether due to fraud or error, design and perform audit procedures \nresponsive to those risks, and obtain audit evidence that is sufficient and \nappropriate to provide a basis for my opinion. The risk of not detecting a \nmaterial misstatement resulting from fraud is higher than for one resulting from \nerror, as fraud may involve collusion, forgery, intentional omissions, \nmisrepresentations, or the override of internal control. \n\uf0b7 \nObtain an understanding of internal control relevant to the audit in order to \ndesign audit procedures that are appropriate in the circumstances, but not for \nthe purpose of expressing an opinion on the effectiveness of the local \ngovernments\u2019 internal control. \n\uf0b7", "metadata": {"page": 61, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nEvaluate the appropriateness of accounting policies used and the reasonableness \nof accounting estimates and related disclosures made by the management. \n\uf0b7 \nConclude on the appropriateness of management\u2019s use of the going concern \nbasis of accounting and, based on the audit evidence obtained, whether a \nmaterial uncertainty exists related to events or conditions that may cast \nsignificant doubt on the local government\u2019s ability to continue as a going \nconcern. If I conclude that a material uncertainty exists, I am required to draw \nattention in my auditor\u2019s report to the related disclosures in the financial \nstatements or, if such disclosures are inadequate, to modify my opinion. My \nconclusions are based on the audit evidence obtained up to the date of my \nauditor\u2019s report. However, future events or conditions may cause the local \ngovernment to cease to continue as a going concern. \n\uf0b7 \nEvaluate the overall presentation, structure and content of the financial \nstatements, including the disclosures, and whether the financial statements", "metadata": {"page": 61, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "represent the underlying transactions and events in a manner that achieves fair \npresentation. \nI communicate with the Accounting Officer regarding, among other matters, the planned \nscope and timing of the audit and significant audit findings, including any significant \ndeficiencies in internal control that I identify during my audit. \n \nI also provide the Accounting Officer with a statement that I have complied with \nrelevant ethical requirements regarding independence, and to communicate with them \nall relationships and other matters that may reasonably be thought to bear on my \nindependence, and where applicable, related safeguards. \n \nFrom the matters communicated with the Accounting Officer, I determine those matters \nthat were of most significance in the audit of the financial statements of the current \nperiod and are therefore the key audit matters. I describe these matters in my auditor\u2019s \nreport unless law or regulation precludes public disclosure about the matter or when, in \nextremely rare circumstances, I determine that a matter should not be communicated in", "metadata": {"page": 61, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "my report because the adverse consequences of doing so would reasonably be expected \nto outweigh the public interest benefits of such communication.", "metadata": {"page": 61, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "51 \n \n \nOther Reporting Responsibilities \nIn accordance with Section 19 (1) of the National Audit Act, 2008, I report to you, based \non my work described on the audit of Financial Statements, that; except for the matters \nraised in compliance with legislation section below, and whose effect has been \nconsidered in forming my opinion on the financial statements, the activities, financial \ntransactions and information reflected in the financial statements that have come to my \nnotice during the audit, are in all material respects, in compliance with the authorities \nwhich govern them. \n \nReport on the Audit of Compliance with Legislation \nThere were no material findings in respect of the compliance with legislation. \n \n \n \n \nJohn F.S. Muwanga \nAUDITOR GENERAL \n \n19th December, 2021", "metadata": {"page": 62, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "52 \n \n2.3 \nREPORT OF THE AUDITOR GENERAL ON THE CONSOLIDATED SUMMARY STATEMENT \nOF FINANCIAL PERFORMANCE OF PUBLIC CORPORATIONS AND STATE ENTERPRISES \nFOR THE YEAR ENDED 30TH JUNE 2021 \n \n2.3.1. Review of the Consolidated Summary Statement of Financial Performance of \nPublic Corporations and State Enterprises \n \nAccording to Section 3 of the Public Finance Management Act (PFMA), 2015 (as \namended); \u201cA Public Corporation means an authority established by an Act of \nParliament other than a local Government which receives a contribution from \npublic funds, and any public body which in a financial year receives any income \nfrom public funds\u201d. Similarly, \u201cA State Enterprise means a body established \nunder any Act other than the Company\u2019s Act or a local Government council, and \na company registered under the company\u2019s Act in which the Government or a \nstate enterprise has controlling interest\u201d.", "metadata": {"page": 63, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "In line with the PFMA, 2015, I reviewed the Consolidated Summary Statement of \nthe Financial Performance of Public Corporations and State Enterprises for the \nyear ended 30th June 2021, and noted the following; \n \na) \nCompleteness of the Consolidated Summary Statement of Performance \n \nSection 52 (1c) of the Public Finance Management Act (PFMA), 2015 requires the \nAccountant General, within three months after the end of each financial year, to \nprepare and submit to the Minister responsible for Finance and the Auditor \nGeneral the consolidated summary statement of the financial performance of \nPublic Corporations, State Enterprises and Companies where Government has \ncontrolling interest. \n \nI noted that 46 public corporations and state enterprises were supposed to be \nconsolidated in accordance with Section 52 (1c) of the Public Finance \nManagement Act (PFMA), 2015. However, I noted that seven (7) entities were \nnot consolidated in the consolidated summary statement submitted by the", "metadata": {"page": 63, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Accountant General. \n \nFurthermore, Government shareholding in twelve (12) Public Corporations and \nState Enterprises was not disclosed in the consolidated summary statement of \nperformance. This was caused by the absence of a comprehensive register of \nPublic Corporations and State Enterprises. \n \nIn the absence of a complete register of all consolidating public corporations and \nstate enterprises, I was not able to ascertain the completeness of the submitted \nconsolidated summary statement of financial performance of public corporation \nand state enterprises. \n \nI advised the Accountant General to establish a comprehensive register of all \nPublic Corporations and State Enterprises with detailed information required for \nconsolidation. \n \nb) \nFailure to submit financial statements for consolidation", "metadata": {"page": 63, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "53 \n \nSection 51(2) of PFMA, 2015 provides that, the Accounting Officer of a public \ncorporation shall, within two months after the end of each financial year, using \nthe format prescribed by the Accountant-General, prepare and submit to the \nAccountantGeneral, a summary statement of financial performance of the public \ncorporation and give a copy of the summary statement to the Secretary to the \nTreasury. \n \nA review of the consolidated summary statement of performance of Public \nCorporations and State Enterprises revealed that two (2) entities did not submit \nperformance returns to the Accountant General for consolidation as indicated in \nthe table 15 below; \n \nTable 15: Entities not Consolidated, but Disclosed in summary statement \nS/N \nEnterprise \nGovernment Holding \n1. \n \nUganda Air Cargo Corporation \nNot ascertained \n2. \n \nUganda Refinery Holding Co", "metadata": {"page": 64, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Uganda Refinery Holding Co \nNot ascertained \n \nc) \nMissing Entities in the consolidated summary statement \n \nSection 52(1) c of PFMA 2015 as amended requires the Accountant General \nwithin three months after the end of each financial year to prepare and submit to \nthe Minister and the Auditor General a consolidated summary statement of the \nfinancial performance of public corporations and state enterprises and \nCompanies where Government has a controlling interest. \n \nI noted that three (3) entities were neither reported nor disclosed in the \nconsolidated summary statement of performance. (Table 16 below refers). \n \nTable 16: Entities neither reported nor Disclosed in the consolidated summary statement \nS/N \nEnterprise \nRemarks \n1 \n \nUganda National Oil Company Limited \nNot reported in the previous year \n2 \n \nNakivubo War Memorial Stadium", "metadata": {"page": 64, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Nakivubo War Memorial Stadium \nNot reported in the previous year \n3 \n \nUganda Crane Industries Ltd. \nNot reported in the previous year \n \nThis implies that the consolidated summary statement of financial performance \nof public corporations and state enterprises does not reflect the accurate status \nof government ownership and interest and as such I was unable to assess and \nconclude on their performance. \n \nI advised the Accountant General to issue comprehensive guidelines in respect of \nall Public Corporations and state Enterprises to be consolidated to enable \nassessment of financial performance.", "metadata": {"page": 64, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "54 \n \n2.4.1 Review of Financial Performance of Public Corporations and State Enterprises \n \nThe Government of Uganda (GoU) owns shares in a number of Public \nCorporations and State Enterprises. These enterprises, which are independently \nmanaged, are supposed to operate efficiently, make profits and pay dividends to \nGovernment. Their financial performance is therefore of interest to Government. \n \nAs noted in my previous reports, the Government Consolidated Summary \nStatement of financial performance of public corporations and State enterprises \nonly reports on; government shareholding, total income, total expenditure, \ndividends declared, retained earnings, and net worth of entities. However, key \nperformance assessment parameters, such as; profitability, return on assets, \nliquidity assessment, long-term debt, and interest cover are not reported on. As \na result, I computed these ratios using audited financial statements for further \nanalysis of performance of Public Corporations and State Enterprises, where \napplicable.", "metadata": {"page": 65, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "applicable. \n \nOut of the 46 Public Corporations and State Enterprises, seven (7) entities were \nnot assessed because they had not submitted audited accounts at the time of \nwriting my report. Table 17 below refers; \n \nTable 17: Entities not assessed \nS/N \nEntity \nGovernment Stake \n1. \n \nUganda National Oil Company Limited \n100% \n2. \n \nNakivubo War Memorial Stadium \n100% \n3. \n \nNational Housing and Construction Company Limited \n51% \n4. \n \nUganda Telecom Limited \nNot known \n5. \n \nThe Micro Finance Support Centre Ltd \n100% \n6. \n \nUganda Seeds Limited \n100% \n7.", "metadata": {"page": 65, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "7. \n \nUganda Livestock Industry \n100% \n \nFrom the financial performance analysis undertaken, I noted the following; \n \na) \nProfitability of Enterprises \n \nI noted that thirteen (13) out of the twenty-six (26) Public Corporation and State \nEnterprises analysed made profits/surplus in the year under review, with Uganda \nElectricity Transmission Company Limited (UETCL), Uganda Electricity Generation \nCompany (UEGCL) and National Water and Sewerage Corporation (NWSC) \nposting profits of UGX 112Bn, UGX 91.9Bn and UGX 47.8Bn, respectively. Table \n18 below refers.", "metadata": {"page": 65, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "55 \n \nTable 18: Profitability of Public Corporation and State Enterprises \nNo \nEntity \nProfit After Tax / Surplus \nfor the year (UGX \nin Bn) \nIncrease/ \nDecrease \n2020/21 \n2019/20 \n \n1. \n \nUganda Electricity Transmission Company \nLimited (UETCL) \n112.00 \n54.02 \n57.97 \n2. \n \nUganda Electricity Generation Company \n(UEGCL) \n91.93 \n2.80 \n89.14 \n3. \n \nNational Water and Sewerage Corporation \n(NWSC) \n47.79 \n27.44 \n20.35 \n4. \n \nKira Motors Corporation", "metadata": {"page": 66, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Kira Motors Corporation \n26.09 \n \n26.10 \n5. \n \nUganda Development Bank Limited \n22.11 \n10.14 \n11.97 \n6. \n \nHousing Finance Bank Limited \n20.69 \n22.50 \n(1.80) \n7. \n \nPride Micro Finance (Dec 2020) \n12.69 \n12.79 \n(0.98) \n8. \n \nPost Bank Uganda Limited (Dec 2020) \n10.07 \n8.38 \n1.69 \n9. \n \nUganda Printing and Publishing \nCorporation \n6.25 \n4.22 \n2.033 \n10. \nNEC Luwero", "metadata": {"page": 66, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "NEC Luwero \n3.68 \n3.38 \n0.30 \n11. \nInsurance Training college \n2.42 \n0.015 \n2.42 \n12. \nUganda Wildlife Conservation education \nCentre \n1.44 \n1.74 \n(0.30) \n13. \nMandela National Stadium \n1.08 \n(0.23) \n1.38 \n14. \nUganda Property Holdings Limited \n0.85 \n \n0.85 \n15. \nUganda Development Corporation (Group) \n0.63 \n(7.32) \n7.95 \n16. \nNEC UZIMA \n0.15 \n0.26 \n(0.12) \n17.", "metadata": {"page": 66, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "17. \nNile Hotel International Limited \n0.08 \n1.24 \n(1.16) \n18. \nUganda Energy Credit Capitalization Co. \nLtd \n(0.87) \n(0.59) \n(0.28) \n19. \nKilembe Mines Limited \n(0.91) \n(2.81) \n(1.10) \n20. \nNew Vision Printing and Publishing \nCompany Limited \n(7.11) \n2.66 \n(9.76) \n21. \nUganda Electricity Distribution Company \nLimited (UEDCL) \n(10.90) \n(10.12) \n(0.78) \n22. \nUganda Broadcasting Corporation \n(19.32) \n(7.62)", "metadata": {"page": 66, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "(7.62) \n(11.71) \n23. \nUganda Civil Aviation Authority (UCAA) \n(27.50) \n(13.74) \n(13.78) \n24. \nUganda Railways Corporation \n(37.78) \n(61.39) \n23.60 \n25. \nUganda Wildlife Authority (UWA) \n(45.05) \n5.54 \n(50.59) \n26. \nUganda National Airlines Company Limited \n(164.60) \n(102.45) \n(62.12) \n \nThe general performance of some of the Public Corporations and State \nenterprises slightly improved compared to the previous year with companies \nsuch as Uganda Electricity Transmission Company Limited (UETCL), Uganda \nElectricity Generation Company (UEGCL) and National Water and Sewerage", "metadata": {"page": 66, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Corporation (NWSC) posting more than double the profits of the previous year. \nThis was mainly attributed to government efforts to ease several COVID-19 \nrestrictions, allowing certain businesses to reopen and government intervention \nof revamping the economy. \n \nI further noted that entities including Uganda Railways Corporation, Kilembe \nMines Limited, Uganda Civil Aviation Authority (UCAA) and Uganda National \nAirlines Company Limited made losses as at the end of the financial year. \nHowever, it should be noted that this is the second year of operation of Uganda \nNational Airlines in a highly competitive industry.", "metadata": {"page": 66, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "56 \n \nI advised the entities to develop clear strategies to improve operations and adopt \nefficient financial management practices to lower operating costs and increase \nrevenue generation. Government should also consider recapitalizing the most \naffected entities to revamp their operations. \n \nb) \nReturn on Assets \n \nThe Return on Assets (ROA) shows the percentage of how a company\u2019s assets \nare generating revenue. It measures management\u2019s efficiency in using the \nenterprise\u2019s assets to generate earnings. Although companies that require large \ninitial investments will generally have lower return on assets, ROAs below 5% \nare generally considered inadequate. \n \nApart from eleven (11) companies, which include; Uganda Wildlife Conservation \neducation Centre, Uganda Electricity Transmission Company Limited, Kira Motors \nCorporation, Uganda Printing and Publishing Corporation, Insurance Training \nCollege, NEC Constructions Construction Works and Engineering Limited, NEC", "metadata": {"page": 67, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Uzima, NEC Luwero, Insurance Regulatory Authority of Uganda and National \nDrug Authority which posted a favourable ROA, the rest of the entities where the \nratio is applicable, registered a poor performance on ROA of below 5%. \n \nTable 19: Returns on Assets \nNo. \nEntity \nReturn on Asset (%) \n2019/20 \n2020/21 \n1. \n Uganda Wildlife Conservation education Centre \n49.9 \n48.1 \n2. \n Kira Motors Corporation \n41 \n43 \n3. \n NEC Constructions Construction Works and Engineering \nLimited \n10.8 \n31 \n4. \n Uganda Electricity Transmission Company Limited \n26.2 \n26.4 \n5. \n Uganda Printing and Publishing Corporation \n2.16 \n22.06 \n6.", "metadata": {"page": 67, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "6. \n NEC UZIMA \n6.3 \n12.1 \n7. \n NEC Luwero \n12.5 \n10 \n8. \n Pride Micro Finance (Dec 2020) \n4 \n3.3 \n9. \n Uganda Development Bank Limited \n3.16 \n2.91 \n10. Housing Finance Bank Limited \n2.9 \n2.5 \n11. Post Bank Uganda Limited (Dec 2020) \n2.57 \n2.25 \n12. Uganda Development Corporation (Group) \n-405.4 \n1.8 \n13. Uganda Post Limited \n1 \n1 \n14. Uganda Electricity Generation Company \n0.69 \n0.79 \n15. Mandela National Stadium \n-0.16 \n0.6", "metadata": {"page": 67, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "0.6 \n16. Uganda Property Holdings Limited \n0.4 \n0.33 \n17. National Water and Sewerage Corporation \n1.45 \n0.26 \n18. Nile Hotel International Limited \n0.67 \n0.04 \n19. New Vision Printing and Publishing Company Limited \n5.28 \n-0.4 \n20. Uganda Electricity Distribution Company Limited \n-0.56 \n-0.56 \n21. Uganda Railways Corporation \n-1.66 \n-1.03 \n22. Uganda Civil Aviation Authority \n0.48 \n-2.4", "metadata": {"page": 67, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "57 \n \n23. Uganda Broadcasting Corporation \n-2.5 \n-5.88 \n24. Kilembe Mines Limited \n-6.72 \n-10 \n25. Uganda National Airlines Company Limited \n-12.2 \n-13.1 \n26. Uganda Wildlife authority \n6.84 \n-21.75 \n27. Soroti Fruits Limited \n-1513 \n-1590.2 \n \n \nc) \nDividends \n \nI noted that, only Uganda Property Holdings Limited and Housing Finance Bank \nLimited proposed a dividend pay-out of, UGX 400,000,000 and UGX \n1,495,222,000, respectively, in the year under review, Nile Hotel International \nLimited, Uganda Development Corporation (Group) and Housing Finance Bank", "metadata": {"page": 68, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Limited paid out dividends declared for the previous year totalling UGX. \n2,269,944,381. \n \nI further noted that although some companies were making significant amount \nof profits, they were not paying dividends to Government. \n \nThe enterprises attributed the non-payment of dividends to the loss-making \npositions and retention of funds to fund planned investments/projects. \n \nI advised the Accountant General to ensure that profit making enterprises \nprovide a share of government dividend. \n \nd) \nLiquidity Assessment \n \nI analysed the ability of Public Corporations and State enterprises to meet their \nshort-term financial obligations by comparing the current assets and current \nliabilities using the Current Ratio analysis. Generally, the ratio of Current Assets \nto Current Liabilities between 1.5 and 2 is desirable, although acceptable current \nratios vary between different industries or sectors.", "metadata": {"page": 68, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "I noted that eighteen (18) entities were above the ideal threshold, implying that \nthey are able to meet their liabilities as they fall due. three (3) entities had ratios \nbelow 1.0 and may have a challenge of paying their obligations as and when \nthey fall due. The table 20 below refers. \n \nTable 20: Enterprise Liquidity \n \nNo \n \nEntity \nCurrent Ratio \n2020/21 \n2019/20 \n1. \n Nile Hotel International Limited \n26.24 \n9.9 \n2. \n Soroti Fruits Limited \n25.7 \n122.38 \n3. \n NEC Luwero \n11.9 \n5.1 \n4. \n NEC AGRO \n11.4 \n2.7 \n5. \n5. \n Uganda Development Corporation (Group) \n9.3 \n4.3 \n6. \n Uganda Electricity Distribution Company Limited \n6.9 \n7.4", "metadata": {"page": 68, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "58 \n \n7. \n Uganda Property Holding \n3.9 \n2.5 \n8. \n Uganda National Airlines Company Limited \n2.7 \n6.2 \n9. \n Uganda Printing and Publishing Corporation \n2.64 \n1.77 \n10. New Vision Printing and Publishing Company Limited \n2.6 \n2.68 \n11. Uganda Railways Corporation \n2.6 \n3.09 \n12. NEC UZIMA \n2.3 \n0.8 \n13. Uganda Electricity Transmission Company Limited \n1.9 \n1.66 \n14. NEC \nConstructions \nConstruction \nWorks \nand \nEngineering Limited \n1.4 \n1.3 \n15. National Water and Sewerage Corporation", "metadata": {"page": 69, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "15. National Water and Sewerage Corporation \n1.37 \n1.18 \n16. Uganda Wildlife Conservation education Centre \n1.3 \n1.12 \n17. Uganda Post Limited \n1.1 \n1.2 \n18. Uganda Wildlife authority \n1.09 \n1.93 \n19. Mandela National Stadium \n0.73 \n0.49 \n20. Kilembe Mines Limited \n0.56 \n1.3 \n21. Uganda Electricity Generation Company \n0.43 \n0.53 \n \nIn addition, I noted that the customer deposits in the four banking institutions \ngrew to an average of UGX.344Bn up from UGX.264 Bn in the prior year. \nRelatedly, the loan to deposit ratio averaged to 66% up from 64% which is still \ndesirable at individual bank rating. The Table 21 below refers;", "metadata": {"page": 69, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Table 21: Liquidity assessment for financial institutions \n \n \n Institution \nLiquidity assessment for banking institutions \nSN\nN \nBank \nCurrent ratio \nCustomerDeposits/loan\ns \nNet liquid assets \nLoan to deposit \n1. \n1 \nHousing \nFinance Bank \n1.45 \n1.44 \n654.1 \n559.8 \n35% \n31% \n84.10% \n98% \n2. \n2 \nPride \nMicro \nFinance \n1.62 \n1.56 \n174.37 \n140.82 \n0 \n0 \n105% \n80% \n3. \n3", "metadata": {"page": 69, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "3. \n3 \nPost Bank \n1.11 \n1.13 \n0 \n0 \n0 \n0 \n74.50% \n77% \n4. \n4 \nUganda \nDevelopment \nBank \n6.3 \n4.42 \n547 \n354 \n0 \n0 \n0 \n0 \n \nTotal \n10 \n9 \n1375 \n1055 \n35% \n31% \n264% \n255% \n \nAverage \n3 \n2 \n344 \n264 \n9% \n8% \n66% \n64%", "metadata": {"page": 69, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "64% \n \nI further noted that despite the low activity during the COVID-19 period, Loans \nand advances to customers increased on average from UGX.336Bn to UGX.405Bn \nin the current year.", "metadata": {"page": 69, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "59 \n \n \n \n \nTable 22: Loans and Advances performance \nSN \nBank \nPrior period (UGX-\nBillions) \nCurrent period (UGX-Billions) \n1 \nHousing finance bank \n550.60 \n553.50 \n2 \nPride Micro Finance \n171.76 \n183.39 \n3 \nPostbank \n267.00 \n334.70 \n4 \nUganda Development Bank \n354.00 \n547.00 \n \nAverage \n335.84 \n404.65 \n \nThe performance of the 4 institutions was commendable. \n \ne) \nInterest cover", "metadata": {"page": 70, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Interest cover \n \nI analysed the interest cover of Public Corporations and State enterprises that \nhad taken loans to establish their ability to service the loans through payment of \ninterest. Interest cover looks at how many times a Company\u2019s operating profits \nexceed its interest payable. A cover of two (2) times and above is usually \nconsidered to be safe, depending on the nature of industry. The implication is \nthat a company is most likely to meet its interest payments. \n \nI noted that of the 3 companies/enterprises which were financing loans, two (2) \n(NWSC and the Insurance Training College) were better placed to meet their \ninterest obligations, while the New Vision Printing and Publishing Company \nLimited was not. The Table 23 below refers. \n \nTable 23: Enterprises' ability to service loan obligations \nNo. \nEntity \nProfit Before \nInterest \nInterest \n(Financing \ncost) \nInterest", "metadata": {"page": 70, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "cost) \nInterest \nCover \n(No. of times) \n(2020/21 \nInterest Cover \n(No. of times) \n(2019/20 \n1 \n National Water and \nSewerage \nCorporation \n18.68 \n6.95 \n2.7 \n28.3 \n2 \n New Vision Printing \nand \nPublishing \nCompany Limited \n(0.34) \n0.59 \n-0.6 \n28.2 \n3 \n Insurance Training \ncollege \n2.42 \n1.06 \n2.30 \n0.001 \n \nOverall Conclusion/Recommendation \n \nWhereas government policy to invest in critical sectors of the economy is commendable,", "metadata": {"page": 70, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "it is important to ensure that such investments are operating efficiently and effectively \nto meet sector objectives. There is need for government to strengthen the supervision \nand monitoring of these entities. \n \nAlthough government efforts to ease several COVID-19 restrictions, allowing certain \nbusinesses to reopen improved performance of certain enterprises, the COVID 19 \npandemic affected operations of a number of entities, and Government needs to assess \nits impact on the critical enterprises and corporations and provide the necessary \nguidance and assistance.", "metadata": {"page": 70, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "60 \n \n \nPART 3: SECTORAL AND LOCAL GOVERNMENTS CROSS CUTTING FINDINGS \n \nThis part contains cross cutting key findings noted in the respective sectors and cross \ncutting service delivery issues in Local Governments. \n \n3.0. Sectoral Key Findings \n \n3.1. \nPUBLIC SECTOR MANAGEMENT \n \n3.1.1. Government readiness to implement the programmatic approach \nGovernment with effect from 1st July 2020 started the implementation of NDP III as a \nsuccessor plan to the NDP II. The overall objective of the NDP III is to increase \nhousehold income and improving the quality of life of Ugandans. This plan is \nimplemented using the programme approach to planning, budgeting, implementation \nand results reporting. This programme was also designed to address challenges faced in \nimplementation \nof \nprior \nnational \ndevelopment \nprogrammes \nwhich \nincluded", "metadata": {"page": 71, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "which \nincluded \nuncoordinated planning, weak harmonization, limited sequencing of programmes, and \npoor linkages between outcomes and outputs. \n \nI reviewed the readiness of government to effectively implement the NDP III in order to \nachieve the desired outcomes. From the procedures undertaken, I noted that significant \nstrides have been made towards effective implementation of the plan. \n \nAreas of commendable performance include; provision of guidelines to entities to \nfacilitate transitioning to programme approach, development of the Programme \nImplementation Action Plans (PIAPs) for all programmes, development of strategic plans \nthat are aligned to the NDP III by a number of entities in government, \noperationalization of Programme Working Groups (PWGs) to coordinate programme \nactivities and development of guidelines for the programme working groups. \n \nDespite these achievements, there are a number of areas that need government \nattention if the NDP III overall objective is to be achieved. These include; \n \na)", "metadata": {"page": 71, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "a) \nThe shift from sector to programme planning and budgeting requires tracking \nprogress towards attainment of results. This therefore implies that accountability \nand oversight processes should be re-aligned towards achievement of results as \ndefined in the NDP III framework. This realignment has however not been fully \nattained. \n \nb) \nThe shift from sector to programme planning and budgeting also requires a shift \nof the current government statistical processes to processes that are capable of \ndelivering outcome statistics as defined in the NDP III. The current data systems \ntherefore have to be revised so that they produce results data rather than output \ndata. In addition, surveys and production of key results statistics need to be \naligned to the NDP III M&E processes to enable real time capture of data and \nmonitoring of the achievement of programme results. \n \nc) \nThe shift from sector to programme planning and budgeting also implies that \ngovernment annual performance reporting will now be based on programmes \nrather than sectors. The challenge however is that a number of programme", "metadata": {"page": 71, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "61 \n \nworking groups are still struggling to constitute themselves in order to do effective \nprogramme reporting which is likely to affect effective coordination and \nsupervision of programme activities. \n \nd) \nThe shift from sector to programme planning and budgeting also implies that \nbudgets of MDAs and LGs are now developed and approved at programme level \nalthough appropriation and spending remain at vote level. However, a number of \nMDAs are grappling with understanding the new system. \n \nWith 2 years into the implementation of NDP III, a number of MDAs and LGs have not \nfully transitioned their operations to the new programme based planning and budgeting \nand this is likely to affect the achievements of the NDP III objectives. \n \nGovernment should support the National Planning Authority in capacity building of MDAs \nand LGs staff such as planners, monitoring and evaluation officers among others to \nequip them with the necessary skills to track and evaluate the implementation of entity", "metadata": {"page": 72, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "plans in line with the NDP III PIAPs. \n \n3.1.2. Limited efforts to build the capacity of planning units within Government \n \nSection 7 (2) (d) provides that in pursuance of its primary planning functions, the \nAuthority shall support local capacity development for national planning and, in \nparticular, provide support and guidance to the national and local bodies responsible for \nthe decentralized planning process. \n \nI have noted over the years that MDAs and Local Governments face significant \nchallenges in planning, implementing, monitoring and reporting performance due to low \ncapacity of their planning units. I however noted that although the mandate of the \nAuthority provides for supporting the development of local capacity in planning, the \nAuthority had not effectively executed this mandate. No trainings for planners had been \nundertaken by the Authority in the past three (3) years as a deliberate strategy to build \nplanning capacity both at national and local levels.", "metadata": {"page": 72, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Failure to build planning capacity within the Government implies that there will be \npersistent challenges in the development, implementation, monitoring and reporting of \nperformance in relation to the approved budgets, which affects service delivery and the \ncredibility of the budgets both at entity and government-wide level. \n \nThe Accounting Officer explained that the Authority developed a National Capacity \nEnhancement Project for strengthening planning capacity at decentralized level in 2017 \nhowever no funds were availed and the activity has persistently remained as an \nunfunded priority. \n \nI advised Government to have this critical activity funded, especially with the \nimplementation of the roll out of the new NDP III which has taken effect.", "metadata": {"page": 72, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "62 \n \n \n3.2. \nSECURITY SECTOR \n \n3.2.1. \nMonitoring and Supervision of Government Programmes under Office of the President \nThe Office of the President is mandated to follow up implementation of government \nprogrammes across the Country. However, the Office has staffing as well as office \naccommodation challenges which has limited adequate monitoring and supervision of \nthe implementation of the programmes. The Office has a staffing gap of 80 positions of \nSenior Presidential Advisors, Resident District Commissioners and Deputy Resident \nDistrict Commissioners. \n \nIn addition to the staffing gap, the RDCs lack enough accommodation. During the year \nunder review, the Office of the President had a deployment of 146 RDCs in Districts and \n10 RCCs in newly created cities out of which 107 are renting and 24 lack offices. \n \nIn order to address the above challenge, the Office envisioned an idea of constructing at", "metadata": {"page": 73, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "least 10 RDC offices per annum in a phased approach starting with FY 2008/09. This \nidea was not fulfilled because government could not fund the capital budget as \nanticipated. This has necessitated the Office of the President to revert to constructing \nonly one RDC office per annum as the case is currently and renting office space for the \nrest. Under this approach, the Office will take 107 years to construct offices for all RDCs \nand spend approximately UGX.445Million on rent annually. \n \nI have advised Government to ensure that the RDCs and RCCs are recruited and also \ndevelop an action plan for construction of offices in a phased manner to minimise the \nhigh operation costs. \n \n3.3. \nAGRICULTURE SECTOR \n \n3.3.1. Mainstreaming of Agriculture Sector agencies \nGovernment is still in the process of rationalizing agencies and public expenditure \n(RAPEX) under the Agricultural Sector which include Cotton Development Organisation, \nUganda", "metadata": {"page": 73, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Uganda \nCoffee \nDevelopment \nAuthority, \nCoordinating \nOffice \nfor \nControl \nof \nTrypanosomiasis and Diary Development Authority. These entities have had challenges \nof attracting staff to undertake activities. The respective Accounting Officers attributed \nthis challenge to the following: \n \n\uf0b7 \nSome successful candidates did not take up the job offers because the contract \nperiod was limited to only 18 months as recommended by Ministry of Public Service. \n\uf0b7 \nThe Ministry of Public Service and Solicitor General guided that recruitment of staff \nfor the agencies affected by rationalization should only be for a period up to June \n2023. \n\uf0b7 \nThe employment contracts should contain a disclaimer clause to the effect that the \nemployment can be terminated any time without recourse. \n\uf0b7 \nThere is no guarantee of retention of the workforce.", "metadata": {"page": 73, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "The above situation has affected the agencies also in other areas of planning, execution \nof activities and implementation of the new NDP III strategic plans.", "metadata": {"page": 73, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "63 \n \n \nI advised Government to fast-track implementation of the policy with a view of ensuring \nthat the on-going rationalization activities are finalized in the shortest time possible to \navoid further disruptions in the operations. \n \n3.3.2. Over dependence on the Public Private Partnership in the Cotton sector \nSection 5 (i) of the Cotton Development Organisation Act, vests the duty to facilitate \ncotton production, cotton research and extension through the Ministry responsible for \nagriculture to CDO. CDO\u2019s mandate is to promote production, monitor marketing and \nprocessing of cotton and represent all aspects of the cotton subsector. \n \n \nOver the last 11 years, the Private Sector (Ginners) under their umbrella body Uganda \nGinners and Cotton Exporters Association (UGCEA), have been supporting cotton \nproduction activities under the Cotton Production Support Program through a \nMemorandum of Understanding that is signed annually between CDO and UGCEA. The", "metadata": {"page": 74, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Program, using funds pooled voluntarily by UGCEA members into the Cotton \nDevelopment Fund (CDF), supports a variety of activities which aim to assist cotton \nfarmers in Uganda to increase cotton production and productivity through; provision of \ninputs, farmer mobilization and sensitization, extension services and agricultural \nmechanization. \n \nIt was noted that UGX.19.649Bn was budgeted to cater for the cotton marketing season \n2020/21 out of which, UGX.15.154Bn was budgeted towards provision of planting seed \nand production inputs. Government was able to contribute only UGX.8.6Bn leaving the \nbalance for the private partner intervention. This is an indication that government is \nrelying more on the ginners to fund the cotton sector. \n \nDespite the intervention by the private sector, there were shortages in provision of \ninputs to farmers. From table below, 866 Mt of planting seed, 374.6 Mt of fertilizers and", "metadata": {"page": 74, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "2,260 spray pumps were not provided as projected in the strategic plan despite the \nsupport from the Ginners which directly affected the performance of the sector in \nachieving the desired cotton production targets. \n \nTable 24: Comparison of consolidated quantities of production inputs \n \n \nPlanting \nseed \nPesticides \nFertilizers \nSpray \npumps \nHerbicides \nProduction \ninputs \nneeded(Strategic Plan) A \n3,200 Mt \n222,000 \nliters \n415 Mt \n7,000 \n0 \nPlanned \nQuantities \n(MOU-\nGinners) B \n2,500Mt \n224,000 \nliters \n746 Mt \n3,000 \n7,500 liters \nActual \nQuantities", "metadata": {"page": 74, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Actual \nQuantities \nprovided \n(Reports) C \n2,334 Mt \n287,102 \nliters \n40.4 Mt \n4,740 \n6,616 liters \nDifference A - C \n866 Mt \n(65,102) \n374.6 Mt \n2,260 \n(6,616) \nLiters \nSource: OAG analysis of CDO Strategic Plan 2020/21-20, MOU, quarterly reports", "metadata": {"page": 74, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "64 \n \nDependency on the Private sector for a key production activity such as provision of seed \nfor planting and production inputs, risks the sustainability of the sector and enables the \nprivate sector to exercise influence over farmers through paying of low prices for the \nfarmers\u2019 crops. Further, inadequate Government funding limits CDO\u2019s interventions in \nkey aspects such as targeted extension services for mobilizing farmers and training \nthem on cotton agronomical practices using demonstration gardens established at \nvillage/parish level. \n \nManagement explained that limited government has affected the cotton production in \nthe past 2 years. There was a drop in cotton production from 173,457 bales of lint in FY \n2019/20 to 50,709 bales in the year under review largely as a result of heavy rains, \nmeagre funds for procurement and distribution of production inputs as well as provision \nof extension services. The calamity of drop in the cotton production was brought to the", "metadata": {"page": 75, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "attention of both the Ministry of Agriculture, Animal Industry & Fisheries and the \nMinistry of Finance, Planning & Economic Development and a request for a \nsupplementary budget of UGX.5 billion was made. \n \nI advised the Accounting officer to continue liaising with the line Ministry and MoFPED to \nforge a way forward for the sector. \n \n3.3.3. Management of Foot and Mouth Disease (FMD) Outbreaks in the Country \n \nIt is the Mandate of MAAIF to regulate and control the prevalence of FMD within the \ncountry. Accordingly, Government intervened by procuring FMD vaccines from Kenya \nVeterinary Vaccines Production Institute (KEVEVAPI) and Botswana Vaccines Institute \n(BVI) which were distributed to farmers across the country especially in the areas where \nFMD has been reported previously. \n \nIn June 2021, the country was informed of unprecedented outbreaks of FMD along the \ncattle corridor. A review of management of the outbreak revealed failure of timely", "metadata": {"page": 75, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "interventions as a result of challenges faced in the procurement of vaccines despite the \navailability of funds. Furthermore, the following shortcomings were noted; \n \na) During the financial year 2019/2020, 700,000 doses of FMD were procured in \nNovember 2019, however, only 500,000 (70%) of the consignment was delivered \nand significantly late by 4 months. \n \nb) 2,311,000 doses were planned to be procured in 2019/2020 however the supplier \nfailed to deliver despite emergency situation and sensitivity of the disease. \n \nc) Although the supplier later delivered 1,700,000 doses (52%) during the year \n2020/2021, and 2021/2022 financial year, the balance of 611,000 doses (24%) were \nstill outstanding at the time of writing this report. The deliveries have not been \nmade even after several delivery extensions to the supplier.", "metadata": {"page": 75, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "The continued presence of the FMD and the inadequate response in terms of vaccine \navailability has denied Ugandans opportunities to export livestock and livestock products \nto the international market and significantly curtails the Ministry\u2019s ability to achieve its \nmandate.", "metadata": {"page": 75, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "65 \n \nI advised the Accounting Officer to effectively and efficiently monitor such disease \noutbreaks within the Country so as to curb the spread and prevent further loss to the \nCommunity. Further, research collaborations with NARO should be enhanced for \ndevelopment of a local intervention. \n \n \n3.4. \nJUSTICE LAW AND ORDER SECTOR \n \n3.4.1. \nManagement of cases and Case backlog \nVarious stakeholders in the Justice Law and Order Sector (JLOS) have implemented a \nnumber of management information systems as indicated in the table 25 below. \n \nTable 25: Information Systems within the JLOS Sector \nSN \nInformation system \nPurpose \nEntity \nCost (Bn) \n1 \nProsecution \nCase \nManagement \nInformation \nSystem \n(PROCAMIS) \nRecord", "metadata": {"page": 76, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Record \nand \ncollect \ninformation \npertaining to cases, and rapidly transfer \ncase details from law enforcement \nacross the DPP offices. \nODPP \n26.188 \n2 \nCourt \nCase \nAdministration \nSystem \n(CCAS) \nReceiving \nand \nallocating \ncases \nto \ndifferent Judicial officers for further \nmanagement. \nJudiciary \nNo \ninformation \n3 \nThe \nElectronic \nCourt \nCase \nManagement \nInformation \nSystem \n(ECCMIS) \nManage case records, e-filing. The \nsystem tracks all aspects of a case life \ncycle \nfrom \ninitial \nfiling \nthrough", "metadata": {"page": 76, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "filing \nthrough \ndisposition up to appeal. \nJudiciary \n9.277 \n4 \nPrisoners \nManagement \nInformation \nSystem(PMIS) \nRecording and classifying of all prisoner \nrelated \ninformation \nacross \nall \nthe \nprisons. \nPrisons \n0.501 \n5 \nCrime \nRecords \nManagement \nSystem \n(CRMS) \nAutomate all paper based processes of \ncase management. \nUganda \nPolice Force \n0.5 \n6 \nSuspect \nprofiling \nsystems \nCapture profiles of suspects such as bio \ndata, photographs, and thumbprints \namong other features, to help in quick \nidentification of suspects. \nUganda \nPolice Force", "metadata": {"page": 76, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Uganda \nPolice Force \nNo \ninformation \n \nTOTAL \n \n \n36.466 \n \nInstitutions require quick access to accurate, and reliable information in order to \nfunction well and promote the objectives of equitable justice for all. In pursuance on the \ngoals of criminal justice, various entities within the sector have acquired computerised \ninformation management systems to enable them attain their mandate. \n \nAlthough Government has invested a sum of UGX.36.46Bn in four of the systems for the \nadministration of Justice across the JLOS sector, I noted that the systems are stand-\nalone and decentralized without being integrated to enable information sharing across \nthe sector. \n \nThe lack of systems\u2019 integration inter-linking the various entities such as the Police, \nDirectorate of Prosecution, Judiciary and Prisons implies that the transfer of case details \nbetween stakeholders for the quick resolution of cases in the pursuit of Justice cannot", "metadata": {"page": 76, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "be achieved. The absence of shared or integrated management systems may also result \nin inefficient allocation of resources, higher costs of procurement for IT hardware, \nnetwork equipment and application software as well as duplications in the nature of \nservice support from the suppliers/vendors of the applications and the hardware.", "metadata": {"page": 76, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "66 \n \nI also observed that the implementation or setup of some of the systems is still ongoing \nin various entities. For instance, the Crime Records Management System in Uganda \nPolice, the Prisoner\u2019s Information Management System in the Uganda Prisons, the \nElectronic Court Case Management Information System in Judiciary, the Suspect \nProfiling System in Uganda Police were still at the pilot testing stage or were yet to be \nfully rolled out and operationalised across all the regional offices countrywide. \n \nThis may have resulted in the non-optimal use of the information assets held on the \nsystems. \n \nThe JLOS sector should review the existing systems and their functionality vis-\u00e0-vis the \nsector-wide needs with a view of achieving an integrated approach to information \nmanagement within the sector, in order to avoid the duplication of data, delays in \nprocessing cases, and achieving efficiency in resource allocation across the sector so as \nto attain the goals of criminal justice administration.", "metadata": {"page": 77, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "3.4.2. \nOperationalisation of the Joint Venture Agreement \n \nIn 2017 the Government of Uganda entered into a Joint Venture Agreement resulting in \nthe formulation of the Uganda Securities Printing Company (USPC) for the exclusive \nproduction and supply of all security documents for the Government of Uganda, \nincluding National Identity Cards and Birth and Deaths Certificates. This venture had \ndelayed to be operationalised and as a result a number of challenges were identified; \n \na) NIRA was expected to order a minimum of 4,500,000 national ID cards annually, \nstarting with the financial year 2020/2021. However, no order was placed for the \nfinancial year under review due to lack of budget provisions for this activity. This is a \nbreach of the contract agreement, which may result in the payment of fines for \nbreach of contract. \n \nb) USPC was yet to supply IT systems and equipment to support the National ID", "metadata": {"page": 77, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "system and the birth and death registration system. The system in use for \nIdentification Information was supplied by M/S M\u00fchlbauer Uganda Limited, whose \ncontract had expired and was not renewed. There is a risk that NIRA will operate \nwithout system support from the system vendor of the legacy (existing) system for \nan unspecified time. \n \nThe Accounting Officer explained that the Authority has been engaging USPC to resolve \nall the issues relating to the Joint Venture Agreement (JVA) and an Adhoc committee \nhad been put in place comprising of all Permanent secretaries, including the Ministry of \nInternal Affairs, whose objective is to review the status of implementation of the JVA \nevery quarter. \n \nI advised Government to design a clear road map and strategy to ensure compliance \nwith the terms of the Joint Venture Agreement, including developing support systems to \navoid the stalling of operations of the entity.", "metadata": {"page": 77, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "67 \n \n3.5. \nINFORMATION COMMUNICATION TECHNOLOGY SECTOR \n \n3.5.1. \nAbsence of a National IT Governance/Oversight System \n \nI noted that Government did not have a national IT governance framework that \nestablishes a proper IT governance structure and system. \n \nThe objective of an IT Governance system is to enable Government to; provide for \nstrategic direction for ICT investments; prioritise and ensure strategic alignment of IT \nand e-government investments across Government; mitigate risks associated with the \nuse and/or investments in ICT such as duplication of IT systems and wasteful \nexpenditure; and optimise the use of ICT and e-government services, among others. \n \nAs a result, there is a lack of strategic insight in IT investments, and the Government \nmay fail to optimise the use of existing ICT infrastructure. In addition, the Country lacks \ncompetitiveness in harnessing opportunities in ICT.", "metadata": {"page": 78, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "I advised Government to consider establishing a national IT Governance Framework and \nstructure to oversee investments in information and communication technologies. \n \n3.5.2. \nFailure by MDAs to Pay for National Backbone Infrastructure Services \nNITA-U provides NBI/EGI services to MDAs and Local Governments whose ICT budgets \nhave been either consolidated or not consolidated under NITA-U's ICT budget. \nCurrently, fifty-four (54) entities whose ICT budget is consolidated under the ICT sector \nbudget, while the ICT budget for 72 entities are not consolidated. Out of seventy-two \n(72) entities, only ten (10) entities have honoured their obligations. This has led to the \naccumulation of domestic arrears totalling UGX.22.96Bn as of 30th June 2021. \n \nThe arrears largely relate to the costs of expanding the national backbone/e-\nGovernment infrastructure (NBI/EGI). Notably, domestic arrears accounted for 14% of", "metadata": {"page": 78, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "the annual GoU budget for the Authority, which is not only unsustainable but may lead \nto difficulties in the provision and extension of e-government services throughout the \nCountry. \n \nI advised management to liaise with MoFPED in consultation with MDAs to ensure that \nthe ICT budgets are consolidated under the ICT Sector budget. \n \n3.5.3. \nUncollected Revenue from Media Operators \n \nI noted that UCC stopped invoicing government bodies, namely: Uganda Telecom \nLimited (in-Administration), Uganda Broadcasting Corporation and Uganda Post Limited, \nfor licensing and other charges. A review of the financial statements of these \nGovernment agencies revealed an un-invoiced amount of UGX.50.9 Bn. Management \nattributed it to the financial distress of these companies and the URA's tax policy of \ninvoicing for VAT based on invoices raised by taxpayers, whether paid or not.", "metadata": {"page": 78, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "I noted that UCC did not issue invoices worth UGX.421.9Million to 15 operators (4 \ntelevision operators and 11 FM broadcasting stations) during the period under review, \ncontrary to its financial regulations.", "metadata": {"page": 78, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "68 \n \nRelatedly, UCC has not enforced the payment of a 2% gross annual levy on the licensed \nTelevision and FM radio operators gazetted in 2017, contrary to Section 68(1) of the \nUCC Act 2013. Management explained that the operators had appealed to the Minister \nof Information, Communication Technology & National Guidance. \n \nI advised management to engage all stakeholders and collect the levies due. \n \n3.5.4. \nLack of a Communications Tribunal \nDuring the audit, I observed that the Commission does not have a Tribunal contrary to \nSections 60(1 & 2) and 64(1) of the Uganda Communications Act, 2013. The tribunal \nwould have jurisdiction to hear and determine all matters relating to communications \nservices arising from decisions made by the Commission or the Minister under this Act. \n \nIn the absence of the tribunal, the Commission lacks jurisdiction to hear and determine", "metadata": {"page": 79, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "matters arising from decisions made by the Commission or the Minister under this Act. \nCurrently, the matters are being heard by the Minister and the Commission, which \ncreates a conflict of interest. \n \nThe Accounting Officer explained that the responsibility to appoint the tribunal does not \nreside with the Commission and that the tribunal is to be appointed by the President on \nthe recommendation of the Judicial Service Commission, and that the matter had been \nbrought to the attention of the Minister of ICT and National Guidance. \n \nI advised management and the Board of Directors to liaise with the relevant authorities \nto constitute the Communications Tribunal.", "metadata": {"page": 79, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "69 \n \n3.6. \nACCOUNTABILITY SECTOR \n \n3.6.1. \nApproval of supplementary funding without matching revenue \nIt was established that during the financial year ended 30th June 2021, supplementary \nfunding totalling UGX.6.13Tn was granted by the Minister of Finance, Planning and \nEconomic Development. It was however, noted that the source of funding for the \nsupplementary expenditure was not clearly shown before approval was granted. \n \nAs a result, the supplementary expenditure was instead financed by internal budget cuts \nfrom various votes, thus affecting the implementation of plans/activities by the affected \nvotes. Although the budget was raised from UGX.45.495Tn to UGX.51.625Tn, only \nUGX.46.6Tn was realised, resulting in unfunded activities worth UGX.4.98Tn. \n \n3.6.2.", "metadata": {"page": 80, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "3.6.2. \nUnderperformance in Revenue Collection \nI observed that, URA had a total revenue collection target of UGX.22.04Tn for the \nfinancial year 2020/21 and collected total gross revenue of UGX.19.65Tn (89%) hence a \nshortfall of UGX.2.39Tn (11%). Under collection of revenue affects cash flow \nperformance of Government and realisation of the planned service delivery targets. In \naddition, it may increase the national debt burden as the Country may fail to honour its \nobligations and borrow more to address revenue shortfalls. Management attributed the \nperformance to the adverse impact of the COVID-19 pandemic. \n \nI advised management to continue implementing strategies to enhance revenue \ncollection. \n \n3.6.3. \nPerformance of the collaborating institutions under the Tax Registration and Expansion \nProgramme (TREP)", "metadata": {"page": 80, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Programme (TREP) \nDuring the financial year 2020/2021, the collaborating institutions under the Tax \nRegistration and Expansion Programme (TREP) registered only 167,211 taxpayers \nagainst a target of 436,869 taxpayers representing 38.27% registration success a \nshortfall of 61.7%. In revenue terms, although TREP had a revenue target of \nUGX.124.58 Bn in FY 2020/21, it had only collected UGX.49.93Bn by 30th June 2021, \nrepresenting a 40% performance rate. In addition, the Ministry of Local Government \nhad planned to implement activities worth UGX.4.4Bn under TREP activities but only \nimplemented activities worth UGX.3.3Bn, leaving un-implemented activities worth \nUGX.1.1Bn despite receiving full funding. As a result, the e-LogRev objective of \nsimplifying and strengthening the local revenue collection systems for Local \nGovernments may not be achieved in time.", "metadata": {"page": 80, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Governments may not be achieved in time. \nThe paltry performance was attributed to the effects of the COVID-19 pandemic that \nhas set back many businesses, political riots and limited staff at the various stations \nbecause URA TREP officers had been laid off, thus resulting in limited staff capacity to \nconduct enforcement. \n \nI advised the project management to review their strategies to enhance performance by \nagreeing on improvement plans to meet the project target. \n \n3.6.4. \nOverstay of projects in the Public Investment Plan (PIP)-UGX.39.01Tn \nThe Public Investment Management Reform Strategy provides that projects are \nsupposed to be delivered on budget and on time in order to achieve the desired goals \nand objectives.", "metadata": {"page": 80, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "70 \n \n \nAudit observed that in the sample of 371 projects, 342 projects with budgets totalling to \nUGX.39Tn had gone past their planned exit periods that date as far back as the \nFY2010/11, with some projects having been extended for more than 12 years. The audit \nnoted that the projects continued to receive Development Committee approval for a \ncontinued stay on the PIP. It was noted that only 40% of the projects in the PIP were \nstill within their expected time period. \n \nAs a result, this has caused delays in the completion of key projects, cost overruns and \nhigh commitment fees on foreign debt on account of low Absorption and failure to \ncomplete projects on time. It should also be noted that the effectiveness of some \nprojects dwindles as time goes by. \n \nThe PS/ST was advised to critically review the justification for maintaining certain \nprojects within the Country's Public Investment Plan.", "metadata": {"page": 81, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "3.6.5. \nUn recovered Advances; UGX.2,819,193,074 \nMoFPED introduced a policy to advance funds to entities before actual collection of \nAppropriation in Aid on the condition that these funds will be recovered after collection. \nThe policy failed in the FY2018/19 and 2019/20 due to failure to recover funds fully. \n \nDuring the financial year 2018/19, entities were advanced Appropriation in Aid, of which \nUGX.22.16Bn remained outstanding as at year-end. During the year 19/20, \nUGX.21.31Bn was recovered, leaving UGX.849 million outstanding. \n \nIt was also noted that during the financial year 2020/21, a total of UGX.116.9Bn was \nagain advanced in disregard of what had happened earlier to various Local \nGovernments. Out of the funds advanced, UGX.114.07Bn was recovered, leaving", "metadata": {"page": 81, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "UGX.2.81Bn outstanding. \n \n3.6.6. \nAbsence of a monitoring and evaluation framework for impact assessment for tax \nexemptions \nThe Government of Uganda has offered many beneficiaries' tax benefits, including tax \nholidays, waivers for tax payments, and refunding of various taxes as stipulated in \nvarious agreements and memorandum of understanding. The benefits are granted \nbased on intended objectives that include promotion of economic growth, increasing \nemployment, facilitation for extension of social services by Non-Government \nOrganisations, among others. \n \nIt was, however, noted that there is no mechanism in place for evaluating and or \nassessing the impact of the benefits granted. Analysis revealed that a number of \nbeneficiaries have since had their benefit period expired without any follow up. \n \nIn the absence of a monitoring framework, Government is not in a position to assess the \nimpact of the tax benefits granted to the various beneficiaries.", "metadata": {"page": 81, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "The Accounting Officer was advised to review the tax exemption Policy and set up a \nmonitoring mechanism to follow up all tax incentive beneficiaries.", "metadata": {"page": 81, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "71 \n \n3.7. \nENERGY SECTOR \n \n3.7.1. \nCapitalization of Uganda National Oil Company and its Subsidiary Companies \nUganda National Oil Company (UNOC) is charged with a mandate of representing \nGovernment of Uganda\u2019s Commercial interests in Oil and Gas Sector. The Company is \nstrategically positioned to participate in the down-stream, middle-stream and the up-\nstream of the oil and gas value chain, thereby engaging in the exploration, production \nand commercialization activities. The Company is anticipated to fully participate in the \nexploration and production in the Albertine Graben; the oil refinery and the oil pipeline. \nAs a result, UNOC has registered two flag ship Subsidiary Companies to champion its \ncommercial interests. These include; the Uganda Refinery Holding Company for the \nrefinery business, and the East African Crude Oil Pipeline Company to lead in the \npipeline business.", "metadata": {"page": 82, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "pipeline business. \n \nI noted that despite the significant initial investment requirements by UNOC and its \nsubsidiary companies, the government has not fully capitalized the companies to enable \ntheir full participation in the sector. The companies are consistently facing funding \nconstraints. For the period under review, I noted that out of the Budget of UGX.76.38Bn \nfor UNOC, only UGX.34.4Bn was availed, resulting in a funding gap of UGX41.98Bn, \nwhich is 54.96% of the budget. \n \nAfter the Final Investment Decision for the Upstream and EACOP Project, which is \nenvisaged to be undertaken in February 2022, there will be a rapid increase of oil and \ngas activities which will cause an exponential growth in the financing needs of the \nCompanies. \nUNOC has proposed a capitalization plan to MOFPED in its annual work programme and", "metadata": {"page": 82, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "budget for the FY 2021/22 of UGX.914.18Bn comprising Capital expenditure \n(UGX.304.08Bn) and Operating expenditure (UGX.129.10Bn). \n \nThe Accounting Officer explained that he was engaging MOFPED and other stakeholders \nto secure finances to that magnitude, and a plan has been agreed with government on \na phased approach towards capitalizing UNOC and its subsidiary companies. \n \nI advised the Accounting Officer to fast-track their discussions with MoFPED to ensure \nadequate capitalization of the companies to enable government commercial participation \nin the strategic oil and gas sector. \n \n3.7.2. \nImplementation of the Electricity Connection Policy(ECP) \nThe Government of Uganda established the Electricity Connections Policy (ECP), 2018 \nwhich is expected to run from 2018 to 2027. The primary objective of the policy is to \nincrease electricity access, and provide cleaner energy to Ugandans. The policy aims at", "metadata": {"page": 82, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "achieving the 26% rural access target by 2022, 30% national coverage target by 2020 \nand accelerating access after 2020 in order to achieve 60% access rate by the year \n2027. \n \nI noted from the review of the Connections Department work plans and progress reports \nfor the year under review that out of the 97,000 annual planned connections, only 3,683 \n(3.7%) connections were undertaken. The dismal performance may frustrate the \nGovernment\u2019s initiatives under the Policy and NDP III of increasing electricity access to \nthe population to 60% by 2027.", "metadata": {"page": 82, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "72 \n \nI further noted that the ECP was facing challenges in delayed procurement of \nconnection materials, under funding of compensations for the Project Affected Persons \n(PAPs), vandalism of the distribution network, among others. \n \nThe Accounting Officer explained that the funding for the Connection Policy got \nexhausted and the Policy was first suspended by Government. However, it resumed in \nMarch 2021 to facilitate connections by utilizing materials procured with funding from \nAfrican Development Bank (ADB). He further explained, that Rural Electrification \nProgram (REP) had secured approval from AFD to utilize the grant for connections \nintended to benefit 45,000 customers under the result-based implementation \narrangement with the expected implementation to start by March 2022, and the \nconnection materials are expected under the TBEA/Exim Bank contract which will benefit \nover 172,000 customers by June 2022. \n \nI advised the Accounting Officer to liaise with the relevant stakeholders such as MoFPED", "metadata": {"page": 83, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "and MEMD, to devise Sustainable funding strategies and ensure that implementation of \nthe ECP is fast tracked for the achievement of policy objectives and service delivery. \n \n3.7.3. \nVandalism and Theft of UETCL Grid Assets \nUganda Electricity Transmission Company Ltd (UECTCL is charged with bulk evacuation \nof power using High Voltage (220Kv and 132Kv). The Company majorly uses steel \nTowers for the construction of the Transmission Lines. During the year it incurred \nUGX.0.5Bn in purchase of Galvanized Angle bars to replace vandalized tower members. \nFurther analysis revealed that the Company incurred UGX 1.56Bn in replacement costs \non assorted transmission line items vandalized between 2017 and 2021. \n \nThe Accounting Officer explained that this was a nationwide vice that has been brought \nto the attention of Cabinet and Security Agencies. In addition, Management installed a \npilot security system on transmission lines, however the system was itself vandalized.", "metadata": {"page": 83, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Nevertheless, management continues to engage security agencies and also community \npolicing to protect UETCL installations. \n \nVandalism impedes continuity and reliability of electricity supply to the country and \nstrains company resources used to replace vandalized items and associated works. In \naddition, energy not transmitted due to infrastructure breakdown translates into loss in \nrevenue to the company. \n \nI advised the Accounting Officer to continue engaging the MoFPED and MEMD in order \nto obtain funding for Implementation of Key Projects and follow up with the relevant \nstakeholders to fast-track amendment of the relevant legislation and promotion of Joint \nVentures and negotiation of Commercial Partnerships. \n \n3.7.4. \nDeemed Energy Purchases: UGX.87.7 Billion and Power Evacuation Losses UGX.15.29 \nBillion \nDeemed energy refers to the electric power that is available for dispatch by an \nIndependent Power Producer (IPP), but due to; non-existent or a weak grid", "metadata": {"page": 83, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "infrastructure, and/ or insufficient demand, the power is not dispatched. This effectively \ntransfers the market risk from the investors to Government, especially when the Power \nPurchase Agreement states so.", "metadata": {"page": 83, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "73 \n \nAccording to several Power Purchase Agreements (PPAs) and other implementation \nagreements signed between the IPPs, GOU, and UETCL; GOU committed to construct \npower evacuation infrastructure from the IPP\u2019s generation facilities to the distribution \nnetwork upon commencement of generation and dispatch of power by IPPs. The failure \nto dispatch generated power constitutes deemed energy, and UETCL shall make \npayments to IPPs for such energy generated and not dispatched in accordance with the \npower purchase agreement. \n \nI noted that UETCL continues to pay significant amounts relating to deemed energy \npurchases. As a result, deemed energy costs of UGX.87.7 billion in regard to thirteen \n(13) Power Purchase Agreements (PPAs), save for one Hydro Power Plant (HPP), were \nfinanced through the electricity tariff system, hence negatively impacting on the \nelectricity price to the final consumer.", "metadata": {"page": 84, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Similarly, I noted that UEDCL incurred an amount UGX.15.20Bn from power evacuation \nlosses payable to UETCL for bulk power purchases. The amount is due to power \nevacuation losses stemming from absence of transmission lines to evacuate electricity \nfrom PA Technical, Siti 1 and Arpe Power Plants which resulted into wheeling power \nover a lower capacity and weaker distribution lines operated by UEDCL. These are \nsignificant losses for which the Company did not generate economic value. Payment of \nthis amount would significantly affect the Company\u2019s cash flows. \n \nI advised the Accounting Officer to continue engaging the Regulator and other sector \nplayers to address the infrastructural constraints in the transmission network to ensure \nefficient evacuation of generated power. \n \n3.7.5. \nDelayed Commissioning of Karuma HPP \nAccording to the 4th Quarter Progress Report, I noted that the completion date for", "metadata": {"page": 84, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Karuma Dam was further extended to 15th June 2022, resulting in a delay of 3 years \nand 6 months from the initial planned completion date due to unfinished works such as \nthe spillway rehabilitation and other minor defects. \n \nI noted that the completion of land acquisition process or the Resettlement Action Plan \n(RAP) for the 132kV Karuma-Lira Transmission Line and Karuma Dam Reservoir by \nUTECL and MEMD, respectively, remain outstanding. These when not completed will \naffect the commissioning of the Karuma Dam and is a breach of the employer\u2019s \nobligations under the EPC Contract with significant risk to the overall project completion. \n \nThe delays in Project completion are likely to result in increased supervision costs, by \nthe supervising consultant, and increased commitment fees payable on undrawn \nbalances of the loan, of which GoU had already paid commitment fees amounting to \nUGX.2.9Bn as at 30th June 2021. It also reduces the period between commissioning,", "metadata": {"page": 84, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "commercialization and payback which may have implications on the electricity tariff \nstructure. \n \nI further noted Key Non-conformities by the EPC Contractor which included; 11kV \nswitchgears installation, Units 1 to 6 ring gate leakage oil sump control box, severe \ndamages on the various 400kV cables, damaged conic sealing surfaces, repair of the oil \nwater separator unit, prolonged spillway operation, Outgoing Line Yard \u2013 cracks in the \nControl Building and absence of a Floating Boom.", "metadata": {"page": 84, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "74 \n \nThere is a risk that the non-conformities will result into damages, malfunction of \nequipment, unreliable plant components, and significant impact on working life duration \nand high operation and maintenance costs, as well as, negative environmental impact. \nThis is likely to further affect the timely and successful commissioning of the Karuma \nDam. \n \nI advised the Accounting Officer to ensure that the rectification of pending works under \nthe Karuma Dam is expedited to enable project completion and commissioning without \nfurther delay. \n \n \n3.7.6. \nBottlenecks in the Compensation of Project Affected Persons(PAPs) under Transmission \nLine Projects \nThe Uganda Electricity Transmission Company Ltd (UETCL) is mandated to augment \ngovernment\u2019s efforts of increasing electricity coverage and expanding the national \npower transmission line network. The Sustainable Development Goals (SDGs); Seven (7)", "metadata": {"page": 85, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "and Nine (9) both aim at increased electricity access by 2030.The electricity \ntransmission sector has been affected by delayed construction and energizing of \ntransmission lines. The delay has contributed to the low electricity consumption rates in \nthe country of 215 KWh per capita per year, which is below the Sub-Saharan Africa\u2019s \naverage of 552Kwh per capita per year. The delayed construction has further more \nresulted into low uptake of borrowed funds, leading to increased costs, such as \ncommitment fees paid. \n \nThe delays in undertaking the construction of the transmission lines have been majorly \nattributed to inadequacies in the compensation process of the Project Affected Persons \n(PAPs), thus leading to challenges faced in \u201cAcquisition of the Right of Way\u201d (ROW). \nThis has in turn led to delayed implementation of a number of projects in the Energy \nSector. A review of the compensation process under UETCL revealed the following \nirregularities; \n \ni)", "metadata": {"page": 85, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "i) \nThe budgeting, disbursement, and absorption of compensation funds were not \nproperly managed which resulted into over budgeting to the tune of UGX.111.3Bn \non GERP and Mputa projects. \n \nii) \nThe valuation process was marred with a number of irregularities, which included \nthe use of un-updated district compensation rates; and unverified legal interests in \nthe land; which resulted into unnecessary revaluations and ligation. \niii) \nAbout 56% of the PAPs for GERP and Mputa projects were not properly identified, \nand this resulted into a mismatch between the number of PAPs appearing on the \nPayment files, Survey reports and Valuation Reports. \niv) \nOf the released compensation amount of UGX.21.5Bn for both GERP and Mputa \nProjects, only UGX.5.86Bn was paid to PAPs, thus resulting into unspent funds to", "metadata": {"page": 85, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "the tune of UGX.15.64Bn. This mostly affected the GERP Project which alone had \nUGX.13.17Bn not utilized, while Mputa had only UGX.1.66Bn. \nv) \nThere were significant delays in compensation of PAPs. 1,109 PAPs (52.2%) for \nMputa and 821 (35%) for the GERP Transmission Line remained unpaid by the \ntime of concluding the audit (November, 2021). Relatedly, Compensations in kind \nalso delayed whereby out of 149 PAPs identified, only 93 were resettled, leaving \n56 PAPs not resettled.", "metadata": {"page": 85, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "75 \n \nvi) \nThere were inadequacies in the construction of the resettlement houses which \nincluded; irregular payments to contractors, delayed progress of works, \ndiscrepancies in drawing specifications and BOQs, poor materials used for \nconstruction, and a number of defects which were not rectified. \nTimely compensations of project affected persons (PAPs) and acquisition of the right of \nway for electricity transmission lines would enable increased access to electricity by the \ncitizens as envisaged in the sustainable development goals; 7 and 9. This would have a \nmultiplier effect on industrialization which is critical for creation of employment and \nultimately poverty reduction in the country. \n \nI advised management to streamline its RAP processes, including proper identification of \nPAPs, clear valuation processes, proper budgeting and release of funds, timely \nsubmission of PAP documentation and proper supervision of RAP activities. \n \n \n3.8.", "metadata": {"page": 86, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "3.8. \nGENDER AND SOCIAL DEVELOPMENT SECTOR \n \n3.8.1. \nLabour Externalization Inadequacies \nLabour externalization is a process whereby government undertakes to regulate the \nexport of labour to foreign countries. This role is under the mandate of the Ministry of \nGender, Labour and Social Development (MoGLSD). This activity involves the signing of \nBi-lateral Migrant Agreements (BLMA) with destination countries. I noted that the \ncountry has only 3 BLMAs with destination countries namely; Saudi Arabia, the \nHashemite Kingdom of Jordan and the United Arab Emirates. However, a review of the \nministry records indicated that the country was exporting labour to more than 3 \ncountries, such as; Kuwait, Oman, Qatar, Turkey, Afghanistan, Iraq and Somalia, among \nothers. \n \nI noted that the Ministry had no mechanism in place to monitor the implementation of", "metadata": {"page": 86, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "the BLMAs. Furthermore, pre-externalization checks on the working conditions, safety \nand health perspectives of the importing labour organizations had not been undertaken. \nI observed that 246 female migrant workers returned between June and December \n2019 without completing their contract period of two years due to human abuse related \nchallenges, according to the Uganda Association of External Recruitment Agencies \nreception Centre report on Returnee Migrant workers. \n \nFurthermore, 548 external labour cases were registered, out of which, 48 (9%) cases \nremained unresolved at year end. \n \nAccordingly, the gender equality, labour and human rights of over 103,935 Ugandan \nworkers who have migrated to various countries to provide labour, from July 2016 to \nJune 2021, may not be guaranteed without duly signed BLMAs. \n \nI advised the Accounting Officer to expedite the finalization of bilateral migrant \nagreements with all the destination countries as this would provide clear international", "metadata": {"page": 86, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "protocols for protection of migrant workers. In addition, the Ministry should liaise with \nUgandan Missions in the destination countries and register all the Ugandan migrants for \nease of follow up.", "metadata": {"page": 86, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "76 \n \n \n3.8.2. \nImplementation of the Uganda Women Entrepreneurship Programme \nThe Uganda Women Entrepreneurship Programme (UWEP) is an initiative of the \nGovernment for empowering women to improve their income levels and their \ncontribution to economic development; by improving their access to financial services \nand equipping them with skills for enterprise growth, value addition and marketing of \ntheir products and services. The Programme has disbursed UGX.107 billion to 11,256 \nwomen groups, covering approximately 135,000 women, over the five-year period from \nfinancial year 2015/16 to 2019/20. \n \nI carried out a Value for Money audit to assess the extent to which the Programme \nachieved its intended objectives, and noted a number of key improvement areas as \nfollows; \n \ni) \nI noted that only 4,185 women had benefited from the Programme under the", "metadata": {"page": 87, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "capacity and skills development component, which translates into 42% of the \ndesired target (10,000 women) according to the UWEP Programme document. \nii) \nThere were delays in disbursement of funds to the women groups. In some cases, \nthe delays were more than 12 months from time of approval of the applications to \nreceipt of the funds which affected the performance and success of enterprises, \nspecifically those in the agricultural sector, which depend on the rainy seasons for \nplanting. \niii) \nDespite the UGX.16Bn sitting on the recovery account with Bank of Uganda from \nthe loan repayments over the five years, only UGX.963 million (6%) of the amount \nhad been revolved. This denied the qualifying women groups timely access to \nfunds, which were otherwise available for disbursement. \niv) \nThe Ministry of Gender, Labor and Social Development through the UWEP \nTechnical Support Unit did not effectively plan and coordinate implementation of", "metadata": {"page": 87, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "the objectives of facilitating women to access markets for their product, as well as \npromoting access to appropriate technologies which were not allocated funds in \nthe budgets for the entire 5-year period. Consequently, these objectives were not \nfully achieved. \nv) \nThere was underfunding of monitoring and supervision activities at the local \ngovernment level which affected the frequency of monitoring of beneficiary \nwomen groups. The programme gaps at enterprise level could not be adequately \nidentified and corrected on time. At the National level, the Technical Support Unit \n(TSU) undertook only 13 (43%) of the planned 30 monitoring and supervision \nvisits to the regions throughout the five-year period. This resulted in delayed \nidentification of performance gaps and timely remedial actions. \nI advised the Accounting Officer, prioritize the capacity and skills development \ncomponent of the Programme and ensure women groups are given funds after attaining \nthe requisite skills in management of the approved enterprises. In addition, the Ministry", "metadata": {"page": 87, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "and Local Authorities should iron out all the bottlenecks in the application approval \nprocess to ensure timely revolving of the funds to women groups.", "metadata": {"page": 87, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "77 \n \n3.9. \nLAND SECTOR \n \n3.9.1. Management of Government Land Matters \nThe Uganda Land Commission is mandated to manage public land acquired by \ngovernment both abroad and locally. I noted that the Commission does not have an \ninventory for all government land and properties that are either occupied by tenants, \nvacant, acquired under compensation (but not yet re-distributed to the bona fide \noccupants), or acquired and owned by other government institutions and missions \nabroad. This inadequacy has contributed to government losing land to fraudsters, \nsquatters and also inadequate revenue collections from the untimely collection of the \nproperty premiums and leases. \n \nI further noted an increase of UGX. 118.Bn (81.5%) in land compensation payables \nduring the year, of which UGX 105.5Bn related to new compensations for land, while", "metadata": {"page": 88, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "UGX.12.5Bn related to revaluations of land that had been previously fully compensated \nor had an outstanding payment. Furthermore, UGX.8.93Bn (15%) was paid to eight (8) \npersons out of the eight four (84) ranchers who had not been paid in the previous \nyears. The delay to pay other ranch claimants may result into litigation and court \nawards that would further increase the domestic arrears. As at 30th June, 2021, the \noutstanding claim from ranchers was UGX.61.5Bn, and compensations to other \nclaimants stood at UGX.188.0Bn, thus bringing total outstanding compensations in the \nMinistry of Lands alone to UGX.249.5Bn. \nSimilarly, the current landlord claims under the Uganda Land Fund, at the Uganda Land \nCommission, stand at UGX 194.7Bn. These also increased by UGX.7.2Bn during the \ncurrent year. However, this amount is not supported by complete and appropriate", "metadata": {"page": 88, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "documentation. The claims have been outstanding for a while due to the limited budget \nallocation to the Commission and the delay to fully operationalize the Land Fund which \nhas remained operating as a budget support line in the Commission\u2019s appropriated \nbudget. \n \nI advised government to fully operationalize the Land Fund under the Commission and \nconsider decentralizing all government land compensation payment claims to the Fund \nfor proper management of government compensation processes, including mobilization \nof funds. \n \n \n3.10. EDUCATION SECTOR \n \n3.10.1. Management of Bilateral Scholarships \nSection 42(1) of the Higher Education Students Financing Act provides that all \nscholarships offered by the Government of Uganda (GOU), including bilateral \nscholarships, existing immediately before the commencement of this Act shall vest in the \nBoard. \n \nSubsection (2) further provides that the central scholarship committee of the Ministry of", "metadata": {"page": 88, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "education and Sports existing immediately before the commencement of this Act shall \ncease to exist on such a date as the Minister may by Statutory Instrument publish in the \ngazette.", "metadata": {"page": 88, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "78 \n \nOver the years, Uganda has received scholarships through various schemes from several \nCountries. The various types of awards include offers through bilateral cooperation, \noffers through multilateral cooperation and direct offers to individuals through \nEmbassies of awarding Governments, Institutions and Agencies. \n \nScholarships awarded to Ugandans through Embassies of awarding Government are in \nmost cases received on an annual basis, most of them routed through the Ministry of \nForeign Affairs. The major and regular donors are; United Kingdom, India, Egypt, \nChina, Cuba, Turkey, Algeria, New Zealand and Hungary, among others. \n \nA review was undertaken with the objective of establishing the effectiveness in \nmanagement of Bi-lateral scholarships, identifying the challenges and providing \nrecommendations for improvement. During the analysis, a number of aspects were \nconsidered including; the extent of awareness of the scholarship programmes by \nUgandans, absorption of Bilateral Scholarships, and the transparency and effectiveness", "metadata": {"page": 89, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "of the award process. The following matters anomalies were identified; \n \n\uf0b7 \nManagement of scholarships at the Ministry of Education and Sports is not \nsupported by a Scholarship Policy, thus the country lacks policy direction in \nregard to sourcing, accepting, allocation and monitoring of scholarships. \n\uf0b7 \nThe Ministry of Education and Sports still holds the mandate of managing \nGovernment \nscholarships \ncontrary \nto \nSection \n42(1) \nof \nthe \nHigher Education Students Financing Act which revoked the Committee\u2019s \nmandate. \n\uf0b7 \nInformation on Scholarship offered at the different Missions and other \nGovernment organizations was not readily available at the Secretariat. \n\uf0b7 \nLow uptake of scholarships was noted whereby out of a total of 280 scholarships \noffered to government in the previous three years, only 162 were filled resulting \ninto an under absorption of 118 (42%) scholarships.", "metadata": {"page": 89, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "The above outlined weaknesses have resulted into the process of accessing information \non scholarships not being properly streamlined and consequently leading to low \nutilization/absorption of the scholarships available to the Country. \n \nI advised the Ministry of Education and Sports to ensure that the administration of \nscholarships in the country is streamlined for efficient and effective management. \n \n3.10.2. Management of Research Grants by Public Universities in Uganda \nOwing to the different challenges faced by public Universities in the management of \nresearch grants I undertook a value for money audit and independently assessed the \nmanagement of research grants by Public Universities in 4 out of the 9 Public \nUniversities in Uganda, these included; Makerere University, Mbarara University of \nScience and Technology (MUST), Kyambogo University and Busitema University. I noted \nthe following; \n \ni) \nThere is no framework to ensure collective planning, coordination and follow-up of \nresearch efforts for the different Public Universities to ensure equitable allocation \nof resources, efficient utilization of academic staff, and that research results \ncontribute to National development.", "metadata": {"page": 89, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "79 \n \nii) \nI noted that key research and grant management policies/guidelines were missing \nat a number of Universities to guide on the efficient and effective management of \nresearch activities. Furthermore, the country lacks national regulations and \nguidelines for research and innovation activities including; sourcing of external \ngrants, development and uptake of technologies and, management and \ncommercialization of intellectual properties. \niii) \nI noted inadequate administration structures for management of university grants, \nfor example, out of the 4 Universities, only MUST had a grants office with \ndedicated staff to support grant activities. Busitema and Kyambogo universities did \nnot have grants administrators at college/faculty level, while at Makerere and \nMbarara only the college of Health Sciences and the faculty of medicine, \nrespectively, had grant administrators to undertake the tasks. \niv) \nI noted that the country does not have a clear research agenda to guide planning,", "metadata": {"page": 90, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "implementation and policy matters regarding research in the Country. Some \nUniversities lacked research agenda. For example, Mbarara and Busitema \nUniversities did not have an approved research agenda. \nv) \nI noted that resource mobilization initiatives for public universities were \ninadequate. Out of the 4 universities, only MUK had a consolidated Research \nInnovation Fund (RIF) for research funds from government the other universities \nhave not explored this initiative. All the universities have not raised any resources \ninternally into a separate fund for research. This was attributed to government \npolicy of remitting all internally generated revenue into the consolidated fund. \nvi) \nI noted monitoring and evaluation of research projects was inadequate in all the \nfour Universities. M&E was not carried out by the university management on \nexternal research grants for the period 2017/18-2019/20. I further noted that \neven where M&E was undertaken by donors, recommendations were not fully \nimplemented by the Universities. \nvii)", "metadata": {"page": 90, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "vii) \nI noted significant delays in completion of research projects. For example, 450 \n(88%) out of 512 Government funded Grants from MUK, Kyambogo and Busitema, \nwere not completed in time during the period under review. Similarly, 218 \n(62.3%) out of 350 Donor funded Grants from the 4 universities were not \ncompleted in time. \nI advised government through its various entities to consider establishing a National \nresearch agenda which should be supported by a comprehensive research management \nframework streamlined throughout the entities. In addition, Government should consider \nestablishing a research fund at each public university in which both government and \ndonor research funds could be collected and effectively managed.", "metadata": {"page": 90, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "80 \n \n3.11. WATER & ENVIRONMENT SECTOR \n \n3.11.1. \nAfforestation and Restoration of Selected Central Forest Reserves (CFRS) by the \nNational Forest Authority (NFA) \nThe National Forestry Authority (NFA) was established under section 52 of the National \nForestry and Tree Planting Act, 2003 (NFTPA) with an objective of managing the Central \nForest reserves. The country\u2019s forest cover reduced from 24% (4,933,271ha) in 1990 to \n9% (1,956,664ha) in 2015, with a slight increase of up to 12.3% (2,025,192ha) in 2017. \nThe forest cover loss over the years from 1990 to the last biomass study in 2017 was \nestimated at 58.9%. Similarly, the CFR forest cover under NFA\u2019s jurisdiction alone", "metadata": {"page": 91, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "dropped from 62.5% (791,240ha) of the NFA forest cover to 45.8% (579,257ha) in the \nsame period. This trend was contrary to Sustainable Development Goal 15 which \nrequired governments to ensure the restoration of forests and increase forest cover in \nline with obligations under international agreements by 2020. \n \nI carried a value for money audit to evaluate the effectiveness of the measures put in \nplace by the NFA towards the restoration and establishment of new plantations in the \ncentral forest reserves, between the period of 2016 and 2020, and noted the following; \n \ni) Although management achieved 11,173ha (78%) of their planned outputs \n(14,277ha) for both restoration planting and establishment of new tree plantations, \nthis only contributed a total of only 0.88% to the NFA forest cover (1,265,742ha) \nover the four-year period. This dismal performance was attributed to a number of", "metadata": {"page": 91, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "inadequacies in the Planning; Budgeting; Land management; Monitoring and \nInspections; and Collaboration management, resulting into the failure by NFA to \nmeet its desired targets towards increasing the national forest cover. \nii) A number of stakeholders in the forest sector, with different projects across MDAs \nsupporting forestry restoration activities, were not adequately coordinated under a \nsingle mandate. In addition, there are; inconsistencies in the national, sector and \nNFA strategic plans, there is a lack of specific outputs per stakeholder in the plan \ntogether with matching funding for the activities met to achieve the planned \noutputs. These inadequacies in coordination and planning at NFA, the Forest sector \nand national level have contributed to the limited National forest coverage of 12.3% \nand NFA forest cover of 45.8%. \niii) I that out of the expected 16 monitoring reports in the four-year period ending 30th \nJune, 2020, only 4 (25%) were prepared in the entire four-year period. In addition,", "metadata": {"page": 91, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "NFA budgeted to receive UGX.320m for monitoring in the four years under review, \nbut only UGX.91.8million (29%) was released, and the entity spent UGX 88.8million \nover the period on monitoring activity. Furthermore, there were limitations in \ndiscussing and implementing monitoring report recommendations, and as a result, \nthere were instances in which management did not demarcate the area as \nrecommended by the M&E report before restoring the forest. This led to destruction \nof the newly restored forests by encroachers. \nI established that seventeen (17) MOUs were signed with different government \nagencies, out of the planned twenty (20), representing an 85% performance. Although \nthese collaborations contributed to the restoration and establishment of new \nplantations, there were inadequacies in providing the planned quantity of seedlings. In \naddition, twenty (20) out twenty-eight (28) Collaborative Forest management (CFM) \nagreements were signed with forest edge communities. \nagreements were signed with forest edge communities.", "metadata": {"page": 91, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "81 \n \nI advised the Accounting Officer to improve on the Planning, Budgeting, Coordination \nand Collaborations, Monitoring aspects, and prioritization of fixed resources required in \nthe restoration and establishment of forest cover in the country. \n \n \n3.12. WORKS SECTOR \n \n3.12.1. \nUganda National Roads Authority \na) \nLoss of funds in interest on delayed payment of contractors \n \nThe Authority incurred wasteful expenditure to a tune of UGX.17Bn in form of interest \nand penalties due to delayed settlement of invoices from contractors. This was a loss to \nGovernment. The Accounting Officer explained that interest costs arise due to \ninadequate funding for the road development and maintenance projects that UNRA is \nmanaging. I advised the Accounting Officer to enhance the Authority cash flow \nmanagement by rationalizing available resources, especially reduction of advances", "metadata": {"page": 92, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "payments to settle outstanding claims and to improve the Authority\u2019s budgeting process \nand liaison with relevant authorities such Parliament and Ministry of Finance for \nadequate financial resource allocation. \n \nb) \nDelayed road projects and accumulation of commitment fees \n \nBy 30th June 2021, 35 road projects under UNRA with a total contract value of \nUSD.398,427,063.99 and UGX.149,739,813,845 had been delayed. These 35 projects \nwere to be completed during the year were behind schedule as per their work \nprogramme still on-going by the close of the year. The delays which ranged from 64 \ndays (about two months) to 1,072 days (about two months three years) days were \nmajorly attributed to: inadequate mobilization by some contractors, abnormal rains, \ndelayed acquisition of Right of Way and the effects of COVID-19 that resulted into \nnationwide lockdown. I computed commitment fees on only two projects (Busega-Mpigi-", "metadata": {"page": 92, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "UGX.7,1140,345,245) and RSSPV (UGX.3,079,241,588) and observed an accumulation \nof total commitment fees amounting to UGX.10,219,586,833 in only one year alone. \n \nThe Accounting Officer explained that the delay to complete the projects was due to a \nnumber of factors that included; inadequate mobilization by some contractors, abnormal \nrains, delayed acquisition of Right of Way and the effects of COVID-19 that resulted into \nnationwide lockdown. I advised the Accounting Officer to always ensure that projects \nare completed within the agreed timelines. \n \nc) \nDelayed compensation for Project Affected Persons and Acquisition of Right of \nWay for Road Projects (Projects- Kampala Jinja Expressway, Hoima Wanseko) \n \nI observed delays in compensation of Project Affected Persons and hence Acquisition of \nthe Right of Way. The majority of Project Affected Persons are compensated beyond the", "metadata": {"page": 92, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "stipulated six-month period after approval of the Valuation Reports by the Chief \nGovernment Valuer. For the KJE Project, the construction works are planned to \ncommence in January 2022. However, 21% of the approved compensation amount \nworth UGX.92,571,144,970 has not yet been paid, with less than 6 months to the \nscheduled commencement date which is likely to impede timely handover of the project \ncorridor and timely commencement of works. In addition, compensation for properties \nwithin volume 5 comprising Kasokoso area had not yet been assessed.", "metadata": {"page": 92, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "82 \n \nThe Accounting Officer explained that a number of issues caused the delays for \ncompensations, such as; lack of proper ownership documents, for example; sales \nagreements, letters of administration, ownership disputes especially for untitled interests \nlike Kibanja or customary land, absentee landlords, and; rejection of compensation \nawards by PAPs that lead to review of the complaint to ascertain validity. I advised the \nAccounting Officer to consider using escrow accounts with district local governments for \nthe absentee landlords and PAPs where funds may be deposited so as to aid fast land \nacquisition. \n \n \n3.12.2. \nMinistry of Works and Transport \na) Failure to maintain district road equipment \n \nThe inspection of the Ministry\u2019s Regional Mechanical Workshops during August and \nSeptember 2021 revealed that 21 units of district road equipment which are key in \nopening and maintaining district roads were left unused in the workshops\u2019 yards for", "metadata": {"page": 93, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "more than a year without repair. The equipment included: thirteen (13) motor graders \nof different models; four (4) bulldozers; One (1) pickup; two (2) dump trucks, and one \n(1) wheel loader. This means that the districts that own the said equipment could not \nmaintain their roads and deliver such critical service to the country as planned. In \naddition, the cost of repair may escalate as other parts also become faulty when the \nequipment is grounded for a long time. \n \nThe Accounting Officer explained that the amount budgeted and received to maintain \nroad equipment represents 30% of the total funds required for equipment maintenance. \nI advised the Accounting Officer to liaise with the responsible authorities to obtain the \nnecessary funding for the full maintenance of the equipment so that the equipment \noperates and serves the Districts. \n \nb) Delayed acquisition of land for the Right of Way for the Standard Gauge Railway \nproject (Ministry of Works and Transport)", "metadata": {"page": 93, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "The SGR project was to acquire 5,200 acres of land free of encumbrances at an \nestimated cost of UGX 534.6 bn for the Right of Way (ROW) for the construction of the \nKampala \u2013 Malaba SGR route by October 2016. However, by September 2021 only \n1,296 acres (25%) had been acquired at a cost of UGX 95.3 bn. Additionally, the project \nhad not obtained titles for the acquired land. There are risks of subsequent \ncompensation for the land already paid for and failure to acquire all the land needed for \nthe full realization of the project. \n \nThe Accounting Officer explained that currently, land acquisition is one of the core \nactivities of the project. He further explained that the releases however have been going \ndown in comparison to the annual budgets. I advised the Accounting Officer to obtain \nand transfer land titles to Government for the land paid for and expedite the acquisition \nof all the land needed for the project.", "metadata": {"page": 93, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "83 \n \n3.12.3. \nUganda Railways Corporation \na) Procurement, supply, delivery, training and commissioning of four (4) used \nlocomotives \n \nURC contracted M/S GRP Leasing Africa for the supply, delivery, training and \ncommissioning of four (4) used locomotives under procurement reference; \nURC/SUPLS/2020-11/0001 at UGX.41,323,768,935. However, I noted that the bidder \ndid not comply with some requirements within the bid document which were supposed \nto be the basis of evaluation. Despite the non-compliance, the bid was evaluated \nwithout following the evaluation criteria for Technical stage contrary to the regulations. \nNon-compliance with the evaluation criteria may have led to delivery of unsuitable \nlocomotives at an inflated cost. Important to note was that the locomotives could not \nturn at the existing turning points in the country. Therefore, the Corporation will incur", "metadata": {"page": 94, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "un-planned costs of providing turning points for the locomotives. \n \nThe Accounting Officer further explained that the limiting turning curvature for the 98 \nclass locomotives is 26 degrees whereas the existing railway triangle had some sections \nwith sharper curvature of less than 26 degrees presumably because the existing triangle \ndesign considered the existing locomotive fleet prior to purchase of the new locomotives \nwith different design specifications to safely change direction at the triangle. The \nphysical constraints of the triangle including 2 bridges over Nakivubo channel, high \nvoltage electricity transmission line pylon and the Kampala Flyover Project Right of Way \nhave limited any possible improvements in the triangle alignment to relax the limiting \ncurvature. I advised the Accounting Officer to always ensure that Evaluation Committees \ncheck for bids\u2019 responsiveness to the criteria set in the bid documents and recommend \nonly fully responsive bids for award of contracts. \n \nb) Lack of Land titles - UGX 91,832,636,500", "metadata": {"page": 94, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "I noted that Uganda Railways Corporation land worth UGX.91,832,636,500 lacked land \ntitles as evidence of URC\u2019s rights to own and use the property. Management\u2019s efforts to \nsecure the land titles appear remote. Lack of land titles led to the Corporation\u2019s land to \nhave been heavily encroached upon and grabbed as was observed during field \ninspection. \n \nThe Accounting Officer explained that Management was pursuing the titling of land in \nvarious locations. I advised the Accounting Officer to expedite the completion of \nManagement interventions and processing of titles for all URC land. \n \n3.12.4. \nUganda Civil Aviation Authority \na) Delayed revision of the Financing Agreement for the Exim Bank loan for Upgrading \nand Expansion of the Entebbe International Airport (EIA) Phase I Project \n \nUCAA entered into an agreement with China Communications Construction Company", "metadata": {"page": 94, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "(CCCC) on 8th October 2014 for the upgrading and expansion of the EIA Phase I. To \nobtain funding for this project, the Government of Uganda (GoU) represented by \nMinistry of Finance Planning and Economic Development (MoFPED) entered into a 20 \nyears\u2019 concessional loan agreement not exceeding Japanese Yuan One Billion, two \nhundred and sixty million (\u00a5 1,260,000,000), equivalent to USD Two Hundred Million \n($200,000,000) with the Export-Import (EXIM) Bank of China on 31st March 2015.", "metadata": {"page": 94, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "84 \n \nSubsequently, MoFPED entered into an on-lending agreement with the UCAA which \ntransferred the following loan obligations to the Authority: - \n \na) Semi-annual loan repayment within 13 years after the grace period of 7 years \nat an interest rate of 2% p.a on the principal amount drawn for the actual \nnumber of days elapsed from a 360-day year. \nb) Payment of a management fee on the aggregate amount of the facility equal to \n\u00a5 3,150,000 (USD 500,000) in one lump sum within 30 days after the effective \ndate of the agreement with EXIM Bank but not later than the first \ndisbursement. \nc) \nSemi-annual payment of commitment fees calculated at 0.25% per annum \nduring the loan availability period. \nOther terms of the agreements relating to the loan included: \na) \nThe Repayment Reserve account shall be used to maintain the minimum", "metadata": {"page": 95, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "amount of balance as a debt service reserve required by the lender. \nb) \nBanking of Revenue collections on Escrow Accounts, and ensuring that \nwithdrawals are based on approvals of the lender. \nc) \nBudgeting and Approval of Annual budgets by the lender for funds on Escrow \nAccounts. \nd) \nPaying semi-annually to the lender a commitment fee calculated at the rate \nset forth in concessional loan agreement (which is 0.25%) on the undrawn \nand un-cancelled balance of the facility. \nBecause UCAA was not prepared to meet the terms and conditions of the loan \nagreement, several meetings were held with the MoFPED and the MoWT and a \nresolution was made to have a Ugandan team headed by Uganda\u2019s Ambassador to \nChina, to engage Exim bank for a renegotiation of the loan terms and conditions. At the \ntime, the Exim Bank had halted payments to the Contractor.", "metadata": {"page": 95, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "The Accounting officer explained that as per the Attorney Generals guidance dated 5th \nNovember 2021, in his opinion none of the clauses in the agreement require \namendment. \n \nI advised the Accounting Officer to engage the relevant authorities on the clarity of the \nconsequences of non-compliance with the terms and conditions that directly affect \nUCAA\u2019s operations, and on the possibility of transferring the loan liability from UCAA\u2019s \nbooks to MoFPED. \n \nb) Ratio analysis and financial performance of Uganda Civil Aviation Authority \nThe Authority made a loss for the year under review amounting to UGX 29,321,645,000. \nOn review of the operating margin, I observed that the costs before considering interest \nand taxes exceeded revenue for the year. I also observed that due to the loss incurred, \nthe Authority generated a negative return on assets of 5%. Further, the Authority could \nnot cover interest accrued on its long-term loans in view of its earnings. Along with the", "metadata": {"page": 95, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "lack of potential to cover loan interest, the Authority had a significant long term \nliabilities portfolio on its balance sheet, which majorly comprised of the loan from Exim \nof China to finance the upgrading and expansion of Entebbe International Airport.", "metadata": {"page": 95, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "85 \n \nThe Authority\u2019s loss and the ratios computed are an indication that Uganda Civil Aviation \nAuthority did not perform well in terms of profitability and ability to sustain provision of \nservices without further Government intervention for funding and Management \nstrategies to improve revenue generation. The Accounting Officer explained that the \nperformance results during the period were severely impacted by the COVID-19 \nsituation that affected the airport operations of the Authority. \n \nI advised the Accounting officer to ensure that strategies are devised to improve the \nrevenue generating potential of the Authority, while putting in place cost cutting \nmechanisms. I also advised the Accounting Officer to engage Government on further \nfinancing including clearance of the debt held by Government agencies, to be able to \ncover the current operating costs as they devise strategies to improve the earning \npotential of the Authority. \n \n \n3.13. HEALTH SECTOR \n \n3.13.1.", "metadata": {"page": 96, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "3.13.1. \nMulago National Referral Hospital \na) \nStatus of key medical equipment \n \nI carried out an assessment of key medical equipment in the hospital. The assessment \nfocused on the functionality and availability of medical equipment in seven key hospital \ndepartments, that is; CSSD, radiology, nuclear medicine, ICU, Laundry, clinical \nlaboratories and accidents and emergencies. I noted that some vital medical equipment \nwas in poor working condition, while others were fully not functional and required \nreplacement. The equipment included: autoclaves in the central sterile service \ndepartment; patient monitors in the accident and emergency surgical unit; blood \ncoagulation machine in the clinical laboratory unit; ICU beds in the intensive care unit, \nand CT machine in the Radiology department. \n \nManagement attributed the poor state of medical equipment in the Hospital to the \nlimited funding provided under the capital development budget of the Hospitals.", "metadata": {"page": 96, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Absence of such essential medical equipment presents a daunting task for the medical \nworkers in the effective execution of their duties. The efficiency of the medical workers \nis compromised. \n \nI advised the Accounting Officer to liaise with the MoFPED and development partners to \nensure that the funding gaps are covered to have the essential medical equipment \nprovided to the hospital units. \n \nb) \nDelayed Construction of 150 housing units \n \nI observed delays in the construction 150 housing units at Mulago Hospital. The contract \nwas awarded on 20th June 2020 at UGX.30,228,600,856 for a duration of thirty-six (36) \nmonths. One year and half down the road, the contractor had not yet completed the \nfoundation of the first block out of the three blocks expected.", "metadata": {"page": 96, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "86 \n \nThe Accounting Officer indicated that the UGX. 4bn cap on the hospital capital \nexpenditure budget creates challenges in undertaking high value capital projects since \nthe absence of funding leads to delays in achievement of project milestones leading to \nproject cost overruns. The Accounting Officer further explained that they have received \nfunds in this Financial Year Budget to pay the contractor and it is expected that by the \nend of June 2022, the progress of construction shall be at a desirable level. \n \nI advised the Accounting Officer to follow up with contractor to ensure that the \nconstruction of the above staff houses is expedited. \n \n \n3.13.2. \nNational Drug Authority \n \na) Delayed Construction of the Laboratory Tower \n \nNDA is undertaking a Laboratory Tower Construction project at a total contract sum of", "metadata": {"page": 97, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "UGX. 35,849,057,474. The start for the works was 11th October 2019 and the original \ncompletion date was 11th October 2021. The completion was revised to 07th March \n2022 because of delays. By the time of inspection, UGX 11,847,043,442 had been paid \nto the contractors. The implementation of the contract was not sufficiently managed \nleading to delayed works. \n \nI also noted that changes were made to the original building plans to cater for the \nadjustments to the outdoor and building basement parking and though the Contract \nManagement Team and the Authority (NDA) had approved the adjustments and works \nhad commenced by the time of audit in August 2021, the amended building plans had \nnot yet been approved by the Metropolitan Physical Planning Authority. Implementation \nof unapproved building plans poses a risk of loss of the NDA funds in case the \nresponsible Authority (Metropolitan Authority /KCCA) rejects the plans and directs \ndemolition of the works.", "metadata": {"page": 97, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "The Accounting Officer explained that the delays in the completion of works were due to \nthe COVID-19 lockdown that took two phases in 2020 and 2021 which interrupted staff \nmovement, manufacturing of inputs globally and transportation. The Accounting Officer \nalso explained that the consultant submitted the revised drawings on 3rd August 2020 \nand no response had come through despite numerous follow-ups including that of 15th \nApril 2021. Management promised to continue reminding KCCA to approve the \nsubmitted adjusted plans. \n \nI advised the Accounting Officer to liaise with the contractors to scale up project works \nto ensure that the project is completed within reasonable timelines. I advised the \nAccounting Officer to follow up with the Physical Planning Authority/KCCA to ensure that \nthe building plans are approved as soon as possible. \n \n3.14. SCIENCE, TECHNOLOGY AND INNOVATION SECTOR \n \n3.14.1. \nClosure of the Ministry of Science, Technology and Innovation", "metadata": {"page": 97, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "The GoU established the Ministry of Science Technology and Innovation in 2016, and it \nstarted its operations in 2017/2018 as Vote 023, with a mandate to oversee the overall \ncontribution of the Science Technology and Innovation Sector towards attaining key \nobjectives focused on mainstreaming Science, Technology, and Innovation in the \ndevelopment process of Uganda.", "metadata": {"page": 97, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "87 \n \n \nAt the time of the transfer, the Ministry had the following subventions and independent \nprojects in pursuit of its objectives; \n \ni) \nUganda National Council for Science and Technology (UNCST); \nii) \nThe Presidential Initiative on Banana Industrial Development (PIBID); and \niii) \nKiira Motors Corporation (KMC). \niv) \nUganda Industrial Research Institute (Vote 110), an agency under the ST&I Sector \nand self-accounting. \nv) \nThe commercialisation of sericulture Technologies and Innovations(TRIDI) \nvi) \nPresidential Scientific initiative on Epidemics (PRESIDE) is an umbrella \norganisation for multiple scientific research organisations. \n \nThe Ministry was later abolished effective 1st July 2021, and its operations were \ntransferred to the President's Office. The Ministry's closure may slow down the", "metadata": {"page": 98, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "developments in the above entities during re-organisation. \n \nI noted that there were also no transition plans for the merger and continuity of \noperations of the subventions. Lack of transition arrangements could delay research \nprojects, loss of assets and critical human resources. \n \n3.14.2. \nUn-deployed Staff upon the abolition of the Ministry \nThe Ministry had a structure with a total staff establishment of 154 positions, of which \n136 positions had been filled and had a recruitment plan for another fifteen (15) staff of \ndifferent cadres. \n \nAs a result of the closure of the Ministry, the staff were rendered redundant and had not \nreceived their emoluments by the end of November 2021. In addition, 48 common cadre \nstaff had been transferred back to the Ministry of Public Service, as the technical and \nsupport staff employed by the Ministry await their fate. \n \nI noted that some staff were living under uncertainty, which may lead to redundancy", "metadata": {"page": 98, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "escalation and high costs to the Government. \n \nManagement explained that the Ministry of Public Service is reviewing the structure, and \nonce it is approved, a validation exercise will be undertaken to determine those who fit \nin. Those that will not be absorbed will be handled in line with the public service \nstanding orders. \n \n3.14.3. \nProgress on the COVID-19 Vaccine, Diagnostics and Treatment Projects \nThe Ministry of Science, Technology and Innovation (MOSTI) was appropriated \nsupplementary funding of UGX.31.033Bn, which was meant to support 23 selected \nprojects of scientists and innovators engaged in CoVID-I9 scientific research, including \nthe procurement of specialised machinery and equipment, development of vaccines, \ndrug diagnostics and other operational costs. The funds were divided into the purchase \nof Equipment (UGX.15.787Bn) and Operational Costs (UGX.15.787Bn). \nAs of 30th June 2021, the Ministry had received 86.5% of the Operational funds and \n100% of the Equipment Funds.", "metadata": {"page": 98, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "88 \n \n \nOf the 23 projects, five were for Diagnostics, four for the development of Vaccines, nine \nfor the development of treatments, and five for material support to existing projects. \nOf the 23 projects initially selected and funded, 19 progressed while others stalled. Their \nprogress was slowed down by the merger of the Ministry without transition plans and \nsubsequent delays in funding. \n \nThese delays affect the overall intention of the emergency initiative of averting the \nadverse effects of COVID-19 on the population. \n \n \n3.15. TRADE SECTOR \n \n3.15.1. \nUnder Absorption of funds by UDC \nUDC received UGX 263.47Bn, from the Government of Uganda, of which only UGX \n119.29Bn, (45.3%), was spent by the entity during the year resulting in an unspent", "metadata": {"page": 99, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "balance of UGX. 144.18Bn, (46%) \n \nOut of the total funds received, UGX.126.2Bn was for Covid-19related interventions, and \nonly UGX.55.9Bn (44.3%) was spent. \n \nThis may be partly attributed to the release of funds before completion of feasibility \nstudies, the release of funds tagged to specific projects in disregard of UDC project \nappraisals and the un-timely release of funds, among others. \n \nUnder-absorption undermines the intention of Government funding for import \nsubstitution and export promotion strategies spearheaded by the Corporation and \naverting the effects of Covid-19. \n \n3.15.2. \nExtent of Implementation of Planned Development Projects by UDC: \nI noted that out of the 17 development project activities planned to be implemented \nover the year, 15 were funded under the Covid-19 supplementary budget. Two", "metadata": {"page": 99, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "development projects, namely: Soroti Fruit Factory and Feasibility studies & Business \nPlans, were funded under the normal budget. \n \nA review of the extent of implementation revealed that; \n \n\uf0b7 \nOnly (3) three development projects were fully implemented, i.e., \nshareholder's loan to Atiak Sugar Factory; Acquisition of shares in Mabale \nTea Factory; and Acquisition of shares in Bukoona Agro Processors Limited. \n\uf0b7 \nFive (5) development projects were partially implemented. \n\uf0b7 \nEleven (11) projects were not implemented at all. \nThis was attributed to the conditional release of funds tied to specified development \nprojects and inadequate institutional capacity to appraise and implement investment \nprojects. \n \nUnder-absorption undermines government effort in attaining its goals.", "metadata": {"page": 99, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "89 \n \n3.15.3. \nUNBS Inadequate Capacity in Testing and Enforcing Commodity Standards \n \n Section 3(1) of the UNBS Act spells out the functions of the Bureau which, among \nothers, include providing for the testing of locally manufactured or imported \ncommodities with a view to determining whether the commodities conform to the \nstandard specification as well as making arrangements or provide facilities for the \nexamination, testing or analysis of commodities and any material or substance from \nwhich or with which and how they may be manufactured, produced, processed or \ntreated. However, I noted; \n \n\uf0b7 \nUNBS released 633 consignments due to the absence of standards to test these \ncommodities for conformity. \n \n\uf0b7 \nThe Bureau also released 366 consignments without testing product standards due \nto lack of capacity, which may lead to sub-standard products on the market. \n \n\uf0b7", "metadata": {"page": 100, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nThe Bureau had staff presence at only 27 out of the 170 border entry points. This \nwas attributed to understaffing at the Bureau. \n \nAlthough management explained that it had since developed the capacity to test the \nmajority of commodities but it lacked some product standards. \n \n \n3.16. TOURISM SECTOR \n \n3.16.1. \nDecreasing Tourism Revenue due to Covid-19 \n \nOver the last two years, the tourism sector has been greatly hit by the unprecedented \neffects of the Covid-19 pandemic that has greatly affected all sectors of the economy, \nincluding the tourism sector. \n \nI observed a significant fall in tourism revenue collections for all of the entities in the \nSector whose revenue is entirely dependent on tourism. This was attributed to the \ncountrywide restrictions on the movement of persons, including tourists, due to the", "metadata": {"page": 100, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Covid-19 lockdown. As a result, tourist visitor numbers reduced from 255,711 to \n103,812 (40.6%) \n \nThe reduction in revenue collection has been significant and has directly affected the \nimplementation of the planned activities across the Sector. \n \n3.16.2. \nInvasive species removal in the Wildlife Conservation Areas in Uganda \n \nI noted that most of the Protected Areas in Uganda are currently undergoing ecosystem \nchanges as rangeland infestation by invasive and exotic plant species limits the grazing \nland. These plant species include; Dichrostachys cinerea, Lantana camara, Parthenium \nhysterophorus, Opuntia vulgaris, Imperata cylindrica, Maeruade cumbens, Caesalepina \ndecaputala, Acacia hockii, Tecoma Stan, Senna siamea and Thevetia peruviana.", "metadata": {"page": 100, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "90 \n \nDuring my inspection of Queen Elizabeth, Lake Mburo Park, Murchison Falls, and Kidepo \nValley National Parks, I noted that these plant species continue to cover large expanses \nof grazing land despite the Uganda Wildlife Authority's effort to eliminate them. This is \nreducing the populations of specific grazers such as hippos, buffalos, zebras, topis, and \nUganda kobs. \n \nThis is attributed to climate change and inadequate funding to remove invasive species \nfrom the national parks. \n \n3.16.3. \nMerger of entities within the Sector \n \nOn 22nd February 2021, Cabinet under minute No. 43 (CT 2021), a decision to merge \nUganda Wildlife Authority with Uganda Wildlife Conservation Education Centre was \nundertaken. However, there were no transitional arrangements and plans to facilitate a \nsmooth merger by the time of the audit.", "metadata": {"page": 101, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Delays in mergers create uncertainties among staff, reduce sector performance and \nsubsequently lead to misappropriation of entity assets by disgruntled staff. \n \n3.17. HIGHLIGHTS FROM THE AUDIT OF LOWER LOCAL GOVERNMENTS FOR THE PERIOD \n2019/2020 \n \nI undertook an audit of a total of 2,048 Lower Local Governments (Sub-counties, Town \nCouncils and Divisions), covering two financial years 2018/2019 (762 LLGs) and \n2019/2020 (1,286 LLGs). \nI noted the following cross cutting issues; \n \n3.17.1. \nUnder staffing \n \nI noted that 217 LLGs in FY 2018/2019 and 175 in FY 2019/2020 had significant staffing \ngaps averaging 48% and 60% shortages respectively. Details are in the table 26 below. \n \nTable 26: Understaffing in Lower Local Government \nFinancial Year \nApproved", "metadata": {"page": 101, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Financial Year \nApproved \npositions \nFilled up \nShortage \nPercentage shortage \n2018/2019 \n3,847 \n2,008 \n1,842 \n48% \n2019/2020 \n6,797 \n2,713 \n3,823 \n60% \n Source: OAG analysis \nUnderstaffing overstretches the available staff beyond their capacity, creates jobrelated \nstress to the fewer staff and negatively affects the level of public service delivery to the \ncommunity. \n \nThe Accounting Officers explained that staffing at LLG level is a responsibility of the \nrespective Districts and Municipal Councils. \n \nI advised the Accounting Officers to follow up on the matter with the relevant \nauthorities and ensure that most of the vacancies are filled.", "metadata": {"page": 101, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "91 \n \n3.17.2. \nBudget implementation in sample LLGs for FY 2018/2019 and 2019/2020 \n \nI sampled 627 LLGs for FY 2018/19 and 250 LLGs for FY 2019/20 to assess the \nimplementation of the budget and noted the following significant audit findings: \n \n3.17.2.1. Performance of Central Government Grants \n \nThe LLGs sampled budgeted to receive UGX.146,160,919,043 for FY 2018/2019 and \n2019/2010 \n(revised) \nas \nCentral \nGovernment \nGrants). \nHowever, \nUGX.134,095,135,622(92%) \nwas \nreceived \nresulting \ninto \na \nshortfall \nof", "metadata": {"page": 102, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "shortfall \nof \nUGX.12,065,783,421(8%) majorly attributed to budget cuts as shown in the table \nbelow. \n \nThis affected service delivery in Lower Local Governments \n \nTable 27: Performance of Central Government Grant \nFinancial Year \nRevised Budget \nActual Receipts \nVariance \nPercentage \nPerfomance \n2018/2019 \n92,214,094,491 \n87,717,635,886 \n4,496,458,605 \n95% \n2019/2020 \n53,946,824,552 \n46,377,499,736 \n7,569,324,816 \n86% \nSource: Financial Statements \nI advised the Accounting Officer to always engage the PS/ST through their respective", "metadata": {"page": 102, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "higher local governments to ensure that all revenue is availed to the entity as planned. \n \n3.17.2.2. Local Revenue Performance \n \nThe LLGs sampled had approved budgeted total local revenue for the 2 financial years \namounting to UGX.91,399,324,016 (revised) out of which UGX.74,615,525,633(82%) \nwas collected resulting into a shortfall of UGX.16,783,798,383(18%), as shown in the \ntable below: \n \nTable 28: Performance of Local Revenue \n \n Source: OAG analysis \nThe Accounting Officers mainly attributed the underperformance of local revenue in the \nfinancial year 2019/2020 to the Covid19 lock down which affected several of their major \nsources of local revenue. \n \nI advised the Accounting Officer to always ensure that local revenue is collected as \nbudgeted. \nbudgeted. \n \n \n \nFinancial Year \nRevised Budget \nActual Receipts \nVariance \nPercentage \nPerfomance \n2018/2019 \n68,424,052,397 \n57,321,631,217 \n11,102,421,180 \n84% \n2019/2020 \n22,975,271,619 \n17,293,894,416 \n5,681,377,203 \n75%", "metadata": {"page": 102, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "92 \n \n3.17.3. \nQuality of Financial Statements \n \nIn my previous year\u2019s reports, I noted that there was still a problem with the \npresentation of financial statements in the Lower Local Governments. In the financial \nyears under review, I noted that there was an improvement in the quality of financial \nstatements with only 37 (6%) LLGs out of 627 and 22 (9%) out of 250 LLGs in financial \nyears 2018/2019 and 2019/2020 respectively having qualified audit opinions. \n \nI however noted the following matters; UGX 202, 282,811 was improperly accounted for \nin FY 2018/2019 and UGX 80,259,257 remained Un accounted for in FY 2019/2020. \n \nThe most common shortcomings were; Inconsistences in the amounts in the financial \nstatement, Errors in Financial Statements, Incomplete financial statements and notes,", "metadata": {"page": 103, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "wrong presentation of figures in financial statement, failure to prepare financial \nstatements and unsupported figures in the financial statements. \n \nPreparation of financial statements is a stewardship role in which accountability for \napplication of resources entrusted to Accounting Officers is reported to the stakeholders. \nFailure to present financial statements properly impairs interpretation and analysis of \nentity performances. \n \nThe Accounting Officers attributed this to staff changes that were made in the middle of \nthe financial year, difficulty in acquiring books of accounts from district stores and lack \nof training. I advised the Accounting Officers to liaise with responsible authorities to \nensure that the staffing gaps are addressed and the necessary trainings undertaken. \n \n3.17.4. \nLand Management in Local Governments \n \nI noted that 331 (53%) Lower Local Governments out of the 627 in FY 2018/19 and 188 \n(75%) Lower Local Governments out of 250 in FY 2019/20 sampled respectively had", "metadata": {"page": 103, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "land management challenges such as: \n \n\uf0b7 \n41 LLGs in FY 2018/19 and 24 LLGs in FY 2019/20 respectively lacked land titles, \nincluding where their headquarters are located. \n\uf0b7 \n41 LLGs in FY 2018/19 and 24 LLGs in FY 2019/20 respectively lacked Area Lands \nCommittees or the committees were non-functional. \n\uf0b7 \nIn the circumstances, there is risk of persons trespassing, disputes and litigation. \nMajority of Accounting Officers explained that it was the responsibility of the Districts or \nMunicipal Councils to obtain these land titles. A number of other Accounting Officers \ncited insufficient funding as a cause for failure to have fully functional land committees \n \nGovernment should consider taking deliberate steps to fund the survey and titling of all \ngovernment land at the Local Governments. I also advised the Accounting Officers to \nconstitute the Area land Committees.", "metadata": {"page": 103, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "93 \n \n3.17.5. \nLack of Urban Physical Planning Committees \n \nI noted that 32 Town Councils in the two financial years had no Urban Physical Planning \nCommittees in place or the Committees were not fully functional. \n \nConsequently, physical developments undertaken within the physical planning areas \nmay not have been well determined and managed by the respective LLGs. This was \nmainly attributed to lack of sufficient funds to operationalize the physical planning \ncommittees. \n \nI advised Government to engage the relevant stakeholders to nominate members and \nensure that the committees are fully instituted and are functional.", "metadata": {"page": 104, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "94 \n \nPART 4: INFORMATION SYSTEMS, ENGINEERING, VALUE FOR MONEY AND SPECIAL \nAUDITS \n \nDuring the financial year 2020/2021, I undertook three Information Systems audits, \nthree Engineering audits covering 90 projects, eight Value for money audits. In addition, \nI undertook special and forensic audits which are reported on separately. \n \nBelow is a summary of the key findings I noted in each category, the details of which \nare included in individual reports issued separately. \n \n4.0. \nHIGHLIGHTS FROM THE ENGINEERING AUDITS \n \n4.1. \nValue for Money Audit and Assessment of Urban Infrastructure projects \nimplemented by 22 Municipal Councils under the USMID-AF Program for projects \nstarted in the Financial year 2018/2019 \nFor the financial year 2020/21 a total of 14 infrastructure projects procured in \n2018/2019 under the World Bank funded Uganda Support to Municipal \nInfrastructure", "metadata": {"page": 105, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Infrastructure \nDevelopment-Additional \nFinancing \n(USMID-AF) \nProgram \nimplemented by 22 Municipal Councils namely Arua, Gulu, Kitgum, Lira, Apac, \nSoroti, Moroto, Mbale, Tororo, Busia, Kamuli, Jinja, Lugazi, Entebbe, Hoima, \nMubende, Fort Portal, Kasese, Mbarara, Ntungamo, Kabale and Masaka were \naudited and assessment of the performance of these projects across the 22 \nmunicipalities carried out including a selected sample of non-USMID i.e. Uganda \nRoad Fund (URF) funded projects, and Schools Facilities Grant (SFG)/Transitional \nDevelopment Grant (TDG)/Discretional Development Equalisation Grant (DDEG) \nfunded projects implemented in the participating municipalities. \n \nThe total contract value of the projects assessed was UGX 192,742,021,942.", "metadata": {"page": 105, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Below is a summary of the Key findings I noted, the details of which are included \nin the consolidated audit report for the 22 Municipal Councils and the 22 \nIndividual reports issued separately; \n \n\uf0b7 \nOverpayments and irregular expenditure on USMID and Non USMID projects \nwere noted during the audit. This comprised of overpayments of UGX. \n214,862,488 and UGX 459,323,494 on USMID projects and Non-USMID \nprojects respectively. The audit assessment also revealed various \nquestionable expenditures, irregular payments, and potential financial losses \nattributable \nto \ndifferent \ncontractual \nirregularities \ntotaling \nto \nUGX. \n817,571,137 on the USMID funded projects in Arua, Jinja and Mbale \nMunicipalities. \n \n\uf0b7", "metadata": {"page": 105, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nAll the municipalities had completed their projects by the time of the audit \nand the entire infrastructure in the municipalities was in use with the \nexception of Entebbe whose project was phased. Although the projects were \nfinally completed there were delays in completion of the projects within the \nstipulated contract timelines. \n \n\uf0b7 \nDuring physical inspection of the municipalities of Mbale, Moroto and Lira, \nmajor defects were noted such as missing draining/emptying pipe on the", "metadata": {"page": 105, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "95 \n \nsoaking tank (leads to poor drainage), Clogged manholes and missing \nmanhole covers, potholes on roads and poor drainage leading to ponding. \n \n\uf0b7 \nAll the participating municipalities implemented environmental protection \nmeasures with the exception of Arua Municipality. Further, all the \nparticipating municipalities implemented social/safety measures except Soroti \nand Tororo Municipalities. \n \n\uf0b7 \nInadequate allocation of funds in the budget for operation and maintenance \nof USMID infrastructure was noted in the municipalities except for the \nmunicipalities of Lira, Hoima, Fort Portal, Masaka and Gulu. \n \nI advised the Accounting officers of the Municipal Councils to ensure that; \n\uf0b7 \nAll amounts overpaid are recovered by the respective municipalities. \n\uf0b7 \nContractors have updated work programs and delays in delivery of projects \nwithin stipulated contract timelines should be penalized by invoking \nliquidated damages clauses", "metadata": {"page": 106, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "liquidated damages clauses \n\uf0b7 \nInspections are carried out during the DLP as some defects can only surface \nwhile the structure is in use and report on the progress of the structure \nduring the period and have all the identified major defects rectified. \n\uf0b7 \nAll municipalities should plan, budget and implement operation and \nmaintenance activities to avoid early deterioration of the facilities. \nConclusion \nOwing to the challenges faced by the Municipal Councils during the delivery of USMID-\nAF Urban infrastructure as highlighted in this report, audit observed that these \nchallenges notable improvements have been noted in planning, cost control \nenforcement of internal controls for certification, supervision and monitoring, and \ngeneral contract management for the USMID Infrastructure projects, however these \ngains have not been translated to the Non USMID projects as URF, SFG,DDEG \naccordingly the Town Clerks must ensure that Non USMID projects are equally \neffectively monitored and supervised to ensure delivery of the works within the planned", "metadata": {"page": 106, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "cost, quality and time requirements \n \n4.2. \nValue for Money audit and assessment of Infrastructure projects implemented by \n60 Local Governments under the UgIFT Program for Construction of Seed \nSchools and Health Facilities in the Education and Health Sectors \nFor the financial year 2020/21 a total of 109 infrastructure projects implemented \nby 60 Local Governments involving the construction of seed schools and Health \ncentre IIs under the World Bank funded Uganda Inter-Governmental Fiscal \nTransfer (UgIFT) Programme for Results was audited and assessment of the \nperformance of these projects across the 60 Local Governments municipalities \ncarried out for the Education Sector and Health Sector.", "metadata": {"page": 106, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "96 \n \nUnder the UgIFT programme, the World Bank committed the total of US$500m \nover the period FY 2018/19 to FY 2023/24 to support decentralized services in \nEducation, Health, Water and Environment, and Agriculture (micro-scale \nirrigation) as well as support I \nnterventions in Refugee host communities, \nWith this financial support, Government committed to construct Seed Secondary \nSchools and Upgrade Health Centre IIs to IIIs in Sub-Counties, extend rural \nwater to underserved communities including the newly constructed seed \nSecondary Schools and Health Centre IIIs, and also provide Small Scale \nIrrigation equipment to farmers to enhance their productivity. \n \nThe scope of the audit and assessment covered 53 seed secondary schools\u2019 \nconstruction projects with an overall total contract sum of UGX 111,860,803,846 \nand 57 health centre construction projects with an overall total contract sum of", "metadata": {"page": 107, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "UGX 33,743,610,012. \n \nBelow is a summary of the Key findings noted, the details of which are included \nin the consolidated audit report for the 60 Local Governments and the 60 \nIndividual reports issued separately; \n \n\uf0b7 \nIn assessing the adequacy of the design process for the buildings, evidence \nof needs assessment, presence of geotechnical investigations report, design \nreport, drawings and specifications were considered as key requirements, it \nwas observed that detailed design reports were not availed to all local \ngovernments by the Ministry of Education. \n \n\uf0b7 \nOverpayments and irregular expenditure amounting to UGX 3,153,351,606 \nwas noted during payment for construction works in some of the seed \nschools. Furthermore, UGX 3,588,640,939 were made without providing the \nbreakdown of work items being certified. \n \n\uf0b7", "metadata": {"page": 107, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nDuring physical inspection of the Seed school infrastructure works, the \nparticipating LGs with exception of 3 LGs had defects such as honeycombing \nin concrete, absence of anti-sag rods, cracks in the ceilings, absence of \nexpansion joint in the ICT blocks, exposed steel reinforcement, inadequate \npainting in the roof structures. \n \nThe observed defects, if not addressed, will result in increased maintenance \ncosts for the local governments. \n \n\uf0b7 \nIn assessing the adequacy of the design process for the buildings, evidence \nof needs assessment, presence of geotechnical investigations report, design \nreport, drawings and specifications were considered as key requirements. It \nwas observed that 39 local governments did not carry out needs assessment, \ngeotechnical investigations, produce design reports in addition work \nspecifications were also omitted. \n \n\uf0b7 \nOverpayments and irregular expenditure totalling to UGX 920,905,442 were", "metadata": {"page": 107, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "noted during payment for construction works of the Health Centre IIs in LGs \nand municipalities. Furthermore, UGX 209,175,652 were made without \nproviding the breakdown of work items being certified.", "metadata": {"page": 107, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "97 \n \n\uf0b7 \nReview of the status of the contractors\u2019 equipment mobilization under \nconstruction of HCs revealed that out of the 56 local governments, only the 4 \nlocal governments had evidence that the contractors mobilized all required \nequipment. Further, only 13 local governments had evidence that the \ncontractors mobilized all required equipment under the construction of seed \nschools. \n \n\uf0b7 \nReview of land ownership revealed that 7 local governments did not avail any \nevidence of acquisition or ownership of the land on which the Seed schools \nand health centres were constructed. \n \nI advised the Accounting officers of the Local Governments to ensure that; \n \n\uf0b7 \nPrior to implementation of any infrastructural projects of similar nature; all \ndue \ndesign \nprocedures \nsuch \nas \nneeds \nassessment, \ngeotechnical", "metadata": {"page": 108, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "geotechnical \ninvestigations are undertaken and documented by the local governments to \nfacilitate adequate designs. \n \n\uf0b7 \nOverpayments in respect of quantities certified in excess of the actual works \nexecuted worth UGX. 3,153,351,606 in the Education Sector and UGX. \n920,905,442 in the Health Sector should be recovered. In addition, the \ntechnical officers should review the other items that were not part of the \naudit sample and have additional checks in the certification process to \nminimise the errors in quantification. \n \n\uf0b7 \nInvestigate the basis of payment of the questionable amounts totalling to \nUGX.3,588,640,939 in the Education Sector and UGX.209,175,652 in the \nHealth Sector and take appropriate action. \n \n\uf0b7 \nEnforce the requirement for contractors to fully mobilize adequate equipment", "metadata": {"page": 108, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "to undertake the works. In addition, any demobilization during contract \nimplementation should be with the written approval of the project \nmanager/supervisor. \n \n\uf0b7 \nAll the defects/omissions observed should be corrected. Furthermore, \nadditional inspection of the contractor\u2019s works should be undertaken and any \ndefects identified remedied immediately. \n \n\uf0b7 \nFast track the process of obtaining formal ownership of the land on which \nthe infrastructure is being constructed. Going forward, Accounting Officers \nshould ensure that projects of similar nature are constructed on land that is \nformally owned by the respective local government. \n \nConclusion \nOwing to the challenges faced by the various local governments during the delivery of \nUgIFT infrastructure projects in the education and health sectors as highlighted in this \nreport, audit observed that these challenges are a result of gaps/weaknesses in the \nplanning and costing of works, enforcement of internal controls for certification, \nsupervision and monitoring, and general contract management.", "metadata": {"page": 108, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "98 \n \nAccordingly, the relevant stakeholders should enhance the capacities of the local \ngovernments through involvement of local governments in the planning for future \nprojects of similar nature, organizing tailor made trainings for technical staff, review of \nthe staff structure in the engineering department and ensure that it is adequate and \nappropriately staffed. The relevant ministries should develop standardized guidelines for \ncosting of civil works and strengthen the monitoring and supervision role in local \ngovernments. \n \n4.3. \nEngineering Audit of Selected Road and Building Projects in Kampala Capital City \nAuthority (KCCA) \nFor the financial year 2020/21, a total of 24 public works projects (Road \nupgrade/rehabilitation, signalization of road junctions, and building projects) with \na total contract sum/value of UGX.333.72tn were implemented by KCCA. A \nsample of Eight (8) projects (road, signalization and building projects) with a", "metadata": {"page": 109, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "contract value of UGX. 276.92tn. were selected for audit. This sample represents \n82.98% of the value of the 24 projects. \n \nEight (8) of the KCCA projects were sampled for audit comprising of three (3) \nroad projects funded by the World Bank under the Second Kampala Institutional \nand Infrastructure Development Project (KIIDP 2) and five (5) projects funded \nby the Government of Uganda (GoU). The five projects funded by GoU \ncomprised of three (3) road upgrading/ rehabilitation projects and two (2) \nbuilding projects, the following key observations were noted on these projects \ni. \nDelayed relocation of existing services \n \nDelayed relocation of existing utilities for water and power for the three KIIDP \nroad projects of Kulambira ring road 4.82Km, spur to Najjera road 0.7Km,", "metadata": {"page": 109, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Nakawa Ntinda road 2.8Km, Kabuusu \u2013Bunamwaya \u2013 Lweza road 8.06Km and \nLukuli road 7.71Km resulted in significant delays in execution of road works by \nup to 17 months. The Accounting Officer explained that public utility services by \nStatutory Undertakers (UMEME, NITA, UG POLICE, NWSC and UTL) in particular \nKampala City are so complex that even the owners/operators do not know the \nexact location of their infrastructure, In addition, obtaining of shut-down permits \nfrom UMEME was always delayed as UMEME had to fit request within their \nplanned shutdown programme. \n \nI advised the Accounting Officer to ensure that relocation of services is \nimplemented in time, and works executed as per the approved work programme. \n \nii. \nUnjustified and overpayments amounting to UGX 1.355Bn", "metadata": {"page": 109, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "It was noted that on some of the projects, payments equivalent to UGX.1.355Bn \nhad been made for quantities of works in excess of those executed, not backed \nup by the necessary payment supporting documentation or contrary to the \ncontract conditions as follows;", "metadata": {"page": 109, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "99 \n \n \nTable 29: Unjustified Payments and Overpayments \nS/No \nProject Name \nPayment (UGX) \nRemarks \n1 \nUpgrading to Paved Standards of \nKulambiro Ring Road (4.82km) \nincluding Spur to Najjera Road \n(0.7km), \nReconstruction \nand \nDualling of Nakawa Ntinda Road \n(2.8km) (Including Signalization of \nFour Junctions) and Reconstruction \nand Widening of Acacia Avenue \n(1.45km) (including Signalization of \nSix Junctions) \u2013 Lot 1 \n80,849,062 \nPayment \nof \nUnverified \nNITA Relocations \n503,716,979.38 \nUnaccounted for Payments", "metadata": {"page": 110, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Unaccounted for Payments \nof \nfor \nrelocation \nof \nservices \n215,992,827.81 \nPayments for quantities of \nworks in excess of those \nexecuted \n2 \nUpgrading to paved standard of \nKabuusu \u2013Bunamwaya \u2013 Lweza \nroad (8.06Km) \u2013 Lot 2 \n56,860,150 \nIrregular \nPayment \nfor \nCosts due to Extension of \nTime \n348,214,079.83 \nPayments for quantities of \nworks in excess of those \nexecuted \n3 \nUpgrading of Cecila Road (1.3Km) \n14,074,910 \nPayments for quantities of \nworks in excess of those \nexecuted \n4 \nConstruction of Kitintale Market \u2013", "metadata": {"page": 110, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Construction of Kitintale Market \u2013 \nPhase I \n119,717,000 \nPayments for quantities of \nsteel \nreinforcement \nin \nexcess of those in the bar \nbending schedule \n5 \nReconstruction of Ntinda II Road \n16,213,200 \nPayments for quantities of \nworks in excess of those \nexecuted \nTOTAL \n1,355,638,209 \n \n \n \nI advised the Accounting Officer to ensure that the amounts certified and paid in \nexcess \nof \nthe \nquantities \nexecuted, \nunaccounted \nfor \npayments \nand \nirregular/unjustified payments are recovered from the contractors prior to \nconcluding the contracts. \n \niii. \nDelayed Land Acquisitions for the KIIDP Road projects", "metadata": {"page": 110, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "There was delayed acquisition of land by the Authority for the two KIIDP road \nprojects of Kulambiro ring road 4.82 Km, Spur to Najjera road 0.7 Km, Nakawa \nNtinda road 2.8 km and Acacia Avenue 1.45 Km under Lot 1, and Kabuusu \u2013\nBunamwaya \u2013 Lweza road 8.06Km for Lot 2 resulting in delays of more than 12 \nmonths significantly affected the progress and timely completion of the works on \nthese projects. The Accounting Officer explained that it has always been the plan \nof KCCA to expedite land expropriation in time and issue commencement orders \nfor sites that are free of any encumbrances, however the delayed land \nacquisition was caused by absentee land lords, and unwillingness by some PAPs \nto accept the Chief government Valuers value of compensation. \n \nI advised the Accounting Officer that for future projects, the entity should ensure \nthat contractors are issued with commencement orders when the site for \nconstruction is fully accessible.", "metadata": {"page": 110, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "100 \n \n \niv. \nFailure to undertake Ground Investigations for Building Projects \nDetailed ground investigations to inform the foundation designs were not \nundertaken during the design of Kitintatle Market and the Maternity ward at \nKiswa Health Center. Such omissions can lead to inadequate designs which may \ncompromise the safety of the buildings during usage. The Accounting Officer \nexplained that for the Kitintale Market and Kiswa Health Center Projects, no \nfunds were availed for geotechnical investigations \n \nI advised the Accounting Officer to ensure that detailed ground investigations \nare undertaken to ensure that the constructed buildings can safely be put to \nusage when completed and going forward, the Accounting Officer should ensure \nthat for projects of similar nature, detailed ground investigations are undertaken \nduring the design phase. \n \n5.0. \nINFORMATION SYSTEMS AUDITS", "metadata": {"page": 111, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "INFORMATION SYSTEMS AUDITS \n \nIn accordance with Sections 13 and 22 of the National Audit Act (NAA) 2008, I \nam mandated to audit all the government investments and carry out special \naudit engagements that include information technology (IT) Audits. Accordingly, \nI planned and executed my audits following ISSAI 200: Fundamental Principles \nof Public-Sector Auditing and INTOSAI 5100 guidance. \n \nI conducted three (2) audits namely; Information Systems Audit of Civil Aviation \nAuthority; the Academic Information Management System (AIMS) and Uganda \nNational Land Information System (Ug-NLIS). Below are redacted version of my \nkey findings. \n \n5.1. \nInformation Systems Audit of Civil Aviation Authority \n \ni. \nDisintegrated Systems/Manual Interfaces \nThe entity has twelve independent IT systems which are not integrated to share \ninformation. As such, information sharing was purely manual despite being", "metadata": {"page": 111, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "explicitly provided for in the respective system requirements and contracts. This \nincreases the risk of human errors and abuse during data extraction and re-\nentry. This was attributed to lack of integrated planning for IT interventions. \n \nFailure to automate sharing of information between systems compromises the \ndata integrity, creates opportunities for fraudulent falsification of records. In \naddition, maintaining multiple systems increases maintenance costs and \nincreases man hours because of manual extraction and entry of data which \nwould otherwise be used for other productive activities. \n \nI advised management to comprehensively plan for IT projects. In the \nmeantime, management may explore interfacing the systems as they plan to \nimplement an Enterprise \nResource \nSystem \nto \nensure \nthat \nvarious \ndepartments share data seamlessly.", "metadata": {"page": 111, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "101 \n \n \nii. \nLack of Integrated Revenue Systems at CAA \nDespite a big shift to digitalisation and the Authority spending UGX.1.13Bn in \nacquiring a Passenger Tracking System with the aim of ascertaining the number \nand identity of passengers on a given flight, two years later, the system was not \nbeing used consistently and by-passed from time to time. As a result, the \nAuthority has no independent mechanism to ascertain the number of passengers \non each flight, but entirely depends on manual submissions from airlines to bill \nfor revenues. There is a risk of under declaration of passengers which can lead \nto revenue loss. In addition, the system produces incomplete information. \n \nUnder the circumstances, there is a risk that the amounts disclosed in the \nfinancial statements were not accurate and the system does not provide reliable \ninformation. \n \nI advised management to explore possibilities of enforcing the use of the", "metadata": {"page": 112, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "system. \niii. \nFailure to capitalise Information System Intangible Assets in the Financial \nStatements \nDespite spending UGX.4.723Bn on system development, Civil Aviation Authority \n(CAA) has not capitalised intangible assets. These include licenses, software, \noperating systems, subscriptions. \n \nAs a result, the assets value is understated in financial statements. \n \nManagement explained that they have engaged a consultant to carry out \nverification of all UCAA Assets; ICT Assets inclusive. \n \nI advised management to ensure that such assets are properly recorded and \ndisclosed in the financial statements. \niv. \nFailure to implement Cargo Handling IT Systems \nOne of the major revenue streams of CAA is cargo handling fees levied on the \nairline operators. Although CAA contracted two companies through concession \nagreements where 5% is charged on cash exports, 10% on general handling and", "metadata": {"page": 112, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "10% on standard charge related to aircraft and passenger handling. The \nAuthority does not have an independent system to track and reconcile the \nrevenue collected before charging the percentage as per the concession \nagreements. The information is not shared in real-time due to lack of appropriate \nIT systems and they rely on information provided by the contractors. \n \nThis situation poses a risk of loss of revenue as a result of under-declaration of \nincome from cargo handling operations by the handling companies. \n \nManagement explained that they have initiated procurement for extension of the \nPoint of Sale (POS) system to new concessionaires. The Specifications include \nprovision for interface with the existing Cargo Management systems.", "metadata": {"page": 112, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "102 \n \n \nI advised management to expedite the procurement and installation of the \nsystem. Meanwhile, CAA should engage the contractors to gain read-only access \nto the systems and extract accurate information for monitoring and \nreconciliation. \nv. \nTenants/Concessionaires without Point of Sale (POS) machines \nThe Point of Sale (POS) system is being used to track sales of airport tenants to \ninform the rental charges, which are a percentage of the sales. However, it was \nnoted that after ten years of implementation, only 7 out of the 18 concessioners \nhave POS terminals installed which creates a risk of revenue loss. I also noted \nthat even for those using the POS system, were using them selectively, hence \nunder-declaration of sales. \n \nIn addition, there is a risk that tax-free goods are being sold to non-passengers", "metadata": {"page": 113, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "compounding revenue losses. This results into loss of revenue both to CAA and \nURA. \n \nManagement explained that they had 14 concessionaire locations at the \ndeployment of the POS system in 2013. In addition, CAA will deploy a new \nsystem to cover the new locations and the procurement has been initiated. \n \nI advised management to fast-track the procurement and deployment of the new \nsystem. \n \n5.2. \nInformation Systems Audit of the Academic Management Information System \n(AIMS) \n \ni. \nContested Ownership of the AIMS (Source Code) \nThe Ministry of ICT and National Guidance through its rationalization policy of \npromoting locally developed information systems agreed with Kyambogo \nUniversity (KYU) to enhance its E-Kampus for sharing with other Public \nUniversities and Self Accounting Tertiary Institutions (PUSATIs). Subsequently \nthe user requirements were reviewed, functionalities improved and the system", "metadata": {"page": 113, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "was rebranded to AIMS. \n \nA review of the framework contract between The Ministry of ICT and National \nGuidance and the supplier (Zeenode Uganda Limited) states that; the purchaser \n(MoICT&NG) acknowledges and agrees that the supplier and/or its licensors own \nall intellectual property rights in the services and the documentation. It was \nbrought to my attention during my review that there is a disagreement of \nownership of the source code and the parties are in court. \n \nI await the outcome of the court decision.", "metadata": {"page": 113, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "103 \n \nii. \nUnclear Ownership of the system \nThe Ministry of ICT & NG undertook the enhancement and deployment at the \nPublic Universities and Self Accounting Tertiary Institutions (PUSATIs) of the E-\nKampus into the AIMS under the innovation fund at a cost of UGX 2.1 Bn. \nSubsequently, the Ministry of ICT & NG procured technical support and \nmaintenance services of the same system. \n \nHowever, I noted that the \u201cvendor\u201d (Zeenode) was charging UGX. 30,000 per \nstudent for use of the system. \n \nThis casts doubt on the ownership of the system. I further noted that the system \nwas switched off for two weeks December 2020 over non-payment of service \nand maintenance fees. \n \nAs earlier noted, the case is before Court. I await Court\u2019s decision. \niii. \nNo right to audit provided in the contract", "metadata": {"page": 114, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "No right to audit provided in the contract \nThe contract between Ministry of ICT & NG and the supplier did not include any \n\"right to audit by third party\" clause. As a result, during the execution of the \naudit, I was denied access to key components of the Information system and I \ncannot provide assurance on their adequacy. \n \nManagement explained that it will consider including the clause on Right to Audit \nsoftware, systems, data, in Contracts in collaboration with MoFPED and PPDA. \n \nI advised management to engage all stakeholders to make a provision for \nproviding audit assurance in the contract. \niv. \nFailure to update the Source Code held in Escrow \nThe contract between Ministry of ICT & NG and the supplier provides that any \nadditions and inventions added by the purchaser and those that are unique to \nthe purchaser will be documented and copyrighted to the purchaser upon \ninstallation and development.", "metadata": {"page": 114, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "installation and development. \n \nI noted, however, that even though the AIMS has been in continuous \ndevelopment for the last three years, there is no evidence that the original \nsource code held in Escrow has been updated and neither was copyrighting of all \nchanges to the AIMS after the contract signing. \n \nManagement acknowledged the omission and stated that the source code was \nnot periodically updated. The Ministry committed to ensure continuous periodic \nupdates to all source code held in Escrow. \n \nI advised management to keep the code updated in real time. \nv. \nData Ownership of the AIMS \nA review of the AIMS operations revealed that there is no clear data owner of \nthe universities' data. The system vendor;", "metadata": {"page": 114, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "104 \n \n\uf0b7 \nHas unlimited access to the application that is used to process the PUSATI \ninformation. \n\uf0b7 \nHas control over the AIMS database and operating system environment \n\uf0b7 \nHas the only Administrator privileges on the AIMS for all the PUSATIs. \n\uf0b7 \nIssues access rights to the AIMS system users. \n \nThis presents a conflict of interest as well as data integrity risk when the system \ndeveloper has continuous access to the production environment. \n \nManagement explained that Clause 19 (ii) of the Framework contract specifies \nthat each PUSATI shall own its individual data and processes that they run on \nthe System. The Ministry shall ensure that remedial action is taken as per \nrecommendation as part of the new Policy under development. \n \nI advised management to consider remedial action that would limit the risk of \nunlimited access and manipulation to both privileged and critical information of \nthe PUSATIs", "metadata": {"page": 115, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "the PUSATIs \nvi. \nNo data protection after contract termination \nI noted that in the framework contract signed between the MoICT & NG and the \nsupplier, there is no provision for how the PUSATI data is to be handled at the \nend of the contract. Without such a provision, the PUSATIs have no way to \nrequire the third party to return institutional data or otherwise dispose of such \ndata in a way that does not jeopardise the information security and reputation of \nthe institutions or their affiliated institutions. \n \nManagement committed to address the matter as part of the Policy on System \ndevelopment for Government. \n \nI advised management to devise means of ensuring that the data will be safely \nreturned or destroyed in order to avoid the associated risks. \nvii. \nDeviation from the Contract terms by ZUL \nAlthough the Framework Contract between MoICT and the suppler stipulates", "metadata": {"page": 115, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "that the supplier shall ensure uninterrupted and error-free services, on 12th \nDecember 2020, the supplier without consequence, denied services to all \nPUSATIs for a period of two weeks citing alleged non-payment by MoICT & NG. \nThis led to loss of revenue, critical time and information loss thus delaying \ndecision making. \n \nManagement promised to engage the vendor and ensure future contracts guard \nagainst such occurrences. \n \nI advised management to engage the Attorney General and devise means of \nprotecting data as they wait for the disposal of the court case.", "metadata": {"page": 115, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "105 \n \nviii. \nSustainability of the AIMS \nThe maintenance contract with the supplier expired in December 2020 and \nMoICT&NG had to pay the vendor an additional UGX.1Bn to guarantee continued \nsupport and maintenance until the 30th June 2021. It was proposed that beyond \nthat period, PUSATIs would meet their own costs at UGX.30,000 per student per \nyear, but there was no agreement or MOU with the system provider to ensure \ncompliance by the PUSATIs. There is a risk of non-continued use of the system \ndespite such investments by government. \n \nI advised management to ensure that all foreseeable costs of the system are \nanalysed and evaluate sustainability of the project. In future, GoU should aim at \noutright acquisition or ownership and development of any public information \nsystem to avoid escalation of costs and ensure sustainability. \nix. \nLack of Change Management Procedures", "metadata": {"page": 116, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Lack of Change Management Procedures \nAccording to Section A.12.1.2 of the ISO/IEC 27001:2013, Changes to the \norganisation, business processes, information processing, facilities and systems \nthat affect information security shall be controlled. I established that no change \nmanagement policies were in place at either MoICT&NG or the universities in \nregard to the AIMS and as such, Change Requests from users and other changes \ndeemed fit by the supplier were implemented on the live environment without \nany documented authorisation from either MoICT or PUSATIs management. \n \nI advised management to integrate change management policies/procedures in \nproject design and implementation. \n \n5.3. \nInformation Systems Audit of Uganda National Land Information System (Ug-\nNLIS) \n \nThe Government of Uganda sought assistance from the World Bank to make \nreforms in the Lands Sector through the Competitiveness and Enterprise \nDevelopment Project (CEDP). The Modernizing of the land administration activity", "metadata": {"page": 116, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "was implemented through a project named the \"Design, Supply, Installation and \nImplementation of the National Land Information System Infrastructure \n(DeSINLISI) by the Ministry of Lands Housing and Urban Development (MLHUD). \nThe main objective of the DeSINLISI) project was to establish a National Land \nInformation System Infrastructure for the entire country to foster efficiency and \ntransparency in land transactions processing as well as uphold the land tenure \nsecurity. \n \nI undertook an audit of the system with the aim of assessing it effectiveness in \nsupporting the land registration process to achieve intended objectives. \n \nBelow are the key findings: \ni. \nLand Registration Process \nI reviewed the land registration process and noted the following gaps that have \nled to poor service delivery:", "metadata": {"page": 116, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "106 \n \n\uf0b7 \nDespite investing substantial amounts of money in the land system, the land \nregistration processes are largely still manual and no transactions take place \nwithout a manual file. \n \n\uf0b7 \nThe system encourages rampant use of agents; sometimes, titles change \nhands four times before getting to the registrar. \n \n\uf0b7 \nCurrently, changes on land titles are effected using manual typewriters, \nwhich are prone to error and waste time due to a requirement of scanning \nout to capture the manual changes. \n \n\uf0b7 \nThere is no mechanism of communication to clients whose titles are ready; I \nnoted that there are a number of duplicate copies of titles that have not \nbeen picked by clients, some as far back as 1997. \n \n\uf0b7 \nThe system does not provide for functionality to perform electronic printing \nand sealing of land titles as a security feature in the certificate of titles.", "metadata": {"page": 117, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "The above gaps have led to unjustified delays in processing of land transactions, \nfrustrating the public. \n \nI advised management to automate the land registration process; enhance \nsystem functionality to enable registered proprietors to create accounts to \neliminate land agents (brokers) and an SMS alert system for the public to keep \ntrack of submitted applications. \nii. \nSubdivision of plots \nThe workflow process is so lengthy as it has seventeen levels of approval with \nduplicated roles. District physical planners as key technical players were left out \nof the system workflow process. The system workflow process is not flexible to \nallow queries at different approval levels without cancellation of the transaction. \nIn addition, the applications involving surveys are submitted physically at the \nZonal office, despite the investment in the surveyor's portal to aid the process. \n \nThe public frustration has led to unethical ways of quickening the process, thus \ncreating fertile ground for corruption.", "metadata": {"page": 117, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "creating fertile ground for corruption. \n \nManagement explained that it will enhance the land system functionality and \nworkflow process to improve service delivery. \n \nI advised management to consider a review of the subdivision and workflow \nprocess to create efficiency. \n \niii. \nFailure to Operationalise the Approved IT Staff Structure \nI noted that Ug-NLIS structure has not been operationalized with all senior \npositions still vacant despite the criticality of system to the country. Notably, \nsystem is largely supported by temporary short term contract staff who have not \nbeen recruited into main stream public service but continue to perform critical \nsystem roles such as database administration.", "metadata": {"page": 117, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "107 \n \nThe use of temporary staff to oversee and support critical IT system exposes the \nentire investment to high risk. Management explained that they have made \nsubmission to the Public Service Commission (PSC). \n \nI advised management to follow up with the PSC to expedite the process. \niv. \nFailure by Uganda Lands Commission (ULC) to Utilise the UG-NLIS \nI reviewed the Land information system and noted that Uganda Land \nCommission (ULC) does not utilize the Ug-NLIS to process land transactions \n(leases of public land). I noted that lease transactions were manually processed \noutside the system. \n \nIt should be noted that ULC was involved in the development of system and user \nrequirements and acceptance of Ug-NLIS as a solution that meets the \nCommission\u2019s business needs. Further, I noted that ULC acquired another system", "metadata": {"page": 118, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "which duplicates the functionality of the Ug-NLIS at a cost of UGX.500 million. \n \nThe investment by ULC in a duplicate land registration system is deemed a \nwasteful expenditure. Management informed me that the Commission has \ncommenced processing of public leases using the Ug-NLIS. \n \nI have advised Management to ensure that all public leases processed outside \nthe Ug-NLIS should be captured into the system as a backlog. \nv. \nOverlapping Land Parcels \nThere are a number of parcels in the system whose geo-referenced coordinates \nwere erroneously captured which created distortions in the cadastral data of the \nUg-NLIS. \n \nThe errors manifest where parcels on the system stretch beyond the boundaries \nand overreach neighbouring parcels such as road reserves, protected areas and \nneighbouring plots. Where overlaps exist, the system may create delays in \nprocessing of deed plans or titles.", "metadata": {"page": 118, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Management informed me that it has prioritised cadastral data cleaning. \n \nI advised Management to institute mechanisms to ensure quality control of \nsurvey data from surveyors and input validation.", "metadata": {"page": 118, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "108 \n \n6.0. \nSPECIAL VERIFICATIONS \n \nIn accordance with Sections 13 and 22 of the National Audit Act, 2008, I undertook two \nspecial verifications in the telecom sector, and below is a summary of my findings; \n \n6.1. \nVerification of Assets and Liabilities for Uganda Telecom (In-Administration) \n \nIn accordance with Section 13(2) and 22 of the National Audit Act 2008, I undertook a \nspecial audit, for verification of liabilities of UTL comprising preferred taxes, UCC liability, \nUCECPS, administration costs, creditor payments and TDB Loan and assets on a request \nby the Minister of Finance, Planning and Economic Development. \n \nBelow are the findings of the verification; \ni. \nVerification of Trade Development Bank Loan \nOut of the claimed USD.16.51 Million by Trade Development Bank, the verified and", "metadata": {"page": 119, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "approved outstanding loan amounted to USD.9.31 Million The balance of USD.7.24 \nMillion which relates to default interest charged during the period from 22nd May 2017 to \n31st May 2021 when UTL was under administration, could not be verified, as it appears \nto be contrary to the Ugandan Insolvency Act 2011 and the attendant regulations, which \nprovide that interest payable in respect of any period after the commencement of a \nliquidation and/or insolvency shall be suspended. \n \nGovernment was advised to seek the opinion of the Attorney General, before the \namount relating to default interest is allowed. \nii. \nVerification of Other Creditors \nI verified claims from the creditors as at 30th June 2021 totalling to UGX. 302.74Bn as \nsummarised in the table 30 below; \n \nTable 30: Creditors Verified \nSN \nItem \nAmount - UGX \n1", "metadata": {"page": 119, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "1 \nConsolidated Tax Liability (PAYE, Local Exercise, \nWithholding Tax, Value Added Tax) \n9,786,780,845 \n2 \nUCC liability \n62,469,304,749 \n3 \nUCECPS liability \n2,353,904,321 \n4 \nVerified Creditors Liability (Pre & Post Administration \nperiod) \n63,079,412,417 \n5 \nUn remitted NSSF Deductions \n15, 462, 575,874 \n6 \nUTL Pension Liability for former UPTC employees \n165,048,246,917 \n \nTotal \n302,737,649,249 \n \nI noted that creditors worth UGX. 28.74Bn were not verified due to insufficient \ninformation and creditors totalling to 336.3Bn were subject to court proceedings and \ntherefore not verified.", "metadata": {"page": 119, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "109 \n \n \nThe Government should explore ways of settling the above liabilities to avoid litigation \nand associated costs. \niii. \nVerification of Non-Current Assets \nThe current estimated value of UTL Non-Current Assets is UGX.184Bn which was \ncomputed based on independent valuers reports of M/s Bageine and Company \n(September 2017) and Elite Realty Limited (June 2018). Adjustments were made for \ndepreciation and disposals since the valuation date to arrive at the current estimated \nvalue. There is need for re-valuation by the Chief Government Valuer to ascertain the \ncurrent market values. \n \nIn addition, UTL has a 9.13% shareholding in a company (i.e. WIOCC) which was valued \nbetween USD.146.2 \u2013 181.2 million, by an independent valuer commissioned by WIOCC \nin December 2020. The Administrator further informed me of an ongoing offer by an", "metadata": {"page": 120, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "equity investor into WIOCC, who has valued the company at USD.171 million by the time \nof my verification. This would imply that the UTL shareholding of 9.13% in WIOCC, \ncould be valued at USD.15.61 Million (i.e. approximately UGX.55.45Bn exchanged at \nUGX.3,551.71 for one USD), as of 30th June, 2021. This would significantly increase the \nvalue of total assets of UTL. \n \nThere are disputes on ownership of 11 Properties worth UGX.57.5Bn between Uganda \nTelecom Limited (UTL), POSTA (U) Ltd, Uganda Broadcasting Corporation (UBC), and \nother entities. \n \nGovernment should consider resolving the disputes before liquidating the company. \n \niv. \nVerification of Receivables \nReceivables totalling to UGX.113.65Bn were presented for verification. Due to time", "metadata": {"page": 120, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "limitations and sensitivity of the matter, I could not verify receivables, however the \nprocess of verification had commenced under the administrator. I await the outcome of \nthe verification exercise. \n \n6.2. \nVerification of Terminal Benefits/Pension of former Employees UPTC in Respect of Civil \nAppeal No. 230 Of 2013 And No.10 Of 2014 Of The Court Of Appeal Of Uganda \n \nI undertook a country wide verification exercise of 1,837 former employees/ claimants of \nthe defunct Uganda Posts and Telecommunications Corporation (UPTC) in accordance \nwith the orders of the Court of Appeal in respect to Civil Appeal No. 230 of 2013 and No. \n10 of 2014. \n \nBelow are my findings; \n \nThe claims presented for verification in the actuarial report as at 30th June 2020 and are \nsummarized in the Table 31 below;", "metadata": {"page": 120, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "110 \n \nTable 31: Summary of claims presented for Verification \nS/N \nEntity \nTotal No. of Claimants \nClaim Amounts as at 30th June \n2020 - UGX \n1 \nUTL \n1,065 \n200,444,057,531 \n2 \nUPL \n348 \n35,249,791,537 \n3 \nPBUL \n8 \n135,780,242 \n4 \nUCC \n11 \n691,361,961 \n5 \nUPTC \n71 \n9,638,276,645 \n \nTotal \n1,503 \n246,159,267,916", "metadata": {"page": 121, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "I verified the claims presented and summarized the findings per entity as presented \nbelow; \ni. \nVerified Claims \u2013 UGX.213,026,888,318 \nThe total verified amount of UGX.213,026,888,318 is payable to 1,254 claimants under \nUTL (in-Administration), Uganda Posts Limited (UPL) and the defunct UPTC as \nsummarised in the Table 35 below; \n \nTable 32: Summary of Verified claims payable \nS/N \nEntity \nTotal No. of \nClaimants \nTotal claimants \nverified \nTotal Amount Verified Payable as at \nJune 2021- UGX \n1 \nUTL \n1,065 \n882 \n165,048,246,917 \n2 \nUPL \n348", "metadata": {"page": 121, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "UPL \n348 \n337 \n43,233,738,001 \n3 \nUPTC \n71 \n35 \n4,744,903,400 \n \nTotal \n1,484 \n1,254 \n213,026,888,318 \n \nI advised the Government to make the necessary budgetary provisions to cater for \nsettlement of the above claims. \nii. \nFully Settled Claims \nAlthough the Actuarial report from the Privatisation Unit under the Ministry of Finance, \nPlanning and Economic Development (MoFPED) submitted included claims from former \nemployees of Uganda Communications Commission (UCC) and Post Bank Uganda \nLimited (PBUL) respectively, from the verification carried out I verified that these entities \nhad duly settled the claims of 21 beneficiaries totalling to UGX.1,124,966,993.", "metadata": {"page": 121, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "This verification gave assurance that the Government had fulfilled its obligation to the \nrespective beneficiaries, thereby eliminating any risk of possible double payment of \nclaims in this regard.", "metadata": {"page": 121, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "111 \n \niii. \nConflict between the legal representative and the beneficiaries \nDuring the audit, I obtained information relating to the fact that a section of the \nclaimants had a disagreement with their legal advocate, allegedly from failure to remit \nfunds received from UTL and UPL to all the claimants. UTL in Administration and UPL \ntransferred a total of UGX.4,184,469,245 to the lawyer as part payment of their \nobligations. \n \nI advised the Ministry of Finance, Planning and Economic Development (MoFPED) and \nthe Attorney General to take note of the conflict and ensure that the dispute is resolved \nbefore funds are disbursed to benefit the rightful claimants. \n \n \n \n7.0. \nHIGHLIGHTS OF VALUE FOR MONEY AUDIT RESULTS \n \n7.1. \nValue for Money Audit on the Management of Government Investments by Uganda", "metadata": {"page": 122, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Development Corporation \n \nThe Government of Uganda has committed over UGX.223.9Bn in various investment \nprojects under Uganda Development Corporation (UDC) over the years 2016/17 to \n2019/20. These investments which are highlighted as government priorities from \nNational Development Plan (NDP I), through to NDP III, are meant to promote social \nand economic development and contribute to poverty eradication by increasing national \nand regional economic growth and development. \n \nThe objective of the value for money audit was to assess the effectiveness of UDC \nprocesses in the management of Government Investments through planning, \nimplementation and monitoring of such investments. \n \nI sampled eight (8) investment projects worth UGX. 191.5 Bn as of 30th June, 2020 \nincluding; Soroti Fruit factory, Kigezi Highland Tea factory, Kayonza Tea factory, Mabale \ntea factory, Luwero Fruits factory, Moroto Cement factory, Isingiro Fruit factory and", "metadata": {"page": 122, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Atiak Sugar Factory. \n \nThe following were the key findings; \ni. \nProject Planning \nI noted that only one out of the eight selected projects was dully subjected to the \nplanning process representing 12.5%. The objective of the planning process is to justify \ninvestment of government funds in identified projects. As a result of ineffective planning, \ntwo projects failed to take off while there was a change of scope, cost and \nimplementation strategy for the other five investment projects.", "metadata": {"page": 122, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "112 \n \nUDC management should ensure that all Investment projects follow the due planning \nand identification processes as documented in the investment guide. This will increase \non the success rate for those projects that are properly planned, identified and \nappraised. \nii. \nProject Implementation \nAudit noted that UDC had not been able to have five investment projects operating at \nfull capacity as expected representing 37.5% of the eight sampled projects. The projects \nfaced different challenges as summarised in the table 33 below; \n \n \n \n \n \n \n \nTable 33: Challenges of Project Implementation \nS/N \nProject Name \nAmount Invested as at 30th June \n2020 (UGX in Bn) \nChallenge \n01 \nSoroti Fruit factory \n23.76 \nAdditional \nmachinery \nwas", "metadata": {"page": 123, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "machinery \nwas \nprocured to cater for the user \nneeds not identified at planning \nstage \n02 \nKigezi Highland \n14.03 \nAdditional funds to support raw \nmaterial \nuptake \nleading \nto \nproject cost-overruns \n03 \nMabale Tea Factory \n16.6 \nChange of user needs during \nimplementation \n04 \nKayonza tea factory \n14.06 \nProject \nperformance \nis \nsatisfactory \nhowever, \nthe \nobjective \nof \nthe \ninvestment \ndecision \non \nthe \npart \nof \nGovernment \nis \nyet \nto \nbe \nrealised.", "metadata": {"page": 123, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "be \nrealised. \n05 \nAtiak Sugar factory \n88.8 \nInadequate inputs to match the \nfactory capacity \nTotal \n157.25 \n \n \nManagement should improve implementation processes by ensuring that guidelines are \nin place, and that sufficient staffing is deployed. Additionally, the institution should lobby \nfor a \u2018Fund-based\u2019 financing approach of the institution, instead of \u2018projectised\u2019 financing \nwhere funds are sent to UDC already tagged to an investment project to be funded. This \nwill allow flexibility during implementation of investment projects.", "metadata": {"page": 123, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "113 \n \niii. \nMonitoring and Evaluation \nI noted that the oversight role in all the eight sampled investment projects had not been \nfully undertaken and thus, the projects were not operating at full capacity as expected. \nThis was greatly attributed to weak governance structures and non-existing/inadequate \nBoards in those investment projects supported as partnership ventures. This ultimately \ncaused delays in decision making, financing and signing of contractual agreements. \n \nUDC management should improve the monitoring and oversight role in the government \ninvestments by ensuring that the monitoring frameworks are established and followed-\nup at both management and Board levels. \nOverall Conclusion \n \nGovernment has invested over UGX.200Bn in various sectors of the economy with the \nobjective of boosting value addition mainly in the agricultural sector. There has been a \nnoted increase in both tea and sugar production. It should however be noted that the \nlevels of outputs and other expected benefits are not commensurate with the", "metadata": {"page": 124, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "investments due to challenges of budgeting and planning, lack of feasibility studies and \ncriteria for allocation of funding, inadequate contractual arrangements to clarify roles \nand targets and limited oversight and monitoring of investments. There is a risk of \nfailure to achieve the intended objectives. There is still potential for improvement by \nensuring UDC staffing levels are increased to undertake the above-mentioned tasks. It is \nalso necessary to enhance autonomy for UDC by providing capitalisation instead of \nproject related financing, so that management is flexible in allocation and re-allocate \nresources where they are urgently required at the time. \n \n7.2. \nA Value for Money Draft Audit Report on The Afforestation and Restoration of Selected \nCentral Forest Reserves (CFRs) by the National Forestry Authority (NFA) \n \nThe National Forestry Authority (NFA) was established under section 52 of the National \nForestry and Tree Planting Act, 2003 (NFTPA). The objective of NFA is to manage the", "metadata": {"page": 124, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Central Forest reserves, expand and promote partnership arrangements, ensure \nequitable supply of forest and non-forest products and services and enhance \norganisational sustainability. \n \nThe country\u2019s forest cover is managed by different stakeholders comprising; Uganda \nWildlife Authority, National Forestry Authority and Privately owned forest plantations. \n \nThe forest cover loss over the years from 1990 to the last biomass study in 2017 is \nestimated at 58.9%. Similarly, the CFR forest cover under NFA dropped from 62.5% \n(791,240ha) of the NFA forest cover to 45.8% (579,257ha) in the same period. This \ntrend was contrary to Sustainable Development Goal 15 which required governments to \nensure the restoration of forests and increase forest cover in line with obligations under \ninternational agreements by 2020. \n \nThe overall objective of this audit was to evaluate the effectiveness of the measures put \nin place by the NFA towards the restoration and establishment of new plantations in the \ncentral forest reserves, between the period of 2016 and 2020.", "metadata": {"page": 124, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "114 \n \nThe following are the key findings from the study; \ni. \nRestoration and establishment of new plantations \nAudit noted that management achieved 11,173ha (78%) of their planned outputs \n(14,277ha) for both restoration planting and establishing new tree plantations, which \ncontributed to only 0.88% of the national forest cover (1,265,742ha) over the four-year \nperiod. \n \nConsidering the current rate of forest restoration, it will require 75.8 years for NFA to \nrestore the national forest cover to 62.5% of was it was in the year 1990.Similarly, even \nif NFA was to meet its targets of 14,277ha in the four-year period, it would still take \n59.3 years to restore the CFRs to the 1990 forest cover in Uganda. \n \nThe non-achievement of targets to restore forest cover was caused by inadequacies in", "metadata": {"page": 125, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "the planning and budgeting process; land management; monitoring and inspections; and \ncollaboration with institutional stakeholders. \nii. \nCoordination and planning in the Forest Sector \nI noted weaknesses in coordination in the regulation of activities/projects under a single \nmandate that impact of national forest cover. There are inconsistencies and \ninadequacies in mainstreaming initiatives to increase forest cover across government \nand private sector which has led to limited national forest coverage of 12.4% and NFA \nforest cover of 45.8%. \niii. \nMonitoring and Evaluation, and inspections. \nIt was observed that out of the expected 16 monitoring reports in the four-year period \nending 30th June, 2020, only 4 (25%) were prepared in the entire four-year period. In \naddition, NFA budgeted to receive UGX.320m for monitoring in the four years under", "metadata": {"page": 125, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "review, however, it received UGX.91.8million (29%) of which UGX 88.8million was spent. \nThere was limited uptake of monitoring and evaluation recommendations which led to \nled to destruction of the newly restored forests by encroachers. \niv. \nNFA collaborations \nIt was established that seventeen (17) MOUs were signed with different government \nagencies, out of the planned twenty (20), representing an 85% performance. Although \nthese collaborations contributed to the restoration and establishment of new plantations, \nthere were inadequacies in providing the planned quantity of seedings. \n \nIn addition, twenty (20) Collaborative Forest management (CFM) agreements were \nsigned with forest edge communities, out of the planned twenty-eight (28) over the last \nthree years. There were inadequacies of; staffing, limited sensitization and coordination \nbetween the CFM stakeholders. As a result, communities were sighted to be involved in \nencroachment of newly restored forests in some instances.", "metadata": {"page": 125, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "115 \n \n \nKey Recommendations \n \nThe National Forestry Authority should; \n \n\uf0b7 \nEngage all relevant stakeholders to ensure sustainable coordination and comprehensive \nplanning initiatives to enhance mainstreaming efforts to increase forest cover in the \ncountry. \n \n\uf0b7 \nImprove on its collaboration and sensitization efforts with all stakeholders to protect all \nforest land and undertake a process of titling all gazetted forest reserves and national \nforests to curb illegal encroachment. The National Land Information System (NLIS) \nshould include control measures to prevent illegal titling of gazetted forest land. \n \n\uf0b7 \nContinue engaging the relevant Government authorities to fast-track the revision and \napproval of the NFA organizational structure, to enhance the institutional capacity to \nmanage national forests. \n \nOverall Conclusion \nWhereas the National Forestry Authority has undertaken specific interventions aimed at", "metadata": {"page": 126, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "increasing forest cover through restoration and establishing new plantations; inadequate \ncoordination, planning, monitoring, collaboration with communities have led to a limited \nincrease in the NFA forest cover over the years. In some instances, increased \nencroachment, land encumbrances through issuance of title over the NFA land, limited \ncommunity sensitization and involvement, inadequate prioritization of restoration and \nnew forest establishment have contributed to the dismal 45.8% forest cover under NFA \nand national cover of 12.3%. \n \nIt is hoped that despite the increased population that is exerting pressure on the rather \nlimited national forest cover, the lessons learnt and recommendations will be applied to \nfulfil the objectives of the NFA, forest sector and country. \n \n7.3. \nA Value for Money Audit on the Implementation of the Uganda Women Entrepreneurship \nProgramme by the Ministry of Gender, Labour and Social Development (MGLSD)", "metadata": {"page": 126, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "I undertook a Value for Money to assess the extent to which the Programme achieved \nits intended objectives. \n \nThe Uganda Women Entrepreneurship Programme (UWEP) is an initiative of the \nGovernment of Uganda that is aimed at empowering women to improve their income \nlevels and their contribution to economic development; by improving their access to \nfinancial services and equipping them with skills for enterprise growth, value addition \nand marketing of their products and services. \n \nThe Programme has disbursed UGX.107 Bn to 11,256 women groups, benefitting over \n135,000 women, over the five-year period (2015/16 to 2019/20) in the first Phase. The", "metadata": {"page": 126, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "116 \n \nprogramme through its revolving fund recovered over UGX.16 billion from the loans \ndisbursed to the women which funds were available for financing new women groups. \n \nDespite the achievements registered, the audit identified the following areas that need \nto be addressed by the Ministry; \n \n\uf0b7 \nI noted that 4,185 women had benefited from the Programme under the capacity \nand skills development component, which translates into 42% of the desired target \n(10,000 women) according to the UWEP Programme document. \n \n\uf0b7 \nThere were delays in disbursement of funds to the women groups. In some cases, \nthe delays were more than 12 months from time of approval of the applications to \nreceipt of the funds which affected the performance and success of enterprises, \nspecifically those in the agricultural sector, which depend on the rainy seasons for \nplanting. The delays impact on agricultural yields. \n \n\uf0b7", "metadata": {"page": 127, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nI noted budget cuts for women groups at the MGLSD level (TSU) with some groups \nreceiving less than budgeted funds to implement their enterprises; however, at the \nLocal Government level, explanations for the budget revisions were not effectively \ncommunicated to the groups; which hindered implementation of activities of women \ngroups. \n \n\uf0b7 \nFunds to the tune of UGX 16 Bn remained idle on the recovery account in Bank of \nUganda over the five years. Only 6% (UGX 963 million) of the amount had been re-\ndisbursed; which denied the other qualifying women groups access to funds. \n \n\uf0b7 \nThe MGLSD through the UWEP Technical Support Unit did not effectively plan for \nand coordinate implementation of the activities to facilitate women groups to access \nmarkets for their products. In addition, access to appropriate technologies were not \ncatered for in the project design and budgets for the entire 5-year period. The", "metadata": {"page": 127, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "intended objective of the funds disbursed may not be fully realised. \n \n\uf0b7 \nThere was underfunding of monitoring and supervision activities at the Local \nGovernment level which affected the frequency of monitoring of beneficiary women \ngroups. The programme gaps at enterprise level could not be adequately identified \nand corrected on time. \n \n\uf0b7 \nAt the National level, the Technical Support Unit (TSU) undertook only 13 (43%) of \nthe planned 30 monitoring and supervision visits to the regions throughout the five-\nyear period. This resulted in delayed identification of performance gaps and timely \nremedial actions. \n \nKey Recommendations \n \n \nI advised management to do the following; \n \n\uf0b7 \nPrioritize the capacity and skills development component of the Programme through \nincreased sensitization to ensure that women groups receive the required skills to", "metadata": {"page": 127, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "117 \n \neffectively implement selected enterprises. In addition, consider reviewing the \nfunding programme requirements to make training a prerequisite for all groups \nventuring into value addition enterprises for the first time. \n \n\uf0b7 \nThe programme implementation guidelines should be reviewed to reduce on the \ntime taken between approval and disbursement to improve timely access to funding \nto the groups. All budgetary cuts should be communicated to beneficiary women \ngroups in time. \n \n\uf0b7 \nThe MGLSD should ensure that the funds recovered are revolved in a timely manner \nto benefit the intended women groups, and ensure sustainability of the Programme. \n \n\uf0b7 \nThe MGLSD should liaise with MoFPED to mobilise funds to cater for value addition, \nand monitoring and evaluation activities within the programme. \n \nOverall Concluion", "metadata": {"page": 128, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Overall Concluion \nUWEP exceeded its target in attracting 100,000 women beneficiaries over the five year \nperiod and managed to put in place implementation guidelines and training of \nbeneficiaries and implementing partners. \n \nHowever, utilization of funds from the programme\u2019 revolving fund and equipping \nbeneficiaries with value addition and skills for enterprise growth was found to be \nunsatisfactory and merits Management\u2019s urgent intervention. \n \nThe overall prospects of the programme are promising if the challenges of rationalization \nof the programme funding; delayed funding of beneficiaries; limited focus on skills and \ncapacity development; inadequate coordination of partnering institutions; are addressed. \n \n \n7.4. \nA Value for Money Audit Report on the Management of Research Grants by Public \nUniversities in Uganda \n \nResearch is any type of systematic investigation, testing and evaluation whose objective", "metadata": {"page": 128, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "is to discover new facts or information and increase the stock of knowledge. It generates \nnew knowledge, which is critical for sustained economic growth and social \ntransformation of Nations. \n \nAccording to Section 24(2)(a) of the Universities and other Tertiary Institutions Act, \n2001 (as amended), a Public University has a function of provision of higher education, \npromotion of research and advancement of learning. Research is a costly activity and \noften relies on grants to supplement the existing financial resources. Research grants \nenable the research community within the Universities to thrive in knowledge sharing \nand to use research towards solving community-based problems. \n \nOwing to the different challenges in the management of research grants at public \nuniversities which is characterised by poor rankings of the universities at continental and \nworld level, and less innovation products from the public universities, the Office of the", "metadata": {"page": 128, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "118 \n \nAuditor General undertook an independent assessment of the management of research \ngrants by Public Universities. \n \nThe overall audit objective was to assess the adequacy of management of research \ngrants in achieving grant management objectives in Public Universities in Uganda. The \naudit adopted a case study approach whereby 4 out of the 9 Public Universities in \nUganda were considered as cases for the study, these included; Makerere University, \nMbarara University of Science and Technology (MUST), Kyambogo University and \nBusitema University. Below is a summary of key findings and recommendations, the \ndetails are found in the subsequent part of the report; \n \nKey Findings \ni. \nInstitutional framework for coordination of research grants activities \n\uf0b7 \nIt was noted that all the Public Universities through their respective Councils determine \nthe research policies, research management structures and research direction of the \nrespective Universities. There is no framework to ensure collective planning,", "metadata": {"page": 129, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "coordination and follow-up of research efforts for the different Public Universities to \nensure equitable allocation of resources, efficient utilization of academic staff, and that \nresearch results contribute to National development. \n \n\uf0b7 \nIt was also established that key research and grant management policies/guidelines \nwere missing at a number of Universities to guide on the efficient and effective \nmanagement of research activities. Only MUST and Busitema had a grants management \npolicy/manual to guide their grants management processes. Furthermore, the country \nlacks national regulations and guidelines for research and innovation activities including; \nsourcing of external grants, development and uptake of technologies and, management \nand commercialization of intellectual properties. \n\uf0b7 \nFurthermore, the research committees for MUK, MUST and Kyambogo which are \nresponsible for strategic planning and research direction focused more on graduate \nstudents\u2019 research with limited emphasis on university grants research. \n \n\uf0b7", "metadata": {"page": 129, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nIt was also noted that out of the 4 Universities, only MUST had a grants office under the \nDRGT with dedicated staff to support grant activities. It was further noted that Busitema \nand Kyambogo did not have grants administrators at college/faculty level while at MUK \nand MUST only the college of Health Sciences and the faculty of medicine respectively \nhad grant administrators to undertake the tasks. \n \n\uf0b7 \nThe most funded area of the research agenda for MUK was health and health systems \nwhich accounted for over 50% of the funding with other areas of research getting \nsmaller contributions. In addition, no operational processes were in place to ensure that \nexternal grants sourced by MUK & KYU staff are in line with the university\u2019s research \nagenda. MUST and Busitema University did not have an approved research agenda at \nUniversity level. Furthermore, the country does not have a clear research agenda to \nguide planning, implementation and policy making.", "metadata": {"page": 129, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "119 \n \nii. \nResource Mobilization Initiatives \n \n\uf0b7 \nIt was found that MUK, KYU and Busitema have established processes to centrally award \ncompetitive research grants from internally generated funds or Government support as \ninitiatives to promote research and innovation in public universities. These processes \nhave in turn enabled staff to seek external grants through proposal writing. The \nprocesses however have challenges. MUST on the other hand has not established such \nprocesses. \n \n\uf0b7 \nOut of the 4 universities, only MUK had a consolidated Research Innovation Fund (RIF) \nfor research funds from government. Through continuous lobbying by MUK, government \nallocated UGX.30bn to the fund; the other universities have not explored this initiative. \nAll the universities have not raised any resources internally into a separate fund for \nresearch. This was attributed to government policy of remitting all internally generated \nrevenue into the consolidated fund and therefore appropriating funds through the", "metadata": {"page": 130, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "annual budget process. \n \n\uf0b7 \nIt was noted that for all the 348 grants sampled from the four (4) universities, \noverheads/indirect costs were not deducted from the funds spent contrary to percentage \nrequirements in the research and grant policies of the universities. \n \niii. \nMonitoring and Evaluation \n\uf0b7 \nIn all the four Universities, M&E was not carried out by the university management on \nexternal research grants for the period 2017/18-2019/20. 193 out of 348 (55.5%) \nsampled external grants were however monitored by the donors. For internal grants, \nonly 222 grants under MUK RIF were monitored. \n \n\uf0b7 \nIt was noted that even where M&E was undertaken by donors, recommendations were \nnot fully implemented by the Universities. \n\uf0b7 \n450 out of 512 Government funded Grants from MUK, Kyambogo and Busitema,", "metadata": {"page": 130, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "representing 87.9% were not completed in time during the period under review. \nSimilarly, 218 out of 350 (62.3%) Donor funded Grants from the 4 universities were not \ncompleted in time. \nKey Recommendations \n\uf0b7 \nThe Ministry of Education and Sports should institute a committee with full \nrepresentation from all public universities and supported with relevant legislation to \ncollectively undertake strategic planning for university research in line with the National \nDevelopment Plan and ensure adequate coordination between universities, follow-up of \nresearch activities, equitable allocation of resources and efficient utilization of academic \nstaff on research. \n \n\uf0b7 \nThe NCHE should introduce a standard legal framework for evaluation of management \nof research activities in the universities. The Universities should then take the \nresponsibility for mainstreaming the instituted framework into their management \nsystem. Regular audits of planned university research activities vis a vis expected \noutputs should be undertaken.", "metadata": {"page": 130, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "120 \n \n \n\uf0b7 \nThe public universities should prioritize development of key research and grant \nmanagement policies to guide the related processes. Benchmarking with leading \nuniversities in the region and at the continental level can be used to ease the process \nand ensure up-to-date policies with the changing environment. \n \n\uf0b7 \nGovernment and related institutions should fast track the development of policies, \nstrategies and guidelines to promote research, technology development and, uptake and \nmanagement & commercialization of Intellectual Properties (IPs) as provided for in the \nNDP III. \n \n\uf0b7 \nThe public universities should have different Senate/Management committees for the \ndifferent roles of governing graduate programs and students on one hand and research \nand innovations activities including grants management on the other hand. This would \nensure adequate focus on strategic planning for research, management and follow-up of \nresearch activities at the university for timely achievement of university research", "metadata": {"page": 131, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "objectives. \n \n\uf0b7 \nThe public universities should engage with MoPS, MoFPED and MoES for support to fill \nthe key staffing gaps for grants management and ensure that the necessary key roles \nsuch as grants administration and M&E are undertaken. \n \n\uf0b7 \nGovernment through the Ministry of Finance, Planning and Economic Development \nshould prioritise funding/grants for research in public universities to enable focus on \nresearch which is in line with university research agendas and national priorities. \n \n\uf0b7 \nGovernment and related institutions should fast track the development of the national \nresearch agenda to guide planning, implementation and policy making as provided for in \nthe NDP III. \n\uf0b7 \nThe Universities\u2019 management should institute Committees to follow up and review the \nimplementation of recommendations on project or grant monitoring and Evaluation for \nimprovement in the management of research grants in the University. \n \nOverall Audit Conclusion", "metadata": {"page": 131, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Overall Audit Conclusion \n \nDespite the challenges noted in the management of Research Grants, Public Universities \nhave, achieved some notable research outputs through research grants with outstanding \ninnovations which included; production of an electric automobile, crop protection systems, \nfarming systems for generating biofuel, improved water treatment, low cost MakaPads for \nthe girl child, production of energy, and secure fertilizers all at Makerere University. Mbarara \nUniversity of Science and Technology (MUST) has also been able to produce traditional \nhealth care products at its Pharm-Biotechnology and traditional medicine centre, while \nKyambogo produced an improved low-cost baby incubator and an online Academic \nInformation Management System (AIMS), which is used by all public universities in the \ncountry. \n \nThere are still bottlenecks in management of Research Grants in Public Universities which \nhave affected achievement of the university research objectives. These included; gaps in", "metadata": {"page": 131, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "121 \n \nthe Institutional Framework for coordination of research grants, inadequate resource \nmobilization initiatives, inadequate implementation of research projects, lack of monitoring \nand evaluation framework, and absence of a joint organ to oversee and regulate research \ninitiatives in public universities in the country. \n \nIt is hoped that when the recommendations in this report are implemented; the universities \nwill effectively manage research grants, thus attaining the objectives of their research \nagendas. \n \n7.5. \nValue for Money Audit on The Management Of MATIP-1 Markets by Municipalities \n \nThe Government of Uganda through MATIP-1 redeveloped and reconstructed seven (7) \nmarkets at a cost of USD.64.5 million to create a conducive trade environment and \nincrease revenue collections for the municipalities. The seven (7) markets that were \nredeveloped were; Mpanga market, Hoima Central market, Mbale Central market, Jinja", "metadata": {"page": 132, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Central market, Gulu Central market, Wandegeya market and Lira central market. \n \nThis study assessed whether the municipalities had ensured that the redeveloped \nmarkets created a conducive trade environment and increased revenue collections for \nthe municipalities. \n \nThe redevelopment of the seven (7) markets resulted in an increase in the number of \nvendors trading in these markets from 14,826 vendors in 2015 to 19,481 Vendors in \n2021 which is a growth of 31%. In addition, market management structures comprising \nof staff of the Municipalities as well as vendor associations were established in all the \nmarkets and supported the Municipalities in their role of managing the markets through \nmobilizing vendors to participate in market activities such as trainings in running small \nscale businesses, market cleaning, and sensitizations in market security, trade order and \nhygiene. \n \nDespite these achievements, the study noted areas that require attention if the \nmanagement of these markets is to improve; \n\uf0b7", "metadata": {"page": 132, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nThe study revealed that the annual revenue budgets or targets of all the seven (7) \nmarkets were consistently below their revenue potential by 38%. Whereas the \nrevenue potential for the markets was UGX.32.8Bn over the 6 years reviewed, the \nmarkets only budgeted to collect UGX.12.5Bn over the period. This was attributed to \nlack of a management information systems and the manner in which the \nmunicipalities develop the revenue budgets based on prior year collections instead of \nusing actual market occupancy. Unrealistically low budgets imply that the revenue \nperformance is likely to be below the market potential. \n\uf0b7 \nOut of the budget of UGX.12.5Bn by these markets for the six-year period, only \nUGX.7.9Bn was collected representing a performance of 54%. This was due to lack of \nautomated revenue management system, leaseholders who were not paying monthly", "metadata": {"page": 132, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "market rents, unoccupied stalls and lockups, irregular subletting, and the failure to \nterminate tenancy of rent defaulters. Under collection of revenues has affected the", "metadata": {"page": 132, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "122 \n \nability of these markets to meet their obligations which has resulted into accumulation \nof arrears totalling to UGX.1.41Bn in the seven (7) markets. \n\uf0b7 \nFour (4) markets of Mbale, Gulu, Lira and Jinja were overcrowded with the vendor-\noccupancy exceeding the markets\u2019 design capacity by 36% due to over allocation of \nmarket spaces, illegal traders and sub-lettees, inadequate enforcement by the \nmunicipality and design deficiencies such as poor lighting in some sections, and lack \nof accessibility. The overcrowding has caused congestion in the markets. \n\uf0b7 \nThe majority of vendors all the seven (7) markets were not trading in the established \nzones due to insufficient space in zones, allocation of spaces to traders outside their \ndesignated zones, rejection of the stalls by vendors, and weak enforcement of zoning. \nThis has resulted in a disorganised market environment which continues to present", "metadata": {"page": 133, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "challenges for customers and traders. \n\uf0b7 \nAll the seven (7) markets had failed to maintain adequate sanitation within the \nmarkets due to overcrowding of the markets, weaknesses in the supervision of the \ncleaning staff and cleaning contracts, insufficient number of garbage trucks, skips, \nbins, garbage banks and landfills. The poor sanitation makes the markets unsightly \nfor the customers and poses health risks for both the traders and customers such as \nfood contamination and air pollution. \n\uf0b7 \nThe market infrastructure was not well maintained for all the markets. There were \ncases of leaking roofs, walls with old peeling paint, cracked floors, non-functioning \ntoilets, failed water pumps, un-serviced generators and firefighting equipment, and \nnon-functioning CCTV security equipment. Inadequate maintenance of the market \ninfrastructure was attributed to failure to prioritize this activity by the municipalities, \nand failure to set aside maintenance funds as recommended in the market \nmaintenance guidelines. Failure to maintain infrastructure has resulted in accelerated", "metadata": {"page": 133, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "deterioration of the newly constructed markets. \nIn order to address the gaps identified, the municipalities should roll out automated \nrevenue management systems in all the markets, enforce terms of tenancy agreements \nin relation to sub-letting, invoicing and payment of rent, modify the market structures to \nallow for better lighting and improved access. The municipalities should also address the \nissue of illegal occupants, and develop guidelines to regulate sub-letting. \n \nThe municipalities should review the current markets layout to address the challenges of \nzoning, and overcrowding. In addition, there is need to enhance supervision of market \ncleaning and prioritise the maintenance of the market structures. \n \n7.6. \nPrevention and Response to Incidents of Fire by Uganda Police Force. \n \nDirectorate of Fire Prevention and Emergency Rescue Services (DFPERS) is one of the \ndirectorates in the Uganda Police Force. Its major role is to enhance capacity for \nprevention of emergencies and delivery of rescue services in order to deliver on its", "metadata": {"page": 133, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "functions of fire prevention, fire suppression and emergence rescue. The directorate \noperates eleven (11) fire stations in Kampala Metropolitan Area and thirty-four (34) \nothers stations across the country.", "metadata": {"page": 133, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "123 \n \n \nThis study assessed the extent to which DFPERS has put in place measures to prevent \nand respond to fire outbreaks. The Directorate of Fire and Rescue services has made \nnotable achievements over its nine years of existence as illustrated below; \n \nFollowing the creation of DFPERS in 2012 the number of fire stations in the country has \nincreased by thirty-one (31) which has improved access to fire services. In addition, \ncoordination with stakeholders in preventing and responding to fire by DFPERS has \nimproved and a total of 4,131 have been responded to in the last four years thus saving \nlives and property. Despite the achievements registered, the audit identified the \nfollowing areas that need to be addressed. \n \n\uf0b7 \nThe Directorate of Fire and Rescue Services (DFPERS) undertakes activities aimed at \npreventing the outbreak of fire and incidents that require emergency response. The \nstudy observed that the Directorate faced challenges in preventing the occurrence of", "metadata": {"page": 134, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "fire. These include; \n \n\uf076 DFPERS did not have fire and safety Act, regulations, and policies to aid the \noperations of the directorate in prevention. Because of this the Directorate was \nunable to effectively carry out risk assessment, sensitization of the public, \ninspection of buildings by DFPERS staff, and carry out post incident \ninvestigations as indicated below. \n \n\uf076 DFPERS has not undertaken any comprehensive assessment of risks relating to \noccurrence of fire incidents in order to develop appropriate prevention and \nresponse measures/strategies to control fire outbreaks which has affected the \ndirectorate\u2019s ability to develop appropriate fire prevention strategies. \n \n \n\uf076 DFPERS undertook only 873 (29%) out of the planned 3,020 sensitisations in the \npast four (4) years. This has continued to expose buildings and their occupants \nto fire outbreaks and limited the capacity of citizens to prevent the occurrence of \nsuch incidents.", "metadata": {"page": 134, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "such incidents. \n \n\uf076 DFPERS undertook only 527 (17%) out of the planned 3,080 inspections in the \npast four (4) years. This affects the level of compliance to fire standards which \nincreases the probability of fire outbreaks which can lead to loss of life and \ndamage to property. \n \nThe study also noted the following weaknesses on the side of the Fire department: \n\uf0b7 \nDFPERS did not undertake post incident investigations to ascertain the cause, extent \nof damage or loss from the fires and lessons for prevention of re-occurrence of \nsimilar incidents on the 3,179 incidents of fire reported during the past three years \ndue to lack of equipment and trained investigators and coordination with other \ngovernment investigative bodies. This has resulted into non-conclusion of \ninvestigations hence continued public dissatisfaction on the way Uganda Police Force \nhandles fire investigations.", "metadata": {"page": 134, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "124 \n \n\uf0b7 \nIn addition to fire prevention, DFPERS responds to fire outbreaks to minimize the \nimpact of fire on people\u2019s lives and property. The Directorate faced challenges in \nresponding to fire outbreaks due to limited number of fire stations, inadequate staff, \nlack of enough equipment and non-automation of operations to respond to fires as \nindicated below; \n \n\uf0b7 \nDFPERS is currently operating forty-five (45) fire stations in thirty-eight (38) districts \nto respond to cases of fire outbreaks across the country which is only 27% coverage \nof the total number of districts in the country due to the high cost of opening and \noperating fire stations. This has resulted into DFPERS\u2019 ineffectiveness in responding \nto incidents of fire across the country. \n \n\uf0b7 \nDFPERS currently has 599 fire staff against an approved establishment of 1,081 staff", "metadata": {"page": 135, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "representing staffing levels of 55% implying that the current fireman to population \nratio in Uganda is 1:75,000 compared to the recommended international ratio of \n1:2,000. The existing staff were also not well trained and lacked adequate \naccommodation. \n \n\uf0b7 \nThe equipment at the fire stations were inadequate in terms of quantity and \nfunctionality (not well maintained) to support effective response in the event of fire \nincidents. DFPERS had only 78 out of 232 equipment required to handle fire \nincidents representing 34% level of required equipment capacity. In addition, it was \nnoted that firemen lacked adequate PPEs for use during fire response. \n \n\uf0b7 \nThe fire stations inspected were not automated and information was recorded in \nmanual books there were also no computers and communication systems which \naffected the efficiency and coherence of DFPERS response in the event of fire \noutbreak. \n\uf0b7 \nDFPERS coordinates with some stakeholders such as Local Governments, NWSC,", "metadata": {"page": 135, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "DGAL, CIID, Hospital emergency units, Civil Aviation Authority and Uganda Red \nCross Society however this coordination is informal and characterized by slow \ndecision making which affects response time. \n \nKey Recommendations \n \nI advised DFPER to engage the Ministry of internal Affairs to develop a comprehensive \nfire and safety Act, policy and guidelines in consultation with key stakeholders to \nstreamline risk assessment, sensitisation, inspection and post incident investigations. In \naddition, DFPERS should enhance coordination mechanisms with internal and external \nplayers to support its operations particularly post incident investigations. \n \nDFPERS should prioritize increasing coverage of fire stations to at least 50% of the \ndistricts and develop strategies to ensure the population fire man ratio of 1:75,000 is \nmatched to internationally recommended ratio of 1: 2,000. In addition, UPF should \nundertake an assessment of the current accommodation needs with a view of \ndeveloping strategies to address the current inadequacies in accommodation. UPF", "metadata": {"page": 135, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "should prioritise the acquisition of equipment, PPEs and automation of the current \ncommunication and record management systems to ensure that there is an effective", "metadata": {"page": 135, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "125 \n \nresponse to fire incidents enhance on the operational efficiency during responses to \nincidents of fire outbreaks \n \n7.7. \nValue for Money Audit on the Performance of the Performance of the Agriculture Cluster \nDevelopment Project \n \nGovernment has implemented the Agriculture Cluster Development Project (ACDP) with \nan overall objective of raising on-farm productivity, production and marketable volumes \nof selected agricultural commodities (Maize, Beans, Cassava, Rice, and Coffee) in twelve \n(12) clusters in fifty-seven (57) districts across the country. The project is funded \nthrough IDA Credit worth UGX.540Bn and farmer contribution of UGX.352.8Bn and \nimplemented through the e-voucher management system. \n \nThe intervention has resulted into distribution of 60,124 tonnes of beans, maize, and \nrice and 49,871 bags of cassava planting materials to 245,510 farmers/beneficiaries by", "metadata": {"page": 136, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "the agro-dealers between 2018/2019 and 2020/2021. The intervention has also resulted \ninto increased the marketable volumes from 11.94MT to 33.28MT in the past three \nyears. \n \nDespite the achievements registered, the study identified areas that need to be \naddressed. The following key observations were noted; \n \n\uf0b7 \nThe project delayed to commence by 20 months\u2019 due delays in obtaining the necessary \napprovals from cabinet and parliament (20 months) and delayed fulfilment of the project \neffectiveness conditions (26 months) which led to late implementation of project \nactivities and service delivery. \n \n\uf0b7 \nDespite the project achieving more than 70% in five (5) districts in training of Local \nGovernment Staff and farmers on system use and financial literacy, the project did not \nperform satisfactorily in twenty-three (23) districts where twenty-seven (27) trainings", "metadata": {"page": 136, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "had been planned. As a consequence, a number of farmers were unable to transition \nfrom the first cropping cycle to the third cropping cycle. \n \n\uf0b7 \nOut of the targeted 450,000 farmers, 204,490 (46%) farmers did not access inputs \nthrough the e-voucher system. With only one year left to the end of the project, the \nproject may not achieve its intended objective. \n \n\uf0b7 \nThe inputs that were distributed to the farmers were not verified by UNBS because of \nabsence of a streamlined quality control process. As a result, farmers reported cases \nwhere seeds did not germinate and fertilizers that \u201cjust hardened the soils\u201d were \ndistributed by the Agro-dealers. This has compromised the process of ensuring farmers \nget the best quality inputs since the department is limited in capacity to undertake this \nactivity. \n \n\uf0b7 \nThe project did not achieve the intended targets in the three areas below in the three \nyears of implementation.", "metadata": {"page": 136, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "126 \n \no Only 207 Area Commodity Cooperative Enterprises (ACCEs) (69%) and 155 Rural \nProducer Organisations (RPOs) (5%) have been supported with value addition \nfacilities out of the targeted 300 ACCEs and 3000 RPOs in the six-year project life \nspan. \no Out of 1,835 farmers in the cooperatives that received matching grants for the value \naddition facilities, only 585 farmers (31.9%) were enrolled on the e-voucher system \nwhich made it difficult for the project to reach its targeted 450,000 farmers. \no The project had planned to rehabilitate a total of 2,827.7km planned road chokes \nhowever, only 228.1km (8%) had been rehabilitated representing 8% of the overall \nperformance of the community access roads. \n \nGovernment should ensure that for future projects of a similar nature; The necessary", "metadata": {"page": 137, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "loan documentation is submitted by the implementing entities and loan appraisal unit at \nMoFPED to the approving authorities in time, trainings activities are undertaken in a \ntimely manner, farmers are mobilized into village savings and lending associations to \nincrease access to funding and reviewing the e-voucher subsidy rates in order to make \nthem more affordable to farmers. The role of other partner participating agencies (in \nthis case UNBS) regarding quality is clearly defined in future project designs. \n \nIn addition, MAAIF should ensure that evaluation of business proposals for funding of \nACCEs and RPOs are done in a timely manner for the farmer groups to access funds. \nMAAIF should also enhance supervision in the rollout districts so that works on the road \nchocks are completed in the remaining project life span. \n \n7.8. \nFollow up on the Value for Money Audit on the Compensation of Project Affected \nPersons under the Refinery Project by the Ministry of Energy and Mineral Development", "metadata": {"page": 137, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "The follow-up on the 2017 VFM audit on Compensation of Project Affected Persons \n(PAPs) under the Refinery Project by the Ministry of Energy and Mineral Development \nfound that MEMD had made efforts to implement the Auditor General\u2019s \nrecommendations made at the time, resulting in improved RAP implementation. \n \nOut of the 21 key audit recommendations made in the report of 2017, 12 (57%) were \nfully implemented and 4 (19%) were partially implemented. The status of \nimplementation of 5 (24%) of the recommendations can only be verified in future \nprojects through audit of subsequent RAPs. \n \nSpecifically, after the 2017 audit, MEMD had registered the following progress in RAP \nImplementation: \n \n\uf0b7 \nAll PAPs houses had been occupied by the respective owners; \n\uf0b7 \nElectricity had been connected to all PAP houses; \n\uf0b7 \nFour boreholes were constructed for use by the PAPs and the Host Community; \n\uf0b7", "metadata": {"page": 137, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nAccess roads constructed in the PAPs\u2019 settlement area were completed and were \nmotorable; \n\uf0b7 \nConstruction of the places of worship and a Police Post had been completed and the \nstructures handed over to the respective authorities; \n\uf0b7 \nConstruction of the community centre and market stalls was on-going.", "metadata": {"page": 137, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "127 \n \n\uf0b7 \nMEMD had acquired land titles for the land occupied by the PAPs and was processing \nthe transfer of the individual land titles into the names of the PAPs. \n \nSome outstanding issues noted included the following: A few pending compensation \npayments mostly due to failure to trace the PAPs; failure by the contractor to remedy \nmost defects identified during the 2017 audit; reports of conflicts owing to changing \nsocial dynamics as people adapt to living in congregated settlements; and long distance \nfrom the resettlement area to the boreholes. Finally, the PAPs also reported that MEMD \nand other responsible players rarely conduct visits to sensitise or update them on \nprogress of pending outputs or to explain delays. \n \nFurther recommendations were then made with the aim of addressing the outstanding \nissues noted. \n \n7.9. \nVFM Audit on the Implementation of the Uganda Reproductive Maternal and Child Health", "metadata": {"page": 138, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Services Improvement Project (URMCHSIP) \n \nURMCHSIP is a USD 180 million project fully donor funded and was approved in August \n2016 and is expected to close in December 2022. The target group comprises women of \nchildbearing age, adolescents, and children under-five in all the one-hundred and thrty \nfive (135) districts in Uganda. The Project Development Objectives (PDOs) are to: (a) to \nscale up reproductive, maternal, newborn, child and adolescent health (RMNCAH) \nservices in the whole country; (b) scale-up birth and death registration (BDR) services; \nand (c) to strengthen disease outbreak preparedness and response. \n \nThe audit covered twelve (12) Districts benefiting from this project in the three financial \nyears of 2017/18, 2018/19 and 2019/20. Below are the key findings of the study; \n \ni. \nStatus of Implementation of the Project", "metadata": {"page": 138, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Status of Implementation of the Project \nIt was noted that out of the 22 project performance indicators considered, 13 (i.e. 60%) \nachieved their target for the FY 2019/20. The remaining 9 indicators (i.e. 40%) were \nbelow their 2019/20 target. Amongst the 9 are two indicators: the number of health \nfacilities constructed and equipped, which are not reflecting any progress due to delays \nin implementation. \n \nii. \nThe Results-Based Financing (RBF) Program \nSince January 2019 to date, the URMCHSIP has rolled out the RBF program to 1,316 \nhealth facilities in one-hundred and thirty-five (135) districts across the country in three \nphases. However, review of timing of RBF payments made by the Ministry of Health-to-\nhealth facilities revealed delayed payments ranging from 83 to 154 days after the \nprescribed deadline. Consequently, timely implementation of Performance Improvement", "metadata": {"page": 138, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Plan (PIP) activities at these facilities was adversely impacted. The delayed payments \nwere partly attributed to the delayed verification of health facility outputs by the District \nHealth Management Teams (DHMTs) which was further constrained by the reliance on \nmanual processes.", "metadata": {"page": 138, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "128 \n \niii. \nProcurement of Essential RMNCAH Medicines and Supplies \nThe project intended to support the Ministry of Health (MoH), through National Medical \nStores (NMS), to procure and distribute essential Reproductive, maternal, newborn, child \nand adolescent health (RMNCAH) commodities. However, there have been several \ndelays in the procurement of these commodities under the project, leaving health \nfacilities partly incapable of handling certain complications arising during delivery. This \nwas partly attributed to failure by the MoH to retender certain procurements, there \nbeing no bidder that initially met the requirements. \n \niv. \nBirth and Death Notifications in Health Facilities \nThere were delays in implementation of various activities by National Identification and \nRegistration Authority (NIRA) especially (i) scaling up the electronic vital records system \nfor birth registration through the supply of laptops, MiFi\u2019s and internet data bundles to", "metadata": {"page": 139, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "285 HC IVs and High-volume Health centre IIIs. As a result, the project has made \nminimal improvement in capacity of these facilities to conduct birth and death \nnotifications. \n \nv. \nMonitoring and Evaluation of Project Activities \nThe monitoring and evaluation (M&E) function was found to be inadequate and this was \npartly attributed to the fact that there were no annual M&E work plans and the M&E \nspecialist was only recruited in December 2019, two and a half years after the project \nhad commenced. \n \nOverall Audit Conclusion \n \nThe MoH is advised to continue working closely with the National Identification and \nRegistration Authority, the District Local Governments, National Medical Stores, and the \nWorld Bank to address any capacity gaps and implementation delays that are derailing \nproject performance. The MoH is also advised to liaise with MoFPED and other key \nstakeholders to guarantee the continuity of the interventions set up under this project", "metadata": {"page": 139, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "especially the RBF Program, the increased supply of key RMNCAH medicines and \nsupplies, the recruitment of health workers trained under URMCHSIP, so as maintain the \ngains made in the Health sector as a result of this project.", "metadata": {"page": 139, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "129 \n \nANNEXURES \nANNEXURE I: SUMMARY OF ENTITY FINDINGS AND OPINIONS FOR MDAs, COMMISSIONS, STATUTORY \nCORPORATIONS AND STATE ENTERPRISES AND PROJECTS \n \nSn \nSECTOR AND ENTITY \nSUMMARY OF KEY FINDINGS \n \nAGRICULTURE SECTOR \n \n1. \nAgriculture Cluster \nDevelopment Project \n(ACDP). \n2020/21 \n \n \nOpinion \nUnqualified \n \n \n \n\uf0b7 \nDelays in the implementation of some project activities were noted such \nas provision of E-Vouchers subsidies to beneficiaries in the 12 clusters, \nonly a total of 208,827 of beneficiaries used E-Voucher out of the \ntargeted 400,000 and only 18 road chokes have been worked on in the 7 \npilot districts against the targeted 90. \n\uf0b7", "metadata": {"page": 140, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nThe project budgeted to receive UGX 361.7Bn from development partners \nbut only received UGX 254.8Bn, representing a performance of 70% of \nthe budget. Similarly, the project budgeted to receive UGX 4Bn as GOU \ncounterpart funding but only received UGX 2.6Bn (66%) resulting in a \nshortfall of UGX 1.4Bn which is 34% of the budget. \n\uf0b7 \nOut the releases of funds of UGX 254.8Bn, the project remained with \nunspent balance of UGX 99.1Bn representing an absorption level of 61%. \n\uf0b7 \nI sampled 12 outputs with a total of 25 activities worth UGX.324.1Bn \nrepresenting 90% of the total budget and noted that 8 outputs with 17 \nactivities worth UGX 53.7Bn were not quantified to enable measurement \nof performance. Furthermore, of the 4 outputs with a total of (8)", "metadata": {"page": 140, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "quantified activities worth UGX 80.14Bn assessed; 1 output with 1 activity \nrepresenting 25% was fully implemented while 3 outputs with a total of 7 \nactivities representing 75% were partially implemented. \n\uf0b7 \nThe budget for the financial year 2020/21 was approved on 13th August \n2020 (2 months into the financial year). \n\uf0b7 \nProject funds to the tune of UGX 3.5Bn were disbursed significantly late \nto the districts. \n\uf0b7 \nNational Project Steering Committee (NPSC) held only one meeting as \nopposed to two recommended in a year. \n\uf0b7 \nProcurements for rehabilitation of identified and approved road \nchokes/work in the last 29 roll-out districts had not commenced by the \ntime of audit despite MAAIF budgeting for the activity at UGX 90Bn. \n\uf0b7 \nShortcomings were observed with the E-Voucher Management Agency \nwhich included, frequent breakdown of the system, lesser enrolment of", "metadata": {"page": 140, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "beneficiaries ie 64% of the target, only 44% of the project beneficiaries \nwere trained in Financial Literacy and Input use, the system was at 78% \nof its functional requirement, system installation, \nconfiguration, \noptimisation and commissioning reports have not been submitted. \n\uf0b7 \nMAAIF budgeted UGX.104.9Bn to provide Electronic Voucher subsidies to \n293,500 beneficiaries in 12 project clusters but only managed 118,933 \n(41%) beneficiaries. \n\uf0b7 \nFarmers still had challenges in transacting using the system, managing \nfarmer savings and use of inputs via the system. During the financial \nyears 2019/2020 and 2020/2021, 52,089 transactions were made by \nusers who had never logged onto the system and were accessing inputs \nmanually. Relatedly, 2,873 user IDs initiated 7,878 payment requests", "metadata": {"page": 140, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "130 \n \nwithout logging onto the system. \n\uf0b7 \nAn analysis of E-Voucher Management Agency (EVMA) system revealed \nthat 168,086 (99%) of the farmers that accessed inputs redeemed the \ninputs for only one cycle without transitioning to cycles 2 and 3, 2191 \n(1.3%) transitioned to cycle 2 without transitioning to cycle 3, while 47 \n(0.03%) transitioned to cycle 3. \n\uf0b7 \nIn the year 2019/2020 and 2020/2021, 347 farmers ordered inputs \nduring the financial year at amounts that were in excess of the \nrecommended threshold of UGX.1,350,000 worth UGX.186,792,644. \n2 \nAgriculture Value Chain \nDevelopment Programme \n(AVCP). \n2020/21 \n \n \nOpinion \nUnqualified \n \n\uf0b7", "metadata": {"page": 141, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nOut of the planned twelve (12) strategic targets/goals to be achieved by \nfinancial year 2020/2021; four (4) had been fully achieved, seven (7) \nwere partially achieved while one (1) was not achieved at all. \n\uf0b7 \nThere was a shortfall in releases of UGX.22.84Bn which is 64% of the \nbudget. Further, the entity remained with unspent balance of UGX.0.81Bn \nrepresenting an absorption level of 94%. \n\uf0b7 \nI reviewed fourteen (14) outputs with a total of fifty (50) activities worth \nUGX.33.72Bn and noted that all the 14 outputs with a total of 50 \nactivities were fully quantified. Further, out of the 14 outputs that were \nfully quantified, I observed that; 0ne (01) output with four (04) activities \nand expenditure worth UGX.0.547Bn was fully implemented; ten (10)", "metadata": {"page": 141, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "outputs with forty-two (42) activities worth UGX.10.1Bn were partially \nimplemented i.e. out of the 42 activities, 17 activities (40%) were fully \nimplemented, 16 activities (39%) were partially implemented while 9 \nactivities (21%) remained unimplemented. Three (03) outputs with four \n(04) activities were not implemented at all. \n\uf0b7 \n Assessment of achievement of services from implemented outputs \nrevealed that 60 artificial inseminations (AI) Kits were purchased at \nUGX.0.26Bn and delivered to NAGRC in June; however, management had \nnot yet distributed them to beneficiary AIs by November 2021 implying \nthat the equipment was not in use for more than five months. \n\uf0b7 \nRelatedly, the project undertook the Purchase and Installation of Ultra-\nHigh Performance Liquid Chromatography (UHPLC) for analysis of various \nchemical food and environmental residues and related substances at", "metadata": {"page": 141, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "UGX.0.39Bn which was delivered in June 2021 but was not functional by \nNovember due to incomplete components. \n\uf0b7 \nThere was no Steering committee sitting during the year to facilitate and \nensure adherence to relevant strategies established by Government \nduring project implementation. \n3 \nCoordinating Office for \nControl of Trypanosomiasis \nin Uganda. \n2020/21 \n \n \nOpinion \nUnqualified \n\uf0b7 \nThe entity had an approved strategic plan, however the plan had not \nbeen certified by NPA contrary to Regulation 26 (1) of the NPA \n(development of plans). \n\uf0b7 \nAll budgeted Donor revenue of UGX.0.783Bn for the financial year \n2020/2021, was dully received representing performance of 100% of the \ntarget. \n\uf0b7", "metadata": {"page": 141, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "target. \n\uf0b7 \nThere was a shortfall in releases amounting to UGX.0.172Bn representing \n4.1% of the budget. Furthermore, the entity remained with unspent \nbalance of UGX.0.00037Bn representing an absorption level of 99.9%. \n\uf0b7 \nThe entity received off-budget financing to a tune of UGX.0.783bn which \nwas not appropriated as part of the entity budget contrary to the law. \n\uf0b7 \n4 outputs with 8 activities and expenditure worth UGX.0.324Bn were fully \nquantified while 5 outputs with 34 activities worth UGX.4.41Bn were", "metadata": {"page": 141, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "131 \n \ninsufficiently quantified. Of the 4 outputs with all 8 quantified activities \nworth UGX.0.324Bn assessed; 3 outputs with 4 activities worth \nUGX.0.19Bn were fully implemented, while 1 output with 4 activities \nworth UGX.0.134 was partially implemented. \n\uf0b7 \nAll 4 quarterly performance reports were submitted after the quarterly \ndeadline and I did not obtain evidence to confirm that the Accounting \nOfficer prepared monitoring plans and reports. \n\uf0b7 \nOut of the approved staff number of 37 employees, 19 (51%) have been \nfilled leaving a 18 (49%) vacant among which are key posts of Deputy \nDirector, Accountant, Medical Officer, Entomology Officer, M&E Officer \netc. \n\uf0b7 \nContrary to the COCTU Human Resource Manual that requires operation \nof a medical insurance scheme to benefit all its employees, the entity has", "metadata": {"page": 142, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "not operationalized any Staff Medical Insurance Policy for its staff. \n4 \nCotton Development \nOrganization. \n2020/21 \n \nOpinion \nUnqualified \n\uf0b7 \nThe entity cotton sub sector strategic plan had been prepared and \napproved; however, it was not certified by NPA to evidence its alignment \nto the NDP-III. \n\uf0b7 \nThe entity budgeted to collect NTR of UGX 4.43Bn but collected \nUGX.1.85Bn representing a performance of 41.7% of the target. \n\uf0b7 \nFurther, there was a shortfall in GoU releases amounting to UGX.0.015Bn \nrepresenting 1.6% of the budget UGX.8.62Bn. Further, the entity \nremained with unspent balance of UGX.0.0179Bn representing an \nabsorption level of 98%. \n\uf0b7", "metadata": {"page": 142, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nCDO received off-budget financing directly from the United Nations to a \ntune of UGX.36,178,924 (USD.9,923) which was not declared to treasury \nand, therefore not appropriated to the entity by Parliament. \n\uf0b7 \nI reviewed all 8 out-puts of the budget with a total of twenty one (21) \nactivities and expenditure of UGX.8.46Bn and noted that two (2) outputs \nwith two (2) activities and expenditure worth UGX.4.2Bn were fully \nquantified, four (4) outputs with a total of thirteen (13) activities and \nexpenditure worth UGX.3.3Bn were insufficiently quantified that is out of \nthe thirteen (13) activities, four (4) activities (30.8%) were quantified and \nnine (09) activities (69.2%) were not clearly quantified to enable", "metadata": {"page": 142, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "assessment of performance while two (2) outputs with a total of six (6) \nactivities and expenditure worth UGX.0.92Bn were not quantified at all. \nFurther, of the 2 quantified outputs/activities assessed, 1 output with one \n(1) activity and expenditure of UGX.5.6Bn was fully implemented while 1 \noutput with 1 activity worth UGX.3.6Bn was partially implemented. \n\uf0b7 \nSubmission of performance reports for three quarters was made after the \ndeadline dates and there was no evidence to confirm that the Accounting \nOfficer Prepared Monitoring Plans and reports which are important in \nensuring that the budget performs as expected. \n\uf0b7 \nIt was noted that UGX.19.649Bn was budgeted to cater for the cotton \nmarketing season 2020/21 out of which, UGX.15.154Bn was budgeted \ntowards provision of planting seed and production inputs. Government", "metadata": {"page": 142, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "was able to contribute only UGX.8.6Bn leaving the balance for the private \npartner intervention. This is an indication that government is relying more \non the ginners to fund the cotton sector. Despite the intervention by the \nprivate sector, there were shortages in provision of inputs to farmers. 866 \nMt of planting seed, 374.6 Mt of fertilizers and 2,260 spray pumps were \nnot provided as projected in the strategic plan which directly affected the \nperformance of the sector in achieving the desired cotton production", "metadata": {"page": 142, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "132 \n \ntargets. \n\uf0b7 \nAnalysis of the domestic arrears showed an increase of 198% from \nUGX.7,925,963 in the prior year to UGX.23,659,951 in the year under \nreview. \n\uf0b7 \nCDO staff structure had thirty seven (37) positions dully filled leaving a \nstaff vacancy of ten (10) positions (21%). The positions that have \nremained vacant over the years include key positions of two (2) \nAgronomy officers, a classifier and a Personnel & Administration Officer. \n\uf0b7 \nWithholding tax to the tune of UGX.83,142,447 from payments worth \nUGX.839,194,850 was not recovered for onward remittance to URA \ncontrary to section 120(1) and 120(4) of the Income tax Act. \n5 \nNational Agricultural \nResearch Organization", "metadata": {"page": 143, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "National Agricultural \nResearch Organization \n2020/21 \n \nOpinion \nUnqualified \n\uf0b7 \nThe entity\u2019s draft strategic plan had been aligned to the NDP-III at the \ntime of audit and was awaiting certification from NPA due to delayed \napproval of the Programme Implementation Action Plans (PIAPs). \n\uf0b7 \nThe entity budgeted to collect NTR of UGX.4.625Bn but collected \nUGX.3.053Bn representing a performance of 66% of the target. \n\uf0b7 \nThere was a shortfall in GoU releases amounting to UGX.11.216Bn \nrepresenting 10.1%. Further, the entity remained with unspent balance \nof UGX.0.085Bn representing an absorption level of 99.9%. \n\uf0b7 \nThe entity received off-budget financing directly from development", "metadata": {"page": 143, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "partners to a tune of UGX.49.77Bn out of which only UGX.38.19Bn was \ndeclared to the PSST and disclosed in the entity ministerial policy \nstatement without a supplementary appropriation for the balance of \nUGX.11.58Bn. \n\uf0b7 \nI sampled 8 outputs with 35 activities and expenditure of UGX.99.59Bn \nand noted that 7 outputs with 18 activities and expenditure worth \nUGX.45.070Bn were fully quantified while 1 output with 17 activities and \nexpenditure worth UGX.54.52Bn was insufficiently quantified, of which 5 \nactivities (29%) were quantified while 12 activities (71%) were not \nclearly quantified to enable measurement of performance. Further, I \nobserved that out of the seven (7) outputs that were fully quantified, two \n(2) outputs with five (5) activities and expenditure worth UGX.5.186Bn", "metadata": {"page": 143, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "were fully implemented while Five (5) outputs with thirteen (13) activities \nworth UGX.39.884Bn were partially implemented i.e. four (4) activities \nwere fully implemented, eight (8) activities were partially implemented, \nwhile one (1) activity remained unimplemented. \n\uf0b7 \nSubmission of performance reports for all the quarters was made after \nthe deadline dates. \n\uf0b7 \nFourteen (14) slow progressing competitive grant scheme (CGS) projects \ninitiated in 2018/19 with funding of UGX.1.158Bn during the financial \nyear 2020/2021 were still on-going despite expected completion date of \nJune 2021. \n\uf0b7 \nCivil works and Supplies Projects worth UGX.32,051,565,938 undertaken \nduring the financial year were not yet handed over for use. Further, \ninspections of NARO facilities at institutes revealed poor road networks, \nbroken down silos at the feed mill, non-functional water pump and", "metadata": {"page": 143, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "abandoned works. \n\uf0b7 \nThere was failure to achieve the intended service delivery for the \nadditional Civil Works at Rwebitaba ZARDI that costed UGX.418,584,880. \nThis was due to lack of equipment in the laboratory. \n\uf0b7 \nReview of 9 sample procurements worth UGX.27,606,866,233 revealed an", "metadata": {"page": 143, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "133 \n \naverage delay of 45 days in the procurement process due to late release \nof funds by MoFPED. \n\uf0b7 \nThe entity received Covid 19 supplementary budget of UGX.0.0134Bn for \nsettlement of arrears which was all spent by the entity representing an \nabsorption level of 100%. It was noted that this was inadequate for \nsettlement of domestic arrears brought forward from the previous year \n2019/20 given leaving a deficit of UGX1.69Bn (98%). \n\uf0b7 \nDomestic arrears increased from UGX.1.72Bn in the previous year to \nUGX.2.875Bn in the year under review, an increase of 67%. The arrears \nremained unsettled at the close of the year. Further, NARO did not \nbudget for domestic arrears amounting to UGX.1.687Bn during the year", "metadata": {"page": 144, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "as a paltry provision of only UGX.0.033Bn was budgeted to settle arrears \nof UGX.1.72Bn. \n\uf0b7 \nA review of NARO\u2019s land portfolio revealed that the entity had surveyed \n31 pieces of land with total coverage of 4097.20364 Hectares, however it \nwas noted that 8 pieces (3172.937 Hectares) were titled, 20 pieces of \nland (706.75454 Hectares) were at deed plan stage and 3 pieces of land \n(217.5121 Hectares) were still at survey report stage. Further, 17 parcels \nof land located in NaFIRRI-Jinja, Bulindi-Kibaale district, NaLIRRI- Tororo, \nNamayingo, Nyakyesasa, Ngetta- Kitgum and Rwebitaba-Fort-portal still \nhad cases of encroachement by both private and public developers. \n\uf0b7 \nA review of the NARO staff establishment revealed that out of the", "metadata": {"page": 144, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "approved staff number of 995 employees, 851 positions have been filled \nleaving a staffing gap of 144 (14.5%) staff which indicates a further \nreduction in staff by about 2.5% compared to the previous financial year. \n6 \nNational Animal Genetics \nand Data Bank (NAGRIC) \n2020/21 \n \nOpinion \nUnqualified \n \n \n\uf0b7 \nThe entity strategic plan had been aligned to the NDP-III at the time of \naudit but it was still in draft form awaiting certification from NPA before \napproval. \n\uf0b7 \nThe entity budgeted to collect NTR of UGX.1.550Bn but collected \nUGX.3,872,073,899 representing a performance of 250% of the target. \n\uf0b7 \nThere was a shortfall in GoU releases amounting to UGX.4.7Bn", "metadata": {"page": 144, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "representing 6.21%. Further, the entity remained with unspent balance \nof UGX.0.47Bn representing an absorption level of 99.3%. \n\uf0b7 \n41 out-puts with a total of ninety-five (95) activities representing 100% \nof the total budget and noted that 6 (14.6%) of the total outputs were \nnot quantified while 7 (17%) outputs with a total of seventeen (17) \nactivities were insufficiently quantified. Further, of the 28 quantified \noutputs/activities \nassessed, \n4 \noutputs \nwith \neight \n(8) \nactivities \nrepresenting 9.7% were fully implemented; 10 outputs with 20 activities \nrepresenting 24.3% were partially implemented while 14 outputs with 30 \nactivities representing 34.1% were not implemented at all. \n\uf0b7 \nSubmission of performance reports for all the quarters was made after", "metadata": {"page": 144, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "the deadline dates. Furthermore, inconsistences were noted in the \nreported performance where management reported procurement of \npoultry feeds, drugs and vaccines for poultry on NAGRC & DB Centre \nfarms instead of the planned activity of rearing of 5,000 Indigenous \npoultry genetic resources sourced on Aswa ranch in Pader District. \n\uf0b7 \nNAGRC&DB had a COVID 19 arrears supplementary budget of \nUGX.0.066Bn all of which was warranted and spent representing 100% of \nthe budget absorption. \n\uf0b7 \nLetters of Credit worth UGX.21.850Bn which expired on 31st December \n2020 were renewed to 31st December 2021 leading to nugatory", "metadata": {"page": 144, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "134 \n \nexpenditure of UGX.0.54Bn. By 30th June 2021, prior year LCs worth \nUGX.10.875Bn were still outstanding. \n\uf0b7 \n12 project sites whose contracts total to UGX.20.055Bn out of which \nUGX.6.327Bn had been paid were abandoned while 8 delayed and \nremained incomplete by 30th June 2021. \n\uf0b7 \n34 contracts for construction of structures, procurement of land and \ndelivery of supplies worth UGX.34.4Bn out of which UGX.11.451Bn was \npaid had not started. Out of the 34 contracts, 3 service providers who \nhad been fully paid a sum of UGX.7.45Bn had not delivered. \n\uf0b7 \n640 acres of planted pasture/ fodder in Kasolwe ranch had dried up \nadversely affecting the quality and quantity of feeds for the animals. \n\uf0b7", "metadata": {"page": 145, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nDomestic arrears increased by UGX.0.918Bn from UGX. 0.336Bn in the \nprevious year to UGX.1.254Bn in the year under review. The arrears \nremained unsettled at the close of the year. \n\uf0b7 \nOut of 12 ranches managed by NAGRC & DB, 6 had been encroached on \nwhile some of the NAGRC & DB land had no land titles in the names of \nNAGRIC 7DB. \n\uf0b7 \nNAGRC & DB had an approved staff structure of 189 positions with only \n105 (56%) filled leaving 84 (44%) vacant and 17 positions were filled \nbeyond the approved structure. Further, general support staff structure of \n128 positions had 310 staff resulting in an over staffing of 142 (185%). \n7 \nNational Oil Palm Project \n2020/21 \n \nOpinion \nUnqualified \n\uf0b7", "metadata": {"page": 145, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Unqualified \n\uf0b7 \nOut of seven (7) strategic targets to be achieved by 30th June 2021, \nnone had been fully achieved, two (2) were partially achieved while five \n(5) were not achieved at all. \n\uf0b7 \nThe Project budgeted to receive IFAD funds to a tune of UGX.39.87bn, \nout of which UGX.25.584bn was available representing a performance of \n64% of the budget. Further, there was a shortfall in GoU releases \namounting to UGX.0.035Bn representing 0.46% of the budgeted \nUGX.7.597Bn. \n\uf0b7 \nOut of the total available funding of UGX.35.528Bn during the financial \nyear, UGX.28.415Bn was spent by the entity resulting in an unspent \nbalance of UGX.7.113Bn representing an absorption level of 80%. \n\uf0b7", "metadata": {"page": 145, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nI sampled Six (6) outputs with a total of eighty one (81) activities and \nexpenditure of UGX.21.6231Bn and noted that all six (6) outputs with 81 \nactivities were fully quantified to enable assessment of performance. \nFurther, assessment of the implementation of all Six (6) outputs revealed \nthat; all six (6) outputs with eighty one (81) activities were partially \nimplemented i.e. out of the eighty one (81) activities, thirty two (32) \nactivities (40%) were fully implemented; thirty (30) activities (37.5%) \nwere partially implemented, while nineteen (19) activities (12.5%) \nremained unimplemented. \n\uf0b7 \nTwo (2) contracts worth UGX.12.397Bn in relation to construction of \nlanding sites were cancelled due to delayed implementation of projects \nbeyond 12 months from the initial intended completion date. \n\uf0b7", "metadata": {"page": 145, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nI noted delayed titling of 883.92 hectares of the acquired nucleus estate \nLand exposing it to risks of encroachment by individuals. \n\uf0b7 \nReview of four (4) sample procurements worth UGX.1.47Bn revealed an \naverage delay of 140 days in the procurement process majorly as a result \nof delayed approval process by IFAD, contracts committee and Solicitor \nGeneral.", "metadata": {"page": 145, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "135 \n \n8 \nStrengthening National \nSeed Certification Service \nProject (SNSCS). \n \n2019/2020 \n \nOpinion \nUnqualified \n \n \n \n\uf0b7 \nOut of the planned six (6) strategic targets/goals to be achieved, none \nwas either fully or partially achieved and one target was not even \nquantified to enable assessment. \n\uf0b7 \nSNSCS planned to receive and spend UGX.2.59bn from AGRA out of \nwhich UGX.1.099bn (42%) was received leading to a funding gap of \nUGX.1.49bn (58%). Further, out of the total receipts for the financial year \nof UGX.1.099Bn, UGX.0.05Bn was spent by the entity resulting in an", "metadata": {"page": 146, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "unspent balance of UGX.1.049Bn representing an absorption level of \n4.5%. \n\uf0b7 \nOut of the nine (9) outputs with a total of twenty eight (28) activities and \nexpenditure of UGX.0.0498Bn reviewed; five (5) outputs with sixteen (16) \nactivities and expenditure worth UGX.0.0498BN were fully quantified \nwhereas four (4) outputs with a total of twelve (12) activities and nil \nexpenditure were insufficiently quantified. \n\uf0b7 \nI assessed the implementation of the five(5) outputs that were fully \nquantified with a total of sixteen(16) activities worth UGX.0.0498Bn and \nnoted that one (1) output with 5 activities worth UGX.0.0498Bn was \npartially implemented. Out of the 5 activities, the entity fully implemented", "metadata": {"page": 146, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "one (1) activity (20%) while 4 activities (80%) were not implemented. \nFour (4) outputs with a total of eleven (11) activities and nil expenditure \nwere not implemented at all. \n\uf0b7 \nManagement did not prepare periodic performance reports and therefore \nI was unable to clearly assess the actual performance against the planned \noutputs. \n9 \nStrengthening National \nSeed Certification Service \nProject (SNSCS). \n2020/21 \n \nOpinion \nUnqualified \n \n\uf0b7 \nOut of the planned six (6) strategic targets/goals to be achieved by 30th \nJune 2021, one (1) target was fully achieved, three (3) targets had been \npartially achieved and two (2) were not achieved at all. \n\uf0b7 \nThe Project budgeted to receive UGX.1.184bn out of which UGX.1.049bn", "metadata": {"page": 146, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "was received resulting into a shortfall of UGX.0.135bn, which is 11% of \nthe budget. Further, out of the total warrants of UGX.1.049Bn received \nduring the financial year, only UGX.0.199Bn was spent by the entity \nresulting in an unspent balance of UGX.0.85Bn representing absorption \nlevel of 19%. \n\uf0b7 \nI sampled five (5) outputs with 15 activities worth UGX.0.199Bn and \nnoted that three (3) outputs with a total of seven (7) activities and \nexpenditure worth UGX.0.199Bn were fully quantified; Two (2) outputs \nwith a total of eight (8) activities were not quantified at all. Further, of \nthe three quantified outputs assessed, one (1) output with 3 activities \nworth UGX.199, 045,000 was partially implemented. Out of the 3", "metadata": {"page": 146, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "activities, one (1) activity was partially implemented, while two (2) \nactivities remained unimplemented. Two (2) outputs with four (4) \nactivities worth NIL expenditure were not implemented. \n\uf0b7 \nAGRA amended the disbursement of Grant due to low absorption and \ndecided to de-obligate US$.571,167 being the total un-disbursed funds \nfor the project thus necessity to restructure the budget and milestone \ndelivery plan to fit within US$.323, 450 that had been disbursed. \n\uf0b7 \nContrary to the grant guidelines, unspent or un-committed grant funds \nremained on the project bank account and were not invested in highly \nliquid investments to earn income. \n\uf0b7 \nA number of project milestones had not been achieved by the end of the \nfinancial year exposing the Grant to a risk of failure to achieve its \nobjectives.", "metadata": {"page": 146, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "136 \n \n10 \nThe Uganda Multi-Sectoral \nFood Security and Nutrition \nProject. \n2020/21 \n \nOpinion \nUnqualified \n \n \n\uf0b7 \nOut of the planned fourteen (14) strategic targets/goals to be achieved \nby financial year 2020/2021; ten (10) (71%) had been fully achieved \nwhile four (4) (29%) were partially achieved. \n\uf0b7 \nThere were excess receipts worth UGX.4.154Bn as a result of the project \ndesign where the withdrawal of funds from the Donor is made on a six \n(6) months projection which is 25% of the budgeted UGX.16.610Bn. \nFurther, there was a shortfall of UGX.0.06Bn in GOU co-funding out of", "metadata": {"page": 147, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "the budgeted UGX.0.755Bn which is 8% of the GOU budget. \n\uf0b7 \nI noted that out of the total available funds of UGX.20.764Bn, only \nUGX.11.267Bn was spent by the project resulting in an unspent balance \nof UGX.9.497Bn representing an absorption level of 54.26%. \n\uf0b7 \nI reviewed seven (7) outputs with a total of forty (40) activities and \nexpenditure of UGX.11.267Bn for assessment and noted that all the 40 \nactivities were fully quantified. Further, assessment of the implementation \nof the seven (7) outputs revealed that; Two (2) outputs with eight (8) \nactivities and expenditure worth UGX.1.771Bn were fully implemented \nwhile five (5) outputs with thirty two (32) activities worth UGX.9.496Bn", "metadata": {"page": 147, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "were partially implemented i.e. out of the thirty two (32) activities, the \nentity fully implemented nineteen (19) activities (59%), ten (10) activities \n(31%) were partially implemented, while three (3) activities (10%) \nremained unimplemented. \n\uf0b7 \nAn assessment from a sample of out-puts that were implemented during \nthe year revealed shortcomings ie funds remitted to 1500 primary schools \nhad not been utilized since they did not procure the required inputs for \nplanting and multiplication (seedlings), the local Micro Nutrients rich crop \nPlanting Materials for 3000 parent group Members and Herbicides & \nPesticides. \n\uf0b7 \nField inspections revealed that nutrition supplements such as the Iron and \nFolic Acid and Zinc expired in April and December 2020 respectively \nbefore they could be utilised by the beneficiaries causing loss of \nGovernment funds hindering the achievement of the intended objective. \n11 \nThe Regional Pastoral", "metadata": {"page": 147, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "11 \nThe Regional Pastoral \nLivelihoods Resilience \nProject. \n2020/21 \n \nOpinion \nUnqualified \n \n\uf0b7 \nOut of the planned fourteen (14) strategic targets/goals to be achieved \nby financial year 2020/2021; six (6) had been fully achieved, five (5) \nwere partially achieved while three (3) were not achieved at all. \n\uf0b7 \nThere was a shortfall in releases from the donor of UGX.13.788Bn which \nis 30% of the budget. The project budgeted to receive UGX.0.3Bn GOU \nfunding all of which was availed. Further, the entity remained with \nunspent balance of UGX.15.172Bn representing an absorption level of \n54%. \n\uf0b7 \nI reviewed all the eleven (11) outputs with a total of twenty six (26)", "metadata": {"page": 147, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "activities and expenditure of UGX.17.71Bn and noted all were fully \nquantified. Further, assessment of the level of implementation for the 11 \noutputs revealed that five (5) outputs with nine (9) activities and \nexpenditure worth UGX.0.765Bn were fully implemented while the six (6) \noutputs with seventeen (17) activities worth UGX.16.945Bn were partially \nimplemented i.e. out of the seventeen (17) activities, the entity fully \nimplemented seven (7) activities (41%); five (5) activities (29%) were \npartially implemented, while five (5) activities (29%) remained \nunimplemented. \n\uf0b7 \nAssessment of achievement of services from implemented outputs \nrevealed that although the Livestock marketing Information System is in \nplace, it lacks up to date information for the beneficiaries implying that it", "metadata": {"page": 147, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "137 \n \nmay not be regularly used. \n\uf0b7 \nContract works for the valley dams which are the critical infrastructure for \nthe long term sustainability of the project are past the completion time \nand works are still significantly behind schedule despite contractors \nhaving been paid substantial percentages of the contract sums \n\uf0b7 \nShortcomings were noted on reliability of the market information data \nsystem designed to track information such as prices, tradeable volumes, \ndiseases concerning livestock for use by famers such as failure to input \nmarket information data into the system since October 2019, lack of a \ndesignated system administrator that is responsible for managing and \nupdating the system at the Ministry and lack of a system manual that \nprovides standard guideline for the system use. \n\uf0b7 \nThere was no Steering committee sitting during the year to facilitate and \nto ensure adherence to relevant strategies established by Government \nduring project implementation. \n12 \nDairy Development", "metadata": {"page": 148, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "12 \nDairy Development \nAuthority. \n2020/21 \n \n \nOpinion \nUnqualified \n \n \n \n\uf0b7 \nDDA\u2019s dairy strategic plan had been prepared, approved and certified by \nNPA to evidence its alignment to the NDP-III. \n\uf0b7 \nThe entity budgeted to collect NTR of UGX.3.9Bn but collected UGX.3.9Bn \nrepresenting a performance of 100% of the target and all the budgeted \nGOU funds worth UGX.10.02Bn were warranted, without a shortfall. \n\uf0b7 \nThe entity remained with unspent balance of UGX.2.07Bn representing an \nabsorption level of 79.3%. \n\uf0b7 \nDDA directly received off-budget financing to a tune of UGX.0.63Bn from", "metadata": {"page": 148, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Fleming fund country grant II but it was never declared to the PSST and \nas such not appropriated to the entity by parliament. \n\uf0b7 \nI sampled 4 outputs for review with a total of twenty four (24) activities \nand expenditure of UGX.3.8Bn and noted that One (01) output with four \n(04) activities and expenditure worth UGX1.1Bn was insufficiently \nquantified, that is, one (01) activity (25%) was quantified while three \n(03) activities (75%) were not clearly quantified to enable assessment of \nperformance. Three (03) outputs with a total of twenty (20) activities and \nexpenditure worth UGX.2.7Bn were not quantified at all. Further, I \nassessed the implementation of one activity that was quantified and \nnoted that the Rehabilitation of Kyegegwa and Katakwi Milk Collection \nCentres(MCCs) was partially implemented. \n\uf0b7", "metadata": {"page": 148, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nSubmission of performance reports for the four quarters was made after \nthe deadline dates and there was no evidence to confirm that the \nAccounting Officer prepared Monitoring Plans and reports which affect \ntimely tracking and evaluation of performance. \n\uf0b7 \nAnalysis of the domestic arrears showed new arrears incurred during the \nyear under review to the tune of UGX.0.178Bn. Further, I noted that \nthere was no budget provision for settlement of these arrears in the year \nunder review. \n\uf0b7 \nI noted that the entity lost fixed assets through theft which included \nfifteen (15) desktop computers, two (02) laptop computers, a projector, a \nrouter, and cameras but they were not disclosed in the financial \nstatements. \n\uf0b7 \nThe Authority has failed to collect CESS revenue compensation from \nMoFPED contrary to the presidential directive requiring the same. \n\uf0b7", "metadata": {"page": 148, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nDDA is understaffed by seventy seven (77) posts out of one hundred and \nforty (140) posts which is 55% understaffing. The unfilled posts include", "metadata": {"page": 148, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "138 \n \nkey positions like Head of internal audit, Director Finance and \nAdministration, Planner, Regional managers, Principal Dairy Development \nOfficers and Dairy inspectors. Some posts have remained vacant since \n2003. \n13 \nNational \nAgricultural \nAdvisory Services (NAADS). \n2020/21 \n \nOpinion \nUnqualified \n \n\uf0b7 \nThe entity had prepared the strategic plan; but there was no approval \nand certification of the same by NPA to evidence alignment to the NDP-\nIII at the time of audit. \n\uf0b7 \nOut of the budgeted NTR of UGX.3.587Bn, the Authority collected only \nUGX.0.12Bn, representing a performance of 3.3% of the target. There \nwas 100% performance in GoU releases amounting to UGX. 243.9Bn.", "metadata": {"page": 149, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Further, NAADS remained with unspent balance of UGX.0.06Bn \nrepresenting an absorption level of 99.9%. \n\uf0b7 \nI sampled four (04) outputs with a total of twenty five (25) activities and \nexpenditure of 184.4Bn and noted that two (02) outputs with a total of \nthree (03) activities and expenditure worth UGX.43.19Bn were fully \nquantified while two (02) outputs with a total of twenty two (22) activities \nand expenditure worth UGX.141.19Bn were insufficiently quantified i.e. \nout of the twenty two (22) activities, fourteen (14) activities (64%) were \nquantified while the balance of eight (08) activities (36%) were not \nclearly quantified. Further, assessment of the implementation of the two \n(2) outputs that were fully quantified with a total of three (03) activities \nrevealed that none was fully implemented. \n\uf0b7", "metadata": {"page": 149, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nAssessment of one partially implemented output revealed that out of \n3,010,000 hand hoes, only 2,500,000 hand hoes were procured and \ndistributed to the Northern parts of the country instead of the planned \nvulnerable rural small holder farming households across the country. \n\uf0b7 \nSubmission of performance reports for all quarters was made after the \ndeadline dates. Furthermore, I did not obtain evidence to confirm that \nthe Accounting Officer Prepared Monitoring Plans and reports. \n\uf0b7 \nNAADS incurred huge LC charges to a tune of UGX.1.053Bn as a result of \nopened LCs worth UGX.71.25Bn for contracts that failed to deliver within \nthe year. Further, I noted LCs worth UGX.23.13Bn that failed to perform \nfor a period of more than two (2) financial years with one of \nUGX.2.071Bn for milk coolers outstanding for more than 4 years. \n\uf0b7", "metadata": {"page": 149, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nReview of the Kasese industrial park Agri-LED intervention worth \nUGX.3.9Bn revealed allocation of land to a bus company contrary to the \nset objectives and delayed payment of NWSC to connect piped water. \n\uf0b7 \nReview of the sugarcane production project implementation with \ninvestments of UGX.85Bn revealed shortcomings i.e.lack of feasibility \nassessment, lack of accruing benefits to the beneficiaries, weaknesses in \nthe MoU signed with beneficiaries, limited information on members of the \ncooperatives, delays in contract completions, pending liquidated \ndamages, and stalled activities. \n\uf0b7 \nI noted failure to enter into MOU\u2019s with beneficiaries of milk coolers \ncontrary to the selection criteria of the standing orders of procedure for \noperation wealth creation. \n\uf0b7 \nThere was lack of clearly identified beneficiaries from the start in the", "metadata": {"page": 149, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "transportation and distribution of hoes intervention, lack of MOU\u2019s with \ndelegated DLGs on distribution modalities and nugatory storage costs. \n\uf0b7 \nReview of the tractor strategic intervention revealed lack of assessment \nof potential beneficiaries and non-adherence to the terms of the MoU \nthus risks of beneficiaries without the capacity to manage the tractor for", "metadata": {"page": 149, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "139 \n \nfarming practice or as an enterprise. \n\uf0b7 \nNAADS had a Covid 19 arrears supplementary budget of UGX.17.84Bn all \nof which was warranted and absorbed. Further, review of utilisation \nrevealed failure to settle long outstanding payables, appropriation in \nexcess of requirement and diversion of Covid 19 relief funds worth \nUGX.10.032Bn from the settlement of domestic arrears to settlement of \ncurrent year bills without seeking and obtaining the necessary approvals \n\uf0b7 \nA trend analysis of the domestic arrears showed an increase of \nUGX.7.085Bn (53.6%) from UGX.13.23Bn in the previous year to \nUGX.20.31Bn that remained unsettled at close of the year with arrears of \nUGX.0.162Bn relating to previous financial years. \n\uf0b7", "metadata": {"page": 150, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nFunds worth UGX.2.15Bn were irregularly diverted from the activities on \nwhich they were budgeted and spent on other activities without seeking \nand obtaining the necessary approvals \n\uf0b7 \nI noted long outstanding receivables of UGX.2.38Bn relating to cash \nbalances and accountabilities that remained at the DLG at the time of \nrestructuring thus casting doubt on their recoverability. \n\uf0b7 \nReview of the procurement function revealed shortcomings such as \ndelayed supplies and unjustified extensions and non execution of \nperformance security. \n\uf0b7 \nI noted that NAADS has an approved staff structure of 56 positions out of \nwhich 53 (94.6%) positions are filled. Key among the vacant posts is \nManager Finance and Administration and Zonal Agricultural Development \nOfficer. Further, I noted temporary appointments of six (6) staff for the \nsugarcane field based team for 30 months contrary to the recommended", "metadata": {"page": 150, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "12 months as stipulated in the regulations. \n14 \nMinistry \nof \nAgriculture, \nAnimal, \nIndustry \nand \nFisheries (MAAIF). \n2020/21 \n \nOpinion \nUnqualified \n \n\uf0b7 \nI noted that the Ministry had prepared the Agro-Industrialization (AGI) \nProgramme as a strategic plan for 2020/21-2024/25 that is aligned to the \nNDP-III and according to the certificate of compliance for the FY 2020/21 \nannual budget, the overall Agro-industrialization programme budget was \nscored at 63.5% compliance to the NDP-III. \n\uf0b7 \nThere was a shortfall in NTR collections amounting to UGX.6.82bn \nrepresenting 76% and a shortfall in GOU releases amounting to", "metadata": {"page": 150, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "UGX.24.1Bn representing 14%. Further, out of the total warrants of \nUGX.151.2Bn received, UGX.146.95Bn was spent by the entity resulting in \nan unspent balance of UGX.4.24Bn representing absorption of 97%. \n\uf0b7 \nThe Ministry received off-budget financing to a tune of UGX.1.78Bn that \nwas not appropriated as part of the entity budget contrary to the law. \n\uf0b7 \nI sampled sixty-five (65) outputs with a total of one hundred and sixty-\nseven (167) activities and expenditure of UGX.98.2Bn for assessment. I \nnoted that; sixty-one (61) outputs with a total of one hundred and sixty \n(160) activities and expenditure worth UGX.89.6Bn were fully quantified \nwhile four (4) outputs with a total of seven (7) activities and expenditure", "metadata": {"page": 150, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "worth UGX.8.6Bn were not quantified at all to enable assessment of \nperformance. Further, I assessed all the quantified 61 outputs and noted \nthat; 34 outputs with a total of 75 activities worth UGX.39.1Bn were fully \nimplemented and 27 outputs with a total of 85 activities worth \nUGX.50.5Bn were partially implemented i.e. out of the 85 activities, the \nMinistry fully implemented 39 activities (46%), partially implemented 44 \nactivities (52%) while 2 activities (2%) remained unimplemented. \n\uf0b7 \nI noted failure of timely interventions to combat the foot and mouth \ndisease (FMD) outbreak as a result of challenges faced in the", "metadata": {"page": 150, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "140 \n \nprocurement of vaccines despite the availability of funds. The Ministry \nfaced challenges as only 500,000 doses were delivered out of the \nprocured 700,000 doses from the prior year and these came 4 months \nafter expected delivery. Further, none of the procured 2,311,000 doses \nprocured in May 2020 were delivered within the contract period despite \nthe emergency situation and by the time of audit, the contract had not \nfully performed with 611,000 doses outstanding. \n\uf0b7 \nShortcomings were noted in the management of the Ministry Public \nInvestment Plan (PIP) Projects in regard to compliance with the \nDevelopment Committee Guidelines 2016 and the budget execution \ncircular 2020/2021. I noted incomplete approvals for Projects, non-\nadherence of Projects with appraisal Guidelines, ongoing projects after \nexpiry of project duration and irregular and excessive spending on \nrecurrent Items \n\uf0b7", "metadata": {"page": 151, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "recurrent Items \n\uf0b7 \nDomestic arrears decreased by 14% from UGX.12.96Bn in the prior year \nto UGX.11.13Bn in the year under review. Further, a paltry UGX.2.42Bn \nbudget provision was provided for settlement of domestic arrears in the \ncurrent year budget. \n\uf0b7 \nAll documents pertaining to Contingency fund activities and transfers to \nagricultural institutions during the year worth UGX 11.95Bn were \nsubmitted to the IGG for investigations and I was unable to confirm \nwhether the amount involved was applied to the intended purpose. \n\uf0b7 \nManagement did not undertake monthly wage and pension performance \nanalysis to reconcile the payroll generated through the IPPS with the \npayment information from the IFMS as required resulting into delays in \ngranting clearance to recruit, inefficient wage and pension payroll \nmanagement, accumulated arrears and non-absorption of pension and \ngratuity budget.", "metadata": {"page": 151, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "gratuity budget. \n\uf0b7 \nOut of 919 approved staffing positions, only 595 had been filled and the \nrest of the positions (324) were vacant representing 35% staffing gap. \nAmong the vacant were key positions such as directors, commissioners, \nassistant commissioners and principals in core directorates and noticed \nmanagement\u2019s failure to undertake timely recruitments despite availability \nof funds. \n15 \nUganda \nCoffee \nDevelopment \nAuthority \n(UCDA). \n2020/21 \n \nOpinion \nUnqualified \n \n\uf0b7 \nThe entity had prepared the coffee strategy; but there was no approval \nand certification of the strategic plan by NPA to evidence alignment to the \nNDP-III at the time of audit. \n\uf0b7 \nOut of the budgeted NTR of UGX.27.5Bn, the Authority collected only", "metadata": {"page": 151, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "UGX.20.1Bn, representing a performance of 73% of the target. \n\uf0b7 \nThere was a shortfall in GoU releases amounting to UGX.5.8Bn \nrepresenting 3.1% of the budgeted UGX.186.3Bn. Further, the entity \nremained with unspent balance of UGX.9.391Bn representing an \nabsorption level of 94.8%. \n\uf0b7 \nThe Authority received off-budget financing worth UGX.443M which was \nnever declared to the PSST and as such no supplementary appropriation \nwas issued as guided by the PSST. \n\uf0b7 \nI sampled eight (08) outputs with a total of sixty two (62) activities and \nexpenditure of UGX.150.6Bn and noted that one (01) output with a total \nof four (04) activities and expenditure worth UGX.2.1Bn was fully", "metadata": {"page": 151, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "quantified; three (03) outputs with a total of fifty four (54) activities and \nexpenditure worth UGX.67.1Bn were insufficiently quantified i.e. out of \nthe fifty four (54) activities, forty nine (49) activities (91%) were \nquantified while the balance of five (05) activities (9%) were not clearly", "metadata": {"page": 151, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "141 \n \nquantified and four (04) outputs with a total of four (04) activities and \nexpenditure worth UGX.81.3Bn were not quantified at all. Further, \nassessment of the implementation of the one (01) output that was fully \nquantified with a total of four (04) activities revealed that it was partially \nimplemented i.e. out of the four (4) activities, the entity fully \nimplemented three (03) activities (75%) while one (1) activity (25%) \nremained unimplemented. \n\uf0b7 \nSubmission of performance reports for three quarters was made after the \ndeadline dates. Furthermore, I did not obtain evidence to confirm that \nthe Accounting Officer Prepared Monitoring Plans and reports. \n\uf0b7 \nReview of the distribution lists (form Bs) attached to the accountabilities \nfor coffee seedlings supplied revealed that deliveries to a tune of", "metadata": {"page": 152, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "UGX.0.213Bn were made either out of season or towards season end \nthus rendering the survival of the inputs nearly impossible. \n\uf0b7 \nFertilizers worth UGX.2.25Bn distributed to the cooperatives were \nunacknowledged by the intended coffee farmers. The form F3\u2019s where \nthe actual farmers who received the fertilisers were supposed to have \nacknowledged had not yet been received and verified by management \nand neither had the cooperatives returned the empty fertiliser bags and \nfilled in form F4\u2019s. \n\uf0b7 \n65,445 and 1880 bags of fertilisers for the western and Elgon region \nrespectively had not yet been distributed at the time of inspection in \nSeptember 2021 contrary to section 7 (a) of the fertiliser distribution \nguidelines that required application of fertilisers to only be done in the \nrainy season. \n\uf0b7", "metadata": {"page": 152, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "rainy season. \n\uf0b7 \nField inspection of the procured fertilizers and materials to support the \nestablishment of CWDR nurseries revealed several anomalies i.e. bad \nwarehousing storage (stacked high on the floor, instead of pallets), lack \nof aeration and non-adherence to first in first out (FIFO) policy. Further, \nthe nurseries for CWDR had not been setup and materials were simply \nkept in stores by the beneficiaries and some had started using the \nimplements such as hoes, pangas, wheel burrows; mother gardens were \npoorly maintained and no labels of the lines had been added to the \nmother gardens. \n\uf0b7 \nUCDA had a Covid 19 arrears supplementary budget of UGX.73Bn all of \nwhich was warranted and absorbed 100%. Review of utilisation revealed \ndoubtful payments, duplicated arrears on verified list and witting down of", "metadata": {"page": 152, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "invoice amounts without supplier consent which exposes the entity to \nlitigation \n\uf0b7 \nDomestic \narrears \nshowed \na \nmovement \nin \narrears \nfrom \nUGX.120,383,249,500 in the previous year to UGX.23,036,904,150 by the \nclose of the financial year 2019/20, representing a decrease of 80.8%. \nOut of this, amount UGX.16,699,179,350 was incurred during the year \nunder review. \n\uf0b7 \nA total of UGX.80,373,239,334 (43.1% of the approved budget) was \nprovided for settlement of domestic arrears, however, arrears worth \nUGX.125,407,367,170 were paid resulting in settlement of prior year", "metadata": {"page": 152, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "domestic arrears worth UGX.45,034,127,836. \n\uf0b7 \nReview of the procurement function revealed several shortcomings such \nas delays in the procurement process with an average delay period of 2 \nand a half months, failure to deliver within contractual timelines, un-\ndeducted liquidated damages, inconsistent liquidated damages clauses \nand deviation from Ministry of Works specifications for vehicle", "metadata": {"page": 152, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "142 \n \nprocurement leading to higher purchase and maintenance costs. \n\uf0b7 \nUCDA undertook new recruitments in the year which have increased \nstaffing levels to only 147 (66%) positions leaving 77 (34%) positions \nvacant. Among the vacant posts are key positions i.e. Board \nSecretary/Director of Corporate Services, three (3) Regional managers, \nAccountants (2), one (1) procurement manager, thirty eight (38) regional \ncoffee extension officers and three (3) Regional Coffee Technical officers \namong others. \n\uf0b7 \nI noted irregular extension of contracts for staff at managerial level \nwithout explicit board approval contrary to section 5.3(c) of the UCDA \nHuman Resource manual (2018) and staffs in acting capacities longer \nthan the stipulated time periods in the Human Resource Manual i.e. not \nmore than two terms of six (6) months. \n16 \nUganda Seeds Limited.", "metadata": {"page": 153, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Uganda Seeds Limited. \n2019/20 \n \nOpinion \nQualified \n \n\uf0b7 \nA receivable of UGX.1,147,910,181 (17% of the total assets) could not be \nsupported as there was no evidence to confirm the accuracy, existence \nand completeness of the reported balance. \n\uf0b7 \nManagement of USL did not make adequate disclosures regarding what is \nincluded in the capital and revaluation reserves. \n\uf0b7 \nUGX.11,205,053 relating to the expenses for the year ended 30th June \n2020 was unsupported. \n\uf0b7 \nI noted that a disposed of motor vehicle was still maintained in the \nfinancial statements and asset register for the period. \n\uf0b7 \nPreviously issued financial statements have been restated for the \ncorrection of material misstatement in the previous period. \n \nJUSTICE, LAW AND ORDER \nSECTOR", "metadata": {"page": 153, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "SECTOR \n \n1 \nDirectorate of Government \nAnalytical \nLaboratory \n(DGAL). \n2020/21 \n \nOpinion \nUnqualified \n \n \n\uf0b7 \nOut the total receipts for the financial year of UGX.24.684Bn, only \nUGX.15.630Bn was spent by the entity resulting in an unspent balance of \nUGX.9.054Bn representing an absorption level of 63.3%. \n\uf0b7 \nI noted that of the 39 activities worth UGX.6.23Bn assessed, only 18 \nactivities worth UGX.1.55Bn were fully implemented, 20 activities worth \nUGX.4.68Bn were partially implemented and one 1 activity worth \nUGX.8.46Bn was not implemented. \n\uf0b7 \nAn assessment of service delivery revealed that Mbale and Moroto", "metadata": {"page": 153, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "regional laboratories were supported with UGX.0.132Bn to carry out \nforensic analysis, however the performance the regional labs was \nassessed as low as both laboratories did not complete any cases during \nthe year. \n\uf0b7 \nAlthough, DGAL had a strategic goal to eliminate all case back-logs by \n30th June 2021, the forensic case backlog had only reduced by 58.3% \nfrom 5,559 cases in June 2018 to 2,317 outstanding cases as at 30th \nJune 2021. \n\uf0b7 \nDespite receiving UGX.8.625Bn for the construction of a DNA databank \nduring the year, the planned construction did not take place and \nUGX.8.465Bn was returned to the consolidated fund. \n\uf0b7 \nIn the financial year 2019/2020, DGAL entered into a contractual \nagreement for which a letter of credit worth UGX.1.475Bn was created at \nthe request of foreign suppliers. The letter of credit remained outstanding \nfor more than one year implying that the foreign supplier had not fulfilled", "metadata": {"page": 153, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "143 \n \ntheir contract obligations. \n\uf0b7 \nIn the financial year 2019/2020, DGAL procured digital forensic tools for \nuse to recover data on mobile phones at an estimated cost of USD.82,000 \n(equivalent to UGX.290,232,000). In the period since acquisition, the \nentity has only used the forensic tools and equipment to process and \nanalyse just one (1) case raising the possibility that the equipment is \nunder-utilised. \n\uf0b7 \nNine (9) staff positions for a Commissioner, Government Analysts and \ndrivers in the Directorate were cleared by the Ministry of Public Service \nfor recruitment, and the directorate received funding amounting to \nUGX.0.032Bn for the purpose. The recruitment process had not been \nfinalised at the year end and the funds were returned to the consolidated \nfund. \n\uf0b7 \n \n2 \nJustice \nLaw", "metadata": {"page": 154, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Justice \nLaw \nand \nOrder \nSector JLOS-SWAP. \n2019/20 \n \nOpinion \nUnqualified \n \n\uf0b7 \nI noted that out of the budgeted revenue of UGX. 121,683,362,209 for \nthe financial year 2019/2020 only UGX. 104,870,934,098 (86%) was \nreleased, resulting in a shortfall of UGX. 16,812,428,111 (14%) on the \noverall. The largest shortfall of UGX. 10,304,157,202 (8.4%) was in \nrespect to the Development Partners funding, \n\uf0b7 \nA review of the JLOS SWAP disbursement of funds to implementing \nentities and the respective actual expenditure revealed that only UGX.", "metadata": {"page": 154, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "81,391,358,207 was spent out of the availed UGX.104,870,934,098, \nresulting in an unspent balance of UGX.31,080,004,792. The unspent \nbalance \nexcludes \nthe \nJLOS \nHouse \nProject \nbalance \nof \nUGX. \n18,592,439,794, which commenced in the subsequent financial year \n2020/21. \n\uf0b7 \nI reviewed all the 43 activities under the JLOS Secretariat with a budget \nof UGX.23.561Bn, out of which UGX.18.027Bn was released, resulting in a \nshortfall of UGX.5.534Bn, which is 23.5% of the budget \n\uf0b7 \nI further noted from the analysis of the annual performance report that", "metadata": {"page": 154, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "some critical activities for which funds had been released had not been \nimplemented. \n\uf0b7 \nOut of the 43 activities with a total budget of UGX.23.561Bn, I reviewed \nthe extent of quantification of outputs and activities and noted that a \ntotal of three (3) activities and releases worth UGX.4.076Bn were not \nquantified at all to enable assessment of performance. A total of forty \n(40) activities and releases worth UGX.13.951Bn were fully quantified. \nThat is, all the forty (40) activities (100%) were clearly quantified to \nenable assessment of performance. \n\uf0b7 \nI assessed the implementation of all the Forty (40) JLOS SWAP activities \nworth UGX.13.951Bn that were fully quantified and noted that Fourteen \n(14) activities worth UGX.12.507Bn were fully implemented. The entity", "metadata": {"page": 154, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "implemented all the Fourteen (14) activities (100%) within the JLOS \nSWAP consolidated strategic outputs. Four (4) activities worth \nUGX.0.665Bn were partially implemented. All the Four (4) activities within \nthe JLOS SWAP consolidated strategic outputs were not achieved 100%. \nTwenty-two (22) activities worth UGX0.779Bn were not implemented at \nall. \n\uf0b7 \nI observed that UGX.656,905,350 advanced to various beneficiaries by \nfour implementing agencies to execute sector activities during the COVID-\n19 lockdown period, i.e. between November 2019 and June 2020, lacked \nthe necessary supporting documents such as payment vouchers, activity \nreports and receipts at the time of audit (November 2020) and were", "metadata": {"page": 154, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "144 \n \nsubmitted during the month of January 2021, implying that the funds had \nnot been accounted for by 30th June 2020. \n\uf0b7 \nI noted from the review of financial statements that management did not \ndisclose the outstanding balances as at 30th June 2019. Consequently, no \nprovision was made to cater for domestic arrears in the financial year \n2019/2020 budget. But I noted that UGX.9,145,799 was spent to settle \noutstanding bills in respect of conference facilities for JLOS and the \nsupply and delivery of law reference books \n3 \nOffice of the Director of \nPublic Prosecutions. \n2020/21 \n \nOpinion \nUnqualified \n \n \n \n\uf0b7 \nDuring the years under review, 666,620 cases were brought forward from \nthe previous years, and 99,232 cases were registered during the year,", "metadata": {"page": 155, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "giving a cumulative sum of 765,492 cases recorded. Of these cumulative \ncases, only 40,466 (5%) were cleared during the year. \n\uf0b7 \nOver the five years only 253,596 cases representing (33%) have been \nconcluded through conviction, acquittal, withdrawal, dismissal and closed \nfiles. \n\uf0b7 \nODPP continues to incur substantial annual maintenance costs of \nUGX.2,808,000,000 in spite of the low coverage of the system (only 41 \nstations out of the planned 138) and some system components like the \ncomplaint handling and processing component are not fully operational. \n\uf0b7 \nODPP had an approved organization structure that requires 1,336 staff \nhowever, only had 519 staff had been filled. The structure requires 833 \nprosecutors but is operating with only 366 (40%), and as a result, there \nare more magistrates than prosecutors. \n\uf0b7", "metadata": {"page": 155, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nNo budgetary provision was made for the settlement of domestic arrears, \nwhich stood at UGX.1,611,006,686 as at the beginning of the financial \nyear 2020/2021. As at the close of 2020/2021, the Office reported \ndomestic arrears to the tune of UGX.1,228,911,994. \n4 \nUganda \nHuman \nRights \nCommission \n2020/21 \n \nOpinion \nUnqualified \n \n \n\uf0b7 \nI noted that the Commission did not have an approved strategic plan that \nwas aligned to NDP III by the time of audit. The draft plan prepared by \nthe entity had not been certified by NPA. \n\uf0b7 \nThe Commission collected over 100% of its NTR target for the year over \nand above the target. The Commission absorbed only 86.8% of the funds", "metadata": {"page": 155, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "that were released by government. \n\uf0b7 \nThe Commission received off-budget financing directly from development \npartners to a tune of UGX.2.187Bn, which was not declared to Treasury \nand, therefore, not appropriated to the entity by Parliament. \n\uf0b7 \nManagement did not quantify 2 outputs with 6 activities and expenditure \nworth UGX 0.12Bn. \n\uf0b7 \nOut of (11) outputs that were fully quantified with 22 activities, 3 \nactivities worth UGX.0.44Bn were fully implemented, 18 activities worth \nUGX.15.54Bn were partially implemented. 1 output with 1 activity worth \nUGX.0.17Bn was not implemented at all. \n\uf0b7 \n \n\uf0b7 \nThe Commission neither prepared annual budget monitoring plans nor \nsubmitted quarterly budget monitoring reports. The Commission also \nfailed to submit all its quarterly budget performance reports in time. \n\uf0b7", "metadata": {"page": 155, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nThe UHRC had tribunal case backlog of 1,756 cases at the beginning of \nthe financial year 2020/2021, and 71 additional cases were registered \nduring the year, resulting in a total of 1,827 outstanding cases. Out of the \n1,827 cases, only 326 (17.8%) were investigated and disposed of. The", "metadata": {"page": 155, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "145 \n \nun-cleared complaints at the tribunal level stood at 1,501 at the year-end, \ntranslating into underperformance of 82.2%. \n\uf0b7 \nTimeline errors continue to occur due to the limited interface between \nIPPS and IFMS in payroll processing. A review of the payroll register and \nIFMS payment file revealed that UGX.5.706 Bn was paid as per payroll \nregister; while IFMS indicates that UGX.6.124Bn was paid, resulting in an \noverpayment of UGX. 0.417Bn. \n5 \nUganda \nLaw \nReform \nCommission. \n2020/21 \n \nOpinion \nUnqualified \n\uf0b7 \nI noted that the Commission did not have an approved strategic plan that \nwas aligned to NDP III by the time of audit. The draft plan prepared by", "metadata": {"page": 156, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "the entity had not been certified by NPA. \n\uf0b7 \nThe Commission collected only 100% of its NTR target for the year which \nwas commendable. The Commission also absorbed only 92.4% of the \nfunds that were released thus affecting implementation of planned \nactivities. \n\uf0b7 \nOut of the 8 outputs assessed with 37 activities and expenditure of \nUGX.7.74Bn, 6 outputs with worth UGX.4.53Bn were fully quantified. \n\uf0b7 \nI assessed the implementation of 6 outputs with 24 activities that were \nfully quantified and noted that 1 output with 3 activities and expenditure \nworth UGX 3.43Bn was fully implemented while 5 outputs with 21 \nactivities worth UGX.1.1Bn were partially implemented. Out of the 21 \nactivities, the entity fully implemented 9 activities, 4 activities were \npartially implemented, while 8 activities remained unimplemented. \n\uf0b7 \nThe Commission neither prepared annual budget monitoring plans nor", "metadata": {"page": 156, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "submitted quarterly budget monitoring reports. The Commission also \nfailed to submit all its quarterly budget performance reports in time. \n\uf0b7 \nULRC did not have any domestic arrears brought forward from the \nprevious \nyear; \nhowever, \nthe \nentity \nrecorded \npayables \nworth \nUGX.124,626,384 under court awards and compensations in the year \nunder audit. \n6 \nJudicial Service Commission \n2020/21 \n \nOpinion \nUnqualified \n\uf0b7 \nI noted that the Commission submitted a draft strategic plan to NPA for \napproval. \n\uf0b7 \nThe Commission budgeted for NTR of UGX.4.5bn for the financial year \n2020/21, however only UGX. 788,000 was collected representing", "metadata": {"page": 156, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "performance of 0.02% of the target. The Commission absorbed 95.7% of \nthe funds that were released. \n\uf0b7 \nOut of the fifteen (15) outputs sampled, ten (10) were fully quantified, \nwhile one (1) was insufficiently quantified and two (2) were not \nquantified at all. \n\uf0b7 \nOut of the ten (10) outputs assessed, five (5) were fully implemented \nwhile five (5) were partially implemented. \n\uf0b7 \nThe Commission neither prepared annual budget monitoring plans nor \nsubmitted quarterly budget monitoring reports. The Commission also \nfailed to submit all its quarterly budget performance reports in time. \n\uf0b7 \nOut of the approved 143 staff positions, ninety-seven (97) positions were \nfilled while forty-seven (47) positions were vacant. \n\uf0b7 \nThe commission did not remit to URA PAYE of UGX.138,219,093. \n7", "metadata": {"page": 156, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "7 \nMinistry of Justice and \nConstitutional Affairs. \n2020/21 \n\uf0b7 \n \nAt the time of audit, the entity strategic plan had not yet been \nsubmitted to NPA; management was awaiting the completion of revising", "metadata": {"page": 156, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "146 \n \n \n \nOpinion \nUnqualified \n \nthe Governance and Security Programme. \n\uf0b7 \nThe entity budgeted to collect NTR of UGX.0.112Bn but collected \nUGX.0.233Bn representing a performance of 208% of the target. \n\uf0b7 \nThere was a shortfall in GoU releases amounting to UGX.34.461Bn, \nrepresenting 22%. \n\uf0b7 \nThirteen (13) outputs with a total of twenty-nine (28) activities were \nquantified, while eighteen (18) outputs with a total of thirty-nine (39) \nactivities were insufficiently quantified. Further, of the thirteen (13) \nquantified outputs/activities assessed, two (2) outputs with two (2) \nactivities were fully implemented; eleven (11) outputs with 27 activities \nwere partially implemented. \n\uf0b7", "metadata": {"page": 157, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "were partially implemented. \n\uf0b7 \nSubmission of performance reports for all the quarters was made after \nthe deadline dates. \n\uf0b7 \nMoJCA received COVID 19 arrears supplementary funding of UGX.18.2Bn, \nall of which was warranted and spent, representing 100% of the budget \nabsorption. \n\uf0b7 \nDomestic arrears decreased from UGX.399.88Bn, in the previous year to \nUGX.381.26Bn as at 30th June 2021, representing a reduction in arrears \nby 4.6%. The arrears remained unsettled at the close of the year. \n\uf0b7 \nThe unpaid Court Awards and Compensation stood at UGX. 377.43Bn as \nof 30th June 2021, which has accumulated over the last ten years. \n\uf0b7 \nI noted that the MOJCA had not put in place a documented criterion for \nprioritizing the settlement of Court awards. \n\uf0b7", "metadata": {"page": 157, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nI noted a rising trend of Government liabilities due to the following \n(Under \nbudgeting \nfor \ncourt \nawards \nand \ncompensation \nacross \nGovernment, Accumulation of interest, Non-disclosure of contingent \nliabilities by other MDAs and New developments in the law) \n8 \nThe Directorate of \nCitizenship and Immigration \nControl. \n2020/21 \n \nOpinion \nUnqualified \n \n\uf0b7 \nThe DCIC prepared a strategic plan for 2020-2025 that was approved by \nthe National Planning Authority on 22nd November 2021. However, \nfollowing the issuance of a Certificate of Approval, management had not \napproved the plan for implementation. \n\uf0b7 \n \n\uf0b7 \nOut of the total receipts for the financial year of UGX.104.9Bn, only", "metadata": {"page": 157, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "UGX.103.9Bn was spent by the entity resulting in an unspent balance of \nUGX.1.0Bn representing an absorption level of 99%. \n\uf0b7 \nI sampled seventeen (17) outputs with a total of one hundred seventeen \n(117) activities and expenditure of UGX.101.8Bn for assessment and \nnoted that eleven (11) outputs with expenditure worth UGX.26.95Bn \nwere fully quantified. Five (5) outputs with worth UGX.74.09Bn were \ninsufficiently quantified, and One (1) output with expenditure worth \nUGX.0.13Bn was not quantified at all \n\uf0b7 \nI noted that a sum of UGX.1.02Bn was released to DCIC to settle \nDomestic Arrears to a supplier under Covid-19 related funding. \n\uf0b7 \nAn assessment of service delivery revealed that DCIC takes an average of", "metadata": {"page": 157, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "7.7 days to process a passport and a further 7.3 days from the date of \nprinting to issue the passport to the citizens. I further observed that \nalthough the Directorate has several regional offices for processing of \npassports, 97% of the applications for passports and 92% of the \nissuances are done at the Central Office in Kampala. \n\uf0b7 \nA trend analysis of the Directorate domestic arrears over the past three", "metadata": {"page": 157, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "147 \n \nyears showed a decreasing trend from UGX.4.19Bn in 2018/2019 to \nUGX.0.32Bn in 2020/2021. \n\uf0b7 \nA review of the approved budget estimates for the year revealed that \nonly UGX.1,015,473,085 (11.4%) was budgeted and released to settle \ndomestic arrears amounting to UGX.8,898,668,915, implying insufficient \nbudgeting for domestic arrears. \n\uf0b7 \nThe Directorate procured an e-visa and permit management system \nduring the financial year. I observed a number of contract conditions, \nincluding final user acceptance testing, completion of the setup of the \nsystem workflow, training of end-users, and integration of the system to \nother government systems in NIRA, CAA, URSB, and URA had not yet to \nbe achieved. \n\uf0b7", "metadata": {"page": 158, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "be achieved. \n\uf0b7 \nThe Directorate procured a consultant for the configuration, installation \nand maintenance of an Integrated System for archived records and the \nmaintenance of the electronic data management system. I observed \ndelays in contract execution and that the entity did not have a Service \nLevel Agreement to guide the support and maintenance of the system. \n9 \nThe Court of Judicature \n(The Judiciary). \n2020/21 \n \nOpinion \nUnqualified \n \n\uf0b7 \nThe Judiciary prepared a strategic plan and had it approved by NPA at \nthe time of audit. \n\uf0b7 \nThe entity budgeted to collect NTR of UGX. UGX.11.043Bn but collected \nUGX.5.698Bn representing a performance of 52% of the target. \n\uf0b7 \nThere was a shortfall in GoU releases amounting to UGX.6.02Bn,", "metadata": {"page": 158, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "representing a 3% shortfall. \n\uf0b7 \nThirteen (13) outputs with a total of sixty-seven (67) activities were \nquantified, while seven (7) outputs with a total of twenty-seven (27) \nactivities were insufficiently quantified, and six (6) outputs with a total of \nforty-five (45) activities were not quantified at all. Further, of the thirteen \n(13) quantified outputs/activities assessed, five (5) outputs with fourteen \n(14) activities were fully implemented; eight (8) outputs with fifty-three \nactivities were partially implemented. \n\uf0b7 \nSubmission of all performance reports for all the quarters was made after \nthe deadline dates. \n\uf0b7 \nI \nnoted \nthe \naccumulation \nof \ncase \nbacklog \ndue \nto \ndelayed \noperationalisation of gazetted courts and a limited number of judicial", "metadata": {"page": 158, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "officer\u2019s compared to the workload. \n\uf0b7 \nJudiciary had a COVID 19 arrears supplementary budget of UGX.8.66Bn, \nall of which was warranted and spent representing 100% of the budget \nabsorption. \n\uf0b7 \nI noted an increase in receivables from UGX 661,164,656(2019/2020) to \nUGX 3,268,317,882 (2020/2021). This was partly due to UGX. \n1,652,842,084 that was advanced to courts to undertake election \npetitions and remained unaccounted for at the end of the financial year \nunder audit. Furthermore, the other receivables of UGX.320,947,170 \ncarried forward from previous years remained outstanding with no \nrecoveries made. \n\uf0b7 \nI noted that management accrued new domestic arrears totalling UGX.", "metadata": {"page": 158, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "4,171,245,048 during the financial year 2020/2021 compared to UGX. \n2,641,109,446 new arrears accrued in 2019/2020, registering an \nincrement of new arrears of UGX. 1,530,135,602 thus representing a \n58% growth rate. \n\uf0b7 \nJudiciary did not budget for domestic arrears amounting to UGX.3.543Bn,", "metadata": {"page": 158, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "148 \n \nwhich remained outstanding in the FY 2019/20. \n\uf0b7 \nI noted inconsistencies in statistics reported on both pending and cases \nhandled by the Judiciary during the period. \n\uf0b7 \nI noted delays in the implementation of The Electronic Court Case \nManagement Information System (ECCMIS); an overall average delay of \n3 months since the Go-live had been scheduled on 7th June 2021. But, as \nof 11th October 2021, this has not yet been done. Data migration of the \nPhase 1 stations from CCAS into the new integrated ECCMIS has not \nbeen performed; the project was still at the design and development \nstage at the time of audit; the Change management training is still \nongoing as of 6th October 2021, yet the training had been scheduled for \n23rd October 2020, some planned activities were not implemented, like \nthe migration of data for phase 1 entities from the court case \nadministration system (CCAS) to ECCMIS.", "metadata": {"page": 159, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "10 \nThe Uganda Prisons \nService. \n2020/21 \n \n \nOpinion \nUnqualified \n \n \n\uf0b7 \nThe UPS prepared a strategic plan for the period 2020-2025 and was \napproved by the National Planning Authority on the 23rd of July 2021. \n\uf0b7 \nOut of the total receipts for the financial year of UGX.310.8Bn, only \nUGX.306.5Bn was spent by the entity resulting in an unspent balance of \nUGX.4.4Bn representing an absorption level of 98.6%. \n\uf0b7 \nI sampled fourteen (14) outputs with a total of eighty seven (87) \nactivities and expenditure of UGX.316.2Bn for assessment and noted that \nten (10) outputs with a total of fifty-seven (57) activities and expenditure", "metadata": {"page": 159, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "worth UGX.293.82Bn were fully quantified and four (4) outputs with a \ntotal of thirty (30) activities and expenditure worth UGX 22.36Bn were \ninsufficiently quantified \n\uf0b7 \nI noted that of the 57 quantified activities worth UGX293.82Bn assessed; \n35 activities representing 61% were fully implemented, 20 activities \nrepresenting 35% were partially implemented, while 2 activities \nrepresenting 4% were not implemented. \n\uf0b7 \nI noted that a sum of UGX. 40,6Bn was released to UPS for the \nsettlement of Domestic Arrears to suppliers under Covid-19 related \nfunding with all funds spent for settlement of arrears. \n\uf0b7 \nA trend analysis of the Service\u2019s domestic arrears over the past three \nyears showed a decreasing trend from UGX.65.97Bn in 2018/2019 to \nUGX.62.345Bn in 2020/2021. \n\uf0b7", "metadata": {"page": 159, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nI noted that UPS was only allocated UGX.40.6Bn (67.4%) for settlement \nof domestic arrears worth UGX.60.2Bn and paid for arrears worth \nUGX.54.8Bn with the additional funds worth UGX.14.2Bn diverted from \nplanned activities to pay for the arrears \n\uf0b7 \nAn assessment of service delivery revealed cases of overcrowding in \nprison cells with the congestion levels increasing from 291.5% in 2017/18 \nto 321.1% in 2020/2021. This compromises the welfare of the inmates \nand may result in a number of health risks such as the quick spread of \ndiseases and compromising on sanitation. The existing congestion has \nproved a challenge for the prisons\u2019 service when implementing Standard \nOperating Procedures (SOPs) to reduce the spread of COVID-19. It has \nalso posed a challenge in separating different categories of offenders to \nbreak the cyclic chain of crime and violence.", "metadata": {"page": 159, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nI noted that a total of 33 (12.7%) prisons stations are still using the \nbucket system of sanitation which may turn cells into a breeding centre \nfor diseases, resulting in the violation of the prisoners\u2019 rights \n\uf0b7 \nI noted cases of over stay of prisoners on remand with the prisoners\u2019", "metadata": {"page": 159, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "149 \n \nlength of stay on remand increasing from 10.5 to 18.8 months for capital \noffenders and from 2.6 months to 3.8 months for petty offenders from \n2016/17 to 2020/2021 respectively. For example out of the 32,409 \nprisoners on remand, a total of 13,933 prisoners had overstayed on \nremand \n\uf0b7 \nI observed challenges of staff accommodation which currently stands at a \ndeficit of 7,217 (65.1%) housing units with staff staying in temporary \nhouses/shelters/not accommodated \n\uf0b7 \nThe Service also faced challenges of under staffing where out of an \napproved organisation structure comprising of 49,470 staff, only 12,860 \n(26%) posts were filled, leaving a balance of 36,610 (74%) posts vacant. \nThis leads to high staff prisoner ratio and causes fatigue among the few \nstaff \n\uf0b7", "metadata": {"page": 160, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "staff \n\uf0b7 \nI noted that sixty-seven (67) of the prison stations did not have buses to \nenable safe and secure transportation of prisoners to court which resulted \ninto delayed delivery of prisoners to courts, transportation of high-risk \ninmates on open trucks, and prisoners and staff walking long distances to \nattend court. \n\uf0b7 \nI noted delays in completion of the Prisoners Management Information \nSystem (PMIS) which has delayed the enjoyment of anticipated benefits \nfrom the system. \n\uf0b7 \nI observed challenges in land management including encroachments, land \ndisputes and encumbrances. Out of 158 pieces of land of different sizes \nin the different parts of the country, only 52 pieces were surveyed and \ntitled, 17 pieces were surveyed but still not yet titled, while 89 pieces \nwere not yet surveyed. Furthermore, the UPS did not have land surveying \nequipment \n11 \nThe Law Development \nCentre. \n2020/21", "metadata": {"page": 160, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "2020/21 \n \nOpinion \nUnqualified \n \n\uf0b7 \nLDC had prepared the Strategic Plan aligned to NDP III and approved by \nNPA. \n\uf0b7 \nThe entity budgeted to collect NTR of UGX 13.503Bn during the year \nunder review. Only 12.205Bn was collected, representing a performance \nof 90% of the target. \n\uf0b7 \nLDC budgeted to receive UGX.28.16Bn out of which UGX.24.84Bn was \navailed, resulting in a shortfall of UGX.3.32Bn, which is 88.2% \nperformance of the budget. \n\uf0b7 \nOut of the total warrants of UGX., 24.84Bn received during the financial \nyear, UGX. 24.53Bn was spent by the entity resulting in an unspent", "metadata": {"page": 160, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "balance of UGX.0.31Bn, representing an absorption level of 99%. \n\uf0b7 \nFrom a sample of ten (10) outputs with a total of twenty-five (25) \nactivities and expenditure of UGX.24.53Bn, Four (4) outputs with a total \nof fifteen (15) activities and expenditure worth UGX.20.5Bn were fully \nquantified. One (1) output with a total of five (5) activities and \nexpenditure worth UGX.0.6Bn, was insufficiently quantified, and Five (5) \noutputs with a total of five (5) activities and expenditure worth UGX \n3.4Bn were not quantified at all. \n\uf0b7 \nI assessed the implementation of four (4) outputs that were fully \nquantified with a total of fifteen (15) activities worth UGX 20.5Bn and \nnoted that all the five (5) activities within this output were fully", "metadata": {"page": 160, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "implemented. Two (2) outputs with ten (10) activities worth UGX.19.2Bn \nwere partially implemented, the entity fully implemented six (6) activities, \nthree (3) activities were partially implemented, while one (1) activity \nremained unimplemented.", "metadata": {"page": 160, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "150 \n \n\uf0b7 \nThe entity submitted all performance reports after the deadline. \n\uf0b7 \nLDC had outstanding commitments brought forward totaling UGX. \n2,697,202,827 as at 30th June 2020. During the year under review, UGX. \n1,490,351,141 was paid, and UGX. 786,304,467 was accumulated, \nleaving an outstanding of UGX. 1,993,156,153 as at 30th June 2021. \n12 \nThe Uganda Registration \nServices Bureau \u2013\nLiquidation. \n2020/21 \n \n \nOpinion \nUnqualified \n \n\uf0b7 \nThe entity had a court appropriation of UGX.1.162Bn for the financial \nyear 2020/2021 and an appropriation by court brought forward from the", "metadata": {"page": 161, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "previous year 2019/2020 of UGX.0.640Bn totaling up to UGX.1.802Bn \nreceipts. \n\uf0b7 \nOut of the total funds available for expenditure of UGX.1.802Bn, \nUGX.1.277Bn was spent by the bureau resulting in an unspent balance of \nUGX.0.525, representing an absorption level of 70.9%. \n\uf0b7 \nI reviewed all the outputs and noted that the outputs were all adequately \nquantified. \n\uf0b7 \nOut of the six (6) outputs assessed, one (1) was fully implemented, while \nfive (5) were partially implemented. Five (5) outputs with twenty-four \n(24) activities worth UGX1.061Bn were partially implemented. \n\uf0b7 \nURSB did not prepare performance reports for liquidation. \n\uf0b7 \nI observed that the bureau had receivables carried forward from the", "metadata": {"page": 161, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "previous financial years amounting to UGX.6.243Bn that remained \noutstanding at the end of the financial year under audit. \n13 \nThe Uganda Registration \nServices Bureau -\nOperations. \n2020/21 \n \n \nOpinion \nUnqualified \n \n\uf0b7 \nThe URSB strategic plan was prepared and approved by NPA. \n\uf0b7 \nThe entity budgeted to collect NTR of UGX.47.31Bn but collected \nUGX.41.32Bn representing a performance of 87% of the target. \n\uf0b7 \nThe URSB budgeted to receive UGX. 26.871Bn out of which UGX. \n23.099Bn was availed, resulting in a shortfall of UGX.3.772Bn, which is \n14% of the budget. Further, the entity remained with an unspent", "metadata": {"page": 161, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "balance of UGX. 0.33Bn representing an absorption level of 99%. \n\uf0b7 \nOut of the seven (7) outputs sampled, five (5) were fully quantified, while \none (1) was insufficiently quantified and one (1) was not quantified at all. \n\uf0b7 \nOut of the five (5) outputs assessed, two (2) were fully implemented \nwhile three (3) were partially implemented. \n\uf0b7 \nSubmission of all the quarterly performance reports was made after the \ndeadline date. Also, inconsistencies were noted in the annual \nperformance report and the system-generated reports. For example, \nmanagement reported four (4) and two (2) patents to have been granted \nin the financial years of June 2020 and June 2021, respectively. Yet the \nsystem report analysis showed that no patent had been granted in the \nlast two financial years. \n\uf0b7 \nDespite a positive increase in the number of searches on the system,", "metadata": {"page": 161, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "there was a significant decline in the performance of industrial designs \nregistered, Local Trademarks renewed, Patents granted, and foreign \ntrademarks registered \n\uf0b7 \nI analysed the number of applications received and eventually registered \nfor the Utility model, patents and industrial designs and noted a \nsignificant difference in the number of applications that materialised to \nactual registrations. For instance, three (3) out of nineteen (19) Utility \nmodel applications were granted, two (2) out of the fifteen (15) Patent \napplications were granted, seventeen (17) out of the seventy-six (76)", "metadata": {"page": 161, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "151 \n \nwere granted. \n\uf0b7 \nI noted a decline in performance for activities planned under Civil \nRegistration; the number of churches registered declined by 38.8%. \nSimilarly, the number of Marriage returns FBOs, and Districts registered a \ndecline in the performance of 17.56%. \n\uf0b7 \nI noted shortcomings in the performance of the National Marriage \nregistration system such as; NMRS could not internally generate reports; \nfew staff are trained, incomplete information on certificates generated \nthrough the system, the system does not allow bulky payments, resulting \nin multiple bank charges to the customer, other systems of the Bureau \nlike on base are not integrated with NMRS. \n\uf0b7 \nURSB \nreceived \nCOVID \n19 \narrears \nsupplementary \nbudget \nof", "metadata": {"page": 162, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "budget \nof \nUGX.0.0318Bn, all of which was spent representing 100% of the budget \nabsorption. \n\uf0b7 \nThe Bureau had UGX.4.516Bn in domestic arrears, but it budgeted and \nwas warranted UGX.0.032Bn, leaving a balance of UGX.4.484Bn \nunbudgeted. URSB effected payments totaling UGX.1.216Bnresulting in \nexcess of UGX.1.184Bn above the approved budget. Domestic arrears \nincreased by UGX.3.055Bn (68%) from UGX.1.466Bn to UGX.4.516Bn as \nat June 2021. The arrears remained unsettled at the close of the year. \n\uf0b7 \nI reviewed the business registration system and noted the absence of an \ninbuilt mechanism to track and trace the movement and clearance of", "metadata": {"page": 162, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "queries raised regarding name reservations and applications. The entity \nstill has some processes that use manual backup. There were delays in \nthe development of the Quality Management system ISO 9001(QMS) \n14 \nThe Ministry of Internal \nAffairs. \n2020/21 \n \n \nOpinion \nUnqualified \n \n\uf0b7 \nThe Ministry of Internal Affairs prepared a strategic plan for 2020-2025. \nHowever, it had not been approved by the National Planning Authority at \nthe time of audit. \n\uf0b7 \nOut of the total receipts for the financial year of UGX.51.5Bn, only \nUGX.50.8Bn was spent by the entity resulting in an unspent balance of \nUGX.0.7Bn representing an absorption level of 99%. \n\uf0b7 \nI sampled forty-one (41) outputs with a total of one hundred and ninety-", "metadata": {"page": 162, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "seven (197) activities and expenditure of UGX.37.7Bn for assessment and \nnoted that fifty-nine (59) activities with expenditure worth UGX.11.30Bn \nwere fully quantified. one hundred thirty-seven (137) activities with worth \nUGX.26.1Bn were insufficiently quantified, and one (1) activity with \nexpenditure worth UGX.0.24Bn was not quantified at all \n\uf0b7 \nAn assessment of service delivery revealed that in the financial year \n2020/2021, the Ministry extended support to 299 victims of human \ntrafficking, which is only 45% of the total victims of human trafficking as \nreported by the Uganda Police Force. An assessment of the Monitoring of \nNGOs revealed that although the Ministry had registered 2,249 NGOs, the \nMinistry could only carry out offsite inspections of just 145 NGOs or 1% \nof all registered NGOs. \n\uf0b7 \nA trend analysis of the Ministry domestic arrears over the past three", "metadata": {"page": 162, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "years showed an increasing trend from UGX.0.078Bn in 2018/2019 to \nUGX.1.45Bn in 2020/2021. \n\uf0b7 \nThe Ministry paid for repair services worth UGX.13,237,877 without being \ncertified by the responsible technical officer to confirm receipt of the \nservices. The Ministry also procured stores worth UGX.88,444,071, which \nwere not recorded in the Ministry\u2019s stores records. \n\uf0b7 \nI noted that procurements worth UGX.88,844,071 were not recorded in", "metadata": {"page": 162, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "152 \n \nthe stores\u2019 ledgers nor witnessed by internal audit, making it difficult to \nverify the deliveries. \n\uf0b7 \nThe Ministry of Internal Affairs has an approved structure of 224 \npositions, out of which 105 are filled, resulting in a shortfall of 119 \n(representing 47%)., including critical positions such as Commissioner \nCompliance, Assistant Commissioner Compliance, Senior Internal Auditor, \nCommissioner and Assistant Commissioner for the Social Integration \ndepartment were vacant. \n15 \nUganda Police Force. \n2020/21 \n \n \nOpinion \nUnqualified \n \n \n\uf0b7 \nUganda Police Force prepared a strategic plan for the period 2020-2025. \nHowever, the plan had not yet been approved by the National Planning \nAuthority at the time of audit . \n\uf0b7 \nUganda Police Force budgeted to collect NTR of UGX.24.06Bn during the", "metadata": {"page": 163, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "year. However, by the end of the year, UPF had collected a total of \nUGX.33.80Bn. \n\uf0b7 \nOut of the total GoU receipts for the financial year of UGX.1,043.5Bn, \nonly UGX.1,040.2Bn was spent by the entity resulting in an unspent \nbalance of UGX.3.4Bn representing an absorption level of 99.7%. As a \nresult, I noted that of the twenty-eight (28) fully quantified activities \nworth UGX.207.3Bn assessed, three activities representing 11% were \nfully implemented, while 25 activities representing 89% were partially \nimplemented. \n\uf0b7 \nI noted that UPF received off-budget financing amounting to UGX.12.4Bn, \nwhich was not declared to the Treasury and therefore not appropriated to \nthe entity by Parliament. \n\uf0b7", "metadata": {"page": 163, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nI assessed the extent of service delivery and noted that the coverage of \ncanine services had only reached 68 (or 43%) out of Uganda\u2019s 157 \npolicing districts, affecting the extent of canine-related investigations and \nservice delivery in the areas not yet covered. \n\uf0b7 \nI assessed the progress on the investigation of crime by the Uganda \nPolice Force and noted that the entity had only completed investigations \nfor 331,584 (40.7%) cases, leaving a backlog of 445,976 cases. Of the \n445,976 backlogs of cases, 291,060 (65%) have been pending for three \n(3) or more years. \n\uf0b7 \nAlthough Uganda Police has completed Phase 1 and 2 of the project for \nthe installation of CCTV cameras, I observed that the Force does not have \na budget for the maintenance of the installed camera infrastructure. \n\uf0b7", "metadata": {"page": 163, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nUPF received a sum of UGX.49.22Bn as \u2018Covid-19 related\u2019 funding, all of \nwhich was utilised for the purpose for which it was released. \n\uf0b7 \nAn assessment of the performance of the Express Penalty Scheme \nrevealed that whereas tickets worth UGX.120.8Bn have been issued in \nthe period from 2015/2016 to 2020/2021, only UGX.90.Bn has so far \nbeen \ncollected, \nresulting \nin \nuncollected \narrears \namounting \nto \nUGX.29.98Bn. \n\uf0b7 \nA trend analysis of domestic arrears over the past three years shows a \ndecreasing trend from UGX.161.0Bn in 2017/2018 to UGX.114.1Bn at the \nclose of 2020/2021. \n\uf0b7", "metadata": {"page": 163, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nA total of 380 staff continued to receive salaries amounting to \nUGX.1,795,637,954 after their retirement date, as recorded in the \nIntegrated Personnel and Payroll System (IPPS). \n\uf0b7 \nUPF does not have an approved land management policy. In addition, a \ntotal of 408 out of the 1,078 parcels of land owned by UPF are neither", "metadata": {"page": 163, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "153 \n \nsurveyed nor titled. \n16 \nNational Identification and \nRegistration Authority \n(NIRA). \n2020/21 \n \n \n \nOpinion \nUnqualified \n \n\uf0b7 \nNIRA prepared a strategic plan for the period 2020-2025, which was \napproved by the National Planning Authority. However, the plan is yet to \nbe approved by the Board of the Authority for implementation. \n\uf0b7 \nNIRA budgeted to collect NTR of UGX.15.0Bn during the year. However, \nby the end of the year, NIRA had collected a total of UGX.3.66Bn. \n\uf0b7 \nOut of the total GoU receipts for the financial year of UGX.55.2Bn, only \nUGX.53.3Bn was spent by the entity resulting in an unspent balance of", "metadata": {"page": 164, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "UGX.1.7Bn representing an absorption level of 97%. As a result, I noted \nthat of the twenty-four (24) fully quantified activities worth UGX.70.6Bn \nassessed; 10 activities representing 42% were fully implemented, 12 \nactivities representing 50% were partially implemented, while 2 activities \nrepresenting 8% were not implemented at all. \n\uf0b7 \nI assessed the extent of service delivery and noted that only 11% of the \nplanned 1,712,880 citizens were registered during the year, while only \n30% of the planned 2,000,000 National IDs were issued. \n\uf0b7 \nI assessed the progress on registration of births and deaths and observed \nthat NIRA registered 90% of the planned 960,000 births and only 1.3% \nof the 960,000 deaths. \n\uf0b7 \nA review of the progress of registering citizens indicated that as of", "metadata": {"page": 164, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "December 2021, 29,713,029 applications, or 69% of all Ugandans, had \napplied to NIRA for registration. Of these, only 25,557,448 or 86% of the \napplicants had been registered, and only 16,258,521 (63.6%) have been \nissued with National Identity cards. \n\uf0b7 \nOnly 16.3 million cards out of the over 19 million national identity cards \nso far printed have been claimed, leaving over 2.7 million cards unissued \nor unclaimed. \n\uf0b7 \nAt the time of audit (December 2021), the Authority had over 4.3 million \napplications yet to be processed. Of these, 3.2 million applications were \nstill being processed, while 1.1 million applications have been rejected. \n\uf0b7 \nNIRA plans to register at least 28,000 aliens annually and issue them with \nthe relevant identification cards. From 2015 to date, the entity has only", "metadata": {"page": 164, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "received 16 applications for alien IDs, and no Alien ID has been issued. \n\uf0b7 \nA reviewed the outcome of the initiative to register learners (or school \ngoing children within their schools) undertaken in 2017/2018 to \ndetermine whether all registered learners had been issued with NINs. I \nnoted that records of over 1.8 million (or 19%) learners\u2019 who registered \nduring that exercise had been rejected and thus not processed for \nissuance of NINs and Identification Cards. \n\uf0b7 \nNIRA failed to procure over 4,500,000 million IDs from the Uganda \nSecurity Printing Company as the Joint Venture Agreement required. As a \nresult, the entity has recognised a contingent liability of UGX.33.5Bn. \n17 \nAmnesty Commission \n2020/21 \n \nOpinion \nUnqualified \n \n\uf0b7", "metadata": {"page": 164, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nThe entity budgeted to receive UGX.4.016Bn, out of which UGX.3.868Bn \nwas warranted, resulting in a shortfall of UGX.0.147Bn, which is 3.7% of \nthe budget. \n\uf0b7 \nOut of the total receipts for the financial year of UGX.3.199Bn, all of the \nfunds were spent by the entity representing an absorption level of 100%. \nAs a result, I noted that of the three (3) quantified activities worth \nUGX.1.297Bn assessed, all of three (3) activities were partially \nimplemented.", "metadata": {"page": 164, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "154 \n \n \nSECURITY SECTOR \n \n1 \nNEC AGRO SMSC LTD \n2019/2020 \n \nOpinion \nUnqualified \n \n\uf0b7 \nAccounts receivables increased by 229% from UGX.3.080bn in the \nfinancial year 2018/19 to UGX.7.062bn in financial year 2019/20. \nOutstanding debtors represent idle resources which could be used in the \nimplementation of planned activities. \n\uf0b7 \nI noted weaknesses in the utilisation of the Corporation\u2019s tractors which \ninclude; the tractors have remained parked for a long period of time \nhence losing value, the entity spent a sum of UGX.8,094,000 on tractor \nrepairs but no revenue was generated, having been acquired in 2010, \nthese tractors are due for disposal however the disposal process had not \nstarted. \n\uf0b7", "metadata": {"page": 165, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "started. \n\uf0b7 \nI reviewed Financial Performance of NEC AGRO SMC LTD and observed \nthe following: \n\uf0b7 \nThe Corporation had an operating margin of 6.8% which is below the \nrecommended 15%. This implies that the subsidiary has a lower \nproportion of revenues covering expenses rather than profits or income. \n\uf0b7 \nThe Corporation made profits of UGX.2.061bn after tax in the year under \nreview up from profits of UGX.0.661bn realized in the previous year (a \nrise of 211.5%). The Corporation had positive retained earnings of \nUGX.0.724bn as at the end of the financial year. This will enable the \ncorporation to meet future contingencies or investments in growth. \n\uf0b7 \nThe return on assets for the Corporation increased to 19.1% from 13.1% \nrecorded in the previous year which is generally considered good given \nthat it is over 5%. \n\uf0b7", "metadata": {"page": 165, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nThe Corporation had a current ratio of 2.7 for the year under review \nwhich was above the desirable ratio of 1.5 implying that the Corporation \nis not efficiently using its current assets. \n\uf0b7 \nThe Corporation had a debt ratio of 35% as at the end of the financial \nyear compared to 2.8% in the previous year implying that the majority of \nthe Corporation assets are financed by debt. \n\uf0b7 \nTwo subsidiaries i.e. NEC Tractor Hire Scheme and NEC Tractor Project to \nform NEC AGRO SMC LTD were merged to form NEC AGRO SMC LTD. \nAlthough the Corporation is now in operation, it has not been approved \nby the Uganda Registration Services Bureau. \n2 \nNEC AGRO SMSC LTD \n2020/2021 \n \nOpinion \nUnqualified \n \n\uf0b7", "metadata": {"page": 165, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nReceivables increased by 23.2% from UGX.6,671,059,244 in the F/Y \n2019/20 to UGX.8,219,802,915 in the F/Y 2020/21 and a number of \ndebtors had been outstanding since financial year 2018/19 to-date. \n\uf0b7 \nNEC AGRO SMC LTD has an operating margin of 8.5% which is below the \ndesirable 15%. This implies that the subsidiary has a lower proportion of \nrevenues covering expenses rather than profits or income. \n\uf0b7 \nThe Corporation had a current ratio of 11.4 for the year under review \nwhich was way above the desirable ratio of 1.5. I further noted that the \ncurrent ratio for the year increased by 322% from a ratio of 2.7 recorded \nin the previous year. \n3 \n(NEC) Farm Katonga \nLimited. \n2019/2020", "metadata": {"page": 165, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "2019/2020 \n \nOpinion \nUnqualified \n\uf0b7 \nThe Corporation had an operating margin of 2.1%, which is below 50% \nwhich implies that the Corporation is having a lower proportion of \nrevenues covering expenses rather than profits or income. \n\uf0b7 \nThe Corporation had negative retained earnings of UGX.1,474,703,986 as \nat the end of the financial year. This may affect the entity\u2019s ability to", "metadata": {"page": 165, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "155 \n \n \nmeet future contingencies or investments in growth. \n\uf0b7 \nThe return on assets for the Corporation increased by 0.01% from 0.55% \nrecorded in the previous year, the return was still very low. This implies \nthat the Corporation is not making enough income from the use of its \nassets. \n\uf0b7 \nThe Corporation had a current ratio of 389 for the year under review \nwhich was far above the desirable range of 1.5 \u2013 2.0. It reduced by 59% \nfrom a ratio of 938 realized in the previous year. \n4 \n(NEC) Farm Katonga \nLimited, 2020/2021 \n \nOpinion \nUnqualified \n \n \n\uf0b7 \nThe Corporation has an operating margin of 1.2%, which is below the \n50% compared to 2.1% realized in the previous year 2019/20", "metadata": {"page": 166, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "representing a reduction of 43% which implies that the Corporation is \nhaving a lower proportion of revenues covering expenses rather than \nprofits or income. \n\uf0b7 \nThe Corporation made profits of UGX.32,789,541 after tax in the year \nunder review up from profits of UGX.30,230,727 realized in the previous \nyear representing a rise in profits of 8.5%. However the Corporation had \nnegative retained earnings of UGX.1,441,914,445 as at the end of the \nfinancial year which may affect the entity\u2019s ability to meet future \ncontingencies or investments in growth. \n\uf0b7 \nThe corporation posted a return on assets of only 0.4% down from \n0.56% posted in the previous year, representing a reduction in ROA of \n28.6%. This implies that the Corporation is not making enough income \nfrom the use of its assets. \n\uf0b7", "metadata": {"page": 166, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nThe Corporation had a current ratio of 2,123 for the year under review \nwhich was far above the desirable range of 1.5 \u2013 2.0. The very high \ncurrent ratio implies that the Corporation is not efficiently using its \ncurrent assets or its short-term financing facilities. \n\uf0b7 \nA loan advances worth UGX.808,940,140 was extended to NEC AGRO \nSMC LTD on 10/03/2021 after committing to pay back the short term loan \nin 4 weeks. It was however observed that at the time of writing this \nreport in December 2021, the loan advance had not been repaid. \n\uf0b7 \nIt was established that NEC was involved in land disputes with various \nencroachers at NEC Farm Katonga which may result into loss of land if \nnot promptly handled. \n5 \nNEC Headquarter \n2019/2020 \n \nOpinion \nUnqualified \n \n\uf0b7", "metadata": {"page": 166, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nThe \nCorporation \nhad \noutstanding \ndebtors \namounting \nto \nUGX.1,796,916,916 some of which have been outstanding for a number \nof years. Continued reflection of the debtors\u2019 amount in the financial \nstatements when their recovery seems to be remote misleads users of \nthe accounts. \n\uf0b7 \nThe Corporation owns Plot No. 1018 which is about 10 acres of land at \nKampala Industrial and Business Park in Namanve allocated to it by \nUganda Investment Authority in the year 2005 which has remained \nundeveloped for about 15 years due to lack of an access road. \n6 \nNEC Headquarters \n2020/2021 \n \nOpinion \nQualified \n \n \n \n\uf0b7 \nI \nobserved \nthat \nNEC", "metadata": {"page": 166, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "that \nNEC \nPharmaceutical \ninvestment \nreduced \nto \nUGX.1,118,877,451 from UGX.2,460,326,736 by the end of the financial \nyear \n2020/2021 \nbecause \nmachinery \nand \nfurniture \nvalued \nat \nUGX.1,341,449,285 was to be disposed of. The Ministry of Works expert \nput the value of the machinery and furniture to be disposed of at \nUGX.413,720,000 implying that value for sale was overstated by \nUGX.927,729,285. \n\uf0b7 \nIn the FY 2017, NEC was allocated road construction and maintenance", "metadata": {"page": 166, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "156 \n \nequipment from Ministry of Works and Transport as one way of \nenhancing its competitiveness in the market. I however noted that the \ndepreciation charge related to the road construction and maintenance \nequipment was not disclosed in the statement of profit and loss and other \ncomprehensive income contrary to the existing financial reporting \nstandards. \n\uf0b7 \nDebtors worth UGX.757,989,660 were reported among which are sundry \ndebtors and prepayments worth UGX.142,254,800 which have been \noutstanding for a period of more than one year. \n\uf0b7 \nPayable amounting to UGX.10,010,447 have remained outstanding for \nover ten years. \n\uf0b7 \nIn 2005, Iran Agro Industries was given a lease for 17 square miles of \nland at NEC Farm Katonga. The initial 5-year lease elapsed without", "metadata": {"page": 167, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "fulfilment of the lease obligations by Iran Agro Industries and the lease \nwas terminated but the land titles were not repossessed by NEC. \n\uf0b7 \nIt was observed that there was no Annual General Meeting held in the \nlast five years and the entity\u2019s draft strategic plan had not been reviewed \nby NPA to align to NDP III for onward approval by the Board of Directors. \n7 \nNEC Luwero Industries \nLimited, 2019/2020 \n \nOpinion \nUnqualified \n \n\uf0b7 \nThe \nCorporation \nhad \noutstanding \ntrade \ndebtors \namounting \nto \nUGX.791,065,997 at the close of the financial year 2019/2020 some of \nwhich have been outstanding for over the past three financial years. \nUncollected debtors represent an idle resource that would be put to use", "metadata": {"page": 167, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "by the entity to enhance its operations. \n\uf0b7 \nThe Corporation had outstanding trade creditors amounting to \nUGX.33,967,430 some of which have been outstanding for over three \nfinancial years. Failure to settle creditors for such long periods could lead \nto litigation costs for the entity and impact on the going concern as the \ncreditors may cease doing business with the entity. \n\uf0b7 \nNEC has established an e-waste project at 6th Street Industrial Area \nmanaged by Luwero Industries Ltd; a subsidiary of NEC and over \nUGX.200 million was spent on renovation of structures where the e-waste \nproject was to be established. I noted that NEC is yet to acquire a land \ntitle for the space where this project is established. \n\uf0b7 \nThe Corporation has an operating margin of 30%, which is below 50% \ncompared to 3% realized in the previous year 2018/19 representing an \nincrease of 900%. This implies that the Corporation is having a lower", "metadata": {"page": 167, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "proportion of revenues covering expenses rather than profits or income. \n\uf0b7 \nI noted that the Corporation made profits of UGX.3,380,139,206 after tax \nin the year under review up from profits of UGX.206,028,828 realized in \nthe previous year representing a rise in profits of 1,541%. I further noted \nthat \nthe \nCorporation \nhad \nnegative \nretained \nearnings \nof \nUGX.19,235,077,990 as at the end of the financial year. \n\uf0b7 \nI noted that although the return on assets for the Corporation increased \nby 11.5% from 0.95% recorded in the previous year, the return was still \nvery low. This implies that the Corporation is not making enough income \nfrom the use of its assets. \n\uf0b7 \nI noted that the Corporation had a current ratio of 5.2 for the year under", "metadata": {"page": 167, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "review which was above the desirable ratio of 1.5. I further noted that \nthe current ratio for the year increased by 4% from a ratio of 5.0 \nrecorded in the previous year. \n\uf0b7 \nThe Corporation had a debt ratio of 5.3% as at the end of the financial \nyear under review implying that majority of Corporation assets are", "metadata": {"page": 167, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "157 \n \nfinanced by debt. In comparison with the previous year, the debt ratio \nwas 6.6% indicating a reduction of 1.3% in the debt over the one year \nperiod. \n8 \nNational Enterprise \nCorporation (NEC) Luwero \nIndustries Limited. \n2020/21 \n \nOpinion \nUnqualified \n \n \n \n\uf0b7 \nThe entity had outstanding trade debtors amounting to UGX.491,697,278 \nat the close of the financial year 2020/2021, some of which have been \noutstanding for over the past three financial years. Uncollected debtors \nrepresent an idle resource that would be put to use by the entity to \nenhance its operations. \n\uf0b7 \nThe Corporation had outstanding trade creditors amounting to", "metadata": {"page": 168, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "UGX.744,085,592 some of which have been outstanding for over three \nfinancial years. Failure to settle creditors for such long periods could lead \nto expensive litigation costs for the entity and impact on the going \nconcern as the creditors may cease doing business with the entity. \n\uf0b7 \nThe Corporation had negative retained earnings of UGX.15,552,895,876 \nas at the end of the financial year. This may affect the entity\u2019s ability to \nmeet future contingencies or investments in growth. \n\uf0b7 \nThe corporation posted a return on assets of only 10% down from 12.5% \nposted in the previous year, representing a reduction in ROA of 20%. \nThis implies that the Corporation is not making enough income from the \nuse of its assets. \n\uf0b7 \nThe Corporation had a current ratio of 11.9 for the year under review \nwhich was above the desirable ratio of 1.5. A very high current ratio", "metadata": {"page": 168, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "implies that the Corporation is not efficiently using its current assets or its \nshort-term financing facilities. \n\uf0b7 \nThe Corporation had a debt ratio of 2.1% as at the end of the financial \nyear under review implying that majority of Corporation assets are \nfinanced by debt. \n9 \nNEC UZIMA. \n2019/2020 \n \nOpinion \nUnqualified \n \n\uf0b7 \nI noted that management procured major factory materials worth \nUGX.1,645,898,731 without adhering to neither the existing procurement \nprocesses nor applying for accreditation of an alternative system \nspecifying existence of unique circumstances that could have prevented \nadherence to the requirements of PPDA Act. \n\uf0b7 \nNEC UZIMA LTD has an operating margin of 5.8% which is below 15%. \nThis compared to 1.3% realised in the previous year 2018/19 represented", "metadata": {"page": 168, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "an increase of 346% which puts the company in an awful situation. \n\uf0b7 \nDespite NEC Uzima Ltd making profits, the company had negative \nretained earnings of UGX.231,489,309 as at the end of the financial year. \nIf this is not improved in the future, entity\u2019s ability to meet future \ncontingencies or investments in growth may be affected. \n\uf0b7 \nI noted that the return on assets for the Corporation increased to 6.3% \nfrom 2.3% recorded in the previous year which is generally considered \ngood given that it is over 5%. \n\uf0b7 \nThe Corporation had a current ratio of 0.55 for the year under review \nwhich was way below the desirable ratio of 1.5. The Corporation is not \nable to satisfy its current liabilities/short-term obligations without raising \nexternal capital. \n\uf0b7 \nThe Corporation had a debt ratio of 61% as at the end of the financial", "metadata": {"page": 168, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "year under review implying that majority of Corporation assets are \nfinanced by debt. This implies that the company doesn\u2019t have enough \nfunds to meet its current debt obligations and may find it hard to pay a \nreturn on government investments.", "metadata": {"page": 168, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "158 \n \n10 \nNATIONAL \nENTERPRISE \nUZIMA LTD, 2020/2021 \n \nOpinion \nUnqualified \n \n \n\uf0b7 \nPayables increased from UGX.1,042,752,671 in the F/Y 18/19 to \nUGX.1,744,963,543 in 19/20 and further to UGX.2,052,449,538 in the \nyear under review. The increasing trend of payables could result into an \nuncontrollable level of payables which greatly affects the credit \nworthiness of the entity. \n\uf0b7 \nThe Corporation had negative retained earnings of UGX.88,435,269 as at \nthe end of the financial year. This may affect the entity\u2019s ability to meet \nfuture contingencies or investments in growth. \n\uf0b7", "metadata": {"page": 169, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nThe Corporation had a current ratio of 2.3 for the year under review \nwhich is above the desirable ratio of 1.5. The high current ratio implies \nthat the Corporation is not efficiently using its current assets or its short \nterm financing facilities. \n\uf0b7 \nThe Corporation had a debt ratio of 53.5% as at the end of the financial \nyear under review which is considered undesirable. This implies that the \ncompany does not have enough funds to meet its current debt \nobligations and may find it hard to pay a return on Government \ninvestment. \n11 \nNEC Construction Works \nand Engineering Limited, \n2019/2020 \n \nOpinion \nUnqualified \n \n\uf0b7 \nNEC Works Ltd had outstanding trade debtors of UGX.10,074,717,689 as \nat the close of the financial year 2019/2020. Outstanding debtors", "metadata": {"page": 169, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "represent an idle asset that would be put to use by the entity to enhance \nits operations. \n\uf0b7 \nNational Enterprise Corporation (NEC) engaged into an MoU with Uganda \nFree Zone Authority (UFZA) in June 2019 for construction of the Free port \nzone facilities at Entebbe international airport. I observed that as at \n30/06/2020, the completion status was barely at 30% with expected date \nof completion in June 2021. \n\uf0b7 \nThe Corporation has an operating margin of 9%, which is below 50% \ncompared to 12.5% realized in the previous year 2018/19 representing a \nreduction of 28%. This implies that the Corporation is having a lower \nproportion of revenues covering expenses rather than profits or income. \n\uf0b7 \nThe Corporation made profits of UGX.2,094,813,036 after tax in the year \nunder review up from profits of UGX.1,298,330,782 realized in the", "metadata": {"page": 169, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "previous year representing a rise in profits of 61%. \n\uf0b7 \nThe return on assets for the Corporation increased by 5% from 5.8% \nrecorded in the previous year, the return was still very low. This implies \nthat the Corporation is not making enough income from the use of its \nassets. \n\uf0b7 \nThe Corporation had a current ratio of 1.3 for the year under review \nwhich was below the desirable ratio of 1.5. I further noted that the \ncurrent ratio for the year increased by 12% from a ratio of 1.16 recorded \nin the previous year. The low current ratio implies that the Corporation \nhas limited ability to meet short-term obligations without raising external \ncapital. \n\uf0b7 \nThe Corporation had a debt ratio of 79% as at the end of the financial \nyear under review implying that majority of Corporation assets are \nfinanced by debt. This implies that the company does not have enough \nfunds to meet its current debt obligations and may find it hard to pay a", "metadata": {"page": 169, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "return on government investments. \n12 \nNational Enterprise \nCorporation - Construction, \nWorks and Engineering Ltd \n2020/21 \n\uf0b7 \nNEC Works Ltd had outstanding trade debtors of UGX.2,961,747,233 as \nat the close of the financial year 2020/2021 some of which have been \noutstanding for more than one year. I was not availed any recovery plans", "metadata": {"page": 169, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "159 \n \n \nOpinion \nUnqualified \n \n \nnor any initiatives taken by management to recover the debts. \n\uf0b7 \nThe Corporation had an operating margin of 11%, which is below 15% \ncompared to 9% realized in the previous year 2019/20 representing an \nincrease of 22%. This implies that the Corporation is having a lower \nproportion of revenues covering expenses rather than profits or income. \n\uf0b7 \nThe Corporation had a current ratio of 1.4 for the year under review \nwhich was below the desirable ratio of 1.5. The low current ratio implies \nthat the Corporation has limited ability to meet short-term obligations \nwithout raising external capital. \n\uf0b7 \nThe Corporation had a debt ratio of 69% as at the end of the financial \nyear under review implying that majority of Corporation assets are \nfinanced by debt. \n13 \nUganda Air Cargo \nCorporation", "metadata": {"page": 170, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Uganda Air Cargo \nCorporation \n2019/2020 \n \nOpinion \nUnqualified \n\uf0b7 \nThe Corporation had outstanding debtors of UGX.8,174,344,548 as at \n30th June, 2020. UGX.8,159,631,016 representing 99.8% of the debtors \nreported has been outstanding for a period of more than 5 years. The \nuncollected debtors constitute more than 65% of the total current assets. \n\uf0b7 \nThe Corporation had outstanding trade payables amounting to \nUGX.25,276,330,330 as at 30th June, 2020 with over UGX.13bn having \nbeen outstanding for over three financial years. \n\uf0b7 \nManagement budgeted to collect revenue of USD.9,750,409 from its 8 \nrevenue streams but only USD.444,407 was realized resulting into under", "metadata": {"page": 170, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "collection of USD.9,306,004. The under collection constituted 95% of the \nbudgeted revenue. \n\uf0b7 \nIn keeping in line with the Corporation\u2019s vision, major investment projects \nwere envisaged in the 10 year plan period but a review of the entity work \nplans and operations revealed that none of the projects has been \nimplemented despite being in its 5th year of implementation. \n\uf0b7 \nThe Corporation made a loss of UGX.12.6 Bn after tax in the year under \nreview up from a loss of UGX.3.7 Bn realized in the previous year \nrepresenting a rise in losses of 238%. I further noted that the \nCorporation had negative revenue reserves of UGX.16.331 Bn as at the \nend of the financial year. This may affect the entity\u2019s ability to meet \nfuture contingencies or investments in growth. \n\uf0b7 \nThe Corporation had a current ratio of 0.5 for the year under review", "metadata": {"page": 170, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "which was below the desirable ratio. The low ratio implies that the \nCorporation has limited ability to meet short term obligations without \nraising external capital. \n\uf0b7 \nThe Corporation had a debt ratio of 30.6% as at the end of the financial \nyear under review which is below the desirable of 50% and above \nimplying that majority of Corporation assets are financed by debt. \n\uf0b7 \nAn audit inspection established that the Corporation did not have an \noperating Aircraft to do business since most of them had been grounded \nunder different circumstances. \n14 \nUganda Air Cargo \nCorporation, 2020/2021 \n \nOpinion \nUnqualified \n\uf0b7 \nMoFPED released UGX.46,048,485,223 through MoDVA for capitalisation \nof UACC but MoDVA transferred UGX.42,511,285,223 leaving a balance of", "metadata": {"page": 170, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "UGX.3,537,200,000. It was observed that UACC with the approval of the \nBoard of Directors agreed to reallocate UGX.28,647,537,490 to fund new \npriorities other than those for which the funds were appropriated. \n\uf0b7 \nA review of the ten (10) year Strategic Business and Investment Plan \n2016 to 2027 revealed that out of the planned seven (7) targets/goals, \none (1) had been fully achieved, three (3) were partially achieved while", "metadata": {"page": 170, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "160 \n \nthree (3) were not achieved at all. \n\uf0b7 \nManagement created an additional position of \u201cPrincipal Director\u201d to \noversee the Directorates of Flight operations and Maintenance \nwhich is not in the established structure and is contrary to The Civil \nAviation Regulations 2014, section 13. \n\uf0b7 \nUACC is a statutory corporation that is supposed to undertake \nprocurements in accordance with PPDA Law and its Regulations. I \nobserved that procurements are normally undertaken as and when the \naircrafts breakdown and as such did not follow the formal procurement \nprocedures. \n\uf0b7 \nUACC signed a contract on 20th April, 2021 with National Enterprise \nCorporation (NEC) for construction of the UACC HQ offices for a sum of \nUGX.1.097Bn and the expected project completion date was 19th \nOctober, 2021. I observed that unsecured advances of UGX.1.04Bn", "metadata": {"page": 171, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "(95%) of the contract sum had been paid to NEC by closure of the \nfinancial year 30th June 2021. Audit inspection carried out on 18th \nOctober, 2021 observed that construction works were behind schedule. \n\uf0b7 \nUACC to-date does not have an operating Aircraft to do business since \nmost of them had been grounded or not operational under different \ncircumstances. \n\uf0b7 \nThe Corporation had negative retained earnings/revenue reserves of \nUGX.24.03Bn as at the end of the financial year. This may affect the \nentity\u2019s ability to meet future contingencies or investments in growth. \n15 \nState House. \n2020/21 \n \nOpinion \nUnqualified \n\uf0b7 \nThere was a shortfall in NTR collections amounting to UGX.0.573.4bn \nrepresenting 64%. \n\uf0b7 \nI assessed 13 outputs with a total of 45 activities and actual expenditure", "metadata": {"page": 171, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "of UGX.345.4Bn and observed that 9 outputs were fully quantified, 3 \noutputs were insufficiently quantified while 1 output was not quantified at \nall. \n\uf0b7 \nI further assessed the nine (9) out puts that were fully quantified with a \ntotal of 27 activities worth UGX.242.4bn and observed that 6 outputs \nwere fully implemented while 3 outputs were partially implemented. \n\uf0b7 \nIn compliance with Section 24 of the Public Finance Management Act, \n2015 (Classified Expenditure), expenditure of UGX.546,349,392,500 that \nrelates to classified expenditure is to be audited separately and a \nseparate audit report issued. \n\uf0b7 \nUGX.116m was budgeted for domestic arrears during the year under \naudit despite failure to disclose outstanding domestic arrears in the \nprevious years. \n\uf0b7 \nA review of the Ministerial policy statement for the financial year 2020/21", "metadata": {"page": 171, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "revealed that the entity did not prepare a comprehensive vehicle \nutilisation report for the period as required by Section 15(h)) of the Public \nFinance and Management Act, 2015, as amended. \n16 \nOffice of the President \n \nOpinion \nUnqualified \n\uf0b7 \nThe entity had prepared a draft strategic plan which was submitted to \nalign the plan to NDP III upon which the certificate of compliance will be \nissued. \n\uf0b7 \nOut of the budgeted revenue of UGX.525,000,000 for the year 2020/21; \nUGX.423,827,920 was collected representing performance of 80% of the \ntarget. \n\uf0b7 \nOut of the total warrants for the financial year of UGX.202,499,917,566,", "metadata": {"page": 171, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "161 \n \nUGX.201,682,707,928 was spent by the entity resulting in an unspent \nbalance of UGX.817,209,638 representing absorption level of 99.6%. \n\uf0b7 \nI assessed the implementation of all the 19 out puts that were fully \nquantified with a total of 100 activities worth UGX.92.2 bn. and noted the \nfollowing: \n\uf0b7 \nTwelve (12) outputs with a total of seventy eight (78) activities worth \nUGX.62.1bn were fully implemented. \n\uf0b7 \nFour (4) outputs with a total of fifteen (15) activities worth UGX.16.0bn \nwere partially implemented. \n\uf0b7 \nThree (3) outputs with a total of seven (7) activities worth UGX.14.7bn \nwere not implemented at all. \n\uf0b7 \n \n\uf0b7", "metadata": {"page": 172, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \n \n\uf0b7 \nOut of the planned 27 strategic targets/goals, 23 targets had been fully \nachieved while 4 were not achieved at all. \n\uf0b7 \nOut of the budgeted revenue of UGX.0.52bn for the year 2019/20; only \nUGX.0.20bn was collected representing performance of only 3.8% of the \ntarget. \n\uf0b7 \nOut of the total receipts for the financial year of UGX.2.17bn, UGX.2.11bn \nwas spent by the entity resulting in an unspent balance of UGX.5.633bn \nrepresenting an absorption level of 97.4%. \n\uf0b7 \nI assessed a sampled of 19 outputs with a total of 175 activities and \nactual expenditure of UGX.94Bn which were fully quantified by \nmanagement. I observed that; 11 outputs with a total of 69 activities", "metadata": {"page": 172, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "worth UGX.77.2Bn were fully implemented. 2 outputs with a total of 21 \nactivities worth UGX.18.5Bn were partially implemented. \n\uf0b7 \nI examined supplementary funding received by the Office for COVID 19 \ninterventions and observed anomalies which included under absorption of \nthe funds, failure to quantify activities implemented, inappropriate \nprocurement methods and funds not accounted for. Specifically for \nmanagement of quarantine centres, I observed that items were procured \nat varying prices and they were not taken on charge. \n\uf0b7 \nArrears totalling to UGX 30,549,780,185 remained unsettled at close of \nthe year. Further, UGX.28,431,892,310 was provided for settlement of \ndomestic arrears yet domestic arrears brought forward from the prior \nyear were UGX.58,981,672,495. \n\uf0b7 \nShortcomings were observed in the Ministry\u2019s fleet management which", "metadata": {"page": 172, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "included incomplete recording of motor vehicles in the assets register, \nfailure to use motor vehicle logbooks, lack of motor vehicle annual \ninspections, lack of adequate vehicles for allocation to RDCs, gaps in \ndrivers\u2019 competences and failure to implement board of survey \nrecommendations for disposal of motor vehicles. \n17 \nMinistry of Defence and \nVeteran Affairs. \n2020/21 \n \nOpinion \nUnqualified \n \n\uf0b7 \nOut of the budgeted revenue of UGX.1.735Bn for the year 2020/21; \nUGX.1.018Bn was collected representing performance of 59% of the \ntarget. \n\uf0b7 \nOut of the total warrants for the financial year of UGX.5.316Tn, \nUGX.5.315Tn was spent by the entity resulting in an unspent balance of \nUGX.1.244Bn representing absorption level of 99.98%.", "metadata": {"page": 172, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nAll the 13 outputs with a total of 26 activities and expenditure of \nUGX.2.843Tn sampled for assessment were not quantified to enable \nassessment of performance.", "metadata": {"page": 172, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "162 \n \n\uf0b7 \nA budgetary allocation on Court awards and compensations of \nUGX.279.12M was received during the year against the outstanding claim \nof UGX.3.537BN resulting into a shortfall of 99.92%. \n\uf0b7 \nDomestic arrears over the past three years have shown a declining trend \nwith arrears reducing by UGX.284.868Bn from 2019 to 2021. \n\uf0b7 \nI observed that trade creditors totalling to UGX.364.821Bn remained \nunsettled at close of the year with arrears totalling to UGX.194.297Bn \nrelating to previous financial year(s). \n\uf0b7 \nI noted that UGX.19.711Bn paid to settle domestic arrears was diverted \nfrom the current budget. \n\uf0b7", "metadata": {"page": 173, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nI observed that Batuma Ivan Mbabazi was paid UGX.1.085Bn out of \nUGX.3.056Bn in respect of compensation for Kibanja land situated in \nKihumuro village without proof of ownership. I noted the compensation \nvalue of crops worth UGX.1.885Bn paid did not provide details of crops \nplanted and the land coverage. \n\uf0b7 \nI observed that a number of illegal activities were being carried out on \nUPDF 36 Sq Miles land in Kaweweta to include: Illegal acquisition and \nfencing of military land by veterans; Illegal leasehold registration; Land \nencroachment; Charcoal burning; Cattle grazing and construction of \ndams. \n\uf0b7 \nI noted that UGX.47BN out of the contract sum of UGX.104.77BN had \nbeen paid in relation to the construction of UPDF National Referral \nHospital at Lower Mbuya. I observed during my inspections that the no", "metadata": {"page": 173, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "single structure was complete, agreed time frame had elapsed and the \nsite looked abandoned. \n\uf0b7 \nI noted during my inspection that Kaweweta Recruit Training School \nconstruction project site had been abandoned and observed the \nfollowing: Abandoned water supply project; pending works on phase 2 \nand phase 3 projects; un finished works on road opening of the security \nroad; pending works on tarmacking of 3kms internal road network; \nAbandoned dormitory blocks for female trainees and aqua-privy toilets; \nabandoned construction of 2 range grounds and lack of adequate \naccommodation. \n\uf0b7 \nI noted an urgent need to repair the white house building at URDCC \nwhich was found to have a leaking roof in the mess and accommodation \nrooms. \n\uf0b7 \nI observed that the UPDF Legal Training Centre which was started in \n2014 funded by Netherlands Government had stalled and looked \nabandoned. \n\uf0b7", "metadata": {"page": 173, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "abandoned. \n\uf0b7 \nI observed that out of the required 5.6km concrete perimeter wall fence \nfor land forces headquarter Bombo, only 525 meters had been covered \nleaving 4.6kms outstanding to complete the perimeter wall. \n\uf0b7 \nI noted that Land forces operation centre Bombo had been abandoned \nsince September 2021 and the project had stalled at 75%. The pending \nworks on the project included painting, electrical and water connections \nand finishing works on the toilets. \n\uf0b7 \nI inspected the General Military Hospital- Bombo (GMHB) and observed \nthe following: a need for a centralised system of resource allocation at \nthe hospital; Inadequate medical supplies; Underutilization of hospital \nequipment; Crowded hospital premises; Old hospital equipment and \nParked staff bus. \n\uf0b7 \nI observed that the Marine Pier at Ntokolo Landing site Magamaga was", "metadata": {"page": 173, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "163 \n \naffected with water levels on Lake Victoria dropping back to normal \nhence making it difficult for the marine boats to fully utilise the docking \narea due to shallow waters. I noted that only half of the docking area \nwas utilised contrary to the original plan. \n\uf0b7 \nI inspected Magamaga cantonment and observed the following issues: \nlack of sufficient storage space, land encroachments\u2019, inadequate water \nsupply, poor road network, insufficient lighting system at the store \npremises, accommodation challenges, need to expand Health centre II to \nHealth centre III and inadequate toilets at the store premises. \n\uf0b7 \nI observed inadequate Fuel supply for Air Force training as Air Force is \nnot allocated fuel for operations. but the same fuel allocation for training \nis used for other operations and yet the trainers have specific \nperformance contracts. \n\uf0b7 \nI noted that while there are reserve tanks in Nakasongola and Jinja that", "metadata": {"page": 174, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "were constructed in past regimes, these have never been utilised \nsubjecting management to buying Jet fuel from dealers at the open \nmarket pump prices and exorbitant prices. \n\uf0b7 \nI inspected Special Forces Command (SFC) and observed creation of 206 \nbrigade SFC without sufficient funding. I noted lack of office furniture, \nstorage space and CCTV cameras. \n \nPUBLIC \nSECTOR \nMANAGEMENT SECTOR \n \n1. \nThe New Vision printing and \nPublishing company Limited \n2020/21 \n \nOpinion \nUnqualified \n\uf0b7 \nBecause the company\u2019s market capitalisation of UGX 23,715 million was \nsignificantly lower than the carrying amount of the company\u2019s net assets \nof UGX 65,039 million as at 30thJune 2021. In accordance with IAS 36 \nImpairment of Assets, this impairment indicator triggered impairment", "metadata": {"page": 174, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "testing of the non-current assets of the company. The recoverable cost of \nUGX 57,866 estimated to be the fair value of the company. \n\uf0b7 \nNVPPCL incurred costs relating to a one-off discretionary retirement \npackage comprised of cash and in-kind items to recognise long service to \nthe company by an existing employee. Management measured and \nrecognised costs relating to the retirement package of UGX 1,956 million \nand reported these as part of staff costs included in administrative \nexpenses in the statement of comprehensive income. \n\uf0b7 \nThe company had gross trade receivables of UGX 17,265 million (2020: \nUGX 27,190 million) and expected credit losses of UGX 3,202 million \n(2020: UGX1,428 million) to which management performed the \nimpairment assessment of trade receivables. \n\uf0b7 \nIn June 2020, the board resolved to move all staff from permanent", "metadata": {"page": 174, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "employment terms to fixed-term contracts. The phased movement of \nstaff members had commenced by August 2020. However, as at 30th \nApril 2021, there were still two staff maintained on the payroll with \npayment terms similar to those in their permanent employment contracts. \nI further noted that these had not signed off the fixed term basis \nemployment contracts. Management indicated that it\u2019s engaging the two \nconcerned staff members for a resolution and contract sign off. \n\uf0b7 \nI noted that the board approved changes to estimated useful lives of the \ndifferent items under property, plant and equipment on 25th June 2020 \nas part of the approval of the budget; however, these changes were not \nimplemented timely as required by IAS 8 Accounting Policies, Changes in \nAccounting Estimates. \n\uf0b7 \nI reviewed the information system controls of the IT system and noted", "metadata": {"page": 174, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "164 \n \nthe following; \n\uf0b7 \nAbsence of a defined information security management system \n\uf0b7 \nAbsence of a cybersecurity incident response team \n\uf0b7 \nInadequate security awareness \n\uf0b7 \nVulnerability assessments not performed \n\uf0b7 \nAbsence of data classification \n\uf0b7 \nInadequate ICT vendor management \n2. \nMarkets \nand \nAgricultural \nTrade Improvement Project \n(MATIP) II \n2020/21 \n \n \nOpinion \nUnqualified \n\uf0b7 \nThere was a shortfall in releases from GOU sources of UGX.0.23Bn and \ndonors of UGX.19.763Bn. Furthermore, the project failed to absorb \nUGX.0.271Bn. \n\uf0b7", "metadata": {"page": 175, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nI reviewed 4 out-puts with a total of 16 activities worth UGX.57.7Bn \nrepresenting 100% of the total expenditure and noted that two (2) \noutputs with six (6) activities worth UGX.38.6Bn were fully quantified. I \nfurther observed two (2) out-puts with ten (10) activities worth \nUGX.19.1Bn were insufficiently quantified. All the two (2) outputs that \nwere fully quantified were partially implemented. \n\uf0b7 \nI observed that there was delayed completion of works on some of the \nmarkets and value addition facilities. Two (2) markets were completed by \nJune 2021 however they had not been commissioned and operationalized \nby September 2021 thus affecting service delivery. \n\uf0b7 \nI observed that except for Entebbe market all the other markets lacked a \nrevenue \nmanagement \ninformation \nsystem \nto \nfacilitate \nrevenue", "metadata": {"page": 175, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "facilitate \nrevenue \nmanagement. This was also the case for the seven (7) MATIP 1 markets. \nI further observed that the allocation guidelines favor leaseholders who \npay very little in terms of ground rent to the Municipalities. This affects \nrevenue mobilization and impairs self-reliance and sustainability of these \nmarkets. \n\uf0b7 \nThe beneficiary Municipalities have failed to put in place a market \nmaintenance fund which would facilitate routine maintenance of the \ncompleted structures. This was also the case for the MATIP 1 markets. In \naddition, all the markets redeveloped under MATIP 1 and 2 are not \ninsured against risks such as; fire outbreaks, electrical failures and \nunforeseen disasters. \n3. \nMinistry of Public Service \n2020/21 \n \nOpinion \nUnqualified \n\uf0b7 \nThe Ministry\u2019s five (5) year strategic plan was certified by NPA, confirming", "metadata": {"page": 175, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "that it is aligned to the NDP III. \n\uf0b7 \nThe Ministry collected only 57.7% of its NTR target for the year and had \na shortfall in government funding of UGX.9.7Bn, which is 32.4% of the \nbudget. The Ministry failed to absorb UGX.1.1Bn, which is 5.5% of what \nwas released. \n\uf0b7 \nThe Ministry had off-budget financing of UGX.0.529Bn, which was never \ndeclared to the PSST for re-voting. \n\uf0b7 \nOut of the thirty-five (35) outputs assessed, eight (8) were fully \nquantified, while five (5) were insufficiently quantified to facilitate \nperformance measurement. The balance of two (2) outputs were not \nincluded in the Ministerial Policy Statement submitted to Parliament. \n\uf0b7 \nOut of the eight (8) outputs that were fully quantified, seven (7) outputs", "metadata": {"page": 175, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "were partially implemented, while one (1) output was not implemented at \nall as a result of the disruptions caused by restrictions imposed due to", "metadata": {"page": 175, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "165 \n \nCovid-19. \n\uf0b7 \nThe Ministry delayed submitting all its quarterly performance reports to \nMoFPED, and similarly, I did not find evidence to confirm that monitoring \nplans and reports were prepared. \n\uf0b7 \nI observed that a number of government entities had not been filling \npositions of persons who had been granted leave without pay, which \nresulted in manpower gaps in these entities affecting their efficiency in \ndelivering services to the citizens. \n\uf0b7 \nThe Ministry failed to utilise up to UGX.6.5Bn of the total salary budget of \nUGX.17.9Bn provided by MoFPED over the past four (4) years. \n\uf0b7 \nThe Ministry had outstanding domestic arrears of UGX 0.86Bn by the end \nof the financial year. \n\uf0b7 \nThe Ministry had not put in place adequate guidance regarding the", "metadata": {"page": 176, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "number of boards on which a civil servant is allowed to serve at any one \ntime. This resulted in some civil servants serving on more than three (3) \nboards, which affects the time they allocate to their substantive jobs. \n\uf0b7 \n I noted some challenges in the management of recruitments into the \nservice, such as; irregular employment of staff by Accounting Officers and \nthe absence of a policy for the recruitment and selection of temporary \nstaff. \n\uf0b7 \nI noted irregularities in the management of leave without pay for civil \nservants, which included; absence of a complete register of all civil \nservants who were away on leave without pay and irregular grant of \nleave without pay. \n\uf0b7 \nI noted irregularities in overseas training for civil servants, such as the \nabsence of a register of all civil servants who were away on training and \nsome Officers who went abroad for training programmes offered by the \ndifferent local universities in Uganda. \n3. \nLocal Government Finance", "metadata": {"page": 176, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Local Government Finance \nCommission \n2020/21 \n \nOpinion \nUnqualified \n\uf0b7 \nI noted that the Commission did not have an approved strategic plan that \nwas aligned to NDP III by the time of audit. The draft plan prepared by \nthe entity had not been certified by NPA. \n\uf0b7 \nThe Commission collected only 0.03% of its NTR target for the year and \nhad a shortfall in government funding of 0.04Bn which is 0.75% of the \nbudget. The Commission absorbed all the funds that were released. \n\uf0b7 \nOut of the five (5) out-puts assessed, one (1) output with 0.115 Bn was \nfully quantified, while four (4) outputs with 4.01Bn were insufficiently \nquantified. The one (1) output that was fully quantified was partially \nimplemented. \n\uf0b7 \nThe Commission neither prepared annual budget monitoring plans nor", "metadata": {"page": 176, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "submitted quarterly budget monitoring reports. The Commission also \nfailed to submit all its quarterly budget performance reports in time. \n\uf0b7 \nThe Commission failed to coordinate the automation of revenue \nmanagement systems. There are currently four (4) revenue management \nsystems used by various Local Governments which are implemented in a \ndisjointed and uncoordinated manner. This has resulted in duplication of \nactivities associated with running these systems thus affecting service \ndelivery. \n\uf0b7 \nThe Commission received UGX.182,000,000 as budget support to \nundertake physical decentralization and service delivery. However only \nUGX.31,241,000 was absorbed by the Commission which significantly", "metadata": {"page": 176, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "166 \n \naffected service delivery. \n\uf0b7 \nI noted that by 30th June 2021 the Commission had accumulated \ndomestic arrears of UGX.101,473,991. \n4. \nCity \nWide \nInclusive \nSanitation (CWIS) \n2020/21 \n \nOpinion \nUnqualified \n\uf0b7 \nI observed that the program work plans and budgets were not sent to \nparliament for formal approval through the KCCA Ministerial Policy \nStatements \n\uf0b7 \nThe project budgeted to receive donor financing of USD 1.2M for the year \nunder review; however, only USD 1M was received during the year. Also, \nthe project had expected to receive USD 0.2M as GoU counterpart funds; \nbut only USD 0.17 was received. \n\uf0b7", "metadata": {"page": 177, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nThe project under absorbed funds totaling USD 1,329,522, which is 62% \nof the funds that were available to the project for implementation of \nactivities \n\uf0b7 \nOut of the sixty-seven (67) activities assessed, forty-seven activities \nworth USD 609,563 were fully quantified, while twenty (20) activities \nworth USD 199,314 were insufficiently quantified. Out of the forty-seven \n(47) activities that were quantified, twenty (20) 43% activities worth USD \n502,564 were fully implemented, seventeen (17) 36% activities worth \nUSD 99,664 were partially implemented, while ten (10) 21% activities \nworth USD 7,335 were never implemented at all. \n\uf0b7 \nThe project accumulated arrears amounting to USD 583,742 during the \nyear under review. \n\uf0b7 \nThe project's progress towards achieving project targets or outcomes was", "metadata": {"page": 177, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "found unsatisfactory in some areas. The performance in some cases was \nbelow 50%, while in other areas, no activities had been implemented. \nThis affects service delivery. \n\uf0b7 \nThe project irregularly recruited providers that KCCA or NEMA had not \nlicensed. \n5 \nDevelopment Response to \nDisplacement \nImpacts \nProject \n2020/21 \n \nOpinion \nUnqualified \n\uf0b7 \nThe Project budgeted to receive UGX.233Bn out of which UGX.185Bn was \nreceived representing 79% of the budget leaving a balance of \nUGX.48.1Bn as unreleased. All the funds that were released were \nabsorbed. \n\uf0b7 \nAll the four (4) outputs with a total of thirteen (13) activities worth \nUGX.185Bn were fully quantified to enable assessment of performance.", "metadata": {"page": 177, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Out of this two (2) out puts with six (6) activities worth UGX.9.86Bn were \nfully implemented while the balance of two (2) out puts with seven (&) \nactivities worth UGX.175Bn were partially implemented. \n\uf0b7 \nI noted that the project did not utilise grant funds totalling to UGX \nUGX.9.6Bn. \n\uf0b7 \nThe project had not achieved its thre e(3) year targets in four (4) areas \nwith performance in some cases being as low as 0% in some areas. \n6 \nNational Planning Authority \n2020/21 \n \nOpinion \nUnqualified \n\uf0b7 \nThe Authority prepared a new five (5) year strategic plan which was \ncertified as aligned to NDP III. \n\uf0b7 \nThere was shortfall in revenue collection of up to 100% of the NTR target", "metadata": {"page": 177, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "while government receipts were less than anticipated by UGX.1.65Bn. All \nthe funds that were disbursed were fully absorbed. \n\uf0b7 \nNPA received off-budget financing to a tune of UGX.15.27Bn, out of \nwhich UGX.11.4Bn was declared to Treasury and appropriated. The \nbalance of UGX.3.87Bn was not declared to Treasury and therefore, not", "metadata": {"page": 177, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "167 \n \nappropriated to the entity by Parliament. These funds were received \ndirectly from development partners for undertaking activities not \nbudgeted for. \n\uf0b7 \nI noted that out of the 12 out-puts sampled for review, 6 (50%) were \nfully quantified, 5 (41%) were insufficiently quantified and 1 (9%) was \nnot quantified at all making it impossible to measure performance. Out of \nthe 6 out puts that were fully quantified, none was fully implemented, 4 \n(66%) were partially implemented while 2 (34%) were not implemented. \n\uf0b7 \nAll the quarterly budget performance reports were submitted late by the \nAuthority. \n\uf0b7 \nI noted cases of delays in approval of MDA and LG strategic plans. In \naddition to this seventy three (73) entities had not submitted their \nstrategic plans for review and certification by the Authority. \n\uf0b7", "metadata": {"page": 178, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nThe Authority had not undertaken capacity building of planners at both \nlocal and national level which affected the capacity of the planners to \nimplement, monitor and report on the performance of the budgets in \ntheir respective entities. \n\uf0b7 \nI observed shortcomings in government\u2019s readiness to implement the \nnew programme approach to planning and budgeting which included; \nnon-alignment of the accounting and oversight processes to the new \nprogramme planning framework, non-alignment to the statistical and data \ncollection systems to the new programme planning framework and non-\nfunctional programme working groups among others. \n\uf0b7 \nI also noted that the Authority had not realigned the development \nplanning regulations from the sector approach to planning and budgeting \nto the new programme approach of planning and budgeting. \n7 \nPublic Service Commission \n2020/21 \n \nOpinion \nUnqualified \n\uf0b7", "metadata": {"page": 178, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Unqualified \n\uf0b7 \nAlthough the Commission had come up with a strategic plan aligned to \nNDP III, this plan had not been approved and certified by NPA as \nrequired by the planning regulations. \n\uf0b7 \nThe Commission did collect NTR for the year despite having an NTR \nbudget of UGX.2.7Bn. The Commission received 99% of its budget from \nTreasury and absorbed all the funds. \n\uf0b7 \nOut of the thirteen out-puts assessed, two (2) outputs worth 0.88Bn were \nfully quantified, six (6) worth 6.72Bn were partially quantified while five \n(5) outputs worth 1.87Bn were not quantified at all. The two (2) out-puts \nthat were quantified were all partially implemented. \n\uf0b7 \nAll the quarterly performance reports were submitted late by the \nCommission and there were no budget monitoring reports prepared by \nthe Accounting Officer. \n\uf0b7", "metadata": {"page": 178, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "the Accounting Officer. \n\uf0b7 \nThe Commission does not participate in the recruitment of foreign service \nofficers in Uganda\u2019s missions and embassies abroad. \n\uf0b7 \nThe Commission had outstanding domestic arrears amounting to \nUGX.48.768,099. \n\uf0b7 \nThe Commission did not deduct PAYE from gratuity payments amounting \nto UGX.1Bn for its Commission members. \n8 \nOffice of The Prime Minister \n2020/21 \n \nOpinion \nUnqualified \n \n\uf0b7 \nI noted that OPM strategic plan had not been approved by NPA as aligned \nto NDP III. \n\uf0b7 \nThere was under-collection of NTR by UGX.0.732Bn, which is 30% of the \nNTR budget, while shortfalls in Central Government releases were \nUGX.19.26Bn, which is 13.8% of the approved budget for central", "metadata": {"page": 178, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "168 \n \ngovernment releases. OPM had unspent balances of UGX.2.5Bn, which \nwere returned to the consolidated fund. \n\uf0b7 \nOPM received off-budget financing amounting to UGX.53.452Bn, which \nParliament never appropriated. \n\uf0b7 \nI noted that out of the thirty-two (32) outputs sampled for review, \ntwenty-nine (29) (91%) were fully quantified, one (1) (3%) was partially \nquantified, and 2 (6%) were not quantified at all which made it \nimpossible to measure performance. Out of the twenty-nine (29) outputs \nthat were fully quantified, four (4) outputs (14%) were fully \nimplemented, while twenty-five (25) outputs (86%) were partially \nimplemented. \n\uf0b7 \nOPM did not prepare and submit annual budget monitoring plans and", "metadata": {"page": 179, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "reports while submission of all the quarterly performance reports were \ndelayed. \n\uf0b7 \nI observed service delivery challenges such as delayed completion of \nworks, failure to fund micro-projects and non-functional District Disaster \nManagement Committees. \n\uf0b7 \nI noted that OPM received UGX.0.25Bn as part of the COVID-19 relief \ninterventions budget. These funds were all absorbed and used for the \nintended purpose. \n\uf0b7 \nI noted delayed resettlement of encroachers in the Apaa game reserve \nland. \n\uf0b7 \nOPM did not have a complete database of all entitled beneficiaries and \nthose paid since 2008 under the Akasiimo gratuity scheme. \n9 \nNorthern Uganda Social \nAction Fund (NUSAF 3) \n2020/21 \n \nOpinion \nUnqualified \n \n\uf0b7", "metadata": {"page": 179, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nThis was the last year of implementation of the NUSAF 3 Project. An \nindependent impact evaluation undertaken by Makerere University \nBusiness School highlighted achievements by the project, which included; \nincreased income for beneficiary households, improved resilience and \nvulnerability to shocks, improved household welfare and progress out of \npoverty, improved savings and investments, increased production and \nincome earnings and increased household food security and consumption \nfor a number of beneficiaries. \n\uf0b7 \nuring FY2020/2021, the project budgeted to receive UGX.38.7Bn, which \nwas all received. Similarly, the project absorbed all this money \nrepresenting 100% performance. \n\uf0b7 \nAll the three (3) outputs with nine (9) activities worth UGX.38.8Bn \nsampled for verification were fully quantified. Out of these, two (2)", "metadata": {"page": 179, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "outputs with five (5) activities worth UGX.26.72Bn were fully \nimplemented while one (1) output with four (4) activities worth \nUGX.12.08Bn was partially implemented. \n\uf0b7 \nThe project advanced funds for the construction of coffee shops in Arua, \nGulu, Lira, Mbale and Tororo. At the time of audit, works were not \ncomplete in Lira, Arua and Gulu. The coffee shop in Mbale was not fully \noperational. \n\uf0b7 \nDuring my inspection, I noted that the beneficiary communities and \ndistricts were having sustainability challenges in maintaining project \ninvestments three (3) months after the closure of the project. These \nincluded poor maintenance of roads, low savings by farmers, among \nothers. \n\uf0b7 \nOwnership of two (2) project vehicles had not reverted to government \nthree (3) months after the closure of the project.", "metadata": {"page": 179, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "169 \n \n10 \nProject for The Restoration \nof Livelihoods in the \nNorthern Region \n(PRELNOR) \n2020/21 \n \nOpinion \nUnqualified \n \n \n \n \n\uf0b7 \nThe project had a shortfall of UGX.26Bn, which is 52% and UGX.3.27Bn, \nwhich is 67% of the budget in external and government funding, \nrespectively. The project absorbed UGX.25.65Bn, which is 88% of all the \nfunds that were released. \n\uf0b7 \nAll the one hundred seven (107) outputs assessed were fully quantified. \nOut of the one hundred seven (107), sixty-eight (68) were fully \nimplemented, ten (10) were partially implemented, and twenty-nine (29) \nwere never implemented. \n\uf0b7", "metadata": {"page": 180, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "were never implemented. \n\uf0b7 \nI assessed the progress of project activities and noted that Batch A \ncommunity access roads were incomplete. Similarly, the procurement \nprocess for Batch B community roads and the bulk and satellite markets \nhad delayed, affecting service delivery. \n\uf0b7 \nI noted that the project faces sustainability challenges such as failure to \nmaintain completed roads by the districts, which threatened to erode the \nbenefits realised by the project. \n11 \nMinistry of Local \nGovernment \n2020/21 \n \nOpinion \nUnqualified \n \n\uf0b7 \nThe Ministry\u2019s strategic plan (2020/2021 to 2025/2026) had not been \ncertified by NPA to confirm that it was well aligned to NDP III at the time \nof the audit. \n\uf0b7 \nThere was a shortfall in NTR collection of up to 89.9% of the target,", "metadata": {"page": 180, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "while government receipts were less than anticipated by UGX.3.64Bn. \nThe Ministry had unspent balances of UGX.3.94Bn by year-end. \n\uf0b7 \nI noted that out of the thirty-nine (39) outputs sampled for review, fifteen \n(15) (38%) were fully quantified, twenty (20) (51%) were insufficiently \nquantified, and four (4) (10%) were not quantified at all. Out of the \nfifteen (15) outputs that were fully quantified, one (1) output was fully \nimplemented, while fourteen (14) outputs were partially implemented. \n\uf0b7 \nAll the quarterly performance reports were submitted after the deadline \nfor submission. \n\uf0b7 \n2,127 motorcycles and 77,831 bicycles worth UGX.18.9Bn and \nUGX.24.6Bn respectively had not yet been delivered by the time of audit", "metadata": {"page": 180, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "in November 2021, although they were due for delivery in September \n2021. \n\uf0b7 \nThe Ministry delayed disbursing funds for budget support to Local \nGovernments. UGX.22.1Bn to various Local Governments was disbursed \nin the last two weeks of June 2021. \n\uf0b7 \nThe Ministry delayed disbursing start-up costs of UGX.6.79Bn to 125 \nLocal Governments. Most of the funds were transferred the last two \nweeks of June and, in some cases, as late as 29th June 2021. \n\uf0b7 \nThe Ministry received UGX.2.86Bn for settlement of domestic arrears as \npart of the COVID 19 interventions, which was all absorbed and used to \nsettle domestic arrears. \n\uf0b7 \nThe Ministry had outstanding domestic arrears of UGX.33Bn as at June \n2021. \n12 \nKampala Capital City \nAuthority (KCCA).", "metadata": {"page": 180, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Authority (KCCA). \n2020/21 \n \nOpinion \nUnqualified \n \n \n\uf0b7 \nI noted that the Authority\u2019s strategic plan had not been certified by NPA \nby the time of audit, contrary to the Planning Regulations. \n\uf0b7 \nThe Authority received 99% of its budget from Government, and NTR \nperformed above expectation by 21%. The Authority had unspent \nbalances of UGX.7.64Bn, which was returned to the consolidated fund. \n\uf0b7 \nI noted that the Authority had unremitted off-budget financing of", "metadata": {"page": 180, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "170 \n \nUGX.18.97Bn, which Parliament never appropriated. \n\uf0b7 \nI noted that out of the thirty-nine (39) outputs sampled for review, two \n(2) outputs (5%) were fully quantified, two (2) outputs (5%) were \npartially quantified, and thirty-five (35) outputs (90%) were not \nquantified at all which made it impossible to measure performance. The \ntwo (2) outputs that were fully quantified were all fully implemented. \n\uf0b7 \nAll performance reports were submitted after the deadline. \n\uf0b7 \nI noted that the Authority had not developed regulations to guide the \ncollection of outdoor advertising fees, which hindered the collection of \nNTR. I further noted that the Authority did not undertake regular updates \nof the valuation rolls. \n\uf0b7 \nThe \nAuthority \nhas \nan", "metadata": {"page": 181, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "has \nan \nunserviceable \nlong-term \nliability \nof \nUGX.42,570,448,999 in addition to accumulated domestic arrears of \nUGX.62,477,592,377 as at 30th June 2021. \n\uf0b7 \nThe Authority did not remit statutory deductions to URA and NSSF \namounting to UGX.1.86Bn. \n\uf0b7 \nThe Authority incurred avoidable expenditure of UGX.7.8Bn as interest \ndue to delayed site handover for civil works constructions. \n\uf0b7 \n noted that the Authority had not adopted the Computerized Government \nFinancial Management Information Systems (GFMIS) for management of \nits inventories as required by the Treasury Instructions. \n13 \nKampala Institutional and \nInfrastructure Development \nProject (KIIDP). \n2020/21", "metadata": {"page": 181, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "2020/21 \n \nOpinion \nUnqualified \n\uf0b7 \nThe Project budgeted to receive UGX.8.7Bn from GOU out of which \nUGX.1.9Bn was released representing 21.8% of the budget leaving a \nbalance of UGX.6.8Bn as unreleased. Similarly, the project budgeted to \nreceive UGX.139.7Bn from World Bank however only UGX.125.2Bn (90%) \nwas availed. \n\uf0b7 \nUGX.49.9Bn remained un-utilized at the end of the financial year. \n\uf0b7 \nOut of the four (4) outputs reviewed, only one (1) output (25%) was fully \nquantified. Three (3) outputs were not quantified at all. I observed that \nmanagement did not prepare performance reports that show the status \nof implementation of planned outputs. \n\uf0b7", "metadata": {"page": 181, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nI noted that there was slow progress of works, delayed relocation of \nutilities and delayed land aquistion which resulted in delayed service \ndelivery. \n\uf0b7 \nI also noted that UGX.1,323,171,260 that was garnished had not yet \nbeen refunded by Government through KCCA. \n\uf0b7 \nI noted that ownership of one hundred forty-seven (147) pieces of land \non which project roads and drainages had been constructed had not yet \nbeen transferred to KCCA. \n \nPUBLIC ADMINISTRATION \nSECTOR \n\uf0b7 \n \n1. \nUganda Embassy in Abu \nDhabi. \n2019/20 \n \nOpinion \nUnqualified \n\uf0b7 \nOut of the planned 10 strategic targets/goals, 4 targets were fully \nachieved, 5 targets were partially achieved and 1 was not achieved at all. \n\uf0b7", "metadata": {"page": 181, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nThere was a shortfall in NTR collections amounting to UGX.1.544Bn \nrepresenting 1.66% performance. \n\uf0b7 \nI sampled 4 outputs with a total of 8 activities and actual expenditure of \nUGX.5.376Bn and observed that 3 outputs with a total of 7 activities and \nexpenditure worth UGX.5.31Bn were fully quantified while 1 output with 1 \nactivity and expenditure worth UGX 0.06Bn was not quantified. I further", "metadata": {"page": 181, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "171 \n \nobserved that none of the outputs were fully implemented. \n\uf0b7 \nThe Mission did not prepare and submit the annual monitoring plans to \nMoFPED and NPA contrary to the requirement of paragraph 58 of the \nBudget Execution Circular for 2019/2020. I also noted that the Mission \nsubmitted performance reports for Q1, Q2, Q3 and Q4 after the elapse of \nthe deadline given for submission of the reports. \n\uf0b7 \nThe Mission had total collections including balance brought forward from \nprevious year of UGX.58,817,501 out of which UGX.37,898,755 had been \ntransferred to the Treasury for onward transfer to the Consolidated Fund \nleaving a balance UGX. 20,918,746 not remitted. \n\uf0b7 \nThe Mission paid 73,400.00 AED (equivalent to UGX.73,326,600) in", "metadata": {"page": 182, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "respect of education allowances direct to its officials instead of their \nrespective educational institutions or schools contrary to Section (E - e) \nParagraphs 19 and 20 of the Public Service Standing Orders 2010. \n\uf0b7 \nThe Mission paid medical refunds to its staff amounting to 8,540.9 AED \n(equivalent to UGX.8,531,460) contrary to Section M (m-a) (14) of the \nPublic Service Standing Orders, 2010. \n\uf0b7 \nThe Mission has an approved staff structure of 4 staff positions out of \nwhich 3 (75%) were filled leaving 1 (25%) vacant. \n2. \nUganda Embassy in Abuja, \n2019/20 \n \nOpinion \nQualified \n\uf0b7 \nOut of the planned 9 strategic targets/goals, no target was fully achieved, \n4 targets were partially achieved and 5 targets were not achieved at all. \n\uf0b7", "metadata": {"page": 182, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nThere was a shortfall in NTR collections amounting to UGX.1.926Bn \nrepresenting 8% performance. \n\uf0b7 \nOut of the total receipts for the financial year of UGX.2.821Bn, \nUGX.2.901Bn was spent by the entity resulting in an excess expenditure \nof UGX.0.081Bn representing an absorption level of 102.8%. \n\uf0b7 \nI sampled 3 outputs with a total of 7 activities and actual expenditure of \nUGX.2.901Bn and observed that all the outputs were fully quantified. I \nfurther observed that out of 7 activities, 4 activities were partially \nimplemented while 3 activities remained unimplemented. \n\uf0b7 \nThe entity did not prepare and submit the annual monitoring plans to \nMoFPED and NPA contrary to the requirement of paragraph 58 of the \nBudget Execution Circular for 2019/2020. I also noted that the Mission", "metadata": {"page": 182, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "submitted performance reports for Q1, Q2, Q3 and Q4 after the elapse of \nthe deadline given for submission of the reports. \n\uf0b7 \nThe Mission paid NGN.4,524,060 (equivalent to UGX.43,204,725) in \nrespect of education allowances direct to its officials instead of their \nrespective educational institutions or schools contrary to Section (E - e) \nParagraphs 19 and 20 of the Public Service Standing Orders 2010. \n\uf0b7 \nThe Mission paid medical refunds to its staff amounting to NGN.2,418,559 \n(equivalent to UGX.23,097,233) contrary to Section M (m-a) (14) of the \nPublic Service Standing Orders, 2010. \n\uf0b7 \nThe Mission has an approved staff structure of 5 staff positions out of \nwhich 4 (80%) were filled leaving 1 (20%) vacant. \n3. \nUganda Embassy in Algeria", "metadata": {"page": 182, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Uganda Embassy in Algeria \n2019/20 \n \nOpinion \nUnqualified \n\uf0b7 \nAll the planned 7 strategic targets/goals in the Mission charter were \npartially achieved. \n\uf0b7 \nThere was a shortfall in NTR collections amounting to UGX.2.078Bn \nrepresenting 0.5% performance. \n\uf0b7 \nOut of the total receipts for the financial year of UGX.4.16Bn, UGX.3.81Bn", "metadata": {"page": 182, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "172 \n \nwas spent by the entity resulting in an unspent balance of UGX.0.35Bn \nrepresenting an absorption level of 91.5%. \n\uf0b7 \nI sampled 5 outputs with a total of 16 activities and actual expenditure of \nUGX.3.89Bn and observed that 1 output with a total of 6 activities and \nexpenditure worth UGX.1.14Bn was fully quantified, 2 outputs with a total \nof 8 activities and expenditure worth UGX.2.47Bn were insufficiently \nquantified while 2 outputs with 2 activities and expenditure worth \nUGX.0.28Bn were not quantified at all. \n\uf0b7 \nOut of 6 activities planned, only 2 were fully implemented (33%) while 1 \nactivity was partially implemented (17%) and 3 activities were actually \nnot implemented (50%). \n\uf0b7", "metadata": {"page": 183, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nFunds to the tune of \u00a3 890 (UGX.3,739,406) were irregularly diverted \nfrom the activities on which they were budgeted and spent on other \nactivities without seeking and obtaining the necessary approvals. \n\uf0b7 \nThe entity did not prepare and submit annual monitoring plans to \nMoFPED and NPA and also did not prepare and submit quarterly \nmonitoring reports to the Office of the Prime Minister and MoFPED \ncontrary to Paragraph 58 of the Budget Execution Circular for 2019/20. \n\uf0b7 \nA review of the cumulative performance reports revealed the subsequent \nquarterly performance reports did not include activities implemented in \nthe previous quarter(s) and therefore, the cumulative activities reported \nin the fourth quarter performance report does not include all activities \nimplemented in the first, second and third quarters. \n\uf0b7 \nThe Mission paid Euros.45,314 (equivalent to UGX.190,390,396) in", "metadata": {"page": 183, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "respect of education allowances direct to its officials instead of their \nrespective educational institutions or schools contrary to Section (E - e) \nParagraphs 19 and 20 of the Public Service Standing Orders 2010. \n\uf0b7 \nThe Mission had a fixed assets register detailing all of the Mission\u2019s assets \nbut lacked some of the information such as date of purchase, estimated \nuseful life, maintenance costs and the expected date of disposal making it \nincomplete. I further observed that a number of the entity\u2019s assets were \nold and due for boarding off but this had not been done. \n4. \nUganda Embassy in Ankara \n2019/20 \n \nOpinion \nUnqualified \n\uf0b7 \nOut of the planned 10 strategic targets/goals in the Mission charter, \nseven (7) targets had been fully achieved, two (2) were partially \nachieved, while one (1) was not achieved. \n\uf0b7", "metadata": {"page": 183, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nThere was a shortfall in NTR collections amounting to UGX.1.456Bn \nrepresenting 0.93% performance. \n\uf0b7 \nI sampled 5 outputs with a total of 9 activities and actual expenditure of \nUGX.4.792Bn and observed that 3 outputs with a total of 7 activities and \nexpenditure worth UGX.4.702Bn were fully quantified while 2 outputs \nwith a total of 2 activities and expenditure worth UGX.0.9Bn were \ninsufficiently quantified. I further observed that 3 outputs with 7 activities \nworth UGX.4.702Bn were partially implemented. \n\uf0b7 \nThe Mission did not prepare and submit annual monitoring plans to \nMoFPED and NPA and also did not prepare and submit quarterly \nmonitoring reports to the Office of the Prime Minister and MoFPED \ncontrary to Paragraph 58 of the Budget Execution Circular for 2019/20. \n\uf0b7", "metadata": {"page": 183, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nThe Mission submitted performance reports for Q1, Q2, Q3 and Q4 after \nthe deadline given for submission of the reports. \n\uf0b7 \nThe Embassy had a capital expenditure budget of UGX.90,000,000 to \ncater for office equipment, ICT equipment and furniture and fittings but", "metadata": {"page": 183, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "173 \n \nmanagement of the Embassy procured office equipment, ICT equipment \nand furniture and fittings worth UGX.129,698,987 resulting into a \ndiversion of UGX.39,698,987. Furthermore, the additions in the Statement \nof Stores and Other Assets (physical assets) as at the end of the financial \nyear 2019/2020 was UGX.129,698,987 but the payment file revealed that \nonly office equipment, ICT equipment and furniture and fittings worth \nUGX.85,138,153 were procured implying that this statement is overstated \nby UGX.44,560,834. \n\uf0b7 \nThe Embassy made upfront payments for rent of USD.74,850 (equivalent \nto UGX.279,215,200) beyond the financial year but did not disclose the \nprepayments in the Statement of Financial Position for the year. \n\uf0b7", "metadata": {"page": 184, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nThe Mission paid USD.35,000 (equivalent to UGX.130,725,000) in respect \nof education allowances direct to its officials instead of their respective \neducational institutions or schools contrary to Section (E - e) Paragraphs \n19 and 20 of the Public Service Standing Orders 2010. \n\uf0b7 \nThe Embassy spent USD.53,627 (equivalent to UGX.200,296,400) on \nrefunds for medical expenses to its officers contrary to Section M (m-a) \n(14) of the Public Service Standing Orders, 2010. \n\uf0b7 \nThe Mission has an approved staff structure of 8 staff positions out of \nwhich, 5 (63%) were filled leaving 3 (37%) vacant. \n5 \nUganda Embassy in China, \nBeijing \n2019/20 \n \nOpinion \nQualified \n\uf0b7 \nOut of the planned 8 strategic targets/goals in the Mission charter, three", "metadata": {"page": 184, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "(3) targets had been fully achieved, three (3) were partially achieved, \nwhile two (2) was not achieved. \n\uf0b7 \nThere was a shortfall in NTR collections amounting to UGX.4.17Bn \nrepresenting 0.05% performance. \n\uf0b7 \nOut of the total receipts for the financial year of UGX.5.031Bn, \nUGX.4.276Bn was spent by the entity resulting in an unspent balance of \nUGX.0.755Bn representing an absorption level of 84.99%. \n\uf0b7 \nThe Embassy received off-budget financing from the Contingency Fund as \na relief fund for students locked down in Wuhan to a tune of \nUGX.227,318,724 which was not appropriated by Parliament. \n\uf0b7 \nI sampled 5 outputs with a total of 20 activities and actual expenditure of \nUGX.4.28Bn and observed that 1 output with a total of 20 activities and", "metadata": {"page": 184, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "expenditure worth UGX.4.23Bn was fully quantified while 2 outputs with a \ntotal of 2 activities and expenditure worth UGX.0.05Bn were not \nquantified. I further noted that for the quantified outputs, 3 outputs with \n20 activities worth UGX.4.23Bn were partially implemented, 9 (45%) \nactivities were fully implemented, 2 (10%) activities partially implemented \nand 9 (45%) activities remained unimplemented \n\uf0b7 \nFunds to the tune of UGX.20,000,000 were irregularly diverted from \npurchase of specialized machinery and equipment for which they were \nbudgeted to purchase of curtains without seeking and obtaining the \nnecessary approvals. \n\uf0b7 \nThe Mission did not prepare and submit annual monitoring plans to \nMoFPED and NPA and also did not prepare and submit quarterly \nmonitoring reports to the Office of the Prime Minister and MoFPED", "metadata": {"page": 184, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "contrary to Paragraph 58 of the Budget Execution Circular for 2019/20. \n\uf0b7 \nThe Mission submitted performance reports for Q1, Q2, Q3 and Q4 after \nthe deadline given for submission of the reports. \n\uf0b7 \nI noted 20 cases of activities that were not reported that were disclosed \nin quarter 2 and quarter 3 reports but not disclosed the cumulative 4th", "metadata": {"page": 184, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "174 \n \nquarter performance report of the Mission. \n\uf0b7 \nThe Mission had outstanding commitments to a tune of UGX.7,720,207 \nfrom the previous year but no budget was provided for settlement of \ndomestic arrears in the current budget but the arrears were paid. \n\uf0b7 \nFor procurements, I observed that the Mission had one member for an \nEvaluation Committee and there was lack involvement of the Contracts \nCommittee in the procurement processes. \n\uf0b7 \nI observed that the fixed assets register maintained by the entity was not \nupdated and not maintained in the format prescribed in the Treasury \nInstructions. \n\uf0b7 \nThe Embassy spent RMB.154,898 (equivalent to UGX.81,538,197) on \nrefunds for medical expenses to its officers contrary to the requirements \nof Section M (m-a) (14) of the Public Service Standing Orders, 2010. \n\uf0b7", "metadata": {"page": 185, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nExpenditure amounting to RMB.118,327 (equivalent to UGX.62,287,491) \nwas incurred on staff telephone bills out of which RMB.78,885 (equivalent \nto UGX.41,524,994) representing 2/3 of the amount should have been \nrecovered from staff but the recovery was not effected contrary to \nSection H (h-e) (12) of the Public service Standing Orders, 2010. \n6. \nUganda Embassy in Berlin \n2019/20 \n \nOpinion \nQualified \n\uf0b7 \nThe cashbook closing balance revealed an amount of Eur.8,442.77 \n(equivalent to UGX.35,283,771) while the bank statement closing balance \nrevealed Eur.53,180.48 (222,250,267) resulting into un-reconciled", "metadata": {"page": 185, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "difference of Eur.44,737.71 (equivalent to UGX.186,966,496). \n\uf0b7 \nFunds to the tune of EUR.22,056.39 (equivalent to UGX.92,053,888) were \nirregularly diverted from the activities on which they were budgeted and \nspent on other activities without seeking and obtaining the necessary \napprovals. \n\uf0b7 \nOut of the planned 21 strategic targets/goals in the Mission charter, 4 \ntargets had been fully achieved, 11 were partially achieved, while 6 were \nnot achieved. \n\uf0b7 \nThere was a shortfall in NTR collections amounting to UGX.2.60Bn \nrepresenting 1% performance. \n\uf0b7 \nI sampled 3 outputs with a total of 16 activities and actual expenditure of \nUGX.5.72Bn and observed that 2 outputs with 8 activities and \nexpenditure worth UGX.5.38Bn were fully quantified while 1 output with 8", "metadata": {"page": 185, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "activities and expenditure worth UGX.0.34Bn was partially quantified at \n50% quantification. Out of 8 activities, 3 (37.5%) activities were fully \nimplemented, 3 (37.5%) activities were partially implemented and 2 \n(25%) activities were not implemented at all. \n\uf0b7 \nThe entity submitted performance reports for Q1, Q2, Q3 and Q4 but \nthere was no evidence for submission before elapse of the deadline. \n\uf0b7 \nThe Embassy\u2019s assets were old and due for boarding off but action had \nnot been taken. \n\uf0b7 \nThe Embassy paid EUR.11,252.55 (equivalent to UGX.47,026,319) in \nrespect of education allowances direct to its officials instead of their \nrespective education institutions or schools contrary to Section (E - e) \nParagraphs 19 and 20 of the Public Service Standing Orders, 2010. \n\uf0b7", "metadata": {"page": 185, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nThe Embassy spent EUR.74,105.28 (equivalent to UGX.309,698,564) on \nrefunds for medical expenses to its officers contrary to the requirements \nof Section M (m-a) (14) of the Public Service Standing Orders, 2010. \n\uf0b7 \nThe Embassy paid allowances to staff in form of per diems totalling to", "metadata": {"page": 185, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "175 \n \nEUR.37,847.45 (equivalent to UGX.158,170,928) during the period when \nGermany was under lock down (March to June, 2020). I could not \nestablish the genuineness of the expenditure. \n\uf0b7 \nThe Embassy has an approved staff structure of 8 positions out of which \n5 (62.5%) were filled leaving 3 (37.5%) vacant. \n7. \nUganda Embassy in \nBrussels \n2019/20 \n \nOpinion \nUnqualified \n\uf0b7 \nOut of the planned 10 strategic targets/goals in the Mission charter, two \n(2) targets had been fully achieved while eight (8) were partially \nachieved. \n\uf0b7 \nThere was a shortfall in NTR collections amounting to UGX.1.445Bn \nrepresenting 7.9% performance. \n\uf0b7", "metadata": {"page": 186, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nI sampled 4 outputs with a total of 11 activities and actual expenditure of \nUGX.10.359Bn and observed that all the 4 outputs with a total of 11 \nactivities and expenditure worth UGX.10.359Bn were fully quantified. I \nfurther observed that 1 output with 1 activity worth UGX.4.993Bn was \nfully implemented while 3 outputs with 10 activities worth UGX.5.336Bn \nwere partially implemented. \n\uf0b7 \nFunds to the tune of USD.1,949.02 (equivalent to UGX.7,990,982) were \nirregularly diverted from the activities on which they were budgeted and \nspent on other activities without seeking and obtaining the necessary \napprovals. \n\uf0b7 \nThe Mission did not prepare and submit annual monitoring plans to \nMoFPED and NPA and also did not prepare and submit quarterly \nmonitoring reports to the Office of the Prime Minister and MoFPED", "metadata": {"page": 186, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "contrary to Paragraph 58 of the Budget Execution Circular for 2019/20. \n\uf0b7 \nThe entity submitted performance reports for Q1, Q2, Q3 and Q4 but \nthere was no evidence for submission before elapse of the deadline. I \nnoted cases of material inaccuracies and inconsistencies in the annual \ncumulative performance reports. \n\uf0b7 \nThe Embassy paid Euro.21,086.69 (equivalent to UGX.88,711,704) in \nrespect of education allowances direct to its officials instead of their \nrespective education institutions or schools contrary to Section (E - e) \nParagraphs 19 and 20 of the Public Service Standing Orders, 2010. \n\uf0b7 \n \n\uf0b7 \nThe Embassy spent Embassy spent Euro.16,297.47 (equivalent to \nUGX.68,563,456) on refunds for medical expenses to its officers contrary \nto the requirements of Section M (m-a) (14) of the Public Service", "metadata": {"page": 186, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Standing Orders, 2010. \n\uf0b7 \nEuro.15,364.80 (equivalent to UGX.64,639,713) was incurred on the \npayments \nfor \ntelephone \nbills \nout \nof \nwhich \nEuro.10,243.20 \n(UGX.43,093,142), equivalent to (2/3) should have been recovered from \nthe respective staff during the period but the recovery was not effected \ncontrary to Section H (h-e) (12) of the Public service Standing Orders, \n2010. \n\uf0b7 \nThe Embassy has an approved staff structure of 8 positions out of which \n6 (75%) were filled leaving 2 (25%) vacant. \n8. \nUganda Embassy in \nBujumbura \n2019/20 \n \nOpinion \nUnqualified \n\uf0b7", "metadata": {"page": 186, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Unqualified \n\uf0b7 \nOut of the planned 9 strategic targets/goals in the Mission charter, three \n(3) targets had been fully achieved, three (3) were partially achieved \nwhile three (3) were not achieved. \n\uf0b7 \nThere was a shortfall in NTR collections amounting to UGX.3.087Bn \nrepresenting 1.68% performance.", "metadata": {"page": 186, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "176 \n \n\uf0b7 \nI sampled 6 outputs with a total of 23 activities and actual expenditure of \nUGX.4.140Bn and observed that 4 outputs with a total of 21 activities and \nexpenditure worth UGX.3.440Bn were fully quantified while 2 outputs \nwith a total of 2 activities and expenditure worth UGX.0.7Bn were \ninsufficiently quantified. I further observed that all 4 outputs with 21 \nactivities were partially implemented. \n\uf0b7 \nThe Mission did not prepare and submit annual monitoring plans to \nMoFPED and NPA and also did not prepare and submit quarterly \nmonitoring reports to the Office of the Prime Minister and MoFPED \ncontrary to Paragraph 58 of the Budget Execution Circular for 2019/20. \n\uf0b7 \nThe entity submitted performance reports for Q1, Q2, Q3 and Q4 but \nthere was no evidence for submission before elapse of the deadline. \n\uf0b7", "metadata": {"page": 187, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nThe Mission had total collections including balance brought forward from \nprevious year of UGX.59,804,444 out of which UGX.17,626,729 had been \ntransferred to the Treasury for onward transfer to the Consolidated Fund \nleaving a balance UGX.42,177,715 not remitted \n\uf0b7 \nThe Embassy paid USD.16,000 (equivalent to UGX.59,685,280) in respect \nof education allowances direct to its officials instead of their respective \neducation institutions or schools contrary to Section (E - e) Paragraphs 19 \nand 20 of the Public Service Standing Orders, 2010. \n\uf0b7 \nBIF.452,224,651 (equivalent to UGX.863,334,000) was withdrawn from \nthe Mission\u2019s expenditure account as cash imprest but was not \nadequately accounted for. \n\uf0b7 \nThe Embassy maintains an asset register which is not in the format", "metadata": {"page": 187, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "prescribed in the Treasury Instructions and has a number of assets that \nare unserviceable and need to be disposed of. \n9. \nUganda Embassy in Cairo, \n2019/20 \n \nOpinion \nUnqualified \n\uf0b7 \nAll the seven (7) targets/goals of the Mission Charter were partially \nachieved. \n\uf0b7 \nThere was a shortfall in NTR collections amounting to UGX.1.999Bn \nrepresenting 4.45% performance. \n\uf0b7 \nOut of the total receipts for the financial year of UGX.5.564Bn, \nUGX.4.952Bn was spent by the entity resulting in an unspent balance of \nUGX.0.612Bn representing an absorption level of 89%. \n\uf0b7 \n4 outputs with 14 activities and expenditure worth UGX.3.176Bn were not \nquantified to enable assessment of performance. \n\uf0b7", "metadata": {"page": 187, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nThe Mission did not prepare and submit annual monitoring plans to \nMoFPED and NPA and also did not prepare and submit quarterly \nmonitoring reports to the Office of the Prime Minister and MoFPED \ncontrary to Paragraph 58 of the Budget Execution Circular for 2019/20. \n\uf0b7 \nThe entity submitted performance reports for Q1, Q2, Q3 and Q4 but \nthere was no evidence for submission before elapse of the deadline. \n\uf0b7 \nThe Mission had total collections including balance brought forward from \nprevious year of UGX.238,031,600 out of which UGX.183,216,635 had \nbeen transferred to the Treasury for onward transfer to the Consolidated \nFund leaving a balance UGX.54,814,965 not remitted. \n\uf0b7 \nUGX.90,391,294 was disclosed as unspent balances for the period \n2018/19 but note 17, cash and cash equivalents indicates that the prior", "metadata": {"page": 187, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "year closing balance was UGX.75,022,891. The variance amounting to \nUGX.15,368,403 was not explained. \n\uf0b7 \nEGP.1,015,780.00 (equivalent to UGX.229,058,390) was drawn as imprest", "metadata": {"page": 187, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "177 \n \nand spent on activities such as advances, transport and per diems which \nare not small incidental expenditures contrary to Instruction 17.22 of the \nTreasury Instructions 2017. \n\uf0b7 \nThe Embassy paid USD.27,419.00 (equivalent to UGX.101,998,680) in \nrespect of education allowances direct to its officials instead of their \nrespective education institutions or schools contrary to Section (E - e) \nParagraphs 19 and 20 of the Public Service Standing Orders, 2010. \n\uf0b7 \nThe \nEmbassy \nspent \nEgyptian \npounds.255,613 \n(equivalent \nto \nUGX.57,640,732) on refunds for medical expenses to its officers contrary \nto the requirements of Section M (m-a) (14) of the Public Service \nStanding Orders, 2010. \n10 \nUganda High Commission in", "metadata": {"page": 188, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Uganda High Commission in \nCanberra. \n2019/20 \n \nOpinion \nQualified \n\uf0b7 \nThe High Commission made upfront payments for rent of AUD.43,096.67 \n(equivalent to UGX.109,469,851) beyond the financial year but did not \ndisclose the same as prepayments in the Statement of Financial Position \nfor the year. \n\uf0b7 \nThe High Commission did not provide strategic performance reports and \ntherefore, I could not undertake an assessment of the achievements of \nthe Mission charter targets/goals. \n\uf0b7 \nThere was a shortfall in NTR collections amounting to UGX.1.00Bn \nrepresenting 0.05% performance. \n\uf0b7 \nI sampled 3 outputs with a total of 9 activities and actual expenditure of \nUGX.4.84Bn and observed that the activities were not quantified. I was", "metadata": {"page": 188, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "therefore unable to undertake assessment of the performance of the High \nCommission. \n\uf0b7 \nThe Mission did not prepare and submit annual monitoring plans to \nMoFPED and NPA and also did not prepare and submit quarterly \nmonitoring reports to the Office of the Prime Minister and MoFPED \ncontrary to Paragraph 58 of the Budget Execution Circular for 2019/20. \n\uf0b7 \nThe entity submitted performance reports for Q1, Q2 and Q3 after the \ndeadline given for submission. I noted cases of material inaccuracies and \ninconsistencies in the level of performance reported. \n\uf0b7 \nAssets to the tune of AUD.25,060 (equivalent to UGX.63,654,906) were \nprocured during the year which were not disclosed in the summary \nstatement of stores and other assets (physical assets) at the end of the \nyear. \n\uf0b7 \nThe High Commission had total collections including balance brought", "metadata": {"page": 188, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "forward from previous year of UGX.59,002,072. At the closure of the \nperiod, no funds had been transferred to the Treasury for onward \ntransfer to the Consolidated Fund thus implying UGX.59,002,072 was not \nremitted \n\uf0b7 \nThe Embassy paid AUD.77,726 (equivalent to UGX.197,430,593) in \nrespect of education allowances direct to its officials instead of their \nrespective education institutions or schools contrary to Section (E - e) \nParagraphs 19 and 20 of the Public Service Standing Orders, 2010. \n\uf0b7 \nThe Embassy spent AUD.77,726 (equivalent to UGX.197,430,593) on \nrefunds for medical expenses to its officers contrary to the requirements \nof Section M (m-a) (14) of the Public Service Standing Orders, 2010. \n\uf0b7", "metadata": {"page": 188, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nAUD.28,722 (equivalent to UGX.72,956,752) out of which AUD.19,148 \n(equivalent to UGX.48,637,835) representing 2/3 of the amount should \nhave been recovered from the respective staff was incurred on the \npayments for telephone bills during the period. The recovery was not", "metadata": {"page": 188, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "178 \n \neffected. \n\uf0b7 \nAUD.44,725.21 (equivalent to UGX.113,605973) was withdrawn from the \nHigh Commission\u2019s local expenditure account as cash imprest but was not \nadequately accounted for. \n\uf0b7 \nOut of an approved staff structure of 7 staff positions for the Mission, six \n(86%) were filled leaving one (14%) vacant. \n11. \nUganda High Commission in \nDar es Salaam. \n2019/20 \n \nOpinion \nUnqualified \n\uf0b7 \nOut of the planned 30 strategic targets/goals in the Mission charter, \neight(8) outputs/targets had been fully achieved, twelve (12) were \npartially achieved, while ten (10) were not achieved. \n\uf0b7 \nThere was a shortfall in NTR collections amounting to UGX.3.12Bn", "metadata": {"page": 189, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "representing 0.01% performance. \n\uf0b7 \nI sampled 5 outputs with a total of 18 activities and actual expenditure of \nUGX.5.277Bn and observed that 1 output with 1 activity and expenditure \nworth UGX.0.173 was fully quantified, 1 output with 4 activities and \nexpenditure worth UGX.0.674Bn was partially quantified at 50% \nquantification while 3 outputs with 13 activities and expenditure worth \nUGX.4.43Bn were not quantified. I further observed that 1 output with 1 \nactivity and expenditure worth UGX.0.173Bn was partially implemented. \n\uf0b7 \nThe entity submitted performance reports for Q1, Q2, Q3 and Q4 but \nthere was no evidence for submission before elapse of the deadline. \n\uf0b7 \nPrepayments \namounting \nto \nTSHS.1,130,500 \n(equivalent \nto", "metadata": {"page": 189, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "(equivalent \nto \nUGX.1,818,975) were made to various suppliers for services but were not \ndisclosed in the financial statements thereby understating the assets in \nthe Statement of Financial Position and overstating expenditure in the \nStatement of Financial Performance. \n\uf0b7 \nThe Embassy owns land in Dodoma on which the proposed Chancery \nbuilding and official residence are to be constructed but the value of this \nland was not disclosed in the financial statements contrary to GOU \naccounting policy \u2018disclosure of land under non-produced assets. \n\uf0b7 \nThe Embassy paid UGX.74,506,600 in respect of education allowances \ndirect to its officials instead of their respective education institutions or \nschools contrary to Section (E - e) Paragraphs 19 and 20 of the Public \nService Standing Orders, 2010. \n\uf0b7 \nThe Embassy spent UGX.61,871,014 on refunds for medical expenses to", "metadata": {"page": 189, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "its officers contrary to the requirements of Section M (m-a) (14) of the \nPublic Service Standing Orders, 2010. \n\uf0b7 \nUGX.15,954,192 out of which UGX.10,636,129 representing 2/3 of the \namount should have been recovered from the respective staff was \nincurred on the payments for telephone bills during the period. The \nrecovery was not effected. \n\uf0b7 \nOut of an approved staff structure of 7 staff positions for the Mission, 5 \n(71%) were filled leaving 2 (29%) vacant. \n12. \nUganda High Commission in \nDoha. \n2019/20 \n \nOpinion \nQualified \n\uf0b7 \nPrepayments amounting to QR.424,000 (equivalent to UGX.431,046,880) \nwere made to various suppliers for services but were not disclosed in the", "metadata": {"page": 189, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "financial statements thereby understating the assets in the Statement of \nFinancial Position and overstating expenditure in the Statement of \nFinancial Performance. \n\uf0b7 \nThere was a shortfall in NTR collections amounting to UGX.1.547Bn \nrepresenting 1.45% performance. \n\uf0b7 \nOut of the total receipts for the financial year of UGX.3.293Bn,", "metadata": {"page": 189, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "179 \n \nUGX.2.64Bn was spent by the entity resulting in an unspent balance of \nUGX.0.653Bn representing an absorption level of 80.2%. \n\uf0b7 \nI sampled 5 outputs with a total of 7 activities and actual expenditure of \nUGX.2.64Bn and observed that 2 outputs of the 5 outputs with a total of \n2 activities and expenditure worth UGX.0.06Bn were not quantified. I \nfurther observed that 1 output out of the 3 outputs with 2 activities worth \nUGX.2.02Bn was fully implemented 2 outputs with 3 activities worth \nUGX.0.56Bn were partially implemented. \n\uf0b7 \nThe Mission did not prepare and submit annual monitoring plans to \nMoFPED and NPA and also did not prepare and submit quarterly \nmonitoring reports to the Office of the Prime Minister and MoFPED", "metadata": {"page": 190, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "contrary to Paragraph 58 of the Budget Execution Circular for 2019/20. \n\uf0b7 \nThe Embassy submitted performance reports for Q1, Q2, Q3 and Q4 after \nthe deadline given for submission of the reports. \n\uf0b7 \nThe Embassy spent QR.11,481 (equivalent to UGX.11,671,814) on \nrefunds for medical expenses to its officers contrary to the requirements \nof Section M (m-a) (14) of the Public Service Standing Orders, 2010. \n\uf0b7 \nQR.43,652 (equivalent to UGX.44,377,496) out of which (2/3) amounting \nto QR.29,101 (equivalent to UGX.29,584,659) should have been \nrecovered from the respective staff was incurred on the payments for \ntelephone bills during the period. The recovery was not effected. \n\uf0b7 \nI noted that all the three (3) sampled procurements were undertaken", "metadata": {"page": 190, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "using direct procurement method but no justification was given and no \ncontract manager was appointed to oversee these procurements. \n\uf0b7 \nOut of an approved staff structure of 7 staff positions for the Mission, 9 \n(60%) were filled leaving 6 (40%) vacant. \n13 \nUganda High Commission in \nGeneva. \n2019/20 \n \nOpinion \nUnqualified \n\uf0b7 \nThere was a shortfall in NTR collections amounting to UGX.3.045Bn \nrepresenting 3% performance. \n\uf0b7 \nI sampled 3 outputs with a total of 7 activities and actual expenditure of \nUGX.7.66Bn and observed that all the 3 outputs were fully quantified and \nwere partially implemented. \n\uf0b7 \nThe Mission did not prepare and submit annual monitoring plans to \nMoFPED and NPA and also did not prepare and submit quarterly", "metadata": {"page": 190, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "monitoring reports to the Office of the Prime Minister and MoFPED \ncontrary to Paragraph 58 of the Budget Execution Circular for 2019/20. \n\uf0b7 \nThe Embassy submitted performance reports for Q1, Q2, Q3 and Q4 after \nthe deadline given for submission of the reports. \n\uf0b7 \nThe Mission had total collections including balance brought forward from \nprevious year of UGX.345,130,819. At the closure of the period, \nUGX.146,139,671 had been transferred to the Treasury for onward \ntransfer to the Consolidated Fund leaving a balance UGX.198,991,148 not \nremitted. \n\uf0b7 \nUGX.27,296,608 was spent on procurements outside the approved \nprocurement plan for the financial year 2019/2020 while procurements \nworth UGX.294,979,327 were acquired using the wrong procurement \nmethods. \n\uf0b7", "metadata": {"page": 190, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "methods. \n\uf0b7 \nThe fixed assets register maintained by the entity was not updated as it \nlacks details of exact month of purchase (only the year was mentioned), \nmaintenance cost and estimated useful life of the asset. \n\uf0b7 \nThe Embassy paid UGX.39,320,000 in respect of education allowances", "metadata": {"page": 190, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "180 \n \ndirect to its officials instead of their respective education institutions or \nschools contrary to Section (E - e) Paragraphs 19 and 20 of the Public \nService Standing Orders, 2010. \n\uf0b7 \nCHF.12,623 (equivalent to UGX.49,602,836) out of which CHF.8,415 \n(equivalent to UGX.33,068,557) equivalent to 2/3 should have been \nrecovered from the respective staff was incurred on the payments for \ntelephone bills during the period. The recovery was not effected. \n\uf0b7 \nOut of an approved staff structure of 7 staff positions for the Mission, six \n(86%) were filled leaving one (14%) vacant. \n14 \nUganda \nConsulate \nin \nGuangzhou, China \n2019/20 \n \nOpinion \nUnqualified \n\uf0b7", "metadata": {"page": 191, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Unqualified \n\uf0b7 \nOut of the planned 8 strategic targets/goals in the Mission charter, six (6) \noutputs/targets had been fully achieved while two (2) were partially \nachieved. \n\uf0b7 \nThere was a shortfall in NTR collections amounting to UGX.2.037Bn \nrepresenting 2.54% performance. \n\uf0b7 \nUGX.4.745Bn was budgeted out of which UGX.4.545Bn was warranted, \nresulting in a shortfall of UGX.0.2Bn resulting in 95.8% funding of the \nbudget. Of the received amount of UGX.4.545Bn, UGX.3.945Bn was spent \nresulting in an unspent balance of UGX.0.6Bn representing an absorption \nlevel of 86.8%. \n\uf0b7 \nI sampled 4 outputs with a total of 6 activities and actual expenditure of", "metadata": {"page": 191, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "UGX.3.94Bn and observed that 3 outputs with a total of 4 activities and \nexpenditure worth UGX.3.717Bn were fully quantified while 1 output with \na total of 2 activities and expenditure worth UGX.0.228Bn was \ninsufficiently quantified. I further observed that 2 outputs with 3 activities \nworth UGX.1.682Bn were partially implemented while 1 output with 1 \nactivity worth UGX.2.0Bn was not implemented at all . \n\uf0b7 \nThe Mission did not prepare and submit annual monitoring plans to \nMoFPED and NPA and also did not prepare and submit quarterly \nmonitoring reports to the Office of the Prime Minister and MoFPED \ncontrary to Paragraph 58 of the Budget Execution Circular for 2019/20. \n\uf0b7 \nThe entity submitted performance reports for Q1, Q2 and Q3 after the \ndeadline given for submission. I noted that the performance reports did \nnot report on the project 1169, strengthening the consulate in", "metadata": {"page": 191, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Guangzhou by procurement of a utility van. \n\uf0b7 \nPrepayments amounting to RMB.21,000 (equivalent to UGX.11,466,000) \nand USD.26,406.60 (equivalent to UGX.107,743,023.20) were made to \nvarious suppliers for services but were not disclosed in the financial \nstatements thereby understating the assets in the Statement of Financial \nPosition and overstating expenditure in the Statement of Financial \nPerformance. \n\uf0b7 \nThe Embassy spent RMB.244,833.6 (equivalent to UGX.129,641,839.54) \nand USD.500 (equivalent to UGX.1,875,165.00) on refunds for medical \nexpenses to its officers contrary to the requirements of Section M (m-a) \n(14) of the Public Service Standing Orders, 2010. \n\uf0b7 \nThe Consulate has land located on plot no. D8 Yi Zhou Rd in Chigang", "metadata": {"page": 191, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "District which is idle and may be repossessed by the host country. In \naddition, the Consulate owns a utility van whose repair and maintenance \ncosts have escalated is due for disposal and plans were in place to \nprocure a new one but this was not done. \n15. \nUganda Embassy in South \nSudan. \n2019/20 \n\uf0b7 \nPrepayments amounting to UGX.399,145,310 were made to various \nsuppliers for services but were not disclosed in the financial statements", "metadata": {"page": 191, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "181 \n \n \nOpinion \nQualified \nthereby understating the assets in the Statement of Financial Position and \noverstating expenditure in the Statement of Financial Performance. \n\uf0b7 \nOut of the planned 7 strategic targets/goals in the Mission charter, 2 \noutputs/targets had been fully achieved while 5 were partially achieved. \n\uf0b7 \nThere was a shortfall in NTR collections amounting to UGX.2.56Bn \nrepresenting 17.3% performance. \n\uf0b7 \nOut of the total receipts for the financial year of UGX.7.624Bn, \nUGX.9.11Bn was spent by the entity resulting into an over absorption of \nUGX.1.48Bn representing an absorption level of 119%. \n\uf0b7 \nI sampled 5 outputs with a total of 30 activities and actual expenditure of \nUGX.7.07Bn and observed that 4 outputs with a total of 18 activities and", "metadata": {"page": 192, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "expenditure worth UGX.6.69Bn were fully quantified while 1 output with a \ntotal of 12 activities and expenditure worth UGX.0.39Bn was insufficiently \nquantified. For the 5 fully quantified outputs, 2 outputs with 2 activities \nworth UGX.2.55Bn were fully implemented while 3 outputs with 28 \nactivities worth UGX.4.09Bn were partially implemented. \n\uf0b7 \n Funds to the tune of USD.17,382.29 (equivalent to UGX.64,841,678) \nwere irregularly diverted from the activities on which they were budgeted \nand spent on other activities without seeking and obtaining the necessary \napprovals. \n\uf0b7 \nThe Mission did not prepare and submit annual monitoring plans to \nMoFPED and NPA and also did not prepare and submit quarterly \nmonitoring reports to the Office of the Prime Minister and MoFPED \ncontrary to Paragraph 58 of the Budget Execution Circular for 2019/20. \n\uf0b7", "metadata": {"page": 192, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nThe entity submitted performance reports for Q1, Q2 and Q3 after the \ndeadline given for submission. I noted some cases of material \ninaccuracies and inconsistencies in the level of performance reported. \n\uf0b7 \nUGX.328,779,539 reported as cash in transit has been in the books of the \nEmbassy for more than three financial years and the funds have never \nbeen credited to the Consolidated Fund. \n\uf0b7 \nThe Mission had total collections including balance brought forward from \nprevious year of UGX.884,552,695out of which UGX.180,503,771 had \nbeen transferred to the Treasury for onward transfer to the Consolidated \nFund leaving a balance UGX.704,048,924 not remitted. \n\uf0b7 \nThe Embassy paid USD.25,000.00 (equivalent to UGX.93,258,250) in \nrespect of education allowances direct to its officials instead of their", "metadata": {"page": 192, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "respective education institutions or schools contrary to Section (E - e) \nParagraphs 19 and 20 of the Public Service Standing Orders, 2010. \n\uf0b7 \nUSD.1,613.00 (equivalent to UGX.6,017,022) out of which USD.1,076.00 \n(equivalent to UGX.4,013,835) representing 2/3 of the amount should \nhave been recovered from the respective staff was incurred on the \npayments for telephone bills during the period. The recovery was not \neffected. \n\uf0b7 \nOut of an approved staff structure of 6 staff positions for the Mission, 5 \n(83%) were filled leaving 1(17%) vacant. \n16. \nUganda \nEmbassy \nin \nKhartoum. \n2019/20 \n \nOpinion \n\uf0b7 \nOut of the planned 10 strategic targets/goals in the Mission charter, 5", "metadata": {"page": 192, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "outputs/targets had been fully achieved while 3 were partially achieved. \n\uf0b7 \nThere was a shortfall in NTR collections amounting to UGX.2.5Bn \nrepresenting 2.01% performance. \n\uf0b7 \nI sampled 4 outputs with a total of 11 activities and actual expenditure of", "metadata": {"page": 192, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "182 \n \nUnqualified \nUGX.4.169Bn and observed that 2 outputs with a total of 6 activities and \nexpenditure worth UGX.0.95Bn were fully quantified, 1 output with a total \nof 4 activities and expenditure worth UGX.3.11Bn was insufficiently \nquantified while 1 output with 1 activity and expenditure worth UGX.0.11 \nwas totally not quantified. I further observed that no output was fully \nimplemented while 3 outputs with 10 activities worth UGX.4.09Bn were \npartially implemented. \n\uf0b7 \nFunds to the tune of USD.4,393.04 (equivalent to UGX.15,595,150) were \nirregularly diverted from the activities on which they were budgeted and \nspent on other activities without seeking and obtaining the necessary \napprovals. \n\uf0b7 \nThe Mission did not prepare and submit annual monitoring plans to", "metadata": {"page": 193, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "MoFPED and NPA and also did not prepare and submit quarterly \nmonitoring reports to the Office of the Prime Minister and MoFPED \ncontrary to Paragraph 58 of the Budget Execution Circular for 2019/20. \n\uf0b7 \nThe entity submitted performance reports for Q1, Q2 and Q3 after the \ndeadline given for submission. \n\uf0b7 \nThe Embassy paid USD.17,500.00 (equivalent to UGX.64,925,000) in \nrespect of education allowances direct to its officials instead of their \nrespective education institutions or schools contrary to Section (E - e) \nParagraphs 19 and 20 of the Public Service Standing Orders, 2010. \n\uf0b7 \nThe Embassy spent USD.3,702.42 (equivalent to UGX.13,702,656.42) on \nrefunds for medical expenses to its officer\u2019s contrary to the requirements \nof Section M (m-a) (14) of the Public Service Standing Orders, 2010. \n\uf0b7", "metadata": {"page": 193, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nUSD.7,979.94 (equivalent to UGX.29,605,577) out of which USD.5,319.96 \n(equivalent to UGX.19,737,051) representing 2/3 of the amount should \nhave been recovered from the respective staff was incurred on the \npayments for telephone bills during the period. The recovery was not \naffected. \n\uf0b7 \nOut of an approved staff structure of 5 staff positions for the Mission, 4 \n(80%) were filled leaving 1 (20%) vacant. \n17 \nUganda Embassy in Kigali. \n2019/20 \n \nOpinion \nUnqualified \n\uf0b7 \nOut of the planned 10 strategic targets/goals in the Mission charter, 2 \noutputs/targets had been fully achieved, 2 were partially achieved while 6 \nwere partially achieved. \n\uf0b7", "metadata": {"page": 193, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "were partially achieved. \n\uf0b7 \nThere was a shortfall in NTR collections amounting to UGX.3.07Bn \nrepresenting 2.3% performance. \n\uf0b7 \nI sampled 4 outputs with a total of 13 activities and actual expenditure of \nUGX.3.325Bn and observed that all the 4 outputs were not quantified. \nTherefore, I was unable to undertake assessment of the performance of \nthe Mission. \n\uf0b7 \nThe Mission did not prepare and submit annual monitoring plans to \nMoFPED and NPA and also did not prepare and submit quarterly \nmonitoring reports to the Office of the Prime Minister and MoFPED \ncontrary to Paragraph 58 of the Budget Execution Circular for 2019/20. \n\uf0b7 \nThe entity submitted performance reports for Q1, Q2 and Q3 after the \ndeadline given for submission. I noted that the cumulative activities \nreported in the fourth quarter performance report did not include all \nactivities implemented in the first, second and third quarters.", "metadata": {"page": 193, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nI noted that the assets register maintained was not in the format \nprescribed in the Treasury Instructions and lacked details of date of \npurchase, cost of purchase, maintenance cost, asset code and estimated", "metadata": {"page": 193, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "183 \n \nuseful life. \n\uf0b7 \nOut of an approved staff structure of 5 staff positions for the Mission, two \n(2) (40%) were filled leaving 3 (60%) vacant. \n18 \nUganda \nEmbassy \nin \nKinshasa. \n2019/20 \n \nOpinion \nQualified \n\uf0b7 \nUGX.241,949,940 was reported as the variance between the approved \nbudget/warrants and the actual expenditure instead of UGX.3,564,587. \nThe source of UGX.241,949,940 could not be established. \n\uf0b7 \nThe statement of revenue collected in the financial statements in \ncomparison with statement of performance and the NTR estimates for the \nyear revealed different amounts were budgeted for as NTR collections for \nthe \nyear", "metadata": {"page": 194, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "the \nyear \nUGX.700,000,000 \nin \nthe \nStatement \nof \nPerformance, \nUGX.2,090,000,000 in the NTR estimates book, UGX.245,514,528 in the \nStatement \nof \nAppropriation \n(based \non \nservices \nvoted) \nand \nUGX.245,514,528 in the Statement of revenue collected during the year. \nThis misleads the users of the financial statements. \n\uf0b7 \nAll 8 strategic targets/goals in the Mission charter were partially achieved. \n\uf0b7 \nThere was a shortfall in NTR collections amounting to UGX.1.844Bn \nrepresenting 11.75% performance. \n\uf0b7 \nI sampled 3 outputs with a total of 6 activities and actual expenditure of", "metadata": {"page": 194, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "UGX.4.13Bn and observed that 2 outputs with a total of 4 activities and \nexpenditure worth UGX.1.21Bn were fully quantified while 1 output with a \ntotal of 2 activities and expenditure worth UGX.2.91Bn was insufficiently \nquantified. Of the outputs that were fully quantified, 4 activities worth \nUGX.1.21Bn were partially implemented. \n\uf0b7 \nThe Mission did not prepare and submit annual monitoring plans to \nMoFPED and NPA and also did not prepare and submit quarterly \nmonitoring reports to the Office of the Prime Minister and MoFPED \ncontrary to Paragraph 58 of the Budget Execution Circular for 2019/20. \n\uf0b7 \nThe entity submitted performance reports for Q1, and Q4 after the \ndeadline given for submission. \n\uf0b7 \nThe Embassy paid UGX.83,932,425 in respect of education allowances \ndirect to its officials instead of their respective education institutions or", "metadata": {"page": 194, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "schools contrary to Section (E - e) Paragraphs 19 and 20 of the Public \nService Standing Orders, 2010. \n\uf0b7 \nUSD.45,232 (equivalent to UGX.168,730,287) was spent on purchases \nand allowances which are not small incidental expenditures such as \npostage and other office costs as guided by the Treasury Instructions \n2017. I found this irregular. \n\uf0b7 \nThe Embassy paid allowances to staff in form of COVID Allowances \ntotalling to USD.3,100 (equivalent to UGX.11,564,023), a period when DR \nCongo was under lock down (March to June, 2020) contrary to Paragraph \n(E-a)1 \u2013 2 of the Public Service Standing Orders, 2010 . \n\uf0b7 \nI noted that procurements worth UGX.54,649,335 were undertaken \noutside the approved procurement plan and procurement for medical \ninsurance of staff worth UGX.71,495,505 was a direct procurement with", "metadata": {"page": 194, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "no justification. \n\uf0b7 \nThe Embassy had a fixed asset register that lacked information such as \ndate of purchase, estimated useful life, maintenance costs and the \nexpected date of disposal and a number of the entity\u2019s assets were not \nwell maintained and utilized. \n\uf0b7 \nOut of an approved staff structure of 21 staff positions for the Mission, 18", "metadata": {"page": 194, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "184 \n \n(85.7%) were filled leaving 3 (14.3%) vacant. \n19 \nUganda High Commission in \nKuala Lumpur. \n2019/20 \n \nOpinion \nUnqualified \n\uf0b7 \nOut of the planned 10 (ten) strategic targets/goals in the Mission charter, \none (1) target had been fully achieved, three (3) were partially achieved, \nwhile six (6) were not achieved. \n\uf0b7 \nThere was a shortfall in NTR collections amounting to UGX.2.068Bn \nrepresenting 1% performance. \n\uf0b7 \nI sampled 3 outputs with a total of 13 activities and actual expenditure of \nUGX.3.57Bn and observed that 2 outputs with a total of 9 activities and \nexpenditure worth UGX.0.87Bn were fully quantified while 1 output with a", "metadata": {"page": 195, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "total of 4 activities and expenditure worth UGX.2.6Bn was insufficiently \nquantified. Of the fully quantified outputs, 1 output with 5 activities worth \nUGX.0.21Bn was fully implemented while 1 output with 4 activities worth \nUGX.0.66Bn was partially implemented. \n\uf0b7 \nFunds to the tune of MYR.11,209 (equivalent to UGX.9,763,039) were \nirregularly diverted from purchase of specialized machinery and \nequipment for which they were budgeted to purchase of curtains without \nseeking and obtaining the necessary approvals. \n\uf0b7 \nThe Mission did not prepare and submit annual monitoring plans to \nMoFPED and NPA and also did not prepare and submit quarterly \nmonitoring reports to the Office of the Prime Minister and MoFPED \ncontrary to Paragraph 58 of the Budget Execution Circular for 2019/20. \n\uf0b7 \nThe Mission submitted performance reports for Q2 and Q3 after the", "metadata": {"page": 195, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "deadline given for submission of the reports. \n\uf0b7 \nThe Embassy paid MYR.136,000 (equivalent to UGX.118,456,000) in \nrespect of education allowances direct to its officials instead of their \nrespective education institutions or schools contrary to Section (E - e) \nParagraphs 19 and 20 of the Public Service Standing Orders, 2010. \n\uf0b7 \nThe Mission has an approved staff structure of five (5) staff positions out \nof which, two (2) (40%) were filled leaving three (3) (60%) vacant. \n\uf0b7 \nManagement of the Embassy paid salary and FSA advances to staff to the \ntune of MYR.185,950 (equivalent to UGX.160,995,510) which exceeded \nthree (3) months gross pay and no authority was sought from Secretary \nto the Treasury. This is contrary to the Public Service Standing Orders, \n2010. \n20 \nUganda High Commission in \nLondon.", "metadata": {"page": 195, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "London. \n2019/20 \n \nOpinion \nUnqualified \n\uf0b7 \nOut of the planned 9 (nine) strategic targets/goals in the Mission charter, \nfour (4) targets had been fully achieved, three (3) were partially \nachieved, while two (2) were not achieved. \n\uf0b7 \nThere was a shortfall in NTR collections amounting to UGX.1.604Bn \nrepresenting 31% performance. \n\uf0b7 \nI sampled 4 outputs with a total of 7 activities and actual expenditure of \nUGX.7.32Bn and observed that all the 4 outputs with 7 activities and \nexpenditure worth UGX.7.32Bn were not quantified to enable assessment \nof performance. \n\uf0b7 \nFunds to the tune of GBP.2,598.56 (equivalent to UGX.11,756,583) were \nirregularly diverted from purchase of specialized machinery and", "metadata": {"page": 195, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "equipment for which they were budgeted to purchase of curtains without \nseeking and obtaining the necessary approvals. \n\uf0b7 \n Entities are supposed to report actual performance of the quarter as well \nas the cumulative activities of the previous quarter(s). I observed that \ncumulative performance reports did not include activities implemented in", "metadata": {"page": 195, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "185 \n \nthe previous quarter(s). \n\uf0b7 \nThe Mission had total collections including balance brought forward from \nprevious year of UGX.1,606,177,645 out of which UGX.706,072,607 had \nbeen transferred to the Treasury for onward transfer to the Consolidated \nFund leaving a balance UGX.900,105,038 not remitted. \n\uf0b7 \nPayables increased from UGX.130,550,604 in the previous year to \nUGX.161,515,890 in the year under review, an increase of 24%. The \narrears remained unsettled at the close of the year. \n \n\uf0b7 \nManagement has accumulated receivable advances to the tune of \nUGX.105,435,937 of which UGX.79,896,783 (76%) relates to the prior", "metadata": {"page": 196, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "year and remains unrecovered. \n\uf0b7 \nThe Statement of Stores and Other Assets (physical assets) as at the end \nof the financial year 2019/2020 revealed that additions during the year \nrelating to non-residential buildings were disclosed as UGX.465,161,335, \nhowever, the Embassy procured items amounting to GBP.107,661 \n(equivalent \nto \nUGX.494,777,699) \nimplying \nthat \nitems \nworth \nUGX.29,616,364 were not disclosed in this statement thus understating \nthe Statement of Stores and Other Assets (physical assets). \n\uf0b7 \nThe Embassy had a capital expenditure budget of UGX.275,000,000 but \nitems worth UGX.494,777,699 were procured resulting into an over \nexpenditure of UGX.224,777,699.", "metadata": {"page": 196, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nThe Embassy paid GBP.28,187.49 (equivalent UGX.129,541,258) in \nrespect of education allowances direct to its officials instead of their \nrespective education institutions or schools contrary to Section (E - e) \nParagraphs 19 and 20 of the Public Service Standing Orders, 2010. \n\uf0b7 \nThe Embassy spent GBP.14,300.09 (equivalent to UGX.65,718,929) on \nrefunds for medical expenses to its officers contrary to the requirements \nof Section M (m-a) (14) of the Public Service Standing Orders, 2010. \n\uf0b7 \nThe Mission has an approved staff structure of eight (8) staff positions \nout of which, 5 (63%) were filled leaving 3 (37%) vacant. \n21. \nUganda \nEmbassy \nin \nMogadishu. \n 2019/20 \n \nOpinion \nUnqualified", "metadata": {"page": 196, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Opinion \nUnqualified \n\uf0b7 \nOut of the planned 5 strategic targets/goals in the Mission charter, all the \n5 were partially achieved. \n\uf0b7 \nThere was a shortfall in NTR collections amounting to UGX.3.14Bn \nrepresenting 0% performance. \n\uf0b7 \nOut of the total receipts of UGX.3.78Bn, UGX.2.87Bn was spent by the \nentity resulting in an unspent balance of UGX.0.91Bn representing an \nabsorption level of 76%. \n\uf0b7 \nI sampled 3 outputs with a total of 6 activities and actual expenditure of \nUGX.2.87Bn and observed that all the 3 outputs with a total of 6 activities \nand expenditure worth UGX.2.87Bn were not quantified at all. I was \ntherefore unable to assess the implementation of outputs/activities of the \nMission. \n\uf0b7", "metadata": {"page": 196, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Mission. \n\uf0b7 \nFunds to the tune of UGX.16,835,000 were irregularly diverted from the \nactivities on which they were budgeted and spent on other activities \nwithout seeking and obtaining the necessary approvals. \n\uf0b7 \nThe Mission did not prepare and submit annual monitoring plans to \nMoFPED and NPA and also did not prepare and submit quarterly \nmonitoring reports to the Office of the Prime Minister and MoFPED \ncontrary to Paragraph 58 of the Budget Execution Circular for 2019/20. \n\uf0b7 \nThe Mission submitted performance reports for Q1, Q2, Q3 and Q4 after", "metadata": {"page": 196, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "186 \n \nthe deadline given for submission. \n\uf0b7 \nThe Mission had total collections including balance brought forward from \nprevious year of UGX.850,244,773 out of which UGX.7,829 had been \ntransferred to the Treasury for onward transfer to the Consolidated Fund \nleaving a balance UGX.850,236,944 not remitted. \n\uf0b7 \nUSD.1,020,250 (equivalent to UGX.3,800,767,933) was withdrawn as \npetty cash during the year out of which USD.340,250.00 (equivalent to \nUGX.1,267,543,533) was withdrawn in the last quarter of the financial \nyear (March, April, May and June), the period affected by COVID 19 \nlockdown which appears irregular. \n\uf0b7 \nThe Embassy paid UGX.83,250,000 in respect of education allowances", "metadata": {"page": 197, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "direct to its officials instead of their respective education institutions or \nschools contrary to Section (E - e) Paragraphs 19 and 20 of the Public \nService Standing Orders, 2010. \n22. \nUganda \nConsulate \nin \nMombasa. \n2019/20 \n \nOpinion \nUnqualified \n\uf0b7 \nOut of the planned 6 strategic targets/goals in the Mission charter, 2 \noutputs/targets had been fully achieved while 4 were partially achieved. \n\uf0b7 \nThere was a shortfall in NTR collections amounting to UGX.2.089Bn \nrepresenting 0.01% performance. \n\uf0b7 \nOut of the total receipts for the financial year of UGX.1.996Bn, \nUGX.1.883Bn was spent by the entity resulting in an under expenditure of \nUGX.0.113Bn representing an absorption level of 94.34%. \n\uf0b7", "metadata": {"page": 197, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nUGX.12,562,792 was received as off-budget financing for a symposium \nheld in the financial year under review but the funds were not disclosed \nin the financial statements. \n\uf0b7 \nI sampled 3 outputs with a total of 4 activities and actual expenditure of \nUGX.1.883Bn and observed that 1 output with a total of 2 activities and \nexpenditure worth UGX.0.73Bn was fully quantified while 2 outputs with a \ntotal of 2 activities and expenditure worth UGX.1.15Bn were insufficiently \nquantified. The quantified output with all its activities with its activities \nand expenditure worth UGX.0.73Bn was partially implemented. \n\uf0b7 \nFunds to the tune of UGX.5,205,620 were charged wrongly on other \nexpenditure item codes without obtaining the necessary approvals. \n\uf0b7 \nThe Mission did not prepare and submit annual monitoring plans to", "metadata": {"page": 197, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "MoFPED and NPA and also did not prepare and submit quarterly \nmonitoring reports to the Office of the Prime Minister and MoFPED \ncontrary to Paragraph 58 of the Budget Execution Circular for 2019/20. \n\uf0b7 \nEntities are supposed to report actual performance of the quarter as well \nas the cumulative activities of the previous quarter(s). I observed that \ncumulative performance reports did not include activities implemented in \nthe previous quarter(s). \n\uf0b7 \nThe Embassy paid UGX.44,763,960 in respect of education allowances \ndirect to its officials instead of their respective education institutions or \nschools contrary to Section (E - e) Paragraphs 19 and 20 of the Public \nService Standing Orders, 2010. \n\uf0b7 \nA number of the Consulate\u2019s assets were old and due for boarding off but \nwere still at the Consulate resulting into loss of value and high \nmaintenance costs. \n23. \nUganda \nEmbassy \nin", "metadata": {"page": 197, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Embassy \nin \nMoscow. \n2019/20 \n\uf0b7 \nOut of the planned 24 (twenty-four) strategic targets/goals in the Mission \ncharter, thirteen (13) targets had been fully achieved, eight (8) were \npartially achieved, while three (3) were not achieved.", "metadata": {"page": 197, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "187 \n \n \nOpinion \nUnqualified \n\uf0b7 \nThere was a shortfall in NTR collections amounting to UGX.1.462Bn \nrepresenting 6.8% performance. \n\uf0b7 \nI sampled 4 outputs with a total of 12 activities and actual expenditure of \nUGX.4.32Bn and observed that 2 outputs with a total of 8 activities and \nexpenditure worth UGX.4Bn were fully quantified while 2 outputs with a \ntotal of 4 activities and expenditure worth UGX.0.32Bn were not \nquantified. The quantified outputs were partially quantified. \n\uf0b7 \nThe Mission did not prepare and submit annual monitoring plans to \nMoFPED and NPA and also did not prepare and submit quarterly \nmonitoring reports to the Office of the Prime Minister and MoFPED \ncontrary to Paragraph 58 of the Budget Execution Circular for 2019/20. \n\uf0b7", "metadata": {"page": 198, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nThe Mission submitted performance reports for Q1, and Q3, after the \ndeadline given for submission \n\uf0b7 \nThe Statement of Stores and Other Assets (physical assets) as at the end \nof the financial year 2019/2020 revealed that additions during the year \nrelating to non-residential buildings were disclosed as UGX.149,778,932, \nhowever, the Embassy procured items amounting to UGX.333,509,897 \nimplying that items worth UGX.183,730,965 were not disclosed in this \nstatement thus understating the Statement of Stores and Other Assets \n(physical assets). \n\uf0b7 \nThe Embassy had an approved budget of UGX.196,000,000 for \nprocurement of furniture and fixtures but a sum of UGX.333,509,897 on \nthis item resulting into an excess expenditure of UGX.137,509,987. \n\uf0b7", "metadata": {"page": 198, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nThe Embassy procured furniture and fittings for furnishing six residencies \nand a Chancery worth RUB.6,795,232 (equivalent to UGX.333,509,897) \nbut were not recorded in the Embassy asset register as well as the Board \nof Survey report, direct procurement method was used without \njustification, procurements did not undergo any evaluation of bids, \ncontracts committee was not involved during the procurement process \nand contract managers were not appointed for all the procurements. \n\uf0b7 \nThe Assets Register maintained by the Embassy was not in the format \nprescribed in the Treasury Instructions as it lacked details of date of \npurchase, cost of purchase, maintenance cost, asset code and estimated \nuseful life. \n\uf0b7 \nThe Embassy spent RUB.1,052,189.97 and EURO.370.37 (approximately \nUGX.53,187,249) on refunds for medical expenses to its officers contrary", "metadata": {"page": 198, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "to the requirements of Section M (m-a) (14) of the Public Service \nStanding Orders, 2010. \n\uf0b7 \nSalary advances to the tune of Euro. 4,681.18 (equivalent to \nUGX.19,537,232) were paid to to staff which exceeded three (3) months \ngross and though authorised by the Accounting Officer of the Embassy, \nno authority was sought from Secretary to the Treasury contrary to the \nPublic Service Standing Orders. \n24. \nUganda High Commission in \nNairobi. \n2019/20 \n \nOpinion \nUnqualified \n\uf0b7 \nOut of the planned 10 (ten) strategic targets/goals in the Mission charter, \n2 (two) were partially achieved while eight (8) were not achieved. \n\uf0b7 \nThere was a shortfall in NTR collections amounting to UGX.2.73Bn \nrepresenting 12.8% performance. \n\uf0b7", "metadata": {"page": 198, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nOut of the total receipts for the financial year of UGX.4.94Bn, UGX.3.77Bn \nwas spent by the entity resulting in an unspent balance of UGX.1.17Bn \nrepresenting an absorption level of 76.3%. \n\uf0b7 \nI sampled 4 outputs with a total of 7 activities and actual expenditure of", "metadata": {"page": 198, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "188 \n \nUGX.3.77Bn and observed that all the 4 outputs with a total of 7 activities \nand expenditure worth UGX.3.77Bn were fully quantified but were \npartially implemented. \n\uf0b7 \nThe Mission did not prepare and submit annual monitoring plans to \nMoFPED and NPA and also did not prepare and submit quarterly \nmonitoring reports to the Office of the Prime Minister and MoFPED \ncontrary to Paragraph 58 of the Budget Execution Circular for 2019/20. \n\uf0b7 \nThe Mission submitted performance reports for all quarters after the \ndeadline given for submission. I also observed that cumulative \nperformance reports revealed that the subsequent quarterly performance \nreports did not include activities implemented in the previous quarter(s). \n\uf0b7 \nAccumulated arrears of revenue to the tune of UGX.181,948,023 most of \nwhich related to the prior year remained uncollected. \n\uf0b7", "metadata": {"page": 199, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nThe Embassy paid a sum of USD.46,950 (equivalent to UGX.174,513,150) \nto Toyota Kenya Limited for the acquisition of a Land Cruiser Prado but \nthe procurement was undertaken by the High Commissioner instead of \nthe Accounting Officer which resulted into usurping the powers of the \nAccounting Officer, over committing the Mission, non-compliance with \nGovernment ban on acquisition of motor vehicles, un-planned \nprocurement, use of inappropriate procurement method and failure to \ninvolve the Contracts Committee. \n\uf0b7 \nThe Embassy paid KES.3,360,000 (equivalent to UGX.117,633,600) in \nrespect of education allowances direct to its officials instead of their \nrespective education institutions or schools contrary to Section (E - e) \nParagraphs 19 and 20 of the Public Service Standing Orders, 2010. \n\uf0b7 \nThe Embassy spent KES.620,485 (equivalent to UGX.21,723,180)on", "metadata": {"page": 199, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "refunds for medical expenses to its officers contrary to the requirements \nof Section M (m-a) (14) of the Public Service Standing Orders, 2010. \n\uf0b7 \nThe Mission did not have a fixed assets register in the format prescribed \nin the Treasury Instructions and therefore additions and disposals to the \nassets could not be verified. I further observed that a number of the \nentity\u2019s assets were old and due for boarding off exposing the assets to \nloss of value and high maintenance costs. \n\uf0b7 \nThe Mission has an approved staff structure of seven (7) staff positions \nout of which 5 (71.4%) were filled leaving 2 (28.5%) vacant. \n25. \nUganda Embassy in New \nDelhi. \n2019/20 \n \nOpinion \nUnqualified \n\uf0b7 \nOut of the planned 6 (six) strategic targets/goals in the Mission charter, 1", "metadata": {"page": 199, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "(one) was fully achieved while 2 (two) were partially achieved while three \n(3) were not achieved. \n\uf0b7 \nThere was a shortfall in NTR collections amounting to UGX.2.62Bn \nrepresenting 0.0015% performance. \n\uf0b7 \nOut of the total receipts for the financial year of UGX.4.554Bn, \nUGX.3.732Bn was spent by the entity resulting in an unspent balance of \nUGX.0.822Bn representing an absorption level of 81.9%. \n\uf0b7 \nI sampled 3 outputs with a total of 6 activities and actual expenditure of \nUGX.3.732Bn and observed that all the 3 outputs were fully quantified \nand none was fully implemented. \n\uf0b7 \nFunds to the tune of INR.42,262 (equivalent to UGX.2,062,385) were \nirregularly diverted from the activities on which they were budgeted and", "metadata": {"page": 199, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "spent on other activities without seeking and obtaining the necessary \napprovals. \n\uf0b7 \nThe Mission did not prepare and submit annual monitoring plans to", "metadata": {"page": 199, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "189 \n \nMoFPED and NPA and contrary to Paragraph 58 of the Budget Execution \nCircular for 2019/20. \n\uf0b7 \nCumulative performance reports did not include activities implemented in \nthe previous quarter(s). \n\uf0b7 \nThe Mission had total collections including balance brought forward from \nprevious year of UGX.524,440,586 out of which UGX.160,671,521 had \nbeen transferred to the Treasury for onward transfer to the Consolidated \nFund leaving a balance UGX.1,284,723,792 not remitted. \n\uf0b7 \nINR.38,324.24 (equivalent to UGX.1,839,564) out of which 2/3 of the \namount should have been recovered from the respective staff was \nincurred on the payments for telephone bills during the period. The \nrecovery was not effected. \n\uf0b7", "metadata": {"page": 200, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nSalary advances to the tune of USD. 98,406.39 (equivalent to \nUGX.369,023,963) were paid to staff during the year which exceeded \nthree (3) months gross contrary to the Public Service Standing Orders. \n\uf0b7 \nThe Embassy spent INR.549,516.00 (equivalent to UGX.26,376,775) on \nrefunds for medical expenses to its officers contrary to the requirements \nof Section M (m-a) (14) of the Public Service Standing Orders, 2010. \n26. \nThe Uganda Embassy in \nNew York. \n2019/20 \n \nOpinion \nQualified \n\uf0b7 \nThe Embassy had a capital expenditure budget of UGX.0 but items worth \nUGX.665,143,450 resulting into an over expenditure of UGX.665,143,450. \n\uf0b7", "metadata": {"page": 200, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nI sampled 4 outputs with a total of 10 activities and actual expenditure of \nUGX.16.77Bn and observed that all four (4) outputs were not quantified. I \nwas unable to assess the extent of implementation of quantified \nactivities. \n\uf0b7 \nFunds to the tune of USD.16,155 (equivalent to UGX.60,182,706) were \nirregularly diverted from the activities on which they were budgeted and \nspent on other activities without seeking and obtaining the necessary \napprovals. \n\uf0b7 \nThe Mission did not prepare and submit annual monitoring plans to \nMoFPED and NPA and also did not prepare and submit quarterly \nmonitoring reports to the Office of the Prime Minister and MoFPED \ncontrary to Paragraph 58 of the Budget Execution Circular for 2019/20. \n\uf0b7 \nThe entity submitted performance reports for Q1, Q2, Q3, Q4 after the \ndeadline given for submission. \n\uf0b7", "metadata": {"page": 200, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nThe Mission had total collections including balance brought forward from \nprevious year of UGX.13,431,978,161 out of which UGX.3,957,841,655 \nhad been transferred to the Treasury for onward transfer to the \nConsolidated Fund leaving a balance UGX. 9,474,136,506 not remitted. \n\uf0b7 \nThe Mission had outstanding payables to a tune of UGX.208,571,725 as \nthe end of June 2019 but details were not provided for audit verification \nand the arrears were paid without a budget. \n\uf0b7 \nThe Embassy had accumulated arrears of revenue to the tune of \nUGX.3,801,562,591 out of which UGX.2,932,243,479 (77%) relates to \nrevenue arrears accumulated in the prior years and remains uncollected. \nThe details relating to the arrears were also not provided for audit", "metadata": {"page": 200, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "verification. \n\uf0b7 \nThe Mission paid UGX.134,726,559 in respect of education allowances \ndirect to its officials instead of their respective educational institutions or \nschools contrary to Section (E - e) Paragraphs 19 and 20 of the Public \nService Standing Orders 2010.", "metadata": {"page": 200, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "190 \n \n\uf0b7 \nThe Embassy spent UGX.145,667,183 on refunds for medical expenses to \nits officers contrary to the requirements of Section M (m-a) (14) of the \nPublic Service Standing Orders, 2010. \n\uf0b7 \nThe Mission prepared an approved procurement plan for the financial \nyear 2019/2020 but procurement reports and procurement files were not \navailed for audit. \n\uf0b7 \nThe Mission has an approved staff structure of 9 staff positions out of \nwhich 8 (88%) were filled leaving 01 (12%) vacant. \n27. \nUganda High Commission in \nOttawa. \n2019/20 \n \nOpinion \nUnqualified \n\uf0b7 \nOut of the planned 8 (eight) strategic targets/goals in the Mission charter, \nfour (4) were fully achieved while 2 (two) were partially achieved while", "metadata": {"page": 201, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "two (2) were not achieved. \n\uf0b7 \nThere was a shortfall in NTR collections amounting to UGX.2.077Bn \nrepresenting 0.62% performance. \n\uf0b7 \nI sampled 3 outputs with a total of 8 activities and actual expenditure of \nUGX.5.63Bn and observed that all the 3 outputs were fully quantified but \nnone was fully implemented. \n\uf0b7 \nFunds to the tune of CAD.3,301.3 (equivalent to UGX.9,586,521) were \nirregularly diverted from the activities on which they were budgeted and \nspent on other activities without seeking and obtaining the necessary \napprovals. \n\uf0b7 \nThe Mission did not prepare and submit the annual monitoring plans to \nMoFPED and NPA contrary Paragraph 58 of the Budget Execution Circular \nfor 2019/20. \n\uf0b7 \nThe Mission had total collections including balance brought forward from", "metadata": {"page": 201, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "previous year of UGX.2,585,956,931 out of which UGX.39,588,787 had \nbeen transferred to the Treasury for onward transfer to the Consolidated \nFund leaving a balance UGX.2,546,368,144 not remitted. \n\uf0b7 \nThe Mission paid CAD.35,000.00 (equivalent to UGX.101,605,000)in \nrespect of education allowances direct to its officials instead of their \nrespective educational institutions or schools contrary to Section (E - e) \nParagraphs 19 and 20 of the Public Service Standing Orders 2010. \n\uf0b7 \nThe Embassy spent CAD.114,255 (equivalent to UGX.331,693,168) on \nrefunds for medical expenses to its officers contrary to the requirements \nof Section M (m-a) (14) of the Public Service Standing Orders, 2010. \n28. \nUganda Embassy in Paris. \n2019/20", "metadata": {"page": 201, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "2019/20 \n \nOpinion \nUnqualified \n\uf0b7 \nThe Mission made upfront payments for rent of EUR.50,183 (equivalent \nto UGX.209,723,288) beyond the financial year but did not disclose the \nsame as prepayments in the Statement of Financial Position for the year. \n\uf0b7 \nFunds to the tune of UGX.40,504,892 were irregularly diverted from the \nactivities on which they were budgeted and spent on other activities \nwithout seeking and obtaining the necessary approvals. \n\uf0b7 \nThere was a shortfall in NTR collections amounting to UGX.2.61Bn \nrepresenting 0.4% performance. \n\uf0b7 \nOut of the total receipts for the financial year of UGX.9.59Bn, UGX.5.56Bn \nwas spent by the entity resulting in an unspent balance of UGX.4.03Bn", "metadata": {"page": 201, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "representing an absorption level of 58%. \n\uf0b7 \nI sampled 4 outputs with a total of 19 activities and actual expenditure of \nUGX.5.56Bn and observed that 1 output (25%) with a total of 7 activities \nand expenditure worth UGX.1.61Bn was insufficiently quantified while 3 \noutputs (75%) with a total of 12 activities and expenditure worth UGX \n3.95Bn were not quantified at all. I was therefore unable to undertake", "metadata": {"page": 201, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "191 \n \nassessment of implementation of outputs by the Mission. \n\uf0b7 \nThe Mission did not prepare and submit annual monitoring plans to \nMoFPED and NPA and also did not prepare and submit quarterly \nmonitoring reports to the Office of the Prime Minister and MoFPED \ncontrary to Paragraph 58 of the Budget Execution Circular for 2019/20. \n\uf0b7 \nThe Mission submitted performance reports for Q1, Q2, Q3 and Q4 after \nthe deadline given for submission. Furthermore, entities are supposed to \nreport actual performance of the quarter as well as the cumulative \nactivities of the previous quarter(s) but the Mission quarterly performance \nreports did not include activities implemented in the previous quarter(s). \n\uf0b7 \nThe Embassy paid EUROS.30,691 (equivalent to UGX.128,071,701) in \nrespect of education allowances direct to its officials instead of their \nrespective education institutions or schools contrary to Section (E - e)", "metadata": {"page": 202, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Paragraphs 19 and 20 of the Public Service Standing Orders, 2010. \n\uf0b7 \nThe Embassy spent EUROS.7,933 (equivalent to UGX.33,101,972) on \nrefunds for medical expenses to its officers contrary to the requirements \nof Section M (m-a) (14) of the Public Service Standing Orders, 2010. \n\uf0b7 \nUGX.3.75BN was released for renovation and modification of Uganda \nChancery Building in Paris but the procurement was undertaken using the \nrestricted bidding instead of open domestic bidding without proper \njustification. Furthermore, the implementation of the contract had not \ncommenced by the end of the financial and the contactor is said to have \nhad difficulty in obtaining a bank guarantee from banks because the \nMission is a foreign entity which could pose challenges in contract \nperformance. \n\uf0b7 \nThe Mission has an approved staff structure of 7 staff positions out of \nwhich positions, 6 (86%) were filled leaving 1 (14%) vacant.", "metadata": {"page": 202, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nEUR.43,541.63 (equivalent to UGX.181,969,420) was paid from the \nMission\u2019s imprest account to cater for official activities but EUR.15,851 \n(equivalent to UGX.66,244,024) was spent on activities such as, \nallowances, purchase of computer and household items which cannot be \ncategorised under imprest making it irregular. \n29. \nUganda \nEmbassy \nin \nPretoria. \n2019/2020 \n \nOpinion \nUnqualified \n\uf0b7 \nOut of the planned 8 (eight) strategic targets/goals in the Mission charter, \ntwo (2) were fully achieved while 4 (four) were partially achieved while \ntwo (2) were not achieved. \n\uf0b7 \nThere was a shortfall in NTR collections amounting to UGX.2.49Bn \nrepresenting 5% performance.", "metadata": {"page": 202, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "representing 5% performance. \n\uf0b7 \nI sampled 4 outputs with a total of 8 activities and actual expenditure of \nUGX.3.62Bn and observed that three (3) outputs with a total of seven (7) \nactivities and expenditure worth UGX.3.54Bn were fully quantified while \none (1) output with one (1) activity and expenditure worth UGX.0.08Bn \nwas not quantified. Of the quantified outputs, one (1) output with three \n(3) activities worth UGX.0.38Bn was fully implemented while two (2) \noutputs with four (4) activities worth UGX.3.16Bn were partially \nimplemented. \n\uf0b7 \nFunds to the tune of RAND.35,774.08 (equivalent to UGX.7,697,509) \nwere irregularly diverted from the activities on which they were budgeted \nand spent on other activities without seeking and obtaining the necessary", "metadata": {"page": 202, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "approvals. \n\uf0b7 \nThe entity submitted performance reports for Q1, Q2, Q3, and Q4, \nhowever they were submitted after the deadline. I also observed that \ncumulative performance reports did not include activities implemented in", "metadata": {"page": 202, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "192 \n \nthe previous quarter(s) \n\uf0b7 \nThe Embassy paid USD.18,000.009 (equivalent to UGX.66,785,973) in \nrespect of education allowances direct to its officials instead of their \nrespective education institutions or schools contrary to Section (E - e) \nParagraphs 19 and 20 of the Public Service Standing Orders, 2010. \n\uf0b7 \nThe Embassy spent 162,579.25 RAND (equivalent to UGX.34,982,177) on \nrefunds for medical expenses to its officers contrary to the requirements \nof Section M (m-a) (14) of the Public Service Standing Orders, 2010. \n\uf0b7 \nThe Mission has an approved staff structure of 6 staff positions out of \nwhich, 5 (83%) were filled leaving 1 (17%) vacant. \n30. \nUganda Embassy in Riyadh \n2019/2020 \n \nOpinion", "metadata": {"page": 203, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Opinion \nUnqualified \n\uf0b7 \nThere was a shortfall in NTR collections amounting to UGX.2.088Bn \nrepresenting 0.5% performance. \n\uf0b7 \nI sampled 3 outputs with a total of 13 activities and actual expenditure of \nUGX.4.156Bn and observed that all the 3 outputs were fully quantified. I \nfurther observed that 1 output with 5 activities worth UGX.3.79Bn was \nfully implemented while \n2 \noutputs \nwith \n8 \nactivities \nworth \nUGX.0.36Bn were partially implemented. \n\uf0b7 \nThe Mission did not prepare and submit annual monitoring plans to \nMoFPED and NPA and also did not prepare and submit quarterly \nmonitoring reports to the Office of the Prime Minister and MoFPED \ncontrary to Paragraph 58 of the Budget Execution Circular for 2019/20. \n\uf0b7", "metadata": {"page": 203, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nThe Mission submitted performance reports for Q1, Q2, Q3 and Q4 after \nthe deadline given for submission. \n\uf0b7 \nThe Embassy paid UGX.39,862,700 in respect of education allowances \ndirect to its officials instead of their respective education institutions or \nschools contrary to Section (E - e) Paragraphs 19 and 20 of the Public \nService Standing Orders, 2010. \n\uf0b7 \nThe Embassy spent SAR.132,601.64 (approximately UGX.131,036,012.44) \non refunds for medical expenses to its officers contrary to the \nrequirements of Section M (m-a) (14) of the Public Service Standing \nOrders, 2010. \n\uf0b7 \nUGX.30,569,246 out of which 2/3 of the amount should have been \nrecovered from the respective staff was incurred on the payments for \ntelephone bills during the period. The recovery was not effected. \n\uf0b7", "metadata": {"page": 203, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nThe Mission has an approved staff structure of 5 staff positions out of \nwhich, 3 (60%) were filled leaving 2 (40%) vacant. \n31. \nUganda Embassy in Rome \n2019/20 \n \nOpinion \nUnqualified \n\uf0b7 \nOut of the planned 8 (eight) strategic targets/goals in the Mission charter, \ntwo (2) targets had been fully achieved and six (6) were partially \nachieved. \n\uf0b7 \nThere was a shortfall in NTR collections amounting to UGX.1.503Bn \nrepresenting 4.2% performance. \n\uf0b7 \nOf the total receipts for the financial year of UGX.5.564Bn, UGX.4.952Bn \nwas spent by the entity resulting in an unspent balance of UGX.0.612Bn \nrepresenting an absorption level of 89%. \n\uf0b7", "metadata": {"page": 203, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nI sampled 4 outputs with a total of 8 activities and actual expenditure of \nUGX.3.62Bn and observed that 3 outputs with a total of 7 activities and \nexpenditure worth UGX.3.54Bn were fully quantified while 1 output with 1 \nactivity and expenditure worth UGX.0.08Bn was not quantified. Of the \nquantified outputs, 1) output with 3) activities worth UGX.0.38Bn was \nfully implemented while 2 outputs with 4 activities worth UGX.3.16Bn", "metadata": {"page": 203, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "193 \n \nwere partially implemented. \n\uf0b7 \nThe Mission did not prepare and submit annual monitoring plans to \nMoFPED and NPA and also did not prepare and submit quarterly \nmonitoring reports to the Office of the Prime Minister and MoFPED \ncontrary to Paragraph 58 of the Budget Execution Circular for 2019/20. \n\uf0b7 \nThe Mission had total collections including balance brought forward from \nprevious year of UGX.1,702,152,606 out of which UGX.67,884,170 had \nbeen transferred to the Treasury for onward transfer to the Consolidated \nFund leaving a balance UGX.1,634,268,436 not remitted. \n\uf0b7 \nThe Mission reported cash in transit of UGX.32,102,340 which relates to \nover 10 years ago which may be difficult for the Mission to trace or \nrecover. \n\uf0b7 \nThe Statement of Contingent Liabilities in the financial statements for the", "metadata": {"page": 204, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "year ended 30th June, 2020, indicated an opening balance of \nUGX.1,141,003,975.79 instead of UGX.542,522,152.97 resulting into an \noverstatement of UGX.598,481,822.82. \n\uf0b7 \nDuring the year 2019/2020, management of the Mission was availed a \nsupplementary funding of UGX.433,360,086 to cater for settlement of \nfour (4) court cases but the Mission still remained with outstanding \nliabilities for settlement of court cases amounting to UGX.542,522,152 at \nthe end of the year. \n\uf0b7 \nThe Embassy spent Euros.8,430.75 (equivalent to UGX.35,422,471) on \nrefunds for medical expenses to its officers contrary to the requirements \nof Section M (m-a) (14) of the Public Service Standing Orders, 2010. \n\uf0b7", "metadata": {"page": 204, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nThe Embassy has an approved staff structure of 6 staff positions out of \nwhich 5 (83%) were filled leaving 1 (15%) vacant. \n32. \nUganda Embassy in Tokyo \n2019/20 \nOpinion \nUnqualified \n\uf0b7 \nOut of the planned 17 (seventeen) strategic targets/goals in the Mission \ncharter, nine (9) were fully achieved, 4 (four) were partially achieved \nwhile four (4) were not achieved at all. \n\uf0b7 \nThere was a shortfall in NTR collections amounting to UGX.1.451Bn \nrepresenting 8% performance. \n\uf0b7 \nI sampled 5 outputs with a total of 17 activities and actual expenditure of \nUGX.5.76Bn and observed that all the 5 outputs were not quantified. I \nwas therefore unable to undertake assessment of performance. \n\uf0b7", "metadata": {"page": 204, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nFunds to the tune of JPY.730,423 (equivalent to UGX.25,352,982) were \nirregularly diverted from the activities on which they were budgeted and \nspent on other activities without seeking and obtaining the necessary \napprovals. \n\uf0b7 \nThe Mission did not prepare and submit the annual monitoring plans to \nMoFPED and NPA contrary to Paragraph 58 of the Budget Execution \nCircular for 2019/20. \n\uf0b7 \nThe Mission submitted performance reports for Q1, Q2, Q3 and Q4 after \nthe deadline given for submission. \n\uf0b7 \nThe Mission paid JPY.3,300,000 (equivalent to UGX.115,295,400) in \nrespect of education allowances direct to its officials instead of their \nrespective educational institutions or schools contrary to Section (E - e) \nParagraphs 19 and 20 of the Public Service Standing Orders 2010. \n\uf0b7", "metadata": {"page": 204, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nThe Embassy spent Euros.8,430.75 (equivalent to UGX.35,422,471) on \nrefunds for medical expenses to its officers contrary to the requirements \nof Section M (m-a) (14) of the Public Service Standing Orders, 2010.", "metadata": {"page": 204, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "194 \n \n\uf0b7 \nJPY.2,591,132 (equivalent to UGX.89,938,192) out of which 2/3 of the \namount should have been recovered from the respective staff was \nincurred on the payments for telephone bills during the period. The \nrecovery was not effected. \n\uf0b7 \nThe fixed assets register maintained by the entity was not in the format \nprescribed in the Treasury Instructions and lacked details of: cost of \nsome items, maintenance cost, estimated useful life, among others and \nassets which had already been disposed were still in the assets register. \n33. \nUganda \nEmbassy \nin \nWashington. \n2019/20 \n \nOpinion \nUnqualified \n\uf0b7 \nFunds to the tune of UGX.184,722,054 were irregularly diverted from the", "metadata": {"page": 205, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "activities on which they were budgeted and spent on other activities \nwithout seeking and obtaining the necessary approvals. \n\uf0b7 \nOut of the planned 31 strategic targets/goals in the Mission charter, 13 \nwere fully achieved while 18 were partially achieved. \n\uf0b7 \nThere was a shortfall in NTR collections amounting to UGX.3.64Bn \nrepresenting 0.7% performance. \n\uf0b7 \nOut of the total receipts for the financial year of UGX.8,039,710,935, \nUGX.7,707,884,006 was spent by the entity resulting in an unspent \nbalance of UGX.331,826,929 representing an absorption level of 96%. \n\uf0b7 \nI sampled 6 outputs with a total of 17 activities and actual expenditure of \nUGX.7.67Bn and observed that all 6 outputs were not quantified. I was \ntherefore unable to undertake assessment of performance. \n\uf0b7", "metadata": {"page": 205, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nThe Mission did not prepare and submit annual monitoring plans to \nMoFPED and NPA and also did not prepare and submit quarterly \nmonitoring reports to the Office of the Prime Minister and MoFPED \ncontrary to Paragraph 58 of the Budget Execution Circular for 2019/20. \n\uf0b7 \nPerformance reports for Q1, Q2 and Q3 were submitted after the \ndeadline given for submission. \n\uf0b7 \nThe Mission paid USD.27,500 (equivalent to UGX.103,134,075) in respect \nof education allowances direct to its officials instead of their respective \neducational institutions or schools contrary to Section (E - e) Paragraphs \n19 and 20 of the Public Service Standing Orders 2010. \n\uf0b7 \nThe Embassy spent USD.21,764.99 (equivalent to UGX.81,625,894.95) \non refunds for medical expenses to its officers contrary to the \nrequirements of Section M (m-a) (14) of the Public Service Standing", "metadata": {"page": 205, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Orders, 2010. \n\uf0b7 \nUSD.18,000 (equivalent to UGX.69,552,175) was paid to Embassy staff as \nCovid relief allowance during the financial year 2019/2020 in the last \nmonth of the financial year. This allowance is not provided for in the \nPublic Service Standing Orders and neither was it budgeted for during the \nyear. \n\uf0b7 \nJPY.2,591,132 (equivalent to UGX.89,938,192) out of which 2/3 of the \namount should have been recovered from the respective staff was \nincurred on the payments for telephone bills during the period. The \nrecovery was not effected. \n\uf0b7 \nThe fixed assets register maintained by the entity was not in the format \nprescribed in the Treasury Instructions and lacked details of: cost of \nsome items, maintenance cost, estimated useful life, among others and \nassets which had already been disposed were still in the assets register. \n34.", "metadata": {"page": 205, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "34. \nUganda \nEmbassy \nin \nTeheranc. \n2019/2020 \n\uf0b7 \nOut of the planned 11 (eleven) strategic targets/goals in the Mission \ncharter, one (1) were fully achieved while 10 (ten) were partially", "metadata": {"page": 205, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "195 \n \n \nOpinion \nUnqualified \nachieved. \n\uf0b7 \nThere was a shortfall in NTR collections amounting to UGX.1.57Bn \nrepresenting 0.1% performance. \n\uf0b7 \nI sampled 7 outputs with a total of 12 activities and actual expenditure of \nUGX.3.66Bn and observed that 4 outputs with a total of 6 activities and \nexpenditure worth UGX.2.69Bn were fully quantified, 2 outputs with a \ntotal of 5 activities and expenditure worth UGX.1.73Bn were partially \nquantified while 1 output with 1 activity and expenditure worth \nUGX.0.04Bn was not quantified at all. Of the quantified outputs, 3 \noutputs with 3)activities worth UGX.0.38Bn were fully implemented while \n1 output with 3 activities worth UGX.1.95Bn was partially implemented. \n\uf0b7", "metadata": {"page": 206, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nThe Mission had total collections including balance brought forward from \nprevious year of UGX.406,961,421 out of which UGX.126,522,621 had \nbeen transferred to the Treasury for onward transfer to the Consolidated \nFund leaving a balance UGX.280,522,621 not remitted. \n\uf0b7 \nThe Mission paid USD.14,000 (UGX.51,800,000) in respect of education \nallowances direct to its officials instead of their respective educational \ninstitutions or schools contrary to Section (E - e) Paragraphs 19 and 20 of \nthe Public Service Standing Orders 2010. \n\uf0b7 \nRIALS.746,627,400 (equivalent to UGX.65,703,211) was paid to Embassy \nstaff as contingency allowance which is not provided for in the Public \nService Standing Orders, 2010 and neither was it budgeted for during the \nyear. \n\uf0b7", "metadata": {"page": 206, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "year. \n\uf0b7 \nRIALS.146,565,232,896 (equivalent to UGX.12,897,740,495) was paid \nfrom the Mission\u2019s imprest account to cater for official activities but was \nnot adequately accounted for. \n35. \nUganda Embassy in \nAddis Ababa. \n2019/2020 \n \nOpinion \nUnqualified \n\uf0b7 \nOut of the planned 7 strategic targets/goals, no target was fully achieved, \n5 targets were fully achieved and 2 targets were partially achieved. \n\uf0b7 \nThere was a shortfall in NTR collections amounting to UGX.1.85Bn \nrepresenting 11% performance. \n\uf0b7 \nOut of the total receipts for the financial year of UGX.4.16Bn, UGX.3.81Bn \nwas spent by the entity resulting in an unspent balance of UGX.0.35Bn", "metadata": {"page": 206, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "representing an absorption level of 91.5%. \n\uf0b7 \nI sampled 5 outputs with a total of 9 activities and actual expenditure of \nUGX.3.76Bn and observed that 3 outputs with a total of 7 activities and \nexpenditure worth UGX.3.76Bn were fully quantified while 2 outputs with \na total of 2 activities were not quantified. I further observed that 2 \noutputs with 5 activities worth UGX.3.22Bn were fully implemented while \n1 output with 2 activities worth UGX.0.674Bn was partially implemented. \n\uf0b7 \nFunds to the tune of Birr.304,045.69 (equivalent to UGX.23,958,820) \nwere irregularly diverted from the activities on which they were budgeted \nand spent on other activities without seeking and obtaining the necessary \napprovals. \n\uf0b7 \nA review of the 4 quarterly performance reports revealed that the", "metadata": {"page": 206, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "supplementary release of UGX.0.653Bn was not captured at all making \nthe reports inaccurate. \n\uf0b7 \nThe Mission had total collections including balance brought forward from \nprevious year of UGX.707,901,392 out of which UGX.236,256,209 had \nbeen transferred to the Treasury for onward transfer to the Consolidated \nFund leaving a balance UGX.471,645,183 not remitted. \n\uf0b7 \nUSD.48,129.83 and BIRR.94,144.96 (equivalent to UGX.183,940,336)", "metadata": {"page": 206, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "196 \n \nwas withdrawn from the Mission\u2019s local expenditure account as cash \nimprest but was not adequately accounted for. \n\uf0b7 \nThe Mission paid USD.44,000.00 (equivalent to UGX.165,000,000) in \nrespect of education allowances direct to its officials instead of their \nrespective educational institutions or schools contrary to Section (E - e) \nParagraphs 19 and 20 of the Public Service Standing Orders 2010. \n\uf0b7 \nThe Mission paid medical refunds to its staff amounting to \nBirr.298,287.38 (equivalent to UGX.582,793,607) contrary to Section M \n(m-a) (14) of the Public Service Standing Orders, 2010. \n\uf0b7 \nThe Mission maintains an assets register that is not in the format \nprescribed by the Treasury Instructions. \n36. \nUganda \nEmbassy \nin \nCopenhagen.", "metadata": {"page": 207, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "in \nCopenhagen. \n2019/2020 \n \nOpinion \nQualified \n\uf0b7 \nA \nsum \nof \nUGX.300,000,000 \nwas \napproved \nby \nParliament \nas \nsupplementary budget for the Embassy for the financial year 2019/2020 \nout of which UGX.270,000,000 was subsequently released during the \nyear. This amount was not accurately disclosed in the \u201cCommentary on \nthe Financial Statements by the Head of Accounts\u201d. \n\uf0b7 \nReceivables from security deposits reduced by UGX.53,375,046 from \nUGX.313,145,225 in the previous year to UGX.259,770,179 as at the end \nof the year 2019/2020. I was not availed with supporting records to \nconfirm the movement. \n\uf0b7", "metadata": {"page": 207, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "confirm the movement. \n\uf0b7 \nVAT claims increased from UGX.45,636,374 in the previous year to \nUGX.70,11,405 in the current year. I was not provided with a ledger \nshowing the specific VAT claims, the VAT supplier numbers, and \ndocuments to support the claims for refunds from the tax authority \namong others. \n\uf0b7 \nMonthly and end-of-year bank reconciliations were not carried out. In \naddition, a list of bank accounts operated by the Embassy during the year \nwas not disclosed by the Head of Accounts in his commentary on the \nFinancial Statements. \n\uf0b7 \nThe \nEmbassy\u2019s \napproved \nbudget \nfor \nNon-Tax \nRevenue \nwas \nUGX.1,570,000,000. I observed that the Non-Tax Revenue budget was \nnot reflected in the Statements of Appropriation.", "metadata": {"page": 207, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nThe Mission paid advances to various suppliers amounting to \nDKK.861,578.82 (equivalent to UGX.479,037,824). Whereas the Financial \nReporting Guide, 2018 requires that prepayments are reported separately \nin the Statement of Cash Flows \u2013 as net advances paid and in the \nStatement of Financial Position as receivables, I noted that these \nprepayments were missing in both statements. \n\uf0b7 \nThe Embassy lost a court case and subsequently a sum of \nUGX.27,965,384 (DKK.49,878.51) was awarded and paid in the year \n2019/2020. I noted that the Memorandum Statement of Outstanding \nCommitments did not disclose the details regarding this case and there \nwas no evidence that the funds for settlement of this court case had been \nbudgeted for during the year. \n\uf0b7", "metadata": {"page": 207, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nFunds amounting to DKK.399,793.77 (equivalent to UGX.225,083,893) \nwere irregularly diverted from the activities on which they were budgeted \nand spent on other activities for which money had not been appropriated \nwithout seeking and obtaining the necessary approval. \n\uf0b7 \nPayments made to the tune of DKK.109,193.75 (equivalent to \nUGX.61,221,660) lacked adequate supporting documents. Consequently, \nI could not confirm that the amounts paid were commensurate to the", "metadata": {"page": 207, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "197 \n \nworks or supplies made by the different payees. \n\uf0b7 \nThe Embassy had planned to refurbish the official residence and \nUGX.300,000,000 was released by the Ministry of Finance Planning and \nEconomic Development (MoFPED) through a supplementary budget for \nthe purpose. However, the refurbishment did not take place and \nUGX.190,000,000 was returned to the consolidated fund as required by \nSection 17(2) of the PFMA 2015 while UGX.110,000,000 was diverted. \n\uf0b7 \nPayments to the tune of DKK.171,063.61 (equivalent to UGX.95,910,234) \nhad contradicting supporting documentation attached, payments were \nunbudgeted for or were incurred for activities which are not the \nresponsibility of the Embassy. \n\uf0b7 \nSalary payments to locally recruited staff at the Mission to the tune of", "metadata": {"page": 208, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "DKK.141,940.00 (equivalent to UGX.79,581,500) were made to two staff \nbut no contract appointment letters were availed to justify them. \n\uf0b7 \nOut of the budgeted NTR of UGX.1,570,000,000 for the financial year \n2019/2020 only UGX.33,780,671 was collected representing performance \nof 2.15% of the target. The entity did not remit the collected amounts to \nthe consolidated fund by the 31st July following the closure of the \nfinancial year contrary to the requirements of the PFMA. \n\uf0b7 \nOut of the total receipts for the financial year of UGX.5.642Bn, \nUGX.5.152Bn was spent by the Mission resulting in an unspent balance of \nUGX.0.490Bn representing an absorption level of 91.3%. The unspent \nbalance at the end of the financial year was not returned to the", "metadata": {"page": 208, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "consolidated fund account by the 31st July 2020 contrary to the law. \n\uf0b7 \nOut of the 5 outputs with a total of 9 activities and expenditure of \nUGX.5.152Bn, 2 outputs with a total of 2 activities and expenditure worth \nUGX.0.467bn were fully quantified, 2 outputs with a total of 5 activities \nand expenditure worth UGX.4.828Bn were insufficiently quantified while 1 \noutput with a total of 2 activities and expenditure worth UGX.0.372Bn \nwas not quantified at all. Of the quantified outputs, 1 output with 1 \nactivity worth UGX.0.167bn was fully implemented while 1 output with 1 \nactivity worth UGX.0.300bn was partially implemented. \n\uf0b7 \nThe Mission did not prepare and submit annual monitoring plans to \nMoFPED and NPA and also did not prepare and submit quarterly \nmonitoring reports to the Office of the Prime Minister and MoFPED", "metadata": {"page": 208, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "contrary to Paragraph 58 of the Budget Execution Circular for 2019/20. In \naddition, performance reports for Q1, Q2, Q3 and Q4 were submitted \nafter the deadline for submission. \n\uf0b7 \nI observed that the Head of Mission and the Accounting Officer were \nabsent from the station from March 2020 to June 2020, a period that is \ncritical for preparation and finalisation of the Embassy financial \nstatements. The two officers were under lock-down restrictions in Uganda \ndue to onset of the Covid-19 pandemic. In addition the Finance Attach\u00e9 \nwas not in office for most of the financial year. This negatively impacted \non the operations of the Mission during that period. \n\uf0b7 \nDuring the month of June 2020, a sum of DKK.152,700 (equivalent to \nUGX.85,970,100) was paid to Embassy staff for claims for trips that had \nbeen undertaken in January and February 2020. I observed that the", "metadata": {"page": 208, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "payments were not adequately supported to justify that the trips were \nundertaken. \n\uf0b7 \nAn officer of the Embassy was paid Foreign Service Allowance for the \nmonths of November and December amounting to DKK.23,375.85 \n(equivalent to UGX.13,160,604) and education allowance amounting to", "metadata": {"page": 208, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "198 \n \nDKK.37,500 (equivalent to UGX.21,112,500) while on interdiction. \nPayment of employment benefits to staff on interdiction may be unlawful. \n\uf0b7 \nThe Embassy continued to pay rent for the Finance Attach\u00e9\u2019s residence \nfrom April 2020 to September 2020 amounting to DKK.133,800.00 \n(equivalent to UGX.75,329,400), a period during which the residence was \nnot occupied. \n\uf0b7 \nThe Embassy procured 64 items for use at the Chancery and Embassy \nstaff residences involving a sum of DKK.433,707.00 (equivalent to \nUGX.244,177,283). \nThe \nprocurements \nwere \nundertaken \nwithout \nadherence to the procurement procedures and were not adequately \naccounted for. \n\uf0b7", "metadata": {"page": 209, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "accounted for. \n\uf0b7 \nContrary to the provisions in the law, expenditure amounting to \nDKK.1,181,215.74 (equivalent to UGX.665,024,462) was irregularly \nincurred by the Embassy during the month of July out of the expired \nappropriation and before the first quarter release for the financial year \n2020/2021 was received. \n\uf0b7 \nPrepayments \namounting \nto \nDKK.566,960.83 \n(equivalent \nto \nUGX.319,198,947) were made to nine (9) suppliers for services including \nfuel, insurance, water, electricity and heating. The funds were paid \nbefore the services were received by the Embassy. \n\uf0b7 \nCash amounting to DKK.37,000 (equivalent to UGX.20,831,000) was \nirregularly withdrawn from the Mission\u2019s corporate bank account by Amb.", "metadata": {"page": 209, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Elly Kamahungye Kafeero to pay for accounting work done by a non-\nmember of staff living outside Copenhagen. The funds were re-deposited \non the Embassy account on 12th June 2020 by Amb. Elly Kamahungye \nKafeero after three months because the reasons for which the funds were \nwithdrawn had been suspended. I found it unusual for an amount of \nmoney to be set aside for an activity without confirming the total cost of \nthe activity or following procurement procedures to identify a supplier. \n\uf0b7 \nDuring the year 2019/2020, the Finance Committee was comprised of the \nHead of Mission (chairperson), Deputy Head of Mission, Accounting \nOfficer, Finance Attach\u00e9, Head of Chancery (Third Secretary) and the \nAdministrative Attach\u00e9. I observed that the Committee did not perform its \nroles of reviewing and approving the budgets and work-plans, monitoring \nimplementation of the annual work-plans and procurement plans, \nmonitoring \nimplementation \nof \ninternal", "metadata": {"page": 209, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "of \ninternal \ncontrols \nover \nfinancial \nmanagement and ensuring that there is compliance with applicable laws \nand regulations. \n37. \nMinistry of Foreign Affairs \n(MOFA). \n2020/21 \n \nOpinion \nUnqualified \n\uf0b7 \nThe Ministry has an approved strategic plan for FY 2020/21- 2024/25. \nNPA had issued a Certificate of Compliance (CoC) to the Ministry, and \nMinistry Top Management had approved the plan. It is now aligned to the \nNDPIII. \n\uf0b7 \nThe Ministry collected only 5.7% of its NTR target for the year and had a \nshortfall in government funding of UGX.19.886Bn which is 30.9% of the \nbudget. The Ministry absorbed 92.3% of the funds that were released. \n\uf0b7", "metadata": {"page": 209, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nOut of the thirty-two (32) outputs sampled, ten (10) were fully quantified, \nseventeen (17) were insufficiently quantified and five (5) were not \nquantified. \n\uf0b7 \nOut of the ten (10) outputs assessed, seven (7) were fully implemented \nwhile three (3) were partially implemented. \n\uf0b7 \nThe Ministry prepared and submitted the annual budget implementation \nplans and reports as required but failed to accurately report and submit", "metadata": {"page": 209, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "199 \n \nits quarterly budget performance reports in time. \n\uf0b7 \nAnalysis of the Ministry\u2019s domestic arrears over the past four years \nshowed an increase by 34.2% from 2016/17 to 2020/21. \n\uf0b7 \nThe Ministry had domestic arrears worth UGX.37,436,592,723 from the \nprior financial year but only budgeted for UGX.6,356,885,823 (17%) in \nthe financial year under review, thus under budgeting. \n\uf0b7 \nThe approved staff establishment of Ministry of Foreign Affairs revealed \nthat out of the approved 362 staff positions, 344 positions representing \n95% were filled while 18 positions representing 5% were vacant. \n38 \nMinistry of East African \nCommunity Affairs \n2020/21 \n \nOpinion \nUnqualified \n\uf0b7", "metadata": {"page": 210, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Unqualified \n\uf0b7 \nI noted that the Ministry only had a draft strategic plan. NPA had not \nissued a Certificate of Compliance (CoC) to prompt to management of the \nMinistry approve the strategic plan. \n\uf0b7 \nThe Ministry budgeted for NTR of UGX.699,000,000 for the financial year \n2020/21, however only UGX.12,100,000 was collected representing \nperformance of 1.731% of the target. The ministry absorbed 85.1% of \nthe funds that were released. \n\uf0b7 \nOut of the fourteen (14) outputs sampled, twelve (12) were fully \nquantified, while two (2) were insufficiently quantified. \n\uf0b7 \nOut of the twelve (12) outputs assessed, eight (8) were fully \nimplemented while four (4) were partially implemented. \n\uf0b7 \nThe Ministry neither prepared annual budget monitoring plans nor", "metadata": {"page": 210, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "submitted quarterly budget monitoring reports. The Ministry also failed to \nsubmit all its quarterly budget performance reports in time. \n\uf0b7 \nAnalysis of the Ministry\u2019s domestic arrears over the past four years \nshowed a downward trend from 2017 to 2021. As at the close of the \nfinancial year a sum of UGX.13,002,369,510 was outstanding. \n\uf0b7 \nOut of the approved one hundred three (103) staff positions, seventy two \n(72) positions representing 70% were filled while thirty one (31) positions \nrepresenting 30% were vacant. \n \n39 \nThe Independent Electoral \nCommission. \n2020/21 \n \nOpinion \nUnqualified \n\uf0b7 \nThe Commission had not finalised the preparation of the strategic plan for \nthe period 2021-2025. \n\uf0b7 \nThe entity budgeted to collect NTR of UGX.4.483Bn during the year under", "metadata": {"page": 210, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "review. Out of this, UGX.31.1Bn was collected, representing a \nperformance of 694% of the target. \n\uf0b7 \n Out of the total warrants of UGX.671.61Bn received during the financial \nyear, UGX.649.15Bn was spent by the entity resulting in an unspent \nbalance of UGX.21.906Bn representing absorption level of 96.1%. \n\uf0b7 \nOut of the 9 outputs with a total of 40 activities and expenditure of \nUGX.671.61Bn assessed, 4 outputs with a total of 10 activities and \nexpenditure worth UGX.51.838Bn was fully quantified, 3 outputs with a \ntotal of 16 activities and expenditure worth UGX.499.639Bn were \ninsufficiently quantified while 2 outputs with a total of 14 activities and \nexpenditure worth UGX.97.675Bn were not quantified at all. \n\uf0b7", "metadata": {"page": 210, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nOf the 4 out puts that were fully quantified with a total of ten (10) \nactivities worth UGX.51.8Bn, 3 outputs with a total of 9 activities worth \nUGX.50.9Bn were fully implemented, while 1 output with 1 activity worth \nUGX.0.846Bn was partially implemented.", "metadata": {"page": 210, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "200 \n \n\uf0b7 \nAn assessment to establish if there has been service delivery from a \nsample of outputs that were implemented revealed that purchase of \nmotor vehicles and other transport equipment was undertaken but not \nfully used for the purpose while the Commission continues to pay rent \nafter fully acquiring warehousing space. \n\uf0b7 \nI noted inconsistencies in the reported performance where all vehicles \nwere reported as received which was not true while reported balances in \nthe financial statements were inconsistent with those reported in the \nperformance reports. \n\uf0b7 \nI noted that funds to the tune of UGX.4,023,217,397 were irregularly \ndiverted from the activities on which they were budgeted and spent on \nother activities without seeking and obtaining the necessary approvals. \n\uf0b7 \nI noted that the Commission has been accumulating arrears in past three", "metadata": {"page": 211, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "years and during the year 2020/2021, UGX.6.959Bn in arrears remained \noutstanding. \n\uf0b7 \nThe Commission has in the past won cases and was awarded costs to the \ntune of UGX.336,880,920 but management has not collected these \nreceivables. \n\uf0b7 \nThe Commission procured Biometric Voter Verification Kit and services for \nthe 2021 general election at a cost of UGX.82,894,881,252 and I \nobserved that available kits were not considered while the services were \nnot fully delivered. \n\uf0b7 \nThe Commission entered into two contract agreements with a company \nto \nsupply \n10 \ndouble \ncabin \npick-up \nvehicles \nat \na \ncost \nof \nUGX.1,564,563,350 \nand \n40", "metadata": {"page": 211, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "and \n40 \ndouble \ncabin \npick-up \nvehicles \nat \nUGX.7,013,387,920 for nomination of the Presidential candidates but by \nthe time of audit, whereas the Commission had paid the full amount, only \n32 double cabin vehicles out of the total 50 vehicles procured had been \ndelivered leaving a balance of 18 vehicles. \n\uf0b7 \nThe Commission procured for printing of ballot papers for 2021 general \nelections at a total cost of UGX.83.855Bn. 248 out of expected 448 pallets \nwere delivered but the Commission had assembled vehicles to carry the \nentire load which rendered the vehicles redundant and this caused a loss \nto the Commission in form of hire fees, fuel and allowances. \n\uf0b7 \nThe Commission was required to vacate their current premises by 30th \nJune, 2021 and was subsequently compensated with UGX.22.14Bn by the", "metadata": {"page": 211, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Uganda National Roads Authority which was transferred to the \nconsolidated fund as non-tax revenue. As a result of the continued delay \nto implement this critical activity of finding a new home, the Commission \nis already incurring losses on property acquired and is also likely to cause \ngovernment to incur litigation costs through UNRA\u2019s failure to completely \nhand over the construction sites for roads to the contractor. \n\uf0b7 \nThe Commission contracted two law firms for provision of legal services \nfor Presidential petition at a cost of UGX.3,748,550,000 which had been \nbudgeted at UGX.800Million resulting into payment of UGX.2,948,550,000 \nover and above the budget. Even though the planning for the elections \nstarted 3 years back, the procurement was treated as an emergency and \nthere was no basis for the fees charged or detail of how the Commission \ncame up with the market price for the service. \n \n \nWORKS \nWORKS \nAND \nTRANSPORT \nSECTOR", "metadata": {"page": 211, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "201 \n \n1 \nMinistry of Works and \nTransport (MoWT) \n \nOpinion \nUnqualified \n\uf0b7 \nI noted that the entity had prepared a strategic plan. However, this had \nnot been approved by NPA at the end of the year under review. \n\uf0b7 \nThe Ministry did not forecast the NTR to be collected during the year. \nHowever, a total of UGX6,995,230,920 was collected during the year. \n\uf0b7 \nOut of the total warrants of UGX. 1,280.322Bn received during the \nfinancial year, UGX. 1,067.967Bn was spent by the entity resulting in an \nunspent balance of UGX. 212.355Bn representing absorption level of \n83.4% \n\uf0b7 \nThe Ministry did not implement some of its planned activities during the", "metadata": {"page": 212, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "year. Examples include: bridge inventory Data for BMS not collected; \nbridge management System (BMS) Software not procured, and; \nupgrading to Bitumen Standard Sebbowa road. \n\uf0b7 \nThe Ministry had receivables worth UGX.1,570,776,843 out of which \nthose worth UGX.623,855,947 were outstanding at the end of the \nprevious year. There is likelihood of failure to recover the receivables that \nhave been outstanding for over a year \n\uf0b7 \nTwenty-one (21) units of district road equipment had been lying in the \nworkshops\u2019 yards for more than a year without repair. The equipment \nincluded: thirteen (13) motor graders of different models; four (4) \nbulldozers; One (1) pickup; two (2) dump trucks, and one (1) wheel \nloader. \n\uf0b7", "metadata": {"page": 212, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "loader. \n\uf0b7 \nThree (3) out of the nine (9) training aircrafts of the East African Civil \nAviation Academy in Soroti were grounded due to non-repair and \nmaintenance. The aircrafts were (registration numbers): 5X-RWE \ngrounded due to a defective fuel injector pump; 5X-UAN grounded for \nmandatory structural modification and 5X -YKM grounded for a propeller \noverhaul. \n\uf0b7 \nI observed delayed compensation of PAPs for the development of the \nNew Kampala Port in Bukasa. The valuation report for 2,378 PAPs with a \ntotal compensation sum of UGX 29.2 billion was approved by the Chief \nGovernment Valuer in October 2018. A total of 1,253 PAPs with a total \ncompensation value of UGX.19.5 billion had been paid by 30th June 2021. \nAs a result a total of 1,125 PAPs with a total compensation value of", "metadata": {"page": 212, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "UGX.9.7 billion have remained unpaid for about three years. \n\uf0b7 \nProcurements worth UGX 1,772,908,757 which were not planned were \nimplemented \nby \nthe \nMinistry, \nwhile \nprocurements \nworth \nUGX.7,465,000,000 which were planned were not implemented. \n\uf0b7 \nI observed delayed completion of Kayunga - Nabuganyi and Nansana \u2013 \nKireka \n- \nBbira \nroads \nconstruction \nproject \ncontracted \nat \nUGX \n45,349,361,632. The contract provided that the works were to be \ncompleted by 01/07/2020. However, by the time of the audit in October \n2021, one year and four months after planned completion date, the", "metadata": {"page": 212, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "project works were not yet completed. \n\uf0b7 \nThe acquisition of land for the Right of Way (RoW) for the SGR project \nhas been delayed. The project plan was to acquire 5200 acres of land \nfree of encumbrances at an estimated cost of UGX 534,600,000,000 for \nthe construction of Kampala \u2013 Malaba SGR route by October 2016. \nHowever, only 1,295.98 (24.9%) acres of land had been acquired at a \ncost of UGX.95,361,767,388 (18%) as of September 2021. \n2 \nReport on Verification SGS \nAutomotive Uganda Limited \nFor \n\uf0b7 \nI was unable to obtain all documents relating to the procurement for my \nreview. From the available records however, it was noted that there were \nsignificant delays in the procurement process arising from administrative", "metadata": {"page": 212, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "202 \n \nSetting Up of Vehicle \nInspection Facilities \nUnder the Contract for \nProvision of Mandatory \nMotor Vehicle Inspection \nServices (MVIS). \nDec 2021 \n \n \nreviews and court processes. It is also important to note that the High \nCourt had made a ruling in favour of award of the contract to SGS. \n\uf0b7 \nThere were delays in formulation of the statutory instrument covering \nrevision of chargeable rates, negatively impacting on compliance by the \nvehicle owning public. \n\uf0b7 \nThe responsible Government authorities did not make adequate efforts to \nenforce public compliance to the mandatory motor vehicle inspection. \n\uf0b7 \nDuring the first phase of the contract implementation, the Ministry \ndelayed to formulate a comprehensive public sensitization strategy to \ncreate awareness about the mandatory motor vehicle inspection. \n\uf0b7 \nThe stakeholder information sharing system that was required under the", "metadata": {"page": 213, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "contract had not been set up by the time of halting of operations by \nParliament and as such key stakeholders have not had the opportunity to \naccess requisite information. \n\uf0b7 \nThe upgrading of the upcountry stations of Mbarara, Mbale and Gulu had \nnot yet commenced. \n\uf0b7 \nSGS Automotive Uganda had invested a total of UGX.109,856,594,590 in \nthe activities relating to the contract for mandatory vehicle inspection \nbetween the SGS and Government of Uganda. \n3 \nUganda Road Fund. \n \n \nOpinion \nUnqualified \n\uf0b7 \nI noted that the entity had prepared a strategic plan. However, this had \nnot been approved by NPA at the end of the year under review. \n\uf0b7 \nURF did not forecast the NTR to be collected during the year. However,", "metadata": {"page": 213, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "the Fund collected a total of UGX7,078,800 during the year. \n\uf0b7 \nOut of the total warrants of UGX. 506.507bn received during the financial \nyear, UGX. 506.296 Bn was spent by the entity resulting in an unspent \nbalance of UGX. 0.211Bn representing an absorption level of 99.96%. \nThe unspent funds were swept back to the consolidated fund as required \nby the PFMA \n\uf0b7 \nThe Authority did not implement some of its planned activities during the \nyear. Examples include: Production of quarterly reports on the status and \nfunctionality of District Road Committees; Recruitment and substantive \nappointment of staff and; Review and calibration of the funds allocation \nformula. \n\uf0b7 \nThe Fund did not collect the funds provided for under section 21 of the \nURF Act 2008 which mandates the Fund on recommendation by the URF", "metadata": {"page": 213, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Board to charge road user charges which include fuel levies, international \ntransit fees from vehicles entering the country, road license fees, axle \nload fees, and bridge and road toll fees. \n\uf0b7 \nI noted that the fund allocation formula was last reviewed by the \nSecretariat in 2019. In addition, during the year, the formula was not \nreviewed to provide for current situations such as budget cuts and Covid-\n19 pandemic effects which led to disproportionate transfers to designated \nagencies. \n\uf0b7 \nProcurements worth UGX 642,234,236 had delays ranging between 1 and \n93 working days. For example; the contract for provision of Motor Vehicle \nmaintenance services under framework contract was delayed by 93 days \nand the contract for supply, delivery and installation of I-pads for URF \nBoard members was delayed by 15 days. \n\uf0b7 \nThere were inadequate monitoring Designated Agencies. Out of the 203 \ndesignated agencies supposed to be monitored, only twenty-seven (27) \nAgencies representing 13.3% of the total designated agencies and sub", "metadata": {"page": 213, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "203 \n \nagencies were monitored during the year. \n\uf0b7 \nWhereas URF had central stores under the charge and control of the \nAdministrative Officer, the entity did not have a proper stores \nmanagement system that is recommended in the Treasury Instructions. \n4 \nUganda National Roads \nAuthority. \n2020/21 \n \nOpinion \nQualified \n\uf0b7 \nA total of UGX 124,367,095,163 representing 21.58% of the spent funds \nfor the sampled planned outputs was diverted from the budgeted projects \nto other projects contrary to the above provision. There was no evidence \nthat the reallocations/diversions of such magnitude were authorized \neither by Parliament or the relevant funders. \n\uf0b7 \nThe Authority over-budgeted funds for salaries. The over budgeted funds \nwere diverted from the salary provisions to capital development activities.", "metadata": {"page": 214, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "The diversion of funds led to a misreporting in the financial statements of \nUGX 4,689,704,394. \n\uf0b7 \nI noted that the UNRA did not have an approved five year vote strategic \nplan by NPA to facilitate operationalization of the NDP III infrastructure \nsector priorities during the first year of NDP implementation. \n\uf0b7 \nUNRA did not forecast the NTR to be collected during the year. In \naddition, there was no documented revenue collection plan detailing how \nmuch to be collected and revenue sources. However, UNRA collected a \ntotal of UGX3,894,306,295 during the year. I also noted that MoFPED set \na target of UGX10.76bn to be collected in NTR by UNRA during the year \nunder review; there was no reconciliation between the Ministry of \nFinance, Planning and Economic and Uganda National Roads Authority on \nthe planned revenue to be collected. \n\uf0b7", "metadata": {"page": 214, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nThe UNRA budgeted to receive UGX. 3,918.151 bn out of which UGX. \n3,787.289 bn was availed, resulting in a shortfall of UGX 130.863 bn, \nwhich is 3.34% of the budget. \n\uf0b7 \nI noted that UNRA did not have unit cost estimates at activity level to \nprovide a link between inputs, processes, outputs and intermediate \noutcomes realized during the year. \n\uf0b7 \nThe Authority failed to implement several planned activities during the \nyear. Examples include: construction of 10 km - equivalents along \npackage 6 (Karugutu - Ntoroko and Kabwoya - Buhuka); construction of \n10 km - equivalents along Rwenkunye- Apac- Lira-Acholibur road; civil \nworks for the construction of UNRA offices; works for construction of \nKamdini Weigh station, and; construction of Wanseko Ferry landing site. \n\uf0b7", "metadata": {"page": 214, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nContrary to the Land Acquisition Act CAP 226, I noted that for the Hoima-\nButiaba-Wanseko Road Project, UNRA did not submit a request to the \nMinistry of Lands to declare the land identified for the road project as \nland of interest. \n\uf0b7 \nI observed delays in payments for Project Affected Persons on two roads \naudited. Out of the sampled 221 PAPs for Hoima-Wanseko, 136 PAPs with \nproperties worth UGX 6.2 billion were paid after the specified six-month \nperiod. For KJE project, out of 234 PAPs sampled, 229 PAPs with \nproperties worth UGX 70.2 billion were paid after the specified six-month \nperiod. \n\uf0b7 \nAccording to the Kampala-Jinja Expressway Resettlement Action Plan \nImplementation Progress report of May 2020 \u2013 August 2021, a total of \n219 PAPs required physical resettlement. It was noted by the time of the", "metadata": {"page": 214, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "audit that 13 resettlement sites had been identified and these were being \nassessed for suitability. However, although the process of engaging a \nprovider to support UNRA in developing housing options and building the", "metadata": {"page": 214, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "204 \n \nagreed resettlement houses was initially scheduled to be completed by \nDecember 2020, no contractor had been procured for this purpose by the \ntime of the audit in September 2021, implying a delay of over 9 months. \n\uf0b7 \nSignificant delays in subdivision, demarcation and transfer of titles for \nfully acquired plots were observed on the Kampala-Jinja Expressway and \nHoima-Wanseko Road projects. \n\uf0b7 \nThe Authority had an outstanding balance of UGX 215,059,225,419 in \nterms of payables at the year end. This figure increased by UGX \n73,885,957,262 (52.3%) from the previous year\u2019s amount of UGX \n141,173,268,157. It was observed that the bulk of this amount is \ncomprised of unpaid certificates to contractors which yield interest due to \ndelayed payments. \n\uf0b7", "metadata": {"page": 215, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "delayed payments. \n\uf0b7 \nAuthority made payments amounting to UGX 17,078,565,465 as a result \nof penalties for the court cases and interest on delayed payments of \nadvances and IPCs invoices from various projects. This is a loss to \nGovernment. \n\uf0b7 \nThe value of the Authority\u2019s infrastructure assets at the end of the \nfinancial year was disclosed as UGX10,417,198,881,566. However, \ncontrary to the policy requirement to revalue the assets every three \nyears, I was not availed with any valuation report for the infrastructure \nassets to confirm that the assets had ever been valued. \n\uf0b7 \n35 road projects with a total contract value of USD.398,427,063.99 and \nUGX. 149,739,813,845 that were to be completed during the year were \nstill on \u2013 going by the close of the year. \n\uf0b7", "metadata": {"page": 215, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nThree civil cases with claims totaling to UGX6.991bn were brought \nagainst UNRA due to its failure to return residue land titles to the \nregistered proprietors. \n5 \nUganda Civil Aviation \nAuthority. \n2020/21 \n \nOpinion \nUnqualified \n\uf0b7 \nI noted that the entity had prepared a strategic plan. However, this had \nnot been approved by NPA at the end of the year under review. \n\uf0b7 \nUCAA budgeted to collect internal revenue of UGX 293bn during the year \nunder review. Out of this, only UGX 114.991bn was collected, \nrepresenting a performance of 39.2% of the target. \n\uf0b7 \nUCAA absorbed all its revenue collected, and accrued expenditure in \nunpaid bills that is. its actual expenditure was more than the revenue. \n\uf0b7 \nThe Authority did not implement some of its planned activities during the", "metadata": {"page": 215, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "year. Examples include: Capital projects for Regional Airports, KOICA \nCounterpart funding, and procurement of a fleet management system, \nupdating the master plan and constructing the ground surface car park. \n\uf0b7 \nThere was an increase in trade and other receivables of UGX. \n12,279,645,000 (equivalent to 25%) from UGX. 48,854,526,000 to \nUGX.61,134,171,000. The delayed collection of the receivables may lead \nto bad debts. \n\uf0b7 \nManagement reported \nan increase in trade \npayables of UGX \n21,763,762,000 (equivalent to 47.9%) from UGX 45,470,736,000 to UGX \n67,234,498,000. \n\uf0b7 \nThe Authority had accumulated receivables of up to UGX 96,569,511,580", "metadata": {"page": 215, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "in the FY 2019/20 due from Government Agencies. In the year under \nreview, there was no follow up of this debt to the Government agencies, \nand no amounts were cleared. \n\uf0b7 \nThe Authority made a loss for the year under review amounting to UGX \n29,321,645,000. Because of the loss, the Authority did not have capacity", "metadata": {"page": 215, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "205 \n \nto cover any potential interest accruing on its long term loans in view of \nits earnings. Along with the lack of potential to cover loan interest, the \nAuthority had a significant long term liabilities portfolio on its balance \nsheet, which majorly comprised of the loan from Exim Bank of China. \n\uf0b7 \nPrime Media\u2019s contract ended with a debt of UGX 1,131,017,128 which \nwas unpaid for the year before the expiry of the contract. \n\uf0b7 \nUCAA has multiple systems operating in different departments which are \ntailored for the operations in the respective departments. A review of \nthese systems revealed that some were not functional, not interfaced \nwith other complementary system(s) and/or some of their modules were \nnot working. Further, the IT Point of Sale System bought for tracking of \nrevenue from concessionaire shops was out of date. \n\uf0b7", "metadata": {"page": 216, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nThe Exim Bank loan terms to UCAA were renegotiated and this was to be \nformalized into an addendum agreement, to ensure that they are \nmanageable. However, the addendum to the contract terms had still not \nbeen made by the time of this audit. \n6 \nUganda National Airlines \nCompany Ltd (UNACL). \n2020/21 \n \nOpinion \nQualified \n\uf0b7 \nUGX 8,716,398,000 was disclosed as the value of the inventories in the \nstatement of financial position. However there was no evidence that \nManagement carried out end of year stock taking to get actual values of \ninventories. In addition, there were no stores ledgers for engineering \nstores, and although the general stores had manual ledgers, the ledgers \nwere not capturing Goods Received Note reference numbers (GRN) \nagainst the receipts in the ledgers as a reference of the goods received.", "metadata": {"page": 216, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nI noted that the entity did not have a strategic / business plan aligned to \nNDPIII. \n\uf0b7 \nUNACL budgeted to collect internal revenue of UGX 304.6bn during the \nyear under review. Out of this, only UGX 48.6bn was collected, \nrepresenting a performance of 16% of the target. \n\uf0b7 \nThe Company did not implement some of its planned activities during the \nyear. Examples include: Procurement of spare parts for the Airbus fleet; \nsupporting 32 pilots for A330-800 neo type training, and; supporting 60 \npilots in simulator training. \n\uf0b7 \nThe company had payables totaling UGX.47,032,043,000. All the \noutstanding invoices were payable to UCAA. Out of the amount, payables \ntotaling UGX 16,065,309,363 had been due for more than 6 months. \n\uf0b7", "metadata": {"page": 216, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nUGX 1,127,484,315 as the value of Property Plant and Equipment In the \nstatement of financial position and the corresponding note (Note 12) as \nat the close of the financial year. However, it was noted that assets were \nnot engraved to give them an identification number for easy of \nidentification. It was also noted that the assets could not be traced in the \nassets\u2019 register due to lack of identification numbers. \n\uf0b7 \nI carried out financial analysis of UNACL financial performance and \nobserved that the Company had made losses for the year 2019/2020 and \n2020/2021 amounting to UGX102.442bn and UGX164.573bn respectively. \nOn review of the operating margin, I observed that the costs before \nconsidering interest and taxes exceeded company revenues for the two \nyears. I also observed that due to the losses incurred, the Company \ngenerated negative return on assets of 12.2% for the year 2019/2020", "metadata": {"page": 216, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "and 13.1% for the year 2020/2021. The Company\u2019s revenue is still far \nbelow its assets. \n\uf0b7 \nUACL implemented twenty-five (25) procurements outside the approved \nprocurement plan for the FY 2020/2021. The procurements were made in", "metadata": {"page": 216, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "206 \n \ndifferent currencies amounting to (for each currency); Euro 1150,854.06, \nKenya Shillings 61,879.2, USD 65,441.36, Tanzania Shillings 7,752,600 \nand UGX 346,738,939. \n\uf0b7 \nA purchase Order was made for the supply of inflight equipment at a \nprice of USD 25,694.46 (VAT Exclusive) without the approval of the \nContracts Committee. \n\uf0b7 \nTwo companies submitted bids for specialized motorized equipment used \nin ground handling of aircraft. The companies failed the preliminary \nstage (compliance), however, the Evaluation Committee did not cancel \nthe evaluation process. The contract manager was not appointed and the \ndelivery was not witnessed. \n\uf0b7 \nUSD 8,620.7 vide payment voucher No PV07/21/072 was paid to DAS Air", "metadata": {"page": 217, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "as rent for the month of April 2021. Further to the above a review of \ninvoices revealed that DAS Air had billed Uganda Airlines a total of USD \n43,103.5 for unpaid ground rent. However, Uganda Airlines had not \nmade any tenancy agreement with the DAS air, and there was no \nhandover report from Uganda Airlines to DAS Air. \n\uf0b7 \nUGX 103,532,800 (USD 28,000) was paid to the supplier vide payment \nvoucher No. PV09/20/025 dated 4/9/2020. The vehicle was purchased \nthrough direct procurement without proper justification. \n\uf0b7 \nUganda National Airlines Limited made a contract agreement with M/s \nNinesun Manufacturing Limited for supply of inflight service equipment \nfor airbus at a contract amount of USD 319,226.86. The items were said \nto have been delivered to DAS Air. I was not provided with evidence that \nthe items were actually delivered, witnessed for quality and quantity and", "metadata": {"page": 217, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "handed over to DAS Air stores. \n\uf0b7 \nUNACL concluded the procurement of a contractor for the provision of an \nEnterprise Resource Planning (ERP) software solution at a contract sum \nof USD 1,066,910 (VAT Exclusive) as well as the provision of an \nintegrated Passenger Service System at a contract sum of USD 1,234,441 \n(VAT Exclusive). The procurements were conducted and finalized without \nseeking the necessary approvals from NITA-U. \n\uf0b7 \nThe company issued a purchase order on 27/01/2021 to M/s Stelia \nAerospace for Supply of critical spare parts for business class seats for \nA330-800 NEO at a price of USD 146,230.72. I was however not provided \nwith the contract for the supply. \n\uf0b7 \nFrom the 20 procurements sampled, I noted that neither was there \nAccounting Officer\u2019s appointments of contract managers nor were there \ncontract management files. The procurements were made in different", "metadata": {"page": 217, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "currencies amounting to (for each currency); Euro 212,050.67, Kenya \nShillings 12,253,905.74, USD 109,803,962.54 and UGX 347,242,879. \n\uf0b7 \nThe Company did not have a Board approved staff structure and \nestablishment to assess staff recruitment needs and staffing status, and \ndid not have approved staff salary grades. This affected proper planning \nand budgeting for staff costs. As a consequence, the Company incurred \nexcess expenditure of UGX 4,919,238,464 (USD 1,333,008) on salaries \nand staff expenses. \n\uf0b7 \nThere has been delayed conclusion of suspension cases. On 21st of April \n2021, some HoDs were suspended for a period of 3 months (effective \n29th April, 2021) to enable the appointed committee to investigate and \nreport on stated allegations. Review of the staff files revealed that there \nwere no committee resolutions on the cases and as a result Management \nextended the suspension on 20th August 2021 for another 3 months.", "metadata": {"page": 217, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "207 \n \nSince the affected staff remained on the same terms of contract, the \nofficers appointed to act in their positions receive extra pay implying \ndouble payment for the same position. As a consequence, the company \nhas lost a total of UGX 2,319,017,267 in a seven months\u2019 period (May to \nNovember 2021). \n7 \nUganda Railways \nCorporation. \n2020/21 \n \nOpinion \nQualified \n\uf0b7 \nThe Corporation had Non-current assets worth UGX.3,525,540,249,000 as \nat 30th June 2021. However, this figure included a total of \nUGX.6,012,000,000 in respect of Kabalega ferry (UGX.5,760,000,000) and \nBarbus ferry (UGX.252,000,000) which sunk under water twenty five", "metadata": {"page": 218, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "years and sixteen years respectively. Since the ferries have been out of \nuse under water for a long time without retrieval and cannot be disposed \nof while under water, it cannot be determined whether they still hold the \nvalue indicated to the Corporation. \n\uf0b7 \nThe \nCorporation \nhad \nGoU \nequipment \nloans \namounting \nto \nUGX.22,067,482,000 at the beginning and end of the year under review. \nOut of this loan amount, loans totalling UGX.16,511,595,000 (other than \nthe Spanish Government loan) were not supported and did not show any \nmovement over the last four (4) years. \n\uf0b7 \nInterest arising from loans that was yet to be cleared by URC amounted \nto UGX.9,511,880,000. However, this balance has been outstanding over", "metadata": {"page": 218, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "several years without any movement. The status quo still remained the \nsame by the close of the year under review. This interest payable was not \nsupported by any original documentation. \n\uf0b7 \nTrade and Other Payables increased from UGX.17,937,602,000 at the \nbeginning of the year to UGX.21,513,931,000 at the close of the year. \nOut of the amount, trade and other payables worth UGX.9,753,781,407 \nlacked supporting documents such as LPOs, contracts, inward invoices, \nclaims and demand notes. \n\uf0b7 \nThe \nCorporation \nhad \nTrade \nand \nOther \nReceivables \nof \nUGX.75,637,890,000 as at 30th June 2021. The figure includes", "metadata": {"page": 218, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "UGX.69,516,000,000 due from Government in respect of the Nsambya \nland. This amount has remained un-paid to URC for too long despite \nGovernment having disposed of the land to the public long ago implying \nthat the Corporation may never be compensated for its land. \n\uf0b7 \nURC budgeted to collect internal revenue of UGX 120.49 during the year \nunder review. Out of this, only UGX 54.6bn was collected, representing a \nperformance of 45.3% of the target. \n\uf0b7 \nThe Corporation did not implement some of its planned activities during \nthe year. Examples include: Sleeper reconditioning; Kampala Station not \nfencing; Tororo Station Roof Repairs and; Rehabilitation of Steel Mill Jinja \nsiding. \n\uf0b7 \nThe Corporation made losses for the past two years; UGX 37,783,152,000", "metadata": {"page": 218, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "(2020/2021) and UGX 66,151,318,000 (2019/2020). The Corporation\u2019s \nlosses and the ratios computed are an indication that Uganda Railways \nCorporation is not performing well in terms of profitability and ability to \nsustain provision of services without further Government intervention for \nfunding and Management strategies to improve revenue generation. \n\uf0b7 \nManagement did not assess impairment of assets despite existence of \nimpairment indicators. For instance, rental properties were being charged \nbelow market value. \n\uf0b7 \nUganda Railways Corporation land worth UGX.91,832,636,500 lacked land \ntitles as evidence of URC\u2019s rights to own and use the property. \nManagement\u2019s efforts to secure the land titles appear remote. Lack of", "metadata": {"page": 218, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "208 \n \nland titles has led to heavy encroachment and grabbing of the \nCorporation\u2019s land. \n\uf0b7 \nURC procured four (4) used locomotives at UGX.41,323,768,935. I \nnoted that the bidder did not comply with some requirements within the \nbid document which were supposed to be the basis of evaluation. Despite \nthe non-compliance at the preliminary stage, the bid was evaluated at the \nTechnical stage without following procurement regulations. \n\uf0b7 \nGovernment signed an agreement with Mango Tree (U) Ltd for the \nrehabilitation and upgrade of the Pamba ferry. However, the vessel was \nstill grounded after a year of signing the agreement. \n\uf0b7 \nAn officer of URC irregularly signed to transfer land measuring 4.452 \nhectares in Lira (under FRV 220 Folio 13). The land was subdivided into", "metadata": {"page": 219, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "plots 41-63, 52-62, 42-50 and the titles were being processed. \n\uf0b7 \nJinja Municipal took part of URC land in Jinja (6.3 acres) and gave it out \nto 58 developers, without consultation with the Corporation. \n8 \nBusega-Mpigi Road Project \n(Uganda National Roads \nAuthority) \n2020 \n \nOpinion \nUnqualified \n\uf0b7 \nI observed slow progress in Construction works and accumulation of loan \ncharges. As of June 30th 2020, the contractor had only achieved physical \nprogress of 0.13% against 12.77% planned cumulative progress. The \ntotal time lapse since commencement of the construction works was 7 \nmonths constituting 24.26% of the total contract duration yet only 0.13% \nconstruction work had been achieved. Slow progress in Construction \nworks has led to continued accumulation of both Commitment and", "metadata": {"page": 219, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Service Charges that amounted to UGX 2,921,803,802 and UGX \n5,802,593,707 respectively as at the reporting date. \n\uf0b7 \nUNRA reallocated GOU counterpart funding to other projects for the year \nended 30th June, 2020. A total of UGX 320,077,550 was reallocated from \nthe project to other projects. The reallocations delay project progress. \n9 \nBusega-Mpigi Road Project \n(Uganda National Roads \nAuthority). \n2021 \n \nOpinion \nUnqualified \n\uf0b7 \nI observed slow progress in Construction works and accumulation of loan \ncharges. As of June 30th 2021, the contractor had only achieved 3.42% \nagainst 29.18% planned cumulative progress. The total time lapse since \ncommencement of the construction works was 19 months constituting", "metadata": {"page": 219, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "64.01% of the total contract duration yet only 3.42% construction work \nhad been achieved. Slow progress in Construction works has led to \ncontinued accumulation of both Commitment and Service Charges that \namounted to UGX 3,224,867,623 and UGX 7,140,345,245 respectively as \nat the reporting date. \n\uf0b7 \nI observed failure to procure Prefabricated Pipe Culvert Units to the \nproject which is delaying project progress. The contractor could not \nprogress through pipe culvert installation due to lack the culverts. \n\uf0b7 \nThere were delays in payments to the contractor that are likely to lead to \ninterest charges. I observed that on 2nd June 2021, the contractor issued \nIPC No. 3 amounting to UGX 8,303,000,336 which was unpaid by 30th \nJune, 2021 and interest on the late payment was due to commence on \n28th July 2021. \n\uf0b7", "metadata": {"page": 219, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "28th July 2021. \n\uf0b7 \nI observed delayed possession of site and land take over by the \ncontractor. By 30th June, 2021, land acquisition was at 54.8% or 14.605 \nkm of the main expressway where access to and possession was granted. \nIt is to be noted that 100% access to and possession should have been \nformally handed over after 18 months (that is; 22nd May 2021) from \ncommencement. \n\uf0b7 \nUNRA reallocated GOU counterpart funding to other projects for the year \nended 30th June, 2020. A total of UGX 1,956,237,995 was reallocated", "metadata": {"page": 219, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "209 \n \nfrom the project to other projects. The reallocations delay project \nprogress. \n10 \nKapchorwa-Suam Road \nProject (Uganda National \nRoads Authority) \n2021 \n \nOpinion \nUnqualified \n\uf0b7 \nI observed delayed access and possession of site by the contractor. The \nlast section of the road (from km 48+000 to km 073+000) was granted \nto the contractor on the 14th of June 2021 which is after 888 days. \nFurther, additional land acquisition is still under progress from Km33+000 \nto Km73+000. Civil works from Km 46 to Km 58 have been put on hold \npending additional land take especially for slope protection. It was also \nnoted that new structures were being erected in the road reserve at \nKm17+692 and KM5+430. \n\uf0b7", "metadata": {"page": 220, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nI observed delays in execution of Project civil works. UNRA engaged M/S \nChina State Construction Engineering Corporation Ltd on the 7th May \n2018 to upgrade Kapchorwa-Suam road for a period of 36 months, with \neffect from 1st October 2018. There was an extension of time of 4.5 \nmonths up to 15th February 2022. Based on the extension of time, the \ntime lapse as at 30th June 2021 was 33 months that is 81.40 %. \nHowever the reported cumulative physical progress for civil works was \n43.14% with no active works from Km 55 to km 73. \n11 \nRoad Sector Support Project \n4 \u2013 Kigumba-Masindi-\nHoima-Kabwoya Road \n(2021) (Uganda National \nRoads Authority). \n2021 \n \nOpinion \nUnqualified \n\uf0b7 \nI observed delayed completion of civil works on Upgrading of Bulima \u2013", "metadata": {"page": 220, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Kabwoya Road (Lot2).The project commencement date was 1st \nDecember 2015, and the initial completion date was after 30 months on \n31st May 2018. Successive revisions of completion dates extended the \nconstruction period by a further 22 months with the last revised \ncompletion date being 27th March 2021. A certificate of substantial \ncompletion was issued in January 2021, and the contractor allowed 12 \nmonths as the Defects Liability Period, expiring on 27th January 2022. \nThe snag list included two main items; the construction of Hoima Town \nRoads and a way bridge. \n\uf0b7 \nI observed delayed completion of civil works on Upgrading of Kigumba \u2013 \nBulima Road (Lot1). The construction period was for 30 months (after \ncommencement in March 2018), elapsing on 31st August 2020. When the \nAudit Team visited the site in September 2021, (42 months after \ncommencement), the attained level of completion was approximately", "metadata": {"page": 220, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "95%. However, the new proposed completion date of 31st August had \npassed and no new completion date had been communicated. \n\uf0b7 \nThere were delays in payment of lot1 supervision fees. By the time of my \naudit, the Lot 1 Supervising Engineer\u2019s unpaid invoices had accumulated \nto Euros 661,605 for the foreign component of the contract and UGX \n1.38bn for the local component. The delays are likely to impact on the \nEngineer\u2019s ability to perform the contractual obligations and in turn \nimpact on the progress of the construction works. \n12 \nAlbertine Regional \nSustainable Development \nProject (ARSDP) (Uganda \nNational Roads Authority). \n2021 \n \nOpinion \nUnqualified \n\uf0b7 \nI observed delayed implementation of civil works (Upgrading of Kyenjojo-\nKabwoya Raod \u2013 100km). The duration of the contract was 36 months", "metadata": {"page": 220, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "(from 5th April 2016 to 4tth April 2019) excluding the Defects Liability \nPeriod. There were two extensions of time; the first one for 818 days i.e \nfrom 4th April 2019 up to 30th June 2021 and the second one for four \nmonths from 1st July 2021 to 31st October 2021. The right of way for the \nlast section, Km 0 to Km 30 was handed over to the contractor on the \n14th September 2018. However, as per the monthly report No. 63 for the \nmonth of June 2021, the progress of works was reported as 94.83% \nagainst planned of 96.27%. In addition to this, the contractor was \nsupposed to substantially complete and hand over 30% of works within \n180 days of the commencement date. However, as at 30th June 2021", "metadata": {"page": 220, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "210 \n \n(1,912 days) no section of the road was handed over and UNRA. \n\uf0b7 \nThere were significant defects on the road works. I observed failure of \nroad shoulders, lined drain and a speed hump at KM88+678. It was also \nobserved that the contractor continued to construct line drains on steep \nslopes without scour checks. \n\uf0b7 \nI also observed poor quality works on some sections of the road \nconstruction. For example: poor visibility on the right-hand side of river \nNguse bridge and also inadequate protection between the end of stone \npitching and the stream at the bridge; noticeable bleeding at Km 52+511, \nfailed line drain at Km71+200 RHS and damaged guard rail at km72+921 \nRHS; maintenance of the completed sections was poor with overgrown \ngrass and silted drainages especially from Km 51 to Km 100, and;", "metadata": {"page": 221, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "pedestrian walkways were not provided for in the design of Kagadi town \nroads which were under construction at time of the audit. \n\uf0b7 \nI noted lack of adherence to the insurance contract. The ICEA Workman\u2019s \nCompensation Policy No 110-A2506044-18 covering the period 18th \nJanuary 2021 to 17th February 2022 indicated that the number of staff \ninsured are 181 only with neither the names nor the number of staff \nunder each category/designation indicated but the monthly progress \nreports, the PAYE and NSSF returns for the period under review indicated \nthat the contractor has over 400 staff. Further, the contract required that \nthe insurances are in the joint names of the parties that is; UNRA and the \ncontractor. However, the UAP Old Mutual contractor\u2019s All Risk Policy No \n0000461578 and the ICEA Motor Commercial Policy No. 080-A2-105193-\n17 indicate that the insured was only the contractor. \n\uf0b7", "metadata": {"page": 221, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nWork Permits for all the foreign consultant\u2019s and contractor\u2019s staff were \nnot provided for review. In the absence of the work permits for the \nforeign staff, the implication is that the expatriate staff are working \nirregularly in Uganda irregularly and this may lead to deportation, which \nwill in turn affect the progress of work. \n13 \nRoad Sector Support Project \n5 (Upgrading of Rukungiri-\nKihihi-Ishasha/Kanungu and \nBumbobi-Lwakhakha Roads \n(Uganda National Roads \nAuthority). \n2020. \n \nOpinion \nUnqualified \n\uf0b7 \nI observed significant delays in Project implementation. During the FY \n2019/20, Project disbursements from ADF amounted to UA 6,679,508.53.", "metadata": {"page": 221, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "From the signed loan amount of UA 70,000,000, only UA 24,672,103.72 \nrepresenting 35% of the signed loan amount had been cumulatively \ndisbursed through direct payments for Project expenditures as at 30th \nJune 2020. However, 91% of the original project implementation time \nhad elapsed as at 30th June 2020. Civil works for the upgrade of \nBumbobi-Lwakhakha 44.5km road had attained 84% physical progress as \nat 30th June 2020 versus time progress and planned physical progress of \n91%. The financial progress stood at 83% against plan of 92% as at 30th \nJune 2020. For the upgrade of Rukungiri-Kihihi-Ishasha/Kanungu \n(78.5km), 19.24% cumulative physical progress had been achieved as at \n30th June 2020 although 33.4% was planned to be completed. \n\uf0b7", "metadata": {"page": 221, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nDuring the FY 2019/20, UGX 3,033,479,790 (28%) of GOU counterpart \nproject funds were re-allocated to other Projects. Re-allocation of Project \nfunds to other projects invalidates the approved plan for implementation \nof RSSP-V activities. \n\uf0b7 \nUGX 267,083,716 was paid as interest on delayed payments. Such costs \nare un-necessary and represent unbudgeted expenditures which affect \nfunds ear-marked for implementation of planned Project activities. \n\uf0b7 \nUGX 226,500,820 had been paid to Government agencies (votes) \nincluding sub-counties and town councils during the FY 2019/20. These \npayments constitute revenue received for purpose of Government and", "metadata": {"page": 221, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "211 \n \nshould have been paid directly to the Uganda Consolidated Fund. \n\uf0b7 \nFinancing charges were accumulating due to low utilization of the loan \nfunds. Total charges of UGX 3,912,848,969 accrued on the disbursed and \nundisbursed loan balances during the FY 2019/2020. This is comprised of \nUGX 3,079,241,588 (79%) being charges on the undisbursed loan \nbalances during the year and UGX 833,607,381 (21%) being charges on \nthe disbursed loan amounts. \n14 \nRoad Sector Support Project \n5 (Upgrading of Rukungiri-\nKihihi-Ishasha/Kanungu and \nBumbobi-Lwakhakha Roads \n(Uganda National Roads \nAuthority). \n2021 \n \nOpinion", "metadata": {"page": 222, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Opinion \nUnqualified \n\uf0b7 \nI observed significant delays in Project implementation. During the FY \n2020/21, Project disbursements from ADF amounted to UA 10,235,407.97 \nresulting \ninto \ncumulative \ndisbursements \nof \nUA \n34,907,511.69 \n(representing 49.9% of the signed amount of UA 70,000,000). Whereas \nthe upgrading of Bumbobi-Lwakhakha (Lot2) 44.5km road had been \nsubstantially completed and the road was handed over to UNRA by the \nContractor on 21st December 2020, the upgrading of Rukungiri-Kihihi-\nIshasha/Kanungu (Lot1) 78.5km stretch had attained cumulative physical \nprogress of only 42.6% completion rate against planned progress of", "metadata": {"page": 222, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "55.1% as at 30th June 2021. As at 30th June 2021, only 18 months \n(19.6%) time were left to the end of the extended Project \nimplementation time of 31st December 2022. It is unlikely that UNRA will \ncomplete the 57.4% works outstanding (planned) for the upgrade of \nRukungiri-Kihihi-Ishasha/Kanungu road in the agreed timelines. \n\uf0b7 \nDuring the FY 2019/20, UGX 3,822,002,388 (36%) of GOU counterpart \nproject funds were re-allocated to other Projects. Re-allocation of Project \nfunds to other projects invalidates the approved plan for implementation \nof RSSP-V activities. \n\uf0b7 \nUGX 150,255,638 was paid as interest on delayed payments. Such costs \nare un-necessary and represent unbudgeted expenditures which affect \nfunds ear-marked for implementation of planned Project activities. \n\uf0b7", "metadata": {"page": 222, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nFinancing charges were accumulating due to low utilization of the loan \nfunds. UGX 3,770,851,261 was accrued on the disbursed and undisbursed \nloan balances with ADF during the FY 2020/2021. This is comprised of \nUGX 2,620,478,974 (69%) being charges on the undisbursed loan \nbalances during the year and UGX 1,150,372,287 (31%) being charges \non the disbursed loan amounts. For the last two financial years (FY \n2019/20 and 2020/21), total charges of UGX 7,683,700,230 had accrued \non the loan balances with ADF. This is comprised of UGX 5,699,720,562 \n(74%) being charges on the undisbursed loan balances and UGX", "metadata": {"page": 222, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "1,983,979,668 (26%) being charges on the disbursed loan balances. \n15 \nUpgrading of Tirinyi-Pallisa-\nKumi and Pallisa-Kamonkoli \nRoad project (Uganda \nNational Roads Authority). \n2020 \n\uf0b7 \nThe Authority was made to pay interest as a result of delay to pay the \ncontractor\u2019s approved interim payment certificates (IPCs). The contractor \ninvoked clause 14.7 and 14.8 of GCC and charged interest of UGX \n373,044,074.47 for IPCs 1-6. Another interest amount of UGX \n166,845,192 was paid for IPCs 11,12,13,14. The total interest paid for \nthe delayed settlement of the IPCs amounted to UGX 539,889,266. These \ninterest payments could have been higher if the dollar amounts had not", "metadata": {"page": 222, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "been negotiated downwards by USD 108,262.29 due to disagreements in \ncomputations. \n\uf0b7 \nDuring the FY 2019/20, UGX 892,920,000 of Project funds were re-\nallocated to other Projects. Re-allocation of Project funds to other \nprojects overrides established budgeting procedures. \n\uf0b7 \nThere were delays in recruitment of the Project consultant. In the period \n15th March 2018 to 26th April 2021, there was no Project consultant \nprocured to carry out supervisory roles for upgrading the Tirinyi-Kumi-", "metadata": {"page": 222, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "212 \n \nPallisa-Kamonkoli Road Project. In this period, the Directorate of Roads \nand Bridges Development of UNRA stepped in to carry out design review \nand supervisory roles in addition to their other activities. Recruitment of \nthe Consultant, AECO (Abuljebain Engineering Consulting Office) delayed \nuntil 15th March 2021 and they commenced work on 26th April 2021 four \nmonths when the project physical progress was already at 92.51% and in \ntime progress was 37.3 months (103.6%) to completion. The Consultant\u2019s \nfirst report was in the month of May 2021. \n\uf0b7 \nI observed delays in payment of Project Affected Persons. As of 30th \nJune 2021 payment of PAPs was still incomplete with a total of 156 PAPs \nnot yet paid. Tirinyi Pallisa Kumi (Lot 1) had 100 PAPs for land \nmeasuring 80.06 acres while Pallisa Kamonkoli road (Lot 2) had 56 PAPs", "metadata": {"page": 223, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "not paid for 27.318 acres of land (by May 2021) \n16 \nUpgrading of Tirinyi-Pallisa-\nKumi and Pallisa-Kamonkoli \nRoad project (Uganda \nNational Roads Authority). \n2021 \n\uf0b7 \nThere were overpayments to the contractor in interim payment \ncertificates numbers 25 and 26 amounting to UGX 8,613,048,720 (USD \n2,556,164.89). These payments were meant for supervisors who had not \nbeen recruited. \n\uf0b7 \nDuring the FY 2020/21, UGX 4,083,247,683 of Project funds were re-\nallocated to other Projects. I did not see any revised schedule submitted \nto MoFPED for onward approval by Parliament. Re-allocation of Project \nfunds to other projects overrides established budgeting procedures. \n\uf0b7", "metadata": {"page": 223, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nIn 2019/20, I noted that Management incurred interest charges of UGX \n539,889,266 in respect of 10 IPCs (1,2,3,4,5,6 and 11,12,13,14). \nHowever as of 30th June 2021, there were still 14 other interim payment \ncertificates (Nos 7,8,9,10,16-23, and 25-26) whose payments were \ndelayed making them eligible to interest charges. \n\uf0b7 \nThere have been delays in project completion. Completion dates for \nproject works were on 14th March 2021 for Lot 1 and 14th June 2021 for \nLot 2 respectively. As of 30th June 2021, both Tirinyi-Pallisa-Kumi and \nPallisa-Kamonkoli Road had not been completed as planned. Based on \nlinear sections completed to final Asphalt surfacing, Lot 1 was 95.58% \ncomplete while Lot 2 was at 98.09%. \n\uf0b7", "metadata": {"page": 223, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nThere was no documented plan for assets (housing units) built both in \nLot 1 and Lot 2 currently used by the contractors and consultants as their \naccommodation after they have left. These units number approximately \n28 permanent houses (2 type I houses, 6 type II houses 4 type IV \nhouses) and multiple accommodations and engineer\u2019s offices that have \nbeen constructed in land owned by UNRA. \n\uf0b7 \nI noted delays in relocation of utilities to pave way for road works. Five \nsub-contractors were approved by UNRA to relocate electricity, water \nlines and boreholes in Pallisa, Kumi, Mukongoro and Tirinyi towns at a \ntotal cost of UGX 1,517,595,734. As of 30th June 2021, work valued at \nUGX 1,260,024,061 had been certified and paid. The remaining works \nvalued at UGX 257,571,673 were not yet completed. \n\uf0b7", "metadata": {"page": 223, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nThere were disagreements between the consultant and the contractor on \ntests of completion on sections already handed over to the employer \nbefore certification. The disagreements are likely to cost Government \ninterest charges if not timely resolved. \n17 \nNorth Eastern Road-\nCorridor Asset Management \nProject (Uganda National \nRoads Authority) \n2020/21 \n\uf0b7 \nThe Project did not have an annual work plan and budget prepared for \nimplementation of its activities. Also, quantification of Project outputs \nwas not done for the financial year audited. \n\uf0b7 \nI observed delays in Project implementation. From the signed loan", "metadata": {"page": 223, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "213 \n \namount of XDR 157,600,000 (Equivalent to USD 243,800,000), only XDR \n22,916,350.66 (USD 32,780,000) representing 14.5% of the signed loan \namount had been cumulatively disbursed for implementation of the \nproject activities as at 30th June 2021. It should be noted that 65% of \nthe project implementation time had elapsed as at 30th June 2021. \nImplementation of civil works (road rehabilitation, improvement and \nroutine maintenance works) under component 1 had hardly progressed. \n\uf0b7 \nThere was under absorption of released project funds. Total IDA funds \navailable during the year were USD 8,090,898.12 (being opening fund \nbalance of USD 4,920,898.12 and additional disbursements of USD \n3,170,000 on 23rd October 2020). However, only, USD 4,457,669.32 was", "metadata": {"page": 224, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "spent on implementation of project activities representing funds \nabsorption level of 55%. \n\uf0b7 \nOut of the GoU counterpart funds of UGX 3,034,260,000 released in the \nFY 2020/21, only UGX 765,831,419 (25%) was spent on implementation \nof the Project activities. The balance of UGX 2,268,428,581 (75%) was \nreallocated to other projects. Management did not avail the authorization \nused as basis to reallocate the funds to other projects. \n\uf0b7 \nThere has been accumulation of higher financing charges due to the low \nutilization of the signed loan. Charges of UGX 4,703,471,276 (being \nservice charges and commitment charges of UGX 840,691,467 and UGX \n3,862,779,809 respectively) were accrued during the FY 2020/21.", "metadata": {"page": 224, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Cumulatively, total charges of UGX 27,201,439,219 (being service \ncharges and commitment charges of UGX 2,734,784,077 and UGX \n24,466,655,142 respectively) have been accrued since loan signature on \n16th February 2015. \n18 \nMasaka-Bukakata Road \nproject (2021) (Uganda \nNational Roads Authority) \n2020/21 \n\uf0b7 \nProject funds to the tune of UGX 262,339,751 were reallocated from the \nactivities on which they were budgeted and spent on other activities \nwithout seeking and obtaining the necessary approvals. \n\uf0b7 \nI observed delayed payment of Interim Payment certificates (IPCs). IPCs \n9, 12, 13, 14, 15, 17 and 18 were delayed beyond the agreed contract \ntimelines. Delays in payment could result in nugatory expenditures in \nform of the interest charged by the contractor.", "metadata": {"page": 224, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nThe contractor submitted an interest certificate in June 2021 amounting \nto UGX 523,120,000 in respect of interest on delayed payments of IPCs \nno. 1 to 9. The delayed payment of the IPCs led to wasteful expenditure \nof UGX523,120,000 in interest to the contractor. \n\uf0b7 \nIn my previous year report, I noted that out of 1,282 PAPs compensated \nwith land approx. 341.7162 Acres, none of the titles had been transferred \nto Government, that is; neither to the names of Uganda National Roads \nAuthority nor to Uganda Land Commission. I observed that this key \nfactor to land ownership had not been addressed during the year. \n \nLANDS SECTOR \n \n1 \nNational Physical Planning \nBoard \n2020/21 \n \n \nOpinion \nUnqualified \n \n\uf0b7", "metadata": {"page": 224, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nOut of the budgeted revenue of UGX.6.0 Bn, UGX.5.29 Bn was realised, \nresulting in a shortfall of UGX 0.710 Bn, which is 12% of the budget, Out \nof the total receipts for the financial year of UGX 5.29, Bn, UGX 2.945 Bn \nwas spent representing an absorption level of 56%. \n\uf0b7 \nI noted that three (03) outputs with a total of three (03) activities and \nplanned expenditure of UGX 0.760 were fully quantified. One (01) output \nwith five (05) activities was insufficiently quantified while (04) outputs \nwith a total of four (04) activities whose expenditure was not established,", "metadata": {"page": 224, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "214 \n \nwere not quantified at all. \n\uf0b7 \nOne (01) output with one (01) activity and expenditure worth UGX 0.452 \nBn was fully implemented., two (2) outputs with two (02) activities worth \nUGX.0.308 Bn were not implemented. \n\uf0b7 \nI noted that out of the approved staff structure of thirty five (35) \npositions, no position was substantively filled. The Board had only three \n(3) staff on secondment and twenty six (26) on assignment of duties. \n\uf0b7 \n \n2 \nMinistry of Lands, Housing \nand Urban Development \n2020/21 \n \nOpinion \nUnqualified \n \n\uf0b7 \nOut of the budgeted NTR of UGX.5.500Bn for the financial year", "metadata": {"page": 225, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "2019/2020 only UGX.5.480Bn was realized, representing a performance \nof 99.6 % above the target. \n\uf0b7 \nThe Ministry budgeted for UGX.74.32Bn in Government receipts, out of \nwhich UGX.71.13Bn was warranted, resulting in a shortfall of UGX.3.19Bn \nwhich is 4.29% of the budget. \n\uf0b7 \nOut of the total receipts of UGX.71.12Bn, UGX.69.13Bn was spent \nresulting into an unspent balance of UGX.1.99Bn representing an \nabsorption level of 97.2%. The balance unspent was subsequently swept \nback to the consolidated fund at the end of the financial year. \n\uf0b7 \nI sampled 34 outputs with a total of 175 activities and expenditure of \nUGX 57.908Bn and noted that 15 outputs with a total of 67 activities and", "metadata": {"page": 225, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "expenditure of UGX.12.45Bn were fully quantified. Fifteen (15) outputs \nwith a total of 92 activities and expenditure worth UGX.42.35Bn were \ninsufficiently quantified. Four (4) outputs with a total of 16 activities and \nexpenditure worth UGX.3.11Bn were not quantified. \n\uf0b7 \nI assessed the implementation of 15 fully quantified outputs with a \nsample of 67 activities worth UGX.12.45Bn and noted that three (3) \noutputs with a total of three (3) activities worth UGX.0.456 Bn were fully \nimplemented. Twelve (12) outputs with a total of sixty-four (64) activities \nworth UGX.11.99Bn were partially implemented. \n\uf0b7 \nI \nnoted \nthat \nthe \nMinistry\u2019s \nPayables \namount \nincreased \nby", "metadata": {"page": 225, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "increased \nby \nUGX.105,145,022,390 from UGX.144,329,975,873 in the previous year to \nUGX.249,474,998,263 \nin \nthe \ncurrent \nyear. \nIn \naddition, \nUGX.11,593,918,200 of the new compensations related to private persons \nthat had been included among the ranchers to be compensated, but \nlacked ranch title number, area of land lost and other details recorded in \nthe domestic arrears schedule. \n\uf0b7 \nI noted a recognized NTR amount of UGX.1.7billion relating to proceeds \nfrom the sale of government pool housed had no proper documentation. \n\uf0b7 \nI noted that Parliament approved a payment of UGX.3,802,500,000, as \ncompensation for Ndeeba Land but the payment was halted by an interim", "metadata": {"page": 225, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "court order. \n\uf0b7 \nI noted that the Ministry compensated the claimant of land at Block 237 \nplots 29,48,56,59 and 67 at Mutungo for a sum of UGX.26.4 Bn which \nhad earlier been purchased by Uganda Land Commission which partly \npaid UGX 2.4Bn. The two entities have not agreed on the ownership of \nthe land. \n \n3 \nUganda Support to \nMunicipal Infrastructure \nDevelopment, Additional \nFinancing (USMID-AF/II) \n\uf0b7 \nTo-date, \nthe \nprogram \nhas \nmade \navailable \nUSD \n140,331,745 \n(UGX.514,740,787,823), \nout \nof \nwhich \nonly \nUSD.44,938,686 \n(UGX.477,249,316,165) had been made available to the LGs, leading to a", "metadata": {"page": 225, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "215 \n \nProject. \n2020/21 \n \n \nOpinion \nUnqualified \n \nfunds availability to LG level of 32%. \n\uf0b7 \nOut of the budgeted disbursements/receipts of UGX.454,866,200,300 in \nthe financial year, only UGX.301,529,104,089 (66.3%) was available to \nthe project, leading to a shortfall of UGX. 153,337,096,211(33.7%). \n\uf0b7 \nOut of a sum of UGX.301.5 Bn available for project utilization in the year, \nUGX.107,162,555,328 was spent, resulting into an absorption level of \nonly 64.5%. The low rate of absorption of funds may result into delayed \nattainment of project objectives. \n\uf0b7", "metadata": {"page": 226, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nI noted that UGX 331,131,497,751 was being held by the treasury for \nprogramme activities. This was an increase of held funds, as \nUGX.154,842,679,584 was held last year. This arose from inadequate \nfunds utilisation by the LGs. \n4 \nAlbertine Region \nSustainable Development \nProject (ARSDP) \u2013 MoLHUD \n2020/21 \n \nOpinion \nUnqualified \n \n\uf0b7 \nOut of the budgeted IDA disbursement of UGX.19,514,012,776 for the \nyear 2020/2021, only UGX.10,094,659,078 (52%) was realized leading to \na shortfall of UGX.9,419,353,698 (48%). Revenue shortfall limits the \nimplementation of planned activities which could affect the achievement", "metadata": {"page": 226, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "of the project objectives. \n\uf0b7 \n Review of the Q4 Progress report revealed that many sub-projects \nworth USD 27.5million handed over to the Ministry of Lands, Housing and \nUrban Development for construction, will not be implemented due to lack \nof funding, yet, costs have already been incurred since all the sub-\nprojects have been designed and Environment and Social Impact \nAssessment done. \n\uf0b7 \nThe civil works for construction of three markets, namely: Biiso Market in \nBuliisa District, Kabaale Market in Hoima District and Buhuka Market in \nKikuube District costed at UGX.9,963,228,048 were not complete despite \nthe extension of the completion date to 31st August 2021, thus delaying \nservice delivery to citizens. \n5 \nCompetitiveness and \nEnterprise Development \nProject (CEDP) Component \n1- Land Administration \n(IDA CREDIT AGREEMENT", "metadata": {"page": 226, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "(IDA CREDIT AGREEMENT \nCR 52690-UG) PROJECT ID \nP130471. \n2020/21 \n \nOpinion \nUnqualified \n \n\uf0b7 \nIt was noted that out of the UGX.12.73Bn budget allocated for the project \nactivities during the fiscal year 2020/2021, UGX.11.86 Bn (93%) was \nspent, leaving a balance of UGX.0.87Bn. \n\uf0b7 \nI noted that one plot of land has multiple titles while others are plotted in \nthe middle of the road and wetlands. Such inaccurate/wrong sketches \ncaptured on the Uganda National Lands Information System (UGNLIS) \nmay lead to land wrangles, and Government may face challenges from \ntitle holders with land titles in roads and wetlands. \n6 \nUganda Land Commission. \n2020/21 \n \nOpinion \nQualified", "metadata": {"page": 226, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Opinion \nQualified \n \n\uf0b7 \nOut of the approved budget of UGX. 71,868,574,709, only UGX. \n65,793,286,529was warranted/released resulting into a budget shortfall \nof UGX.6,075,288,180 representing 91.5%. \n\uf0b7 \n Out of the total warrants of UGX.65.79Bn received during the financial \nyear. UGX.64.94Bn was spent by the entity resulting in an unspent \nbalance of UGX.0.85Bn representing an absorption level of 98.71%. \n\uf0b7 \nOut of the twenty-one (21) outputs with a total of sixty-one (61) activities \nand expenditure of UGX.64.86Bn sampled, Two (2) outputs with a total of \nSix (6) activities and expenditure worth UGX.0.71Bn were fully quantified,", "metadata": {"page": 226, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Eight (8) outputs with a total of thirty (30) activities and expenditure \nworth UGX.32.35Bn, was insufficiently quantified. Eleven (11) outputs \nwith a total of twenty-five (25) activities and expenditure worth UGX", "metadata": {"page": 226, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "216 \n \n31.8Bn were not quantified at all. \n\uf0b7 \nOut of the two (2) fully quantified outputs, Two (2) outputs with six (6) \nactivities worth UGX.0.71Bn were partially implemented. Out of the six \n(6) activities, the entity fully implemented one (1) activity; Four (4) \nactivities were partially implemented, while one (1) activity remained \nunimplemented. \n\uf0b7 \nThe balances for; payables of UGX 169,490,014,824 , Non-produced \nassets of UGX 212,279,181,177, and that of revenue receivables of UGX \n24,760,000 as at 30th June, 2021, Could not be confirmed due to \nabsence of adequate supporting documentation and reliable data by the \ncommission. \n\uf0b7", "metadata": {"page": 227, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "commission. \n\uf0b7 \nA sum of UGX.1,237,717,474 was paid for outstanding arrears that \nrelated to the prior year, but were not recognized in the prior year \nfinancial statements as payables. In addition, withholding tax of \nUGX.22,020,000 was not deducted and paid to URA. \n\uf0b7 \nI noted that the court garnished the Commission\u2019s bank Account with a \nbalance of UGX.244,184,480 leading to the delay to clear the outstanding \nobligations to third parties. \n\uf0b7 \nIt was noted that the entity obtained a supplementary of UGX 10.62Bn \nwas received by the entity but was not requisitioned by management. \nThere were unsupported payments of domestic arrears amounting to UGX \n14.4 Bn. Payments worth UGX 6.7Bn were paid to unverified arrears. \n\uf0b7", "metadata": {"page": 227, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nIn addition, payables to Church of Uganda amounting to UGX 15Bn, and \nReceivables amounting to UGX 3.966 Bn relating to the overpayment to \nKampala archdiocese in the prior year were not recognised. In addition, \noutstanding arrears of UGX 1.2Bn related to prior year but paid during \nthe year have not been recognised in the current year. \n\uf0b7 \nThe Commission does not have a land inventory and database for all \ngovernment land and properties under its jurisdiction that are either \noccupied by tenants, vacant, acquired under compensation (but not yet \nre-distributed to the bona fide occupants), or acquired and owned by \nother government institutions and missions abroad. As such tracking of \nlease payments and revenue arrears related to ground rent and premium \ncould not be supported. \n \nACCOUNTABILITY SECTOR \n\uf0b7 \n \n1. \nUganda Communication", "metadata": {"page": 227, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "1. \nUganda Communication \nEmployees Contributory \nPension Scheme. \n2019/20 \n \nOpinion \nQualified \n\uf0b7 \nReported in the Statement of Net Assets Available for Benefits are \npayables \nand \naccruals \nof \nUGX.2,679,752,000, \nof \nwhich \nUGX.2,022,412,000 and UGX.442,330,000 are administrative \nand \nactuarial fees respectively. However, these were not adequately \nsupported to confirm existence. \n\uf0b7 \nEleven (11) properties disclosed as part of the non-core assets were still \nnot valued and therefore not included in the value of Non-current assets \nof the Scheme. \n\uf0b7 \nA review and comparison made between the audited financial statements", "metadata": {"page": 227, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "for the period ending 30th June, 2019 and the financial statements for \nthe period ending 30th June, 2020 revealed inconsistencies in the \naccount balances of reserves. \n\uf0b7 \nReceivables were not supported with any documentation and schedule to \nconfirm the amounts and authenticity. \n\uf0b7 \nThe reported cash and cash equivalents is misstated.", "metadata": {"page": 227, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "217 \n \n\uf0b7 \nThe \nScheme \nrecognized \na \nretrenchment \npenalty \nworth \nUGX.11,320,160,000 as a receivable from UTL yet this amount had been \nwritten off. \n\uf0b7 \nI noted that out of the budgeted revenue of UGX.12,447,003,444 for the \nyear 2019/2020, only UGX.2,264,969,444 was realised representing a \nperformance of only 18.2% of the target. \n\uf0b7 \nI established that funds totaling to UGX.88,575,000 were never budgeted \nfor, and no authority was sought from the Founder to use the current \nyear\u2019s appropriated funds to meet this expenditure. \n\uf0b7 \nDiversion of members\u2019 contribution (DC) to pay defined benefits (DB)", "metadata": {"page": 228, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "liabilities: UGX.4,550,343,000. \n\uf0b7 \nI noted that, whereas PAYE to a tune of UGX.35,427,298 was withheld \nfrom employees as required during the year, it was not remitted to URA \nin the timelines prescribed by the Income Tax Act. \n2 \nUganda Bureau of Statistics \n(UBOS). \n2020/21 \n \nOpinion \nUnqualified \n\uf0b7 \nI noted a number of issues in the implementation of the approved budget \nsuch: under absorption of funds; partial or non-implementation of \nactivities, non-quantification of activities, under performance of the NTR \nand government releases. \n\uf0b7 \nThere was delayed Implementation of a number of Projects such as: \nUNFPA-Survey Project, Baseline Education Survey Project (WB-GPE-", "metadata": {"page": 228, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "UTSEP) and UBOS Panel-Survey project majorly caused by effects of \nCovid-19 pandemic. \n\uf0b7 \nOut of the total approved structure of 316 staff, only 283 (90%) positions \nwere filled, leaving 33 (10.4%) positions vacant. Staffing gaps affect the \nentity\u2019s capacity to effectively deliver services. \n\uf0b7 \nthe entity lacked land titles for its land both in Entebbe and at head \noffice, although management demonstrated its efforts in engaging \nUganda Land Commission to secure land titles. \n\uf0b7 \nSeveral procurements to the tune of UGX.1.834Bn were not executed as \nof 30th June 2021. This was attributed to unforeseen circumstances \nbrought about by the lock-down associated with the Covid-19 pandemic \nas well as budget cuts. \n3 \nURA Corporate \n2020/21 \n \n \nOpinion", "metadata": {"page": 228, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Opinion \nUnqualified \n\uf0b7 \nURA operated at least six operations bank accounts in commercial banks \nwith an annual turnover of over UGX.1.1 Tn, in contravention of Section \n33 (5), (6) and (7) of the Public Finance Management Act 2015. The \naction overrides the Government financial management controls and \ndistorts the monetary policy. \n\uf0b7 \nUGX.9.6Bn was advanced to staff through their bank accounts to \npurchase goods, services, and other activities without following \nregulations. The practice is irregular and also exposes Government funds \nto a risk loss through misuse. \n\uf0b7 \nUGX.1.16Bn paid through mobile money to various suppliers for the \nprovision of services were not adequately supported with accountability \ndocuments as required; as a result, I could not ascertain whether the \nfunds were utilised correctly for the intended activities. \n\uf0b7", "metadata": {"page": 228, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nManagement made cash withdrawals amounting to UGX.5.2Bn during the \nyear, contrary to Section 11 of PFMA 2015, as well as Section 7 of the \nURA Cash Policy that sets the maximum insurable cash limit to \nUGX.20Mn. The practice has been recurring and exposes government \nfunds to a risk of misuse of cash and loss.", "metadata": {"page": 228, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "218 \n \n\uf0b7 \nThe Authority awarded multi-year contracts to the tune of UGX.18.7Bn \nwithout evidence of approval of these multi-year commitments by the \nParliament. This was contrary to Section 23(1) of the PFMA 2015. \n\uf0b7 \nPlanned procurements worth UGX.25.1Bn were not implemented by 30th \nJune 2021. This adversely affects the realisation of critical government \nprograms. Management explained that the delays were due to various \nreasons, some of which are beyond their control. \n\uf0b7 \nDuring the financial year 2020/21, the collaborating institutions under the \nTax Registration and Expansion Programme (TREP) registered only \n167,211 taxpayers against a target of 436,869 taxpayers representing a \n38.27% registration success and a shortfall of 61.7%. In revenue terms, \nalthough TREP had a revenue target of UGX.124.58 Bn in FY 2020/21, it", "metadata": {"page": 229, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "had only collected UGX.49.93Bn by 30th June 2021, representing a 40% \nperformance rate. The paltry performance was attributed to COVID-19 \neffects, riots and the political environment, that hindered field activities. \n\uf0b7 \nThe Ministry of Local Government had planned to implement activities \nworth UGX.4.4Bn under TREP activities but only implemented activities \nworth UGX.3.3Bn, leaving un-implemented activities worth UGX.1.1Bn \ndespite receiving all funding. As a result, the e-LogRev objective of \nsimplifying and strengthening the local revenue collection systems for \nLocal Governments may not be achieved in time. \n4 \nURA \nRevenue \nCollection \nAccount \n2020/21 \n \nOpinion \nUnqualified \n\uf0b7 \nThe Authority had a total revenue collection target of UGX.22.039Tn for", "metadata": {"page": 229, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "the financial year 2020/21, and collected total gross revenue of \nUGX.19.649Tn, representing 89% hence a shortfall of UGX.2.39Tn \n(11%). Under collection of revenue affects cash flow performance of \nGovernment and realisation of the planned service delivery targets. \nManagement attributed the performance to the adverse impact of COVID-\n19 pandemic. \n\uf0b7 \nI reviewed the statement of comparison of target and actual revenue \ncollection by the tax head and noted that revenues from different sources \nworth UGX.86.979Bn were not budgeted for, despite collecting significant \nincomes on these tax heads for the past two years leading to under-\nbudgeting. Lack of budget provisions of the tax heads conceals revenue \npotential, distorts revenue projections and may lead to un-appropriate \nperformance assessments and related bonuses. \n\uf0b7 \nUganda Tax/GDP ratio remained low at 12.5% in 2020/21, compared to", "metadata": {"page": 229, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "other countries in the region and globally. This performance was similar \nto last year's performance. This implies that tax bases have not widened \nor deepened enough to tax all potential sources. \n\uf0b7 \nThere was an increase in total Tax Arrears from UGX.3.009Tn in 2019/20 \nto UGX.4.519Tn in the financial year 2020/21 representing a total \nincrease of UGX.1.492Tn or percentage increase in total Tax Arrears of \n50%. The Increase denies Government the required resources to deliver \nmore services. \n\uf0b7 \nThe contract between the Government of Uganda (GoU) and a private \ncompany had since expired even though the Company had continued to \nmanufacture motor vehicle registration numbers for taxpayers. Expired \ncontracts expose the Government to the risk of loss of revenue without a \nremedy. \n\uf0b7 \nI noted that government had continued to engage only two private", "metadata": {"page": 229, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "companies, making them monopolies in providing motor vehicle \nregistration number plates for more than eight (8) years without opening \nit up for competition. The Monopoly exposes the taxpayer to high prices", "metadata": {"page": 229, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "219 \n \nfor the services. \n\uf0b7 \nURA received a sum of UGX.279.509Bn through Bank of Uganda from \nGovernment \nMinistries, \nDepartments \nand \nAgencies \nand \nLocal \nGovernments. The amount was not reconciled and receipted due to the \ninability to identify the tax head and the lack of IFMS and BoU Systems \ninterface with URA systems. Collection of Revenue without receipting and \ncharging the correct tax heads results into misstatement of revenue \ncollected per tax head. \n5 \nUganda Retirement Benefits \nRegulatory Authority. \n2020/21 \n \nOpinion \nUnqualified \n\uf0b7 \nThe entity budgeted to receive UGX.12.35Bn in the FY 2021/21. However,", "metadata": {"page": 230, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "only UGX.11.25Bn was available for spending resulting into a shortfall of \nUGX.1.1Bn, which is 9% of the budget; this affected implementation of \nplanned activities. \n\uf0b7 \nAssessment of implementation of planned outputs revealed that Nine (9) \noutputs with a total of forty (40) activities worth UGX.2.89Bn were \npartially implemented. Out of the forty (40) activities, the entity \nimplemented twenty-eight (28) activities (70%), while twelve (12) \nactivities (30%) remained unimplemented. In addition, planned \nprocurements totaling UGX.309Mn were also not implemented. \n\uf0b7 \nOut of the approved staffing level of 61, the Authority has only 36 \npositions filled (59%), leaving a staffing gap of 25 positions (41%). \nIncluded in the unfilled positions are key positions of Director Finance and \nAccounting, Director Human Resource and Administration and the", "metadata": {"page": 230, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Director Research and Strategy. This affects the entity\u2019s capacity to \neffectively deliver its mandate. \n6 \nBank of Uganda \n2020 \n \nOpinion \nUnqualified \n\uf0b7 \nUncertainties brought by Covid-19 could potentially led to delays by \nGovernment to refund/repay amounts due to the Bank. \n\uf0b7 \nAudit noted that the Government capital account included in the loans, \nadvances and drawdowns to Government increased by UGX 1,087,811 \nmillion representing 313% from UGX 347,475 million as at 30 June 2019 \nto UGX 1,435,286 million as at 30 June 2020. \n\uf0b7 \nThe assessment of the possible outcome of the appeal (Crane Bank - Civil \nAppeal No. 252 of 201) and the amount of any resulting potential \nobligations, if any, involves significant judgement by the directors. \n\uf0b7", "metadata": {"page": 230, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nI noted that, as at June 30, 2020, the core capital of the Bank was below \nthe \nminimum \nrequired \ncapital \nby \nUGX.453,331 \nmillion \n(2019: \nUGX.671,712 million) \n7 \nHousing \nFinance \nBank \nLimited \n2020 \n \nOpinion \nUnqualified \n\uf0b7 \nI noted that Management has estimated impairment provisions for loans \nand advances to customers collectively for homogenous loan portfolios \nusing statistical methods on the basis of risk parameters using historical \ndata taking into account forward looking information on expected \nmacroeconomic conditions including considerations made for possible \neffects from the COVID-19 pandemic. \n\uf0b7 \nAs at 31 December 2020, a total of 1184 customers with loans worth", "metadata": {"page": 230, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "UGX. 159.8 billion had applied and been granted loan restructures of \ndifferent forms. However, as at 31 December 2020, only 331 customers \nwith loans worth UGX. 58.0 billion were still under repayment \nmoratoriums with the rest having reverted to periodic repayments \nschedules following the initial restructures. \n\uf0b7 \nThe COVID-19 pandemic containment measures increased economic \nuncertainty amongst the borrowers, prompting many to prematurely \nrepay their loans during and after the lockdowns. These redemptions", "metadata": {"page": 230, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "220 \n \ninvolving as many as 901 customers affected the growth rate of the loan \nbook by over UGX. 37.0 billion. \n\uf0b7 \nI noted that there was a disruption in the periodic repayments by the \nBank\u2019s borrowing customers at the peak of the pandemic containment \nmeasures. \n8 \nPost Bank Uganda Limited. \n2020 \n \nOpinion \nUnqualified \n\uf0b7 \nCOVID-19 effects and corresponding bank measures impacted PBU loan \nportfolio in different ways including reduction in cash flows from loan \nrepayments as a result of granting moratoriums, increase in customers \ndemanding for Interest rate reduction, shrink in credit demand for some \nsectors and drop in disbursements due to cautious lending coupled with \nincrease in default rates for some sectors. \n9 \nContigencies\u2019 Fund. \n2020/21", "metadata": {"page": 231, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "2020/21 \n \n \nOpinion \nUnqualified \n \n\uf0b7 \nSection 26(i) of the PFMA 2015 (as amended) provides that a \nContingencies Fund shall every financial year be replenished with an \namount equivalent to 0.5% of the appropriated annual budget of \nGovernment of the previous financial year. The approved budget for the \nprevious financial year (FY2019/20) was UGX.40.49Trillion, which would \nhave translated into UGX.202.43Bn funding for the Contingencies\u2019 Fund in \nthe year under review. I noted however, that Parliament only \nappropriated UGX.62Bn to the Contingencies fund, causing a deficit of \nUGX.140.3Bn. \nUnderfunding \nof \nthe \nContingencies \nFund \ndistorts", "metadata": {"page": 231, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Fund \ndistorts \nimplementation of the approved budget for the current year as evidenced \nby budget cuts and reallocations to fund supplementary budgets relating \nto natural disasters and emergencies that occurred during the year. \n\uf0b7 \nAudit of the withdrawals made off the Contingencies Fund revealed that a \ntotal of UGX.62,070,000,000 was transferred to the Fund bank account \nheld at Bank of Uganda. The funds were consequently transferred to \nentity bank accounts and expensed off the IFMS, which makes it difficult \nto follow up and track to confirm the adherence to the approved budget \nguidelines and also confirm accuracy of the reports generated. Spending \noff the IFMS also exposes the funds to the risk of misuse due to lack of \ntransparency. \n10 \nFinancial \nIntelligence \nAuthority. \n2020/21 \n \nOpinion \nUnqualified \n\uf0b7", "metadata": {"page": 231, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Unqualified \n\uf0b7 \nThe Financial Intelligence Authority lacked an approved strategic plan \naligned to the NDP III. Under the circumstances, there is a risk that \nactivities implemented during the financial year 2020/2021 were not \naligned to the NDP-III, which negatively affects the achievement of NDP-\nIII objectives. I advised the Accounting Officer to follow up on the \napproval of the strategic plan urgently. \n\uf0b7 \nA review of the staffing structure for FIA revealed that out of the total \napproved establishment of 64 staff, only 41 (64%) positions were filled, \nand 23 (36%) positions had not yet been filled. Key among the unfilled \npositions include; Director Legal, Inspection and Compliance; Director \nAudit, Director Finance & Administration, among others. Staffing gaps \nhave a negative effect on the general performance of the Authority and \nhinder effective and efficient service delivery. I advised management to \nintensify their efforts with the relevant stakeholders to ensure that the", "metadata": {"page": 231, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "gaps are filled so as to deliver effective services. \n\uf0b7 \nA review of the Anti-Money Laundering Act (AMLA) 2017 (as amended) \nand its accompanying regulations revealed that the Authority does not \nhave in place pecuniary sanctions in case of breach of the law and \nregulations. The lack of sanctions makes it difficult for the Authority to \nenforce compliance with the Act by all accountable persons. I advised \nmanagement to follow up with the responsible Minister so that these \nregulations are passed to enforce accountability.", "metadata": {"page": 231, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "221 \n \n11 \nInsurance Training College \n(ITC). \n2020/21 \n \nOpinion \nUnqualified \n\uf0b7 \nSection 63 of the Insurance Act requires the Insurance Training levy to \nbe reconciled with Insurers within 60 days after the end of the calendar \nyear. I however noted that a total of UGX.4.9Bn was collected based on \nbasis of computed returns submitted by the Insurers and Health Member \nOrganisations (HMO\u2019s), with no evidence of reconciliation of Training Levy \nreturns, contrary to requirements under the Act. As a result, the returns \nmay be understated to reduce remittances, which may lead to revenue \nloss. \n12 \nNational Population Council. \n \nOpinion \nUnqualified \n\uf0b7 \nOut of the ten (10) sampled outputs that NPC planned to implement", "metadata": {"page": 232, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "during the period under review, five (5) outputs representing 50% of the \nplanned sampled outputs were fully implemented, four (4) Outputs \nrepresenting 40% were partially implemented, and one (1) Output \nrepresenting 10% was not implemented during the period under review. \n\uf0b7 \nGratuity payments totalling UGX.940Mn were not subjected to PAYE and \nthe 5% NSSF employee deductions. I further noted that NPC did not \nprovide for the 10% employer contribution for the staff resulting from the \ngratuity payment. This denied URA the much-needed revenue and the \nstaff were disadvantaged due to failure to contribute to NSSF. \n13 \nTax Appeals Tribunal. \n2020/21 \n \nOpinion \nUnqualified \n\uf0b7 \nArising out of a supreme court decision, all tax disputes in Uganda must \nfirst commence in the Tax appeal Tribunal before they move to any other", "metadata": {"page": 232, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "court. A review of the cases filed at the Tribunal, in the last three years, \nrevealed that there was an increase of cases filed from 40 in 2017 to 176 \nin 2020. In spite of the increase in cases, there has been no increase in \nthe number of members of the Tribunal which has necessitated that the \nmembers of the Tribunal sit every day not withstanding their regular \ninvolvement in the administrative aspects of the Tribunal. The current \nstructure of the remuneration of the members indicates that each \nmember will be paid a sitting allowance and a retainer. This has resulted \ninto the Tribunal spending the bulk of its money on the payment of \nallowances to the Tribunal members. \n\uf0b7 \nDuring the reviews, I noted that there were instances in which a Tribunal \nmember is an active partner of a Firm that has a case before the \nTribunal. Whereas the said Tribunal Member does not form part of the \npanel of the committee adjudicating the disputes, this presents a", "metadata": {"page": 232, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "potential conflict of interest for the members of the committee who work \nwith him and have to decide the matters involving his Firm for which he is \nan active partner. \n\uf0b7 \nI noted that the approved organisation structure for the Tribunal, did not \nhave a provision for internal audit function and indeed, this role has not \nbeen assigned to any staff. This is contravention with the PFMA 2015, \nand it also denies the Tribunal an early warning mechanism in cases of \nerrors of omission or commission. \n14 \nUganda \nMicrofinance \nRegulatory \nAuthority \n(UMRA) \n2020/21 \n \nOpinion \nUnqualified \n\uf0b7 \nIt was noted that, contrary to Section 17 of the PFMA 2015, the Authority \nhad unspent funds totalling UGX.4.93Mn at the year-end that were never", "metadata": {"page": 232, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "returned to Treasury. It should also be noted that the same was done in \nthe preceding year where UGX.204Mn was never returned. Failure to \nreturn unspent funds contravenes Section 17 of the Public Finance and \nManagement Act 2015, and exposes the funds to a risk of diversion since \nthey are spent in the subsequent financial year without appropriation by \nparliament. \n\uf0b7 \nSection 11.2.4 of the Treasury Instructions 2017, requires the Head of \nFinance to ensure that commitments are not approved unless sufficient \nfunds are available in the commitment item. However, in disregard to the", "metadata": {"page": 232, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "222 \n \nabove provision, commitments to a tune of UGX.321Mn remained unpaid \nat the close of the year under review. \n\uf0b7 \nComparison of licensees per category (Moneyl enders and non-deposit \ntaking institutions) between the previous year 2019/2020 and those that \nrenewed their licenses in the year under review 2020/2021 revealed that \na total of 365 licensees had not submitted applications for renewal. In \nlight of the occurrence, there is a risk that the licensees in issue could \nhave operated for the whole year without having paid the requisite fees, \nwhich would lead to a loss in government revenue to a tune of \nUGX.200Mn. \n\uf0b7 \n Section 36(1)(a & b) of the Tier 4 Microfinance Institutions Act and \nMoneylenders Act, 2016 states that a SACCO shall not carry on the \nbusiness of financial services unless it is a registered society; and licensed", "metadata": {"page": 233, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "under the Act. Audit noted that only 15 SACCOs were issued with \noperating licenses by Uganda Microfinance Regulatory Authority. \nHowever, data obtained from Microfinance Support Centre (MSC) \nindicated that over 6,150 EMYOOGA SACCOs were by March, 2021 in \noperation without acquiring operating licenses. \n\uf0b7 \nAudit of the Authority\u2019s payroll and other expenses revealed that during \nthe financial year ended 30th June 2021, Pay as You Earn (PAYE) tax \namounting to UGX.290Mn in respect of deductions from employees was \nnever remitted to the Uganda Revenue Authority. \n15 \nThe \nDeparted \nAsians \nProperty Custodian Board \n(DAPCB). \n2020/21 \n \nOpinion \nUnqualified \n\uf0b7 \nI noted that MDAs and LGs are still experiencing challenges in \nimplementing the budgets approved by parliament and policy guidance\u2019s", "metadata": {"page": 233, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "issued by PS/ST, which has continued to affect the performance and \ncredibility of the budget negatively. \n\uf0b7 \nI reviewed the NTR estimates, revenue sources and rates charged for the \nfinancial year 2020/2021 and noted that the entity budgeted to collect \nNTR of UGX.2,572,820,000 during the year under review. Out of this, \nonly UGX.1,410,970,500 was collected, representing a performance of \n55% of the target, resulting into a shortfall of UGX.1,161,849,500. \n\uf0b7 \nThe entity budgeted to receive UGX.2.572Bn during the period, out of \nwhich UGX.1.383Bn was warranted, resulting into a shortfall of \nUGX.1.189Bn which is 46.23% of the budget. \n\uf0b7 \nI observed that in cases where outputs were not quantified, management", "metadata": {"page": 233, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "reported performance in generic ways such as tenants sensitised to pay \nrent, court attended etc, without specifying the number/quantities \nachieved. \n\uf0b7 \nAll five (5) outputs with a total of thirteen (13) activities worth \nUGX.1.383Bn were partially implemented. \n\uf0b7 \nI noted that in a twist of events, the Board refunded the sum of \nUGX.0.860Bn that had been deposited in respect of the property, citing \nthe fact that the property had been donated to the tenant, but this was \nnot supported by a Board resolution. \n\uf0b7 \nI observed that according to a disclosure in note 19 of the accounts, \nreceivables have increased from UGX.3.35Bn last year to UGX.8.21Bn this \nyear. Of this amount, UGX.3,73Bn relates to uncollected rent from prior", "metadata": {"page": 233, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "years and UGX.4.60Bn relates to unpaid proceeds from property sales. \n\uf0b7 \nI reviewed the portfolio of DAPCB court cases and noted that there was a \ncontinuous rise) in the number of court cases against the Board arising \nfrom disputes of properties. The cases rose by 18, making a total of 120, \nas at the end of the year.", "metadata": {"page": 233, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "223 \n \n\uf0b7 \nI noted that the entity does not have a comprehensive asset register to \ndate. The copy of the compendium/register availed to me for audit was \nstill under verification by management and as such management could \nnot vouch for its completeness. \n\uf0b7 \nI reviewed the compendium of assets presented for audit by \nmanagement and noted that nearly all properties therein were not yet \nvalued, and yet the Board of valuers has now been in place for nearly \nthree financial years. \n16 \nThe \nDanida \n(Upgrade) \nProject \nUnder \nthe \nInspectorate \nof \nGovernment. \n2020/21 \n \nOpinion \nUnqualified \n\uf0b7 \nI noted that MDAs and LGs are still experiencing challenges in", "metadata": {"page": 234, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "implementing the budgets approved by parliament and policy guidance's \nissued by PS/ST, which has continued to affect the performance and \ncredibility of the budget negatively. \n\uf0b7 \nI noted that the project had an approved budgeted of UGX.7,910,415,388 \nbut only received UGX.2,047,981,275 as revenues for the period, leading \nto a 35.7% revenue performance. \n\uf0b7 \nI observed that the project work plan had 47 activities out of the planned \n69 activities that were not quantified. \n17 \nThe \nInspectorate \nof \nGovernment (IG). \n2020/21 \n \nOpinion \nUnqualified \n\uf0b7 \nI noted that MDAs and LGs are still experiencing challenges in \nimplementing the budgets approved by parliament and policy guidance\u2019s \nissued by PS/ST, which has continued to affect the performance and", "metadata": {"page": 234, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "credibility of the budget negatively. \n\uf0b7 \nI reviewed the NTR estimates, revenue sources and rates charged at vote \nlevel for the financial year 2020/2021 and noted that the entity budgeted \nto collect NTR of UGX.1,201,509,223 during the year under review. Out \nof this, a total of UGX.1,875,073,520 was collected, representing a \nperformance of 156% of the target with an excess collection of \nUGX.673,564,297. \n\uf0b7 \nThe entity budgeted to receive UGX.53.4Bn from GoU sources; however, \nonly UGX.49.45Bn was released, resulting into a shortfall of UGX.3.95Bn, \nwhich is 7.4% of the budget. \n\uf0b7 \nOut of the total warrants for the financial year of UGX.49,446,960,793,", "metadata": {"page": 234, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "UGX.45,655,225,893 was spent by the entity, leaving a balance of \nUGX.3,791,734,900 unutilised by the vote. \n\uf0b7 \nI noted that the approved work programme for the construction of \nheadquarter building indicated planned progress of 32% compared to the \nactual work progress of 11.9%. \n18 \nThe Northern Uganda Social \nAction Fund Project Under \nthe \nInspectorate \nof \nGovernment (IG). \n2020/21 \n \nOpinion \nUnqualified \n \n\uf0b7 \nThe project had an approved budget of UGX.2,235,166,397 for the FY \n2020/21. I noted that a total of UGX.2,235,166,397 was received for the \nperiod representing 100% of the appropriated amount. \n\uf0b7", "metadata": {"page": 234, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nI noted that out of the twenty (20) sub-activities in the approved work \nplan for the FY 2020/21, eight (8) of them were not quantified. \n19 \nMinistry of Finance Planning \nand Economic Development \n(MoFPED). \n2020/21 \n \n\uf0b7 \nAnalysis of domestic arrears showed an increase of UGX.139Bn from \nUGX.129Bn in the financial year 2019/20 to UGX.269Bn in the financial \nyear 20/21 representing a jump of 108%. Overall, tax expenditure by \ngovernment for private firms continues to account for the biggest portion \nof the arrears (at 78%) despite the write off of the tax arrears in the", "metadata": {"page": 234, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "224 \n \n \nOpinion \nUnqualified \n \nprevious financial year. I also noted that arrears relating to unsettled \nobligations to international organizations stood at UGX.49.49Bn with \nsome dating as far back as financial year 2014/15. \n\uf0b7 \nGoU, through MOFPED, offered additional incentives of USD Cents 5/KWH \nto companies in the Cotton, Textile and Apparels (CTA) industry. During \nthe financial year ended 30th June 2021, a total of UGX.3.36Bn was \npaid/refunded to two manufacturers while UGX.5.41Bn remained \noutstanding as at year end; However, I noted that; \ni) \nthe \nconcession \nwas \nnot \ntime-bound, \nwhich \nexposes \ngovernment to perpetual expenditure without value analysis.", "metadata": {"page": 235, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "government to perpetual expenditure without value analysis. \nii) \nnone of the beneficiaries had furnished the Ministry with the \nrequired insurance bond despite the continued access to the \nbenefit. \niii) \nthere was no evidence of publicizing the concession for the \nbenefit of all eligible firms/persons. In this regard, the \nconcession is only being enjoyed by two firms which creates \ncompetitive disadvantages to the other players in the industry. \niv) \nthere was no mechanism in place to monitor compliance with \nthe set targets despite having reached the first milestone. \nv) \nthe memorandum of understanding signed did not provide for \nreporting obligations for the beneficiaries. There was thus no \njustification for the continued incentive \nvi) \nall refunds effected so far are made from supplementary \nbudgets implying none sustainability of the incentive. Indeed a \ntotal of UGX.5.41Bn remains outstanding as at 30th June 2021.", "metadata": {"page": 235, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nIn line with the above, it is apparent that the subsidy is being \nimplemented with irregularities. Government is exposed to continued \nexpenditure without due regard to achievement of the intended \nobjectives. \n\uf0b7 \nThe Uganda Agriculture Insurance Scheme (UAIS) is a Public Private \nPartnership between GoU and the Private Sector represented by the \nUganda Insurers Association and insurance companies under the agro-\nConsortium. The purpose of the scheme is to hedge Ugandan farmers \nagainst natural calamities beyond their control. However, review of \nimplementation revealed that there was lack of a mutual agreement on \nMarketing of the scheme to the potential beneficiaries and a number of \nconditions in the MoU are not yet fulfilled. This has limited its access to \npotential beneficiaries and also raised transparency concerns in regard to \nhow the current beneficiaries were identified. \n\uf0b7 \nThe PPP Act 2015 provides that there is to be established a Project", "metadata": {"page": 235, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Development Fund to support public private partnerships initiatives. \nHowever, six years later, there is no evidence of operationalization of the \nFund by the Minister. Failure to establish the fund may be a contributory \nfactor to the slow uptake and limited feasibility studies of the Public \nPrivate Partnerships. \n20 \nPPDA Tribunal. \n2020/21 \n \nOpinion \nUnqualified \n \n\uf0b7 \nI noted that the Tribunal was operating a strategic plan that is not \naligned to the NDP III period. The Tribunal\u2019s planning period is 2017-\n2022 implying that activities implemented during the financial year \n2020/2021 may not have been aligned to the NDP-III, which negatively \naffects the achievement of NDP-III objectives.", "metadata": {"page": 235, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "225 \n \n21 \nUganda Investment \nAuthority. \n2020/21 \n \n \nOpinion \nUnqualified \n \n\uf0b7 \nThe Authority received off-budget financing to a tune of UGX.50.43Bn, \nwhich was not transferred to the consolidated fund as required by law. \nThese funds were received directly from development partners to the EPC \ncontractor for the Development of infrastructure at Kampala Industrial \nand Business Park, Namanve. Off-budget financing distorts planning, may \nresult into duplication of activities and is contrary to the Public finance \nManagement Act 2015. \n\uf0b7 \nThe approved budget estimates for the Authority for the financial year \n2020/2021 indicated that only UGX.22Mn out of UGX.2.411Bn was \nbudgeted towards the settlement of domestic arrears. The arrears", "metadata": {"page": 236, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "balance of UGX.2.389Bn was therefore not budgeted for settlement. \nFailure to provide resources for the accumulated arrears increases \noutstanding obligations. \n\uf0b7 \nThe Authority continued to accumulate domestic arrears with a total of \nUGX.1.768Bn incurred in the financial year under review, without clearing \noutstanding arrears from the previous financial year 2019/2020 of \nUGX.2.411Bn. The total accumulated domestic arrears stood at \nUGX.4.18Bn at 30th June 2021. This is an indicator of non adherence \nwith the commitment control system of government. \n\uf0b7 \nDuring inspections countrywide, I observed that the industrial parks lack \nor had inadequate infrastructures like roads, solid waste and sewage \nmanagement systems, power supply, street lights etc. The Parks have \nbeen characterized by encroachment, farming and cattle grazing, \ndegradation of nearby swamps, unallocated land, idle land allocated to", "metadata": {"page": 236, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "unserious investors and misunderstandings between investors and park \nmanagement staff. Most roads are impassable and with inadequate \nlighting which exposes the parks to thefts and insecurity. I observed that \nsome factories in the parks have set up their own infrastructure which \nmay not be sustainable, and to the desired standards. This may \nnegatively affect the usage and utilization of the parks. \n\uf0b7 \nThe Authority lacks regulations required under Section 38(1) of the \nInvestment Code Act to operationalize the statute. This may hinder the \nsmooth implementation of the Act which is meant to create an \ninvestment enabling environment. \n\uf0b7 \nAlthough the Authority has 124 approved positions, only 78 (i.e. 62.9%) \nare filled, leaving 46 (37.1%) vacant positions. Among the vacant \npositions include 24 unfilled positions that are from the core Directorate \nof Investment which is the backbone of UIA. Understaffing undermines \nservice delivery.", "metadata": {"page": 236, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "service delivery. \n22 \nTreasury Operations. \n2020/21 \n \n \nOpinion \nUnqualified \n \n\uf0b7 \nI reviewed the NTR estimates, revenue sources and rates charged at vote \nlevel for the financial year 2020/2021 and noted that the entity had not \nbudgeted to collect NTR during the year under review. \n\uf0b7 \nIt was noted that out of the approved budget of UGX.15.129Tn for the \nvote for the final year ended 30th June 2021, only UGX.14.204Tn was \nreleased, representing 93% of the approved budget. \n\uf0b7 \nOf the UGX.14.204Tn received in the current Financial Year, only \nUGX.11.963Tn was spent by the vote resulting into an unspent balance of \nUGX.2.241Tn representing an absorption level of 84%. \n\uf0b7", "metadata": {"page": 236, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nI noted that the interest accrued on the outstanding debt but not yet paid \namounting to UGX.1.039Tn was not recognised in the financial \nstatements. \n\uf0b7 \nIncluded in the receivables figure is UGX.10.437Bn that was lent by", "metadata": {"page": 236, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "226 \n \ngovernment to private enterprises for which no recovery has been \neffected since 2013. \n\uf0b7 \nIncluded in cash and cash equivalents is UGX.15.62Bn which was a \nUSAID grant for enhancing Livelihoods and Infrastructure of Northern \nUganda under a project. The funds have remained utilized for more than \ntwo years and risk being refunded to the donor yet it was a grant. \n\uf0b7 \nI noted that there is no clear method of identifying which claimants are \nconsidered for negotiations even in the instance of where the said \nclaimants have mandamus orders. \n\uf0b7 \nI have noted that over the years, budgets for mandamus payments are \nincluded in the original budget as notional amounts despite having a \nfigure for outstanding payments at the beginning of the year, including \nthose for which settlement plans have been drawn as per the signed \nMoUs and court variation orders with beneficiaries. \n\uf0b7", "metadata": {"page": 237, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nAudit observed that, UGX.3.32Tn which was advanced by the Bank of \nUganda to settle matured obligations relating to treasury bills and bonds \n(principal and interest) had not been refunded as at 30th June 2021 \ncontrary to the requirements under Section 36 of the PFMA. \n\uf0b7 \nA review of the company files in which the GOU holds shares revealed \nthat some companies were dormant, with no activities being undertaken \non the said files. There was no evidence that the said companies were \nfiling the mandatory annual returns, minutes of the Annual General \nMeetings or any information to indicate the activity of the companies. \n\uf0b7 \nAudit established through a review of records at Uganda Registration \nServices Bureau that Government owns a number of investments that are \nnot reported/ recognised in the financial statements of Treasury \nOperations. \n\uf0b7 \nIt was established that the Minister provided authorisations to nineteen \n(19) Public Institutions to borrow funds from financial institutions totalling", "metadata": {"page": 237, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "to UGX.60.042Bn, but there was no evidence of any monitoring being \nundertaken by the Ministry to ensure adherence to the loan terms and \nconditions. \n23 \nInsurance Regulatory \nAuthority. \n2020/21 \n \nOpinion \nUnqualified \n \n\uf0b7 \nOut of the budgeted NTR of UGX.26.874Bn, only UGX.19.818Bn was \ncollected and a shortfall of UGX.7.056Bn, representing a performance of \n73.7% of the target. Shortfalls in NTR collections affect the \nimplementation of planned activities. \n\uf0b7 \nI noted that a number of planned procurements were not executed worth \nUGX.5.61Bn. Non implementation of all procurements leads to failure to \nattain the intended objectives during the financial year. \n\uf0b7 \nThere were noted delays in the phase one construction of an ultra-", "metadata": {"page": 237, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "modern 11 storeyed office building for Insurance Regulatory Authority \nlocated at plot 6, Lumumba Avenue, which was awarded to a contractor \nat an amended contract price of UGX.32.662Bn. By the time of reporting, \nalthough a total cumulative payment of UGX.29.943Bn (91%) had been \nmade to the contractor, the project was at 80% completion and 46 \nmonths behind schedule. \n24 \nNational Lottery & Gaming \nBoard. \n \nOpinion \nUnqualified \n\uf0b7 \nI noted that a number of Gaming houses had not filed the required \nquarterly returns contrary to the Lotteries and Gaming regulations. There \nwas no evidence that the Board had conducted enforcement activities to \nensure compliance by the operators. \n\uf0b7 \nFailure to undertake enforcement actions poses a risk of the operators", "metadata": {"page": 237, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "227 \n \nnot making returns and having operational gaps going undetected which \naffects the revenue collections of Uganda Revenue Authority and exposes \nthe Ugandan public to risk of unprofessional operators. \n\uf0b7 \nThe Ministry of Finance, Planning and Economic Development on behalf \nof Lotteries and Gaming Regulatory Board awarded a UGX.10.833Bn \ncontract to a foreign company to provide consultancy services for \ndevelopment of a National Central Electronic Monitoring system. The \ncontract period was for 2 (two) years effective 23rd June, 2020. I noted \nthat, two years later, the procurement has not been made. There is no \nprovision for implementation of the system even in the current budget \n2021/22. The failure to procure the system, denies the Board the \nassociated benefits like monitoring and revenue tracking. Beside this may \nresult into litigation on grounds of breach of contract and expose \nGovernment to loss of funds in compensation. \n\uf0b7", "metadata": {"page": 238, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nDuring the year under review, although the Board licensed 17 casinos, \nthere was no evidence that the Board advertised the applications for the \nsaid casinos to invite the views of the public as is required by regulations. \nFailure to publish the notices poses a risk of granting licenses to \noperators with some conflicts among the public and as such may result \ninto litigation. \n25 \nPublic Procurment And \nDisposal of Public (PPDA) \n2020/21 \n \nOpinion \nUnqualified \n\uf0b7 \nI noted at the time of the audit that out of the planned Four (4) strategic \ntargets/goals, No targets had been fully achieved, while three (3) were \npartially achieved, and one (1) target had not been achieved at al \n\uf0b7 \nI noted that out of the budgeted revenue of UGX.28.4Bn for the year", "metadata": {"page": 238, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "2020/21, UGX.21.3Bn was realised representing a performance of only \n75% of the target. \n\uf0b7 \nOut of the 5 outputs assessed, No output was fully implemented; 5 \noutputs representing 100% were partially implemented, while no output \nwas not implemented at all. \n\uf0b7 \nI noted that although the budget for Domestic arrears was \nUGX.42,407,000, funds amounting to UGX.432,579,009 were spent on \ndomestic arrears for the FY 2020/21, implying an over expenditure of \nUGX.390,172,009 on this item. \n\uf0b7 \nOut of the total receipts for the financial year of UGX.18.698Bn, \nUGX.18.59Bn was spent by the Authority, resulting into an unspent \nbalance of UGX.0.108Bn representing an absorption level of 99%. \n\uf0b7", "metadata": {"page": 238, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nThe audit reviewed the performance of the above project and noted that \nmuch as most of the key planned activities had been implemented, there \nwere few that were still pending. \n\uf0b7 \nI observed that the entity has a staff establishment of 140 positions, out \nof which only 116 were filled, leaving 24 positions vacant, representing \n17% of the workforce of the entity. In addition, seven staff exited the \nAuthority during the year, due to various reasons. \n26 \nBank of Uganda. \n2020/21 \n \nOpinion \nUnqualified \n \n\uf0b7 \nNo significant findings. \n27 \nCapital Markets Authority. \n2019/20 \n \nOpinion \n\uf0b7 \nNo significant findings.", "metadata": {"page": 238, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "228 \n \nUnqualified \n \n \n28 \nDeposit Protection Fund \n(\"The Fund\") \n2020/21 \nOpinion \nUnqualified \n \n\uf0b7 \nI noted that although effective 1st July 2020, DPF was exempt from \nwithholding tax, Bank of Uganda erroneously deducted withholding tax \n(WHT) on the Fund\u2019s interest income on matured government securities \nduring the period amounting to UGX.10.4Bn. However, directors have \ndecided to make full provision against the WHT receivable based on the \nhistorical experience and expected future outcome of the claim from URA \non a conservative basis, and this is in accordance with the requirement of \nIAS 36: Impairment of Assets. \n29 \nPride Microfinance Limited \n(MDI) \n2020 \n \nOpinion", "metadata": {"page": 239, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Opinion \nUnqualified \n \n\uf0b7 \nNo significant findings. \n30 \nProject for Financial \nInclusion In Rural Areas \n(PROFIRA) \n \nOpinion \nUnqualified \n \n\uf0b7 \nI noted that, as reported in my report for the year ended 30th June 2020, \nGovernment of Uganda has not yet honored its obligation of UGX.5.6Bn \nas co-funding for the Project. \n\uf0b7 \nI observed that the project has been supporting SACCO\u2019s that were not \nregistered by Uganda Microfinance Regulatory Authority (UMRA). \n31 \nThe Resource Enhancement \nand Accountability \nProgramme \n(REAP) \n2020/21 \n \nOpinion \nUnqualified \n \n\uf0b7 \nNo significant findings. \n32", "metadata": {"page": 239, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "32 \nUganda Development Bank \nLimited (UDBL). \n2020 \n \nOpinion \nUnqualified \n \n\uf0b7 \nNo significant findings. \n33. \nMicrofinance Support Centre \nLimted (MCSC) \n2020 \n \nOpinion \nUnqualified \n \n\uf0b7 \nI noted that unresolved receipts in payables balance amounting to UGX. \nUGX.581 Million \n \nINFORMATION \nCOMMUNICATION SECTOR \n \n1. \nMinistry of ICT and National \nGuidance \n \n \nOpinion \nUnqualified \n \n\uf0b7 \nThe entity budgeted to receive UGX.46.401Bn from Treasury; out of this", "metadata": {"page": 239, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "amount, UGX.43.586 Bn was warranted, resulting into a shortfall of \nUGX.2.81Bn which was 6% of the budget. Of the released amount, the \nMinistry absorbed UGX.42Bn, resulting into an unspent balance of \nUGX.1.6Bn representing an absorption level of 96%. Unspent balances \nimply un implemented activities and which in turn hampers proper service", "metadata": {"page": 239, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "229 \n \n \n \ndelivery. \n\uf0b7 \nContrary to Regulation 18 (1) of the PPDA (Contracts) Regulations, 2014, \nthe Ministry issued call off orders to two firms in three separate \nprocurements of office furniture worth UGX.144.8Mn under a framework \ncontract where the items and prices on the call off orders were different \nfrom what was agreed on in the signed framework contract. This erodes \nthe benefits of framework contracts and may cause a loss to \nGovernment. \n2 \nUganda Communications \nCommission. \n \nOpinion \nUnqualified \n\uf0b7 \nAssessment of the Commission\u2019s performance of Non Tax Revenue (NTR) \nrevealed that out of the budgeted NTR of UGX.156.59Bn, a total of \nUGX.454.61 was collected, representing an increase of UGX.298Bn (190%", "metadata": {"page": 240, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "of the target). Management attributed the overperformance to payment \nof the National Telecom Operator (NTO) license by two telecom \ncompanies which had not been budgeted for. The Accounting Officer was \nadvised to always conduct comprehensive research on all potential \nrevenue sources for proper budgeting of NTR. \n\uf0b7 \nOut of the total receipts for the financial year of UGX.454.61Bn, only \nUGX.451.98Bn was spent by the entity resulting into an unspent balance \nof UGX.2.63Bn representing an absorption level of 99.5%. I commended \nthe Accounting Officer for absorbing most of the funds availed despite the \nchallenges during the year. \n\uf0b7 \nI noted that several procurements to the tune of UGX.4.51Bn were not \nimplemented as of 30th June 2021. As a result, implementation of critical \nCommission programs was delayed. Management attributed the delays in", "metadata": {"page": 240, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "these procurements to the COVID-19 pandemic that paralysed the entire \nprocurement process. \n\uf0b7 \nThe Commission discontinued issuing invoices to Uganda Telecom Ltd, \nPosta Uganda and Uganda Broadcasting Corporation due to tax \nimplications where, the Commission has to pay VAT to URA on every \ninvoice raised, whether funds are received or not. As a result, UCC ledger \nbalances of UGX.85.1Bn differed from the reported receivables of \nUGX.13.1Bn, by a total of UGX.72.0Bn. Furthermore, I noted that the \nreported receivables by UCC from the same entities differed from the \nreported payables to UCC by the same entities. The Accounting Officer \nwas advised to engage management of the affected entities with a view \nof reconciling to the correct receivable figures. \n\uf0b7 \nThe Commission did not charge the 2% gross annual levy on the licensed", "metadata": {"page": 240, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Television and FM radio operators and no licensed Television and FM \nradio operator had submitted Audited financial statements to the \nCommission for assessment. This denied the Commission the revenue to \nimplement development programs. \n\uf0b7 \nThe Commission lacks a Tribunal with the jurisdiction to hear and \ndetermine all matters relating to communications services arising from \ndecisions made by the Commission or the Minister, contrary to Section \n60(1 & 2) and 64(1) of the Uganda Communications Act, 2013. The \naccounting officer explained that the responsibility to appoint the tribunal \nresides with the President on the recommendation of the Judicial Service \nCommission. I advised management and the Board of Directors to liaise \nwith the relevant authorities with the view of constituting the \nCommunications Tribunal. \n3 \nRural \nCommunications \nInfrastructure Program, \nPhase 5 \u2013 Uganda Project, \nIDA LOAN NO.5635-UG \n\uf0b7 \nI noted that MDAs and LGs are still experiencing challenges in \nimplementing the budgets approved by parliament and policy guidance\u2019s \nissued by PS/ST, which has continued to affect the performance and", "metadata": {"page": 240, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "230 \n \n2020/21 \n \nOpinion \nUnqualified \ncredibility of the budget negatively. \n\uf0b7 \nI noted that RCIP was lagging behind in some activities that would not be \ncompleted at the project end. \n\uf0b7 \nI noted that all four components did not fully absorb the available funds. \nOut of the UGX.104.88Bn that was released to RCIP, the Project only \nutilised UGX.76.52Bn, thus failing to absorb funds to a tune of \nUGX.28.36Bn representing 27% of the released funds. \n\uf0b7 \nIt was noted that RCIP set clear performance targets and indicators for \nsome activities to facilitate performance measurement. \n\uf0b7 \nI noted that a total of USD.702,415 has so far been paid to the contractor \nfor supply, installation and commissioning of the e-government", "metadata": {"page": 241, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "procurement system, of which a total of USD.198,645 was paid during \nthe year under audit. \n\uf0b7 \nGovernment lost USD.208,156 for receiving quality assurance services for \na system that had already been discontinued by Government \n4 \nNational Information \nTechnology Authority \u2013 \nUganda (NITA-U) \n2020/21 \n \nOpinion \nUnqualified \n\uf0b7 \nAnalysis of domestic arrears over the past three years has shown a steep \nupward trend over the period with a 123% growth. The outstanding \namount currently is UGX.6Bn. Further analysis revealed that most of the \narrears relate to costs of expanding the national backbone infrastructure. \nThe domestic arrears at hand now account for 14% of the annual GoU \nbudget of the Authority. Such a trend is not only unsustainable but may \nlead to erosion of the credit worthiness of the Authority and may attract", "metadata": {"page": 241, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "interest and penalties. \n\uf0b7 \nIncluded in the Statement of Financial Position is a receivable of \nUGX.14.9Bn arising from the 1% levy on Telecoms due from Uganda \nCommunications Commission (UCC) dating as far back as financial year \n2016/17, whose recoverability is doubtful following a policy directive from \nthe Ministry of Information, Communication and National Guidance to the \neffect that NITA-U should stop recognizing its share of 1% levy on \nTelecoms. \n\uf0b7 \nUGX.1,532,979,432 reflected as non-produced assets in the Statement of \nFinancial Position relates to land leased to NITA-U by Uganda Investment \nAuthority. The same land has been leased to a private company without \nthe knowledge of NITA-U. Although NITA-U filed a case against UIA in \nthe High Court seeking a permanent injunction restraining UIA, the case \nwas dismissed noting that the matter could only be determined under", "metadata": {"page": 241, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "land law. By the time of audit, a developer to whom UIA leased the \nproperty had taken possession of the land and started undertaking \ndevelopments on it. \n5 \nUganda Broadcasting \nCorporation (UBC). \n2020/21 \n \n \nOpinion \nUnqualified \n\uf0b7 \nAlthough the entity budgeted to receive UGX.45.83Bn only UGX.15.39Bn \nwas collected and spent, resulting into a shortfall of UGX.30.43Bn which \nis 66.4% of the budget. The budget for the financial year 2020/2021 was \ndeveloped on the assumption that UBC would receive the UGX.34.6 Billion \napproved by Parliament; however, the Corporation did not receive the \nfunds as planned. This is an indication of unrealistic budgeting by the \nCorporation well aware of the effects of the Covid-19 pandemic \n\uf0b7", "metadata": {"page": 241, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nComparison of the trade receivables balances for current year and prior \nyear indicates that the receivables decreased by 28% from UGX.30.79Bn \nto UGX.22Bn. An ageing analysis revealed that receivables worth \nUGX.13.549Bn from 228 clients were at least 7 years old without any \nmovements in their ledger accounts, thus casting doubt as to their \nexistence and recoverability.", "metadata": {"page": 241, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "231 \n \n\uf0b7 \nThe Corporation has outstanding NSSF amounting to UGX.46.38Bn as at \n30th June 2021. As a result, the Corporation and the Managing Director \nhave been sued for non-payment and imposition of interest and fines by \nthe NSSF due to non-remittance is now likely. This is wasteful as it could \nhave been avoided if remittances had been made in a timely manner. \n6 \nUganda Post Limited. \n2020/21 \n \nOpinion \nUnqualified \n \n \n\uf0b7 \nI noted that despite this being the final year of the Strategic plan and \ncollecting on average, over 86% of the budget, most objectives were not \nachieved, with some attaining between 21% and 39% of implementation. \nThe key strategic objectives that were not met include Building a strong \nfinancial base to meet operational and project development budget,", "metadata": {"page": 242, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Attracting, deploying, developing and retaining a productive and \nmotivated Human Resource, Strengthening the ICT unit to raise efficiency \nand competitiveness of UPL products and Rationalizing existing business \nlines and diversifying into low hanging opportunities to improve \nprofitability. \n\uf0b7 \nThe company faces a liquidity crisis which was evidenced by delayed \npayment of staff salaries for over five months amounting to UGX.1.1Bn, \nnon-payment of statutory obligations amounting to UGX.8.36Bn and \nfailure to complete planned procurements. Management has initiated \nengagements with Statutory Bodies to settle the liabilities. . \n\uf0b7 \nThe company has a total of 11 disputed prime Properties with Uganda \nTelecom \nLimited \nin \nAdministration \nand \nUganda \nInstitute \nof \nCommunication and Technology. Engagements are underway to resolve \nthe impasse. \n\uf0b7", "metadata": {"page": 242, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "the impasse. \n\uf0b7 \nThe company still lacks land titles for several pieces of land which include \nland in Mpigi, Tororo, Fort Portal, Kasese and Palisa. Management is \nexpeditiously following up the matter. \n\uf0b7 \nAlthough UPL procured the E-Posta System to record all transactions \nrelating to postal services, some services like Home Delivery Services, \nPost Shop Sales, and Outbound Parcels are still recorded manualy. In \naddition, there is no interface between Transaction Processing Systems \nand the Sage financial management system. Manual recording of \ntransactions is prone to abuse and errors \n7 \nUganda \nCommunication \nEmployees \nContributory \nPension Scheme (UCECPS) \n2020/21 \n \nOpinion \nQualified \n \n\uf0b7", "metadata": {"page": 242, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nI noted unsurpported payables amounting to UGX.2,679,752,000. \n\uf0b7 \nI noted that eleven (11) properties disclosed as part of the non-core \nassets were not valued and therefore not included in the value of Non-\ncurrent assets of the Scheme. \n\uf0b7 \nA review and comparison made between the audited financial statements \nfor the period ending 30th June, 2019 and the financial statements for \nthe period ending 30th June, 2020 revealed inconsistencies in the \naccount balances of reserves. \n\uf0b7 \nUnsupported and un-reconciled receivables from Uganda Telecom \nLimiteD (UTL - IN ADMINISTRATION) \n\uf0b7 \nI noted that the cash flow statement was misstated. \n\uf0b7 \nI noted that out of the budgeted revenue of UGX.12,447,003,444 for the", "metadata": {"page": 242, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "year 2019/2020, only UGX.2,264,969,444 was realised representing a \nperformance of only 18.2% of the target which implied that the Scheme \nhad a deficit of 81.8%. \n\uf0b7 \nI noted unbudgeted expenditure totaling to UGX.88,575,000 \n\uf0b7 \nI noted diversion of members\u2019 contribution (dc) to pay Defined Benefits", "metadata": {"page": 242, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "232 \n \n(DB) liabilities amounting to UGX.4,550,343,000 \n\uf0b7 \n \n8 \nAgricultural Credit Facility \n(ACF) \n2020/21 \n \nOpinion \nUnqualiified \n \n\uf0b7 \nNo significant findings. \n \nTRADE SECTOR \n\uf0b7 \n \n1 \nQuality Infrastructure and \nStandards \nProgramme \n(QUISP). \n2017/2018 \n \nOpinion \nQualified \n \n \n\uf0b7 \nI observed that a sum of UGX. 80,034,014 and USD. 14,040 was paid to \nvarious officers and companies. However, contrary to the guidelines, the \nexpenditure vouchers together with the supporting documents were not", "metadata": {"page": 243, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "availed for audit verification. \n\uf0b7 \nPayments amounting to UGX.28,798,048 were paid to officers to enable \nthem carryout various QUISP activities. However, some of the \nexpenditure lacked necessary supporting documents such as activity \nreports, payee\u2019s acknowledgment and accountability receipts. \n\uf0b7 \nThe programme had outstanding commitments to the tune of UGX. \n373,603,894 as at end of the financial year. According to a letter from \nthe Embassy of Sweden to the Permanent Secretary Ministry of Trade, \nIndustry and Cooperatives dated 27th April, 2017 activities to a tune of \nUGX. 147,264,493 were authorized to be charged on the QUISP \nProgramme. The entity spent a sum of UGX. 147,468,378 leaving \noutstanding commitments of UGX. 226,135,516 as indicated in the \nschedule of outstanding commitments. \n\uf0b7", "metadata": {"page": 243, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nI reviewed the Programme bank statements and noted that as at 31st \nMarch 2021, UGX. 10,426,029 and USD. 1,973.43 was still on account. \nFailure to spend funds resulted in partial and non-implementation of \nplanned activities. \n\uf0b7 \nI observed that a sum of UGX. 4,038,651 was deducted from two (2) \nservice providers in respect of 6% withholding tax for onward remittance \nto Uganda Revenue Authority \n\uf0b7 \nThe project procured 79 assets over the Programme life time. In March \n2021, I carried out an inspection of the assets procured under the \nProgramme and noted that 12 were functional, 2 (vehicles) were under \nrepair, 16 were old and beyond repair, 12 were non-functional while 37 \nwere not availed for verification. I could not assess the status of the 37 \nassets that were not availed. \n2 \nUganda Export Promotions", "metadata": {"page": 243, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "2 \nUganda Export Promotions \nBoard \n2020/21 \n \n \nOpinion \nUnqualified \n\uf0b7 \nThe entity budgeted to receive UGX.5.813Bn. However, UGX.3.759Bn was \nwarranted, resulting into a shortfall of UGX.2.054Bn, which is 35.4% of \nthe budget. This affected implementation of planned activities. \n\uf0b7 \nIt was observed that the term of office for the previous Board expired on \n5th October 2019, and no replacement Board had been appointed by the \ntime of issuance of my report. This is likely to affect the strategic \ndirection of the entity. For example, I noted that at the time of the audit \n(June 2021), the entity\u2019s strategic plan was in draft form and was not \napproved due to the lack of a Board. \n\uf0b7 \n\uf0b7 \nI noted that contracts worth UGX.192Mn were awarded to bidders who", "metadata": {"page": 243, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "233 \n \ndid not submit the required documents to evidence the eligibility and \nadministrative compliance as required by regulations and bid documents \nat the preliminary stage. \n3 \nUganda Freezones Authority \n(UFZA) \n2020/21 \n \nOpinion \nUnqualified \n\uf0b7 \nContrary to Section 15 of the Public Finance Management Act 2015, the \nAuthority overspent to the tune of UGX.635Mn on recruitment and \npersonnel costs in excess of what was approved by the Board. \n\uf0b7 \nThe entity budgeted to collect NTR amounting to UGX.2.101Bn but was \nonly able to collect UGX.0.06Bn resulting into a shortfall of UGX.2.04Bn, \nwhich is 97.13% of the NTR budget. The paltry performance was \nattributed to COVID19 disruptions. \n\uf0b7", "metadata": {"page": 244, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nThe development work on 5 acres of land at Entebbe International Airport \ncommenced in September 2020 and works worth UGX.4.146Bn (27%) \nhad been certified as completed as at 30th June 2021. However, the \nAuthority had affected 89% advance payment to NEC as at 29th June \n2021, amounting to UGX.15.34Bn and all the advance guarantees staked \nhad expired. \n\uf0b7 \nAlthough the Authority has taken possession of 109 acres of land at \nBuwaya purchased at UGX.7.6Bn and 5 acres of land at Entebbe \nInternational Airport purchased at UGX.850Mn, it still lacks land titles to \nconfirm legal ownership. \n4 \nUganda Warehouse Receipt \nSystem Authority (UWRSA) \n2020/21 \n \nOpinion \nUnqualified \n\uf0b7 \nThe Uganda Warehouse Receipt System Authority had an approved", "metadata": {"page": 244, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "budget of UGX.8,904,499,400 for the year. A review of the entity\u2019s \nreceipts, cashbook and bank statement for the period ending 30th June \n2021 revealed that UGX.8,035,212,980 was received under the normal \nbudget appropriation \n\uf0b7 \nWhereas the overall Government National Development Plan (NDP II1) \n2020/2021-2024/2025 was commissioned in the year under review, \nUWRSA had no approved strategic plan for the period under review \n\uf0b7 \nI noted that the entity did not budget for any tax revenue despite \ncollecting 84 million. Failure to budget for NTR conceals the entity\u2019s \npotential collect revenue and also complicates assessment of performance \nsince there is no benchmark. \n\uf0b7 \nI noted that out of the budgeted revenue of UGX. 8.899Bn from the \nCentral Government for 2020/2021, and only UGX. 8.035Bn was received,", "metadata": {"page": 244, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "representing a performance of only 90 % of the release. \n\uf0b7 \nThe entity had a cash balance brought forward of UGX.134,172,095 from \nFY 2019/2020 and received UGX.8,035,212,980 making total cash \navailable for spending in FY 20/21 of UGX.8,169,385,075. Out of the total \ncash available to spend, only UGX.3,730,897,866 was actually spent by \nthe entity, representing an absorption level of 46%. This resulted into a \nbalance of UGX.4,438,487,209 (54%) as unspent funds. \n\uf0b7 \nI compared the consolidated procurement plan, monthly procurement \nreports and procurement files availed and established that a number of \nprocurements worth UGX.2,621,000,000 were not completed as of 30th \nJune 2021. \n\uf0b7 \nFailure to implement planned activities despite availability of funds.", "metadata": {"page": 244, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nI noted that the Board sat only once during the year under review on \n16th September 2020. I also noted that the Chairperson of the meeting \ndid not sign the minutes for the meeting. \n\uf0b7 \nI noted that the Board had not developed some governance policies, \nmanuals and other documents that would help in the smooth running of", "metadata": {"page": 244, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "234 \n \nthe Authority. \n\uf0b7 \nThe Authority received from the Treasury UGX.13,237,853,910 for the \nlast three financial years to deliver its mandate; however, no tangible \nresults are indicating that it is effective. \n\uf0b7 \nI \nestablished \nthat \nprocurements \nworth \nUGX.62,390,000 \nwere \nimplemented during the year, and yet they were not in the Authority\u2019s \nconsolidated procurement plan. \n5 \nCompetitiveness \nand \nEnterprise \nDevelopment \nProject (CEDP) Component \n2-5 IDA Credit Agreement \nCR 52690-UG PROJECT ID \nP130471. \n2020/21 \n \nOpinion \nUnqualified \n\uf0b7", "metadata": {"page": 245, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Unqualified \n\uf0b7 \nCompetitiveness Enterprise Development Project (CEDP) approved \nbudget for the Financial Year 2020/2021 was UGX.24.18Bn Comprising: \nUGX.23.5Bn \nIDA \nfunding \nand \nUGX.742.3Mn \nGoU \ncontributions. \nExpenditure was UGX.17.4Bn, yielding a 72% budget performance. \n\uf0b7 \nThe facility's construction certified completed civil works was at 95% on \n28th November 2021, and that out of the contract amount of \nUGX.46,168,410,564, a total of UGX.38,463,565,811 (83.3%) has been \npaid so far. \n\uf0b7 \nThe construction of the Building works at UHTTI was expected to be \ncompleted by 25th April 2019, and several extensions were entered into", "metadata": {"page": 245, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "up to 30th June 2021. By the time of my field inspection, construction \nwas still ongoing. \n6 \nGreat \nLakes \nTrade \nFacilitation Project (GLTFP). \n2020/21 \n \nOpinion \nUnqualified \n\uf0b7 \nI noted that the project management had failed to achieve its objectives \nby the initial project closure date of 31st December 2020. \n\uf0b7 \nAs at 30th June 2021, a total of UGX.6.862Bn representing 62% was \navailable for spending as indicated in the Statement of Financial \nperformance leaving a budget deficit of UGX.4.106Bn representing 38%. \n\uf0b7 \nAudit noted that out of UGX.6.862Bn total funds available for use during \nthe year, the project managed to utilize UGX.4.423Bn in the \nimplementation of various project activities, leaving an unspent balance", "metadata": {"page": 245, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "of UGX.2.439Bn (25% of the available funding). \n7 \nMinistry of Trade, Industry \nand Cooperatives \n2020/21 \n \nOpinion \nUnqualified \n\uf0b7 \nI reviewed the approved revenue estimates for the financial year \n2020/2021 and noted that the Ministry budgeted to receive Revenue of \nUGX.233.147Bn during the year under review. The entity received \nUGX.230.417Bn as releases from the consolidated fund representing the \noverall performance of 98%. \n\uf0b7 \nThe Ministry budgeted to collect UGX.0.072Bn but realised UGX.0.053Bn, \nhence a shortfall of UGX.0.019Bn representing 25.4% of the budget. \n\uf0b7 \nOut of UGX.230.417Bn released for various activities, UGX.229.123Bn was", "metadata": {"page": 245, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "spent by the entity resulting into an unspent balance of UGX.1.294Bn \nrepresenting an absorption level of 99%. \n\uf0b7 \nAnalysis of the vote performance revealed that a number of programs \nremained outstanding at the year-end, leaving a total unspent balance of \nUGX.2.0726Bn. \n\uf0b7 \nThe entity charged different expenditure codes for several expenditure \nitems from those stipulated in the chart of accounts. This resulted in \nmischarging of expenditures worth UGX.81,083,608. \n\uf0b7 \nAnalysis of domestic arrears over the past three years has shown an \nupward trend in arrears from UGX.10.4Bn in 2018/19 to UGX.19.4Bn in \n2020/21. \n\uf0b7 \nI observed that the Ministry had not paid verified domestic arrears worth", "metadata": {"page": 245, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "235 \n \nUGX.16.743Bn. \n\uf0b7 \nI noted that the Ministry accrued domestic arrears worth UGX.242Mn \nduring the financial year. \n\uf0b7 \nI noted that a total of UGX.159,543,267 paid to service providers and \nadvances to various staff was not adequately supported with \naccountabilities and supporting documents such as requisitions, receipts, \nactivity reports, minutes of meetings. \n\uf0b7 \nPayments amounting to UGX.73Mn were advanced to personal accounts \nof staff to make onward payments to suppliers for services like office \ninternet, hotels, workshop related expenditure, among others. \n\uf0b7 \nI noted that as of 30th June 2021, several compensations claim worth \nUGX.165Bn by some Cooperative Societies had not been verified. There \nwas also no evidence that verification teams had been constituted to \nundertake the verification exercise.", "metadata": {"page": 246, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "undertake the verification exercise. \n\uf0b7 \nExamination of records revealed that for some Cooperatives, the amounts \nto be paid as compensation for war losses were in excess of the amounts \noriginally claimed by the Cooperatives. \n\uf0b7 \nI noted that payments amounting to UGX.14Bn were made to persons \nand law firms other than the beneficiary Cooperative Societies. \n\uf0b7 \nreview of the procurement processes revealed that, for eight (8) \nprocurements valued at UGX.282,626,237, the estimated market prices \napproved by the Accounting Officer on Form 5, were the same as those \nquoted by the best-evaluated bidder and subsequently awarded. I \nobserved that the evaluation committee and Contracts committees did \nnot detect the questionable coincidence. \n\uf0b7 \nThe ministry acquired a lease on an already existing lease for land and \nsubsequent loss of funds. \n8 \nUganda National Bureau of \nStandards. \n2020/21", "metadata": {"page": 246, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "2020/21 \n \nOpinion \nUnqualified \n\uf0b7 \nThe Beareau was unable to activate the use of the Digital Tracking \nSystem (DTS) to enforce conformity to standards of selected items and \nclaim the associated fees due to absence of an enabling regulation to \noperationalise the Service. As a result, the Buereau was unable to claim \nfor a total of UGX.13Bn charged on goods and services for conformity \nstamps issued by the provider towards conformity enforcement. There is \na risk of misuse of the amounts involced by the private provider. \n\uf0b7 \nThe Bureau released 366 consignments without testing due to lack of \ncapacity and another 633 consignments released due to the absence of \nstandards to test these commodities for conformity. Lack of capacity may \nlead to the release of sub-standard products to the market. \n\uf0b7 \nI noted that out of the approved staff structure of 666 positions, the", "metadata": {"page": 246, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Bureau had only filled 439, leaving a staffing gap of 227 (34 %). As a \nresult, there was staff presence at only 27 out of the 170 border entry \npoints. There is a risk of sub-standard goods entering the country \nthrough border points where the Bureau staffs are not present. \n\uf0b7 \nIt was noted that procurements to the tune of UGX.2.735Bn were not \ncompleted as of 30th June 2021. This was attributed to several reasons, \nincluding failure to attract competitive bidders for some procruements, \ndelayed submission of clear specifications, especially for specialised \nequipment, late submissions/ initiations of procurement requisitions by \nthe users, as well as delayed deliveries due to COVID-19 especially for \nspecialised Equipment. Un implemented activities imply that the provision \nof critical government programs and associated services were delayed.", "metadata": {"page": 246, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "236 \n \n9 \nUganda \nDevelopment \nCorporation (UDC). \n2020/21 \n \nOpinion \nUnqualified \n\uf0b7 \nOut of the total funds received of UGX.137.27Bn only UGX.63.39Bn was \nspent by the entity during the year, resulting into an unspent balance of \nUGX.73.88Bn representing an absorption level of only 46%. I noted that \nout of the 17 development project activities planned to be implemented \nduring the period under review, only (3) three development projects were \nfully implemented, while Five (5) development projects were partially \nimplemented, Eleven (11) projects were not implemented at all. Failure to \nfully absorb funds by the Corporation, leads to non-achievement of \ndevelopment objectives. \n\uf0b7 \nThe UDC Act 2016 requires capitalisation of UDC to the tune of", "metadata": {"page": 247, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "UGX.500Bn. The same Act also established an Industrial and Economic \nDevelopment Fund which was to be run by the UDC. However, 5 years \nlater, the company has never been capitalised to that tune; currently the \ncapitalisation grants have accumulated to UGX.311Bn and the Industrial \nand Economic Development Fund has never been operationalized. The \ncurrent funding model, is such that capitalisation grants over the years \ncome assigned to specific projects which nullifies the investment appraisal \nprocess of UDC. This has the disadvantage of earmarking funds for \ninvestments that are not ready or even viable leading to the low \nabsorption noted above. \n\uf0b7 \nAn amount of UGX.30.46Bn was invested in various companies by UDC \nduring the year without valuation. Shareholding in these companies had \nnot been secured by the time of reporting. There is a risk of loss of value. \n\uf0b7 \nAlthough the UDC Act 2016 provides that the Corporation will take over", "metadata": {"page": 247, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "the interest of government in seven entities specified in schedule 2 and to \nmanage, promote and facilitate the interest of the government in those \nentities, 5 years later, this had not been done except for Nile Hotel \nLimited. The other entities include: Amber House Limited, Embassy \nHouse, Development House, Munyonyo Commonwealth Resort, Phoenix \nLogistics and Tri-Star Apparels Limited. There is a risk of loss of strategic \ndirection and government may not be aware whether the national \nobjectives of import substitution, employment and industrialization are \nbeing met by these entities. \n10 \nUganda \nInvestment \nAuthority. \n2020/21 \n \nOpinion \nUnqualified \n\uf0b7 \nThe Authority received off-budget financing to a tune of UGX.50.43Bn, \nwhich was not transferred to the consolidated fund as required by law. \nThese funds were received directly from development partners to the EPC", "metadata": {"page": 247, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "contractor for the Development of infrastructure at Kampala Industrial \nand Business Park, Namanve. Off-budget financing distorts planning, may \nresult into duplication of activities and is contrary to the Public finance \nManagement Act 2015. \n\uf0b7 \nThe approved budget estimates for the Authority for the financial year \n2020/2021 indicated that only UGX.22Mn out of UGX.2.411Bn was \nbudgeted towards the settlement of domestic arrears. The arrears \nbalance of UGX.2.389Bn was therefore not budgeted for settlement. \nFailure to provide resources for the accumulated arrears increases \noutstanding obligations. \n\uf0b7 \nThe Authority continued to accumulate domestic arrears with a total of \nUGX.1.768Bn incurred in the financial year under review, without clearing \noutstanding arrears from the previous financial year 2019/2020 of \nUGX.2.411Bn. The total accumulated domestic arrears stood at", "metadata": {"page": 247, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "UGX.4.18Bn at 30th June 2021. This is an indicator of non adherence \nwith the commitment control system of government. \n\uf0b7 \nDuring inspections countrywide, I observed that the industrial parks lack \nor had inadequate infrastructures like roads, solid waste and sewage", "metadata": {"page": 247, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "237 \n \nmanagement systems, power supply, street lights etc. The Parks have \nbeen characterized by encroachment, farming and cattle grazing, \ndegradation of nearby swamps, unallocated land, idle land allocated to \nunserious investors and misunderstandings between investors and park \nmanagement staff. Most roads are impassable and with inadequate \nlighting which exposes the parks to thefts and insecurity. I observed that \nsome factories in the parks have set up their own infrastructure which \nmay not be sustainable, and to the desired standards. This may \nnegatively affect the usage and utilization of the parks. \n\uf0b7 \nThe Authority lacks regulations required under Section 38(1) of the \nInvestment Code Act to operationalize the statute. This may hinder the \nsmooth implementation of the Act which is meant to create an \ninvestment enabling environment. \n\uf0b7 \nAlthough the Authority has 124 approved positions, only 78 (i.e. 62.9%)", "metadata": {"page": 248, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "are filled, leaving 46 (37.1%) vacant positions. Among the vacant \npositions include 24 unfilled positions that are from the core Directorate \nof Investment which is the backbone of UIA. Understaffing undermines \nservice delivery. \n \nTOURISM SECTOR \n\uf0b7 \n \n1 \nUganda Hotel and Tourism \nTraining Institute (UHTII) \n2020/21 \n \nOpinion \nUnqualified \n\uf0b7 \nManagement failed to collect tuition fees and accumulated receivables to \nthe tune of UGX.460Mn by close of the financial year, with some debts \ndating as far back as 2014. I observed that some students who had not \ncleared fees had completed their studies, graduated and even obtained \ntheir certificates rendering such receivables uncollectible. \n\uf0b7 \nI noted that the entity had prepared a new strategic plan, but had no", "metadata": {"page": 248, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "proof of certification and approval of its plan by NPA. Management \nexplained that the exercise was interrupted by Covid-19 Lock down and \nclosure of schools. \n\uf0b7 \nOut of 175 approved posts for the Institute, only 127 were filled, resulting \ninto a staffing gap of forty-eight (48) positions. Furthermore, seven (7) \npositions were filled by staff in an acting capacity including the Position of \nthe Principal. Staffing gaps limit the Institute\u2019s ability to effectively deliver \nthe intended services. \n2 \nUganda Hotel and Tourism \nTraining Institute. \n2019/20 \n \nOpinion \nUnqualified \n\uf0b7 \nI noted that the budget is not aligned to the specific outputs and \ntherefore, I could not analyze the outputs achieved and planned in line \nwith the approved budget. \n\uf0b7 \nI noted that at the time of the audit (June 2020), out of the planned", "metadata": {"page": 248, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "eight (8) strategic targets/goals, one (1) target had been fully achieved, \nsix (6) were partially achieved while one (1) target was not achieved at \nall. \n\uf0b7 \nThe entity budgeted to collect NTR of UGX.2,064,355,474 during the year \nunder review but only UGX.1,146,143,225 was collected. \n\uf0b7 \nOut of the total receipts for the financial year of UGX.5.296 billion, \nUGX.4.774Bn was spent. \n\uf0b7 \nI noted that the entity had outstanding receivables totalling to \nUGX.181,480,747 \n\uf0b7 \nFailure to Develop Performance Agreements/targets for Senior Managers. \n\uf0b7 \nThe Institute procured assorted items valued at UGX.36,097,220, \nhowever, I was not provided with stores documentation such as Ledgers,", "metadata": {"page": 248, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "238 \n \nStock cards and Goods Received Notes. \n3 \nUganda Wildlife Education \nConservation Centre \n(UWEC). \n2019/20 \n \nOpinion \nUnqualified \n\uf0b7 \nOut of the 29 quantified outputs/activities assessed, 20 outputs/activities \nrepresenting \n69% \nwere \nfully \nimplemented; \n4 \noutputs/activities \nrepresenting 14% were partially implemented while 5 outputs/activities \nrepresenting 17% were not implemented at all. \n\uf0b7 \nI noted that out of the budgeted NTR of UGX.5,360,000,000; only \nUGX.3,737,222,734 was collected representing performance of only 70% \nof the target. \n\uf0b7 \nI noted that the construction of the floating restaurant stalled. To date,", "metadata": {"page": 249, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "the project is still at the first-floor stage and has since not been opened \nto the public. \n\uf0b7 \nA review of UWEC records revealed that UGX.6.6million was spent for \nresurveying the land on which the Centre is located. However, by the \ntime of audit, the title had not been transferred to the Centre\u2019s names. \n4 \nUganda Wildlife Research \nand Training Institute \n(UWRTI). \n2019/20 \n \nOpinion \nUnqualified \n\uf0b7 \nI observed that out of the budgeted NTR of UGX.435,000,000, only \nUGX.328,287,026 was collected representing a performance of 75% of \nthe target. \n\uf0b7 \nI noted that although the entity received more funds than were budgeted \nsome of the activities remained either partially or not implemented at all. \n\uf0b7", "metadata": {"page": 249, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nI observed that UGX.52,224,850 was paid directly to staff accounts to \nprocure particular items or pay other staff members yet the funds in \nquestion, could have been paid directly to the intended final beneficiaries. \n\uf0b7 \nA review of the staffing structures for the UWRTI revealed that, out of \nthe total approved structure of 46 staff, only 23 (50%) positions were \nfilled while 23 (50%) positions had not yet been filled. \n\uf0b7 \nI noted that several direct procurements amounting to UGX.122,943,179 \nwere made by the entity without justification for use of the direct \nprocurement method. \n\uf0b7 \nI observed that the Governing Council is not fully constituted, since a \nrepresentative of the Academic Board has not been nominated. \n5 \nThe Handicraft and \nSouvenir Development \nProject (HSDP) in Uganda \nfor the year ended 31st Dec", "metadata": {"page": 249, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "for the year ended 31st Dec \n2020. \n \nOpinion \nUnqualified \n\uf0b7 \nI noted that cumulatively a total of USD.940,460.00 had been disbursed \nto the Project by 31st \nDecember \n2020, \nout \nof \nwhich \nUSD.430,916.94 had been utilized, leaving a closing balance of \nUSD.509,543.06 as at 31st December 2020. \n\uf0b7 \nIt was also noted that no activity had been fully implemented/completed \nas of the time of this audit as they all remained either partially achieved \nor not achieved at all. \n6 \nNile Hotel \n2020/21 \n \nOpinion \nUnqualified \n\uf0b7 \nI noted that out of the budgeted revenue of UGX.2.041Bn from", "metadata": {"page": 249, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Concession fees and Investment income from fixed deposits, only \nUGX.1.191Bn was received, representing a performance of only 58% of \nthe target. Failure to realise all budgeted revenue affects the \nimplementation of planned activities. This was attributed to the effects of \nthe COVID19 pandemic on the Tourism sector. \n \n\uf0b7 \nI noted that the entity is not in possession and is not aware of the exact \nwhereabouts of the land title to the land on which Serena Hotel Kampala, \nis seated. The land is located on Plot 16-20 Nile avenue measuring 19.3 \nacres. The land is listed as part of the assets in the concession agreement", "metadata": {"page": 249, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "239 \n \nthat was signed between the Government of Uganda and TPS Uganda \nLimited and was leased by ULC and Nile Hotel International Ltd (NHIL) in \n1995. \n7 \nUganda Wildlife Authority. \n2020/21 \n \n \nOpinion \nUnqualified \n\uf0b7 \nThis being the first year of implementation of the NDP-III, the entity was \nexpected to prepare a strategic plan aligned to NDP III and ensure that \nthe plan was approved. \n\uf0b7 \nI reviewed the NTR estimates, revenue sources and rates charged at vote \nlevel for the financial year 2020/2021 and noted that the entity budgeted \nto collect NTR of UGX.82.Bn (Exclusive of UGX.30Bn prior-year surplus \napproved for re-investment during the year under review). \n\uf0b7", "metadata": {"page": 250, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nThe entity budgeted to receive UGX.6.24Bn from donors, however, \nUGX.5.74Bn was realized, resulting into a shortfall of UGX.501Mn (8%) of \nthe budget. \n\uf0b7 \nThe entity budgeted to receive UGX.0.72Bn, out of which UGX.0.762Bn \nwas received, resulting into an excess receipt of UGX.0.042Bn, \nrepresenting 5.8% of the budget \n\uf0b7 \nI noted that Management re-assessed its revenue performance and \nrequested the Board to approve a contingency plan to limit the \nexpenditure of the Authority to only UGX.72.595Bn in line with the \nreduced revenue collections to finance only priority activities in the \noriginal approved budget of UGX.119.469Bn for FY 2020-2021. \n\uf0b7 \nI noted that the Authority prepared and submitted all the quarterly", "metadata": {"page": 250, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "reports to the line ministry. However, there were delays in submission of \nQ1, Q2 & Q4 performance reports due to the effect of the covid-19 \npandemic. \n\uf0b7 \nI noted decreasing Tourism Revenues due to Covid-19 Effect. \n\uf0b7 \nIt was observed that the Authority has a total outstanding receivables \nbalance of UGX.3.303Bn in the statement of financial position, of which \nUGX.2.244Bn are unpaid overdue fees from concessionaires that have \nbeen outstanding for more than a year. \n\uf0b7 \nIt was noted that the entity has outstanding payables of UGX.71.655Bn in \nthe statement of financial position of which UGX.8.422Bn are accrued \nstaff gratuity that becomes due at the end of each staff\u2019s four year \ncontract. \n\uf0b7", "metadata": {"page": 250, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "contract. \n\uf0b7 \nUWA had only disbursed UGX.642,455,690 in respect of revenue sharing \nfor the surrounding communities in Lake Mburo National Park, leaving a \nbalance of UGX.9,697,730,137 un-disbursed. \n\uf0b7 \nThe Accountabilities of the disbursed grants have not yet been availed by \nthe beneficiary communities through to the district local governments by \nthe time of audit on 3rd November 2021. \n\uf0b7 \nI noted that whereas the Human Resource unit is critical in managing \nstaff-related affairs, it is only situated at the headquarters and comprises \nfive (5) staff. \n\uf0b7 \nNon-integration of gorilla booking system to the accounting system. \n\uf0b7 \nIt was noted that most of the Protected Areas in Uganda are currently \nundergoing ecosystem changes as rangeland infestation by invasive and \nexotic plant species. \n8", "metadata": {"page": 250, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "8 \nWildlife Research and \nTraining Institute \n2020/21 \n\uf0b7 \nI reviewed the NTR estimates, revenue sources and rates charged at vote \nlevel for the financial year 2020/2021 and noted that the entity budgeted \nto collect NTR of UGX.0.495Bn during the year under review. Out of this,", "metadata": {"page": 250, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "240 \n \n \nOpinion \nUnqualified \nonly UGX.0.200Bn was collected, representing a performance of 40.6% of \nthe target. \n\uf0b7 \nThe entity budgeted to receive UGX.3.931Bn during the period, out of \nwhich UGX.2.531Bn was warranted, resulting into a shortfall of \nUGX.1.4Bn, which is 36% of the budget. \n\uf0b7 \nA review of the staffing structure for UWRTI revealed that out of the total \napproved structure of 47 staff, only 23 (49%) positions were filled and 24 \npositions (51%) had not yet been filled. \n\uf0b7 \nA review of the procurement files revealed that the Institute awarded \ncontracts to various providers totalling UGX.519Mn without carrying out \nmarket assessments/surveys. \n9 \nUganda Wildlife Education", "metadata": {"page": 251, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "9 \nUganda Wildlife Education \nConservation Centre. \n2020/21 \n \nOpinion \nUnqualified \n\uf0b7 \nI noted that UWEC is one of the entities affected by the Government \nrationalisation policy on mergers anticipated to be concluded in 2023. By \nthe time of reporting, discussions on transitional arrangements were \nongoing. However, I was not provided with the transitional plans for a \nsmooth merger. Delayed decision making leads to costly mergers and \nuncertainity amonst the stakeholders. \n\uf0b7 \nFive (5) procurements with a total value of UGX.3.239Bn were not \nimplemented as planned due to insufficient release of funds from GOU \nand the adverse effects of the covid-19 pandemic resulting into delayed \nservice delivery. \n\uf0b7 \nAlthough some electronic equipment and motor vehicles at cost of \nUGX.331Mn had been fully depreciated as per the previous financial year,", "metadata": {"page": 251, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "they were still in use. Under the circumstances, the benefits accruing \nfrom them are not matched with their usage/expenditure. Management \nexplained that the revaluation of assets had started, but COVID \u2013 19 \neffects hindered the process. \n10 \nMinistry of Tourism, Wildlife \nand Antiquities. \n2020/21. \n \nOpinion \nUnqualified \n\uf0b7 \nThe \nentity \nbudgeted \nto \nreceive \nUGX.27.408Bn \nout \nof \nwhich \nUGX.22.934Bn was warranted, resulting into a shortfall of UGX.4.474Bn \nwhich is 16.3% of the budget. This affected implementation of planned \nactivities. I further noted that the Ministry did not seek a revision of its", "metadata": {"page": 251, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "budget and work plan, as provided for by Section 17 (3) of the PFMA \n2015, following the revenue shortfall. \n\uf0b7 \nOut of the approved staffing level of 334, the Ministry has only 201 \npositions filled (60.2%) leaving a staffing gap of 139 positions (39.8%). \nIncluded in the unfilled positions are key ones (1 Director, 3 Asst. \nCommissioners and a Principal). Inadequate staffing results into heavy \nworkloads on existing staff and affects the Ministry\u2019s performance which \nin turn affects the overall level of service delivery. \n\uf0b7 \nThe Ministry of Tourism, Wildlife and Antiquities entered into an MOU \nwith a foreign company on 5th February 2020 to enable Uganda host the \n2020 edition of MTV Africa Music Awards (MAMA) on 13th June 2020. The \nagreed sponsorship fee was USD.3,500,000 (equivalent to UGX 12.6Bn).", "metadata": {"page": 251, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "The first installment of UGX.10.4Bn was paid on 12th March 2020. \nHowever due to the COVID 19 pandemic which came about in March \n2020, staging of the event could not take place as earlier planned. On 9th \nNovember 2020 an addendum was signed between MTWA and the \ncompany to modify the function so that it is held virtually on 20th \nFebruary 2021. Thereafter a second installment of UGX.2.596Bn was paid \non 19th January 2021. However, due to a heightened electoral season, \nthe grand finale did not take place. Consequently, the organizers \nannounced cancellation of the function on 14th June 2021.", "metadata": {"page": 251, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "241 \n \n\uf0b7 \nAttention is drawn to Note 19 of the financial statements in which \nmanagement made a provision to reduce the receivable amount from \nUGX.13Bn to UGX.3.2Bn given the preliminary findings by a company \nengaged to assess recoverability of the funds. \n11 \nUganda Tourism Board. \n2020/21 \n \nOpinion \nUnqualified \n \n \n\uf0b7 \nContrary to Section 45 (3) of the Public Finance and Management Act, \n2015, the Board failed to implement procurements worth UGX.2.79Bn \nwhich had been indicated in their procurement plan. Unimplemented \nprocurements signify unimplemented activities and therefore delayed \nservice delivery. \n\uf0b7 \nContrary to Section 26 (4) of the PPDA 2003, procurements for stationery", "metadata": {"page": 252, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "worth UGX.1.67Bn were concluded without carrying out market \nassessments. As a result, I could not establish how the estimated unit \ncost for these procurements was arrived at, thus implying that the \nprocurements may have been awarded at exorbitant costs. \n\uf0b7 \nA review of the Board's establishment structure revealed that 38 posts \nout of the approved 85 remained vacant during the year, indicating a \n45% understaffing level. Most notable among the vacant positions are \nkey staffs like the Director Marketing, Director Quality Assurance, Director \nFinance and planning, and Manager Human Resource. Inadequate \nstaffing levels not only deprive the entity of the skills required to enhance \nservice delivery but also frustrates segregation of duty. \n \nWATER \nAND \nENVIRONMENT SECTOR \n\uf0b7 \n \n1 \nKampala Sanitation Program \n(KSP) Closure \n2020/21", "metadata": {"page": 252, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "2020/21 \n \nOpinion \nUnqualified \n \n\uf0b7 \nContingent Liabilities \n\uf0b7 \nA contractor\u2019s global claim of Euros 25,043,073 arising from the \ncontractual obligation of extension of time and causation of delays in \nproject completion which was approved; \n\uf0b7 \nA compensation claim of UGX220 Million which is now before the Land \nDivision of the High Court Civil suit No.109 of 2019 and thus the outcome \nof the compensation claim will be determined by court; \n\uf0b7 \nA compensation of UGX1.15 Billion which is now before the Land Division \nof the High Court HCCS NO. 518 of 2016 and thus the outcome of the \ncompensation claim will be determined by court. \n2. \nNational Forestry Authority \n2020/21 \n \nOpinion \nUnqualified \n \n\uf0b7", "metadata": {"page": 252, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nThe Authority prepared and had its strategic plan for the period \n2020/2021 to 2024/2025 approved by the Board, however there was no \ncertification from NPA. \n\uf0b7 \nOut of the approved NTR estimate of UGX 12.966 billion, the Authority \ncollected UGX 10.372 billion representing a performance of 80% of the \ntarget. Out of the approved GoU budget of UGX. 42.582 billion, UGX. \n32.074 billion (75.3%) was warranted, resulting in a shortfall of UGX. \n10.508 billion (24.7%). Of the total receipts for the financial year of UGX \n32.074 billion, only UGX 31.304 billion was spent by the entity \nrepresenting an absorption level of 97.6%. \n\uf0b7 \nOut of the six (06) outputs with a total of twenty (20) activities and", "metadata": {"page": 252, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "budget of UGX 42.12 billion, five (5) outputs with a total of fifteen (15) \nactivities were fully quantified while one (1) output with a total of five \n(05) activities was not quantified at all. \n\uf0b7 \nOf the 5 outputs with 15 activities worth UGX.31.68 billion assessed for \nbudget implementation, 01 activity (6.7%) was fully implemented, 13 \nactivities (86.6%) were partially implemented, while 1 activity (6.7%)", "metadata": {"page": 252, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "242 \n \nwas not implemented at all. \n\uf0b7 \nI noted a significant receivables balance of UGX 8,268,255,693 at close of \nthe financial year which impacts the liquidity capacity of the Authority. \n\uf0b7 \nThere were irregularities in forest land utilization with four (4) unlicensed \nCentral Forest Reserves (one in Kajansi and three in Lutoboka) and 24 \nnon-complying developers in CFRs. \n\uf0b7 \nI noted irregularities in forest land utilization, inactive private tree \nplanters in CFRs, non-operationalisation of the Tree Fund, Out-dated \nForest Reserve Management Plans and major encroachment on CFRs. \n3 \nUganda National \nMeteorological Authority \n(UNMA). \n2020/21 \n \nOpinion \nUnqualified \n \n\uf0b7", "metadata": {"page": 253, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nThe Authority collected NTR of UGX 317,259,177 out of the estimated \nUGX 1,259,080,696 representing a performance of 25.2%. \n\uf0b7 \nOut of the budgeted revenue of UGX 26,675,604,875, only UGX \n19,025,934,156 was realized representing performance level of 71.3% of \nthe target. Out of UGX 19,025,934,156 warranted, UGX 17,970,307,440 \nwas absorbed by the authority leaving unspent balance of UGX \n1,295,279,000 representing 94.5% absorption level. \n\uf0b7 \nThe Authority received off-budget financing of UGX. 668,042,740 \n\uf0b7 \nFive (5) outputs with a total of twenty-eight (28) activities and", "metadata": {"page": 253, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "expenditure worth UGX 5,094,648,000 were fully quantified, while Three \n(3) outputs with a total of thirty-seven (37) activities and expenditure \nworth UGX 2,682,683,000 were insufficiently quantified. \n\uf0b7 \nOf the 5 outputs with 28 fully quantified activities, 7 activities (25%) were \nfully implemented, 10 activities (35.7%) were partially implemented, \nwhile 11 activities (39.3%) remained unimplemented. \n\uf0b7 \nThere was delayed completion of the Radars in Mwizi-Rwampara and Lira \ndue to the restrictions of Covid 19 lockdown. \n\uf0b7 \nThe average functionality of all the weather stations is at 89% instead of \nthe desired 100% resulting from the non-functional meteorological \nequipment. \n4 \nInvestment plan \npreparation grant for the \nstrategic plan for climate \nresilience.", "metadata": {"page": 253, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "resilience. \n2020/21 \n \nOpinion \nUnqualified \n \n\uf0b7 \nTwo out of the three (3) sub objectives of the Project, were fully achieved \nwhile the third objective of building capacity of both national and \nsubnational stakeholders in the management of climate change disasters \nwas partially achieved. \n\uf0b7 \nOut of the approved grant of USD 1,500,000, only USD 1,391,587 has so \nfar been disbursed (92.77%) leaving an undisbursed amount of USD \n108,413 (7.23%). Out of the Project available funds of USD 290,641.50 \n(UGX 1,063,396,206), USD 160,807.11 (55.33%) was spent leaving an \nunspent balance of USD 129,834.39 (44.67). \n\uf0b7", "metadata": {"page": 253, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nAll the nine (09) activities with a total budget of USD 290,641.50 (UGX \n1,063,396,206) planned for implementation in the financial year \n2020/2021 were properly quantified. \n\uf0b7 \nOut of nine (09) planned activities for implementation, six (06) activities \n(66.67%) were fully implemented; one (01) activity (11.11%) was \npartially implemented while two (02) activities (22.22%) were not \nimplemented at all. \n\uf0b7 \nPayables relating to 6%WHT had accumulated to UGX 36,025,563 from \nUGX 24,878,054 reported in the prior year financial statements. \n\uf0b7 \nStatutory deductions amounting to UGX 11,147,509 relating to 6%WHT", "metadata": {"page": 253, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "243 \n \nwere not remitted to the Uganda Revenue Authority. \n5 \nIntegrated Water \nManagement and \nDevelopment Project- \nNWSC \n2020/21 \n \nOpinion \nUnqualified \n \n\uf0b7 \nNo material findings to report. \n \n6 \nNational Water and \nSewerage Corporation- \nKampala Water Lake \nVictoria Water and \nSanitation (KW-LV WATSAN \nI) PROJECT \n2020/21 \n \nOpinion \nUnqualified \n \n\uf0b7 \nI noted that NWSC delayed to pay the Contractor and as a result, the \ncontractor claimed for interest of Euros 141,968 approximately UGX.610 \nMillion. I also noted changes in the scope of the contract which resulted", "metadata": {"page": 254, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "into a contract variation of Euros 612,000 (approximately UGX 1.4 \nBillion). \n7 \nNATIONAL ENVIRONMENT \nMANAGEMENT AUTHORITY \n \nOpinion \nUnqualified \n\uf0b7 \nThe Authority collected NTR of UGX.8,084,594,955 (50.2%) against the \nestimated UGX.16,088,769,336 as projected by Ministry of MOFPED. \nHowever, there were no NTR estimates indicated in the statement of \nappropriation. \n\uf0b7 \nOut of the budgeted GoU revenue of UGX.25,555,655,669 by the \nAuthority, only UGX 18,809,799,829 was warranted representing \nperformance of 73.6% of the target. \n\uf0b7 \nI noted that out of the UGX.18,809,799,829 released to the Authority,", "metadata": {"page": 254, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "only UGX.18,494,875,926 was spent representing an absorption level of \n98.3%. Subsequently, the unspent funds amounting to UGX.314,923,903 \nwere swept back to the Consolidated Fund. \n\uf0b7 \nThe \nAuthority \nreceived \noff-budget \nfunding \nto \nthe \ntune \nof \nUGX.1,963,413,072 and USD 2,805,651,484 which were not appropriated \nas required by the law. \n\uf0b7 \n9 (69%) of the 13 activities (against which UGX 9,707,487,720 was \nreleased) were fully implemented and 4 (31%) of the activities were \npartially implemented. \n\uf0b7 \nContrary to the directive from the Ministry of Finance, during the financial", "metadata": {"page": 254, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "year a total of UGX 441,857,268 was deposited directly into the National \nEnvironment Fund (NEF) account as NTR and this amount was not \nremitted to the consolidated fund. \n\uf0b7 \nThe Authority does not have any legal provision to regulate the work of \nthe Environment Police. In addition, the funds to facilitate the work of the \nforce were not budgeted for in the annual work plan and budget. \nFinancial records indicate that only UGX.21,280,000 was spent on the \nforce during the year. \n\uf0b7 \nI noted that all the wetlands in Uganda are not gazetted, contrary to \nSection 2 of the National Environment Act 2019, although they are \nindicated on the maps. In addition, contrary to Instrument 2 of the \nNation Environment Act, 2019 (Commencement) that empowers the \nAuthority to enforce wetland gazetting, the Authority went ahead to \ncollect NTR from wetland user permits amounting to UGX 8,800,000", "metadata": {"page": 254, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "244 \n \nduring the financial year 2020/21. \n8 \nStrategic \nTowns \nWater \nSupply \nand \nSanitation \nProject. \n2020/21 \n \n \nOpinion \nUnqualified \n\uf0b7 \nOut of the total budget of UGX 40 Bn for the financial year, only UGX \n19.24 Bn was received representing a performance level of 48%. Out of \nthe amount received, UGX.18.88 Bn was spent during the year \nrepresenting an absorption level of 98.13%. \n\uf0b7 \n I noted that of the 12 quantified activities worth UGX.35.63Bn assessed, \n8 activities representing 66.7% were partially implemented, while 4 \nactivities representing 33.3% were not implemented at all. \n\uf0b7", "metadata": {"page": 255, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nI noted slow progress of work for Construction of Kayunga \u2013 Busaana \nwater supply system due to failure to access imported materials as a \nresult of the COIVD 19 pandemic. \n9 \nIrrigation \nfor \nClimate \nResilience Project \n2020/21 \n \nOpinion \nUnqualified \n \n\uf0b7 \nOut of the budgeted revenue of USD 13,641,026, only USD 6,305,937 \n(46.2%) was realized representing performance level of 46.2% of the \ntarget. Out of USD 6,305,917, disbursed, there was no absorption by the \nproject as at close of the financial year. \n\uf0b7 \nTwenty-two (22) outputs with a total of thirty three (33) activities and \nbudget of USD 13,641,026 were fully quantified as required. Out of 22", "metadata": {"page": 255, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "outputs with a total of 33 activities, only 1 activity (3%) was fully \nachieved, 27 (82%) were partially achieved and 5 activities (15%) were \nnot implemented at all. \n10 \nEnhancing \nResilience \nof \nCommunities \nto \nClimate \nChange (EURECCCA) \n2020/21 \n \nOpinion \nUnqualified \n \n\uf0b7 \nAt the end of the initial project completion date of 30th April 2021, all the \nfour project components had been partially achieved and thus, the \nproject completion date was extended to 30th April 2022. \n\uf0b7 \nOut of the approved budget of UGX 17,768,973,403 (USD 4,670,392), \nUGX 7,799,443,700 (USD 2,050,000) was realized representing a \nperformance \nof", "metadata": {"page": 255, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "performance \nof \n43.9%. \nOut \nof \nthe \ntotal \navailable \nfunds \nof \nUGX.8,690,311/616, a sum of UGX.8.541,200,193 was spent representing \n98.3% absorption. \n\uf0b7 \nAll the 15 planned outputs with a total of 42 activities were fully \nquantified to enable assessment of performance and enhance \naccountability. Out of the 42 planned activities 19 (45.2%) were fully \nimplemented, 22 (52.4%) were partially implemented and 1(2.4%) was \nnot implemented at all. \n11 \nNyabyeya Forestry College \n(NFC) \n \nOpinion \nUnqualified \n \n \n\uf0b7 \nThe College does not have an approved strategic plan for the period", "metadata": {"page": 255, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "2021-202 and lacks an enabling law that stipulates its mandate. There is \na risk that activities implemented during the financial year 2020/2021 \nwere not aligned to the NDP-III, which negatively affects the \nachievement of the National Development objectives \n\uf0b7 \nOut of the total receipts of UGX 2,753,839,117 for the financial year, UGX \n2,911,962,444 was spent resulting into an over expenditure of UGX \n158,123,327 representing an absorption level of 106%. The over \nabsorption of funds was due to the opening balances for civil works \nexecuted even during the Covid-19 lockdown. \n\uf0b7 \nI noted a decline in students\u2019 enrolment from 431 students in 2016/17 to \n256 students in 2020/21. Continued fall in enrolment may result in the \nCollege\u2019s failure to achieve its mandate of producing technical human \nresource in forestry and related natural resources through training. \n12", "metadata": {"page": 255, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "12 \nFarm Income Enhancement \nand Forestry Conservation \nProject Phase II (FIEFOC \n\uf0b7 \nThe Project has not fully achieved the three project subcomponents of \nAgriculture Infrastructure Development, Agribusiness Development and", "metadata": {"page": 255, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "245 \n \nII). \n2020/21 \n \nOpinion \nUnqualified \n \nIntegrated Natural resources Management which had been set to be \nachieved by 30/06/2021. \n\uf0b7 \nThe project had an approved annual budget of UGX 111,249,503,000 out \nof which UGX 63,414,586,000 (57%) was received leading to a shortfall \nof UGX 47,834,917,000. \n\uf0b7 \nOut of the total funds received of UGX 63,414,586,000, a total of UGX \n63,250,130,000 was spent, representing an absorption level of only \n99.7%. \n\uf0b7 \nOut of the Nine (9) outputs with a total of twenty-nine (29) activities and", "metadata": {"page": 256, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "expenditure worth UGX 51,914,542,000, six outputs with a total of twenty \nsix (26) activities were fully quantified, while three outputs with a total of \nthree (3) activities were not quantified at all. \n\uf0b7 \nOf the 6 outputs with 26 fully quantified activities, 18 activities (70%) \nwere fully implemented, 4 activities (15%) were partially implemented \nwhile 4 activities (15%) were not implemented. \n\uf0b7 \nI noted that the Project extended loans to beneficiaries to the tune of \nUGX.2,315,145,994. However, out of the amounts due for collection of \nUGX.1,364,364,026, only UGX. 45,062,600 (3.3%) had been recovered by \n30th June 2021, leaving a balance of UGX 1,319,301,426 outstanding. \n\uf0b7", "metadata": {"page": 256, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nThere is slow progress of works at Wadelai irrigation scheme with major \noutstanding works, such as; main canal not completed; Embankment not \ncompleted with only 0.5km out of 2.3km fully worked on; 3 secondary \ncanals half-done leaving 2 not yet started on; 7 out of 8 tertiary canals \nfor secondary canal 1 done and none for the other 4 secondary canals \ndone; Farm land clearing not done; and Eco system scheme toilets not \ndone. \n13 \nIntegrated \nWater \nManagement \nand \nDevelopment \nProject \n(IWMDP) \n2020/21 \n \nOpinion \nUnqualified \n \n\uf0b7 \nOut of the approved budget of UGX 70,327,857,900, UGX.52,949,933,856 \n(75.3%) \nwas \navailed", "metadata": {"page": 256, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "was \navailed \nfor \nspending \nleading \nto \na \nshortfall \nof \nUGX.17,377,924,044. Out of the total funds available for the financial \nyear \nof \nUGX.52,949,933,856, \nUGX.20,830,393,625 \nwas \nspent \nrepresenting an absorption level of only 39.3%. \n\uf0b7 \nFifteen (15) outputs with a total of twenty-seven (27) activities and \nexpenditure worth UGX.14,957,387,000 were fully quantified, while one \n(1) outputs with one (1) activity was inadequately quantified. \n\uf0b7 \nOf the 15 outputs with 27 fully quantified activities, 2 out puts (13%)", "metadata": {"page": 256, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "were fully implemented, 6 out puts (40%) were partially implemented \nwhile 7 out puts (47%) were not implemented. \n\uf0b7 \nReview of the project appraisal document, the monitoring and results \nframework analysis report of October 2021 together with annual progress \nreports revealed that the rate of achievement of project targets is slow as \na result of procurement delays. \n14 \nNorthern Uganda Resilience \nInitiative Project \n2020/21 \n \nOpinion \nUnqualified \n \n\uf0b7 \nOut of the total rolled over funds of UGX.1,520,434,217 from the previous \nfinancial year, the project spent UGX.1,055,516,512 (69%) leaving an \nunspent balance of UGX.464,917,705 (31%). \n\uf0b7 \nOut of the 17 planned activities for the financial year 2020/2021, only 2", "metadata": {"page": 256, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "activities were quantified as required leaving 15 activities unquantified. \n\uf0b7 \nOf the 17 activities planned; 5 (29%) were fully implemented, 6 (35%) \nwere partially implemented, 1 activity (6%) was not implemented while 5 \nactivities representing 29% were not reported on in the annual \nperformance report.", "metadata": {"page": 256, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "246 \n \n15 \nThird \nNational \nCommunication (TNC) \n2020/21 \n \nOpinion \nUnqualified \n \n\uf0b7 \nOut of an approved budget of USD.173,474, USD.83,000 was disbursed \nrepresenting a performance level of 47.8% of the target. \n\uf0b7 \nOut of the total available funds for the year of US$ 92,304.34, the project \nspent US$ 60,493.32 representing an absorption level of 65.6%. As a \nresult some activities were not implemented. \n\uf0b7 \nAll the 16 outputs with a total budget of USD.173,474 and actual \nexpenditure of 60,555.97 were not quantified at all. \n16 \nWater \nSupply \nand \nSanitation \non \nRefugee", "metadata": {"page": 257, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "on \nRefugee \nHosting \nCommunities \nin \nNorthern Uganda Funded \nBy (Kfw) Project KfW \n2020/21 \n \nOpinion \nUnqualified \n\uf0b7 \nOut of the Project budget of UGX. 20,868,100,000, a sum of UGX \n9,204,079,893 was disbursed by the donor, representing a performance \nlevel of 44.1% of the target. \n\uf0b7 \nOut of the total receipts of UGX 9,204,079,893 from KfW, UGX \n8,523,847,919 (92.6%) was spent by the Project, resulting into an \nunspent balance of UGX 680,231,973 (7.4%). \n\uf0b7 \nBoth projects outputs with 10 planned activities were fully quantified and;", "metadata": {"page": 257, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "1 activity (10%) was fully achieved, 8 activities (80%) were partially \nachieved, while 1 activity (10%) remained unimplemented. \n17 \nUganda National Redd - \nPlus Support Project \n \nOpinion \nUnqualified \n \n\uf0b7 \nThe project had 2 sub components which had not been fully achieved. \n\uf0b7 \nThe project had an approved revenue budget of USD.644,500 for the \nyear under review but only USD.250,000 (38.8%) was disbursed. \n\uf0b7 \nOut of the total funds available for spending of USD.475,919.18, only \nUSD.249,763.51 (52.18%) was spent leaving an unspent balance of $ \n226,155.67 (48.82%). As a result certain \nactivities were not \nimplemented. \n\uf0b7", "metadata": {"page": 257, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "implemented. \n\uf0b7 \nAll the 10 outputs comprising 57 activities with a total budget of \nUSD.2,210,799 were properly quantified. \n\uf0b7 \nThe draft progress report was not detailed to enable assessment of \nimplementation of activities against planned. \n18 \nMinistry \nof \nWater, \nand \nEnvironment (MoWE) \n2020/21 \n \nOpinion \nUnqualified \n \n\uf0b7 \nI noted that the entity had not prepared a specific strategic plan as \nrequired by the NDP III and was instead utilizing an Investment plan \n(2030). \n\uf0b7 \nI noted that out of the estimated NTR collection of UGX 8.97 billion, only \nUGX1.39 Bn was realized, representing a performance of 15.5%. \n\uf0b7", "metadata": {"page": 257, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nOut of the approved budget of UGX. 457.52 Bn, a sum of UGX. 452.01 Bn \n(98.8%) was released, resulting in a shortfall of UGX. 5.52 Bn (1.2%) of \nthe budget. \n\uf0b7 \nOut of the total receipts for the financial year of 452.01 Bn, a sum of \nUGX. 453.24 Bn was spent by the entity resulting in an unspent balance \nof UGX 5.58 Bn, representing an absorption level of 98.7%. \n\uf0b7 \nAs a result of the under absorption, I noted that of the 72 quantified \nactivities worth UGX.388.26Bn assessed; 15 activities representing 27.3% \nwere fully implemented, 38 activities representing 69.1% were partially \nimplemented,2 activities representing 3.6% were not implemented .I \nfurther noted that there was delayed submission of performance reports. \n\uf0b7", "metadata": {"page": 257, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nThe Ministry incurred penal interest of UGX.103,632,504 (USD.32,218) \narising from delayed payment to the contractor. \n\uf0b7 \nI noted that the Ministry\u2019s Payables amount significantly increased from \nUGX.64.3 billion in the previous year to UGX.114.5 billion in the current", "metadata": {"page": 257, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "247 \n \nyear due to the increasing number of multi-year projects in the ministry. \n\uf0b7 \nI noted that the Ministry\u2019s Receivables amount significantly increased \nfrom UGX.1.3 million in the previous year to UGX.22.4 billion in the \ncurrent year. This was attributed to prepayments made to contractors \n(UGX.19.3 billion) and the outstanding letters of credit (UGX.3.1 billion) \nfor on-going projects in the Ministry. \n\uf0b7 \nFrom my audit and field inspection of facilities, regional centres and \nUmbrella Organisations, I observed several weaknesses in service delivery \nsuch as; untitled land for piped water systems and schemes; delayed \nexecution of works; outstanding revenue arrears; unmetered water \nschemes, Lack and faulty bulk meters; among others. \n19 \nSupport to Priority Irrigation \nInvestments \nin \nUganda", "metadata": {"page": 258, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "in \nUganda \nGrant \n2020/21 \n \nOpinion \nUnqualified \n \n \n \n\uf0b7 \nAll the budgeted revenue from Government of USD.949,422.62 was \nrealised representing a performance of 100% of the target. \n\uf0b7 \nOut of the donar funds of USD.949,422.62 received, only USD 117,475.04 \nwas absorbed by the project representing an absorption level of 12.4%. \nThe Under absorption was attributed to Covid-19 effects. \n\uf0b7 \nAll the Six (6) outputs with a total of six (6) activities and expenditure of \nUSD.117,475.04 were fully quantified. \n\uf0b7 \nFour (4) out of six (6) outputs had not been achieved despite the fact \nthat the initial Project completion period had been 30thJune 2020. This", "metadata": {"page": 258, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "was later extended to 30/06/2021 and another extension to 31/3/2022. \n20 \nThe Adapting to Climate \nChange In Lake Victoria \nBasin. \n2020/21 \n \n \nOpinion \nUnqualified \n \n\uf0b7 \nOut of the budgeted revenue of USD.249,377, only USD.194,645.56 was \nreceived representing performance level of 78% of the target. \n\uf0b7 \nOut of the total disbursements for the period of USD.273,590.56 \n(equivalent UGX.998,518,150), only USD.38,215.11 (UGX.141,282,999) \nwas absorbed by the project representing an absorption level of 14%. \n\uf0b7 \nAll the three (3) outputs with a total of eleven (11) activities and budget \nof USD.249,377 were fully quantified. \n\uf0b7", "metadata": {"page": 258, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nOut of the 3 quantified outputs with 11 activities, 5 activities (45.5%) \nwere fully achieved, 2 activities (18.2%) were partially achieved and 4 \nactivities (36.3%) were not implemented at all. \n21 \nSouth Western Cluster \nWater and Sanitation \nProject \u2013 NWSC \n2020/21 \n \nOpinion \nUnqualified \n \n\uf0b7 \nNo material issues to report on \n \n22 \nNational \nWater \nand \nSewerage \nCorporation \n(NWSC) \n2020/21 \n \nOpinion \nUnqualified \n \n\uf0b7 \nThe financial statements under Note 28 include a Financial Asset in form \nof Trade Receivables. Management has estimated the fair value of the", "metadata": {"page": 258, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "net financial asset receivable to be UGX 133.7 billion as at 30th June \n2021 of which, the net amount of receivables UGX38.2bn is owed from \nthe government and its MDA (Ministries; Departments and Agencies). \n\uf0b7 \nI noted that NWSC leased vehicles, offices and land under operating lease \ncontracts whose terms were more than twelve (12) months, which were \nclassified as; Right of Use asset amortization (UGX 87.8m) Right of Use \nLease Assets (UGX 12.4bn) and Obligations due to Right of Use Leased \nAssets (UGX 8.4bn). Liabilities were not amortised annually using \neffective interest method in order to arrive at the amortised costs for", "metadata": {"page": 258, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "248 \n \nprofit and loss recognition although the necessary disclosures were made \nin the financial statements. \n\uf0b7 \nI noted that freehold land (UGX. 176.5bn) and leasehold land (UGX. 4bn) \nincluded some land that had expired lease periods, some titles were not \nyet transferred in the names of NWSC, and Katosi, which is a long term \ninvestment constructed on a short term leased land of ten (10) years. \n\uf0b7 \nSome on-going water projects were significantly delayed by litigations \nand substantial amounts that are required to compensate the interested \nparties in note 24 of the financial statements. \n23 \nMultinational Lakes Edward \nand \nAlbert \nIntegrated \nFisheries \nand \nWater \nResources \nManagement \nProject (LEAF) II \n2020/21 \n \nOpinion", "metadata": {"page": 259, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Opinion \nUnqualified \n \n\uf0b7 \nA total of six (6) strategic outputs (50%) were fully achieved, while 6 \noutputs were partially achieved and still on-going (50%). \n\uf0b7 \nOut of the approved budgeted revenue of USD 1,887,374, USD \n603,588.93 was released representing performance of 32% of the target. \n\uf0b7 \nThe project had a total available balance of USD 2,767,452.2, out of \nwhich USD 2,754,945.85 (99.5%) was spent leading to an unspent \nbalance of only USD 12,506.35. \n\uf0b7 \nAll the 10 planned outputs with 39 activities and a total budget of USD \n3,119,412.9 were properly quantified to enable measurement of \nperformance. \n\uf0b7 \nOut of the 39 planned activities under the 3 Project components, 19", "metadata": {"page": 259, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "(48.7%) were fully implemented, 10 (25.6 %) were partially implemented \nand 10 (25.6%) were not implemented at all. \n\uf0b7 \nI noted delays in construction of infrastructure projects resulting from the \neffects of the Covid pandemic and effects of the rising water level of \nLakes Albert and Edward and inadequate GoU funding. The projects \naffected included the construction of the surveillance station, Kitebere \nLanding Site, Mbegu landing site, fish processing facility at Dei Landing \nsite, and supply of a fisheries research vessel. \n \nENERGY SECTOR \n\uf0b7 \n \n1 \nElectricity Regulatory \nAuthority (ERA) \n2020/21 \n \nOpinion \nUnqualified \n\uf0b7 \nI noted that out of the budgeted revenue of UGX 28.57Bn, a sum of UGX. \n27.70Bn was realized representing a performance of 98%.", "metadata": {"page": 259, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nOut of the revenue realized of UGX. 27.70Bn for the financial year, UGX \n24.55Bn was spent on recurrent expenditure and UGX.2.25Bn on capital \nexpenditure, \nresulting \ninto \nan \nunspent \nbalance \nof \nUGX.0.9Bn, \nrepresenting absorption level of 97%. \n\uf0b7 \nOut of the forty-six (46) key activities, sixteen (16) (35%) activities had \nbeen fully achieved, and thirty (30) (65%) were partially achieved. \n\uf0b7 \nIncluded in the receivables figure of UGX.7,566,003,960, under Note 7 of \nthe Financial Statements is a sum of UGX.724, 185,509, relating to \nlicense fees and permit fees which have been outstanding for more than \n90 days instead of the recommended 14 days.", "metadata": {"page": 259, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nI noted that the target of reduction of the end user tariff was not \nachieved across customers\u2019 categories, with a weighted average of \nUGX.485.7 per Kwh. The end user off \u2013peak tariff for extra- large \nindustrial customers was achieved at UGX.223.7. \n\uf0b7 \nI noted that out of the total staff establishment of 92 positions, only 67 \n(73%) positions had been filled leaving a balance of 25 (27%) positions \nvacant.", "metadata": {"page": 259, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "249 \n \n\uf0b7 \nI noted Non-compliance to Quality-of-Service Standards (QoS) by \nDistribution Licensees, with an average of 45% compliance. Non-\ncompliance with QoS denies customers quality and reliable electricity \nsupply. \n2 \nEnergy for Rural \nTransformation III PSFU \nProject (ERT III). \n2020/21 \n \nOpinion \nUnqualified \n\uf0b7 \nOut of the total Receipts for the financial year of USD. 636,993, only \nUSD.382,224 was spent by the Project resulting in an unspent balance of \nUSD. 254,769 representing absorption level of 60% for the year. As a \nresult, activities such as training of certified wiremen was partially \nimplemented. \n\uf0b7 \nI noted that a consortium of Ruwenzori Power Ltd (RWP) and East African", "metadata": {"page": 260, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Power Ltd (EAPL) had been contracted to undertake the development of \ntwo Micro Hydro schemes in Rwenzori Sub Region. However, by the time \nof audit (November, 2021) the development of the 2 Micro Hydro \nschemes had not commenced. \n\uf0b7 \nI noted that out of the target of 850 certified wiremen, 367 wiremen \nwere certified during the period, bringing the total number of total \ncertified wiremen under the ERT-PSFU to 747 (88%), by June 30, 2021. \n3 \nUganda Rural Electricity \nAccess Project (UREAP). \n2020/21 \n \nOpinion \nUnqualified \n\uf0b7 \nOut of the Budget of UGX.157.4Bn, only UGX.106Bn was disbursed \nrepresenting a shortfall of 51,339,828,177, which is 32.6% of the Budget.", "metadata": {"page": 260, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "I further noted that out of the total receipts for the financial year of UGX. \n106.1Bn, UGX.105.5Bn was utilized on installation of Medium Voltage \nNetworks and Last Mile consumer connections, leaving an unutilized \nbalance of UGX.564,461,546 representing an absorption level of 99.5%. \n\uf0b7 \nAs 30th June 2021, the Bank had disbursed USD.44.83Million and Euros \n5.89Million against the Loan credit facility of USD.100 Million and Grant of \nEuros 11.205 Million representing 45% and 53%, respectively. \n\uf0b7 \nI noted delays in construction works under procurement of plants, design, \nsupply and installation of medium voltage networks and last mile \nconsumer connections. Notably, under Lots 6, Medium Voltage stringing, \nand Low Voltage (LV) stringing had not yet commenced. Under Lot 7 \nMedium Voltage Pole erection was at 31% and stringing at 47%. \n\uf0b7", "metadata": {"page": 260, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nOut of 1,686 Project Affected Persons (PAPs), with an approved \ncompensation amount of UGX.1,240,502,500, only 1,209 PAPs have been \npaid an amount of UGX.863,758,500, leaving an outstanding amount of \nUGX.376,744,000 relating to 477 PAPs. \n4 \nLira-Gulu-Agago 132KV \ntransmission project \n2020/21 \n \nOpinion \nUnqualified \n \n\uf0b7 \nOut of the total Receipts for the financial Year of USD. 2,304,191, only \nUSD.519,117 was utilized by the Project, resulting in an unspent balance \nof USD.1,785,074, representing an absorption rate of only 22.5%. As a \nresult, activities such as compensation of Project Affected Persons and", "metadata": {"page": 260, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "supervision of EPC works were not implemented. \n\uf0b7 \nI noted that the contract for 132kv Double Circuit Transmission Lines and \nconstruction of Substations were signed on 12th April and 23rd March, \n2021 respectively, however the major Project works such as Survey, \nDesign, Supply and Installations works had not yet commenced. \n5 \nEnergy for Rural \nTransformation III (ERT III) \n\u2013REA Project. \n2020/21 \n \nOpinion \nUnqualified \n \n\uf0b7 \nOut of the total receipts for the financial year of UGX.139.5Bn, only \nUGX.98.3Bn was utilized on installation of Medium Voltage Networks and \nLast Mile consumer connections, leaving an unutilized balance of UGX \n41.2Bn representing an absorption level of 70%. As a result, activities \nsuch as Grid extensions, Line connections and Grid Intensification \nschemes under various Lines were partially implemented. \n\uf0b7 \nOut of the total credit amount of USD.116.1 Million, only USD.73.7 Million", "metadata": {"page": 260, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "250 \n \n \nhad been disbursed by the Bank under ERT- REA representing 64% of \nthe Total credit. \n\uf0b7 \nThe overall Implementation of the Grid extension and associated \nconnections is behind schedule especially under Lines 20-21 which are at \n17% and 2% respectively. Progress of work under Grid Intensification, \nUMEME Batch 1 and 2 were at 55% and 20% respectively. \n\uf0b7 \nOut of 34,535 Project Affected Persons (PAPs), with an approved \ncompensation amount of UGX. 22.6Bn, only 22,180 PAPs have been \ncompensated with an amount of UGX.14.2Bn, leaving an outstanding \namount of 8.3Bn relating to 12,355 PAPs. \n6 \nHoima Kafu Transmission \nLine Project - Kafu \nInterconnection Project. \n2020/21 \n \nOpinion", "metadata": {"page": 261, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Opinion \nUnqualified \n \n\uf0b7 \nOut of the total receipts for the financial year, of USD.1,903,946, only \nUSD.41,960 was spent by the Project, resulting in an unspent balance of \nUSD.1,861,986, representing absorption level of only 2.2%. As a result, \nactivities such as compensation of Project Affected Persons were not \nimplemented. \n\uf0b7 \nI noted that out of the 508 Project Affected Persons along the final \nselected route of the Project. 470 disclosures had been made \nrepresenting \n95%. \n347(68%) \nagreements \nwere \nobtained \nfrom \ndisclosures, out of which 125 (25%) disputes arose, and payments to \nPAPs as at 30th June 2020 was 330 (65%). \n7 \nKampala Metropolitan \nTransmission System", "metadata": {"page": 261, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Transmission System \nImprovement Project. \n2020/21 \n \nOpinion \nUnqualified \n \n\uf0b7 \nOut of the total receipts for the financial year of USD.9,259,009 for the \nfinancial year, only USD.2,465,150 was spent by the Project, leaving an \nunspent balance of USD.6,793,859, representing absorption of rate of \n26.6%. As a result, I noted that Key activities such as consulting Services \nfor Procurement of the EPC contractor was not implemented, while \ncompensation of projected affected persons was partially implemented. \n\uf0b7 \nI noted that out of 130 PAPs, 109 (83%) were compensated. Disclosures \nmade were 120 (91%), agreements obtained from disclosures were 117 \n(89%), and PAPs not yet compensated were 22 (16.7%). \n8 \nPetroleum Authority of \nUganda (PAU).", "metadata": {"page": 261, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Uganda (PAU). \n2020/21 \n \nOpinion \nUnqualified \n\uf0b7 \nI noted that the Authority budgeted to receive UGX.63.61Bn out of which \nonly UGX.52 Bn was warranted, resulting in a shortfall of UGX11.6Bn, \nwhich is 18% of the budget. \n\uf0b7 \nOut of the total Receipts for the financial year of UGX.52.0Bn, a sum of \nUGX.48.5Bn was spent by the entity resulting in an unspent balance of \nUGX.3.5Bn representing an absorption level of 93%. As a result, activities \nsuch as development and Implementation of the Grievance management \nframework and environment management system for the oil and gas \nsector were not implemented. \n\uf0b7 \nI noted that of the planned output, three (3) outputs with a total of nine", "metadata": {"page": 261, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "(9) activities and expenditure worth UGX.9.05Bn were fully quantified. \nFive (5) outputs with a total of sixty-seven (67) activities and expenditure \nworth UGX23.67Bn, was insufficiently quantified. Four (4) outputs with a \ntotal of six (6) activities and expenditure worth UGX 1.09Bn were not \nquantified at all. \n\uf0b7 \nI noted that out of the total staff establishment of 283, only 189 (67%) \npositions had been filled, leaving 94 (33%) positions vacant. \n\uf0b7 \nI noted that the Authority had not developed and documented a Business \nContinuity Plan and not ensured disaster recovery planning for continuous \nprovision of IT services in case of a disaster. \n\uf0b7 \nI noted that the Authority lacked an environmental regulatory framework \nnecessary for regulating the environmental aspects in the oil and gas", "metadata": {"page": 261, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "251 \n \nsector. These include; the air quality standards, noise and vibration and \nthe chemicals management standards. \n9 \nGrid Expansion and \nReinforcement Project \n(GERP)-UETCL. \n2020/21 \n \nOpinion \nUnqualified \n \n\uf0b7 \nOut of the total Receipts for the financial year of USD.35,395,297, only \nUSD.6,139,307 was spent by the project leaving an unspent balance of \nUSD.29,255,991, representing absorption of rate of 17.3%. As a result, \nactivities such as construction of Transmission Lines and compensation of \nProject affected Persons were partially implemented. \n\uf0b7 \nOut of the total amount of IDA credit for the Project of USD.100,000,000", "metadata": {"page": 262, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "only USD.29,457,000(29.4%) was disbursed, and out of USD.27.3M GoU \ncounterpart funding, 7,945,423 (28.9%) was disbursed by the end of the \nfinancial Year. \n\uf0b7 \nOut of the annual target of 59% progress, under Lot 1; -Construction of \n132kv Double Circuit Transmission Lines, only 39% was achieved. Out of \na target of 47% progress under Lot 2- construction of Substations, only \n20% was achieved. \n\uf0b7 \nI noted that out of 2,340 identified PAPs under Gulu-Nebbi-Arua Section, \nonly 1,719 (73%) had been compensated. Out of 994 PAPs under Kole-\nGulu Section 985 (99%) were compensated, leaving a total of 630 PAPs \nnot compensated by the time of audit. In addition to the 3,334 PAPs with", "metadata": {"page": 262, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "a total cash resettlement of USD. 1,463,955.41, USD.1,241,137 was paid \nto 2,704 PAPs resulting into an outstanding obligation of USD.222,818 \nrelating to 630 PAPs \n10 \nIslamic Development Bank \n(IDB) III Grid Rural \nElectrification Project. \n2020/21 \n \nOpinion \nUnqualified \n \n\uf0b7 \nOut of the total Loan credit of USD.70,730,000 Million by the Islamic \nDevelopment Bank, USD 69,764,722.91 was disbursed representing a \nperformance of 99% of the total Loan facility. \n\uf0b7 \nI noted that as at 30th June 2021, the overall Project progress was at \n99% completion, for all the 6 lots, involving construction of Rural \nElectrification Schemes in various parts of Uganda. \n11 \nUganda Petroleum Fund \n(UPF).", "metadata": {"page": 262, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "(UPF). \n \nOpinion \nUnqualified \n \n\uf0b7 \nI noted that for the year under review, the balance in the Petroleum Fund \nincreased from UGX.87.79Bn as at 30th June 2020 to UGX. 228.79Bn as \nat 30th June 2021. However, there was no appropriation of UGX. \nUGX.87.79Bn by during the Financial Year 2020/21 to the Consolidated \nFund and/or the Petroleum Revenue Investment Reserve for budget \nsupport and investment activities, respectively. \n12 \nUganda Electricity \nGeneration Company \nLimited (UEGCL) \n2020/21 \n \nOpinion \nUnqualified \n \n\uf0b7 \nOut of the budgeted revenue of UGX.173,191,277,000, for the year", "metadata": {"page": 262, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "2020/21, UGX.169,743,586,000 was realized representing performance of \n98% of the target. \n\uf0b7 \nOut of the total receipts for the financial year of UGX.169,743,586,000, \nUGX.115,066,984,000 was spent by the entity resulting in an unspent \nbalance of UGX.54,676,622,000 representing an absorption level of 67.7 \n%. \n\uf0b7 \nI sampled 92 interventions/critical activities implemented under the 11 \ndepartments and noted that out of the ninety two (92) key interventions, \ntwenty nine (29) (32%) critical tasks had been fully achieved, sixty one \n(61) (66%) were partially achieved while two(2) (2%) were not achieved. \n\uf0b7 \nI noted long outstanding Payables of UGX 814,000,000 relating to penal", "metadata": {"page": 262, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "interest charged by URA, resulting from late payment of WHT on \nconsultancy services for the period 2001-2009. \n\uf0b7 \nI noted accumulated interest of UGX 284,942,245,000, on Loan repayment", "metadata": {"page": 262, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "252 \n \nfor Karuma Hydro Power Plant was outstanding as at 30th June, 2021. \n\uf0b7 \nThere has been delayed commissioning of Karuma Dam, whose \ncompletion date was extended to 15th June 2022, resulting in a delay of \n3 years and 6 months from the initial planned completion date. \n\uf0b7 \nInstances of non-conformances (NC) were noted in relation to electrical, \nmechanical and civil works components that required rectification before \ncommissioning of the Karuma Dam. \n\uf0b7 \nThere has been continuous extension of the Isimba Dam Defects Liability \nPeriod (DLP), due to the various snags and defects that were detected \nafter the Dam`s commissioning on March 2019. \n\uf0b7 \nI noted delayed commencement of the Construction of Muzizi Hydro \nPower Project whose credit facility agreement with Agence Francaise De \nDevelopment (AFD) and KFW was signed on 9th December 2016 and", "metadata": {"page": 263, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "25th November, 2016, respectively, to finance the construction of Muzizi \nHydro Power Project with expected completion date of December 2023. \n\uf0b7 \nI noted delayed Compensation of Project Affected Persons (PAPs) for \nMuzizi HPP whereby a total of UGX.1,769,227,282 (36.41%) of the total \ncompensation value UGX.4,858,711,140 has been paid to PAPs. \n\uf0b7 \nI also note a failure to undertake remedial works on the plants being \nhandled under the concession between GOU and ESKOM with less than \n50% of the remedial works that have been carried out currently, with a \nfew months to end of the concession. \n13 \nStrengthening \nthe \nManagement of Oil and Gas \nProgramme (SMOGP) \n2020/21 \n \nOpinion \nUnqualified", "metadata": {"page": 263, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nOut of the total receipts for the financial year of USD 790,580.38, only \nUSD. 239,221.92 was spent by the Programme resulting in an unspent \nbalance of USD 551,358.46, representing an absorption level of 30.2%. \nUnder absorption of released funds results in non-implementation of \nplanned activities. \n\uf0b7 \nI noted that the Planned Programme activities such as Development of \nReservoir Modelling and Simulation, Review of the Tax Laws and the \nModel Production Sharing Agreement Training course for Component \nManagers and Program Secretariat among others were not implemented. \nThere is a risk of failure to achieve intended Programme objectives and \nservice delivery due to delayed implementation of activities. \n14 \nMutundwe-Entebbe \n132kv \nDouble Circuit Transimssion \nLine Project - UETCL- June \n2020 \n \nOpinion", "metadata": {"page": 263, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Opinion \nUnqualified \n \n \n \n\uf0b7 \nI noted delays in transfer of titles, caused by the slow land titling process. \nOut of the expected 463 land titles, UETCL received 264, and 70 were \nhanded over to the RAP Consultant. \n\uf0b7 \nOnly 843 PAPs out of 1,062 had been compensated leaving 219 PAPs \n(20.62%) outstanding. \n\uf0b7 \n \n\uf0b7 \nWeakness were noted in the performance of the resettlement action plan \nconsultant such as inclusion of forest reserves and wetlands as part of \ncompensation to private individuals anddivergent surcey and valuation \nreport for the same property. \n15 \nUganda \nElectricity \nDistribution \nCompany-\nUEDCL \n2020/21 \n \nOpinion \n\uf0b7", "metadata": {"page": 263, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Opinion \n\uf0b7 \nOut of the total receipts for the financial year of UGX. 64.97Bn, a sum of \nUGX 63.38Bn was spent by the entity resulting in an unspent balance of \nUGX 1.52Bn representing absorption level of 97.6 %. \n\uf0b7 \nI noted un-reconciled receivables amount of UGX.70.1Bn resulting from \nthe withheld funds by UMEME from the Escrow Account in regard to \nunpaid government electricity bills by MDAs.", "metadata": {"page": 263, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "253 \n \nUnqualified \n \n\uf0b7 \nI noted power evacuation liability of UGX.15.29Bn, payable to UETCL. \nThis was due to power losses attributed to absence of transmission lines \nto evacuate electricity from PA Technical, Siti 1 and Arpe Power Plants, as \na result of wheeling power over a lower capacity and weaker distribution \nlines operated by UEDCL. \n\uf0b7 \nThe long outstanding receivable resulting from payment of former UEB \npension costs of UGX.38.6Bn by UEDCL which has never been paid back \nto the Company by MoFPED. \n\uf0b7 \nFailed to meet its targeted annual connection 37,293 of customers \nwhereby only 6,309 (16.9%) connections were made. \n\uf0b7 \nI noted that in the FY 2020/21, the approved energy loss target by the", "metadata": {"page": 264, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Electricity Regulatory Authority was at 20.1%. I however noted from the \nGrid Energy Reports submitted to ERA, that the Company was unable to \nmeet its target energy losses and most of its service territories registered \nan average of 32.7% power losses. \n\uf0b7 \nI noted non -compliance by the WENRECO to the terms of the Operation \nand Maintenance Agreement, such as provision of semi-annual reports on \nstatus of the assets, safe storage of UEDCL connection materials, \nparticipation in the physical network inspection, submission of asset \nmodifications register among others. \n\uf0b7 \nThe 62,944 poles leased to UMEME by UEDCL were damaged and \nrequired replacement which was not done contrary to the provisions of \nthe Lease Agreement. \n16 \nUganda National Oil \nCompany \n2020/21 \n \nOpinion \nUnqualified \n \n\uf0b7", "metadata": {"page": 264, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nOut of the total receipts for the financial year of UGX.34.4bn only UGX \n26.6bn was spent by the company, resulting in an unspent balance of \nUGX 7.8bn. This represents an absorption level of 77.3%. \n\uf0b7 \nI noted challenges of UNOC state Participation in the Oil and Gas \nIndustry. Whereas UNOC is drawing closer to the Final Investment \nDecision (FID) for each of the Projects, the Company faces challenges in \nfinancing the 15% stake in the East Africa Crude Oil Pipeline (EACOP), \n15% State Commercial Interest in the Upstream, and 40% in the Refinery \nProject. \n17 \nUganda Refinery Holding \nCompany Ltd \n2020/21 \n \nOpinion \nUnqualified \n \n\uf0b7", "metadata": {"page": 264, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nOut of a total of UGX 2.9bn received during the financial year, UGX.2.9bn \nwas spent by the Company. This represents an absorption level of 100%. \n\uf0b7 \nI noted delays in the development of the Kabaale Industrial Park. As at \n30th June 2021, implementation of infrastructure such as roads, power \nsupply, water supply and Information Communication Technology \nconnection had not yet commenced. \n\uf0b7 \nI noted delays in the implementation of the Refinery Project. As at 30th \nJune 2021, the refinery investor had not met the targets for some Project \nmilestones. Preliminary activities such as the Front End Engineering \nDesign were at 97%, Environmental Social Impact Assessment Study at \n70%, and procurement for the consultancy services for the Resettlement \nAction Plan was on-going. \n18 \nUganda Electricity \nTransmission Company \nLimited (UETCL) \n2020/21", "metadata": {"page": 264, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "2020/21 \n \nOpinion \nUnqualified \n \n\uf0b7 \nI noted that UETCL developed and approved a Corporate Business Plan \nwithout certification from the National Planning Authority. There is a risk \nthat activities implemented during the financial year 2020/2021 were not \naligned to the NDP-III, which negatively affects the achievement of NDP-\nIII objectives. \n\uf0b7 \nUETCL budgeted to receive UGX. 1.424Tn in Tariff and Non-Tariff \nrevenue out of which, UGX.1.338Tn was received resulting in a shortfall", "metadata": {"page": 264, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "254 \n \nof UGX 86Bn. Domestic energy sales were 9.5 % below budget. Both \nsales to Rwanda and DRC 29% below the budget, and no sales were \nmade to South Sudan despite the anticipated revenue of UGX.824 million. \n\uf0b7 \nUETCL budgeted to receive from Government, UGX.108.823Bn for \ncapacity charges and deemed energy costs. However, only UGX 36.4Bn \nwas released resulting in a shortfall of UGX 72.423Bn, which is 66% of \nthe budget. \n\uf0b7 \nI sampled 40 critical activities implemented under 7 sampled departments \nunder UETCL and noted that 17(43%) tasks had been fully implemented, \n13 (32%) were partially implemented, while 10 (25%) were not \nimplemented at all. \n\uf0b7 \nA provision for bad and doubtful debts amounting to UGX 161.4bn was", "metadata": {"page": 265, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "made under Trade and other receivables in the financial statements. This \nwas an increment of 25% from the financial year 2019/20. The provision \nrelates to customers with unpaid balances in contravention of the terms \nand conditions of the power sales agreement. I further noted that 74.7% \nof the provisions were attributable to only one Company. \n\uf0b7 \nAnalysis of the trade and other payables revealed an increment of 18.7Bn \nfrom UGX.740.8Bn in 2019/20. Included in these payables were amounts \nof UGX.71.2Bn and USD.4.7 million which have been outstanding for over \n10 years. \n\uf0b7 \nM/s UMEME and M/s UEDCL withheld UETCL revenue of UGX 64Bn and \n10.31Bn, respectively on account of evacuation losses and non-payment \nof electricity bills by Government MDAs. Withholding revenue constrains", "metadata": {"page": 265, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "UETCL\u2019s ability to pay electricity generators. \n\uf0b7 \nThe land titling process was not satisfactory on most of UETCL Projects. \nUETCL takes an average of 3 years to conclude the titling process in \ncontravention of the 6 months period warranted which exposes the \ncompany to a risk of litigation and potential encroachment. \n\uf0b7 \nUETCL incurred deemed energy costs of UGX 87.7Bn on thirteen (13) \nPPAs, save for me HPP were directly financed through the tariff system, \nhence impacting on the electricity price to the final consumer. \n\uf0b7 \nI noted that UETCL incurred about UGX 494,150,000 in replacing \nvandalized tower equipment during the year under review. I further noted \nthat the company incurred UGX. 1.6Bn in replacement costs on assorted \ntransmission line items vandalized between 2017 and 2021. \n\uf0b7", "metadata": {"page": 265, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nI noted delays in concluding the procurement process for a sample of \nprocurements with a total contract sum of UGX.17.8Bn with \nprocurements lasting an average of 3 years and some cases going up to 5 \nyears. Prolonged procurement processes deny timely achievement of \nintended project objectives. \n19 \nNational Pipeline Company \n2020/21 \n \nOpinion \nUnqualified \n \n\uf0b7 \nOut of the total receipts for the financial year of UGX.3.71Bn, UGX.3.71Bn \nwas utilized. This represents an absorption level of 100%. \n\uf0b7 \nI noted that the Company failed to maintain National Strategic Reserves. \nIn the period under review, the Consortium failed to meet the required \nNational Strategic Reserve levels of 12 million litres per month. Failure to \nrestock petroleum reserves exposes the Country to supply shocks and a", "metadata": {"page": 265, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "risk of inflated prices in the event of disruptions in the petroleum supplies \nchain. \n\uf0b7 \nI noted that as at 30th June 2021, the consortium had not developed the \nfacilities to enable lake transport to the Jinja Storage Tanks. The \nconstruction of an oil jetty and connecting pipeline to Jinja Storage Tanks", "metadata": {"page": 265, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "255 \n \nhad not commenced. \n\uf0b7 \nI noted delays in implementation of Kampala Storage Terminal (KST). As \nat 30th June 2021, Preliminary activities such as the Power Reticulation \nProposal and Environment Social Impact Assessment for the terminal \nwere undertaken However, Construction activities under the Project had \nnot commenced. \n20 \nRural Electrification Agency \n2020/21 \n \nOpinion \nUnqualified \n \n \n\uf0b7 \nOut of the budgeted government receipts for the financial year of \nUGX.155.23Bn, a sum of UGX. 149.26Bn was spent by the entity resulting \nin an unspent balance of UGX.5.97Bn, representing an absorption level of \n96%. \n\uf0b7 \nI noted outstanding cumulative arrears of revenue in respect to the 5%", "metadata": {"page": 266, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "levy fees due from UETCL amounting to UGX 96.13Bn and UGX.3.69Bn \narising from unpaid lease rental from various Service Territory Operators, \nrespectively. \n\uf0b7 \nThe Rural Electrification Agency had a contingent liability of UGX 19.73Bn \nin relation to way leaves cases not yet disposed of during the year under \nreview. I further noted that REA had UGX 3.29Bn as an outstanding \namount in Court awards due to delayed payment of retention, non-\npayment for work done, unlawful dismissal and non-renewal of \nemployment contracts \n\uf0b7 \nThe Agency had challenges in the implementation of the Electricity \nConnections Policy. As at 30th June 2021, out of the 97,000 annual \nplanned connections, only 3,683 (3.7%) connections were undertaken. \nSuch dismal performance is likely to fail the intended objectives of the \npolicy. \n\uf0b7", "metadata": {"page": 266, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "policy. \n\uf0b7 \nI noted that the entity had outstanding compensations to the landowners \nof Way leaves amounting to UGX 8.67Bn. This could lead to litigation. \n21 \nUganda \nEnergy \nCredit \nCapitalisation \nCompany \nLimited \n2020/21 \n \nOpinion \nUnqualified \n\uf0b7 \nNo material issue reported. \n\uf0b7 \n \n22 \nGrid Expansion and \nReinforcement Project \u2013 \nMEMD \n2020/21 \n \nOpinion \nUnqualified \n \n\uf0b7 \nOut of the total receipts for the financial year of USD.1,698,907.88, only \nUSD.1,030,144.30 was spent resulting into an unspent balance of", "metadata": {"page": 266, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "USD.654,938.58, representing an absorption level of only 60.6%. \n\uf0b7 \nI noted low funds disbursement over the Project Life. Out of the loan \nfunds of USD.3,500,000 over the 5-year life of the Project. As at 30th \nJune 2021 (4 years into implementation), only USD.1,965,000 (56%) had \nbeen released to the Project, of which USD.1,310,061.41 (67%) had been \nspent hence putting the overall loan absorption at 37% by 30th June \n2021. The Project is expected to close on 31st October 2022. \n\uf0b7 \nI noted that Planned Project activities such as development of a Power \nSector Integrated Plan had not commenced, while development of a \nNational Electrification Strategy and Environmental and Social monitoring \nand supervision were still in progress. \n23 \nThe \nFuel \nMarking \nand \nQuality Monitoring Program,", "metadata": {"page": 266, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Quality Monitoring Program, \nMinistry \nof \nEnergy \nand \nMineral Development \n\uf0b7 \nOut of the total receipts for the financial year of UGX.9.62Bn, a sum of \nUGX. 8.71Bn was spent representing 91% absorption level by the \nprogram. As a result activities such as Stakeholders\u2019 awareness", "metadata": {"page": 266, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "256 \n \n2020/21 \n \nOpinion \nUnqualified \n \nworkshops and Training on petroleum standard development were \npartially implemented. \n\uf0b7 \n \n\uf0b7 \nI noted non-compliance by fuel stations with the Standard that covers the \nsiting, design and construction of service stations, installation and \noperation of equipment in service stations for handling, storage and \ndispensing of petroleum products and their derivatives. \n\uf0b7 \nI noted that the Program does not have in place a comprehensive system \nof monitoring and testing the quality of lubricants and engine oils based \non the standards. This poses a risk to motorists who may purchase poor \nquality engine oils and lubricants. \n24 \nThe Ministry of Energy and \nMineral \nDevelopment \n(MEMD) \n2020/21 \n \nOpinion", "metadata": {"page": 267, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Opinion \nUnqualified \n \n \n\uf0b7 \nI noted in the year under review, that the entity did not have an \napproved sector development plan (strategic plan) 2020/21. The \nAccounting Officer explained that a strategic Plan was prepared and is \naligned to the NDP III, a however the approval of management delayed \ndue to management transition \n\uf0b7 \nThe Ministry budgeted to collect NTR of UGX.19.9Bn during the year \nunder review. Out of this, only UGX. 13Bn was realized, representing a \nperformance of 65.3% of the target. This was attributed to COVID \nPandemic that greatly affected businesses in the Country to extent that \nsome companies wrote requested for either a reduction or waiving off \ntheir rent arrears. \n\uf0b7 \nOut of the total warrants for the financial year of UGX.342.3Bn, a sum of", "metadata": {"page": 267, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "UGX.336.9Bn was spent by the entity resulting in an unspent balance of \nUGX.5.4Bn representing an absorption level of 98%. As a result, I noted \nthat of the 148 quantified activities worth UGX.99.3Bn assessed; 16 \nactivities representing 10.8% were fully implemented, 125 activities \nrepresenting 84.5% were partially implemented, while 7 activities \nrepresenting 4.7% were not implemented. \n\uf0b7 \nA trend analysis of the domestic arrears reported in Note 24 to the \nfinancial statements showed movement of domestic arrears from \nUGX.18.29Bn in the previous year to UGX.17.13Bn in the year under \nreview, a decrease of 7%. This unsustainable trend poses risks of \nlitigation and related costs inform of interest penalty. \n\uf0b7 \nThe Ministry received UGX.1.39Bn into the Mineral Royalties Sharing Fund", "metadata": {"page": 267, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "account during the period, in addition to the closing amount of \nUGX.442.07Mn from the previous period. However, only UGX.1.39Bn was \npaid leaving an outstanding balance of UGX.433.82Mn which has been \ncorrectly disclosed as payables as at year end. \n\uf0b7 \nThe receivables amount of UGX.14,287,738,002 in the statement of \nfinancial position and under Note 19, to the financial statements includes \nan amount UGX.4,494,005,610 receivables (UGX 4,288,550,000 and \nUGX.205,455,610 relating to annual mineral rent/royalties and sale of \ngoods and services, respectively) which has been outstanding for over \nfour years. \n\uf0b7 \nThe RAP implementation and land acquisition for the Karuma Reservoir \nArea project. The contract has been extended several times with the new", "metadata": {"page": 267, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "completion date set for 23rd June 2022. I established that a RAP survey \nand valuation report was submitted by the Consultant on 31st April 2021, \nbut, as at 30th June 2021, compensation of the PAPs had not yet \ncommenced. \n\uf0b7 \nA review of the Department of Geological Survey and Mines staff", "metadata": {"page": 267, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "257 \n \nestablishment revealed that out of 127 approved positions, only 85 \npositions were filled leaving 42 positions vacant representing a staffing \ngap of 33%. \n25 \nKilembe Mines Ltd (KML) \n2020/21 \n \nOpinion \nUnqualified \n \n\uf0b7 \nThe entity budgeted to receive UGX.3.574Bn out of which, UGX.857Mn \nwas realised, resulting in a shortfall of UGX.2.717Bn which is 76% of the \nbudget. As a result activities such as dewatering the Copper Mines and \nrevamping of Hima Lime Works, were not been implemented. \n\uf0b7 \n \n\uf0b7 \nI noted that a number of assets had been damaged / impaired due to \nwaters that broke the banks of River Nyamwamba on 7th and 10th of", "metadata": {"page": 268, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "May, 2020. However, no formal estimate of the recoverable amount has \nbeen conducted. This may result into an overstatement of the total assets \nand understatement of operating loss. \n\uf0b7 \nI noted that the Company had an outstanding receivable of UGX.1.26Bn \nas at 30th June 2021, 54% of the amount relates to unpain rent from \nTibet Hima Mining Co. Ltd. Delayed recovery of outstanding revenues \naffects the Company\u2019s liquidity position. \n\uf0b7 \nI noted that the Company had outstanding payables of UGX.2.28Bn. The \namount increased from UGX.0.966 to UGX.2.286Bn resulting into an \nincrease of UGX.1.321Bn (137%) as at 30th June 2021. \n\uf0b7 \nI noted delayed divesture of Kilembe Mines. Three (3) years have elapsed \nwithout an investor/operator being identified to take over Kilembe Mines", "metadata": {"page": 268, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "operations, following the termination of the Tibet Hima Concession \nAgreement. \n\uf0b7 \nEmergency Funding of UGX 4.375bn was required to rehabilitate the \ndamaged \nCompany \ninfrastructure \nfollowing \nflooding \nof \nrivers \nNyamambwa and Mubuku in May and August 2020. However, the \nrequested funds were not availed. \n\uf0b7 \nMubuku Hydro-Power Plant was designed to generate 5MW. I however \nnoted that the plant was only generating 2MW from Unit 1. Units 2 to 4 \nwere out of service for a number of years. \n\uf0b7 \nReview of the Annual Performance Report, 2021 revealed that the \nCompany had a number of long outstanding court cases, relating to \nencroachment of Land belonging to the company. Three cases had been \noutstanding for over 7 years, three other cases for 5 but less than 7 years", "metadata": {"page": 268, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "and six cases for less than 5 years. \n26 \nUganda \nElectricty \nGeneration \nCompany \nLimited Capacity Building \nProgram-Norwegian \nGrant \nUga-16/0010 Initial Support \nto UEGCL \u2013 2019 \n2020/21 \n \nOpinion \nUnqualified \n\uf0b7 \nOut \nof \nUGX.6,475,227,265 \nreceived \nfor \nproject \nactivities \nUGX.5,285,679,281 was utilized representing 82% absorption. The under \nabsorption was attributed to postponement of commissioning of Karuma \nHydro power plant. \n\uf0b7 \n \n27 \nAtomic Energy Council \n2020/21 \n \nOpinion \n\uf0b7", "metadata": {"page": 268, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Opinion \n\uf0b7 \nOut of the total receipts for the financial year of UGX. 13.98bn, UGX. \n9.96bn was spent by the entity resulting in an unspent balance of UGX \n4bn representing an absorption level of 71.2%. As a result, Six (6) \noutputs with thirty nine (39) activities worth UGX. 4.2Bn were partially", "metadata": {"page": 268, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "258 \n \nUnqualified \n \nimplemented. \n\uf0b7 \nI noted that the Council lacked of Radiation Protection and Safety \nLaboratories. There were no Laboratories in place for testing radioactivity \nlevels in food stuffs, construction materials and other consumable \nproducts that contain natural radionuclides. This puts the lives of the \ncommunity at risk. \n\uf0b7 \nI noted that the Council lacked adequate specialized inspection \nequipment required for various practices and activities that involved \nmanagement of radiation sources. \n\uf0b7 \nOut of Staff the Council Establishment of 90 positions, only 49 positions \nfilled leaving 21 positions vacant, representing a staff shortfall of 30%. \nThis affects the efficient and effective execution of the Council mandate. \n28 \nEnergy \nfor \nRural \nTransformation \nProject \n(ERT III)-PCU \n2020/21", "metadata": {"page": 269, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "2020/21 \n \nOpinion \nUnqualified \n \n\uf0b7 \nOut of the total available funds for the financial year of USD \n6,346,771.03, only USD 5,585,830.71 was spent by the Project, resulting \nin an unspent balance of USD. 760,940.32, representing absorption level \nof 88%. \n\uf0b7 \nI noted low disbursements of loan funds over the Project Life. Out of the \nERT III Project loan amount of USD 143.2 Million, only USD 94.5 Million \nhad been disbursed by the Bank to the respective components \nrepresenting an absorption level of 65% and yet the Project was left with \nsix (6) months to closure on 31 December 2021. \n\uf0b7 \nI noted that planned Project activities such as supply and installation of \nSolar Photovoltaic Energy Packages \u2013 in Schools under the Ministry of", "metadata": {"page": 269, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Education and Sports and Health Centers under Ministry of Health were \nnot implemented. This resulted into delayed electricity power access by \nthe selected schools and health centres. \n29 \nOpuyo- \nMoroto \n132kv \nTransmission Line Project - \n(UETCL) 2019 \n \nOpinion \nUnqualified \n \n \n\uf0b7 \nI noted that despite the project nearing completion, out of 1,300 PAPs, \nonly 1,222 had been compensated leaving a balance of 78 (6%) by 30th \nJune 2019. There is a risk that the outstanding compensation of PAPs \nmay further delay project implementation. \n\uf0b7 \nI noted that despite the loan last disbursement date being 28th February \n2021, only 21% of the total funds were disbursed to both UETCL and REA \nby 30th June 2019 \n30 \nOpuyo-", "metadata": {"page": 269, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Opuyo- \nMoroto \n132kv \nTransmission Line Project - \n(UETCL) 2020 \n \nOpinion \nUnqualified \n \n\uf0b7 \nI noted under Note 9.13 that the project payables increased from \nUSD.1,169,371 (2019) to USD. 2,290,568 (2020) due to non payments of \nservice providers at the end of the financial year for the services \nprovided. \n \n31 \nThe 132kv Mirama-Kabale \nTransmission \nLine \nand \nDistribution Project-2019 \n \nOpinion \nUnqualified \n \n\uf0b7 \nNo significant matters to report on.", "metadata": {"page": 269, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "259 \n \n32 \nThe 132kv Mirama-Kabale \nTransmission \nLine \nAnd \nDistribution Project-2020 \n \nOpinion \nUnqualified \n \n\uf0b7 \nNo significant matters to report on. \n \n33 \nEnergy \nfor \nRural \nTransformation \nIII \nImplemented \nby \nUganda \nEnergy Credit Capitalization \nCompany Limited (ERT III- \nUECCCL) \n \nOpinion \nUnqualified \n \n\uf0b7 \nNo material issue reported. \n \n34 \nEnergy \nfor \nRural \nTransformation \nIII \nBOU \nProject (ERT III).", "metadata": {"page": 270, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Opinion \nUnqualified \n\uf0b7 \nNo material findings to report on \n \nEDUCATION SECTOR \n \n1 \nAfrican Centre for Agro \necology and Livelihood \nSystems (ACALISE) Project \n\u2013 UMU \n2020/21 \n \nOpinion \nUnqualified \n \n\uf0b7 \nI noted in the statement of income and expenditure that out of budgeted \ntotal revenue of USD 1,807,602 for the financial year 2020/2021, only \nUSD 610,980 (33.8%) was realized leading to a budget shortfall of USD \n1,196,622. \n\uf0b7 \nI noted that out of the available funds amounting to USD 1,165,530 \n(current year receipt of USD 610,980 and the balance brought forward of \nUSD 554,550) for the project operations for the financial year, only USD", "metadata": {"page": 270, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "1,054,538 was spent, leaving an unspent balance of USD 110,992. This \nrepresents approximately 90% absorption rate. \n2 \nSoroti University. \n2020/21 \n \nOpinion \nUnqualified \n\uf0b7 \nI noted that the University did not indicate NTR estimates in its statement \nof Appropriation. How out of the budgeted NTR of UGX.706,000,000 for \nthe \nfinancial \nyear \n2020/2021, \nUGX.195,985,600 \nwas \ncollected \nrepresenting a performance of 28% of the target. \n\uf0b7 \nThe \nentity \nbudgeted \nto \nreceive \nUGX.20.229Bn \nout \nof \nwhich", "metadata": {"page": 270, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "of \nwhich \nUGX.19.621Bn was warranted, resulting into a shortfall of UGX.0.608 Bn \nwhich is 3% of the budget. \n\uf0b7 \nI noted the University received off-budget financing to the tune of \nUGX.36,710,266 which was not transferred to the consolidated fund as \nrequired by the law. \n\uf0b7 \nOut of the total receipts (warrants) for the financial year of \nUGX.19.621Bn, UGX.17.484Bn was spent by the entity resulting into an \nunder absorption of UGX.2.137Bn representing an absorption level of \n89%. \n\uf0b7 \nTen (10) outputs with a total of ninety-nine (99) activities and", "metadata": {"page": 270, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "260 \n \nexpenditure worth UGX 10.251Bn were fully quantified while one (1) \noutput with a total of four (4) activities and expenditure worth UGX \n1.898Bn was not quantified to enable assessment of performance as \nthere was no output that was insufficiently quantified. \n\uf0b7 \nOut of the ten (10) out puts that were fully quantified, one (1) output \nwith a total of 6 (six) activities worth UGX.0.051Bn was fully implemented \nwhile 9(nine) outputs with a total of ninety-three (93) activities worth \nUGX.10.201Bn were partially implemented. \n\uf0b7 \nThe University closed the financial year with an accumulated payable \ntotaling to UGX.2,604,379,429 of which UGX.559,049,780 had been \noutstanding for more than one year. \n\uf0b7", "metadata": {"page": 271, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nThe University paid a contractor UGX.996,389,960 in respect of \noutstanding debt that included UGX.188,055,690 relating to accrued \ninterest charged by the contractor as a result of delayed payments. The \ninterest expenditure was nugatory \n3 \nBusitema University. \n2020/21 \n \nOpinion \nUnqualified \n\uf0b7 \nOut of the budgeted Non tax revenue of UGX.6,517,061,618 for the year \n2020/21, \nonly \nUGX.4,904,767,921 \nwas \ncollected \nrepresenting \na \nperformance of only 75% of the target. \n\uf0b7 \nThere was a shortfall in releases amounting to UGX4.63Bn which is 9% of", "metadata": {"page": 271, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "the budget. Furthermore, the entity remained with unspent balance of \nUGX.1.60Bn representing an absorption level of 97%. \n\uf0b7 \nThe \nUniversity \nreceived \noff-budget \nfinancing \nto \nthe \ntune \nof \nUGX.1,462,363,950 which was not transferred to the consolidated fund as \nrequired by the law. These funds were received directly from \ndevelopment partners for undertaking activities which were not budgeted \nfor. \n\uf0b7 \nNine (9) outputs with 73 activities worth UGX.33.34Bn were insufficiently \nquantified. That is out of the Seventy-three (73) activities, twelve (12) \nactivities (16%) were not clearly quantified. Two (2) outputs with a total \nof eight (8) activities worth UGX.8.52Bn were fully implemented while", "metadata": {"page": 271, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "two (2) outputs with a total of fifteen (15) activities worth UGX3.46Bn \nwere partially implemented. \n\uf0b7 \nI noted that the University closed the financial year with outstanding \npayables to the tune of UGX.1,504,842,864 of which UGX.1,421,201,933 \nrelated to unpaid enhanced salaries for administrative and support staff \nthat accrued in the financial year 2016/17. \n4 \nGulu University. \n2020/21 \n \nOpinion \nUnqualified \n\uf0b7 \nI noted that the University\u2019s strategic plan was not certified by NPA and \nno feedback had been received by the time of concluding the audit. This \nwas attributed to delays in the review and certification process by NPA. \n\uf0b7 \nI reviewed the NTR estimates, revenue sources and rates charged at vote \nlevel for the financial year 2020/2021 and noted that the entity budgeted", "metadata": {"page": 271, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "to collect NTR of UGX.12.75Bn during the year under review. Out of this, \nUGX.4.18Bn was collected, representing a performance of 32.8% of the \ntarget. The entity budgeted to receive UGX. 58.88Bn from treasury, out \nof which UGX.57.90Bn was warranted, resulting into a shortfall of \nUGX.0.98Bn which is 1.7% of the budget. \n\uf0b7 \nOut of the total warrants of UGX 58.11Bn received during the financial \nyear, UGX. 57.90bn was spent by the entity resulting in an unspent \nbalance of UGX 0.21Bn, representing an absorption level of 99.6%. The \nunspent balance at the end of the financial year was subsequently swept \nback to the consolidated fund account as required by the PFMA.", "metadata": {"page": 271, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "261 \n \n\uf0b7 \nThe \nUniversity \nreceived \noff-budget \nfinancing \nto \nthe \ntune \nof \nUGX.6,255,990,597 which was not declared to Treasury and, therefore, \nnot appropriated to the entity by Parliament. These funds were received \ndirectly from development partners for undertaking activities not \nbudgeted for. \n\uf0b7 \nI reviewed the extent of quantification of outputs and activities for a \nsample of the ten (10) outputs with a total of twenty (20) activities and \nexpenditure of UGX.45.556Bn and noted that seven (7) outputs with a \ntotal of twelve (12) activities and expenditure worth 43.284bn were fully \nquantified while three (3) outputs with a total of eight (8) activities and", "metadata": {"page": 272, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "expenditure worth UGX. 2.871bn were not quantified at all. \n\uf0b7 \nI assessed the implementation of seven (7) out puts that were fully \nquantified with a total of twelve (12) activities worth UGX.43.282Bn and \nnoted that three (3) outputs with a total of six (6) activities worth \nUGX.37.054Bn were fully implemented. Two (2) outputs with a total of \nfour (4) activities worth UGX,5.706Bn were partially implemented while \ntwo (2) outputs with a total of two (2) activities worth UGX. 0.522Bn \nwere not implemented. \n\uf0b7 \nThe University had outstanding domestic arrears of UGX.5,681,315,557 \ndating as far back as financial year 2015/16. There is a risk that the \nUniversity could face litigation from the suppliers and other beneficiaries. \n\uf0b7", "metadata": {"page": 272, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nGulu University is involved in several court cases and some of the cases \nremained pending at the financial year end. The cases are mostly \nbetween the University and its former staff, students and suppliers. The \ncases arose mainly from unlawful termination, breach of contracts, unfair \ntreatment, land issues, Arrears/failure to pay suppliers. \n\uf0b7 \nGulu University awarded a contract for the supply and installation of \nNetwork Equipment to the Faculty of Agriculture, Biometric Equipment for \nStaff attendance, Laptops and Desktops for Vice Chancellor, Director ICT \nand Director Planning & Development at a contract price of \nUGX.181,794,897 on the 25th June, 2021. However, as at the time of \nconcluding the audit, installation was not undertaken. \n\uf0b7 \nGulu University signed a contract for the construction of the Business and \nDevelopment Centre on the 19th June, 2019 for a contract price of", "metadata": {"page": 272, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "UGX.30,122,043,772. The construction start date was 1st August, 2019 \nand the expected completion date of 30th July, 2023. I noted that only \nUGX.2.1Bn out of UGX.6.0Bn was paid as advance for mobilization and \nthis led to the temporary stoppage of works by the contractor which led \nto slow progress of the building works. At the time of concluding the \naudit, no major works were undergoing. \n\uf0b7 \nI noted that the following University pieces of land were not titled; forest \nland measuring 28 hectares, Pajengo Latoro; Agago and Agora Pader \nland. There is a risk that the land in question could be lost to \nunscrupulous individuals. \n\uf0b7 \nOut of the 1,606 approved positions in Gulu University; only 441 (27%) \nposts were filled, leaving 1,165 (73%) positions vacant. \n5 \nThe", "metadata": {"page": 272, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "5 \nThe \nHigher \nEducation \nStudents' Financing Board \n(HESFB) \n2020/21 \n \nOpinion \nUnqualified \n\uf0b7 \nI noted that the University\u2019s strategic plan was not certified by NPA and \nno feedback had been received by the time of concluding the audit. This \nwas attributed to delays in the review and certification process by NPA. \n\uf0b7 \nI reviewed the NTR estimates, revenue sources and rates charged at vote \nlevel for the financial year 2020/2021 and noted that the entity budgeted \nto collect NTR of UGX.12.75Bn during the year under review. Out of this, \nUGX.4.18Bn was collected, representing a performance of 32.8% of the", "metadata": {"page": 272, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "262 \n \ntarget. The entity budgeted to receive UGX. 58.88Bn from treasury, out \nof which UGX.57.90Bn was warranted, resulting into a shortfall of \nUGX.0.98Bn which is 1.7% of the budget. \n\uf0b7 \nOut of the total warrants of UGX 58.11Bn received during the financial \nyear, UGX. 57.90bn was spent by the entity resulting in an unspent \nbalance of UGX 0.21Bn, representing an absorption level of 99.6%. The \nunspent balance at the end of the financial year was subsequently swept \nback to the consolidated fund account as required by the PFMA. \n\uf0b7 \nThe \nUniversity \nreceived \noff-budget \nfinancing \nto \nthe \ntune \nof", "metadata": {"page": 273, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "tune \nof \nUGX.6,255,990,597 which was not declared to Treasury and, therefore, \nnot appropriated to the entity by Parliament. These funds were received \ndirectly from development partners for undertaking activities not \nbudgeted for. \n\uf0b7 \nI reviewed the extent of quantification of outputs and activities for a \nsample of the ten (10) outputs with a total of twenty (20) activities and \nexpenditure of UGX.45.556Bn and noted that seven (7) outputs with a \ntotal of twelve (12) activities and expenditure worth 43.284bn were fully \nquantified while three (3) outputs with a total of eight (8) activities and \nexpenditure worth UGX. 2.871bn were not quantified at all. \n\uf0b7 \nI assessed the implementation of seven (7) out puts that were fully \nquantified with a total of twelve (12) activities worth UGX.43.282Bn and", "metadata": {"page": 273, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "noted that three (3) outputs with a total of six (6) activities worth \nUGX.37.054Bn were fully implemented. Two (2) outputs with a total of \nfour (4) activities worth UGX,5.706Bn were partially implemented while \ntwo (2) outputs with a total of two (2) activities worth UGX. 0.522Bn \nwere not implemented. \n\uf0b7 \nThe University had outstanding domestic arrears of UGX.5,681,315,557 \ndating as far back as financial year 2015/16. There is a risk that the \nUniversity could face litigation from the suppliers and other beneficiaries. \n\uf0b7 \nGulu University is involved in several court cases and some of the cases \nremained pending at the financial year end. The cases are mostly \nbetween the University and its former staff, students and suppliers. The \ncases arose mainly from unlawful termination, breach of contracts, unfair", "metadata": {"page": 273, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "treatment, land issues, Arrears/failure to pay suppliers. \n\uf0b7 \nGulu University awarded a contract for the supply and installation of \nNetwork Equipment to the Faculty of Agriculture, Biometric Equipment for \nStaff attendance, Laptops and Desktops for Vice Chancellor, Director ICT \nand Director Planning & Development at a contract price of \nUGX.181,794,897 on the 25th June, 2021. However, as at the time of \nconcluding the audit, installation was not undertaken. \n\uf0b7 \nGulu University signed a contract for the construction of the Business and \nDevelopment Centre on the 19th June, 2019 for a contract price of \nUGX.30,122,043,772. The construction start date was 1st August, 2019 \nand the expected completion date of 30th July, 2023. I noted that only \nUGX.2.1Bn out of UGX.6.0Bn was paid as advance for mobilization and", "metadata": {"page": 273, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "this led to the temporary stoppage of works by the contractor which led \nto slow progress of the building works. At the time of concluding the \naudit, no major works were undergoing. \n\uf0b7 \nI noted that the following University pieces of land were not titled; forest \nland measuring 28 hectares, Pajengo Latoro; Agago and Agora Pader \nland. There is a risk that the land in question could be lost to \nunscrupulous individuals. \n\uf0b7 \nOut of the 1,606 approved positions in Gulu University; only 441 (27%)", "metadata": {"page": 273, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "263 \n \nposts were filled, leaving 1,165 (73%) positions vacant. \n6 \nKabale University. \n2020/21 \n \nOpinion \nUnqualified \n\uf0b7 \nI noted that the University prepared a strategic plan aligned to NDP III \nand the plan was approved by NPA and a certificate of approval issued. \n\uf0b7 \nOut of budgeted NTR collections of UGX.7.6 Bn, only UGX. 5.26Bn was \nrealized, representing a performance of 74.6 % of the target. \n\uf0b7 \nThere was a shortfall in government releases amounting to UGX.0.03Bn \nrepresenting 0.08% of the budget. \n\uf0b7 \nOut of the total receipts for the financial year of UGX.40.95 Bn a sum of \nUGX. 40.5 Bn was spent by the entity resulting in an unspent balance of", "metadata": {"page": 274, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "UGX 0.45Bn representing an absorption level of 99%. \n\uf0b7 \nI sampled 5 outputs of a total of Nine (9) outputs and expenditure worth \n37.22.Bn and noted that two (2) outputs with a total of three (3) \nactivities was fully quantified; three (3) outputs with thirteen (13) \nactivities were partially quantified while two (2) activities were not \nimplemented. \n\uf0b7 \nThe university accumulated receivables totalling to UGX.3,114,950,156 as \nat 30/6/2021. Under collection of billed revenue cripples, the University\u2019s \nability to meet its financial obligations and impacts negatively on service \ndelivery. \n\uf0b7 \nI noted the University had outstanding payables of UGX.1,872,390,164 as \nat 30/6/2021. The failure to clear payables by the closure of the financial", "metadata": {"page": 274, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "year may attract litigation resulting into wasteful expenditure in form of \nlegal fees. \n7 \nLira University. \n2020/21 \n \nOpinion \nUnqualified \n\uf0b7 \nThe entity submitted its final copy of the strategic plan to National \nPlanning Authority (NPA) for alignment and certification however, no \nfeedback had been received by the entity at the time of audit (September \n2021). \n\uf0b7 \nI reviewed the NTR estimates, revenue sources and rates charged at vote \nlevel for the financial year 2020/2021 and noted that the entity budgeted \nto collect NTR of UGX 4.948Bn during the year. Out of this, only UGX \n1.918Bn was collected, representing a performance of 38.8% of the \ntarget. In addition, the University budgeted to receive UGX 27.808Bn out", "metadata": {"page": 274, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "of which UGX.27.118Bn was warranted/availed resulting in a shortfall of \nUGX.0.698Bn which is 2.5% of the budget. \n\uf0b7 \nOut of the total warrants of UGX.27.118Bn received during the financial \nyear, UGX 25.796Bn was spent by the entity resulting in an unspent \nbalance of UGX.1.322Bn representing an absorption level of 95%. The \nunspent balance at the end of the financial year was subsequently swept \nback to the consolidated fund as required by the PFMA. \n\uf0b7 \nThe \nUniversity \nreceived \noff-budget \nfinancing \nto \nthe \ntune \nof \nUGX.836,710,490 which was not declared to the Treasury and, therefore, \nnot appropriated to the entity by Parliament. These funds were received", "metadata": {"page": 274, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "directly from development partners for undertaking activities not \nbudgeted for. \n\uf0b7 \nI reviewed the extent of quantification of outputs and activities for a \nsample of seven (7) outputs with a total of seventeen (17) activities and \nexpenditure of UGX.22.003Bn and noted that five (5) outputs with a total \nof six (6) activities and expenditure worth UGX.5.3Bn were fully \nquantified while two (2) outputs with a total of eleven (11) activities and \nexpenditure worth UGX 16.703Bn were insufficiently quantified. \n\uf0b7 \nI assessed the implementation of five (5) outputs that were fully", "metadata": {"page": 274, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "264 \n \nquantified with a total of six (6) activities worth UGX.5.3Bn and noted \nthat two (2) outputs with two (2) activities worth UGX.0.3Bn were fully \nimplemented while three (3) outputs with four (4) activities worth \nUGX.5Bn were partially implemented. \n\uf0b7 \nDuring the year, the University incurred nugatory expenditure totalling to \nUGX.25,752,041 being interest and penalties paid resulting from \nmanagement\u2019s failure to deduct and remit NSSF deductions for the period \nAugust 2016 to June 2020. \n\uf0b7 \nI noted that Lira University signed a tenancy agreement with the Law \nDevelopment Centre letting out the first floor of the faculty of Education \nto LDC at a consideration of UGX.15,300,000 per month inclusive of taxes \nimplying that the University is making a monthly financial loss of", "metadata": {"page": 275, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "UGX.2,754,000 in form of VAT payable to URA. As a result, the university \ndid not remit VAT totalling to UGX. UGX.33,048,000 being VAT payable \non rental income to URA on the annual rental income of UGX.183,600,000 \n(UGX.15,300,000 for 12 months) received by the University. \n\uf0b7 \nI noted a delayed construction of the Administration Block following a \ncontract award of UGX.16,664,107,531 to the construction contractor. \nDespite the expiry of the contract duration of the three years to 11th \nSeptember 2021, the construction works had not been completed, and \nthe progress of works was estimated at 32% level. However, the \nsupervising contractor had been paid 92% on his contract of \nUGX.749,885,000 ending 4th February 2022. \n8 \nMAK Holdings.", "metadata": {"page": 275, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "MAK Holdings. \n2020/21 \n \nOpinion \nUnqualified \n\uf0b7 \nI noted that the Company management budgeted to receive and \ngenerate revenue of UGX.1,892,600,000 however, only UGX.809,760,761 \n(43%) \nwas \nrealized \nreflecting \nan \nunderperformance \nof \nUGX.1,082,839,239 which is 57% of the expected revenue for the year. \n\uf0b7 \nThe Makerere University Guest house had accumulated creditors to the \ntune of UGX.620,024,827 from UGX.405,138,535 in the financial year \nended 30th June, 2020 representing a 53% increase in liabilities. Some of \nthe \noutstanding \nliabilities \ninclude \nstatutory \npayments", "metadata": {"page": 275, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "statutory \npayments \nworth \nUGX.240,026,071 \n\uf0b7 \nI noted an increase in receivables of UGX.299,307,621 from \nUGX.271,978,943 reported in the prior year. \n9 \nMapronano World Bank \nProject. \n2020/21 \n \nOpinion \nUnqualified \n\uf0b7 \nI noted that out of the released USD 1,995,561, only USD 1,357,190 was \nspent by the Project resulting into unspent balance of USD 638,371 \nrepresenting an under absorption level of 31.98%. The unspent balance \nat the end of the financial year was subsequently carried forward to the \nnext financial year. \n\uf0b7 \nI assessed the implementation of the six (6) out puts with 24 activities", "metadata": {"page": 275, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "that were fully quantified worth USD 2,210,000. Two (2) outputs with two \n(2) activities worth US$ 171,393 were fully implemented. Four (4) \noutputs with a total of twenty two (22) activities worth US$ 1,185,795 \nhad 11 activities fully implemented, 9 activities partially implemented, and \n4 activities were not implemented. \n10 \nMaRCCI World bank Project. \n2020/21 \n \nOpinion \nUnqualified \n\uf0b7 \nI assessed the implementation of the eight (8) out puts with 42 activities \nthat were fully quantified worth US$ $907,282.93, and noted that one (1) \noutput with two (2) activities worth US$ 27,600 was fully implemented \nwhile seven (7) outputs with a total of forty (40) activities worth US$ \n879,681.93 were partially/not-implemented. The project management \nimplemented sixteen (16) activities fully, eighteen (18) activities partially \nand six (6) activities were not implemented.", "metadata": {"page": 275, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "265 \n \n\uf0b7 \nI noted that the project did not pay staff salaries to the tune of USD \n13,596 (approximately UGX.50,305,2000. In addition, PAYE withheld \nfrom staff deductions for the months of October and November, 2020 \ntotaling to USD. 11,764 (approximately UGX.43,526,800) was not \nremitted to Uganda Revenue Authority as per regulations. \n11 \nManagement Training and \nAdvisory Centre (MTAC). \n2020/21 \n \nOpinion \nUnqualified \n\uf0b7 \nThe MTAC had not prepared the required 5-year strategic plan that is in \nline with the NDPIII \n\uf0b7 \nOut of the budgeted NTR of UGX.2.15Bn for the financial year \n2020/2021, \na \nsum \nof", "metadata": {"page": 276, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "sum \nof \nUGX.2.06Bn \nwas \ncollected \nrepresenting \nperformance of 96% of the target. \n\uf0b7 \nOut of the total receipts for the financial year of UGX.5.19Bn, a sum of \nUGX.3.78Bn was spent by the Centre resulting into unspent balance of \nUGX.1.41Bn representing an absorption level of 73%. \n\uf0b7 \nOne (1) output with a total of two (2) activities worth UGX.1.25Bn was \npartially implemented. Out of the two (2) activities, the entity fully \nimplemented one (1) activity (50%), the entity did not implement one (1) \nactivity (50%). \n\uf0b7 \nThough total liabilities decreased by 12%, a review of the age analysis of", "metadata": {"page": 276, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "the payables revealed that a liability totalling to UGX.634,986,966 (79%) \nhas been outstanding for more than one year \n\uf0b7 \nI observed that MTAC has operated without the Governing Council since \n2015 \n\uf0b7 \nOut of 72 posts of the newly implemented MTAC staff establishment, only \n54 (75%) were filled leaving 18 (25%) vacancies. Among the vacant \nposts were key positions of the Executive Director, Director Finance and \nAdministration and Manager-Human resources and Administration. \n12 \nMakerere University. \n2020/21 \n \nOpinion \nUnqualified \n\uf0b7 \nI noted that the University did not have the strategic plan annualized to \nindicate which outputs are expected for each year of implementation of \nthe plan covering the period of 2021/21-2024/25. I also noted that \nwhereas the University had prepared and submitted its strategic plan to", "metadata": {"page": 276, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "NPA for approval, it had not yet been approved at the time of audit in \nOctober 2021. \n\uf0b7 \nI reviewed the NTR estimates, revenue sources and rates charged at vote \nlevel for the financial year 2021/2021 and noted that the University \nbudgeted to collect NTR of UGX.95.84Bn during the year under review. \nOut of this, only UGX.58.29Bn was collected, representing a performance \nof 60.82% of the target. I further noted that the University budgeted to \nreceive UGX.363.74Bn out of which UGX.359.86Bn was warranted, \nresulting in a shortfall of UGX.3.88Bn which is 1.1% of the budget. \nRevenue shortfalls affect implementation of the planned activities. \n\uf0b7 \nOut of the total warrants of UGX.359.86Bn received during the financial", "metadata": {"page": 276, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "year, UGX.357.04Bn was spent by the entity resulting in an unspent \nbalance of UGX.2.82Bn representing an absorption level of 99.2%. The \nunspent funds were swept back to the consolidated fund as required by \nPFMA. \n\uf0b7 \nI noted that the University received off-budget financing to the tune of \nUGX.237,398,885,878 which was not declared to Treasury and, therefore, \nnot appropriated to the entity by Parliament. These funds were received \ndirectly from both development partners and other stakeholders for \nundertaking activities not budgeted for. \n\uf0b7 \nI reviewed the extent of quantification of outputs and activities for a", "metadata": {"page": 276, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "266 \n \nsample of ten (10) outputs with a total of forty two (42) activities and \nexpenditure of UGX.356.85Bn and noted that two (2) outputs with a total \nof seven (7) activities and expenditure worth UGX.265.85Bn were fully \nquantified. Two (2) outputs with a total of twenty-five (25) activities and \nexpenditure worth UGX.30.11Bn were insufficiently quantified while six \n(6) outputs with a total of ten (10) activities and expenditure worth \nUGX.60.89Bn were not quantified at all. I observed that in cases where \noutputs were either partially or not quantified, management reported \nperformance in generic ways. \n\uf0b7 \nI assessed implementation of two (2) out puts that were fully quantified \nwith a sample of seven (7) activities worth UGX.265.85Bn and noted that", "metadata": {"page": 277, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "one (1) output with a total of three (3) activities worth UGX 4.06Bn was \nfully implemented while one (1) output with a total of four (4) activities \nworth UGX.261.78Bn were partially implemented. \n\uf0b7 \nDuring the financial year under review, the University lost its main \nadministration building and other assets therein to a fire that gutted the \nmain administration Block on the 20th day of September 2020. The fire \ncaused substantial damage to the main building whose value was \nestimated at UGX.15,434,782,500 by the Chief Government Valuer. \n\uf0b7 \nThe Statement of reported losses of Public moneys, stores and other \nassets during the year showed the reported losses of assets/property of \ntotal estimated value of UGX.16,457,577,500. \n\uf0b7 \nThe University had a receivables balance of UGX.25,527,015,916 as at", "metadata": {"page": 277, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "30/6/2021 broken down as accrued income of UGX.23,372,851,776 and a \nprepayment of UGX.2,154,164,140 to UMEME for electricity bulk \npurchase. The accumulation of receivables may lead to under \nperformance of the university on its planned activities. \n\uf0b7 \nThe \nUniversity \nhas \nan \noutstanding \npension \nliability \nof \nUGX.18,920,219,207, inclusive of interest as reported in the Statement of \nFinancial Position for the year ended 30th June 2021 resulting from \naccumulation of In-House Retirement Benefits since 2010. Delayed \npayment of retirement benefits may result in nugatory expenditure if the \nretirees decide to take the University to court. \n\uf0b7 \nThe Statement of Financial Position showed accumulation of domestic", "metadata": {"page": 277, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "arrears of UGX.7,819,385,752 as at 30th June 2021. I noted that majority \nof these arrears were from the prior years. There is a risk that the \nUniversity could face litigation from the suppliers and other beneficiaries. \n\uf0b7 \nI noted that the main University installations/buildings such as the \nSenate, the Library, School of Women and Gender Studies and others are \nnot comprehensibly insured. In case of a catastrophe, the University is at \nrisk of huge financial obligations to the tenants. \n\uf0b7 \nI noted that there are non-qualifying persons occupying the University \nbuildings. These were identified to be former University staff (retirees), \nunknown persons and Uganda Police Officers whose services were \ntransferred from Makerere University. \n\uf0b7 \nI noted that water bills for the year under review were neither read nor \nsubmitted to the finance department for deductions. I noted that staff", "metadata": {"page": 277, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "salaries were arbitrarily deducted to clear their water consumption \nwithout following one\u2019s monthly water consumption. \n\uf0b7 \nThe University owns various pieces of land totalling to 102 Acres in prime \nlocations around Kampala including Makerere, Mulago and Makindye. \nInspection of the land revealed that the land is heavily encroached upon \nand a number of cases have been in court for more than five (5) years.", "metadata": {"page": 277, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "267 \n \n\uf0b7 \nA review of the Land register revealed that the University owns land in \nKibaale and Makerere Hill. It was however noted that the university had \nnot secured certificate of titles confirming ownership of the two (2) pieces \nof land. \n\uf0b7 \nA review of the staff establishment at the directorates and Colleges \nrevealed an overall staffing gap of 915 positions, which is 44.9 % of the \napproved establishment. The understaffing was mainly at the Associate \nProfessor level and Professor level. It was further noted that most of the \nstaff at lecturer and senior lecturer level had adequate qualifications but \nhad not been promoted. \n13 \nMuni University. \n2020/21 \n \nOpinion \nUnqualified \n\uf0b7 \nI reviewed the NTR estimates, revenue sources and rates charged at vote \nlevel for the financial year 2020/2021 and noted that Muni University", "metadata": {"page": 278, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "budgeted to collect NTR of UGX.1.18bn during the year under review. Out \nof this, only UGX.0.34bn was collected, representing a performance of \n29% of the target. \n\uf0b7 \nI further noted that the University budgeted to receive UGX.22.60Bn from \ntreasury out of which UGX.21.28Bn was availed, resulting in a shortfall of \nUGX.1.32Bn which is 5.8% of the budget. \n\uf0b7 \nOut of the total warrants of UGX.21.280Bn received during the financial \nyear, UGX.19.982Bn was spent by the entity resulting in an unspent \nbalance of UGX.1.298Bn representing an absorption level of 93.9%. The \nunspent funds were swept back to the consolidated fund as required by \nthe PFMA. \n\uf0b7 \nThe \nUniversity \nreceived", "metadata": {"page": 278, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "University \nreceived \noff-budget \nfinancing \nto \nthe \ntune \nof \nUGX.584,396,093 which was not declared to treasury and, therefore, not \nappropriated to the entity by Parliament. These funds were received \ndirectly from development partners for undertaking activities not \nbudgeted for. \n\uf0b7 \nI reviewed the extent of quantification of outputs and activities for a \nsample of ten (10) outputs with a total of fifty-nine (59) activities and \nexpenditure of UGX.18.9Bn and noted that five (5) outputs with a total of \ntwenty-two (22) activities and expenditure worth UGX.6.47Bn were fully \nquantified. Two (2) outputs with a total of thirty-three (33) activities and \nexpenditure worth UGX.10.29Bn were insufficiently quantified. While", "metadata": {"page": 278, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "three (3) outputs with a total of four (4) activities and expenditure worth \nUGX 2.14Bn were not quantified at all. \n\uf0b7 \nI assessed the implementation of five (5) out puts that were fully \nquantified with a total of twenty-two (22) activities worth UGX6.47Bn and \nnoted that three (3) outputs with a total of ten (10) activities worth \nUGX.0.640Bn were fully implemented while two (2) outputs with a total \nof twelve (12) activities worth UGX.5.83Bn were partially implemented. \n\uf0b7 \nThe University spent a sum of UGX.265,775,722 on payment of gratuity \nexpenses during the year against the approved budget and release of \nonly UGX.52,000,000. Payment of gratuity expenses beyond the \nappropriated and warranted funds is an indication of budget indiscipline \nand leads to diversion of funds.", "metadata": {"page": 278, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "and leads to diversion of funds. \n\uf0b7 \nThe laboratory equipment that included the PCR machine, the high-\ncapacity Fridge for preserving the laboratory specimens, the PCR \nworkstation and many others supplied by the ADB HEST Project last year, \nhad not been put to use due to power challenges. This defeats the \npurpose for which the equipment was supplied. \n\uf0b7 \nMuni University Capacity Building Centre (MUCBC);- Dormitory (Hostels), \nDining Hall, Lecture Block, Conference Hall, Office Block, 6 Stance VIP", "metadata": {"page": 278, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "268 \n \nLatrine and Store have deteriorated and in dire need of renovation. \n\uf0b7 \nThe University\u2019s land in BidiBidi measuring about 439.58 acres valued at \nUGX.439,580,000 did not have a land title. \n\uf0b7 \nMuni University entered into a contract for the Completion of the \nConstruction of Health Science Laboratory Building at a contract price of \nUGX.9,393,202,823 inclusive of taxes. However, works were significantly \nbehind schedule at an estimated 36% completion. There is a risk that the \nProject may not be completed within the projected time frame. \n14 \nMbarara University of \nScience & Technology. \n2020/21 \n \nOpinion \nUnqualified \n\uf0b7 \nI noted that the University had NTR estimates of UGX.12.43Bn out of", "metadata": {"page": 279, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "which UGX.9.28Bn was collected representing 75% of the budget. \n\uf0b7 \nI noted that out of the total receipts for the financial year of UGX.55.4Bn, \nonly UGX.51.4Bn was spent by the entity resulting in an unspent balance \nof UGX.4Bn representing an absorption level of 92.9%. \n\uf0b7 \nI noted that the University received off-budget financing to the tune of \nUGX.9.2Bn which was not transferred to the consolidated fund as \nrequired by the law. \n\uf0b7 \nI noted that nine (9) outputs with a total of twenty-two (22) activities and \nexpenditure worth 42.9Bn were fully quantified. That is, 99% of the \nactivities within these out-puts were clearly quantified to enable \nassessment of performance. \n\uf0b7 \nI noted that one (1) output with a total of three (3) activities and", "metadata": {"page": 279, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "expenditure worth UGX 0.47Bn was insufficiently quantified. That is, the \ntwo (2) activities of the three sampled (67%) of the output was not \nclearly quantified to enable assessment of performance. \n\uf0b7 \nI noted that one (1) output with one activity worth UGX.0.05Bn was fully \nimplemented, while eight (8) outputs with a total of twenty-one (21) \nactivities worth UGX.42.9Bn were partially implemented. Out of the \ntwenty-one (21) activities, the entity fully implemented nine (9) activities \n(43%), 9 (43%) activities were partially implemented and three (3) \nactivities (14%) remained unimplemented \n\uf0b7 \nI noted that the University accumulated receivables totalling to \nUGX.4,222,012,678 \nas \nat \n30th \nJune \n2021,", "metadata": {"page": 279, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "June \n2021, \nan \nincrease \nof \nUGX.1,427,267,366 \n(51%) \nin \nthe \noutstanding \nreceivables \nof \nUGX.2,794,745,312 of the prior year ended 30th June 2020. \n\uf0b7 \nI noted that the leasehold land on Plot No. 6, lower circular Road, \nMbarara expired on 31st March 2017 and has not been renewed four (4) \nyears after its expiry. \n\uf0b7 \nI noted that MUST owns six (6) tourist camping sites (bandas) adjacent \nto Bwindi forest, in Kanungu district on approximately 2 acres of land \nwhich was leased to a service provider for a period of 10 years effective \n12/04/2020 at contract sum of UGX.480,000,000 (UGX.48,000,000", "metadata": {"page": 279, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "annually). However, the service provider did not pay the first instalment \nof UGX.48,000,000 which was due on 12th April 2021, citing challenges \nof Covid-19 pandemic. \n15 \nNational Council of Sports. \n2020/21 \n \nOpinion \nUnqualified \n\uf0b7 \nOut of the budgeted NTR of UGX.1,185,394,990 for the financial year \n2020/2021, UGX.515,782,750 was collected representing a performance \nof 44% of the target. \n\uf0b7 \nThe entity budgeted to receive UGX.22.9Bn from the Treasury out of \nwhich UGX.21.6Bn was received, resulting into a shortfall of UGX.1.3Bn \nwhich was 5.7% of the budget.", "metadata": {"page": 279, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "269 \n \n\uf0b7 \nOut of the total receipts for the financial year of UGX.22.165 Bn, \nUGX.22.160 Bn was spent by the entity resulting into an under absorption \nof UGX.0.006 Bn representing an absorption level of 99.97%. \n\uf0b7 \nOut of the eleven (11) outputs with a total of seventy-six (76) activities \nand expenditure of UGX.22.059 Bn taken for assessment, six (6) outputs \nwith a total of thirteen (13) activities and expenditure worth UGX.18.708 \nBn were fully quantified. \n\uf0b7 \nI assessed the implementation of six (6) out puts that were fully \nquantified with a total of thirteen (13) activities worth UGX.18.708Bn and \nnoted that five (5) outputs with a total of twelve (12) activities worth", "metadata": {"page": 280, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "UGX.18.708Bn were partially implemented. Out of the twelve (12) \nactivities, the entity fully implemented five (5) activities (42%); partially \nimplemented three (3) activities (25%) and four (4) activities (33%) \nremained unimplemented. \n\uf0b7 \nA review of the strategic plan, budgets and other records revealed that \nCouncil does not have a policy in place for promoting sports. There was \nno evidence availed by management to show that there is any framework \nof relationship with Local authorities to provide sports facilities. \n\uf0b7 \nWhereas Council approved funds transfer of UGX.1,431,284,198 to \nvarious Associations, there was no evidence to show that Council \napproved budgets of the individual Associations as required by NCS \nRegulations. I further noted that the approved funds transfers lacked a \nschedule supporting the allocation break down. \n\uf0b7 \nOut of the 51 registered Associations, 49 submitted information about", "metadata": {"page": 280, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "their other sources of funding. The remaining 2 Associations did not \nsubmit the required information for the period under review. \n\uf0b7 \nI noted that some Associations did not deduct and remit WHT totalling to \nUGX.21,636,694 to the Uganda Revenue Authority. \n16 \nUganda Management \nInstitute (UMI). \n2020/21 \n \nOpinion \nUnqualified \n\uf0b7 \nI noted that the Institute budgeted to collect NTR of UGX.25.68Bn during \nthe year under review. Out of this, only UGX.9.11Bn was collected, \nrepresenting a performance of 35.5% of the target. In addition, the \nInstitute budgeted to receive UGX.36.33Bn however, UGX.33.89Bn was \navailed, resulting in a deficit of UGX.2.44 Bn which is 6.7% of the budget. \n\uf0b7", "metadata": {"page": 280, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nOut of the total warrants of UGX.33.88Bn received during the financial \nyear. UGX.29.25Bn was spent by the entity resulting in an unspent \nbalance of UGX.4.63Bn, thus an absorption level of 86.33%. The unspent \nfunds were swept back to the consolidated fund as required by the PFMA. \nI further noted that the entity did not seek a revision of its budget and \nwork plan as provided for by section 17 (3) of the PFMA 2015. \n\uf0b7 \nI noted that the University received off-budget financing to the tune of \nUGX.185,595,654 which was not declared to treasury and, therefore, not \nappropriated to the entity by Parliament. These funds were received \ndirectly from development partners for undertaking activities not \nbudgeted for. \n\uf0b7 \nI reviewed the extent of quantification of outputs and activities for a", "metadata": {"page": 280, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "sample of twelve (12) outputs with a total of sixty-eight (68) activities \nand expenditure of UGX.35.32Bn and noted that all the twelve (12) \noutputs with a total of sixty-eight (68) activities and expenditure worth \nUGX 35.32Bn were not quantified at all. That is, all the sixty-eight (68) \nactivities (100%) within these outputs were not clearly quantified to \nenable assessment of performance. \n\uf0b7 \nI noted that PAYE tax totaling to UGX.589,262,089 was not deducted", "metadata": {"page": 280, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "270 \n \nfrom staff gratuity payments on the basis of exemption from PAYE under \nthe Pensions Act However, I noted that the gratuity of staff under \ncontract terms is not regulated by the Pensions Act. \n\uf0b7 \nI noted that UMI did not transfer to the Consolidated Fund unspent \nbalances of UGX. 555,953247 on ABSA Project Account at the end of the \nfinancial year as advised by the Accountant General. \n17 \nUganda National \nExaminations Board \n(UNEB). \n2020/21 \n \nOpinion \nUnqualified \n\uf0b7 \nOut of the budgeted NTR of UGX.56.7Bn for the financial year \n2020/2021, UGX.55.5 Bn was collected representing a performance of \n97.9% of the target. \n\uf0b7", "metadata": {"page": 281, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nThere was no shortfall in Government releases, UNEB budgeted to \nreceive UGX.93.943 Bn from government which was entirely warranted. \n\uf0b7 \nOut of the total receipts for the financial year of UGX.149.49Bn, a sum of \nUGX.149.49 Bn was spent by the Board representing an absorption level \nof 100%. \n\uf0b7 \nUNEB received off-budget financing to the tune of UGX.900,250,000 \nwhich was not appropriated by Parliament. These funds were received \ndirectly from NAPE-UTSEP project to conduct a survey on behalf of MOES \non the effect of COVID-19 on teaching and learning at primary and \nsecondary school levels. \n\uf0b7 \nI reviewed the extent of quantification of outputs and activities for all the \nnine (9) outputs with a total of forty-two (42) activities and expenditure", "metadata": {"page": 281, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "of UGX.149.49Bn and noted the eight (8) outputs with a total of thirty \nthree (33) activities and expenditure worth UGX.101.67Bn were fully \nquantified. While one (1) output with a total of nine (9) activities and \nexpenditure worth UGX.47.81Bn, was insufficiently quantified. \n\uf0b7 \nI assessed the implementation of five (5) outputs that were fully \nquantified with a total of fifteen (15) activities worth UGX.1.5Bn and \nnoted that Five (5) outputs with fifteen (15) activities and expenditure \nworth UGX 18.87Bn were fully implemented. Three (3) outputs with \neighteen (18) activities worth UGX.82.80Bn were partially implemented. \nOut of the eighteen (18) activities, the entity fully implemented fourteen \n(14) activities, two (2) activities partially implemented, while two (2) \nactivities remained unimplemented.", "metadata": {"page": 281, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "activities remained unimplemented. \n18 \nBTVET SUPPORT PROJECT \n2020/21 \n \nOpinion \nUnqualified \n \n\uf0b7 \nThere were no reportable issues. \n19 \nPetroleum Geoscience \nCollaboration Programme \n(ENPE II PROJECT) \n2020/21 \n \nOpinion \nQualified \n \n\uf0b7 \nMakerere University main Building was gutted down by fire where vital \ndocuments got lost in the inferno. Consequently, payment vouchers and \nsupporting \ndocuments \nin \nsupport \nof \npayments \ntotaling \nto \nUGX.368,361,770 which is 65% of the total expenditure were not \npresented for examination. I was not able to confirm the authenticity of \nthe expenditure. \n20", "metadata": {"page": 281, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "the expenditure. \n20 \nMakerere Institute of Social \nResearch Beyond Criminal \nJustice Project Centre File \n107453-001 for the Period \n1st January 2013 to 31st \nDecember 2013 \n \n\uf0b7 \nNo material issues to report on", "metadata": {"page": 281, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "271 \n \nOpinion \nUnqualified \n21 \nMakerere Institute of Social \nResearch Beyond Criminal \nJustice Project Centre File \n107453-001 For The Period \n1st January 2014 to 31st \nDecember 2014 \n \nOpinion \nUnqualified \n \n\uf0b7 \nNo material issues to report on \n22 \nMakerere Institute Of Social \nResearch Beyond Criminal \nJustice Project Centre File \n107453-001 For The Period \n1st January 2015 To 31st \nDecember 2015 \n \nOpinion \nUnqualified \n \n\uf0b7 \nNo material issues to report on \n23 \nMakerere Institute of Social \nResearch Beyond Criminal \nJustice Project Centre File \n107453-001 For The Period \n1st January 2016 To 31st", "metadata": {"page": 282, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "1st January 2016 To 31st \nDecember 2016 \n \nOpinion \nUnqualified \n \n\uf0b7 \nNo material issues to report on \n24 \nMAKERERE INSTITUTE OF \nSOCIAL RESEARCH- HARRY \nFRANK \nGUGGENHEIM \nFOUNDATION GRANT FOR \nTHE PERIOD 1st JANUARY \n2014 TO 31ST DECEMBER \n2014 \n \nOpinion \nUnqualified \n\uf0b7 \nNo material issues to report on \n25 \nMAKERERE INSTITUTE OF \nSOCIAL RESEARCH- HARRY \nFRANK \nGUGGENHEIM \nFOUNDATION GRANT FOR \nTHE PERIOD 1st JANUARY \n2015TO 31ST DECEMBER \n2015 \n \nOpinion \nUnqualified \n \n\uf0b7 \nNo material issues to report on \n26 \nMAKERERE INSTITUTE OF \nSOCIAL RESEARCH- HARRY \nFRANK \nFRANK \nGUGGENHEIM \nFOUNDATION GRANT FOR \nTHE PERIOD 1st JANUARY \n2016 TO 31ST DECEMBER \n\uf0b7 \nNo material issues to report on", "metadata": {"page": 282, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "272 \n \n2016 \n \nOpinion \nUnqualified \n \n27 \nMakerere Institute Of Social \nResearch \nInternally \nGenerated Funds For The \nPeriod 1st July 2012 To \n30th June 2013 \n \nOpinion \nUnqualified \n \n\uf0b7 \nNo material issues to report on \n\uf0b7 \n \n28 \nMakerere Institute of Social \nResearch \nInternally \nGenerated Funds for The \nPeriod 1st July 2013 To \n30th June 2014 \n \nOpinion \nUnqualified \n \n\uf0b7 \nNo material issues to report on \n\uf0b7 \n \n29 \nMakerere Institute of Social \nResearch \nInternally \nGenerated Funds for The", "metadata": {"page": 283, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Generated Funds for The \nPeriod 1st July 2014 to 30th \nJune 2015 \n \nOpinion \nUnqualified \n \n\uf0b7 \nNo material issues to report on \n\uf0b7 \n \n30 \nMakerere Institute of Social \nResearch \nInternally \nGenerated Funds for The \nPeriod 1st July 2015 to 30th \nJune 2016 \n \nOpinion \nUnqualified \n \n\uf0b7 \nNo material issues to report on \n\uf0b7 \n \n31 \nMakerere Institute of Social \nResearch- Norhed Project \n\u201cBuilding and Reflecting on \nInterdisciplinary \nPhd-\nStudies \nfor \nHigher \nEducation Transformation\u201d \nGrant \nNumber: \nUga-\n13/0023 For the Period 1st \nJanuary", "metadata": {"page": 283, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "January \n2014 \nto \n31st \nDecember 2014 \n \nOpinion \nUnqualified \n \n\uf0b7 \nNo material issues to report on \n\uf0b7 \n \n32 \nMakerere Institute of Social \nResearch- Norhed Project \n\u201cBuilding and Reflecting on \nInterdisciplinary \nPhd-\n\uf0b7 \nNo material issues to report on \n\uf0b7", "metadata": {"page": 283, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "273 \n \nStudies \nfor \nHigher \nEducation Transformation\u201d \nGrant \nNumber: \nUga-\n13/0023 For the Period 1st \nJanuary \n2015 \nto \n31st \nDecember 2015 \n \nOpinion \nUnqualified \n \n33 \nMakerere Institute of Social \nResearch- Norhed Project \n\u201cBuilding and Reflecting On \nInterdisciplinary \nPhd-\nStudies \nFor \nHigher \nEducation Transformation\u201d \nGrant \nNumber: \nUga-\n13/0023 For The Period 1st \nJanuary \n2016 \nTo \n31st \nDecember 2016 \n \nOpinion \nUnqualified \n \n\uf0b7", "metadata": {"page": 284, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nNo material issues to report on \n34 \nMakerere Institute of Social \nResearch- \nThink \nTank \nInitiative \nPhase \n2 \nInstitutional Support Centre \nFile: 107906-001 For The \nPeriod 1st January 2014 To \n31st December 2014 \n \nOpinion \nUnqualified \n \n\uf0b7 \nNo material issues to report on \n\uf0b7 \n \n35 \nMakerere Institute of Social \nResearch- \nThink \nTank \nInitiative \nPhase \n2 \nInstitutional Support Centre \nFile: 107906-001 For the \nPeriod 1st January 2015 to \n31st December 2015 \n \nOpinion \nUnqualified \n \n\uf0b7 \nNo material issues to report on", "metadata": {"page": 284, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "No material issues to report on \n \n36 \nMakerere Institute of Social \nResearch- \nThink \nTank \nInitiative \nPhase \n2 \nInstitutional Support Centre \nFile: 107906-001 For the \nPeriod 1st January 2016 to \n31st December 2016 \n \nOpinion \nUnqualified \n \n\uf0b7 \nNo material issues to report on \n \n37 \nMakerere Institute of Social \nResearch- \nCarnegie \n\uf0b7 \nNo material issues to report on", "metadata": {"page": 284, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "274 \n \nCorporation Grant Number \nB 8741.Ro1 for the Period \n1st January 2014 to 31st \nDecember 2014 \n \nOpinion \nUnqualified \n \n\uf0b7 \n \n38 \nMakerere Institute of Social \nResearch \nCarnegie \nCorporation Grant Number \nB 8741.R01 for the Period \n1st January 2015 to 31st \nDecember 2015 \n \nOpinion \nUnqualified \n \n\uf0b7 \nNo material issues to report on \n\uf0b7 \n \n39 \nMakerere Institute of Social \nResearch-Carnegie \nCorporation Grant Number \nB 8741.Ro1 For the Period \n1st January 2016 To 31st \nDecember 2016 \n \nOpinion \nUnqualified \n \n\uf0b7", "metadata": {"page": 285, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nNo material issues to report on \n\uf0b7 \n \n40 \nKyambogo \nUniversity \nEnable Report June 2020 \n \nOpinion \nUnqualified \n \n\uf0b7 \nNo material issues to report on \n\uf0b7 \n \n41 \nKYU \nUniversity \nENABLE \nProject Report Dec 2020 \n \nOpinion \nUnqualified \n \n\uf0b7 \nNo material issues to report on \n\uf0b7 \n \n42 \nKYU NORHED-MVP Project \nReport June 2020 \n \nOpinion \nUnqualified \n \n\uf0b7 \nNo material issues to report on \n\uf0b7 \n \n43 \nKYU NORHED-MVP Project \nReport Dec 2020", "metadata": {"page": 285, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Report Dec 2020 \n \nOpinion \nUnqualified \n \n\uf0b7 \nNo material issues to report on \n\uf0b7 \n \n44 \nUganda Petroleum Institute \nKigumba \n2020/21 \n \nOpinion \nUnqualified \n \n\uf0b7 \nI noted that the Institute submitted its strategic plan for the period 2021-\n2025 to NPA for review and approval but at the time of audit the \ncertificate of approval had not been received. \n\uf0b7 \nOut of the budgeted NTR of UGX.0.67Bn for the year 2020/2021only \nUGX.0.073Bn was collected, representing a performance of 9% of the \ntarget. Similarly, the Institute budgeted to receive UGX.8.5bn from GOU", "metadata": {"page": 285, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "275 \n \nof which UGX.6.65bn was warranted, resulting in a shortfall of UGX. \n1.85bn representing 21% of the budget. \n\uf0b7 \nI noted that the Institute spent all the funds that was available \namounting to UGX.6.92bn representing 100% performance. \n\uf0b7 \nI noted that Seven (7) outputs with fifteen (15) activities and expenditure \nworth UGX.4Bn were fully quantified. That is, 100% of the activities \nwithin these out-puts were clearly quantified to enable assessment of \nperformance. I further noted that Twelve (12) outputs with Twenty two \n(22) activities and expenditure worth UGX.2.49Bn was not quantified to \nenable assessment of performance. \n\uf0b7 \nOut of the Seven (7) quantified outputs three (3) outputs with seven (7)", "metadata": {"page": 286, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "activities and expenditure worth UGX 4.39Bn were fully implemented \nwhile two (2) outputs with four (4) activities worth UGX.0.25Bn were \npartially implemented as two (2) outputs with four (4) activities worth \nUGX0.33Bn were not implemented. That is none of the four (4) activities \nwas implemented at all. \n\uf0b7 \nThe Institute had accumulated domestic arrears totalling to UGX. \nUGX.1.03Bn by the closure of the financial year under review \n(2020/2021) thereby being expressed to risk of litigation. \n\uf0b7 \nThe Institute had outstanding receivables totalling to UGX.0.055Bn by the \nclosure of the financial year under review. \n\uf0b7 \nConstruction of Female hostel block, 2 Lecture halls, Library and an \ninformation Centre and Health Centre had delayed by 20months from the \ninitial completion date of 27th March, 2020. \n\uf0b7", "metadata": {"page": 286, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nOut of the 103 approved staff established of the Institute, only 84 posts \nhad been filled leaving 19 (18%) positions vacancies. I further noted that \nin spite of the vacant positions, the Institute had recruited an additional \nForty-six (46) staff on contract terms outside the approved structure. \n45 \nTb Preventive Therapy for \nHiv-Infected Alcohol Users \nin Uganda: An Evaluation of \nSafety, \nTolerability \nand \nAdherence \n(ADEPTT) \nProject 2018 \n \nOpinion \nUnqualified \n \n\uf0b7 \nI noted that the closing balance of USD 12,178.00 was different from the \nbalance brought forward as at 1st September 2017 of USD 9,615.58 \ncreating a difference of USD 2,562.42. The difference could not be \nexplained by management and was therefore disclosed in the Fund", "metadata": {"page": 286, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "accountability statement as unaccounted for funds. \n\uf0b7 \n \n46 \nMUST- Public Engagement \nFund \nGrant, \n\u2018Unpacking \nDesign Thinking Principles \nThrough \nBiomedical \nEngineering \nStudent\u2019s \nInnovation \nCafes\u2019 \nBmeic \nProject \u2013 2020 \n \nOpinion \nUnqualified \n \n\uf0b7 \nNo Reportable issues. \n\uf0b7 \n \n47 \nMUST- \nSerial \nKillers \nto \nMosquitoes; \nThe \nSpatial \nTargeting of Larval Habitats \nin \nRural \nUganda \nUsing \nGeographic \nProfiling \n\uf0b7 \nNo Material Reportable issues. \n\uf0b7", "metadata": {"page": 286, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "276 \n \n(Breeding Sites) Project \u2013 \n2019 \n \nOpinion \nUnqualified \n \n48 \nEpidemiology of Coronary \nArtery \nDisease \nAmong \nPeople with Hiv In Rural \nSub-Sahara \nAfrica \n(CAD) \nProject 2019 \n \nOpinion \nUnqualified \n \n\uf0b7 \nNo Material Reportable issues. \n\uf0b7 \n \n49 \nMUST- \nInterventions \nto \nReduce Alcohol Use and \nIncrease Adherence to TB \nPrevention Therapy Among \nHiv/Tb Co-Infected Drinkers \n(DIPT) 2019 \n \nOpinion \nUnqualified \n \n\uf0b7 \nNo Material Reportable issues. \n\uf0b7", "metadata": {"page": 287, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \n \n50 \nMUST-Population \nEffectiveness \nof \nDolutegravir \nImplementation \nin \nSub-\nSaharan \nAfrica: \nA \nProspective \nObservational \nCohort \nStudy\u201d \n(DISCO), \n2020 \n \nOpinion \nUnqualified \n \n\uf0b7 \nNo Material Reportable issues. \n\uf0b7 \n \n51 \nMUST- Mobile Technology \nto Extend Clinic \u2013 Based \nCounseling For Hiv+ In \nUganda (Extend), Project \u2013 \n2019 \n \nOpinion \nUnqualified \n \n\uf0b7 \nNo Material Reportable issues. \n\uf0b7 \n \n52 \nMUST- \nMama", "metadata": {"page": 287, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "MUST- \nMama \nNamtoto: \nBarriers and Enablers to \nGender, Equity and Scale-\nUp in Tanzania Project Code \n108547-002, 2018 \n \nOpinion \nUnqualified \n \n\uf0b7 \nNo Material Reportable issues. \n\uf0b7 \n \n53 \nMust- Research Aimed at \nDeveloping Sustainable Low \nField Magnetic Resonance \nImaging (MRI-NIH) Project \n\uf0b7 \nNo Material Reportable issues. \n\uf0b7", "metadata": {"page": 287, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "277 \n \n\u2013 2019 \n \nOpinion \nUnqualified \n \n54 \nAdvancing Hiv Research at \nMUST Through A Research \nAdministration \nTraining \nProject with the University \nof Virginia (RASA) -2020 \n \nOpinion \nUnqualified \n \n\uf0b7 \nNo Material Reportable issues. \n\uf0b7 \n \n55 \nMUST- Resistance Testing \nVersus Adherence Support \nfor Management of Patients \nwith Virologic Failure on \nFirst-Line \nAntiretroviral \nTherapy \nin \nSub-Saharan \nAfrica (Revamp) Project No. \n04/05-16 \u2013 2018 \n \nOpinion \nUnqualified \n \n\uf0b7", "metadata": {"page": 288, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nI noted that the opening bank balance of USD 58,902 was different from \nthe balance brought forward as at 1st July 2017 of USD 49,244, thus \ncreating unexplained difference of USD 9,658. The difference was \ndisclosed in the Fund accountability statement as unaccounted for funds. \n\uf0b7 \nI noted stale payments (cheques) totaling to USD 29,567.06 that were \nkept beyond six months in favor of government agencies and suppliers of \ngoods and services which were never paid by the Project. This creates a \nrisk of court fines and penalties. \n56 \nMUST- Analysis of Past and \nProjected Future Land Use \nChange and Its Impact on \nSediment Fluxes in The \nRwizi Catchment (Vlir Rwizi) \nProject \u2013 2018 \n \nOpinion \nUnqualified \n \n\uf0b7 \nNo Material Reportable issues.", "metadata": {"page": 288, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "No Material Reportable issues. \n\uf0b7 \n \n57 \nMUST- Smart Discharge to \nImprove \nPost-Discharge \nHealth \nOutcomes \nin \nChildren: \nA \nProspective \nStepped-Wedge \nEffectiveness Study (Smart \nDischarge) Project - 2019. \n \nOpinion \nUnqualified \n \n\uf0b7 \nNo Material Reportable issues. \n\uf0b7 \n \n58 \nSocial \nNetworks, \nHiv \nStigma, And the Hiv Care \nCascade in Rural Uganda \nProject \nOf \nMbarara \nUniversisty Of Science and \nTechnology- 2019 \n \nOpinion \nUnqualified \n \n\uf0b7 \nNo Material Reportable issues. \n\uf0b7 \n\uf0b7 \n \n59 \nMUST-The \nVirologic \nAnd \nPharmacologic \n\uf0b7 \nNo Material Reportable issues.", "metadata": {"page": 288, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "278 \n \nDeterminants \nof \nDolutegravir Failure in East \nAfrica (Tld) Project 2019 \n \nOpinion \nUnqualified \n \n\uf0b7 \n \n60 \nMUST- \nVoices \nof \nThe \nIndigenous \nPeople \nOf \nUganda Project 2020 \n \nOpinion \nUnqualified \n \n\uf0b7 \nNo Material Reportable issues. \n\uf0b7 \n \n61 \nEducation \nService \nCommission \n2020/21 \n \nOpinion \nUnqualified \n \n\uf0b7 \nI \nnoted \nthe \nCommission \nclosed \nthe \nyear \nwith", "metadata": {"page": 289, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "year \nwith \noutstanding \npayables/domestic Arrears worth UGX.0.255Bn. \n\uf0b7 \nThe Commission received all the budgeted amount of UGX.9.38Bn and \nhad unspent balance of UGX. 0.82Bn, representing an absorption level of \n91%. \n\uf0b7 \nI noted that the Commission quantified all its outputs. Ten (10) outputs \nwere fully quantified with a total of thirty five (35) activities worth UGX \n8.55Bn. Seven (7) outputs with twenty four (24) activities worth \nUGX.8.1Bn were partially implemented, while one (1) output with one (1) \nactivity worth UGX.0.015Bn was not implemented. \n\uf0b7 \n \n62 \nMultinational \nStatistical \nCapacity Building Program \nfor \nManaging \nfor", "metadata": {"page": 289, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Managing \nfor \nDevelopment \nResults \n- \nPhase \n4.2 \n(MSCB-AFDB) \nProject 2017 \n \nOpinion \nUnqualified \n \n\uf0b7 \nNo Material Reportable issues. \n\uf0b7 \n \n63 \nMultinational \nStatistical \nCapacity Building Program \nfor \nManaging \nfor \nDevelopment \nResults \n- \nPhase \n4.2 \n(MSCB-AFDB) \nProject 2018 \n \nOpinion \nUnqualified \n \n \n\uf0b7 \nNo Material Reportable issues. \n\uf0b7 \n \n64 \nMultinational \nStatistical \nCapacity Building Program \nfor \nManaging \nfor \nManaging \nfor \nDevelopment \nResults \n- \nPhase \n4.2 \n(MSCB-AFDB) \nProject \n2019 \n \nOpinion \nUnqualified \n\uf0b7 \nNo Material Reportable issues. \n\uf0b7", "metadata": {"page": 289, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "279 \n \n \n65 \nMultinational \nStatistical \nCapacity Building Program \nfor \nManaging \nfor \nDevelopment \nResults \n- \nPhase \n4.2 \n(MSCB-AFDB) \nProject 2020 \n \nOpinion \nUnqualified \n \n\uf0b7 \nNo Material Reportable issues. \n\uf0b7 \n \n66 \nMandela National Stadium \nLimited \n2020/21 \n \nOpinion \nUnqualified \n \n\uf0b7 \nI noted that the Company had no approved strategic plan that is aligned \nto NDPIII at the time of audit. \n\uf0b7 \nI noted that although the Company realized 101% of the budgeted, the", "metadata": {"page": 290, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "original budget was revised from UGX.6.07Bn to UGX.2.63bn to match \nthe expected revenue. \n\uf0b7 \nOut of the total receipts for the financial year of UGX.2.66bn, UGX. 1.36 \nBn was resulting into an unspent balance of UGX.1.3bn representing an \nabsorption level of 51%. \n\uf0b7 \nI noted that the Stadium quantified all its five (5) outputs and all the \noutputs were partially implemented whereby out of forty four (44) \nactivities, the entity fully implemented seven (7) activities (16%), partially \nimplemented five (5) activities (11%), while thirty two (32) activities \n(73%) remained unimplemented. \n\uf0b7 \nI noted that MNSL liabilities remained on a higher side despite a \nregistered decrease from UGX.5.38Bn in the F/Y 2019/2020 to", "metadata": {"page": 290, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "UGX.3.89Bn as at the end of the financial year under review representing \na reduction of UGX.1.49 (28%). \n\uf0b7 \nI noted that Mandela National stadium closed the financial year with a \nreceivables figure of UGX.2.42Bn, a reduction of only 7% from \nreceivables of UGX.2.59 as at the end of the previous FYR: 2019/2020. \n\uf0b7 \nI noted that the Company did not implement its Staffing Strategy of the \ncurrent running strategic plan 2018-2023. \n\uf0b7 \nI noted that stadium Land continues to have illegal occupants. \n67 \nThe \nAlbertine \nRegion \nSustainable \nDevelopment \nProject (ARSDP) - MOES \nComponent \n2020/21 \n \nOpinion \nUnqualified \n \n\uf0b7", "metadata": {"page": 290, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nAssessment of the Project\u2019s performance for the five year Project work \nplan implementation status revealed that one objective/goal had been \nachieved, while the remaining seven (7) were partially achieved. \n\uf0b7 \nOut of the project donor budgeted receipts of UGX.41.3Bn only \nUGX.35.5Bn was released, resulting in a shortfall of 5.5Bn representing \n86% performance; out of the GOU budgeted amount of UGX. 2.94Bn, \nonly UGX.2.66Bn was released, resulting in a shortfall of 0.28Bn \nrepresenting 91% performance. \n\uf0b7 \nOut of the total receipts for the financial year of UGX. 35.5Bn, \nUGX.32.3Bn was spent by the Project leaving a balance of UGX.3.2Bn \nrepresenting 91% performance. \n\uf0b7", "metadata": {"page": 290, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nI noted that four (4) outputs and nine (9) activities to be implemented; \nThree (3) outputs with a total of eight (8) activities and expenditure \nworth UGX.18.79Bn were fully quantified while One (1) output with one \n(1) activity and expenditure worth UGX.13.48Bn was insufficiently \nquantified to enable the assessment of performance. \n\uf0b7 \nI noted that three (3) out puts with a total of eight (8) activities worth", "metadata": {"page": 290, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "280 \n \nUGX.25.18Bn were fully quantified. \n\uf0b7 \nI noted One (1) output with two (2) activities and expenditure worth UGX \n14.53Bn was fully implemented. That is all the two (2) activities within \nthis output were fully implemented. I further noted that One (1) output \nwith Five (5) activities worth UGX.3.60Bn was partially implemented. I \nalso noted that One (1) output with one (1) activity worth UGX.0.68Bn \nwas not implemented. That is; the one (1) activity was not implemented \nat all. \n\uf0b7 \nReview of the Implementation status of the aide Memoir reports by the \nWorld bank for the Project monitoring mission activity for the period 27th \nJuly -3rdAugust 2020, 2nd-10th December 2020 Mission and 16th-25th \nMarch, \n2021 \nrevealed \nthat", "metadata": {"page": 291, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "revealed \nthat \nsome \nof \nthe \nagreed \nupon \nactions/recommendations between the World Bank and MoES \n\uf0b7 \nImplementation status of aide Memoir reports indicated that some \nrecommendations had either been partially implemented or not \nimplemented. \n\uf0b7 \nI noted that there was no internal audit review carried out on the \noperations of ARSDP during the period under review contrary to the \nrequirement in Section II (B) of the ARSDP Financing agreement. \n68 \nKyambogo University \n2020/21 \n \nOpinion \nUnqualified \n \n\uf0b7 \nI noted that the University prepared a strategic plan and obtained a \ncertificate of compliance on the 27th of September 2021 from National \nplanning Authority (NPA). \n\uf0b7 \nThe University collected UGX.40.9Bn (53%) of its budgeted non-tax", "metadata": {"page": 291, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "revenue of UGX.77.1Bn. I further noted that the university received \nUGX.130.07Bn (93%) out of the budgeted GOU receipts amount of \nUGX.140.6Bn. \n\uf0b7 \nOut of the total warrants for the financial year of UGX.130.07Bn, only \nUGX.124.5 was spent by the University resulting into unspent balance of \nUGX.5.53Bn representing an absorption level of 96%. \n\uf0b7 \nThe University received Donor financing to the tune of UGX.3.11Bn of \nwhich only UGX.2.68Bn had been included in the budget reflecting off \nbudget receipts of UGX.0.43Bn. \n\uf0b7 \nI noted that out of the 14 outputs sampled, 4 out puts (29%) were fully \nquantified, 8 out puts (57%) were insufficiently quantified while 2 out", "metadata": {"page": 291, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "puts (14%) were not quantified at all. I also noted that the University did \nnot fully implement any of the 4 fully quantified out puts. \n\uf0b7 \nThe University had outstanding domestic arrears and outstanding \nreceivables of UGX.13.6Bn and UGX.23.2Bn, respectively. \n\uf0b7 \nSome of the University land had illegal land occupants. I further noted \nthat there were variations between the area on the Certificate of Tittle \nand actual Area on the ground for plot M902 of the University land. \n\uf0b7 \nOut of the 1,671 approved posts for the University, only 928 (55.5%) \nwere filled leaving 743 (45.5%) posts vacant. This has a negative impact \non education service delivery. \n\uf0b7 \nThe University had MOUs for only 40 of the 112 affiliated Institutions. I \nfurther noted that of the 40 MOUs availed; MOUs for 9 Institutions had", "metadata": {"page": 291, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "expired. \n\uf0b7 \n \n69 \nThe National Council for \nHigher Education \n\uf0b7 \nOut of budgeted NTR collections of UGX. 6.25bn, only UGX. 2.96Bn was", "metadata": {"page": 291, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "281 \n \n2020/21 \n \nOpinion \nUnqualified \n \nrealized, representing a performance of 47.4%. \n\uf0b7 \nThe Council budgeted to receive UGX.5.4Bn from Government out of \nwhich UGX.5.01Bn was availed, resulting in a shortfall of UGX0.39Bn, \nwhich is 7.2% of the budget. \n\uf0b7 \nOut of UGX.8.86 Bn available for spending during the financial year, \nUGX.8.75Bn was spent by the entity resulting into unspent balance of \nUGX 0.11 Bn, representing absorption level of 99%. \n\uf0b7 \nI noted that out of the one hundred sixteen (116) activities, fifty three \n(53) activities (46%) were quantified, while the balance of sixty three", "metadata": {"page": 292, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "(63) activities (54%) were not clearly quantified to enable the \nassessment of performance. I further noted that One (1) output with a \ntotal of Nine (9) activities and expenditure worth UGX 0.62 Bn were not \nquantified at all. \n70 \nNational \nCurriculum \nDevelopment Centre \n2020/21 \n \nOpinion \nUnqualified \n \n\uf0b7 \nI noted that whereas NCDC had prepared a strategic plan and whereas a \nnotification of approval had been provided by NPA, a certificate of \napproval was yet to be obtained. \n\uf0b7 \nOut of the budgeted NTR of UGX.250,000,000 for the financial year under \nreview, UGX.93,000,000 was collected representing a performance of \n37.2% of the target. \n\uf0b7", "metadata": {"page": 292, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nThe entity budgeted to receive UGX.40.163Bn from Treasury out of which \nUGX.37.138 Bn was warranted, resulting into a budget shortfall of \nUGX.3.025Bn which is 7.5% of the budget. \n\uf0b7 \nThe \nCentre \nreceived \noff-budget \nfinancing \nto \nthe \ntune \nof \nUGX.1,661,966,260 which was not transferred to the Consolidated Fund \nas required by the law and hence not appropriated. \n\uf0b7 \nOut of the total receipts for the financial year of UGX 37.137bn a sum of \nUGX. 36.929bn was spent by the entity resulting into an under absorption \nof UGX.0.208bn representing absorption level of 99.4%. \n\uf0b7", "metadata": {"page": 292, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nOut of the eleven (11) outputs with a total of seventy three (73) activities \nand expenditure of UGX.36.88 Bn, nine (9) outputs with a total of sixty \neight (68) activities and expenditure worth UGX 35.95 Bn were fully \nquantified, one (1) output with a total of two (2) activities and \nexpenditure worth UGX.0.16Bn were insufficiently quantified, and one (1) \noutput with a total of one (1) activity and expenditure worth UGX 0.77Bn \nwas not quantified to enable assessment of performance. \n\uf0b7 \nI assessed the implementation of nine (9) out puts that were fully \nquantified with a total of sixty eight (68) activities worth UGX.35.95Bn \nand noted the following; Two (2) outputs with 2 (two) activities worth \nUGX 0.75 Bn were fully implemented. The entity implemented the two (2)", "metadata": {"page": 292, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "activities (100%) within the outputs. Secondly; seven (7) outputs with a \ntotal of sixty six (66) activities worth UGX.35.20Bn were partially \nimplemented. Out of the sixty six (66) activities, the entity fully \nimplemented forty one (41) activities (62%); partially implemented seven \n(7) activities (11%) and eighteen (18) activities (27%) remained \nunimplemented. \n\uf0b7 \nI noted that goods and services totalling to UGX.5,296,396,760 did not \nhave corresponding WHT transactions totalling to UGX.317,783,806 on \nthe IFMS payment file. I further noted that there was no evidence of \nexemptions. \n\uf0b7 \nPayments totalling to UGX.7,616,021 were made to staff of the Centre \ncontrary to the e-cash guidelines. Similarly, funds totalling to \nUGX.31,448,969 were irregularly paid to payees who were already", "metadata": {"page": 292, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "282 \n \nregistered suppliers/vendors on IFMS. Also Funds to the tune of \nUGX.22,105,200, were utilized for expenses that were not provided for in \nthe budget, to cater for COVID-19 SOPs. \n71 \nMakerere-Sida \nBilateral \nResearch Program \n2020/21 \n \nOpinion \nUnqualified \n \n\uf0b7 \nNo material Issues to report on \n\uf0b7 \n \n72 \nPharm-Biotechnology \nand \nTraditional \nMedicine \n(Pharmbiotrac) Centre Ace \nIi Project \n2020/21 \n \nOpinion \nUnqualified \n \n\uf0b7 \nI noted that a sum of USD.4,754,402 (88%) was disbursed in the 4 years", "metadata": {"page": 293, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "period to 30th June 2021 against the planned cumulative expenditure of \nUSD 5,404,514. \n\uf0b7 \nI noted that out of the total available financing for the financial year of \nUSD.1,506,515 only USD.1,105,054 was spent by the Project resulting \ninto an unspent balance of USD.401,461 representing an absorption level \nof 73%. \n\uf0b7 \nI noted that all the ten (10) outputs with a total of eighty seven (87) \nactivities and expenditure of USD.1,105,054 were clearly quantified to \nenable assessment of performance. \n\uf0b7 \nI noted that all the ten (10) outputs with a total of eighty seven (87) \nactivities worth USD. 1.1million were partially implemented. Out of eighty \nseven (87) activities, the entity fully implemented forty five (45) activities \n(52%), the entity partially implemented fifteen (15) activities (17%),", "metadata": {"page": 293, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "while twenty seven (27) activities (31%) remained unimplemented. \n\uf0b7 \n \n\uf0b7 \nI noted that the Project had not obtained Patent rights over the various \nProducts it had developed. \n73 \nMinistry of Education and \nSports (MOES) \n2020/21 \n \nOpinion \nUnqualified \n \n\uf0b7 \nI noted that the Ministry\u2019s Strategic plan was not yet approved by \nNational Planning Authority at the time of audit. \n\uf0b7 \nThe Ministry budgeted to collect NTR of UGX.6.3Bn during the year under \nreview out of which, only UGX.0.13Bn was realized, representing a \nperformance of only 2% of the target. \n\uf0b7 \nThe entity budgeted for GOU receipts of UGX.388.4bn of which", "metadata": {"page": 293, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "UGX.369bn was warranted, resulting into a shortfall of UGX.19.4Bn which \nis 5% of the budget. \n\uf0b7 \nOut of the total receipts for the financial year of UGX.369Bn, a sum of \nUGX.343.6Bn was spent by the Ministry resulting into an unspent balance \nof UGX.23.3Bn representing an absorption level of 93%. \n\uf0b7 \nTwenty three (23) outputs with a total of sixty four (64) activities and \nexpenditure of UGX. 274.4Bn that were sampled were fully quantified. \n\uf0b7 \nTen (10) outputs with a total of twenty seven (27) activities worth \nUGX.124.1Bn were fully implemented. Nine outputs (9) outputs with a \ntotal of twenty five (25) activities worth UGX 98.4Bn were partially \nimplemented while Four (4) outputs with a total of twelve (12) activities", "metadata": {"page": 293, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "worth 51.83 Bn were not implemented at all. \n\uf0b7 \nThe Ministry spent UGX.5.3Bn on Covid-19 impacted expenditure to cater \nfor printing and distribution of home learning materials, content writing \nfor home learning materials which was not in the approved budget and \nthere was no evidence of a supplementary request.", "metadata": {"page": 293, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "283 \n \n\uf0b7 \nOut of a sum of UGX. 23.44Bn released to the ministry in respect of \nCovid-19 response related expenditure only UGX.9.62 (55.4%) remained \nunspent and was subsequently swept back to the Consolidated Fund \nAccount. \n\uf0b7 \nI noted under Note 18 to the financial statements and the statement of \nfinancial position that the ministry had receivables totaling to \nUGX.10.64Bn at the beginning of the financial year which increased to \nUGX.11,684,417,736 at closure of the year. The outstanding amounts \nrelate to advances which were made to various educational institutions \nand District Local Government. \n\uf0b7 \nThe ministry had outstanding payables amounting to UGX.39.45 Bn at the \nclosure of the financial year. This was a reduction of UGX.10.74Bn", "metadata": {"page": 294, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "(21.4%) from UGX.50.19Bn in the FY 2019/20. I further noted that UGX. \n29.79Bn (75.5%) of the outstanding amount has been outstanding for \nmore than one year. I also noted that whereas the Ministry had \noutstanding obligations UGX.50.19Bn at the beginning of the financial \nyear, only UGX.16.69Bn was provided for in the budget resulting into a \nfunding gap of UGX.33.51Bn. \n\uf0b7 \nOnly UGX.18.81Bn of the appropriation for pensions of UGX.28.52Bn \n(66%) was absorbed leading to under absorption of funds by UGX.9.71Bn \n(34%). In addition, the Ministry had accumulated pension arrears \ntotaling to UGX.1.47Bn due to delayed payment due to missing \ndocuments on pension files. \n\uf0b7", "metadata": {"page": 294, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nOut of the total verified outstanding court awards of UGX.10.18 Bn, a \nsum of UGX.4.69Bn (46.1%) relates to accumulated interest costs arising \nfrom delayed settlement of court awards. I further noted that whereas \nthe ministry had obligations to the tune of UGX. 15.98Bn and other on-\ngoing cases during the financial year, only UGX.1.66Bn was provided for \ncourt awards and compensations in the work plan for the financial year \nunder review. \n\uf0b7 \nPost closure audit inspection on Uganda Teacher School Effectiveness\u2019 \nproject (UTSEP) in the Ministry of Education revealed UGX.1.58Bn \nremained unutilized as at the closure of the F/Y (30th June 2021). \n\uf0b7 \nI noted that UGX.3.9Bn of the UGX.5.55Bn advanced to UBOS before \nproject closure date (31st July 20) to carry out data collection", "metadata": {"page": 294, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "(enumeration) for the comprehensive Education Institutions baseline, \nwhich was expected to be completed by 30th April 2020 remained \noutstanding. \n\uf0b7 \nI noted that the Ministry of Education and Sports still holds the mandate \nof managing Government scholarships, however information on \nScholarship offered at the different Missions and other Government \norganizations was not available at the Secretariat. In addition, there was \nno scholarship Policy. I also noted that out of a total of 280 scholarships \noffered in the previous three years, only 162 were utilized resulting into \nan under absorption of 118 (42%) scholarships. \n74 \nOpec Fund for International \nDevelopment \n(OFID)-\nVocational \nEducation \nProject Phase 11 \n2020/21 \n \nOpinion \nUnqualified \n \n \n\uf0b7 \nI noted that the 5 year project with total budget of UGX.59.43 Bn that", "metadata": {"page": 294, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "started in June 2017 had only received a total of UGX 14.09 Bn by end of \nfinancial year 2020/2021. \n\uf0b7 \nOut of the total amount of UGX.14.09Bn availed for financing the Project \nfor the four and a half years covered; only UGX.12.3 Bn (87%) had been \nabsorbed while the unspent balance of UGX.1.7bn was swept back to the \nConsolidated Fund. \n\uf0b7 \nI noted that whereas the Project closing date was 31st December 2021,", "metadata": {"page": 294, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "284 \n \ntwo critical project Components 1 & 2 (civil works, supply of equipment \nand tools) that form 85% of the total project budget had not taken off by \nthe time of concluding the audit (2nd December 2021. \n\uf0b7 \nI observed that out of the absorbed funds worth UGX.12.3Bn, UGX.6.6bn \n(54%) was spent on other Arab funded Projects other than OFID project. \n\uf0b7 \nI noted that a total amount of UGX. 6.6Bn of the UGX.12.3 Bn GOU \ncomponent was irregularly spent on other Arab funded Projects of IDBI, \nIDBII, KFAED and BADEA without authority. \n75 \nUganda Skills Development \nProject (USDP)- PSFU \n2020/21 \n \nOpinion \nUnqualified \n\uf0b7", "metadata": {"page": 295, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Unqualified \n\uf0b7 \nI noted that the Project has made cummulative disbursements of \nUSD.15,345,592 against cummulative commitments of USD.17,617,457 \nrepresenting 87% performance. \n\uf0b7 \nOut of the total amounts of UGX.30.75Bn available for spending during \nthe financial year under review, a total amount of UGX.24.6Bn was spent \nby the Project resulting into an unspent balance of UGX.6.14Bn, \nrepresenting an absorption level of 80%. \n\uf0b7 \nAll the seven (7) outputs with a total of twenty-nine (29) activities and \nexpenditure of 24.6Bn that is, all the twenty-nine 29 activities (100%) \nwithin these out-puts were clearly quantified. \n\uf0b7 \nI assessed implementation of Quantified outputs and noted that; the \nProject fully implemented sixteen (16) activities (62%); the Project", "metadata": {"page": 295, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "partially implemented eight (8) activities (30%), while two (2) activities \n(8%) remained unimplemented. \n76 \nUganda Skills Development \nProject (USDP) -MOES \n \nOpinion \nUnqualified \n \n\uf0b7 \nI noted that at the close of the financial year 2020/2021, out of the two \n(2) planned strategic targets/objectives, one objective/goal had been \nachieved, while the other one had been partially achieved. \n\uf0b7 \nOut of the budgeted amount of UGX.58.82Bn budgeted to be received \nfrom World Bank during the financial year 2020/2021; a sum of \nUGX.46.53Bn was received indicating performance of 79% of the target. \nSimilarly, the project budgeted to receive UGX.1.25Bn, of which", "metadata": {"page": 295, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "UGX.1.07Bn was warranted, resulting in a shortfall of UGX. 0.18 Bn \n(14.4%) of the budget. \n\uf0b7 \nI noted that all project outputs were fully quantified. I also noted that the \nproject fully implemented one of the sampled outputs, partially \nimplemented one and two outputs were not implemented. \n\uf0b7 \nI noted delayed Signing of Contract for Supply of a Spray track for UTC \nLira valued at Euros 205,200 had delayed for 9 months by end of \nNovember 2021, following the contracts committee\u2019s approval on \n23rd/02/2021. \n\uf0b7 \nI noted delayed Installation and testing of Equipment: USD. 8,304,848 by \n5 months at the time of audit at the end of November. I further noted \nthat furniture supplies and civil works had also delayed with the delayed \nperiod ranging from 1-7 months. \n77 \nImagining Gender Futures \nin", "metadata": {"page": 295, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Imagining Gender Futures \nin \nUganda \n(IMAGENU) \nProject \u2013 DFC Project No. \n17-07-AU- Gulu University - \n2020 \n \nOpinion \nUnqualified \n \n\uf0b7 \nThere were no reportable issues. \n\uf0b7", "metadata": {"page": 295, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "285 \n \n78 \nMakerere University Busines \nSchool. \n2020/21 \n \nOpinion \nUnqualified \n \n \n\uf0b7 \nI noted that the University had its plan approved and certified by NPA \nand the plan is aligned to the national development plan. This greatly \nsupports the achievement of NDP-III objectives. \n\uf0b7 \nI reviewed the NTR estimates, revenue sources and rates charged at vote \nlevel for the financial year 2020/2021 and noted that the entity budgeted \nto collect NTR of 56.845Bn during the year under review. Out of this, only \n33.589bn was collected, representing a performance of 59.1% of the \ntarget. \n\uf0b7 \nThe University budgeted to receive UGX.102.629Bn out of which", "metadata": {"page": 296, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "UGX.97.03Bn was availed, resulting in a shortfall of UGX5.59Bn, which is \n5.5% of the budget. \n\uf0b7 \nOut of the total warrants of UGX.97.03Bn received during the financial \nyear. UGX.96.85Bn was spent by the entity resulting in an unspent \nbalance of UGX.0.18Bn representing an absorption level of 99.8%. The \nunspent funds were swept back to the consolidated fund as required by \nthe PFMA. \n\uf0b7 \nI noted that the School received off-budget financing to the tune of UGX. \n549Bn from NOHRED/NORAD Project Support which was not declared to \ntreasury and, therefore, not appropriated to the entity by Parliament. \n\uf0b7 \nI reviewed the extent of quantification of outputs and activities for a \nsample of twelve (12) outputs with a total of seventy three (73) activities", "metadata": {"page": 296, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "and expenditure of UGX.91.667Bn and noted that five (5) outputs with a \ntotal of fourteen (14) activities and expenditure worth UGX.3.031Bn were \nfully quantified. One (1) output with a total of twenty four (24) activities \nand expenditure worth UGX.77.002Bn, was insufficiently quantified while \nsix (6) outputs with a total of thirty five (35) activities and expenditure \nworth UGX 11.633Bn were not quantified at all. \n\uf0b7 \nI assessed the implementation of five (5) outputs that were fully \nquantified with a total of fourteen (14) activities worth UGX 3.031Bn and \nnoted that; Three (3) outputs with eight (8) activities and expenditure \nworth UGX 1.694Bn were fully implemented. One (1) output with two (2) \nactivities worth UGX.1.336Bn was partially implemented while one (1)", "metadata": {"page": 296, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "output with four (4) activities with a budget of UGX.1.159Bn was not \nimplemented. \n\uf0b7 \nThe entity disclosed receivables to the tune of UGX.21,730,133,664. This \nreflected an increase in receivables by UGX.12,025,676,995 (124%) from \nthe previous year\u2019s balance of UGX.9,704,456,669. The accumulation of \nreceivables impacts negatively on the operations of the University and the \neducation service delivery. \n\uf0b7 \nThe Statement of Financial Position showed accumulation of payables to \nthe tune of UGX.1,215,592,931 as at 30th June 2021. I noted that these \npayables were accumulated in the current year and largely related to \nsuppliers of goods and services. Accumulation of payables poses a risk of \nlitigation and or loss of trust against the University from the suppliers of", "metadata": {"page": 296, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "the goods and services. \n\uf0b7 \nThe financial statements showed that MUBS was involved in several court \ncases/legal proceedings of a total value UGX.2,899,977,221 in various \ncourts of law that remained pending as at the financial year end. There is \na risk that in case of un-favourable rulings, the School may incur more \nfinancial losses. \n\uf0b7 \nA review of the statement of cash flow revealed payment of domestic \narrears of UGX.9,601,334,785 against UGX.330,708,964 that was \nbudgeted and warranted for payment of domestic arrears. Payment of", "metadata": {"page": 296, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "286 \n \nfunds to un-appropriated budget lines leads to non-implementation of \nbudgeted for activities. \n\uf0b7 \nI noted that the School had five (5) pieces of land recorded in the assets \nregister that have never been valued to ascertain the monetary value. I \nalso noted that the land in Kireka had squatters and the possibility of \nreclaiming it may prove to be challenging. The encroachment on the \nSchool land was attributed to failure to gazette and develop the land. \n79 \nThe Norwegian Programme \nfor Capacity Development \nIn Higher Education And \nResearch For Development \n(Norhed) 2020 \n \nOpinion \nUnqualified \n\uf0b7 \nThe Project ended, and as at the end of the six-month period ended 31st \nDecember, 2020, funds to the tune of USD. 272,213 (Nok2,054,787)", "metadata": {"page": 297, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "remained unspent, and it was refunded to the Funders. \n80 \nEnvironment \nfor \nDevelopment Initiative (Efd-\nMak \nCentre) \nProject \nMakerere University for The \nPeriod 1st January - 31st \nDecember 2020 \n \nOpinion \nUnqualified \n \n\uf0b7 \nNo material Issues reported \n82 \nNurture: Research Training \nand Mentoring Program for \nCareer \nDevelopment \nof \nFaculty in Medical Education \nPartnership \nInitiative \nInstitutions \n(Mepi) \nAt \nMakerere University College \nof Health Sciences - 2018 \n \nOpinion \nUnqualified \n \n\uf0b7 \nNo material Issues reported \n \nSCIENCE \nAND", "metadata": {"page": 297, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "SCIENCE \nAND \nINNOVATION SECTOR \n \n1. \nKiira Motors Corporation. \n2019/2020 \n \nOpinion \nUnqualified \n\uf0b7 \nI noted that at the time of the audit (June 2020), out of the planned six \n(6) strategic targets/goals, three (3) targets had been fully achieved and \nthree (3) were partially achieved \n\uf0b7 \n100 acres of land, in Kiira Town Council, Jinja District land was only \ndisclosed as a note without value attached and neither is it recorded in \nthe assets register. \n\uf0b7 \nFailure to handover funds worth UGX.8,923,350,798 to Makerere \nUniversity, since these funds had been specially released for Kiira Motors \nas a project under Makerere University. \n\uf0b7 \nI observed that only two of the nine (9) members of the Board of", "metadata": {"page": 297, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Directors, the Executive Chairperson and the Chief Executive Officer were \nduly appointed, leading to an inadequately constituted Board. \n2. \nPresidential Initiative on \nBanana Industrial \nDevelopment (PIBID). \n\uf0b7 \nI noted that out of the 3 strategic targets, PIBID partially attained them, \nwith the hope of fully attaining the targets by the end of the strategic", "metadata": {"page": 297, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "287 \n \n2019/2020 \n \nOpinion \nUnqualified \nplan period. \n\uf0b7 \nNTR of UGX.99 Million was collected but not remitted to the consolidated \nfund and was instead spent at source. \n\uf0b7 \nIt was observed that the entity has not taken off full operations as it \nremains cash strapped with limited subventions from the Ministry of \nScience Technology and innovation. \n\uf0b7 \nThere was no evidence of the establishment of the Institutional \nFramework and Governance Board and the renewal of the appointment of \nthe Board and Management Committee Members. \n\uf0b7 \nDuring the financial year, a total of UGX.29,230,320 was paid to the \nExecutive Director as man-day allowance for signing 12 contracts on \nbehalf of the organization, yet this is one of her roles for which a monthly \nsalary is paid. \n\uf0b7", "metadata": {"page": 298, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "salary is paid. \n\uf0b7 \nA total of UGX.272,694,000 was paid to various staff as allowances for \nworking over the weekend. \n\uf0b7 \nThe internal audit department had only one draft internal audit report \nwith no evidence that the report was submitted to the Accounting Officer \nand Internal Auditor General. \n\uf0b7 \nPIBID recruited staff during the year 2019/2020 without an approved \nrecruitment plan for the period. \n\uf0b7 \nAudit noted that PIBID did not have an approved salary structure on \nwhich it bases to pay individual staff \n\uf0b7 \nI noted that the entity lacked land titles for its land at Sanga \n(approximately 50 acres) and land where the water source is located at \nKyamugambira (approximately 4 acres). \n\uf0b7 \nManagement deducted UGX.633,205,884, as PAYE, from employee\u2019s \nsalaries but was not remitted to Uganda Revenue Authority.", "metadata": {"page": 298, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nIt was observed that outstanding obligations to the National Security \nFund at the end of the Financial Year 2019/2020 were UGX.829,409,254. \n3. \nUganda Institute of \nCommunication Technology \n(UICT). \n2019/2020 \n \nOpinion \nUnqualified \n\uf0b7 \nI noted that out of the budgeted revenue of UGX.3,359,386,101 for the \nyear 2019/2020, only UGX.1,893,012,622 was collected representing a \nperformance of only 56% of the target. \n\uf0b7 \nAn analysis of the outputs/activities that were quantified revealed that \nseveral activities remained un implemented. \n\uf0b7 \nI noted that there was over expenditure of UGX.34,136,741 on three \nbudget lines. \n\uf0b7", "metadata": {"page": 298, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "budget lines. \n\uf0b7 \nI noted that the entity had outstanding trade and other receivables \namounting to UGX.384,635,852. \n\uf0b7 \nI noted temporary staffs that have been working at the Institute for over \n10 years with continuous contract renewals. \n\uf0b7 \nA review of the staff establishment showed that only 41 positions were \nfilled out of the established 99 positions, leaving 58 positions vacant. \n\uf0b7 \nI noted that there was neither staff training nor an annual training plan in \nplace. \n\uf0b7 \nContrary to Section 34 (1) of the VAT Act 1996, I noted that \nUGX.4,534,592 worth of VAT remained outstanding as at 30th June 2020. \n4. \nMinistry of Science and \n\uf0b7 \nThe Ministry of Science Technology and Innovation was merged with the", "metadata": {"page": 298, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "288 \n \nTechnology and Innovation. \n2020/21 \n \n \n \nOpinion \nUnqualified \nPresident\u2019s Office effective July 2021. I however did not obtain evidence \nof a proper transition plan which has led to delayed disbursement of \nfunding for subventions and independent projects. The merger further \nrendered 136 technical scientist staff redundant and were not paid \nemoluments by the end of November, 2021. I advised management to \nensure that a smooth transition process is undertaken. \n\uf0b7 \nOut of the total budget for the financial year of UGX.150Bn, only \nUGX.144.6Bn was received by the Ministry resulting into a shortfall of \nUGX.5.737Bn (equivalent to 3.5% of the budget). Shortfalls in revenue \nresult into non implementation of planned activities. \n\uf0b7", "metadata": {"page": 299, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nOut of 20 quantified activities worth UGX.105.9Bn that were assessed; 13 \nactivities representing 65% were fully implemented, 5 activities \nrepresenting 25% were partially implemented, while 2 activities \nrepresenting 10% were not implemented. I advised management to roll \nover critical activities to subsequent years and ensure that they are \nimplemented before the end of the National Development Plan III. \n\uf0b7 \nI noted that funds to the tune of UGX.834Mn were irregularly diverted \nfrom the activities on which they were budgeted and spent on other \nactivities without seeking and obtaining the necessary approvals. I \nadvised management to always ensure that proper authorization is \nobtained before implementing any unbudgeted activities. \n\uf0b7 \nMost of the research projects that had received funds for COVID-19 \nVaccines and Treatments had not made much progress. Delays were \nmajorly attributed to the late disbursement of funds and delayed delivery", "metadata": {"page": 299, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "of Equipment. I advised management to ensure thorough due diligence \nbefore funds are allocated to the projects. \n5 \nKiira Motors Corporation. \n2020/21 \n \nOpinion \nUnqualified \n\uf0b7 \nCabinet approved the roadmap for the commercialisation of the Kiira \nElectric vehicle project with a seed fund of UGX.143.7Bn to be availed \nover a period of 4 years effective 2018/19. Only 59% of the seed fund \nhad been released in the previous three financial years, casting doubt as \nto whether the balance of UGX.58.4Bn (41%) would be released in the \nremaining one year. Failure to promptly fund the project, may lead to \nhigh-cost overruns and delays in realising the intended objectives. In \naddition, it may cast doubts on its sustainability. \n\uf0b7 \nKMC signed a Memorandum of Understanding (MOU) with National", "metadata": {"page": 299, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Enterprise Corporation (NEC) on the 15th January 2019 for the \nconstruction of the Kiira Vehicle Plant start-up facilities at the cost of \nUGX.63.64Bn. I noted that of the civil works that were to be completed \nby June 2021 (a period of 2 years and six (6) months), only 82% of those \nworks had been completed due to insufficient funding. Underfunding has \naffected the progress of the plant construction which further delays the \nrealisation of the intended objectives. \n\uf0b7 \nMinistry of Science, Technology and Innovation (represented by Kiira \nMotors Corporation) and Makerere University were collaborating in the \nDevelopment of a Low-Cost Open Design Medical Ventilator named \nBulamu, that could be manufactured locally. Although UGX.74Mn was \nreceived from Resilient Africa Network Ran Ltd towards the completion of \nthe development of the Ventilator, the development was behind schedule. \nThe delays may affect the realisation of intended objectives. \n\uf0b7", "metadata": {"page": 299, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nI noted that Makerere University received UGX.8.92Bn for the Kiira \nMotors Project between FY2012/13 and FY2015/16 for the construction of \nthe Kiira Vehicle Plant Start-Up facilities in Jinja. However, the university \nhad not released these funds for over eight years. I advised management", "metadata": {"page": 299, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "289 \n \nto follow up on the matter with all responsible stakeholders. \n6 \nUganda National Council for \nScience and Technology. \n2020/21 \n \nOpinion \nUnqualified \n\uf0b7 \nI noted that out of the budgeted revenue of UGX.20.53Bn for 2020/21; \nUGX.24.59Bn was collected, representing a performance of 120% of the \ntarget. \n\uf0b7 \nOut of the 41 outputs assessed, 34 outputs representing 83% were fully \nimplemented; four (4) outputs representing 10% were partially \nimplemented, while three (3), representing 7%, were not implemented. \n\uf0b7 \nI noted that there was no evidence that the Accounting Officer prepared \nor submitted the annual budget performance reports of the Council by \n31st July 2021 as required by regulations. \n\uf0b7 \nI noted that the entity did not prepare and submit the annual monitoring", "metadata": {"page": 300, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "plans to the line Ministry for consolidation and onward transmission to the \nMinistry of Finance Economic and Economic Planning. \n\uf0b7 \nI established that UGX.94Mn was directly paid to staff\u2019s personal bank \naccounts, yet this money could have been directly paid to the intended \nfinal recipients. \n\uf0b7 \nOut of the 85 planned activities assessed, 69 outputs/activities \nrepresenting \n81% \nwere \nfully \nimplemented; \n9 \noutputs/activities \nrepresenting 11% were partially implemented, while seven (7) \noutputs/activities representing 8% were not implemented at all. \n\uf0b7 \nI noted that the Council did not produce the annual report as required by \nthe UNCST Act. \n\uf0b7 \nA review of the procurement file for the Supply of ICT Equipment under \nEDCTP-SCRECU Project revealed no evidence of any public bid opening", "metadata": {"page": 300, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "session, which creates doubts as to whether the bidders attended the bid \nopening session. \n\uf0b7 \nAudit noted that the Council had outstanding Pay As You Earn (PAYE) \npayments relating to July 2019 and June 2020 amounting to \nUGX.45,457,013 as of 30th June 2021, which had not been remitted to \nUganda Revenue Authority \n7 \nUganda Industrial Research \nInstitute (UIRI). \n2020/21 \n \nOpinion \nUnqualified \n\uf0b7 \nI noted that 3.2 million masks were tested, treated and packaged, but the \ncontract for the distribution of the reusable face masks was terminated \nafter only 1.5 million masks had been consumed. The stock of over 1.7 \nmillion face masks has remained unutilised at the time of reporting. \nGovernment is likely to incur nugatory expenditure of almost UGX.4.08Bn", "metadata": {"page": 300, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "in the event no market is obtained for the masks. \n\uf0b7 \nI noted that a number of machinery at the UIRI Namanve campus had \nbeen procured ahead of the proposed contract on mask production in the \ntextile section. I noted that some equipment has remained unused/idle or \nhas not been put to use due to lack of technical support from the supplier \nto operationalize the equipment. Management attributed the failure to the \nrestrictions on international travel for the supplier\u2019s technical staff to \ncome. \n\uf0b7 \nThe absence of a Board Chairperson has resulted in the failure of the \nBoard to be constituted to meet and handle its mandate as provided for \nunder Section 7 of the UIRI Act 2003. There is no evidence that the \nBoard has ever met. There is a risk that the entity will lose strategic \nfocus, since there is no supervisory oversight over its operations. \n\uf0b7 \nI observed that the Institute signed MoUs with the different incubatees in", "metadata": {"page": 300, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "which funds have been spent to support the projects. However, the \nInstitute has not signed any binding contracts with the participants, which", "metadata": {"page": 300, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "290 \n \nmakes dispute resolution difficult in case it arises. In addition, I noted \nthat 50 of the 95 incubatees reviewed had expired MoUs at the time of \nreporting, while others were not paying NTR to the Institute as per \nagreement. \n\uf0b7 \nIt was observed that UIRI paid a total of UGX.1.286Bn in gratuity, for \nwhich PAYE was wrongly computed, resulting into an overpayment of \nUGX.100,778,201 to staff. The staff over payments can lead to financial \nloss to government, in the event the Institute is unable to recover from \nthe concerned staff. \n \nGENDER \nAND \nSOCIAL \nDEVELOPMENT SECTOR \n\uf0b7 \n \n1 \nEqual \nOpportunities \nCommission. \n2020/21 \n \nOpinion \nUnqualified", "metadata": {"page": 301, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Opinion \nUnqualified \n \n\uf0b7 \nOut of the approved budget of UGX.12,071,754,441, a sum of \nUGX.12,016,602,345 was realized resulting into a shortfall of UGX. \n55,152,096.00, representing 0.46%. \n\uf0b7 \nOut \nof \nthe \nwarrants \nof \nUGX.12,016,602,345, \na \nsum \nof \nUGX.11,874,386,080 was spent indicating an absorption rate of 98.8 %. \nIn addition, the Commission received off-budget financing to a tune of \nUGX.3.723 Bn which was not transferred to the consolidated fund. \n\uf0b7 \nI sampled 9 outputs with 95 activities worth UGX.10,990,686,400,", "metadata": {"page": 301, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "representing 91% of the total budget, and noted that 1 output (11%) \nwith 04 activities and expenditure worth UGX. 1.05Bn were fully \nquantified. In addition, Four (4) outputs with twenty-five 25) activities \nworth UGX.9.47 Bn were partially implemented. Out of the twenty-five \n(25) activities, the entity fully implemented sixteen (16) activities, two (2) \nactivities were partially implemented, while seven (7) activities remained \nunimplemented. \n\uf0b7 \nI noted long outstanding receivables of UGX.211,105,359 from interdicted \nstaff, and management has not yet instituted recovery measures due to \nthe ongoing court cases. \n\uf0b7 \nI noted that funds to the tune of UGX.63,568,761 were irregularly re-\nallocated from the activities on which they were budgeted and spent on \nother activities without seeking and obtaining the necessary approvals.", "metadata": {"page": 301, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nI noted that 244 accumulated cases from 2017/18 are still pending as at \n30th June 2021. Over the last three years 48% of the registered cases \nhave remained un-concluded during the year of registration. In addition, \nthe legal department that handles petitions is at a 50% staffing level. \n\uf0b7 \nI noted that the Commission has 81 approved staff positions, but only 50 \n(62%) positions were filled leaving 31 (31%) posts vacant. \n\uf0b7 \nI noted that the land and building on plot 7c, Luthuli close, Bugolobi \nwhere the EOC offices are located was transferred to the Commission by \nthe Ministry of Gender, labour and Social Development. However, there \nwas no trace of the original title, and there was no documentary evidence \nof handover of the title to EOC management. \n\uf0b7 \nI noted that the report on gender and equity compliance of the budget \nframework papers was produced in December 2020, eleven (11) months", "metadata": {"page": 301, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "later than the Parliamentary submission of the required certification and \nresponsive measures of February 2020, contrary to the PFMA. \n\uf0b7 \nI noted that the Commission lacked an independent Audit Committee, \nhowever, the functions of the Committee were being undertaken by the \nCommissioners who are part of the Commission management, thus \nposing serious challenges of conflict of interest.", "metadata": {"page": 301, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "291 \n \n2 \nMinistry of Gender, Labour \nand \nSocial \nDevelopment \n(MoGLSD) \n2020/21 \n \nOpinion \nUnqualified \n \n\uf0b7 \nOut of the approved budget of UGX. 153.01Bn, a sum of UGX.148.47Bn \nwas warranted resulting into a shortfall of UGX.4.54Bn, representing \n2.97% of the budget. \n\uf0b7 \nOut UGX.148.47Bn warranted, a sum of UGX.147.63Bn was spent \nindicating an absorption rate of 99.4%. \n\uf0b7 \nThe Ministry received off-budget financing of UGX.11.598 Bn that was not \nappropriated by Parliament. \n\uf0b7 \nI sampled fifteen (15) outputs with a total of thirty (30) activities and", "metadata": {"page": 302, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "expenditure worth UGX.105.44Bn, representing 87.76% of the total \nbudget, and noted that 9 outputs (36%) with 11 activities worth \nUGX.79.33Bn were not quantified at all. In addition, out of the 16 \nquantified outputs with 20 activities assessed, 12 outputs (75%) were \nachieved, 15 activities (75%) were fully achieved/implemented, while 4 \nout \nputs \nwith \n5 \nactivities \nrepresenting \n25% \nwere \npartially \nachieved/implemented. \n\uf0b7 \nThe Ministry had payables of UGX 37,394,048,164. Of these, a sum of \nUGX 36,075,485,050 (96.5%) related to funds not remitted to older \npersons under the Social Assistance Grant and Empowerment Programme \n(SAGE). \n\uf0b7", "metadata": {"page": 302, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "(SAGE). \n\uf0b7 \nThe Ministry made a cumulative total disbursement of UGX.113.22Bn to \nthe Youth Livelihood Programme (YLP) by 30th June 2021 to 13,095 \nYouth groups. However, out of the expected recoverable funds of \nUGX.78.10Bn, only UGX.40.14Bn was recovered, leaving an outstanding \namount of UGX.37.96Bn. \n\uf0b7 \nThe Ministry recovered UGX.40.14Bn YLP funds from Local Governments, \nbut only UGX.37.59Bn was transferred to the recovery account in BOU, \nleaving a balance of UGX.2.54Bn. \n\uf0b7 \nI noted that out of the total UGX. 37.59Bn received on the YLP revolving \nfund account in Bank of Uganda, only UGX.19.93Bn (53%) was revolved", "metadata": {"page": 302, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "to other Youth Interest Groups, leaving a balance of UGX.17.65Bn (47%) \nnot revolved. \n\uf0b7 \nOut of the budgeted UGX.188Bn for the Women Entrepreneur Programme \n(UWEP) for the period of five years since financial year 2015/16, only \n135Bn (72%) had been released over the same period leading to a \nprogramme budget shortfall of UGX.53Bn (28%). \n\uf0b7 \nOut of UGX.27.61Bn due for recovery under UWEP by 30th June, 2021, a \nsum of UGX.20.19Bn was recovered leaving a balance of UGX.7.42Bn, \nthus indicating a recovery rate of 73%. \n\uf0b7 \nA sum of UGX.2.64Bn recovered under the UWEP could not be tagged to \nspecific Local Governments and individual women groups. \n\uf0b7", "metadata": {"page": 302, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nThe Labour advisory (LAB) Board did not function in the financial year \nunder review to deliberate on matters affecting workers. This meant that \nno advisory services were extended to Government on matters of \nemployment and industrial relations. \n\uf0b7 \nThe Medical Arbitration Board (MAB) met only in one quarter during the \nentire financial year (February 2021) despite having over 150 pending \ncases awaiting arbitration as at 30th June 2021. I further noted that \nsome cases have been pending for over 9 years. \n\uf0b7 \nI noted that Uganda has only three signed bilateral agreements in \nprotection of migrant workers with Saudi Arabia, the Hashemite Kingdom \nof Jordan and the United Arab Emirates. Agreements with other", "metadata": {"page": 302, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "292 \n \ndestination countries such sa; Kuwaiti; Qatar; Bahrain; Afghanistan; Iraq; \nSomalia; Turkey and Oman are still under process. \n3 \nNational Council for People \nwith Disabilities \n2020/21 \n \nOpinion \nUnqualified \n \n \n\uf0b7 \nOut of the approved budget of UGX.1,236,047,430 expected through the \nMOGLSD a sum of UGX.921,555,246 was realized resulting into a shortfall \nof UGX. 314,492,184, which is 75% of the budget. The shortfall has since \nled to 43% increase in payables relating to mainly unpaid gratuities to \nstaff, totalling UGX 539,360,000 at year end. \n\uf0b7 \n \n\uf0b7", "metadata": {"page": 303, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \n \n\uf0b7 \nOut of the total funds available of UGX.922,507,816 a sum of \nUGX.896,409,230 was spent indicating an absorption level of 97.3 %. \nThe unspent balance of UGX. 26,098,586 related to the production of the \ndisability status report activities that were not undertaken. \n\uf0b7 \n \n\uf0b7 \nI sampled eleven (11) outputs with thirteen (13) activities worth UGX. \n877,320,000, representing 71% of the total budget, and noted that 10 \noutputs (91%) with eleven (11) activities and expenditure worth UGX. \n0.5899Bn were fully quantified. In addition, One (1) output with two (2) \nactivities worth UGX.0.1221Bn was insufficiently quantified. Out of the", "metadata": {"page": 303, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "ten (10) fully quantified outputs, three (3) outputs with three (3) \nactivities worth UGX 0.0135Bn were fully implemented; six (6) outputs \nwith seven (7) activities worth UGX 0.558Bnwere partially implemented \nand one (1) output with two (2) activities worth UGX 0.0184 were not \nimplemented. The disability status report was not developed. \n\uf0b7 \n \n\uf0b7 \nTo-date, council has not fully taken over the property of the Uganda \nFoundation for the blind, as such land located at Kireka and Mayuge has \nsince been encroached upon by unknown persons. Council is at risk of \nlosing these and other properties due to delays in taking possession and \ntitle. \n4 \nNational Council for Older \nPersons (NCOP) \n2020/21 \n \nOpinion \nUnqualified \n \n\uf0b7", "metadata": {"page": 303, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nOut of the budgeted revenue of UGX. 726,000,000 for the financial year \n2020/2021, UGX. 726,606,000 was received representing over 100% \navailability of funds for expenditure. This resulted in excess revenue of \nUGX. 606,000. \n\uf0b7 \nOut of the released funds amounting to UGX. 726,606,000 and \nunbudgeted Non-Tax revenue of UGX 1,198,590, only UGX.709,472,400 \nwas spent by the entity resulting into an unspent balance of UGX. \n18,332,190, representing absorption level of 97.5%. \n5 \nUganda National Cultural \nCentre \n2020/21 \n \nOpinion \nUnqualified \n \n\uf0b7", "metadata": {"page": 303, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nOut of the approved budget of UGX 15,407,572,000 a sum of UGX \n13,245,324,701 was realized, resulting into a shortfall of UGX \n2,162,247,299 representing 14% of the total budget. \n\uf0b7 \nOut of the total receipts of UGX 13,245,324,701, only UGX \n10,700,171020 was spent by the entity resulting in an unspent balance of \nUGX. 2,545,147,681 representing absorption level of 81%. \n\uf0b7 \nFor over four years, UGX 652,414,611 is still owed to a private company \nand this may result into litigation. \n\uf0b7 \nFollowing parliament\u2019s pronouncement to collect UGX 1.6 Bn from a \nprivate company for the use of Nommo Gallery, Recovery measures have \nremained futile. UNCC has since stopped charging rent from the \ncompany.", "metadata": {"page": 303, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "293 \n \n\uf0b7 \nCovid-19 stimulus funds amounting to UGX 6.8 Bn were paid in two \nbatches to music/Arts promoters, without clearly documented criteria. \n6 \nThe \nNational \nChildren \nAuthority (NCA) \n2020/21 \n \nOpinion \nUnqualified \n \n \n \n\uf0b7 \nOut of the approved budget of UGX. 901,908,000 a sum of UGX. \n826,112,357 was realized resulting into a shortfall of 104,143,334, \nrepresenting 8.7%. \n\uf0b7 \nOut of the subvention receipts of UGX. 797,764,666 and non-tax revenue \nof UGX 28,347,691, a sum of UGX. 825,311,734 was spent indicating an", "metadata": {"page": 304, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "absorption rate of 99.9%. \n\uf0b7 \nThe Authority has no governing board and this has led to absence of \npolicy and operational guidelines, and irregular short term employment \ncontracts. \n\uf0b7 \nThe report on the state of children under the lock down period revealed \nlimited access of reading materials provided, increase in physical abuse, \nteenage pregnancies and in some instances death. This was due to \ninadequacies in law enforcement, capacity and resource constraints for \nextension works at district level and lack of community awareness on the \nchild rights legal framework. \n7 \nNational Library of Uganda \n2020/21 \n \nOpinion \nUnqualified \n \n\uf0b7 \nOut of the approved budget of UGX.1,228,432,118 expected, a sum of \nUG.1,076,772,693 was realized resulting into a shortfall of UGX.", "metadata": {"page": 304, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "151,659,425, which is 87.6% of the budget. The shortfall has since led to \nincreased rental and gratuity arrears. \n\uf0b7 \nOut of the total funds available of UGX. 1,076,772,693 a sum of \nUGX.1,041,279,372 was spent indicating an absorption level of 96.7%. \nThe unspent balance of UGX. 35,493,321 was meant for the clearance \ncosts of the periodical book donations from Book Aid International \n\uf0b7 \nI sampled eleven (11) outputs with a total of twelve (12) activities worth \nUGX.852,906,000, representing 69.4% of the total budget, and noted \nthat Ten (10) outputs with a total of eleven (11) activities and \nexpenditure worth UGX.0.801Bn were fully quantified. In addition, One", "metadata": {"page": 304, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "(01) output with One (01) activity and expenditure worth UGX.0.012 Bn \nwas not quantified. Out of the ten (10) fully quantified outputs, One (1) \noutput with one (1) activity and expenditure worth UGX 0.010Bn was fully \nimplemented. Six (06) outputs with seven (7) activities worth \nUGX.0.775Bn were partially implemented. Three (3) outputs with two (3) \nactivities worth UGX.0.028Bn were not implemented. Review of the entity \nstrategic plan 2016-2021 and production of a new one, and Sensitization \nof publishers on ISBN requirements were some of the activities not \nundertaken. \n\uf0b7 \n NLU has outstanding rental obligations of up to UGX.145,351,824 which \nonly attract litigation. \n\uf0b7 \n2 Acres of land initially allocated to the NLU has been re-allocated without \ncompensation. \n8", "metadata": {"page": 304, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "compensation. \n8 \nNational Women\u2019s Council \n2020/21 \n \nOpinion \nUnqualified \n \n\uf0b7 \nOut of the approved budget of UGX. UGX.3,589,554,501, a sum of \nUGX.3,644,076,229 \nwas \nrealized \nresulting \ninto \na \nshortfall \nof \nUGX.31,238,272, representing 99% performance. \n\uf0b7 \nOut \nof \nthe \ntotal \nreleased \nfunds \nfor \nthe \nfinancial \nyear \nof \nUGX.3,644,076,229, only UGX.3,597,158,934 was spent by the entity", "metadata": {"page": 304, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "resulting into an unspent balance of UGX.46,917,295 representing an \nabsorption level of 99%. \n\uf0b7 \nI noted that NWC did not link its budget to the strategic plan with \nactivities worth UGX.1,686,300,000 that were specified in the entity", "metadata": {"page": 304, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "294 \n \nstrategic plan for implementation during the fourth year (20/21) of the \nplan not being included in the budget for FY 2020-2021. NWC strategic \nplan is not aligned to that of the MoGLSD and hence not aligned to the \nNDP III. \n\uf0b7 \nAll nineteen (19) outputs with thirty-five (35) activities and expenditure of \nUGX.3,597,158,934 were not quantified to enable assessment extent of \noutput and activity implementation. \n\uf0b7 \nNo risk assessments or review of internal controls were undertaken on \nthe council\u2019s operational processes during the year. \n9 \nNational Youth Council \n2020/21 \n \nOpinion \nUnqualified \n \n\uf0b7 \nThe entity budgeted to receive UGX.3.075Bn out of which UGX.2080Bn", "metadata": {"page": 305, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "was received, resulting in a shortfall of UGX.0.995 Bn which is 32% of the \nbudget. I also noted that out of the total receipts for the financial year of \nUGX 2.080 Bn, UGX 2.079 Bn was spent by the entity representing \nabsorption level of 100%. \n\uf0b7 \nI noted that Eight (08) outputs with a total of Seventeen (17) activities \nand expenditure worth UGX.0.901 Bn were fully quantified. Fourteen (14) \noutputs with a total of Seventeen (17) activities and expenditure worth \nUGX 1.079 Bn were not quantified at all. \n\uf0b7 \nTwo (02) output with six (6) activities and expenditure worth UGX 0.230 \nBn were fully implemented. UGX.0.435 Bn were partially implemented. \nwhile two (2) outputs with six (6) activities worth UGX.0.236Bn were not", "metadata": {"page": 305, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "implemented. The Accounting Officer stated that some of these activities \nwere frustrated by the COVID-19 rules against public gatherings and \nmeetings. \n\uf0b7 \nIt was noted that Council did not have a risk management policy to \nensure identification of perceived or actual threats it faces in its \noperations. In addition, there was no internal assessment or review of the \ninternal controls done on the entity processes during the year. \n10 \nNational \nSocial \nSecurity \nFund \n2020/21 \n \nOpinion \nUnqualified \n \n\uf0b7 \nNo significant matters to report on. \n\uf0b7 \n \n11 \nUNFPA Funded Programme \nRef; \nUGA08CMH/HIV/GBV/UFP/A\nYP/FGM \nimplemented \nby \nthe Ministry of Education \nand Sports, 2020", "metadata": {"page": 305, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "and Sports, 2020 \n \nOpinion \nUnqualified \n \n\uf0b7 \nNo significant matters to report on. \n \n12 \nUNFPA Funded Programme \nRef: \nUGA08CMH/HIV/GBV/UFP/A\nYP/FGM \nimplemented \nby \nThe \nMinistry \nof \nHealth, \n2020 \n \nOpinion \nUnqualified \n\uf0b7 \nNo significant matters to report on.", "metadata": {"page": 305, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "295 \n \n \n13 \nUNFPA Funded Programme \nRef; \nUga08cmh/Hiv/Gbv/Ufp/Ayp\n/Fgm Implemented by The \nMinistry \nof \nJustice \nand \nConstitutional Affairs 2020 \n \nOpinion \nUnqualified \n \n\uf0b7 \nNo significant matters to report on. \n\uf0b7 \n \n14 \nUNFPA Country Programme \nComponent of Data and \nPopulationdynamics \nImplemented by Ministry of \nGender, Labour & Social \nDevelopment (Mglsd) 2020 \n \nOpinion \nUnqualified \n \n\uf0b7 \nNo significant matters to report on. \n \n15 \nUnfpa \nFunded", "metadata": {"page": 306, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Unfpa \nFunded \nProgrammeme Component \nof Data and Population \nDynamics Implemented by \nNational Planning Authority \n(Npa) 2020 \n \nOpinion \nUnqualified \n \n\uf0b7 \nNo significant matters to report on. \n \n16 \nUnfpa Funded Programme \nComponent of Data and \nPopulation \nDynamics \nImplemented by National \nPopulation \nCouncil \n(Npc) \n2020 \n \nOpinion \nUnqualified \n \n\uf0b7 \nNo significant matters to report on. \n \n17 \nUnfpa Funded Programme \nComponent of Data and \nPopulation \nDynamics \nImplemented \nby \nUganda \nBureau of Statistics \n2020 \n \nOpinion", "metadata": {"page": 306, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Opinion \nUnqualified \n\uf0b7 \nNo significant matters to report on. \n \n \nHEALTH SECTOR \n \n1. \nCentre for Disease Control \nand Prevention (CDC) \n \nOpinion \nUnqualified \n \n \n\uf0b7 \nI noted a variance of US$.241,921 between the expenditure recorded in \nthe accounting system and the expenditure reported in the quarterly \nfinancial reports for the year ended 30th September 2020. The \nexpenditure reported per quarterly reports totaled US$.3,177,866 as \nopposed to the audited total expenditure of US$.2,935,945. \n\uf0b7 \nA review of budget performance i.e., the budget for the Cooperative", "metadata": {"page": 306, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "296 \n \n \nAgreement Grant/ Notice of Award vs actual expenditures showed that \nmanagement of CDC \u2013 UPS had executed most of the budgeted activities \nfor the year ended 30th September 2020. The overall budget \nperformance was 97%. \n\uf0b7 \nI further noted instances of budget over runs to a tune of US$.198,986 \non three budget lines, a practise not permitted under the Cooperative \nAgreement. \n\uf0b7 \nFrom the tests conducted on a sample of non-payroll disbursements (i.e. \nsupplies contract costs, Fringe Benefits, travel and other direct costs), I \nnoted that cost totalling to US $ 54,135 were inadequately supported. \n\uf0b7 \n \n\uf0b7 \nI noted that monthly financial returns are supposed to be submitted by \nthe 15th day of the subsequent month, but this was not complied \n2 \nCentre for Disease Control", "metadata": {"page": 307, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Centre for Disease Control \nProject (PEPFAR Grant No: \n6NU2GGH002221-01-01) \n30th September 2020 \n \nOpinion \nUnqualified \n\uf0b7 \nI noted that there was low absorption of project funds. I noted that out \nof the total receipts; only USD 1,864,527 (UGX. 6,884,001,756) was \nutilized leaving a balance of USD. 868,756 (UGX. 3,207,525,075); \nrepresenting an absorption level of 68.2%. \n\uf0b7 \nI observed that the Project Chart of Accounts was not aligned with the \nIFMS Accounting codes. \n\uf0b7 \nI noted significant delays in the approval and payment for most activities \nwhereby the average lead time for processing a payment was over three \n(3) months \n3. \nThe Italian Support to the \nUgandan", "metadata": {"page": 307, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Ugandan \nHealth \nSector \nStrategic Plan III (HSSP III) \nand the Peace, Recovery \nand \nDevelopment \nPlan \n(PRDP) \nfor \nNorthern \nUganda - Karamoja Region \nStaff \nHousing \nProject \n(KRSHP) \n\u2013 \nMinistry \nof \nHealth Project. \n2019/20 \n \nOpinion \nUnqualified \n \n\uf0b7 \nThe entire budgeted revenue of UGX.10,543,205,000 in respect of \nexternal financing by the Government of the Italian Republic was not \nreceived during the year. As a result, no planned activity was \nimplemented. \n\uf0b7 \nThe project had a total of EUR.1,442,629.81 available for spending during", "metadata": {"page": 307, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "the year represented by the opening balance. However, the entire \namount remained un-absorbed by the close of the year. \n\uf0b7 \nThe Project had UGX.120,000,000 for spending under Counterpart \nfunding during the year which was all spent. However, out of the amount, \nUGX.100,000,000 was spent on non-project activities. \n4. \nThe \nRehabilitation \nand \nExpansion of Kayunga and \nYumbe \nHospitals \nProject \n(KAYUP) -BADEA No. 0761, \nOFID No. 1628P and SFD \nNo. 6/620 - Ministry of \nHealth Project. \n2019/20 \n \n \n\uf0b7 \nThe project experienced significant revenue shortfalls. Out of the \nexpected receipts of USD 19,064,124.79, the project received funding", "metadata": {"page": 307, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "totalling USD.8,252,401.61 constituting USD. 6,240,515.26 from external \nsources and USD.2,011,886.35 (UGX. 7,505,000,000) from GoU \ncounterpart contribution. This translated into a budget shortfall of USD \n10,811,723.18 (representing 56.71% of the approved budget). \n\uf0b7 \nThere were delays in Project implementation. The project became \neffective on 16th April 2015 and was initially expected to be completed \non 28th February 2020 which was later extended to 31st December 2021. \nHowever, the cumulative project progress was at 99.5% as at 30th June \n2020. Major delays were identified in the procurement and installation of \nMedical equipment, Ambulances, mini-buses and Pick-ups. \n5. \nUganda \nNational \nHealth \nResearch \nOrganization \n(UNHRO). \n\uf0b7", "metadata": {"page": 307, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nUNHRO did not have an approved strategic plan for the period 2015/16 -\n2019/20. The organization implemented a draft strategic plan for five \nyears 2015/2016-2019/2020. I observed that the entity did not fully", "metadata": {"page": 307, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "297 \n \n2019/20 \n \n \nOpinion \nUnqualified \nachieve any of the 6 strategic objectives in its expired draft strategic plan \nit has been implementing for the last five years. \n\uf0b7 \nI noted that the Organization did not have a governing Board during the \nyear under review, after the term of office for all former members of the \nBoard expired in 2016. \n\uf0b7 \nThe Sessional Parliamentary Committee on Social services recommended \nthe granting of a vote status to the Organization. This was followed by \nissuance of statutory instruments and the gazetting and commencement \nof the Uganda National Health Research Organisation Act, 2011 on the \n22nd day of January 2016. However, it was noted that the Organization \nhad not been granted a vote status by the time of audit. \n\uf0b7 \nNo regulations were put in place to operationalize the UNHRO Act 2011.", "metadata": {"page": 308, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "There were no regulations to guide UNHRO staff and stakeholders on \nmatters such as regulation of the operations of the constituent research \ninstitutions, human resources, finance and administration, the general \noperations of the Organization. \n\uf0b7 \nThe employment contract on file for the Director General expired in April \n2018 and had not been renewed by the time of audit. \n\uf0b7 \nOnly 12 out of the approved 26 positions in the Organizational Structure \nhad been filled resulting into a staffing gap of 14 positions. \n\uf0b7 \nUNHRO had an annual work plan of UGX 2,080,000,000 for the financial \nyear 2019/2020. However, I noted that the Organization was financed by \na subvention of only UGX 240,000,000, through the Ministry of Health \nthereby resulting into a funding gap of UGX. 1,840,000,000. \n\uf0b7 \nA review of the Organization\u2019s Scheme of service and staff contracts", "metadata": {"page": 308, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "revealed that most of the institution staff were only paid their Basic salary \nleaving out the other packages that form part of their consolidated pay \nsuch as housing, transport and medical allowances. \n6. \nUganda \nNurses \nand \nMidwives Council (UNMC). \n2019/20 \n \n \nOpinion \nQualified \n\uf0b7 \nThe Council made payments worth UGX 1,465,751,440 in the year ended \n30th June 2019 which did not have supporting documents such as \ninvoices, payment request forms and payment vouchers. I noted that no \naction had been taken by Management to account for the funds in the \nyear ended 30th June 2020. \n\uf0b7 \nManagement reported a financial loss of UGX.444,400,000 during the \nyear. The amount was transferred from UNMC\u2019s Stanbic Bank Account", "metadata": {"page": 308, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "No. 9030005852950 to M/S RAM Engineering (U) Ltd under fraudulent \ncircumstances. \n\uf0b7 \nCouncil failed to collect budgeted revenue amounting to UGX \n557,669,951 during the year. \n\uf0b7 \nCouncil had a total of UGX. 7.77bn available for implementation of \nplanned activities. The total receipts for the financial year under review \nwere UGX 2.71 bn. However, only UGX 1.84bn was absorbed \n(representing 23.7%) leaving a balance of UGX. 5.93bn. \n\uf0b7 \nI observed that the Council partially implemented six (6) of its planned \noutputs with a total of Nineteen (19) activities worth UGX 268.41M. I also \nobserved that seven (7) outputs with a total of twenty (20) activities \nwere not implemented at all. \n\uf0b7 \nThe entity did not prepare and submit the annual monitoring plans to", "metadata": {"page": 308, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "MoFPED and NPA as required. Further, the entity did not prepare and \nsubmit quarterly monitoring reports to the MoFPED as required. \n\uf0b7 \nA review of the Organization\u2019s Annual cumulative performance report and", "metadata": {"page": 308, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "298 \n \nthe entity work plan revealed cases where the reported set targets were \nnot consistent with the set targets in the entity work plans. \n\uf0b7 \nI observed conflicting in the Council governing laws. Section 51(2) of the \nPublic Finance Management Act, 2015 requires the Accounting Officer of \na public corporation, within two months after the end of each financial \nyear, to prepare and submit to the Accountant-General, a summary \nstatement of financial performance of the public corporation and give a \ncopy of the summary statement to the Secretary to the Treasury. On the \ncontrary, Section 18 (1) Part IV of the Nurses and Midwives Act, 1996 \nrequires the Council to keep proper books of accounts and prepare the \nannual financial statements of accounts for the immediately preceding \nfinancial year not later than three months in the following year. Conflict in \nthe governing laws hampers effective execution of UNMC mandate. \n\uf0b7", "metadata": {"page": 309, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nSection 4 of the UNMC Act 1996, requires each Council member to be a \nseconded representative of a particular institution or body and must be \nappointed by the Minister. However, a review of Council Members records \nrevealed that out of the seventeen (17) members, none of them were \nseconded representatives of their respective bodies. \n\uf0b7 \nGood Corporate Governance practices require separation of duties of \nboard members to ensure their independence in the discharge of duties. \nOn the contrary, a review of the composition of the Audit Committee \nrevealed that Chairperson of the full council is also a member of the \ncommittee. \n\uf0b7 \nI noted that the Council had not been managed by a substantive \nRegistrar since 2017. The current Registrar\u2019s initial appointment ran from \nNovember 2018 to March 2019. However, management did not provide a \nvalid appointment letter to confirm her appointment after March 2019. \n\uf0b7 \nA review of the Governing council minute ref FC/08/14/06/2020 revealed", "metadata": {"page": 309, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "that council members were concerned about the significant delays in \nissuing of Practicing Certificates that hindered the recruitment of nurses \nin the industry. Furthermore, Management did not avail status reports on \ncertificates that were produced. \n\uf0b7 \nPayment files and PPDA monthly reports revealed that supplies and \nservice worth UGX 46,183,800 were procured and paid without going \nthrough the procurement process given that there were no LPOs or \nprocurement documents availed to confirm that the supplier went \nthrough the procurement process. \n\uf0b7 \nUNMC has three (3) operational vehicles. However, a detailed review of \nthe fleet management revealed that there were no log books maintained \nto track the vehicle movements as required by the regulations. Further, \nthere were no records being maintained to keep track of vehicle history, \nperformance, servicing, overheads, repairs and maintenance. \n7. \nUganda \nSanitation \nFund \n(USF) \u2013 Ministry of Health", "metadata": {"page": 309, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "(USF) \u2013 Ministry of Health \nProject. \n2019/20 \n \nOpinion \nUnqualified \n\uf0b7 \nA review of the annual work plan and the performance reports for the \nUganda Sanitation Fund revealed that there were inconsistencies in \nplanned targets and those reported upon. Furthermore, the planned \ntargets/outputs in the work plan lacked sufficient detail (description of \noutputs) to facilitate a meaningful comparison with the targets in the \nperformance reports. \n\uf0b7 \nI observed that the Project did not implement twenty-seven (27) planned \noutputs with a total budget of UGX 1.506Bn, and Five (5) outputs with a \ntotal budget of UGX 0.476bn could not be verified in regard to \nimplementation due to unclear targets. \n\uf0b7 \nThere were delays in disbursement of funds to sub grantees. A review of", "metadata": {"page": 309, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "299 \n \nthe quarterly district performance work plans and reports submitted to \nthe Ministry, revealed that, the quarterly release of funds from MOFPED \nwas not done on time. As a result, Quarter 1 funds were disbursed in \nquarter 2, quarter 2 funds were disbursed in quarter 3, and quarter 3 \nfunds disbursed in quarter 4. \n\uf0b7 \nSince the project\u2019s inception, only a total of UGX.1.3bn (USD 386,259) \nout of the agreed GOU counterpart funding commitment of USD \n2,000,000 had been disbursed to the districts resulting into a funding \nshortfall of USD 1,613,741. \n\uf0b7 \nThe program\u2019s average national progress on Open Defecation Free (ODF) \ntarget stood at 60.9% yet the project is in its last year of implementation. \nAn Assessment of the 9-year targets (July 2011 to June 2020) revealed", "metadata": {"page": 310, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "that out of the targeted 11,354 villages, only 9,632 achieved ODF targets, \nrepresenting 84.8%; a total of 140 of the 400 targeted parishes \nrepresenting 35% achieved ODF; and only 27 of the targeted 360 sub \ncounties achieved the ODF target representing 7.5% achieved ODF \nstatus. \n8 \nAllied Health Professionals \nCouncil. \n2019/20 \n \nOpinion \nUnqualified \n\uf0b7 \nThe Governing Council stated that a material uncertainty existed \nregarding the continued operation of Allied Health Professionals Council in \nthe foreseeable future. \n\uf0b7 \nManagement\u2019s judgement was informed by a letter from the PS - Ministry \nof Public Service to all Accounting Officers in which guidance was \nprovided on the modalities for management of Public Institutions during \nthe implementation of recommendations on the rationalization of \nAgencies and Public Expenditure. \n\uf0b7", "metadata": {"page": 310, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nI noted that out of the ten (10) sampled outputs with a total of ten (10) \nactivities and expenditure of UGX. 3.127bn, only five (5) outputs with five \n(5) activities and expenditure worth UGX 3.017Bn were fully quantified. \nThe balance of five (5) outputs with five (5) activities and expenditure \nworth UGX.011Bn were insufficiently quantified which made it difficult to \nassess extent of their delivery. \n\uf0b7 \nI observed that out of the five (5) outputs that were fully quantified, \nthree (3) outputs with three (3) activities worth UGX. 1.918Bn were fully \nimplemented. However, the remaining two (2) outputs with two (2) \nactivities worth UGX.1.099Bn were partially implemented. \n\uf0b7 \nThe Council fleet of six (6) sampled vehicles was not annually inspected", "metadata": {"page": 310, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "during the three (3) year period under review to assess their mechanical \ncondition and road worthiness. \n\uf0b7 \nWhereas the Council designated a Transport Officer responsible for \ntransport matters, fuel registers were not maintained for all the six (6) \nmotor vehicles sampled out of nine (9) vehicles held by the Council. \n\uf0b7 \nI noted that nine (9) out of the ten (10) Regional Offices were not \nallocated vehicles to facilitate their operations. \n9 \nJoint \nClinical \nResearch \nCentre. \n2019/20 \n \n \nOpinion \nUnqualified \n\uf0b7 \nThe entity budgeted to receive UGX 20,906,339,925 from development \npartners out of which UGX 19,707,530,000 was received resulting in a \nshortfall of UGX 1,198,809,925. In addition, out of budgeted local", "metadata": {"page": 310, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "revenue of UGX 4,366,651,934, only UGX 2,693,800,000 was generated \nresulting into a shortfall of UGX 1,672,851,934. \n\uf0b7 \nI noted that all the seven (7) sampled outputs with a total of one \nhundred fifty-five (155) activities worth UGX 18.304Bn were partially \nimplemented. Out of the one hundred fifty-five (155) activities, the entity \nfully implemented ninety-three (93) activities (60%), eighteen (18)", "metadata": {"page": 310, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "300 \n \nactivities (12%) were partially implemented while forty-four (44) activities \n(28%), were not implemented by the time of audit. \n\uf0b7 \nI reviewed the balance of \u2018payables falling within one year\u2019 reported in \nthe Statement of Financial Position and Note 21 and noted an increase of \nUGX 121,010,000 from UGX 1,138,910,000 (30th June 2019) to UGX \n1,259,920,000 (30th June 2020). I further reviewed the ageing of the \npayables and noted that included in the outstanding balance of UGX \n1,259,920,000 are payables worth UGX 357,139,495 that had remained \noutstanding for over 90 days. \n\uf0b7 \nSeventeen (17) running motor vehicles which were fully depreciated \naccording to the JCRC Fleet Management Policy and had zero net book", "metadata": {"page": 311, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "value in the schedule of fixed assets were still in use. The entity did not \nrevalue or make annual reviews of its expectations with regard to the \nresidual values and useful lives of the vehicles in question resulting into \nunder valuation/understatement of non-current assets in use in the \nstatement of financial position. \n\uf0b7 \nThe Principal Private Secretary to His Excellency the President\u2019s letter ref: \nPO/1 dated 12th February 2019 directed the Hon. Minister of Finance, \nPlanning & Economic Development to increase Government funding to \nthe Centre from UGX.240 million to UGX.5 billion annually in the \nsubsequent years, that is, with effect from the Financial Year 2019/20. \nAccording to the various communications by the Centre\u2019s Executive \nDirector, the increment in funding was necessitated by the declining \ndonor support. \n\uf0b7 \nHowever, the no-objection for the implementation of the directive was", "metadata": {"page": 311, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "only granted to the PS/ST by the PS MOH through letter ref: 45/415/01 \ndated 4th February 2020. This was when the financial year 2019/20 \nbudget was in the third quarter of implementation. \n\uf0b7 \nContrary to the PPDA requirements, the entity delayed to submit ten (10) \nout of twelve (12) monthly procurement and disposal reports to the \nAuthority for the financial year under review. \n\uf0b7 \nThe Centre had a procurement plan worth for the year under review. I \nnoted that out of the planned procurements worth UGX 6,956,028,077, \nprocurements worth UGX 5,434,128,077 (78%) were implemented while \nthose worth UGX 1,521,900,000 (22%) were not conducted. \n10 \nUganda Medical and Dental \nPractitioners Council. \n2019/20 \n \n \nOpinion \nUnqualified", "metadata": {"page": 311, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Opinion \nUnqualified \n \n\uf0b7 \nThe Governing Council stated that a material uncertainty existed \nregarding the continued operation of Allied Health Professionals Council in \nthe foreseeable future. \n\uf0b7 \nManagement\u2019s judgement was informed by a letter from the PS - Ministry \nof Public Service to all Accounting Officers in which guidance was \nprovided on the modalities for management of Public Institutions during \nthe implementation of recommendations on the rationalization of \nAgencies and Public Expenditure. \n\uf0b7 \nI noted that out of the budgeted Non-Tax revenue UGX.2,891,430,000, \nonly UGX.1,650,811,279 was realized during the year under review \n(representing 57% performance). This hampered effective service \ndelivery. \n\uf0b7 \nContrary to the statutory deadline of 31st day of March for the publication \nall up-to-date registers in the gazette, registers for 2020 had not been", "metadata": {"page": 311, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "published in the gazette by the time of audit in November 2020. \n11 \nThe \nRehabilitation \nand \nExpansion of Kayunga and \n\uf0b7 \nThe project experienced significant revenue shortfalls. Out of the \nexpected receipts of USD 19,064,124.79, the project received funding", "metadata": {"page": 311, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "301 \n \nYumbe \nHospitals \nProject \n(KAYUP) -BADEA No. 0761, \nOFID No. 1628P and SFD \nNo. 6/620 \u2013 Ministry of \nHealth Project. \n2019/20 \n \nOpinion \nUnqualified \ntotalling USD.8,252,401.61 constituting USD. 6,240,515.26 from external \nsources and USD.2,011,886.35 (UGX. 7,505,000,000) from GoU \ncounterpart contribution. This translated into a budget shortfall of USD \n10,811,723.18 (representing 56.71% of the approved budget). \n\uf0b7 \nThere were delays in Project implementation. The project became \neffective on 16th April 2015 and was initially expected to be completed \non 28th February 2020 which was later extended to 31st December 2021.", "metadata": {"page": 312, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "However, the cumulative project progress was at 99.5% as at 30th June \n2020. Major delays were identified in the procurement and installation of \nMedical equipment, Ambulances, mini-buses and Pick-ups. \n12 \nUganda-Spain Debt Swap \nProject. \n2019/20 \n \n \nOpinion \nUnqualified \n\uf0b7 \nI noted that out of the two (2) planned project outputs for the year, one \n(1) output was fully implemented while one (1) output was partially \nimplemented. Management attributed the level of performance to delayed \ncommencement of the preparation of the detailed designs for the \nrefurbishment and equipping of Busolwe General Hospital which involved \napproval of extra charges for the consultant to revise the site survey \nreport. According to management, the COVID-19 pandemic further \naffected the operations of the Consultant. \n\uf0b7", "metadata": {"page": 312, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nDuring the year under review, the Project received a sum of UGX 15.69Bn \nof which UGX.10.63Bn was spent resulting in an unspent balance of \nUGX.5.06Bn (representing an absorption level of 67.8%). \n13 \nUganda \nReproductive \nHealth \nVoucher \nProject \n(URHVP) \nGPOBA \nGrant \nNumber TF015995. \n2019/20 \n \nOpinion \nUnqualified \n\uf0b7 \nA review of the project financial statements as at 30th June 2020 (Note 2 \n& Annex 6.0) together with underlying financial records revealed that the \nproject had bank balances of USD 49.85 and UGX.792 in Bank of Uganda \nat the time of closure. However, Management did not avail documentary", "metadata": {"page": 312, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "proof of closure of these Accounts at the end of the project when sought. \n\uf0b7 \nA review of the agent records revealed that by end of project closure, \nvarious assets acquired under the project had not been handed over to \nthe client as per the agreement. \n14 \nButabika National Mental \nReferral Hospital. \n \nOpinion \nUnqualified \n \n \n\uf0b7 \nThe entity budgeted to collect NTR of UGX 1.24bn during the year under \nreview. However, the hospital collected UGX. 1.15bn thereby resulting \ninto a shortfall of UGX 0.09bn. \n\uf0b7 \nThe Hospital received the entire revised annual budget of UGX 17.023bn \nout of which UGX 16.551bn was spent resulting in unutilized funds of \nUGX 0.472bn. The unspent balance at the end of the financial year was", "metadata": {"page": 312, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "subsequently swept back to the consolidated fund account. \n\uf0b7 \nI noted that the entity submitted all the quarterly performance reports \nafter the prescribed deadline. The Accounting Officer explained that due \nto COVID-19 restrictions, the support offices were operating at 10% \nwhich led to delays in preparation and submission of the quarterly \nperformance reports. \n\uf0b7 \nAccording to the patient admission schedule and the strategic plan, the \nHospital currently handles between 750 and 780 in-patients per month \ncompared to its bed capacity of 550 patients. This implies that 200 to 230 \nadmitted patients either share beds or sleep on the floor. \n\uf0b7 \nI noted that UGX.93,717,182 was utilized for repairs and service for \nvehicles during the year under review. However, there were no repair and \nservice analysis registers for the 13 vehicles that were maintained. \nFurthermore, it was observed that the Hospital Transport Officer did not \nmaintain service charts for all the 13 vehicles. \n15 \n15 \nKawempe National Referral \n\uf0b7 \nThe entity budgeted to collect NTR of UGX. 449m during the year under", "metadata": {"page": 312, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "302 \n \nHospital. \n \nOpinion \nUnqualified \n \nreview, and UGX. 451m was realized, representing a performance of \n100.4% of the target. \n\uf0b7 \nOut of the total receipts for the financial year of UGX 11.723 bn, UGX. \n11.385Bn was spent by the entity resulting in an unspent balance of \nUGX.0.337Bn (representing an absorption level of 97.1%). The unspent \nbalance at the end of the financial year was subsequently swept back to \nthe consolidated fund account. \n\uf0b7 \nI noted that all the eight (8) outputs selected for budget performance \nassessment with a total of eleven (11) activities and actual expenditure of \nUGX 4.6bn were fully quantified. This therefore enabled me to assess the \nHospital\u2019s performance during the year under review.", "metadata": {"page": 313, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nOut of the eight (8) sampled outputs, two (2) outputs were fully \nimplemented while six (6) were partially implemented. I further noted \nthat out of the planned eleven (11) activities under the sampled outputs, \ntwo (2) activities were fully achieved while nine (9) were partially \nachieved. \n\uf0b7 \nA total of UGX 36,870,179 worth of expenditure was charged on other \nthan the budget lines on which the funds were appropriated without \nseeking the necessary approval from the relevant authorities. \n\uf0b7 \nI noted that the Hospital submitted all the quarterly performance reports \nbeyond the prescribed deadlines. \n\uf0b7 \nFrom my review of the annual performance reports and physical \ninspections/verification \nof \noutputs \nreported, \nI \ndid \nnot \nobserve \ninconsistencies in the reported performance. \n\uf0b7", "metadata": {"page": 313, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nI noted that the Hospital accumulated payables/domestic arrears to tune \nof UGX. 799,186,746 up from UGX. 365,151,250 as at 30th June 2020. \n\uf0b7 \nI noted that whereas the Board of Survey Report for the year ended 30th \nJune 2021 established that the Hospital had a closing inventory of various \nitems; this state of affairs was not disclosed as part of the Financial \nStatements under Annex (ii)-Schedule of Inventory, thereby rendering \nthe financial statements incomplete. \n\uf0b7 \nIt was noted that the Hospital stored expired medicines without disposing \nthem as required by the law. Out of the seventy four (74) items of \nexpired drugs, I observed that thirty six (36) had expired by end of \nDecember 2020 (representing 49%). Under the circumstances, lives of \npatients are threatened by the existence of expired medicines at the \nhospital premises. \n\uf0b7", "metadata": {"page": 313, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "hospital premises. \n\uf0b7 \nI noted that the Referral Hospital was heavily congested with patients \ncrowded in the wards and some sleeping on the floors. This was further \nevidenced by the data collected on Bed Occupancy Rates which showed \nan average BOR of 113% for the year under review. Congestion was also \nobserved in the stores where some items were placed directly on the \nfloor exposing them to damage. \n\uf0b7 \nFrom a review of payments and procurements made during the year, I \nnoted that procurements of goods worth UGX 187,406,417 were not \nsupported with ledgers in the stores to track delivery and utilization of the \naccountable inventories procured. \n16 \nKiruddu National Referral \nHospital. \n \nOpinion \nUnqualified \n\uf0b7 \nI noted that the Hospital\u2019s 5-Year Strategic Plan (FY 2020/21-2024/25)", "metadata": {"page": 313, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "had been approved by National Planning Authority (NPA) by the time of \naudit. \n\uf0b7 \nThe entity budgeted to collect NTR of UGX. 1,520,000,000 during the", "metadata": {"page": 313, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "303 \n \n \nyear under review, and UGX. 719,423,137 was realized, representing a \nperformance of 46.9% of the target. \n\uf0b7 \nOut of the total warrants of UGX.18.8Bn received during the financial \nyear, UGX. 18.3Bn was spent by the entity resulting in an unspent \nbalance of UGX. 0.5Bn (representing an absorption level of 97.3%). The \nunspent funds were swept back to the consolidated fund as required by \nthe PFMA. \n\uf0b7 \nOut of the ten (10) outputs selected for budget performance assessment \nwith a total of twenty four (24) activities and expenditure of UGX \n12.16bn, I noted that seven (7) outputs with a total of fourteen (14) \nactivities and expenditure worth UGX 9.99bn were fully quantified. Two", "metadata": {"page": 314, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "(2) outputs with a total of eight (8) activities and expenditure worth UGX \n1.9Bn, was insufficiently quantified. One (1) output with a total of two (2) \nactivities and expenditure worth UGX 0.27bn were not quantified at all to \nenable performance assessment. \n\uf0b7 \nOut of the seven (7) outputs that were fully quantified with a total of \nfourteen (14) activities, four (4) outputs with a total of six (6) activities \nwere fully implemented. Three (3) outputs with a total of eight (8) \nactivities worth UGX 8.45bn were partially implemented. Out of the eight \n(08) activities, the entity fully implemented two (02) activities (25%) \nwhile six (06) activities (75%) remained partially implemented. \n\uf0b7 \nI noted that the Hospital submitted three (3) out of four (4) quarterly \nperformance reports to Treasury within the prescribed deadlines.", "metadata": {"page": 314, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "However, there was no documentary proof of preparation and submission \nof annual monitoring plans and reports to MoFPED and NPA as required. I \nfurther noted inconsistences in the financial information reported in the \nperformance reports when compared with the financial statements. \n\uf0b7 \nA review of drugs supply chain management revealed that on several \noccasions there were drug stock-outs which left Kiruddu Hospital without \nseveral essential, vital and necessary drugs. \n\uf0b7 \nInspection \nof \nthe \nhospital \ndrug \nstores \nrevealed \nthat \nsome \ndrugs/chemicals had expired in the Hospital stores. This could have been \ndue to low utilization rates, receipt of drugs with short shelf life or \nplacement of orders that do not match the usage patterns. \n\uf0b7 \nI noted that 55 new recruits were not cleared by Ministry of Public \nService as required. The Accounting Officer attributed the anomaly to the", "metadata": {"page": 314, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "need to fill critical vacant positions in the hospital. \n17 \nNational Drug Authority. \n \nOpinion \nUnqualified \n\uf0b7 \nNDA had an approved five-year strategic plan FY 2020/21-2024/25 which \nwas well aligned to the National Development Plan in terms of timelines. \n\uf0b7 \nThe financial statements indicated that NTR amounting to UGX 70.73bn \nwas collected during the year against a budget of UGX.68.75bn \nrepresenting 103% performance. \n\uf0b7 \nOut of the total revenue of UGX.70.73bn realized during the financial \nyear, UGX.58.43bn was spent by the entity resulting in balance of \nUGX.12.3bn representing an absorption level of 83%. \n\uf0b7 \nThe Authority did not implement some of its key planned activities during \nthe year which included; herbal inspections, collection of microbiology", "metadata": {"page": 314, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "samples and articles on veterinary drug regulation. \n\uf0b7 \nThe Authority had receivables and prepayments to the tune UGX \n42,607,112,126 at the end of the financial year, out of which UGX \n37,748,567,840 (88.6%) was due from the Ministry of Health. The \npresence of significant balances of outstanding receivables poses the risk", "metadata": {"page": 314, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "304 \n \nof non-recoverability, thus denying the Authority realization of revenue \nfor achievement of its objectives. \n\uf0b7 \nSeventeen (17) running motor vehicles were fully depreciated during the \nprevious year, reflected at zero book value and removed from the \nStatement of Financial Position. Removal from the statement of financial \nposition of assets still in use and with no evidence that future economic \nbenefits will not be expected from disposal of the same, misrepresents \nthe entity\u2019s financial position. \n\uf0b7 \nThere was slow progress on the civil works NDA laboratory Tower. \nFurther, works for the amended building plans for the NDA laboratory \nTower had commenced by the time of audit in August 2021 prior to \napproval by the Metropolitan Physical Planning Authority contrary to \nSection 22 (1f) of the KCCA Act 2010. \n\uf0b7 \nThe Authority fully paid UGX.343,694,683 in advance to providers", "metadata": {"page": 315, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "awarded contracts for the supply of analytical equipment without \nobtaining appropriate advance payment security. I also noted that the \nAuthority signed contracts to a tune of USD 14,872.8 with two domestic \nsuppliers in foreign currency. \n18 \nUganda National Health \nResearch Organization. \n \nOpinion \nUnqualified \n\uf0b7 \nThe Sessional Parliamentary Committee on Social services recommended \nthe granting of a vote status to the Organization. This was followed by \nissuance of statutory instruments and the gazetting and commencement \nof the Uganda National Health Research Organisation Act, 2011 on the \n22nd day of January 2016. However, I noted that the Organization had \nnot been granted a vote status by the time of audit. \n\uf0b7 \nI noted that the Organization did not have a governing Board during the \nyear under review, after the term of office for all former members of the \nBoard expired in 2016. \n\uf0b7", "metadata": {"page": 315, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nThe employment contract on file for the Director General expired in April \n2018 and had not been renewed by the time of audit. \n\uf0b7 \nOnly 12 out of the approved 26 positions in the Organizational Structure \nhad been filled resulting into a staffing gap of 14 positions. \n\uf0b7 \nThe Organization was financed by a subvention of only UGX.240m out of \nwhich 94% was earmarked for wage leaving only 6% for operational \ncosts. \n19 \nUganda National Health \nResearch Organization. \n \nOpinion \nUnqualified \n\uf0b7 \nThe Sessional Parliamentary Committee on Social services recommended \nthe granting of a vote status to the Organization. This was followed by \nissuance of statutory instruments and the gazetting and commencement \nof the Uganda National Health Research Organisation Act, 2011 on the \n22nd day of January 2016. However, I noted that the Organization had", "metadata": {"page": 315, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "not been granted a vote status by the time of audit. \n\uf0b7 \nI noted that the Organization did not have a governing Board during the \nyear under review, after the term of office for all former members of the \nBoard expired in 2016. \n\uf0b7 \nThe employment contract on file for the Director General expired in April \n2018 and had not been renewed by the time of audit. \n\uf0b7 \nOnly 12 out of the approved 26 positions in the Organizational Structure \nhad been filled resulting into a staffing gap of 14 positions. \n\uf0b7 \nThe Organization was financed by a subvention of only UGX.240m out of \nwhich 94% was earmarked for wage leaving only 6% for operational cos", "metadata": {"page": 315, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "305 \n \n20 \nJoint Clinical Research \nCentre (JCRC). \n \n \nOpinion \nUnqualified \n \n\uf0b7 \nJCRC reported trade and other receivables of UGX.4,210,400,000. Out of \nthis UGX.95,254,972 related to the previous financial year. I noted that \nJCRC did not make any provision for bad debts as required by IFRS 9 and \nits Manual. Failure to make provisions may result into overstating \nreported receivables due to unaccounted for risks of non-recoverability. \nIn addition, there was no evidence from the Finance Committee that a \nreview of the bad debts position was annually done. Management \nexplained that in addition to sending out constant reminders to the listed \ndebtors, Management would review the list further for presentation to the", "metadata": {"page": 316, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Finance Committee of the Board. I advised the Accounting officer to \nmake the required provisions for bad debts in accordance with Standards \nand the Manual \n\uf0b7 \nI noted that JCRC signed contracts with local service providers in foreign \ncurrency to a tune of USD 32,258.7. The contracts were for supply of \nBone density kits (USD 25,515); supply of Hematology reagents (USD \n2,060), and; for internet services (USD 4,683). I advised the Accounting \nOfficer to take heed of the PS/ST recommendation and ensure that all \nlocal contracts are awarded in Uganda Shillings. \n21 \nUganda Blood Transfusion \nServices (UBTS). \n \nOpinion \nUnqualified \n \n \n\uf0b7 \nI noted that the entity had prepared and approved its plan. However, \napproval and certification had not yet been obtained from the National \nPlanning Authority.", "metadata": {"page": 316, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Planning Authority. \n\uf0b7 \nWhereas the entity did not budget for collection of NTR, UGX.8,550,000 \nwas collected and remitted to the Treasury during the year under review. \nOut of the total receipts from Treasury of UGX.17.43Bn, only \nUGX.17.20Bn was spent by the entity resulting in an unspent balance of \nUGX.0.23Bn (representing an absorption level of 98.68%). The unspent \nbalance at the end of the financial year was subsequently swept back to \nthe consolidated fund account. \n\uf0b7 \nOnly one (1) output with a total of two (2) activities and expenditure of \nUGX 7.65bn was fully quantified out of the seven (7) outputs with a total \nof sixteen (16) activities and expenditure of UGX 11.99bn sampled for \nassessment. All the two (2) quantified activities under this output were \npartially implemented.", "metadata": {"page": 316, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "partially implemented. \n\uf0b7 \nI noted that funds to the tune of UGX 20,829,692 were irregularly \nreallocated from the activities on which they were budgeted and spent on \nother activities without seeking and obtaining the necessary approvals. \n\uf0b7 \nI noted that the entity submitted performance reports for Q1, Q2, Q3, Q4 \nafter the prescribed deadline. \n\uf0b7 \nThe entity registered an upward trend in accumulation of domestic \narrears between the FYs 2016/2017 (UGX.76,296,521), 2019/2020 \n(UGX.430,885,758) \nand \n2020/21 \n9 \n(UGX.512,086,423). \nOnly \nUGX.97,730,535 was provided in the annual budget to settle domestic \narrears. \n\uf0b7", "metadata": {"page": 316, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "arrears. \n\uf0b7 \nA review of the staff structure of Uganda Blood Transfusion Services \nrevealed that out of the approved structure of 424, only 299 positions are \nfilled leaving a variance of 125 staff positions vacant. \n\uf0b7 \nI noted that apart from Nakasero (Freehold Tenure), Gulu (Leasehold) \nand Mbarara (Freehold Tenure) Blood Banks, there were no title deeds, \nmemoranda of understanding or lease agreements for the land currently \noccupied by the four (4) Regional Blood Banks of Arua, Mbale, Kitovu and \nFort Portal. \n\uf0b7 \nIn addition, there were inconsistencies with the plot number wrongly", "metadata": {"page": 316, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "306 \n \nreflected as Plot 27 instead of 2F on the cover page of the title deed for \nthe land currently occupied by Nakasero Blood Bank. Management wrote \nto the Secretary Uganda Land Commission about the anomaly in a letter \ndated 5/4/2012 Reference number UBTS/ADM/LT/01, no response had \nbeen received to date. Furthermore, 0.079 hectares of Nakasero Blood \nBank were reported to have been encroached on by the fence of Pearl of \nAfrica Hotel on plots 2E and 7A1-9A1 as per the boundary opening \nreports of 23rd November 2009 (S.M Geoteam ltd) and 2nd August 2013 \n(Terrain Consult) who had been appointed by UBTS. \n\uf0b7 \nI noted a one year\u2019s delayed execution of works for the completion of the \nremodelling of a store at Nakasero Blood Bank. A sum of UGX 2.86bn had", "metadata": {"page": 317, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "so far been paid against the contract sum of UGX.3.77bn. \n\uf0b7 \nI noted that a total of UGX.0.968Bn was spent on the Blood Safety \nInformation System during the year. Whereas there was information on \nblood collected, stored and issued during the year, there was no \ninformation on how the 224,303 units of blood that had been issued to \nthe different health facilities had been utilized. \n22 \nUganda Virus Research \nInstitute. \n \nOpinion \nUnqualified \n\uf0b7 \nI noted that the entity had prepared and approved its plan. However, \napproval and certification had not yet been obtained from the National \nPlanning Authority. \n\uf0b7 \nI noted that the entity did not budget or collect NTR during the year \nunder review. \n\uf0b7 \nThis was attributed to the breakdown of the Nitrogen plant three years", "metadata": {"page": 317, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "ago which was the main source of revenue. However, the Institute \nreceived funds from GoU and was in the process of procuring a new \nNitrogen plant. \n\uf0b7 \nThe Institute received the entire budget of UGX.8.97bn out of which \nUGX.8.95bn was spent by the entity resulting in an unspent balance of \nUGX.20.76m (representing an absorption level of 98.8%). The unspent \nbalance at the end of the financial year was subsequently swept back to \nthe consolidated fund account. \n\uf0b7 \nTwo (2) outputs with a total of two (2) activities and expenditure of UGX \n2.23bn were fully quantified out of the eight (8) outputs with a total of \ntwenty-two (22) activities and expenditure of UGX 8.20bn sampled for \nassessment. None of the two (2) quantified activities under the two (2) \noutputs was implemented at all.", "metadata": {"page": 317, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "outputs was implemented at all. \n\uf0b7 \nTwo (2) outputs with a total of seven (7) activities and expenditure worth \nUGX.4.99Bn were insufficiently quantified. Out of the seven (7) activities, \ntwo (2) activities (29%) was quantified, while the balance of five (5) \nactivities (71%) were not clearly quantified to enable the assessment of \nperformance. \n\uf0b7 \nFour (4) outputs with a total of thirteen (13) activities and expenditure \nworth UGX 980m were not quantified at all. That is none of the thirteen \n(13) activities within these outputs was quantified at all. \n\uf0b7 \nI noted that funds to the tune of UGX 53,300,000 were irregularly \nreallocated from the activities on which they were budgeted and spent on \nother activities without seeking and obtaining the necessary approvals. \n\uf0b7 \n\uf0b7 \nI noted that the entity submitted performance reports for Q1, Q2, Q3, Q4 \nafter the prescribed deadline.", "metadata": {"page": 317, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "307 \n \n\uf0b7 \nPayables worth UGX 0.409bn remained outstanding from financial year \nended 30th June 2019 to-date. I noted that management did not provide \nfor the settlement of domestic arears in the approved budget estimates \nfor the year under review. \n\uf0b7 \nA review of the staff structure of Uganda Virus Research Institute \nrevealed that out of the approved structure of 237, only 75 positions \nwere filled leaving 162 staff positions vacant. \n\uf0b7 \nA review of a sample of 19 procurement files with a total value of \nUGX.1.61Bn revealed that the Institute did not require suppliers to \nprovide any form of an acceptable performance guarantee for \nprocurements worth UGX.1.42Bn. \n\uf0b7 \nAnalysis of payment records and review of staff files revealed that 5 staff \nof the Institution had retired but had not yet accessed the pension payroll \nalthough the six months pensions processing period had elapsed.", "metadata": {"page": 318, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "23 \nNational Medical Stores. \n \n \nOpinion \nUnqualified \n\uf0b7 \nI noted that the Corporation budgeted to collect NTR of UGX.56.37Bn \nduring the year under review. Out of this, only UGX.39.80Bn was \ncollected thereby resulting into a shortfall of UGX.16.57bn. \n\uf0b7 \nThe Corporation budgeted to receive UGX.470,314,151,130 from \ntreasury. However, UGX.456,568,068,061 was warranted resulting into a \nbudget shortfall of UGX.13,746,083,069 (representing 2.9% of the \nrevised approved budget). \n\uf0b7 \nOut of the nine (9) outputs with a total of nine (9) activities and \nexpenditure of UGX.312.5Bn sampled for assessment, I noted that all the", "metadata": {"page": 318, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "nine (9) outputs with a total of nine (9) activities were fully quantified. \nThat is, all the nine (9) activities (100%) within these outputs were \nclearly quantified to enable assessment of performance. All the nine (9) \noutputs with a total of nine (9) activities (100%) were fully implemented. \n\uf0b7 \nI noted that the Corporation submitted performance reports for Q1, Q2, \nQ3, Q4 within the prescribed deadlines. \n\uf0b7 \nFrom my review of the annual cumulative performance reports and \nphysical inspections/verification of performance, I did not observe any \ninconsistencies with the results of my verification. \n\uf0b7 \nNo justification was provided by management for the significant reduction \nin the value of Freehold land (UGX 3.91bn; representing 56%) and Stores \nEquipment (UGX. 5.3bn; representing 135%) within a period of 3 years. \n\uf0b7", "metadata": {"page": 318, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nThe value of Non-viable medical commodities stood at UGX.5.8bn as at \n30th June 2021. I noted that management continued to keep these \nstocks in the stores. \n\uf0b7 \nThe Corporation\u2019s receivables stood at UGX.17,537,847,000 as at 30th \nJune 2021. A review of the debtor\u2019s movement schedule revealed that the \nMinistry of Health was the biggest debtor at UGX.17,325,064,059 (MOH, \nIDI, LLINs, World Bank and Global Fund), followed by Centre for Disease \nControl (CDC) project at UGX.8,091,650,000 and container deposits of \nUGX.408,000,000. This resulted into an accumulated provision for bad \nand doubtful debts of UGX.25,824,715,000 which according to \nmanagement was awaiting clearance by MoFPED to be written off. \n24", "metadata": {"page": 318, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "24 \nUganda Heart Institute. \n \n \nOpinion \nUnqualified \n\uf0b7 \nI noted that the Hospital\u2019s 5-Year Strategic Plan (FY 2020/21 -2024/25) \nwas approved by National Planning Authority (NPA) on 27th September \n2021 vide certificate no. 26(3). \n\uf0b7 \nOut of eight (8) outputs with a total of forty eight (48) activities and \nexpenditure of UGX.11.50Bn sampled for assessment, I noted that four", "metadata": {"page": 318, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "308 \n \n(4) outputs with a total of seventeen (17) activities and expenditure \nworth UGX 7.196Bn were fully quantified; four (4) outputs with a total of \nthirty one (31) activities and expenditure worth UGX 4.306Bn were \ninsufficiently quantified. \n\uf0b7 \nI assessed the extent of delivery of the 4 outputs that were fully \nquantified and noted that one (1) output with a total of two (2) activities \nworth UGX 0.439Bn was fully implemented. \n\uf0b7 \nTwo (2) outputs with a total of fourteen (14) activities worth UGX \n6.606Bn were partially implemented. Out of the fourteen (14) activities, \nthe entity fully implemented four (4) (29%) activities; seven (7) activities \n(50%) were partially implemented while three (3) (21%) activities", "metadata": {"page": 319, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "remained unimplemented. One (1) output with only one (1) activity worth \n0.15Bn was not implemented at all. \n\uf0b7 \nI noted that funds to the tune of UGX. 24.13m were irregularly re-\nallocated from the activities on which they were budgeted and spent on \nother activities without seeking and obtaining the necessary approvals. \n\uf0b7 \nThe entity submitted performance reports for Q1, Q2, Q3, and Q4 after \nthe prescribed deadline. In addition, I did not obtain evidence to confirm \nthat the Accounting Officer Prepared Monitoring Plans and reports which \nare important in ensuring that the budget performs as expected. \n\uf0b7 \nFrom my review of the annual cumulative performance reports and \nphysical inspections/verification of performance, I did not observe any \ninconsistencies with the results of my verification. \n\uf0b7 \nI noted that insufficient budget provisions (UGX.73,885,634) were made", "metadata": {"page": 319, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "towards settlement of domestic arrears yet the arrears brought forward \nfrom the previous year were UGX.1,429,802,685. \n\uf0b7 \nThe Institute had NTR debtors to the tune of UGX. 282.97m at the end of \nthe financial year under review. These were receivables from various \ninsurance companies, MDAs and institutions for services rendered by the \nInstitute. \n\uf0b7 \nThe Land Commission received a presidential directive to allocate Uganda \nHeart Institute 10 acres of land in Nakawa Naguru to facilitate the setting \nup of a Cardiac Centre of Excellence with a 250 bed hospital. However, I \nnoted that during the year there were encumbrances on part of the \nallocated land which resulted in the loss of 3 acres after consensual \nwithdrawal of a law suit. \n\uf0b7 \nWhereas the total contract sum of UGX. 3.5bn had been paid out for the", "metadata": {"page": 319, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "renovation of the Intensive Care Unit on Block 1C, the works remained \nincomplete at the time of writing this report. \n\uf0b7 \nA review of the staff structure of Uganda Heart Institute revealed that out \nof the approved structure of 189, only 160 positions were filled leaving 29 \nstaff positions vacant. \n25 \nMulago Specialized Women \n& Neonatal Hospital. \n \n \nOpinion \nUnqualified \n\uf0b7 \nThe entity budgeted to collect NTR of UGX. 7bn during the year under \nreview, and UGX. 3.64bn was realized, representing a performance of \n52% of the target. \n\uf0b7 \nOut of the total receipts for the financial year of UGX 21.93 bn, UGX. \n20.93Bn was spent by the entity resulting in an unspent balance of", "metadata": {"page": 319, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "UGX.0.997Bn (representing an absorption level of 95.5%). The unspent \nbalance at the end of the financial year was subsequently swept back to \nthe consolidated fund account. \n\uf0b7 \nI noted that out of the sampled twelve (12) outputs with a total of twenty", "metadata": {"page": 319, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "309 \n \nfive (25) activities and expenditure of UGX 17.7bn, only eight (8) outputs \nwith a total of fourteen (14) activities worth UGX 9.1bn were fully \nquantified. Two (2) outputs with a total of nine (9) activities and \nexpenditure worth UGX.8Bn, was insufficiently quantified. I observed that \nout of the nine (9) activities, six (6) activities (66.7%) were quantified, \nwhile the balance of three (3) activities (33.3%) were not clearly \nquantified to enable the assessment of performance. Two (2) outputs \nwith a total of two (2) activities and expenditure worth UGX 0.550Bn \nwere not quantified at all. That is none of the two (2) activities within \nthese outputs was quantified at all. \n\uf0b7", "metadata": {"page": 320, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nOut of the eight (8) fully quantified outputs with a total of fourteen (14) \nactivities and expenditure worth UGX.9.1Bn, seven (7) outputs with ten \n(10) activities and expenditure worth UGX 4.8Bn were fully implemented. \nOne (1) output with four (4) activities worth UGX.4.4Bn was partially \nimplemented. Out of the four (4) activities, the entity fully implemented \nthree (3) activities; one (1) activity was partially implemented, while no \nactivity remained unimplemented. \n\uf0b7 \nA well equipped kitchen with boilers, fridges, gas cookers, cabinets, a \nchimney and a full outer gas tank was constructed at the Hospital. \nHowever, it was not yet in use at the time of audit. \n\uf0b7 \nI noted that the Hospital submitted all the quarterly performance reports \nbeyond the prescribed deadlines. \n\uf0b7", "metadata": {"page": 320, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nFrom my review of the annual performance reports and physical \ninspections/verification \nof \noutputs \nreported, \nI \ndid \nnot \nobserve \ninconsistencies in the reported performance. \n\uf0b7 \nI noted that the hospital reported a payables figure of UGX.2,180,857,756 \nof which UGX. 427,844,778 related to PAYE which was deducted but \nremained unremitted by close of the year under review. \n26 \nMulago \nNational \nReferral \nHospital. \n2020/21 \n \nOpinion \nQualified \n\uf0b7 \nTransfers of UGX.3,867,161,000 received from the Ministry of Health \nwere not recognized in the Statement of Financial Performance. The", "metadata": {"page": 320, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "receipts were also not reported in Note 5 to the Financial Statements. It \nwas further noted that the funds which were received on the Hospital\u2019s \nInfrastructure Development Account were transfers from Ministry of \nHealth meant for intern allowances. \n\uf0b7 \nThe Hospital had liabilities of UGX 2,952,608,319 from the previous year \n(FY 2019/20) in respect of payables (UGX 2,304,366,476) and deposits \n(UGX 648,241,843). However, payments totalling to UGX3,775,748,845 in \nrespect of the liabilities were made. The Hospital therefore made \npayments for non-existent liabilities amounting to UGX 1,471,382,369. \n\uf0b7 \nManagement made an adjustment to the opening balance of payables \namounting \nto \nUGX \n2,097,368,767", "metadata": {"page": 320, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "(statement \nof \noutstanding \ncommitments on Page 33 of the financial statements). However, there \nwas no explanation provided on the cause of the adjustment or the \ncomposition of this figure. \n\uf0b7 \nThe Hospital misstated transfers to the Treasury during the year by UGX \n1,296,483,686 in its financial statements. \n\uf0b7 \nThe entity did not have a strategic plan approved by NPA during the year. \n\uf0b7 \nThe Hospital did not budget to collect NTR during the year under review. \nHowever, the financial statements indicated that NTR amounting to UGX. \n1,808,626,491 was collected during the year. \n\uf0b7 \nOut of the total warrants of UGX.63,573,318,357 received during the \nfinancial year, UGX.59,379,356,427 was spent by the entity resulting in", "metadata": {"page": 320, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "310 \n \nan unspent balance of UGX.4,193,961,930 representing an absorption \nlevel of 93.4%. \n\uf0b7 \nThe Hospital spent UGX. 474,479,100 on refurbishment of the MRI \nmachine. It was noted that the MRI machine was delivered and installed \nin 2018 and has since never been put to use. \n\uf0b7 \nWorks under the construction contract for 150 units of staff houses at the \nHospital of UGX. 30,228,600,856 have been delayed. \n\uf0b7 \nI noted that vital medical equipment was in poor working condition, while \nothers were fully not functional and required replacement. The \nequipment included: autoclaves in the central sterile service department; \npatient monitors in the accident and emergency surgical unit; blood \ncoagulation machine in the clinical laboratory unit; ICU beds in the \nintensive care unit, and CT machine in the Radiology department.", "metadata": {"page": 321, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "27 \nAllied Health Professionals \nCouncil (AHPC). \n2020/21 \n \n \n\uf0b7 \nThe Council did not have a strategic plan approved by NPA during the \nyear. \n\uf0b7 \nThe entity budgeted to collect internal revenue of UGX.4.771Bn during \nthe year under review. Out of this, only UGX.3.783Bn was realized, \nrepresenting a performance of 79% of the target. \n\uf0b7 \nThe Council did not implement some of its planned activities during the \nyear. Examples include: Verification and publication of Allied Health \nProfessionals in the Gazette; Licensing of private Allied Health units and \ntraining institutions, and; ICT support supervision in regions. \n\uf0b7 \nThe Governing Council stated that a material uncertainty existed \nregarding the continued operation of Allied Health Professionals Council in \nthe foreseeable future. This was based on the communication by the", "metadata": {"page": 321, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Permanent Secretary Ministry of Public Service (PS/MoPS) to the \nPermanent Secretary Ministry of Health among others in which the \nPS/MoPS communicated a Cabinet decision of 22nd February 2021 that \nrequired \nthe \ncommencement \nof \nmerging, \nrationalization \nand \nmainstreaming of Government Agencies between financial years \n2021/2022 and 2022/2023. \n\uf0b7 \nI noted that it takes an average of 3 months for the Council to process \nregistration certificates which seemed to be too long. Delayed processing \nof registration certificates frustrates applicants and may make some to \nlose opportunities. \n\uf0b7 \nThe Council did not make any publication in the Gazette during the year \nunder review, contrary to The Allied Health Professionals\u2019 Act (cap 268). \nThe unsuspecting public was not protected from public from quack \npractitioners. \n28 \nHealth Service Commission.", "metadata": {"page": 321, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Health Service Commission. \n2020/21 \n \nOpinion \nUnqualified \n \n\uf0b7 \nI noted that the entity had prepared a strategic plan. However, this had \nnot been approved by the end of the year under review. \n\uf0b7 \nThe Commission did not budget to collect NTR during the year under \nreview. However, the financial statements indicated that NTR amounting \nto UGX.21,850,000 was collected during the year. \n\uf0b7 \nThere was no evidence to show that the procurement method and the \nEvaluation Committee were approved by the Contracts Committee for six \nsampled \nprocurements worth UGX48,310,800. Lack of approval \ncontravenes the PPDA Regulations. In the circumstances, the Evaluation \nCommittees executed the assignment without authority. \n29 \nUganda AIDS Commission. \n2020/21 \n\uf0b7 \n2020/21 \n\uf0b7 \nI noted that the entity had prepared a strategic plan. However, this had", "metadata": {"page": 321, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "311 \n \n \nOpinion \nUnqualified \n \nnot been approved by the end of the year under review. \n\uf0b7 \nThe Commission did not budget to collect NTR during the year under \nreview. However, the financial statements indicated that NTR amounting \nto UGX. 37,800,000 was collected during the year. \n\uf0b7 \nUAC received off-budget financing to a tune of UGX.1,465,747,761. \nAlthough Management explained that a total of UGX.2.8Bn was budgeted \nfor and appropriated by Parliament as off-budget funding for the Financial \nYear 2020/2021 as the total grant disbursement of all grants in the year, \nI could not trace this figure in the Commission\u2019s approved budget for the \nyear. \n\uf0b7 \nThe Commission failed to implement two planned activities during the", "metadata": {"page": 322, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "year; Data quality control and validation strategy, and Quarterly meetings \nfor adolescents and young people. \n\uf0b7 \nThe reported domestic arrears of UGX. 76,162,182. These arrears relate \nto as far back as the FY 2016/2017. It was noted that the arrears are \nnot supported. I absence of supporting documents, there seemed to be \nno basis for these payables standing in the Commission\u2019s financial \nstatements. \n\uf0b7 \nThe Commission had a dispute over ownership of Land and Buildings on \n0.1 Hectare of Leasehold land comprised in Freehold Register Volume 56 \nFolio 16 Plot Number 213, Sentema Road at Namirembe with Namirembe \nDiocese Church of Uganda which disabled the Commission from \nvaluation, renovating and collecting revenue from tenants since 2016. \nAlthough the Diocese later confirmed that the Commission\u2019s lease expires \nin 2026, it asked the Commission to justify why it wants to renew the", "metadata": {"page": 322, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "lease because the Diocese had taken a decision not to renew leases for \nareas near the Cathedral which the Commission has failed to secure from \nthe Office of the President where it falls. \n30 \nAllied Health Professionals \nCouncil (AHPC). \n2020/21 \n \nOpinion \nUnqualified \n\uf0b7 \nThe Council did not have a strategic plan approved by NPA during the \nyear. \n\uf0b7 \nThe entity budgeted to collect internal revenue of UGX.4.771Bn during \nthe year under review. Out of this, only UGX.3.783Bn was realized, \nrepresenting a performance of 79% of the target. \n\uf0b7 \nAHPC planned to implement five (5) outputs in the year under review. I \nassessed the implementation of three (3) outputs which had 16 activities \nand noted that all the 3 outputs with their 16 activities were fully", "metadata": {"page": 322, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "quantified. with a total of sixteen (16) activities worth UGX.1.380Bn and \nnoted that; \n\uf0b7 \nOut of the sampled 3 outputs with a total of 16 activities, I noted that \none (1) output with four (4) activities and expenditure worth UGX \n0.515Bn was fully implemented that is all the four (4) activities within this \noutput were fully implemented. Two (2) outputs with twelve (12) \nactivities worth UGX.0.865Bn were partially implemented. Out of the \ntwelve (12) activities, the entity fully implemented one (1) activity; seven \n(7) activities were partially implemented while four (4) activities were not \nimplemented. \n\uf0b7 \nThe Council did not implement some of its planned activities during the \nyear. Examples include: Verification and publication of Allied Health \nProfessionals in the Gazette; Licensing of private Allied Health units and \ntraining institutions, and; ICT support supervision in regions. \n\uf0b7 \nThe Governing Council stated that a material uncertainty existed \nregarding the continued operation of Allied Health Professionals Council in", "metadata": {"page": 322, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "312 \n \nthe foreseeable future. This was based on the communication by the \nPermanent Secretary Ministry of Public Service (PS/MoPS) to the \nPermanent Secretary Ministry of Health among others in which the \nPS/MoPS communicated a Cabinet decision of 22nd February 2021 that \nrequired \nthe \ncommencement \nof \nmerging, \nrationalization \nand \nmainstreaming of Government Agencies between financial years \n2021/2022 and 2022/2023. There is a high possibility that the Council \nmay not remain a going concern beyond the stated period. \n\uf0b7 \nThe Council did not make any publication in the Gazette during the year \nunder review, contrary to The Allied Health Professionals\u2019 Act (cap 268). \nIn the absence of such a publication, the unsuspecting public may not be \nprotected from quack practitioners. \n31 \nUganda Global Fund To Fight", "metadata": {"page": 323, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Uganda Global Fund To Fight \nAids, \nTuberculosis \nAnd \nMalaria \nProject \n\u2013 \nHIV \nCOMPONENT. \n2020. \n \nOpinion \nUnqualified \n\uf0b7 \nNo significant findings \n32 \nUganda Global Fund to \nFight Aids, Tuberculosis And \nMalaria \nProject \n\u2013 \nHIV \nComponent. \n2020 \n \nOpinion \nUnqualified \n\uf0b7 \nNo significant findings \n33 \nUganda Global Fund to \nFight Aids, Tuberculosis and \nMalaria Project-Tuberculosis \nComponent. \n2020. \n \nOpinion \nUnqualified \n\uf0b7 \nNo significant findings \n34 \nMinistry of Health. \n2020/21", "metadata": {"page": 323, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "2020/21 \n \nOpinion \nUnqualified \n\uf0b7 \nI noted that whereas the Ministry submitted a draft 5-Year Strategic plan \n(FYs 2020/21-2024/25) to National Planning Authority for approval on \n29th July 2021, a certificate had not been issued by the Authority by the \ntime of audit. \n\uf0b7 \nThe entity did not budget for NTR during the year under review. \nHowever, UGX 7.205Bn was collected. \n\uf0b7 \n The Ministry budgeted to receive UGX 147.112Bn. This budget was later \nrevised to UGX 376.884Bn, out of which UGX 376.837Bn was warranted, \nresulting into a shortfall of UGX 47m (representing 0.012% of the \napproved budget). \n\uf0b7 \nOut of the total UGX 1,029.646Bn received during the year under review,", "metadata": {"page": 323, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "UGX 852.099Bn was spent by the entity resulting in an unspent balance \nof UGX. 177.547Bn (representing an absorption level of 82.8%). The \nunspent funds included; UGX 0.61Bn of NTR which was swept back to the \nConsolidated Fund as required by the PFMA, while UGX 5Bn remained on \nthe MoH Contingency Fund and the balance of UGX 171.937Bn remained \non project Accounts. \n\uf0b7 \nOut of a sample of forty nine (49) outputs with a total of one hundred \nninety seven (197) activities and expenditure of UGX 777.8Bn, twenty", "metadata": {"page": 323, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "313 \n \nfour (24) 48.9% outputs with a total of fifty nine (59) activities and \nexpenditure worth UGX 140.4Bn were fully quantified. Fifteen (15) 30.6% \noutputs with a total of one hundred twenty one (121) activities and \nexpenditure worth UGX 373.5Bn were insufficiently quantified. I observed \nthat out of the one hundred twenty one (121) activities, sixty nine(69) \nactivities (57%) were quantified, while the balance of fifty two (52) \nactivities (43%) were not clearly quantified to enable the assessment of \nperformance. Ten (10) 20.4% outputs with a total of seventeen (17) \nactivities and expenditure worth UGX 263.9Bn were not quantified at all. \n\uf0b7 \nOut of twenty four (24) outputs that were fully quantified with a total of", "metadata": {"page": 324, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "fifty nine (59) activities worth UGX 140.4Bn, eight (8) (33.3%) outputs \nwith eleven (11) activities and expenditure worth UGX 101.8Bn were fully \nimplemented; ten (10) (41.7%) outputs with forty two (42) activities \nworth UGX 32.5Bn were partially implemented. Out of the forty two (42) \nactivities, eleven (11) activities were fully implemented; thirteen (13) \nactivities were partially implemented, while eighteen (18) activities \nremained unimplemented. Six (6) (25% )outputs with six (6) activities \nworth UGX 6.1Bn could not be assessed to establish their level of \nimplementation because four (4) of these outputs were not reported on, \nwhile two (2) outputs were inaccurately reported on i.e. different \nactivities were planned for but different activities were reported on. \n\uf0b7 \nMinistry of Health received off-budget financing from Development", "metadata": {"page": 324, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Partners to a tune of UGX 8.44Bn, which was not declared to Treasury \nand, therefore, not appropriated to the entity by Parliament. \n\uf0b7 \nThe entity submitted performance reports for Q1, Q2, and Q3, Q4 after \nthe prescribed deadlines. In addition, I did not obtain documentary proof \nof in the form of monitoring plans and reports which are important in \nensuring that the budget performs as expected. \n\uf0b7 \nThe task force reporting functionality planned to produce bi-weekly, \nmonthly, quarterly, bi-annual and annual COVID-19 performance reports. \nHowever, these were not prepared and discussed in a timely manner. \n\uf0b7 \nI noted that the Ministry of Health did not prepare a COVID-19 activity \nwork plan upon receipt of UGX 253,596,115,200 meant for management \nof COVID-19. \n\uf0b7 \nOut of the Supplementary release of UGX 223.596Bn, the Contingency", "metadata": {"page": 324, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Fund allocation of UGX 30Bn, and the unutilized balance from FY \n2019/2020 of UGX 0.5Bn, a total of UGX.249.025bn (Supplementary UGX \n223.596Bn, and Contingency Funding of UGX 25.429Bn) was spent \nleaving a balance of UGX 5.071Bn unspent as at 30th June 2021 \n(representing an absorption level of 98% of the total available funds) \n\uf0b7 \nI noted that the entity conducted COVID-19 related procurements worth \nUGX 105,937,028,042 in the FY 2019/20 out of which UGX \n92,960,878,888 had been paid by 30th June 2021. During the year under \nreview (FY 2020/21), procurements worth UGX 191,254,414,946 were \nconducted out of which UGX 184,690,133,663 was paid by 30th June", "metadata": {"page": 324, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "2021. \n\uf0b7 \nI noted that 37,501,136 masks that were delivered by various suppliers at \na cost of UGX 90.2bn were not supported with documentary proof of \ncertification by UNBS to ensure conformance with the desired technical \nquality specifications. \n\uf0b7 \nWhereas the first GoU allocation for procurement of vaccines amounting \nto UGX 18.5bn was transferred to National Medical Stores on 29th March \n2021, vaccination doses procured by the Government of Uganda were yet \nto be delivered to NMS by 30th June 2021. Delayed delivery of the", "metadata": {"page": 324, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "314 \n \nvaccines is likely to hamper the timely attainment of the vaccination \ntargets set by government. \n\uf0b7 \nThe Ministry did not comply with PPDA Regulatory Framework with \nrespect to COVID-19 related procurements valued at UGX. 13.7bn. \n\uf0b7 \nWhereas Mulago National Referral Hospital had running contracts for \ncleaning, waste disposal and security services with 3 suppliers prior to the \nCOVID-19 pandemic, the Ministry of Health directly paid these suppliers a \ntotal of UGX 1,071,968,797 in respect of Cleaning & waste disposal \nServices (UGX 794,999,997) and Security services (UGX 276,968,800) \nrendered at Mulago COVID-19 Treatment Centre. Under the \ncircumstances, there is a risk of double payment. \n\uf0b7", "metadata": {"page": 325, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nI noted that Pay As You Earn (PAYE) amounting to UGX 626,630,608 was \nnot deducted from hardship allowances paid to various officials. Failure to \ndeduct taxes may attract interest and penalties from the Tax Body. \n \nLEGISLATURE \n \n1. \nParliamentary \nPension \nScheme. \n2020/21 \n \nOpinion \nUnqualified \n\uf0b7 \nA total of UGX.5,557,452,584 was utilized during the year against the \napproved budgeted t of UGX.6,601,744,660. The Under absorption of \nresources implies that the scheme did not carry out all the year\u2019s \nintended activities, hence not meeting its intended objectives. Some of \nthe activities that were not or partially implemented were; \n\uf0b7 \nRecruitment of staff \n\uf0b7 \nIT Annual Maintenance Plans", "metadata": {"page": 325, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nIT Annual Maintenance Plans \n\uf0b7 \nStrategic Partnership Meetings \n\uf0b7 \nAs observed last financial year 2019/2020, some members on the Board \nof Trustees are still signatories to the Bank Accounts of the Scheme. The \nBoard\u2019s involvement in the day-to-day operations of the scheme erodes \nits oversight role. For instance, the Board cannot hold management to \naccount for failure, to implement. agreed activities when the Board is \nactively participating in the daily operations of the scheme. \n2. \nParliamentary Commission. \n2020/21 \n \nOpinion \nUnqualified \n \n\uf0b7 \nI noted that the Authority\u2019s strategic plan had not been certified by NPA \nby the time of audit, contrary to the Planning Regulations. \n\uf0b7 \nThe Authority received 99% of its budget from Government, and NTR \nperformed above expectation by 21%. The Authority had unspent", "metadata": {"page": 325, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "balances of UGX.7.64Bn, which was returned to the consolidated fund. \n\uf0b7 \nI noted that the Authority had unremitted off-budget financing of \nUGX.18.97Bn, which Parliament never appropriated. \n\uf0b7 \nI noted that out of the thirty-nine (39) outputs sampled for review, two \n(2) outputs (5%) were fully quantified, two (2) outputs (5%) were \npartially quantified, and thirty-five (35) outputs (90%) were not \nquantified at all which made it impossible to measure performance. The \ntwo (2) outputs that were fully quantified were all fully implemented. \n\uf0b7 \nAll performance reports were submitted after the deadline. \n\uf0b7 \nI noted that the Authority had not developed regulations to guide the \ncollection of outdoor advertising fees, which hindered the collection of \nNTR. I further noted that the Authority did not undertake regular updates", "metadata": {"page": 325, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "of the valuation rolls. \n\uf0b7 \nThe \nAuthority \nhas \nan \nunserviceable \nlong-term \nliability \nof \nUGX.42,570,448,999 in addition to accumulated domestic arrears of", "metadata": {"page": 325, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "315 \n \nUGX.62,477,592,377 as at 30th June 2021. \n\uf0b7 \nThe Authority did not remit statutory deductions to URA and NSSF \namounting to UGX.1.86Bn. \n\uf0b7 \nThe Authority incurred avoidable expenditure of UGX.7.8Bn as interest \ndue to delayed site handover for civil works constructions. \n\uf0b7 \nI noted that the Authority had not adopted the Computerized \nGovernment Financial Management Information Systems (GFMIS) for \nmanagement of its inventories as required by the Treasury Instructions.", "metadata": {"page": 326, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "316 \n \nANNEXURE II: SUMMARY OF ENTITY FINDINGS AND OPINIONS FOR LOCAL GOVERNMENTS \nS/N \nFort Portal Branch \nSummary of Key Findings \n01. \nBundibugyo DLG \n \nOpinion \nUnqualified \n\uf0b7 \nI noted a number of anomalies during review of the district \npayroll such as; Failure to submit wage estimates to MoPs, over \npayment of salaries worth UGX.29, 467,392, Underpayment of \nsalaries of UGX.2, 160,338; payment of salaries worth UGX.45, \n977,978 to sixteen (16) staffs who were no longer in service, \ndelayed access to payroll by sixty (60) new employees and \nfailure to prepare monthly wage, pension and gratuity \nperformance analysis on payroll to MoPS. \n \n\uf0b7", "metadata": {"page": 327, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nThe district did not have an approved strategic plan that is \naligned to the NDP-III at the time of audit. \n \n\uf0b7 \nI noted a number of issues in the implementation of the \napproved budget such as; under absorption of funds worth UGX. \n2,978,972,164; under performance of the donor & government \nreleases worth UGX.1,536,961,363; partial submission of \nquarterly monitoring reports to OPM & MoFPED \n \n\uf0b7 \nThe district received off-budget financing to a tune of UGX. \nUGX.7, 989,897 directly from UNFPA for undertaking activities \nwhich was never declared to the PSST and as such no \nsupplementary appropriation was issued as guided by the PSST. \n \n\uf0b7 \nThe district lost a court case (Busobozi Juma Vs Bundibugyo", "metadata": {"page": 327, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "DLG); but failed to honour this court ruling resulting into \nattachment of three (3) District Motor vehicles. \n \n\uf0b7 \nI further noted the district failed to absorb UGX.950, 886,390 of \nthe UgIFT funds received and the balance was swept back to the \nConsolidated Fund Account at the end of the financial year. \n \n\uf0b7 \nI further noted that the district had unutilized funds of UGX.336, \n284,000 meant for the construction of Kabango Seed School \nwhich was swept back to the Consolidated Fund. \n \n02. \nKabarole DLG \n \nOpinion \nUnqualified \n\uf0b7 \nI noted a number of anomalies during review of the district \npension & salary payrolls such as; Failure to submit wage \nestimates to MoPs, Over payment of pension worth UGX.288,", "metadata": {"page": 327, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "866,531; Underpayment of pension worth UGX.271, 215,401; \nWrong computation of gratuity worth net overpayment of UGX. \n54,578,592; payment of salaries worth UGX. 3,051,636 to two \n(2) staffs that was no longer in service and irregular deduction of \nloan instalments worth UGX.9, 061,174. \n \n\uf0b7 \nAdditionally, I observed that there was delayed access to payroll \nby twenty three (23) new employees and nine (9) pensioners; \nfailure to utilize wage funds of UGX.2.38Bn; un-deducted PAYE \nfrom political leaders\u2019 gratuity resulting in unpaid tax of \nUGX.10,746,540 and payment of twenty two (22) staffs worth \nUGX.35,678,772 off the IPPS", "metadata": {"page": 327, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "317 \n \n\uf0b7 \nI noted a number of issues in the implementation of the \napproved budget such as; shoddy works in construction of \nclassrooms; incomplete works; under absorption of funds worth \nUGX.5,185,210,873 that was swept back to consolidated fund \naccount; under performance of the donor & releases from other \ngovernment units worth UGX.768,125,595; delayed submission \nof quarterly monitoring reports to OPM & MoFPED \n \n\uf0b7 \nThe district mischarged expenditure worth UGX.275, 847,736 on \nwrong budget lines. \n \n03. \nKamwenge DLG \n \nOpinion \nUnqualified \n\uf0b7 \nI noted a number of anomalies during review of the district \npension & salary payrolls such as; over payment of pension", "metadata": {"page": 328, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "worth UGX.18,610,306; Underpayment of pension worth UGX. \n20,537,350; \nWrong \ncomputation \nof \ngratuity \nworth \nnet \noverpayment of UGX. 126, 160257; payment of salaries worth \nUGX. 3,042,398 to six (6) staffs that was no longer in service; \nirregular deduction of loan instalments worth UGX.9,912,197 and \nfailure to remit payroll deductions worth UGX.1,206,334,606 \n \n\uf0b7 \nAdditionally, I observed that there was delayed access to payroll \nby eleven (11) new employees; failure to utilize wage funds of \nUGX.2.32Bn; un-deducted PAYE from political leaders\u2019 gratuity", "metadata": {"page": 328, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "resulting in unpaid tax of UGX.9,904,129; payment of forty three \n(43) staffs worth UGX.73,835,431 off the IPPS and failure to \nprepare monthly wage, pension and gratuity performance \nanalysis report on payroll to MoPS \n \n\uf0b7 \nThe district mischarged expenditure worth UGX.446,776,818 on \nwrong budget lines other than those prescribed for salary, \npension and gratuity \n \n\uf0b7 \nThe district did not have an approved strategic plan that is \naligned to the NDP-III at the time of audit. \n \n\uf0b7 \nI noted a number of issues in the implementation of the \napproved budget such as; under absorption of funds worth \nUGX.9, 615,375,142 that was eventually swept back to \nconsolidated fund account at end of financial year; combined", "metadata": {"page": 328, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "under performance worth UGX. 18,033,399,211 from planned \ndonor funds, NTR, releases from Government & other \nGovernment units ; delayed submission of quarterly monitoring \nreports to OPM & MoFPED \n \n\uf0b7 \nI observed that a total sum of UGX.792, 482,750 due from the \ngroups that were funded in 2014/15, 2015/16, 2016/17, 2017/18 \nand 2018/19 were still outstanding and therefore reported as \nrevenue arrears at the year end. \n \n\uf0b7 \nThe district lacks evidence of ownership in form of titles for its \nland at Kabuga-Rubaba measuring 1,321 hectares. \n \n\uf0b7 \nDuring a physical inspection of the Constructions, I noted a", "metadata": {"page": 328, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "318 \n \nnumber of shoddy works in Bwizi Seed School and upgrade \nKabingo Health Centre II to Health Centre III. \n04. \nKasese DLG \n \nOpinion \nUnqualified \n\uf0b7 \nI noted a number of anomalies during review of the district \npension & salary payrolls such as; Failure to submit wage \nestimates to MoPs, over payment of Salary and gratuity worth \nUGX. UGX.3, 574,714; Underpayment of pension worth UGX. \n705,886; un-deducted PAYE from political leaders\u2019 gratuity \nresulting in unpaid tax of UGX.21, 251,680; payment of salaries \nworth UGX. 990,729 to two (2) staffs that was no longer in \nservice and irregular deduction of loan instalments worth", "metadata": {"page": 329, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "UGX.11, 312,968. \n \n\uf0b7 \nAdditionally, I observed that there was delayed access to payroll \nby four (04) new employees and five (5) pensioners; failure to \nutilize \nwage \nfunds \nof \nUGX.0.01Bn; \nover \nremittance \nUGX.14,857,510 was made to UNATU and UBA, and an under \nremittance of UGX.162,609,619 to URA and LST respectively; and \npayment of twenty nine (29) staffs & two (2) pensioners a total \nof UGX.35,824,742 off the IPPS \n \n\uf0b7 \nThe district mischarged expenditure worth UGX.99,558,770 on \nwrong budget lines other than those prescribed for gratuity \n \n\uf0b7", "metadata": {"page": 329, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nThe district\u2019s strategic plan was not certified by National Planning \nAuthority. \n \n\uf0b7 \nI noted that the verification forms and copies of the verification \ncards for 150 new employees and 8 pensioners/beneficiaries \nwere not on the respective personal files. \n \n\uf0b7 \nThe district has uncollected Non Tax Revenue arrears to the tune \nof UGX.702, 009,983 that has remained outstanding for more \nthan a year. \n \n\uf0b7 \nI noted a number of issues in the implementation of the \napproved budget such as; under absorption of funds worth UGX. \n6,349,941,923 that were eventually swept back to consolidated \nfund account at end of financial year; combined under \nperformance worth UGX. 11,758,099,498 from planned donor \nfunds, NTR, releases from Government & other Government units", "metadata": {"page": 329, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "; delayed submission of quarterly monitoring reports to OPM & \nMoFPED \n \n\uf0b7 \nNinety one (91) pieces of land owned by the District lacked \nevidence of ownership in form of titles. \n \n\uf0b7 \nOut of the total funds of UGX.822, 539,506 UgIFT funds \nreceived, the district only utilized UGX.314,732,415 (38.26%) \nresulting into unspent balance of UGX.507,807,091. \n05. \nKyegegwa DLG \n \nOpinion \nUnqualified \n\uf0b7 \nI noted a number of issues during the review of the district \npension and payroll such as;", "metadata": {"page": 329, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "319 \n \n\uf0b7 \nThe district delayed to submit wage estimates to MoPs by the \n30th of September of the previous year as required. This may \nlead to wage shortfalls/over provision due to lack of clarity and \nanalysis of wage estimates by MoPS. \n\uf0b7 \nUnpaid accrued gratuity worth UGX.92,701,695 by year end and \nUnder absorption of wage funds worth UGX.1.13Bn that meant \nsome employees and pensioners were unpaid \n\uf0b7 \nThe verification forms and copies of the verification cards for 50 \nemployees were not on the respective personal files \n\uf0b7 \nThe District did not prepare monthly wage, pension and gratuity \nperformance analysis and thus did not submit quarterly returns \non payroll to MoPS, contrary to Paragraph 2.1 of Establishment \nNotice No. 1 of 2020. This led to under absorption of wage, \npension and gratuity budgets \n\uf0b7", "metadata": {"page": 330, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \n6 employees were paid a total of UGX.2,852,917 without signed \npay change reports \n\uf0b7 \n37 newly recruited/ transferred employees and 6 pensioners \ndelayed to access payroll this affects staff moral and \naccumulation of domestic arrears and paid UGX.1,446,726 was \npaid to 2 former staff who had either retired or died \n\uf0b7 \nThe district did not subject political leaders\u2019 gratuity totalling to \nUGX.43,741,660 to the computation of PAYE in IPPS, leading to \nan under deduction of UGX.13,224,798, contrary to section 19(1) \n(a) of the Income Tax Act \n\uf0b7 \nThe district made unauthorised loan deductions totalling \nUGX.157,604,005. The deductions were from 84 employees that \nneither had letters of undertaking nor existed in the \u201cactive", "metadata": {"page": 330, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "deduction\u201d or the \u201cmy approval\u201d reports on the PDMS-Payroll \nDeduction Management System, operated by PCA-Payroll \nConsults Africa \n\uf0b7 \nI noted unrecovered overdue YLP and UWEP receivables worth \n541,572,633 and 196,364,405 from beneficiary groups that has \naffected the revolution of the funds among other groups in the \nqueue \n\uf0b7 \nI noted a number of issues in the implementation of approved \nbudget such as delayed submission of quarterly reports; \nunderperformance of revenue worth 9,414,937,826; under \nabsorption of funds worth UGX.3,780,702,017 that affected \nimplementation of Construction of Kagumba & Nabiwugulu Seed \nSchools, upgrading of Bubago HCII to HC III, Construction works", "metadata": {"page": 330, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "320 \n \nat Kitayunjwa Seed School , ICT and science equipment for \nKitayunjwa Seed School, Upgrading of Kagumba HC II to HC III \nand Procurement of medical equipment for Kagumba HC I and \nBubago HCII \n\uf0b7 \nI noted that the management had not prepared and approved a \nstrategic plan that is aligned to the NDP-III at the time of audit \n\uf0b7 \nI noted ddelayed works for Construction of Karwenyi Health \nCenter III under UgIFT. The contract was awarded to M/s.Nicole \nAssociates Ltd at a contact sum of UGX.529, 682,320 and should \nhave been completed on 07.09.19 but was still having pending \nworks \n\uf0b7 \nI noted incomplete construction works on Rwentuuha seed \nschool for works that should have ended by 07.04.2020 \n\uf0b7", "metadata": {"page": 331, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nI noted funds shortfall of UGX.91, 745,203 for funds meant for \nroad maintenance from URF that affected the implementation of \nplanned works \n06. \nKyenjojo DLG \n \nOpinion \nUnqualified \n\uf0b7 \nI noted a number of anomalies during review of the district \npension & salary payrolls such as; Failure to submit wage \nestimates to MoPs, over payment of Gratuity worth UGX. UGX.4, \n503,576; Underpayment of pension worth UGX. 10,233,398; \npayment of salaries worth UGX. 13, 121,357 to nine (9) staffs \nthat was no longer in service and unauthorized deduction of loan \ninstalments worth UGX. 21,809,702. \n \n\uf0b7 \nAdditionally, I observed that there was delayed access to payroll", "metadata": {"page": 331, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "by ten (10) new employees and two (2) pensioners; failure to \nutilize wage funds of UGX.0.96Bn; unremitted payroll deductions \nof UGX. 6,025,083 and failure to prepare monthly wage, pension \nand gratuity performance analysis report on payroll to MoPS \n \n\uf0b7 \nI noted a number of issues in the implementation of the \napproved budget such as; under absorption of funds worth \nUGX.3, 847,060,490 that was eventually swept back to \nconsolidated fund account at end of financial year; combined \nunder performance worth UGX. 22,372,196,592 from planned \ndonor funds, NTR, releases from Government & other \nGovernment units; \n \n\uf0b7 \nOut of UGX.1, 300,000,000 received for Upgrading of Kigoyera", "metadata": {"page": 331, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "HC II to HC III only UGX.480, 191,731 was utilized and the \nbalance was swept back to the Treasury at the end of the \nfinancial year. \n \n\uf0b7 \nI noted shoddy works for M/s Build line Contractors Uganda LTD \nat a contract sum of UGX.2, 050,045,030. Although the end date \nwas extended to 30th August 2020 and the contract sum revised \nto UGX.2, 150,170,030 to cater for variations", "metadata": {"page": 331, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "321 \n \n \n\uf0b7 \nThe districts strategic plan was not certified by National Planning \nAuthority therefore I could not confirm that it is aligned to NDP-\nIII. \n07. \nNtoroko DLG \n \nOpinion \nUnqualified \n\uf0b7 \nI noted a number of anomalies during review of the district \npension & salary payrolls such as; Failure to submit wage \nestimates to MoPs; Underpayment of in payroll worth UGX. \n5,813,601; un-deducted PAYE from political leaders\u2019 gratuity \nresulting in unpaid tax of UGX.8, 062,325; Loan deductions \nrelating to all the 279 employees did not have letters of \nundertaking and evidence of consent on file; One hundred five \n(105) staffs were paid using wrong salary scales, leading to over", "metadata": {"page": 332, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "payments of UGX.9,200,722. \n \n\uf0b7 \nAdditionally, I observed that there was delayed access to payroll \nby thirty seven (37) new employees and one (01) pensioner; \nfailure to utilize wage funds of UGX.0.026Bn; unremitted PAYE \ndeductions of UGX.58,118,104, to URA; failure to prepare \nmonthly wage, pension and gratuity performance analysis report \non payroll to MoPS \n \n\uf0b7 \nI noted that the verification forms and copies of the verification \ncards for 50 employees were not on the respective personal files \n \n\uf0b7 \nThe district\u2019s strategic plan was not certified by National Planning \nAuthority therefore I could not confirm that it is aligned to NDP-\nIII. \n \n\uf0b7 \nI noted a number of issues in the implementation of the \napproved budget such as; under absorption of funds worth", "metadata": {"page": 332, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "UGX.824, \n523,482 \nthat \nwas \neventually \nswept \nback \nto \nconsolidated fund account at end of financial year and a \ncombined revenue under performance worth UGX. 1,971,531,402 \nfrom planned donor funds, NTR, releases from other Government \nunits \n \n\uf0b7 \nI noted that the Upgrade of Butungama HCIII under UgiFT works \nhad stalled and behind schedule by 14 months. \n08. \nFort portal MC \n \nUnqualified Opinion \n \n\uf0b7 \nI noted a number of anomalies during review of the Municipal \npension & salary payrolls such as; Failure to submit wage \nestimates \nto \nMoPs; \nOverpayment \nof \nUGX.1,547,570", "metadata": {"page": 332, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Underpayment of in payroll worth UGX.674,289; un-deducted \nPAYE from political leaders\u2019 gratuity resulting in unpaid tax of \nUGX.3,015,540; failure to utilize wage funds of UGX.0.655Bn; \nPayment of 4 employees who were no longer in service; Under \nremittance of salary deductions worth UGX. UGX.68,499,107; \nDelayed remittance of deductions to UCLA/UBA of 5 to 90 days \n \n\uf0b7 \nI noted a number of issues in the implementation of the \napproved budget such as; under absorption of funds worth \nUGX.9, 264,101,819 that was eventually swept back to \nconsolidated fund account at end of financial year; combined \nunder performance worth UGX. 22,372,196,592 from planned", "metadata": {"page": 332, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "322 \n \ndonor funds, NTR, releases from Government & other \nGovernment units \n \n\uf0b7 \nThe Municipality mischarged expenditure worth UGX.5,244,093 \non wrong budget lines other than those prescribed for salary, \npension or gratuity \n \n\uf0b7 \nThe Municipal\u2019s strategic plan was not approved by the National \nPlanning Authority at the time of audit and therefore I could not \nconfirm that it is aligned to NDP-III. \n \n\uf0b7 \nThe Municipality lacked certificates of title for 13 pieces of land. \n \n\uf0b7 \nI noted that the MC did not have sufficient waste receptacles and \nsolid waste collection vehicles which have led to piling of garbage \non the Municipality streets resulting into a public health nuisance. \n \n \nBranch Jinja \nSummary of Key Findings \n01.", "metadata": {"page": 333, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "01. \nNamutumba DLG \n \nOpinion \nUnqualified \n\uf0b7 \nI noted a number of anomalies during review of the district \npension & salary payrolls such as; Failure to submit wage \nestimates to MoPs, over payment of Gratuity worth UGX. \n6,699,263; Underpayment of salaries worth UGX 3,970,280; \npayment of salaries worth UGX. 34,532,950 to eighteen (18) \nstaffs who were no longer in service; under remittance of payroll \ndeduction of UGX. 42,851,131; unauthorized excess loan \ndeductions worth UGX. 336,561,515 for one hundred seventy \nfour (174) employees \n \n\uf0b7 \nAdditionally, I observed that there was delayed access to payroll \nby ninety one (91) newly recruited/ transferred employees and", "metadata": {"page": 333, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "nineteen (19) pensioners; eight (8) pensioners failed to access \nthe pension payroll; failure to utilize wage funds of UGX.0.70Bn; \nun-deducted PAYE from political leaders\u2019 gratuity resulting in \nunpaid tax of UGX.9, 275,220; failure to prepare monthly wage, \npension and gratuity performance analysis report on payroll to \nMoPS and overpayment of pensioners due to wrong computation \nworth UGX. 66,739,381 and payment of 05 employees worth \nUGX. 3,371,913 without authorization of pay change report. \n \n\uf0b7 \nI noted a number of issues in the implementation of the \napproved budget such as; under absorption of funds worth UGX. \n1,074,919,818 that were eventually swept back to consolidated \nfund account at end of financial year; under performance worth", "metadata": {"page": 333, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "UGX. 183,402,134 from planned donor funds, NTR and releases \nfrom Government.; partial implementation of planned activities \n \n\uf0b7 \nThe district mischarged expenditure worth UGX.41,963,816 on \nwrong budget lines other than those prescribed for salary, \npension or gratuity \n \n\uf0b7 \nFrom a comparison of the payroll register and IFMS payment file, \nI noted that 09 staff and 10 pensioners were paid a total of UGX \n461,890,255 off the IPPS.", "metadata": {"page": 333, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "323 \n \n \n\uf0b7 \nI noted that the District had uncovered funds (receivables) of \nUGX. 1,400,354,319 that affected the budget implementation of \nplanned activities \n \n\uf0b7 \nThe District\u2019s strategic plan is in place but no evidence of \napproval by the National Planning Authority was availed at the \ntime of audit. \n \n\uf0b7 \nI noted that the construction works of a seed secondary school \nat Nabweyo did not take off in the financial year under review \nand the funds amounting to UGX. 344,284,000 were swept back \nto treasury. \n \n\uf0b7 \nThe district lacked land titles for 17 pieces measuring \napproximately 299.3 acres which exposed the land to loss and \nencroachment. \n \n\uf0b7", "metadata": {"page": 334, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nThe District received a sum of UGX. 223,381,891 for (06) \nsecondary schools and (109) primary schools meant for the \nprocurement \nof \nlearning \nmaterials. \nHowever, \nthe \nbank \nstatements had not been availed for review at the time of audit. \n02. \nBuyende DLG \n \nOpinion: Unqualified \n\uf0b7 \nI noted a number of anomalies during review of the district \npension & salary payrolls such as; Failure to submit wage \nestimates to MoPs, unpaid salaries of UGX 5,941,021 to nine (9) \nemployees; Underpayment of salaries to staff worth UGX \n205,153,235; under payment of UGX 6,386,999 to pensioners;", "metadata": {"page": 334, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "over payment of UGX 9,607,227; payment of salaries worth UGX. \n11,313,061 to six (06) staffs who were no longer in service; \nunder remittance of payroll deduction of UGX.205,612,209; \nunauthorized excess loan deductions worth UGX. 17,355,601 for \n168 employees \n \n\uf0b7 \nAdditionally, I observed that there was delayed access to payroll \nby twenty nine (29) newly recruited/ transferred employees and \nseven (07) pensioners; un-deducted PAYE from political leaders\u2019 \ngratuity resulting in unpaid tax of UGX. 12,019,045; failure to \nprepare monthly wage, pension and gratuity performance \nanalysis report on payroll to MoPS and overpayment of \npensioners due to wrong computation worth UGX. 20,650,780", "metadata": {"page": 334, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "and payment of funds worth UGX. 8,205,747 off the IPPS system \n \n\uf0b7 \nI noted a number of issues in the implementation of the \napproved budget such as; under absorption of funds worth UGX. \n2,000,000,000,000 \nthat \nwere \neventually \nswept \nback \nto \nconsolidated fund account at end of financial year; under \nperformance worth UGX. 2,097,035,126 from planned donor \nfunds, \nNTR \nand \nreleases \nfrom \nGovernment.; \npartial \nimplementation of planned activities \n \n\uf0b7 \nThe district mischarged expenditure worth UGX. 71,513,039 on \nwrong budget lines other than those prescribed for salary, \npension or gratuity", "metadata": {"page": 334, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "324 \n \n \n\uf0b7 \nI noted that the entity had prepared a strategic plan but the \nNational Planning Authority had not yet approved it at the time of \naudit. \n \n\uf0b7 \nFailure to quantify outputs, partial and non-implementation of \nplanned activities, late submission of quarterly reports \n \n\uf0b7 \nI noted that funds to the tune of UGX. 571,677,701 were \nirregularly diverted from the activities on which they were \nbudgeted and spent on other activities without seeking and \nobtaining the necessary approvals. \n \n\uf0b7 \nOf the 9 road equipments at the district, 03 were grounded and \nin need of major repairs and I also observed lack of vital road \nequipment such as an excavator, a backhoe, supervision double \ncabin pickup and 02 supervision motor cycles. \n \n\uf0b7", "metadata": {"page": 335, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nDelayed construction works on Buyende Seed School and expired \nperformance security for the contract from the contractor was \nalso noted \n \n\uf0b7 \nI note that there undelivered ICT Equipments worth UGX. \n148,842,899 to Buyende Seed Secondary School; unutilized \nfunds worth UGX. 178,400,391 meant for procurement of \nlearning materials for (05) secondary schools and (91) primary \nschools. \n \n\uf0b7 \nI noted that accountability amounting to UGX. 61,788,892 were \nnot presented for verification by the time of audit. \n \n\uf0b7 \nThe district lacked land titles for 48 pieces measuring \napproximately 1,942 hectares which exposed the land to loss and \nencroachment. \n03. \nJinja DLG \n \nOpinion: Unqualified \n\uf0b7", "metadata": {"page": 335, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nI noted a number of anomalies during review of the district \npension & salary payrolls such as; Failure to submit wage \nestimates to MoPs, unpaid salaries and pension arrears of UGX \n484,546,138; Underpayment of salaries to staff worth UGX. \n40,243,749; under payment of UGX 6,386,999 to pensioners; \nover payment of UGX 9,607,227; payment of salaries worth UGX. \n2,763,055 to six (06) staffs who were no longer in service \n \n\uf0b7 \nAdditionally, I observed that there was delayed access to payroll \nby Fifteen (15) newly recruited/ transferred employees and three \n(03) pensioners; un-deducted PAYE from political leaders\u2019 \ngratuity resulting in unpaid tax of UGX. 10,866,949; failure to \nprepare monthly wage, pension and gratuity performance", "metadata": {"page": 335, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "analysis report on payroll to MoPS and payment to 06 staff and \n09 pensioners of funds worth UGX. 62,763,120 off the IPPS \nsystem \n \n\uf0b7 \nI noted a number of issues in the implementation of the \napproved budget such as; Failure to Quantify outputs; partial &", "metadata": {"page": 335, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "325 \n \nnon-implementation of planned activities and delayed submission \nof performance reports; under absorption of funds worth UGX. \n1,890,511,130 that were eventually swept back to consolidated \nfund account at end of financial year; under performance of NTR \nworth UGX. 341,038,789 \n \n\uf0b7 \nThe district has outstanding unrecovered YLP and UWEP \nadvances worth UGX. 1,164,605,343 \n \n04. \nJinja MC \n \nOpinion: Unqualified \n\uf0b7 \nI noted a number of anomalies during review of the municipal \npension & salary payrolls such as; Failure to submit wage \nestimates to MoPs, failure to utilize wage funds of UGX.0.5Bn; \nunpaid salaries and pension arrears of UGX 484,546,138;", "metadata": {"page": 336, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Underpayment of salaries to staff worth UGX 2,179,634; under \npayment of UGX.54,373,901 to pensioners; over payment of \ngratuity worth UGX 34,302,808 to one pensioner arising from \nwrong computation; Underpayment of pensions worth UGX \n49,155,207; nonpayment of a pensioner worth UGX 10,907,334 \nand payment of salaries worth UGX. 1,158,981 to two (02) staffs \nwho were no longer in service \n \n\uf0b7 \nAdditionally, I observed that there was delayed access to payroll \nby eight (08) newly recruited/ transferred employees and thirty \nfive (35) pensioners; failure to prepare monthly wage, pension \nand gratuity performance analysis report on payroll to MoPS; Net \nunder remittance of payroll deductions worth UGX. 42,851,131;", "metadata": {"page": 336, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "payment of a staff and a pensioner worth UGX 13,515,274 off \nthe IPPS and payment to 03 employees worth UGX. 6,202,537 \nwithout signed pay change reports. \n \n\uf0b7 \nI noted a number of issues in the implementation of the \napproved budget such as; Failure to Quantify outputs; delayed \nsubmission of performance reports; under absorption of funds \nworth UGX 2,361,255,255 that were eventually swept back to \nconsolidated fund account at end of financial year; under \nperformance of NTR & transfers from other Government Units \nworth UGX. 6,353,273,753 \n \n\uf0b7 \nI noted that the entity had prepared a strategic plan but the \nNational Planning Authority had not yet approved it at the time of \naudit \n \n\uf0b7 \nThe Municipal Council had outstanding payables of UGX", "metadata": {"page": 336, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "894,801,904 by the end of the year \n \n\uf0b7 \nThe Municipality mischarged UGX. 132,864,963 on wrong \naccount codes other than those prescribed for salary, pension or \ngratuity. \n \n\uf0b7 \nI noted underfunding of UGX. 41,469,000 from URF that affected \nthe routine manual, mechanized and periodic road maintenance \nunder force account mechanism.", "metadata": {"page": 336, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "326 \n \n\uf0b7 \nI noted that the Municipal Council had 12-road equipment of \nwhich two (02) were grounded and in need of major repairs. \nAdditionally, I also observed that the Municipal lacked vital road \nequipment like a water bowser, a roller, chips spreader and a \njet/pothole patcher. \n \n\uf0b7 \nUnder USMID, the Municipal Council had unspent balance of UGX \n1,701,586,908, \nmeant \nfor \nroad \nconstruction \nworks \nand \nincomplete road works by the year end \n \n\uf0b7 \nUnder UgIFT, I noted that the construction works on Kimaka \nHealth Centre III at a cost of UGX. 493,924,741 had stalled for \nover a year and the contractor had abandoned the site. \n \n\uf0b7", "metadata": {"page": 337, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nThe Municipal Council lacked land titles for 16 pieces measuring \napproximately over 34.265 hectares which exposed the land to \npossible loss and encroachment. \n \n\uf0b7 \nI noted that Council was involved in 13 ongoing court cases \nwhich could lead to possible loss of funds. \n05. \nKaliro DLG \n \nOpinion: Unqualified \n\uf0b7 \nI noted a number of anomalies during review of the district \npension & salary payrolls such as; Failure to submit wage \nestimates to MoPs, failure to utilize wage funds of UGX.0.4Bn; \nUnderpayment of salaries to staff worth UGX. 24,360,137; under \npayment of UGX. 44,242,332 to pensioners and payment of \nsalaries worth UGX. 2,246,579 to 5 staffs who were no longer in \nservice \n \n\uf0b7", "metadata": {"page": 337, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nAdditionally, I observed that there was delayed access to payroll \nby fifty-one (51) newly recruited/transferred employees and 03 \npensioners; un-deducted PAYE from political leaders\u2019 gratuity \nresulting in unpaid tax of UGX. 8,194,860. \n \n\uf0b7 \nI noted a number of issues in the implementation of the \napproved budget such as; Failure to Quantify outputs; delayed \nsubmission of performance reports; under absorption of funds \nworth UGX. 1,575,930,542 that were eventually swept back to \nconsolidated fund account at end of financial year; under \nperformance of NTR & transfers from other Government Units \nworth UGX. 288,478,184. \n \n\uf0b7 \nI noted that the district had outstanding receivables of UGX. \n1,240,015,837 at year end that had not been collected \n \n\uf0b7", "metadata": {"page": 337, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nThere was delayed physical progress of the works at Buyinda \nhealth centre, Kasokwe Health Centre and Bukamba Seed \nSecondary School. This was attributed to effects of Covid-19 \npandemic. \n \n\uf0b7 \nI noted that Kaliro DLG did not have land titles for 38 pieces of \nland measuring approximately 283.25 acres. \n06. \nKamuli MC \n\uf0b7 \nI noted a number of anomalies during review of the Municipal", "metadata": {"page": 337, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "327 \n \n \nOpinion: \nUnqualified \npension & salary payrolls such as; Failure to submit wage \nestimates to MoPs, failure to utilize wage funds of UGX.0.4Bn; \nUnderpayment of salaries to staff worth UGX 17,301,287; \noverpayment to 239 staff worth UGX 12,549,285 under payment \nof gratuity worth UGX. 8,102,108 to pensioners; payment of \nsalaries worth UGX. 5,528,605 to 2 staffs who were no longer in \nservice; over and under remittance of salary deductions \namounting to UGX 1,392,544 and UGX 30,126,523 \n \n\uf0b7 \nAdditionally, I observed that there was delayed access to payroll \nby 25 newly recruited/ transferred employees and 05 pensioners;", "metadata": {"page": 338, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "un-deducted PAYE from political leaders\u2019 gratuity resulting in \nunpaid tax of UGX. 2,026,660; Unauthorized payroll deductions \nworth UGX 156,349,689 relating to 84 without letters of \nundertaking; over deductions payments worth UGX. 2,876,352 \nand paid 03 staff and 07 politicians were worth UGX 14,156,592 \noff the IPPS \n \n\uf0b7 \nI noted a number of issues in the implementation of the \napproved budget such as; Failure to Quantify outputs; delayed \nsubmission of performance reports; inaccurate reporting of \nperformance; \nunder \nabsorption \nof \nfunds \nworth \nUGX \n9,850,625,641 that were eventually swept back to consolidated \nfund account at end of financial year; under performance of NTR \n& transfers from other Government Units worth", "metadata": {"page": 338, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "& transfers from other Government Units worth \nUGX. \n609,177,435 \n \n\uf0b7 \nI noted that the Municipal Council had outstanding receivables of \nUGX 592,620,187 that had not been recovered by year end. \n \n\uf0b7 \nI noted that the entity had prepared a strategic plan but the \nNational Planning Authority had not yet approved it at the time of \naudit. \n \n\uf0b7 \nFailure to quantify outputs, partial or non-implementation of \nactivities not quantified late submission of quarterly reports and. \n \n\uf0b7 \nThe Municipal Council had unspent funds under the USMID grant \nworth UGX. 9,421,230,865, which was subsequently swept back \nto the Consolidated Fund. Additionally, that the road construction \nworks did not take off in the financial year under review. \n \n\uf0b7", "metadata": {"page": 338, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nI noted that the construction works of two classroom blocks and \nwater borne toilet at Busoga High School at UGX. 309,872,760 \nwere incomplete. \n \n\uf0b7 \nThe Municipal Council lacked land titles for 11 pieces which \nexposed the land to loss and encroachment. \n \n07. \nMayuge DLG \n \nOpinion: Unqualified \n\uf0b7 \nI noted a number of anomalies during review of the district \npension & salary payrolls such as; Failure to submit wage \nestimates to MoPs, failure to utilize wage funds of UGX.1.2Bn; I \nalso noted that there was an under payment of salaries and", "metadata": {"page": 338, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "328 \n \npensions worth UGX. 1,193,840,180; Unpaid salaries worth UGX. \n14,134,729; over payments of UGX. 17,722,575 to pensioners; \n71 staff were paid using wrong salary scales, leading to monthly \nover payments of UGX. 1,177,702 and under payments of UGX. \n1,257,209 respectively; nine (09) employees and fifteen (15) \npensioners failed to access the payroll during the year; under \nremittance of salary deductions worth UGX. 45,320,114 \n \n\uf0b7 \nAdditionally, I observed that there was delayed access to payroll \nby one hundred nine (109) newly recruited/ transferred \nemployees and sixteen (16) pensioners; un-deducted PAYE from \npolitical leaders\u2019 gratuity resulting in unpaid tax of UGX. \n13,865,233;", "metadata": {"page": 339, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "13,865,233; \nUnauthorized \nloan \ndeductions \nworth \nUGX. \n52,171,779 relating to 59 employees due to absence of Letters of \nundertaking; over deductions payments worth UGX. 2,876,352 \nand Paid 07 employees and 09 pensioners worth UGX. \n89,285,252 off the IPPS \n \n\uf0b7 \nI noted a number of issues in the implementation of the \napproved budget such as; Failure to Quantify outputs; delayed \nsubmission of performance reports; inaccurate reporting of \nperformance; \nunder \nabsorption \nof \nfunds \nworth \nUGX \n2,017,223,134 that were eventually swept back to consolidated \nfund account at end of financial year; under performance of NTR \n& transfers from other Government Units worth \nUGX.", "metadata": {"page": 339, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "UGX. \n1,017,773,209 and delayed completion for the construction of \nBukatube health and Nkombe Health Centre III \n \n\uf0b7 \nI noted that the district had outstanding receivables of UGX. \n1,559,419,200 by year end \n \n\uf0b7 \nThe Mayuge District had outstanding pension liabilities of UGX. \n1,251,580,052 by the end of the year. \n \n\uf0b7 \nI noted that Mayuge District received off-budget financing to a \ntune of UGX 58,291,066 directly from Ministry of Local \nGovernments for undertaking activities which were never \ndeclared to the PS/ST. \n \n\uf0b7 \nI noted that there is illegal mining of sand being carried out at \nthe district lakeshores. The Accounting Officer explained that \nmanagement had written to the prospective stakeholders in the", "metadata": {"page": 339, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "sand mining activities giving guidance on the sustainable way of \ncarrying out the activity including closure of some of the sand \nmines. \n \n\uf0b7 \nI noted that Mayuge DLG did not have land titles for 33 pieces of \nland measuring approximately 1430.761 Ha. \n08. \nLugazi MC \n \nOpinion \nUnqualified \n\uf0b7 \nI noted a number of anomalies during review of the Municipal \npension & salary payrolls such as; Failure to submit wage \nestimates to MoPs, failure to utilize wage funds of UGX.0.4Bn; I \nalso noted that there was an under payment of salaries worth \nUGX. 8,183,158; Unpaid salaries worth UGX. 34,305,160; Under", "metadata": {"page": 339, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "329 \n \npayments of UGX. 321,560,027 to pensioners; over payments of \nUGX. 7,263,946 and under payments of UGX. 1,360,106 arising \nfrom use of wrong bands; over and under remittance of salary \ndeduction \nworth \nUGX. \n2,697,535 \nand \nUGX. \n35,487,023 \nrespectively \n \n\uf0b7 \nAdditionally, I observed that there was delayed access to payroll \nby 14 newly recruited/ transferred employees and thirteen (13) \npensioners; un-deducted PAYE from political leaders\u2019 gratuity \nresulting in unpaid tax of UGX. 3,289,681; Unauthorized loan \ndeductions worth UGX. 565,433,218 relating to 500 employees", "metadata": {"page": 340, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "due to absence of Letters of undertaking; over deductions \npayments worth UGX. 2,876,352 and paid 15 staff and 10 \npensioners a total of UGX. 27,696,793 off the IPPS \n \n\uf0b7 \nI noted a number of issues in the implementation of the \napproved budget such as; Failure to Quantify outputs; delayed \nsubmission of performance reports; under absorption of funds \nworth UGX 14,415,862,633 that were eventually swept back to \nconsolidated fund account at end of financial year \n \n\uf0b7 \nI noted that the Municipal Council had outstanding receivables of \nUGX. 1,973,054,521 by the year end that remained unrecovered \n \n \n\uf0b7 \nUnder absorption of funds worth UGX. 14,177,800,402 under the \nUSMID program that was eventually swept back to the \nconsolidated fund.", "metadata": {"page": 340, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "consolidated fund. \n \n\uf0b7 \nI noted under performance of funds worth UGX 17,916,865 from \nUganda Road Fund meant for road maintenance in the \nmunicipality. \n \n\uf0b7 \nI noted that Council was involved in 06 ongoing court cases \n09. \nNamayingo DLG \n \nOpinion: Unqualified \n\uf0b7 \nI noted a number of anomalies during review of the district \npension & salary payrolls such as; Failure to submit wage \nestimates to MoPs, failure to utilize wage funds of UGX.0.72Bn; \nUnpaid salaries and pensions worth UGX. 49,235,421; under \npayments of UGX. 129,040,476 to pensioners; over and under \npayment of salaries worth UGX. 14,206,136 and UGX. 4,684,855 \nrespectively due to use of wrong salary scales", "metadata": {"page": 340, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nAdditionally, I noted there was un-deduction of PAYE from \npolitical leaders\u2019 gratuity resulting in unpaid tax of UGX. \n9,992,741; \nUnauthorized \nloan \ndeductions \nworth \nUGX. \n702,716,508 relating to 458 employees due to absence of Letters \nof undertaking; paid 33 staff and 16 pensioners a total of UGX. \n38,434,320 off the IPPS \n \n\uf0b7 \nI observed that twenty-four (24) newly recruited/transferred \nemployees and ten (10) pensioners delayed to access payroll; \nfour (04) employees & seventeen (17) pensioners had not yet \naccessed the payroll by the close of the financial year and", "metadata": {"page": 340, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "330 \n \npayment of 5 employees who were no longer in service \n \n\uf0b7 \nI noted a number of issues in the implementation of the \napproved budget such as; Failure to quantify outputs; partial and \nnon-implementation of planned activities delayed submission of \nperformance reports; under absorption of funds worth UGX. \n1,299,253,676 that were eventually swept back to consolidated \nfund account at end of financial year and under performance of \nrevenues worth UGX. 896,645,767 \n \n\uf0b7 \nThe District mischarged funds worth UGX. 5,057,686 on account \ncodes other than those prescribed for salary, pension and \ngratuity. \n \n\uf0b7 \nFurther, the District did not prepare monthly wage, pension and \ngratuity performance analysis and thus did not submit quarterly \nreturns on payroll to MoPS,", "metadata": {"page": 341, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nI noted that the district had outstanding receivables of UGX. \n1,063,954,752 that had not been recovered. \n \n\uf0b7 \nThere was a delay in the physical progress of works at Bukana \nhealth centre III and Syanyonja Health centre. \n \n\uf0b7 \nI noted that Namayingo DLG did not have land titles for 113 \npieces of land measuring approximately 357.3 hectares and 09 \npieces of land were in the process of being titled. \n10. \nBugweri DLG \n \nOpinion \nUnqualified \n\uf0b7 \nI noted a number of anomalies during review of the district \npension & salary payrolls such as; Failure to submit wage \nestimates to MoPs, failure to utilize wage funds of UGX.0.38Bn;", "metadata": {"page": 341, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Unpaid pensions worth UGX. 110,127,127; Over payments of \nUGX. 3,000,000 to pensioners; over and under payment of \nsalaries worth 9,273,543 and UGX. 4,410,477 respectively due to \nuse of wrong bands \n \n\uf0b7 \nAdditionally, I noted there was un-deduction of PAYE from \npolitical leaders\u2019 gratuity resulting in unpaid tax of UGX. \n1,040,880; paid 23 staff and 15 pensioners were paid a total of \nUGX. 33,868,147 and UGX. 190,371,130 off the IPPS; over and \nunder remittances of pay roll deductions of UGX. 532,326,787 \nand UGX. 31,529,271 respectively; Payment of UGX.35,780,089 \nto 09 employees who were no longer in service; wrong", "metadata": {"page": 341, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "computation of gratuity benefits of 01 pensioner (TAJJUBA \nSTEPHEN 417573) that resulted into an over payment of gratuity \nby UGX. 26, 936,170. \n \n\uf0b7 \nI observed that 22 newly recruited employees and 15 pensioners \ndelayed to access the pension payroll and the district did not \nprepare monthly wage, pension and gratuity performance \nanalysis and thus did not submit quarterly returns on payroll to \nMoPS", "metadata": {"page": 341, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "331 \n \n\uf0b7 \nI noted a number of issues in the implementation of the \napproved budget such as; Failure to quantify outputs; partial and \nnon-implementation of planned activities delayed submission of \nperformance reports; under absorption of funds worth UGX. \n944,877,155 that were eventually swept back to consolidated \nfund account at end of financial year and under performance of \nrevenues worth UGX. 6,114,158,151 \n \n\uf0b7 \nI noted that the District had outstanding receivables worth UGX. \n499,741,444 that was not yet recovered. \n \n\uf0b7 \nI noted that the district had prepared a draft strategic plan but it \nhad not yet been approved by the National Planning Authority. \n \n\uf0b7 \nI noted that Bugweri District received off-budget financing to a", "metadata": {"page": 342, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "tune of UGX. 860,199,000 without seeking approval. \n \n\uf0b7 \nI noted that funds to the tune of UGX. 129,996,921 were \nmisclassified. \n \n\uf0b7 \nI noted that the District lacked land titles for 31 pieces of land \nmeasuring approximately 179 acres including schools, sub \ncounties and health centers. \n \n\uf0b7 \nBugweri district received a sum of UGX. 155,136,081 for (06) \nsecondary schools and (54) primary schools meant for the \nprocurement of learning materials in March, 2021 but disbursed \nonly UGX. 136,182,515 to the respective schools on 4th June, \n2021 leaving an outstanding amount of UGX. 18,953,562 which \nremained unaccounted for. \n \n\uf0b7 \nI noted that expenditure totaling UGX. 374,878,394 lacked", "metadata": {"page": 342, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "adequate supporting documentation at the close of the financial \nyear \n11. \nBugiri Municipal \nCouncil \n \nOpinion \nUnqualified \n\uf0b7 \nI noted a number of anomalies during review of the district \npension & salary payrolls such as; Failure to submit wage \nestimates to MoPs, failure to utilize wage funds of UGX.0.53Bn \nand over payment of salaries worth UGX. 4,618,049 due to use \nof wrong bands \n \n\uf0b7 \nAdditionally, I observed that there was delayed access to payroll \nby 11 employees on the salary payroll and 03 pensioners on the \npension pay roll; over and underpayment of salaries worth UGX. \n5,020,000 UGX. 1,353,000; paid 15 staff and 03 pensioners were", "metadata": {"page": 342, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "paid a total of UGX. 58,059,084 off the IPPS and paid five (5) \nemployees a total of UGX. 29,073,390 without signed pay change \nreports \n \n\uf0b7 \nI noted a number of issues in the implementation of the \napproved budget such as; Failure to quantify outputs; partial and \nnon-implementation of planned activities delayed submission of \nperformance reports; under absorption of funds worth UGX. \n568,033,989 that were eventually swept back to consolidated", "metadata": {"page": 342, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "332 \n \nfund account at end of financial year and under performance of \nrevenues worth UGX. 334,420,647. \n \n\uf0b7 \nI noted that funds to the tune of UGX. 33,234,682 were paid on \nthe wrong account codes. \n \n\uf0b7 \nI noted that the Council had outstanding receivables of UGX. \n585,573,492. That remained unrecovered by year end \n \n\uf0b7 \nI noted that the entity\u2019s NDP-III was still in draft form and had \nnot had its Strategic plan approved by NPA at the time of audit. \n \n\uf0b7 \nRoad maintenance works was affected by budget shortfalls for \nfunds worth GX 63,409,282 from URF. \n \n\uf0b7 \nI noted that expenditure totaling UGX. 37,580,848 advanced to", "metadata": {"page": 343, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "staff and various suppliers to carry out activities lacked adequate \nsupporting documents. \n \n\uf0b7 \nI noted that the Council lacked land titles for 07 pieces of its \nland. \n12. \nKamuli DLG \n \nOpinion \nUnqualified \n\uf0b7 \nI noted a number of anomalies during review of the district \npension & salary payrolls such as; Failure to submit wage \nestimates to MoPs, failure to utilize wage funds of UGX.1.3Bn; \nUnpaid pensions worth UGX. 129,711,499; Under payments of \nUGX. 789,022,349 to pensioners; under payment of salaries \nworth UGX. 16,604,611 and nonpayment of salaries worth UGX. \n13,045,994 \n \n\uf0b7 \nAdditionally, I observed that there was delayed access to payroll", "metadata": {"page": 343, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "by 25 newly recruited/ transferred employees and 14 pensioners; \nun-deducted PAYE from political leaders\u2019 gratuity resulting in \nunpaid tax of UGX.13,801,906; Unauthorized loan deductions \nworth UGX. 179,141,809 due to absence of Letters of \nundertaking; over/ under remittance of salary deductions worth \nUGX. 2,758,277 and paid UGX.5, 049,620 to 13 staff who had \nretired, transferred, absconded or died. \n \n\uf0b7 \nI noted that Kamuli District had outstanding receivables figure of \nUGX. 1,309,756,172 that remained unrecovered by year end. \n \n\uf0b7 \nI noted, the entity did not have an approved strategic plan that is \naligned to the NDP-III at the time of audit. \n \n\uf0b7", "metadata": {"page": 343, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nI noted a number of issues in the implementation of the \napproved budget such as; Failure to quantify outputs; partial and \nnon-implementation of planned activities delayed submission of \nperformance reports; under absorption of funds worth UGX. \n3,884,528,244 that was eventually swept back to consolidated \nfund account at end of financial year and under performance of \nrevenues worth UGX. 1,734,443,308 \n \n\uf0b7 \nI noted that Kamuli District received off-budget financing to a", "metadata": {"page": 343, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "333 \n \ntune of UGX. 185,243,153 directly from Ministry of Health (MoH) \nand Marie topes for undertaking activities which was never \ndeclared to the PSST and as such no supplementary \nappropriation was issued as guided by the PSST. \n \n\uf0b7 \nI noted that the District lacked land titles for 194 pieces of land \nmeasuring approximately 546 acres including schools and health \ncenters. \n \n\uf0b7 \nI noted delays in the construction works on Kitayunjwa seed \nsecondary school and construction works of seed secondary \nschools at Nabwigulu and Kagumba did not take off in the \nfinancial year under review and the funds were swept back to \ntreasury. \n \n\uf0b7 \nI noted at the time of inspection on 25th August, 2021 that \nscience kits and chemicals that were delivered for Kitayunjwa \nSeed School were still in the district stores.", "metadata": {"page": 344, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nI observed that works at Kagumba HC II were still ongoing and \nthe works progress was behind \n \n\uf0b7 \nUnder URF, There was underfunding of UGX 49,538,044 under \nURF for road maintenance \n13. \nJinja RRH \n \nOpinion \nUnqualified \n\uf0b7 \nI noted a number of anomalies during review of the Hospital \npension & salary payrolls such as; Failure to submit wage \nestimates to MoPs, failure to utilize wage funds of UGX.1.7Bn; \nover payment of gratuity worth UGX. 12,702,466 resulting from \nwrong computations; under payments of pension and gratuity of \nUGX. 393,563,387; under payment of salaries worth UGX.", "metadata": {"page": 344, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "43,160,618 and nonpayment of salaries worth UGX. 5,193,740 to \neight employees; 14 pensioners were paid a total of UGX. \n622,229,852 off the IPPS; twenty two (22) pensioners delayed to \naccess the pension payroll; paid 4 employees who had retired \nworth UGX. 6,149,095 and under remittance of pay roll \ndeductions amounting to UGX. 39,740,732 \n \n\uf0b7 \nThe Hospital had payables of UGX. 1,184,835,800 for payment of \nutilities, pension and gratuity. \n \n\uf0b7 \nI noted that the entity did not have an approved strategic plan \nthat was aligned to the NDP-III at the time of audit. \n \n\uf0b7 \nI noted that the Referral Hospital received off-budget financing", "metadata": {"page": 344, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "to a tune of UGX.1,482,640,867, which was not declared to \ntreasury. \n \n\uf0b7 \nExpenditure totaling UGX. 154,045,146 was misclassified through \nwrong coding \n \n\uf0b7 \nThe referral hospital received UGX. 581,089,500 as covid 19 \nfunds. Out of which UGX. 385,881,400 was utilized but UGX.30, \n585,000 lacked adequate supporting documentation at the close", "metadata": {"page": 344, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "334 \n \nof the financial year. Further, I observed there was unspent \nbalance of UGX. 195,208,100 \n \n\uf0b7 \nI noted that NTR totaling to UGX.74, 272,140 was spent at \nsource contrary to regulations \n \n\uf0b7 \nJinja RRH made Payments totaling UGX.41, 914,100 for clearing \ndomestic arrears lacked appropriate supporting documents, \nUGX.76, 523,500 paid to M/S Rodek Enterprises Ltd towards \nsettlement of outstanding bills for cleaning services of the \nhospital had not been cleared by Ernst and Young. \n \n\uf0b7 \nThe hospital received off-budget financing from the Ministry of \nhealth amounting to UGX. 1,482,640,867. \n \n\uf0b7 \nI noted that the hospital commenced construction of a storey", "metadata": {"page": 345, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "staff house on 15th/04/2019 with an intended completion date of \n14th /10/2021 at a contract price of UGX. 3,205,111,734 but was \nnoted to be incomplete to date, with outstanding advance \npayment of UGX. 73,337,302 to the contractor. \n \n\uf0b7 \nExpenditures \nworth \nUGX. \n166,012,755 \nlacked \nadequate \nsupporting documents \n \n\uf0b7 \nThe Hospital had stock outs of Essential medicines for supportive \ntreatment of Covid-19 during the year with an average stock out \nperiod of more than a month. Several drugs that expired during \nthe year had not yet been removed from the shelves as required. \n \n\uf0b7 \nI observed that the hospital did not carry out regular \nmaintenance of the available medical equipment. \n \n\uf0b7", "metadata": {"page": 345, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nI noted that the Hospital did not have land titles for 5 pieces of \nland measuring approximately 46.7 acres. \n \n\uf0b7 \nI noted that some of the buildings in the hospital were in a \ndilapidated state while other blocks accommodating nurses were \nnot fit for accommodation due to their dilapidated state and \nthere was lack of hygiene facilities such as latrines and \nbathrooms. \n14. \nBugiri DA \n \nUnqualified Opinion \n\uf0b7 \nI noted a number of anomalies during review of the district \npension & salary payrolls such as; Failure to submit wage \nestimates to MoPs, failure to utilize wage funds of UGX.0.017Bn; \nun-deducted PAYE from political leaders\u2019 gratuity resulting in \nunpaid tax of UGX.13,100,078 \n \n\uf0b7", "metadata": {"page": 345, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nAdditionally, 68 newly recruited/ transferred employees and 04 \npensioners delayed to access the payroll; paid 7 employees who \nwere no longer in service worth UGX. 4,090,197; Unpaid salaries \nworth UGX. 6,074,121; underpayment and overpayment of \npensions & gratuity worth UGX. 26,897,618 and UGX. 13,600,648 \nrespectively and the district made unauthorized loan deductions \nfrom 49 employees worth UGX. 150,566,095", "metadata": {"page": 345, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "335 \n \n \n\uf0b7 \nI noted that Bugiri District had outstanding receivables of UGX. \n1,140,326,136 that had remained unrecovered \n \n\uf0b7 \nPayables of UGX. 30,517,114 remained unsettled by year end \n \n\uf0b7 \nI noted that the entity had prepared a draft Strategic plan but \nhad not yet been approved by NPA at the time of audit. \n \n\uf0b7 \nI noted a number of issues in the implementation of the \napproved budget such as; Failure to quantify outputs; partial and \nnon-implementation of planned activities delayed submission of \nperformance reports; under absorption of funds worth UGX. UGX. \n422,963,116 that was eventually swept back to consolidated fund \naccount at end of financial year and under performance of \nrevenues worth UGX. 3,550,589,111", "metadata": {"page": 346, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nI noted that funds to the tune of UGX. 172,737,949 were \nirregularly diverted from the activities on which they were \nbudgeted and spent on other activities without seeking and \nobtaining the necessary approvals. \n \n\uf0b7 \nI noted that construction works for Budhaya Seed secondary \nschool did not take off \n \n\uf0b7 \nUnderfunding worth UGX 24,751,000 was noted for URF meant \nfor road maintenance \n \n\uf0b7 \nI noted that the District lacked land titles for 16 pieces of land \nmeasuring approximately 106.7 acres including schools, sub \ncounties and health centers. \n \n\uf0b7 \nBugiri district received a sum of UGX. 204,224,148 for (08) \nsecondary schools and (140) primary schools meant for the \nprocurement of learning materials. I noted that (47) schools had", "metadata": {"page": 346, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "irregularly utilized the funds totaling to UGX. 50,639,930 without \nproper guidance, (58) schools had not utilized the funds, while \nbank statements as at end of October 2021 for (43) schools were \nnot presented to enable establishment of whether the funds had \nbeen utilized without proper guidance or not. \n15. \nNjeru MC \n \nOpinion \nUnqualified \n\uf0b7 \nI noted a number of anomalies during review of the Municipal \npension & salary payrolls such as; Failure to submit wage \nestimates to MoPs, failure to utilize wage funds of UGX.0.31Bn; \nUnder and overpayment of salaries worth UGX. 8,321,986 and \nUGX. 31,890,939 respectively; under payments of pensions worth \nUGX. 4,693,227; paid 12 staff a total of UGX. 13,933,412 off the", "metadata": {"page": 346, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "IPPS; the Municipal Council did not prepare monthly wage, \npension and gratuity performance analysis for submission to \nMoPS and Paid UGX. 6,413,424 to 05 staff who were no longer in \nservice \n \n\uf0b7 \nAdditionally, I noted that 18 newly recruited/ transferred \nemployees and 08 pensioners delayed to access the pension", "metadata": {"page": 346, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "336 \n \npayroll and 01 pensioner had never accessed the payroll; 15 \nemployees were paid a total of UGX. 16,677,139 without signed \npay change reports; over and under payment of thirteen (13) \npensioners worth UGX. 34,733,352 and UGX. 24,197,298 \nrespectively arising from wrong computation of gratuity benefits \n \n\uf0b7 \nThe municipality paid 322 employees using the wrong bands, \nleading to monthly over payments of UGX. 7,147,390 and under \npayments of UGX. 2,837,275 \n \n\uf0b7 \nThe Municipal Council made unauthorized loan deductions \ntotaling UGX. 14,734,700 from 19 employees that lacked \nevidence of signing letters of undertaking \n \n\uf0b7 \nThe Municipal Council had outstanding unrecovered funds", "metadata": {"page": 347, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "(receivables) of UGX. 891,306,154 by close of financial year \n \n\uf0b7 \nI noted that the Municipal Council had prepared but had not had \nthe strategic plan approved and aligned to the NDP-III at the \ntime of audit \n \n\uf0b7 \nI noted a number of issues in the implementation of the \napproved budget such as; Failure to quantify outputs; partial and \nnon-implementation of planned activities delayed submission of \nperformance reports; under absorption of funds worth UGX. \n1,815,926,807 that was eventually swept back to consolidated \nfund account at end of financial year and under performance of \nrevenues worth UGX. 2,234,326,614 \n \n\uf0b7 \nURF underfunding of UGX. 86,246,400 meant for road \nmaintenance was noted \n \n\uf0b7", "metadata": {"page": 347, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nNjeru MC received a sum of UGX. 84,619,384 for (48) primary \nand secondary schools meant for the procurement of learning \nmaterials in March, 2021 and disbursed UGX. 84,619,384 (100%) \nto (48) schools on 28th June, 2021. However, the various \nschool\u2019s bank statements had not been availed for review at the \ntime of audit \n \n\uf0b7 \nI noted that the Municipal Council did not have land titles for 12 \nout of 22 pieces of land including schools and health centers \n16. \nIganga DLG \n \nOpinion \nUnqualified \n\uf0b7 \nI noted a number of anomalies during review of the district \npension & salary payrolls such as; Failure to submit wage \nestimates to MoPs, failure to utilize wage funds of UGX.1.07Bn;", "metadata": {"page": 347, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "under payment of salaries worth UGX. 32,546,140; non-\npayments of pensioners worth UGX. 80,485,339; paid 16 staff \nusing wrong bands, leading to monthly over payments of UGX. \n287,429 and under payments of UGX. 526,840; paid UGX. \n4,349,175 to 07 staff who had retired, transferred or absconded; \nover and under remittance of salary deductions worth UGX. \n7,428,040 and UGX. 42,133,941 respectively \n \n\uf0b7 \nAdditionally, I noted that there was Un-deducted PAYE from", "metadata": {"page": 347, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "337 \n \npolitical \nleaders\u2019 \ngratuity \nresulting \nin \nunpaid \ntax \nof \nUGX.10,059,827; 32 pensioners delayed to access the pension \npayroll and 19 pensioners had never accessed the payroll and \ntherefore not paid; 55 employees were paid a total of UGX. 30 \nmillion without signed pay change reports and 73 employees and \n34 pensioners were paid a total of UGX. 1,166,247,120 off the \nIPPS \n \n\uf0b7 \nThe district had outstanding unrecovered funds (receivables) of \nUGX. 1,705,945,185 by the end of the period \n \n\uf0b7 \nI noted that the district was engrossed in a number of court \ncases estimated at UGX. 3,832,685,041", "metadata": {"page": 348, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nI noted a number of issues in the implementation of the \napproved budget such as; Failure to quantify outputs; partial and \nnon-implementation of planned activities delayed submission of \nperformance reports; under absorption of funds worth UGX. \n2,137,465,419 that was eventually swept back to consolidated \nfund account at end of financial year and under performance of \nrevenues worth UGX. 9,278,908,203 \n \n\uf0b7 \nI noted that the entity had not prepared and approved a \nstrategic plan that is aligned to the NDP-III \n \n\uf0b7 \nI noted that the District had 04 pieces of land that were not titled \nas well as 33 pieces of land under its supervision that were also \nnot titled \n \n\uf0b7 \nThere was URF underfunding of UGX 57,904,000 meant for road \nmaintenance that affected road roads in the district.", "metadata": {"page": 348, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "17. \nLuuka DLG \n \nOpinion \nUnqualified \n\uf0b7 \nI noted a number of anomalies during review of the district \npension & salary payrolls such as; Failure to submit wage \nestimates to MoPs, failure to utilize wage funds of UGX.1.60Bn; \nunder payment of salaries UGX. 33,624,349 \n \n\uf0b7 \nThe District had with payments leading to over and over \npayments of UGX. 188,313272 due to wrong computation; \nunderpayments of UGX. 39,314,543 to 32 pensioners resulting \nfrom wrong computation of gratuity benefits; made over and \nunder payments of UGX. 16,741,697 and UGX. 8,347,743 \nrespectively due to use of wrong salary bands \n \n\uf0b7", "metadata": {"page": 348, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nPaid UGX. 21,149,890 to 10 staff, who had retired, transferred, \nabsconded or died; under remitted salary deductions worth UGX. \n319,599,269; the District made unauthorized loan deductions \ntotaling UGX. 158,654,625 from 115 employees; Un-deducted \nPAYE from political leaders\u2019 gratuity resulting in unpaid tax of \nUGX. 2,659,020 and under payment of pensioners worth UGX. \n485,724,648 \n \n\uf0b7 \nAdditionally, I noted that 41 newly recruited/ transferred \nemployees and 19 pensioners delayed to access payroll; 47", "metadata": {"page": 348, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "338 \n \nemployees were paid a total of UGX. 215,642,700 without signed \npay change reports; the District did not prepare monthly wage, \npension and gratuity performance analysis and thus did not \nsubmit quarterly returns on payroll to MoPS; I noted that 21 staff \nand 01 pensioner were paid a total of UGX. 37,733,743 off the \nIPPS \n \n\uf0b7 \nThe district mischarged funds worth UGX. 40,695,963 on account \ncodes other than those prescribed for salary, pension and \ngratuity \n \n\uf0b7 \nI noted the district had outstanding unrecovered receivables of \nUGX. 885,992,084 by the year end. \n \n\uf0b7 \nI noted that the Council was engrossed in 03 court cases with \nindividuals which could lead to possible loss of funds", "metadata": {"page": 349, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nI noted that the entity had prepared but not had the strategic \nplan approved and aligned to the NDP-III at the time of audit \n \n\uf0b7 \nI noted a number of issues in the implementation of the \napproved budget such as; Failure to quantify outputs; partial and \nnon-implementation of planned activities delayed submission of \nperformance reports; under absorption of funds worth UGX. \n652,127,207 that was eventually swept back to consolidated fund \naccount at end of financial year and under performance of \nrevenues worth UGX.673,814,209 \n \n\uf0b7 \nThe District commenced construction works on Ikumbya seed \nsecondary school under the Education Sector in the FY \n2018/2019. At the time of inspection on 28th October, 2021, I \nobserved that works were still ongoing at 87% progress, with all \nstructures yet to be properly floored, with partial painting, no", "metadata": {"page": 349, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "glasses, no roofing of latrine and the compound yet to be cleared \nand set \n \n\uf0b7 \nLuuka DLG budgeted for and received UGX. 344,284,000 for the \ninitial stages of the construction of Buwanda Seed Secondary in \nthe FY 2020/2021. However, construction works did not take off \nin the financial year under review and the funds were swept back \nto treasury \n \n\uf0b7 \nLuuka DLG received a sum of UGX. 217,156,943 for 89 primary \nschools and 8 secondary schools meant for the procurement of \nlearning materials on 1st April, 2021 and disbursed UGX. \n136,640,827 (63%) to 53 primary schools and 5 secondary \nschools on 28th June, 2021. UGX. 80,516,116 was not disbursed \nby the district. However, the respective school bank statement", "metadata": {"page": 349, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "and receipts had not been availed for review at the time of audit, \nand as such, I could not establish whether the funds were still on \nthe accounts \n18. \nIganga MC \n \n\uf0b7 \nI noted a number of anomalies during review of the Municipal \npension & salary payrolls such as; Failure to submit wage", "metadata": {"page": 349, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "339 \n \nOpinion \nUnqualified \nestimates to MoPs, failure to utilize wage funds of UGX.0.23Bn; \nunder payment of salaries worth UGX. 119,289,474; irregularly \npaid one staff who had retired UGX. 1,971,915; over remittance \nof payroll deductions worth UGX.10,164,672 \n \n\uf0b7 \nAdditionally, the Municipal Council did not prepare monthly wage, \npension and gratuity performance analysis and thus did not \nsubmit quarterly returns on payroll to MoPS; 22 staff were paid a \ntotal of UGX. 37,734,317 off the IPPS; 15 employees were paid a \ntotal of UGX.7.9 million without signed pay change reports; 03 \nnewly recruited/transferred employees and 6 pensioners delayed \nto access payroll; Un-deducted PAYE from political leaders\u2019", "metadata": {"page": 350, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "gratuity resulting in unpaid tax of UGX. 2,607,660 \n \n\uf0b7 \nI noted that the verification forms and copies of the verification \ncards for all employees and pensioners/beneficiaries were not on \nthe respective personal files \n \n\uf0b7 \nThe Municipal Council had outstanding receivables of UGX. \n1,705,945,185 that had not been recovered by year end. \n \n\uf0b7 \nMunicipal Council had outstanding payables of UGX. 650,570,897 \nunsettled by year \n \n\uf0b7 \nI noted that the Municipal Council had not prepared and \napproved a strategic plan that is aligned to the NDP-III at the \ntime of audit \n \n\uf0b7 \nI noted a number of issues in the implementation of the \napproved budget such as; Failure to quantify outputs; partial and", "metadata": {"page": 350, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "non-implementation of planned activities delayed submission of \nperformance reports; under performance of revenues worth UGX. \n801,240,396 \n \n\uf0b7 \nNoted URF underfunding of UGX 24,821,498 that affected road \nmaintenance at the Municipality \n \n\uf0b7 \nIganga Municipal Council did not have land titles for 15 of the 25 \npieces of land with some land files deemed missing (Bupala \nland). \n \nBranch Kampala \nSummary of Key Findings \n01. \nBuikwe DLG \n \nOpinion \nUnqualified \n \n \n \n \n\uf0b7 \nI noted a number of anomalies during review of the district \npension & salary payrolls such as; Over payment of salary to 7", "metadata": {"page": 350, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "staffs worth UGX. 6,542,796; Underpayment of salaries to 24 \nemployees worth UGX. 20,560,692; payment of salaries worth \nUGX 4,697,808 to two (2) staffs that was no longer in service \nand irregular deduction of loan instalments worth UGX. \n56,120,313 for 23 employees. \n \n\uf0b7 \nAdditionally, I observed that there was delayed access to payroll \nby ten (10) new employees; un-deducted PAYE from political \nleaders\u2019 gratuity resulting in unpaid tax of UGX. 10,214,875; and \nunpaid pension and gratuity worth UGX. 95,481,460", "metadata": {"page": 350, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "340 \n \n \n\uf0b7 \nI noted a number of issues in the implementation of the \napproved budget such as; under absorption of funds worth \nUGX.1.11Bn that was swept back to consolidated fund account \nand under performance of the releases from government worth \nUGX.2,590,769,685; \n \n\uf0b7 \nThe district mischarged expenditure worth UGX. 55,352,971 on \nwrong budget lines \n \n\uf0b7 \nThe district had unrecovered funds worth UGX. 597,864,391 from \nYLP and UWEP groups. \n \n\uf0b7 \nI noted off budget funding worth UGX.1,460,725,115 received for \nResult Based Financing (RBF) from the ministry of Finance. \n \n\uf0b7 \nI also noted that the original copy of the title for Plot 18", "metadata": {"page": 351, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Kyaggwe block 564, land at Nansagazi landing site measuring \n7.06 hectares was missing from the safe. \n02. \nBuvuma DLG \n \nOpinion \nUnqualified \n\uf0b7 \nI noted a number of anomalies during review of the district \npension & salary payrolls such as; Over payment of salaries \nworth UGX. UGX.1,243,832; Underpayment of salaries worth \nUGX. UGX.1,667,474; Wrong computation of gratuity for four (4) \npensioners \nworth \nUGX.2,382,045 \nand \nUGX.1,325,359 \nrespectively; under remittance of employee\u2019s salary deductions \nworth UGX.139,719,468; unpaid salaries worth UGX. 0.883 Bn", "metadata": {"page": 351, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "and delayed remittance of deductions to UCLA/UBA worth \nUGX.224 million \n \n\uf0b7 \nAdditionally, I observed that there was delayed access to payroll \nby twenty (20) new employees and two (2) pensioners; un-\ndeducted PAYE from political leaders\u2019 gratuity resulting in unpaid \ntax of UGX.18,624,938 and payment of one (1) pensioner worth \nUGX.10,519,628 off the IPPS. \n \n\uf0b7 \nI noted a number of issues in the implementation of the \napproved budget such as; partial implementation of planned \nactivities; under absorption of funds worth UGX. 0.888 Bn; under \nperformance of the releases from other government units worth \nUGX.1,004,434; delayed submission of quarterly monitoring \nreports to OPM & MoFPED and late submission of performance \nreports", "metadata": {"page": 351, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "reports \n \n\uf0b7 \nThe district mischarged expenditure worth UGX.31,344,359 on \nwrong budget \n \n\uf0b7 \nI \nnoted \nunrecovered \nfunds \nof \nYLP \nand \nUWEP \nworth \nUGX.426,197,440 and UGX.161,592,376 respectively \n \n03. \nENTEBBE MC \n \nOpinion \n \n\uf0b7 \nI noted a number of anomalies during review of the Municipal \npension & salary payrolls such as; Over payment of salaries", "metadata": {"page": 351, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "341 \n \nUnqualified \nworth UGX.5,237,820; payment of salaries worth UGX.2,734,481 \nto three (03) staffs that were no longer in service; over and \nunder remittance of salaries worth UGX17,579,629 and \nUGX,8,495,808 respectively \n \n\uf0b7 \nAdditionally, I observed that there was delayed access to payroll \nby ten (10) pensioners and un-deducted PAYE from political \nleaders\u2019 gratuity resulting in unpaid tax of UGX,2,607,660 \n \n\uf0b7 \nThe MC had outstanding receivables totaling to UGX.1, \n280,357,120 for YLP, UWEP and uncollected local revenue. \n \n\uf0b7 \nMunicipal Council outstanding commitments of UGX 170,801,502", "metadata": {"page": 352, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "by close of the financial year \n \n\uf0b7 \nI noted a number of issues in the implementation of the \napproved budget such as; under absorption of funds worth UGX. \n5,594,339,871; under performance of the donor worth UGX \n80,040,000 \n& \nshortfalls \nin \nlocal \nrevenue \nworth \nUGX.3,507,045,896; \n \n\uf0b7 \nI noted that there was an over commitment by the Municipal \ncouncil of funds worth UGX. 6,503,237,230 under the USMID \nproject through and agreement signed with M/s China Wu Yi Co. \nLtd on the 21st April 2021. \n \n04. \nLuwero DLG \n \nOpinion \nUnqualified \n\uf0b7", "metadata": {"page": 352, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Unqualified \n\uf0b7 \nI noted a number of anomalies during review of the district \npension & salary payrolls such as; Failure to submit wage \nestimates to MoPs, Over payment of salary worth UGX.150 \nmillion; unpaid salaries worth UGX.1.254 Bn and under/over \nremittance of employee salaries worth UGX.165,627,734 and \nUGX.37,026,373 respectively \n \n\uf0b7 \nThe district did not have an approved strategic plan that is \naligned to the NDP-III at the time of audit. \n \n\uf0b7 \nAdditionally, I observed that there was delayed access to \npayroll by thirty-eight (38) new/transferred employees and twenty-\ntwo (22) pensioners and un-deducted PAYE from political leaders\u2019 \ngratuity resulting in unpaid tax of UGX.15,523,074 \n \n\uf0b7", "metadata": {"page": 352, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nI noted a number of issues in the implementation of the \napproved budget such as; under performance worth UGX. \n1,317,898,459; incomplete works at Katikamu Seed Secondary \nSchool and under absorption of funds worth UGX.1.256 Bn \n \n\uf0b7 \nThe \ndistrict \nreceived \noff-budget \nfinancing \nworth \nUGX.1,002,619,377 directly from Ministry of Health under Result \nBased Financing Programme (RBF) \n \n\uf0b7 \nThe district mischarged expenditure worth UGX.8,575,441 on \nwrong budget lines. \n\uf0b7", "metadata": {"page": 352, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "342 \n \n05. \nMITYANA DLG \n \nOpinion \nUnqualified \n\uf0b7 \nI noted a number of anomalies during review of the district \npension & salary payrolls such as; Over payment of salaries \nworth UGX.2,992,554; Wrong computation of gratuity worth net \noverpayment of UGX. 2,271,141; payment of salaries worth \nUGX.4,057,892 to ten (10) staffs that were no longer in service; \nirregular deduction of loan instalments for three (3) staff worth \nUGX. 1,085,168; over and under remittance of employees\u2019 \nsalaries worth UGX. 9,347,419 and UGX.52,480,527 respectively \nand payroll deductions to UCLA/UBA worth UGX. 10,193,805", "metadata": {"page": 353, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nAdditionally, I observed that there was delayed access to payroll \nby thirty (30) new employees and sixteen (16) pensioners; un-\ndeducted PAYE from political leaders\u2019 gratuity resulting in unpaid \ntax of UGX. 12,460, 278 and unremitted PAYE worth \nUGX.41,763,487 \n \n\uf0b7 \nFailure to remit local government revenue worth UGX.49,502,388 \nto LLGs \n \n\uf0b7 \nThe district did not have an approved strategic plan that is \naligned to the NDP-III at the time of audit. \n \n\uf0b7 \nI noted issues such as incomplete works and under absorption of \nfunds worth UGX.0.7 Bn in the implementation of the approved \nbudget. \n \n\uf0b7 \nThe district lacked a title of land where the health Centre is being \nconstructed.", "metadata": {"page": 353, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "constructed. \n \n06. \nMukono DLG \n \nOpinion \nUnqualified \n\uf0b7 \nI noted a number of anomalies during review of the district \npension & salary payrolls such as; Failure to submit wage \nestimates to MoPs, Over payment of pensioners/employees \nworth \nUGX2,503,100 \nand \nUGX. \n5,442,660 \nrespectively. \nUnderpayment worth UGX. 4,860,118; payment of salaries worth \nUGX.6,175,829 to nine (9) staffs that was no longer in service \nand irregular deduction of loan instalments for five (5) staff \nworth 3,165,094 \n \n\uf0b7 \nAdditionally, I observed that there was delayed access to payroll", "metadata": {"page": 353, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "by fourteen (14) new employees and fourteen (14) pensioners; \nfailure to utilize wage funds of UGX.0.1 billion; un-deducted PAYE \nfrom political leaders\u2019 gratuity resulting in unpaid tax of UGX. \n12,104,504 and payment of five (5) staffs and three (3) \npensioners worth UGX.9,195,665 off the IPPS; over/ under \nremittance of employee\u2019s salary deductions worth UGX. \n2,345,800 and UGX. 97,808,530 respectively. \n \n\uf0b7 \nI noted that 14 employees were paid a total of UGX. 2,875,407 \nwithout signed pay change reports. \n \n\uf0b7 \nI noted a number of issues in the implementation of the \napproved budget such as; incomplete works at Mukono General", "metadata": {"page": 353, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "343 \n \nHospital and Kimenyedde Seed Secondary School; under \nabsorption of funds worth UGX.0.4bn that was swept back to \nconsolidated fund account and under performance worth UGX.1, \n909251149; \n07. \nMUKONO MC \n \nOpinion \nUnqualified \n\uf0b7 \nI noted a number of anomalies during review of the Municipal \npension & salary payrolls such as; Failure to submit wage \nestimates to MoPs, payment of salaries worth UGX 11.1M to nine \n(9) staffs that was no longer in service and unpaid pension worth \nUGX.106.9M \n \n\uf0b7 \nAdditionally, I observed that there was delayed access to payroll \nby four (4) new employees and seven (7) pensioners; un-\ndeducted PAYE from political leaders\u2019 gratuity resulting in unpaid", "metadata": {"page": 354, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "tax of UGX 2.6M and payment of fifty-four (54) staffs and one \n(1) pensioner worth UGX 60.5M off the IPPS \n \n\uf0b7 \nThe Municipal Council did not have an approved strategic plan \nthat is aligned to the NDP-III at the time of audit. \n \n\uf0b7 \nI noted an issue of under performance of the releases from other \ngovernment \nunits \nworth \nUGX.2,529,600,000; \nin \nthe \nimplementation of the approved budget \n08. \nNakaseke DLG \n \nOpinion \nUnqualified \n\uf0b7 \nI noted a number of anomalies during review of the district \npension & salary payrolls such as; Failure to submit pension and \ngratuity estimates to MoPs, Underpayment of pension/gratuity", "metadata": {"page": 354, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "worth UGX.104,392,407; irregular deduction of loan instalments \nof seven (7) employees worth UGX.7, 853,306; unpaid pension \nand gratuity worth UGX.77, 373,425; over and under remittance \nof employee salaries deductions worth UGX.51, 659,500 and \nUGX.3, 303,310 respectively and unpaid pension arrears worth \nUGX.245,882,164 \n \n\uf0b7 \nThe district had outstanding Payables worth UGX.467,701,993 \nand Receivables worth UGX.1,660,675,633 by close of financial \nyear \n \n\uf0b7 \nAdditionally, I observed that there was delayed access to payroll \nby twenty-two (22) employees and twenty-five (25) pensioners;", "metadata": {"page": 354, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "un-deducted PAYE from political leaders\u2019 gratuity resulting in \nunpaid tax of 14, 265,549 and payment of two (2) pensioners \nworth UGX.6,199,129 and 1 staff worth UGX.26,750,870 off the \nIPPS \n \n\uf0b7 \nI noted that Butalangu HCIII lacked laboratory, th\u00e9\u00e2tre and \nmaternity ward equipment \n \n\uf0b7 \nI noted a number of issues in the implementation of the \napproved budget such as; shoddy works on roads- Kinyogoga- \nKyabalongo- \nKitindo \n18.0Km \nand \nKalagala- \nKyamaweno- \nKinyogoga 34km; incomplete works at Kalenge HC III and under \nabsorption of funds worth UGX.0.3 billion that was swept back to \nconsolidated fund account.", "metadata": {"page": 354, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "344 \n \n09. \nNakasongola District \n \nOpinion \nUnqualified \n\uf0b7 \nI noted a number of anomalies during review of the district \npension & salary payrolls such as; under payment of pension \nworth UGX. UGX.1,510,120; Underpayment of salary worth \nUGX.13million; Wrong computation of gratuity worth net \noverpayment of two (2) pensioners worth UGX.20,784,707; \npayment of salaries worth UGX. 23,149,880 to eighteen (18) \nstaffs that were no longer in service and irregular deduction of \nloan instalments worth UGX.307,637,65. \n \n\uf0b7 \nUnder remittance of salary deductions worth UGX.132,371,427 \n \n\uf0b7", "metadata": {"page": 355, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nI noted that the district made payroll deductions of UGX.16 \nmillion, but did not remit to UCLA/UBA. \n \n\uf0b7 \nI \nnoted \noutstanding \nUWEP \nand \nYLP \nadvances \nworth \nUGX.665,481,500 by year end \n \n\uf0b7 \nAdditionally, I observed that there was delayed access to payroll \nby eighteen (18) new employees and thirteen (13) pensioners \nand un-deducted PAYE from political leaders\u2019 gratuity resulting in \nunpaid tax of UGX.12,011,160 \n \n\uf0b7 \nThe district had outstanding pension and gratuity arrears worth \nUGX.234,272,456 at year end. \n \n\uf0b7 \nI noted a number of issues in the implementation of the", "metadata": {"page": 355, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "approved budget such as; un implemented works at a Seed \nSchool; under absorption of funds worth UGX.0.6 billion and \nunder performance of the releases from other government units \nworth 169 Mn; \n\uf0b7 \n \n10. \nNansana MC \n \nOpinion \nUnqualified \n\uf0b7 \nI noted a number of anomalies during review of the Municipal \npension & \nsalary payrolls such as; Over payment of \nsalaries/pension worth UGX. 2,494,859 and UGX.24,488,037 \nrespectively; Underpayment of pension worth UGX.11,791,871; \nand \nirregular \ndeduction \nof \nloan \ninstalments \nworth \nUGX.18,027,312. \n \n\uf0b7", "metadata": {"page": 355, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nUn recovered UWEP/YLP funds of UGX.899,208,480 \n \n\uf0b7 \nThe Municipal Council did not have an approved strategic plan \nthat is aligned to the NDP-III at the time of audit. \n \n\uf0b7 \nAdditionally, I observed that there was delayed access to payroll \nby three (3) new employees and nineteen (19) pensioners; un-\ndeducted PAYE from political leaders\u2019 gratuity resulting in unpaid \ntax of UGX. 3,122,640 \n \n\uf0b7 \nI noted a number of issues in the implementation of the \napproved budget such as; shoddy works on the road \nconstruction; under absorption of funds worth UGX.0.278 billion \nthat was swept back to consolidated fund account and under \nperformance of the releases from other government units worth", "metadata": {"page": 355, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "345 \n \nUGX.534,603,597; \n \n\uf0b7 \nFailure to prepare monthly wage, pension and gratuity \nperformance analysis \n \n\uf0b7 \nThe \nMunicipal \nCouncil \nreported \nreceivables \nbalance \nof \nUGX.1,780,766,221 \n \n\uf0b7 \nThe Municipal Council had outstanding payables of UGX. \n87,603,199 by close of the financial year \n \n\uf0b7 \nI noted that UGX.1,131,374,846 (103%) was spent on 2km \nreflecting over expenditure of UGX.51,408,546. The cost \nvariations in projects planned works affects implementation of \nother maintenance activities. \n11. \nWakiso District", "metadata": {"page": 356, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Wakiso District \n \nOpinion \nUnqualified \n\uf0b7 \nI noted a number of anomalies during review of the district \npension & salary payrolls such as Underpayment of pension \nworth UGX.2, 010,117,938; payment of salaries worth UGX.5, \n278,315 to five (5) staffs that was no longer in service; unpaid \nsalaries \nUGX.8, \n379,873 \nand \naccrued \npension \nworth \nUGX.265,144,965 \n \n\uf0b7 \nThe outstanding payables for pension and gratuity worth UGX.2, \n405,604,903 \n \n\uf0b7 \nAdditionally, I observed that there was delayed access to payroll \nby seventeen (17) pensioners; failure to utilize wage funds of", "metadata": {"page": 356, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "UGX.0.7 Bn; un-deducted PAYE from political leaders\u2019 gratuity \nresulting in unpaid tax of 14, 993,898 and payment eleven (11) \npensioners worth UGX.303, 639,396 off the IPPS \n \n\uf0b7 \nI noted a number of issues in the implementation of the \napproved budget such as; shoddy works at Nakitokolo HCIII; \ndelayed works at Kasoozo HCIII; incomplete works at Wakiso \nSeed \nSchool; \nunder \nabsorption \nof \nfunds \nworth \nUGX.1,108,628,816 that was swept back to consolidated fund \naccount; under performance of the donor & releases from other \ngovernment units worth UGX.6,616,905,830; \n \n12. \nKIRA MC \n \nOpinion", "metadata": {"page": 356, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Opinion \nUnqualified \n\uf0b7 \nI noted a number of anomalies during review of the Municipal \npension & salary payrolls such as; Failure to submit wage \nestimates to MoPs, Over payment of salary worth UGX. \n12,367,380; Underpayment of salary worth UGX. 1,513,296; \nWrong computation of gratuity worth net overpayment of \nUGX.23,863,854 and payment of salaries worth UGX 9,760,420 \nto nine (09) staffs that were no longer in service \n \n\uf0b7 \nI noted Over remittance of salary deductions worth UGX. \n36,961,624 \n \n\uf0b7 \nI noted outstanding receivables worth of UGX. 3,171,846,861 \n \n\uf0b7 \nAdditionally, I observed that there was delayed access to payroll", "metadata": {"page": 356, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "346 \n \nby three (3) new employees and sixteen (16) pensioners; un-\ndeducted PAYE from political leaders\u2019 gratuity resulting in unpaid \ntax of UGX. 3,015,540 and payment worth UGX. 435,546,906 off \nthe IPPS \n \n\uf0b7 \nfailure to prepare monthly wage, pension and gratuity \nperformance analysis \n \n\uf0b7 \nI noted a number of issues in the implementation of the \napproved budget such as; incomplete construction works; under \nabsorption of funds worth UGX.0.16Bn that was swept back to \nconsolidated fund account; under performance of the donor & \nreleases from other government units worth UGX.3,402,046,314 \nand failure to submit quarterly monitoring reports to OPM & \nMoFPED \n \n\uf0b7", "metadata": {"page": 357, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nI noted that the Municipal Council received off-budget financing \nworth UGX135,974,720 for Result Based Financing (RBF) from \nthe Ministry of Health \n \n\uf0b7 \nThe district mischarged expenditure worth UGX. 20,821,532 on \nwrong budget lines. \n13. \nMAKINDYE SABAGABO \nMC \n \nOpinion \nUnqualified \n\uf0b7 \nI noted a number of anomalies during review of the municipal \npension & salary payrolls such as, Over payment of salary worth \nUGX. 8,992,140; Wrong computation of gratuity worth net \nunderpayment of UGX. 9,709,876; payment of salaries worth \nUGX 20,892,893 to staffs that was no longer in service and", "metadata": {"page": 357, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "irregular deduction of loan instalments worth UGX. 29,407,510. \n \n\uf0b7 \nThe Municipal Council reported payables worth UGX.532,235,004 \nat end the financial year \n \n\uf0b7 \nThe \nMunicipal \nCouncil \nreported \nreceivables \nworth \nUGX.750,391,890 \n \n\uf0b7 \nThe Municipal Council did not have an approved strategic plan \nthat is aligned to the NDP-III at the time of audit. \n \n\uf0b7 \nAdditionally, I observed that there was delayed access to payroll \nby four (4) new employees and four (4) pensioners and un-\ndeducted PAYE from political leaders\u2019 gratuity resulting in unpaid \ntax of UGX.3,015,540 \n \n\uf0b7", "metadata": {"page": 357, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \n Un recovered UWEP/YLP funds worth UGX.459,332,075 \n \n\uf0b7 \nI noted issues in the implementation of the approved budget \nsuch as; incomplete works on Mutundwe-Kisugula-Bunamwaya \nroad; under absorption of funds worth UGX. 0.421 billion. and \nunder performance of the releases from other government units \nworth UGX.6,801,993,716 \n \n\uf0b7 \nThe district mischarged expenditure worth UGX. 304,575,692 on \nwrong budget lines.", "metadata": {"page": 357, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "347 \n \n \n\uf0b7 \nA total of 19.1km at an estimated cost of UGX.70, 200,000 was \nplanned to be undertaken. The audit revealed that 19.1 km were \nactually undertaken at a cost of UGX.152, 254,000 leading to an \nover expenditure of UGX. 82,054,000. \n \n\uf0b7 \nI noted unrecovered funds from groups worth UGX.459,332,075 \n \nMasaka Branch \n\uf0b7 \nSummary of Key Findings \n01. \nBukomansimbi DLG \n \nOpinion \nUnqualified \n\uf0b7 \nI noted a number of anomalies during review of the district \npension & salary payrolls such as; Failure to submit wage \nestimates \nto \nMoPs, \nUnderpayment", "metadata": {"page": 358, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Underpayment \nof \nsalary \nworth \nUGX.13,134,104; payment of salaries worth UGX.5,195,665 to \none (1) staff that was no longer in service; unpaid salary worth \nUGX.20,579,078; under payments of 5 pensioners worth \nUGX.1,133,789; under remittance of payroll deduction worth \nUGX.185,012,274; \nAmount \nworth \nUGX.10,081,159 \nwasn\u2019t \nremitted to UCLA/UBA and amount worth UGX.175,148,725 had \nnot been remitted to URA \n \n\uf0b7 \nAdditionally, I observed that there was delayed access to payroll \nby Sixteen (16) newly recruited/ transferred employees and Ten", "metadata": {"page": 358, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "(10) pensioners; un-deducted PAYE from political leaders\u2019 \ngratuity worth UGX.33,045,600, leading to an under deduction \nworth UGX.26,510,404 and payment of twenty (20) staffs worth \nUGX.4, 725,034 off the IPPS. \n \n\uf0b7 \nI noted that the entity had prepared a strategic plan but the \nNational Planning Authority had not yet approved it at the time of \naudit. \n \n\uf0b7 \nI noted a number of issues in the implementation of the \napproved budget such as; the shortfalls in local revenue \ncollections of UGX 9,848,129; Donor financing worth UGX. \n759,350,373; under absorption of funds worth UGX.340,000,000 \nthat was swept back to consolidated fund account; delayed \nsubmission of quarterly monitoring reports to OPM & MoFPED", "metadata": {"page": 358, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "and Shoddy works in construction of classroom blocks \n \n\uf0b7 \nThe district lacked land title for land on which Bukango Seed \nSecondary School is situated. \n \n02. \nKalangala DLG \n \nOpinion \nUnqualified \n\uf0b7 \nI noted a number of anomalies during review of the district \npayroll such as; an unabsorbed balance of UGX 1.08 billion; an \nOver payment of salaries worth UGX 1,265,254, Underpayment \nof salaries of UGX.37, 719,627; Payment of salaries worth UGX. \n1,480,155 to one (1) staff who had retired; under remittance of \nsalary deductions worth UGX. 73,649,208 from employees\u2019 \nsalaries; Deductions worth UGX. 100,753,524 relating to 57", "metadata": {"page": 358, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "employees without letters of under taking; unremitted deduction \nto UCLA/UBA worth UGX.2, 210, 654. \n \n\uf0b7 \nAdditionally, I observed that the district did not remit deductions \nworth UGX.51,366,809 to URA; un-deducted PAYE from political", "metadata": {"page": 358, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "348 \n \nleaders\u2019 gratuity worth UGX.51,416,102, leading to an under \ndeduction worth UGX UGX.11,323,785; Delays in accessing pay \nroll \nand \npension \npayroll; \npayment \nof \nsalaries \nworth \nUGX.14,222,733 to Nine (9) staffs who were off IPPS; \n \n\uf0b7 \nI noted that the entity had not prepared and approved its \nstrategic plan by NPA and thus could not confirm if the plan is \naligned to NDP 111 \n \n\uf0b7 \nI noted a number of issues in the implementation of the \napproved budget such as; Failure to quantify outputs; partial and \nnon-implementation of planned activities delayed submission of \nperformance reports; under performance of revenues worth", "metadata": {"page": 359, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "performance reports; under performance of revenues worth \nUGX.867,111,016 and \nunder absorption \nof \nfunds worth \nUGX.675,040,597 that was swept back to consolidated fund \naccount at the year end. \n \n\uf0b7 \nMischarged funds worth UGX.357,586,292 on inappropriate \nbudget codes \n03. \nKyotera DLG \n \nOpinion \nUnqualified \n\uf0b7 \nI noted a number of anomalies during review of Kyotera district \npayroll such as; Failure to submit wage estimates to MoPs; \nunabsorbed wage fund balance of UGX. 0.32 billion; Over \npayment of salaries worth UGX.29, 467,392; Unauthorized loan \ndeductions worth UGX.148 million from 100 employees with no", "metadata": {"page": 359, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "undertaking letters; un-deducted PAYE from political leaders\u2019 \ngratuity worth UGX 57,855,806, leading to an under deduction \nworth UGX.13, 730,838. \n \n\uf0b7 \nAdditionally, I observed that there were delays in accessing \nsalary and pension payroll; Failed to prepare monthly wage, \npension and gratuity performance analysis for submission to \nMoPS and Payment of salaries worth UGX.7, 166,620 to Three \n(3) staffs who were off the IPPS. \n \n\uf0b7 \nThe district mischarged UGX.4, 876,514 on inappropriate budget \ncodes other than those budget for \n \n\uf0b7 \nI noted that the district had prepared a draft strategic plan \npending approval by NPA at the time of audit; \n \n\uf0b7 \nI noted a number of issues in the implementation of the", "metadata": {"page": 359, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "approved budget such as; Failure to quantify outputs; partial and \nnon-implementation of planned activities delayed submission of \nperformance reports; delay commencement of work by \ncontractor under the UGIFT program; under performance of \nrevenues worth UGX.725,450,031 and under absorption of \nUGX.993, 780,260 \n \n\uf0b7 \nReceived off budget financing worth UGX.319,540,631 from \nMinistry of Health (MOH) \n \n\uf0b7 \nNot secured ownership of the land where the seed school and", "metadata": {"page": 359, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "349 \n \nhealth Center are being constructed \n \n04. \nLwengo DLG \n \nOpinion \nUnqualified \n\uf0b7 \nI noted a number of anomalies during review of the district \npayroll such as; Delay to submit wage estimates to MoPs; An \nunabsorbed wage funds worth UGX.1.5 billion; an under payment \nof salaries worth UGX 8,075,359; Accrued Pensions worth \nUGX.90,656,783 not yet paid; Over payment of gratuity worth \nUGX. 11,742,937 and under payment of gratuity amounting to \nUGX. 15,885,858; Payment of salaries worth UGX. 8,620,432 to \nEighteen (18) staffs who had retired. \n \n\uf0b7", "metadata": {"page": 360, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nAdditionally, I noted unauthorized loan deduction worth UGX.8 \nmillion to International Medical Link (IML); un-deducted PAYE \nfrom political leaders\u2019 gratuity worth UGX.87,948,356, leading to \nan under deduction worth UGX.12,070,409; Delays in accessing \npay roll and pension payroll. \n \n\uf0b7 \nI noted that the entity had prepared a strategic plan which had \nnot yet been approved by NPA in respect to alignment to the \nNDP-III; \n \n\uf0b7 \nI noted a number of issues in the implementation of the \napproved budget such as; Failure to quantify outputs; partial and \nnon-implementation of planned activities delayed submission of \nperformance reports; under performance of revenues worth UGX. \nUGX.541,868,161 and under absorption of UGX.1,952,031,565", "metadata": {"page": 360, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nReceived off budget financing worth UGX.223,549,580 from \nMinistry of Health without informing the PSST \n \n05. \nMasaka \nDLG \n \nOpinion \nUnqualified \n\uf0b7 \nI noted that Masaka District submitted wage estimates to MoPs \non 30th March 2020, which was a delay of 182 days; an \nunabsorbed balance of UGX 0.85 billion; under payment of UGX \nof salaries worth 58,950,820; under payment pension worth UGX \n198,728,097 and unpaid pension of UGX 53,041,554; The District \nwrongly \ncomputed \nthe \ngratuity \nbenefit \nof \n21 \npensioner/beneficiary leading to over payment of UGX 1,431,442", "metadata": {"page": 360, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "and under payment of UGX 37,726,688; UGX. 82,631,676 was \npaid to 38 staff who had retired, transferred, absconded or died; \nan over and under remittance amounting to UGX. 14,013,953 \nand UGX. 12,619,869 of payroll deduction. \n \n\uf0b7 \nAdditionally, the District made payroll loan deductions of UGX.1, \n064,546,679, but did not remit UGX.10, 874,315 to UCLA/UBA; \nunder deduction of PAYE worth UGX. 8,988,018 from payments \nto political leaders; noted that 30 newly recruited/ transferred \nemployees and 41 pensioners delayed to access payroll; I noted \nthat 24 employees were paid a total of UGX. 263,080,952 \nwithout signed pay change reports; 07 staffs and 19 pensioners \nwere paid a total of UGX.20, 688,721 and UGX.85, 258,552 \nrespectively off the IPPS.", "metadata": {"page": 360, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "350 \n \n\uf0b7 \nThe district mischarged funds worth UGX. 15,255,772 on account \ncodes other than those prescribed for either salary, pension or \ngratuity \n \n\uf0b7 \nI noted that the entity had had not prepared and approved the \nstrategic plan at the time of audit; \n \n\uf0b7 \nI noted a number of issues in the implementation of the \napproved budget such as; Failure to quantify outputs; partial and \nnon-implementation of planned activities delayed submission of \nperformance reports; under performance of revenues worth UGX. \n11,296,979,720 and under absorption of UGX. 1,258,107,623; \nIncomplete works at Bukakata seed Secondary School \n \n06. \nSembabule DLG \n \nOpinion \nUnqualified \n\uf0b7", "metadata": {"page": 361, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Unqualified \n\uf0b7 \nI noted a number of anomalies during review of the district \npension & salary payrolls such as; an unabsorbed balance of \nUGX.0.73billion; an under payment of salaries worth UGX.9, \n696,016; Delays in accessing pension payroll; Failure to prepare \nmonthly wage, pension and gratuity performance analysis; 72 \nstaffs and 14 pensioners were paid a total of UGX.76,444,546 off \nthe IPPS. \n \n\uf0b7 \nI noted that the management had prepared a strategic plan \nwhich had not yet been approved by NPA to confirm its \nalignment with NDP-III; \n \n\uf0b7 \nunderperformance 275,905,089; under absorption of funds worth \nUGX.1,229,179,117; Partial Implantation of One (1) output with a", "metadata": {"page": 361, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "total of two (2) activities worth UGX.0.89Bn; Late submission of \nperformance reports; \n \n\uf0b7 \nI noted underfunding from URF for road maintenance worth \nUGX.27,517,358 that affected implementation of planned \nactivities \n07. \nLyantonde DLG \n \nOpinion \nUnqualified \n\uf0b7 \nI noted a number of anomalies during review of the district \npension & salary payrolls such as; Failure to submit wage \nestimates \nto \nMoPs, \nUnderpayment \nof \npension \nworth \nUGX.27,094,530; Overpayment of Salary worth UGX.29,716,471; \nan unabsorbed balance of UGX.0.26 billion that was subsequently \nswept back to the consolidated fund account and wrong", "metadata": {"page": 361, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "computation of gratuity benefit for four (04) pensioner worth net \noverpayment of UGX.4,437,740 \n \n\uf0b7 \nFurther, \nthe \ndistrict \nmade \npayment \nof \nsalaries \nworth \nUGX.3,279,528 to four (4) staffs that who had either retired, \ntransferred, absconded or died; an over and over remittance of \npayroll deductions worth UGX.6,685,000 and UGX.8,713,886 \nrespectively; \nmade \nunauthorized \nloan \ndeductions \nworth \nUGX.736,802,204 from 400 employees that never had letters of \nundertaking \n \n\uf0b7 \nAdditionally, Tax deductions worth UGX.7,073,772 had not been", "metadata": {"page": 361, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "351 \n \nremitted to URA; un-deducted PAYE from political leaders\u2019 \ngratuity resulting in unpaid tax of A UGX.8,109,728; Twenty-\nSeven (27) employees recruited did not access the payroll and \ndelays in accessing payroll and pension payroll. \n \n\uf0b7 \nThe district mischarged funds worth UGX.5,870,000 on account \ncode other than those prescribed salary, pension and gratuity; \n \n\uf0b7 \nThe District paid Seventeen (17) employees worth UGX.22, \n846,471 without signed pay change reports; failed to prepare \nmonthly wage, pension and gratuity performance analysis and \nsalaries payment worth UGX.85, 678,850 was paid to Seven (7) \nstaffs off the IPPS. \n \n\uf0b7 \nI noted that the entity had prepared its strategic plan but it was", "metadata": {"page": 362, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "not yet approved by NPA \n \n\uf0b7 \nUnder performance worth; under absorption worth; Late \nsubmission of Reports; \n \n\uf0b7 \nI noted a number of issues in the implementation of the \napproved budget such as; Failure to quantify outputs; partial and \nnon-implementation of planned activities delayed submission of \nperformance reports; under performance of revenues worth UGX. \n68,650,450 and under absorption of UGX.773,177,804 \n \n08. \nKassanda DLG \n \nOpinion \nUnqualified \n\uf0b7 \nI noted a number of anomalies during review of the district \npension & salary payrolls such as; Failure to submit wage \nestimates to MoPs, an unabsorbed balance of UGX.0.20 billion; \nunpaid accrued pensions worth UGX.89,374,764;Payment of", "metadata": {"page": 362, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "salaries worth UGX.29,042,083 to Eighteen (18) staffs who had \neither retired, transferred, absconded or died; an over and under \nremittance \nof \n \ndeductions \nworth \nUGX.80,614,103 \nand \nUGX.11,056,051 \nrespectively; \nmade \nunauthorized \nloan \ndeductions worth UGX.684,121,646 from 271 employees that \nneither had letters of undertaking nor letters of consent. \n \n\uf0b7 \nAdditionally, I observed a deduction of worth UGX.31,937,764 \nfrom 26 employees who were not in approval and deduction \nreport and a deductions of UGX.63,539,341 from 51 employees \nwho were not in active deduction report but were in approval", "metadata": {"page": 362, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "report; 15 employees had irregular loan end dates; Delays in \naccessing payroll and pension payroll; Payment of Sixteen (16) \nstaffs and Six (06) pensioners worth UGX.205,954,862 off the \nIPPS; and payments worth UGX.47,984,473 off the payroll to 33 \nemployees. \n \n\uf0b7 \nI noted that the entity had not prepared and approved a \nstrategic plan that is aligned to the NDP-III at the time of audit; \n \n\uf0b7 \nI noted a number issues in the budget performance such as", "metadata": {"page": 362, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "352 \n \nUnderperformance of funds worth UGX.243,523,703; Under \nabsorption of funds worth UGX.744,143,791; Failure to quantify \noutputs; partial and non-implementation and late submission of \nperformance reports. \n09. \nMubende DLG \n \nOpinion \nUnqualified \n\uf0b7 \nI noted that the District delayed to submit wage estimates to \nMoPs; An under absorption worth UGX.1.36 Billion and was \nsubsequently swept back to the consolidated fund account; \nunpaid salaries worth UGX.9,974,064; Over payment of one (1) \npensioner worth UGX.2,420,407; Unpaid salaries & pension worth \nUGX.163,350,521; Under payments worth UGX.765,835 to", "metadata": {"page": 363, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Twenty (20) staffs using wrong salary scale; Payment of salaries \nworth UGX.17,448,575 to Fourteen (14) staffs who had either \nretired, transferred, absconded or died; \n \n\uf0b7 \nAdditionally, I observed an under remittance of salary deduction \nworth UGX.246,546,709; Made unauthorized loan deductions \nworth UGX.123,209,904 from 30 employees that neither had \nletters of undertaking nor evidence of consent; Delays in \naccessing payroll and pension payroll; Residual Arrear payments \nworth UGX.380,760,596 paid to 17 staffs who were not part of \nMOFPED approved schedule; Unpaid pension to Six (6) \npensioners worth UGX.118,064,322; Failed to prepare monthly \nwage, pension and gratuity performance analysis for submission", "metadata": {"page": 363, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "to MoPS; Payment of Five (5) staffs worth UGX.4,831,538 off the \nIPPS; \n \n\uf0b7 \nI noted that the district had prepared its strategic plan but had \nnot had its plan approved by NPA at the time of audit; \n \n\uf0b7 \nI noted a number issues in the budget performance such as \nUnderperformance of funds worth UGX.117,978,419; Under \nabsorption of funds worth UGX.1,625,514,838; Failure to quantify \noutputs; partial and non-implementation and late submission of \nperformance reports. \n10. \nGomba \n \nOpinion \nUnqualified \n\uf0b7 \nI noted that the District delayed to submit wage estimates to \nMoPS; an unabsorbed balance of UGX.0.8 billion; over payment", "metadata": {"page": 363, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "of UGX.649, 200 to Mujabi James; an under payment of UGX.1, \n764,651; Unpaid salaries worth UGX.1, 176,393; noted that the \nDistrict had an outstanding Accrual worth UGX.17, 271,309 at the \nend of the year; the District made unauthorized loan deductions \nworth UGX.7, 592,724 from 4 employees that neither had letters \nof undertaking nor existed in the reports. \n \n\uf0b7 \nAdditionally, I observed delays in accessing payroll and pension \npayroll; I noted that five (05) ineligible persons accessed the \npayroll using forged Education Service Commission (ESC) \nminutes; Twenty Seven (27) staffs were paid worth UGX.31, \n972,130 off the IPPS. \n \n\uf0b7 \nI noted that the entity had not had the strategic plan approved at \nthe time of audit \nthe time of audit \n \n\uf0b7 \nI noted a number of issues in the implementation of budget such", "metadata": {"page": 363, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "353 \n \nas; Underperformance worth UGX.113,179,395; under absorption \nof funds worth UGX.1,088,912,187 that was subsequently swept \nback to the consolidated fund account; Late submission of \nreports. \n \nHoima Branch \nSummary of Key Findings \n01 \nBuliisa DLG \n \nOpinion \nUnqualified \n\uf0b7 \nI noted a number of anomalies during review of the district \npension & salary payrolls such as; Failure to submit wage \nestimates to MoPs, Over payment of salary worth UGX.516,940 \nto one (1) employee; payment of salaries worth UGX.962,591 \nto two (2) staffs that was no longer in service; unauthorized \nloan deductions worth UGX.19,720,463 from 20 employees", "metadata": {"page": 364, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "and net under payment of payroll deductions worth \nUGX.218,852,589 \n \n\uf0b7 \nAdditionally, I observed that there was delayed access to \npayroll by twelve (12) new employees and three (3) \npensioners; failure to utilize wage funds of UGX.1.39Bn; un-\ndeducted PAYE from political leaders\u2019 gratuity resulting in \nunpaid tax of UGX.8,971,020 and payment of worth \nUGX.1,646,800 off the IPPS \n \n\uf0b7 \nI noted a number of issues in the implementation of the \napproved budget such as; Failure to quantify outputs that \naffected measurement of performance, partial or non-\nimplementation of planned activities, late submission of \nquarterly \nreports; \nunder \nabsorption \nof \nfunds \nworth", "metadata": {"page": 364, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "funds \nworth \nUGX.721,028,206 that was swept back to consolidated fund \naccount; under performance of the donor & releases from the \ngovernment worth UGX.1,359,130,302 \n \n\uf0b7 \nI noted that the district had prepared and submitted the \nStrategic plan to NPA but was still pending approval. \n \n\uf0b7 \nIn regards to Covid-19 funds, I noted that out of the total \nreceipts of UGX.81, 933,334, the district absorbed UGX.81, \n933,334, representing absorption level of 100%. Additionally, I \nnoted that the distribution of many of non-cash items delayed. \n \n02. \nHoima MC \n \nOpinion \nUnqualified \n\uf0b7 \nI noted a number of anomalies during review of the Municipal", "metadata": {"page": 364, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "pension & salary payrolls such as; Failure to submit wage \nestimates to MoPs, Over payment of salary worth UGX \nUGX.7,453,884 to (3) staffs; under payment of funds worth \nUGX.29,604,189 and unauthorized loan deductions worth \nUGX.37,990,205 from 35 employees \n \n\uf0b7 \nAdditionally, I observed that there was delayed access to \npayroll by seven (7) new employees and ten (10) pensioners; \nfailure to utilize wage funds of UGX.0.28Bn; un-deducted PAYE \nfrom political leaders\u2019 gratuity resulting in unpaid tax of \nUGX.12,771,000 and payment of two (2) staffs & seven(7) \npensioners a total of UGX.368,827,383 off the IPPS \n \n\uf0b7 \nI noted a number of issues in the implementation of the", "metadata": {"page": 364, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "354 \n \napproved budget such as; Failure to quantify outputs that \naffected measurement of performance, partial or non-\nimplementation of planned activities; Incomplete road works \nunder absorption of funds worth UGX.29,660,979,614 that was \nswept back to consolidated fund account; under performance \nof the donor & releases from the government worth \nUGX.2,515,468,499 \n \n\uf0b7 \nThe district mischarged expenditure worth UGX.45, 235,346 on \nwrong budget lines. \n \n\uf0b7 \nI noted that UGX.5,060,453 was paid as residual salary arrears \nto 5 employees who had not missed salaries in the previous \nfinancial year(s) \n \n\uf0b7 \nPayment of funds worth UGX.33,792,884 without authorization \nof the pay change reports", "metadata": {"page": 365, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nI noted that the entity\u2019s strategic plan was still in draft form \nand not approved to confirm that is aligned to the NDP-III at \nthe time of audit. \n \n\uf0b7 \nUGX.19,240,000 remained unaccounted for at the close of the \nfinancial year \n \n03. \nHoima DLG \n \nOpinion \nUnqualified \n \n\uf0b7 \nI noted a number of anomalies during review of the district \npension & salary payrolls such as; Failure to submit wage \nestimates to MoPs, over payment of salary worth UGX. \n1,380,792 to staffs; under payment of funds worth UGX.; \npayment of salaries worth UGX.27,668,323 were paid to \ntwenty (20) staffs and eleven (11) pensioners were paid a", "metadata": {"page": 365, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "total of UGX.251,898,925 off the IPPS that was no longer in \nservice unauthorized loan deductions worth UGX.721,600,940 \nfrom 432 employees \n \n\uf0b7 \nAdditionally, I observed that there was delayed access to \npayroll by ten (10) new employees and eleven (11) \npensioners; failure to utilize wage funds of UGX 16.16Bn; un-\ndeducted PAYE from political leaders\u2019 gratuity resulting in \nunpaid tax of UGX.7,763,400 \n \n\uf0b7 \nThe district mischarged expenditure worth UGX.180, 754,659 \non wrong budget lines. \n \n\uf0b7 \n I noted that the verification forms and copies of the \nverification cards for 126 employees and 43 pensioners were \nnot on the respective personal files \n \n\uf0b7", "metadata": {"page": 365, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nI noted a number of issues in the implementation of the \napproved budget such as; partial implementation of planned \nactivities; partially implemented ; late submission of quarterly \nreports; under absorption of funds worth UGX.1.9Bn that was", "metadata": {"page": 365, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "355 \n \nswept back to consolidated fund account; \n \n\uf0b7 \nDelayed submission of regular reports \n \n\uf0b7 \nI noted that the Hoima district did not have an approved \nstrategic plan that is aligned to NDP-III and therefore lacks a \ncertificate of compliance issued by National Planning Authority. \n \n\uf0b7 \nRegarding Covid-19 funds, Out of the total receipts of \nUGX.111, 450,000, the District absorbed UGX.111, 450,000 \nrepresenting an absorption level of 100%. \n \n04. \nHoima RRH \n \nOpinion \nUnqualified \n\uf0b7 \nI noted a number of anomalies during review of the hospital \npension & salary payrolls such as; Failure to submit wage \nestimates by the hospital to MoPs, over payment of pension", "metadata": {"page": 366, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "worth UGX.3, 138,332. ; Underpayment of worth 2,282,632; The \ndeductions were from nine (9) employees\u2019 salaries worth \nUGX18,438,987 \n \n\uf0b7 \nAdditionally, I observed that there was delayed access to payroll \nby twenty (20) new employees and four (4) pensioners;;un paid \npensioners worth UGX 13372393.un-deducted PAYE from political \nleaders\u2019 gratuity resulting in unpaid tax of UGX.13372393 Failure \nto quantify outputs, \n \n\uf0b7 \nI noted a number of issues in the implementation of the \napproved budget such as; failure to quantify outputs, partial \nimplementation or non-implementation of planned activities \nunder absorption of funds worth UGX.1.78Bn that was swept \nback to consolidated fund account; under performance of the", "metadata": {"page": 366, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "donor & releases from other government units worth \nUGX.0.03Bn; delayed submission of quarterly monitoring reports \nto OPM & MoFPED \n \n\uf0b7 \nThe hospital mischarged expenditure worth UGX.38 million on \nwrong budget lines. \n \n\uf0b7 \nI noted that the entity\u2019s strategic plan was still in draft form and \nnot approved to confirm that is aligned to the NDP-III at the time \nof audit. \n \n\uf0b7 \nFailure to quantify outputs, partial implementation or non-\nimplementation of planned activities \n05. \nKagadi DLG \n \nOpinion \nUnqualified \n\uf0b7 \nI noted a number of anomalies during review of the district \npension & salary payrolls such as; Wrong computation of gratuity \nworth net overpayment of UGX. 1,8273,030; payment of salaries", "metadata": {"page": 366, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "to three(3) staffs that was no longer in service and under \nremittance worth UGX. 35,519,020; and payment of two (2) \nstaffs worth UGX. 3450720 off the IPPS \n \n\uf0b7 \nI noted a number of issues in the implementation of the \napproved budget such as; unabsorbed balance worth UGX 1.5Bn \npartial implementation of funds worth UGX 0.155Bn under", "metadata": {"page": 366, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "356 \n \nabsorption of funds worth UGX. 12,314,490,181 that was swept \nback to consolidated fund account; under performance of the \ndonor & releases from other government units 3,329,413,255; \ndelayed submission of quarterly monitoring reports to OPM & \nMoFPED \n \n\uf0b7 \nI noted that the entity\u2019s strategic plan was still in draft form and \nnot approved to confirm that is aligned to the NDP-III at the time \nof audit. \n \n\uf0b7 \nI noted a delay of 9 days for the month of July in the remittance \nof PAYE deductions to URA \n06. \nKakumiro DLG \n \nOpinion \nUnqualified \n\uf0b7 \nI noted a number of anomalies during review of the district \npension & salary payrolls such as; Failure to submit wage", "metadata": {"page": 367, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "estimates to MoPs; Underpayment of salaries worth UGX. \n10,643,039 to employees underpayment pension worth UGX.4, \n511,350; under remittance worth UGX.146, 308,447 and \npayment of three (3) staffs worth UGX.8,763,215 off the IPPS \n \n\uf0b7 \nI noted a number of issues in the implementation of the \napproved budget such as; unspent balance worth UGX \n2275637090 \n; \nunder \nabsorption \nof \nfunds \nworth \nUGX.9,191,378,616 that was swept back to consolidated fund \naccount; partial or non-implementation of planned activities \nworth 0.37Bn under performance of the donor & releases from \nother government units worth UGX.0.4Bn; delayed submission of", "metadata": {"page": 367, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "quarterly monitoring reports to OPM & MoFPED unabsorbed \nfunds \nworth \nUGX.138,823,634; \ndelayed \ncompletion \nof \nconstruction works at St Matia Mulumba seed secondary school. \n \n\uf0b7 \nI noted that the entity\u2019s strategic plan was still in draft form and \nnot approved to confirm that is aligned to the NDP-III at the time \nof audit. \n \n\uf0b7 \nI noted that the District did not remit PAYE deductions for the \nmonth of May worth UGX.138, 823,634 to URA. \n \n\uf0b7 \nI noted that the district had ongoing service delivery \n \n07 \nKibaale DLG \n \nOpinion \nUnqualified \n\uf0b7 \nI noted a number of anomalies during review of the district", "metadata": {"page": 367, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "pension & salary payrolls such as; Failure to submit wage \nestimates to MoPs, Over payment of pension worth UGX.288, \n866,531; Underpayment of pension worth UGX.4,082,68 \nunderpayment of pensioners UGX.387,086,804; payment of \nsalaries worth UGX.20,837,768 to fifteen (15) staffs that was no \nlonger in service \n \n\uf0b7 \nI noted a number of issues in the implementation of the \napproved \nbudget \nsuch \nas \nunspent \nbalance \nworth \nUGX.1,861,400,617; \nunderperformance \nof \nbudgets \nworth \nUGX.14,350,250,339; \n \ndelayed \nsubmission", "metadata": {"page": 367, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "delayed \nsubmission \nof \nquarterly \nmonitoring reports to OPM & MoFPED; delayed completion of \nconstruction works at Nyamarwa Seed School secondary school;", "metadata": {"page": 367, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "357 \n \nunder deduction of PAYE to URA worth 20,837,768 \n \n\uf0b7 \nI noted that the entity\u2019s strategic plan was still in draft form and \nnot approved to confirm that is aligned to the NDP-III at the time \nof audit. \n \n\uf0b7 \nI noted a number of issues in the implementation of the \napproved \nbudget \nsuch \nas \nunspent \nbalance \nworthUGX.1;861;400,617;unabsorbed \nfunds \nworth \nUG.1.35 \nbillion; delayed completion of construction works at Nyamarwa \nSeed School secondary school; under deduction of PAYE to URA \nworth 20,837,768 \n \n\uf0b7", "metadata": {"page": 368, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nI noted that funds amounting to UGX.24, 910,982 related to \ngratuity expense but were charged on pension arrears code. \n \n\uf0b7 \nI reviewed the effectiveness and reliability of the IPPS/NID \nstaff/pensioner/beneficiaries\u2019 verification interface and noted in-\nadequate sensitization and training in the use and navigation of \nthe system, System was not reliable and effective and \noperational challenges were encountered; such as delayed \nupdate of changes in employee details by NIRA, NID interface \ndoes not show facial images for some employees and network \nchallenges. \n08 \nKikuube DLG \n \nOpinion \nUnqualified \n\uf0b7 \nI noted a number of anomalies during review of the district \npension & salary payrolls such as; Failure to submit wage \nestimates \nto \nMoPs,", "metadata": {"page": 368, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "to \nMoPs, \nOver \npayment \nof \nsalaries \nworth \nUGX.4,919,860; Salaries worth UGX. 5,747,552 to six (6) staffs \nthat was no longer in service and payment of twenty two (22) \nstaffs worth UGX.198,611,180 off the IPPS \n \n\uf0b7 \nI noted a number of issues in the implementation of the \napproved budget such as; under absorption of funds; under \nperformance of the donor & releases from other government \nunits worth UGX.9.19Bn; partial implementation of funds worth \nUGX. o.95 delayed submission of quarterly monitoring reports to \nOPM & MoFPED \n \n\uf0b7 \nI noted that whereas UGX.756,788,804 was deducted from", "metadata": {"page": 368, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "employees\u2019 salaries to be remitted to different beneficiaries, \nUGX.758,906,480 was remitted leading to an over and under \nremittance of UGX.2,117,676 \n \n\uf0b7 \nI noted that the entity\u2019s strategic plan was still in draft form and \nnot approved to confirm that is aligned to the NDP-III at the time \nof audit. \n\uf0b7 \nPayments to ten (10) employees worth 1457195 without signed a \npay change report \n \n\uf0b7 \nI noted that UGX.68, 527,000 remained unaccounted for at the \nclose of the financial year. \n \n\uf0b7 \nI noted delayed completion of Nyairongo Seed Secondary School", "metadata": {"page": 368, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "358 \n \n \n\uf0b7 \nUnder Development Response to Displacement Impacts Project \n(DRDIP), I noted that Procurements worth UGX.2,524,177,097 \nwere undertaken using community procurement method which \nwere not reported in quarterly reports submitted to the Authority. \nBesides, they were not included in the approved integrated \nannual work plan of the District. \n \n09 \nKyankwanzi \n \nOpinion \nUnqualified \n\uf0b7 \nI noted a number of anomalies during review of the district \npension & salary payrolls such as; Underpayment of pension \nworth UGX.2,819,483 and payment of eight (8) staffs worth \nUGX.8,810,706 off the IPPS \n \n\uf0b7 \nI noted a number of issues in the implementation of the", "metadata": {"page": 369, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "approved budget such as; failure to quantify outputs, partial and \nnon-implementation of planned activities; unabsorbed wage fund \nbalance worth UGX.0.84Bn; under deduction of PAYE worth \nUGX.8, 593, 471; unabsorbed balance worth UGX. 69,083,003; \nunder absorption of funds worth UGX.198,251,670 that was \nswept back to consolidated fund account; under performance \nunder performance worth UGX 1.11Bn. \n \n\uf0b7 \nThe district mischarged expenditure worth UGX.275, 847,736 on \nwrong budget lines. \n \n\uf0b7 \nThe district mischarged expenditure worth UGX.50, 174,102 on \nwrong budget lines. \n \n\uf0b7 \nI noted outstanding pensioners arrears worth UGX.40,454,541 \n \n\uf0b7", "metadata": {"page": 369, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nI noted that the entity did not prepare monthly wage, pension \nand gratuity performance analysis and did not submit quarterly \nreturns on payroll to MoPS. \n \n\uf0b7 \nI noted that the entity had prepared and approved the strategic \nplan but it was not certified by National Planning Authority. \n10. \nMasindi DLG \n \nOpinion \nUnqualified \n\uf0b7 \nI noted a number of anomalies during review of the district \npension & salary payrolls such as; Failure to submit wage \nestimates to MoPs, Over and under payment of salaries; \nOverpayment of pension worth UG.37, 427,367 and under \npayment of pension worth UGX.870,105,650; payment of \nsalaries to nine (9) staffs but were no longer in service. \n \n\uf0b7 \nI noted a number of issues in the implementation of the", "metadata": {"page": 369, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "approved \nbudget \nsuch \nas; \nunabsorbed \nbalance \nworth \n1,240,110,296; under performance of the donor & releases from \nother government units worth UGX.164Bn that was swept back \nto consolidated fund account; partial and non-implementation of \nplanned activities; delayed submission of quarterly monitoring \nreports to OPM & MoFPED and payment of worth 208,659,885 \neleven staff(11) off the IPPS \n \n\uf0b7 \nI noted that whereas UGX.3,312,092,285 was deducted from", "metadata": {"page": 369, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "359 \n \nemployees\u2019 salaries to be remitted to different beneficiaries, only \nUGX.3,309,501,072 \nwas \nremitted \nleading \nto \na \nvariance \namounting to UGX.19,992,521. \n \n\uf0b7 \nI noted delays in the remittance of PAYE deductions to URA for 2 \nmonths the months \n \n\uf0b7 \nI reviewed the effectiveness and reliability of the IPPS/NID \nstaff/pensioner/beneficiaries\u2019 verification interface and noted in-\nadequate sensitization and training in the use and navigation of \nthe system, system was not reliable and effective and operational \nchallenges were encountered; such as delays to capture changes \non NIRA by IPPS. \n \n\uf0b7", "metadata": {"page": 370, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nI noted that the District prepared a work plan to guide the \nutilization of funds that were received. \n \n11. \nMasindi MC \n \nOpinion \nQualified \n \n\uf0b7 \nI noted a number of anomalies during review of the municipal \npension & salary payrolls such as; Failure to submit wage \nestimates to MoPs; over and underpayment of salaries worth \nUGX.33,863,477 to seventeen (17) staffs that was no longer in \nservice and irregular deduction of loan instalments worth UGX.9, \n061,174; under deduction of PAYE amounting to 11,411,400 and \n19 staff and 13 pensioners were paid a total of UGX.315,332,447 \noff IPPS \n \n\uf0b7 \nI noted a number of issues in the implementation of the", "metadata": {"page": 370, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "approved budget such as; under absorption of funds worth \nUGX.1, 362,275,792 that was swept back to consolidated fund \naccount; partial or non-implementation of planned activities; \nunder performance of the donor & releases from other \ngovernment units worth UGX. 282,855,823; delayed submission \nof quarterly monitoring reports to OPM & MoFPED; \n \n\uf0b7 \nI noted that the entity had prepared and approved the strategic \nplan but it was not certified by National Planning Authority. \n \n\uf0b7 \nI noted that whereas UGX.1,427,190,853 was deducted from \nemployees\u2019 salaries to be remitted to different beneficiaries, \nUGX.1,149,993,408 was remitted leading to an under remittance \namounting to UGX.280,237,640 and over remittance of \nUGX.3,040,195", "metadata": {"page": 370, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nI noted that funds amounting to UGX.195,443,591 in relation to \npension and gratuity were charged on wrong account codes \n \n\uf0b7 \nI noted that 73 employees were paid a total of UGX.UGX.61, \n299,481 without signed pay change reports. \n \n12. \nKiboga DLG \n \nOpinion \n\uf0b7 \nI noted a number of anomalies during review of the district \npension & salary payrolls such as; Failure to submit wage \nestimates to MoPs, over payment of salaries worth UGX3,", "metadata": {"page": 370, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "360 \n \nUnqualified \n632,888; Underpayment of salaries worth UGX.6,345,609; \noverpayment of pension UGX.1, 338,228 and under payment of \npension of UGX.3, 404,504; salaries worth UGX. 3,051,636 to \ntwo (2) staffs that was no longer in service \n \n\uf0b7 \nI further noted under deduction of PAYE of UGX.5,724,180 to \nURA and two pensioners were paid a total of UGX.69,008,452 off \nthe IPPS \n \n\uf0b7 \nI noted a number of issues in the implementation of the \napproved \nbudget \nsuch \nas; \nunabsorbed \nwage \nfund \nof", "metadata": {"page": 371, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "fund \nof \nUGX.0.41Bn; under performance of the donor & releases from \nother government units worth UGX.1,037,635,628; failure to \nquantify outputs, partial and non-implementation of planned \nactivities; under absorption of government grants and Non \nsubmission of quarterly monitoring reports to OPM & MoFPED \n \n\uf0b7 \nI noted that the entity had prepared and approved the strategic \nplan but it was not certified by National Planning Authority. \n \n\uf0b7 \nI noted that funds amounting to UGX.40, 000,000 in relation to \nCOVID funds returned by the area Members of Parliament had \nproperly been accounted for. \n \n\uf0b7 \nI noted that different departments at Kiboga district Hospital \nlacked the required personal protective gear to aid staff execute \ntheir duties during the pandemic \n13. \nKiryandongo DLG", "metadata": {"page": 371, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Kiryandongo DLG \n \nOpinion \nUnqualified \n\uf0b7 \nI noted a number of anomalies during review of the district \npension & salary payrolls such as; Failure to submit wage \nestimates to MoPs, Over payment of pension salaries worth \nUGX.1,935,272; overpayment of pension UGX.1,423,052 and \nunder payments of pension UGX.3,591,459; payment of salaries \nworth UGX. 7,153,511 three (3) staffs that was no longer in \nservice and irregular deduction of loan worth UGX.45, 559,753. \n \n\uf0b7 \nI noted a number of issues in the implementation of the \napproved budget such as; un absorbed balance wage funds \nworth UGX 0.28Bn; un quantified outputs; under absorption of", "metadata": {"page": 371, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "funds worth UGX.2,939,664,455 that was swept back to \nconsolidated fund account; under performance of the donor & \nreleases \nfrom \nother \ngovernment \nunits \n \nworth \nUGX.4,624,951,481; staff payment worth 4,070,605 off the IPPS \n;partial and non-implementation of planned activities delayed \nsubmission of quarterly monitoring reports to OPM & MoFPED \n \n\uf0b7 \nI noted that the entity had prepared and approved the strategic \nplan but it was not certified by National Planning Authority. \n \n\uf0b7 \nDeduction Management System, operated by PCA-Payroll \nConsults Africa. \n \n\uf0b7 \nI noted that 23 employees were paid a total of UGX.46,112,214 \nwithout signed pay change reports", "metadata": {"page": 371, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "361 \n \n \n\uf0b7 \nI noted lack of evidence of formal appointment for the contract \ncommittee members of the district \n \nGulu Branch \nSummary of Key Findings \n01 \nAgago DLG \n \nOpinion \nUnqualified \n\uf0b7 \nI noted a number of anomalies during review of the district \npension & salary payrolls such as; Failure to submit wage \nestimates to MoPs, over payment of salaries worth UGX. \n25,241,289; Underpayment of salaries worth UGX. 164,307,857; \nUnderpayment of pension worth UGX 93,335,963; payment of \nsalaries worth UGX. 28,901,916 to seventeen(17) staffs that \nwas no longer in service \n \n\uf0b7 \nAdditionally, I observed that there was delayed access to payroll", "metadata": {"page": 372, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "by five (05) new employees and sixteen (16) pensioners; failure \nto utilize wage funds of UGX.0.3Bn; un-deducted PAYE from \npolitical leaders\u2019 gratuity resulting in unpaid tax of UGX. \n13,352,540 and payment of twenty two (22) staffs worth of UGX \n642,221,799 off the IPPS \n \n\uf0b7 \nI noted a number of issues in the implementation of the \napproved budget such as; shoddy works in construction of \nclassrooms; incomplete works; under absorption of funds worth \nUGX. 484,346,069 that was swept back to consolidated fund \naccount; under performance of the donor & releases from other \ngovernment units worth UGX.1.994Bn. \n \n\uf0b7 \nI noted that UGX.13.7 million was paid as residual salary arrears \nto eleven (11) employees who had not missed salaries in the", "metadata": {"page": 372, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "previous financial year(s). \n \n\uf0b7 \nI noted that the verification forms and copies of the verification \ncards for 04 employees and 16 pensioners/beneficiaries were not \non the respective personal files \n \n\uf0b7 \nThe district had outstanding unrecovered receivables of UGX. \n1,376,134,925 at year end. \n \n\uf0b7 \nI noted that the entity had not prepared a strategic plan at the \ntime of audit. \n \n\uf0b7 \nI noted that Agago District received off-budget financing to a \ntune of UGX. 90.5 million. \n \n\uf0b7 \nI noted that funds to the tune of UGX .237,168,404 were \nirregularly diverted from the activities \n02 \nAlebtong DLG \n \nOpinion \nUnqualified \n\uf0b7", "metadata": {"page": 372, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Unqualified \n\uf0b7 \nI noted a number of anomalies during review of the district \npension & salary payrolls such as; Failure to submit wage \nestimates \nto \nMoPs, \nOver \npayment \nof \nsalaries \nworth \nUGX.20,617,118; \nUnderpayment \nof \nsalaries \nworth \nUGX.21,081,264, payment of salaries worth UGX. 26,612,830 to \ntwenty(20) staffs that was no longer in service", "metadata": {"page": 372, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "362 \n \n\uf0b7 \nAdditionally, I observed that there was delayed access to payroll \nby thirty three (33) new employees and twenty three(23) \npensioners; failure to utilize wage funds of UGX.0.8Bn; un-\ndeducted PAYE from political leaders\u2019 gratuity resulting in unpaid \ntax of UGX. 9,060,528 \n \n\uf0b7 \nI noted a number of issues in the implementation of the \napproved budget such as;; \nPartial implementation, late submission of quarterly reports; \nUnder absorption of UGX.1,493,165,616 that was swept back to \nconsolidated fund account; under performance of the donor & \nreleases from other government units worth UGX.1.994Bn \n \n\uf0b7 \nThe district mischarged UGX. 198, 594,102 charged on account \ncodes other than those prescribed for either salary, pension or", "metadata": {"page": 373, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "gratuity. \n \n\uf0b7 \nI noted that the district paid unverified residual arrears worth \nUGX. 119,498,458 to 12 pensioners \n\uf0b7 \nI noted that the District had outstanding receivables amounting \nto UGX.2,175,996,458 arising from Contractor\u2019s Prepayment YLP \n& UWEP \n \n\uf0b7 \nI noted that the district had outstanding payables of \nUGX.1,732,017,300 \n(Deposits \nreceived \nUGX.1,689,530,652, \nSundry creditors of UGX.25,650,000 and Pension liabilities \nUGX.16,836,648) amounted to UGX. 3,464,034,600. \n \n\uf0b7 \nI noted that the entity had prepared a strategic plan but the", "metadata": {"page": 373, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "National Planning Authority had not yet approved it at the time of \naudit. \n \n\uf0b7 \nI noted that UGX.580, 701,955 was charged on items which did \nnot reflect the nature of the expenditure. \n \n\uf0b7 \nI noted during the review of expenditure that the district received \nUGX.183,961,496 to be transferred to schools for printing \nmaterials. These funds were never transferred to the schools. \n \n\uf0b7 \nOver/ under remittance of pays amounted to UGX. 6,239,435 and \nUGX. 180,339,880 respectively \n03 \nAmuru DLG \n \nOpinion \nUnqualified \n \n\uf0b7 \nI noted a number of anomalies during review of the district \npension & salary payrolls such as; Failure to submit wage", "metadata": {"page": 373, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "estimates to MoPs, Over payment of salaries worth UGX \n9,787,296, Underpayment of salaries and pensioners worth UGX \n122,296,566 and UGX 157,253,083 respectively ; payment of \nsalaries worth UGX. 129,399,583 to twenty two (22) staffs that \nwas no longer in service. Under remittance of employees\u2019 salaries \ndeductions worth UGX. 11,492,067. \n \n \n\uf0b7 \nAdditionally, I observed that there was delayed access to payroll \nby sixty six (66) new employees and thirteen (13) pensioners;", "metadata": {"page": 373, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "363 \n \nfailure to utilize wage funds of UGX.1,094,631,066; un-deducted \nPAYE from political leaders\u2019 gratuity resulting in unpaid tax of \nUGX. 2,140,892 and payment of two (02) pensioners worth UGX. \n45,794,020 off the IPPS. \n \n\uf0b7 \nI noted a number of issues in the implementation of the \napproved budget such as; partial and non-implementation of \noutputs and activities; non-submission of quarterly wage returns \nto MoPS; incomplete works such as; Amuru Seed School, Otwee \nHC III, Giragira-Guruguru and Gotgweno-Maroawobi road and \nculvert installation under Periodic maintenance of Lakang-\nKidimon-Atoro \nroad; \nunder \nabsorption \nof \nfunds", "metadata": {"page": 374, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "of \nfunds \nworth \nUGX.1,854,436,151 that was swept back to consolidated fund \naccount; under performance of the donor & releases from other \ngovernment units worth UGX. 13,266,132,540; \n \n\uf0b7 \nThe district mischarged expenditure worth UGX. 122,058,859 on \nwrong budget lines. \n \n\uf0b7 \nI noted that UGX. 75,499,557 was paid as residual arrears to 8 \npensioners who had not been verified (and thus not part of \nschedule) by MoFPED \n \n\uf0b7 \nI noted that the entity had not prepared and approved a \nstrategic plan that is aligned to the NDP-III at the time of audit \n \n\uf0b7 \nThe district has payables worth UGX. 1,560,778,573 and", "metadata": {"page": 374, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "receivables worth UGX. 1682,711,064 \n \n04 \nAPAC DLG \n \nQualified Opinion \n\uf0b7 \nI noted a number of anomalies during review of the district \npension & salary payrolls such as; Failure to submit wage \nestimates to MoPs, Over payment of salaries worth UGX \n170,469,321 and over payment of pension worth UGX. \n764,207,203; Underpayment of salaries worth UGX. 43,539,065; \nWrong computation of gratuity worth net overpayment of UGX. \n7650,338, 704; payment of salaries worth UGX. 2,257,209 to \ntwo (2) staffs who were no longer in service; unpaid salaries \nworth UGX. 29,321,020 \n \n\uf0b7", "metadata": {"page": 374, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nI noted over and/or under remittance of salary deductions worth \nUGX.906, 079,942 and UGX.10, 641,906 respectively. \n \n\uf0b7 \nAdditionally, I observed that there was delayed access to payroll \nby eleven (11) new employees and one (1) pensioners; failure to \nutilize wage funds of UGX. 364,298,971; un-deducted PAYE from \npolitical leaders\u2019 gratuity resulting in unpaid tax of UGX. \n7,747,080. and payment of staff off the IPPS \n \n\uf0b7 \nI noted a number of issues in the implementation of the \napproved budget such as; partial implantation of out puts; \nincomplete works ; under absorption of funds worth UGX. 1.7 Bn \nthat was swept back to consolidated fund account; under \nperformance of the donor & releases from other government", "metadata": {"page": 374, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "364 \n \nunits worth UGX.622,073,000; non submission of quarterly \nmonitoring reports to OPM & MoFPED \n \n\uf0b7 \nThe district mischarged expenditure worth UGX.275, 847,736 on \nwrong budget lines. \n \n\uf0b7 \nI noted that Apac DLG had revenue arrears worth UGX. \n715,864,939 by year end \n \n\uf0b7 \nOutstanding unpaid pension arrears worth UGX. 702,052,938 by \nyear end \n \n\uf0b7 \nI noted that no funds were paid as residual arrears to pensioners \nand staff that had not been verified and were not part of \nschedule provided by MoFPED for payment. \n \n\uf0b7 \nThe district did not have an approved strategic plan that is", "metadata": {"page": 375, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "aligned to the NDP-III at the time of audit. \n05 \nGulu District \n \nOpinion \nUnqualified \n \n\uf0b7 \nI noted a number of anomalies during review of the district \npension & salary payrolls such as; Failure to submit wage \nestimates to MoPs; Underpayment of pension worth UGX \n299,950,406; Wrong computation of gratuity worth net \noverpayment of UGX. 1,249,233 and under remittance of salary \ndeductions worth UGX. 8,451,617. \n \n\uf0b7 \nAdditionally, I observed that there was delayed access to payroll \nby two (02) new employees and five (05) pensioners; failure to \nutilize wage funds of UGX 4.97 billion; un-deducted PAYE from \npolitical leaders\u2019 gratuity resulting in unpaid tax of UGX.", "metadata": {"page": 375, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "11,003,344.and payment of sixteen (16) staffs and five (05) \npensioners worth UGX 114,877,542 off the IPPS \n \n\uf0b7 \nI noted a number of issues in the implementation of the \napproved \nbudget \nsuch \nas;; \nincomplete \nworks; \npartial \nimplantation of outputs; under absorption of funds worth UGX \n4,900,216,339 that was swept back to consolidated fund \naccount; under performance of the donor & releases from other \ngovernment \nunits \n \nworth \nUGX.4,034,373,129; \ndelayed \nsubmission of quarterly monitoring reports to OPM & MoFPED \n \n\uf0b7 \nThe district did not have an approved strategic plan that is \naligned to the NDP-III at the time of audit", "metadata": {"page": 375, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nI noted that the district has outstanding receivables worth UGX. \n2,063,196,780 by the year end \n \n06 \nGulu RRH \n \nOpinion \nUnqualified \n\uf0b7 \nI noted a number of anomalies during review of the \nHospitalpension & salary payrolls such as; Failure to submit wage \nestimates to MoPs; Underpayment of salaries worth UGX. UGX \n8,236,293. Under remittance of salaries worth UGX.197, 476,295.", "metadata": {"page": 375, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "365 \n \n\uf0b7 \nAdditionally, I observed that there was delayed access to payroll \nby thirty one (31) new employees and seven (7) pensioners; \nfailure to utilize wage funds of UGX. 1.87 billion.; un-deducted \nPAYE from political leaders\u2019 gratuity resulting in unpaid tax of \nUGX.10,746,540 and payment of nine (9) staffs and ten (10) \npensioners worth UGX. 461,890,255 off the IPPS \n \n\uf0b7 \nI noted a number of issues in the implementation of the \napproved budget such as; shoddy works in construction of \nclassrooms; incomplete works, I noted there was noted delayed \ncompletion of the construction of 54 staff houses; partial \nimplementation of actives; under absorption of funds worth UGX. \n1,939,617,659 that was swept back to consolidated fund \naccount", "metadata": {"page": 376, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "account \n \n\uf0b7 \nThe district mischarged expenditure worth UGX. 34,589,597 on \nwrong budget lines. \n \n\uf0b7 \nI noted that 24 employees were paid worth UGX. 118,822,759 \nwithout signed any way. \n \n\uf0b7 \nThe district did not have an approved strategic plan that is \naligned to the NDP-III at the time of audit \n \n\uf0b7 \nI reviewed the approved Local revenue estimates for the financial \nyear 2020/2021 and noted that the Hospital did not budget for \nNTR during the year but collected UGX. 206,100,000. \n \n\uf0b7 \nI noted that the hospital had an off budget financing worth UGX. \n1,092,948,429 during the financial year. \n \n07 \nKole DLG \n \nOpinion \nQualified", "metadata": {"page": 376, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Opinion \nQualified \n\uf0b7 \nI noted a number of anomalies during review of the district \npension & salary payrolls such as; Failure to submit wage \nestimates to MoPs; Over payment of pension worth UGX.288, \n866,531; Underpayment of pension worth UGX.271, 215,401; \nWrong computation of gratuity worth net overpayment of UGX. \n54,578,592; payment of salaries two (2) staffs who were no \nlonger in service and irregular deduction of loan instalments \nworth UGX.9, 061,174. \n \n\uf0b7 \nAdditionally, I observed that there was delayed access to payroll \nby twenty three (23) new employees and fourteen (14) \npensioners; failure to utilize wage funds of UGX. 0.4 Billion; un-\ndeducted PAYE from political leaders\u2019 gratuity resulting in unpaid", "metadata": {"page": 376, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "tax of UGX. 6,473,220 and payment of twenty two (22) staffs \nworth UGX.35,678,772 off the IPPS \n \n\uf0b7 \nI noted a number of issues in the implementation of the \napproved budget such as; Failure to quantify out puts; partial \nand non-implementation of planned activities, inaccurate \nreporting, and delayed submission of quarterly reports; under \nabsorption of funds worth UGX. 1,095,317,475 that was swept", "metadata": {"page": 376, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "366 \n \nback to consolidated fund account; under performance of the \ndonor & releases from other government units worth \n8,664,323,677 \n \n\uf0b7 \nThe district mischarged expenditure worth UGX.639, 863,720 \non wrong budget lines. \n \n\uf0b7 \nI noted that UGX.349,542,400 in respect of staff advances and \nfuel deposits was not accounted for \n \n\uf0b7 \nI noted wrong recognition of deposits received figure of \nUGX.269, 970,000 in relation to Youth Livelihood Programme \n(YLP) and Uganda Women Entrepreneur Project (UWEP). \n \n\uf0b7 \nI noted that UGX.43, 200,000 was paid to one (1) purported \npensioner who was neither on the IPPS payroll register nor \npossessed the necessary documentation to support their \nexistence.", "metadata": {"page": 377, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "existence. \n \n\uf0b7 \nI noted that the district did not submit loan deductions worth \nUGX. 3,800,833 to UCLA/UBA. \n \n\uf0b7 \nI noted that the District failed to remit tax worth UGX.407, \n791,480 to URA. \n \n\uf0b7 \nI noted that UGX.34,062,213 was paid as residual arrears to one \n(1) staff and two (2) pensioners who had not been verified (and \nthus not part of schedule) by MoFPED. \n \n\uf0b7 \nI \nnoted \nover \nremittance \nof \npayroll \ndeductions \nworth \nUGX.450,413,838 \n \n\uf0b7", "metadata": {"page": 377, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nI noted that UGX. 34,062,213 were charged on account codes \nother than those prescribed for salary, pension or gratuity. \n \n\uf0b7 \nI noted that the District had a receivables figure of UGX.1, \n072,183,415 as presented in the Statement of Financial Position \nand disclosed in note 19 to the financial statements. \n \n\uf0b7 \nI further noted that the District had a payables worth \nUGX.1,244,267,887 \n \n\uf0b7 \nI noted a number of misstatements in the financial statements of \nthe districts such as; un-reconciling balances for PPE, treatment \nof revenue surpluses, omission of domestic arrears paid during \nthe year of UGX.74,024,139, \n \n\uf0b7 \nI noted that the entity had not had their prepared strategic plan", "metadata": {"page": 377, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "approved as aligned to the NDP-III at the time of audit. \n \n\uf0b7 \nI noted that Kole District received off-budget financing to a tune \nof UGX.27, 329,000 directly from the Development Initiative for \nNorthern Uganda (DINU) for undertaking activities which was", "metadata": {"page": 377, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "367 \n \nnever declared to the PS/ST. \n \n\uf0b7 \nUnder UGIFT, I noted delayed completion of construction of \nOkwerodot Seed Secondary School, Okole HCII and Ayer HCIII \nupgrade. \n08 \nLira Municipal \n \nOpinion \nUnqualified \n\uf0b7 \nI noted a number of anomalies during review of the district \npension & salary payrolls such as; Failure to submit wage \nestimates to MoPs, over payment of pension worth \nUGX.438,769,830 \n, \nunderpayment \nof \nsalaries \nworth \nUGX.14,238,411; \nUnderpayment \nof \npension \nworth \nUGX. \n390,304,000;", "metadata": {"page": 378, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "390,304,000; \n \n\uf0b7 \nAdditionally, I observed that there was delayed access to payroll \nby five (5) pensioners; four (04) pensionaries do not have \naccess to payroll; failure to utilize wage funds of UGX.0.6 billion; \nun-deducted PAYE from political leaders\u2019 gratuity resulting in \nunpaid tax of UGX.3, 734,640 and payment of nine (09) \npensionaries worth UGX. 217,577,695 off the IPPS \n \n\uf0b7 \nI noted a number of issues in the implementation of the \napproved budget such as; incomplete works; non implantation of \nmunicipal activities; under absorption of funds worth UGX. \nUGX.12, 094,641,795 that were swept back to consolidated fund \naccount; under performance of the donor & releases from other \ngovernment units worth UGX. 236,796,670; late submission of", "metadata": {"page": 378, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "quarterly reports \n \n\uf0b7 \nThe municipal mischarged expenditure worth UGX. 63,933,741 \non wrong budget lines. \n \n\uf0b7 \nUnder remitted payroll deductions worth UGX.4,119,401 \n \n\uf0b7 \nI noted that the municipal paid unverified residual arrears worth \nUGX. 320,216,040 to 39 pensioners \n \n\uf0b7 \nI noted that 08 employees were paid a total of UGX.20, 975,837 \nwithout signed pay change reports. \n \n\uf0b7 \nI noted that the Municipal Council has an outstanding payables \nbalance of UGX.383, 550,743 by year end as recognized in the \nstatement of financial position on page 8 of the financial \nstatements. \n \n\uf0b7 \nI noted that municipal council has outstanding payables worth", "metadata": {"page": 378, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "UGX. 383,550,743 and outstanding debtors worth UGX. \n634,438,200 \n \n\uf0b7 \nI noted that the entity had not had their prepared strategic plan \napproved as aligned to the NDP-III at the time of audit. \n \n09 \nLira RRH \n \n\uf0b7 \nI noted a number of anomalies during review of Lira RR Hospital \npension & salary payrolls such as; Failure to submit wage", "metadata": {"page": 378, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "368 \n \nOpinion \nUnqualified \nestimates to MoPs, over payment of salaries worth UGX. UGX.10, \n939,040; Underpayment of salaries worth UGX. UGX 19,371,873. \nOver payment of pension worth UGX 222,915,780. \n \n\uf0b7 \nAdditionally, I observed that there was delayed access to payroll \nby three (3) pensioners; failure to utilize wage funds of UGX.1.50 \nbillion; un-deducted PAYE from political leaders\u2019 gratuity resulting \nin unpaid tax of UGX.10,746,540 and payment of one (01) \npensioner worth UGX 48,955,200 off the IPPS \n \n\uf0b7 \nI noted a number of issues in the implementation of the \napproved budget such as; incomplete works partial and", "metadata": {"page": 379, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "implementation of activities; under absorption of funds worth \nUGX.1,866,855,791 that was swept back to consolidated fund \naccount; under performance of the donor & releases from other \ngovernment \nunits \n \nworth \nUGX.13,220,968,441; \ndelayed \nsubmission of quarterly monitoring reports to OPM & MoFPED \n \n \n\uf0b7 \nThe district mischarged expenditure worth UGX. 53,750,617 on \nwrong budget lines. \n \n\uf0b7 \nUnder remittance of salary deductions worth UGX. 115,855,754 \n \n\uf0b7 \nI noted that UGX. 18,767,338 was paid as residual arrears to 13 \nstaff who had not been verified by MoFPED \n \n \n\uf0b7", "metadata": {"page": 379, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nI observed that a sum of UGX.339,276,432 had been paid to a \ncontractor as advance payments \n \n10 \nGulu MC \n \nOpinion \nUnqualified \n \n\uf0b7 \nI noted a number of anomalies during review of the municipal \ncouncil pension & salary payrolls such as; Failure to submit wage \nestimates \nto \nMoPs, \nUnderpayment \nof \nsalaries \n \nworth \nUGX.26,212,810; payment of salaries worth UGX.64,323,258 to \ntwenty nine (29) staffs that was no longer in service \n \n\uf0b7 \nAdditionally, I observed that there was delayed access to payroll \nby one (01) new employee and twenty four (24) pensioners;", "metadata": {"page": 379, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "failure to utilize wage funds of UGX. 0.33 billion; un-deducted \nPAYE from political leaders\u2019 gratuity resulting in unpaid tax of \nUGX. 4,415,984 and payment of seven (07) staffs and 08 \npensioners worth UGX. 73,991,598 off the IPPS \n \n\uf0b7 \nI noted a number of issues in the implementation of the \napproved budget such as; incomplete work; partial and non-\nimplementation of activities; under absorption of funds worth \nUGX. 37,873,163,059 that was swept back to consolidated fund \naccount; under performance of the donor & releases from other \ngovernment \nunits \n \nworth \nUGX.5,244,627,728; \ndelayed \nsubmission of quarterly monitoring reports to OPM & MoFPED \n \n\uf0b7 \n\uf0b7 \nThe district mischarged expenditure worth UGX.313, 804,373 on \nwrong budget lines.", "metadata": {"page": 379, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "369 \n \n \n\uf0b7 \nA review of the pension payroll data and IFMS payments, \nrevealed variances between amounts on the payroll and \npayments to individual pensioners, leading to an over and under \npayment \nof \nUGX.108,837,902 \nand \nUGX.1,323,647,325 \nrespectively. \n \n\uf0b7 \nI noted that the entity had not had their prepared strategic plan \napproved as aligned to the NDP-III at the time of audit. \n \n\uf0b7 \nI noted that 58 employees were paid a total of UGX. \nUGX.48,537,458 without Unauthorized pay changed reports \n \n\uf0b7 \nI also noted that UGX.163, 186,521 accrued within the year and \nhad not yet been paid to pensioners by the end of the year.", "metadata": {"page": 380, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nOver and under payments of UGX 2,050,016 and UGX.625, 974 \nrespectively of 59 staff arising from the use a wrong salary scale. \n \n\uf0b7 \nOverpayment of pension of arrears worth UGX.48,674,235 to \nnine (09) pensioners \n \n\uf0b7 \nI noted that Municipal Council paid out a total of UGX.6.3 million \nto 07 non-existent staff. \n \n\uf0b7 \nI noted that UGX.75, 010,130 was paid to 08 purported \npensioners that were neither on the IPPS payroll register nor \npossessed the necessary documentation to support their \nexistence. \n \n\uf0b7 \nI noted that the Municipal Council made PAYE deductions of", "metadata": {"page": 380, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "UGX. 1,439,481,558, but did not remit UGX.2, 162,681 to URA. \n \n\uf0b7 \nI noted that UGX.82, 533,859 was paid as residual arrears to 14 \npensioners who had not been verified. \n \n\uf0b7 \nI noted that the council has receivables worth U GX.3, \n153,612,053 at end of the financial year. \n \n\uf0b7 \nI noted that expenditure amounting to UGX.113,162,472 \nremained unaccounted for. \n \n11 \nLira DLG \n \nOpinion \nUnqualified \n\uf0b7 \nI noted a number of anomalies during review of the district \npension & salary payrolls such as; Failure to submit wage", "metadata": {"page": 380, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "estimates to MoPs,; payment of salaries worth UGX.14,683,834 \nto eight (8) staffs that was no longer in service . \n \n\uf0b7 \nAdditionally, I observed that there was delayed access to payroll \nby fourteen (14) new employees and eight (8) pensioners; failure \nto utilize wage funds of UGX.0.5 billion; un-deducted PAYE from \npolitical \nleaders\u2019 \ngratuity \nresulting \nin \nunpaid \ntax \nof \nUGX.10,794,810; Over and under payment salaries worth of", "metadata": {"page": 380, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "370 \n \nUGX.115,309,480 and UGX.131,175,021 respectively; under \npayments of salaries worth UGX.530,320 of 18 staff arising from \nthe use a wrong salary scale \n \n\uf0b7 \nOver and under payment of pension worth of UGX.30, 707,444 \nand UGX.598, 762,255 respectively. \n \n\uf0b7 \nI noted a number of issues in the implementation of the \napproved budget such as; shoddy works in construction of \nclassrooms; incomplete works; the District failed to achieve the \nintended services from the implemented 02 outputs; under \nabsorption of funds worth UGX. 1,005,249,173 that were swept \nback to consolidated fund account; over performance and \nunder performance of the donor & releases from other \ngovernment units worth UGX. 8,559,440,754 delayed submission", "metadata": {"page": 381, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "of quarterly monitoring reports to OPM & MoFPED \n \n\uf0b7 \nThe district mischarged expenditure worth UGX.275, 847,736 on \nwrong budget lines. \n \n\uf0b7 \nI noted that the entity had not had their prepared strategic plan \napproved as aligned to the NDP-III at the time of audit. \n \n\uf0b7 \nI noted that the district had an off budget financing worth \nUGX.220, 983,855 during the financial year. \n \n\uf0b7 \nI noted that 21 employees were paid a total of UGX. 9,941,845 \nwithout signed pay change reports. \n \n\uf0b7 \nI noted that the District had outstanding receivables worth UGX. \n898,553,933 and outstanding payables worth UGX.920,018,518 \n \n12 \nOyam DLG", "metadata": {"page": 381, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Oyam DLG \n \nQualified Opinion \n\uf0b7 \nI noted a number of anomalies during review of the district \npension & salary payrolls such as; Failure to submit wage \nestimates to MoPs, over payment of salaries worth UGX. \n81,486,802; Underpayment of salaries worth UGX. 54,366,065; \npayment of salaries worth UGX.74, 935,902 to thirty three (33) \nstaffs that was no longer in service .unpaid salary worth UGX.91, \n771,432. \n \n\uf0b7 \nAdditionally, I observed that there was delayed access to payroll \nby thirteen (13) new employees and sixteen (16) pensioners; \nfailure to utilize wage funds of UGX. UGX.0.58 billion; un-\ndeducted PAYE from political leaders\u2019 gratuity resulting in unpaid", "metadata": {"page": 381, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "tax of UGX.12, 437,406. \n \n\uf0b7 \nI noted that the entity had not had their prepared strategic plan \napproved as aligned to the NDP-III at the time of audit. \n \n\uf0b7 \nThe District did not recognize as a receivable an advance \npayment of UGX.414,149,184 made on 28th June 2021 for the \nsupply and installation of medical equipment to 64 Health Center \nIIIs under Uganda Intergovernmental Fiscal Transfer Program", "metadata": {"page": 381, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "371 \n \n(UgIFT) (LOT 3). \n \n\uf0b7 \nThe district mischarged expenditure worth UGX. 609,529,053 on \nwrong budget lines. \n \n\uf0b7 \nOver payments of UGX.1, 104,810 respectively of 27 staff arising \nfrom the use of wrong salary scales. \n \n\uf0b7 \nI noted a number of issues in the implementation of the \napproved budget such as; incomplete works; partial and non-\nimplementation of activities; under absorption of funds worth \nUGX. 972,008,324 that was swept back to consolidated fund \naccount; under performance of the donor & releases from other \ngovernment \nunits \nworth \nUGX. \n1,163,405,949; \ndelayed \nsubmission of quarterly monitoring reports to OPM & MoFPED", "metadata": {"page": 382, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nThe district mischarged expenditure worth UGX.275, 847,736 on \nwrong budget lines. \n \n\uf0b7 \nOver and under payment of pension to pensionaries worth \nUGX.34, 619,402, and UGX.126, 248,570 respectively. \n \n\uf0b7 \nI noted that the District has unauthorized loan deductions worth \nUGX.178,342,254. \n \n\uf0b7 \nPayment of pension arrears worth UGX.22,125,006 to ineligible \npensioners \n \n\uf0b7 \nI noted 700 vacant staff position at the district that affected \nservice delivery \n \n\uf0b7 \nThe district had outstanding payables worth UGX.2, 865,939,536 \nand Overdue receivables worth UGX.2, 865,939,536 by the end", "metadata": {"page": 382, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "of the financial year. \n \n\uf0b7 \nUGX.590, 863,502 paid to the contractor on the 28th June 2021 \nwas not supported by certificates of works done. \n \n\uf0b7 \nI noted that expenditure amounting to UGX.31, 252,804 \nremained unaccounted. \n \n\uf0b7 \nI noted that management irregularly paid out UGX.411, 867,050 \nto individual staff personal bank accounts to purportedly \nimplement several council activities instead of directly paying the \neligible suppliers and service providers. In addition, these \nindividuals were neither imprest holders nor cashiers who are \nmandated to hold cash among other duties. \n13 \nPader DLG \n \nUn Qualified Opinion \n \n\uf0b7 \nI noted a number of anomalies during review of the district \npension & salary payrolls such as; Failure to submit wage", "metadata": {"page": 382, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "estimates \nto \nMoPs, \nOver \npayment \nof \nsalaries \nworth \nUGX.42,537,857payment of pension worth UGX.288, 866,531; \nUnderpayment of pension worth UGX.910,301,025.; payment of", "metadata": {"page": 382, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "372 \n \nsalaries worth UGX.7,410,931 to seven (07) staffs that was no \nlonger in service \n \n\uf0b7 \nAdditionally, I observed that there was delayed access to payroll \nby twenty three (23) new employees and two (2) pensioners; \nfailure to utilize wage funds of UGX.2.38Bn; un-deducted PAYE \nfrom political leaders\u2019 gratuity resulting in unpaid tax of \nUGX.310,309,590 and payment of twenty two (22) staffs worth \nUGX.35,678,772 off the IPPS \n \n \n\uf0b7 \nI noted a number of issues in the implementation of the \napproved budget such as; shoddy works in construction of \nclassrooms; incomplete works; under absorption of funds that \nwas \nswept \nback \nto \nconsolidated", "metadata": {"page": 383, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "to \nconsolidated \nfund \naccount; \nunder \nperformance of the donor & releases from other government \nunits worth UGX.2,942,949,626; delayed submission of quarterly \nmonitoring reports to OPM & MoFPED \n \n\uf0b7 \nOver payment of salary worth UGX.608,719 arising from use of \nwrong scale \n \n\uf0b7 \nI noted that the District made unauthorized loan deductions \nworth UGX. 45,223,516. \n \n\uf0b7 \nI noted that UGX.113, 671,178 was charged on account codes \nother than those prescribed for salary, pension and gratuity. \n \n\uf0b7 \nThe \nDistrict \nhad \nan \noutstanding \npayables \nbalance \nof", "metadata": {"page": 383, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "balance \nof \nUGX.1,365,231,670 as reported in the statement of financial \nposition \n \n\uf0b7 \nThe District had in its statement of financial position, long \noutstanding debtors (Advances) amounting to UGX.927, 029,154, \nwhich relate to the previous financial years. \n \n\uf0b7 \nI noted that the entity had prepared a strategic plan but the \nNational Planning Authority had not yet approved it at the time of \naudit. \n \n\uf0b7 \nI undertook an assessment to establish if there has been service \ndelivery from a sample of outputs that were implemented and \nnoted that the upgrade of Lapul\u2013Ocwida Health Center II to III \nhad not been completed because the contractor abandoned the \nsite. \n \n\uf0b7 \nI noted that UGX.42, 534,087 was charged on items which did", "metadata": {"page": 383, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "not reflect the nature of the expenditure. \n \n\uf0b7 \nThe district has an approved staff structure of 2,215 positions. \nOut of the approved staff structure, 1,229 (55%) are filled \nleaving 986 (45%) vacant. \n \nSoroti Branch \nSummary of Key Findings \n01 \nAmolatar DLG \n\uf0b7 \nI noted a number of anomalies during review of the district", "metadata": {"page": 383, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "373 \n \n \nOpinion \nUnqualified \npension & salary payrolls such as; Failure to submit wage \nestimates to MoPs, over payment of pension worth UGX. \n3,624,783; Underpayment of pension worth UGX. 5,353,736 w; \npayment of salaries worth UGX. 12,633,711 fourteen (14) staffs \nthat was no longer in service \n \n\uf0b7 \nUn-deducted PAYE from political leaders\u2019 gratuity resulting in \nunpaid tax of UGX. 13,781,047 and payment of 32 staffs and 02 \npensioners worth UGX. 34,292,421 off the IPPS and delayed \nsubmission of remittances of PAYE to URA \n \n\uf0b7 \nI noted a number of issues in the implementation of the", "metadata": {"page": 384, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "approved budget such as; partial and non-implementation of \nplanned activities; unabsorbed wage fund of UGX0.95 billion; \nunder absorption of funds worth UGX.3,620,479,221 that was \nswept back to consolidated fund account; under performance of \nthe donor & releases from other government units worth \nUGX.2,409,034,822; non submission of quarterly monitoring \nreports to OPM & MoFPED; \n \n \n\uf0b7 \nI noted that whereas UGX. 2,463,002,481 was deducted from \nemployees\u2019 salaries to be remitted to different beneficiaries, \nUGX.2,451,377,682.was remitted, leading to an over and under \nremittance amounting to UGX.1,529,715 and UGX.13,154,514 \nrespectively. \n \n\uf0b7", "metadata": {"page": 384, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nThe district mischarged UGX. 30,489,944 for pension arrears on \naccount code for gratuity. \n \n\uf0b7 \nI noted that the district had not paid pension arrears of \nUGX.121,391,408 by the end of the financial year and the total \nliabilities of UGX.1,794,377,044 \n \n\uf0b7 \nI noted that expenditure of UGX.10, 037,020 remained \nunaccounted for by the close of the financial year. \n \n\uf0b7 \nI noted that the entity did not prepare and have an approved \nstrategic plan aligned to NDP-III. \n \n\uf0b7 \nI noted that Amolatar District received off-budget financing to a \ntune of UGX.29, 056,000 directly from United Nations", "metadata": {"page": 384, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Development Fund (UNCDF) for local revenue enhancement and \nconstruction of Development Initiative for Northern Uganda \n(DINU) centre which was never declared to the PS/ST and as \nsuch no supplementary appropriation was issued as guided by \nthe PS/ST. \n \n\uf0b7 \nI noted that despite recommendations by the board of survey, \nthe district had not disposed of assets. \n \n\uf0b7 \nI noted that for the financial year 2016/17 to 202021/ the district \nhad recovered UGX. 99,542,500 out of the expected total amount", "metadata": {"page": 384, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "374 \n \ndue (Interest Exclusive) of UGX. 559,850,500 representing 18%, \nleaving an outstanding balance of UGX. 478, 531,250 under the \nUganda Women Entrepreneurship Program (UWEP). \n01. 0\n2 \nBukedea DLG \n \nOpinion \nUnqualified \n\uf0b7 \nI noted a number of anomalies during review of the district \npension & salary payrolls such as; Failure to submit wage \nestimates \nto \nMoPs,; \nUnderpayment \nof \npension \nworth \nUGX.4,244,574. ; Wrong computation of gratuity worth net \noverpayment of UGX 4,368,548; delayed remittance of payroll \ndeductions to URA and one staff was paid a total of", "metadata": {"page": 385, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "UGX.14.8million off the IPPS \n \n\uf0b7 \nI noted a number of issues in the implementation of the \napproved budget such as;partial implementation of planned \nactivities; an absorbed wage fund balance 0.6Bn; under \nabsorption of funds worth UGX.2.93Bn that was swept back to \nconsolidated fund account; under performance of the donor & \nreleases from other government units worth UGX.0.6Bn; delayed \nsubmission of quarterly monitoring reports to OPM & MoFPED \n \n\uf0b7 \nI noted that the entity did not prepare and have an approved \nstrategic plan aligned to NDP-III. \n \n\uf0b7 \nI noted that whereas UGX.4,007,788,020 was deducted from \nemployees\u2019 salaries to be remitted to different beneficiaries,", "metadata": {"page": 385, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "UGX.3,853,954,791 was remitted, leading to an over/ under \nremittance of UGX.116,697,024/UGX.270,530,253 respectively \n\uf0b7 \n \n\uf0b7 \nI also noted that within total liabilities are deposits of UGX.994, \n994,899 regarding to YLP and UWEP. \n \n\uf0b7 \nBukedea HCIV experienced drug stock outs for several essential \nmedicines during the year \n \n\uf0b7 \nThe district awarded contracts and made payment of UGX. \n47,362,136 without proof of active VAT registration. As a result, \nVAT amounting of UGX. 7,222,726 was paid to non-registered \ncompany/deregistered due to non-compliance. \n \n\uf0b7 \nThe district had received unbudgeted for funding worth UGX.", "metadata": {"page": 385, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "254,695,138 for printing of home study materials but this was \nnot even approved as a supplementary budget by the council. \n \n\uf0b7 \nAn outstanding receivables balance of UGX. 303,281,690 during \nthe financial year that remained unrecovered \n02. 0\n3 \nDokolo DLG \n \nOpinion \nUnqualified \n\uf0b7 \nI noted a number of anomalies during review of the district \npension & salary payrolls such as; Failure to submit wage \nestimates to MoPs, Over Underpayment of salaries worth \nUGX.169,757,747 and several staff were paid a total of \nUGX.6.4million off the IPPS. \n \n\uf0b7 \nI noted a number of issues in the implementation of the \napproved budget such as;partial implementation of planned \nactivities; unabsorbed wage funds of UGX.0.128Bn; under", "metadata": {"page": 385, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "375 \n \nperformance of the donor & releases from other government \nunits worth UGX.6.258Bn; delayed submission of quarterly \nmonitoring reports to OPM & MoFPED \n \n\uf0b7 \nI noted that the entity did not prepare and have an approved \nstrategic plan aligned to NDP-III. \n \n\uf0b7 \nI noted delays in the remittance of PAYE deductions to URA in 2 \nout of 12 months, with an average delay. \n \n\uf0b7 \nI noted that the district did not subject political leaders\u2019 gratuity \ntotaling to UGX.33, 217,800 to the computation of PAYE in IPPS, \nleading to revenue loss of UGX.10, 036,690. \n \n\uf0b7 \nOutstanding payables during the year worth UGX.7,108,292 \nremained unsettled by year end \n \n\uf0b7", "metadata": {"page": 386, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nUncounted for funds at the close of the financial year amounted \nto UGX.13,212,000 \n \n\uf0b7 \nIt was noted that two (2) contracts worth UGX.36,371,630 were \nawarded to contractors VAT inclusive to a tune of UGX.5,548,214 \nyet the individual contractors were either not VAT registered or \nhad been de-registered by the tax authority. \n \n\uf0b7 \nAn outstanding receivables balance of UGX.346,165,052 due \nfrom UWEP and YLP groups \n03. 0\n4 \nKaberamaido DLG \n \nOpinion. \nUnqualified \n \n\uf0b7 \nI noted a number of anomalies during review of the district \npension & salary payrolls such as; Failure to submit wage", "metadata": {"page": 386, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "estimates to MoPs, over payment of salaries worth UGX.1, \n255,265; Underpayment of salaries worth UGX. 1, 222,507; \nsalaries worth UGX.1,960,136 was paid to 1 staff who had retired \nand Paid UGX.3,300,000 and UGX.54,988,606 to 2 employees \nand 2 pensioners respectively off IPPS \n \n\uf0b7 \nI noted a number of issues in the implementation of the \napproved budget such as; unabsorbed wage funds worth UGX \n0.4Bn; under payment UGX. 37,655,834 under absorption of \nother received funds worth UGX.26, 816,534 that was swept \nback to consolidated fund account; under performance of the \ndonor \n& \nreleases \nfrom \nother \ngovernment \nunits \nworth", "metadata": {"page": 386, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "units \nworth \nUGX.464,763,581; delayed submission of quarterly monitoring \nreports to OPM & MoFPED \n \n\uf0b7 \nI noted that the entity did not prepare and have an approved \nstrategic plan aligned to NDP-III. \n\uf0b7 \n \n\uf0b7 \nI noted that the District made PAYE deductions of UGX.1, \n260,530,351 and remitted to URA and delays in the remittance of \nPAYE deductions to URA ranging from 1\u201313 days. \n \n\uf0b7 \nI noted that Kaberamaido District did not subject political leaders\u2019", "metadata": {"page": 386, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "376 \n \ngratuity totaling to UGX. 37,211,942 to the computation of PAYE \nin IPPS, leading to an under deduction of UGX. 11,183,595. \n \n\uf0b7 \nI observed a number of issues during my inspection of \nKaberamaido Hospital such as; equipment such as Ultra sound \nmachines and Scanners were idle due to lack of specialized \nhuman resources to operate them and the hospital has (4) small \noxygen concentrators which are obsolete; Poor infrastructural \ndevelopment of kaberamido hospital \n \n\uf0b7 \nA review of the approved work plan and budget revealed that the \ndistrict made budget provisions for vehicle maintenance during \nthe period under review amounting to UGX.98, 812,000. \nHowever, almost all the district vehicles were not functional due \nto failure to maintain and repair them and the approximated cost", "metadata": {"page": 387, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "amounted to UGX.298, 400,000. \n \n04. 0\n5 \nKalaki DLG \n \nOpinion \nUnqualified \n\uf0b7 \nI noted a number of anomalies during review of the district \npension & salary payrolls such as; Failure to submit wage \nestimates \nto \nMoPs; \nUnderpayment \nof \npension \nworth \nUGX.13,901,641; payment of salaries worth UGX. 1,573,970 to \nfive (5) staffs that was no longer in service and payment of UGX \n19.29 million to five (5) employees off the IPPS \n \n\uf0b7 \nI noted a number of issues in implementation of approved \nbudget \nsuch \nas; \nunder \nabsorption \nof", "metadata": {"page": 387, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "absorption \nof \nfunds \nworth \nUGX.1,197,062,675 that was swept back to consolidated fund \naccount;. un absorbed funds worth UGX.2.385Bn under \nperformance of the donor & releases from other government \nunits worth UGX.2,685,815,492 and non-submission of \nquarterly monitoring reports to OPM & MoFPED \n \n\uf0b7 \nI noted that the entity did not prepare and have an approved \nstrategic plan aligned to NDP-III. \n \n\uf0b7 \nI observed that whereas UGX.1,565,039,555 was deducted from \nemployees\u2019 salaries to be remitted to different beneficiaries, \nUGX.1,487,680,407 was remitted, leading to an over/under", "metadata": {"page": 387, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "remittance of UGX.6,339,201 and UGX.83,698,349 respectively. \n \n\uf0b7 \nDisclosed in the statement of financial position on page (15) are \nreceivables of UGX.752,701,227 as supported by Note (19) \nrelating to UWEP and YLP funds which remained due to the \nrevolving fund and close of the financial year \n \n06 \nKatakwi DLG \n \nOpinion \nUnqualified \n\uf0b7 \nI noted a number of anomalies during review of the district \npension & salary payrolls such as; Failure to submit wage \nestimates to MoPs, over and under payment of salaries worth \nUGX. 1,541,478 and UGX. 24,265,506 respectively; under \nremittance salary deductions worth UGX. 10,723,784; \n\uf0b7 \nAdditionally, I observed failure to utilize wage funds of \nUGX.0.1Bn; un-deducted PAYE from political leaders\u2019 gratuity", "metadata": {"page": 387, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "377 \n \nresulting in unpaid tax of UGX. 13,353,316; I noted that 4 newly \nrecruited/ transferred employees and 24 pensioners delayed to \naccess payroll; the Katakwi District did not prepare monthly \nwage, pension and gratuity performance analysis and thus did \nnot submit quarterly returns on payroll to MoPS; paid 32 staff \nand 02 pensioners worth UGX. 34,292,421 off the IPPS \n \n\uf0b7 \nI noted that the district had not paid salary and pension arrears \nof UGX.176,136,812 and UGX.210,481,886 respectively and \ndeposits under total liabilities of UGX.1,469,427,540, comprising \nof YLP and UWEP amounts due to the revolving fund \n \n\uf0b7 \nI noted a number of issues in the implementation of the", "metadata": {"page": 388, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "approved budget such as; shoddy works in construction of \nclassrooms; incomplete works; under absorption of funds worth \nUGX. 360,155,363 that was swept back to consolidated fund \naccount; under performance of the donor & releases from other \ngovernment \nunits \n \nworth \nUGX.1,868,819,492; \ndelayed \nsubmission of quarterly monitoring reports to OPM & MoFPED \n \n\uf0b7 \nA total of 37 km at an estimated cost of UGX.220, 000,000 was \nworked on, however on physical inspection it was noted that \nsome road sections were not well graded with poor road shaping, \nspot gravelling while others lacked access roads to the \ncommunity. \n \n\uf0b7 \nThe \ndistrict \nhad \nreceived \nunbudgeted \nfunding \nworth", "metadata": {"page": 388, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "funding \nworth \nUGX.186,033,984 on 20th January 2021 for printing of home \nstudy materials which was not approved as a supplementary \nbudget by the council, remained un-transferred to schools until \n23rd June 2021 and had not been utilized by the beneficiary \nschools at the time of audit.(August 2021). \n \n\uf0b7 \nAn audit of Katakwi district hospital revealed instances of drug \nstock outs, failure to keep records of essential medicines such as \noxygen and blood, expiry of drugs and staffing gaps at the \ndistrict hospital. \n \n\uf0b7 \nThe district signed a contract with UK General Services Limited \nfor Upgrade of Palam HC III to III funded under Transitional \nDevelopment Grant (TDG) (KATA522/WRKS/20-21/00032) at a", "metadata": {"page": 388, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "contract price of UGX.296, 838,010, UGX.265, 076,343 (89%) of \nthe contract sum had been paid leaving only 10% retention due \nto the contractor but on inspection it was noted that the works \nwere in complete and the contractor was not found on site. \n07 \nKUMI DLG \n \nOpinion \nUnqualified \n \n\uf0b7 \nI noted a number of anomalies during review of the district \npension & salary payrolls such as; Failure to submit wage \nestimates to MoPs; Underpayment of pension worth UGX \n40,603,995; payment of salaries worth UGX. 41,743,339 to \nfourteen (14) staffs that was no longer in service \n \n\uf0b7 \nAdditionally, I observed that there was delayed access to payroll", "metadata": {"page": 388, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "378 \n \nby seventy eigth (78) new employees and six (06) pensioners \nand 15 pensioners did not access the pension payroll by the end \nof FY 2020/21; failure to utilize wage funds of UGX 0.7 billion.; \nun-deducted PAYE from political leaders\u2019 gratuity resulting in \nunpaid tax of UGX. 8,722,103.and payment of seven (07) staffs \nworth UGX 8,054,219 off the IPPS \n \n\uf0b7 \nI noted a number of issues in the implementation of the \napproved budget such as; partial implementation of activities, \nunder absorption of funds worth UGX. 1,189,642,702 that was \nswept back to consolidated fund account; under performance of \nthe donor & releases from other government units worth \nUGX.9,484,212,313; delayed submission of quarterly monitoring", "metadata": {"page": 389, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "reports to OPM & MoFPED \n \n\uf0b7 \nOver and under remittance amounting to UGX. 1,447,689 and \nUGX. 27,903,716 respectively. \n \n\uf0b7 \nI noted that the District has receivables worth UGX 207,343,250. \n \n\uf0b7 \nI noted that the District had payables of worth UGX. \n1,061,619,255 \n \n\uf0b7 \nThe district did not have an approved strategic plan that is \naligned to the NDP-III at the time of audit. \n \n\uf0b7 \nThe district lacked land titles for 58 pieces measuring 948.809 \nacres which exposed the land to loss and encroachment. \n \n\uf0b7 \nThe district received a sum of UGX 202,441,411 for primary and", "metadata": {"page": 389, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "secondary for procurement of learning materials. I noted that the \nabove funds were still on the schools accounts. \n \n\uf0b7 \nVacant staff position of 82 was noted at the district \n \n\uf0b7 \nThe district mischarged expenditure worth of UGX.23,818,896 \non wrong budget lines. \n08 \nSoroti CITY \n \nOpinion \nUnqualified \n \n\uf0b7 \nI noted a number of anomalies during review of the district \npension & salary payrolls such as; Failure to submit wage \nestimates to MoPs worth 0.20Bn; Underpayment of pension \nworth UGX 17,693,503; payment of salaries worth UGX. \n4,422,604 to two (2) staffs that was no longer in service \n \n\uf0b7 \nAdditionally, I observed that there was delayed access to payroll", "metadata": {"page": 389, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "by twenty three (2) new employees and nine (2) pensioners; \n \n\uf0b7 \nI noted under absorption of funds worth UGX.569,370,362 that \nwas \nswept \nback \nto \nconsolidated \nfund \naccount; \nunder \nperformance of the donor & releases from other government \nunits worth UGX.3,241,130,000; delayed submission of quarterly \nmonitoring reports to OPM & MoFPED partial implementation of \nplanned activities unquantified output 2 pensioners delayed to", "metadata": {"page": 389, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "379 \n \naccess the pension payroll, with delays of 2 months. \n \n\uf0b7 \nThe district did not have an approved strategic plan that is \naligned to the NDP-III at the time of audit. \n \n\uf0b7 \nI noted that whereas UGX.1,672,354,754 was deducted from \nemployees\u2019 salaries to be remitted to different beneficiaries, \nUGX.1,720,244,218 was remitted, leading to an over remittance \nof UGX.47,889,464. \n \n\uf0b7 \nI noted that the City did not subject political leaders\u2019 gratuity \ntotaling to UGX.10, 718,400 to the computation of PAYE in IPPS, \nleading to a revenue loss of UGX.3,212,520. \n. \n\uf0b7", "metadata": {"page": 390, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": ". \n\uf0b7 \nI noted that UGX.16, 952,389 was charged on account codes \nother than those prescribed for salary, pension and gratuity. \n\uf0b7 \n 9 staff and 1 pensioner were paid a total of UGX.9, 175,032 off \nthe IPPS. \n\uf0b7 \n \n\uf0b7 \nIt was noted that the health centre experienced expiry of several \nessential medicines. \n\uf0b7 \nAn audit of a sample of essential drugs revealed that there were \ndiscrepancies between quantities ordered and those actually \ndelivered by National Medical Stores. \n \n\uf0b7 \nI noted that from the financial year 2015/16 to 2018/19 the City \nhad disbursed a total of UGX.213,350,031 out of which a sum of \nonly \nUGX.48,137,000(23%) \nwas \nrecovered", "metadata": {"page": 390, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "was \nrecovered \n \nleaving \nan \noutstanding balance of UGX.173,473,68 \n\uf0b7 \n AN outstanding balance of UGX.84,288,225 . \n09 \nSoroti DLG \n \nOpinion \nUnqualified \n\uf0b7 \nI noted a number of anomalies during review of the district \npension & salary payrolls such as; delayed to submit wage \nestimates to MoPs; an unabsorbed balance of UGX.0.1Bn; an \nover payment of UGX.2,539,634; Unpaid Salaries worth \nUGX.39,755,425; \nan \nunder \npayment \nof \nUGX.40,539,361; \npayment of salaries worth UGX.2,618,034 to two (2) staffs that", "metadata": {"page": 390, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "had retired and the other died; an over/under remittance of \nUGX.24,004,085 and UGX.70,000 respectively; loan deduction \nworth UGX.1,025,336,368 from 643 employees that had no \nletters of undertaking but exist in the reports. \n \n\uf0b7 \n I further un-deducted PAYE from political leaders\u2019 gratuity \nresulting to an under deduction of UGX.10,594,893; delay in \naccessing payroll and pension payroll; the district mischarged \nexpenditure worth UGX.23,558,053 on wrong budget lines; Paid \nresidual arrears worth UGX.361,354,056 to 15 pensioners who \nhad not been verified; Failed to prepare monthly wage, pension \nand gratuity performance analysis; Failed also to submit quarterly \nreturns on payroll to MoPS; Payment worth UGX.1,109,575,875", "metadata": {"page": 390, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "was paid to 26 pensioners off the IPPS; \n \n\uf0b7 \nI noted that the entity prepared and submitted the Strategic Plan \nto National Planning Authority but had not been approved by the", "metadata": {"page": 390, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "380 \n \ntime of audit; the district had an Outstanding total liabilities \nworth \nUGX.1,315,447,223; \nUnderperformance \nworth \nUGX.1,770,722,988; Under absorption worth UGX.620,661,204 \nwhich was subsequently swept back to the consolidated fund \naccount; Failed to prepare annual monitoring plans. \n \n\uf0b7 \nThe district received Amount worth UGX.51,440,000 under covid \n19 response; the district had several pieces of land whose titles \nhad \nnot \nbeen \nsecured; \nan \noutstanding \nbalance \nworth \nUGX.1,028,188,380 from groups; shoddy works in construction of \nroads; Un utilized amount of money worth UGX.176,968,673", "metadata": {"page": 391, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "meant for the procurement of learning materials for primary and \nsecondary schools \n10 \nKapelebyong DLG \n \nOpinion \nUnqualified \n\uf0b7 \nI noted a number of anomalies during review of the district \npension & salary payrolls such as; Failure to submit wage \nestimates to MoPs, under payment of pension worth UGX. \n13,840,658; Underpayment of salaries worth UGX. 23,446,654.. \nAccrued payment of pension worth UGX. 1,623,473. under \nremittance of salaries worth UGX. 35,257,436. \n \n\uf0b7 \nAdditionally, I observed that there was delayed access to payroll \nby two (2) pensioners; failure to utilize wage funds of UGX. \n1,030,154,088.; un-deducted PAYE from political leaders\u2019 gratuity", "metadata": {"page": 391, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "resulting in unpaid tax of UGX.6,156,000 and payment of six \n(06) staffs worth UGX. 19,428,658 off the IPPS \n \n\uf0b7 \nI noted a number of issues in the implementation of the \napproved \nbudget \nsuch \nas; \nincomplete \nworks; \npartial \nimplementation of activities, under absorption of funds worth \nUGX. 1,089, 751 811, that was swept back to consolidated fund \naccount; under performance of the donor & releases from other \ngovernment units worth UGX.537,701,164; delayed submission \nof quarterly monitoring reports to OPM & MoFPED \n \n\uf0b7 \nOutstanding liabilities worth UGX.912,708,330 \n \n\uf0b7 \nThe district did not have an approved strategic plan that is", "metadata": {"page": 391, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "aligned to the NDP-III at the time of audit. \n \n\uf0b7 \nA total of UGX.20, 000,000 was received as COVID 19 \nsupplementary funding \n \n\uf0b7 \nI noted that the district has funds worth UGX. 589,150,272 \nrelating to YLP and UWEP \n \n\uf0b7 \nThe district received unbudgeted funding worth UGX. 76,174,518 \n \n\uf0b7 \nI noted that the district has outstanding payables (YLP)/ UWEP \nworth UGX. 331,343,011 and UGX. 251,879,775 respectively \n. \n\uf0b7 \nThe district awarded contracts and made payments amounting to \nUGX.97, 981,512 without proof of active VAT registration, as a \nresult, VAT amounting of UGX.14, 946,332 was paid to non-", "metadata": {"page": 391, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "381 \n \nregistered or de-registered companies. \n11 \nSERERE DLG \n \nOpinion \nUnqualified \n \n\uf0b7 \nI noted a number of anomalies during review of the district \npension & salary payrolls such as; Failure to submit wage \nestimates \nto \nMoPs, \nOver \npayment \nof \nsalaries \nworth \nUGX.5,681,385; \nUnderpayment \nof \nsalaries \nworth \nUGX.7,111,988; \nunder \nremittance \nof \nsalaries \nworth \nUGX.32,910,176 \n \n\uf0b7", "metadata": {"page": 392, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nI further noted failure to utilize wage funds of UGX.0.6 billion; \nun-deducted PAYE from political leaders\u2019 gratuity resulting in \nunpaid tax of UGX.10,721, UGX.416million off the IPPS \n \n\uf0b7 \nI noted a number of issues in the implementation of the \napproved budget such as;; under absorption of funds worth \nUGX.1.18Bn that was swept back to consolidated fund account; \nunder performance of the donor & releases from other \ngovernment units worth UGX.7.721Bn; delayed submission of \nquarterly monitoring reports to OPM & MoFPED \n \n\uf0b7 \nUn recovered YLP and UWEP deposits worth UGX.1,086,363,675 \n \n\uf0b7 \nThe district did not have an approved strategic plan that is \naligned to the NDP-III at the time of audit.", "metadata": {"page": 392, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nI noted that the district had received unbudgeted for funding \nworth UGX. 254,695,138 \n \n\uf0b7 \nUnrecovered YLP and UWEP fund worth UGX. 873,681,064 \n \n12 \nAmuria DLG \n \nOpinion \nUn-Qualified \n \n\uf0b7 \nI noted a number of anomalies during review of the district \npension & salary payrolls such as; Failure to submit wage \nestimates to MoPs, \nover payment of salaries worth \nUGX.467,333, under payment of salaries worth UGX.607,250 \n \n\uf0b7 \nAdditionally, I observed that there was delayed access to payroll \nby seven (07) new employees and fourteen (14) pensioners;", "metadata": {"page": 392, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "failure to utilize wage funds of UGX.1,303,509,217.; un-deducted \nPAYE from political leaders\u2019 gratuity resulting in unpaid tax of \nUGX.12,243,797 and payment of one (01) staffs worth of \nUGX.5,393,465 off the IPPS \n \n\uf0b7 \nI noted a number of issues in the implementation of the \napproved budget such as;; under absorption of funds worth \nUGX.1,872,205,072 that was swept back to consolidated fund \naccount; under performance of the donor & releases from other \ngovernment \nunits \n \nworth \nUGX.2,531,940,210; \ndelayed \nsubmission of quarterly monitoring reports to OPM & MoFPED \n \n\uf0b7 \nI noted that the District has unauthorized loan deductions worth \nUGX.694,591,280.", "metadata": {"page": 392, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "382 \n \nat the time of audit \n \n\uf0b7 \nThe district received off-budget financing to a tune of UGX. .46, \n449,000 directly from UNFPA for undertaking activities which was \nnever declared to the PSST and as such no supplementary \nappropriation was issued as guided by the PSST. \n \n\uf0b7 \nThe district did not have an approved strategic plan that is \naligned to the NDP-III at the time of audit. \n \n\uf0b7 \nI noted that Note 19, Net Receivables, to the financial \nStatements, Amuria District had receivables of UGX.808,524,096 \nrelating to UWEP and YLP funds at the beginning of the current \nfinancial year. Further review revealed that the receivables \nincreased to UGX.1, 003,497,681. \n \n\uf0b7", "metadata": {"page": 393, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nI noted that funds totaling UGX.7,747,000 were irregularly \ndiverted from the activities on which they were budgeted and \nspent on other activities without seeking or obtaining the \nnecessary approvals. \n \n\uf0b7 \nI noted that that tracer medicines like Oxytocin, Coatem \n(Artemether + Lumefantrine) 24 Tablets 30 strips, Gloves, \nDetermine test kit and Mama kits worth UGX.4,615,129 was not \naccounted for by the Hospital Management. \n\uf0b7 \nI noted that out of 154 pieces of land, only 8 (5%) had titles. \n13 \nKumi MC \n \nOpinion \nUn-qualified \n\uf0b7 \nI noted a number of anomalies during review of the Municipal \npension & salary payrolls such as; Under absorption worth \nUGX.212,168,628;", "metadata": {"page": 393, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "under \npayment \nworth \nUGX.35,246,285; \nOutstanding payment worth UGX.2,256,948 meant for 5 \nemployees; an under payment of Pension, Gratuity worth \nUGX.33,299; Accrued payment worth UGX.13,261,366; payment \nof salaries worth UGX.5,189,355 to Nine (9) staffs who had either \nretired, transferred, absconded or died. \n \n\uf0b7 \nAdditionally, I observed an over remittance of UGX.13, 281,172; \nun-deducted PAYE from political leaders\u2019 gratuity resulting in \nunpaid tax of UGX.3, 889,440; delayed in accessing payroll and \npension payroll; Failed to prepare monthly wage, pension and \ngratuity performance analysis; Failed to submit quarterly returns", "metadata": {"page": 393, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "on payroll to MoPS; Salary payment worth UGX.5, 582,676 was \npaid to 12 staffs off the IPPS. Receivables worth UGX.1, \n132,227,490 relating to UWEP and YLP funds. \n \n\uf0b7 \nI noted that the entity does not have an approved strategic plan \nthat is aligned to the NDP-III at the time of audit; \nUnderperformance worth UGX.389,604,927; under Absorption \nUGX.297,497,115. \n \n\uf0b7 \nI noted that UGX.9, 350,000 was charged on items which did not \nreflect the nature of the expenditure. \n \n\uf0b7 \nI noted that all the pieces of land owned by the municipality", "metadata": {"page": 393, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "383 \n \nlacked Titles; the entity Lacked approved Physical Development \nPlan and detailed Plans; Underperformance of the public Health \nand Hygiene Promotion worth UGX.2,996,879; an outstanding \nbalance worth UGX.256,828,714 and UGX.148,878,891 from YLP \ngroups and UWEP groups respectively \n14 \nNgora DLG \n \nOpinion \nUn-Qualified \n\uf0b7 \nI noted a number of anomalies during review of the district \npension & salary payrolls such as Underpayment of salary worth \nUGX.39,027,007; irregular deduction of loan instalments worth \nUGX.834,880,411; pension and gratuity under/Non-payments of \nUGX.155,180,697; over remittance of salary deductions worth", "metadata": {"page": 394, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "UGX.100,096,201 and eighty-seven (87) vacant staff positions \n \n\uf0b7 \nAdditionally, I observed failure to utilize wage funds of UGX.0.4 \nBn; un-deducted PAYE from political leaders\u2019 gratuity resulting in \nunpaid tax of UGX.10,637,490 and payment of one (1) staff \nworth UGX.1,776,726 off the IPPS \n \n\uf0b7 \nI noted outstanding receivables of UGX.1,131,962,894 relating to \nUWEP and YLP \n \n\uf0b7 \nI noted a number of issues in the implementation of the \napproved budget such as; incomplete works; under absorption of \nfunds worth UGX.652,569,804 that was swept back to \nconsolidated fund account; under performance of the donor &", "metadata": {"page": 394, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "releases from other government units worth UGX 2,214,950,254; \n \n\uf0b7 \nThe DLG did not have an approved strategic plan that is aligned \nto the NDP-III at the time of audit \n \n\uf0b7 \nThe district mischarged expenditure worth UGX.44, 007,809 on \nwrong budget lines. \n \n\uf0b7 \nI noted that the entity did not prepare monthly wage, pension \nand gratuity performance analysis and did not submit quarterly \nreturns on payroll to MoPS. \n \n\uf0b7 \nI noted that out of the total receipts/ Warrants for Covid-relief \nfunds UGX.39,990,000 the entity did not absorb any Funds. \n \n\uf0b7 \nI noted Drug Stock Outs and Expired medicines in Ngora HC. IV \n \n\uf0b7 \nI noted Lack of land titles for the district land \n \n\uf0b7", "metadata": {"page": 394, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nI noted un recovered youth group funds worth UGX.930,137,986. \n \n15 \nSoroti Regional \nReferral Hospital \n \nOpinion \nUn-Qualified \n\uf0b7 \nI noted a number of anomalies during review of the hospital \npension & salary payrolls such as; Failure to submit wage \nestimates to MoPs, over payment of salary worth UGX 8,16,582; \nUnderpayment of salary worth UGX.1,039,133payment of salaries \nworth UGX 15,516,178 to seven (7) staffs that was no longer in \nservice and irregular deduction of loan instalments worth \nUGX.61,946,480.", "metadata": {"page": 394, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "384 \n \n\uf0b7 \nI noted an over/under payment for gratuity worth UGX8,109,089 \nand UGX.28,338,806 respectively \n \n\uf0b7 \nI noted under/over remittance of salary deductions worth \nUGX.6,037,243,966 and UGX.30,277 respectively \n \n\uf0b7 \nAdditionally, I observed that there was delayed access to payroll \nby thirteen (13) new employees \n \n\uf0b7 \nI noted under remittance of PAYE deductions worth5.2Mn \n \n\uf0b7 \nI noted under remittance of salary deductions to UCLA/UBA \nworth 0.84Mn \n \n\uf0b7 \nI noted issues in the implementation of the approved budget \nsuch as; under absorption of funds worth UGX.0.33 that was", "metadata": {"page": 395, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "swept back to consolidated fund account and partially quantified \nand un quantified planned output \n \n\uf0b7 \nThe hospital did not have an approved strategic plan that is \naligned to the NDP-III at the time of audit \n \n\uf0b7 \nThe district mischarged expenditure worth UGX.105Mn on wrong \nbudget lines. \n \n\uf0b7 \nI noted that 03 employees were paid a total of UGX.27.8 million \nwithout signed pay change reports. \n \n\uf0b7 \nI noted that the Hospital did not prepare monthly wage, pension \nand gratuity performance analysis and thus did not submit \nquarterly returns on payroll to MoPS. \n \n\uf0b7 \nI noted that the RRH received off-budget financing of \nUGX.1,652,793,876. \n \n\uf0b7 \nI noted. under absorption of COVID-19 relief funds worth", "metadata": {"page": 395, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "UGX.6,068,828 \n \n\uf0b7 \nI noted that the Hospital had stock outs of Essential medicines \nfor supportive treatment of Covid-19 during the year \n16 \nOtuke DLG \n \nOpinion \nUn-Qualified \n\uf0b7 \nI noted a number of anomalies during review of the district \npension & salary payrolls such as; delay to submit wage \nestimates to MoPs, accrued pension worth UGX.10,251,154; \nunder payments of pension and gratuity of UGX.5,374,525.; an \nunder remittance of salary deductions worth UGX.122,929,219. \n \n\uf0b7 \nI \nnoted \nPension, \nSalary \nand \nretentions \narears \nworth \nUGX.440,155,588 \n\uf0b7 \nI \nnoted \n \n \nun \nrecovered \nyouth \ngroup \nfunds \nworth \nUGX.898,559,384", "metadata": {"page": 395, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "385 \n \n\uf0b7 \nAdditionally, I observed failure to utilize wage funds of \nUGX.0.97Bn; un-deducted PAYE from political leaders\u2019 gratuity \nresulting in unpaid tax of UGX.9,454,537 and payment of two (2) \nstaffs worth UGX.13,339,271 off the IPPS \n \n\uf0b7 \nI noted issues in the implementation of the approved budget \nsuch as; absorption of funds worth UGX.0.58Bn that was swept \nback to consolidated fund account; under performance of the \ndonor & releases from other government units worth UGX \n1.452Bn \n \n\uf0b7 \nThe district did not have an approved strategic plan that is \naligned to the NDP-III at the time of audit. \n \n\uf0b7 \nI noted that the district did not prepare monthly wage, pension", "metadata": {"page": 396, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "and gratuity performance analysis and thus did not submit \nquarterly returns on payroll to MoPS. \n \n\uf0b7 \nI noted that one employee was paid a total of UGX.18 million \nwithout signed pay change reports. \n \n\uf0b7 \nI also noted un recovered YLP and UWEP funds worth \nUGX.1,514,330,911 \n \n\uf0b7 \nI noted that the district received off-budget financing from \ndonors \n \n\uf0b7 \nI noted that the district only recovered UGX.185,893,762 (31%) \nout of disbursed amount of UGX.597,983,600 (Interest Inclusive) \nleaving an outstanding amount of UGX.412,089,838 disbursed in \nfinancial \nYears \n2016/2017,2017/2018, \n2018/2019 \nand", "metadata": {"page": 396, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "2018/2019 \nand \n2020/2021. \n \nMoroto Branch \n\uf0b7 \nSummary of Key Findings \n01 \nMoroto DLG \n \nOpinion \nUnqualified \n\uf0b7 \nI noted a number of anomalies during review of the district \npension & salary payrolls such as; Failure to submit wage \nestimates to MoPs; payment of salaries worth UGX. 944,615 to \ntwo (2) staffs that was no longer in service \n \n\uf0b7 \nAdditionally, I observed that there was delayed access to payroll \nby two (02) new employees and nine (9) pensioners; failure to \nutilize wage funds UGX.1.9 Bn; un-deducted PAYE from political \nleaders\u2019 gratuity resulting in unpaid tax of UGX. 16,712,548 and", "metadata": {"page": 396, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "payment of one hundred twenty six (126) staffs worth UGX. \n113,636,936 off the IPPS \n \n\uf0b7 \nI noted Under payment of pension/ gratuity worth UGX 969,963 \n \n\uf0b7 \nOver remittance of salaries worth UGX. 42,443,292. \n \n\uf0b7 \nI noted that loan deductions amounting to UGX. 444 million \nrelating to 236 employees lacked letters of undertaking.", "metadata": {"page": 396, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "386 \n \n\uf0b7 \nI noted a number of issues in the implementation of the \napproved budget such as; incomplete works; partial and non-\nimplementation of activities worth UGX. 0.842Bn under \nabsorption of funds worth UGX. 2.173 Bn that was swept back to \nconsolidated fund account; under performance of the donor & \nreleases from other government units worth UGX.4,318,906,529 \ndelayed submission of quarterly monitoring reports to OPM & \nMoFPED \nUnder performance of the URF fund worth UGX 9,622,000 \n \n\uf0b7 \nI noted Failure to maintain a repayments ledger for all YIG\u2019s \n(Youth Interest Groups) \nI noted Failure to maintain a repayments ledger for all UWEP \nGroups. \n \n02 \nNapak DLG \n \nOpinion", "metadata": {"page": 397, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Opinion \nUnqualified \n \n\uf0b7 \nI noted a number of anomalies during review of the district \npension & salary payrolls such as; Failure to submit wage \nestimates to MoPs, Over payment of salaries worth \nUGX.25,677,705 \n \n\uf0b7 \nAdditionally, I observed that there was delayed access to payroll \nby fifteen (15) new employees and one (01) pensioners; failure \nto utilize wage funds of UGX. 0.7 Billion; un-deducted PAYE from \npolitical leaders\u2019 gratuity resulting in unpaid tax of UGX. UGX \n9,299,652. \n \n\uf0b7 \nI noted a number of issues in the implementation of the \napproved \nbudget \nsuch \nas; \nincomplete \nworks; \npartial", "metadata": {"page": 397, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "works; \npartial \nimplementation; under absorption of funds worth UGX. 2.406 Bn \nthat was swept back to consolidated fund account; under \nperformance of the donor & releases from other government \nunits worth UGX.88,076,485; delayed submission of quarterly \nmonitoring reports to OPM & MoFPED \n \n\uf0b7 \nOverpayment of salaries to 04 staff worth UGX. 263,929 arising \nfrom wrong scale. \n \n\uf0b7 \nI noted Under payment of pension/ gratuity worth UGX \n274,445,221 \n \n\uf0b7 \nOver remittance of salaries worth 212,895,556. \n \n\uf0b7 \nI noted that the entity\u2019s strategic plan was prepared but not yet \napproved by NDP \n \n\uf0b7", "metadata": {"page": 397, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nI noted mischarges worth UGX. 23,485,083 by the district \n03 \nAbim DLG \nQualified Opinion \n \n\uf0b7 \nI noted a number of anomalies during review of the district \npension & salary payrolls such as; Failure to submit wage \nestimates to MoPs; Overpayments of salaries worth UGX. \n2,172,750.", "metadata": {"page": 397, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "387 \n \n\uf0b7 \nAdditionally, I observed that there was delayed access to payroll \nby twenty one hundred two (102) new employees and six (06) \npensioners; failure to utilize wage funds of UGX.0.8 billion; un-\ndeducted PAYE from political leaders\u2019 gratuity resulting in unpaid \ntax of UGX. 8,922,417and payment of nineteen(19) staffs worth \nUGX 46,305,014 off the IPPS \n \n\uf0b7 \nI noted a number of issues in the implementation of the \napproved \nbudget \nsuch \nas; \nincomplete \nworks; \npartial \nimplementation of activities under absorption of funds worth \nUGX.1.3Bn that was swept back to consolidated fund account; \nunder performance of the donor & releases from other", "metadata": {"page": 398, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "government units worth UGX. 5.87Bn; delayed submission of \nquarterly monitoring reports to OPM & MoFPED \n \n\uf0b7 \n I noted that the district has an outstanding payables worth UGX. \n43,702,393 by the end of the year \n \n\uf0b7 \nOver payment of pension to 11 pensionaries worth UGX. \n2,318,376 arising from wrong scale. \n \n\uf0b7 \nI noted Misclassification of Expenditure worth UGX.296,881,279 \n \n\uf0b7 \nI noted that UGX 130,582,400 accrued within the year and had \nnot yet been paid to pensioners by the year end. \n \n\uf0b7 \nUnder remittance of salaries deduction worth to UGX. \n352,211,360. \n \n\uf0b7 \nI noted that funds amounting to 2 million relating to pension and", "metadata": {"page": 398, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "gratuity were incorrectly charged on salaries and pension codes. \n \n\uf0b7 \nI noted that the Abim district did not have an approved strategic \nplan that is aligned to NDP-III and therefore lacks a certificate of \ncompliance issued by National Planning Authority.. \n \n\uf0b7 \nI noted misclassification of expenditure UGX.296,881,279 by \nAbim DLG \n \n\uf0b7 \nI noted Lack of land title for Nyakwae Seed Secondary School. \n \n\uf0b7 \nI noted Irregular disbursement of UGX 175,113,737 for NUSAF \nfunds \n \n\uf0b7 \nI noted Award of a VAT inclusive contract to a non-VAT \nregistered supplier worth UGX. 610,546,414 with a VAT amount \nUGX. 109,898,354 \n \n\uf0b7", "metadata": {"page": 398, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nUnaccounted for funds worth 1,412,507,436 at year end \n \n\uf0b7 \nI noted Transfer from other Government units indicates \nwarranties \nin \nthe \nstatement \nof \nappropriation \nof \nUgx. \n848,098,183, Actual in the statement of appropriation and note 5", "metadata": {"page": 398, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "388 \n \nof UGX. 1,073,044,082 more than the amount warrantied by \nUgx. 224,945,899. The trial balance also indicate a figure of \nUgx.1,194,065 \n \n\uf0b7 \nI noted Statement of Cash Flow indicates a total amount from \noperating, \ninvesting \nand \nfinancing \nactivities \nas \nUgx.17,850,462,341 while the payment file indicates it as \nUgx.17,808,775,851 leading to an overstatement of Ugx. \n41,686,490. \n \n\uf0b7 \nI noted Unsupported receivables figure in the Statement Of \nFinancial Position of UGX. 1,683,003,314 as there is no schedule", "metadata": {"page": 399, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "of receivables attached to the financial statement. \n \n04 \nKaboong DLG \n \nOpinion \nUnqualified \n \n\uf0b7 \nI noted a number of anomalies during review of the district \npension & salary payrolls such as; Failure to submit wage \nestimates \nto \nMoPs, \nOver \npayment \nof \nsalaries \nworth \nUGX.12,181,796; failure to utilize wage funds of UGX. \nUGX.1.9billion.; un-deducted PAYE from political leaders\u2019 gratuity \nresulting in unpaid tax of UGX. 9,870,780 I noted a number of \nissues in the implementation of the approved budget such; \nincomplete works; partial implementation of activities, under \nabsorption of funds worth UGX.2.042Bn that was swept back to", "metadata": {"page": 399, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "consolidated fund account; delayed submission of quarterly \nmonitoring reports to OPM & MoFPED \n \n \n \n\uf0b7 \nThe district mischarged expenditure worth UGX.275, 847,736 on \nwrong budget lines. \n \n\uf0b7 \nI noted under remittance of salaries worth UGX. 55,693,284 \n \n\uf0b7 \nThe district mischarged expenditure worth UGX. 551,346,221 on \nwrong budget lines. \n \n\uf0b7 \nI noted 93 vacant positions at the district \n \n\uf0b7 \nI noted unbudgeted Funds from Ministry of Education and Sports \nto Kaabong DLG UGX.42,343,319 \n \n\uf0b7 \nI noted Irregular disbursement of NUSAF 3 Funds to M/S \nAgromax (U) Limited UGX.717,390,988", "metadata": {"page": 399, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "05 \nAmudat DLG \n \nOpinion \nUnqualified \n \n\uf0b7 \nI noted a number of anomalies during review of the district \npension & salary payrolls such as; Failure to submit wage \nestimates to MoPs, irregular deduction of loan instalments worth \nUGX.1,036,328; failure to utilize wage funds of UGX.0.851 billion \nun -deducted PAYE from political leaders\u2019 gratuity resulting in \nunpaid tax of UGX.6,432,420. and payment of two hundred two \n(222) staffs worth UGX.161,371,533 off the IPPS \n \n\uf0b7 \nI noted a number of issues in the implementation of the \napproved \nbudget \nsuch \nas; \nincomplete \nworks; \npartial", "metadata": {"page": 399, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "389 \n \nimplementation and quantified under absorption of funds worth \nUGX.4.3Bn that was swept back to consolidated fund account; \nunder performance of the donor & releases from other \ngovernment \nunits \n \nworth \nUGX.1,744,210,000; \ndelayed \nsubmission of quarterly monitoring reports to OPM & MoFPED \n \n \n \n\uf0b7 \nThe district mischarged expenditure worth UGX.275, 847,736 on \nwrong budget lines. \n \n\uf0b7 \nOver remittance of salaries worth UGX. 36,510,817 \n \n\uf0b7 \nI further noted that all loan deductions relating to 7 employees \ndid not have evidence of consent by the employees \n\uf0b7", "metadata": {"page": 400, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nUGX.101,273,688 was paid as residual arrears to 2 pensioners \nwho had not been verified (and thus not part of schedule) by \nMoFPED \n \n\uf0b7 \nI noted that the entity had not prepared and approved a \nstrategic plan that is aligned to the NDP-III at the time of audit. \n \n\uf0b7 \n I noted that district failed to recover worth UGX.390,319,125 of \nYLP funds \n \n\uf0b7 \nI noted that the district has outstanding balance worth \nUGX.390,319,125 from UWEP \n06 \nKotido DLG \n \nOpinion \nUnqualified \n\uf0b7 \nI noted a number of anomalies during review of the district \npension & salary payrolls such as; Failure to submit wage", "metadata": {"page": 400, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "estimates to MoPs; payment of salaries worth UGX.1,395,233 to \ntwo (2) staffs that was no longer in service. \n \n\uf0b7 \nAdditionally, I observed that there was delayed access to payroll \nby thirty nine (39) new employees; failure to utilize wage funds \nof UGX.4.127billion; un-deducted PAYE from political leaders\u2019 \ngratuity resulting in unpaid tax of UGX.8, 766,597. \n \n\uf0b7 \n Under remittance of salary deduction worth UGX.18, 888,478. \n \n\uf0b7 \nI noted that the district has unauthorized loan deductions worth \nUGX.196,780,103 \n\uf0b7 \nI noted that the Kotido district did not have an approved \nstrategic plan that is aligned to NDP-III by the time of audit. \n \n\uf0b7", "metadata": {"page": 400, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nI noted a number of issues in the implementation of the \napproved \nbudget \nsuch \nas; \nincomplete \nworks; \npartial \nimplementation and no quantified activities under absorption of \nfunds worth UGX.1,291,391,337that was swept back to \nconsolidated fund account; under performance of the donor & \nreleases \nfrom \nother \ngovernment \nunits \n \nworth \nUGX.1,603,270,000; delayed submission of quarterly monitoring \nreports to OPM & MoFPED \n \n \n \n07 \nKotido MC \n \n\uf0b7 \nI noted a number of anomalies during review of the municipal \ncouncil pension & salary payrolls such as; Failure to submit wage", "metadata": {"page": 400, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "390 \n \nOpinion \nUnqualified \nestimates to MoPs,; payment of salaries worth UGX.1,819,248 to \ntwo (2) staffs that was no longer in service ; failure to utilize \nwage funds of UGX.0.8 billion.; un-deducted PAYE from political \nleaders\u2019 gratuity resulting in unpaid tax of UGX.12,448,800 and \npayment of sixteen (16) staffs worth UGX.68,011,511 off the \nIPPS \n \n\uf0b7 \nI noted a number of issues in the implementation of the \napproved \nbudget \nsuch \nas;; \nincomplete \nworks; \npartial \nimplantation non quantified under absorption of funds worth \nUGX.211,565,285 873 that was swept back to consolidated fund", "metadata": {"page": 401, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "account; under performance of the donor & releases from other \ngovernment \nunits \n \nworth \nUGX.1,089,757,389; \ndelayed \nsubmission of quarterly monitoring reports to OPM & MoFPED \n \n \n \n\uf0b7 \nI noted Over payment of salaries worth UGX.882,243 to 25 staff \narising from wrong scale \n \n\uf0b7 \nI noted under remittance of salaries worth UGX. 43,787,620 \n \n\uf0b7 \nI noted that the Municipal Council has unauthorized loan \ndeductions worth UGX.14.77 million \n \n\uf0b7 \nI noted that the municipal council had not prepared and \napproved a strategic plan that is aligned to the NDP-III at the \ntime of audit. \n\uf0b7 \nThe \nmunicipal \nhas", "metadata": {"page": 401, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "municipal \nhas \nun \nrecovered \nUWEP \nfunds \nworth \nUGX.277,734,805. \n \n \n08 \nKarenga DLG \n \nOpinion \nUnqualified \n\uf0b7 \nI noted anomalies during review of the district pension & salary \npayrolls such as; seventy-three (73) vacant positions; failure to \nutilize wage funds of UGX.1.089Bn.; un-deducted PAYE from \npolitical leaders\u2019 gratuity resulting in unpaid tax of UGX.5,294,160 \nand payment of eight (8) staffs worth UGX. 28,433,650 off the \nIPPS; under remittance of employee salary deductions worth \nUGX.361,889,043 \n \n \n\uf0b7", "metadata": {"page": 401, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nI noted issues in the implementation of the approved budget \nsuch as; under absorption of funds worth UGX.636,616,391 that \nwas \nswept \nback \nto \nconsolidated \nfund \naccount; \nunder \nperformance of the donor & releases from other government \nunits worth UGX.4,959,037,208 \n \n\uf0b7 \nThe DLG did not have an approved strategic plan that is aligned \nto the NDP-III at the time of audit \n \n\uf0b7 \nThe district mischarged expenditure worth UGX.275, 847,736 on \nwrong budget lines \n \n\uf0b7 \nI noted that Karenga district did not include IPPS recurrent costs \nin its budget.", "metadata": {"page": 401, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "391 \n \n \n\uf0b7 \nI noted that the entity did not prepare monthly wage, pension \nand gratuity performance analysis and thus did not submit \nquarterly returns on payroll to MoPS. \n \n\uf0b7 \nI noted un quantified, partially implemented and un implemented \nplanned output \n \n\uf0b7 \n I noted underperformance of maintenance funds worth \nUGX.35,851,027 \n \n\uf0b7 \nI noted that administrative advances worth UGX.36,367,220 \nremained unaccounted for at year end \n \n09 \nNakapiripirit DLG \n \nOpinion \nUnqualified \n\uf0b7 \nI noted a number of anomalies during review of the district \npension & salary payrolls such as; Failure to submit wage \nestimates \nto", "metadata": {"page": 402, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "estimates \nto \nMoPs, \nOver \npayment \nof \nsalary \nworth \nUGX.6,225,884; \nUnderpayment \nof \nsalary \nworth \nUGX. \n120,957,229; pension worth UGX.102,547,496 and payment of \nresidual arrears to 17 pensioners (not part of schedule) worth \nUGX.228,354,584 \n \n\uf0b7 \nI noted outstanding receivables worth UGX.748,268,485 by year \nend \n\uf0b7 \nI noted outstanding payables worth UGX.204,060,122 by year \nend \n \n\uf0b7 \nAdditionally, I observed that there was delayed access to payroll", "metadata": {"page": 402, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "by four (4) new employees and five (5) pensioners; failure to \nutilize wage funds of UGX.0.8 Bn, un-deducted PAYE from \npolitical \nleaders\u2019 \ngratuity \nresulting \nin \nunpaid \ntax \nof \nUGX.11,064,133and payment of twenty-six (6) staff and two (2) \npensioners worth UGX.67,526,067 off the IPPS; over/under \nremittance of employee salary deductions worth UGX.12,510,739 \nand UGX.30,390,380 respectively \n \n\uf0b7 \nThe DLG did not have an approved strategic plan that is aligned \nto the NDP-III at the time of audit \n\uf0b7 \nI noted partially quantified, partially implemented and un \nimplemented planned output \n \n\uf0b7", "metadata": {"page": 402, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nI noted issues in the implementation of the approved budget \nsuch as; under absorption of funds worth UGX.387,179,529 that \nwas \nswept \nback \nto \nconsolidated \nfund \naccount; \nunder \nperformance of the donor & releases from other government \nunits worth UGX.3,798,701,446; \n \n\uf0b7 \nI noted that the district did not prepare monthly wage, pension \nand gratuity performance analysis and thus did not submit \nquarterly returns on payroll to MoPS \n\uf0b7 \n. \n\uf0b7 \nI noted that funds to the tune of UGX.37,212,320 were \nirregularly diverted from the activities on which they were", "metadata": {"page": 402, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "392 \n \nbudgeted and spent on other activities without seeking and \nobtaining the necessary approvals. \n \n\uf0b7 \nIrregularities in evaluation and award of contract to Ramiram \nCompany Ltd for the construction of a teachers\u2019 house in Doo \nPrimary under procurement reference NAKP543/WRKS/20-\n21/00003 \n\uf0b7 \nThe district entered into a VAT exclusive contract with Bole \nEngineering Ltd (TIN:) vide NAKP543/WRKS/20-21/00005 worth \nUGX.55,000,000 despite the company being registered for VAT \n10 \nMoroto MC \n \nOpinion \nUnqualified \n\uf0b7 \nI noted anomalies during review of the Municipal pension & \nsalary payrolls such as; Failure to submit wage estimates to MoPs", "metadata": {"page": 403, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Underpayment of salary worth UGX. 359,225; \n \n\uf0b7 \nAdditionally, I observed that there was delayed access to payroll \nby two (2) pensioners; failure to utilize wage funds of UGX.0.32 \nBn; un-deducted PAYE from political leaders\u2019 gratuity resulting in \nunpaid tax of UGX.3,314,340 over/under remittance of employee \nsalary \ndeductions \nworth \nUGX.5,297,009 \nand \nunder \nUGX.1,329,429 respectively \n \n\uf0b7 \nThe MC did not have an approved strategic plan that is aligned to \nthe NDP-III at the time of audit \n \n\uf0b7 \nI noted issues in the implementation of the approved budget \nsuch as; under performance of the donor & releases from other", "metadata": {"page": 403, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "government units worth UGX. 439,621,456; un quantified \nplanned output \n \n\uf0b7 \nI noted that the Municipal Council did not prepare monthly wage, \npension and gratuity performance analysis and thus did not \nsubmit quarterly returns on payroll to MoPS \n. \n\uf0b7 \nI noted that Expenditure amounting to UGX.40,544,000 remained \nunsupported as at the close of the financial year \n11 \nNabilatuk DLG \n \nOpinion \nUnqualified \n\uf0b7 \nI noted a number of anomalies during review of the district \npension & salary payrolls such as; Failure to submit wage \nestimates \nto \nMoPs, \nOver \npayment \nof \nsalary \nworth", "metadata": {"page": 403, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "salary \nworth \nUGX.41,886,731; Underpayment of salary worth UGX.88,251,765 \nirregular deduction of loan instalments of twenty-seven (27) \nemployees worth UGX.32,111,398 and excess loan deductions for \neighteen (18) employees worth UGX.23,960,268 \n \n\uf0b7 \nI noted payments to non-existent staff worth UGX.12,263,143 \n \n\uf0b7 \nI noted over/under remittance of employee salary deductions \nworth UGX.22,136,522 and UGX.28,681,822 respectively \n \n\uf0b7 \n I noted outstanding receivables worth UGX.306,557,669. \n \n\uf0b7 \nAdditionally, I observed that there was delayed access to payroll \nby twenty-seven (27) new employees; failure to utilize wage \nfunds of UGX.0.766 Bn; un-deducted PAYE from political leaders\u2019", "metadata": {"page": 403, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "393 \n \ngratuity resulting in unpaid tax of UGX.111,240 and payment of \nthirty-five (35) staff pensioners worth UGX.52,863,034 off the \nIPPS and residual arrears to two (2) staff UGX.3,128,128 \n \n\uf0b7 \nThe district did not have an approved strategic plan that is \naligned to the NDP-III at the time of audit \n \n\uf0b7 \nI noted a number of issues in the implementation of the \napproved budget such as; un implemented works on construction \nof Nataparengan piped water system and rehabilitation of \nLorukumo piped water system; under absorption of funds worth \nUGX.353,461,659 that was swept back to consolidated fund \naccount; under performance of the donor & releases from other \ngovernment units worth UGX.686,812,859;", "metadata": {"page": 404, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nI noted partially quantified and partially implemented planned \noutput \n \n\uf0b7 \nI noted that the district did not prepare monthly wage, pension \nand gratuity performance analysis and thus did not submit \nquarterly returns on payroll to MoPS \n \n\uf0b7 \nI noted that Nabilatuk District received off-budget financing to a \ntune of UGX.12,464,800 directly from the Drylands Projects \n \nMbale Branch \nSummary of Key Findings \n01 \nBulambuli DLG \n \nOpinion \nUnqualified \n\uf0b7 \nI noted a number of anomalies during review of the DLG pension \n& salary payrolls such as; delay to submit wage estimates to \nMoPs; Underpayment of payroll worth UGX.53, 413,352; Wrong", "metadata": {"page": 404, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "computation of gratuity worth net overpayment of UGX. \n4,908,163 and payment of salaries worth UGX.799, 094 to one \n(1) staff that was no longer in service. \n \n\uf0b7 \nI noted that the entity had receivables worth UGX 865,908,605 \nand had Payables worth UGX.5,000,000 at close of financial year \n \n\uf0b7 \nAdditionally, I observed that there was failure to utilize wage \nfunds of UGX.1.6Bn; un-deducted PAYE from political leaders\u2019 \ngratuity resulting in unpaid tax of UGX.16,798,690and payment \nof nine (9) pensioners worth UGX.170,017,059 off the IPPS; \npartially implemented output worth UGX. 0.863Bn and un \nimplemented output worth UGX.0.558Bn", "metadata": {"page": 404, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nI noted that the District LG did not prepare monthly wage, \npension and gratuity performance analysis report for submission \nto MoPS \n \n\uf0b7 \nI noted a number of issues in the implementation of the \napproved budget such as; shoddy works at Bumugusha - Sisiyi \nRoad, Gimayote - Malama Road, the boreholes; incomplete works \non Buyaga-Muyembe road, Bulaago and Bwikhonge Health \nCentre \nIIs \nto \nIIIs; \nunder \nabsorption \nof \nfunds \nworth \nUGX.2,653,035,652 that was swept back to consolidated fund", "metadata": {"page": 404, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "394 \n \naccount; under performance of the donor & releases from other \ngovernment units worth UGX.234,118787; non submission of \nquarterly monitoring reports to OPM & MoFPED; delayed \nsubmission of performance reports and unremitted lower local \ngovernment revenue worth UGX 47,216,000 \n \n\uf0b7 \nThe District mischarged expenditure worth UGX 103,936,059 on \nwrong budget lines. \n \n\uf0b7 \nI observed that key positions, including that of District engineer, \nDistrict production officer, District education officer, and District \nplanner had remained vacant by end of year. \n \n\uf0b7 \nI noted drug stock out at Bulaago Health Centre \n \n \n \n\uf0b7 \nI observed that the district lacked vital road equipment such as:", "metadata": {"page": 405, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Motor Grader, Wheel Loader, Bulldozer, Excavator and Cargo \nTruck \n \n\uf0b7 \nI noted an Under-deduction of LST worth UGX 214,800,000 and \nPAYE worth UGX 32,139,829. \n \n02 \nManafwa DLG \n \nOpinion \nUnqualified \n\uf0b7 \nI noted a number of anomalies during review of the DLG pension \n& salary payrolls such as; failure to submit wage estimates to \nMoPs, over payment of salaries worth UGX. 14,044,594; \nUnderpayment of salaries worth UGX. 10,735,580; Wrong \ncomputation of gratuity worth net overpayment of UGX. \n14,474,704 \n \n\uf0b7 \nI noted an over and under remittance of employee salary", "metadata": {"page": 405, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "deductions worth UGX 129,973,902 \n \n\uf0b7 \nI observed that there was failure to utilize wage funds worth \nUGX.0.890 billion \n \n\uf0b7 \nI noted under deduction of PAYE from employee salary worth \nUGX. 20,600,350. \n \n\uf0b7 \nI noted a number of issues in the implementation of the \napproved budget such as; under absorption of funds worth UGX. \n2,423,640,138 that was swept back to consolidated fund \naccount; under performance of the donor & releases from other \ngovernment units worth UGX.2,041,524,555; delayed submission \nof quarterly monitoring reports to OPM & MoFPED; partial \nimplementation of planned activities and under performance of \nfunds meant for maintenance worth UGX. 7,252,593 \n \n\uf0b7", "metadata": {"page": 405, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nThe DLG mischarged expenditure worth UGX. 476,473,064 on \nwrong budget lines \n \n\uf0b7 \nI however noted that UGX. 2,521,572 was paid as residual \narrears to 10 staff and 2 pensioners who had not been verified \n(and thus not part of schedule) by MoFPED.", "metadata": {"page": 405, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "395 \n \n\uf0b7 \nI noted that 2 employees were paid a total of UGX. 7,461,459 \nwithout signed pay change reports. \n\uf0b7 \nI noted that the DLG did not prepare monthly wage, pension and \ngratuity performance analysis and thus did not submit quarterly \nreturns on payroll to MoPS. \n \n\uf0b7 \n I noted outstanding payables worth UGX. 1,239,952,064. \n03 \nTORORO DLG \n \nOPINION: \nUNQUALIFIED \n\uf0b7 \nI noted a number of anomalies during review of the DLG pension \n& salary payrolls such as; Failure to submit wage estimates to \nMoPs, \nover \npayment \nof \nsalaries \nworth \nUGX.4,068,031;", "metadata": {"page": 406, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Underpayment of salaries worth UGX.15,716,191 and payment of \nsalaries worth UGX.57,446,500 to staffs that was no longer in \nservice accrued pension worth UGX.47,240,461 \n \n\uf0b7 \nI noted an over and under remittance of employee salary \ndeductions worth UGX.6,208,787 \n \n\uf0b7 \nAdditionally, I observed that there was delayed access to payroll \nby one hundred seventeen (117) new employees; failure to \nutilize wage funds of UGX.2.18 Bn, un-deducted PAYE from \npolitical leaders\u2019 gratuity resulting in unpaid tax of UGX. \n11,370,060 and payment of four (4) staffs worth UGX 3,683,801 \noff the IPPS \n \n\uf0b7 \nI noted a number of issues in the implementation of the", "metadata": {"page": 406, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "approved budget such as; failure to quantify planned output; \npartial and non- implementation of planned activities; under \nabsorption of funds worth UGX. 2,597,410,656 that was swept \nback to consolidated fund account; under performance of the \ndonor & releases from other government units worth UGX. \n11.87Bn. \n \n\uf0b7 \nThe DLG mischarged expenditure worth UGX.45,068,279 on \nwrong budget lines. \n \n\uf0b7 \nI noted that the DLG did not prepare monthly wage, pension and \ngratuity performance analysis reports and did not submit \nquarterly returns on payroll to MoPS \n \n\uf0b7 \nI noted payables worth UGX.335, 571,661 outstanding at year \nend. \n04 \nMBALE CITY \n \nOPINION: \nUnqualified \n\uf0b7", "metadata": {"page": 406, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Unqualified \n\uf0b7 \nI noted a number of anomalies during review of the city pension \n& salary payrolls such as; Failure to submit wage estimates to \nMoPs, \nOver \npayment \nof \nsalary \nand \npension \nworth \nUGX.810,144,208; Underpayment of salary and pension worth \nUGX.915,374,687; Wrong computation of salaries worth net \noverpayment of UGX.91,569,052; payment of salaries worth UGX \n30,376,995 to twenty six (26) staffs that were no longer in \nservice and irregular deduction of loan instalments of one \nhundred seventeen (117) worth UGX. 159,385,584. \n \n\uf0b7 \nI noted receivables from other UWEP, YLP and other debtors", "metadata": {"page": 406, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "396 \n \nworth UGX. 2,239,688,779 by the close of the financial year \nunder review. \n \n\uf0b7 \nI noted outstanding payables worth UGX 545,408,158 at the end \nof the financial year. \n \n\uf0b7 \nThe city did not have an approved strategic plan that is aligned \nto the NDP-III at the time of audit \n \n\uf0b7 \nAdditionally, I observed failure to utilize wage funds of UGX. \n1,235,588,920; un-deducted PAYE from political leaders\u2019 gratuity \nresulting in unpaid tax of UGX.3,015,540and payment of staffs \nand pensioners worth UGX.161,000,660 off the IPPS; unpaid \nsalaries worth UGX.161,000,660; payment of consolidated health", "metadata": {"page": 407, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "lunch allowance to ineligible staff worth UGX.2,170,750 and a net \nover payment of arrears of UGX.64,535,832 \n \n\uf0b7 \nI noted an over and under deduction of loans worth \nUGX.13,477,848 and UGX.14,453,773 respectively \n \n\uf0b7 \nI noted that the city did not prepare monthly wage, pension and \ngratuity performance analysis and did not submit quarterly \nreturns on payroll to MoPS. \n \n\uf0b7 \nI noted a number of issues in the implementation of the \napproved budget such as; partial and unquantified planned \noutput, partial and non-implemented planned output ; shoddy \nworks on Nambozo road incomplete works on Nambozo road; \nunder absorption of funds worth UGX.1,600,759,501 that was \nswept back to consolidated fund account; under performance of", "metadata": {"page": 407, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "the donor & releases from other government units worth \nUGX.3.17Bn; over absorption of funds worth UGX 73,268,000 \n \n\uf0b7 \nThe city mischarged expenditure worth UGX 65,785,703 on \nwrong budget line \n \n\uf0b7 \nI noted non regular maintenance of street lights \n05 \nBukwo DLG \n \nOpinion \nUnqualified \n\uf0b7 \nI noted a number of anomalies during review of the DLG pension \n& salary payrolls such as; Failure to submit wage estimates to \nMoPs, \nOver \npayment \nof \nsalary \nworth \nUGX.4,296,996; \nUnderpayment \nof \nsalary, \ngratuity \nand \npension \nworth", "metadata": {"page": 407, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "pension \nworth \nUGX.16,337,404 and delayed deletion of 4 staff from the payroll \nworth UGX.9,328,845 \n \n\uf0b7 \nI noted that the district did not prepare monthly wage, pension \nand gratuity performance analysis and thus did not submit \nquarterly returns on payroll to MoPS \n \n\uf0b7 \nAdditionally, I observed that there was delayed access to payroll \nby 0ne (1) new employee and nine (2) pensioners; failure to \nutilize wage funds of UGX.0.568 billion; un-deducted PAYE from \npolitical \nleaders\u2019 \ngratuity \nresulting \nin \nunpaid \ntax \nof", "metadata": {"page": 407, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "397 \n \nUGX.11,064,570 over and under remittance of employee salary \ndeductions \nworth \nUGX.1,789,798 \nand \nUGX.14,974,441 \nrespectively \n \n\uf0b7 \nI noted a number of issues in the implementation of the \napproved budget such as; delayed works at the HCIIs; under \nabsorption of funds worth UGX.2,421,073,740 that was swept \nback to consolidated fund account; under performance of the \ndonor \n& \nreleases \nfrom \nother \ngovernment \nunits \nworth \nUGX.6,333,457,050; partial and un quantified planned output \nand partial and un implemented planned output \n \n\uf0b7", "metadata": {"page": 408, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nThe district did not prepare annual monitoring plans neither were \nquarterly monitoring reports prepared and submitted. \n \n\uf0b7 \nI noted underperformance of budgeted funds for NUSAF-3 \nprojects \nworth \nUGX.183,000,000 \nand \nURF \nfunds \nworth \nUGX.10,265,009 that affected implementation of the programs \n \n\uf0b7 \nI observed that the district lacked vital road equipment like an \nexcavator, a bulldozer, a pedestrian roller and tampers/rammers. \n \n\uf0b7 \nI noted an under absorption of funds worth UGX 1,005,458,204 \nrelating to construction of the college, secondary school and \nupgrading of HCIIs \n \n\uf0b7 \nThe district lacked titles for 36 pieces of its land. \n06", "metadata": {"page": 408, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "06 \nSironko DLG \n \nOpinion \nUnqualified \n\uf0b7 \nI noted a number of anomalies during review of the district \npension & salary payrolls such as; Failure to submit wage \nestimates \nto \nMoPs, \nOver \npayment \nof \nsalary \nworth \nUGX.3,937,076; Underpayment of salary worth UGX.9,336,463 \ndelayed deletion of 3 staff from the payroll worth UGX.2,418,531 \nand 365 positions vacant \n \n\uf0b7 \nI noted residual arrear payments to one (1) pensioner who was \nnot on the schedule worth UGX.25,856,920 \n \n\uf0b7 \nI noted outstanding receivables worth UGX.1, 395,021,574 and", "metadata": {"page": 408, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "payables worth UGX.1, 271,747,912 by the end of the year. \n \n\uf0b7 \nAdditionally, I observed that there was delayed access to payroll \nby nineteen (19) new employees and two (2) pensioners; un-\ndeducted PAYE from political leaders\u2019 gratuity resulting in unpaid \ntax of UGX.13,980,570 over/under remittance of employee salary \ndeductions \nworth \nUGX.12,620,619 \nand \nUGX.18,207,521 \nrespectively \n \n\uf0b7 \nThe district did not have an approved strategic plan that is \naligned to the NDP-III at the time of audit \n \n\uf0b7 \nI noted partial and unquantified planned output, partial and non-\nimplemented planned output", "metadata": {"page": 408, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "398 \n \n\uf0b7 \nI noted issues in the implementation of the approved budget \nsuch \nas; \ndelayed \nworks \nat \nBuyobo \nHealth \nCentre, \nButeeza/Bumirisa Seed Secondary School; under performance of \nthe donor & releases from other government units worth \nUGX.31,073,887; \n \n\uf0b7 \nThe district lacked land tittles for 14 of its properties \n \n\uf0b7 \nI noted that the district did not prepare monthly wage, pension \nand gratuity performance analysis and thus did not submit \nquarterly returns on payroll to MoPS \n \n\uf0b7 \nI noted Un recovered YLP/Women groups funds worth UGX \n1,076,861,319 \n \n07 \nNamisidwa DLG", "metadata": {"page": 409, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Namisidwa DLG \n \nOpinion \nUnQualified \n\uf0b7 \nI noted a number of anomalies during review of the district \npension & salary payrolls such as; Failure to submit wage \nestimates to MoPs, payment of salaries worth UGX.9,737,931 to \ntwelve (12) staffs that were no longer in service over/under \nremittances \nof \nemployee \nsalary \ndeductions \nworth \nUGX.15,456,000 and UGX.9,368,000 respectively \n \n\uf0b7 \nAdditionally, I observed that there was delayed access to payroll \nby eleven (11) pensioners; failure to utilize wage funds of \nUGX.1.8 billion; un-deducted PAYE from political leaders\u2019 gratuity \nresulting in unpaid tax of UGX.10,343,040 and payment of", "metadata": {"page": 409, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "twenty twelve (12) staffs worth UGX.44,528,289 off the IPPS \n \n\uf0b7 \nI noted a number of issues in the implementation of the \napproved budget such as; Failure to Construct Namboko Seed \nSecondary School ; delayed works of Mukoto Seed Secondary \nSchool ; under absorption of funds worth UGX.1,965,728,111 \nthat was swept back to consolidated fund account; under \nperformance of the donor & releases from other government \nunits worth UGX.639,520,961; delayed submission of quarterly \nmonitoring reports to OPM & MoFPED; Un implemented \nprocurement \nplan \nworth \nUGX \n2,601,160,000 \nand \nUnderperformance of maintenance funds worth UGX.27,667,500. \n \n\uf0b7 \nDistrict received off-budget financing worth UGX.153,248,760", "metadata": {"page": 409, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "directly from Ministry of Health (MoH) \n \n\uf0b7 \nI noted outstanding receivables worth UGX 1,380,786,175 \n \n\uf0b7 \n \n\uf0b7 \nThe entity did not prepare and submit the annual monitoring \nplans to Moped, MoLG and NPA as required. \n\uf0b7 \nI noted Underperformance of UWEP/YLP funds worth of \nUGX.170,000,000 \n\uf0b7 \nI noted district land lacked titles \n08 \nBududa DLG \n \n\uf0b7 \nI noted a number of anomalies during review of the district \npension & salary payrolls such as; Failure to submit wage", "metadata": {"page": 409, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "399 \n \nOpinion \nUnqualified \nestimates to MoPs, over payment of salary worth UGX. \n40,955,029 Underpayment of salary due to wrong salary scales \nworth UGX 1,770,196 and Wrong computation of gratuity worth \nnet overpayment of UGX. 16,342,974; \n \n\uf0b7 \nI noted payment to twelve (12) employees without signed pay \nchange reports worth UGX. 33,563,249 \n \n\uf0b7 \nAdditionally, I observed that there was; failure to utilize wage \nfunds of UGX.0.386 billion; un-deducted PAYE from political \nleaders\u2019 gratuity resulting in unpaid tax of UGX. 25,271,520; \nover/under remittance of employee salary deductions wort UGX.", "metadata": {"page": 410, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "374,322,700 and UGX. 2,544,986 respectively and residual \narrears to 10 staff and 5 pensioners (not part of schedule) worth \nUGX. 53,269,453 \n \n\uf0b7 \nI noted a number of issues in the implementation of the \napproved budget such as; incomplete works on five Community \nAccess Roads (CARs); under absorption of funds worth UGX. \n3,358,629,901 that was swept back to consolidated fund \naccount; under performance of the donor & releases from other \ngovernment units worth UGX.12,509,500; Under performance of \nmaintenance funds worth UGX. 2,807,020 and un implemented \nprocurement plan worth UGX.357,489,000 \n \n\uf0b7 \nI noted an under absorption of preliminary expenditures worth \nUGX 327,911,000 \n \n\uf0b7", "metadata": {"page": 410, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nI noted partial and non-implemented planned output \n \n\uf0b7 \nThe district mischarged expenditure worth UGX. 53,269,453 on \nwrong budget lines. \n \n\uf0b7 \nIt was noted that the district did not conduct revenue \nassessment. \n \n\uf0b7 \nI noted that the lacked District signed MOUs for Donor funds \nreceived during the year worth UGX. 25,203,300 from United \nNations Children Fund (UNICEF) and World Health Organization \n(WHO). \n09 \nKIBUKU DLG \n \nOpinion \nUnqualified \n\uf0b7 \nI noted a number of anomalies during review of the district \npension & salary payrolls such as; Underpayment of pension \nworth \nUGX.97,316,845.; \npayment \nof \nsalaries", "metadata": {"page": 410, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "of \nsalaries \nworth \nUGX.7,336,993 to fourteen (14) staffs that was no longer in \nservice and over remittance of employee salary deductions \nUGX.430,578,979 \n \n\uf0b7 \nI noted outstanding payables worth UGX 128,739,122 at year \nend. \n \n\uf0b7 \n I observed that there was delayed access to payroll by twenty-\nseven (27) new employees and nineteen (19) pensioners and \n420 vacant staff positions", "metadata": {"page": 410, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "400 \n \n \n\uf0b7 \nI noted a number of issues in the implementation of the \napproved budget such as; I noted partial and unquantified \nplanned output, partial and non-implemented planned output; \nunder absorption of funds worth UGX 5,639,972,053 that was \nswept back to consolidated fund account; under performance of \nthe donor & releases from other government units worth \nUGX.789,212,932 and failed submission of quarterly monitoring \nreports to OPM & MoFPED \n \n\uf0b7 \nThe district mischarged expenditure worth UGX.47,252,328 on \nwrong budget lines \n \n\uf0b7 \nI noted that Kibuku Health Centre IV experienced drug stock outs \n \n\uf0b7 \nI noted that the entity failed to procure assorted medical \nequipment for upgraded HCs worth UGX.210,937,500", "metadata": {"page": 411, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nI noted that the entity failed to conduct pre-bid meetings for 23 \ncontracts as provided for in the tender documents \n\uf0b7 \n I noted unrecovered funds from Women groups worth \nUGX.522,692,690 \n ARUA BRANCH \nSummary of Key Findings \n01. \nObongi DLG \n \nOpinion \nUnqualified \n\uf0b7 \nI reviewed funds absorption and noted that UGX.4.6 billion \n(100%) was spent out of the total receipts of UGX.5.9 billion, \nresulting in an unabsorbed balance of UGX.1.3 billion. The \nunabsorbed balance was subsequently swept back to the \nconsolidated fund account. I advised the Accounting Officer to \nensure that the activities for which the un absorbed funds were \nmeant are rolled over and implemented in subsequent financial \nyear. \n\uf0b7", "metadata": {"page": 411, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "year. \n\uf0b7 \nI noted that the District made payroll deductions of UGX.123 \nmillion, but did not remit concurrently with the salary payments \nin 8 out of 12 months. On average, it delayed by 55 days. I \nadvised the Accounting Officer to always ensure that all \ndeductions to UCLA/UBA are remitted concurrently with salary \npayments. \n\uf0b7 \nThe ineffectiveness of the system may affect the integrity of the \nIPPS payroll. \n\uf0b7 \nI reviewed the approved Local revenue estimates for the financial \nyear 2020/2021 and noted that the District budgeted to collect \nUGX. \n463,890,000 \nduring \nthe \nyear \nbut \ncollected \nUGX.318,243,595 \nrepresenting \n(69%) \nperformance. \nThe", "metadata": {"page": 411, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "performance. \nThe \nshortfalls in Local Revenue collections of UGX.145,646,405 (31%) \nwere recorded in Local Service Tax, Land Fees , Business \nLicence, other tax revenues, administrative fees and Application \nFees. \n\uf0b7 \nI reviewed the District\u2019s revenue performance and noted the", "metadata": {"page": 411, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "401 \n \nfollowing; \n\uf0b7 \nThe Entity budgeted to receive UGX.17,548,360,000 as transfers \nfrom \nother \nGovernment \nUnits. \nHowever, \nonly \nUGX.14,007,769,263 (80%) was received. The Accounting Officer \nexplained that low Local Revenue performance was due to the \neffects of COVID 19 lockdown that affected the performance of \nmarkets and secondly the disaster of floods impacted negatively \non our major source of revenue, fisheries where most landing \nsites were flooded. \n\uf0b7 \nThe Entity budgeted to receive UGX.17,548,360,000 as transfers \nfrom \nother \nGovernment \nUnits. \nHowever, \nonly", "metadata": {"page": 412, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "However, \nonly \nUGX.14,007,769,263 (80%) was received. The Accounting Officer \nexplained that The under-performance of other government \ntransfers was due to low performance of DRDIP. The funding for \nDRDIP was only for approved sub projects which were generated \nby the beneficiary groups. \n\uf0b7 \nThe District budgeted to receive UGX. 655,424,300 as \nexternal/donor financing out of which UGX.630,174,440 (96 %), \nwas receivedThe Accounting Officer explained that External \nFinancing performed very well up to 96% and all planned \nactivities were implemented as planned. The difference of only \n4% has had no impact the implementation of the planned \nactivities \n\uf0b7 \nOut \nof \nthe \ntotal \nreceipts \nfor \nthe \nfinancial \nyear", "metadata": {"page": 412, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "financial \nyear \nof \nUGX.27,315,767,447, UGX.42,423,071,166 (92%) was spent by \nthe \nentity \nresulting \nin \nan \nunspent \nbalance \nof \nUGX. \n22,056,617,661 (81%). The unspent balance at the end of the \nfinancial year was subsequently swept back to the consolidated \nfund account. I advised the Accounting Officer to ensure that \nfunds for these activities are in subsequent year un implemented \nactivities rolled over and subsequently ensure the speedy \nimplementation. \n\uf0b7 \nI noted that the District received a total of UGX.22,103,714 as \ncapitation grant. I reviewed the bank statements sampled \nschools and noted that the funds were still on the school", "metadata": {"page": 412, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "accounts by 30th September, 2021 and had hence not been \nutilized. I advised the Accounting Officer to liaise with relevant \nauthorities and ensure that these funds are put to productive \nusage. \n02. \nZOMBO DLG \n \nOpinion \nUnqualified \n\uf0b7 \nI reviewed funds absorption and noted that UGX.12.35 billion \n(81.78%) was spent out of the total receipts of UGX.15.1 billion, \nresulting in an unabsorbed balance of UGX.2.75 billion. The \nunabsorbed balance was subsequently swept back to the \nconsolidated fund account. \n\uf0b7 \nA comparison of base pay in the IPPS payroll registers with the \nsalary structure for 2020/21, revealed that 23 staff were paid", "metadata": {"page": 412, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "402 \n \nusing wrong salary scales, leading to under payments of UGX \n0.932 million, contrary to Section B\u2013a (6) & (7) of the Uganda \nPublic Service Standing Orders, 2010. \n\uf0b7 \nI noted that UGX.20,116,483 was paid to 12 staff who had \neither retired, transferred, absconded or died. I advised the \nAccounting Officer to ensure prompt removal of staff from the \npayroll. \n\uf0b7 \nI noted that whereas UGX.3,328,551,409 was deducted from \nemployees\u2019 salaries to be remitted to different beneficiaries, \nUGX.3,319,064,736 was remitted, leading to an over and/or \nunder remittance amounting to UGX.7,357,520 and UGX \n6,415,791 respectively. The Accounting Officer explained that the", "metadata": {"page": 413, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "underpayment would be paid during subsequent remittances. \n\uf0b7 \nI noted that the District made unauthorized loan deductions \ntotaling UGX 680 million. The deductions were from 461 \nemployees that neither had letters of undertaking nor existed in \nthe \u201cactive deduction\u201d or the \u201cmy approval\u201d reports on the \nPDMS-Payroll Deduction Management System, operated by PCA-\nPayroll Consults Africa. \n\uf0b7 \nI noted that 13 newly recruited/ transferred employees delayed \nto access payroll, with delays ranging between 1-2 months. \nDelayed access to payroll leads to demotivation of the affected \nstaff and accumulation of salary arrears. \n\uf0b7 \nI noted that one pensioner; Okenga Abedican delayed to access \nthe pension payroll, with delays of 31 days. Delayed access to \nthe pension payroll leads to poor wellbeing of the affected \nretirees as well as accumulation of pension arrears. \n\uf0b7", "metadata": {"page": 413, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nI observed that there were variances of UGX.263,261,431 \nbetween the figures in the MoPS IPPS and district payroll \nregisters. I advised the Accounting Officer to ensure that the \ndistrict IPPS payroll registers are consistent with MoPS payroll \ndata. \n\uf0b7 \nIncluded in the Statement of Financial Position on page 7 of the \nFinancial Statements are receivables worth UGX.485,694,634 as \nsupported by Note 19 to the financial statements. The amount \nfor the previous financial year was UGX.193,836,559. The \namounts relate to advances to Youth and Women Interest \ngroups. I advised the Accounting Officer to continue sensitizing \nYouth Interest Groups and women groups to recover the funds. \n\uf0b7 \nI noted that the District had deposits worth UGX.396,301,510 \npresented in the Statement of Financial Position and disclosed in", "metadata": {"page": 413, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "note 25 to the financial statements. The figure increased by \nUGX.4,000,000 from UGX.394,301,510 which were recoveries of \nthe Youth Livelihood Programme (YLP) as recommended by \nInspectorate of Government. \n\uf0b7 \nI noted that though the district had prepared the Strategic plan,", "metadata": {"page": 413, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "403 \n \nit was still in draft form at the time of audit and certification from \nNPA had not been obtained. I advised the Accounting Officer to \nliaise with NPA to expedite the process of reviewing and approval \nthe Strategic Plan of the District. \n\uf0b7 \nI reviewed the approved Local revenue estimates for the financial \nyear 2020/2021 and noted that the District budgeted to collect \nUGX.1,040,800,000 \nduring \nthe \nyear \nbut \ncollected \nUGX.296,535,563 \nrepresenting \n(29%) \nperformance. \nThe \nshortfalls in Local Revenue collections of UGX.744,264,437 (71%) \nwere recorded in Local Service Tax, Land Fees , Business \nLicence, other tax revenues, administrative fees and Application \nFees. \n\uf0b7", "metadata": {"page": 414, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Fees. \n\uf0b7 \nThe District budgeted to receive UGX. 1,426,989,000 as \nexternal/donor financing out of which UGX.1,304,944 (0.09%), \nwas received. \n\uf0b7 \nOut \nof \nthe \ntotal \nreceipts \nfor \nthe \nfinancial \nyear \nof \nUGX.28,843,895,403, UGX.25,055,771,226 (97%) was spent by \nthe \ndistrict \nresulting \nin \nan \nunspent \nbalance \nof \nUGX.3,788,124,204. The unspent balance at the end of the \nfinancial year was subsequently swept back to the consolidated \nfund account. \n\uf0b7", "metadata": {"page": 414, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "fund account. \n\uf0b7 \nI noted that the district prepared annual monitoring plans dated \n02/08/2021, but had not been submitted to MoFPED, MoLG and \nNPA as required by the time of audit (10/09/2021). Further, the \ndistrict had not also submitted quarterly monitoring reports to \nthe Office of the Prime Minister and MoFPED as required by the \ntime of audit (10/09/2021). This practice is not only in \ncontravention of the circular instructions but also hinders efforts \nof timely monitoring of the implementation of the budget. \n\uf0b7 \nI noted that management submitted performance reports for Q1 \nand Q2 in time while performance reports for Q3 and Q4 were \nsubmitted after deadline given for submission of the reports. \n\uf0b7 \nIn addition, I did not obtain evidence to confirm that the \nAccounting Officer Prepared Monitoring Plans and reports which \nare important in ensuring that the budget performs as expected. \n\uf0b7", "metadata": {"page": 414, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nI noted delayed completion of Construction of Atyak Seed \nSecondary School under the UGIFT project, A joint supervision \nreport dated 18/5/2021 was reviewed and put the work so far \ndone at only 66% and cumulative total payments had been made \nof UGX 1,365,729,024 ( representing 65% of the contract sum) \nby end of year. By the time of the audit in September 2021, \nabout 5% of the works were still incomplete yet the contract had \nlong expired. \n\uf0b7 \nI noted that the District received a total of UGX.154,269,648. I \nreviewed the bank statements for sampled schools and noted \nthat the funds were still on the schools\u2019 accounts by 30th", "metadata": {"page": 414, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "404 \n \nSeptember, 2021 and had hence not been utilised. \n03. \nYUMBE DLG \n \nOpinion \nUnqualified \n\uf0b7 \nI reviewed payroll funds absorption and noted that UGX.22 billion \n(94%) was spent out of the total receipts of UGX.23.5 billion, \nresulting in an unabsorbed balance of UGX.1.44 billion. The \nunabsorbed balance was subsequently swept back to the \nconsolidated fund account. Under absorption of released funds \nresulted into failure to recruit the required staff. \n\uf0b7 \nA review of the pension payroll data and IFMS payments, \nrevealed variances between amounts on the payroll and \npayments to individual pensioners, leading to over payments of \nUGX.87,774,282 contrary to article 254 (1) & (3) of the 1995", "metadata": {"page": 415, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "constitution (as amended). The over payment of pension and \ngratuity led to over statement of pension expenditure. \n\uf0b7 \nA comparison of base pay in the IPPS payroll registers with the \nsalary structure for the financial year 2020/21, revealed that 51 \nstaff were paid using appropriate salary scale but wrong band \ncontrary to Section B\u2013a (6) & (7) of the Uganda Public Service \nStanding Orders, 2010. The Accounting Officer promised to \naddress it through monthly verification of the payroll. \n\uf0b7 \nI noted that UGX.11,772,809 was paid to 9 staff who had either \nretired, transferred, absconded or died. These were payment for \nservices not rendered to the District resulting in loss of funds to \nGovernment. I advised the Accounting Officer to ensure prompt \nremoval of ineligible staff from the payroll. \n\uf0b7 \nI noted that whereas UGX.4,904,248,620 was deducted from", "metadata": {"page": 415, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "employees\u2019 salaries to be remitted to different beneficiaries, \nUGX.4,898,616,110 was remitted, leading to an under remittance \nof UGX.5,632,510. I advised the Accounting Officer always \nensure that full remittances are done to the respective \nbeneficiaries. \n\uf0b7 \nI \nnoted \nthat \nthe \nDistrict \nmade \npayroll \ndeductions \nof \nUGX.1,362,978,294 million, but did not remit concurrently with \nthe salary payments in 5 out of 12 months. On average, it \ndelayed by 35 days. I advised the Accounting Officer to ensure \nthat all deductions to UCLA/UBA are remitted concurrently with \nsalary payments. \n\uf0b7", "metadata": {"page": 415, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "salary payments. \n\uf0b7 \nI noted delays in the remittance of PAYE deductions to URA of 3 \ndays, in the month of November where deduction was made on \n15/11/2020 and the remittance was made on 18/11/2020. The \nAccounting took note of the observation. \n\uf0b7 \nI noted that the District did not subject political leaders\u2019 gratuity \ntotaling to UGX.46,923,600 to the computation of PAYE in IPPS, \nleading to an under deduction of UGX.10,970,580, contrary to \nsection 19(1) (a) of the Income Tax Act. I advised the \nAccounting Officer to ensure that political leaders\u2019 gratuity is \nsubjected to tax by including in the gross taxable income when", "metadata": {"page": 415, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "405 \n \ncomputing PAYE. \n\uf0b7 \nI noted that 20 pensioners delayed to access the pension payroll, \nwith delays ranging between 4.5 months. I advised the \nAccounting Officer to ensure that pensioners promptly access the \npayroll and are subsequently paid. \n\uf0b7 \nI noted that 16 employees were paid a total of UGX.52 million \nwithout \nsigned \npay \nchange \nreports. \nThis \naffects \nthe \nintegrity/credibility of the payroll and creates an avenue for \npayroll abuse. \n\uf0b7 \nI noted that the District did not prepare monthly wage, pension \nand gratuity performance analysis and thus did not submit \nquarterly returns on payroll to MoPS, contrary to Paragraph 2.1 \nof Establishment Notice No. 1 of 2020. The Accounting Officer \ntook note of the observation and stated that action has been", "metadata": {"page": 416, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "initiated during Q1 of the FY 2021/22. \n\uf0b7 \nA comparison of the payroll register and IFMS payment file, I \nnoted that 3 pensioners were paid a total of UGX.75,420,453 off \nthe IPPS. The Accounting Officer explained that Pension and \ngratuity arrears had their schedule of payment; therefore, they \nwould not be paid through IPPS. \n\uf0b7 \nI noted that the district had not prepared and approved a \nstrategic plan that is aligned to the NDP-III at the time of audit. I \nadvise Management to urgently prepare and have approved a \nstrategic plan that is aligned to NDP-III to facilitate the \nachievement of the NDP objectives. \n\uf0b7 \nI reviewed the approved Local revenue estimates for the financial \nyear 2020/2021 and noted that the District budgeted to collect \nUGX. \n663,494,100 \nduring \nthe \nyear", "metadata": {"page": 416, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "the \nyear \nbut \ncollected \nUGX.445,457,586 representing (67%) performance. I advised the \nAccounting Officer to always ensure that NTR is collected as \nbudgeted. \n\uf0b7 \nThe District budgeted to receive UGX.54,077,677,212 (revised) \nas grants from the Treasury. I noted that, UGX.48,328,375,344 \nwas warranted/ received representing 89% performance. \n\uf0b7 \nThe District budgeted to receive UGX.38,231,319,640 as \ntransfers \nfrom \nother \nGovernment \nUnits. \nHowever, \nonly \nUGX.23,692,222,658 (62%) was received. \n\uf0b7 \nThe District budgeted to receive UGX.5,980,183,220 as", "metadata": {"page": 416, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "external/donor financing out of which UGX.2,031,658,591 (34%), \nwas received. \n\uf0b7 \nOut \nof \nthe \ntotal \nreceipts \nfor \nthe \nfinancial \nyear \nof \nUGX.74,531,220,778, UGX.57,130,020,926 (76.6%) was spent by \nthe \ndistrict \nresulting \nin \nan \nunspent \nbalance \nof \nUGX.17,401,199,852 (23.4%). The unspent balance at the end of \nthe financial year was subsequently swept back to the", "metadata": {"page": 416, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "406 \n \nconsolidated fund account. I advised the Accounting Officer to \nensure that the rolled over activities are given priority during \nimplementation. \n\uf0b7 \nI noted that Management submitted performance reports for Q2, \nQ3 and Q4 after the deadline. In addition, I did not obtain \nevidence to confirm that the Accounting Officer Prepared \nMonitoring Plans and reports which are important in ensuring \nthat the budget performs as expected. \n\uf0b7 \nContrary to Section 34 (1) of the Public Finance Management Act \n2015, I observed the District constructed two (2) operating \ntheaterstheatres worth UGX.666,903,480 at Ariwa Health Centre \n(HC) III and Baraka HC III in the financial year 2017/18 and \nwere not functional and without operating equipment by close of \naudit. The unutilized operating theatre denies services to the \ncommunity \n04. \nTEREGO DLG", "metadata": {"page": 417, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "TEREGO DLG \n \nOpinion \nUnqualified \n\uf0b7 \nTerego District Local Government (DLG), being a newly created \nDistrict curved out of Arua District, I noted that the payroll for \nthe year under review was managed by Arua DLG. As a result, \nthe pay roll analysis for Terego District was made under the audit \nof Arua DLG. \n \n\uf0b7 \nI, noted that although the district aligned its targets for the F/Y \n2020/2021 with the DDPIII and NDPIII, the District strategic plan \nhad not been approved. I advised the Accounting Officer to \nurgently prepare and approved a strategic plan that is aligned to \nNDP-III to facilitate the achievement of the NDP objectives \n \n\uf0b7 \nI reviewed the approved Local revenue estimates for the financial \nyear 2020/2021 and noted that the District budgeted to collect", "metadata": {"page": 417, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "UGX. 116,717,055 during the year but collected UGX.89,153,132 \nrepresenting (76%) performance. The shortfalls in Local Revenue \ncollections of UGX. UGX.27,563,923(24%) were recorded in Local \nService Tax, Land Fees , Business Licence, other tax revenues, \nadministrative fees and Application Fees. \n \n\uf0b7 \nThe District budgeted to receive UGX. 23,749,241,508 (revised) \nas grants from the Treasury. I noted that, UGX. 1,894,332.444 \nwas warranted/ received representing 8% performance. Revenue \nshortfalls affect the implementation of planned activities. \n \n\uf0b7 \nThe Entity budgeted to receive UGX.4,406,498,162 as transfers \nfrom other Government Units. However, only UGX.4,006,498,162 \n(90%)", "metadata": {"page": 417, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "(90%) \nwas \nreceived. \nRevenue \nshortfalls \naffected \nthe \nimplementation of planned activities. \n \n\uf0b7 \nThe District budgeted to receive UGX. 0.8Bn as external/donor \nfinancing out of which UGX. 0.4Bn (50%), was received. \nRevenue shortfalls affect the implementation of planned \nactivities. The Accounting Officer explained that, for external \nfinancing the key donor projects funded by UNHCR and UNICEF \nuse the calendar year for Budgeting and reporting as at the close", "metadata": {"page": 417, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "407 \n \nof the financial year 2020/2021 their Budget release was only for \nthe six months thus explaining the poor performance. \n \n\uf0b7 \nOut of the total receipts for the financial year of UGX. 6.5Bn, \nUGX. 5.9Bn (91%) was spent by the entity resulting in an \nunspent balance of UGX. 0.6 Bn (91%). The unspent balance at \nthe end of the financial year was subsequently swept back to the \nconsolidated fund account. The funds were meant for activities \nthat were not fully implemented by the end of the financial year \nand these include Salaries worth UGX.475,796,820. \n \n\uf0b7 \nDuring field Inspection carried out on service delivery areas at \nYinga HC III, I observed the following; \n\uf0d8 Fridge for storage of blood donated by IRC and UNICEF was", "metadata": {"page": 418, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "not installed consequently, cases of anaemia are referred to \nother facilities; \n\uf0d8 Motorised borehole that was installed by OXFAM had been \ndisconnected for six months; \n\uf0d8 the piped water system installed at the facility had broken \ndown for the period of six months; \n\uf0d8 As per interview of in-charge of the facility, the facility had \nnot been supplied drugs for two quarters leading to drug \nstock-outs. This led to the referral of cases that would have \nbeen handled at the facility; \n \n\uf0d8 The generator that was donated to the HC has never been \ninstalled during the two years it has been at the facility \n \n\uf0b7 \nI reviewed of the governance structures of Terego DLG and \nnoted that the district did not have a District Land Board in place. \nConsequently, the institutional land of the district was not titled. \nFurther, there were reports of land disputes as seen in the \nCouncil Minutes dated 21st May 2021.", "metadata": {"page": 418, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Council Minutes dated 21st May 2021. \n \n\uf0b7 \nI reviewed the execution of the annual procurement plan of \nTerego district for the year under review revealed that projects \nworth UGX.740,372,862 were not executed in the year, hence \nhindering service delivery to the intended beneficiaries. \n \n\uf0b7 \nI reviewed the implementation of the DRDIP project in the \ndistrict and observed that 16 beneficiary projects funded to the \ntune of UGX.1,620,066,939 had not yet been implemented. The \nAccounting Officer promised immediate action. I await the \noutcome of the Accounting Officers action. \n05. \nNEBBI DLG \n \nOpinion \nUnqualified \n\uf0b7 \nI noted that the District did not submit wage estimates to MoPS, \nas required. I advised the Accounting Officer to always submit", "metadata": {"page": 418, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "wage estimates to MoPs by 30th September of the preceding \nyear. \n \n\uf0b7 \nI reviewed funds absorption and noted that UGX.19,924,679,353 \n(92%) was spent out of the total receipts of UGX. \n21,572,885,359, resulting in an unabsorbed balance of UGX. \n1,648,206,006. The unabsorbed balance was subsequently swept", "metadata": {"page": 418, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "408 \n \nback to the consolidated fund account hence denying the use of \nfunds for other deserving service delivery areas. \n \n\uf0b7 \nI noted that whereas UGX.4,339,048,878 was deducted from \nemployees\u2019 salaries to be remitted to different beneficiaries only, \nUGX.4,333,222,745 was remitted, leading to an over remittance \nof UGX.4,849,344 and under remittance of UGX.10,675,477. \n \n\uf0b7 \nI noted that the District made unauthorized loan deductions \ntotaling UGX.87,617,577. The deductions were from 78 \nemployees that neither had letters of undertaking nor existed in \nthe \u201cactive deduction\u201d or the \u201cmy approval\u201d reports on the \nPDMS-Payroll Deduction Management System, operated by PCA-", "metadata": {"page": 419, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Payroll Consults Africa. \n \n\uf0b7 \nI compared the loan deductions in June 2021 on the IPPS payroll \nagainst the active deductions amounts on the Payroll Consults \nAfrica (PCA) system and discovered that there were 160 \ninstances where the amount on IPPS being deducted is either \nmore or less than the amount on the active deductions implying \nthat there is a weakness in the system of loan deductions where \nmany employees are either over paying for loans they picked or \nare underpaying. \n \n\uf0b7 \nIn a sample of 14 teachers selected, I noted that the \ndistrict/votes were not affecting annual salary increments on \nemployee salaries. This may lead to demotivation of staff. \n \n\uf0b7 \nI noted that the district had not yet prepared a strategic plan at \nthe time of audit, I advised the Accounting Officer to ensure that \nthe strategic plan is implemented upon approval.", "metadata": {"page": 419, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nI advised the Accounting Officer to ensure that the strategic plan \nis implemented upon approval. I advised the Accounting Officer \nto always ensure that NTR is collected as budgeted. The district \nbudgeted to receive UGX.6, 748,502,080 as transfers from other \nGovernment Units. However, only UGX.1,325,146,185 (20%) was \nreceived. Revenue shortfalls affected the implementation of \nplanned activities. \n \n\uf0b7 \nThe \ndistrict \nbudgeted \nto \nreceive \nUGX.2,213,127,500 \nas \nexternal/donor financing, out of which UGX.261,434,917 (12%), \nwas received. Revenue shortfalls affect the implementation of \nplanned activities. \n \n\uf0b7", "metadata": {"page": 419, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nDistrict failed spent fund balance of UGX.681, 679,315 meant for \nStart of construction of Ndhew Seed Secondary School, Drilling of \nboreholes, and Payment of gratuity. \n \n\uf0b7 \nI noted that the district submitted performance reports for all the \nquarters after the deadlines given for submission of the reports, \nIn addition, I did not obtain evidence to confirm that the \nAccounting Officer Prepared Monitoring Plans and reports which", "metadata": {"page": 419, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "409 \n \nare essential in ensuring that the budget performs as expected. \n \n\uf0b7 \nFrom my review of the annual performance report, I noted that \nsome outputs were not captured in the performance report, \nthese included Purchase and supply of ICT Equipment for Atego \nSeed Secondary, and Purchase and supply of laboratory \nequipment to Atego Seed Secondary School. \n \n\uf0b7 \nI noted that the District received a total of UGX.48,565,353. I \nreviewed the bank statements sampled schools and noted that \nthe funds were still on the school accounts by 30th September, \n2021 and had hence not been utilized. \n \n06. \nNEBBI MC \n \nOpinion \nUnqualified \n\uf0b7 \nI noted that the Municipal Council did not submit wage estimates \nto MoPs, as required. I advised the Accounting Officer to always", "metadata": {"page": 420, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "submit wage estimates to MoPs by 30th September of the \npreceding year. \n \n\uf0b7 \nA review of the pension payroll data and IFMS payments, \nrevealed variances between amounts on the payroll and \npayments to individual pensioners, leading to over payments of \nUGX. 4,584,882 contrary to article 254 (1) & (3) of the 1995 \nconstitution (as amended). I further noted that there was an \nunder payment of UGX.32,297,600 as well. The Accounting \nOfficer acknowledged the shortcoming and promised future \naction. \n \n\uf0b7 \nA comparison of base pay in the Integrated Personnel and Payroll \nSystem (IPPS) payroll registers with the salary structure for \n2020/21, revealed that 6 staff were paid using wrong salary \nscales, leading to over payments of UGX.3,190,260 contrary to \nSection B\u2013a (6) & (7) of the Uganda Public Service Standing", "metadata": {"page": 420, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Orders, 2010. \n \n\uf0b7 \nI noted that whereas UGX.722,140,725 was deducted from \nemployees\u2019 salaries to be remitted to different beneficiaries, \nUGX.703,333,159 was remitted, leading to an under remittance \nof UGX.18,807,566. \n \n\uf0b7 \nI noted that the Municipal Council made unauthorized loan \ndeductions totaling UGX.38,493,134. The deductions were from \n24 employees that neither had letters of undertaking nor existed \nin the \u201cactive deduction\u201d or the \u201cmy approval\u201d reports on the \nPDMS-Payroll Deduction Management System, operated by \nPayroll Consults Africa (PCA). \n \n \n\uf0b7 \nI noted that the Municipal Council did not subject political", "metadata": {"page": 420, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "leaders\u2019 gratuity totaling to UGX.10,962,600 to the computation \nof PAYE in IPPS, leading to an under deduction of UGX.3,288,780 \ncontrary to section 19 (1) (a) of the Income Tax Act. \n \n\uf0b7 \nI noted that, there was minimal movement in receivables as only", "metadata": {"page": 420, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "410 \n \nUGX.4,156,000 was recovered from the reported amount of \nUGX.528,709,420 previously, implying no significant effort was \nput into recovery. \n \n\uf0b7 \nI noted that the Municipal Council had not prepared and \napproved a strategic plan that is aligned to the NDP-III. \n \n\uf0b7 \nI noted budget underperformance of UGX.2,132,255,571 from \ngovernment grants and local revenue which affected activity \nimplementation \n \n\uf0b7 \nThe municipality failed to spent funds worth UGX.522,335,106 \nand the unspent balance at the end of the financial year was \nsubsequently swept back to the consolidated fund account. \n \n\uf0b7 \nI noted that UGX.20,661,647 was charged on items which did not", "metadata": {"page": 421, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "reflect the nature of the expenditure. I advised the Accounting \nOfficer to always ensure that the correct codes are charged and \nseek approvals for any virement or reallocations \n07. \nMARACHA DLG \n \nOpinion \nUnqualified \n\uf0b7 \nI noted that the District did not submit wage estimates to MoPS, \nas required. I advised the Accounting Officer to always submit \nwage estimates to MoPs by 30th September of the preceding \nyear. \n \n\uf0b7 \nI reviewed funds absorption and noted unabsorbed balance of \nUGX. 1.2 billion meant for payment mostly pensioners due to \nslow processing of pension benefits by the beneficiaries \n \n\uf0b7 \nA comparison of base pay in the IPPS payroll registers with the \nsalary structure for 2020/21, revealed that 4 staff were paid \nusing wrong salary scales, leading to over payments of", "metadata": {"page": 421, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "UGX.25,197,900, and under payment of UGX.544,068 contrary to \nSection B\u2013a (6) & (7) of the Uganda Public Service Standing \nOrders, 2010. The Accounting Officer acknowledged the audit \nobservation and promised to follow the audit recommendation. \n \n\uf0b7 \nI noted that UGX.11, 634,613 was paid to 32 staff who had \neither retired, transferred, absconded or died. I advised the \nAccounting Officer to ensure prompt removal of staff from the \npayroll and recover payments of salaries to staff who have left \nactive employment. \n \n\uf0b7 \nI noted that whereas UGX3,361,569,932 was deducted from \nemployees\u2019 salaries to be remitted to different beneficiaries, \nUGX3,358,721,257 was remitted, leading to an over remittance", "metadata": {"page": 421, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "of UGX.6,609,552 and under remittance of UGX.9,458,227, I \nadvised the Accounting Officer to reconcile IPPS deductions \nagainst IFMS remittances and recover the over remittances and \npay the under remittances. \n \n\uf0b7 \nI noted that the District made unauthorized loan deductions \ntotaling UGX.100.4 million. The deductions were from 93 \nemployees that neither had letters of undertaking nor existed in", "metadata": {"page": 421, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "411 \n \nthe \u201cactive deduction\u201d or the \u201cmy approval\u201d reports on the \nPDMS-Payroll Deduction Management System, operated by PCA-\nPayroll Consults Africa. \n \n\uf0b7 \nI noted that the District did not subject political leaders\u2019 gratuity \ntotaling to UGX.37,848,204 to the computation of PAYE in IPPS, \nleading to an under deduction of UGX.11,377,861, contrary to \nsection 19(1) (a) of the Income Tax Act. \n \n\uf0b7 \nI noted that the District did not prepare monthly wage, pension \nand gratuity performance analysis and thus did not submit \nquarterly returns on payroll to MoPS, contrary to Paragraph 2.1 \nof Establishment Notice No. 1 of 2020. \n \n\uf0b7 \nI noted that 3 staff were paid a total of UGX.15 Million off the", "metadata": {"page": 422, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "IPPS. I advised the Accounting Officer to ensure that salaries, \npension and gratuity is processed and paid through the IPPS. \n \n\uf0b7 \nI noted that the strategic plan of Maracha District was still not \napproved and therefore it was still in draft form. \n \n\uf0b7 \nI reviewed the approved Local revenue estimates for the financial \nyear 2020/2021 and noted that the District budgeted to collect \nUGX.215,093,000 during the year but collected UGX.143, \n183,859 representing (66.6%) performance. The shortfalls in \nLocal Revenue collections of UGX.71,909,141 (33.4%) were \nrecorded in Land fees, business licenses, other tax revenues and \nAdministrative fees and licenses. Revenue shortfalls affected the \nimplementation of planned activities. \n \n\uf0b7 \nThe Entity budgeted to receive UGX. 8, 429,617,471 as transfers", "metadata": {"page": 422, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "from other Government Units. However, only UGX. 139, 292,268 \n(1.7%) \nwas \nreceived, \nRevenue \nshortfalls \naffected \nthe \nimplementation of planned activities. \n \n\uf0b7 \nThe Entity did not also submit quarterly monitoring reports to the \nOffice of the Prime Minister and MoFPED as required. I advised \nthe Accounting Officer to ensure that monitoring plans and \nreports are timely submitted accordingly. \n \n\uf0b7 \nContrary to Regulation 47 of the PPDA (Contract) Regulations, \n2014, the entity on 29th June 2021 paid UGX.178, 391,142 to \nthe contractor upgrading Odupiri HC II to HC III without an \ninterim payment certificate. On inspection in September 2021, \nOn physical inspection, I noted that the construction was still at \nring beam stage hence severely delayed and the contractor was", "metadata": {"page": 422, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "not on site and therefore there was no construction works. \n \n\uf0b7 \nI noted that the District received a total of UGX.166,590,846 I \nreviewed the bank statements sampled schools and noted that \nthe funds were still on the school accounts by 30th September, \n2021 and had hence not been utilised. \n08. \nMADI-OKOLLO DLG \n\uf0b7 \nI noted that the District did not submit wage estimates to MoPs,", "metadata": {"page": 422, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "412 \n \n \nOpinion \nUnqualified \nas required. The submission was made late. The Accounting \nOfficer promised to handle this issue as per the requirement in \nthe subsequent years. \n \n\uf0b7 \nI reviewed payroll funds absorption and noted that UGX.7.4 \nbillion (73%) was spent out of the total receipts of UGX.10.18 \nbillion, resulting in an unabsorbed balance of UGX.2.78 billion. I \nadvised the Accounting Officer to consider the unimplemented \nactivities in the next work plan. \n \n\uf0b7 \nA comparison of base pay in the IPPS payroll registers with the \nsalary structure for 2020/21, revealed that 17 staff were paid \nusing wrong salary scales, leading to under payments of UGX. \n2.1 million, contrary to Section B\u2013a (6) & (7) of the Uganda", "metadata": {"page": 423, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Public Service Standing Orders, 2010. \n \n\uf0b7 \nI noted that whereas UGX.1,901,582,442 was deducted from \nemployees\u2019 salaries to be remitted to different beneficiaries, \nUGX.1,868,292,549 was remitted, leading to an over and under \nremittance of UGX.28,854,515 and UGX.62,144,408 respectively \n \n\uf0b7 \nI noted that the District made unauthorized loan deductions \ntotaling UGX.108million from 55 employees that neither had \nletters of undertaking nor existed in the \u201cactive deduction\u201d or the \n\u201cmy \napproval\u201d \nreports \non \nthe \nPDMS-Payroll \nDeduction \nManagement System, operated by PCA-Payroll Consults Africa \n \n\uf0b7", "metadata": {"page": 423, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nI noted that the District did not subject political leaders\u2019 gratuity \ntotalling to UGX 40,202,400 to the computation of PAYE in IPPS, \nleading to an under deduction of UGX 12,439,426, contrary to \nsection 19 (1) (a) of the Income Tax Act. The \n \n\uf0b7 \nI noted that 32 newly recruited/ transferred employees and 5 \npensioners delayed to access payroll, delayed access to payroll \nleads to demotivation of the affected staff and accumulation of \nsalary arrears. \n \n\uf0b7 \nFrom a comparison of the payroll register and IFMS payment file, \nI noted that 14 staff and were paid a total of UGX 19,228,208 off \nthe IPPS. This control weakness creates an opportunity for \npayment of salaries and pension to non-eligible persons, hence \nloss of funds to Government.", "metadata": {"page": 423, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nI noted that the entity had not prepared and approved a \nstrategic plan that is aligned to the NDP-III. \n \n\uf0b7 \nI reviewed the approved Local revenue estimates for the financial \nyear 2020/2021 and noted that the District budgeted to collect \nUGX. \n302,248,400 \nduring \nthe \nyear \nbut \ncollected \nUGX.209,081,450 \nrepresenting \n(69%) \nperformance. \nThe", "metadata": {"page": 423, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "413 \n \nshortfalls in Local Revenue collections of UGX. UGX. 93,166,950 \n(31%) were recorded in Land fees, business licenses, other tax \nrevenues and Administrative fees and licenses. \n\uf0b7 \nI noted that Management submitted performance reports for Q1, \nQ2, Q3 and Q4 after the deadline given for submission of the \nreports. In addition, I did not obtain evidence to confirm that the \nAccounting Officer Prepared Monitoring Plans and reports which \nare important in ensuring that the budget performs as expected. \nThe Accounting Officer admitted the shortcoming and promised \nto address the matter. \n \n\uf0b7 \nI noted that there was a general delay in the implementation of \nNUSAF 3 sub- projects without any justification. \n \n\uf0b7 \nMadi-Okollo District contracted M/s TIC Lokere Enterprises Ltd", "metadata": {"page": 424, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "for the rehabilitation of Inde mile 10 Yoro base camp feeder road \nunder DRDIP programme at a cost of UGX.1, 238,943,750. \nHowever, I noted that there was delayed Completion of the \ncontract, Failure to install culverts at critical points of the road \nand Poorly installed culverts. \n \n\uf0b7 \nI noted that advances of UGX. 52,332,500 remained not \naccounted for, at year end. The funds were advanced to staff to \ncarry out various activities. In the absence of the relevant \naccountability documents, it was not possible to confirm that the \nfunds were used for the intended purposes. \n \n\uf0b7 \nI noted that there were un-utilized Market at Rhino Camp. The \nMarket \nwas \nconstructed \nat \nan \nestimated \ncost \nof", "metadata": {"page": 424, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "cost \nof \nUGX.700,000,000. The market lock ups had been turned into \nresidential apartments instead and the market stalls have been \nabandoned and now only used for drying cassava.4 \n09. \nKOBOKO MC \n \nOpinion \nUnqualified \n\uf0b7 \nI noted that the Municipal Council did not submit wage estimates \nto MoPs by 30th September of the preceding year as required. \n \n\uf0b7 \nThe Municipal did not absorb wage funds worth UGX.0.33 billion. \n \n\uf0b7 \nThe Council had outstanding domestic arrears worth UGX \n113,354,578 that accrued within the year \n \n\uf0b7 \nI noted that the Municipal Council made unauthorized loan \ndeductions totaling UGX. 18,148,668. from 16 employees that \nneither had letters of undertaking nor existed in the \u201cactive", "metadata": {"page": 424, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "deduction\u201d or the \u201cmy approval\u201d reports on the PDMS-Payroll \nDeduction Management System, operated by PCA-Payroll \nConsults Africa. \n \n\uf0b7 \nI noted that 6 pensioners delayed to access the pension payroll \n \n\uf0b7 \nI noted that 5 staff was paid a total of UGX. 6,488,549 off the \nIPPS. \n \n\uf0b7 \nI noted that the Municipal Council did not have an approved plan", "metadata": {"page": 424, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "414 \n \nneither did it have certification of the plan by NPA. \n \n\uf0b7 \nI noted underperformance in all revenue sources totaling UGX. \n4,384,175,589 that affected implementation of planned activities \nat the council I further noted delayed submission of quarterly \nperformance reports to OPM and MoFPED \n \n10. \nARUA REGIONAL \nREFERRAL HOSPITAL \n \n \nOpinion \nUnqualified \n\uf0b7 \nThrough re-computation of gratuity benefits, I noted that there \nwere variances of over payments of UGX.21,706,000 and under \npayment of UGX.19,700,433. I also re-computed pension \nbenefits, and I further noted that there were variances of over", "metadata": {"page": 425, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "payment of UGX.5, 798,629 and under payments of UGX.10, \n401,528. The Accounting Officer explained that gratuity \npayments are automatically computed through the IPPS system. \nConsultations with system officers in MOPS were underway to \nhave the error rectified. \n \n\uf0b7 \nI noted that UGX.6,659,448 was paid to 03 staff who had been \ntransferred to other entities. These were payment for services \nnot rendered to the Hospital, resulting in loss of funds to \nGovernment. \n \n\uf0b7 \nI noted that deductions to UCLA/UBA were concurrently remitted \nas salary was paid except for the month of April, 2021 where \nthere was no remittance at all yet UGX.16,434,444 was deducted \n \n\uf0b7 \nI noted that the Hospital did not include Hospital Management", "metadata": {"page": 425, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Board Member\u2019s retainer fees of UGX.33,600,000 in the \ncomputation of PAYE leading to under deduction of PAYE of \nUGX.10,080,000 contrary to section 19(1) (a) of the Income Tax \nAct. \n \n\uf0b7 \nI noted that the Hospital did not prepare monthly wage, pension \nand gratuity performance analysis and thus did not submit \nquarterly returns on payroll to MoPS, contrary to Paragraph 2.1 \nof Establishment Notice No. 1 of 2020. \n \n\uf0b7 \nThe Hospital had outstanding (unsettled) domestic arrears worth \nUGX. 1,255,228,566 by close of financial year \n \n\uf0b7 \nI noted that the Hospital had not prepared and approved a \nstrategic plan that is aligned to the NDP-III. \n \n\uf0b7 \nI noted the Hospital received off-budget financing from Ministry", "metadata": {"page": 425, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "of Health and development partners for undertaking various \nactivities not budgeted to a tune of UGX.1,925,620,637 which \nwas not transferred to the consolidated fund as required by the \nlaw. \n \n\uf0b7 \nThe Hospital Ambulance number UG6812M had been stolen from \nthe hospital yard. By close of the audit, the ambulance had not \nbeen recovered by management. Also the value of the \nambulance had not been updated in the assets register as", "metadata": {"page": 425, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "415 \n \nrequired. \n \n\uf0b7 \nI noted that the Hospital did not have a land title for Hospital \nland plot 43 \u2013 Hospital cell with an estimated size of 13.478 acres \nwhich it currently occupied. There was no evidence of ownership \nof property and there was no guarantee that the land was free \nfrom encroachment. \n11. \nMOYO DLG \n \n \nOpinion \nUnqualified \n \n\uf0b7 \nI noted that UGX.12,035,376 was paid to 8 staff who had either \nretired, transferred, absconded or died. I advised the Accounting \nOfficer to ensure prompt removal of staff from the payroll. \n \n\uf0b7 \nI noted that whereas UGX.2,467,253,134 was deducted from \nemployees\u2019 salaries to be remitted to different beneficiaries,", "metadata": {"page": 426, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "UGX.2,499,884,543 was remitted, leading to an under remittance \namounting \nto \nUGX.519,984 \nand \nover \nremittance \nof \nUGX.33,151,393. I advised the Accounting Officer to ensure \nprompt removal of staff from the payroll. \n \n\uf0b7 \nI noted that whereas UGX.2,467,253,134 was deducted from \nemployees\u2019 salaries to be remitted to different beneficiaries, \nUGX.2,499,884,543 was remitted, leading to an under remittance \namounting \nto \nUGX.519,984 \nand \nover \nremittance \nof \nUGX.33,151,393.", "metadata": {"page": 426, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nI noted that the District did not subject political leaders\u2019 gratuity \ntotalling to UGX.28,087,200 to the computation of PAYE in IPPS, \nleading to an under deduction of UGX.8,520,960 contrary to \nsection 19(1) (a) of the Income Tax Act. \n \n\uf0b7 \nI noted that 6 pensioners delayed to access the pension payroll, \nwith delays ranging between 1-2 months. Delayed access to the \npension payroll leads to poor wellbeing of the affected retirees as \nwell as accumulation of pension arrears. \n \n\uf0b7 \nI noted that the District/Municipal Council did not prepare \nmonthly wage, pension and gratuity performance analysis and \nthus did not submit quarterly returns on payroll to MoPS, \ncontrary to Paragraph 2.1 of Establishment Notice No. 1 of 2020. \n \n\uf0b7", "metadata": {"page": 426, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nRevenue underperformance of UGX.9,484,876,432 due to \nshortfall in NTR, government transfers and donor funding \n \n\uf0b7 \nThe district did not absorb funds worth of UGX.940, 729,263 and \nthese funds were subsequently swept back to the consolidated \nfund account. \n \n\uf0b7 \nI further noted that funds received under USMID totaling to \nUGX.1,342,227,081 were not absorbed and as such swept back \nto the consolidated fund \n12. \nKOBOKO DLG \n \n\uf0b7 \nI noted that there was an under payment of UGX 83,675,196 of \npension and gratuity", "metadata": {"page": 426, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "416 \n \nOpinion \nUnqualified \n \n\uf0b7 \nI noted that UGX 5,703,084 was paid to 2 staff who had either \nretired or died \n \n\uf0b7 \nI noted that whereas UGX. 2,007,415,658 was deducted from \nemployees\u2019 salaries to be remitted to different beneficiaries, UGX. \n1,866,468,850 was remitted, leading to an under remittance of \nUGX.140,946,808 \n \n\uf0b7 \nI noted that the District made unauthorized loan deductions \ntotaling UGX. 111,107,631 \n \n\uf0b7 \nI noted that 14 newly recruited/ transferred employees and 6 \npensioners \n \n\uf0b7 \nFrom a comparison of the payroll register and IFMS payment file,", "metadata": {"page": 427, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "I noted that 25 staff were paid a total of UGX. 27,346,176 off the \nIPPS \n \n\uf0b7 \nThe district has outstanding payables worth UGX.736,710,419 in \nthe current financial year \n \n\uf0b7 \nI noted that the entity had not prepared and approved its \nstrategic plan at the time of audit \n \n\uf0b7 \nI noted a number of issues in the implementation of approved \nbudget such as partial or non-implementation of planned \nactivities and budget shortfall of UGX.8,706,420,377 that affected \nimplementation of planned activities; late submission of quarterly \nreports to Office of the Prime Minister and MoFPED \n \n\uf0b7 \nConstruction of Multipurpose Hall, ICT, Library Block , teachers \nhouses, pay ground and water installation at Padrombu", "metadata": {"page": 427, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "SeedSchool UGX.1,234,362,772 has delayed and is incomplete \nand the Contractor was not on site \n \n\uf0b7 \nNyangilia Ps briquette making sub project was advanced \nUGX.51,257,476 on Voucher No/EFT number 36222842 for the \npurpose of making fuel energy through briquettes. During field \ninspections undertaken on 24/11/2021, I noted that sub project \nhad not yet taken off and the group members could not be \ntraced \n \n\uf0b7 \nI noted that Koboko District received a total of UGX. 113,097,405 \nfor supply of additional learning materials. I reviewed the bank \nstatements for sampled schools and noted that the funds were \nstill on the schools\u2019 accounts by 30th September, 2021 and had \nhence not been utilised \n \n\uf0b7 \nI noted that management ignored the element of competition in \nthe procurement of some items worth UGX.1,236,462,077 \n \n\uf0b7 \nI noted that although the Bamure HC III General ward facility", "metadata": {"page": 427, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "417 \n \nwas completed and ready for use, the building was redundant \nand had not yet been put to use five months after completion \n13. \nARUA DLG \n \nOpinions \nUnqualified \n\uf0b7 \nI was not availed with evidence that the district submitted wage \nestimates to MoPs as required. \n \n\uf0b7 \nThe district failed to absorb wage funds worth UGX.2.14 billion \nand the funds were swept back into the consolidated fund \naccount at year end. \n \n\uf0b7 \nThe district made over payments of UGX.17, 088,304 various \npensioners. \n \n\uf0b7 \nI noted that UGX.10, 115,392 was paid to 15 staffs that neither \nappeared on the IPPS payroll register nor had the necessary \ndocumentation in their personal files to support their existence.", "metadata": {"page": 428, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nI noted that 58 employees were paid salaries above their \napplicable salary band resulting in overpayments totalling \nUGX.37,427,696 while 6 employees were paid salaries below \ntheir applicable salary band resulting in underpayments totalling \nUGX.2,441,988. \n \n\uf0b7 \nThe District wrongly computed gratuity benefits for 01 pensioner \nthat resulted in an overpayment of UGX.17,088,304. \n \n\uf0b7 \nI noted that UGX.66,918,755 was paid to 49 staff who had either \nretired, transferred, absconded or died. \n \n\uf0b7 \nThe district over and under remitted payroll deductions worth \nUGX.246,912,350 and UGX.201,704,458 due to wrong coding in \nthe system \n \n\uf0b7", "metadata": {"page": 428, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nI noted that the District made unauthorized loan deductions \ntotaling UGX.386, 522,646. The deductions were from 419 \nemployees that neither had letters of undertaking nor existed in \nthe \u201cactive deduction\u201d or the \u201cmy approval\u201d reports \n \n\uf0b7 \nI further noted that loan deductions relating to 16 (sixteen) \nemployees did not have evidence of consent by the employees. \n \n\uf0b7 \nThe District made PAYE deductions of UGX UGX.314, 021,935 for \nthe month of February 2021, but did not remit to URA as \nrequired \n \n\uf0b7 \nI noted that the District did not subject political leaders\u2019 gratuity \ntotalling to UGX.105,792,166 to the computation of PAYE in IPPS, \nleading to an under deduction of UGX.33,858,520, contrary to", "metadata": {"page": 428, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "section 19(1) (a) of the Income Tax Act and also noted tha t 58 \npensioners delayed to access the pension payroll during the year. \n \n\uf0b7 \nI noted that unqualifying funds amounting to UGX.52, 328,174 \nwere charged on account codes prescribed for salary, pension \nand gratuity.", "metadata": {"page": 428, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "418 \n \n \n\uf0b7 \nI noted that 29 employees were paid a total of UGX.51,348,377 \nwithout signed pay change reports. \n \n\uf0b7 \nI noted that 1,302 staff was paid a total of UGX. 3,048,993,948 \noff the IPPS that arose from wrong coding of Arua DLG staff \nunder Madi-Okollo DLG payroll arising from the separation of the \npayroll following the creation of Madi-Okollo district. \n \n\uf0b7 \nThe budget of Arua DLG was not adjusted/collapsed following \nthe issuance of the supplementary budgets to the new local \ngovernments. Consequently, the budget of Arua DLG for the year \nunder review is unrealistic. Further, activities meant to be \nundertaken by the new local governments were undertaken by \nArua DLG for example the payment of general staff salaries", "metadata": {"page": 429, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "totaling \nUGX.6,397,754,797 \nfor \nTerego \nDLG \nstaff \nand \nUGX.8,348,159,119 for Arua city staff. This distorts the budget \nperformance measurement for the local governments involved. \n \n\uf0b7 \nI noted underperformance of revenues from NTR, transfer from \ngovernment units and donor funding worth UGX.30.7Bn that \naffected budget implementation \n \n\uf0b7 \nThe district failed to absorb funds worth UGX.9.3Bn and these \nfunds were subsequently swept back to the consolidated fund \naccount. \n \n\uf0b7 \nThe district mischarged funds worth UGX.373, 406,160 on \nvarious codes other those budgeted for. Further, I noted that", "metadata": {"page": 429, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "funds to the tune of UGX.93, 269,685 were spent on other \nactivities without seeking and obtaining the necessary approvals. \n \n\uf0b7 \nI noted outstanding recoveries of funds from YLP and UWEP \ngroups worth UGX.1, 793,009,954 by the year end. \n \n\uf0b7 \nI noted that Arua District received a total of UGX.490,472,016. I \nreviewed the bank statements sampled schools and noted that \nthe funds were still on the school accounts by 30th September, \n2021 and had hence not been utilized. \n14. \nADJUMANI DLG \n \nOpinion \nUnqualified \n\uf0b7 \nI reviewed funds absorption for salary and pension payments and \nnoted under absorption of UGX.1.2 billion which may have led to \nnon payment of eligible employees and pensioners \n \n\uf0b7", "metadata": {"page": 429, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nI noted that UGX.3,339,798 was paid to 4 staff who had retired. \nThese were payments for services not rendered to the District, \nresulting in loss of funds to Government. \n \n\uf0b7 \nI noted that the District made unauthorized loan deductions \namounting to UGX.39,469,082 relating to 40 employees that \nneither existed in the \u201cactive deduction\u201d nor the \u201cmy approval\u201d \nreports on the PDMS as evidence of approval. \n \n\uf0b7 \nI noted that 3 pensioners delayed to access the pension payroll", "metadata": {"page": 429, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "419 \n \nduring the year with average delay period of 39 days to access \nthe pension payroll. \n \n\uf0b7 \nI noted that the District did not submit quarterly returns on \npayroll to MoPS. This led to accumulations of arrears, under \nabsorption of wage, pension and gratuity budget and delays in \ngranting clearance to recruit. \n \n\uf0b7 \nFrom a comparison of the payroll register and IFMS payment file, \nI noted that 5 staff was paid a total of UGX.7, 145,972 off the \nIPPS. This control weakness created an opportunity for payment \nof salaries to non-eligible persons. \n \n\uf0b7 \nI noted that the verification form and copies of the verification \ncard for 6 pensioners/beneficiaries were not on their files. I was \ntherefore unable to validate, authenticate the accuracy of the", "metadata": {"page": 430, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "payroll records (salary and pension) on the IPPS. \n \n\uf0b7 \nI noted that the District Development Plan III was still in a draft \nform and had not yet been approved. \n \n\uf0b7 \nThe district did not receive funds worth UGX.14,639,062,373 \n \n\uf0b7 \nThe district failed to absorb funds worth UGX. 1,621,646,255 by \nthe end of the financial year and the funds were subsequently \nswept back to the consolidated fund account that affected \nconstruction of roads and bridges, Installation of streetlights; and \nConstruction of Leisure Park among others \n \n\uf0b7 \nThe funds were meant for activities that were not fully \nimplemented by the end of the financial year and these include; \n \n\uf0b7 \nA review of the revenue management process revealed that \nthere was no invoice register for the amount billed during the", "metadata": {"page": 430, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "year in place and schedule of debtors detailing debtor\u2019s records. I \nalso noted that the district does not have a streamlined policy to \nbe followed to recover the outstanding revenues/amounts. \n \n\uf0b7 \nI noted outstanding YLP balance of UGX.707, 536,351 that has \nnot been recovered by the district which is affecting the \nrevolution of the funds to other groups in the queue \n \n\uf0b7 \nThe district had outstanding unrecovered the UWEP funds worth \nUGX.406,275,629 by close of the year \n \n\uf0b7 \nI noted that the District received a total of UGX. 129,300,127. I \nreviewed the bank statements sampled schools and noted that \nthe funds were still on the school accounts by 30th September, \n2021 and had hence not been utilized. \n15. \nPakwach DLG \n \nOpinion", "metadata": {"page": 430, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Opinion \nUnqualified \n\uf0b7 \nI noted that the District did not submit wage estimates to MoPs \nby 30th September of the preceding year a required \n \n\uf0b7 \nI reviewed funds absorption and noted that UGX. 10.209 Bn", "metadata": {"page": 430, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "420 \n \n(94%) was spent out of the total receipts of UGX.10.885 Bn, \nresulting in an unabsorbed balance of UGX. 0.676 Million. The \nunabsorbed balance was subsequently swept back to the \nconsolidated fund account \n \n\uf0b7 \nI reviewed funds absorption and noted that UGX.19.4 billion \n(94%) was spent out of the total receipts of UGX.20.6 billion, \nresulting in an under absorption of UGX.1.2 billion. I further \nnoted an unexplained under absorption of salaries funds totaling \nUGX. 235,934,838 and under absorption of pension and gratuity \ntotaling UGX.930, 294,356. \n \n\uf0b7 \nI noted that UGX.3, 339,798 was paid to 4 staff who had retired.", "metadata": {"page": 431, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "These were payments for services not rendered to the District, \nresulting in loss of funds to Government. \n \n\uf0b7 \nI further noted that loan deductions for a sample of 10 \nemployees lacked letters of undertaking and did not have \nevidence of consent. \n \n\uf0b7 \nI also noted loan deductions for twenty-eight (28) staff, totaling \nUGX.33,119,091, were above the approved deduction amount \nand Loans for fifteen (15) staff totaling UGX.132,794,500 had \nunreasonable loan end-dates. \n \n\uf0b7 \nI noted that the District did not submit quarterly returns on \npayroll to MoPS. This led to accumulations of arrears, under \nabsorption of wage, pension and gratuity budget and delays in \ngranting clearance to recruit. \n \n\uf0b7 \nFrom a comparison of the payroll register and IFMS payment file,", "metadata": {"page": 431, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "I noted that 5 staff were paid a total of UGX.7, 145,972 off the \nIPPS. This control weakness created an opportunity for payment \nof salaries to non-eligible persons \n16. \nARUA MC \nOpinion \nUnqualified \n\uf0b7 \nI noted that the wage and Pension Pay roll of UGX. \n7,083,040,397 constituted 25% of the Municipal Council\u2019s budget \nfor 2020/2021 of 28.3Bn. \n \n\uf0b7 \nI noted that the Municipal Council delayed to submit wage \nestimates to MoPs, as required. \n \n\uf0b7 \nI reviewed funds absorption and noted that UGX.6.7 billion \n(98%) was spent out of the total receipts of UGX.6.9 billion for \nsalaries, pension and gratuity \n \n\uf0b7", "metadata": {"page": 431, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nI noted that whereas UGX.1,510,024,063 was deducted from \nemployees\u2019 salaries to be remitted to different beneficiaries, \nUGX.1,502,519,098 was remitted leading to an under remittance \namounting to UGX.7,504,965 \n \n\uf0b7 \nI noted that the entity did not include political leaders\u2019 gratuity of \nUGX.8,939,400 in the computation of PAYE leading to under \ndeduction of PAYE of UGX.2,681,820", "metadata": {"page": 431, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "421 \n \n \n\uf0b7 \nI noted that the verification form and copies of the verification \ncard for 09 pensioners/beneficiaries were not on their files \n \n\uf0b7 \nI further noted that the Municipal Council Development Plan III \nwas still in a draft form and had not yet been approved \n \n\uf0b7 \nI noted that the Municipal Council had off-budget receipts \ntotaling UGX.1, 069,848,174 during the year. \n \n\uf0b7 \nI noted a number of issues in the implementation of approved \nbudget suchas as failure to fully quantify outputs, partial and \nnon-implementation of planned activities; over absorption of \nUGX.761,755,708; \n \nrevenue \nunderperformance \nof \nUGX.2,530,484,439 \n \n\uf0b7", "metadata": {"page": 432, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nI noted that UGX.210,033,250 meant for surfacing of Staff Lane \nand Construction of Municipal Bypass was utilised for supply and \ninstallation of solar street lights on Oluko Road \n\uf0b7 \n \n\uf0b7 \nI noted that the entity submitted performance report for Q4 after \nthe deadline given for submission of the reports \n \n\uf0b7 \nI noted that there were unapproved overpayments of \nUGX.1,427,380,000 relating to USMID works on School road and \nAdroa road \n \n\uf0b7 \nI noted that the Municipal Council made advance payment of \nUGX.333,383,989 to contractors without bank guarantees \n \n\uf0b7 \nI noted low bidder participation in 3 of the 11 sampled \nprocurements \n \n\uf0b7 \nI noted that the Municipal Council did not receive its approved", "metadata": {"page": 432, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "supplementary development budget totaling UGX.14,340,000,000 \nunder Supplementary Expenditure Estimates Supplied Addendum \nNo.1 to Schedule No.2 for F/Y 2020/2021 \n \n\uf0b7 \nI noted that the Municipal Council did not have an approved staff \nstructure/establishment. \n \nMBARARA BRANCH \nSummary of Key Findings \n01. \nMBARARA DLG \nOpinion \nUnqualified \n\uf0b7 \nI analyzed the approved budget and releases to Mbarara District \nfor salary, pension and gratuity in the period under review and \nnoted that the wage and Pension Pay roll of UGX.20,650,503,996 \nconstituted 68% of the District\u2019s budget for 2020/2021 of \nUGX.30.38 Bn \n\uf0b7 \nI noted that the District delayed to submit wage estimates to \nMoPS, contrary to the Establishment Notice. The submission was", "metadata": {"page": 432, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "made on 18th February 2020, which is 140 days after the \nrequired date \n\uf0b7 \nI reviewed funds absorption and noted that UGX.19.6 billion \n(95%) was spent out of the total receipts of UGX.20.7 billion, \nresulting in an unabsorbed balance of UGX.1.1 billion.", "metadata": {"page": 432, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "422 \n \n\uf0b7 \nI noted that the District made unauthorised loan deductions \ntotalling UGX.11.8 million. The deductions were from 40 \nemployees that neither existed in the \u201cactive deduction\u201d nor the \n\u201cmy approval\u201d reports on the Payroll Deduction Management \nSystem (PDMS), operated by Payroll Consults Africa (PCA) \n\uf0b7 \nI noted that the District made payroll deductions of UGX. \n813,620,096, but did not remit concurrently with the salary \npayments in 11 out of 12 months. The delay ranged from 5 to 84 \ndays \n\uf0b7 \nI noted delays in the remittance of PAYE deductions to URA for 2 \nmonths of November 2020 and January 2021 of six (06) and \neighty (08) days respectively \n\uf0b7 \nI noted that the District did not subject political leaders\u2019 gratuity", "metadata": {"page": 433, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "totalling to UGX. 16,304,260 to the computation of PAYE in IPPS, \nleading to an under deduction of UGX.4,891,278 \n\uf0b7 \nI noted that of the 29 newly recruited/transferred, 13 employees \ndelayed to access payroll, with delays ranging between 6 to 12 \nweeks \n\uf0b7 \npensioners delayed to access the pension payroll, with delays \nranging between 7-10 months \n\uf0b7 \nGratuity and pensions of UGX. 601,669,910 was charged on \nSalary account which did not reflect the nature of the \nexpenditure \n\uf0b7 \nI noted that the District prepared monthly wage, pension and \ngratuity performance analysis but did not submit quarterly \nreturns on payroll to MoPS \n\uf0b7 \nI reviewed the approved Local revenue estimates for the financial \nyear 2020/2021 and noted that the District budgeted to collect", "metadata": {"page": 433, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "UGX.1,293,851,871 \nduring \nthe \nyear \nbut \ncollected \nUGX.974,341,070 representing (75%) performance. \n\uf0b7 \nThe Entity budgeted to receive UGX.2,077,267,871 as transfers \nfrom other Government Units. However, only UGX.583,148,567 \n(28%) \nwas \nreceived. \nRevenue \nshortfalls \naffected \nthe \nimplementation of planned activities \n\uf0b7 \nThe \nDistrict \nbudgeted \nto \nreceive \nUGX.693,590,000 \nas \nexternal/donor financing out of which UGX.53,180,000 (7.7%), \nwas received \n\uf0b7", "metadata": {"page": 433, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "was received \n\uf0b7 \nI noted that management did not submit quarterly monitoring \nreports to the Office of the Prime Minister and Mofped as \nrequired \n02. \nRUBANDA DLG \nOpinion \nUnqualified \n\uf0b7 \nI analysed the approved budget and releases to Rubanda District \nfor salary, pension and gratuity in the period under review and \nnoted that the wage and Pension Pay roll of UGX.17,152,929,012 \nconstituted 49% of the District\u2019s budget for 2020/2021 of \nUGX.34.85 Bn \n\uf0b7 \nI reviewed the wage funds absorption and noted that UGX.17.29 \nbillion(96) was spent out of the total receipts of UGX18.02 billion, \nresulting in an unabsorbed balance of UGX.0.73 billion \n\uf0b7 \nA review of the payroll data (IPPS) and IFMS payments revealed \nvariances between amounts on the approved payroll and \npayments to individual employees, leading to over payment of", "metadata": {"page": 433, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "423 \n \nUGX. 12,101,332 \n\uf0b7 \nI noted that 15 employees on the IPPS payroll did not receive \nsalary of UGX. 37,502,687 \n\uf0b7 \nA comparison of base pay in the IPPS payroll registers with the \nsalary structure for 2020/21, revealed that June payments were \nmade using wrong salary scales, leading to over payments of \nUGX. 3,197,252, and under payments of UGX. 978,860 \n\uf0b7 \nI noted that whereas UGX. 4,119,399,533 was deducted from \nemployees\u2019 salaries to be remitted to different beneficiaries, UGX. \n4,110,103,755 was remitted, leading to an over and under \nremittance \namounting \nto \nUGX.(234,929,994) \nand", "metadata": {"page": 434, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "and \nUGX.244,225,772 respectively \n\uf0b7 \nI noted that the District made unauthorised loan deductions \ntotalling UGX. 41,736,635 from 22 employees that neither had \nletters of undertaking nor existed in the \u201cactive deduction\u201d or the \n\u201cmy approval\u201d reports on the Payroll Deduction Management \nSystem (PDMS) \n\uf0b7 \nI noted that the District did not subject political leaders\u2019 gratuity \ntotalling to UGX. 30,155,400 to the computation of PAYE in IPPS, \nleading to an under deduction of UGX. 9,113,820 I noted that 9 \npensioners delayed to access the pension payroll, with delays \nranging between 6-15 months \n\uf0b7 \nI noted that the District did not prepare monthly wage, pension \nand gratuity performance analysis and thus did not submit \nquarterly returns on payroll to MoPS \n\uf0b7", "metadata": {"page": 434, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nI observed that there were variances of UGX. 5,667,077 and \nUGX.7.076,946 between the MoPS IPPS and entity payroll \nregisters availed by the core FTP system \n\uf0b7 \nI noted that at the time of audit October 2021 the district \nstrategic plan was not approved by NPA. \n\uf0b7 \nI noted that the district had planned to collect local revenue of \nUGX0.587Million but was only able to collect 0.351 million \nrepresenting 60% performance. \n\uf0b7 \nOf the UGX.10.13Bn budgeted as transfers from other \nGovernment Units, only UGX.0.8 Bn was received representing \n8% performance \n\uf0b7 \nThe district did not receive any external/donor financing despite \nhaving a budget of UGX0.89Bn \n03. \nKAZO DLG \nOpinion", "metadata": {"page": 434, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "Opinion \nUnqualified \n\uf0b7 \nI analysed the approved budget and releases to Kazo district for \nsalary, pension and gratuity in the period under review and noted \nthat the wage and Pension Pay roll of UGX.10,993,531,909 \nconstituted 64.1% of the District\u2019s budget for 2020/2021 of \nUGX.17,131,504,889 \n\uf0b7 \nA comparison of base pay in the IPPS payroll registers with the \nsalary structure for 2020/21, revealed that 20 staff were paid \nusing wrong salary scales, leading to over payments of", "metadata": {"page": 434, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "424 \n \nUGX269,392 \n\uf0b7 \nI noted that UGX.1,605,867 was paid to 3 staff who had either \nabsconded or died \n\uf0b7 \nI noted that the District made unauthorised loan deductions \ntotalling UGX.43,661,032. The deductions were from 12 \nemployees that neither had letters of undertaking nor existed in \nthe \u201cactive deduction\u201d or the \u201cmy approval\u201d reports on the \nPDMS-Payroll Deduction Management System, operated by PCA-\nPayroll Consults Africa. \n\uf0b7 \nI further noted that loan deductions relating to 12 employees did \nnot have evidence of consent \n\uf0b7 \nI noted that the District made payroll deductions but did not \nremit concurrently with the salary payments in 7 out of 8 \nmonths. On average, it delayed by 7 days \n\uf0b7", "metadata": {"page": 435, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nI noted that the District did not subject political leaders\u2019 gratuity \ntotalling to UGX.29,166,600 to the computation of PAYE in IPPS, \nleading to an under deduction of UGX.8,652,480 \n\uf0b7 \nI noted that the District did not prepare monthly wage, pension \nand gratuity performance analysis and thus did not submit \nquarterly returns on payroll to MoPS \n\uf0b7 \nI noted that the district was implementing a strategic plan \n(2020/21- 2024/25) that had not been approved by National \nPlanning Authority \n\uf0b7 \nI noted that the district only managed to collect local revenue of \nUGX327,102,266 of the budgeted UGX 824,355,800 representing \n40% performance \n\uf0b7 \nI noted that Transfers received from the consolidated fund \nperformed at 90% \n\uf0b7 \nI noted the district did not receive any external financing despite", "metadata": {"page": 435, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "having a budget of UGX 33,504,000 \n\uf0b7 \nI noted that the District received off-budget financing of \nUGX.552,762,500 which was never paid into the consolidated \nfund as required by the law \n\uf0b7 \nOut of the total receipts for the financial year of UGX.15.12bn \n(including opening balance of UGX.367,655,139) UGX.14.46bn \nwas spent by the entity resulting in an unspent balance of \nUGX.0.65 Bn representing absorption level of 96% \n\uf0b7 \nI assessed the implementation of twenty two (22) outputs that \nwere fully quantified with a total of twenty-one (22) activities \nworth UGX 1.83Bn and noted that Eighteen (18) outputs with \ntotal expenditure amounting to UGX 1.16 Bn were fully \nimplemented representing 70.6% of the outputs, Four (4)", "metadata": {"page": 435, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "outputs with total expenditure amounting to UGX.0.67 Bn were \npartially implemented representing 29.4% of the outputs. \n\uf0b7 \nI noted that the entity submitted performance reports for Q1, \nQ2, Q3, Q4 after the deadline given for submission of the reports", "metadata": {"page": 435, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "425 \n \n04. \nINSINGIRO DLG \nOpinion \nUnqualified \n\uf0b7 \nI analysed the approved budget and releases to the District for \nsalary, pension and gratuity in the period under review and noted \nthat the wage and Pension Pay roll of UGX.25,700,415,566 \nconstituted 29.4% of the District\u2019s budget for 2020/2021 of \nUGX.87.35 Bn \n\uf0b7 \nI noted that the District delayed to submit wage estimates to \nMoPs, as required. The submission was made after 30th \nSeptember 2020. This may lead to wage shortfalls/over provision \ndue to lack of clarity and analysis of wage estimates by MoPS \n\uf0b7 \nThe District paid out a total of UGX.14,568,696 to 12 non-\nexistent staff. These were not on the IPPS payroll register and", "metadata": {"page": 436, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "also lacked the necessary documentation to support their \nexistence \n\uf0b7 \nA comparison of base pay in the IPPS payroll registers with the \nsalary structure for 2020/21 revealed that seventeen (17) staff \nwere paid using wrong salary scales, leading to under payment \nof UGX.189,881 \n\uf0b7 \nI noted that UGX.9,922,552 was paid to five (5) staff who had \neither retired, transferred, absconded or died \n\uf0b7 \nI noted that whereas UGX.5,426,888,768 was deducted from \nemployees\u2019 salaries to be remitted to different beneficiaries, \nUGX.4,951,234,873 was remitted, leading to an under \nremittance of UGX.475,653,895 \n\uf0b7 \nI noted that the District did not subject political leaders\u2019 gratuity", "metadata": {"page": 436, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "totalling to UGX.42,781,000 to the computation of PAYE in IPPS, \nleading to an under deduction of UGX.12,900,150 \n\uf0b7 \nI noted that one retiree who was last paid in October, 2020 had \nnot yet accessed the pension payroll by the time of audit \n\uf0b7 \nI noted that UGX.12,152,847 was diverted to Bangirana Josaphat \nM employee no 524376) as residual pension arrears from April \n2015 to October 2019. However, these had not been verified and \ntherefore not part of schedule provided by MoFPED \n\uf0b7 \nI noted that 05 employees were paid a total of UGX.9,087,270 \nwithout signed pay change reports \n\uf0b7 \nI noted that the District did not prepare monthly wage, pension \nand gratuity performance analysis and thus did not submit \nquarterly returns on payroll to MoPS \n\uf0b7", "metadata": {"page": 436, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nI noted that twelve (12) staff and 02 pensioners were paid a \ntotal of UGX.32,785,938 off the IPPS \n\uf0b7 \nI observed that there were variances of UGX.12,355,491 \nbetween the figures in the MoPS IPPS and entity payroll registers \n\uf0b7 \nI reviewed the approved Local revenue estimates for the financial \nyear 2020/2021 and noted that the District budgeted to collect \nUGX.1,029,300,000 \nduring \nthe \nyear \nbut \ncollected \nUGX. \n778,835,482 representing (83%) performance \n\uf0b7 \nThe entity budgeted to receive UGX.39,034,900,000 as transfers", "metadata": {"page": 436, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "426 \n \nfrom \nother \nGovernment \nUnits. \nHowever, \nonly \nUGX.16,417,071,378 (42%) was received \n\uf0b7 \nThe District budgeted to receive UGX.3,112,206,100 as \nexternal/donor financing out of which UGX.1,226,592,425 \n(39.4%) \n\uf0b7 \nOut \nof \nthe \ntotal \nreceipts \nfor \nthe \nfinancial \nyear \nof \n(UGX.61,860,404,265 \u2013 1,313,798,884), UGX.61,310,829,945 \n(89%) was spent by the entity resulting in an unspent balance of", "metadata": {"page": 437, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "UGX.764,224,564 (08%). \n\uf0b7 \nI assessed the implementation of thirty two (32) outputs that \nwere fully quantified with a total of thirty two (32) activities \nworth UGX.3.505 Bn and noted the following \n\uf0b7 \nThirty (30) outputs with a total of thirty (30) activities worth \nUGX.2.771 Bn were fully implemented. \n\uf0b7 \nTwo (02) outputs with a total of two (02) activities worth \nUGX.0.734 Bn were partially implemented by the time of audit \n\uf0b7 \nI noted that the entity did not prepare and submit the annual \nmonitoring plans to MoFPED, MoLG and NPA as required. \n\uf0b7 \nThe entity had not also submitted quarterly monitoring reports to \nthe Office of the Prime Minister and Moped as required by the \ntime of audit 10th of September 2021 I noted that Management", "metadata": {"page": 437, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "submitted performance reports for Q1, Q2, Q3 and 4 after the \ndeadline given for submission of the reports \n\uf0b7 \nI audited the Construction of Ruborogota seed school under \nUgIFT and I observed that no liquidated damages were charged \nto the contractor by management as stipulated in terms and \nconditions of the agreement. I further noted that overall physical \nprogress was at 75.2% and the financial progress was at 68% as \nper \nmonthly \nprogress \nreport \nof \nJuly \n2021 \nimplying \nUGX.667,629,755 were lying idle on the account \n\uf0b7 \nI noted that taxes amounting to UGX.3,344,640 were never paid \nto URA as summarised in the table I inspected various prices of \nland owned by the District and noted that most of it lacked land", "metadata": {"page": 437, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "titles and three pieces of land (6.6 acres) had been encroached \non by private developers \n\uf0b7 \nI noted that most of the District land did not have certificates of \ntitle \n\uf0b7 \nI noted that as per quarter 2nd 2020/2021 Youth Livelihood \nProgramme Performance Report by the focal person to the \nAccounting \nOfficer, \ndated \n30st \nDecember \n2020, \nthat \nUGX.1,599,889,519 had been disbursed to various youth groups \nin the district but UGX.331,883,100 had been recovered leaving \nUGX.1,367,353,783 unrecovered", "metadata": {"page": 437, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "427 \n \n05. \nBUHWEJU DLG \nOpinion \nUnqualified \n \n\uf0b7 \nI noted that the wage and pension pay roll of UGX.9,342,366,801 \nconstituted 54% of the District\u2019s budget for 2020/2021 of \nUGX.17,438,067,437. \n\uf0b7 \nI noted that the District did not to submit wage estimates to \nMoPs, as required \n\uf0b7 \nI reviewed payroll funds absorption and noted that UGX.9.34 \nbillion (107%) was spent out of the total receipts of UGX.8.57 \nbillion, resulting in an excess expenditure of UGX.0.64 billion \n\uf0b7 \nI noted a salary over payment of UGX.278,550,496 \n\uf0b7", "metadata": {"page": 438, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nI noted a salary under payment of UGX.36,127,180 \n\uf0b7 \nI was not availed with the pension payroll data and I was unable \nto compare pension and gratuity payroll amount with IFMS \npayments of UGX.608,581,426 and UGX.302,628,319 for gratuity \nand pension respectively \n\uf0b7 \nI noted that 116 staff were paid salary using wrong salary scales, \nleading to over payments of UGX.72,081,318 \n\uf0b7 \nI was not availed with information on staff departures and I \ncould not ascertain the duration of the delayed deletions \n\uf0b7 \nI noted that UGX.756,742,653 was deducted from employees\u2019 \nsalaries to be remitted to Uganda Consumer Lenders' \nAssociation/Uganda Bankers' Association, and UGX.756,916,127", "metadata": {"page": 438, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "was remitted, leading to an over remittance of UGX.173,474 \n\uf0b7 \nI \nnoted \nthat \nthe \nDistrict \nmade \npayroll \ndeductions \nof \nUGX.756,742,653, but did not remit concurrently with the salary \npayments in all the 6 months. On average, it delayed by 41 days \n\uf0b7 \nI noted delays in the remittance of PAYE deductions to URA \nranging from 2 \u2013 46 days \n\uf0b7 \nI was not availed with lists of new staff and leavers, I could \ntherefore not establish the timing of accessibility to the payroll by \nthe new staff. \n\uf0b7 \nI noted that salary entries amounting to UGX.184,483,367 to \nseveral employees were not supported by signed pay change \nreports \n\uf0b7", "metadata": {"page": 438, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "reports \n\uf0b7 \nI noted that the District did not prepare monthly wage, pension \nand gratuity performance analysis and did not submit quarterly \nreturns on payroll to MoPS \n\uf0b7 \nI noted that 102 staff were paid a total of UGX.499,116,733 off \nthe IPPS \n\uf0b7 \nI noted that the verification form and copies of the verification \ncard for employees and pensioners/beneficiaries on their files \nwere not availed for audit review \n\uf0b7 \nI reviewed the effectiveness and reliability of the IPPS/NID \nstaff/pensioner/beneficiaries\u2019 verification interface and noted the \nfollowing;", "metadata": {"page": 438, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "428 \n \n\uf0b7 \nIn-adequate sensitization and training in the use and navigation \nof the system \n\uf0b7 \nSystem was not reliable and effective \n\uf0b7 \nOperational challenges were encountered; \n\uf0b7 \nE.g. Un-reliable network in Buhweju where HR staff had to \nphysically travel to the neighbouring Districts to be able to \ndownload documents such as pension payroll registers. \n\uf0b7 \nInadequate staffing of the HR department \n\uf0b7 \nI noted that the district budgeted to collect UGX.155,201,000 \nduring the year but collected UGX.136,282,651 representing \n(88%) performance. The shortfalls in Local Revenue collections \nof UGX. 18,918,349 (12%) were recorded in Local Service Tax, \nLand Fees and Application Fees \n\uf0b7", "metadata": {"page": 439, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nI noted that entity budgeted to receive UGX.758,657,000 as \ntransfers \nfrom \nother \nGovernment \nUnits. \nHowever, \nonly \nUGX.537,760,298 (70.9%) was received \n\uf0b7 \nI assessed the implementation of seven (7) outputs that were \nfully quantified with a total of seven (7) activities worth UGX 1.6 \nBn and noted the following. \n\uf0b7 \nFive (05) outputs with a total of five (05) activities worth \nUGX.1.03Bn were fully implemented. The entity implemented all \nthe five (05) activities (100%) within these outputs. \n\uf0b7 \nTwo (02) outputs with a total of two (02) activities worth \nUGX.0.5 Bn were partially implemented. \n\uf0b7", "metadata": {"page": 439, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nI noted that the district had commenced implementation of two \n(2) UgIFT projects namely; Upgrading of Engaju HC II to HC III \nand Upgrade of Rushambya HC II to HC III and noted the \nfollowing; \n\uf0b7 \nUpgrading of Rushambya Health Centre II to Health Centre III; \nThe medical facility had been completed but lacked medical \nequipment to enable functionality and service delivery \n\uf0b7 \nUpgrade of Engaju HC II to HC III; The project stalled but \nmedical equipment had been procured and an advance payment \nof UGX. 211,119,458 was made during the year \n06. \nBUSHENYI DLG \nOpinion \nUnqualified \n\uf0b7 \nI \nnoted \nthat \nthe \nwage \nand \nPension \nPay \nroll \nof", "metadata": {"page": 439, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "roll \nof \nUGX.21,998,865,997 constituted 54% of the District\u2019s budget for \n2020/2021 of UGX.40,645,826,438. \n\uf0b7 \nI reviewed payroll funds absorption and noted that UGX.20.697 \nbillion (94%) was spent out of the total receipts of UGX.21.999 \nbillion, resulting in an unabsorbed balance of UGX.1.302billion \n\uf0b7 \nI noted a salary over payment of Ms Twehandikise Miria of \nUGX.508,439 instead of paying UGX.5,974,218, UGX.6,482,657 \nwas paid \n\uf0b7 \nI noted pension and gratuity underpayment of UGX.984,681,443", "metadata": {"page": 439, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "429 \n \n\uf0b7 \nI noted that whereas UGX.1,504,757,075 was deducted from \nemployees\u2019 salaries to be remitted to different beneficiaries, \nUGX.1,517,190,079 was remitted, leading to an over/ under \nremittance of UGX.12,433,004 and UGX.6,100,834 \n\uf0b7 \nI noted that the District made payroll deductions but did not \nremit concurrently with the salary payments in 5 out of 7 \nmonths. On average, it delayed by 7 days \n\uf0b7 \nI noted that the district had outstanding salary arrears from \nprevious years\u2019 worth UGX.34,719,743 that remained unpaid at \nthe end of the financial year \n\uf0b7 \nI carried out a survey to establish the effectiveness and reliability \nof \nthe", "metadata": {"page": 440, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "of \nthe \nIPPS/NID \nstaff/pensioner/beneficiaries\u2019 \nverification \ninterface and noted the following; \n\uf0b7 \nOperational challenges were encountered; \n\uf0b7 \nMismatches of names that take long to be corrected by NIRA and \naffects ability to timely access people on payroll. \n\uf0b7 \nIn some cases, the status under IPPS remain \u201cNOT VERIFIED\u201d \neven when the record is verified and approved. This again \nrequires one to contact Ministry of Public service for an \nintervention. \n\uf0b7 \nI noted at the time of audit (June 2020/2021) the strategic plan \nhad not been approved by NPA for implementation \n\uf0b7 \nI \nnoted \nthat \nBushenyi \nDistrict \nbudgeted \nto \ncollect", "metadata": {"page": 440, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "to \ncollect \nUGX.630,746,210 in the year under review however the entity \nonly collected UGX.393,072,939 representing 62% performance. \n\uf0b7 \nThe entity budgeted to receive UGX.29,905,844,709 from the \nconsolidated fund out of which UGX.28,011,829,956 was \nreceived representing causing a shortfall of UGX.1,894,014,753 \nrepresenting 94% performance \n\uf0b7 \nThe entity budgeted to receive UGX.9,669,035,803 as transfers \nfrom other Government Units out of which UGX.1,522,149,995 \nwere received representing 16% performance leading to a \nshortfall of UGX. 8,146,885,809 (84%) \n\uf0b7 \nThe \nentity \nbudgeted \nto", "metadata": {"page": 440, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "budgeted \nto \nreceive \nUGX.440,199,716 \nas \nexternal/donor financing out of which UGX.86,160,000 was \nreceived representing 6% performance \n\uf0b7 \nI assessed the implementation of Twenty two (22) outputs that \nwere fully quantified with a total of Twenty two (22) activities \nworth UGX 3.13 Bn and noted the following; \n\uf0b7 \nFifteen (15) outputs with a total of fifteen (15) activities worth \nUGX.2.38 Bn were fully implemented. \n\uf0b7 \nFive(05) outputs with a total of Five(05) activities worth UGX \n0.70 Bn were partially implemented by the time of audit. \n\uf0b7 \nTwo (02) outputs with a total of two(02) activities worth UGX \n0.05 Bn were not implemented by the time of audit.", "metadata": {"page": 440, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "430 \n \n\uf0b7 \nI noted that the entity submitted performance reports for Q1, \nQ2, Q3, Q4 after the deadline given for submission \n\uf0b7 \nA total of 261.4km at an estimated cost of UGX.94,152,000 was \nplanned to be undertaken, I noted that UGX.75,588,000 was \nreceived and all used for maintaining 209.9 Km implying a \nshortfall of UGX.18,564,000 which affected implementation of \n51.5Km of roads \n07. \nIBANDA DLG \nOpinion \nUnqualified \n\uf0b7 \nI noted the wage and Pension Pay roll of UGX.13,873,913,709 \nconstituted 56% of the District\u2019s budget for 2020/2021 of \nUGX.24,675,034,751 \n\uf0b7", "metadata": {"page": 441, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nI reviewed payroll funds absorption and noted that UGX.11.6 \nbillion (90.6%) was spent out of the total receipts of UGX.12.8 \nbillion, resulting in an unabsorbed balance of UGX.1.1 billion. \n\uf0b7 \nI noted that the District made payroll deductions but did not \nremit it concurrently with the salary payments in 6 months. The \ndelays ranged from 5 to 28 days \n\uf0b7 \nI noted that 191 newly recruited/transferred employees delayed \nto access payroll, with delays ranging between 1-9 months \n\uf0b7 \nI noted that only eight (8) pensioners delayed to access the \npension payroll, with delays ranging between 2-7 months \n\uf0b7 \nI noted that the District did not prepare monthly wage, pension \nand gratuity performance analysis and thus did not submit \nquarterly returns on payroll to MoPS \n\uf0b7 \nI noted that although the entity had prepared a strategic plan", "metadata": {"page": 441, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "that at the time of audit, it had not yet been approved as aligned \nto the NDP-III \n\uf0b7 \nI noted that the entity budgeted to receive UGX.22.11Bn as \ngrants from the Treasury. However, only UGX.19.45Bn was \nreceived representing 88% performance leading to budget \nshortfall of UGX.2.66 Bn (12%). \n\uf0b7 \nI noted that the entity budgeted to receive UGX.1.48Bn as \ntransfers \nfrom \nother \nGovernment \nUnits. \nHowever, \nonly \nUGX.1.22Bn was received representing 82.4% performance \nleading to revenue shortfall of UGX. 0.26Bn (17.6%). \n\uf0b7 \nI noted that the entity budgeted to receive UGX. 0.39Bn as", "metadata": {"page": 441, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "external/donor financing out of which UGX.0.14Bn was received \nrepresenting 36% performance leading to revenue shortfall of \nUGX.0.25Bn (63%). \n\uf0b7 \nThe entity did not prepare and submit the annual monitoring \nplans to MoFPED, MoLG and NPA as required. \n\uf0b7 \nThe entity also did not submit quarterly monitoring reports to the \nOffice of the Prime Minister and MoFPED as required \n08. \nKABALE DLG \nOpinion \nUnqualified \n\uf0b7 \nI \nnoted \nthat \nthe \nwage \nand \nPension \nPay \nroll \nof \nUGX.23,557,107,073 constituted 49.6% of the District\u2019s budget \nfor 2020/2021 of UGX.47,484,993,193,", "metadata": {"page": 441, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "431 \n \n\uf0b7 \nI noted that UGX.52,165,651 was paid to 30 staff who had either \nretired, transferred, absconded or died \n\uf0b7 \nI noted that the District made unauthorised loan deductions \ntotalling to UGX.107 million. The deductions were from 30 \nemployees that did not have letters of undertaking. Of the 30 \nemployees, 26 employees did not exist in the \u201cactive deduction\u201d \nwhile 04 employees did not exist in the \u201cmy approval\u201d reports on \nthe PDMS-Payroll Deduction Management System, operated by \nPCA-Payroll Consults Africa \n\uf0b7 \nI noted that the District made payroll deductions of UGX.4.8 Bn, \nbut did not remit concurrently with the salary payments in 5 out \nof 12 months. On average, it delayed by 21 days \n\uf0b7", "metadata": {"page": 442, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nI noted delays in the remittance of PAYE deductions to URA \nranging from 16 \u2013 15 days \n\uf0b7 \nI noted that the District did not subject political leaders\u2019 gratuity \ntotalling to UGX.36,127,200 to the computation of PAYE in IPPS, \nleading to an under deduction of UGX.9,608,560 \n\uf0b7 \nI noted that 76 newly recruited/ transferred employees delayed \nto access payroll, with delays ranging between 1-2 months, while \n50 new recruits did not access the payroll during the financial \nyear \n\uf0b7 \nI noted that 36 pensioners delayed to access the pension payroll, \nwith delays ranging between 1 - 3 months, whereas 16 \npensioners did not access the payroll \n\uf0b7 \nI noted that 03 staff and 26 pensioners were paid a total of UGX \n81,673,064 off the IPPS \n\uf0b7", "metadata": {"page": 442, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nI observed that there were variances of UGX.250 Million between \nthe figures in the MoPS IPPS and entity payroll registers \n\uf0b7 \nI noted that although the entity had prepared a strategic plan \nthat at the time of audit, it had not yet been approved as aligned \nto the NDP-III \n\uf0b7 \nI reviewed the approved Local revenue estimates for the financial \nyear 2020/2021 and noted that the District budgeted to collect \nUGX.0.47Bn during the year but collected UGX.0.402 Bn \nrepresenting (85%) performance. \n\uf0b7 \nI noted that the District budgeted to receive UGX.37.08 Bn \n(revised) as grants from the Treasury but UGX.33.54 Bn was \nwarranted/ received representing 91% performance. \n\uf0b7 \nI noted that the Entity budgeted to receive UGX.9.06 Bn as", "metadata": {"page": 442, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "transfers from other Government Units. However, only UGX.1.45 \nBn (16%) was received \n\uf0b7 \nI noted that the District budgeted to receive UGX.0.86 Bn as \nexternal/donor financing out of which UGX.0.11 Bn (12%), was \nreceived \n\uf0b7 \nI noted that Out of the total receipts for the financial year of \nUGX.35.51 Bn, UGX.34.88 Bn (98.2%) was spent by the entity", "metadata": {"page": 442, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "432 \n \nresulting in an unspent balance of UGX.0.63 Bn (0.8%). \n\uf0b7 \nI noted that Management submitted performance reports for Q1, \nQ2, Q3 and Q4 after the deadline given for submission of the \nreports \n09. \nKANUNGU DLG \nOpinion \nUnqualified \n\uf0b7 \nI \nnoted \nthat \nthe \nwage \nand \nPension \nPay \nroll \nof \nUGX.28,863,148,598 constituted 66% of the District\u2019s budget for \n2020/2021 of UGX.43.7 Bn \n\uf0b7 \nI noted that the District delayed to submit wage estimates to \nMoPs, as required \n\uf0b7", "metadata": {"page": 443, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nI reviewed Payroll funds absorption and noted that UGX.27 billion \n(95%) was spent out of the total receipts of UGX.28 billion, \nresulting in an unabsorbed balance of UGX.1 billion \n\uf0b7 \nI noted under payment of salary amounting to UGX 84,270,346 \n\uf0b7 \nI noted that 116 staff were paid using wrong salary scales, \nleading to over payments of UGX.33,520,148, \n\uf0b7 \nI noted that UGX.13,922,650 was paid to 11 staff who had either \nretired, transferred, absconded or died \n\uf0b7 \nI \nnoted \nthat \nthe \nDistrict \nmade \npayroll \ndeductions \nof \nUGX.6,465,198,289, but did not remit concurrently with the", "metadata": {"page": 443, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "salary payments in 11 out of 12 months. On average, it delayed \nby 11 days \n\uf0b7 \nI noted delays in the remittance of PAYE deductions to URA for 2 \nmonths \n\uf0b7 \nI noted that the District did not subject political leaders\u2019 gratuity \ntotalling to UGX.58,306,246 to the computation of PAYE in IPPS, \nleading to an under deduction of UGX.17,588,374 \n\uf0b7 \nI noted that 11 newly recruited/ transferred employees delayed \nto access payroll, with delays ranging between 1-6 months \n\uf0b7 \nI noted that the District did not prepare monthly wage, pension \nand gratuity performance analysis and thus did not submit \nquarterly returns on payroll to MoPS \n\uf0b7 \nI noted that 11 staff were paid a total of UGX.6,647,285 off the \nIPPS \n\uf0b7", "metadata": {"page": 443, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "IPPS \n\uf0b7 \nI carried out a survey to establish the effectiveness and reliability \nof \nthe \nIPPS/NID \nstaff/pensioner/beneficiaries\u2019 \nverification \ninterface and noted the following; \n\uf0b7 \nIn-adequate sensitization and training in the use and navigation \nof the IPPS. As a result, the HR team was unable to obtain \npension payrolls for the financial year under review and the \ninterface files for both salary and pension for the month of \nOctober 2020. \n\uf0b7 \nLack/inadequate verification and ineffectiveness of the system \nmay affect the integrity of the IPPS payroll \n\uf0b7 \nI noted that the District budgeted to collect UGX. 969,000,605", "metadata": {"page": 443, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "433 \n \nduring the year but collected UGX.349,340,889 representing \n(36%) performance \n\uf0b7 \nI noted that the Entity budgeted to receive UGX.2,914,268,788 \nas transfers from other Government Units. However, only \nUGX.1,346,142,527 (46%) \n\uf0b7 \nI noted that the District budgeted to receive UGX.958,677,000 as \nexternal/donor financing out of which UGX.121,361,000(14%), \nwas received \n\uf0b7 \nI noted that out of the total receipts for the financial year of \nUGX.37,438,548,600, UGX.36,912,545,231 (99%) was spent by \nthe entity resulting in an unspent balance of UGX.526,003,369", "metadata": {"page": 444, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "(1%). \n\uf0b7 \nI noted that UGX.66,181,436 was charged on items which did not \nreflect the nature of the expenditure as shown in \n\uf0b7 \nI noted an irregular payment of VAT UGX 28,258,475 to \ncontractors for the upgrade of Ntungamo HC II to HC III in \nButogata Subcounty despite aid-funded projects being VAT \nexempt . The irregular payment was attributed to the irregular \ninclusion of the VAT amount in the contract price during the \nprocurement process. \n\uf0b7 \nI noted that the District budgeted to receive UGX.931,475,272 \nfrom Uganda Road Fund for maintenance of 256.9 km of district \nroads, and UGX.900,073,304 (97%) was received and was \nutilised on maintenance of 242.5 km of roads, with a shortfall of", "metadata": {"page": 444, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "UGX.31,401,970(3%) which left 14.4 km of roads not worked on. \n10. \nKIRUHURA \nDLG \nOpinion \nUnqualified \n\uf0b7 \nI \nnoted \nthat \nthe \nwage \nand \nPension \nPay \nroll \nof \nUGX.12,779,567,829 constituted 50% of the District\u2019s budget for \n2020/2021 of UGX.25.49 Bn \n\uf0b7 \nI reviewed funds absorption and noted that UGX.11.6 billion \n(90.6%) was spent out of the total receipts of UGX.12.8 billion, \nresulting in an unabsorbed balance of UGX.1.1 billion \n\uf0b7 \nI noted salary underpayment of UGX.7,916,200", "metadata": {"page": 444, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nI noted salary overpayment of UGX.38,256,602 \n\uf0b7 \nI noted that whereas UGX.2,397,995,367 was deducted from \nemployees\u2019 salaries to be remitted to different beneficiaries, \nUGX.2,396,361,743 was remitted, leading to an over remittance \nof UGX.378,730 and an under remittance of UGX.2,012,354 \n\uf0b7 \nI noted that the District made loan deductions totalling \nUGX.71,827,411 from 14 employees that neither had letters of \nundertaking nor existed in the \u201cactive deduction\u201d or the \u201cmy \napproval\u201d reports on the Payroll Deduction Management System \n(PDMS) operated by Payroll Consults Africa (PCA). \n\uf0b7 \nAlso noted that 08 employees were not in \u2018\u2019my approval report \u2019\u2019 \nbut were in \u201cactive deduction report\u201d. \n\uf0b7 \nI further noted that loan deductions relating to 13 employees did", "metadata": {"page": 444, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "434 \n \nnot have evidence of consent by the employees \n\uf0b7 \nI \nnoted \nthat \nthe \nDistrict \nmade \npayroll \ndeductions \nof \nUGX.919,811,264, but did not remit the deductions concurrently \nwith the salary payments in 5 out of 9 months \n\uf0b7 \nI noted that the District did not subject political leaders\u2019 gratuity \ntotalling to UGX 30,692,400 to the computation of PAYE in IPPS, \nleading to an under deduction of UGX.8,941,216 \n\uf0b7 \nI noted that 38 newly recruited/transferred employees delayed to \naccess the payroll, with delays ranging between 1-2 months \n\uf0b7 \nI noted that only five(5) out a sample of 52 pensioners delayed", "metadata": {"page": 445, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "to access the pension payroll, with delays ranging up to a month \n\uf0b7 \nI noted that 15 staff were paid a total of UGX 12,719,746 \nrespectively off the IPPS \n\uf0b7 \nI noted that although the entity had prepared a strategic plan \nthat at the time of audit, it had not yet been approved as aligned \nto the NDP-III \n\uf0b7 \nI noted that Kiruhura District budgeted to collect UGX.1.19Bn \nduring the year under review. The entity collected UGX.0.43Bn \nrepresenting 36.16% performance \n\uf0b7 \nI noted that the entity budgeted to receive UGX.2.78 Bn as \ntransfers \nfrom \nother \nGovernment \nUnits. \nHowever, \nonly \nUGX.1.53Bn was received representing 55.14% performance \n\uf0b7", "metadata": {"page": 445, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nI noted that the entity budgeted to receive UGX.0.85Bn as \nexternal/donor financing out of which UGX.0.065Bn was received \nrepresenting 7.75% performance \n\uf0b7 \nI noted that Out of the total warrants for the financial year of \nUGX.22.39 Bn, UGX.20.25Bn was utilized and spent by the entity \nresulting in an unspent balance of UGX.2.14 Bn representing an \nabsorption level of 90%. \n\uf0b7 \nI assessed the implementation of eight (8) outputs that were \nfully quantified with a total of twenty-one (21) activities worth \nUGX.2.96Bn and noted the following. \n\uf0b7 \nThree (3) outputs with total expenditure amounting to \nUGX.0.688Bn were fully implemented representing 37.5% of the \noutputs. \n\uf0b7", "metadata": {"page": 445, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "outputs. \n\uf0b7 \nFive (5) outputs with total expenditure amounting to UGX.2.27Bn \nwere partially implemented representing 62.45% of the outputs \n\uf0b7 \nI noted that the entity did not prepare and submit the annual \nmonitoring plans to MoFPED, MoLG and NPA as required. \n\uf0b7 \nI noted that the entity also did not submit quarterly monitoring \nreports to the Office of the Prime Minister and MoFPED as \nrequired \n\uf0b7 \nI noted that the entity submitted performance reports for Q1, \nQ2, Q3, Q4 after the deadline given for submission of the reports \n\uf0b7 \nI noted variances in performance from my review of the Annual", "metadata": {"page": 445, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "435 \n \ncumulative \nperformance \nreports \nand \nphysical \ninspections/verification of performance. \n\uf0b7 \nI reviewed the implementation of Uganda Road Fund and noted \nthe following; \n\uf0b7 \nA total of UGX.726,279,445 was budgeted for however the \nDistrict Council received UGX.1,148,526,601 (158%) \n\uf0b7 \nA total of 221.90 km at an estimated cost of UGX.31,213,190 \nwas planned to be undertaken. However, audit revealed that no \nwork was actually undertaken. Thus the entire 221.90 km were \nnot maintained \n\uf0b7 \nA total of 6 km at an estimated cost of UGX.17,983,012 was \nplanned to be undertaken. Audit revealed that 34.6 km was", "metadata": {"page": 446, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "undertaken at a cost of UGX.187,493,520. I noted that the initial \nplan (budget) was not revised when additional funds were \nreceived. \n11. \nKISORO DLG \nOpinion \nUnqualified \n\uf0b7 \nI \nnoted \nthat \nthe \nwage \nand \nPension \nPay \nroll \nof \nUGX.29,217,966,405 constituted 72% of the District\u2019s budget for \n2020/2021 of UGX.40.68 Bn \n\uf0b7 \nI noted that the District did not submit wage estimates to MoPs, \nas required. \n\uf0b7 \nI noted an over payment of Pension of UGX.5,223,859 \n\uf0b7 \nI also noted that the District made payroll deductions of", "metadata": {"page": 446, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "UGX2.595 billion, but did not remit concurrently with the salary \npayments in 6 out of 6 months sampled. On average, it delayed \nby 13.5 days \n\uf0b7 \nI noted delays in the remittance of PAYE deductions to URA \nranging from 3 \u2013 32 days \n\uf0b7 \nI noted that the District did not subject political leaders\u2019 gratuity \ntotalling to UGX.419,638,073 ` to the computation of PAYE in \nIPPS, leading to an under deduction of UGX.125,070,214 \n\uf0b7 \nI noted that 7 pensioners delayed to access the pension payroll, \nwith delays ranging between 1-4 months \n\uf0b7 \nI noted that the Districts prepared monthly wage, pension and \ngratuity performance analysis but did not submit quarterly \nreturns on payroll to MoPS \n\uf0b7", "metadata": {"page": 446, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nI noted that 15 staff were paid a total of UGX.47,243,693 off the \nIPPS \n\uf0b7 \nI observed that there were variances of UGX.29,495,726 \nbetween the figures in the interface files and entity payroll \nregisters \n\uf0b7 \nSome information on the NIRA interface is sometimes not \nvisible/available for instance date of birth and the photo which \ndelays the verification exercise \n\uf0b7 \nI noted that Kisoro DLG budgeted to collect UGX.461,618,300 \nduring \nthe \nyear \nunder \nreview. \nThe \nentity \ncollected", "metadata": {"page": 446, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "436 \n \nUGX.256,912,576 representing 55.7% performance. \n\uf0b7 \nI noted that the entity budgeted to receive UGX.1.10Bn as \ntransfers from other Government Units out of which UGX.0.73Bn \nwas received representing 66.2% performance \n\uf0b7 \nI noted thata the entity budgeted to receive 1.5Bn from external \nassistance but received 0.11Bn representing 7.6%. \n\uf0b7 \nI assessed the implementation of fifteen (15) outputs that were \nfully quantified with a total of fifteen (15) activities worth \nUGX.3.81Bn and noted the following; \n\uf0b7 \nThirteen (13) outputs with Thirteen (13) activities worth \nUGX.3.808 Bn were fully implemented representing 58.6% of the \noutputs. \n\uf0b7", "metadata": {"page": 447, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "outputs. \n\uf0b7 \nTwo (2) outputs with two activities(2) worth UGX.0.54 Bn were \nnot implemented representing 3.6% of the outputs(included in \nthe schedule at UGX.0 because no funds were spent) \n\uf0b7 \nI noted that the entity submitted performance reports for Q1, \nQ2, Q3 and Q4 after the deadline given for submission of the \nreports \n\uf0b7 \nI noted the delayed completion of Nyakinama Seed School \n(UGIFT project) worth 2,331,850,894 \n\uf0b7 \nI noted that the District budgeted and received funds worth \nUGX.344,284,000 under UGIFT program for the construction of \nMwumba Progressive SS. However, this project did not take off \ndue to delays in the procurement process and at the time of \naudit in August, 2021, the project had not started with a delay of \n12 months.", "metadata": {"page": 447, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "12 months. \n12. \nMBARARA CITY \nOpinion \nUnqualified \n\uf0b7 \nI \nnoted \nthat \nthe \nwage \nand \nPension \nPayroll \nof \nUGX.17,869,060,735 constituted 39.4% of the Municipal Council\u2019s \nbudget for 2020/2021 of UGX.45,355,732,366. \n\uf0b7 \nI reviewed payroll funds absorption and noted that UGX.17.2 \nbillion (96.25%) was spent out of the total receipts of UGX.17.9 \nbillion, resulting in an unabsorbed balance of UGX.0.70 billion \n\uf0b7 \nI noted salary underpayment of UGX.3,201,482 \n\uf0b7", "metadata": {"page": 447, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nI noted that UGX 18,896,920 was paid to 2 staff who had died \n\uf0b7 \nI noted that whereas UGX.3,348,734,358 was deducted from \nemployees\u2019 salaries to be remitted to different beneficiaries, \nUGX.3,346,988,823 was remitted leading to an over remittance \nof UGX.7,068,846 and under remittance of UGX.8,814,381 \n\uf0b7 \nI also noted that the Municipal Council made payroll deductions \nof UGX.790,748,220, but did not remit concurrently with the \nsalary payments in 12 out 12 months. On average, it delayed by \n23 days \n\uf0b7 \nI also noted delays in the remittance of PAYE deductions to URA \nranging from 2 \u2013 34 days \n\uf0b7 \n\uf0b7 \nI noted that 14 newly recruited/ transferred employees delayed", "metadata": {"page": 447, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "437 \n \nto access payroll, with delays ranging between 1-2 months \n\uf0b7 \nI noted that 22 pensioners delayed to access the pension payroll, \nwith delays ranging between 1 to 10 months \n\uf0b7 \nI noted that the Municipal Council did not prepare monthly wage, \npension and gratuity performance analysis and thus did not \nsubmit quarterly returns on payroll to MoPS \n\uf0b7 \nI observed that there were variances of UGX.7,662,578 between \nthe MoPS IPPS and Entity payroll registers \n\uf0b7 \nThe merger of both IPPS and NIRA system have not been fully \ndone in that when there is a system error each entity has to clear \nan error in its jurisdiction thus time consuming and affecting \ntimely service delivery. \n\uf0b7 \nThe system has not been fully decentralized to the extent that \nsystem errors under Employee verification system (issues) with", "metadata": {"page": 448, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "NIRA have to be handled at the Headquarter and this contributes \nto multiple negative factors such delayed clearance of technical \nissues at least a period of three month or more. \n\uf0b7 \nI noted that although the entity had prepared a strategic plan, at \nthe time of audit, it had not yet been approved as aligned to the \nNDP-III. \n\uf0b7 \nI noted that the entity collected local revenue of UGX.3.54Bn of \n6.42Bn representing 55.25% performance \n\uf0b7 \nI noted that the entity budgeted to receive UGX.37.49Bn as \ngrants from the Treasury. However, UGX.31.59 Bn was received, \nrepresenting 84.26% performance \n\uf0b7 \nI noted that the entity budgeted to receive UGX.1.45Bn as \ntransfers from other Government Units. However, UGX.7.65Bn \nwas received representing 527.59% performance \n\uf0b7", "metadata": {"page": 448, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nI noted that out of the total receipts for the financial year of \nUGX.42.84Bn, UGX 36.68Bn was spent by the entity resulting in \nan unspent balance of UGX 6.15 Bn representing an absorption \nlevel of 85.6%. \n\uf0b7 \nI noted that the management submitted performance reports for \nQ1, Q2, Q3, Q4 after the deadline given for submission \n\uf0b7 \nI noted that the contract for the upgrade of Kyarwabuganda HCII \nto HCIII worth UGX.540,531,906 was completed fourteen (14) \nmonths after the expected/ contracted end date \n\uf0b7 \nI also noted that another contract of UGX.279,324,596 was \nawarded to M/s Twinka Enterprises (U) Ltd to construct three \nunits of Doctors houses with planned commencement date of", "metadata": {"page": 448, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "26/12/2019, and completion date by 26/06/2020. A review of the \nprogress report revealed that planned works were completed on \n22/08/2020, eleven (11) months outside the contract period \nwithout approval.", "metadata": {"page": 448, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "438 \n \n13. \nMITOOMA DLG \nOpinion \nUnqualified \n\uf0b7 \nI \nnoted \nthat \nthe \nwage \nand \nPension \nPay \nroll \nof \nUGX.18,505,405,927 constituted 63% of the District\u2019s budget for \n2020/2021 of UGX.29,350,754,495. \n\uf0b7 \nI noted that the District did not to submit wage estimates to \nMoPS, as required \n\uf0b7 \nI noted delays in the remittance of PAYE deductions to URA of up \nto 100 days \n\uf0b7 \nI noted that 47 newly recruited/transferred employees delayed to \naccess payroll, with delays ranging between 2-14 months \n\uf0b7", "metadata": {"page": 449, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nI noted that 7 pensioners delayed to access the pension payroll, \nwith delays ranging between 1-14 months \n\uf0b7 \nI noted that the District did not prepare monthly wage, pension \nand gratuity performance analysis and thus did not submit \nquarterly returns on payroll to MoPS \n\uf0b7 \nI noted that 6 pensioners were paid a total of UGX.26,607,195 \noff the IPPS \n\uf0b7 \nI observed that there were variances of UGX.514,103,048 \nbetween the figures in the MoPS IPPS and entity payroll \nregisters, \n\uf0b7 \nOperational challenges were encountered; E.g. Un-reliable \nnetwork in Mitooma where HR staff had to physically travel to \nthe neighbouring Bushenyi District to be able to download \ndocuments such as pension payroll registers. \n\uf0b7 \nI noted that the upgrade of Mayanga HC II to HC III contracted", "metadata": {"page": 449, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "to Khalsa (U) Ltd was still under construction and only at roofing \nstage by the time of audit inspection on 13th October, 2021. \nHowever, the medical equipment had already been procured and \ndelivered under a separate contract to M/s Rodrisa Supplies \nLimited who was expected to supply, deliver, instal, train and \ncommission the medical equipment. Procurement of medical \nequipment for a health facility still at foundation stage may lead \nto obsolescence, pilferage and physical damage leading to \nnugatory expenditure. \n14. \nNTUNGAMO DLG \nOpinion \nUnqualified \n\uf0b7 \nI \nnoted \nthat \nthe \nwage \nand \nPension \nPay \nroll \nof \nUGX.35,484,605,345 constituted 56% of the District\u2019s budget for", "metadata": {"page": 449, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "2020/2021 of UGX.63,733,887,733. \n\uf0b7 \nI \nreviewed \npayroll \nfunds \nabsorption \nand \nnoted \nthat \nUGX.34,743,195,467 (98%) was spent out of the total receipts of \nUGX.35,484,605,345, \nresulting \nin \nunabsorbed \nbalance \nof \nUGX.741,409,878 \n\uf0b7 \nI noted that the District made payroll deductions but did not \nremit concurrently with the salary payments in 8 out of 8 \nmonths. On average, it delayed by 12 days \n\uf0b7 \nI noted that all remittances of PAYE deductions were paid to URA \nranged from 9 - 13 days", "metadata": {"page": 449, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "439 \n \n\uf0b7 \nI noted that the District did not subject political leaders\u2019 gratuity \ntotalling to UGX.60,526,800 to the computation of PAYE in IPPS, \nleading to an under deduction of UGX.14,374,090 \n\uf0b7 \nI noted that the entity did not prepare monthly wage, pension \nand gratuity performance analysis, and did not submit quarterly \nreturns on payroll to MoPS \n\uf0b7 \nI noted that 29 staff were paid a total of UGX.91,713,882 off the \nIPPS \n\uf0b7 \nI carried out a survey to establish the effectiveness and reliability \nof \nthe \nIPPS/NID \nstaff/pensioner/beneficiaries\u2019 \nverification \ninterface and noted the following; \n\uf0b7 \nI noted that the entity had no approved a strategic plan at the", "metadata": {"page": 450, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "time of audit \n\uf0b7 \nI noted that the District budgeted to collect UGX.1,554,984,179 \nduring the year but collected UGX.1,127,109,918 representing \n(72%) performance \n\uf0b7 \nI noted that the entity budgeted to receive UGX.8,698,586,134 \nas transfers from other Government Units out of which \nUGX.1,307,013,923 was received representing 15% performance \nleading to a shortfall of UGX.7,391,572,211(85%) \n\uf0b7 \nI noted that the entity budgeted to receive UGX.1,901,504,814 \nas external/donor financing out of which UGX.267,332,705 was \nreceived representing 14% performance \n\uf0b7 \nOut of the total receipts for the financial year of UGX. 53.52,", "metadata": {"page": 450, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "UGX. 51.85 (97%) was spent by the entity resulting in an \nunspent balance of UGX. 1.67 (3%). \n\uf0b7 \nI carried out an audit inspection of the Construction of Kihanga \nseed Secondary school (UGX.718,168,225) in September 2021, \nand noted that the project had been abandoned and behind \nschedule by 20 months \n\uf0b7 \nI noted that most of the District land did not have certificates of \nland titles \n15. \nRUKIGA DLG \nOpinion \nUnqualified \n\uf0b7 \nI \nnoted \nthat \nthe \nwage \nand \nPension \nPay \nroll \nof \nUGX.15,291,042,432 constituted 50.4% of the District\u2019s budget", "metadata": {"page": 450, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "for 2020/2021 of UGX.30,313,124,744 \n\uf0b7 \nI noted that the District did not submit wage estimates to MoPS, \nas required \n\uf0b7 \nI reviewed payroll funds absorption and noted that UGX.13.167 \nbillion (86%) was spent out of the total receipts of UGX.15.29 \nbillion, resulting in an unabsorbed balance of UGX 2.12 billion \n\uf0b7 \nI noted that whereas UGX.909,840,551 was deducted from \nemployees\u2019 salaries to be remitted to different beneficiaries, \nUGX.909,338,143 was remitted, leading to an over/under \nremittance of UGX.153,842 and UGX.656,250 respectively \n\uf0b7 \nI noted that the District made payroll deductions of UGX 0.844", "metadata": {"page": 450, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "440 \n \nbillion, but did not remit concurrently with the salary payments in \n11 out of 12 months. On average, it delayed by 6.5 days \n\uf0b7 \nI noted that the District did not subject political leaders\u2019 gratuity \ntotalling to UGX.34,918,061 to the computation of PAYE in IPPS, \nleading to an under deduction of UGX.10,880,299 \n\uf0b7 \nI noted that 6 newly recruited/transferred employees delayed to \naccess payroll, with delays ranging between 1- 3.5 months \n\uf0b7 \nI noted that the District did not prepare monthly wage, pension \nand gratuity performance analysis nor submitted quarterly \nreturns on payroll to MoPS \n\uf0b7 \nI noted that UGX.24,681,002 was paid to 16 staffs that were off \nthe IPPS payroll register \n\uf0b7", "metadata": {"page": 451, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nI observed that there were variances of UGX30,377,765 between \nthe figures in the interface files and entity payroll registers \n\uf0b7 \nI noted that the entity prepared a strategic plan but was not yet \napproved. \n\uf0b7 \nI noted that Rukiga DLG budgeted to collect UGX. 285,061,188 \nduring \nthe \nyear \nunder \nreview. \nThe \nentity \ncollected \nUGX.155,082,884 representing 54% performance. \n\uf0b7 \nI noted that the entity budgeted to receive UGX.8.77Bn as \ntransfers from other Government Units out of which UGX.0.68Bn \nwas received representing 11% performance \n\uf0b7 \nI noted that the entity budgeted to receive 1.02Bn from external \nassistance but received 0.05Bn representing 5%. \n\uf0b7", "metadata": {"page": 451, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nI noted that out of UGX.21,252,068,152 warrants to finance the \ncouncil\u2019s budget, only UGX.18,677,785,569 (88%) was spent \nleaving a balance of UGX.2,574,282,583 (14%) un utilized \n\uf0b7 \nI noted that the entity did not also submit quarterly monitoring \nreports to the Office of the Prime Minister and MoFPED as \nrequired. \n\uf0b7 \nI noted that the entity submitted performance reports for Q3, \nand Q4 after the deadline given for submission of the reports \n\uf0b7 \nI noted that the District Council budgeted to receive \nUGX.467,373,000 (Excluding funds to be transferred to LLGs) \nfrom Uganda Road Fund for maintenance of 80.9kms of District \nroads, and UGX.252,363,000 (54%%) was received and was", "metadata": {"page": 451, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "utilised on maintenance of 74.7kms of roads, installation of \nculverts, equipment repairs and supervision with a shortfall of \nUGX.215,010,000 (46%) As a result of revenue shortage, 6.2KMs \nof roads were not maintained under periodic maintenance as \nplanned \n16. \nRUKUNGIRI DLG \nOpinion \nUnqualified \n\uf0b7 \nI \nnoted \nthat \nthe \nwage \nand \nPension \nPay \nroll \nof \nUGX.30,042,268,241 constituted 66.8% of the District\u2019s budget \nfor 2020/2021 of UGX.44.95 Bn. \n\uf0b7 \nI noted that the District did not submit wage estimates to MoPS,", "metadata": {"page": 451, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "441 \n \nas required \n\uf0b7 \nI noted that two Education Officers (Twinomuhwezi Julius IPPS \nno.328279 and Abaho Besigye Gerald IPPS no. 326667) under U4 \nwho were erroneously captured as Assistant Education Officers \nand paid under U5 thus an over payment of UGX 304,295 \n\uf0b7 \nI noted that UGX.28,077,304 was paid to 19 staff who had either \nretired, transferred, absconded or died \n\uf0b7 \nI noted that whereas UGX.6,307,960,826 was deducted from \nemployees\u2019 salaries to be remitted to different beneficiaries, UGX \n6,304,814,535 was remitted, leading to an over/ under \nremittance of UGX.5,128,867 and UGX.8,275,158 respectively \n\uf0b7", "metadata": {"page": 452, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nI noted that the District made payroll deductions of UGX.2.259 \nbillion, but did not remit concurrently with the salary payments in \n10 out of 12 months. On average, it delayed by 6.5 days \n\uf0b7 \nI noted delays in the remittance of PAYE deductions to URA \nranging from 2 \u2013 22 days \n\uf0b7 \nI noted that the District did not subject political leaders\u2019 gratuity \ntotalling to UGX.11,718,959 to the computation of PAYE in IPPS, \nleading to an under deduction of UGX.3,715,200 \n\uf0b7 \nI noted that 7 newly recruited/ transferred employees delayed to \naccess payroll, with delays ranging between 1-5 months \n\uf0b7 \nI noted that 1 pensioner delayed to access the pension payroll, \nwith delays of over of 6 months \n\uf0b7 \nI noted that the Districts prepared monthly wage, pension and", "metadata": {"page": 452, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "gratuity performance analysis but did not submit quarterly \nreturns on payroll to MoPS \n\uf0b7 \nI observed that there were variances of UGX 190,771,973 \nbetween the figures in the interface files and entity payroll \nregisters \n\uf0b7 \nI noted that the entity had not approved a strategic plan that is \naligned to the NDP-III at the time of audit \n\uf0b7 \nI noted Rukungiri DLG budgeted to collect UGX.776,944,000 \nduring the year under review. However the entity collected \nUGX.625,618,740 representing 81% performance. \n\uf0b7 \nI noted that the entity budgeted to receive UGX.1,411,248,710 \nas transfers from other Government Units out of which \nUGX.888,876,678 was received representing 63% performance \n\uf0b7 \nI noted that the entity budgeted to receive 1.05Bn from external", "metadata": {"page": 452, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "assistance but received 0.116 Bn representing 11%. \n\uf0b7 \nI noted that out of UGX.42,031,304,808 warrants to finance the \ncouncil\u2019s budget, only UGX.40,435,316,368 (96%) was spent \nleaving a balance of UGX.1,595,988,440 (4%) un utilized \n\uf0b7 \nI noted that the entity submitted performance reports for Q2, \nQ3, and Q4 after the deadline \n\uf0b7 \nI noted the delayed completion of Kebisoni Seed School (UGIFT", "metadata": {"page": 452, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "442 \n \nproject). Project behind schedule by four(04) months \n\uf0b7 \nI noted that The District received UGX.499,963,986 (96.3%) of \nits Uganda Road fund and as a result was not able to maintain \n14.2 Km of roads as planned \n17. \nRWAMPARA DLG \nOpinion \nUnqualified \n\uf0b7 \nI \nnoted \nthat \nthe \nwage \nand \nPension \nPay \nroll \nof \nUGX.12,530,332,963 constituted 62% of the District\u2019s budget for \n2020/2021 of UGX.20,291,699,406. \n\uf0b7 \nI noted that the District did not to submit wage estimates to \nMoPS, as required \n\uf0b7", "metadata": {"page": 453, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "\uf0b7 \nI noted salary overpayment of UGX 6,766,726 \n\uf0b7 \nI further noted that there was an under payment of \nUGX.30,357,501 \n\uf0b7 \nI noted pension and gratuity overpayment of UGX 2,144,892 \n\uf0b7 \nI noted that UGX.4,580,492 was paid to 4 staff who had either \nretired or died \n\uf0b7 \nI noted that whereas UGX.2,342,683,197 was deducted from \nemployees\u2019 salaries to be remitted to different beneficiaries, \nUGX.2,336,599,219 was remitted, leading to an over remittance \nof UGX.1,549,064 and under remittance of UGX.7,633,042 \n\uf0b7 \nI noted that the District made unauthorized loan deductions", "metadata": {"page": 453, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "totalling UGX.48 million. The deductions were from 28 employees \nthat had no letters of undertaking however existed in the \u201cactive \ndeduction\u201d and the \u201cmy approval\u201d reports on the PDMS-Payroll \nDeduction Management System, operated by PCA-Payroll \nConsults Africa \n\uf0b7 \nI noted that deductions to UCLA/UBA were not remitted \nconcurrently with salary payments for 12 out 12 months. I also \nnoted that there was an average delay to remit deductions to \nUCLA/UBA of 21.3 days \n\uf0b7 \nI noted delays in the remittance of PAYE deductions to URA for 2 \nmonths. I also noted that there was an average delay to remit \ndeductions to URA of 0.5 days \n\uf0b7 \nI noted that the District did not subject political leaders\u2019 gratuity \ntotalling to UGX.3,114,720 to the computation of PAYE in IPPS,", "metadata": {"page": 453, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "leading to an under deduction of UGX.934,416 \n\uf0b7 \nI noted that 51 newly recruited/ transferred employees delayed \nto access payroll, with delays ranging between 9 weeks \n\uf0b7 \nI noted that 15 pensioners delayed to access the pension payroll, \nwith delays ranging between 3-4 months \n\uf0b7 \nnoted that the District did not prepare monthly wage, pension \nand gratuity performance analysis and thus did not submit \nquarterly returns on payroll to MoPS, \n\uf0b7 \nI noted that although the district had prepared a strategic plan \nthat at the time of audit, it had not yet been approved as aligned", "metadata": {"page": 453, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "443 \n \nto the NDP-III \n\uf0b7 \nI noted that Rwampara District budgeted to collect UGX.0.392bn \nduring the year under review. The entity collected UGX.0.379bn \nrepresenting 96.68% performance. \n\uf0b7 \nI noted that the entity budgeted to receive UGX.1.51 Bn as \ntransfers from other Government Units. However, only UGX.0.68 \nBn was received representing 45% performance leading to \nrevenue shortfall of UGX. 0.83Bn (55%). \n18. \nSHEEMA DLG \nOpinion \nUnqualified \n\uf0b7 \nI \nnoted \nthat \nthe \nwage \nand \nPension \nPay \nroll \nof", "metadata": {"page": 454, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "roll \nof \nUGX.18,356,082,529 constituted 65% of the District\u2019s budget for \n2020/2021 of UGX.27,950,550,703 \n\uf0b7 \nI reviewed payroll funds absorption and noted that UGX.17.61 \nbillion (95%) was spent out of the total receipts of UGX.18.52 \nbillion, resulting in an unabsorbed balance of UGX.0.91 billion. \n\uf0b7 \nI noted that whereas UGX.3,758,132,718 was deducted from \nemployees\u2019 salaries to be remitted to different beneficiaries, \nUGX.3,749,366,009 was remitted, leading to an over/ under \nremittance of UGX.73,581,127 and UGX.82,347,836 \n\uf0b7 \nI noted that the District made unauthorized loan deductions to", "metadata": {"page": 454, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "663 employees totalling UGX.1,146,130,412. The deductions \nneither had letters of undertaking nor existed in the \u201cactive \ndeduction\u201d or the \u201cmy approval\u201d reports on the PDMS-Payroll \nDeduction Management System. \n\uf0b7 \nI noted that 3 pensioners delayed to access the pension payroll, \nwith delays ranging between 12-22 months \n\uf0b7 \nI noted that UGX.5,912,486 was charged on account codes other \nthan those prescribed for salary, pension and gratuity \n\uf0b7 \nI noted that the District did not prepare monthly wage, pension \nand gratuity performance analysis and thus did not submit \nquarterly returns on payroll to MoPS, \n\uf0b7 \nI noted that 272 staff were paid a total of UGX. 309, 147,845 off \nIPPS \n\uf0b7 \nMismatches of names that take long to be corrected by NIRA and", "metadata": {"page": 454, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "affects ability to timely access people on payroll. \n\uf0b7 \nIn some cases, the statuses under IPPS remain \u201cNOT VERIFIED\u201d \neven when the record is verified and approved. This again \nrequires one to contact Ministry of Public service for an \nintervention. \n\uf0b7 \nIt was noted that at the time of audit (June 2020/21) out of 5 \nstrategic targets, Sheema district fully attained 1 target, and \npartially completed 4 \n\uf0b7 \nI noted that the District budgeted to collect UGX.0.587million \nduring \nthe \nyear \nunder \nreview. \nThe \nentity \ncollected \nUGX.0.351million representing 60% performances \n\uf0b7 \nI noted that he entity budgeted to receive UGX.960,458,000 as", "metadata": {"page": 454, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "444 \n \ntransfers \nfrom \nother \nGovernment \nUnits \nout \nof \nwhich \nUGX.892,442,495 was received representing 93% performance. \n\uf0b7 \nI noted that the district budgeted to receive UGX.279,500,000 as \nexternal/donor financing out of which UGX.130,287,709 million \nwas received representing 47% performance \n\uf0b7 \nI noted that out of the total receipts for the financial year of \nUGX.26.95Bn,) UGX.25,32Bn was spent by the entity resulting in \nan unspent balance of UGX.1.63 Bn representing an absorption \nlevel of 94%. \n\uf0b7 \nI noted that the entity submitted performance reports for Q1, \nQ2, Q3, Q4 after the deadline given for submission of the reports \n445 \n \nANNEXURE III: REPORTS AND CONSOLIDATED GOVERNMENT OF UGANDA FINANCIAL STATEMENTS", "metadata": {"page": 455, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": []}}, {"content": "| | ACRONYM | DESCRIPTION |\n|---:|:----------|:--------------------------------------------------------|\n| 0 | AG | Auditor General |\n| 1 | AO | Accounting Officer |\n| 2 | Bn | Billion |\n| 3 | BoU | Bank of Uganda |\n| 4 | CAs | Contracting Authorities |\n| 5 | CFR | Central Forest Reserve |\n| 6 | DGAL | Directorate of Government Analytical Laboratory |\n| 7 | DLB | District Land Board |\n| 8 | FY | Financial Year |\n| 9 | GDP | Gross Domestic Product |\n| 10 | GoU | Government of Uganda |\n| 11 | ICT | Information Communication Technology |\n| 12 | IDA | International Development Association |\n| 13 | IESBA | International Ethics Standards Board for Accountants |\n| 14 | IFMS | Integrated Financial Management System |\n| 15 | IMF | International Monetary Fund |\n| 16 | KIS | Kalangala Infrastructure Services |\n| 17 | MAAIF | Ministry of Agriculture Animal Industry and Fisheries |\n| 18 | MDAs | Ministries, Departments and Agencies |\n| 19 | MEMD | Ministry of Energy and Mineral Development |\n| 20 | MOFPED | Ministry of Finance, Planning, and Economic Development |\n| 21 | MoGLSD | Ministry of Gender Labour and Social Development |\n| 22 | MoU | Memoranda of Understanding |\n| 23 | MTEF | Medium Term Expenditure Framework |\n| 24 | NAA | National Audit Act |\n| 25 | NBI | National Backbone Infrastructure |\n| 26 | NDP | National Development Plan |\n| 27 | NDPII | Second National Development Plan |\n| 28 | NEF | National Environment Fund |\n| 29 | NEMA | National Environment Management Authority |\n| 30 | NFA | National Forestry Authority |\n| 31 | NGO | Non-Governmental Organisation |\n| 32 | NIN | National Identification Number |\n| 33 | NIRA | National Identification Registration Authority |\n| 34 | NPA | National Planning Authority |\n| 35 | NWSC | National Water and Sewerage Corporation |\n| 36 | OAG | Office of the Auditor General |\n| 37 | PAPs | Project Affected Persons |\n| 38 | PDMF | Public Debt Management Framework |\n| 39 | PFMA | Public Finance Management Act, 2015 |\n| 40 | PS/ST | Permanent Secretary/Secretary to the Treasury |\n| 41 | PSST | Permanent Secretary and Secretary to Treasury |\n| 42 | TAI | Treasury Accounting Instructions, 2016 |\n| 43 | TIN | Tax Identification Number |\n| 44 | Tn | Trillion |\n| 45 | TWGs | Technical Working Groups |\n| 46 | UCC | Uganda Communications Commission |", "metadata": {"page": 9, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | UCF | Uganda Consolidated Fund |\n|---:|:------|:--------------------------------------------------------|\n| 0 | UDC | Uganda Development Corporation |\n| 1 | UETCL | Uganda Electricity Transmission Company Limited |\n| 2 | UGX | Uganda Shillings |\n| 3 | URA | Uganda Revenue Authority |\n| 4 | USD | United States Dollars |\n| 5 | USMID | Uganda Support for Municipal Infrastructure Development |\n| 6 | WMD | Wetlands Management Department |\n| 7 | YIGs | Youth Interest Groups |\n| 8 | YLP | Youth Livelihood Programme |", "metadata": {"page": 10, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Term | Definition |\n|---:|:-----------------------|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Classified Expenditure | The expenses and commitments incurred by an authorised agency for the collection and dissemination of information related to national security interests |\n| 1 | Contingent Liability | A potential liability that may occur depending on the outcome of an uncertain future event. |\n| 2 | Domestic Arrears | Domestic arrears refer to short-term debts incurred by Governments against unpaid procurement invoices for supply of goods and services during the financial year |\n| 3 | External Debt | Portion of a country's debt that was borrowed from foreign lenders including commercial banks, Governments or international financial institutions. |\n| 4 | Garnishee order | A form of enforcing a judgment debt against a creditor to recover money. |\n| 5 | Nugatory Expenditure | Expenditure that does not achieve any result |\n| 6 | Off-budget financing | Off-buget refers to expenditure that is not funded through the budget |\n| 7 | Recruitment | Refers to the process of attracting, screening, selecting, and on boarding a qualified person for a job, provided by an employer in another territory and the preparation for their departure. |\n| 8 | Revolving Fund | A fund that is continually replenished as withdrawals are made. |\n| 9 | | |", "metadata": {"page": 11, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Type of Entity/Audit | Planned Audits for the audit year 2021 | Revised Planned Audits for the year 2021 | Actual Performance as at December 31, 2021 | Audits deferred during the year |\n|---:|:---------------------------------------------------------|:-----------------------------------------|:-------------------------------------------|:---------------------------------------------|:----------------------------------|\n| 0 | MDAs | 123 | 170 | 128 | 42 |\n| 1 | Funds | 3 | 3 | 3 | 0 |\n| 2 | Classified entities | 13 | 13 | 0 | 13 |\n| 3 | International Audits | 2 | 2 | 2 | 0 |\n| 4 | Commissions, Statutory Authorities and State Enterprises | 95 | 121 | 107 | 14 |\n| 5 | Projects | 167 | 257 | 146 | 111 |\n| 6 | PSAs | 4 | 8 | 4 | 4 |\n| 7 | Districts | 135 | 135 | 115 | 20 |\n| 8 | Municipal Councils and Cities | 41 | 41 | 24 | 17 |\n| 9 | Lower Local Governments for 18/19 and 19/20 | 1,662 | 2,291 | 2,048 | 243 |\n| 10 | Regional Referral hospitals | 14 | 14 | 6 | 8 |\n| 11 | Schools/Tertiary institutions | 379 | 746 | 0 | 746 |\n| 12 | Forensics/Special Audit | 71 | 71 | 8 | 63 |\n| 13 | VFM Studies | 20 | 41 | 8 | 33 |\n| 14 | Engineering Audits | 230 | 240 | 90 | 150 |\n| 15 | IT Audits | 10 | 12 | 3 | 9 |\n| 16 | TOTAL | 2,969 | 4,165 | 2,692 | 1,473 |", "metadata": {"page": 14, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Category of Audited entities | Type of Opinions | Unnamed: 2 | Unnamed: 3 | Unnamed: 4 | Total |\n|---:|:---------------------------------------------------------|:-------------------|:-------------|:-------------|:-------------|:--------|\n| 0 | | Unqualified | Qualified | Adverse | Disclaimer | |\n| 1 | Ministries, Departments and Agencies | 116 | 12 | 0 | 0 | 128.0 |\n| 2 | Commissions, Statutory Authorities and State Enterprises | 100 | 7 | 0 | 0 | 107.0 |\n| 3 | Projects | 144 | 2 | 0 | 0 | 146.0 |\n| 4 | Districts Local Governments | 110 | 5 | 0 | 0 | 115.0 |\n| 5 | Regional Referral hospitals | 6 | 0 | 0 | 0 | 6.0 |\n| 6 | Municipal Councils and Cities | 23 | 1 | 0 | 0 | 24.0 |\n| 7 | Funds | 3 | 0 | 0 | 0 | 3.0 |\n| 8 | TOTAL | 502 | 27 | 0 | 0 | 529.0 |", "metadata": {"page": 15, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Type of Opinion | 2020/21 | 2019/20 | 2018/19 |\n|---:|:------------------|----------:|----------:|----------:|\n| 0 | Unqualified | 502 | 420 | 433 |\n| 1 | Qualified | 27 | 33 | 54 |\n| 2 | Adverse | 0 | 0 | 0 |\n| 3 | Disclaimer | 0 | 0 | 0 |\n| 4 | Total | 529 | 453 | 487 |", "metadata": {"page": 15, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 0 | 1 | 2 | 3 | 4 | 5 | 6 |\n|---:|:--------------|:---------------------------------------------------------------------------------|:-----------|:-----------|:-----------|:-----------|:------------|\n| 0 | SN Finding | Unnamed: 1 | Unnamed: 4 | Unnamed: 7 | Unnamed: 8 | Unnamed: 9 | Unnamed: 10 |\n| 1 | \uf0b7 \uf0b7 A \uf0b7 \uf0b7 A \uf0b7 | External Resources | nan | nan | nan | nan | nan |\n| 2 | nan | Budget support | nan | nan | nan | nan | nan |\n| 3 | nan | Grants | 133.56 | 133.56 | 62.85 | 70.71 | 47.0 |\n| 4 | nan | nan | nan | nan | nan | nan | nan |\n| 5 | nan | Loans | 2,773.12 | 2,773.12 | 3,134.13 | -361.01 | 113.0 |\n| 6 | nan | Project support | nan | nan | nan | nan | nan |\n| 7 | nan | nan | nan | nan | nan | nan | nan |\n| 8 | nan | Grants | 1,586.35 | 1,586.35 | 1,026.04 | 560.31 | 65.0 |\n| 9 | nan | Loans | 7,928.98 | 7,928.98 | 6,822.23 | 1,106.75 | 86.0 |\n| 10 | nan | nan | nan | nan | nan | nan | nan |\n| 11 | nan | Grand Total | 45,493.09 | 48,726.77 | 45,159.25 | 1,667.06 | 93.0 |\n| 12 | nan | nan | nan | nan | nan | nan | nan |\n| 13 | nan | Actual funding for the budget during the financial year was UGX. | nan | nan | nan | nan | nan |\n| 14 | nan | 45,159.25Bn (93%) against a revised revenue budget of UGX. | nan | nan | nan | nan | nan |\n| 15 | nan | 48,726.77Bn, indicating a shortfall of UGX. 3,567.52Bn. The details of | nan | nan | nan | nan | nan |\n| 16 | nan | funding source are provided below. | nan | nan | nan | nan | nan |\n| 17 | nan | nan | nan | nan | nan | nan | nan |\n| 18 | nan | Taxes total tax revenue collected during the year was UGX. | nan | nan | nan | nan | nan |\n| 19 | nan | nan | nan | nan | nan | nan | nan |\n| 20 | nan | 19,697.7Bn, representing 90% of the approved estimates. | nan | nan | nan | nan | nan |\n| 21 | nan | nan | nan | nan | nan | nan | nan |\n| 22 | nan | Non-tax revenue total of UGX.1,605.42Bn was realised from this source against a | nan | nan | nan | nan | nan |\n| 23 | nan | nan | nan | nan | nan | nan | nan |\n| 24 | nan | target of UGX.1,805.98Bn representing a performance of 89%. | nan | nan | nan | nan | nan |\n| 25 | nan | Budgeting for NTR remains a challenge at the Treasury, as the | nan | nan | nan | nan | nan |\n| 26 | nan | figures included in the revenue estimates are not agreed with | nan | nan | nan | nan | nan |\n| 27 | nan | individual votes, and a number of entities do not reflect NTR in their | nan | nan | nan | nan | nan |\n| 28 | nan | budgets. | nan | nan | nan | nan | nan |\n| 29 | nan | nan | nan | nan | nan | nan | nan |\n| 30 | nan | Budget support Government planned to raise a total of UGX.2,906.68 Bn for budget | nan | nan | nan | nan | nan |\n| 31 | nan | nan | nan | nan | nan | nan | nan |\n| 32 | nan | support of which 5% was grants while 95% was from loans. Grants | nan | nan | nan | nan | nan |", "metadata": {"page": 18, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 0 | 1 | 2 | 3 | 4 | 5 | 6 |\n|---:|----:|:-------------------------------------------------------------------------------------|----:|----:|----:|----:|----:|\n| 0 | nan | underperformed by 52% while Government acquired loans of | nan | nan | nan | nan | nan |\n| 1 | nan | UGX.361 Bn in excess of what was planned translating into a 113% | nan | nan | nan | nan | nan |\n| 2 | nan | performance. The increase in loans for budget support related to | nan | nan | nan | nan | nan |\n| 3 | nan | additional borrowing that was secured in light of COVID -19 | nan | nan | nan | nan | nan |\n| 4 | nan | disruptions. | nan | nan | nan | nan | nan |\n| 5 | nan | nan | nan | nan | nan | nan | nan |\n| 6 | nan | Project support total of UGX.9,515.33 Bn (20%) of the approved budget was | nan | nan | nan | nan | nan |\n| 7 | nan | nan | nan | nan | nan | nan | nan |\n| 8 | nan | planned for project support of which grants and loans were | nan | nan | nan | nan | nan |\n| 9 | nan | UGX.1,586.35 Bn and UGX.7,928.98 Bn respectively. Grants | nan | nan | nan | nan | nan |\n| 10 | nan | underperformed by 60% (UGX.1,026.04 Bn) while UGX.6,822.23 Bn | nan | nan | nan | nan | nan |\n| 11 | nan | (83%) was realised from the loans. | nan | nan | nan | nan | nan |\n| 12 | nan | nan | nan | nan | nan | nan | nan |\n| 13 | nan | Domestic refinancing Government planned to pay back maturing Treasury Instruments by | nan | nan | nan | nan | nan |\n| 14 | nan | nan | nan | nan | nan | nan | nan |\n| 15 | nan | borrowing afresh from the market (domestic refinance) to a tune of | nan | nan | nan | nan | nan |\n| 16 | nan | UGX.7,486.1 Bn, of which UGX.7,420Bn (99%) was realised. | nan | nan | nan | nan | nan |\n| 17 | nan | nan | nan | nan | nan | nan | nan |\n| 18 | nan | Management attributed the Tax and Non tax Revenue shortfall | nan | nan | nan | nan | nan |\n| 19 | nan | mainly to the lockdown measures that were instituted by government | nan | nan | nan | nan | nan |\n| 20 | nan | curb the spread of the COVID 19 that constrained revenue major | nan | nan | nan | nan | nan |\n| 21 | nan | sources and the slow Economic growth which is a major contributor | nan | nan | nan | nan | nan |\n| 22 | nan | taxes that declined from the projected 6.4% to 3.1%. Deficits | nan | nan | nan | nan | nan |", "metadata": {"page": 18, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 0 |\n|---:|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | SN Finding |\n| 1 | were registered in CIT, VAT, excise duty and Corporation Tax since companies were not working. The EFRIS has now been rolled out and Digital stamps implementation is under way to revive revenue collection. Management also indicated that NTR Budget estimates books have been revised and the budget process for NTR enhanced to incorporate Universities fees collection which was a major challenge in terms of providing the right estimates. The NTR Budget consultation process for FY 2022/23 had been concluded for all Votes and a realistic target set for NTR collections. |\n| 2 | nan |\n| 3 | nan |\n| 4 | nan |\n| 5 | nan |\n| 6 | nan |\n| 7 | nan |\n| 8 | nan |\n| 9 | nan |\n| 10 | nan |\n| 11 | nan |\n| 12 | nan |", "metadata": {"page": 19, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 0 |\n|---:|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | b) Unfunded approved budget During the year under review, Government budgeted to spend a total of UGX.45,439 Bn, which was later revised to UGX.51,625 Bn. An analysis of warrants approved revealed that a total of UGX.46,657 Bn was approved against the budgeted amounts, thus representing 90% performance. A sum of UGX.4,968 Bn was not availed for expenditure. See table below; Entity Percenta ge Total Revised Budget \u2013 UGX(bn) Total warrants - UGX(bn) Variance- UGX(bn) Central Govt 73.42% 37,904.70 35,717.10 2,187.7 Local Govt 8.38% 4,327.80 4,218.40 109.4 Local Revenue 0.42% 217.4 115.3 102.0 Project Financing 17.77% 9,176.00 6,606.80 2,569.2 Total 51,626.00 46,657.60 4,968.4 Failure to fully fund the revised budget affected the implementation of the planned activities which were intended to contribute to the achievement of the NDP III and Vision 2040. The detailed impact of this shortfall on the entity activities has been reported in the individual entity reports. Notably, there was a significant variance in project financing which is explained by under absorption by the various implementing MDAs. It was observed that whereas the performance contracts with Accounting Officers are premised on availing the appropriated budgets during the year, such contracts are not revised in situations of shortfalls in budgets. The Secretary to Treasury indicated that the funds releases to Votes are in line with the available resources issued in quarterly expenditure limits which are supported by actual revenue collections from URA and also indicated that Ministry of finance provides guidance by way of circulars to all Votes to fund only critical activities within the work plans in line with the available resources. The Secretary to Treasury committed to improving releases as I advised the PSST to provide guidance to MDAs in regard to the prioritization of activities to the levels of availed resources in cases of shortfalls. |\n| 1 | nan |\n| 2 | nan |\n| 3 | nan |\n| 4 | nan |\n| 5 | nan |\n| 6 | nan |\n| 7 | nan |\n| 8 | nan |\n| 9 | nan |\n| 10 | nan |\n| 11 | nan |\n| 12 | nan |\n| 13 | nan |", "metadata": {"page": 19, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 0 | 1 |\n|---:|:------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:-----------------|\n| 0 | SN Finding | Recommendation |\n| 1 | revenue collections improve with the economy recovering from the current economic shocks. | nan |\n| 2 | c) Unspent warrants/under absorption of funds UGX .3,018.44Bn Section 45 (3) of the Public Finance Management Act, 2015 states that an Accounting Officer shall enter into an annual budget performance contract with the Secretary to the Treasury which shall bind the Accounting Officer to deliver on the activities in the work plan of the vote for a Financial year. It was observed that warrants worth UGX.46,657.6 billion were approved in respect of various entities for which only UGX.43,639.2 billion was paid out leaving UGX.3,018.4 billion (6.5% of approved warrants) unspent. The details are indicated in the table below; Approved Warrants (UGX\u2019 billion) Total Payments (UGX\u2019 billion) Unspent funds (UGX\u2019 billion) ENTI TY Wage Non - Wage Develop ment wage Non - Wage Develo pment wag e Non- Wage Dev CG 2,710 23,647 15,771 2,637 21,32 15,725 73 2,327 45 Missi ons 28 149 18 28 149 17.9 - - - LG 2,271 1,071 992.1 2,151 1,025 586 119 46 406 TOTA L 5,009 24,867 16,781 4,816 22,494 16,329 193 2,373 452 From the above, it can be seen that 79% of the unspent funds related to non-wage expenditure while wage and development expenditure posted underperformance of 6% and 15% respectively. 98% of the unspent funds under non-wage related to Vote 130 (Treasury Operations) and were meant to settle interest costs and treasury bills and Bonds redemptions. The occurrence has an implication of increasing financing costs incurred by the government since the interest costs and redemptions are done by Bank of Uganda which in turn charges the treasury for the advance. Most of the unspent funds under wage related to pension payments casting doubt on the existence of the said pensioners. Under absorption negatively affects service delivery since some of the planned projects and activities are not undertaken. The Secretary to Treasury indicated that GoU operates a Cash budget which is based on actual inflows. The year under audit experienced cash shortfalls arising from, Domestic revenue shortfall as a result of the Covid -19 pandemic , late disbursements from IMF ,which came in on 30 June 2021 & Non disbursement from Afri-Exim Bank and African Development Fund. The occurrence contributed to delay in implementation of planned activities hence the under absorption of funds. | I advised the |\n| 3 | nan | Secretary to the |", "metadata": {"page": 20, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 0 | 1 |\n|---:|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:---------------------|\n| 0 | nan | Treasury to |\n| 1 | nan | strengthen the cash |\n| 2 | nan | forecasting function |\n| 3 | nan | to avoid issuing |\n| 4 | nan | warrants that cannot |\n| 5 | nan | be financed. |\n| 6 | nan | nan |\n| 7 | nan | nan |\n| 8 | nan | nan |\n| 9 | nan | nan |\n| 10 | nan | nan |\n| 11 | nan | nan |\n| 12 | nan | nan |\n| 13 | nan | nan |\n| 14 | nan | nan |\n| 15 | nan | nan |\n| 16 | nan | nan |\n| 17 | nan | nan |\n| 18 | nan | nan |\n| 19 | nan | nan |\n| 20 | nan | nan |\n| 21 | nan | nan |\n| 22 | nan | nan |\n| 23 | nan | nan |\n| 24 | nan | nan |\n| 25 | nan | nan |\n| 26 | nan | nan |\n| 27 | nan | nan |\n| 28 | nan | nan |\n| 29 | nan | nan |\n| 30 | nan | nan |\n| 31 | nan | nan |\n| 32 | nan | nan |\n| 33 | nan | nan |\n| 34 | nan | nan |\n| 35 | nan | nan |\n| 36 | nan | nan |\n| 37 | nan | nan |\n| 38 | nan | nan |\n| 39 | nan | nan |\n| 40 | nan | nan |\n| 41 | nan | nan |\n| 42 | nan | nan |\n| 43 | nan | nan |\n| 44 | nan | nan |\n| 45 | nan | nan |\n| 46 | nan | nan |\n| 47 | d) Approval of supplementary funding without matching revenue Section 25(1) of the Public Finance and Accountability Act (PFMA) stipulates that the total supplementary expenditure that requires additional resources over and above what is approved by Parliament I await the outcome of the new measures. | nan |\n| 48 | nan | nan |", "metadata": {"page": 20, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | SN | Finding | Recommendation |\n|---:|:-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:----------|:-----------------|\n| 0 | shall not exceed 3% of the total approved budget for that financial year, without the approval of Parliament. It was established that during the financial year ended 30 th June 2021, supplementary funding totalling UGX.6.13Tn was granted by the Minister of Finance, Planning and Economic Development. It was, however, noted that the source of the funding for the supplementary expenditure was not clearly shown before approval was granted. As a result, the supplementary expenditure was instead financed by internal budget cuts from various votes thus affecting implementation of plans/ activities by the affected votes. I noted that, although the budget was increased to UGX.51.625Tn, it was only funded to the tune of UGX.46.6Tn (90%funding). Continued approval of supplementary budgets without a corresponding increase in revenue/financing could be attributed to fiscal indiscipline which leads to increased funding gap affecting the earlier budget objectives and plans. The Secretary to Treasury responded that for the Financial Year 2022/23, the Ministry of Finance was using zero based budgeting approach to prioritize critical activities and expenditures to avoid supplementary requests during execution. The budget for 2022/23 is being used as a launchpad for restricting supplementary budgets to stabilize GoU budget execution going forward. | | |", "metadata": {"page": 21, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | SN | Finding | Recommendation |\n|---:|:-----|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | e) | Budgeting for Non-Tax Revenue Section 6 of the Budget Execution Circular for the FY 2020/21 provides that all work plans and Budgets for FY2020/21 are prepared and approved using the Program Budgeting System (PBS). All Budgets, irrespective of the source of financing (GoU, NTR/AIA, Donor or LG Revenue), will be migrated and loaded into the Integrated Financial Management System (IFMS) to facilitate Budget Implementation and reporting. According to the approved budget estimates for the FY2020/21, it was projected that a total of UGX.1.590 Tn would be collected as NTR. Review of the Performance Budgeting System(PBS) tool used by the Government and IFMS records revealed that that NTR Budgets for the respective MDAs were neither uploaded on PBS nor IFMS. The budgeting tool only had details regarding expenditure, and no revenue was included. I further noted that several Accounting Officers disowned the figures incorporated in the NTR Estimates book, indicating that they had not been consulted in arriving at the estimates incorporated therein. As a result, I was unable to compare respective entity budget figures with the URA NTR collections that totalled to UGX.1.605Tn. The absence of revenue estimates for each entity undermines transparency, affects motivation of staff, and hampers performance assessment. Management responded that for the budget of FY 2022/23, | I advised the PSST to ensure that all Ministries, Departments and Agencies budget for the Non-Tax Revenue and have the details provided in the IFMS and the PBS. |", "metadata": {"page": 21, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | SN | Finding | Recommendation |\n|---:|:------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:-------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | respective MDAs had been requested to submit their NTR estimates which will be uploaded and reflected on the PBS as had been done in the NTR estimates booklets. PBS has been upgraded to include the NTR budgets for Votes. The approved estimates will also be uploaded on the IFMS for follow up on monthly performance reports. | | |\n| 1 | f) | Quantification of activities and Implementation of planned outputs Section 13 (15, b) of the PFMA 2015 states that a policy statement submitted by a vote shall contain the annual and three months\u2019 work plans, outputs, targets and performance indicators of the work plans. Regulation 11 (3) of PFMR 2016 requires that a vote prepares a work plan that indicates the outputs of the vote for the financial year; the indicators to be used to gauge the performance of the outputs and funds allocated to each activity. I sampled 94 entities for purposes of assessing the extent of quantification and implementation of planned outputs I noted that out of the 1,681 outputs worth UGX.9.8tn sampled for review, 1,151 outputs (68.5%) worth UGX.6.8tn were fully quantified, 307 outputs (18.3%) worth UGX.2.1tn were partially quantified while 223 out puts (13.2%) worth UGX.902Bn were not quantified at all. Out of a total of 1,151 quantified out-puts worth UGX.6.8tn assessed, 465 (40.4%) output worth UGX.2.5tn were fully implemented, 592 outputs (51.4%) worth UGX.4.1tn were partially implemented, while 94 (8.2%) out-puts worth UGX.146bn were not implemented at all. The graph below shows the extent of implementation; Failure to fully quantify the planned activities makes the assessment of implementation difficult. The Accounting Officers indicated that the outbreak of the Covid-19 Pandemic affected the implementation of the 2019/2020 budget, especially activities in the last half of the financial year. | I advised the PSST to follow up the matter with the Accounting Officers of the various MDAs to ensure that there is full quantification of activities and outputs. |", "metadata": {"page": 22, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | SN | Finding | Recommendation |\n|---:|:-----|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:---------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | g) | Existence of Strategic plans that are aligned to NDP-III Paragraph 5 of the budget execution circular for the financial year 2020/2021 cites poor alignment of Government Budgets with the National Development Plans. The PS/ST urged Accounting Officers to ensure that all activities for Financial Year 2020/2021 are aligned with NDP III and implemented accordingly. Regulation 26 (1) of the National Planning Authority (development of Plans) regulations require entities to submit to NPA their five-year development plans for certification before approval. This being the first year of implementation of the NDP-III, MDAs were expected to prepare strategic plans aligned to NDP III and ensure that these plans are certified by NPA before approval. These plans would then be the basis for preparation of the entity annual | I advised the PSST to follow up the matter with NPA and ensure that the entities have strategic plans that are aligned to NDP- III and certified by NPA. |", "metadata": {"page": 22, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | SN | Finding | Recommendation |\n|---:|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | plans. From the procedures undertaken I noted that out of 94 entities sampled, 75 were supposed to prepare strategic plans that were aligned to NDPII. However, out of 75 only 25 (33%) had their strategic plans certified by NPA. The balance of 50 representing 67% were not certified by NPA. There is a risk that activities implemented by these entities during the financial year 2020/2021 were not aligned to the NDP-III which negatively affects the achievement of NDP-III objectives. | | |\n| 1 | h) | Off Budget Financing/Receipts Section 43 (1) of the PFMA 2015 states that all expenditure incurred by the government on externally financed projects in a financial year shall be appropriated by parliament. Paragraph 29 of the Budget Execution Circular for the Financial year states that if an external agency provides funds in the course of implementation of the budget or any funds remain unspent at the expiry of an appropriation, these must be declared and a supplementary issued in line with the Public Finance Management Act 2015. I noted that 30 entities received off-budget financing to a tune of UGX.627.124Bn, which was never declared to the PS/ST and was also not appropriated by Parliament. As such, no supplementary appropriation was issued as guided by the PS/ST. These funds were received directly from development partners for undertaking activities not budgeted for. Off-budget financing distorts planning, may result in duplication of activities, contrary to Section 43(1) of the PFMA 2015 and the budget execution guidelines. The Accounting Officers explained that this was due to limitations of the PBS system which has no provision for inputting such receipts and in some cases funds are received during the year which were not expected at the time of planning. | I advised the Accounting Officers to comply with the law and guidance given by the PSST and ensure that in future, all funds received outside the approved budget are appropriated by way of a supplementary. |", "metadata": {"page": 23, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Nature of Tax | Total Amount written off (UGX) |\n|---:|:-----------------------|:---------------------------------|\n| 0 | Value Added tax (VAT) | 348,986,568,013 |\n| 1 | Stamp Duty | 8,460,910,000 |\n| 2 | Pay As You Earn (PAYE) | 158,293,699,210 |\n| 3 | Import Duty | 98,569,989,826 |\n| 4 | Excise Duty | 52,685,114,511 |\n| 5 | Income Tax | 114,133,374,978 |\n| 6 | Withholding Tax | 28,604,598,593 |\n| 7 | Total | 809,734,255,131 |", "metadata": {"page": 31, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Financial year ended | Domestic debt (UGX Bn) | Foreign debt (UGX Bn) | Total (UGX Bn) | % change |\n|---:|:-----------------------|:-------------------------|:------------------------|:-----------------|:-----------|\n| 0 | June 21 | 25,288 | 44,312 | 69,600 | 23.90% |\n| 1 | June 20 | 17,975 | 38,196 | 56,171 | 23.50% |\n| 2 | June 19 | 15,221 | 30,905 | 46,126 | 11.10% |\n| 3 | June 18 | 13,059 | 28,386 | 41,445 | 23.60% |\n| 4 | June 17 | 11,407 | 22,102 | 33,509 | |", "metadata": {"page": 32, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Financial year | Total domestic Revenue - UGX | Total Interest - UGX | % of Interest to revenue | Benchmark |\n|---:|:-----------------|:-------------------------------|:-----------------------|---------------------------:|:------------|\n| 0 | 2020/21 | 20,199,013,110,066 | 3,118,535,556,062 | 15.4 | < 12.5 |\n| 1 | 2019/20 | 17,453,981,414,553 | 2,475,531,497,733 | 14.2 | < 12.5 |\n| 2 | 2018/19 | 17,128,743,726,614 | 2,005,380,900,988 | 11.71 | < 12.5 |\n| 3 | 2017/18 | 15,219,588,786,381 | 1,937,371,886,367 | 12.73 | < 12.5 |", "metadata": {"page": 34, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Financial year | GDP at Current Prices (UGX) Billions | TAX collections (UGX) Billions | Tax/GDP |\n|---:|:-----------------|:---------------------------------------|:---------------------------------|:----------|\n| 0 | 2020/21 | 147,962 | 18,594 | 13% |\n| 1 | 2019/20 | 139,689 | 16,042 | 11% |\n| 2 | 2018/19 | 132,090 | 16,146 | 12% |", "metadata": {"page": 35, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | No. of projects | Total Budget - UGX | Capital Expenditure - UGX | Administrative expenditure - UGX | % of administrative expenditure |\n|---:|------------------:|:---------------------|:----------------------------|:-----------------------------------|:----------------------------------|\n| 0 | 125 | 4,410,809,884 | 1,087,332,424 | 3,323,477,460 | 75% |", "metadata": {"page": 40, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | External financing Budget (UGX)Bn | Release (UGX) Bn | Expenditure (UGX)Bn | Release Variance (UGX) Bn | Expenditure Variance (UGX) Bn | %of funds not released (UGX) Bn | %of funds not Absorbed (UGX) Bn |\n|---:|:------------------------------------|:-------------------|:----------------------|:----------------------------|:--------------------------------|:----------------------------------|:----------------------------------|\n| 0 | 9,515.30 | 4,516.50 | 2,937 | 4,998.80 | 1,579.50 | 53% | 35% |", "metadata": {"page": 41, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 0 | 1 |\n|---:|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:-------------------------|\n| 0 | No Observations | Recommendations |\n| 1 | a) Payroll management in Local Governments | I advised the |\n| 2 | Absorption of the released funds for payroll I reviewed funds absorption in 100 LGs and noted an under absorption of UGX79.62Bn. Out of the total receipts of UGX.1,539.37Bn, UGX.1,459.79Bn (94.8%) was absorbed. The unabsorbed balance was subsequently returned to the Consolidated Fund account as shown in the Table below. Table 10: Showing Level of Absorption for Wage, Pension and Gratuity Categ ory Approved Estimates (UGX) Bn Releases (UGX) Bn Expenditure (UGX) Bn Variance (UGX) Bn %age Absorpti on Wage 1,327.65 1,337.68 1,272.10 65.57 95.1 Pensi on/ gratu ity 204.20 201.69 187.63 14.05 93.0 1,531.85 1,539.37 1,459.73 79.62 94.8 Source: OAG analysis The under absorbed funds, denied the use of funds for other deserving service delivery areas. The under absorption was mainly attributed to Covid-19 pandemic and the lockdown, especially in the education sector. There was delayed deployment or non-recruitment of secondary school teachers for seed schools that had been recently constructed under the UgIFT projects. | Accounting Officers to |\n| 3 | nan | liaise with the relevant |\n| 4 | nan | authorities and rollover |\n| 5 | nan | the un-implemented |\n| 6 | nan | activities to the |\n| 7 | nan | subsequent period. |\n| 8 | nan | nan |\n| 9 | nan | nan |\n| 10 | nan | nan |\n| 11 | nan | nan |\n| 12 | nan | nan |\n| 13 | nan | nan |\n| 14 | nan | nan |\n| 15 | nan | nan |\n| 16 | nan | nan |\n| 17 | nan | nan |\n| 18 | nan | nan |\n| 19 | nan | nan |\n| 20 | nan | nan |\n| 21 | nan | nan |\n| 22 | nan | nan |\n| 23 | nan | nan |\n| 24 | nan | nan |\n| 25 | nan | nan |\n| 26 | nan | nan |\n| 27 | nan | nan |\n| 28 | nan | nan |\n| 29 | nan | nan |\n| 30 | b) Management of Payroll Deductions i) Under/delayed remittance of Deduction Out of a sample of 84 LGs, I noted that whereas UGX 259.65 Bn was deducted from employees\u2019 salaries to be remitted to URA, UCLA/UBA and other beneficiaries, I noted that contrary to I advised the Accounting Officers to ensure that necessary payroll changes are made timely before payments are effected. | nan |\n| 31 | nan | nan |\n| 32 | nan | nan |", "metadata": {"page": 48, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 0 | 1 | 2 |\n|---:|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:-----------|\n| 0 | Unnamed: 0 | The Accounting Officers did not provide satisfactory explanations to justify the over remittances. For the under payments, the Accounting Officers attributed it mainly to suspension of staff salaries due to disciplinary issues, delayed removal of staff from the payroll and delays in resolving issues such as abscondment where payments were withheld. For delays in remittance of deductions, the Accounting Officers attributed it to delays in reconciliation of interface deduction files. | Unnamed: 2 |\n| 1 | ii) Un-authorized loans deductions I noted that 48 LGs made unauthorised loans deductions totaling UGX 11.10 Bn. The deductions were from 6,835 employees that lacked letters of consent/ undertaking. I further noted that out of the 48 LGs, 23 LGs (48%) registered 1,916 employees with deductions totaling to UGX 3.77 Bn that did not exist in the Payroll Deduction Management System (PDMS), operated by PCA-Payroll Consults Africa. There is a risk of making deductions from staff that have no loans, which deprives them of their earnings. The inconsistencies in the PDMS undermine the relevance of the system and affect the integrity of the data therein. The Accounting Officers acknowledged the shortcoming and explained that letters of undertaking were being signed although file copies were not being retained for future reference. They further explained that the inconsistencies in the PDMS data were attributed to PCA who largely control and manage the system. | I advised Government through MoPS to ensure that PCA makes the necessary data reconciliation and update the information on the PDMS regarding the deductions. I further advised the Accounting Officers to ensure that all loan applications are backed by letters of undertaking and approved through the PDMS. | nan |", "metadata": {"page": 50, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 0 | 1 | 2 |\n|---:|:----|:-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | c) | Access to Payrolls i) Delayed access to salary payroll I noted that 2,178 newly recruited employees in 75 LGs delayed to access payroll, with delays ranging from 1-34 months. I further noted that 407 employees in 17 LGs had not yet accessed the payroll by the close of the financial year. Delayed access to payroll leads to demotivation of the affected staff and accumulation of salary arrears. The Accounting Officers attributed the shortcoming mainly to delayed submission of key personnel documents and data mismatch between IPPS & NIRA. | I advised the Accounting Officers to sensitise the newly recruited employees on the timely submission of the key documents. I further urged the Accounting Officers to ensure timely validation of the newly recruited employees and to liaise with the relevant authorities to improve effectiveness and reliability of the MoPS/NID interface. |\n| 1 | nan | ii) Delayed access to pension payroll I noted that 780 pensioners delayed to access the pension payroll, with delays ranging from 1 to 24 months in 83 LGs (78%) out of 107 Local Governments. There were instances of extreme delays in 09 LGs extending over two years to 26 years. I further noted that 146 pensioners in 21 LGs had not yet accessed the pension payroll by the close of the financial year. | I advised the Accounting Officers to liaise with MoPS to initiate strategies of rectifying the inconsistencies with NIRA interface and to cause the beneficiaries |", "metadata": {"page": 50, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Delayed access to the pension payroll leads to poor wellbeing of the affected retirees as well as accumulation of pension arrears. The Accounting Officers attributed the shortcoming to mainly mismatch of data between NIRA and IPPS interfaces such as wrong dates of birth, delayed submission of documents and inadequate budget allocation to cater for all retirees hence phased access to the pension payroll. | to submit the essential documents in time. I further advised PS/ST to ensure adequate allocation of pension and gratuity funds. |\n|---:|:-------------|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | d) | Delayed deletion of staff from the salary payroll I noted that in 78 LGs, a total of UGX 1.13 Bn was paid to 635 staff who had either retired, transferred, absconded or died. These were payment for services that were not rendered to the LGs, hence loss of funds to Government. This was mainly attributed to delayed communication from supervisors of the affected staff as well as failure to delete affected staff due to lack of validation on the MoPS/ NID interface. | I advised the Accounting Officers to sensitise all supervisors on when and how to communicate such cases so as to ensure prompt removal of staff from the payroll. I further urged the Accounting Officers to ensure that all staff are validated on the MoPS/ NID interface. I also advised MoPS to automate the deletion of retirees on mandatory grounds. |\n| 1 | e) | Misclassification of salary, pension and gratuity expenditure UGX 3.60 Bn in 33 LGs was charged on account codes other than those prescribed for salary, pension and gratuity. Misclassification of funds distorts budget performance and monitoring as well as the credibility of the financial statements. The Accounting Officers attributed the misclassification to insufficient budget provisions for pensions and gratuity. I advised the Accounting Officers to liaise with MoFPED to ensure that sufficient budget provisions are made. | I advised the Accounting Officers to ensure that wage, pension and gratuity expenditure is charged on the appropriate codes. |\n| 2 | f) | Effectiveness and reliability of the IPPS/NID interface I reviewed the effectiveness and reliability of the IPPS/NID staff/pensioner/beneficiaries\u2019 verification interface and made the following observations; \uf0b7 There was in-adequate sensitization and training in the use and navigation of the system \uf0b7 System was not reliable and effective \uf0b7 Operational challenges were encountered, including; \uf076 Un-reliable network \uf076 Failure to reflect changes in updated staff information \uf076 Mismatches of names that take long to be corrected by NIRA \uf076 Some information on the NIRA interface is sometimes not visible/available for instance date of birth and the | I advised the Accounting Officers to engage MoPS and NIRA to have trainings conducted as well as resolve the system challenges. |", "metadata": {"page": 51, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | No | Observations | Recommendations |\n|---:|-----:|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 1 | Existence of Strategic plans that are aligned to NDP-III Paragraph 5 of the budget execution circular for the financial year 2020/2021 cites poor alignment of Government Budgets with the National Development Plans. The PS/ST urged Accounting Officers to ensure that all activities for Financial Year 2020/2021 are aligned with NDP III and implemented accordingly. Regulation 26 (1) of the National Planning Authority (development of Plans) regulations require entities to submit to NPA their five-year development plans for certification before approval. This being the first year of implementation of the NDP-III, LGs were expected to prepare a strategic plan aligned to NDP III and ensure that these plans are certified by NPA. These plans would then be the basis for preparation of the entity annual plans. From the procedures undertaken I noted that out of 86 entities sampled, none had prepared a strategic plan that was aligned to NDP-III and certified by NPA. There is a risk that activities implemented by these entities during the financial year 2020/2021 were not aligned to the NDP-III which negatively affects the achievement of NDP-III objectives. | I advised the Accounting Officers to follow up the matter with NPA and ensure that the entities have strategic plans that are aligned to NDP-III and certified by NPA. |", "metadata": {"page": 52, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 2.1 | a) Absorption of released funds Out of the total receipts for the financial year of UGX 4,328.01 Bn, UGX 4,147.90 Bn (95.8%) was spent by the Local Governments resulting in an unspent balance of UGX 180.11 Bn (4.2%). The unspent balance at the end of the financial year was remitted back to the consolidated fund account. Under absorption of released funds results in non- implementation of planned activities and negates the purpose for which funds were disbursed, thereby affecting the achievement of the objectives in the NDPIII. For example, implementation of USMID projects in Municipal Councils and UgIFT projects in DLGs was not undertaken. The Accounting Officers attributed failure to utilise funds to COVID-19 which affected the recruitment exercise, late release of USMID funds and delays in the procurement process and lotting policy of contract works under UgIFT. | I advised the Accounting Officer to liaise with line Ministries to revote the funds, roll over the activities and ensure they are subsequently implemented. |\n|---:|:------|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | | b) Revenue Performance i) Local Revenue performance The local governments budgeted to receive UGX 217.38 Bn (revised) as total revenue for the year. However, only UGX 96.28 Bn representing 44.29% of their revised budgets was received performance. Under collection of local revenue results in non- implementation of planned activities which affects service delivery. The Accounting Officers of the respective local government votes attributed the shortfall in local revenue to COVID 19 effects. The Accountant General explained that Government of Uganda (GoU) had provided some interventions including vaccination and funding to revive the economy for activities to resume and stimulate revenue collection. | I await the outcome of the interventions instituted by GoU to stimulate revenue collection. In addition, I urged the respective Accounting Officers to make budget revisions based on realistic forecasts in such unforeseen circumstances. |\n| 1 | | ii) Revenue from External financing The Local Governments budgeted to receive UGX 413.94 Bn as external/donor financing, out of which UGX 57 Bn (13.8%), was received Revenue shortfalls affect the implementation of planned activities. The Accounting Officer attributed this to the fact that the Local governments did not receive indicative planning figures from the donors for proper and realistic budgeting for the Financial Year under review. | |", "metadata": {"page": 53, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "|--:|\n| 0 |\n| 1 |\n| 2 |", "metadata": {"page": 55, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Sn | Entity | Amount (UGX) Bn |\n|---:|-----:|:----------------|------------------:|\n| 0 | 1 | ABIM DLG | 1.41 |\n| 1 | 2 | BUGWERI DLG | 0.25 |\n| 2 | 3 | BUKEDEA DLG | 0.01 |\n| 3 | 4 | Hoima MC | 0.06 |\n| 4 | 5 | Kikuube DLG | 0.07 |\n| 5 | 6 | Kiryandongo DLG | 0.01 |\n| 6 | 7 | KOLE DLG | 0.26 |\n| 7 | 8 | MADI-OKOLLO DLG | 0.05 |\n| 8 | 9 | MOROTO DLG | 0.03 |\n| 9 | 10 | MOROTO MC | 1.19 |\n| 10 | 11 | OYAM DLG | 0.03 |\n| 11 | 12 | Total | 3.37 |", "metadata": {"page": 57, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | SN | Entity | Category | Approved/revised Budget(UGX) Bn | Actual Expenditure (UGX) Bn |\n|---:|:------|:---------|:-----------|----------------------------------:|------------------------------:|\n| 0 | 1 | Arua | DLG | 71.71 | 52.29 |\n| 1 | 2 | Butaleja | DLG | 31.68 | 29.84 |\n| 2 | 3 | Bududa | DLG | 25.82 | 24.61 |\n| 3 | 4 | Arua | MC | 23.5 | 21.85 |\n| 4 | 5 | Ntungamo | MC | 8.41 | 6.68 |\n| 5 | 6 | Mityana | MC | 8.38 | 8.1 |\n| 6 | 7 | Kumi | MC | 6.11 | 5.72 |\n| 7 | 8 | Ibanda | MC | 11 | 10.25 |\n| 8 | 9 | Nebbi | MC | 6.08 | 3.74 |\n| 9 | Total | | | 192.69 | 163.08 |", "metadata": {"page": 58, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | SN. | Sector | Status of implementation | No. of projects | %age Status | Commencement period |\n|---:|:------------|:----------|:---------------------------|------------------:|:--------------|:---------------------------|\n| 0 | 1 | Education | Completed | 2 | 8.3% | Previous financial year(s) |\n| 1 | | | Completed and handed over | 1 | 4.2% | Previous financial year(s) |\n| 2 | | | Incomplete | 20 | 83.3% | Previous financial year(s) |\n| 3 | | | | 1 | 4.2% | 2020/2021 |\n| 4 | | Subtotal | | 24 | 100% | |\n| 5 | 2 | Health | Completed | 3 | 7.3% | Previous financial year(s) |\n| 6 | | | | 3 | 7.3% | 2020/2021 |\n| 7 | | | Completed and handed over | 1 | 2.4% | Previous financial year(s) |\n| 8 | | | | 1 | 2.4% | 2020/2021 |\n| 9 | | | Incomplete | 19 | 46 % | Previous financial year(s) |\n| 10 | | | | 13 | 32% | 2020/2021 |\n| 11 | | | Not implemented | 1 | 2.4% | Not started |\n| 12 | | Subtotal | | 41 | 100% | |\n| 13 | Grand Total | | | 65 | | |", "metadata": {"page": 59, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | SN | District/ Municipal Council | Name of project | Contract price (UGX) Bn | Amount spent (UGX) Bn | Status |\n|---:|:------|:------------------------------|:-------------------------------------------|--------------------------:|:------------------------|:--------------------------|\n| 0 | 1 | Kamwenge DLG | Construction of Bwizi Seed school | 2.02 | 1.92 | Completed and handed over |\n| 1 | 2 | Mityana DLG | Upgrade of Busunjju HC II to HC III | 0.66 | | Incomplete |\n| 2 | 3 | Kyotera DLG | Upgrade of Nyangoma HC II to HC III | 0.66 | 0.28 | Incomplete |\n| 3 | 4 | Moroto DLG | Construction of Rupa Seed secondary school | 1.94 | 1.7 | Incomplete |\n| 4 | Total | | | 5.28 | 3.9 | |", "metadata": {"page": 60, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | S/N | Enterprise | Government Holding |\n|---:|------:|:-----------------------------|:---------------------|\n| 0 | 1 | Uganda Air Cargo Corporation | Not ascertained |\n| 1 | 2 | Uganda Refinery Holding Co | Not ascertained |", "metadata": {"page": 65, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | S/N | Enterprise | Remarks |\n|---:|------:|:------------------------------------|:----------------------------------|\n| 0 | 1 | Uganda National Oil Company Limited | Not reported in the previous year |\n| 1 | 2 | Nakivubo War Memorial Stadium | Not reported in the previous year |\n| 2 | 3 | Uganda Crane Industries Ltd. | Not reported in the previous year |", "metadata": {"page": 65, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | S/N | Entity | Government Stake |\n|---:|------:|:--------------------------------------------------|:-------------------|\n| 0 | 1 | Uganda National Oil Company Limited | 100% |\n| 1 | 2 | Nakivubo War Memorial Stadium | 100% |\n| 2 | 3 | National Housing and Construction Company Limited | 51% |\n| 3 | 4 | Uganda Telecom Limited | Not known |\n| 4 | 5 | The Micro Finance Support Centre Ltd | 100% |\n| 5 | 6 | Uganda Seeds Limited | 100% |\n| 6 | 7 | Uganda Livestock Industry | 100% |", "metadata": {"page": 66, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | No | Entity | Profit After Tax / Surplus for the year (UGX in Bn) | Unnamed: 3 | Increase/ Decrease |\n|---:|:-----|:--------------------------------------------------------|:------------------------------------------------------|:-------------|:---------------------|\n| 0 | | | 2020/21 | 2019/20 | |\n| 1 | 1.0 | Uganda Electricity Transmission Company Limited (UETCL) | 112.00 | 54.02 | 57.97 |\n| 2 | 2.0 | Uganda Electricity Generation Company (UEGCL) | 91.93 | 2.80 | 89.14 |\n| 3 | 3.0 | National Water and Sewerage Corporation (NWSC) | 47.79 | 27.44 | 20.35 |\n| 4 | 4.0 | Kira Motors Corporation | 26.09 | | 26.10 |\n| 5 | 5.0 | Uganda Development Bank Limited | 22.11 | 10.14 | 11.97 |\n| 6 | 6.0 | Housing Finance Bank Limited | 20.69 | 22.50 | (1.80) |\n| 7 | 7.0 | Pride Micro Finance (Dec 2020) | 12.69 | 12.79 | (0.98) |\n| 8 | 8.0 | Post Bank Uganda Limited (Dec 2020) | 10.07 | 8.38 | 1.69 |\n| 9 | 9.0 | Uganda Printing and Publishing Corporation | 6.25 | 4.22 | 2.033 |\n| 10 | 10.0 | NEC Luwero | 3.68 | 3.38 | 0.30 |\n| 11 | 11.0 | Insurance Training college | 2.42 | 0.015 | 2.42 |\n| 12 | 12.0 | Uganda Wildlife Conservation education Centre | 1.44 | 1.74 | (0.30) |\n| 13 | 13.0 | Mandela National Stadium | 1.08 | (0.23) | 1.38 |\n| 14 | 14.0 | Uganda Property Holdings Limited | 0.85 | | 0.85 |\n| 15 | 15.0 | Uganda Development Corporation (Group) | 0.63 | (7.32) | 7.95 |\n| 16 | 16.0 | NEC UZIMA | 0.15 | 0.26 | (0.12) |\n| 17 | 17.0 | Nile Hotel International Limited | 0.08 | 1.24 | (1.16) |\n| 18 | 18.0 | Uganda Energy Credit Capitalization Co. Ltd | (0.87) | (0.59) | (0.28) |\n| 19 | 19.0 | Kilembe Mines Limited | (0.91) | (2.81) | (1.10) |\n| 20 | 20.0 | New Vision Printing and Publishing Company Limited | (7.11) | 2.66 | (9.76) |\n| 21 | 21.0 | Uganda Electricity Distribution Company Limited (UEDCL) | (10.90) | (10.12) | (0.78) |\n| 22 | 22.0 | Uganda Broadcasting Corporation | (19.32) | (7.62) | (11.71) |\n| 23 | 23.0 | Uganda Civil Aviation Authority (UCAA) | (27.50) | (13.74) | (13.78) |\n| 24 | 24.0 | Uganda Railways Corporation | (37.78) | (61.39) | 23.60 |\n| 25 | 25.0 | Uganda Wildlife Authority (UWA) | (45.05) | 5.54 | (50.59) |\n| 26 | 26.0 | Uganda National Airlines Company Limited | (164.60) | (102.45) | (62.12) |", "metadata": {"page": 67, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | No. | Entity | Return on Asset (%) | Unnamed: 3 |\n|---:|:------|:-------------------------------------------------------------|:----------------------|:-------------|\n| 0 | | | 2019/20 | 2020/21 |\n| 1 | 1.0 | Uganda Wildlife Conservation education Centre | 49.9 | 48.1 |\n| 2 | 2.0 | Kira Motors Corporation | 41 | 43 |\n| 3 | 3.0 | NEC Constructions Construction Works and Engineering Limited | 10.8 | 31 |\n| 4 | 4.0 | Uganda Electricity Transmission Company Limited | 26.2 | 26.4 |\n| 5 | 5.0 | Uganda Printing and Publishing Corporation | 2.16 | 22.06 |\n| 6 | 6.0 | NEC UZIMA | 6.3 | 12.1 |\n| 7 | 7.0 | NEC Luwero | 12.5 | 10 |\n| 8 | 8.0 | Pride Micro Finance (Dec 2020) | 4 | 3.3 |\n| 9 | 9.0 | Uganda Development Bank Limited | 3.16 | 2.91 |\n| 10 | 10.0 | Housing Finance Bank Limited | 2.9 | 2.5 |\n| 11 | 11.0 | Post Bank Uganda Limited (Dec 2020) | 2.57 | 2.25 |\n| 12 | 12.0 | Uganda Development Corporation (Group) | -405.4 | 1.8 |\n| 13 | 13.0 | Uganda Post Limited | 1 | 1 |\n| 14 | 14.0 | Uganda Electricity Generation Company | 0.69 | 0.79 |\n| 15 | 15.0 | Mandela National Stadium | -0.16 | 0.6 |\n| 16 | 16.0 | Uganda Property Holdings Limited | 0.4 | 0.33 |\n| 17 | 17.0 | National Water and Sewerage Corporation | 1.45 | 0.26 |\n| 18 | 18.0 | Nile Hotel International Limited | 0.67 | 0.04 |\n| 19 | 19.0 | New Vision Printing and Publishing Company Limited | 5.28 | -0.4 |\n| 20 | 20.0 | Uganda Electricity Distribution Company Limited | -0.56 | -0.56 |\n| 21 | 21.0 | Uganda Railways Corporation | -1.66 | -1.03 |\n| 22 | 22.0 | Uganda Civil Aviation Authority | 0.48 | -2.4 |", "metadata": {"page": 68, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 23. | Uganda Broadcasting Corporation | -2.5 | -5.88 |\n|---:|------:|:-----------------------------------------|---------:|---------:|\n| 0 | 24 | Kilembe Mines Limited | -6.72 | -10 |\n| 1 | 25 | Uganda National Airlines Company Limited | -12.2 | -13.1 |\n| 2 | 26 | Uganda Wildlife authority | 6.84 | -21.75 |\n| 3 | 27 | Soroti Fruits Limited | -1513 | -1590.2 |", "metadata": {"page": 69, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | No | Entity | Current Ratio | Unnamed: 3 |\n|---:|:-----|:------------------------------------------------|:----------------|:-------------|\n| 0 | | | 2020/21 | 2019/20 |\n| 1 | 1.0 | Nile Hotel International Limited | 26.24 | 9.9 |\n| 2 | 2.0 | Soroti Fruits Limited | 25.7 | 122.38 |\n| 3 | 3.0 | NEC Luwero | 11.9 | 5.1 |\n| 4 | 4.0 | NEC AGRO | 11.4 | 2.7 |\n| 5 | 5.0 | Uganda Development Corporation (Group) | 9.3 | 4.3 |\n| 6 | 6.0 | Uganda Electricity Distribution Company Limited | 6.9 | 7.4 |", "metadata": {"page": 69, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 7. | Uganda Property Holding | 3.9 | 2.5 |\n|---:|-----:|:-------------------------------------------------------------|------:|------:|\n| 0 | 8 | Uganda National Airlines Company Limited | 2.7 | 6.2 |\n| 1 | 9 | Uganda Printing and Publishing Corporation | 2.64 | 1.77 |\n| 2 | 10 | New Vision Printing and Publishing Company Limited | 2.6 | 2.68 |\n| 3 | 11 | Uganda Railways Corporation | 2.6 | 3.09 |\n| 4 | 12 | NEC UZIMA | 2.3 | 0.8 |\n| 5 | 13 | Uganda Electricity Transmission Company Limited | 1.9 | 1.66 |\n| 6 | 14 | NEC Constructions Construction Works and Engineering Limited | 1.4 | 1.3 |\n| 7 | 15 | National Water and Sewerage Corporation | 1.37 | 1.18 |\n| 8 | 16 | Uganda Wildlife Conservation education Centre | 1.3 | 1.12 |\n| 9 | 17 | Uganda Post Limited | 1.1 | 1.2 |\n| 10 | 18 | Uganda Wildlife authority | 1.09 | 1.93 |\n| 11 | 19 | Mandela National Stadium | 0.73 | 0.49 |\n| 12 | 20 | Kilembe Mines Limited | 0.56 | 1.3 |\n| 13 | 21 | Uganda Electricity Generation Company | 0.43 | 0.53 |", "metadata": {"page": 70, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 |\n|---:|:-----------|:--------------------------|:----------------------------------------------|:-----------|:------------------------|:-----------|:------------------|:-----------|:----------------|:-----------|\n| 0 | Unnamed: 0 | Institution | Liquidity assessment for banking institutions | Unnamed: 3 | Unnamed: 4 | Unnamed: 5 | Unnamed: 6 | Unnamed: 7 | Unnamed: 8 | Unnamed: 9 |\n| 1 | SN | N Bank | Current ratio | nan | CustomerDeposits/loan s | nan | Net liquid assets | nan | Loan to deposit | nan |\n| 2 | 1. | Housing 1 Finance Bank | 1.45 | 1.44 | 654.1 | 559.8 | 35% | 31% | 84.10% | 98% |\n| 3 | 2. | Pride 2 Micro Finance | 1.62 | 1.56 | 174.37 | 140.82 | 0 | 0 | 105% | 80% |\n| 4 | 3. | Post 3 Bank | 1.11 | 1.13 | 0 | 0.0 | 0 | 0 | 74.50% | 77% |\n| 5 | 4. | Uganda 4 Development Bank | 6.3 | 4.42 | 547 | 354.0 | 0 | 0 | 0 | 0 |\n| 6 | nan | Total | 10 | 9.0 | 1375 | 1055.0 | 35% | 31% | 264% | 255% |\n| 7 | nan | Average | 3 | 2.0 | 344 | 264.0 | 9% | 8% | 66% | 64% |", "metadata": {"page": 70, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | SN | Bank | Prior period (UGX- Billions) | Current period (UGX-Billions) |\n|---:|:-----|:------------------------|-------------------------------:|--------------------------------:|\n| 0 | 1.0 | Housing finance bank | 550.6 | 553.5 |\n| 1 | 2.0 | Pride Micro Finance | 171.76 | 183.39 |\n| 2 | 3.0 | Postbank | 267 | 334.7 |\n| 3 | 4.0 | Uganda Development Bank | 354 | 547 |\n| 4 | | Average | 335.84 | 404.65 |", "metadata": {"page": 71, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | No. | Entity | Profit Before Interest | Interest (Financing cost) | Interest Cover (No. of times) (2020/21 | Interest Cover (No. of times) (2019/20 |\n|---:|------:|:---------------------------------------------------|:-------------------------|----------------------------:|-----------------------------------------:|-----------------------------------------:|\n| 0 | 1 | National Water and Sewerage Corporation | 18.68 | 6.95 | 2.7 | 28.3 |\n| 1 | 2 | New Vision Printing and Publishing Company Limited | (0.34) | 0.59 | -0.6 | 28.2 |\n| 2 | 3 | Insurance Training college | 2.42 | 1.06 | 2.3 | 0.001 |", "metadata": {"page": 71, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Planting seed | Pesticides | Fertilizers | Spray pumps | Herbicides |\n|---:|:-------------------------------------------|:----------------|:---------------|:--------------|:--------------|:---------------|\n| 0 | Production inputs needed(Strategic Plan) A | 3,200 Mt | 222,000 liters | 415 Mt | 7,000 | 0 |\n| 1 | Planned Quantities (MOU- Ginners) B | 2,500Mt | 224,000 liters | 746 Mt | 3,000 | 7,500 liters |\n| 2 | Actual Quantities provided (Reports) C | 2,334 Mt | 287,102 liters | 40.4 Mt | 4,740 | 6,616 liters |\n| 3 | Difference A - C | 866 Mt | (65,102) | 374.6 Mt | 2,260 | (6,616) Liters |", "metadata": {"page": 75, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | SN | Information system | Purpose | Entity | Cost (Bn) |\n|---:|:-----|:-----------------------------------------------------------------|:-----------------------------------------------------------------------------------------------------------------------------------------------|:--------------------|:---------------|\n| 0 | 1.0 | Prosecution Case Management Information System (PROCAMIS) | Record and collect information pertaining to cases, and rapidly transfer case details from law enforcement across the DPP offices. | ODPP | 26.188 |\n| 1 | 2.0 | Court Case Administration System (CCAS) | Receiving and allocating cases to different Judicial officers for further management. | Judiciary | No information |\n| 2 | 3.0 | The Electronic Court Case Management Information System (ECCMIS) | Manage case records, e-filing. The system tracks all aspects of a case life cycle from initial filing through disposition up to appeal. | Judiciary | 9.277 |\n| 3 | 4.0 | Prisoners Management Information System(PMIS) | Recording and classifying of all prisoner related information across all the prisons. | Prisons | 0.501 |\n| 4 | 5.0 | Crime Records Management System (CRMS) | Automate all paper based processes of case management. | Uganda Police Force | 0.5 |\n| 5 | 6.0 | Suspect profiling systems | Capture profiles of suspects such as bio data, photographs, and thumbprints among other features, to help in quick identification of suspects. | Uganda Police Force | No information |\n| 6 | | TOTAL | | | 36.466 |", "metadata": {"page": 77, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Financial Year | Approved positions | Filled up | Shortage | Percentage shortage |\n|---:|:-----------------|:---------------------|:------------|:-----------|:----------------------|\n| 0 | 2018/2019 | 3,847 | 2,008 | 1,842 | 48% |\n| 1 | 2019/2020 | 6,797 | 2,713 | 3,823 | 60% |", "metadata": {"page": 102, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Financial Year | Revised Budget | Actual Receipts | Variance | Percentage Perfomance |\n|---:|:-----------------|:-----------------|:------------------|:--------------|:------------------------|\n| 0 | 2018/2019 | 92,214,094,491 | 87,717,635,886 | 4,496,458,605 | 95% |\n| 1 | 2019/2020 | 53,946,824,552 | 46,377,499,736 | 7,569,324,816 | 86% |", "metadata": {"page": 103, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Financial Year | Revised Budget | Actual Receipts | Variance | Percentage Perfomance |\n|---:|:-----------------|:-----------------|:------------------|:---------------|:------------------------|\n| 0 | 2018/2019 | 68,424,052,397 | 57,321,631,217 | 11,102,421,180 | 84% |\n| 1 | 2019/2020 | 22,975,271,619 | 17,293,894,416 | 5,681,377,203 | 75% |", "metadata": {"page": 103, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | S/No | Project Name | Payment (UGX) | Remarks |\n|---:|:-------|:------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:----------------|:----------------------------------------------------------------------------------------------|\n| 0 | 1 | Upgrading to Paved Standards of Kulambiro Ring Road (4.82km) including Spur to Najjera Road (0.7km), Reconstruction and Dualling of Nakawa Ntinda Road (2.8km) (Including Signalization of Four Junctions) and Reconstruction and Widening of Acacia Avenue (1.45km) (including Signalization of Six Junctions) \u2013 Lot 1 | 80,849,062 | Payment of Unverified NITA Relocations |\n| 1 | | | 503,716,979.38 | Unaccounted for Payments of for relocation of services |\n| 2 | | | 215,992,827.81 | Payments for quantities of works in excess of those executed |\n| 3 | 2 | Upgrading to paved standard of Kabuusu \u2013Bunamwaya \u2013 Lweza road (8.06Km) \u2013 Lot 2 | 56,860,150 | Irregular Payment for Costs due to Extension of Time |\n| 4 | | | 348,214,079.83 | Payments for quantities of works in excess of those executed |\n| 5 | 3 | Upgrading of Cecila Road (1.3Km) | 14,074,910 | Payments for quantities of works in excess of those executed |\n| 6 | 4 | Construction of Kitintale Market \u2013 Phase I | 119,717,000 | Payments for quantities of steel reinforcement in excess of those in the bar bending schedule |\n| 7 | 5 | Reconstruction of Ntinda II Road | 16,213,200 | Payments for quantities of works in excess of those executed |\n| 8 | TOTAL | | 1,355,638,209 | |", "metadata": {"page": 111, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | SN | Item | Amount - UGX |\n|---:|:-----|:------------------------------------------------------------------------------------|:-----------------|\n| 0 | 1.0 | Consolidated Tax Liability (PAYE, Local Exercise, Withholding Tax, Value Added Tax) | 9,786,780,845 |\n| 1 | 2.0 | UCC liability | 62,469,304,749 |\n| 2 | 3.0 | UCECPS liability | 2,353,904,321 |\n| 3 | 4.0 | Verified Creditors Liability (Pre & Post Administration period) | 63,079,412,417 |\n| 4 | 5.0 | Un remitted NSSF Deductions | 15, 462, 575,874 |\n| 5 | 6.0 | UTL Pension Liability for former UPTC employees | 165,048,246,917 |\n| 6 | | Total | 302,737,649,249 |", "metadata": {"page": 120, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | S/N | Entity | Total No. of Claimants | Claim Amounts as at 30 th June |\n|---:|:----------------------------|:---------|:-------------------------|:---------------------------------|\n| 0 | | | | 2020 - UGX |\n| 1 | 1 | UTL | 1,065 | 200,444,057,531 |\n| 2 | 2 UPL 348 35,249,791,537 | | | |\n| 3 | 3 | PBUL | 8 | 135,780,242 |\n| 4 | 4 UCC 11 691,361,961 | | | |\n| 5 | 5 | UPTC | 71 | 9,638,276,645 |\n| 6 | Total 1,503 246,159,267,916 | | | |", "metadata": {"page": 122, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | S/N | Entity | Total No. of Claimants | Total claimants verified | Total Amount Verified Payable as at June 2021- UGX |\n|---:|:------|:---------|:-------------------------|:---------------------------|:-----------------------------------------------------|\n| 0 | 1.0 | UTL | 1,065 | 882 | 165,048,246,917 |\n| 1 | 2.0 | UPL | 348 | 337 | 43,233,738,001 |\n| 2 | 3.0 | UPTC | 71 | 35 | 4,744,903,400 |\n| 3 | | Total | 1,484 | 1,254 | 213,026,888,318 |", "metadata": {"page": 122, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | S/N | Project Name | Amount Invested as at 30 th June 2020 (UGX in Bn) | Challenge |\n|---:|:------|:---------------------|----------------------------------------------------:|:---------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 01 | Soroti Fruit factory | 23.76 | Additional machinery was procured to cater for the user needs not identified at planning stage |\n| 1 | 02 | Kigezi Highland | 14.03 | Additional funds to support raw material uptake leading to project cost-overruns |\n| 2 | 03 | Mabale Tea Factory | 16.6 | Change of user needs during implementation |\n| 3 | 04 | Kayonza tea factory | 14.06 | Project performance is satisfactory however, the objective of the investment decision on the part of Government is yet to be realised. |\n| 4 | 05 | Atiak Sugar factory | 88.8 | Inadequate inputs to match the factory capacity |\n| 5 | Total | | 157.25 | |", "metadata": {"page": 124, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 0 | 1 |\n|---:|:---------------------------------------------|:-------------------|\n| 0 | Sn SECTOR AND ENTITY SUMMARY OF KEY FINDINGS | Unnamed: 1 |\n| 1 | nan | AGRICULTURE SECTOR |", "metadata": {"page": 141, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 0 | 1 |\n|---:|:-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----:|\n| 0 | 1. Agriculture Cluster Development Project (ACDP). 2020/21 Opinion Unqualified \uf0b7 Delays in the implementation of some project activities were noted such as provision of E-Vouchers subsidies to beneficiaries in the 12 clusters, only a total of 208,827 of beneficiaries used E-Voucher out of the targeted 400,000 and only 18 road chokes have been worked on in the 7 pilot districts against the targeted 90. \uf0b7 The project budgeted to receive UGX 361.7Bn from development partners but only received UGX 254.8Bn, representing a performance of 70% of the budget. Similarly, the project budgeted to receive UGX 4Bn as GOU counterpart funding but only received UGX 2.6Bn (66%) resulting in a shortfall of UGX 1.4Bn which is 34% of the budget. \uf0b7 Out the releases of funds of UGX 254.8Bn, the project remained with unspent balance of UGX 99.1Bn representing an absorption level of 61%. \uf0b7 I sampled 12 outputs with a total of 25 activities worth UGX.324.1Bn representing 90% of the total budget and noted that 8 outputs with 17 activities worth UGX 53.7Bn were not quantified to enable measurement of performance. Furthermore, of the 4 outputs with a total of (8) quantified activities worth UGX 80.14Bn assessed; 1 output with 1 activity representing 25% was fully implemented while 3 outputs with a total of 7 activities representing 75% were partially implemented. \uf0b7 The budget for the financial year 2020/21 was approved on 13th August 2020 (2 months into the financial year). \uf0b7 Project funds to the tune of UGX 3.5Bn were disbursed significantly late to the districts. \uf0b7 National Project Steering Committee (NPSC) held only one meeting as opposed to two recommended in a year. \uf0b7 Procurements for rehabilitation of identified and approved road chokes/work in the last 29 roll-out districts had not commenced by the time of audit despite MAAIF budgeting for the activity at UGX 90Bn. \uf0b7 Shortcomings were observed with the E-Voucher Management Agency which included, frequent breakdown of the system, lesser enrolment of beneficiaries ie 64% of the target, only 44% of the project beneficiaries were trained in Financial Literacy and Input use, the system was at 78% of its functional requirement, system installation, configuration, optimisation and commissioning reports have not been submitted. \uf0b7 MAAIF budgeted UGX.104.9Bn to provide Electronic Voucher subsidies to 293,500 beneficiaries in 12 project clusters but only managed 118,933 (41%) beneficiaries. \uf0b7 Farmers still had challenges in transacting using the system, managing farmer savings and use of inputs via the system. During the financial years 2019/2020 and 2020/2021, 52,089 transactions were made by users who had never logged onto the system and were accessing inputs manually. Relatedly, 2,873 user IDs initiated 7,878 payment requests | nan |\n| 1 | nan | nan |", "metadata": {"page": 141, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 0 | 1 | 2 |\n|---:|:-----------|:------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | without logging onto the system. \uf0b7 An analysis of E-Voucher Management Agency (EVMA) system revealed that 168,086 (99%) of the farmers that accessed inputs redeemed the inputs for only one cycle without transitioning to cycles 2 and 3, 2191 (1.3%) transitioned to cycle 2 without transitioning to cycle 3, while 47 (0.03%) transitioned to cycle 3. \uf0b7 In the year 2019/2020 and 2020/2021, 347 farmers ordered inputs during the financial year at amounts that were in excess of the recommended threshold of UGX.1,350,000 worth UGX.186,792,644. | Unnamed: 2 |\n| 1 | 2 | Agriculture Value Chain Development Programme (AVCP). 2020/21 Opinion Unqualified | \uf0b7 Out of the planned twelve (12) strategic targets/goals to be achieved by financial year 2020/2021; four (4) had been fully achieved, seven (7) were partially achieved while one (1) was not achieved at all. \uf0b7 There was a shortfall in releases of UGX.22.84Bn which is 64% of the budget. Further, the entity remained with unspent balance of UGX.0.81Bn representing an absorption level of 94%. \uf0b7 I reviewed fourteen (14) outputs with a total of fifty (50) activities worth UGX.33.72Bn and noted that all the 14 outputs with a total of 50 activities were fully quantified. Further, out of the 14 outputs that were fully quantified, I observed that; 0ne (01) output with four (04) activities and expenditure worth UGX.0.547Bn was fully implemented; ten (10) outputs with forty-two (42) activities worth UGX.10.1Bn were partially implemented i.e. out of the 42 activities, 17 activities (40%) were fully implemented, 16 activities (39%) were partially implemented while 9 activities (21%) remained unimplemented. Three (03) outputs with four (04) activities were not implemented at all. \uf0b7 Assessment of achievement of services from implemented outputs revealed that 60 artificial inseminations (AI) Kits were purchased at UGX.0.26Bn and delivered to NAGRC in June; however, management had not yet distributed them to beneficiary AIs by November 2021 implying that the equipment was not in use for more than five months. \uf0b7 Relatedly, the project undertook the Purchase and Installation of Ultra- High Performance Liquid Chromatography (UHPLC) for analysis of various chemical food and environmental residues and related substances at UGX.0.39Bn which was delivered in June 2021 but was not functional by November due to incomplete components. \uf0b7 There was no Steering committee sitting during the year to facilitate and ensure adherence to relevant strategies established by Government during project implementation. |", "metadata": {"page": 142, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 0 | 1 | 2 |\n|---:|----:|:------------------------------------------------------------------------------------------|:------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 3 | Coordinating Office for Control of Trypanosomiasis in Uganda. 2020/21 Opinion Unqualified | \uf0b7 The entity had an approved strategic plan, however the plan had not been certified by NPA contrary to Regulation 26 (1) of the NPA (development of plans). \uf0b7 All budgeted Donor revenue of UGX.0.783Bn for the financial year 2020/2021, was dully received representing performance of 100% of the target. \uf0b7 There was a shortfall in releases amounting to UGX.0.172Bn representing 4.1% of the budget. Furthermore, the entity remained with unspent balance of UGX.0.00037Bn representing an absorption level of 99.9%. \uf0b7 The entity received off-budget financing to a tune of UGX.0.783bn which was not appropriated as part of the entity budget contrary to the law. \uf0b7 4 outputs with 8 activities and expenditure worth UGX.0.324Bn were fully quantified while 5 outputs with 34 activities worth UGX.4.41Bn were |", "metadata": {"page": 142, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 0 | 1 | 2 |\n|---:|:-----------|:-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:-----------|\n| 0 | Unnamed: 0 | insufficiently quantified. Of the 4 outputs with all 8 quantified activities worth UGX.0.324Bn assessed; 3 outputs with 4 activities worth UGX.0.19Bn were fully implemented, while 1 output with 4 activities worth UGX.0.134 was partially implemented. \uf0b7 All 4 quarterly performance reports were submitted after the quarterly deadline and I did not obtain evidence to confirm that the Accounting Officer prepared monitoring plans and reports. \uf0b7 Out of the approved staff number of 37 employees, 19 (51%) have been filled leaving a 18 (49%) vacant among which are key posts of Deputy Director, Accountant, Medical Officer, Entomology Officer, M&E Officer etc. \uf0b7 Contrary to the COCTU Human Resource Manual that requires operation of a medical insurance scheme to benefit all its employees, the entity has not operationalized any Staff Medical Insurance Policy for its staff. | Unnamed: 2 |", "metadata": {"page": 143, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 0 | 1 | 2 |\n|---:|----:|:-------------------------------------------------------------|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 4 | Cotton Development Organization. 2020/21 Opinion Unqualified | \uf0b7 The entity cotton sub sector strategic plan had been prepared and approved; however, it was not certified by NPA to evidence its alignment to the NDP-III. \uf0b7 The entity budgeted to collect NTR of UGX 4.43Bn but collected UGX.1.85Bn representing a performance of 41.7% of the target. \uf0b7 Further, there was a shortfall in GoU releases amounting to UGX.0.015Bn representing 1.6% of the budget UGX.8.62Bn. Further, the entity remained with unspent balance of UGX.0.0179Bn representing an absorption level of 98%. \uf0b7 CDO received off-budget financing directly from the United Nations to a tune of UGX.36,178,924 (USD.9,923) which was not declared to treasury and, therefore not appropriated to the entity by Parliament. \uf0b7 I reviewed all 8 out-puts of the budget with a total of twenty one (21) activities and expenditure of UGX.8.46Bn and noted that two (2) outputs with two (2) activities and expenditure worth UGX.4.2Bn were fully quantified, four (4) outputs with a total of thirteen (13) activities and expenditure worth UGX.3.3Bn were insufficiently quantified that is out of the thirteen (13) activities, four (4) activities (30.8%) were quantified and nine (09) activities (69.2%) were not clearly quantified to enable assessment of performance while two (2) outputs with a total of six (6) activities and expenditure worth UGX.0.92Bn were not quantified at all. Further, of the 2 quantified outputs/activities assessed, 1 output with one (1) activity and expenditure of UGX.5.6Bn was fully implemented while 1 output with 1 activity worth UGX.3.6Bn was partially implemented. \uf0b7 Submission of performance reports for three quarters was made after the deadline dates and there was no evidence to confirm that the Accounting Officer Prepared Monitoring Plans and reports which are important in ensuring that the budget performs as expected. \uf0b7 It was noted that UGX.19.649Bn was budgeted to cater for the cotton marketing season 2020/21 out of which, UGX.15.154Bn was budgeted towards provision of planting seed and production inputs. Government was able to contribute only UGX.8.6Bn leaving the balance for the private partner intervention. This is an indication that government is relying more on the ginners to fund the cotton sector. Despite the intervention by the private sector, there were shortages in provision of inputs to farmers. 866 Mt of planting seed, 374.6 Mt of fertilizers and 2,260 spray pumps were not provided as projected in the strategic plan which directly affected the performance of the sector in achieving the desired cotton production |", "metadata": {"page": 143, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 0 | 1 | 2 |\n|---:|:-----------|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:-----------|\n| 0 | Unnamed: 0 | targets. \uf0b7 Analysis of the domestic arrears showed an increase of 198% from UGX.7,925,963 in the prior year to UGX.23,659,951 in the year under review. \uf0b7 CDO staff structure had thirty seven (37) positions dully filled leaving a staff vacancy of ten (10) positions (21%). The positions that have remained vacant over the years include key positions of two (2) Agronomy officers, a classifier and a Personnel & Administration Officer. \uf0b7 Withholding tax to the tune of UGX.83,142,447 from payments worth UGX.839,194,850 was not recovered for onward remittance to URA contrary to section 120(1) and 120(4) of the Income tax Act. | Unnamed: 2 |", "metadata": {"page": 144, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 0 | 1 | 2 |\n|---:|----:|:------------------------------------------------------------------------|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 5 | National Agricultural Research Organization 2020/21 Opinion Unqualified | \uf0b7 The entity\u2019s draft strategic plan had been aligned to the NDP-III at the time of audit and was awaiting certification from NPA due to delayed approval of the Programme Implementation Action Plans (PIAPs). \uf0b7 The entity budgeted to collect NTR of UGX.4.625Bn but collected UGX.3.053Bn representing a performance of 66% of the target. \uf0b7 There was a shortfall in GoU releases amounting to UGX.11.216Bn representing 10.1%. Further, the entity remained with unspent balance of UGX.0.085Bn representing an absorption level of 99.9%. \uf0b7 The entity received off-budget financing directly from development partners to a tune of UGX.49.77Bn out of which only UGX.38.19Bn was declared to the PSST and disclosed in the entity ministerial policy statement without a supplementary appropriation for the balance of UGX.11.58Bn. \uf0b7 I sampled 8 outputs with 35 activities and expenditure of UGX.99.59Bn and noted that 7 outputs with 18 activities and expenditure worth UGX.45.070Bn were fully quantified while 1 output with 17 activities and expenditure worth UGX.54.52Bn was insufficiently quantified, of which 5 activities (29%) were quantified while 12 activities (71%) were not clearly quantified to enable measurement of performance. Further, I observed that out of the seven (7) outputs that were fully quantified, two (2) outputs with five (5) activities and expenditure worth UGX.5.186Bn were fully implemented while Five (5) outputs with thirteen (13) activities worth UGX.39.884Bn were partially implemented i.e. four (4) activities were fully implemented, eight (8) activities were partially implemented, while one (1) activity remained unimplemented. \uf0b7 Submission of performance reports for all the quarters was made after the deadline dates. \uf0b7 Fourteen (14) slow progressing competitive grant scheme (CGS) projects initiated in 2018/19 with funding of UGX.1.158Bn during the financial year 2020/2021 were still on-going despite expected completion date of June 2021. \uf0b7 Civil works and Supplies Projects worth UGX.32,051,565,938 undertaken during the financial year were not yet handed over for use. Further, inspections of NARO facilities at institutes revealed poor road networks, broken down silos at the feed mill, non-functional water pump and abandoned works. \uf0b7 There was failure to achieve the intended service delivery for the additional Civil Works at Rwebitaba ZARDI that costed UGX.418,584,880. This was due to lack of equipment in the laboratory. \uf0b7 Review of 9 sample procurements worth UGX.27,606,866,233 revealed an |", "metadata": {"page": 144, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 0 | 1 | 2 |\n|---:|:-----------|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:-----------|\n| 0 | Unnamed: 0 | average delay of 45 days in the procurement process due to late release of funds by MoFPED. \uf0b7 The entity received Covid 19 supplementary budget of UGX.0.0134Bn for settlement of arrears which was all spent by the entity representing an absorption level of 100%. It was noted that this was inadequate for settlement of domestic arrears brought forward from the previous year 2019/20 given leaving a deficit of UGX1.69Bn (98%). \uf0b7 Domestic arrears increased from UGX.1.72Bn in the previous year to UGX.2.875Bn in the year under review, an increase of 67%. The arrears remained unsettled at the close of the year. Further, NARO did not budget for domestic arrears amounting to UGX.1.687Bn during the year as a paltry provision of only UGX.0.033Bn was budgeted to settle arrears of UGX.1.72Bn. \uf0b7 A review of NARO\u2019s land portfolio revealed that the entity had surveyed 31 pieces of land with total coverage of 4097.20364 Hectares, however it was noted that 8 pieces (3172.937 Hectares) were titled, 20 pieces of land (706.75454 Hectares) were at deed plan stage and 3 pieces of land (217.5121 Hectares) were still at survey report stage. Further, 17 parcels of land located in NaFIRRI-Jinja, Bulindi-Kibaale district, NaLIRRI- Tororo, Namayingo, Nyakyesasa, Ngetta- Kitgum and Rwebitaba-Fort-portal still had cases of encroachement by both private and public developers. \uf0b7 A review of the NARO staff establishment revealed that out of the approved staff number of 995 employees, 851 positions have been filled leaving a staffing gap of 144 (14.5%) staff which indicates a further reduction in staff by about 2.5% compared to the previous financial year. | Unnamed: 2 |", "metadata": {"page": 145, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 0 | 1 | 2 |\n|---:|----:|:----------------------------------------------------------------------------|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 6 | National Animal Genetics and Data Bank (NAGRIC) 2020/21 Opinion Unqualified | \uf0b7 The entity strategic plan had been aligned to the NDP-III at the time of audit but it was still in draft form awaiting certification from NPA before approval. \uf0b7 The entity budgeted to collect NTR of UGX.1.550Bn but collected UGX.3,872,073,899 representing a performance of 250% of the target. \uf0b7 There was a shortfall in GoU releases amounting to UGX.4.7Bn representing 6.21%. Further, the entity remained with unspent balance of UGX.0.47Bn representing an absorption level of 99.3%. \uf0b7 41 out-puts with a total of ninety-five (95) activities representing 100% of the total budget and noted that 6 (14.6%) of the total outputs were not quantified while 7 (17%) outputs with a total of seventeen (17) activities were insufficiently quantified. Further, of the 28 quantified outputs/activities assessed, 4 outputs with eight (8) activities representing 9.7% were fully implemented; 10 outputs with 20 activities representing 24.3% were partially implemented while 14 outputs with 30 activities representing 34.1% were not implemented at all. \uf0b7 Submission of performance reports for all the quarters was made after the deadline dates. Furthermore, inconsistences were noted in the reported performance where management reported procurement of poultry feeds, drugs and vaccines for poultry on NAGRC & DB Centre farms instead of the planned activity of rearing of 5,000 Indigenous poultry genetic resources sourced on Aswa ranch in Pader District. \uf0b7 NAGRC&DB had a COVID 19 arrears supplementary budget of UGX.0.066Bn all of which was warranted and spent representing 100% of the budget absorption. \uf0b7 Letters of Credit worth UGX.21.850Bn which expired on 31st December 2020 were renewed to 31st December 2021 leading to nugatory |", "metadata": {"page": 145, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 0 | 1 | 2 |\n|---:|:-----------|:-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:-----------|\n| 0 | Unnamed: 0 | expenditure of UGX.0.54Bn. By 30th June 2021, prior year LCs worth UGX.10.875Bn were still outstanding. \uf0b7 12 project sites whose contracts total to UGX.20.055Bn out of which UGX.6.327Bn had been paid were abandoned while 8 delayed and remained incomplete by 30th June 2021. \uf0b7 34 contracts for construction of structures, procurement of land and delivery of supplies worth UGX.34.4Bn out of which UGX.11.451Bn was paid had not started. Out of the 34 contracts, 3 service providers who had been fully paid a sum of UGX.7.45Bn had not delivered. \uf0b7 640 acres of planted pasture/ fodder in Kasolwe ranch had dried up adversely affecting the quality and quantity of feeds for the animals. \uf0b7 Domestic arrears increased by UGX.0.918Bn from UGX. 0.336Bn in the previous year to UGX.1.254Bn in the year under review. The arrears remained unsettled at the close of the year. \uf0b7 Out of 12 ranches managed by NAGRC & DB, 6 had been encroached on while some of the NAGRC & DB land had no land titles in the names of NAGRIC 7DB. \uf0b7 NAGRC & DB had an approved staff structure of 189 positions with only 105 (56%) filled leaving 84 (44%) vacant and 17 positions were filled beyond the approved structure. Further, general support staff structure of 128 positions had 310 staff resulting in an over staffing of 142 (185%). | Unnamed: 2 |", "metadata": {"page": 146, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 0 | 1 | 2 |\n|---:|----:|:------------------------------------------------------|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 7 | National Oil Palm Project 2020/21 Opinion Unqualified | \uf0b7 Out of seven (7) strategic targets to be achieved by 30th June 2021, none had been fully achieved, two (2) were partially achieved while five (5) were not achieved at all. \uf0b7 The Project budgeted to receive IFAD funds to a tune of UGX.39.87bn, out of which UGX.25.584bn was available representing a performance of 64% of the budget. Further, there was a shortfall in GoU releases amounting to UGX.0.035Bn representing 0.46% of the budgeted UGX.7.597Bn. \uf0b7 Out of the total available funding of UGX.35.528Bn during the financial year, UGX.28.415Bn was spent by the entity resulting in an unspent balance of UGX.7.113Bn representing an absorption level of 80%. \uf0b7 I sampled Six (6) outputs with a total of eighty one (81) activities and expenditure of UGX.21.6231Bn and noted that all six (6) outputs with 81 activities were fully quantified to enable assessment of performance. Further, assessment of the implementation of all Six (6) outputs revealed that; all six (6) outputs with eighty one (81) activities were partially implemented i.e. out of the eighty one (81) activities, thirty two (32) activities (40%) were fully implemented; thirty (30) activities (37.5%) were partially implemented, while nineteen (19) activities (12.5%) remained unimplemented. \uf0b7 Two (2) contracts worth UGX.12.397Bn in relation to construction of landing sites were cancelled due to delayed implementation of projects beyond 12 months from the initial intended completion date. \uf0b7 I noted delayed titling of 883.92 hectares of the acquired nucleus estate Land exposing it to risks of encroachment by individuals. \uf0b7 Review of four (4) sample procurements worth UGX.1.47Bn revealed an average delay of 140 days in the procurement process majorly as a result of delayed approval process by IFAD, contracts committee and Solicitor General. |", "metadata": {"page": 146, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 8 | Strengthening National Seed Certification Service Project (SNSCS). 2019/2020 Opinion Unqualified | \uf0b7 Out of the planned six (6) strategic targets/goals to be achieved, none was either fully or partially achieved and one target was not even quantified to enable assessment. \uf0b7 SNSCS planned to receive and spend UGX.2.59bn from AGRA out of which UGX.1.099bn (42%) was received leading to a funding gap of UGX.1.49bn (58%). Further, out of the total receipts for the financial year of UGX.1.099Bn, UGX.0.05Bn was spent by the entity resulting in an unspent balance of UGX.1.049Bn representing an absorption level of 4.5%. \uf0b7 Out of the nine (9) outputs with a total of twenty eight (28) activities and expenditure of UGX.0.0498Bn reviewed; five (5) outputs with sixteen (16) activities and expenditure worth UGX.0.0498BN were fully quantified whereas four (4) outputs with a total of twelve (12) activities and nil expenditure were insufficiently quantified. \uf0b7 I assessed the implementation of the five(5) outputs that were fully quantified with a total of sixteen(16) activities worth UGX.0.0498Bn and noted that one (1) output with 5 activities worth UGX.0.0498Bn was partially implemented. Out of the 5 activities, the entity fully implemented one (1) activity (20%) while 4 activities (80%) were not implemented. Four (4) outputs with a total of eleven (11) activities and nil expenditure were not implemented at all. \uf0b7 Management did not prepare periodic performance reports and therefore I was unable to clearly assess the actual performance against the planned outputs. |\n|---:|----:|:---------------------------------------------------------------------------------------------------|:------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 9 | Strengthening National Seed Certification Service Project (SNSCS). 2020/21 Opinion Unqualified | \uf0b7 Out of the planned six (6) strategic targets/goals to be achieved by 30th June 2021, one (1) target was fully achieved, three (3) targets had been partially achieved and two (2) were not achieved at all. \uf0b7 The Project budgeted to receive UGX.1.184bn out of which UGX.1.049bn was received resulting into a shortfall of UGX.0.135bn, which is 11% of the budget. Further, out of the total warrants of UGX.1.049Bn received during the financial year, only UGX.0.199Bn was spent by the entity resulting in an unspent balance of UGX.0.85Bn representing absorption level of 19%. \uf0b7 I sampled five (5) outputs with 15 activities worth UGX.0.199Bn and noted that three (3) outputs with a total of seven (7) activities and expenditure worth UGX.0.199Bn were fully quantified; Two (2) outputs with a total of eight (8) activities were not quantified at all. Further, of the three quantified outputs assessed, one (1) output with 3 activities worth UGX.199, 045,000 was partially implemented. Out of the 3 activities, one (1) activity was partially implemented, while two (2) activities remained unimplemented. Two (2) outputs with four (4) activities worth NIL expenditure were not implemented. \uf0b7 AGRA amended the disbursement of Grant due to low absorption and decided to de-obligate US$.571,167 being the total un-disbursed funds for the project thus necessity to restructure the budget and milestone delivery plan to fit within US$.323, 450 that had been disbursed. \uf0b7 Contrary to the grant guidelines, unspent or un-committed grant funds remained on the project bank account and were not invested in highly liquid investments to earn income. \uf0b7 A number of project milestones had not been achieved by the end of the financial year exposing the Grant to a risk of failure to achieve its objectives. |", "metadata": {"page": 147, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 10 | The Uganda Multi-Sectoral Food Security and Nutrition Project. 2020/21 Opinion Unqualified | \uf0b7 Out of the planned fourteen (14) strategic targets/goals to be achieved by financial year 2020/2021; ten (10) (71%) had been fully achieved while four (4) (29%) were partially achieved. \uf0b7 There were excess receipts worth UGX.4.154Bn as a result of the project design where the withdrawal of funds from the Donor is made on a six (6) months projection which is 25% of the budgeted UGX.16.610Bn. Further, there was a shortfall of UGX.0.06Bn in GOU co-funding out of the budgeted UGX.0.755Bn which is 8% of the GOU budget. \uf0b7 I noted that out of the total available funds of UGX.20.764Bn, only UGX.11.267Bn was spent by the project resulting in an unspent balance of UGX.9.497Bn representing an absorption level of 54.26%. \uf0b7 I reviewed seven (7) outputs with a total of forty (40) activities and expenditure of UGX.11.267Bn for assessment and noted that all the 40 activities were fully quantified. Further, assessment of the implementation of the seven (7) outputs revealed that; Two (2) outputs with eight (8) activities and expenditure worth UGX.1.771Bn were fully implemented while five (5) outputs with thirty two (32) activities worth UGX.9.496Bn were partially implemented i.e. out of the thirty two (32) activities, the entity fully implemented nineteen (19) activities (59%), ten (10) activities (31%) were partially implemented, while three (3) activities (10%) remained unimplemented. \uf0b7 An assessment from a sample of out-puts that were implemented during the year revealed shortcomings ie funds remitted to 1500 primary schools had not been utilized since they did not procure the required inputs for planting and multiplication (seedlings), the local Micro Nutrients rich crop Planting Materials for 3000 parent group Members and Herbicides & Pesticides. \uf0b7 Field inspections revealed that nutrition supplements such as the Iron and Folic Acid and Zinc expired in April and December 2020 respectively before they could be utilised by the beneficiaries causing loss of Government funds hindering the achievement of the intended objective. |\n|---:|-----:|:---------------------------------------------------------------------------------------------|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 11 | The Regional Pastoral Livelihoods Resilience Project. 2020/21 Opinion Unqualified | \uf0b7 Out of the planned fourteen (14) strategic targets/goals to be achieved by financial year 2020/2021; six (6) had been fully achieved, five (5) were partially achieved while three (3) were not achieved at all. \uf0b7 There was a shortfall in releases from the donor of UGX.13.788Bn which is 30% of the budget. The project budgeted to receive UGX.0.3Bn GOU funding all of which was availed. Further, the entity remained with unspent balance of UGX.15.172Bn representing an absorption level of 54%. \uf0b7 I reviewed all the eleven (11) outputs with a total of twenty six (26) activities and expenditure of UGX.17.71Bn and noted all were fully quantified. Further, assessment of the level of implementation for the 11 outputs revealed that five (5) outputs with nine (9) activities and expenditure worth UGX.0.765Bn were fully implemented while the six (6) outputs with seventeen (17) activities worth UGX.16.945Bn were partially implemented i.e. out of the seventeen (17) activities, the entity fully implemented seven (7) activities (41%); five (5) activities (29%) were partially implemented, while five (5) activities (29%) remained unimplemented. \uf0b7 Assessment of achievement of services from implemented outputs revealed that although the Livestock marketing Information System is in place, it lacks up to date information for the beneficiaries implying that it |", "metadata": {"page": 148, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 10 | The Uganda Multi-Sectoral Food Security and Nutrition Project. 2020/21 Opinion Unqualified | \uf0b7 Out of the planned fourteen (14) strategic targets/goals to be achieved by financial year 2020/2021; ten (10) (71%) had been fully achieved while four (4) (29%) were partially achieved. \uf0b7 There were excess receipts worth UGX.4.154Bn as a result of the project design where the withdrawal of funds from the Donor is made on a six (6) months projection which is 25% of the budgeted UGX.16.610Bn. Further, there was a shortfall of UGX.0.06Bn in GOU co-funding out of the budgeted UGX.0.755Bn which is 8% of the GOU budget. \uf0b7 I noted that out of the total available funds of UGX.20.764Bn, only UGX.11.267Bn was spent by the project resulting in an unspent balance of UGX.9.497Bn representing an absorption level of 54.26%. \uf0b7 I reviewed seven (7) outputs with a total of forty (40) activities and expenditure of UGX.11.267Bn for assessment and noted that all the 40 activities were fully quantified. Further, assessment of the implementation of the seven (7) outputs revealed that; Two (2) outputs with eight (8) activities and expenditure worth UGX.1.771Bn were fully implemented while five (5) outputs with thirty two (32) activities worth UGX.9.496Bn were partially implemented i.e. out of the thirty two (32) activities, the entity fully implemented nineteen (19) activities (59%), ten (10) activities (31%) were partially implemented, while three (3) activities (10%) remained unimplemented. \uf0b7 An assessment from a sample of out-puts that were implemented during the year revealed shortcomings ie funds remitted to 1500 primary schools had not been utilized since they did not procure the required inputs for planting and multiplication (seedlings), the local Micro Nutrients rich crop Planting Materials for 3000 parent group Members and Herbicides & Pesticides. \uf0b7 Field inspections revealed that nutrition supplements such as the Iron and Folic Acid and Zinc expired in April and December 2020 respectively before they could be utilised by the beneficiaries causing loss of Government funds hindering the achievement of the intended objective. |\n|---:|:-----------|:------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | may not be regularly used. \uf0b7 Contract works for the valley dams which are the critical infrastructure for the long term sustainability of the project are past the completion time and works are still significantly behind schedule despite contractors having been paid substantial percentages of the contract sums \uf0b7 Shortcomings were noted on reliability of the market information data system designed to track information such as prices, tradeable volumes, diseases concerning livestock for use by famers such as failure to input market information data into the system since October 2019, lack of a designated system administrator that is responsible for managing and updating the system at the Ministry and lack of a system manual that provides standard guideline for the system use. \uf0b7 There was no Steering committee sitting during the year to facilitate and to ensure adherence to relevant strategies established by Government during project implementation. | Unnamed: 2 |", "metadata": {"page": 149, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 10 | The Uganda Multi-Sectoral Food Security and Nutrition Project. 2020/21 Opinion Unqualified | \uf0b7 Out of the planned fourteen (14) strategic targets/goals to be achieved by financial year 2020/2021; ten (10) (71%) had been fully achieved while four (4) (29%) were partially achieved. \uf0b7 There were excess receipts worth UGX.4.154Bn as a result of the project design where the withdrawal of funds from the Donor is made on a six (6) months projection which is 25% of the budgeted UGX.16.610Bn. Further, there was a shortfall of UGX.0.06Bn in GOU co-funding out of the budgeted UGX.0.755Bn which is 8% of the GOU budget. \uf0b7 I noted that out of the total available funds of UGX.20.764Bn, only UGX.11.267Bn was spent by the project resulting in an unspent balance of UGX.9.497Bn representing an absorption level of 54.26%. \uf0b7 I reviewed seven (7) outputs with a total of forty (40) activities and expenditure of UGX.11.267Bn for assessment and noted that all the 40 activities were fully quantified. Further, assessment of the implementation of the seven (7) outputs revealed that; Two (2) outputs with eight (8) activities and expenditure worth UGX.1.771Bn were fully implemented while five (5) outputs with thirty two (32) activities worth UGX.9.496Bn were partially implemented i.e. out of the thirty two (32) activities, the entity fully implemented nineteen (19) activities (59%), ten (10) activities (31%) were partially implemented, while three (3) activities (10%) remained unimplemented. \uf0b7 An assessment from a sample of out-puts that were implemented during the year revealed shortcomings ie funds remitted to 1500 primary schools had not been utilized since they did not procure the required inputs for planting and multiplication (seedlings), the local Micro Nutrients rich crop Planting Materials for 3000 parent group Members and Herbicides & Pesticides. \uf0b7 Field inspections revealed that nutrition supplements such as the Iron and Folic Acid and Zinc expired in April and December 2020 respectively before they could be utilised by the beneficiaries causing loss of Government funds hindering the achievement of the intended objective. |\n|---:|-----:|:---------------------------------------------------------------------------------------------|:-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 12 | Dairy Development Authority. 2020/21 Opinion Unqualified | \uf0b7 DDA\u2019s dairy strategic plan had been prepared, approved and certified by NPA to evidence its alignment to the NDP-III. \uf0b7 The entity budgeted to collect NTR of UGX.3.9Bn but collected UGX.3.9Bn representing a performance of 100% of the target and all the budgeted GOU funds worth UGX.10.02Bn were warranted, without a shortfall. \uf0b7 The entity remained with unspent balance of UGX.2.07Bn representing an absorption level of 79.3%. \uf0b7 DDA directly received off-budget financing to a tune of UGX.0.63Bn from Fleming fund country grant II but it was never declared to the PSST and as such not appropriated to the entity by parliament. \uf0b7 I sampled 4 outputs for review with a total of twenty four (24) activities and expenditure of UGX.3.8Bn and noted that One (01) output with four (04) activities and expenditure worth UGX1.1Bn was insufficiently quantified, that is, one (01) activity (25%) was quantified while three (03) activities (75%) were not clearly quantified to enable assessment of performance. Three (03) outputs with a total of twenty (20) activities and expenditure worth UGX.2.7Bn were not quantified at all. Further, I assessed the implementation of one activity that was quantified and noted that the Rehabilitation of Kyegegwa and Katakwi Milk Collection Centres(MCCs) was partially implemented. \uf0b7 Submission of performance reports for the four quarters was made after the deadline dates and there was no evidence to confirm that the Accounting Officer prepared Monitoring Plans and reports which affect timely tracking and evaluation of performance. \uf0b7 Analysis of the domestic arrears showed new arrears incurred during the year under review to the tune of UGX.0.178Bn. Further, I noted that there was no budget provision for settlement of these arrears in the year under review. \uf0b7 I noted that the entity lost fixed assets through theft which included fifteen (15) desktop computers, two (02) laptop computers, a projector, a router, and cameras but they were not disclosed in the financial statements. \uf0b7 The Authority has failed to collect CESS revenue compensation from MoFPED contrary to the presidential directive requiring the same. \uf0b7 DDA is understaffed by seventy seven (77) posts out of one hundred and forty (140) posts which is 55% understaffing. The unfilled posts include |", "metadata": {"page": 149, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 10 | The Uganda Multi-Sectoral Food Security and Nutrition Project. 2020/21 Opinion Unqualified | \uf0b7 Out of the planned fourteen (14) strategic targets/goals to be achieved by financial year 2020/2021; ten (10) (71%) had been fully achieved while four (4) (29%) were partially achieved. \uf0b7 There were excess receipts worth UGX.4.154Bn as a result of the project design where the withdrawal of funds from the Donor is made on a six (6) months projection which is 25% of the budgeted UGX.16.610Bn. Further, there was a shortfall of UGX.0.06Bn in GOU co-funding out of the budgeted UGX.0.755Bn which is 8% of the GOU budget. \uf0b7 I noted that out of the total available funds of UGX.20.764Bn, only UGX.11.267Bn was spent by the project resulting in an unspent balance of UGX.9.497Bn representing an absorption level of 54.26%. \uf0b7 I reviewed seven (7) outputs with a total of forty (40) activities and expenditure of UGX.11.267Bn for assessment and noted that all the 40 activities were fully quantified. Further, assessment of the implementation of the seven (7) outputs revealed that; Two (2) outputs with eight (8) activities and expenditure worth UGX.1.771Bn were fully implemented while five (5) outputs with thirty two (32) activities worth UGX.9.496Bn were partially implemented i.e. out of the thirty two (32) activities, the entity fully implemented nineteen (19) activities (59%), ten (10) activities (31%) were partially implemented, while three (3) activities (10%) remained unimplemented. \uf0b7 An assessment from a sample of out-puts that were implemented during the year revealed shortcomings ie funds remitted to 1500 primary schools had not been utilized since they did not procure the required inputs for planting and multiplication (seedlings), the local Micro Nutrients rich crop Planting Materials for 3000 parent group Members and Herbicides & Pesticides. \uf0b7 Field inspections revealed that nutrition supplements such as the Iron and Folic Acid and Zinc expired in April and December 2020 respectively before they could be utilised by the beneficiaries causing loss of Government funds hindering the achievement of the intended objective. |\n|---:|:-----------|:-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | key positions like Head of internal audit, Director Finance and Administration, Planner, Regional managers, Principal Dairy Development Officers and Dairy inspectors. Some posts have remained vacant since 2003. | Unnamed: 2 |", "metadata": {"page": 150, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 10 | The Uganda Multi-Sectoral Food Security and Nutrition Project. 2020/21 Opinion Unqualified | \uf0b7 Out of the planned fourteen (14) strategic targets/goals to be achieved by financial year 2020/2021; ten (10) (71%) had been fully achieved while four (4) (29%) were partially achieved. \uf0b7 There were excess receipts worth UGX.4.154Bn as a result of the project design where the withdrawal of funds from the Donor is made on a six (6) months projection which is 25% of the budgeted UGX.16.610Bn. Further, there was a shortfall of UGX.0.06Bn in GOU co-funding out of the budgeted UGX.0.755Bn which is 8% of the GOU budget. \uf0b7 I noted that out of the total available funds of UGX.20.764Bn, only UGX.11.267Bn was spent by the project resulting in an unspent balance of UGX.9.497Bn representing an absorption level of 54.26%. \uf0b7 I reviewed seven (7) outputs with a total of forty (40) activities and expenditure of UGX.11.267Bn for assessment and noted that all the 40 activities were fully quantified. Further, assessment of the implementation of the seven (7) outputs revealed that; Two (2) outputs with eight (8) activities and expenditure worth UGX.1.771Bn were fully implemented while five (5) outputs with thirty two (32) activities worth UGX.9.496Bn were partially implemented i.e. out of the thirty two (32) activities, the entity fully implemented nineteen (19) activities (59%), ten (10) activities (31%) were partially implemented, while three (3) activities (10%) remained unimplemented. \uf0b7 An assessment from a sample of out-puts that were implemented during the year revealed shortcomings ie funds remitted to 1500 primary schools had not been utilized since they did not procure the required inputs for planting and multiplication (seedlings), the local Micro Nutrients rich crop Planting Materials for 3000 parent group Members and Herbicides & Pesticides. \uf0b7 Field inspections revealed that nutrition supplements such as the Iron and Folic Acid and Zinc expired in April and December 2020 respectively before they could be utilised by the beneficiaries causing loss of Government funds hindering the achievement of the intended objective. |\n|---:|-----:|:---------------------------------------------------------------------------------------------|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 13 | National Agricultural Advisory Services (NAADS). 2020/21 Opinion Unqualified | \uf0b7 The entity had prepared the strategic plan; but there was no approval and certification of the same by NPA to evidence alignment to the NDP- III at the time of audit. \uf0b7 Out of the budgeted NTR of UGX.3.587Bn, the Authority collected only UGX.0.12Bn, representing a performance of 3.3% of the target. There was 100% performance in GoU releases amounting to UGX. 243.9Bn. Further, NAADS remained with unspent balance of UGX.0.06Bn representing an absorption level of 99.9%. \uf0b7 I sampled four (04) outputs with a total of twenty five (25) activities and expenditure of 184.4Bn and noted that two (02) outputs with a total of three (03) activities and expenditure worth UGX.43.19Bn were fully quantified while two (02) outputs with a total of twenty two (22) activities and expenditure worth UGX.141.19Bn were insufficiently quantified i.e. out of the twenty two (22) activities, fourteen (14) activities (64%) were quantified while the balance of eight (08) activities (36%) were not clearly quantified. Further, assessment of the implementation of the two (2) outputs that were fully quantified with a total of three (03) activities revealed that none was fully implemented. \uf0b7 Assessment of one partially implemented output revealed that out of 3,010,000 hand hoes, only 2,500,000 hand hoes were procured and distributed to the Northern parts of the country instead of the planned vulnerable rural small holder farming households across the country. \uf0b7 Submission of performance reports for all quarters was made after the deadline dates. Furthermore, I did not obtain evidence to confirm that the Accounting Officer Prepared Monitoring Plans and reports. \uf0b7 NAADS incurred huge LC charges to a tune of UGX.1.053Bn as a result of opened LCs worth UGX.71.25Bn for contracts that failed to deliver within the year. Further, I noted LCs worth UGX.23.13Bn that failed to perform for a period of more than two (2) financial years with one of UGX.2.071Bn for milk coolers outstanding for more than 4 years. \uf0b7 Review of the Kasese industrial park Agri-LED intervention worth UGX.3.9Bn revealed allocation of land to a bus company contrary to the set objectives and delayed payment of NWSC to connect piped water. \uf0b7 Review of the sugarcane production project implementation with investments of UGX.85Bn revealed shortcomings i.e.lack of feasibility assessment, lack of accruing benefits to the beneficiaries, weaknesses in the MoU signed with beneficiaries, limited information on members of the cooperatives, delays in contract completions, pending liquidated damages, and stalled activities. \uf0b7 I noted failure to enter into MOU\u2019s with beneficiaries of milk coolers contrary to the selection criteria of the standing orders of procedure for operation wealth creation. \uf0b7 There was lack of clearly identified beneficiaries from the start in the transportation and distribution of hoes intervention, lack of MOU\u2019s with delegated DLGs on distribution modalities and nugatory storage costs. \uf0b7 Review of the tractor strategic intervention revealed lack of assessment of potential beneficiaries and non-adherence to the terms of the MoU thus risks of beneficiaries without the capacity to manage the tractor for |", "metadata": {"page": 150, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 10 | The Uganda Multi-Sectoral Food Security and Nutrition Project. 2020/21 Opinion Unqualified | \uf0b7 Out of the planned fourteen (14) strategic targets/goals to be achieved by financial year 2020/2021; ten (10) (71%) had been fully achieved while four (4) (29%) were partially achieved. \uf0b7 There were excess receipts worth UGX.4.154Bn as a result of the project design where the withdrawal of funds from the Donor is made on a six (6) months projection which is 25% of the budgeted UGX.16.610Bn. Further, there was a shortfall of UGX.0.06Bn in GOU co-funding out of the budgeted UGX.0.755Bn which is 8% of the GOU budget. \uf0b7 I noted that out of the total available funds of UGX.20.764Bn, only UGX.11.267Bn was spent by the project resulting in an unspent balance of UGX.9.497Bn representing an absorption level of 54.26%. \uf0b7 I reviewed seven (7) outputs with a total of forty (40) activities and expenditure of UGX.11.267Bn for assessment and noted that all the 40 activities were fully quantified. Further, assessment of the implementation of the seven (7) outputs revealed that; Two (2) outputs with eight (8) activities and expenditure worth UGX.1.771Bn were fully implemented while five (5) outputs with thirty two (32) activities worth UGX.9.496Bn were partially implemented i.e. out of the thirty two (32) activities, the entity fully implemented nineteen (19) activities (59%), ten (10) activities (31%) were partially implemented, while three (3) activities (10%) remained unimplemented. \uf0b7 An assessment from a sample of out-puts that were implemented during the year revealed shortcomings ie funds remitted to 1500 primary schools had not been utilized since they did not procure the required inputs for planting and multiplication (seedlings), the local Micro Nutrients rich crop Planting Materials for 3000 parent group Members and Herbicides & Pesticides. \uf0b7 Field inspections revealed that nutrition supplements such as the Iron and Folic Acid and Zinc expired in April and December 2020 respectively before they could be utilised by the beneficiaries causing loss of Government funds hindering the achievement of the intended objective. |\n|---:|:-----------|:------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | farming practice or as an enterprise. \uf0b7 NAADS had a Covid 19 arrears supplementary budget of UGX.17.84Bn all of which was warranted and absorbed. Further, review of utilisation revealed failure to settle long outstanding payables, appropriation in excess of requirement and diversion of Covid 19 relief funds worth UGX.10.032Bn from the settlement of domestic arrears to settlement of current year bills without seeking and obtaining the necessary approvals \uf0b7 A trend analysis of the domestic arrears showed an increase of UGX.7.085Bn (53.6%) from UGX.13.23Bn in the previous year to UGX.20.31Bn that remained unsettled at close of the year with arrears of UGX.0.162Bn relating to previous financial years. \uf0b7 Funds worth UGX.2.15Bn were irregularly diverted from the activities on which they were budgeted and spent on other activities without seeking and obtaining the necessary approvals \uf0b7 I noted long outstanding receivables of UGX.2.38Bn relating to cash balances and accountabilities that remained at the DLG at the time of restructuring thus casting doubt on their recoverability. \uf0b7 Review of the procurement function revealed shortcomings such as delayed supplies and unjustified extensions and non execution of performance security. \uf0b7 I noted that NAADS has an approved staff structure of 56 positions out of which 53 (94.6%) positions are filled. Key among the vacant posts is Manager Finance and Administration and Zonal Agricultural Development Officer. Further, I noted temporary appointments of six (6) staff for the sugarcane field based team for 30 months contrary to the recommended 12 months as stipulated in the regulations. | Unnamed: 2 |", "metadata": {"page": 151, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 10 | The Uganda Multi-Sectoral Food Security and Nutrition Project. 2020/21 Opinion Unqualified | \uf0b7 Out of the planned fourteen (14) strategic targets/goals to be achieved by financial year 2020/2021; ten (10) (71%) had been fully achieved while four (4) (29%) were partially achieved. \uf0b7 There were excess receipts worth UGX.4.154Bn as a result of the project design where the withdrawal of funds from the Donor is made on a six (6) months projection which is 25% of the budgeted UGX.16.610Bn. Further, there was a shortfall of UGX.0.06Bn in GOU co-funding out of the budgeted UGX.0.755Bn which is 8% of the GOU budget. \uf0b7 I noted that out of the total available funds of UGX.20.764Bn, only UGX.11.267Bn was spent by the project resulting in an unspent balance of UGX.9.497Bn representing an absorption level of 54.26%. \uf0b7 I reviewed seven (7) outputs with a total of forty (40) activities and expenditure of UGX.11.267Bn for assessment and noted that all the 40 activities were fully quantified. Further, assessment of the implementation of the seven (7) outputs revealed that; Two (2) outputs with eight (8) activities and expenditure worth UGX.1.771Bn were fully implemented while five (5) outputs with thirty two (32) activities worth UGX.9.496Bn were partially implemented i.e. out of the thirty two (32) activities, the entity fully implemented nineteen (19) activities (59%), ten (10) activities (31%) were partially implemented, while three (3) activities (10%) remained unimplemented. \uf0b7 An assessment from a sample of out-puts that were implemented during the year revealed shortcomings ie funds remitted to 1500 primary schools had not been utilized since they did not procure the required inputs for planting and multiplication (seedlings), the local Micro Nutrients rich crop Planting Materials for 3000 parent group Members and Herbicides & Pesticides. \uf0b7 Field inspections revealed that nutrition supplements such as the Iron and Folic Acid and Zinc expired in April and December 2020 respectively before they could be utilised by the beneficiaries causing loss of Government funds hindering the achievement of the intended objective. |\n|---:|-----:|:---------------------------------------------------------------------------------------------|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 14 | Ministry of Agriculture, Animal, Industry and Fisheries (MAAIF). 2020/21 Opinion Unqualified | \uf0b7 I noted that the Ministry had prepared the Agro-Industrialization (AGI) Programme as a strategic plan for 2020/21-2024/25 that is aligned to the NDP-III and according to the certificate of compliance for the FY 2020/21 annual budget, the overall Agro-industrialization programme budget was scored at 63.5% compliance to the NDP-III. \uf0b7 There was a shortfall in NTR collections amounting to UGX.6.82bn representing 76% and a shortfall in GOU releases amounting to UGX.24.1Bn representing 14%. Further, out of the total warrants of UGX.151.2Bn received, UGX.146.95Bn was spent by the entity resulting in an unspent balance of UGX.4.24Bn representing absorption of 97%. \uf0b7 The Ministry received off-budget financing to a tune of UGX.1.78Bn that was not appropriated as part of the entity budget contrary to the law. \uf0b7 I sampled sixty-five (65) outputs with a total of one hundred and sixty- seven (167) activities and expenditure of UGX.98.2Bn for assessment. I noted that; sixty-one (61) outputs with a total of one hundred and sixty (160) activities and expenditure worth UGX.89.6Bn were fully quantified while four (4) outputs with a total of seven (7) activities and expenditure worth UGX.8.6Bn were not quantified at all to enable assessment of performance. Further, I assessed all the quantified 61 outputs and noted that; 34 outputs with a total of 75 activities worth UGX.39.1Bn were fully implemented and 27 outputs with a total of 85 activities worth UGX.50.5Bn were partially implemented i.e. out of the 85 activities, the Ministry fully implemented 39 activities (46%), partially implemented 44 activities (52%) while 2 activities (2%) remained unimplemented. \uf0b7 I noted failure of timely interventions to combat the foot and mouth disease (FMD) outbreak as a result of challenges faced in the |", "metadata": {"page": 151, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 10 | The Uganda Multi-Sectoral Food Security and Nutrition Project. 2020/21 Opinion Unqualified | \uf0b7 Out of the planned fourteen (14) strategic targets/goals to be achieved by financial year 2020/2021; ten (10) (71%) had been fully achieved while four (4) (29%) were partially achieved. \uf0b7 There were excess receipts worth UGX.4.154Bn as a result of the project design where the withdrawal of funds from the Donor is made on a six (6) months projection which is 25% of the budgeted UGX.16.610Bn. Further, there was a shortfall of UGX.0.06Bn in GOU co-funding out of the budgeted UGX.0.755Bn which is 8% of the GOU budget. \uf0b7 I noted that out of the total available funds of UGX.20.764Bn, only UGX.11.267Bn was spent by the project resulting in an unspent balance of UGX.9.497Bn representing an absorption level of 54.26%. \uf0b7 I reviewed seven (7) outputs with a total of forty (40) activities and expenditure of UGX.11.267Bn for assessment and noted that all the 40 activities were fully quantified. Further, assessment of the implementation of the seven (7) outputs revealed that; Two (2) outputs with eight (8) activities and expenditure worth UGX.1.771Bn were fully implemented while five (5) outputs with thirty two (32) activities worth UGX.9.496Bn were partially implemented i.e. out of the thirty two (32) activities, the entity fully implemented nineteen (19) activities (59%), ten (10) activities (31%) were partially implemented, while three (3) activities (10%) remained unimplemented. \uf0b7 An assessment from a sample of out-puts that were implemented during the year revealed shortcomings ie funds remitted to 1500 primary schools had not been utilized since they did not procure the required inputs for planting and multiplication (seedlings), the local Micro Nutrients rich crop Planting Materials for 3000 parent group Members and Herbicides & Pesticides. \uf0b7 Field inspections revealed that nutrition supplements such as the Iron and Folic Acid and Zinc expired in April and December 2020 respectively before they could be utilised by the beneficiaries causing loss of Government funds hindering the achievement of the intended objective. |\n|---:|:-----------|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | procurement of vaccines despite the availability of funds. The Ministry faced challenges as only 500,000 doses were delivered out of the procured 700,000 doses from the prior year and these came 4 months after expected delivery. Further, none of the procured 2,311,000 doses procured in May 2020 were delivered within the contract period despite the emergency situation and by the time of audit, the contract had not fully performed with 611,000 doses outstanding. \uf0b7 Shortcomings were noted in the management of the Ministry Public Investment Plan (PIP) Projects in regard to compliance with the Development Committee Guidelines 2016 and the budget execution circular 2020/2021. I noted incomplete approvals for Projects, non- adherence of Projects with appraisal Guidelines, ongoing projects after expiry of project duration and irregular and excessive spending on recurrent Items \uf0b7 Domestic arrears decreased by 14% from UGX.12.96Bn in the prior year to UGX.11.13Bn in the year under review. Further, a paltry UGX.2.42Bn budget provision was provided for settlement of domestic arrears in the current year budget. \uf0b7 All documents pertaining to Contingency fund activities and transfers to agricultural institutions during the year worth UGX 11.95Bn were submitted to the IGG for investigations and I was unable to confirm whether the amount involved was applied to the intended purpose. \uf0b7 Management did not undertake monthly wage and pension performance analysis to reconcile the payroll generated through the IPPS with the payment information from the IFMS as required resulting into delays in granting clearance to recruit, inefficient wage and pension payroll management, accumulated arrears and non-absorption of pension and gratuity budget. \uf0b7 Out of 919 approved staffing positions, only 595 had been filled and the rest of the positions (324) were vacant representing 35% staffing gap. Among the vacant were key positions such as directors, commissioners, assistant commissioners and principals in core directorates and noticed management\u2019s failure to undertake timely recruitments despite availability of funds. | Unnamed: 2 |", "metadata": {"page": 152, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 10 | The Uganda Multi-Sectoral Food Security and Nutrition Project. 2020/21 Opinion Unqualified | \uf0b7 Out of the planned fourteen (14) strategic targets/goals to be achieved by financial year 2020/2021; ten (10) (71%) had been fully achieved while four (4) (29%) were partially achieved. \uf0b7 There were excess receipts worth UGX.4.154Bn as a result of the project design where the withdrawal of funds from the Donor is made on a six (6) months projection which is 25% of the budgeted UGX.16.610Bn. Further, there was a shortfall of UGX.0.06Bn in GOU co-funding out of the budgeted UGX.0.755Bn which is 8% of the GOU budget. \uf0b7 I noted that out of the total available funds of UGX.20.764Bn, only UGX.11.267Bn was spent by the project resulting in an unspent balance of UGX.9.497Bn representing an absorption level of 54.26%. \uf0b7 I reviewed seven (7) outputs with a total of forty (40) activities and expenditure of UGX.11.267Bn for assessment and noted that all the 40 activities were fully quantified. Further, assessment of the implementation of the seven (7) outputs revealed that; Two (2) outputs with eight (8) activities and expenditure worth UGX.1.771Bn were fully implemented while five (5) outputs with thirty two (32) activities worth UGX.9.496Bn were partially implemented i.e. out of the thirty two (32) activities, the entity fully implemented nineteen (19) activities (59%), ten (10) activities (31%) were partially implemented, while three (3) activities (10%) remained unimplemented. \uf0b7 An assessment from a sample of out-puts that were implemented during the year revealed shortcomings ie funds remitted to 1500 primary schools had not been utilized since they did not procure the required inputs for planting and multiplication (seedlings), the local Micro Nutrients rich crop Planting Materials for 3000 parent group Members and Herbicides & Pesticides. \uf0b7 Field inspections revealed that nutrition supplements such as the Iron and Folic Acid and Zinc expired in April and December 2020 respectively before they could be utilised by the beneficiaries causing loss of Government funds hindering the achievement of the intended objective. |\n|---:|-----:|:---------------------------------------------------------------------------------------------|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 15 | Uganda Coffee Development Authority (UCDA). 2020/21 Opinion Unqualified | \uf0b7 The entity had prepared the coffee strategy; but there was no approval and certification of the strategic plan by NPA to evidence alignment to the NDP-III at the time of audit. \uf0b7 Out of the budgeted NTR of UGX.27.5Bn, the Authority collected only UGX.20.1Bn, representing a performance of 73% of the target. \uf0b7 There was a shortfall in GoU releases amounting to UGX.5.8Bn representing 3.1% of the budgeted UGX.186.3Bn. Further, the entity remained with unspent balance of UGX.9.391Bn representing an absorption level of 94.8%. \uf0b7 The Authority received off-budget financing worth UGX.443M which was never declared to the PSST and as such no supplementary appropriation was issued as guided by the PSST. \uf0b7 I sampled eight (08) outputs with a total of sixty two (62) activities and expenditure of UGX.150.6Bn and noted that one (01) output with a total of four (04) activities and expenditure worth UGX.2.1Bn was fully quantified; three (03) outputs with a total of fifty four (54) activities and expenditure worth UGX.67.1Bn were insufficiently quantified i.e. out of the fifty four (54) activities, forty nine (49) activities (91%) were quantified while the balance of five (05) activities (9%) were not clearly |", "metadata": {"page": 152, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | procurement leading to higher purchase and maintenance costs. \uf0b7 UCDA undertook new recruitments in the year which have increased staffing levels to only 147 (66%) positions leaving 77 (34%) positions vacant. Among the vacant posts are key positions i.e. Board Secretary/Director of Corporate Services, three (3) Regional managers, Accountants (2), one (1) procurement manager, thirty eight (38) regional coffee extension officers and three (3) Regional Coffee Technical officers among others. \uf0b7 I noted irregular extension of contracts for staff at managerial level without explicit board approval contrary to section 5.3(c) of the UCDA Human Resource manual (2018) and staffs in acting capacities longer than the stipulated time periods in the Human Resource Manual i.e. not more than two terms of six (6) months. | Unnamed: 2 |\n|---:|:-------------|:-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 16.0 | Uganda Seeds Limited. 2019/20 Opinion Qualified | \uf0b7 A receivable of UGX.1,147,910,181 (17% of the total assets) could not be supported as there was no evidence to confirm the accuracy, existence and completeness of the reported balance. \uf0b7 Management of USL did not make adequate disclosures regarding what is included in the capital and revaluation reserves. \uf0b7 UGX.11,205,053 relating to the expenses for the year ended 30th June 2020 was unsupported. \uf0b7 I noted that a disposed of motor vehicle was still maintained in the financial statements and asset register for the period. \uf0b7 Previously issued financial statements have been restated for the correction of material misstatement in the previous period. |\n| 1 | | JUSTICE, LAW AND ORDER SECTOR | |\n| 2 | 1.0 | Directorate of Government Analytical Laboratory (DGAL). 2020/21 Opinion Unqualified | \uf0b7 Out the total receipts for the financial year of UGX.24.684Bn, only UGX.15.630Bn was spent by the entity resulting in an unspent balance of UGX.9.054Bn representing an absorption level of 63.3%. \uf0b7 I noted that of the 39 activities worth UGX.6.23Bn assessed, only 18 activities worth UGX.1.55Bn were fully implemented, 20 activities worth UGX.4.68Bn were partially implemented and one 1 activity worth UGX.8.46Bn was not implemented. \uf0b7 An assessment of service delivery revealed that Mbale and Moroto regional laboratories were supported with UGX.0.132Bn to carry out forensic analysis, however the performance the regional labs was assessed as low as both laboratories did not complete any cases during the year. \uf0b7 Although, DGAL had a strategic goal to eliminate all case back-logs by 30th June 2021, the forensic case backlog had only reduced by 58.3% from 5,559 cases in June 2018 to 2,317 outstanding cases as at 30th June 2021. \uf0b7 Despite receiving UGX.8.625Bn for the construction of a DNA databank during the year, the planned construction did not take place and UGX.8.465Bn was returned to the consolidated fund. \uf0b7 In the financial year 2019/2020, DGAL entered into a contractual agreement for which a letter of credit worth UGX.1.475Bn was created at the request of foreign suppliers. The letter of credit remained outstanding for more than one year implying that the foreign supplier had not fulfilled |", "metadata": {"page": 154, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | procurement leading to higher purchase and maintenance costs. \uf0b7 UCDA undertook new recruitments in the year which have increased staffing levels to only 147 (66%) positions leaving 77 (34%) positions vacant. Among the vacant posts are key positions i.e. Board Secretary/Director of Corporate Services, three (3) Regional managers, Accountants (2), one (1) procurement manager, thirty eight (38) regional coffee extension officers and three (3) Regional Coffee Technical officers among others. \uf0b7 I noted irregular extension of contracts for staff at managerial level without explicit board approval contrary to section 5.3(c) of the UCDA Human Resource manual (2018) and staffs in acting capacities longer than the stipulated time periods in the Human Resource Manual i.e. not more than two terms of six (6) months. | Unnamed: 2 |\n|---:|:-------------|:-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:-------------|\n| 0 | Unnamed: 0 | their contract obligations. \uf0b7 In the financial year 2019/2020, DGAL procured digital forensic tools for use to recover data on mobile phones at an estimated cost of USD.82,000 (equivalent to UGX.290,232,000). In the period since acquisition, the entity has only used the forensic tools and equipment to process and analyse just one (1) case raising the possibility that the equipment is under-utilised. \uf0b7 Nine (9) staff positions for a Commissioner, Government Analysts and drivers in the Directorate were cleared by the Ministry of Public Service for recruitment, and the directorate received funding amounting to UGX.0.032Bn for the purpose. The recruitment process had not been finalised at the year end and the funds were returned to the consolidated fund. \uf0b7 | Unnamed: 2 |", "metadata": {"page": 155, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | procurement leading to higher purchase and maintenance costs. \uf0b7 UCDA undertook new recruitments in the year which have increased staffing levels to only 147 (66%) positions leaving 77 (34%) positions vacant. Among the vacant posts are key positions i.e. Board Secretary/Director of Corporate Services, three (3) Regional managers, Accountants (2), one (1) procurement manager, thirty eight (38) regional coffee extension officers and three (3) Regional Coffee Technical officers among others. \uf0b7 I noted irregular extension of contracts for staff at managerial level without explicit board approval contrary to section 5.3(c) of the UCDA Human Resource manual (2018) and staffs in acting capacities longer than the stipulated time periods in the Human Resource Manual i.e. not more than two terms of six (6) months. | Unnamed: 2 |\n|---:|-------------:|:-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 2 | Justice Law and Order Sector JLOS-SWAP. 2019/20 Opinion Unqualified | \uf0b7 I noted that out of the budgeted revenue of UGX. 121,683,362,209 for the financial year 2019/2020 only UGX. 104,870,934,098 (86%) was released, resulting in a shortfall of UGX. 16,812,428,111 (14%) on the overall. The largest shortfall of UGX. 10,304,157,202 (8.4%) was in respect to the Development Partners funding, \uf0b7 A review of the JLOS SWAP disbursement of funds to implementing entities and the respective actual expenditure revealed that only UGX. 81,391,358,207 was spent out of the availed UGX.104,870,934,098, resulting in an unspent balance of UGX.31,080,004,792. The unspent balance excludes the JLOS House Project balance of UGX. 18,592,439,794, which commenced in the subsequent financial year 2020/21. \uf0b7 I reviewed all the 43 activities under the JLOS Secretariat with a budget of UGX.23.561Bn, out of which UGX.18.027Bn was released, resulting in a shortfall of UGX.5.534Bn, which is 23.5% of the budget \uf0b7 I further noted from the analysis of the annual performance report that some critical activities for which funds had been released had not been implemented. \uf0b7 Out of the 43 activities with a total budget of UGX.23.561Bn, I reviewed the extent of quantification of outputs and activities and noted that a total of three (3) activities and releases worth UGX.4.076Bn were not quantified at all to enable assessment of performance. A total of forty (40) activities and releases worth UGX.13.951Bn were fully quantified. That is, all the forty (40) activities (100%) were clearly quantified to enable assessment of performance. \uf0b7 I assessed the implementation of all the Forty (40) JLOS SWAP activities worth UGX.13.951Bn that were fully quantified and noted that Fourteen (14) activities worth UGX.12.507Bn were fully implemented. The entity implemented all the Fourteen (14) activities (100%) within the JLOS SWAP consolidated strategic outputs. Four (4) activities worth UGX.0.665Bn were partially implemented. All the Four (4) activities within the JLOS SWAP consolidated strategic outputs were not achieved 100%. Twenty-two (22) activities worth UGX0.779Bn were not implemented at all. \uf0b7 I observed that UGX.656,905,350 advanced to various beneficiaries by four implementing agencies to execute sector activities during the COVID- 19 lockdown period, i.e. between November 2019 and June 2020, lacked the necessary supporting documents such as payment vouchers, activity reports and receipts at the time of audit (November 2020) and were |", "metadata": {"page": 155, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | procurement leading to higher purchase and maintenance costs. \uf0b7 UCDA undertook new recruitments in the year which have increased staffing levels to only 147 (66%) positions leaving 77 (34%) positions vacant. Among the vacant posts are key positions i.e. Board Secretary/Director of Corporate Services, three (3) Regional managers, Accountants (2), one (1) procurement manager, thirty eight (38) regional coffee extension officers and three (3) Regional Coffee Technical officers among others. \uf0b7 I noted irregular extension of contracts for staff at managerial level without explicit board approval contrary to section 5.3(c) of the UCDA Human Resource manual (2018) and staffs in acting capacities longer than the stipulated time periods in the Human Resource Manual i.e. not more than two terms of six (6) months. | Unnamed: 2 |\n|---:|:-------------|:-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | submitted during the month of January 2021, implying that the funds had not been accounted for by 30th June 2020. \uf0b7 I noted from the review of financial statements that management did not disclose the outstanding balances as at 30th June 2019. Consequently, no provision was made to cater for domestic arrears in the financial year 2019/2020 budget. But I noted that UGX.9,145,799 was spent to settle outstanding bills in respect of conference facilities for JLOS and the supply and delivery of law reference books | Unnamed: 2 |\n| 1 | 3 | Office of the Director of Public Prosecutions. 2020/21 Opinion Unqualified | \uf0b7 During the years under review, 666,620 cases were brought forward from the previous years, and 99,232 cases were registered during the year, giving a cumulative sum of 765,492 cases recorded. Of these cumulative cases, only 40,466 (5%) were cleared during the year. \uf0b7 Over the five years only 253,596 cases representing (33%) have been concluded through conviction, acquittal, withdrawal, dismissal and closed files. \uf0b7 ODPP continues to incur substantial annual maintenance costs of UGX.2,808,000,000 in spite of the low coverage of the system (only 41 stations out of the planned 138) and some system components like the complaint handling and processing component are not fully operational. \uf0b7 ODPP had an approved organization structure that requires 1,336 staff however, only had 519 staff had been filled. The structure requires 833 prosecutors but is operating with only 366 (40%), and as a result, there are more magistrates than prosecutors. \uf0b7 No budgetary provision was made for the settlement of domestic arrears, which stood at UGX.1,611,006,686 as at the beginning of the financial year 2020/2021. As at the close of 2020/2021, the Office reported domestic arrears to the tune of UGX.1,228,911,994. |", "metadata": {"page": 156, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | procurement leading to higher purchase and maintenance costs. \uf0b7 UCDA undertook new recruitments in the year which have increased staffing levels to only 147 (66%) positions leaving 77 (34%) positions vacant. Among the vacant posts are key positions i.e. Board Secretary/Director of Corporate Services, three (3) Regional managers, Accountants (2), one (1) procurement manager, thirty eight (38) regional coffee extension officers and three (3) Regional Coffee Technical officers among others. \uf0b7 I noted irregular extension of contracts for staff at managerial level without explicit board approval contrary to section 5.3(c) of the UCDA Human Resource manual (2018) and staffs in acting capacities longer than the stipulated time periods in the Human Resource Manual i.e. not more than two terms of six (6) months. | Unnamed: 2 |\n|---:|-------------:|:-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 4 | Uganda Human Rights Commission 2020/21 Opinion Unqualified | \uf0b7 I noted that the Commission did not have an approved strategic plan that was aligned to NDP III by the time of audit. The draft plan prepared by the entity had not been certified by NPA. \uf0b7 The Commission collected over 100% of its NTR target for the year over and above the target. The Commission absorbed only 86.8% of the funds that were released by government. \uf0b7 The Commission received off-budget financing directly from development partners to a tune of UGX.2.187Bn, which was not declared to Treasury and, therefore, not appropriated to the entity by Parliament. \uf0b7 Management did not quantify 2 outputs with 6 activities and expenditure worth UGX 0.12Bn. \uf0b7 Out of (11) outputs that were fully quantified with 22 activities, 3 activities worth UGX.0.44Bn were fully implemented, 18 activities worth UGX.15.54Bn were partially implemented. 1 output with 1 activity worth UGX.0.17Bn was not implemented at all. \uf0b7 \uf0b7 The Commission neither prepared annual budget monitoring plans nor submitted quarterly budget monitoring reports. The Commission also failed to submit all its quarterly budget performance reports in time. \uf0b7 The UHRC had tribunal case backlog of 1,756 cases at the beginning of the financial year 2020/2021, and 71 additional cases were registered during the year, resulting in a total of 1,827 outstanding cases. Out of the 1,827 cases, only 326 (17.8%) were investigated and disposed of. The |", "metadata": {"page": 156, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | procurement leading to higher purchase and maintenance costs. \uf0b7 UCDA undertook new recruitments in the year which have increased staffing levels to only 147 (66%) positions leaving 77 (34%) positions vacant. Among the vacant posts are key positions i.e. Board Secretary/Director of Corporate Services, three (3) Regional managers, Accountants (2), one (1) procurement manager, thirty eight (38) regional coffee extension officers and three (3) Regional Coffee Technical officers among others. \uf0b7 I noted irregular extension of contracts for staff at managerial level without explicit board approval contrary to section 5.3(c) of the UCDA Human Resource manual (2018) and staffs in acting capacities longer than the stipulated time periods in the Human Resource Manual i.e. not more than two terms of six (6) months. | Unnamed: 2 |\n|---:|:-------------|:-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | un-cleared complaints at the tribunal level stood at 1,501 at the year-end, translating into underperformance of 82.2%. \uf0b7 Timeline errors continue to occur due to the limited interface between IPPS and IFMS in payroll processing. A review of the payroll register and IFMS payment file revealed that UGX.5.706 Bn was paid as per payroll register; while IFMS indicates that UGX.6.124Bn was paid, resulting in an overpayment of UGX. 0.417Bn. | Unnamed: 2 |\n| 1 | 5 | Uganda Law Reform Commission. 2020/21 Opinion Unqualified | \uf0b7 I noted that the Commission did not have an approved strategic plan that was aligned to NDP III by the time of audit. The draft plan prepared by the entity had not been certified by NPA. \uf0b7 The Commission collected only 100% of its NTR target for the year which was commendable. The Commission also absorbed only 92.4% of the funds that were released thus affecting implementation of planned activities. \uf0b7 Out of the 8 outputs assessed with 37 activities and expenditure of UGX.7.74Bn, 6 outputs with worth UGX.4.53Bn were fully quantified. \uf0b7 I assessed the implementation of 6 outputs with 24 activities that were fully quantified and noted that 1 output with 3 activities and expenditure worth UGX 3.43Bn was fully implemented while 5 outputs with 21 activities worth UGX.1.1Bn were partially implemented. Out of the 21 activities, the entity fully implemented 9 activities, 4 activities were partially implemented, while 8 activities remained unimplemented. \uf0b7 The Commission neither prepared annual budget monitoring plans nor submitted quarterly budget monitoring reports. The Commission also failed to submit all its quarterly budget performance reports in time. \uf0b7 ULRC did not have any domestic arrears brought forward from the previous year; however, the entity recorded payables worth UGX.124,626,384 under court awards and compensations in the year under audit. |", "metadata": {"page": 157, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | procurement leading to higher purchase and maintenance costs. \uf0b7 UCDA undertook new recruitments in the year which have increased staffing levels to only 147 (66%) positions leaving 77 (34%) positions vacant. Among the vacant posts are key positions i.e. Board Secretary/Director of Corporate Services, three (3) Regional managers, Accountants (2), one (1) procurement manager, thirty eight (38) regional coffee extension officers and three (3) Regional Coffee Technical officers among others. \uf0b7 I noted irregular extension of contracts for staff at managerial level without explicit board approval contrary to section 5.3(c) of the UCDA Human Resource manual (2018) and staffs in acting capacities longer than the stipulated time periods in the Human Resource Manual i.e. not more than two terms of six (6) months. | Unnamed: 2 |\n|---:|-------------:|:-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 6 | Judicial Service Commission 2020/21 Opinion Unqualified | \uf0b7 I noted that the Commission submitted a draft strategic plan to NPA for approval. \uf0b7 The Commission budgeted for NTR of UGX.4.5bn for the financial year 2020/21, however only UGX. 788,000 was collected representing performance of 0.02% of the target. The Commission absorbed 95.7% of the funds that were released. \uf0b7 Out of the fifteen (15) outputs sampled, ten (10) were fully quantified, while one (1) was insufficiently quantified and two (2) were not quantified at all. \uf0b7 Out of the ten (10) outputs assessed, five (5) were fully implemented while five (5) were partially implemented. \uf0b7 The Commission neither prepared annual budget monitoring plans nor submitted quarterly budget monitoring reports. The Commission also failed to submit all its quarterly budget performance reports in time. \uf0b7 Out of the approved 143 staff positions, ninety-seven (97) positions were filled while forty-seven (47) positions were vacant. \uf0b7 The commission did not remit to URA PAYE of UGX.138,219,093. |\n| 1 | 7 | Ministry of Justice and Constitutional Affairs. 2020/21 | \uf0b7 At the time of audit, the entity strategic plan had not yet been submitted to NPA; management was awaiting the completion of revising |", "metadata": {"page": 157, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Opinion Unqualified | the Governance and Security Programme. \uf0b7 The entity budgeted to collect NTR of UGX.0.112Bn but collected UGX.0.233Bn representing a performance of 208% of the target. \uf0b7 There was a shortfall in GoU releases amounting to UGX.34.461Bn, representing 22%. \uf0b7 Thirteen (13) outputs with a total of twenty-nine (28) activities were quantified, while eighteen (18) outputs with a total of thirty-nine (39) activities were insufficiently quantified. Further, of the thirteen (13) quantified outputs/activities assessed, two (2) outputs with two (2) activities were fully implemented; eleven (11) outputs with 27 activities were partially implemented. \uf0b7 Submission of performance reports for all the quarters was made after the deadline dates. \uf0b7 MoJCA received COVID 19 arrears supplementary funding of UGX.18.2Bn, all of which was warranted and spent, representing 100% of the budget absorption. \uf0b7 Domestic arrears decreased from UGX.399.88Bn, in the previous year to UGX.381.26Bn as at 30th June 2021, representing a reduction in arrears by 4.6%. The arrears remained unsettled at the close of the year. \uf0b7 The unpaid Court Awards and Compensation stood at UGX. 377.43Bn as of 30th June 2021, which has accumulated over the last ten years. \uf0b7 I noted that the MOJCA had not put in place a documented criterion for prioritizing the settlement of Court awards. \uf0b7 I noted a rising trend of Government liabilities due to the following (Under budgeting for court awards and compensation across Government, Accumulation of interest, Non-disclosure of contingent liabilities by other MDAs and New developments in the law) |\n|---:|-------------:|:------------------------------------------------------------------------------------|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 8 | The Directorate of Citizenship and Immigration Control. 2020/21 Opinion Unqualified | \uf0b7 The DCIC prepared a strategic plan for 2020-2025 that was approved by the National Planning Authority on 22nd November 2021. However, following the issuance of a Certificate of Approval, management had not approved the plan for implementation. \uf0b7 \uf0b7 Out of the total receipts for the financial year of UGX.104.9Bn, only UGX.103.9Bn was spent by the entity resulting in an unspent balance of UGX.1.0Bn representing an absorption level of 99%. \uf0b7 I sampled seventeen (17) outputs with a total of one hundred seventeen (117) activities and expenditure of UGX.101.8Bn for assessment and noted that eleven (11) outputs with expenditure worth UGX.26.95Bn were fully quantified. Five (5) outputs with worth UGX.74.09Bn were insufficiently quantified, and One (1) output with expenditure worth UGX.0.13Bn was not quantified at all \uf0b7 I noted that a sum of UGX.1.02Bn was released to DCIC to settle Domestic Arrears to a supplier under Covid-19 related funding. \uf0b7 An assessment of service delivery revealed that DCIC takes an average of 7.7 days to process a passport and a further 7.3 days from the date of printing to issue the passport to the citizens. I further observed that although the Directorate has several regional offices for processing of passports, 97% of the applications for passports and 92% of the issuances are done at the Central Office in Kampala. \uf0b7 A trend analysis of the Directorate domestic arrears over the past three |", "metadata": {"page": 158, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Opinion Unqualified | the Governance and Security Programme. \uf0b7 The entity budgeted to collect NTR of UGX.0.112Bn but collected UGX.0.233Bn representing a performance of 208% of the target. \uf0b7 There was a shortfall in GoU releases amounting to UGX.34.461Bn, representing 22%. \uf0b7 Thirteen (13) outputs with a total of twenty-nine (28) activities were quantified, while eighteen (18) outputs with a total of thirty-nine (39) activities were insufficiently quantified. Further, of the thirteen (13) quantified outputs/activities assessed, two (2) outputs with two (2) activities were fully implemented; eleven (11) outputs with 27 activities were partially implemented. \uf0b7 Submission of performance reports for all the quarters was made after the deadline dates. \uf0b7 MoJCA received COVID 19 arrears supplementary funding of UGX.18.2Bn, all of which was warranted and spent, representing 100% of the budget absorption. \uf0b7 Domestic arrears decreased from UGX.399.88Bn, in the previous year to UGX.381.26Bn as at 30th June 2021, representing a reduction in arrears by 4.6%. The arrears remained unsettled at the close of the year. \uf0b7 The unpaid Court Awards and Compensation stood at UGX. 377.43Bn as of 30th June 2021, which has accumulated over the last ten years. \uf0b7 I noted that the MOJCA had not put in place a documented criterion for prioritizing the settlement of Court awards. \uf0b7 I noted a rising trend of Government liabilities due to the following (Under budgeting for court awards and compensation across Government, Accumulation of interest, Non-disclosure of contingent liabilities by other MDAs and New developments in the law) |\n|---:|:-------------|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | years showed a decreasing trend from UGX.4.19Bn in 2018/2019 to UGX.0.32Bn in 2020/2021. \uf0b7 A review of the approved budget estimates for the year revealed that only UGX.1,015,473,085 (11.4%) was budgeted and released to settle domestic arrears amounting to UGX.8,898,668,915, implying insufficient budgeting for domestic arrears. \uf0b7 The Directorate procured an e-visa and permit management system during the financial year. I observed a number of contract conditions, including final user acceptance testing, completion of the setup of the system workflow, training of end-users, and integration of the system to other government systems in NIRA, CAA, URSB, and URA had not yet to be achieved. \uf0b7 The Directorate procured a consultant for the configuration, installation and maintenance of an Integrated System for archived records and the maintenance of the electronic data management system. I observed delays in contract execution and that the entity did not have a Service Level Agreement to guide the support and maintenance of the system. | Unnamed: 2 |", "metadata": {"page": 159, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Opinion Unqualified | the Governance and Security Programme. \uf0b7 The entity budgeted to collect NTR of UGX.0.112Bn but collected UGX.0.233Bn representing a performance of 208% of the target. \uf0b7 There was a shortfall in GoU releases amounting to UGX.34.461Bn, representing 22%. \uf0b7 Thirteen (13) outputs with a total of twenty-nine (28) activities were quantified, while eighteen (18) outputs with a total of thirty-nine (39) activities were insufficiently quantified. Further, of the thirteen (13) quantified outputs/activities assessed, two (2) outputs with two (2) activities were fully implemented; eleven (11) outputs with 27 activities were partially implemented. \uf0b7 Submission of performance reports for all the quarters was made after the deadline dates. \uf0b7 MoJCA received COVID 19 arrears supplementary funding of UGX.18.2Bn, all of which was warranted and spent, representing 100% of the budget absorption. \uf0b7 Domestic arrears decreased from UGX.399.88Bn, in the previous year to UGX.381.26Bn as at 30th June 2021, representing a reduction in arrears by 4.6%. The arrears remained unsettled at the close of the year. \uf0b7 The unpaid Court Awards and Compensation stood at UGX. 377.43Bn as of 30th June 2021, which has accumulated over the last ten years. \uf0b7 I noted that the MOJCA had not put in place a documented criterion for prioritizing the settlement of Court awards. \uf0b7 I noted a rising trend of Government liabilities due to the following (Under budgeting for court awards and compensation across Government, Accumulation of interest, Non-disclosure of contingent liabilities by other MDAs and New developments in the law) |\n|---:|-------------:|:---------------------------------------------------------------------|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 9 | The Court of Judicature (The Judiciary). 2020/21 Opinion Unqualified | \uf0b7 The Judiciary prepared a strategic plan and had it approved by NPA at the time of audit. \uf0b7 The entity budgeted to collect NTR of UGX. UGX.11.043Bn but collected UGX.5.698Bn representing a performance of 52% of the target. \uf0b7 There was a shortfall in GoU releases amounting to UGX.6.02Bn, representing a 3% shortfall. \uf0b7 Thirteen (13) outputs with a total of sixty-seven (67) activities were quantified, while seven (7) outputs with a total of twenty-seven (27) activities were insufficiently quantified, and six (6) outputs with a total of forty-five (45) activities were not quantified at all. Further, of the thirteen (13) quantified outputs/activities assessed, five (5) outputs with fourteen (14) activities were fully implemented; eight (8) outputs with fifty-three activities were partially implemented. \uf0b7 Submission of all performance reports for all the quarters was made after the deadline dates. \uf0b7 I noted the accumulation of case backlog due to delayed operationalisation of gazetted courts and a limited number of judicial officer\u2019s compared to the workload. \uf0b7 Judiciary had a COVID 19 arrears supplementary budget of UGX.8.66Bn, all of which was warranted and spent representing 100% of the budget absorption. \uf0b7 I noted an increase in receivables from UGX 661,164,656(2019/2020) to UGX 3,268,317,882 (2020/2021). This was partly due to UGX. 1,652,842,084 that was advanced to courts to undertake election petitions and remained unaccounted for at the end of the financial year under audit. Furthermore, the other receivables of UGX.320,947,170 carried forward from previous years remained outstanding with no recoveries made. \uf0b7 I noted that management accrued new domestic arrears totalling UGX. 4,171,245,048 during the financial year 2020/2021 compared to UGX. 2,641,109,446 new arrears accrued in 2019/2020, registering an increment of new arrears of UGX. 1,530,135,602 thus representing a 58% growth rate. \uf0b7 Judiciary did not budget for domestic arrears amounting to UGX.3.543Bn, |", "metadata": {"page": 159, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Opinion Unqualified | the Governance and Security Programme. \uf0b7 The entity budgeted to collect NTR of UGX.0.112Bn but collected UGX.0.233Bn representing a performance of 208% of the target. \uf0b7 There was a shortfall in GoU releases amounting to UGX.34.461Bn, representing 22%. \uf0b7 Thirteen (13) outputs with a total of twenty-nine (28) activities were quantified, while eighteen (18) outputs with a total of thirty-nine (39) activities were insufficiently quantified. Further, of the thirteen (13) quantified outputs/activities assessed, two (2) outputs with two (2) activities were fully implemented; eleven (11) outputs with 27 activities were partially implemented. \uf0b7 Submission of performance reports for all the quarters was made after the deadline dates. \uf0b7 MoJCA received COVID 19 arrears supplementary funding of UGX.18.2Bn, all of which was warranted and spent, representing 100% of the budget absorption. \uf0b7 Domestic arrears decreased from UGX.399.88Bn, in the previous year to UGX.381.26Bn as at 30th June 2021, representing a reduction in arrears by 4.6%. The arrears remained unsettled at the close of the year. \uf0b7 The unpaid Court Awards and Compensation stood at UGX. 377.43Bn as of 30th June 2021, which has accumulated over the last ten years. \uf0b7 I noted that the MOJCA had not put in place a documented criterion for prioritizing the settlement of Court awards. \uf0b7 I noted a rising trend of Government liabilities due to the following (Under budgeting for court awards and compensation across Government, Accumulation of interest, Non-disclosure of contingent liabilities by other MDAs and New developments in the law) |\n|---:|:-------------|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | which remained outstanding in the FY 2019/20. \uf0b7 I noted inconsistencies in statistics reported on both pending and cases handled by the Judiciary during the period. \uf0b7 I noted delays in the implementation of The Electronic Court Case Management Information System (ECCMIS); an overall average delay of 3 months since the Go-live had been scheduled on 7th June 2021. But, as of 11th October 2021, this has not yet been done. Data migration of the Phase 1 stations from CCAS into the new integrated ECCMIS has not been performed; the project was still at the design and development stage at the time of audit; the Change management training is still ongoing as of 6th October 2021, yet the training had been scheduled for 23rd October 2020, some planned activities were not implemented, like the migration of data for phase 1 entities from the court case administration system (CCAS) to ECCMIS. | Unnamed: 2 |", "metadata": {"page": 160, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Opinion Unqualified | the Governance and Security Programme. \uf0b7 The entity budgeted to collect NTR of UGX.0.112Bn but collected UGX.0.233Bn representing a performance of 208% of the target. \uf0b7 There was a shortfall in GoU releases amounting to UGX.34.461Bn, representing 22%. \uf0b7 Thirteen (13) outputs with a total of twenty-nine (28) activities were quantified, while eighteen (18) outputs with a total of thirty-nine (39) activities were insufficiently quantified. Further, of the thirteen (13) quantified outputs/activities assessed, two (2) outputs with two (2) activities were fully implemented; eleven (11) outputs with 27 activities were partially implemented. \uf0b7 Submission of performance reports for all the quarters was made after the deadline dates. \uf0b7 MoJCA received COVID 19 arrears supplementary funding of UGX.18.2Bn, all of which was warranted and spent, representing 100% of the budget absorption. \uf0b7 Domestic arrears decreased from UGX.399.88Bn, in the previous year to UGX.381.26Bn as at 30th June 2021, representing a reduction in arrears by 4.6%. The arrears remained unsettled at the close of the year. \uf0b7 The unpaid Court Awards and Compensation stood at UGX. 377.43Bn as of 30th June 2021, which has accumulated over the last ten years. \uf0b7 I noted that the MOJCA had not put in place a documented criterion for prioritizing the settlement of Court awards. \uf0b7 I noted a rising trend of Government liabilities due to the following (Under budgeting for court awards and compensation across Government, Accumulation of interest, Non-disclosure of contingent liabilities by other MDAs and New developments in the law) |\n|---:|-------------:|:--------------------------------------------------------|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 10 | The Uganda Prisons Service. 2020/21 Opinion Unqualified | \uf0b7 The UPS prepared a strategic plan for the period 2020-2025 and was approved by the National Planning Authority on the 23rd of July 2021. \uf0b7 Out of the total receipts for the financial year of UGX.310.8Bn, only UGX.306.5Bn was spent by the entity resulting in an unspent balance of UGX.4.4Bn representing an absorption level of 98.6%. \uf0b7 I sampled fourteen (14) outputs with a total of eighty seven (87) activities and expenditure of UGX.316.2Bn for assessment and noted that ten (10) outputs with a total of fifty-seven (57) activities and expenditure worth UGX.293.82Bn were fully quantified and four (4) outputs with a total of thirty (30) activities and expenditure worth UGX 22.36Bn were insufficiently quantified \uf0b7 I noted that of the 57 quantified activities worth UGX293.82Bn assessed; 35 activities representing 61% were fully implemented, 20 activities representing 35% were partially implemented, while 2 activities representing 4% were not implemented. \uf0b7 I noted that a sum of UGX. 40,6Bn was released to UPS for the settlement of Domestic Arrears to suppliers under Covid-19 related funding with all funds spent for settlement of arrears. \uf0b7 A trend analysis of the Service\u2019s domestic arrears over the past three years showed a decreasing trend from UGX.65.97Bn in 2018/2019 to UGX.62.345Bn in 2020/2021. \uf0b7 I noted that UPS was only allocated UGX.40.6Bn (67.4%) for settlement of domestic arrears worth UGX.60.2Bn and paid for arrears worth UGX.54.8Bn with the additional funds worth UGX.14.2Bn diverted from planned activities to pay for the arrears \uf0b7 An assessment of service delivery revealed cases of overcrowding in prison cells with the congestion levels increasing from 291.5% in 2017/18 to 321.1% in 2020/2021. This compromises the welfare of the inmates and may result in a number of health risks such as the quick spread of diseases and compromising on sanitation. The existing congestion has proved a challenge for the prisons\u2019 service when implementing Standard Operating Procedures (SOPs) to reduce the spread of COVID-19. It has also posed a challenge in separating different categories of offenders to break the cyclic chain of crime and violence. \uf0b7 I noted that a total of 33 (12.7%) prisons stations are still using the bucket system of sanitation which may turn cells into a breeding centre for diseases, resulting in the violation of the prisoners\u2019 rights \uf0b7 I noted cases of over stay of prisoners on remand with the prisoners\u2019 |", "metadata": {"page": 160, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Opinion Unqualified | the Governance and Security Programme. \uf0b7 The entity budgeted to collect NTR of UGX.0.112Bn but collected UGX.0.233Bn representing a performance of 208% of the target. \uf0b7 There was a shortfall in GoU releases amounting to UGX.34.461Bn, representing 22%. \uf0b7 Thirteen (13) outputs with a total of twenty-nine (28) activities were quantified, while eighteen (18) outputs with a total of thirty-nine (39) activities were insufficiently quantified. Further, of the thirteen (13) quantified outputs/activities assessed, two (2) outputs with two (2) activities were fully implemented; eleven (11) outputs with 27 activities were partially implemented. \uf0b7 Submission of performance reports for all the quarters was made after the deadline dates. \uf0b7 MoJCA received COVID 19 arrears supplementary funding of UGX.18.2Bn, all of which was warranted and spent, representing 100% of the budget absorption. \uf0b7 Domestic arrears decreased from UGX.399.88Bn, in the previous year to UGX.381.26Bn as at 30th June 2021, representing a reduction in arrears by 4.6%. The arrears remained unsettled at the close of the year. \uf0b7 The unpaid Court Awards and Compensation stood at UGX. 377.43Bn as of 30th June 2021, which has accumulated over the last ten years. \uf0b7 I noted that the MOJCA had not put in place a documented criterion for prioritizing the settlement of Court awards. \uf0b7 I noted a rising trend of Government liabilities due to the following (Under budgeting for court awards and compensation across Government, Accumulation of interest, Non-disclosure of contingent liabilities by other MDAs and New developments in the law) |\n|---:|:-------------|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | length of stay on remand increasing from 10.5 to 18.8 months for capital offenders and from 2.6 months to 3.8 months for petty offenders from 2016/17 to 2020/2021 respectively. For example out of the 32,409 prisoners on remand, a total of 13,933 prisoners had overstayed on remand \uf0b7 I observed challenges of staff accommodation which currently stands at a deficit of 7,217 (65.1%) housing units with staff staying in temporary houses/shelters/not accommodated \uf0b7 The Service also faced challenges of under staffing where out of an approved organisation structure comprising of 49,470 staff, only 12,860 (26%) posts were filled, leaving a balance of 36,610 (74%) posts vacant. This leads to high staff prisoner ratio and causes fatigue among the few staff \uf0b7 I noted that sixty-seven (67) of the prison stations did not have buses to enable safe and secure transportation of prisoners to court which resulted into delayed delivery of prisoners to courts, transportation of high-risk inmates on open trucks, and prisoners and staff walking long distances to attend court. \uf0b7 I noted delays in completion of the Prisoners Management Information System (PMIS) which has delayed the enjoyment of anticipated benefits from the system. \uf0b7 I observed challenges in land management including encroachments, land disputes and encumbrances. Out of 158 pieces of land of different sizes in the different parts of the country, only 52 pieces were surveyed and titled, 17 pieces were surveyed but still not yet titled, while 89 pieces were not yet surveyed. Furthermore, the UPS did not have land surveying equipment | Unnamed: 2 |", "metadata": {"page": 161, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Opinion Unqualified | the Governance and Security Programme. \uf0b7 The entity budgeted to collect NTR of UGX.0.112Bn but collected UGX.0.233Bn representing a performance of 208% of the target. \uf0b7 There was a shortfall in GoU releases amounting to UGX.34.461Bn, representing 22%. \uf0b7 Thirteen (13) outputs with a total of twenty-nine (28) activities were quantified, while eighteen (18) outputs with a total of thirty-nine (39) activities were insufficiently quantified. Further, of the thirteen (13) quantified outputs/activities assessed, two (2) outputs with two (2) activities were fully implemented; eleven (11) outputs with 27 activities were partially implemented. \uf0b7 Submission of performance reports for all the quarters was made after the deadline dates. \uf0b7 MoJCA received COVID 19 arrears supplementary funding of UGX.18.2Bn, all of which was warranted and spent, representing 100% of the budget absorption. \uf0b7 Domestic arrears decreased from UGX.399.88Bn, in the previous year to UGX.381.26Bn as at 30th June 2021, representing a reduction in arrears by 4.6%. The arrears remained unsettled at the close of the year. \uf0b7 The unpaid Court Awards and Compensation stood at UGX. 377.43Bn as of 30th June 2021, which has accumulated over the last ten years. \uf0b7 I noted that the MOJCA had not put in place a documented criterion for prioritizing the settlement of Court awards. \uf0b7 I noted a rising trend of Government liabilities due to the following (Under budgeting for court awards and compensation across Government, Accumulation of interest, Non-disclosure of contingent liabilities by other MDAs and New developments in the law) |\n|---:|-------------:|:--------------------------------------------------------|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 11 | The Law Development Centre. 2020/21 Opinion Unqualified | \uf0b7 LDC had prepared the Strategic Plan aligned to NDP III and approved by NPA. \uf0b7 The entity budgeted to collect NTR of UGX 13.503Bn during the year under review. Only 12.205Bn was collected, representing a performance of 90% of the target. \uf0b7 LDC budgeted to receive UGX.28.16Bn out of which UGX.24.84Bn was availed, resulting in a shortfall of UGX.3.32Bn, which is 88.2% performance of the budget. \uf0b7 Out of the total warrants of UGX., 24.84Bn received during the financial year, UGX. 24.53Bn was spent by the entity resulting in an unspent balance of UGX.0.31Bn, representing an absorption level of 99%. \uf0b7 From a sample of ten (10) outputs with a total of twenty-five (25) activities and expenditure of UGX.24.53Bn, Four (4) outputs with a total of fifteen (15) activities and expenditure worth UGX.20.5Bn were fully quantified. One (1) output with a total of five (5) activities and expenditure worth UGX.0.6Bn, was insufficiently quantified, and Five (5) outputs with a total of five (5) activities and expenditure worth UGX 3.4Bn were not quantified at all. \uf0b7 I assessed the implementation of four (4) outputs that were fully quantified with a total of fifteen (15) activities worth UGX 20.5Bn and noted that all the five (5) activities within this output were fully implemented. Two (2) outputs with ten (10) activities worth UGX.19.2Bn were partially implemented, the entity fully implemented six (6) activities, three (3) activities were partially implemented, while one (1) activity remained unimplemented. |", "metadata": {"page": 161, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Opinion Unqualified | the Governance and Security Programme. \uf0b7 The entity budgeted to collect NTR of UGX.0.112Bn but collected UGX.0.233Bn representing a performance of 208% of the target. \uf0b7 There was a shortfall in GoU releases amounting to UGX.34.461Bn, representing 22%. \uf0b7 Thirteen (13) outputs with a total of twenty-nine (28) activities were quantified, while eighteen (18) outputs with a total of thirty-nine (39) activities were insufficiently quantified. Further, of the thirteen (13) quantified outputs/activities assessed, two (2) outputs with two (2) activities were fully implemented; eleven (11) outputs with 27 activities were partially implemented. \uf0b7 Submission of performance reports for all the quarters was made after the deadline dates. \uf0b7 MoJCA received COVID 19 arrears supplementary funding of UGX.18.2Bn, all of which was warranted and spent, representing 100% of the budget absorption. \uf0b7 Domestic arrears decreased from UGX.399.88Bn, in the previous year to UGX.381.26Bn as at 30th June 2021, representing a reduction in arrears by 4.6%. The arrears remained unsettled at the close of the year. \uf0b7 The unpaid Court Awards and Compensation stood at UGX. 377.43Bn as of 30th June 2021, which has accumulated over the last ten years. \uf0b7 I noted that the MOJCA had not put in place a documented criterion for prioritizing the settlement of Court awards. \uf0b7 I noted a rising trend of Government liabilities due to the following (Under budgeting for court awards and compensation across Government, Accumulation of interest, Non-disclosure of contingent liabilities by other MDAs and New developments in the law) |\n|---:|:-------------|:-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | \uf0b7 The entity submitted all performance reports after the deadline. \uf0b7 LDC had outstanding commitments brought forward totaling UGX. 2,697,202,827 as at 30th June 2020. During the year under review, UGX. 1,490,351,141 was paid, and UGX. 786,304,467 was accumulated, leaving an outstanding of UGX. 1,993,156,153 as at 30th June 2021. | Unnamed: 2 |\n| 1 | 12 | The Uganda Registration Services Bureau \u2013 Liquidation. 2020/21 Opinion Unqualified | \uf0b7 The entity had a court appropriation of UGX.1.162Bn for the financial year 2020/2021 and an appropriation by court brought forward from the previous year 2019/2020 of UGX.0.640Bn totaling up to UGX.1.802Bn receipts. \uf0b7 Out of the total funds available for expenditure of UGX.1.802Bn, UGX.1.277Bn was spent by the bureau resulting in an unspent balance of UGX.0.525, representing an absorption level of 70.9%. \uf0b7 I reviewed all the outputs and noted that the outputs were all adequately quantified. \uf0b7 Out of the six (6) outputs assessed, one (1) was fully implemented, while five (5) were partially implemented. Five (5) outputs with twenty-four (24) activities worth UGX1.061Bn were partially implemented. \uf0b7 URSB did not prepare performance reports for liquidation. \uf0b7 I observed that the bureau had receivables carried forward from the previous financial years amounting to UGX.6.243Bn that remained outstanding at the end of the financial year under audit. |", "metadata": {"page": 162, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Opinion Unqualified | the Governance and Security Programme. \uf0b7 The entity budgeted to collect NTR of UGX.0.112Bn but collected UGX.0.233Bn representing a performance of 208% of the target. \uf0b7 There was a shortfall in GoU releases amounting to UGX.34.461Bn, representing 22%. \uf0b7 Thirteen (13) outputs with a total of twenty-nine (28) activities were quantified, while eighteen (18) outputs with a total of thirty-nine (39) activities were insufficiently quantified. Further, of the thirteen (13) quantified outputs/activities assessed, two (2) outputs with two (2) activities were fully implemented; eleven (11) outputs with 27 activities were partially implemented. \uf0b7 Submission of performance reports for all the quarters was made after the deadline dates. \uf0b7 MoJCA received COVID 19 arrears supplementary funding of UGX.18.2Bn, all of which was warranted and spent, representing 100% of the budget absorption. \uf0b7 Domestic arrears decreased from UGX.399.88Bn, in the previous year to UGX.381.26Bn as at 30th June 2021, representing a reduction in arrears by 4.6%. The arrears remained unsettled at the close of the year. \uf0b7 The unpaid Court Awards and Compensation stood at UGX. 377.43Bn as of 30th June 2021, which has accumulated over the last ten years. \uf0b7 I noted that the MOJCA had not put in place a documented criterion for prioritizing the settlement of Court awards. \uf0b7 I noted a rising trend of Government liabilities due to the following (Under budgeting for court awards and compensation across Government, Accumulation of interest, Non-disclosure of contingent liabilities by other MDAs and New developments in the law) |\n|---:|-------------:|:----------------------------------------------------------------------------------|:------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 13 | The Uganda Registration Services Bureau - Operations. 2020/21 Opinion Unqualified | \uf0b7 The URSB strategic plan was prepared and approved by NPA. \uf0b7 The entity budgeted to collect NTR of UGX.47.31Bn but collected UGX.41.32Bn representing a performance of 87% of the target. \uf0b7 The URSB budgeted to receive UGX. 26.871Bn out of which UGX. 23.099Bn was availed, resulting in a shortfall of UGX.3.772Bn, which is 14% of the budget. Further, the entity remained with an unspent balance of UGX. 0.33Bn representing an absorption level of 99%. \uf0b7 Out of the seven (7) outputs sampled, five (5) were fully quantified, while one (1) was insufficiently quantified and one (1) was not quantified at all. \uf0b7 Out of the five (5) outputs assessed, two (2) were fully implemented while three (3) were partially implemented. \uf0b7 Submission of all the quarterly performance reports was made after the deadline date. Also, inconsistencies were noted in the annual performance report and the system-generated reports. For example, management reported four (4) and two (2) patents to have been granted in the financial years of June 2020 and June 2021, respectively. Yet the system report analysis showed that no patent had been granted in the last two financial years. \uf0b7 Despite a positive increase in the number of searches on the system, there was a significant decline in the performance of industrial designs registered, Local Trademarks renewed, Patents granted, and foreign trademarks registered \uf0b7 I analysed the number of applications received and eventually registered for the Utility model, patents and industrial designs and noted a significant difference in the number of applications that materialised to actual registrations. For instance, three (3) out of nineteen (19) Utility model applications were granted, two (2) out of the fifteen (15) Patent applications were granted, seventeen (17) out of the seventy-six (76) |", "metadata": {"page": 162, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Opinion Unqualified | the Governance and Security Programme. \uf0b7 The entity budgeted to collect NTR of UGX.0.112Bn but collected UGX.0.233Bn representing a performance of 208% of the target. \uf0b7 There was a shortfall in GoU releases amounting to UGX.34.461Bn, representing 22%. \uf0b7 Thirteen (13) outputs with a total of twenty-nine (28) activities were quantified, while eighteen (18) outputs with a total of thirty-nine (39) activities were insufficiently quantified. Further, of the thirteen (13) quantified outputs/activities assessed, two (2) outputs with two (2) activities were fully implemented; eleven (11) outputs with 27 activities were partially implemented. \uf0b7 Submission of performance reports for all the quarters was made after the deadline dates. \uf0b7 MoJCA received COVID 19 arrears supplementary funding of UGX.18.2Bn, all of which was warranted and spent, representing 100% of the budget absorption. \uf0b7 Domestic arrears decreased from UGX.399.88Bn, in the previous year to UGX.381.26Bn as at 30th June 2021, representing a reduction in arrears by 4.6%. The arrears remained unsettled at the close of the year. \uf0b7 The unpaid Court Awards and Compensation stood at UGX. 377.43Bn as of 30th June 2021, which has accumulated over the last ten years. \uf0b7 I noted that the MOJCA had not put in place a documented criterion for prioritizing the settlement of Court awards. \uf0b7 I noted a rising trend of Government liabilities due to the following (Under budgeting for court awards and compensation across Government, Accumulation of interest, Non-disclosure of contingent liabilities by other MDAs and New developments in the law) |\n|---:|:-------------|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | were granted. \uf0b7 I noted a decline in performance for activities planned under Civil Registration; the number of churches registered declined by 38.8%. Similarly, the number of Marriage returns FBOs, and Districts registered a decline in the performance of 17.56%. \uf0b7 I noted shortcomings in the performance of the National Marriage registration system such as; NMRS could not internally generate reports; few staff are trained, incomplete information on certificates generated through the system, the system does not allow bulky payments, resulting in multiple bank charges to the customer, other systems of the Bureau like on base are not integrated with NMRS. \uf0b7 URSB received COVID 19 arrears supplementary budget of UGX.0.0318Bn, all of which was spent representing 100% of the budget absorption. \uf0b7 The Bureau had UGX.4.516Bn in domestic arrears, but it budgeted and was warranted UGX.0.032Bn, leaving a balance of UGX.4.484Bn unbudgeted. URSB effected payments totaling UGX.1.216Bnresulting in excess of UGX.1.184Bn above the approved budget. Domestic arrears increased by UGX.3.055Bn (68%) from UGX.1.466Bn to UGX.4.516Bn as at June 2021. The arrears remained unsettled at the close of the year. \uf0b7 I reviewed the business registration system and noted the absence of an inbuilt mechanism to track and trace the movement and clearance of queries raised regarding name reservations and applications. The entity still has some processes that use manual backup. There were delays in the development of the Quality Management system ISO 9001(QMS) | Unnamed: 2 |", "metadata": {"page": 163, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Opinion Unqualified | the Governance and Security Programme. \uf0b7 The entity budgeted to collect NTR of UGX.0.112Bn but collected UGX.0.233Bn representing a performance of 208% of the target. \uf0b7 There was a shortfall in GoU releases amounting to UGX.34.461Bn, representing 22%. \uf0b7 Thirteen (13) outputs with a total of twenty-nine (28) activities were quantified, while eighteen (18) outputs with a total of thirty-nine (39) activities were insufficiently quantified. Further, of the thirteen (13) quantified outputs/activities assessed, two (2) outputs with two (2) activities were fully implemented; eleven (11) outputs with 27 activities were partially implemented. \uf0b7 Submission of performance reports for all the quarters was made after the deadline dates. \uf0b7 MoJCA received COVID 19 arrears supplementary funding of UGX.18.2Bn, all of which was warranted and spent, representing 100% of the budget absorption. \uf0b7 Domestic arrears decreased from UGX.399.88Bn, in the previous year to UGX.381.26Bn as at 30th June 2021, representing a reduction in arrears by 4.6%. The arrears remained unsettled at the close of the year. \uf0b7 The unpaid Court Awards and Compensation stood at UGX. 377.43Bn as of 30th June 2021, which has accumulated over the last ten years. \uf0b7 I noted that the MOJCA had not put in place a documented criterion for prioritizing the settlement of Court awards. \uf0b7 I noted a rising trend of Government liabilities due to the following (Under budgeting for court awards and compensation across Government, Accumulation of interest, Non-disclosure of contingent liabilities by other MDAs and New developments in the law) |\n|---:|-------------:|:--------------------------------------------------------------|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 14 | The Ministry of Internal Affairs. 2020/21 Opinion Unqualified | \uf0b7 The Ministry of Internal Affairs prepared a strategic plan for 2020-2025. However, it had not been approved by the National Planning Authority at the time of audit. \uf0b7 Out of the total receipts for the financial year of UGX.51.5Bn, only UGX.50.8Bn was spent by the entity resulting in an unspent balance of UGX.0.7Bn representing an absorption level of 99%. \uf0b7 I sampled forty-one (41) outputs with a total of one hundred and ninety- seven (197) activities and expenditure of UGX.37.7Bn for assessment and noted that fifty-nine (59) activities with expenditure worth UGX.11.30Bn were fully quantified. one hundred thirty-seven (137) activities with worth UGX.26.1Bn were insufficiently quantified, and one (1) activity with expenditure worth UGX.0.24Bn was not quantified at all \uf0b7 An assessment of service delivery revealed that in the financial year 2020/2021, the Ministry extended support to 299 victims of human trafficking, which is only 45% of the total victims of human trafficking as reported by the Uganda Police Force. An assessment of the Monitoring of NGOs revealed that although the Ministry had registered 2,249 NGOs, the Ministry could only carry out offsite inspections of just 145 NGOs or 1% of all registered NGOs. \uf0b7 A trend analysis of the Ministry domestic arrears over the past three years showed an increasing trend from UGX.0.078Bn in 2018/2019 to UGX.1.45Bn in 2020/2021. \uf0b7 The Ministry paid for repair services worth UGX.13,237,877 without being certified by the responsible technical officer to confirm receipt of the services. The Ministry also procured stores worth UGX.88,444,071, which were not recorded in the Ministry\u2019s stores records. \uf0b7 I noted that procurements worth UGX.88,844,071 were not recorded in |", "metadata": {"page": 163, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Opinion Unqualified | the Governance and Security Programme. \uf0b7 The entity budgeted to collect NTR of UGX.0.112Bn but collected UGX.0.233Bn representing a performance of 208% of the target. \uf0b7 There was a shortfall in GoU releases amounting to UGX.34.461Bn, representing 22%. \uf0b7 Thirteen (13) outputs with a total of twenty-nine (28) activities were quantified, while eighteen (18) outputs with a total of thirty-nine (39) activities were insufficiently quantified. Further, of the thirteen (13) quantified outputs/activities assessed, two (2) outputs with two (2) activities were fully implemented; eleven (11) outputs with 27 activities were partially implemented. \uf0b7 Submission of performance reports for all the quarters was made after the deadline dates. \uf0b7 MoJCA received COVID 19 arrears supplementary funding of UGX.18.2Bn, all of which was warranted and spent, representing 100% of the budget absorption. \uf0b7 Domestic arrears decreased from UGX.399.88Bn, in the previous year to UGX.381.26Bn as at 30th June 2021, representing a reduction in arrears by 4.6%. The arrears remained unsettled at the close of the year. \uf0b7 The unpaid Court Awards and Compensation stood at UGX. 377.43Bn as of 30th June 2021, which has accumulated over the last ten years. \uf0b7 I noted that the MOJCA had not put in place a documented criterion for prioritizing the settlement of Court awards. \uf0b7 I noted a rising trend of Government liabilities due to the following (Under budgeting for court awards and compensation across Government, Accumulation of interest, Non-disclosure of contingent liabilities by other MDAs and New developments in the law) |\n|---:|:-------------|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | the stores\u2019 ledgers nor witnessed by internal audit, making it difficult to verify the deliveries. \uf0b7 The Ministry of Internal Affairs has an approved structure of 224 positions, out of which 105 are filled, resulting in a shortfall of 119 (representing 47%)., including critical positions such as Commissioner Compliance, Assistant Commissioner Compliance, Senior Internal Auditor, Commissioner and Assistant Commissioner for the Social Integration department were vacant. | Unnamed: 2 |", "metadata": {"page": 164, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Opinion Unqualified | the Governance and Security Programme. \uf0b7 The entity budgeted to collect NTR of UGX.0.112Bn but collected UGX.0.233Bn representing a performance of 208% of the target. \uf0b7 There was a shortfall in GoU releases amounting to UGX.34.461Bn, representing 22%. \uf0b7 Thirteen (13) outputs with a total of twenty-nine (28) activities were quantified, while eighteen (18) outputs with a total of thirty-nine (39) activities were insufficiently quantified. Further, of the thirteen (13) quantified outputs/activities assessed, two (2) outputs with two (2) activities were fully implemented; eleven (11) outputs with 27 activities were partially implemented. \uf0b7 Submission of performance reports for all the quarters was made after the deadline dates. \uf0b7 MoJCA received COVID 19 arrears supplementary funding of UGX.18.2Bn, all of which was warranted and spent, representing 100% of the budget absorption. \uf0b7 Domestic arrears decreased from UGX.399.88Bn, in the previous year to UGX.381.26Bn as at 30th June 2021, representing a reduction in arrears by 4.6%. The arrears remained unsettled at the close of the year. \uf0b7 The unpaid Court Awards and Compensation stood at UGX. 377.43Bn as of 30th June 2021, which has accumulated over the last ten years. \uf0b7 I noted that the MOJCA had not put in place a documented criterion for prioritizing the settlement of Court awards. \uf0b7 I noted a rising trend of Government liabilities due to the following (Under budgeting for court awards and compensation across Government, Accumulation of interest, Non-disclosure of contingent liabilities by other MDAs and New developments in the law) |\n|---:|-------------:|:-------------------------------------------------|:-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 15 | Uganda Police Force. 2020/21 Opinion Unqualified | \uf0b7 Uganda Police Force prepared a strategic plan for the period 2020-2025. However, the plan had not yet been approved by the National Planning Authority at the time of audit . \uf0b7 Uganda Police Force budgeted to collect NTR of UGX.24.06Bn during the year. However, by the end of the year, UPF had collected a total of UGX.33.80Bn. \uf0b7 Out of the total GoU receipts for the financial year of UGX.1,043.5Bn, only UGX.1,040.2Bn was spent by the entity resulting in an unspent balance of UGX.3.4Bn representing an absorption level of 99.7%. As a result, I noted that of the twenty-eight (28) fully quantified activities worth UGX.207.3Bn assessed, three activities representing 11% were fully implemented, while 25 activities representing 89% were partially implemented. \uf0b7 I noted that UPF received off-budget financing amounting to UGX.12.4Bn, which was not declared to the Treasury and therefore not appropriated to the entity by Parliament. \uf0b7 I assessed the extent of service delivery and noted that the coverage of canine services had only reached 68 (or 43%) out of Uganda\u2019s 157 policing districts, affecting the extent of canine-related investigations and service delivery in the areas not yet covered. \uf0b7 I assessed the progress on the investigation of crime by the Uganda Police Force and noted that the entity had only completed investigations for 331,584 (40.7%) cases, leaving a backlog of 445,976 cases. Of the 445,976 backlogs of cases, 291,060 (65%) have been pending for three (3) or more years. \uf0b7 Although Uganda Police has completed Phase 1 and 2 of the project for the installation of CCTV cameras, I observed that the Force does not have a budget for the maintenance of the installed camera infrastructure. \uf0b7 UPF received a sum of UGX.49.22Bn as \u2018Covid-19 related\u2019 funding, all of which was utilised for the purpose for which it was released. \uf0b7 An assessment of the performance of the Express Penalty Scheme revealed that whereas tickets worth UGX.120.8Bn have been issued in the period from 2015/2016 to 2020/2021, only UGX.90.Bn has so far been collected, resulting in uncollected arrears amounting to UGX.29.98Bn. \uf0b7 A trend analysis of domestic arrears over the past three years shows a decreasing trend from UGX.161.0Bn in 2017/2018 to UGX.114.1Bn at the close of 2020/2021. \uf0b7 A total of 380 staff continued to receive salaries amounting to UGX.1,795,637,954 after their retirement date, as recorded in the Integrated Personnel and Payroll System (IPPS). \uf0b7 UPF does not have an approved land management policy. In addition, a total of 408 out of the 1,078 parcels of land owned by UPF are neither |", "metadata": {"page": 164, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Opinion Unqualified | the Governance and Security Programme. \uf0b7 The entity budgeted to collect NTR of UGX.0.112Bn but collected UGX.0.233Bn representing a performance of 208% of the target. \uf0b7 There was a shortfall in GoU releases amounting to UGX.34.461Bn, representing 22%. \uf0b7 Thirteen (13) outputs with a total of twenty-nine (28) activities were quantified, while eighteen (18) outputs with a total of thirty-nine (39) activities were insufficiently quantified. Further, of the thirteen (13) quantified outputs/activities assessed, two (2) outputs with two (2) activities were fully implemented; eleven (11) outputs with 27 activities were partially implemented. \uf0b7 Submission of performance reports for all the quarters was made after the deadline dates. \uf0b7 MoJCA received COVID 19 arrears supplementary funding of UGX.18.2Bn, all of which was warranted and spent, representing 100% of the budget absorption. \uf0b7 Domestic arrears decreased from UGX.399.88Bn, in the previous year to UGX.381.26Bn as at 30th June 2021, representing a reduction in arrears by 4.6%. The arrears remained unsettled at the close of the year. \uf0b7 The unpaid Court Awards and Compensation stood at UGX. 377.43Bn as of 30th June 2021, which has accumulated over the last ten years. \uf0b7 I noted that the MOJCA had not put in place a documented criterion for prioritizing the settlement of Court awards. \uf0b7 I noted a rising trend of Government liabilities due to the following (Under budgeting for court awards and compensation across Government, Accumulation of interest, Non-disclosure of contingent liabilities by other MDAs and New developments in the law) |\n|---:|:-------------|:----------------------|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | surveyed nor titled. | Unnamed: 2 |", "metadata": {"page": 165, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Opinion Unqualified | the Governance and Security Programme. \uf0b7 The entity budgeted to collect NTR of UGX.0.112Bn but collected UGX.0.233Bn representing a performance of 208% of the target. \uf0b7 There was a shortfall in GoU releases amounting to UGX.34.461Bn, representing 22%. \uf0b7 Thirteen (13) outputs with a total of twenty-nine (28) activities were quantified, while eighteen (18) outputs with a total of thirty-nine (39) activities were insufficiently quantified. Further, of the thirteen (13) quantified outputs/activities assessed, two (2) outputs with two (2) activities were fully implemented; eleven (11) outputs with 27 activities were partially implemented. \uf0b7 Submission of performance reports for all the quarters was made after the deadline dates. \uf0b7 MoJCA received COVID 19 arrears supplementary funding of UGX.18.2Bn, all of which was warranted and spent, representing 100% of the budget absorption. \uf0b7 Domestic arrears decreased from UGX.399.88Bn, in the previous year to UGX.381.26Bn as at 30th June 2021, representing a reduction in arrears by 4.6%. The arrears remained unsettled at the close of the year. \uf0b7 The unpaid Court Awards and Compensation stood at UGX. 377.43Bn as of 30th June 2021, which has accumulated over the last ten years. \uf0b7 I noted that the MOJCA had not put in place a documented criterion for prioritizing the settlement of Court awards. \uf0b7 I noted a rising trend of Government liabilities due to the following (Under budgeting for court awards and compensation across Government, Accumulation of interest, Non-disclosure of contingent liabilities by other MDAs and New developments in the law) |\n|---:|-------------:|:---------------------------------------------------------------------------------------|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 16 | National Identification and Registration Authority (NIRA). 2020/21 Opinion Unqualified | \uf0b7 NIRA prepared a strategic plan for the period 2020-2025, which was approved by the National Planning Authority. However, the plan is yet to be approved by the Board of the Authority for implementation. \uf0b7 NIRA budgeted to collect NTR of UGX.15.0Bn during the year. However, by the end of the year, NIRA had collected a total of UGX.3.66Bn. \uf0b7 Out of the total GoU receipts for the financial year of UGX.55.2Bn, only UGX.53.3Bn was spent by the entity resulting in an unspent balance of UGX.1.7Bn representing an absorption level of 97%. As a result, I noted that of the twenty-four (24) fully quantified activities worth UGX.70.6Bn assessed; 10 activities representing 42% were fully implemented, 12 activities representing 50% were partially implemented, while 2 activities representing 8% were not implemented at all. \uf0b7 I assessed the extent of service delivery and noted that only 11% of the planned 1,712,880 citizens were registered during the year, while only 30% of the planned 2,000,000 National IDs were issued. \uf0b7 I assessed the progress on registration of births and deaths and observed that NIRA registered 90% of the planned 960,000 births and only 1.3% of the 960,000 deaths. \uf0b7 A review of the progress of registering citizens indicated that as of December 2021, 29,713,029 applications, or 69% of all Ugandans, had applied to NIRA for registration. Of these, only 25,557,448 or 86% of the applicants had been registered, and only 16,258,521 (63.6%) have been issued with National Identity cards. \uf0b7 Only 16.3 million cards out of the over 19 million national identity cards so far printed have been claimed, leaving over 2.7 million cards unissued or unclaimed. \uf0b7 At the time of audit (December 2021), the Authority had over 4.3 million applications yet to be processed. Of these, 3.2 million applications were still being processed, while 1.1 million applications have been rejected. \uf0b7 NIRA plans to register at least 28,000 aliens annually and issue them with the relevant identification cards. From 2015 to date, the entity has only received 16 applications for alien IDs, and no Alien ID has been issued. \uf0b7 A reviewed the outcome of the initiative to register learners (or school going children within their schools) undertaken in 2017/2018 to determine whether all registered learners had been issued with NINs. I noted that records of over 1.8 million (or 19%) learners\u2019 who registered during that exercise had been rejected and thus not processed for issuance of NINs and Identification Cards. \uf0b7 NIRA failed to procure over 4,500,000 million IDs from the Uganda Security Printing Company as the Joint Venture Agreement required. As a result, the entity has recognised a contingent liability of UGX.33.5Bn. |\n| 1 | 17 | Amnesty Commission 2020/21 Opinion Unqualified | \uf0b7 The entity budgeted to receive UGX.4.016Bn, out of which UGX.3.868Bn was warranted, resulting in a shortfall of UGX.0.147Bn, which is 3.7% of the budget. \uf0b7 Out of the total receipts for the financial year of UGX.3.199Bn, all of the funds were spent by the entity representing an absorption level of 100%. As a result, I noted that of the three (3) quantified activities worth UGX.1.297Bn assessed, all of three (3) activities were partially implemented. |", "metadata": {"page": 165, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Opinion Unqualified | the Governance and Security Programme. \uf0b7 The entity budgeted to collect NTR of UGX.0.112Bn but collected UGX.0.233Bn representing a performance of 208% of the target. \uf0b7 There was a shortfall in GoU releases amounting to UGX.34.461Bn, representing 22%. \uf0b7 Thirteen (13) outputs with a total of twenty-nine (28) activities were quantified, while eighteen (18) outputs with a total of thirty-nine (39) activities were insufficiently quantified. Further, of the thirteen (13) quantified outputs/activities assessed, two (2) outputs with two (2) activities were fully implemented; eleven (11) outputs with 27 activities were partially implemented. \uf0b7 Submission of performance reports for all the quarters was made after the deadline dates. \uf0b7 MoJCA received COVID 19 arrears supplementary funding of UGX.18.2Bn, all of which was warranted and spent, representing 100% of the budget absorption. \uf0b7 Domestic arrears decreased from UGX.399.88Bn, in the previous year to UGX.381.26Bn as at 30th June 2021, representing a reduction in arrears by 4.6%. The arrears remained unsettled at the close of the year. \uf0b7 The unpaid Court Awards and Compensation stood at UGX. 377.43Bn as of 30th June 2021, which has accumulated over the last ten years. \uf0b7 I noted that the MOJCA had not put in place a documented criterion for prioritizing the settlement of Court awards. \uf0b7 I noted a rising trend of Government liabilities due to the following (Under budgeting for court awards and compensation across Government, Accumulation of interest, Non-disclosure of contingent liabilities by other MDAs and New developments in the law) |\n|---:|:-------------|:------------------------------------------------|:-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | SECURITY SECTOR | Unnamed: 2 |\n| 1 | 1 | NEC AGRO SMSC LTD 2019/2020 Opinion Unqualified | \uf0b7 Accounts receivables increased by 229% from UGX.3.080bn in the financial year 2018/19 to UGX.7.062bn in financial year 2019/20. Outstanding debtors represent idle resources which could be used in the implementation of planned activities. \uf0b7 I noted weaknesses in the utilisation of the Corporation\u2019s tractors which include; the tractors have remained parked for a long period of time hence losing value, the entity spent a sum of UGX.8,094,000 on tractor repairs but no revenue was generated, having been acquired in 2010, these tractors are due for disposal however the disposal process had not started. \uf0b7 I reviewed Financial Performance of NEC AGRO SMC LTD and observed the following: \uf0b7 The Corporation had an operating margin of 6.8% which is below the recommended 15%. This implies that the subsidiary has a lower proportion of revenues covering expenses rather than profits or income. \uf0b7 The Corporation made profits of UGX.2.061bn after tax in the year under review up from profits of UGX.0.661bn realized in the previous year (a rise of 211.5%). The Corporation had positive retained earnings of UGX.0.724bn as at the end of the financial year. This will enable the corporation to meet future contingencies or investments in growth. \uf0b7 The return on assets for the Corporation increased to 19.1% from 13.1% recorded in the previous year which is generally considered good given that it is over 5%. \uf0b7 The Corporation had a current ratio of 2.7 for the year under review which was above the desirable ratio of 1.5 implying that the Corporation is not efficiently using its current assets. \uf0b7 The Corporation had a debt ratio of 35% as at the end of the financial year compared to 2.8% in the previous year implying that the majority of the Corporation assets are financed by debt. \uf0b7 Two subsidiaries i.e. NEC Tractor Hire Scheme and NEC Tractor Project to form NEC AGRO SMC LTD were merged to form NEC AGRO SMC LTD. Although the Corporation is now in operation, it has not been approved by the Uganda Registration Services Bureau. |", "metadata": {"page": 166, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Opinion Unqualified | the Governance and Security Programme. \uf0b7 The entity budgeted to collect NTR of UGX.0.112Bn but collected UGX.0.233Bn representing a performance of 208% of the target. \uf0b7 There was a shortfall in GoU releases amounting to UGX.34.461Bn, representing 22%. \uf0b7 Thirteen (13) outputs with a total of twenty-nine (28) activities were quantified, while eighteen (18) outputs with a total of thirty-nine (39) activities were insufficiently quantified. Further, of the thirteen (13) quantified outputs/activities assessed, two (2) outputs with two (2) activities were fully implemented; eleven (11) outputs with 27 activities were partially implemented. \uf0b7 Submission of performance reports for all the quarters was made after the deadline dates. \uf0b7 MoJCA received COVID 19 arrears supplementary funding of UGX.18.2Bn, all of which was warranted and spent, representing 100% of the budget absorption. \uf0b7 Domestic arrears decreased from UGX.399.88Bn, in the previous year to UGX.381.26Bn as at 30th June 2021, representing a reduction in arrears by 4.6%. The arrears remained unsettled at the close of the year. \uf0b7 The unpaid Court Awards and Compensation stood at UGX. 377.43Bn as of 30th June 2021, which has accumulated over the last ten years. \uf0b7 I noted that the MOJCA had not put in place a documented criterion for prioritizing the settlement of Court awards. \uf0b7 I noted a rising trend of Government liabilities due to the following (Under budgeting for court awards and compensation across Government, Accumulation of interest, Non-disclosure of contingent liabilities by other MDAs and New developments in the law) |\n|---:|-------------:|:----------------------------------------------------------|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 2 | NEC AGRO SMSC LTD 2020/2021 Opinion Unqualified | \uf0b7 Receivables increased by 23.2% from UGX.6,671,059,244 in the F/Y 2019/20 to UGX.8,219,802,915 in the F/Y 2020/21 and a number of debtors had been outstanding since financial year 2018/19 to-date. \uf0b7 NEC AGRO SMC LTD has an operating margin of 8.5% which is below the desirable 15%. This implies that the subsidiary has a lower proportion of revenues covering expenses rather than profits or income. \uf0b7 The Corporation had a current ratio of 11.4 for the year under review which was way above the desirable ratio of 1.5. I further noted that the current ratio for the year increased by 322% from a ratio of 2.7 recorded in the previous year. |\n| 1 | 3 | (NEC) Farm Katonga Limited. 2019/2020 Opinion Unqualified | \uf0b7 The Corporation had an operating margin of 2.1%, which is below 50% which implies that the Corporation is having a lower proportion of revenues covering expenses rather than profits or income. \uf0b7 The Corporation had negative retained earnings of UGX.1,474,703,986 as at the end of the financial year. This may affect the entity\u2019s ability to |", "metadata": {"page": 166, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Opinion Unqualified | the Governance and Security Programme. \uf0b7 The entity budgeted to collect NTR of UGX.0.112Bn but collected UGX.0.233Bn representing a performance of 208% of the target. \uf0b7 There was a shortfall in GoU releases amounting to UGX.34.461Bn, representing 22%. \uf0b7 Thirteen (13) outputs with a total of twenty-nine (28) activities were quantified, while eighteen (18) outputs with a total of thirty-nine (39) activities were insufficiently quantified. Further, of the thirteen (13) quantified outputs/activities assessed, two (2) outputs with two (2) activities were fully implemented; eleven (11) outputs with 27 activities were partially implemented. \uf0b7 Submission of performance reports for all the quarters was made after the deadline dates. \uf0b7 MoJCA received COVID 19 arrears supplementary funding of UGX.18.2Bn, all of which was warranted and spent, representing 100% of the budget absorption. \uf0b7 Domestic arrears decreased from UGX.399.88Bn, in the previous year to UGX.381.26Bn as at 30th June 2021, representing a reduction in arrears by 4.6%. The arrears remained unsettled at the close of the year. \uf0b7 The unpaid Court Awards and Compensation stood at UGX. 377.43Bn as of 30th June 2021, which has accumulated over the last ten years. \uf0b7 I noted that the MOJCA had not put in place a documented criterion for prioritizing the settlement of Court awards. \uf0b7 I noted a rising trend of Government liabilities due to the following (Under budgeting for court awards and compensation across Government, Accumulation of interest, Non-disclosure of contingent liabilities by other MDAs and New developments in the law) |\n|---:|:-------------|:----------------------------------------------------------|:------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | Unnamed: 1 | meet future contingencies or investments in growth. \uf0b7 The return on assets for the Corporation increased by 0.01% from 0.55% recorded in the previous year, the return was still very low. This implies that the Corporation is not making enough income from the use of its assets. \uf0b7 The Corporation had a current ratio of 389 for the year under review which was far above the desirable range of 1.5 \u2013 2.0. It reduced by 59% from a ratio of 938 realized in the previous year. |\n| 1 | 4 | (NEC) Farm Katonga Limited, 2020/2021 Opinion Unqualified | \uf0b7 The Corporation has an operating margin of 1.2%, which is below the 50% compared to 2.1% realized in the previous year 2019/20 representing a reduction of 43% which implies that the Corporation is having a lower proportion of revenues covering expenses rather than profits or income. \uf0b7 The Corporation made profits of UGX.32,789,541 after tax in the year under review up from profits of UGX.30,230,727 realized in the previous year representing a rise in profits of 8.5%. However the Corporation had negative retained earnings of UGX.1,441,914,445 as at the end of the financial year which may affect the entity\u2019s ability to meet future contingencies or investments in growth. \uf0b7 The corporation posted a return on assets of only 0.4% down from 0.56% posted in the previous year, representing a reduction in ROA of 28.6%. This implies that the Corporation is not making enough income from the use of its assets. \uf0b7 The Corporation had a current ratio of 2,123 for the year under review which was far above the desirable range of 1.5 \u2013 2.0. The very high current ratio implies that the Corporation is not efficiently using its current assets or its short-term financing facilities. \uf0b7 A loan advances worth UGX.808,940,140 was extended to NEC AGRO SMC LTD on 10/03/2021 after committing to pay back the short term loan in 4 weeks. It was however observed that at the time of writing this report in December 2021, the loan advance had not been repaid. \uf0b7 It was established that NEC was involved in land disputes with various encroachers at NEC Farm Katonga which may result into loss of land if not promptly handled. |", "metadata": {"page": 167, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Opinion Unqualified | the Governance and Security Programme. \uf0b7 The entity budgeted to collect NTR of UGX.0.112Bn but collected UGX.0.233Bn representing a performance of 208% of the target. \uf0b7 There was a shortfall in GoU releases amounting to UGX.34.461Bn, representing 22%. \uf0b7 Thirteen (13) outputs with a total of twenty-nine (28) activities were quantified, while eighteen (18) outputs with a total of thirty-nine (39) activities were insufficiently quantified. Further, of the thirteen (13) quantified outputs/activities assessed, two (2) outputs with two (2) activities were fully implemented; eleven (11) outputs with 27 activities were partially implemented. \uf0b7 Submission of performance reports for all the quarters was made after the deadline dates. \uf0b7 MoJCA received COVID 19 arrears supplementary funding of UGX.18.2Bn, all of which was warranted and spent, representing 100% of the budget absorption. \uf0b7 Domestic arrears decreased from UGX.399.88Bn, in the previous year to UGX.381.26Bn as at 30th June 2021, representing a reduction in arrears by 4.6%. The arrears remained unsettled at the close of the year. \uf0b7 The unpaid Court Awards and Compensation stood at UGX. 377.43Bn as of 30th June 2021, which has accumulated over the last ten years. \uf0b7 I noted that the MOJCA had not put in place a documented criterion for prioritizing the settlement of Court awards. \uf0b7 I noted a rising trend of Government liabilities due to the following (Under budgeting for court awards and compensation across Government, Accumulation of interest, Non-disclosure of contingent liabilities by other MDAs and New developments in the law) |\n|---:|-------------:|:----------------------------------------------|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 5 | NEC Headquarter 2019/2020 Opinion Unqualified | \uf0b7 The Corporation had outstanding debtors amounting to UGX.1,796,916,916 some of which have been outstanding for a number of years. Continued reflection of the debtors\u2019 amount in the financial statements when their recovery seems to be remote misleads users of the accounts. \uf0b7 The Corporation owns Plot No. 1018 which is about 10 acres of land at Kampala Industrial and Business Park in Namanve allocated to it by Uganda Investment Authority in the year 2005 which has remained undeveloped for about 15 years due to lack of an access road. |\n| 1 | 6 | NEC Headquarters 2020/2021 Opinion Qualified | \uf0b7 I observed that NEC Pharmaceutical investment reduced to UGX.1,118,877,451 from UGX.2,460,326,736 by the end of the financial year 2020/2021 because machinery and furniture valued at UGX.1,341,449,285 was to be disposed of. The Ministry of Works expert put the value of the machinery and furniture to be disposed of at UGX.413,720,000 implying that value for sale was overstated by UGX.927,729,285. \uf0b7 In the FY 2017, NEC was allocated road construction and maintenance |", "metadata": {"page": 167, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Opinion Unqualified | the Governance and Security Programme. \uf0b7 The entity budgeted to collect NTR of UGX.0.112Bn but collected UGX.0.233Bn representing a performance of 208% of the target. \uf0b7 There was a shortfall in GoU releases amounting to UGX.34.461Bn, representing 22%. \uf0b7 Thirteen (13) outputs with a total of twenty-nine (28) activities were quantified, while eighteen (18) outputs with a total of thirty-nine (39) activities were insufficiently quantified. Further, of the thirteen (13) quantified outputs/activities assessed, two (2) outputs with two (2) activities were fully implemented; eleven (11) outputs with 27 activities were partially implemented. \uf0b7 Submission of performance reports for all the quarters was made after the deadline dates. \uf0b7 MoJCA received COVID 19 arrears supplementary funding of UGX.18.2Bn, all of which was warranted and spent, representing 100% of the budget absorption. \uf0b7 Domestic arrears decreased from UGX.399.88Bn, in the previous year to UGX.381.26Bn as at 30th June 2021, representing a reduction in arrears by 4.6%. The arrears remained unsettled at the close of the year. \uf0b7 The unpaid Court Awards and Compensation stood at UGX. 377.43Bn as of 30th June 2021, which has accumulated over the last ten years. \uf0b7 I noted that the MOJCA had not put in place a documented criterion for prioritizing the settlement of Court awards. \uf0b7 I noted a rising trend of Government liabilities due to the following (Under budgeting for court awards and compensation across Government, Accumulation of interest, Non-disclosure of contingent liabilities by other MDAs and New developments in the law) |\n|---:|:-------------|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | equipment from Ministry of Works and Transport as one way of enhancing its competitiveness in the market. I however noted that the depreciation charge related to the road construction and maintenance equipment was not disclosed in the statement of profit and loss and other comprehensive income contrary to the existing financial reporting standards. \uf0b7 Debtors worth UGX.757,989,660 were reported among which are sundry debtors and prepayments worth UGX.142,254,800 which have been outstanding for a period of more than one year. \uf0b7 Payable amounting to UGX.10,010,447 have remained outstanding for over ten years. \uf0b7 In 2005, Iran Agro Industries was given a lease for 17 square miles of land at NEC Farm Katonga. The initial 5-year lease elapsed without fulfilment of the lease obligations by Iran Agro Industries and the lease was terminated but the land titles were not repossessed by NEC. \uf0b7 It was observed that there was no Annual General Meeting held in the last five years and the entity\u2019s draft strategic plan had not been reviewed by NPA to align to NDP III for onward approval by the Board of Directors. | Unnamed: 2 |", "metadata": {"page": 168, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Opinion Unqualified | the Governance and Security Programme. \uf0b7 The entity budgeted to collect NTR of UGX.0.112Bn but collected UGX.0.233Bn representing a performance of 208% of the target. \uf0b7 There was a shortfall in GoU releases amounting to UGX.34.461Bn, representing 22%. \uf0b7 Thirteen (13) outputs with a total of twenty-nine (28) activities were quantified, while eighteen (18) outputs with a total of thirty-nine (39) activities were insufficiently quantified. Further, of the thirteen (13) quantified outputs/activities assessed, two (2) outputs with two (2) activities were fully implemented; eleven (11) outputs with 27 activities were partially implemented. \uf0b7 Submission of performance reports for all the quarters was made after the deadline dates. \uf0b7 MoJCA received COVID 19 arrears supplementary funding of UGX.18.2Bn, all of which was warranted and spent, representing 100% of the budget absorption. \uf0b7 Domestic arrears decreased from UGX.399.88Bn, in the previous year to UGX.381.26Bn as at 30th June 2021, representing a reduction in arrears by 4.6%. The arrears remained unsettled at the close of the year. \uf0b7 The unpaid Court Awards and Compensation stood at UGX. 377.43Bn as of 30th June 2021, which has accumulated over the last ten years. \uf0b7 I noted that the MOJCA had not put in place a documented criterion for prioritizing the settlement of Court awards. \uf0b7 I noted a rising trend of Government liabilities due to the following (Under budgeting for court awards and compensation across Government, Accumulation of interest, Non-disclosure of contingent liabilities by other MDAs and New developments in the law) |\n|---:|-------------:|:-------------------------------------------------------------|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 7 | NEC Luwero Industries Limited, 2019/2020 Opinion Unqualified | \uf0b7 The Corporation had outstanding trade debtors amounting to UGX.791,065,997 at the close of the financial year 2019/2020 some of which have been outstanding for over the past three financial years. Uncollected debtors represent an idle resource that would be put to use by the entity to enhance its operations. \uf0b7 The Corporation had outstanding trade creditors amounting to UGX.33,967,430 some of which have been outstanding for over three financial years. Failure to settle creditors for such long periods could lead to litigation costs for the entity and impact on the going concern as the creditors may cease doing business with the entity. \uf0b7 NEC has established an e-waste project at 6th Street Industrial Area managed by Luwero Industries Ltd; a subsidiary of NEC and over UGX.200 million was spent on renovation of structures where the e-waste project was to be established. I noted that NEC is yet to acquire a land title for the space where this project is established. \uf0b7 The Corporation has an operating margin of 30%, which is below 50% compared to 3% realized in the previous year 2018/19 representing an increase of 900%. This implies that the Corporation is having a lower proportion of revenues covering expenses rather than profits or income. \uf0b7 I noted that the Corporation made profits of UGX.3,380,139,206 after tax in the year under review up from profits of UGX.206,028,828 realized in the previous year representing a rise in profits of 1,541%. I further noted that the Corporation had negative retained earnings of UGX.19,235,077,990 as at the end of the financial year. \uf0b7 I noted that although the return on assets for the Corporation increased by 11.5% from 0.95% recorded in the previous year, the return was still very low. This implies that the Corporation is not making enough income from the use of its assets. \uf0b7 I noted that the Corporation had a current ratio of 5.2 for the year under review which was above the desirable ratio of 1.5. I further noted that the current ratio for the year increased by 4% from a ratio of 5.0 recorded in the previous year. \uf0b7 The Corporation had a debt ratio of 5.3% as at the end of the financial year under review implying that majority of Corporation assets are |", "metadata": {"page": 168, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Opinion Unqualified | the Governance and Security Programme. \uf0b7 The entity budgeted to collect NTR of UGX.0.112Bn but collected UGX.0.233Bn representing a performance of 208% of the target. \uf0b7 There was a shortfall in GoU releases amounting to UGX.34.461Bn, representing 22%. \uf0b7 Thirteen (13) outputs with a total of twenty-nine (28) activities were quantified, while eighteen (18) outputs with a total of thirty-nine (39) activities were insufficiently quantified. Further, of the thirteen (13) quantified outputs/activities assessed, two (2) outputs with two (2) activities were fully implemented; eleven (11) outputs with 27 activities were partially implemented. \uf0b7 Submission of performance reports for all the quarters was made after the deadline dates. \uf0b7 MoJCA received COVID 19 arrears supplementary funding of UGX.18.2Bn, all of which was warranted and spent, representing 100% of the budget absorption. \uf0b7 Domestic arrears decreased from UGX.399.88Bn, in the previous year to UGX.381.26Bn as at 30th June 2021, representing a reduction in arrears by 4.6%. The arrears remained unsettled at the close of the year. \uf0b7 The unpaid Court Awards and Compensation stood at UGX. 377.43Bn as of 30th June 2021, which has accumulated over the last ten years. \uf0b7 I noted that the MOJCA had not put in place a documented criterion for prioritizing the settlement of Court awards. \uf0b7 I noted a rising trend of Government liabilities due to the following (Under budgeting for court awards and compensation across Government, Accumulation of interest, Non-disclosure of contingent liabilities by other MDAs and New developments in the law) |\n|---:|:-------------|:-----------------------------------------------------------------------------------------------------------------------------------------------------|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | financed by debt. In comparison with the previous year, the debt ratio was 6.6% indicating a reduction of 1.3% in the debt over the one year period. | Unnamed: 2 |\n| 1 | 8 | National Enterprise Corporation (NEC) Luwero Industries Limited. 2020/21 Opinion Unqualified | \uf0b7 The entity had outstanding trade debtors amounting to UGX.491,697,278 at the close of the financial year 2020/2021, some of which have been outstanding for over the past three financial years. Uncollected debtors represent an idle resource that would be put to use by the entity to enhance its operations. \uf0b7 The Corporation had outstanding trade creditors amounting to UGX.744,085,592 some of which have been outstanding for over three financial years. Failure to settle creditors for such long periods could lead to expensive litigation costs for the entity and impact on the going concern as the creditors may cease doing business with the entity. \uf0b7 The Corporation had negative retained earnings of UGX.15,552,895,876 as at the end of the financial year. This may affect the entity\u2019s ability to meet future contingencies or investments in growth. \uf0b7 The corporation posted a return on assets of only 10% down from 12.5% posted in the previous year, representing a reduction in ROA of 20%. This implies that the Corporation is not making enough income from the use of its assets. \uf0b7 The Corporation had a current ratio of 11.9 for the year under review which was above the desirable ratio of 1.5. A very high current ratio implies that the Corporation is not efficiently using its current assets or its short-term financing facilities. \uf0b7 The Corporation had a debt ratio of 2.1% as at the end of the financial year under review implying that majority of Corporation assets are financed by debt. |", "metadata": {"page": 169, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Opinion Unqualified | the Governance and Security Programme. \uf0b7 The entity budgeted to collect NTR of UGX.0.112Bn but collected UGX.0.233Bn representing a performance of 208% of the target. \uf0b7 There was a shortfall in GoU releases amounting to UGX.34.461Bn, representing 22%. \uf0b7 Thirteen (13) outputs with a total of twenty-nine (28) activities were quantified, while eighteen (18) outputs with a total of thirty-nine (39) activities were insufficiently quantified. Further, of the thirteen (13) quantified outputs/activities assessed, two (2) outputs with two (2) activities were fully implemented; eleven (11) outputs with 27 activities were partially implemented. \uf0b7 Submission of performance reports for all the quarters was made after the deadline dates. \uf0b7 MoJCA received COVID 19 arrears supplementary funding of UGX.18.2Bn, all of which was warranted and spent, representing 100% of the budget absorption. \uf0b7 Domestic arrears decreased from UGX.399.88Bn, in the previous year to UGX.381.26Bn as at 30th June 2021, representing a reduction in arrears by 4.6%. The arrears remained unsettled at the close of the year. \uf0b7 The unpaid Court Awards and Compensation stood at UGX. 377.43Bn as of 30th June 2021, which has accumulated over the last ten years. \uf0b7 I noted that the MOJCA had not put in place a documented criterion for prioritizing the settlement of Court awards. \uf0b7 I noted a rising trend of Government liabilities due to the following (Under budgeting for court awards and compensation across Government, Accumulation of interest, Non-disclosure of contingent liabilities by other MDAs and New developments in the law) |\n|---:|-------------:|:-----------------------------------------|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 9 | NEC UZIMA. 2019/2020 Opinion Unqualified | \uf0b7 I noted that management procured major factory materials worth UGX.1,645,898,731 without adhering to neither the existing procurement processes nor applying for accreditation of an alternative system specifying existence of unique circumstances that could have prevented adherence to the requirements of PPDA Act. \uf0b7 NEC UZIMA LTD has an operating margin of 5.8% which is below 15%. This compared to 1.3% realised in the previous year 2018/19 represented an increase of 346% which puts the company in an awful situation. \uf0b7 Despite NEC Uzima Ltd making profits, the company had negative retained earnings of UGX.231,489,309 as at the end of the financial year. If this is not improved in the future, entity\u2019s ability to meet future contingencies or investments in growth may be affected. \uf0b7 I noted that the return on assets for the Corporation increased to 6.3% from 2.3% recorded in the previous year which is generally considered good given that it is over 5%. \uf0b7 The Corporation had a current ratio of 0.55 for the year under review which was way below the desirable ratio of 1.5. The Corporation is not able to satisfy its current liabilities/short-term obligations without raising external capital. \uf0b7 The Corporation had a debt ratio of 61% as at the end of the financial year under review implying that majority of Corporation assets are financed by debt. This implies that the company doesn\u2019t have enough funds to meet its current debt obligations and may find it hard to pay a return on government investments. |", "metadata": {"page": 169, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 10 | NATIONAL ENTERPRISE UZIMA LTD, 2020/2021 Opinion Unqualified | \uf0b7 Payables increased from UGX.1,042,752,671 in the F/Y 18/19 to UGX.1,744,963,543 in 19/20 and further to UGX.2,052,449,538 in the year under review. The increasing trend of payables could result into an uncontrollable level of payables which greatly affects the credit worthiness of the entity. \uf0b7 The Corporation had negative retained earnings of UGX.88,435,269 as at the end of the financial year. This may affect the entity\u2019s ability to meet future contingencies or investments in growth. \uf0b7 The Corporation had a current ratio of 2.3 for the year under review which is above the desirable ratio of 1.5. The high current ratio implies that the Corporation is not efficiently using its current assets or its short term financing facilities. \uf0b7 The Corporation had a debt ratio of 53.5% as at the end of the financial year under review which is considered undesirable. This implies that the company does not have enough funds to meet its current debt obligations and may find it hard to pay a return on Government investment. |\n|---:|-----:|:----------------------------------------------------------------------------------|:-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 11 | NEC Construction Works and Engineering Limited, 2019/2020 Opinion Unqualified | \uf0b7 NEC Works Ltd had outstanding trade debtors of UGX.10,074,717,689 as at the close of the financial year 2019/2020. Outstanding debtors represent an idle asset that would be put to use by the entity to enhance its operations. \uf0b7 National Enterprise Corporation (NEC) engaged into an MoU with Uganda Free Zone Authority (UFZA) in June 2019 for construction of the Free port zone facilities at Entebbe international airport. I observed that as at 30/06/2020, the completion status was barely at 30% with expected date of completion in June 2021. \uf0b7 The Corporation has an operating margin of 9%, which is below 50% compared to 12.5% realized in the previous year 2018/19 representing a reduction of 28%. This implies that the Corporation is having a lower proportion of revenues covering expenses rather than profits or income. \uf0b7 The Corporation made profits of UGX.2,094,813,036 after tax in the year under review up from profits of UGX.1,298,330,782 realized in the previous year representing a rise in profits of 61%. \uf0b7 The return on assets for the Corporation increased by 5% from 5.8% recorded in the previous year, the return was still very low. This implies that the Corporation is not making enough income from the use of its assets. \uf0b7 The Corporation had a current ratio of 1.3 for the year under review which was below the desirable ratio of 1.5. I further noted that the current ratio for the year increased by 12% from a ratio of 1.16 recorded in the previous year. The low current ratio implies that the Corporation has limited ability to meet short-term obligations without raising external capital. \uf0b7 The Corporation had a debt ratio of 79% as at the end of the financial year under review implying that majority of Corporation assets are financed by debt. This implies that the company does not have enough funds to meet its current debt obligations and may find it hard to pay a return on government investments. |\n| 1 | 12 | National Enterprise Corporation - Construction, Works and Engineering Ltd 2020/21 | \uf0b7 NEC Works Ltd had outstanding trade debtors of UGX.2,961,747,233 as at the close of the financial year 2020/2021 some of which have been outstanding for more than one year. I was not availed any recovery plans |", "metadata": {"page": 170, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Opinion Unqualified | nor any initiatives taken by management to recover the debts. \uf0b7 The Corporation had an operating margin of 11%, which is below 15% compared to 9% realized in the previous year 2019/20 representing an increase of 22%. This implies that the Corporation is having a lower proportion of revenues covering expenses rather than profits or income. \uf0b7 The Corporation had a current ratio of 1.4 for the year under review which was below the desirable ratio of 1.5. The low current ratio implies that the Corporation has limited ability to meet short-term obligations without raising external capital. \uf0b7 The Corporation had a debt ratio of 69% as at the end of the financial year under review implying that majority of Corporation assets are financed by debt. |\n|---:|-------------:|:-----------------------------------------------------------|:------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 13 | Uganda Air Cargo Corporation 2019/2020 Opinion Unqualified | \uf0b7 The Corporation had outstanding debtors of UGX.8,174,344,548 as at 30th June, 2020. UGX.8,159,631,016 representing 99.8% of the debtors reported has been outstanding for a period of more than 5 years. The uncollected debtors constitute more than 65% of the total current assets. \uf0b7 The Corporation had outstanding trade payables amounting to UGX.25,276,330,330 as at 30th June, 2020 with over UGX.13bn having been outstanding for over three financial years. \uf0b7 Management budgeted to collect revenue of USD.9,750,409 from its 8 revenue streams but only USD.444,407 was realized resulting into under collection of USD.9,306,004. The under collection constituted 95% of the budgeted revenue. \uf0b7 In keeping in line with the Corporation\u2019s vision, major investment projects were envisaged in the 10 year plan period but a review of the entity work plans and operations revealed that none of the projects has been implemented despite being in its 5th year of implementation. \uf0b7 The Corporation made a loss of UGX.12.6 Bn after tax in the year under review up from a loss of UGX.3.7 Bn realized in the previous year representing a rise in losses of 238%. I further noted that the Corporation had negative revenue reserves of UGX.16.331 Bn as at the end of the financial year. This may affect the entity\u2019s ability to meet future contingencies or investments in growth. \uf0b7 The Corporation had a current ratio of 0.5 for the year under review which was below the desirable ratio. The low ratio implies that the Corporation has limited ability to meet short term obligations without raising external capital. \uf0b7 The Corporation had a debt ratio of 30.6% as at the end of the financial year under review which is below the desirable of 50% and above implying that majority of Corporation assets are financed by debt. \uf0b7 An audit inspection established that the Corporation did not have an operating Aircraft to do business since most of them had been grounded under different circumstances. |", "metadata": {"page": 171, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Opinion Unqualified | nor any initiatives taken by management to recover the debts. \uf0b7 The Corporation had an operating margin of 11%, which is below 15% compared to 9% realized in the previous year 2019/20 representing an increase of 22%. This implies that the Corporation is having a lower proportion of revenues covering expenses rather than profits or income. \uf0b7 The Corporation had a current ratio of 1.4 for the year under review which was below the desirable ratio of 1.5. The low current ratio implies that the Corporation has limited ability to meet short-term obligations without raising external capital. \uf0b7 The Corporation had a debt ratio of 69% as at the end of the financial year under review implying that majority of Corporation assets are financed by debt. |\n|---:|-------------:|:------------------------------------------------------------|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 14 | Uganda Air Cargo Corporation, 2020/2021 Opinion Unqualified | \uf0b7 MoFPED released UGX.46,048,485,223 through MoDVA for capitalisation of UACC but MoDVA transferred UGX.42,511,285,223 leaving a balance of UGX.3,537,200,000. It was observed that UACC with the approval of the Board of Directors agreed to reallocate UGX.28,647,537,490 to fund new priorities other than those for which the funds were appropriated. \uf0b7 A review of the ten (10) year Strategic Business and Investment Plan 2016 to 2027 revealed that out of the planned seven (7) targets/goals, one (1) had been fully achieved, three (3) were partially achieved while |", "metadata": {"page": 171, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Opinion Unqualified | nor any initiatives taken by management to recover the debts. \uf0b7 The Corporation had an operating margin of 11%, which is below 15% compared to 9% realized in the previous year 2019/20 representing an increase of 22%. This implies that the Corporation is having a lower proportion of revenues covering expenses rather than profits or income. \uf0b7 The Corporation had a current ratio of 1.4 for the year under review which was below the desirable ratio of 1.5. The low current ratio implies that the Corporation has limited ability to meet short-term obligations without raising external capital. \uf0b7 The Corporation had a debt ratio of 69% as at the end of the financial year under review implying that majority of Corporation assets are financed by debt. |\n|---:|:-------------|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | three (3) were not achieved at all. \uf0b7 Management created an additional position of \u201cPrincipal Director\u201d to oversee the Directorates of Flight operations and Maintenance which is not in the established structure and is contrary to The Civil Aviation Regulations 2014, section 13. \uf0b7 UACC is a statutory corporation that is supposed to undertake procurements in accordance with PPDA Law and its Regulations. I observed that procurements are normally undertaken as and when the aircrafts breakdown and as such did not follow the formal procurement procedures. \uf0b7 UACC signed a contract on 20th April, 2021 with National Enterprise Corporation (NEC) for construction of the UACC HQ offices for a sum of UGX.1.097Bn and the expected project completion date was 19th October, 2021. I observed that unsecured advances of UGX.1.04Bn (95%) of the contract sum had been paid to NEC by closure of the financial year 30th June 2021. Audit inspection carried out on 18th October, 2021 observed that construction works were behind schedule. \uf0b7 UACC to-date does not have an operating Aircraft to do business since most of them had been grounded or not operational under different circumstances. \uf0b7 The Corporation had negative retained earnings/revenue reserves of UGX.24.03Bn as at the end of the financial year. This may affect the entity\u2019s ability to meet future contingencies or investments in growth. | Unnamed: 2 |", "metadata": {"page": 172, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Opinion Unqualified | nor any initiatives taken by management to recover the debts. \uf0b7 The Corporation had an operating margin of 11%, which is below 15% compared to 9% realized in the previous year 2019/20 representing an increase of 22%. This implies that the Corporation is having a lower proportion of revenues covering expenses rather than profits or income. \uf0b7 The Corporation had a current ratio of 1.4 for the year under review which was below the desirable ratio of 1.5. The low current ratio implies that the Corporation has limited ability to meet short-term obligations without raising external capital. \uf0b7 The Corporation had a debt ratio of 69% as at the end of the financial year under review implying that majority of Corporation assets are financed by debt. |\n|---:|-------------:|:--------------------------------------------|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 15 | State House. 2020/21 Opinion Unqualified | \uf0b7 There was a shortfall in NTR collections amounting to UGX.0.573.4bn representing 64%. \uf0b7 I assessed 13 outputs with a total of 45 activities and actual expenditure of UGX.345.4Bn and observed that 9 outputs were fully quantified, 3 outputs were insufficiently quantified while 1 output was not quantified at all. \uf0b7 I further assessed the nine (9) out puts that were fully quantified with a total of 27 activities worth UGX.242.4bn and observed that 6 outputs were fully implemented while 3 outputs were partially implemented. \uf0b7 In compliance with Section 24 of the Public Finance Management Act, 2015 (Classified Expenditure), expenditure of UGX.546,349,392,500 that relates to classified expenditure is to be audited separately and a separate audit report issued. \uf0b7 UGX.116m was budgeted for domestic arrears during the year under audit despite failure to disclose outstanding domestic arrears in the previous years. \uf0b7 A review of the Ministerial policy statement for the financial year 2020/21 revealed that the entity did not prepare a comprehensive vehicle utilisation report for the period as required by Section 15(h)) of the Public Finance and Management Act, 2015, as amended. |\n| 1 | 16 | Office of the President Opinion Unqualified | \uf0b7 The entity had prepared a draft strategic plan which was submitted to align the plan to NDP III upon which the certificate of compliance will be issued. \uf0b7 Out of the budgeted revenue of UGX.525,000,000 for the year 2020/21; UGX.423,827,920 was collected representing performance of 80% of the target. \uf0b7 Out of the total warrants for the financial year of UGX.202,499,917,566, |", "metadata": {"page": 172, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Opinion Unqualified | nor any initiatives taken by management to recover the debts. \uf0b7 The Corporation had an operating margin of 11%, which is below 15% compared to 9% realized in the previous year 2019/20 representing an increase of 22%. This implies that the Corporation is having a lower proportion of revenues covering expenses rather than profits or income. \uf0b7 The Corporation had a current ratio of 1.4 for the year under review which was below the desirable ratio of 1.5. The low current ratio implies that the Corporation has limited ability to meet short-term obligations without raising external capital. \uf0b7 The Corporation had a debt ratio of 69% as at the end of the financial year under review implying that majority of Corporation assets are financed by debt. |\n|---:|:-------------|:-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | UGX.201,682,707,928 was spent by the entity resulting in an unspent balance of UGX.817,209,638 representing absorption level of 99.6%. \uf0b7 I assessed the implementation of all the 19 out puts that were fully quantified with a total of 100 activities worth UGX.92.2 bn. and noted the following: \uf0b7 Twelve (12) outputs with a total of seventy eight (78) activities worth UGX.62.1bn were fully implemented. \uf0b7 Four (4) outputs with a total of fifteen (15) activities worth UGX.16.0bn were partially implemented. \uf0b7 Three (3) outputs with a total of seven (7) activities worth UGX.14.7bn were not implemented at all. \uf0b7 \uf0b7 Out of the planned 27 strategic targets/goals, 23 targets had been fully achieved while 4 were not achieved at all. \uf0b7 Out of the budgeted revenue of UGX.0.52bn for the year 2019/20; only UGX.0.20bn was collected representing performance of only 3.8% of the target. \uf0b7 Out of the total receipts for the financial year of UGX.2.17bn, UGX.2.11bn was spent by the entity resulting in an unspent balance of UGX.5.633bn representing an absorption level of 97.4%. \uf0b7 I assessed a sampled of 19 outputs with a total of 175 activities and actual expenditure of UGX.94Bn which were fully quantified by management. I observed that; 11 outputs with a total of 69 activities worth UGX.77.2Bn were fully implemented. 2 outputs with a total of 21 activities worth UGX.18.5Bn were partially implemented. \uf0b7 I examined supplementary funding received by the Office for COVID 19 interventions and observed anomalies which included under absorption of the funds, failure to quantify activities implemented, inappropriate procurement methods and funds not accounted for. Specifically for management of quarantine centres, I observed that items were procured at varying prices and they were not taken on charge. \uf0b7 Arrears totalling to UGX 30,549,780,185 remained unsettled at close of the year. Further, UGX.28,431,892,310 was provided for settlement of domestic arrears yet domestic arrears brought forward from the prior year were UGX.58,981,672,495. \uf0b7 Shortcomings were observed in the Ministry\u2019s fleet management which included incomplete recording of motor vehicles in the assets register, failure to use motor vehicle logbooks, lack of motor vehicle annual inspections, lack of adequate vehicles for allocation to RDCs, gaps in drivers\u2019 competences and failure to implement board of survey recommendations for disposal of motor vehicles. | Unnamed: 2 |", "metadata": {"page": 173, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Opinion Unqualified | nor any initiatives taken by management to recover the debts. \uf0b7 The Corporation had an operating margin of 11%, which is below 15% compared to 9% realized in the previous year 2019/20 representing an increase of 22%. This implies that the Corporation is having a lower proportion of revenues covering expenses rather than profits or income. \uf0b7 The Corporation had a current ratio of 1.4 for the year under review which was below the desirable ratio of 1.5. The low current ratio implies that the Corporation has limited ability to meet short-term obligations without raising external capital. \uf0b7 The Corporation had a debt ratio of 69% as at the end of the financial year under review implying that majority of Corporation assets are financed by debt. |\n|---:|-------------:|:---------------------------------------------------------------------|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 17 | Ministry of Defence and Veteran Affairs. 2020/21 Opinion Unqualified | \uf0b7 Out of the budgeted revenue of UGX.1.735Bn for the year 2020/21; UGX.1.018Bn was collected representing performance of 59% of the target. \uf0b7 Out of the total warrants for the financial year of UGX.5.316Tn, UGX.5.315Tn was spent by the entity resulting in an unspent balance of UGX.1.244Bn representing absorption level of 99.98%. \uf0b7 All the 13 outputs with a total of 26 activities and expenditure of UGX.2.843Tn sampled for assessment were not quantified to enable assessment of performance. |", "metadata": {"page": 173, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | affected with water levels on Lake Victoria dropping back to normal hence making it difficult for the marine boats to fully utilise the docking area due to shallow waters. I noted that only half of the docking area was utilised contrary to the original plan. \uf0b7 I inspected Magamaga cantonment and observed the following issues: lack of sufficient storage space, land encroachments\u2019, inadequate water supply, poor road network, insufficient lighting system at the store premises, accommodation challenges, need to expand Health centre II to Health centre III and inadequate toilets at the store premises. \uf0b7 I observed inadequate Fuel supply for Air Force training as Air Force is not allocated fuel for operations. but the same fuel allocation for training is used for other operations and yet the trainers have specific performance contracts. \uf0b7 I noted that while there are reserve tanks in Nakasongola and Jinja that were constructed in past regimes, these have never been utilised subjecting management to buying Jet fuel from dealers at the open market pump prices and exorbitant prices. \uf0b7 I inspected Special Forces Command (SFC) and observed creation of 206 brigade SFC without sufficient funding. I noted lack of office furniture, storage space and CCTV cameras. | Unnamed: 2 |\n|---:|:-------------|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | | PUBLIC SECTOR MANAGEMENT SECTOR | |\n| 1 | 1.0 | The New Vision printing and Publishing company Limited 2020/21 Opinion Unqualified | \uf0b7 Because the company\u2019s market capitalisation of UGX 23,715 million was significantly lower than the carrying amount of the company\u2019s net assets of UGX 65,039 million as at 30thJune 2021. In accordance with IAS 36 Impairment of Assets, this impairment indicator triggered impairment testing of the non-current assets of the company. The recoverable cost of UGX 57,866 estimated to be the fair value of the company. \uf0b7 NVPPCL incurred costs relating to a one-off discretionary retirement package comprised of cash and in-kind items to recognise long service to the company by an existing employee. Management measured and recognised costs relating to the retirement package of UGX 1,956 million and reported these as part of staff costs included in administrative expenses in the statement of comprehensive income. \uf0b7 The company had gross trade receivables of UGX 17,265 million (2020: UGX 27,190 million) and expected credit losses of UGX 3,202 million (2020: UGX1,428 million) to which management performed the impairment assessment of trade receivables. \uf0b7 In June 2020, the board resolved to move all staff from permanent employment terms to fixed-term contracts. The phased movement of staff members had commenced by August 2020. However, as at 30th April 2021, there were still two staff maintained on the payroll with payment terms similar to those in their permanent employment contracts. I further noted that these had not signed off the fixed term basis employment contracts. Management indicated that it\u2019s engaging the two concerned staff members for a resolution and contract sign off. \uf0b7 I noted that the board approved changes to estimated useful lives of the different items under property, plant and equipment on 25th June 2020 as part of the approval of the budget; however, these changes were not implemented timely as required by IAS 8 Accounting Policies, Changes in Accounting Estimates. \uf0b7 I reviewed the information system controls of the IT system and noted |", "metadata": {"page": 175, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | affected with water levels on Lake Victoria dropping back to normal hence making it difficult for the marine boats to fully utilise the docking area due to shallow waters. I noted that only half of the docking area was utilised contrary to the original plan. \uf0b7 I inspected Magamaga cantonment and observed the following issues: lack of sufficient storage space, land encroachments\u2019, inadequate water supply, poor road network, insufficient lighting system at the store premises, accommodation challenges, need to expand Health centre II to Health centre III and inadequate toilets at the store premises. \uf0b7 I observed inadequate Fuel supply for Air Force training as Air Force is not allocated fuel for operations. but the same fuel allocation for training is used for other operations and yet the trainers have specific performance contracts. \uf0b7 I noted that while there are reserve tanks in Nakasongola and Jinja that were constructed in past regimes, these have never been utilised subjecting management to buying Jet fuel from dealers at the open market pump prices and exorbitant prices. \uf0b7 I inspected Special Forces Command (SFC) and observed creation of 206 brigade SFC without sufficient funding. I noted lack of office furniture, storage space and CCTV cameras. | Unnamed: 2 |\n|---:|:-------------|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | the following; \uf0b7 Absence of a defined information security management system \uf0b7 Absence of a cybersecurity incident response team \uf0b7 Inadequate security awareness \uf0b7 Vulnerability assessments not performed \uf0b7 Absence of data classification \uf0b7 Inadequate ICT vendor management | Unnamed: 2 |\n| 1 | 2.0 | Markets and Agricultural Trade Improvement Project (MATIP) II 2020/21 Opinion Unqualified | \uf0b7 There was a shortfall in releases from GOU sources of UGX.0.23Bn and donors of UGX.19.763Bn. Furthermore, the project failed to absorb UGX.0.271Bn. \uf0b7 I reviewed 4 out-puts with a total of 16 activities worth UGX.57.7Bn representing 100% of the total expenditure and noted that two (2) outputs with six (6) activities worth UGX.38.6Bn were fully quantified. I further observed two (2) out-puts with ten (10) activities worth UGX.19.1Bn were insufficiently quantified. All the two (2) outputs that were fully quantified were partially implemented. \uf0b7 I observed that there was delayed completion of works on some of the markets and value addition facilities. Two (2) markets were completed by June 2021 however they had not been commissioned and operationalized by September 2021 thus affecting service delivery. \uf0b7 I observed that except for Entebbe market all the other markets lacked a revenue management information system to facilitate revenue management. This was also the case for the seven (7) MATIP 1 markets. I further observed that the allocation guidelines favor leaseholders who pay very little in terms of ground rent to the Municipalities. This affects revenue mobilization and impairs self-reliance and sustainability of these markets. \uf0b7 The beneficiary Municipalities have failed to put in place a market maintenance fund which would facilitate routine maintenance of the completed structures. This was also the case for the MATIP 1 markets. In addition, all the markets redeveloped under MATIP 1 and 2 are not insured against risks such as; fire outbreaks, electrical failures and unforeseen disasters. |", "metadata": {"page": 176, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | affected with water levels on Lake Victoria dropping back to normal hence making it difficult for the marine boats to fully utilise the docking area due to shallow waters. I noted that only half of the docking area was utilised contrary to the original plan. \uf0b7 I inspected Magamaga cantonment and observed the following issues: lack of sufficient storage space, land encroachments\u2019, inadequate water supply, poor road network, insufficient lighting system at the store premises, accommodation challenges, need to expand Health centre II to Health centre III and inadequate toilets at the store premises. \uf0b7 I observed inadequate Fuel supply for Air Force training as Air Force is not allocated fuel for operations. but the same fuel allocation for training is used for other operations and yet the trainers have specific performance contracts. \uf0b7 I noted that while there are reserve tanks in Nakasongola and Jinja that were constructed in past regimes, these have never been utilised subjecting management to buying Jet fuel from dealers at the open market pump prices and exorbitant prices. \uf0b7 I inspected Special Forces Command (SFC) and observed creation of 206 brigade SFC without sufficient funding. I noted lack of office furniture, storage space and CCTV cameras. | Unnamed: 2 |\n|---:|-------------:|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 3 | Ministry of Public Service 2020/21 Opinion Unqualified | \uf0b7 The Ministry\u2019s five (5) year strategic plan was certified by NPA, confirming that it is aligned to the NDP III. \uf0b7 The Ministry collected only 57.7% of its NTR target for the year and had a shortfall in government funding of UGX.9.7Bn, which is 32.4% of the budget. The Ministry failed to absorb UGX.1.1Bn, which is 5.5% of what was released. \uf0b7 The Ministry had off-budget financing of UGX.0.529Bn, which was never declared to the PSST for re-voting. \uf0b7 Out of the thirty-five (35) outputs assessed, eight (8) were fully quantified, while five (5) were insufficiently quantified to facilitate performance measurement. The balance of two (2) outputs were not included in the Ministerial Policy Statement submitted to Parliament. \uf0b7 Out of the eight (8) outputs that were fully quantified, seven (7) outputs were partially implemented, while one (1) output was not implemented at all as a result of the disruptions caused by restrictions imposed due to |", "metadata": {"page": 176, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | affected with water levels on Lake Victoria dropping back to normal hence making it difficult for the marine boats to fully utilise the docking area due to shallow waters. I noted that only half of the docking area was utilised contrary to the original plan. \uf0b7 I inspected Magamaga cantonment and observed the following issues: lack of sufficient storage space, land encroachments\u2019, inadequate water supply, poor road network, insufficient lighting system at the store premises, accommodation challenges, need to expand Health centre II to Health centre III and inadequate toilets at the store premises. \uf0b7 I observed inadequate Fuel supply for Air Force training as Air Force is not allocated fuel for operations. but the same fuel allocation for training is used for other operations and yet the trainers have specific performance contracts. \uf0b7 I noted that while there are reserve tanks in Nakasongola and Jinja that were constructed in past regimes, these have never been utilised subjecting management to buying Jet fuel from dealers at the open market pump prices and exorbitant prices. \uf0b7 I inspected Special Forces Command (SFC) and observed creation of 206 brigade SFC without sufficient funding. I noted lack of office furniture, storage space and CCTV cameras. | Unnamed: 2 |\n|---:|:-------------|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:-------------|\n| 0 | Unnamed: 0 | Covid-19. \uf0b7 The Ministry delayed submitting all its quarterly performance reports to MoFPED, and similarly, I did not find evidence to confirm that monitoring plans and reports were prepared. \uf0b7 I observed that a number of government entities had not been filling positions of persons who had been granted leave without pay, which resulted in manpower gaps in these entities affecting their efficiency in delivering services to the citizens. \uf0b7 The Ministry failed to utilise up to UGX.6.5Bn of the total salary budget of UGX.17.9Bn provided by MoFPED over the past four (4) years. \uf0b7 The Ministry had outstanding domestic arrears of UGX 0.86Bn by the end of the financial year. \uf0b7 The Ministry had not put in place adequate guidance regarding the number of boards on which a civil servant is allowed to serve at any one time. This resulted in some civil servants serving on more than three (3) boards, which affects the time they allocate to their substantive jobs. \uf0b7 I noted some challenges in the management of recruitments into the service, such as; irregular employment of staff by Accounting Officers and the absence of a policy for the recruitment and selection of temporary staff. \uf0b7 I noted irregularities in the management of leave without pay for civil servants, which included; absence of a complete register of all civil servants who were away on leave without pay and irregular grant of leave without pay. \uf0b7 I noted irregularities in overseas training for civil servants, such as the absence of a register of all civil servants who were away on training and some Officers who went abroad for training programmes offered by the different local universities in Uganda. | Unnamed: 2 |", "metadata": {"page": 177, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | affected with water levels on Lake Victoria dropping back to normal hence making it difficult for the marine boats to fully utilise the docking area due to shallow waters. I noted that only half of the docking area was utilised contrary to the original plan. \uf0b7 I inspected Magamaga cantonment and observed the following issues: lack of sufficient storage space, land encroachments\u2019, inadequate water supply, poor road network, insufficient lighting system at the store premises, accommodation challenges, need to expand Health centre II to Health centre III and inadequate toilets at the store premises. \uf0b7 I observed inadequate Fuel supply for Air Force training as Air Force is not allocated fuel for operations. but the same fuel allocation for training is used for other operations and yet the trainers have specific performance contracts. \uf0b7 I noted that while there are reserve tanks in Nakasongola and Jinja that were constructed in past regimes, these have never been utilised subjecting management to buying Jet fuel from dealers at the open market pump prices and exorbitant prices. \uf0b7 I inspected Special Forces Command (SFC) and observed creation of 206 brigade SFC without sufficient funding. I noted lack of office furniture, storage space and CCTV cameras. | Unnamed: 2 |\n|---:|-------------:|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 3 | Local Government Finance Commission 2020/21 Opinion Unqualified | \uf0b7 I noted that the Commission did not have an approved strategic plan that was aligned to NDP III by the time of audit. The draft plan prepared by the entity had not been certified by NPA. \uf0b7 The Commission collected only 0.03% of its NTR target for the year and had a shortfall in government funding of 0.04Bn which is 0.75% of the budget. The Commission absorbed all the funds that were released. \uf0b7 Out of the five (5) out-puts assessed, one (1) output with 0.115 Bn was fully quantified, while four (4) outputs with 4.01Bn were insufficiently quantified. The one (1) output that was fully quantified was partially implemented. \uf0b7 The Commission neither prepared annual budget monitoring plans nor submitted quarterly budget monitoring reports. The Commission also failed to submit all its quarterly budget performance reports in time. \uf0b7 The Commission failed to coordinate the automation of revenue management systems. There are currently four (4) revenue management systems used by various Local Governments which are implemented in a disjointed and uncoordinated manner. This has resulted in duplication of activities associated with running these systems thus affecting service delivery. \uf0b7 The Commission received UGX.182,000,000 as budget support to undertake physical decentralization and service delivery. However only UGX.31,241,000 was absorbed by the Commission which significantly |", "metadata": {"page": 177, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | affected with water levels on Lake Victoria dropping back to normal hence making it difficult for the marine boats to fully utilise the docking area due to shallow waters. I noted that only half of the docking area was utilised contrary to the original plan. \uf0b7 I inspected Magamaga cantonment and observed the following issues: lack of sufficient storage space, land encroachments\u2019, inadequate water supply, poor road network, insufficient lighting system at the store premises, accommodation challenges, need to expand Health centre II to Health centre III and inadequate toilets at the store premises. \uf0b7 I observed inadequate Fuel supply for Air Force training as Air Force is not allocated fuel for operations. but the same fuel allocation for training is used for other operations and yet the trainers have specific performance contracts. \uf0b7 I noted that while there are reserve tanks in Nakasongola and Jinja that were constructed in past regimes, these have never been utilised subjecting management to buying Jet fuel from dealers at the open market pump prices and exorbitant prices. \uf0b7 I inspected Special Forces Command (SFC) and observed creation of 206 brigade SFC without sufficient funding. I noted lack of office furniture, storage space and CCTV cameras. | Unnamed: 2 |\n|---:|:-------------|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | affected service delivery. \uf0b7 I noted that by 30th June 2021 the Commission had accumulated domestic arrears of UGX.101,473,991. | Unnamed: 2 |\n| 1 | 4.0 | City Wide Inclusive Sanitation (CWIS) 2020/21 Opinion Unqualified | \uf0b7 I observed that the program work plans and budgets were not sent to parliament for formal approval through the KCCA Ministerial Policy Statements \uf0b7 The project budgeted to receive donor financing of USD 1.2M for the year under review; however, only USD 1M was received during the year. Also, the project had expected to receive USD 0.2M as GoU counterpart funds; but only USD 0.17 was received. \uf0b7 The project under absorbed funds totaling USD 1,329,522, which is 62% of the funds that were available to the project for implementation of activities \uf0b7 Out of the sixty-seven (67) activities assessed, forty-seven activities worth USD 609,563 were fully quantified, while twenty (20) activities worth USD 199,314 were insufficiently quantified. Out of the forty-seven (47) activities that were quantified, twenty (20) 43% activities worth USD 502,564 were fully implemented, seventeen (17) 36% activities worth USD 99,664 were partially implemented, while ten (10) 21% activities worth USD 7,335 were never implemented at all. \uf0b7 The project accumulated arrears amounting to USD 583,742 during the year under review. \uf0b7 The project's progress towards achieving project targets or outcomes was found unsatisfactory in some areas. The performance in some cases was below 50%, while in other areas, no activities had been implemented. This affects service delivery. \uf0b7 The project irregularly recruited providers that KCCA or NEMA had not licensed. |", "metadata": {"page": 178, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | affected with water levels on Lake Victoria dropping back to normal hence making it difficult for the marine boats to fully utilise the docking area due to shallow waters. I noted that only half of the docking area was utilised contrary to the original plan. \uf0b7 I inspected Magamaga cantonment and observed the following issues: lack of sufficient storage space, land encroachments\u2019, inadequate water supply, poor road network, insufficient lighting system at the store premises, accommodation challenges, need to expand Health centre II to Health centre III and inadequate toilets at the store premises. \uf0b7 I observed inadequate Fuel supply for Air Force training as Air Force is not allocated fuel for operations. but the same fuel allocation for training is used for other operations and yet the trainers have specific performance contracts. \uf0b7 I noted that while there are reserve tanks in Nakasongola and Jinja that were constructed in past regimes, these have never been utilised subjecting management to buying Jet fuel from dealers at the open market pump prices and exorbitant prices. \uf0b7 I inspected Special Forces Command (SFC) and observed creation of 206 brigade SFC without sufficient funding. I noted lack of office furniture, storage space and CCTV cameras. | Unnamed: 2 |\n|---:|-------------:|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 5 | Development Response to Displacement Impacts Project 2020/21 Opinion Unqualified | \uf0b7 The Project budgeted to receive UGX.233Bn out of which UGX.185Bn was received representing 79% of the budget leaving a balance of UGX.48.1Bn as unreleased. All the funds that were released were absorbed. \uf0b7 All the four (4) outputs with a total of thirteen (13) activities worth UGX.185Bn were fully quantified to enable assessment of performance. Out of this two (2) out puts with six (6) activities worth UGX.9.86Bn were fully implemented while the balance of two (2) out puts with seven (&) activities worth UGX.175Bn were partially implemented. \uf0b7 I noted that the project did not utilise grant funds totalling to UGX UGX.9.6Bn. \uf0b7 The project had not achieved its thre e(3) year targets in four (4) areas with performance in some cases being as low as 0% in some areas. |\n| 1 | 6 | National Planning Authority 2020/21 Opinion Unqualified | \uf0b7 The Authority prepared a new five (5) year strategic plan which was certified as aligned to NDP III. \uf0b7 There was shortfall in revenue collection of up to 100% of the NTR target while government receipts were less than anticipated by UGX.1.65Bn. All the funds that were disbursed were fully absorbed. \uf0b7 NPA received off-budget financing to a tune of UGX.15.27Bn, out of which UGX.11.4Bn was declared to Treasury and appropriated. The balance of UGX.3.87Bn was not declared to Treasury and therefore, not |", "metadata": {"page": 178, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | affected with water levels on Lake Victoria dropping back to normal hence making it difficult for the marine boats to fully utilise the docking area due to shallow waters. I noted that only half of the docking area was utilised contrary to the original plan. \uf0b7 I inspected Magamaga cantonment and observed the following issues: lack of sufficient storage space, land encroachments\u2019, inadequate water supply, poor road network, insufficient lighting system at the store premises, accommodation challenges, need to expand Health centre II to Health centre III and inadequate toilets at the store premises. \uf0b7 I observed inadequate Fuel supply for Air Force training as Air Force is not allocated fuel for operations. but the same fuel allocation for training is used for other operations and yet the trainers have specific performance contracts. \uf0b7 I noted that while there are reserve tanks in Nakasongola and Jinja that were constructed in past regimes, these have never been utilised subjecting management to buying Jet fuel from dealers at the open market pump prices and exorbitant prices. \uf0b7 I inspected Special Forces Command (SFC) and observed creation of 206 brigade SFC without sufficient funding. I noted lack of office furniture, storage space and CCTV cameras. | Unnamed: 2 |\n|---:|:-------------|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:-------------|\n| 0 | Unnamed: 0 | appropriated to the entity by Parliament. These funds were received directly from development partners for undertaking activities not budgeted for. \uf0b7 I noted that out of the 12 out-puts sampled for review, 6 (50%) were fully quantified, 5 (41%) were insufficiently quantified and 1 (9%) was not quantified at all making it impossible to measure performance. Out of the 6 out puts that were fully quantified, none was fully implemented, 4 (66%) were partially implemented while 2 (34%) were not implemented. \uf0b7 All the quarterly budget performance reports were submitted late by the Authority. \uf0b7 I noted cases of delays in approval of MDA and LG strategic plans. In addition to this seventy three (73) entities had not submitted their strategic plans for review and certification by the Authority. \uf0b7 The Authority had not undertaken capacity building of planners at both local and national level which affected the capacity of the planners to implement, monitor and report on the performance of the budgets in their respective entities. \uf0b7 I observed shortcomings in government\u2019s readiness to implement the new programme approach to planning and budgeting which included; non-alignment of the accounting and oversight processes to the new programme planning framework, non-alignment to the statistical and data collection systems to the new programme planning framework and non- functional programme working groups among others. \uf0b7 I also noted that the Authority had not realigned the development planning regulations from the sector approach to planning and budgeting to the new programme approach of planning and budgeting. | Unnamed: 2 |", "metadata": {"page": 179, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | affected with water levels on Lake Victoria dropping back to normal hence making it difficult for the marine boats to fully utilise the docking area due to shallow waters. I noted that only half of the docking area was utilised contrary to the original plan. \uf0b7 I inspected Magamaga cantonment and observed the following issues: lack of sufficient storage space, land encroachments\u2019, inadequate water supply, poor road network, insufficient lighting system at the store premises, accommodation challenges, need to expand Health centre II to Health centre III and inadequate toilets at the store premises. \uf0b7 I observed inadequate Fuel supply for Air Force training as Air Force is not allocated fuel for operations. but the same fuel allocation for training is used for other operations and yet the trainers have specific performance contracts. \uf0b7 I noted that while there are reserve tanks in Nakasongola and Jinja that were constructed in past regimes, these have never been utilised subjecting management to buying Jet fuel from dealers at the open market pump prices and exorbitant prices. \uf0b7 I inspected Special Forces Command (SFC) and observed creation of 206 brigade SFC without sufficient funding. I noted lack of office furniture, storage space and CCTV cameras. | Unnamed: 2 |\n|---:|-------------:|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 7 | Public Service Commission 2020/21 Opinion Unqualified | \uf0b7 Although the Commission had come up with a strategic plan aligned to NDP III, this plan had not been approved and certified by NPA as required by the planning regulations. \uf0b7 The Commission did collect NTR for the year despite having an NTR budget of UGX.2.7Bn. The Commission received 99% of its budget from Treasury and absorbed all the funds. \uf0b7 Out of the thirteen out-puts assessed, two (2) outputs worth 0.88Bn were fully quantified, six (6) worth 6.72Bn were partially quantified while five (5) outputs worth 1.87Bn were not quantified at all. The two (2) out-puts that were quantified were all partially implemented. \uf0b7 All the quarterly performance reports were submitted late by the Commission and there were no budget monitoring reports prepared by the Accounting Officer. \uf0b7 The Commission does not participate in the recruitment of foreign service officers in Uganda\u2019s missions and embassies abroad. \uf0b7 The Commission had outstanding domestic arrears amounting to UGX.48.768,099. \uf0b7 The Commission did not deduct PAYE from gratuity payments amounting to UGX.1Bn for its Commission members. |\n| 1 | 8 | Office of The Prime Minister 2020/21 Opinion Unqualified | \uf0b7 I noted that OPM strategic plan had not been approved by NPA as aligned to NDP III. \uf0b7 There was under-collection of NTR by UGX.0.732Bn, which is 30% of the NTR budget, while shortfalls in Central Government releases were UGX.19.26Bn, which is 13.8% of the approved budget for central |", "metadata": {"page": 179, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | affected with water levels on Lake Victoria dropping back to normal hence making it difficult for the marine boats to fully utilise the docking area due to shallow waters. I noted that only half of the docking area was utilised contrary to the original plan. \uf0b7 I inspected Magamaga cantonment and observed the following issues: lack of sufficient storage space, land encroachments\u2019, inadequate water supply, poor road network, insufficient lighting system at the store premises, accommodation challenges, need to expand Health centre II to Health centre III and inadequate toilets at the store premises. \uf0b7 I observed inadequate Fuel supply for Air Force training as Air Force is not allocated fuel for operations. but the same fuel allocation for training is used for other operations and yet the trainers have specific performance contracts. \uf0b7 I noted that while there are reserve tanks in Nakasongola and Jinja that were constructed in past regimes, these have never been utilised subjecting management to buying Jet fuel from dealers at the open market pump prices and exorbitant prices. \uf0b7 I inspected Special Forces Command (SFC) and observed creation of 206 brigade SFC without sufficient funding. I noted lack of office furniture, storage space and CCTV cameras. | Unnamed: 2 |\n|---:|:-------------|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:-------------|\n| 0 | Unnamed: 0 | government releases. OPM had unspent balances of UGX.2.5Bn, which were returned to the consolidated fund. \uf0b7 OPM received off-budget financing amounting to UGX.53.452Bn, which Parliament never appropriated. \uf0b7 I noted that out of the thirty-two (32) outputs sampled for review, twenty-nine (29) (91%) were fully quantified, one (1) (3%) was partially quantified, and 2 (6%) were not quantified at all which made it impossible to measure performance. Out of the twenty-nine (29) outputs that were fully quantified, four (4) outputs (14%) were fully implemented, while twenty-five (25) outputs (86%) were partially implemented. \uf0b7 OPM did not prepare and submit annual budget monitoring plans and reports while submission of all the quarterly performance reports were delayed. \uf0b7 I observed service delivery challenges such as delayed completion of works, failure to fund micro-projects and non-functional District Disaster Management Committees. \uf0b7 I noted that OPM received UGX.0.25Bn as part of the COVID-19 relief interventions budget. These funds were all absorbed and used for the intended purpose. \uf0b7 I noted delayed resettlement of encroachers in the Apaa game reserve land. \uf0b7 OPM did not have a complete database of all entitled beneficiaries and those paid since 2008 under the Akasiimo gratuity scheme. | Unnamed: 2 |", "metadata": {"page": 180, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | affected with water levels on Lake Victoria dropping back to normal hence making it difficult for the marine boats to fully utilise the docking area due to shallow waters. I noted that only half of the docking area was utilised contrary to the original plan. \uf0b7 I inspected Magamaga cantonment and observed the following issues: lack of sufficient storage space, land encroachments\u2019, inadequate water supply, poor road network, insufficient lighting system at the store premises, accommodation challenges, need to expand Health centre II to Health centre III and inadequate toilets at the store premises. \uf0b7 I observed inadequate Fuel supply for Air Force training as Air Force is not allocated fuel for operations. but the same fuel allocation for training is used for other operations and yet the trainers have specific performance contracts. \uf0b7 I noted that while there are reserve tanks in Nakasongola and Jinja that were constructed in past regimes, these have never been utilised subjecting management to buying Jet fuel from dealers at the open market pump prices and exorbitant prices. \uf0b7 I inspected Special Forces Command (SFC) and observed creation of 206 brigade SFC without sufficient funding. I noted lack of office furniture, storage space and CCTV cameras. | Unnamed: 2 |\n|---:|-------------:|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 9 | Northern Uganda Social Action Fund (NUSAF 3) 2020/21 Opinion Unqualified | \uf0b7 This was the last year of implementation of the NUSAF 3 Project. An independent impact evaluation undertaken by Makerere University Business School highlighted achievements by the project, which included; increased income for beneficiary households, improved resilience and vulnerability to shocks, improved household welfare and progress out of poverty, improved savings and investments, increased production and income earnings and increased household food security and consumption for a number of beneficiaries. \uf0b7 uring FY2020/2021, the project budgeted to receive UGX.38.7Bn, which was all received. Similarly, the project absorbed all this money representing 100% performance. \uf0b7 All the three (3) outputs with nine (9) activities worth UGX.38.8Bn sampled for verification were fully quantified. Out of these, two (2) outputs with five (5) activities worth UGX.26.72Bn were fully implemented while one (1) output with four (4) activities worth UGX.12.08Bn was partially implemented. \uf0b7 The project advanced funds for the construction of coffee shops in Arua, Gulu, Lira, Mbale and Tororo. At the time of audit, works were not complete in Lira, Arua and Gulu. The coffee shop in Mbale was not fully operational. \uf0b7 During my inspection, I noted that the beneficiary communities and districts were having sustainability challenges in maintaining project investments three (3) months after the closure of the project. These included poor maintenance of roads, low savings by farmers, among others. \uf0b7 Ownership of two (2) project vehicles had not reverted to government three (3) months after the closure of the project. |", "metadata": {"page": 180, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 10 | Project for The Restoration of Livelihoods in the Northern Region (PRELNOR) 2020/21 Opinion Unqualified | \uf0b7 The project had a shortfall of UGX.26Bn, which is 52% and UGX.3.27Bn, which is 67% of the budget in external and government funding, respectively. The project absorbed UGX.25.65Bn, which is 88% of all the funds that were released. \uf0b7 All the one hundred seven (107) outputs assessed were fully quantified. Out of the one hundred seven (107), sixty-eight (68) were fully implemented, ten (10) were partially implemented, and twenty-nine (29) were never implemented. \uf0b7 I assessed the progress of project activities and noted that Batch A community access roads were incomplete. Similarly, the procurement process for Batch B community roads and the bulk and satellite markets had delayed, affecting service delivery. \uf0b7 I noted that the project faces sustainability challenges such as failure to maintain completed roads by the districts, which threatened to erode the benefits realised by the project. |\n|---:|-----:|:----------------------------------------------------------------------------------------------------------|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 11 | Ministry of Local Government 2020/21 Opinion Unqualified | \uf0b7 The Ministry\u2019s strategic plan (2020/2021 to 2025/2026) had not been certified by NPA to confirm that it was well aligned to NDP III at the time of the audit. \uf0b7 There was a shortfall in NTR collection of up to 89.9% of the target, while government receipts were less than anticipated by UGX.3.64Bn. The Ministry had unspent balances of UGX.3.94Bn by year-end. \uf0b7 I noted that out of the thirty-nine (39) outputs sampled for review, fifteen (15) (38%) were fully quantified, twenty (20) (51%) were insufficiently quantified, and four (4) (10%) were not quantified at all. Out of the fifteen (15) outputs that were fully quantified, one (1) output was fully implemented, while fourteen (14) outputs were partially implemented. \uf0b7 All the quarterly performance reports were submitted after the deadline for submission. \uf0b7 2,127 motorcycles and 77,831 bicycles worth UGX.18.9Bn and UGX.24.6Bn respectively had not yet been delivered by the time of audit in November 2021, although they were due for delivery in September 2021. \uf0b7 The Ministry delayed disbursing funds for budget support to Local Governments. UGX.22.1Bn to various Local Governments was disbursed in the last two weeks of June 2021. \uf0b7 The Ministry delayed disbursing start-up costs of UGX.6.79Bn to 125 Local Governments. Most of the funds were transferred the last two weeks of June and, in some cases, as late as 29th June 2021. \uf0b7 The Ministry received UGX.2.86Bn for settlement of domestic arrears as part of the COVID 19 interventions, which was all absorbed and used to settle domestic arrears. \uf0b7 The Ministry had outstanding domestic arrears of UGX.33Bn as at June 2021. |\n| 1 | 12 | Kampala Capital City Authority (KCCA). 2020/21 Opinion Unqualified | \uf0b7 I noted that the Authority\u2019s strategic plan had not been certified by NPA by the time of audit, contrary to the Planning Regulations. \uf0b7 The Authority received 99% of its budget from Government, and NTR performed above expectation by 21%. The Authority had unspent balances of UGX.7.64Bn, which was returned to the consolidated fund. \uf0b7 I noted that the Authority had unremitted off-budget financing of |", "metadata": {"page": 181, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 10 | Project for The Restoration of Livelihoods in the Northern Region (PRELNOR) 2020/21 Opinion Unqualified | \uf0b7 The project had a shortfall of UGX.26Bn, which is 52% and UGX.3.27Bn, which is 67% of the budget in external and government funding, respectively. The project absorbed UGX.25.65Bn, which is 88% of all the funds that were released. \uf0b7 All the one hundred seven (107) outputs assessed were fully quantified. Out of the one hundred seven (107), sixty-eight (68) were fully implemented, ten (10) were partially implemented, and twenty-nine (29) were never implemented. \uf0b7 I assessed the progress of project activities and noted that Batch A community access roads were incomplete. Similarly, the procurement process for Batch B community roads and the bulk and satellite markets had delayed, affecting service delivery. \uf0b7 I noted that the project faces sustainability challenges such as failure to maintain completed roads by the districts, which threatened to erode the benefits realised by the project. |\n|---:|:-----------|:------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | UGX.18.97Bn, which Parliament never appropriated. \uf0b7 I noted that out of the thirty-nine (39) outputs sampled for review, two (2) outputs (5%) were fully quantified, two (2) outputs (5%) were partially quantified, and thirty-five (35) outputs (90%) were not quantified at all which made it impossible to measure performance. The two (2) outputs that were fully quantified were all fully implemented. \uf0b7 All performance reports were submitted after the deadline. \uf0b7 I noted that the Authority had not developed regulations to guide the collection of outdoor advertising fees, which hindered the collection of NTR. I further noted that the Authority did not undertake regular updates of the valuation rolls. \uf0b7 The Authority has an unserviceable long-term liability of UGX.42,570,448,999 in addition to accumulated domestic arrears of UGX.62,477,592,377 as at 30th June 2021. \uf0b7 The Authority did not remit statutory deductions to URA and NSSF amounting to UGX.1.86Bn. \uf0b7 The Authority incurred avoidable expenditure of UGX.7.8Bn as interest due to delayed site handover for civil works constructions. \uf0b7 noted that the Authority had not adopted the Computerized Government Financial Management Information Systems (GFMIS) for management of its inventories as required by the Treasury Instructions. | Unnamed: 2 |\n| 1 | 13.0 | Kampala Institutional and Infrastructure Development Project (KIIDP). 2020/21 Opinion Unqualified | \uf0b7 The Project budgeted to receive UGX.8.7Bn from GOU out of which UGX.1.9Bn was released representing 21.8% of the budget leaving a balance of UGX.6.8Bn as unreleased. Similarly, the project budgeted to receive UGX.139.7Bn from World Bank however only UGX.125.2Bn (90%) was availed. \uf0b7 UGX.49.9Bn remained un-utilized at the end of the financial year. \uf0b7 Out of the four (4) outputs reviewed, only one (1) output (25%) was fully quantified. Three (3) outputs were not quantified at all. I observed that management did not prepare performance reports that show the status of implementation of planned outputs. \uf0b7 I noted that there was slow progress of works, delayed relocation of utilities and delayed land aquistion which resulted in delayed service delivery. \uf0b7 I also noted that UGX.1,323,171,260 that was garnished had not yet been refunded by Government through KCCA. \uf0b7 I noted that ownership of one hundred forty-seven (147) pieces of land on which project roads and drainages had been constructed had not yet been transferred to KCCA. |\n| 2 | | PUBLIC ADMINISTRATION SECTOR | \uf0b7 |", "metadata": {"page": 182, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 10 | Project for The Restoration of Livelihoods in the Northern Region (PRELNOR) 2020/21 Opinion Unqualified | \uf0b7 The project had a shortfall of UGX.26Bn, which is 52% and UGX.3.27Bn, which is 67% of the budget in external and government funding, respectively. The project absorbed UGX.25.65Bn, which is 88% of all the funds that were released. \uf0b7 All the one hundred seven (107) outputs assessed were fully quantified. Out of the one hundred seven (107), sixty-eight (68) were fully implemented, ten (10) were partially implemented, and twenty-nine (29) were never implemented. \uf0b7 I assessed the progress of project activities and noted that Batch A community access roads were incomplete. Similarly, the procurement process for Batch B community roads and the bulk and satellite markets had delayed, affecting service delivery. \uf0b7 I noted that the project faces sustainability challenges such as failure to maintain completed roads by the districts, which threatened to erode the benefits realised by the project. |\n|---:|-----:|:----------------------------------------------------------------------------------------------------------|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 1 | Uganda Embassy in Abu Dhabi. 2019/20 Opinion Unqualified | \uf0b7 Out of the planned 10 strategic targets/goals, 4 targets were fully achieved, 5 targets were partially achieved and 1 was not achieved at all. \uf0b7 There was a shortfall in NTR collections amounting to UGX.1.544Bn representing 1.66% performance. \uf0b7 I sampled 4 outputs with a total of 8 activities and actual expenditure of UGX.5.376Bn and observed that 3 outputs with a total of 7 activities and expenditure worth UGX.5.31Bn were fully quantified while 1 output with 1 activity and expenditure worth UGX 0.06Bn was not quantified. I further |", "metadata": {"page": 182, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 10 | Project for The Restoration of Livelihoods in the Northern Region (PRELNOR) 2020/21 Opinion Unqualified | \uf0b7 The project had a shortfall of UGX.26Bn, which is 52% and UGX.3.27Bn, which is 67% of the budget in external and government funding, respectively. The project absorbed UGX.25.65Bn, which is 88% of all the funds that were released. \uf0b7 All the one hundred seven (107) outputs assessed were fully quantified. Out of the one hundred seven (107), sixty-eight (68) were fully implemented, ten (10) were partially implemented, and twenty-nine (29) were never implemented. \uf0b7 I assessed the progress of project activities and noted that Batch A community access roads were incomplete. Similarly, the procurement process for Batch B community roads and the bulk and satellite markets had delayed, affecting service delivery. \uf0b7 I noted that the project faces sustainability challenges such as failure to maintain completed roads by the districts, which threatened to erode the benefits realised by the project. |\n|---:|:-----------|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | observed that none of the outputs were fully implemented. \uf0b7 The Mission did not prepare and submit the annual monitoring plans to MoFPED and NPA contrary to the requirement of paragraph 58 of the Budget Execution Circular for 2019/2020. I also noted that the Mission submitted performance reports for Q1, Q2, Q3 and Q4 after the elapse of the deadline given for submission of the reports. \uf0b7 The Mission had total collections including balance brought forward from previous year of UGX.58,817,501 out of which UGX.37,898,755 had been transferred to the Treasury for onward transfer to the Consolidated Fund leaving a balance UGX. 20,918,746 not remitted. \uf0b7 The Mission paid 73,400.00 AED (equivalent to UGX.73,326,600) in respect of education allowances direct to its officials instead of their respective educational institutions or schools contrary to Section (E - e) Paragraphs 19 and 20 of the Public Service Standing Orders 2010. \uf0b7 The Mission paid medical refunds to its staff amounting to 8,540.9 AED (equivalent to UGX.8,531,460) contrary to Section M (m-a) (14) of the Public Service Standing Orders, 2010. \uf0b7 The Mission has an approved staff structure of 4 staff positions out of which 3 (75%) were filled leaving 1 (25%) vacant. | Unnamed: 2 |", "metadata": {"page": 183, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 10 | Project for The Restoration of Livelihoods in the Northern Region (PRELNOR) 2020/21 Opinion Unqualified | \uf0b7 The project had a shortfall of UGX.26Bn, which is 52% and UGX.3.27Bn, which is 67% of the budget in external and government funding, respectively. The project absorbed UGX.25.65Bn, which is 88% of all the funds that were released. \uf0b7 All the one hundred seven (107) outputs assessed were fully quantified. Out of the one hundred seven (107), sixty-eight (68) were fully implemented, ten (10) were partially implemented, and twenty-nine (29) were never implemented. \uf0b7 I assessed the progress of project activities and noted that Batch A community access roads were incomplete. Similarly, the procurement process for Batch B community roads and the bulk and satellite markets had delayed, affecting service delivery. \uf0b7 I noted that the project faces sustainability challenges such as failure to maintain completed roads by the districts, which threatened to erode the benefits realised by the project. |\n|---:|-----:|:----------------------------------------------------------------------------------------------------------|:------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 2 | Uganda Embassy in Abuja, 2019/20 Opinion Qualified | \uf0b7 Out of the planned 9 strategic targets/goals, no target was fully achieved, 4 targets were partially achieved and 5 targets were not achieved at all. \uf0b7 There was a shortfall in NTR collections amounting to UGX.1.926Bn representing 8% performance. \uf0b7 Out of the total receipts for the financial year of UGX.2.821Bn, UGX.2.901Bn was spent by the entity resulting in an excess expenditure of UGX.0.081Bn representing an absorption level of 102.8%. \uf0b7 I sampled 3 outputs with a total of 7 activities and actual expenditure of UGX.2.901Bn and observed that all the outputs were fully quantified. I further observed that out of 7 activities, 4 activities were partially implemented while 3 activities remained unimplemented. \uf0b7 The entity did not prepare and submit the annual monitoring plans to MoFPED and NPA contrary to the requirement of paragraph 58 of the Budget Execution Circular for 2019/2020. I also noted that the Mission submitted performance reports for Q1, Q2, Q3 and Q4 after the elapse of the deadline given for submission of the reports. \uf0b7 The Mission paid NGN.4,524,060 (equivalent to UGX.43,204,725) in respect of education allowances direct to its officials instead of their respective educational institutions or schools contrary to Section (E - e) Paragraphs 19 and 20 of the Public Service Standing Orders 2010. \uf0b7 The Mission paid medical refunds to its staff amounting to NGN.2,418,559 (equivalent to UGX.23,097,233) contrary to Section M (m-a) (14) of the Public Service Standing Orders, 2010. \uf0b7 The Mission has an approved staff structure of 5 staff positions out of which 4 (80%) were filled leaving 1 (20%) vacant. |\n| 1 | 3 | Uganda Embassy in Algeria 2019/20 Opinion Unqualified | \uf0b7 All the planned 7 strategic targets/goals in the Mission charter were partially achieved. \uf0b7 There was a shortfall in NTR collections amounting to UGX.2.078Bn representing 0.5% performance. \uf0b7 Out of the total receipts for the financial year of UGX.4.16Bn, UGX.3.81Bn |", "metadata": {"page": 183, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 10 | Project for The Restoration of Livelihoods in the Northern Region (PRELNOR) 2020/21 Opinion Unqualified | \uf0b7 The project had a shortfall of UGX.26Bn, which is 52% and UGX.3.27Bn, which is 67% of the budget in external and government funding, respectively. The project absorbed UGX.25.65Bn, which is 88% of all the funds that were released. \uf0b7 All the one hundred seven (107) outputs assessed were fully quantified. Out of the one hundred seven (107), sixty-eight (68) were fully implemented, ten (10) were partially implemented, and twenty-nine (29) were never implemented. \uf0b7 I assessed the progress of project activities and noted that Batch A community access roads were incomplete. Similarly, the procurement process for Batch B community roads and the bulk and satellite markets had delayed, affecting service delivery. \uf0b7 I noted that the project faces sustainability challenges such as failure to maintain completed roads by the districts, which threatened to erode the benefits realised by the project. |\n|---:|:-----------|:-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | was spent by the entity resulting in an unspent balance of UGX.0.35Bn representing an absorption level of 91.5%. \uf0b7 I sampled 5 outputs with a total of 16 activities and actual expenditure of UGX.3.89Bn and observed that 1 output with a total of 6 activities and expenditure worth UGX.1.14Bn was fully quantified, 2 outputs with a total of 8 activities and expenditure worth UGX.2.47Bn were insufficiently quantified while 2 outputs with 2 activities and expenditure worth UGX.0.28Bn were not quantified at all. \uf0b7 Out of 6 activities planned, only 2 were fully implemented (33%) while 1 activity was partially implemented (17%) and 3 activities were actually not implemented (50%). \uf0b7 Funds to the tune of \u00a3 890 (UGX.3,739,406) were irregularly diverted from the activities on which they were budgeted and spent on other activities without seeking and obtaining the necessary approvals. \uf0b7 The entity did not prepare and submit annual monitoring plans to MoFPED and NPA and also did not prepare and submit quarterly monitoring reports to the Office of the Prime Minister and MoFPED contrary to Paragraph 58 of the Budget Execution Circular for 2019/20. \uf0b7 A review of the cumulative performance reports revealed the subsequent quarterly performance reports did not include activities implemented in the previous quarter(s) and therefore, the cumulative activities reported in the fourth quarter performance report does not include all activities implemented in the first, second and third quarters. \uf0b7 The Mission paid Euros.45,314 (equivalent to UGX.190,390,396) in respect of education allowances direct to its officials instead of their respective educational institutions or schools contrary to Section (E - e) Paragraphs 19 and 20 of the Public Service Standing Orders 2010. \uf0b7 The Mission had a fixed assets register detailing all of the Mission\u2019s assets but lacked some of the information such as date of purchase, estimated useful life, maintenance costs and the expected date of disposal making it incomplete. I further observed that a number of the entity\u2019s assets were old and due for boarding off but this had not been done. | Unnamed: 2 |", "metadata": {"page": 184, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 10 | Project for The Restoration of Livelihoods in the Northern Region (PRELNOR) 2020/21 Opinion Unqualified | \uf0b7 The project had a shortfall of UGX.26Bn, which is 52% and UGX.3.27Bn, which is 67% of the budget in external and government funding, respectively. The project absorbed UGX.25.65Bn, which is 88% of all the funds that were released. \uf0b7 All the one hundred seven (107) outputs assessed were fully quantified. Out of the one hundred seven (107), sixty-eight (68) were fully implemented, ten (10) were partially implemented, and twenty-nine (29) were never implemented. \uf0b7 I assessed the progress of project activities and noted that Batch A community access roads were incomplete. Similarly, the procurement process for Batch B community roads and the bulk and satellite markets had delayed, affecting service delivery. \uf0b7 I noted that the project faces sustainability challenges such as failure to maintain completed roads by the districts, which threatened to erode the benefits realised by the project. |\n|---:|-----:|:----------------------------------------------------------------------------------------------------------|:------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 4 | Uganda Embassy in Ankara 2019/20 Opinion Unqualified | \uf0b7 Out of the planned 10 strategic targets/goals in the Mission charter, seven (7) targets had been fully achieved, two (2) were partially achieved, while one (1) was not achieved. \uf0b7 There was a shortfall in NTR collections amounting to UGX.1.456Bn representing 0.93% performance. \uf0b7 I sampled 5 outputs with a total of 9 activities and actual expenditure of UGX.4.792Bn and observed that 3 outputs with a total of 7 activities and expenditure worth UGX.4.702Bn were fully quantified while 2 outputs with a total of 2 activities and expenditure worth UGX.0.9Bn were insufficiently quantified. I further observed that 3 outputs with 7 activities worth UGX.4.702Bn were partially implemented. \uf0b7 The Mission did not prepare and submit annual monitoring plans to MoFPED and NPA and also did not prepare and submit quarterly monitoring reports to the Office of the Prime Minister and MoFPED contrary to Paragraph 58 of the Budget Execution Circular for 2019/20. \uf0b7 The Mission submitted performance reports for Q1, Q2, Q3 and Q4 after the deadline given for submission of the reports. \uf0b7 The Embassy had a capital expenditure budget of UGX.90,000,000 to cater for office equipment, ICT equipment and furniture and fittings but |", "metadata": {"page": 184, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 10 | Project for The Restoration of Livelihoods in the Northern Region (PRELNOR) 2020/21 Opinion Unqualified | \uf0b7 The project had a shortfall of UGX.26Bn, which is 52% and UGX.3.27Bn, which is 67% of the budget in external and government funding, respectively. The project absorbed UGX.25.65Bn, which is 88% of all the funds that were released. \uf0b7 All the one hundred seven (107) outputs assessed were fully quantified. Out of the one hundred seven (107), sixty-eight (68) were fully implemented, ten (10) were partially implemented, and twenty-nine (29) were never implemented. \uf0b7 I assessed the progress of project activities and noted that Batch A community access roads were incomplete. Similarly, the procurement process for Batch B community roads and the bulk and satellite markets had delayed, affecting service delivery. \uf0b7 I noted that the project faces sustainability challenges such as failure to maintain completed roads by the districts, which threatened to erode the benefits realised by the project. |\n|---:|:-----------|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | management of the Embassy procured office equipment, ICT equipment and furniture and fittings worth UGX.129,698,987 resulting into a diversion of UGX.39,698,987. Furthermore, the additions in the Statement of Stores and Other Assets (physical assets) as at the end of the financial year 2019/2020 was UGX.129,698,987 but the payment file revealed that only office equipment, ICT equipment and furniture and fittings worth UGX.85,138,153 were procured implying that this statement is overstated by UGX.44,560,834. \uf0b7 The Embassy made upfront payments for rent of USD.74,850 (equivalent to UGX.279,215,200) beyond the financial year but did not disclose the prepayments in the Statement of Financial Position for the year. \uf0b7 The Mission paid USD.35,000 (equivalent to UGX.130,725,000) in respect of education allowances direct to its officials instead of their respective educational institutions or schools contrary to Section (E - e) Paragraphs 19 and 20 of the Public Service Standing Orders 2010. \uf0b7 The Embassy spent USD.53,627 (equivalent to UGX.200,296,400) on refunds for medical expenses to its officers contrary to Section M (m-a) (14) of the Public Service Standing Orders, 2010. \uf0b7 The Mission has an approved staff structure of 8 staff positions out of which, 5 (63%) were filled leaving 3 (37%) vacant. | Unnamed: 2 |", "metadata": {"page": 185, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 10 | Project for The Restoration of Livelihoods in the Northern Region (PRELNOR) 2020/21 Opinion Unqualified | \uf0b7 The project had a shortfall of UGX.26Bn, which is 52% and UGX.3.27Bn, which is 67% of the budget in external and government funding, respectively. The project absorbed UGX.25.65Bn, which is 88% of all the funds that were released. \uf0b7 All the one hundred seven (107) outputs assessed were fully quantified. Out of the one hundred seven (107), sixty-eight (68) were fully implemented, ten (10) were partially implemented, and twenty-nine (29) were never implemented. \uf0b7 I assessed the progress of project activities and noted that Batch A community access roads were incomplete. Similarly, the procurement process for Batch B community roads and the bulk and satellite markets had delayed, affecting service delivery. \uf0b7 I noted that the project faces sustainability challenges such as failure to maintain completed roads by the districts, which threatened to erode the benefits realised by the project. |\n|---:|-----:|:----------------------------------------------------------------------------------------------------------|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 5 | Uganda Embassy in China, Beijing 2019/20 Opinion Qualified | \uf0b7 Out of the planned 8 strategic targets/goals in the Mission charter, three (3) targets had been fully achieved, three (3) were partially achieved, while two (2) was not achieved. \uf0b7 There was a shortfall in NTR collections amounting to UGX.4.17Bn representing 0.05% performance. \uf0b7 Out of the total receipts for the financial year of UGX.5.031Bn, UGX.4.276Bn was spent by the entity resulting in an unspent balance of UGX.0.755Bn representing an absorption level of 84.99%. \uf0b7 The Embassy received off-budget financing from the Contingency Fund as a relief fund for students locked down in Wuhan to a tune of UGX.227,318,724 which was not appropriated by Parliament. \uf0b7 I sampled 5 outputs with a total of 20 activities and actual expenditure of UGX.4.28Bn and observed that 1 output with a total of 20 activities and expenditure worth UGX.4.23Bn was fully quantified while 2 outputs with a total of 2 activities and expenditure worth UGX.0.05Bn were not quantified. I further noted that for the quantified outputs, 3 outputs with 20 activities worth UGX.4.23Bn were partially implemented, 9 (45%) activities were fully implemented, 2 (10%) activities partially implemented and 9 (45%) activities remained unimplemented \uf0b7 Funds to the tune of UGX.20,000,000 were irregularly diverted from purchase of specialized machinery and equipment for which they were budgeted to purchase of curtains without seeking and obtaining the necessary approvals. \uf0b7 The Mission did not prepare and submit annual monitoring plans to MoFPED and NPA and also did not prepare and submit quarterly monitoring reports to the Office of the Prime Minister and MoFPED contrary to Paragraph 58 of the Budget Execution Circular for 2019/20. \uf0b7 The Mission submitted performance reports for Q1, Q2, Q3 and Q4 after the deadline given for submission of the reports. \uf0b7 I noted 20 cases of activities that were not reported that were disclosed in quarter 2 and quarter 3 reports but not disclosed the cumulative 4th |", "metadata": {"page": 185, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 10 | Project for The Restoration of Livelihoods in the Northern Region (PRELNOR) 2020/21 Opinion Unqualified | \uf0b7 The project had a shortfall of UGX.26Bn, which is 52% and UGX.3.27Bn, which is 67% of the budget in external and government funding, respectively. The project absorbed UGX.25.65Bn, which is 88% of all the funds that were released. \uf0b7 All the one hundred seven (107) outputs assessed were fully quantified. Out of the one hundred seven (107), sixty-eight (68) were fully implemented, ten (10) were partially implemented, and twenty-nine (29) were never implemented. \uf0b7 I assessed the progress of project activities and noted that Batch A community access roads were incomplete. Similarly, the procurement process for Batch B community roads and the bulk and satellite markets had delayed, affecting service delivery. \uf0b7 I noted that the project faces sustainability challenges such as failure to maintain completed roads by the districts, which threatened to erode the benefits realised by the project. |\n|---:|:-----------|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | quarter performance report of the Mission. \uf0b7 The Mission had outstanding commitments to a tune of UGX.7,720,207 from the previous year but no budget was provided for settlement of domestic arrears in the current budget but the arrears were paid. \uf0b7 For procurements, I observed that the Mission had one member for an Evaluation Committee and there was lack involvement of the Contracts Committee in the procurement processes. \uf0b7 I observed that the fixed assets register maintained by the entity was not updated and not maintained in the format prescribed in the Treasury Instructions. \uf0b7 The Embassy spent RMB.154,898 (equivalent to UGX.81,538,197) on refunds for medical expenses to its officers contrary to the requirements of Section M (m-a) (14) of the Public Service Standing Orders, 2010. \uf0b7 Expenditure amounting to RMB.118,327 (equivalent to UGX.62,287,491) was incurred on staff telephone bills out of which RMB.78,885 (equivalent to UGX.41,524,994) representing 2/3 of the amount should have been recovered from staff but the recovery was not effected contrary to Section H (h-e) (12) of the Public service Standing Orders, 2010. | Unnamed: 2 |", "metadata": {"page": 186, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 10 | Project for The Restoration of Livelihoods in the Northern Region (PRELNOR) 2020/21 Opinion Unqualified | \uf0b7 The project had a shortfall of UGX.26Bn, which is 52% and UGX.3.27Bn, which is 67% of the budget in external and government funding, respectively. The project absorbed UGX.25.65Bn, which is 88% of all the funds that were released. \uf0b7 All the one hundred seven (107) outputs assessed were fully quantified. Out of the one hundred seven (107), sixty-eight (68) were fully implemented, ten (10) were partially implemented, and twenty-nine (29) were never implemented. \uf0b7 I assessed the progress of project activities and noted that Batch A community access roads were incomplete. Similarly, the procurement process for Batch B community roads and the bulk and satellite markets had delayed, affecting service delivery. \uf0b7 I noted that the project faces sustainability challenges such as failure to maintain completed roads by the districts, which threatened to erode the benefits realised by the project. |\n|---:|-----:|:----------------------------------------------------------------------------------------------------------|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 6 | Uganda Embassy in Berlin 2019/20 Opinion Qualified | \uf0b7 The cashbook closing balance revealed an amount of Eur.8,442.77 (equivalent to UGX.35,283,771) while the bank statement closing balance revealed Eur.53,180.48 (222,250,267) resulting into un-reconciled difference of Eur.44,737.71 (equivalent to UGX.186,966,496). \uf0b7 Funds to the tune of EUR.22,056.39 (equivalent to UGX.92,053,888) were irregularly diverted from the activities on which they were budgeted and spent on other activities without seeking and obtaining the necessary approvals. \uf0b7 Out of the planned 21 strategic targets/goals in the Mission charter, 4 targets had been fully achieved, 11 were partially achieved, while 6 were not achieved. \uf0b7 There was a shortfall in NTR collections amounting to UGX.2.60Bn representing 1% performance. \uf0b7 I sampled 3 outputs with a total of 16 activities and actual expenditure of UGX.5.72Bn and observed that 2 outputs with 8 activities and expenditure worth UGX.5.38Bn were fully quantified while 1 output with 8 activities and expenditure worth UGX.0.34Bn was partially quantified at 50% quantification. Out of 8 activities, 3 (37.5%) activities were fully implemented, 3 (37.5%) activities were partially implemented and 2 (25%) activities were not implemented at all. \uf0b7 The entity submitted performance reports for Q1, Q2, Q3 and Q4 but there was no evidence for submission before elapse of the deadline. \uf0b7 The Embassy\u2019s assets were old and due for boarding off but action had not been taken. \uf0b7 The Embassy paid EUR.11,252.55 (equivalent to UGX.47,026,319) in respect of education allowances direct to its officials instead of their respective education institutions or schools contrary to Section (E - e) Paragraphs 19 and 20 of the Public Service Standing Orders, 2010. \uf0b7 The Embassy spent EUR.74,105.28 (equivalent to UGX.309,698,564) on refunds for medical expenses to its officers contrary to the requirements of Section M (m-a) (14) of the Public Service Standing Orders, 2010. \uf0b7 The Embassy paid allowances to staff in form of per diems totalling to |", "metadata": {"page": 186, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 10 | Project for The Restoration of Livelihoods in the Northern Region (PRELNOR) 2020/21 Opinion Unqualified | \uf0b7 The project had a shortfall of UGX.26Bn, which is 52% and UGX.3.27Bn, which is 67% of the budget in external and government funding, respectively. The project absorbed UGX.25.65Bn, which is 88% of all the funds that were released. \uf0b7 All the one hundred seven (107) outputs assessed were fully quantified. Out of the one hundred seven (107), sixty-eight (68) were fully implemented, ten (10) were partially implemented, and twenty-nine (29) were never implemented. \uf0b7 I assessed the progress of project activities and noted that Batch A community access roads were incomplete. Similarly, the procurement process for Batch B community roads and the bulk and satellite markets had delayed, affecting service delivery. \uf0b7 I noted that the project faces sustainability challenges such as failure to maintain completed roads by the districts, which threatened to erode the benefits realised by the project. |\n|---:|:-----------|:------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | EUR.37,847.45 (equivalent to UGX.158,170,928) during the period when Germany was under lock down (March to June, 2020). I could not establish the genuineness of the expenditure. \uf0b7 The Embassy has an approved staff structure of 8 positions out of which 5 (62.5%) were filled leaving 3 (37.5%) vacant. | Unnamed: 2 |", "metadata": {"page": 187, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 10 | Project for The Restoration of Livelihoods in the Northern Region (PRELNOR) 2020/21 Opinion Unqualified | \uf0b7 The project had a shortfall of UGX.26Bn, which is 52% and UGX.3.27Bn, which is 67% of the budget in external and government funding, respectively. The project absorbed UGX.25.65Bn, which is 88% of all the funds that were released. \uf0b7 All the one hundred seven (107) outputs assessed were fully quantified. Out of the one hundred seven (107), sixty-eight (68) were fully implemented, ten (10) were partially implemented, and twenty-nine (29) were never implemented. \uf0b7 I assessed the progress of project activities and noted that Batch A community access roads were incomplete. Similarly, the procurement process for Batch B community roads and the bulk and satellite markets had delayed, affecting service delivery. \uf0b7 I noted that the project faces sustainability challenges such as failure to maintain completed roads by the districts, which threatened to erode the benefits realised by the project. |\n|---:|-----:|:----------------------------------------------------------------------------------------------------------|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 7 | Uganda Embassy in Brussels 2019/20 Opinion Unqualified | \uf0b7 Out of the planned 10 strategic targets/goals in the Mission charter, two (2) targets had been fully achieved while eight (8) were partially achieved. \uf0b7 There was a shortfall in NTR collections amounting to UGX.1.445Bn representing 7.9% performance. \uf0b7 I sampled 4 outputs with a total of 11 activities and actual expenditure of UGX.10.359Bn and observed that all the 4 outputs with a total of 11 activities and expenditure worth UGX.10.359Bn were fully quantified. I further observed that 1 output with 1 activity worth UGX.4.993Bn was fully implemented while 3 outputs with 10 activities worth UGX.5.336Bn were partially implemented. \uf0b7 Funds to the tune of USD.1,949.02 (equivalent to UGX.7,990,982) were irregularly diverted from the activities on which they were budgeted and spent on other activities without seeking and obtaining the necessary approvals. \uf0b7 The Mission did not prepare and submit annual monitoring plans to MoFPED and NPA and also did not prepare and submit quarterly monitoring reports to the Office of the Prime Minister and MoFPED contrary to Paragraph 58 of the Budget Execution Circular for 2019/20. \uf0b7 The entity submitted performance reports for Q1, Q2, Q3 and Q4 but there was no evidence for submission before elapse of the deadline. I noted cases of material inaccuracies and inconsistencies in the annual cumulative performance reports. \uf0b7 The Embassy paid Euro.21,086.69 (equivalent to UGX.88,711,704) in respect of education allowances direct to its officials instead of their respective education institutions or schools contrary to Section (E - e) Paragraphs 19 and 20 of the Public Service Standing Orders, 2010. \uf0b7 \uf0b7 The Embassy spent Embassy spent Euro.16,297.47 (equivalent to UGX.68,563,456) on refunds for medical expenses to its officers contrary to the requirements of Section M (m-a) (14) of the Public Service Standing Orders, 2010. \uf0b7 Euro.15,364.80 (equivalent to UGX.64,639,713) was incurred on the payments for telephone bills out of which Euro.10,243.20 (UGX.43,093,142), equivalent to (2/3) should have been recovered from the respective staff during the period but the recovery was not effected contrary to Section H (h-e) (12) of the Public service Standing Orders, 2010. \uf0b7 The Embassy has an approved staff structure of 8 positions out of which 6 (75%) were filled leaving 2 (25%) vacant. |", "metadata": {"page": 187, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 10 | Project for The Restoration of Livelihoods in the Northern Region (PRELNOR) 2020/21 Opinion Unqualified | \uf0b7 The project had a shortfall of UGX.26Bn, which is 52% and UGX.3.27Bn, which is 67% of the budget in external and government funding, respectively. The project absorbed UGX.25.65Bn, which is 88% of all the funds that were released. \uf0b7 All the one hundred seven (107) outputs assessed were fully quantified. Out of the one hundred seven (107), sixty-eight (68) were fully implemented, ten (10) were partially implemented, and twenty-nine (29) were never implemented. \uf0b7 I assessed the progress of project activities and noted that Batch A community access roads were incomplete. Similarly, the procurement process for Batch B community roads and the bulk and satellite markets had delayed, affecting service delivery. \uf0b7 I noted that the project faces sustainability challenges such as failure to maintain completed roads by the districts, which threatened to erode the benefits realised by the project. |\n|---:|-----:|:----------------------------------------------------------------------------------------------------------|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 8 | Uganda Embassy in Bujumbura 2019/20 Opinion Unqualified | \uf0b7 Out of the planned 9 strategic targets/goals in the Mission charter, three (3) targets had been fully achieved, three (3) were partially achieved while three (3) were not achieved. \uf0b7 There was a shortfall in NTR collections amounting to UGX.3.087Bn representing 1.68% performance. |", "metadata": {"page": 187, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 10 | Project for The Restoration of Livelihoods in the Northern Region (PRELNOR) 2020/21 Opinion Unqualified | \uf0b7 The project had a shortfall of UGX.26Bn, which is 52% and UGX.3.27Bn, which is 67% of the budget in external and government funding, respectively. The project absorbed UGX.25.65Bn, which is 88% of all the funds that were released. \uf0b7 All the one hundred seven (107) outputs assessed were fully quantified. Out of the one hundred seven (107), sixty-eight (68) were fully implemented, ten (10) were partially implemented, and twenty-nine (29) were never implemented. \uf0b7 I assessed the progress of project activities and noted that Batch A community access roads were incomplete. Similarly, the procurement process for Batch B community roads and the bulk and satellite markets had delayed, affecting service delivery. \uf0b7 I noted that the project faces sustainability challenges such as failure to maintain completed roads by the districts, which threatened to erode the benefits realised by the project. |\n|---:|:-----------|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | \uf0b7 I sampled 6 outputs with a total of 23 activities and actual expenditure of UGX.4.140Bn and observed that 4 outputs with a total of 21 activities and expenditure worth UGX.3.440Bn were fully quantified while 2 outputs with a total of 2 activities and expenditure worth UGX.0.7Bn were insufficiently quantified. I further observed that all 4 outputs with 21 activities were partially implemented. \uf0b7 The Mission did not prepare and submit annual monitoring plans to MoFPED and NPA and also did not prepare and submit quarterly monitoring reports to the Office of the Prime Minister and MoFPED contrary to Paragraph 58 of the Budget Execution Circular for 2019/20. \uf0b7 The entity submitted performance reports for Q1, Q2, Q3 and Q4 but there was no evidence for submission before elapse of the deadline. \uf0b7 The Mission had total collections including balance brought forward from previous year of UGX.59,804,444 out of which UGX.17,626,729 had been transferred to the Treasury for onward transfer to the Consolidated Fund leaving a balance UGX.42,177,715 not remitted \uf0b7 The Embassy paid USD.16,000 (equivalent to UGX.59,685,280) in respect of education allowances direct to its officials instead of their respective education institutions or schools contrary to Section (E - e) Paragraphs 19 and 20 of the Public Service Standing Orders, 2010. \uf0b7 BIF.452,224,651 (equivalent to UGX.863,334,000) was withdrawn from the Mission\u2019s expenditure account as cash imprest but was not adequately accounted for. \uf0b7 The Embassy maintains an asset register which is not in the format prescribed in the Treasury Instructions and has a number of assets that are unserviceable and need to be disposed of. | Unnamed: 2 |", "metadata": {"page": 188, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 10 | Project for The Restoration of Livelihoods in the Northern Region (PRELNOR) 2020/21 Opinion Unqualified | \uf0b7 The project had a shortfall of UGX.26Bn, which is 52% and UGX.3.27Bn, which is 67% of the budget in external and government funding, respectively. The project absorbed UGX.25.65Bn, which is 88% of all the funds that were released. \uf0b7 All the one hundred seven (107) outputs assessed were fully quantified. Out of the one hundred seven (107), sixty-eight (68) were fully implemented, ten (10) were partially implemented, and twenty-nine (29) were never implemented. \uf0b7 I assessed the progress of project activities and noted that Batch A community access roads were incomplete. Similarly, the procurement process for Batch B community roads and the bulk and satellite markets had delayed, affecting service delivery. \uf0b7 I noted that the project faces sustainability challenges such as failure to maintain completed roads by the districts, which threatened to erode the benefits realised by the project. |\n|---:|-----:|:----------------------------------------------------------------------------------------------------------|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 9 | Uganda Embassy in Cairo, 2019/20 Opinion Unqualified | \uf0b7 All the seven (7) targets/goals of the Mission Charter were partially achieved. \uf0b7 There was a shortfall in NTR collections amounting to UGX.1.999Bn representing 4.45% performance. \uf0b7 Out of the total receipts for the financial year of UGX.5.564Bn, UGX.4.952Bn was spent by the entity resulting in an unspent balance of UGX.0.612Bn representing an absorption level of 89%. \uf0b7 4 outputs with 14 activities and expenditure worth UGX.3.176Bn were not quantified to enable assessment of performance. \uf0b7 The Mission did not prepare and submit annual monitoring plans to MoFPED and NPA and also did not prepare and submit quarterly monitoring reports to the Office of the Prime Minister and MoFPED contrary to Paragraph 58 of the Budget Execution Circular for 2019/20. \uf0b7 The entity submitted performance reports for Q1, Q2, Q3 and Q4 but there was no evidence for submission before elapse of the deadline. \uf0b7 The Mission had total collections including balance brought forward from previous year of UGX.238,031,600 out of which UGX.183,216,635 had been transferred to the Treasury for onward transfer to the Consolidated Fund leaving a balance UGX.54,814,965 not remitted. \uf0b7 UGX.90,391,294 was disclosed as unspent balances for the period 2018/19 but note 17, cash and cash equivalents indicates that the prior year closing balance was UGX.75,022,891. The variance amounting to UGX.15,368,403 was not explained. \uf0b7 EGP.1,015,780.00 (equivalent to UGX.229,058,390) was drawn as imprest |", "metadata": {"page": 188, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 10 | Project for The Restoration of Livelihoods in the Northern Region (PRELNOR) 2020/21 Opinion Unqualified | \uf0b7 The project had a shortfall of UGX.26Bn, which is 52% and UGX.3.27Bn, which is 67% of the budget in external and government funding, respectively. The project absorbed UGX.25.65Bn, which is 88% of all the funds that were released. \uf0b7 All the one hundred seven (107) outputs assessed were fully quantified. Out of the one hundred seven (107), sixty-eight (68) were fully implemented, ten (10) were partially implemented, and twenty-nine (29) were never implemented. \uf0b7 I assessed the progress of project activities and noted that Batch A community access roads were incomplete. Similarly, the procurement process for Batch B community roads and the bulk and satellite markets had delayed, affecting service delivery. \uf0b7 I noted that the project faces sustainability challenges such as failure to maintain completed roads by the districts, which threatened to erode the benefits realised by the project. |\n|---:|:-----------|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | and spent on activities such as advances, transport and per diems which are not small incidental expenditures contrary to Instruction 17.22 of the Treasury Instructions 2017. \uf0b7 The Embassy paid USD.27,419.00 (equivalent to UGX.101,998,680) in respect of education allowances direct to its officials instead of their respective education institutions or schools contrary to Section (E - e) Paragraphs 19 and 20 of the Public Service Standing Orders, 2010. \uf0b7 The Embassy spent Egyptian pounds.255,613 (equivalent to UGX.57,640,732) on refunds for medical expenses to its officers contrary to the requirements of Section M (m-a) (14) of the Public Service Standing Orders, 2010. | Unnamed: 2 |", "metadata": {"page": 189, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 10 | Project for The Restoration of Livelihoods in the Northern Region (PRELNOR) 2020/21 Opinion Unqualified | \uf0b7 The project had a shortfall of UGX.26Bn, which is 52% and UGX.3.27Bn, which is 67% of the budget in external and government funding, respectively. The project absorbed UGX.25.65Bn, which is 88% of all the funds that were released. \uf0b7 All the one hundred seven (107) outputs assessed were fully quantified. Out of the one hundred seven (107), sixty-eight (68) were fully implemented, ten (10) were partially implemented, and twenty-nine (29) were never implemented. \uf0b7 I assessed the progress of project activities and noted that Batch A community access roads were incomplete. Similarly, the procurement process for Batch B community roads and the bulk and satellite markets had delayed, affecting service delivery. \uf0b7 I noted that the project faces sustainability challenges such as failure to maintain completed roads by the districts, which threatened to erode the benefits realised by the project. |\n|---:|-----:|:----------------------------------------------------------------------------------------------------------|:-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 10 | Uganda High Commission in Canberra. 2019/20 Opinion Qualified | \uf0b7 The High Commission made upfront payments for rent of AUD.43,096.67 (equivalent to UGX.109,469,851) beyond the financial year but did not disclose the same as prepayments in the Statement of Financial Position for the year. \uf0b7 The High Commission did not provide strategic performance reports and therefore, I could not undertake an assessment of the achievements of the Mission charter targets/goals. \uf0b7 There was a shortfall in NTR collections amounting to UGX.1.00Bn representing 0.05% performance. \uf0b7 I sampled 3 outputs with a total of 9 activities and actual expenditure of UGX.4.84Bn and observed that the activities were not quantified. I was therefore unable to undertake assessment of the performance of the High Commission. \uf0b7 The Mission did not prepare and submit annual monitoring plans to MoFPED and NPA and also did not prepare and submit quarterly monitoring reports to the Office of the Prime Minister and MoFPED contrary to Paragraph 58 of the Budget Execution Circular for 2019/20. \uf0b7 The entity submitted performance reports for Q1, Q2 and Q3 after the deadline given for submission. I noted cases of material inaccuracies and inconsistencies in the level of performance reported. \uf0b7 Assets to the tune of AUD.25,060 (equivalent to UGX.63,654,906) were procured during the year which were not disclosed in the summary statement of stores and other assets (physical assets) at the end of the year. \uf0b7 The High Commission had total collections including balance brought forward from previous year of UGX.59,002,072. At the closure of the period, no funds had been transferred to the Treasury for onward transfer to the Consolidated Fund thus implying UGX.59,002,072 was not remitted \uf0b7 The Embassy paid AUD.77,726 (equivalent to UGX.197,430,593) in respect of education allowances direct to its officials instead of their respective education institutions or schools contrary to Section (E - e) Paragraphs 19 and 20 of the Public Service Standing Orders, 2010. \uf0b7 The Embassy spent AUD.77,726 (equivalent to UGX.197,430,593) on refunds for medical expenses to its officers contrary to the requirements of Section M (m-a) (14) of the Public Service Standing Orders, 2010. \uf0b7 AUD.28,722 (equivalent to UGX.72,956,752) out of which AUD.19,148 (equivalent to UGX.48,637,835) representing 2/3 of the amount should have been recovered from the respective staff was incurred on the payments for telephone bills during the period. The recovery was not |", "metadata": {"page": 189, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 10 | Project for The Restoration of Livelihoods in the Northern Region (PRELNOR) 2020/21 Opinion Unqualified | \uf0b7 The project had a shortfall of UGX.26Bn, which is 52% and UGX.3.27Bn, which is 67% of the budget in external and government funding, respectively. The project absorbed UGX.25.65Bn, which is 88% of all the funds that were released. \uf0b7 All the one hundred seven (107) outputs assessed were fully quantified. Out of the one hundred seven (107), sixty-eight (68) were fully implemented, ten (10) were partially implemented, and twenty-nine (29) were never implemented. \uf0b7 I assessed the progress of project activities and noted that Batch A community access roads were incomplete. Similarly, the procurement process for Batch B community roads and the bulk and satellite markets had delayed, affecting service delivery. \uf0b7 I noted that the project faces sustainability challenges such as failure to maintain completed roads by the districts, which threatened to erode the benefits realised by the project. |\n|---:|:-----------|:-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | effected. \uf0b7 AUD.44,725.21 (equivalent to UGX.113,605973) was withdrawn from the High Commission\u2019s local expenditure account as cash imprest but was not adequately accounted for. \uf0b7 Out of an approved staff structure of 7 staff positions for the Mission, six (86%) were filled leaving one (14%) vacant. | Unnamed: 2 |", "metadata": {"page": 190, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 10 | Project for The Restoration of Livelihoods in the Northern Region (PRELNOR) 2020/21 Opinion Unqualified | \uf0b7 The project had a shortfall of UGX.26Bn, which is 52% and UGX.3.27Bn, which is 67% of the budget in external and government funding, respectively. The project absorbed UGX.25.65Bn, which is 88% of all the funds that were released. \uf0b7 All the one hundred seven (107) outputs assessed were fully quantified. Out of the one hundred seven (107), sixty-eight (68) were fully implemented, ten (10) were partially implemented, and twenty-nine (29) were never implemented. \uf0b7 I assessed the progress of project activities and noted that Batch A community access roads were incomplete. Similarly, the procurement process for Batch B community roads and the bulk and satellite markets had delayed, affecting service delivery. \uf0b7 I noted that the project faces sustainability challenges such as failure to maintain completed roads by the districts, which threatened to erode the benefits realised by the project. |\n|---:|-----:|:----------------------------------------------------------------------------------------------------------|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 11 | Uganda High Commission in Dar es Salaam. 2019/20 Opinion Unqualified | \uf0b7 Out of the planned 30 strategic targets/goals in the Mission charter, eight(8) outputs/targets had been fully achieved, twelve (12) were partially achieved, while ten (10) were not achieved. \uf0b7 There was a shortfall in NTR collections amounting to UGX.3.12Bn representing 0.01% performance. \uf0b7 I sampled 5 outputs with a total of 18 activities and actual expenditure of UGX.5.277Bn and observed that 1 output with 1 activity and expenditure worth UGX.0.173 was fully quantified, 1 output with 4 activities and expenditure worth UGX.0.674Bn was partially quantified at 50% quantification while 3 outputs with 13 activities and expenditure worth UGX.4.43Bn were not quantified. I further observed that 1 output with 1 activity and expenditure worth UGX.0.173Bn was partially implemented. \uf0b7 The entity submitted performance reports for Q1, Q2, Q3 and Q4 but there was no evidence for submission before elapse of the deadline. \uf0b7 Prepayments amounting to TSHS.1,130,500 (equivalent to UGX.1,818,975) were made to various suppliers for services but were not disclosed in the financial statements thereby understating the assets in the Statement of Financial Position and overstating expenditure in the Statement of Financial Performance. \uf0b7 The Embassy owns land in Dodoma on which the proposed Chancery building and official residence are to be constructed but the value of this land was not disclosed in the financial statements contrary to GOU accounting policy \u2018disclosure of land under non-produced assets. \uf0b7 The Embassy paid UGX.74,506,600 in respect of education allowances direct to its officials instead of their respective education institutions or schools contrary to Section (E - e) Paragraphs 19 and 20 of the Public Service Standing Orders, 2010. \uf0b7 The Embassy spent UGX.61,871,014 on refunds for medical expenses to its officers contrary to the requirements of Section M (m-a) (14) of the Public Service Standing Orders, 2010. \uf0b7 UGX.15,954,192 out of which UGX.10,636,129 representing 2/3 of the amount should have been recovered from the respective staff was incurred on the payments for telephone bills during the period. The recovery was not effected. \uf0b7 Out of an approved staff structure of 7 staff positions for the Mission, 5 (71%) were filled leaving 2 (29%) vacant. |", "metadata": {"page": 190, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 10 | Project for The Restoration of Livelihoods in the Northern Region (PRELNOR) 2020/21 Opinion Unqualified | \uf0b7 The project had a shortfall of UGX.26Bn, which is 52% and UGX.3.27Bn, which is 67% of the budget in external and government funding, respectively. The project absorbed UGX.25.65Bn, which is 88% of all the funds that were released. \uf0b7 All the one hundred seven (107) outputs assessed were fully quantified. Out of the one hundred seven (107), sixty-eight (68) were fully implemented, ten (10) were partially implemented, and twenty-nine (29) were never implemented. \uf0b7 I assessed the progress of project activities and noted that Batch A community access roads were incomplete. Similarly, the procurement process for Batch B community roads and the bulk and satellite markets had delayed, affecting service delivery. \uf0b7 I noted that the project faces sustainability challenges such as failure to maintain completed roads by the districts, which threatened to erode the benefits realised by the project. |\n|---:|-----:|:----------------------------------------------------------------------------------------------------------|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 12 | Uganda High Commission in Doha. 2019/20 Opinion Qualified | \uf0b7 Prepayments amounting to QR.424,000 (equivalent to UGX.431,046,880) were made to various suppliers for services but were not disclosed in the financial statements thereby understating the assets in the Statement of Financial Position and overstating expenditure in the Statement of Financial Performance. \uf0b7 There was a shortfall in NTR collections amounting to UGX.1.547Bn representing 1.45% performance. \uf0b7 Out of the total receipts for the financial year of UGX.3.293Bn, |", "metadata": {"page": 190, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 10 | Project for The Restoration of Livelihoods in the Northern Region (PRELNOR) 2020/21 Opinion Unqualified | \uf0b7 The project had a shortfall of UGX.26Bn, which is 52% and UGX.3.27Bn, which is 67% of the budget in external and government funding, respectively. The project absorbed UGX.25.65Bn, which is 88% of all the funds that were released. \uf0b7 All the one hundred seven (107) outputs assessed were fully quantified. Out of the one hundred seven (107), sixty-eight (68) were fully implemented, ten (10) were partially implemented, and twenty-nine (29) were never implemented. \uf0b7 I assessed the progress of project activities and noted that Batch A community access roads were incomplete. Similarly, the procurement process for Batch B community roads and the bulk and satellite markets had delayed, affecting service delivery. \uf0b7 I noted that the project faces sustainability challenges such as failure to maintain completed roads by the districts, which threatened to erode the benefits realised by the project. |\n|---:|:-----------|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | UGX.2.64Bn was spent by the entity resulting in an unspent balance of UGX.0.653Bn representing an absorption level of 80.2%. \uf0b7 I sampled 5 outputs with a total of 7 activities and actual expenditure of UGX.2.64Bn and observed that 2 outputs of the 5 outputs with a total of 2 activities and expenditure worth UGX.0.06Bn were not quantified. I further observed that 1 output out of the 3 outputs with 2 activities worth UGX.2.02Bn was fully implemented 2 outputs with 3 activities worth UGX.0.56Bn were partially implemented. \uf0b7 The Mission did not prepare and submit annual monitoring plans to MoFPED and NPA and also did not prepare and submit quarterly monitoring reports to the Office of the Prime Minister and MoFPED contrary to Paragraph 58 of the Budget Execution Circular for 2019/20. \uf0b7 The Embassy submitted performance reports for Q1, Q2, Q3 and Q4 after the deadline given for submission of the reports. \uf0b7 The Embassy spent QR.11,481 (equivalent to UGX.11,671,814) on refunds for medical expenses to its officers contrary to the requirements of Section M (m-a) (14) of the Public Service Standing Orders, 2010. \uf0b7 QR.43,652 (equivalent to UGX.44,377,496) out of which (2/3) amounting to QR.29,101 (equivalent to UGX.29,584,659) should have been recovered from the respective staff was incurred on the payments for telephone bills during the period. The recovery was not effected. \uf0b7 I noted that all the three (3) sampled procurements were undertaken using direct procurement method but no justification was given and no contract manager was appointed to oversee these procurements. \uf0b7 Out of an approved staff structure of 7 staff positions for the Mission, 9 (60%) were filled leaving 6 (40%) vacant. | Unnamed: 2 |", "metadata": {"page": 191, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 10 | Project for The Restoration of Livelihoods in the Northern Region (PRELNOR) 2020/21 Opinion Unqualified | \uf0b7 The project had a shortfall of UGX.26Bn, which is 52% and UGX.3.27Bn, which is 67% of the budget in external and government funding, respectively. The project absorbed UGX.25.65Bn, which is 88% of all the funds that were released. \uf0b7 All the one hundred seven (107) outputs assessed were fully quantified. Out of the one hundred seven (107), sixty-eight (68) were fully implemented, ten (10) were partially implemented, and twenty-nine (29) were never implemented. \uf0b7 I assessed the progress of project activities and noted that Batch A community access roads were incomplete. Similarly, the procurement process for Batch B community roads and the bulk and satellite markets had delayed, affecting service delivery. \uf0b7 I noted that the project faces sustainability challenges such as failure to maintain completed roads by the districts, which threatened to erode the benefits realised by the project. |\n|---:|-----:|:----------------------------------------------------------------------------------------------------------|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 13 | Uganda High Commission in Geneva. 2019/20 Opinion Unqualified | \uf0b7 There was a shortfall in NTR collections amounting to UGX.3.045Bn representing 3% performance. \uf0b7 I sampled 3 outputs with a total of 7 activities and actual expenditure of UGX.7.66Bn and observed that all the 3 outputs were fully quantified and were partially implemented. \uf0b7 The Mission did not prepare and submit annual monitoring plans to MoFPED and NPA and also did not prepare and submit quarterly monitoring reports to the Office of the Prime Minister and MoFPED contrary to Paragraph 58 of the Budget Execution Circular for 2019/20. \uf0b7 The Embassy submitted performance reports for Q1, Q2, Q3 and Q4 after the deadline given for submission of the reports. \uf0b7 The Mission had total collections including balance brought forward from previous year of UGX.345,130,819. At the closure of the period, UGX.146,139,671 had been transferred to the Treasury for onward transfer to the Consolidated Fund leaving a balance UGX.198,991,148 not remitted. \uf0b7 UGX.27,296,608 was spent on procurements outside the approved procurement plan for the financial year 2019/2020 while procurements worth UGX.294,979,327 were acquired using the wrong procurement methods. \uf0b7 The fixed assets register maintained by the entity was not updated as it lacks details of exact month of purchase (only the year was mentioned), maintenance cost and estimated useful life of the asset. \uf0b7 The Embassy paid UGX.39,320,000 in respect of education allowances |", "metadata": {"page": 191, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 10 | Project for The Restoration of Livelihoods in the Northern Region (PRELNOR) 2020/21 Opinion Unqualified | \uf0b7 The project had a shortfall of UGX.26Bn, which is 52% and UGX.3.27Bn, which is 67% of the budget in external and government funding, respectively. The project absorbed UGX.25.65Bn, which is 88% of all the funds that were released. \uf0b7 All the one hundred seven (107) outputs assessed were fully quantified. Out of the one hundred seven (107), sixty-eight (68) were fully implemented, ten (10) were partially implemented, and twenty-nine (29) were never implemented. \uf0b7 I assessed the progress of project activities and noted that Batch A community access roads were incomplete. Similarly, the procurement process for Batch B community roads and the bulk and satellite markets had delayed, affecting service delivery. \uf0b7 I noted that the project faces sustainability challenges such as failure to maintain completed roads by the districts, which threatened to erode the benefits realised by the project. |\n|---:|:-----------|:-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | direct to its officials instead of their respective education institutions or schools contrary to Section (E - e) Paragraphs 19 and 20 of the Public Service Standing Orders, 2010. \uf0b7 CHF.12,623 (equivalent to UGX.49,602,836) out of which CHF.8,415 (equivalent to UGX.33,068,557) equivalent to 2/3 should have been recovered from the respective staff was incurred on the payments for telephone bills during the period. The recovery was not effected. \uf0b7 Out of an approved staff structure of 7 staff positions for the Mission, six (86%) were filled leaving one (14%) vacant. | Unnamed: 2 |", "metadata": {"page": 192, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 10 | Project for The Restoration of Livelihoods in the Northern Region (PRELNOR) 2020/21 Opinion Unqualified | \uf0b7 The project had a shortfall of UGX.26Bn, which is 52% and UGX.3.27Bn, which is 67% of the budget in external and government funding, respectively. The project absorbed UGX.25.65Bn, which is 88% of all the funds that were released. \uf0b7 All the one hundred seven (107) outputs assessed were fully quantified. Out of the one hundred seven (107), sixty-eight (68) were fully implemented, ten (10) were partially implemented, and twenty-nine (29) were never implemented. \uf0b7 I assessed the progress of project activities and noted that Batch A community access roads were incomplete. Similarly, the procurement process for Batch B community roads and the bulk and satellite markets had delayed, affecting service delivery. \uf0b7 I noted that the project faces sustainability challenges such as failure to maintain completed roads by the districts, which threatened to erode the benefits realised by the project. |\n|---:|-----:|:----------------------------------------------------------------------------------------------------------|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 14 | Uganda Consulate in Guangzhou, China 2019/20 Opinion Unqualified | \uf0b7 Out of the planned 8 strategic targets/goals in the Mission charter, six (6) outputs/targets had been fully achieved while two (2) were partially achieved. \uf0b7 There was a shortfall in NTR collections amounting to UGX.2.037Bn representing 2.54% performance. \uf0b7 UGX.4.745Bn was budgeted out of which UGX.4.545Bn was warranted, resulting in a shortfall of UGX.0.2Bn resulting in 95.8% funding of the budget. Of the received amount of UGX.4.545Bn, UGX.3.945Bn was spent resulting in an unspent balance of UGX.0.6Bn representing an absorption level of 86.8%. \uf0b7 I sampled 4 outputs with a total of 6 activities and actual expenditure of UGX.3.94Bn and observed that 3 outputs with a total of 4 activities and expenditure worth UGX.3.717Bn were fully quantified while 1 output with a total of 2 activities and expenditure worth UGX.0.228Bn was insufficiently quantified. I further observed that 2 outputs with 3 activities worth UGX.1.682Bn were partially implemented while 1 output with 1 activity worth UGX.2.0Bn was not implemented at all . \uf0b7 The Mission did not prepare and submit annual monitoring plans to MoFPED and NPA and also did not prepare and submit quarterly monitoring reports to the Office of the Prime Minister and MoFPED contrary to Paragraph 58 of the Budget Execution Circular for 2019/20. \uf0b7 The entity submitted performance reports for Q1, Q2 and Q3 after the deadline given for submission. I noted that the performance reports did not report on the project 1169, strengthening the consulate in Guangzhou by procurement of a utility van. \uf0b7 Prepayments amounting to RMB.21,000 (equivalent to UGX.11,466,000) and USD.26,406.60 (equivalent to UGX.107,743,023.20) were made to various suppliers for services but were not disclosed in the financial statements thereby understating the assets in the Statement of Financial Position and overstating expenditure in the Statement of Financial Performance. \uf0b7 The Embassy spent RMB.244,833.6 (equivalent to UGX.129,641,839.54) and USD.500 (equivalent to UGX.1,875,165.00) on refunds for medical expenses to its officers contrary to the requirements of Section M (m-a) (14) of the Public Service Standing Orders, 2010. \uf0b7 The Consulate has land located on plot no. D8 Yi Zhou Rd in Chigang District which is idle and may be repossessed by the host country. In addition, the Consulate owns a utility van whose repair and maintenance costs have escalated is due for disposal and plans were in place to procure a new one but this was not done. |\n| 1 | 15 | Uganda Embassy in South Sudan. 2019/20 | \uf0b7 Prepayments amounting to UGX.399,145,310 were made to various suppliers for services but were not disclosed in the financial statements |", "metadata": {"page": 192, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Opinion Qualified | thereby understating the assets in the Statement of Financial Position and overstating expenditure in the Statement of Financial Performance. \uf0b7 Out of the planned 7 strategic targets/goals in the Mission charter, 2 outputs/targets had been fully achieved while 5 were partially achieved. \uf0b7 There was a shortfall in NTR collections amounting to UGX.2.56Bn representing 17.3% performance. \uf0b7 Out of the total receipts for the financial year of UGX.7.624Bn, UGX.9.11Bn was spent by the entity resulting into an over absorption of UGX.1.48Bn representing an absorption level of 119%. \uf0b7 I sampled 5 outputs with a total of 30 activities and actual expenditure of UGX.7.07Bn and observed that 4 outputs with a total of 18 activities and expenditure worth UGX.6.69Bn were fully quantified while 1 output with a total of 12 activities and expenditure worth UGX.0.39Bn was insufficiently quantified. For the 5 fully quantified outputs, 2 outputs with 2 activities worth UGX.2.55Bn were fully implemented while 3 outputs with 28 activities worth UGX.4.09Bn were partially implemented. \uf0b7 Funds to the tune of USD.17,382.29 (equivalent to UGX.64,841,678) were irregularly diverted from the activities on which they were budgeted and spent on other activities without seeking and obtaining the necessary approvals. \uf0b7 The Mission did not prepare and submit annual monitoring plans to MoFPED and NPA and also did not prepare and submit quarterly monitoring reports to the Office of the Prime Minister and MoFPED contrary to Paragraph 58 of the Budget Execution Circular for 2019/20. \uf0b7 The entity submitted performance reports for Q1, Q2 and Q3 after the deadline given for submission. I noted some cases of material inaccuracies and inconsistencies in the level of performance reported. \uf0b7 UGX.328,779,539 reported as cash in transit has been in the books of the Embassy for more than three financial years and the funds have never been credited to the Consolidated Fund. \uf0b7 The Mission had total collections including balance brought forward from previous year of UGX.884,552,695out of which UGX.180,503,771 had been transferred to the Treasury for onward transfer to the Consolidated Fund leaving a balance UGX.704,048,924 not remitted. \uf0b7 The Embassy paid USD.25,000.00 (equivalent to UGX.93,258,250) in respect of education allowances direct to its officials instead of their respective education institutions or schools contrary to Section (E - e) Paragraphs 19 and 20 of the Public Service Standing Orders, 2010. \uf0b7 USD.1,613.00 (equivalent to UGX.6,017,022) out of which USD.1,076.00 (equivalent to UGX.4,013,835) representing 2/3 of the amount should have been recovered from the respective staff was incurred on the payments for telephone bills during the period. The recovery was not effected. \uf0b7 Out of an approved staff structure of 6 staff positions for the Mission, 5 (83%) were filled leaving 1(17%) vacant. |\n|---:|-------------:|:--------------------------------------------|:------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 16 | Uganda Embassy in Khartoum. 2019/20 Opinion | \uf0b7 Out of the planned 10 strategic targets/goals in the Mission charter, 5 outputs/targets had been fully achieved while 3 were partially achieved. \uf0b7 There was a shortfall in NTR collections amounting to UGX.2.5Bn representing 2.01% performance. \uf0b7 I sampled 4 outputs with a total of 11 activities and actual expenditure of |", "metadata": {"page": 193, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Unqualified | UGX.4.169Bn and observed that 2 outputs with a total of 6 activities and expenditure worth UGX.0.95Bn were fully quantified, 1 output with a total of 4 activities and expenditure worth UGX.3.11Bn was insufficiently quantified while 1 output with 1 activity and expenditure worth UGX.0.11 was totally not quantified. I further observed that no output was fully implemented while 3 outputs with 10 activities worth UGX.4.09Bn were partially implemented. \uf0b7 Funds to the tune of USD.4,393.04 (equivalent to UGX.15,595,150) were irregularly diverted from the activities on which they were budgeted and spent on other activities without seeking and obtaining the necessary approvals. \uf0b7 The Mission did not prepare and submit annual monitoring plans to MoFPED and NPA and also did not prepare and submit quarterly monitoring reports to the Office of the Prime Minister and MoFPED contrary to Paragraph 58 of the Budget Execution Circular for 2019/20. \uf0b7 The entity submitted performance reports for Q1, Q2 and Q3 after the deadline given for submission. \uf0b7 The Embassy paid USD.17,500.00 (equivalent to UGX.64,925,000) in respect of education allowances direct to its officials instead of their respective education institutions or schools contrary to Section (E - e) Paragraphs 19 and 20 of the Public Service Standing Orders, 2010. \uf0b7 The Embassy spent USD.3,702.42 (equivalent to UGX.13,702,656.42) on refunds for medical expenses to its officer\u2019s contrary to the requirements of Section M (m-a) (14) of the Public Service Standing Orders, 2010. \uf0b7 USD.7,979.94 (equivalent to UGX.29,605,577) out of which USD.5,319.96 (equivalent to UGX.19,737,051) representing 2/3 of the amount should have been recovered from the respective staff was incurred on the payments for telephone bills during the period. The recovery was not affected. \uf0b7 Out of an approved staff structure of 5 staff positions for the Mission, 4 (80%) were filled leaving 1 (20%) vacant. |\n|---:|-------------:|:------------------------------------------------------|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 17 | Uganda Embassy in Kigali. 2019/20 Opinion Unqualified | \uf0b7 Out of the planned 10 strategic targets/goals in the Mission charter, 2 outputs/targets had been fully achieved, 2 were partially achieved while 6 were partially achieved. \uf0b7 There was a shortfall in NTR collections amounting to UGX.3.07Bn representing 2.3% performance. \uf0b7 I sampled 4 outputs with a total of 13 activities and actual expenditure of UGX.3.325Bn and observed that all the 4 outputs were not quantified. Therefore, I was unable to undertake assessment of the performance of the Mission. \uf0b7 The Mission did not prepare and submit annual monitoring plans to MoFPED and NPA and also did not prepare and submit quarterly monitoring reports to the Office of the Prime Minister and MoFPED contrary to Paragraph 58 of the Budget Execution Circular for 2019/20. \uf0b7 The entity submitted performance reports for Q1, Q2 and Q3 after the deadline given for submission. I noted that the cumulative activities reported in the fourth quarter performance report did not include all activities implemented in the first, second and third quarters. \uf0b7 I noted that the assets register maintained was not in the format prescribed in the Treasury Instructions and lacked details of date of purchase, cost of purchase, maintenance cost, asset code and estimated |", "metadata": {"page": 194, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Unqualified | UGX.4.169Bn and observed that 2 outputs with a total of 6 activities and expenditure worth UGX.0.95Bn were fully quantified, 1 output with a total of 4 activities and expenditure worth UGX.3.11Bn was insufficiently quantified while 1 output with 1 activity and expenditure worth UGX.0.11 was totally not quantified. I further observed that no output was fully implemented while 3 outputs with 10 activities worth UGX.4.09Bn were partially implemented. \uf0b7 Funds to the tune of USD.4,393.04 (equivalent to UGX.15,595,150) were irregularly diverted from the activities on which they were budgeted and spent on other activities without seeking and obtaining the necessary approvals. \uf0b7 The Mission did not prepare and submit annual monitoring plans to MoFPED and NPA and also did not prepare and submit quarterly monitoring reports to the Office of the Prime Minister and MoFPED contrary to Paragraph 58 of the Budget Execution Circular for 2019/20. \uf0b7 The entity submitted performance reports for Q1, Q2 and Q3 after the deadline given for submission. \uf0b7 The Embassy paid USD.17,500.00 (equivalent to UGX.64,925,000) in respect of education allowances direct to its officials instead of their respective education institutions or schools contrary to Section (E - e) Paragraphs 19 and 20 of the Public Service Standing Orders, 2010. \uf0b7 The Embassy spent USD.3,702.42 (equivalent to UGX.13,702,656.42) on refunds for medical expenses to its officer\u2019s contrary to the requirements of Section M (m-a) (14) of the Public Service Standing Orders, 2010. \uf0b7 USD.7,979.94 (equivalent to UGX.29,605,577) out of which USD.5,319.96 (equivalent to UGX.19,737,051) representing 2/3 of the amount should have been recovered from the respective staff was incurred on the payments for telephone bills during the period. The recovery was not affected. \uf0b7 Out of an approved staff structure of 5 staff positions for the Mission, 4 (80%) were filled leaving 1 (20%) vacant. |\n|---:|:-------------|:------------------------------------------------------------------------------------------------------------------------------------------|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | useful life. \uf0b7 Out of an approved staff structure of 5 staff positions for the Mission, two (2) (40%) were filled leaving 3 (60%) vacant. | Unnamed: 2 |", "metadata": {"page": 195, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Unqualified | UGX.4.169Bn and observed that 2 outputs with a total of 6 activities and expenditure worth UGX.0.95Bn were fully quantified, 1 output with a total of 4 activities and expenditure worth UGX.3.11Bn was insufficiently quantified while 1 output with 1 activity and expenditure worth UGX.0.11 was totally not quantified. I further observed that no output was fully implemented while 3 outputs with 10 activities worth UGX.4.09Bn were partially implemented. \uf0b7 Funds to the tune of USD.4,393.04 (equivalent to UGX.15,595,150) were irregularly diverted from the activities on which they were budgeted and spent on other activities without seeking and obtaining the necessary approvals. \uf0b7 The Mission did not prepare and submit annual monitoring plans to MoFPED and NPA and also did not prepare and submit quarterly monitoring reports to the Office of the Prime Minister and MoFPED contrary to Paragraph 58 of the Budget Execution Circular for 2019/20. \uf0b7 The entity submitted performance reports for Q1, Q2 and Q3 after the deadline given for submission. \uf0b7 The Embassy paid USD.17,500.00 (equivalent to UGX.64,925,000) in respect of education allowances direct to its officials instead of their respective education institutions or schools contrary to Section (E - e) Paragraphs 19 and 20 of the Public Service Standing Orders, 2010. \uf0b7 The Embassy spent USD.3,702.42 (equivalent to UGX.13,702,656.42) on refunds for medical expenses to its officer\u2019s contrary to the requirements of Section M (m-a) (14) of the Public Service Standing Orders, 2010. \uf0b7 USD.7,979.94 (equivalent to UGX.29,605,577) out of which USD.5,319.96 (equivalent to UGX.19,737,051) representing 2/3 of the amount should have been recovered from the respective staff was incurred on the payments for telephone bills during the period. The recovery was not affected. \uf0b7 Out of an approved staff structure of 5 staff positions for the Mission, 4 (80%) were filled leaving 1 (20%) vacant. |\n|---:|-------------:|:------------------------------------------------------|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 18 | Uganda Embassy in Kinshasa. 2019/20 Opinion Qualified | \uf0b7 UGX.241,949,940 was reported as the variance between the approved budget/warrants and the actual expenditure instead of UGX.3,564,587. The source of UGX.241,949,940 could not be established. \uf0b7 The statement of revenue collected in the financial statements in comparison with statement of performance and the NTR estimates for the year revealed different amounts were budgeted for as NTR collections for the year UGX.700,000,000 in the Statement of Performance, UGX.2,090,000,000 in the NTR estimates book, UGX.245,514,528 in the Statement of Appropriation (based on services voted) and UGX.245,514,528 in the Statement of revenue collected during the year. This misleads the users of the financial statements. \uf0b7 All 8 strategic targets/goals in the Mission charter were partially achieved. \uf0b7 There was a shortfall in NTR collections amounting to UGX.1.844Bn representing 11.75% performance. \uf0b7 I sampled 3 outputs with a total of 6 activities and actual expenditure of UGX.4.13Bn and observed that 2 outputs with a total of 4 activities and expenditure worth UGX.1.21Bn were fully quantified while 1 output with a total of 2 activities and expenditure worth UGX.2.91Bn was insufficiently quantified. Of the outputs that were fully quantified, 4 activities worth UGX.1.21Bn were partially implemented. \uf0b7 The Mission did not prepare and submit annual monitoring plans to MoFPED and NPA and also did not prepare and submit quarterly monitoring reports to the Office of the Prime Minister and MoFPED contrary to Paragraph 58 of the Budget Execution Circular for 2019/20. \uf0b7 The entity submitted performance reports for Q1, and Q4 after the deadline given for submission. \uf0b7 The Embassy paid UGX.83,932,425 in respect of education allowances direct to its officials instead of their respective education institutions or schools contrary to Section (E - e) Paragraphs 19 and 20 of the Public Service Standing Orders, 2010. \uf0b7 USD.45,232 (equivalent to UGX.168,730,287) was spent on purchases and allowances which are not small incidental expenditures such as postage and other office costs as guided by the Treasury Instructions 2017. I found this irregular. \uf0b7 The Embassy paid allowances to staff in form of COVID Allowances totalling to USD.3,100 (equivalent to UGX.11,564,023), a period when DR Congo was under lock down (March to June, 2020) contrary to Paragraph (E-a)1 \u2013 2 of the Public Service Standing Orders, 2010 . \uf0b7 I noted that procurements worth UGX.54,649,335 were undertaken outside the approved procurement plan and procurement for medical insurance of staff worth UGX.71,495,505 was a direct procurement with no justification. \uf0b7 The Embassy had a fixed asset register that lacked information such as date of purchase, estimated useful life, maintenance costs and the expected date of disposal and a number of the entity\u2019s assets were not well maintained and utilized. \uf0b7 Out of an approved staff structure of 21 staff positions for the Mission, 18 |", "metadata": {"page": 195, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Unqualified | UGX.4.169Bn and observed that 2 outputs with a total of 6 activities and expenditure worth UGX.0.95Bn were fully quantified, 1 output with a total of 4 activities and expenditure worth UGX.3.11Bn was insufficiently quantified while 1 output with 1 activity and expenditure worth UGX.0.11 was totally not quantified. I further observed that no output was fully implemented while 3 outputs with 10 activities worth UGX.4.09Bn were partially implemented. \uf0b7 Funds to the tune of USD.4,393.04 (equivalent to UGX.15,595,150) were irregularly diverted from the activities on which they were budgeted and spent on other activities without seeking and obtaining the necessary approvals. \uf0b7 The Mission did not prepare and submit annual monitoring plans to MoFPED and NPA and also did not prepare and submit quarterly monitoring reports to the Office of the Prime Minister and MoFPED contrary to Paragraph 58 of the Budget Execution Circular for 2019/20. \uf0b7 The entity submitted performance reports for Q1, Q2 and Q3 after the deadline given for submission. \uf0b7 The Embassy paid USD.17,500.00 (equivalent to UGX.64,925,000) in respect of education allowances direct to its officials instead of their respective education institutions or schools contrary to Section (E - e) Paragraphs 19 and 20 of the Public Service Standing Orders, 2010. \uf0b7 The Embassy spent USD.3,702.42 (equivalent to UGX.13,702,656.42) on refunds for medical expenses to its officer\u2019s contrary to the requirements of Section M (m-a) (14) of the Public Service Standing Orders, 2010. \uf0b7 USD.7,979.94 (equivalent to UGX.29,605,577) out of which USD.5,319.96 (equivalent to UGX.19,737,051) representing 2/3 of the amount should have been recovered from the respective staff was incurred on the payments for telephone bills during the period. The recovery was not affected. \uf0b7 Out of an approved staff structure of 5 staff positions for the Mission, 4 (80%) were filled leaving 1 (20%) vacant. |\n|---:|:-------------|:--------------------------------------------------------------------|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | (85.7%) were filled leaving 3 (14.3%) vacant. | Unnamed: 2 |\n| 1 | 19 | Uganda High Commission in Kuala Lumpur. 2019/20 Opinion Unqualified | \uf0b7 Out of the planned 10 (ten) strategic targets/goals in the Mission charter, one (1) target had been fully achieved, three (3) were partially achieved, while six (6) were not achieved. \uf0b7 There was a shortfall in NTR collections amounting to UGX.2.068Bn representing 1% performance. \uf0b7 I sampled 3 outputs with a total of 13 activities and actual expenditure of UGX.3.57Bn and observed that 2 outputs with a total of 9 activities and expenditure worth UGX.0.87Bn were fully quantified while 1 output with a total of 4 activities and expenditure worth UGX.2.6Bn was insufficiently quantified. Of the fully quantified outputs, 1 output with 5 activities worth UGX.0.21Bn was fully implemented while 1 output with 4 activities worth UGX.0.66Bn was partially implemented. \uf0b7 Funds to the tune of MYR.11,209 (equivalent to UGX.9,763,039) were irregularly diverted from purchase of specialized machinery and equipment for which they were budgeted to purchase of curtains without seeking and obtaining the necessary approvals. \uf0b7 The Mission did not prepare and submit annual monitoring plans to MoFPED and NPA and also did not prepare and submit quarterly monitoring reports to the Office of the Prime Minister and MoFPED contrary to Paragraph 58 of the Budget Execution Circular for 2019/20. \uf0b7 The Mission submitted performance reports for Q2 and Q3 after the deadline given for submission of the reports. \uf0b7 The Embassy paid MYR.136,000 (equivalent to UGX.118,456,000) in respect of education allowances direct to its officials instead of their respective education institutions or schools contrary to Section (E - e) Paragraphs 19 and 20 of the Public Service Standing Orders, 2010. \uf0b7 The Mission has an approved staff structure of five (5) staff positions out of which, two (2) (40%) were filled leaving three (3) (60%) vacant. \uf0b7 Management of the Embassy paid salary and FSA advances to staff to the tune of MYR.185,950 (equivalent to UGX.160,995,510) which exceeded three (3) months gross pay and no authority was sought from Secretary to the Treasury. This is contrary to the Public Service Standing Orders, 2010. |", "metadata": {"page": 196, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Unqualified | UGX.4.169Bn and observed that 2 outputs with a total of 6 activities and expenditure worth UGX.0.95Bn were fully quantified, 1 output with a total of 4 activities and expenditure worth UGX.3.11Bn was insufficiently quantified while 1 output with 1 activity and expenditure worth UGX.0.11 was totally not quantified. I further observed that no output was fully implemented while 3 outputs with 10 activities worth UGX.4.09Bn were partially implemented. \uf0b7 Funds to the tune of USD.4,393.04 (equivalent to UGX.15,595,150) were irregularly diverted from the activities on which they were budgeted and spent on other activities without seeking and obtaining the necessary approvals. \uf0b7 The Mission did not prepare and submit annual monitoring plans to MoFPED and NPA and also did not prepare and submit quarterly monitoring reports to the Office of the Prime Minister and MoFPED contrary to Paragraph 58 of the Budget Execution Circular for 2019/20. \uf0b7 The entity submitted performance reports for Q1, Q2 and Q3 after the deadline given for submission. \uf0b7 The Embassy paid USD.17,500.00 (equivalent to UGX.64,925,000) in respect of education allowances direct to its officials instead of their respective education institutions or schools contrary to Section (E - e) Paragraphs 19 and 20 of the Public Service Standing Orders, 2010. \uf0b7 The Embassy spent USD.3,702.42 (equivalent to UGX.13,702,656.42) on refunds for medical expenses to its officer\u2019s contrary to the requirements of Section M (m-a) (14) of the Public Service Standing Orders, 2010. \uf0b7 USD.7,979.94 (equivalent to UGX.29,605,577) out of which USD.5,319.96 (equivalent to UGX.19,737,051) representing 2/3 of the amount should have been recovered from the respective staff was incurred on the payments for telephone bills during the period. The recovery was not affected. \uf0b7 Out of an approved staff structure of 5 staff positions for the Mission, 4 (80%) were filled leaving 1 (20%) vacant. |\n|---:|-------------:|:--------------------------------------------------------------|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 20 | Uganda High Commission in London. 2019/20 Opinion Unqualified | \uf0b7 Out of the planned 9 (nine) strategic targets/goals in the Mission charter, four (4) targets had been fully achieved, three (3) were partially achieved, while two (2) were not achieved. \uf0b7 There was a shortfall in NTR collections amounting to UGX.1.604Bn representing 31% performance. \uf0b7 I sampled 4 outputs with a total of 7 activities and actual expenditure of UGX.7.32Bn and observed that all the 4 outputs with 7 activities and expenditure worth UGX.7.32Bn were not quantified to enable assessment of performance. \uf0b7 Funds to the tune of GBP.2,598.56 (equivalent to UGX.11,756,583) were irregularly diverted from purchase of specialized machinery and equipment for which they were budgeted to purchase of curtains without seeking and obtaining the necessary approvals. \uf0b7 Entities are supposed to report actual performance of the quarter as well as the cumulative activities of the previous quarter(s). I observed that cumulative performance reports did not include activities implemented in |", "metadata": {"page": 196, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Unqualified | UGX.4.169Bn and observed that 2 outputs with a total of 6 activities and expenditure worth UGX.0.95Bn were fully quantified, 1 output with a total of 4 activities and expenditure worth UGX.3.11Bn was insufficiently quantified while 1 output with 1 activity and expenditure worth UGX.0.11 was totally not quantified. I further observed that no output was fully implemented while 3 outputs with 10 activities worth UGX.4.09Bn were partially implemented. \uf0b7 Funds to the tune of USD.4,393.04 (equivalent to UGX.15,595,150) were irregularly diverted from the activities on which they were budgeted and spent on other activities without seeking and obtaining the necessary approvals. \uf0b7 The Mission did not prepare and submit annual monitoring plans to MoFPED and NPA and also did not prepare and submit quarterly monitoring reports to the Office of the Prime Minister and MoFPED contrary to Paragraph 58 of the Budget Execution Circular for 2019/20. \uf0b7 The entity submitted performance reports for Q1, Q2 and Q3 after the deadline given for submission. \uf0b7 The Embassy paid USD.17,500.00 (equivalent to UGX.64,925,000) in respect of education allowances direct to its officials instead of their respective education institutions or schools contrary to Section (E - e) Paragraphs 19 and 20 of the Public Service Standing Orders, 2010. \uf0b7 The Embassy spent USD.3,702.42 (equivalent to UGX.13,702,656.42) on refunds for medical expenses to its officer\u2019s contrary to the requirements of Section M (m-a) (14) of the Public Service Standing Orders, 2010. \uf0b7 USD.7,979.94 (equivalent to UGX.29,605,577) out of which USD.5,319.96 (equivalent to UGX.19,737,051) representing 2/3 of the amount should have been recovered from the respective staff was incurred on the payments for telephone bills during the period. The recovery was not affected. \uf0b7 Out of an approved staff structure of 5 staff positions for the Mission, 4 (80%) were filled leaving 1 (20%) vacant. |\n|---:|:-------------|:-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | the previous quarter(s). \uf0b7 The Mission had total collections including balance brought forward from previous year of UGX.1,606,177,645 out of which UGX.706,072,607 had been transferred to the Treasury for onward transfer to the Consolidated Fund leaving a balance UGX.900,105,038 not remitted. \uf0b7 Payables increased from UGX.130,550,604 in the previous year to UGX.161,515,890 in the year under review, an increase of 24%. The arrears remained unsettled at the close of the year. \uf0b7 Management has accumulated receivable advances to the tune of UGX.105,435,937 of which UGX.79,896,783 (76%) relates to the prior year and remains unrecovered. \uf0b7 The Statement of Stores and Other Assets (physical assets) as at the end of the financial year 2019/2020 revealed that additions during the year relating to non-residential buildings were disclosed as UGX.465,161,335, however, the Embassy procured items amounting to GBP.107,661 (equivalent to UGX.494,777,699) implying that items worth UGX.29,616,364 were not disclosed in this statement thus understating the Statement of Stores and Other Assets (physical assets). \uf0b7 The Embassy had a capital expenditure budget of UGX.275,000,000 but items worth UGX.494,777,699 were procured resulting into an over expenditure of UGX.224,777,699. \uf0b7 The Embassy paid GBP.28,187.49 (equivalent UGX.129,541,258) in respect of education allowances direct to its officials instead of their respective education institutions or schools contrary to Section (E - e) Paragraphs 19 and 20 of the Public Service Standing Orders, 2010. \uf0b7 The Embassy spent GBP.14,300.09 (equivalent to UGX.65,718,929) on refunds for medical expenses to its officers contrary to the requirements of Section M (m-a) (14) of the Public Service Standing Orders, 2010. \uf0b7 The Mission has an approved staff structure of eight (8) staff positions out of which, 5 (63%) were filled leaving 3 (37%) vacant. | Unnamed: 2 |", "metadata": {"page": 197, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Unqualified | UGX.4.169Bn and observed that 2 outputs with a total of 6 activities and expenditure worth UGX.0.95Bn were fully quantified, 1 output with a total of 4 activities and expenditure worth UGX.3.11Bn was insufficiently quantified while 1 output with 1 activity and expenditure worth UGX.0.11 was totally not quantified. I further observed that no output was fully implemented while 3 outputs with 10 activities worth UGX.4.09Bn were partially implemented. \uf0b7 Funds to the tune of USD.4,393.04 (equivalent to UGX.15,595,150) were irregularly diverted from the activities on which they were budgeted and spent on other activities without seeking and obtaining the necessary approvals. \uf0b7 The Mission did not prepare and submit annual monitoring plans to MoFPED and NPA and also did not prepare and submit quarterly monitoring reports to the Office of the Prime Minister and MoFPED contrary to Paragraph 58 of the Budget Execution Circular for 2019/20. \uf0b7 The entity submitted performance reports for Q1, Q2 and Q3 after the deadline given for submission. \uf0b7 The Embassy paid USD.17,500.00 (equivalent to UGX.64,925,000) in respect of education allowances direct to its officials instead of their respective education institutions or schools contrary to Section (E - e) Paragraphs 19 and 20 of the Public Service Standing Orders, 2010. \uf0b7 The Embassy spent USD.3,702.42 (equivalent to UGX.13,702,656.42) on refunds for medical expenses to its officer\u2019s contrary to the requirements of Section M (m-a) (14) of the Public Service Standing Orders, 2010. \uf0b7 USD.7,979.94 (equivalent to UGX.29,605,577) out of which USD.5,319.96 (equivalent to UGX.19,737,051) representing 2/3 of the amount should have been recovered from the respective staff was incurred on the payments for telephone bills during the period. The recovery was not affected. \uf0b7 Out of an approved staff structure of 5 staff positions for the Mission, 4 (80%) were filled leaving 1 (20%) vacant. |\n|---:|-------------:|:---------------------------------------------------------|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 21 | Uganda Embassy in Mogadishu. 2019/20 Opinion Unqualified | \uf0b7 Out of the planned 5 strategic targets/goals in the Mission charter, all the 5 were partially achieved. \uf0b7 There was a shortfall in NTR collections amounting to UGX.3.14Bn representing 0% performance. \uf0b7 Out of the total receipts of UGX.3.78Bn, UGX.2.87Bn was spent by the entity resulting in an unspent balance of UGX.0.91Bn representing an absorption level of 76%. \uf0b7 I sampled 3 outputs with a total of 6 activities and actual expenditure of UGX.2.87Bn and observed that all the 3 outputs with a total of 6 activities and expenditure worth UGX.2.87Bn were not quantified at all. I was therefore unable to assess the implementation of outputs/activities of the Mission. \uf0b7 Funds to the tune of UGX.16,835,000 were irregularly diverted from the activities on which they were budgeted and spent on other activities without seeking and obtaining the necessary approvals. \uf0b7 The Mission did not prepare and submit annual monitoring plans to MoFPED and NPA and also did not prepare and submit quarterly monitoring reports to the Office of the Prime Minister and MoFPED contrary to Paragraph 58 of the Budget Execution Circular for 2019/20. \uf0b7 The Mission submitted performance reports for Q1, Q2, Q3 and Q4 after |", "metadata": {"page": 197, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Unqualified | UGX.4.169Bn and observed that 2 outputs with a total of 6 activities and expenditure worth UGX.0.95Bn were fully quantified, 1 output with a total of 4 activities and expenditure worth UGX.3.11Bn was insufficiently quantified while 1 output with 1 activity and expenditure worth UGX.0.11 was totally not quantified. I further observed that no output was fully implemented while 3 outputs with 10 activities worth UGX.4.09Bn were partially implemented. \uf0b7 Funds to the tune of USD.4,393.04 (equivalent to UGX.15,595,150) were irregularly diverted from the activities on which they were budgeted and spent on other activities without seeking and obtaining the necessary approvals. \uf0b7 The Mission did not prepare and submit annual monitoring plans to MoFPED and NPA and also did not prepare and submit quarterly monitoring reports to the Office of the Prime Minister and MoFPED contrary to Paragraph 58 of the Budget Execution Circular for 2019/20. \uf0b7 The entity submitted performance reports for Q1, Q2 and Q3 after the deadline given for submission. \uf0b7 The Embassy paid USD.17,500.00 (equivalent to UGX.64,925,000) in respect of education allowances direct to its officials instead of their respective education institutions or schools contrary to Section (E - e) Paragraphs 19 and 20 of the Public Service Standing Orders, 2010. \uf0b7 The Embassy spent USD.3,702.42 (equivalent to UGX.13,702,656.42) on refunds for medical expenses to its officer\u2019s contrary to the requirements of Section M (m-a) (14) of the Public Service Standing Orders, 2010. \uf0b7 USD.7,979.94 (equivalent to UGX.29,605,577) out of which USD.5,319.96 (equivalent to UGX.19,737,051) representing 2/3 of the amount should have been recovered from the respective staff was incurred on the payments for telephone bills during the period. The recovery was not affected. \uf0b7 Out of an approved staff structure of 5 staff positions for the Mission, 4 (80%) were filled leaving 1 (20%) vacant. |\n|---:|:-------------|:-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | the deadline given for submission. \uf0b7 The Mission had total collections including balance brought forward from previous year of UGX.850,244,773 out of which UGX.7,829 had been transferred to the Treasury for onward transfer to the Consolidated Fund leaving a balance UGX.850,236,944 not remitted. \uf0b7 USD.1,020,250 (equivalent to UGX.3,800,767,933) was withdrawn as petty cash during the year out of which USD.340,250.00 (equivalent to UGX.1,267,543,533) was withdrawn in the last quarter of the financial year (March, April, May and June), the period affected by COVID 19 lockdown which appears irregular. \uf0b7 The Embassy paid UGX.83,250,000 in respect of education allowances direct to its officials instead of their respective education institutions or schools contrary to Section (E - e) Paragraphs 19 and 20 of the Public Service Standing Orders, 2010. | Unnamed: 2 |", "metadata": {"page": 198, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Unqualified | UGX.4.169Bn and observed that 2 outputs with a total of 6 activities and expenditure worth UGX.0.95Bn were fully quantified, 1 output with a total of 4 activities and expenditure worth UGX.3.11Bn was insufficiently quantified while 1 output with 1 activity and expenditure worth UGX.0.11 was totally not quantified. I further observed that no output was fully implemented while 3 outputs with 10 activities worth UGX.4.09Bn were partially implemented. \uf0b7 Funds to the tune of USD.4,393.04 (equivalent to UGX.15,595,150) were irregularly diverted from the activities on which they were budgeted and spent on other activities without seeking and obtaining the necessary approvals. \uf0b7 The Mission did not prepare and submit annual monitoring plans to MoFPED and NPA and also did not prepare and submit quarterly monitoring reports to the Office of the Prime Minister and MoFPED contrary to Paragraph 58 of the Budget Execution Circular for 2019/20. \uf0b7 The entity submitted performance reports for Q1, Q2 and Q3 after the deadline given for submission. \uf0b7 The Embassy paid USD.17,500.00 (equivalent to UGX.64,925,000) in respect of education allowances direct to its officials instead of their respective education institutions or schools contrary to Section (E - e) Paragraphs 19 and 20 of the Public Service Standing Orders, 2010. \uf0b7 The Embassy spent USD.3,702.42 (equivalent to UGX.13,702,656.42) on refunds for medical expenses to its officer\u2019s contrary to the requirements of Section M (m-a) (14) of the Public Service Standing Orders, 2010. \uf0b7 USD.7,979.94 (equivalent to UGX.29,605,577) out of which USD.5,319.96 (equivalent to UGX.19,737,051) representing 2/3 of the amount should have been recovered from the respective staff was incurred on the payments for telephone bills during the period. The recovery was not affected. \uf0b7 Out of an approved staff structure of 5 staff positions for the Mission, 4 (80%) were filled leaving 1 (20%) vacant. |\n|---:|-------------:|:---------------------------------------------------------|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 22 | Uganda Consulate in Mombasa. 2019/20 Opinion Unqualified | \uf0b7 Out of the planned 6 strategic targets/goals in the Mission charter, 2 outputs/targets had been fully achieved while 4 were partially achieved. \uf0b7 There was a shortfall in NTR collections amounting to UGX.2.089Bn representing 0.01% performance. \uf0b7 Out of the total receipts for the financial year of UGX.1.996Bn, UGX.1.883Bn was spent by the entity resulting in an under expenditure of UGX.0.113Bn representing an absorption level of 94.34%. \uf0b7 UGX.12,562,792 was received as off-budget financing for a symposium held in the financial year under review but the funds were not disclosed in the financial statements. \uf0b7 I sampled 3 outputs with a total of 4 activities and actual expenditure of UGX.1.883Bn and observed that 1 output with a total of 2 activities and expenditure worth UGX.0.73Bn was fully quantified while 2 outputs with a total of 2 activities and expenditure worth UGX.1.15Bn were insufficiently quantified. The quantified output with all its activities with its activities and expenditure worth UGX.0.73Bn was partially implemented. \uf0b7 Funds to the tune of UGX.5,205,620 were charged wrongly on other expenditure item codes without obtaining the necessary approvals. \uf0b7 The Mission did not prepare and submit annual monitoring plans to MoFPED and NPA and also did not prepare and submit quarterly monitoring reports to the Office of the Prime Minister and MoFPED contrary to Paragraph 58 of the Budget Execution Circular for 2019/20. \uf0b7 Entities are supposed to report actual performance of the quarter as well as the cumulative activities of the previous quarter(s). I observed that cumulative performance reports did not include activities implemented in the previous quarter(s). \uf0b7 The Embassy paid UGX.44,763,960 in respect of education allowances direct to its officials instead of their respective education institutions or schools contrary to Section (E - e) Paragraphs 19 and 20 of the Public Service Standing Orders, 2010. \uf0b7 A number of the Consulate\u2019s assets were old and due for boarding off but were still at the Consulate resulting into loss of value and high maintenance costs. |\n| 1 | 23 | Uganda Embassy in Moscow. 2019/20 | \uf0b7 Out of the planned 24 (twenty-four) strategic targets/goals in the Mission charter, thirteen (13) targets had been fully achieved, eight (8) were partially achieved, while three (3) were not achieved. |", "metadata": {"page": 198, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Opinion Unqualified | \uf0b7 There was a shortfall in NTR collections amounting to UGX.1.462Bn representing 6.8% performance. \uf0b7 I sampled 4 outputs with a total of 12 activities and actual expenditure of UGX.4.32Bn and observed that 2 outputs with a total of 8 activities and expenditure worth UGX.4Bn were fully quantified while 2 outputs with a total of 4 activities and expenditure worth UGX.0.32Bn were not quantified. The quantified outputs were partially quantified. \uf0b7 The Mission did not prepare and submit annual monitoring plans to MoFPED and NPA and also did not prepare and submit quarterly monitoring reports to the Office of the Prime Minister and MoFPED contrary to Paragraph 58 of the Budget Execution Circular for 2019/20. \uf0b7 The Mission submitted performance reports for Q1, and Q3, after the deadline given for submission \uf0b7 The Statement of Stores and Other Assets (physical assets) as at the end of the financial year 2019/2020 revealed that additions during the year relating to non-residential buildings were disclosed as UGX.149,778,932, however, the Embassy procured items amounting to UGX.333,509,897 implying that items worth UGX.183,730,965 were not disclosed in this statement thus understating the Statement of Stores and Other Assets (physical assets). \uf0b7 The Embassy had an approved budget of UGX.196,000,000 for procurement of furniture and fixtures but a sum of UGX.333,509,897 on this item resulting into an excess expenditure of UGX.137,509,987. \uf0b7 The Embassy procured furniture and fittings for furnishing six residencies and a Chancery worth RUB.6,795,232 (equivalent to UGX.333,509,897) but were not recorded in the Embassy asset register as well as the Board of Survey report, direct procurement method was used without justification, procurements did not undergo any evaluation of bids, contracts committee was not involved during the procurement process and contract managers were not appointed for all the procurements. \uf0b7 The Assets Register maintained by the Embassy was not in the format prescribed in the Treasury Instructions as it lacked details of date of purchase, cost of purchase, maintenance cost, asset code and estimated useful life. \uf0b7 The Embassy spent RUB.1,052,189.97 and EURO.370.37 (approximately UGX.53,187,249) on refunds for medical expenses to its officers contrary to the requirements of Section M (m-a) (14) of the Public Service Standing Orders, 2010. \uf0b7 Salary advances to the tune of Euro. 4,681.18 (equivalent to UGX.19,537,232) were paid to to staff which exceeded three (3) months gross and though authorised by the Accounting Officer of the Embassy, no authority was sought from Secretary to the Treasury contrary to the Public Service Standing Orders. |\n|---:|-------------:|:---------------------------------------------------------------|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 24 | Uganda High Commission in Nairobi. 2019/20 Opinion Unqualified | \uf0b7 Out of the planned 10 (ten) strategic targets/goals in the Mission charter, 2 (two) were partially achieved while eight (8) were not achieved. \uf0b7 There was a shortfall in NTR collections amounting to UGX.2.73Bn representing 12.8% performance. \uf0b7 Out of the total receipts for the financial year of UGX.4.94Bn, UGX.3.77Bn was spent by the entity resulting in an unspent balance of UGX.1.17Bn representing an absorption level of 76.3%. \uf0b7 I sampled 4 outputs with a total of 7 activities and actual expenditure of |", "metadata": {"page": 199, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Opinion Unqualified | \uf0b7 There was a shortfall in NTR collections amounting to UGX.1.462Bn representing 6.8% performance. \uf0b7 I sampled 4 outputs with a total of 12 activities and actual expenditure of UGX.4.32Bn and observed that 2 outputs with a total of 8 activities and expenditure worth UGX.4Bn were fully quantified while 2 outputs with a total of 4 activities and expenditure worth UGX.0.32Bn were not quantified. The quantified outputs were partially quantified. \uf0b7 The Mission did not prepare and submit annual monitoring plans to MoFPED and NPA and also did not prepare and submit quarterly monitoring reports to the Office of the Prime Minister and MoFPED contrary to Paragraph 58 of the Budget Execution Circular for 2019/20. \uf0b7 The Mission submitted performance reports for Q1, and Q3, after the deadline given for submission \uf0b7 The Statement of Stores and Other Assets (physical assets) as at the end of the financial year 2019/2020 revealed that additions during the year relating to non-residential buildings were disclosed as UGX.149,778,932, however, the Embassy procured items amounting to UGX.333,509,897 implying that items worth UGX.183,730,965 were not disclosed in this statement thus understating the Statement of Stores and Other Assets (physical assets). \uf0b7 The Embassy had an approved budget of UGX.196,000,000 for procurement of furniture and fixtures but a sum of UGX.333,509,897 on this item resulting into an excess expenditure of UGX.137,509,987. \uf0b7 The Embassy procured furniture and fittings for furnishing six residencies and a Chancery worth RUB.6,795,232 (equivalent to UGX.333,509,897) but were not recorded in the Embassy asset register as well as the Board of Survey report, direct procurement method was used without justification, procurements did not undergo any evaluation of bids, contracts committee was not involved during the procurement process and contract managers were not appointed for all the procurements. \uf0b7 The Assets Register maintained by the Embassy was not in the format prescribed in the Treasury Instructions as it lacked details of date of purchase, cost of purchase, maintenance cost, asset code and estimated useful life. \uf0b7 The Embassy spent RUB.1,052,189.97 and EURO.370.37 (approximately UGX.53,187,249) on refunds for medical expenses to its officers contrary to the requirements of Section M (m-a) (14) of the Public Service Standing Orders, 2010. \uf0b7 Salary advances to the tune of Euro. 4,681.18 (equivalent to UGX.19,537,232) were paid to to staff which exceeded three (3) months gross and though authorised by the Accounting Officer of the Embassy, no authority was sought from Secretary to the Treasury contrary to the Public Service Standing Orders. |\n|---:|:-------------|:------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | UGX.3.77Bn and observed that all the 4 outputs with a total of 7 activities and expenditure worth UGX.3.77Bn were fully quantified but were partially implemented. \uf0b7 The Mission did not prepare and submit annual monitoring plans to MoFPED and NPA and also did not prepare and submit quarterly monitoring reports to the Office of the Prime Minister and MoFPED contrary to Paragraph 58 of the Budget Execution Circular for 2019/20. \uf0b7 The Mission submitted performance reports for all quarters after the deadline given for submission. I also observed that cumulative performance reports revealed that the subsequent quarterly performance reports did not include activities implemented in the previous quarter(s). \uf0b7 Accumulated arrears of revenue to the tune of UGX.181,948,023 most of which related to the prior year remained uncollected. \uf0b7 The Embassy paid a sum of USD.46,950 (equivalent to UGX.174,513,150) to Toyota Kenya Limited for the acquisition of a Land Cruiser Prado but the procurement was undertaken by the High Commissioner instead of the Accounting Officer which resulted into usurping the powers of the Accounting Officer, over committing the Mission, non-compliance with Government ban on acquisition of motor vehicles, un-planned procurement, use of inappropriate procurement method and failure to involve the Contracts Committee. \uf0b7 The Embassy paid KES.3,360,000 (equivalent to UGX.117,633,600) in respect of education allowances direct to its officials instead of their respective education institutions or schools contrary to Section (E - e) Paragraphs 19 and 20 of the Public Service Standing Orders, 2010. \uf0b7 The Embassy spent KES.620,485 (equivalent to UGX.21,723,180)on refunds for medical expenses to its officers contrary to the requirements of Section M (m-a) (14) of the Public Service Standing Orders, 2010. \uf0b7 The Mission did not have a fixed assets register in the format prescribed in the Treasury Instructions and therefore additions and disposals to the assets could not be verified. I further observed that a number of the entity\u2019s assets were old and due for boarding off exposing the assets to loss of value and high maintenance costs. \uf0b7 The Mission has an approved staff structure of seven (7) staff positions out of which 5 (71.4%) were filled leaving 2 (28.5%) vacant. | Unnamed: 2 |", "metadata": {"page": 200, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Opinion Unqualified | \uf0b7 There was a shortfall in NTR collections amounting to UGX.1.462Bn representing 6.8% performance. \uf0b7 I sampled 4 outputs with a total of 12 activities and actual expenditure of UGX.4.32Bn and observed that 2 outputs with a total of 8 activities and expenditure worth UGX.4Bn were fully quantified while 2 outputs with a total of 4 activities and expenditure worth UGX.0.32Bn were not quantified. The quantified outputs were partially quantified. \uf0b7 The Mission did not prepare and submit annual monitoring plans to MoFPED and NPA and also did not prepare and submit quarterly monitoring reports to the Office of the Prime Minister and MoFPED contrary to Paragraph 58 of the Budget Execution Circular for 2019/20. \uf0b7 The Mission submitted performance reports for Q1, and Q3, after the deadline given for submission \uf0b7 The Statement of Stores and Other Assets (physical assets) as at the end of the financial year 2019/2020 revealed that additions during the year relating to non-residential buildings were disclosed as UGX.149,778,932, however, the Embassy procured items amounting to UGX.333,509,897 implying that items worth UGX.183,730,965 were not disclosed in this statement thus understating the Statement of Stores and Other Assets (physical assets). \uf0b7 The Embassy had an approved budget of UGX.196,000,000 for procurement of furniture and fixtures but a sum of UGX.333,509,897 on this item resulting into an excess expenditure of UGX.137,509,987. \uf0b7 The Embassy procured furniture and fittings for furnishing six residencies and a Chancery worth RUB.6,795,232 (equivalent to UGX.333,509,897) but were not recorded in the Embassy asset register as well as the Board of Survey report, direct procurement method was used without justification, procurements did not undergo any evaluation of bids, contracts committee was not involved during the procurement process and contract managers were not appointed for all the procurements. \uf0b7 The Assets Register maintained by the Embassy was not in the format prescribed in the Treasury Instructions as it lacked details of date of purchase, cost of purchase, maintenance cost, asset code and estimated useful life. \uf0b7 The Embassy spent RUB.1,052,189.97 and EURO.370.37 (approximately UGX.53,187,249) on refunds for medical expenses to its officers contrary to the requirements of Section M (m-a) (14) of the Public Service Standing Orders, 2010. \uf0b7 Salary advances to the tune of Euro. 4,681.18 (equivalent to UGX.19,537,232) were paid to to staff which exceeded three (3) months gross and though authorised by the Accounting Officer of the Embassy, no authority was sought from Secretary to the Treasury contrary to the Public Service Standing Orders. |\n|---:|-------------:|:---------------------------------------------------------|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 25 | Uganda Embassy in New Delhi. 2019/20 Opinion Unqualified | \uf0b7 Out of the planned 6 (six) strategic targets/goals in the Mission charter, 1 (one) was fully achieved while 2 (two) were partially achieved while three (3) were not achieved. \uf0b7 There was a shortfall in NTR collections amounting to UGX.2.62Bn representing 0.0015% performance. \uf0b7 Out of the total receipts for the financial year of UGX.4.554Bn, UGX.3.732Bn was spent by the entity resulting in an unspent balance of UGX.0.822Bn representing an absorption level of 81.9%. \uf0b7 I sampled 3 outputs with a total of 6 activities and actual expenditure of UGX.3.732Bn and observed that all the 3 outputs were fully quantified and none was fully implemented. \uf0b7 Funds to the tune of INR.42,262 (equivalent to UGX.2,062,385) were irregularly diverted from the activities on which they were budgeted and spent on other activities without seeking and obtaining the necessary approvals. \uf0b7 The Mission did not prepare and submit annual monitoring plans to |", "metadata": {"page": 200, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Opinion Unqualified | \uf0b7 There was a shortfall in NTR collections amounting to UGX.1.462Bn representing 6.8% performance. \uf0b7 I sampled 4 outputs with a total of 12 activities and actual expenditure of UGX.4.32Bn and observed that 2 outputs with a total of 8 activities and expenditure worth UGX.4Bn were fully quantified while 2 outputs with a total of 4 activities and expenditure worth UGX.0.32Bn were not quantified. The quantified outputs were partially quantified. \uf0b7 The Mission did not prepare and submit annual monitoring plans to MoFPED and NPA and also did not prepare and submit quarterly monitoring reports to the Office of the Prime Minister and MoFPED contrary to Paragraph 58 of the Budget Execution Circular for 2019/20. \uf0b7 The Mission submitted performance reports for Q1, and Q3, after the deadline given for submission \uf0b7 The Statement of Stores and Other Assets (physical assets) as at the end of the financial year 2019/2020 revealed that additions during the year relating to non-residential buildings were disclosed as UGX.149,778,932, however, the Embassy procured items amounting to UGX.333,509,897 implying that items worth UGX.183,730,965 were not disclosed in this statement thus understating the Statement of Stores and Other Assets (physical assets). \uf0b7 The Embassy had an approved budget of UGX.196,000,000 for procurement of furniture and fixtures but a sum of UGX.333,509,897 on this item resulting into an excess expenditure of UGX.137,509,987. \uf0b7 The Embassy procured furniture and fittings for furnishing six residencies and a Chancery worth RUB.6,795,232 (equivalent to UGX.333,509,897) but were not recorded in the Embassy asset register as well as the Board of Survey report, direct procurement method was used without justification, procurements did not undergo any evaluation of bids, contracts committee was not involved during the procurement process and contract managers were not appointed for all the procurements. \uf0b7 The Assets Register maintained by the Embassy was not in the format prescribed in the Treasury Instructions as it lacked details of date of purchase, cost of purchase, maintenance cost, asset code and estimated useful life. \uf0b7 The Embassy spent RUB.1,052,189.97 and EURO.370.37 (approximately UGX.53,187,249) on refunds for medical expenses to its officers contrary to the requirements of Section M (m-a) (14) of the Public Service Standing Orders, 2010. \uf0b7 Salary advances to the tune of Euro. 4,681.18 (equivalent to UGX.19,537,232) were paid to to staff which exceeded three (3) months gross and though authorised by the Accounting Officer of the Embassy, no authority was sought from Secretary to the Treasury contrary to the Public Service Standing Orders. |\n|---:|:-------------|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | MoFPED and NPA and contrary to Paragraph 58 of the Budget Execution Circular for 2019/20. \uf0b7 Cumulative performance reports did not include activities implemented in the previous quarter(s). \uf0b7 The Mission had total collections including balance brought forward from previous year of UGX.524,440,586 out of which UGX.160,671,521 had been transferred to the Treasury for onward transfer to the Consolidated Fund leaving a balance UGX.1,284,723,792 not remitted. \uf0b7 INR.38,324.24 (equivalent to UGX.1,839,564) out of which 2/3 of the amount should have been recovered from the respective staff was incurred on the payments for telephone bills during the period. The recovery was not effected. \uf0b7 Salary advances to the tune of USD. 98,406.39 (equivalent to UGX.369,023,963) were paid to staff during the year which exceeded three (3) months gross contrary to the Public Service Standing Orders. \uf0b7 The Embassy spent INR.549,516.00 (equivalent to UGX.26,376,775) on refunds for medical expenses to its officers contrary to the requirements of Section M (m-a) (14) of the Public Service Standing Orders, 2010. | Unnamed: 2 |", "metadata": {"page": 201, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Opinion Unqualified | \uf0b7 There was a shortfall in NTR collections amounting to UGX.1.462Bn representing 6.8% performance. \uf0b7 I sampled 4 outputs with a total of 12 activities and actual expenditure of UGX.4.32Bn and observed that 2 outputs with a total of 8 activities and expenditure worth UGX.4Bn were fully quantified while 2 outputs with a total of 4 activities and expenditure worth UGX.0.32Bn were not quantified. The quantified outputs were partially quantified. \uf0b7 The Mission did not prepare and submit annual monitoring plans to MoFPED and NPA and also did not prepare and submit quarterly monitoring reports to the Office of the Prime Minister and MoFPED contrary to Paragraph 58 of the Budget Execution Circular for 2019/20. \uf0b7 The Mission submitted performance reports for Q1, and Q3, after the deadline given for submission \uf0b7 The Statement of Stores and Other Assets (physical assets) as at the end of the financial year 2019/2020 revealed that additions during the year relating to non-residential buildings were disclosed as UGX.149,778,932, however, the Embassy procured items amounting to UGX.333,509,897 implying that items worth UGX.183,730,965 were not disclosed in this statement thus understating the Statement of Stores and Other Assets (physical assets). \uf0b7 The Embassy had an approved budget of UGX.196,000,000 for procurement of furniture and fixtures but a sum of UGX.333,509,897 on this item resulting into an excess expenditure of UGX.137,509,987. \uf0b7 The Embassy procured furniture and fittings for furnishing six residencies and a Chancery worth RUB.6,795,232 (equivalent to UGX.333,509,897) but were not recorded in the Embassy asset register as well as the Board of Survey report, direct procurement method was used without justification, procurements did not undergo any evaluation of bids, contracts committee was not involved during the procurement process and contract managers were not appointed for all the procurements. \uf0b7 The Assets Register maintained by the Embassy was not in the format prescribed in the Treasury Instructions as it lacked details of date of purchase, cost of purchase, maintenance cost, asset code and estimated useful life. \uf0b7 The Embassy spent RUB.1,052,189.97 and EURO.370.37 (approximately UGX.53,187,249) on refunds for medical expenses to its officers contrary to the requirements of Section M (m-a) (14) of the Public Service Standing Orders, 2010. \uf0b7 Salary advances to the tune of Euro. 4,681.18 (equivalent to UGX.19,537,232) were paid to to staff which exceeded three (3) months gross and though authorised by the Accounting Officer of the Embassy, no authority was sought from Secretary to the Treasury contrary to the Public Service Standing Orders. 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0 | 26 | The Uganda Embassy in New York. 2019/20 Opinion Qualified | \uf0b7 The Embassy had a capital expenditure budget of UGX.0 but items worth UGX.665,143,450 resulting into an over expenditure of UGX.665,143,450. \uf0b7 I sampled 4 outputs with a total of 10 activities and actual expenditure of UGX.16.77Bn and observed that all four (4) outputs were not quantified. I was unable to assess the extent of implementation of quantified activities. \uf0b7 Funds to the tune of USD.16,155 (equivalent to UGX.60,182,706) were irregularly diverted from the activities on which they were budgeted and spent on other activities without seeking and obtaining the necessary approvals. \uf0b7 The Mission did not prepare and submit annual monitoring plans to MoFPED and NPA and also did not prepare and submit quarterly monitoring reports to the Office of the Prime Minister and MoFPED contrary to Paragraph 58 of the Budget Execution Circular for 2019/20. \uf0b7 The entity submitted performance reports for Q1, Q2, Q3, Q4 after the deadline given for submission. \uf0b7 The Mission had total collections including balance brought forward from previous year of UGX.13,431,978,161 out of which UGX.3,957,841,655 had been transferred to the Treasury for onward transfer to the Consolidated Fund leaving a balance UGX. 9,474,136,506 not remitted. \uf0b7 The Mission had outstanding payables to a tune of UGX.208,571,725 as the end of June 2019 but details were not provided for audit verification and the arrears were paid without a budget. \uf0b7 The Embassy had accumulated arrears of revenue to the tune of UGX.3,801,562,591 out of which UGX.2,932,243,479 (77%) relates to revenue arrears accumulated in the prior years and remains uncollected. The details relating to the arrears were also not provided for audit verification. \uf0b7 The Mission paid UGX.134,726,559 in respect of education allowances direct to its officials instead of their respective educational institutions or schools contrary to Section (E - e) Paragraphs 19 and 20 of the Public Service Standing Orders 2010. |", "metadata": {"page": 201, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Opinion Unqualified | \uf0b7 There was a shortfall in NTR collections amounting to UGX.1.462Bn representing 6.8% performance. \uf0b7 I sampled 4 outputs with a total of 12 activities and actual expenditure of UGX.4.32Bn and observed that 2 outputs with a total of 8 activities and expenditure worth UGX.4Bn were fully quantified while 2 outputs with a total of 4 activities and expenditure worth UGX.0.32Bn were not quantified. The quantified outputs were partially quantified. \uf0b7 The Mission did not prepare and submit annual monitoring plans to MoFPED and NPA and also did not prepare and submit quarterly monitoring reports to the Office of the Prime Minister and MoFPED contrary to Paragraph 58 of the Budget Execution Circular for 2019/20. \uf0b7 The Mission submitted performance reports for Q1, and Q3, after the deadline given for submission \uf0b7 The Statement of Stores and Other Assets (physical assets) as at the end of the financial year 2019/2020 revealed that additions during the year relating to non-residential buildings were disclosed as UGX.149,778,932, however, the Embassy procured items amounting to UGX.333,509,897 implying that items worth UGX.183,730,965 were not disclosed in this statement thus understating the Statement of Stores and Other Assets (physical assets). \uf0b7 The Embassy had an approved budget of UGX.196,000,000 for procurement of furniture and fixtures but a sum of UGX.333,509,897 on this item resulting into an excess expenditure of UGX.137,509,987. \uf0b7 The Embassy procured furniture and fittings for furnishing six residencies and a Chancery worth RUB.6,795,232 (equivalent to UGX.333,509,897) but were not recorded in the Embassy asset register as well as the Board of Survey report, direct procurement method was used without justification, procurements did not undergo any evaluation of bids, contracts committee was not involved during the procurement process and contract managers were not appointed for all the procurements. \uf0b7 The Assets Register maintained by the Embassy was not in the format prescribed in the Treasury Instructions as it lacked details of date of purchase, cost of purchase, maintenance cost, asset code and estimated useful life. \uf0b7 The Embassy spent RUB.1,052,189.97 and EURO.370.37 (approximately UGX.53,187,249) on refunds for medical expenses to its officers contrary to the requirements of Section M (m-a) (14) of the Public Service Standing Orders, 2010. \uf0b7 Salary advances to the tune of Euro. 4,681.18 (equivalent to UGX.19,537,232) were paid to to staff which exceeded three (3) months gross and though authorised by the Accounting Officer of the Embassy, no authority was sought from Secretary to the Treasury contrary to the Public Service Standing Orders. |\n|---:|:-------------|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | \uf0b7 The Embassy spent UGX.145,667,183 on refunds for medical expenses to its officers contrary to the requirements of Section M (m-a) (14) of the Public Service Standing Orders, 2010. \uf0b7 The Mission prepared an approved procurement plan for the financial year 2019/2020 but procurement reports and procurement files were not availed for audit. \uf0b7 The Mission has an approved staff structure of 9 staff positions out of which 8 (88%) were filled leaving 01 (12%) vacant. | Unnamed: 2 |\n| 1 | 27.0 | Uganda High Commission in Ottawa. 2019/20 Opinion Unqualified | \uf0b7 Out of the planned 8 (eight) strategic targets/goals in the Mission charter, four (4) were fully achieved while 2 (two) were partially achieved while two (2) were not achieved. \uf0b7 There was a shortfall in NTR collections amounting to UGX.2.077Bn representing 0.62% performance. \uf0b7 I sampled 3 outputs with a total of 8 activities and actual expenditure of UGX.5.63Bn and observed that all the 3 outputs were fully quantified but none was fully implemented. \uf0b7 Funds to the tune of CAD.3,301.3 (equivalent to UGX.9,586,521) were irregularly diverted from the activities on which they were budgeted and spent on other activities without seeking and obtaining the necessary approvals. \uf0b7 The Mission did not prepare and submit the annual monitoring plans to MoFPED and NPA contrary Paragraph 58 of the Budget Execution Circular for 2019/20. \uf0b7 The Mission had total collections including balance brought forward from previous year of UGX.2,585,956,931 out of which UGX.39,588,787 had been transferred to the Treasury for onward transfer to the Consolidated Fund leaving a balance UGX.2,546,368,144 not remitted. \uf0b7 The Mission paid CAD.35,000.00 (equivalent to UGX.101,605,000)in respect of education allowances direct to its officials instead of their respective educational institutions or schools contrary to Section (E - e) Paragraphs 19 and 20 of the Public Service Standing Orders 2010. \uf0b7 The Embassy spent CAD.114,255 (equivalent to UGX.331,693,168) on refunds for medical expenses to its officers contrary to the requirements of Section M (m-a) (14) of the Public Service Standing Orders, 2010. |", "metadata": {"page": 202, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Opinion Unqualified | \uf0b7 There was a shortfall in NTR collections amounting to UGX.1.462Bn representing 6.8% performance. \uf0b7 I sampled 4 outputs with a total of 12 activities and actual expenditure of UGX.4.32Bn and observed that 2 outputs with a total of 8 activities and expenditure worth UGX.4Bn were fully quantified while 2 outputs with a total of 4 activities and expenditure worth UGX.0.32Bn were not quantified. The quantified outputs were partially quantified. \uf0b7 The Mission did not prepare and submit annual monitoring plans to MoFPED and NPA and also did not prepare and submit quarterly monitoring reports to the Office of the Prime Minister and MoFPED contrary to Paragraph 58 of the Budget Execution Circular for 2019/20. \uf0b7 The Mission submitted performance reports for Q1, and Q3, after the deadline given for submission \uf0b7 The Statement of Stores and Other Assets (physical assets) as at the end of the financial year 2019/2020 revealed that additions during the year relating to non-residential buildings were disclosed as UGX.149,778,932, however, the Embassy procured items amounting to UGX.333,509,897 implying that items worth UGX.183,730,965 were not disclosed in this statement thus understating the Statement of Stores and Other Assets (physical assets). \uf0b7 The Embassy had an approved budget of UGX.196,000,000 for procurement of furniture and fixtures but a sum of UGX.333,509,897 on this item resulting into an excess expenditure of UGX.137,509,987. \uf0b7 The Embassy procured furniture and fittings for furnishing six residencies and a Chancery worth RUB.6,795,232 (equivalent to UGX.333,509,897) but were not recorded in the Embassy asset register as well as the Board of Survey report, direct procurement method was used without justification, procurements did not undergo any evaluation of bids, contracts committee was not involved during the procurement process and contract managers were not appointed for all the procurements. \uf0b7 The Assets Register maintained by the Embassy was not in the format prescribed in the Treasury Instructions as it lacked details of date of purchase, cost of purchase, maintenance cost, asset code and estimated useful life. \uf0b7 The Embassy spent RUB.1,052,189.97 and EURO.370.37 (approximately UGX.53,187,249) on refunds for medical expenses to its officers contrary to the requirements of Section M (m-a) (14) of the Public Service Standing Orders, 2010. \uf0b7 Salary advances to the tune of Euro. 4,681.18 (equivalent to UGX.19,537,232) were paid to to staff which exceeded three (3) months gross and though authorised by the Accounting Officer of the Embassy, no authority was sought from Secretary to the Treasury contrary to the Public Service Standing Orders. 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0 | 28 | Uganda Embassy in Paris. 2019/20 Opinion Unqualified | \uf0b7 The Mission made upfront payments for rent of EUR.50,183 (equivalent to UGX.209,723,288) beyond the financial year but did not disclose the same as prepayments in the Statement of Financial Position for the year. \uf0b7 Funds to the tune of UGX.40,504,892 were irregularly diverted from the activities on which they were budgeted and spent on other activities without seeking and obtaining the necessary approvals. \uf0b7 There was a shortfall in NTR collections amounting to UGX.2.61Bn representing 0.4% performance. \uf0b7 Out of the total receipts for the financial year of UGX.9.59Bn, UGX.5.56Bn was spent by the entity resulting in an unspent balance of UGX.4.03Bn representing an absorption level of 58%. \uf0b7 I sampled 4 outputs with a total of 19 activities and actual expenditure of UGX.5.56Bn and observed that 1 output (25%) with a total of 7 activities and expenditure worth UGX.1.61Bn was insufficiently quantified while 3 outputs (75%) with a total of 12 activities and expenditure worth UGX 3.95Bn were not quantified at all. I was therefore unable to undertake |", "metadata": {"page": 202, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Opinion Unqualified | \uf0b7 There was a shortfall in NTR collections amounting to UGX.1.462Bn representing 6.8% performance. \uf0b7 I sampled 4 outputs with a total of 12 activities and actual expenditure of UGX.4.32Bn and observed that 2 outputs with a total of 8 activities and expenditure worth UGX.4Bn were fully quantified while 2 outputs with a total of 4 activities and expenditure worth UGX.0.32Bn were not quantified. The quantified outputs were partially quantified. \uf0b7 The Mission did not prepare and submit annual monitoring plans to MoFPED and NPA and also did not prepare and submit quarterly monitoring reports to the Office of the Prime Minister and MoFPED contrary to Paragraph 58 of the Budget Execution Circular for 2019/20. \uf0b7 The Mission submitted performance reports for Q1, and Q3, after the deadline given for submission \uf0b7 The Statement of Stores and Other Assets (physical assets) as at the end of the financial year 2019/2020 revealed that additions during the year relating to non-residential buildings were disclosed as UGX.149,778,932, however, the Embassy procured items amounting to UGX.333,509,897 implying that items worth UGX.183,730,965 were not disclosed in this statement thus understating the Statement of Stores and Other Assets (physical assets). \uf0b7 The Embassy had an approved budget of UGX.196,000,000 for procurement of furniture and fixtures but a sum of UGX.333,509,897 on this item resulting into an excess expenditure of UGX.137,509,987. \uf0b7 The Embassy procured furniture and fittings for furnishing six residencies and a Chancery worth RUB.6,795,232 (equivalent to UGX.333,509,897) but were not recorded in the Embassy asset register as well as the Board of Survey report, direct procurement method was used without justification, procurements did not undergo any evaluation of bids, contracts committee was not involved during the procurement process and contract managers were not appointed for all the procurements. \uf0b7 The Assets Register maintained by the Embassy was not in the format prescribed in the Treasury Instructions as it lacked details of date of purchase, cost of purchase, maintenance cost, asset code and estimated useful life. \uf0b7 The Embassy spent RUB.1,052,189.97 and EURO.370.37 (approximately UGX.53,187,249) on refunds for medical expenses to its officers contrary to the requirements of Section M (m-a) (14) of the Public Service Standing Orders, 2010. \uf0b7 Salary advances to the tune of Euro. 4,681.18 (equivalent to UGX.19,537,232) were paid to to staff which exceeded three (3) months gross and though authorised by the Accounting Officer of the Embassy, no authority was sought from Secretary to the Treasury contrary to the Public Service Standing Orders. |\n|---:|:-------------|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | assessment of implementation of outputs by the Mission. \uf0b7 The Mission did not prepare and submit annual monitoring plans to MoFPED and NPA and also did not prepare and submit quarterly monitoring reports to the Office of the Prime Minister and MoFPED contrary to Paragraph 58 of the Budget Execution Circular for 2019/20. \uf0b7 The Mission submitted performance reports for Q1, Q2, Q3 and Q4 after the deadline given for submission. Furthermore, entities are supposed to report actual performance of the quarter as well as the cumulative activities of the previous quarter(s) but the Mission quarterly performance reports did not include activities implemented in the previous quarter(s). \uf0b7 The Embassy paid EUROS.30,691 (equivalent to UGX.128,071,701) in respect of education allowances direct to its officials instead of their respective education institutions or schools contrary to Section (E - e) Paragraphs 19 and 20 of the Public Service Standing Orders, 2010. \uf0b7 The Embassy spent EUROS.7,933 (equivalent to UGX.33,101,972) on refunds for medical expenses to its officers contrary to the requirements of Section M (m-a) (14) of the Public Service Standing Orders, 2010. \uf0b7 UGX.3.75BN was released for renovation and modification of Uganda Chancery Building in Paris but the procurement was undertaken using the restricted bidding instead of open domestic bidding without proper justification. Furthermore, the implementation of the contract had not commenced by the end of the financial and the contactor is said to have had difficulty in obtaining a bank guarantee from banks because the Mission is a foreign entity which could pose challenges in contract performance. \uf0b7 The Mission has an approved staff structure of 7 staff positions out of which positions, 6 (86%) were filled leaving 1 (14%) vacant. \uf0b7 EUR.43,541.63 (equivalent to UGX.181,969,420) was paid from the Mission\u2019s imprest account to cater for official activities but EUR.15,851 (equivalent to UGX.66,244,024) was spent on activities such as, allowances, purchase of computer and household items which cannot be categorised under imprest making it irregular. | Unnamed: 2 |", "metadata": {"page": 203, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Opinion Unqualified | \uf0b7 There was a shortfall in NTR collections amounting to UGX.1.462Bn representing 6.8% performance. \uf0b7 I sampled 4 outputs with a total of 12 activities and actual expenditure of UGX.4.32Bn and observed that 2 outputs with a total of 8 activities and expenditure worth UGX.4Bn were fully quantified while 2 outputs with a total of 4 activities and expenditure worth UGX.0.32Bn were not quantified. The quantified outputs were partially quantified. \uf0b7 The Mission did not prepare and submit annual monitoring plans to MoFPED and NPA and also did not prepare and submit quarterly monitoring reports to the Office of the Prime Minister and MoFPED contrary to Paragraph 58 of the Budget Execution Circular for 2019/20. \uf0b7 The Mission submitted performance reports for Q1, and Q3, after the deadline given for submission \uf0b7 The Statement of Stores and Other Assets (physical assets) as at the end of the financial year 2019/2020 revealed that additions during the year relating to non-residential buildings were disclosed as UGX.149,778,932, however, the Embassy procured items amounting to UGX.333,509,897 implying that items worth UGX.183,730,965 were not disclosed in this statement thus understating the Statement of Stores and Other Assets (physical assets). \uf0b7 The Embassy had an approved budget of UGX.196,000,000 for procurement of furniture and fixtures but a sum of UGX.333,509,897 on this item resulting into an excess expenditure of UGX.137,509,987. \uf0b7 The Embassy procured furniture and fittings for furnishing six residencies and a Chancery worth RUB.6,795,232 (equivalent to UGX.333,509,897) but were not recorded in the Embassy asset register as well as the Board of Survey report, direct procurement method was used without justification, procurements did not undergo any evaluation of bids, contracts committee was not involved during the procurement process and contract managers were not appointed for all the procurements. \uf0b7 The Assets Register maintained by the Embassy was not in the format prescribed in the Treasury Instructions as it lacked details of date of purchase, cost of purchase, maintenance cost, asset code and estimated useful life. \uf0b7 The Embassy spent RUB.1,052,189.97 and EURO.370.37 (approximately UGX.53,187,249) on refunds for medical expenses to its officers contrary to the requirements of Section M (m-a) (14) of the Public Service Standing Orders, 2010. \uf0b7 Salary advances to the tune of Euro. 4,681.18 (equivalent to UGX.19,537,232) were paid to to staff which exceeded three (3) months gross and though authorised by the Accounting Officer of the Embassy, no authority was sought from Secretary to the Treasury contrary to the Public Service Standing Orders. |\n|---:|-------------:|:----------------------------------------------------------|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 29 | Uganda Embassy in Pretoria. 2019/2020 Opinion Unqualified | \uf0b7 Out of the planned 8 (eight) strategic targets/goals in the Mission charter, two (2) were fully achieved while 4 (four) were partially achieved while two (2) were not achieved. \uf0b7 There was a shortfall in NTR collections amounting to UGX.2.49Bn representing 5% performance. \uf0b7 I sampled 4 outputs with a total of 8 activities and actual expenditure of UGX.3.62Bn and observed that three (3) outputs with a total of seven (7) activities and expenditure worth UGX.3.54Bn were fully quantified while one (1) output with one (1) activity and expenditure worth UGX.0.08Bn was not quantified. Of the quantified outputs, one (1) output with three (3) activities worth UGX.0.38Bn was fully implemented while two (2) outputs with four (4) activities worth UGX.3.16Bn were partially implemented. \uf0b7 Funds to the tune of RAND.35,774.08 (equivalent to UGX.7,697,509) were irregularly diverted from the activities on which they were budgeted and spent on other activities without seeking and obtaining the necessary approvals. \uf0b7 The entity submitted performance reports for Q1, Q2, Q3, and Q4, however they were submitted after the deadline. I also observed that cumulative performance reports did not include activities implemented in |", "metadata": {"page": 203, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Opinion Unqualified | \uf0b7 There was a shortfall in NTR collections amounting to UGX.1.462Bn representing 6.8% performance. \uf0b7 I sampled 4 outputs with a total of 12 activities and actual expenditure of UGX.4.32Bn and observed that 2 outputs with a total of 8 activities and expenditure worth UGX.4Bn were fully quantified while 2 outputs with a total of 4 activities and expenditure worth UGX.0.32Bn were not quantified. The quantified outputs were partially quantified. \uf0b7 The Mission did not prepare and submit annual monitoring plans to MoFPED and NPA and also did not prepare and submit quarterly monitoring reports to the Office of the Prime Minister and MoFPED contrary to Paragraph 58 of the Budget Execution Circular for 2019/20. \uf0b7 The Mission submitted performance reports for Q1, and Q3, after the deadline given for submission \uf0b7 The Statement of Stores and Other Assets (physical assets) as at the end of the financial year 2019/2020 revealed that additions during the year relating to non-residential buildings were disclosed as UGX.149,778,932, however, the Embassy procured items amounting to UGX.333,509,897 implying that items worth UGX.183,730,965 were not disclosed in this statement thus understating the Statement of Stores and Other Assets (physical assets). \uf0b7 The Embassy had an approved budget of UGX.196,000,000 for procurement of furniture and fixtures but a sum of UGX.333,509,897 on this item resulting into an excess expenditure of UGX.137,509,987. \uf0b7 The Embassy procured furniture and fittings for furnishing six residencies and a Chancery worth RUB.6,795,232 (equivalent to UGX.333,509,897) but were not recorded in the Embassy asset register as well as the Board of Survey report, direct procurement method was used without justification, procurements did not undergo any evaluation of bids, contracts committee was not involved during the procurement process and contract managers were not appointed for all the procurements. \uf0b7 The Assets Register maintained by the Embassy was not in the format prescribed in the Treasury Instructions as it lacked details of date of purchase, cost of purchase, maintenance cost, asset code and estimated useful life. \uf0b7 The Embassy spent RUB.1,052,189.97 and EURO.370.37 (approximately UGX.53,187,249) on refunds for medical expenses to its officers contrary to the requirements of Section M (m-a) (14) of the Public Service Standing Orders, 2010. \uf0b7 Salary advances to the tune of Euro. 4,681.18 (equivalent to UGX.19,537,232) were paid to to staff which exceeded three (3) months gross and though authorised by the Accounting Officer of the Embassy, no authority was sought from Secretary to the Treasury contrary to the Public Service Standing Orders. |\n|---:|:-------------|:------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | the previous quarter(s) \uf0b7 The Embassy paid USD.18,000.009 (equivalent to UGX.66,785,973) in respect of education allowances direct to its officials instead of their respective education institutions or schools contrary to Section (E - e) Paragraphs 19 and 20 of the Public Service Standing Orders, 2010. \uf0b7 The Embassy spent 162,579.25 RAND (equivalent to UGX.34,982,177) on refunds for medical expenses to its officers contrary to the requirements of Section M (m-a) (14) of the Public Service Standing Orders, 2010. \uf0b7 The Mission has an approved staff structure of 6 staff positions out of which, 5 (83%) were filled leaving 1 (17%) vacant. | Unnamed: 2 |\n| 1 | 30.0 | Uganda Embassy in Riyadh 2019/2020 Opinion Unqualified | \uf0b7 There was a shortfall in NTR collections amounting to UGX.2.088Bn representing 0.5% performance. \uf0b7 I sampled 3 outputs with a total of 13 activities and actual expenditure of UGX.4.156Bn and observed that all the 3 outputs were fully quantified. I further observed that 1 output with 5 activities worth UGX.3.79Bn was fully implemented while 2 outputs with 8 activities worth UGX.0.36Bn were partially implemented. \uf0b7 The Mission did not prepare and submit annual monitoring plans to MoFPED and NPA and also did not prepare and submit quarterly monitoring reports to the Office of the Prime Minister and MoFPED contrary to Paragraph 58 of the Budget Execution Circular for 2019/20. \uf0b7 The Mission submitted performance reports for Q1, Q2, Q3 and Q4 after the deadline given for submission. \uf0b7 The Embassy paid UGX.39,862,700 in respect of education allowances direct to its officials instead of their respective education institutions or schools contrary to Section (E - e) Paragraphs 19 and 20 of the Public Service Standing Orders, 2010. \uf0b7 The Embassy spent SAR.132,601.64 (approximately UGX.131,036,012.44) on refunds for medical expenses to its officers contrary to the requirements of Section M (m-a) (14) of the Public Service Standing Orders, 2010. \uf0b7 UGX.30,569,246 out of which 2/3 of the amount should have been recovered from the respective staff was incurred on the payments for telephone bills during the period. The recovery was not effected. \uf0b7 The Mission has an approved staff structure of 5 staff positions out of which, 3 (60%) were filled leaving 2 (40%) vacant. |", "metadata": {"page": 204, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Opinion Unqualified | \uf0b7 There was a shortfall in NTR collections amounting to UGX.1.462Bn representing 6.8% performance. \uf0b7 I sampled 4 outputs with a total of 12 activities and actual expenditure of UGX.4.32Bn and observed that 2 outputs with a total of 8 activities and expenditure worth UGX.4Bn were fully quantified while 2 outputs with a total of 4 activities and expenditure worth UGX.0.32Bn were not quantified. The quantified outputs were partially quantified. \uf0b7 The Mission did not prepare and submit annual monitoring plans to MoFPED and NPA and also did not prepare and submit quarterly monitoring reports to the Office of the Prime Minister and MoFPED contrary to Paragraph 58 of the Budget Execution Circular for 2019/20. \uf0b7 The Mission submitted performance reports for Q1, and Q3, after the deadline given for submission \uf0b7 The Statement of Stores and Other Assets (physical assets) as at the end of the financial year 2019/2020 revealed that additions during the year relating to non-residential buildings were disclosed as UGX.149,778,932, however, the Embassy procured items amounting to UGX.333,509,897 implying that items worth UGX.183,730,965 were not disclosed in this statement thus understating the Statement of Stores and Other Assets (physical assets). \uf0b7 The Embassy had an approved budget of UGX.196,000,000 for procurement of furniture and fixtures but a sum of UGX.333,509,897 on this item resulting into an excess expenditure of UGX.137,509,987. \uf0b7 The Embassy procured furniture and fittings for furnishing six residencies and a Chancery worth RUB.6,795,232 (equivalent to UGX.333,509,897) but were not recorded in the Embassy asset register as well as the Board of Survey report, direct procurement method was used without justification, procurements did not undergo any evaluation of bids, contracts committee was not involved during the procurement process and contract managers were not appointed for all the procurements. \uf0b7 The Assets Register maintained by the Embassy was not in the format prescribed in the Treasury Instructions as it lacked details of date of purchase, cost of purchase, maintenance cost, asset code and estimated useful life. \uf0b7 The Embassy spent RUB.1,052,189.97 and EURO.370.37 (approximately UGX.53,187,249) on refunds for medical expenses to its officers contrary to the requirements of Section M (m-a) (14) of the Public Service Standing Orders, 2010. \uf0b7 Salary advances to the tune of Euro. 4,681.18 (equivalent to UGX.19,537,232) were paid to to staff which exceeded three (3) months gross and though authorised by the Accounting Officer of the Embassy, no authority was sought from Secretary to the Treasury contrary to the Public Service Standing Orders. |\n|---:|-------------:|:---------------------------------------------------|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 31 | Uganda Embassy in Rome 2019/20 Opinion Unqualified | \uf0b7 Out of the planned 8 (eight) strategic targets/goals in the Mission charter, two (2) targets had been fully achieved and six (6) were partially achieved. \uf0b7 There was a shortfall in NTR collections amounting to UGX.1.503Bn representing 4.2% performance. \uf0b7 Of the total receipts for the financial year of UGX.5.564Bn, UGX.4.952Bn was spent by the entity resulting in an unspent balance of UGX.0.612Bn representing an absorption level of 89%. \uf0b7 I sampled 4 outputs with a total of 8 activities and actual expenditure of UGX.3.62Bn and observed that 3 outputs with a total of 7 activities and expenditure worth UGX.3.54Bn were fully quantified while 1 output with 1 activity and expenditure worth UGX.0.08Bn was not quantified. Of the quantified outputs, 1) output with 3) activities worth UGX.0.38Bn was fully implemented while 2 outputs with 4 activities worth UGX.3.16Bn |", "metadata": {"page": 204, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Opinion Unqualified | \uf0b7 There was a shortfall in NTR collections amounting to UGX.1.462Bn representing 6.8% performance. \uf0b7 I sampled 4 outputs with a total of 12 activities and actual expenditure of UGX.4.32Bn and observed that 2 outputs with a total of 8 activities and expenditure worth UGX.4Bn were fully quantified while 2 outputs with a total of 4 activities and expenditure worth UGX.0.32Bn were not quantified. The quantified outputs were partially quantified. \uf0b7 The Mission did not prepare and submit annual monitoring plans to MoFPED and NPA and also did not prepare and submit quarterly monitoring reports to the Office of the Prime Minister and MoFPED contrary to Paragraph 58 of the Budget Execution Circular for 2019/20. \uf0b7 The Mission submitted performance reports for Q1, and Q3, after the deadline given for submission \uf0b7 The Statement of Stores and Other Assets (physical assets) as at the end of the financial year 2019/2020 revealed that additions during the year relating to non-residential buildings were disclosed as UGX.149,778,932, however, the Embassy procured items amounting to UGX.333,509,897 implying that items worth UGX.183,730,965 were not disclosed in this statement thus understating the Statement of Stores and Other Assets (physical assets). \uf0b7 The Embassy had an approved budget of UGX.196,000,000 for procurement of furniture and fixtures but a sum of UGX.333,509,897 on this item resulting into an excess expenditure of UGX.137,509,987. \uf0b7 The Embassy procured furniture and fittings for furnishing six residencies and a Chancery worth RUB.6,795,232 (equivalent to UGX.333,509,897) but were not recorded in the Embassy asset register as well as the Board of Survey report, direct procurement method was used without justification, procurements did not undergo any evaluation of bids, contracts committee was not involved during the procurement process and contract managers were not appointed for all the procurements. \uf0b7 The Assets Register maintained by the Embassy was not in the format prescribed in the Treasury Instructions as it lacked details of date of purchase, cost of purchase, maintenance cost, asset code and estimated useful life. \uf0b7 The Embassy spent RUB.1,052,189.97 and EURO.370.37 (approximately UGX.53,187,249) on refunds for medical expenses to its officers contrary to the requirements of Section M (m-a) (14) of the Public Service Standing Orders, 2010. \uf0b7 Salary advances to the tune of Euro. 4,681.18 (equivalent to UGX.19,537,232) were paid to to staff which exceeded three (3) months gross and though authorised by the Accounting Officer of the Embassy, no authority was sought from Secretary to the Treasury contrary to the Public Service Standing Orders. |\n|---:|:-------------|:-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | were partially implemented. \uf0b7 The Mission did not prepare and submit annual monitoring plans to MoFPED and NPA and also did not prepare and submit quarterly monitoring reports to the Office of the Prime Minister and MoFPED contrary to Paragraph 58 of the Budget Execution Circular for 2019/20. \uf0b7 The Mission had total collections including balance brought forward from previous year of UGX.1,702,152,606 out of which UGX.67,884,170 had been transferred to the Treasury for onward transfer to the Consolidated Fund leaving a balance UGX.1,634,268,436 not remitted. \uf0b7 The Mission reported cash in transit of UGX.32,102,340 which relates to over 10 years ago which may be difficult for the Mission to trace or recover. \uf0b7 The Statement of Contingent Liabilities in the financial statements for the year ended 30th June, 2020, indicated an opening balance of UGX.1,141,003,975.79 instead of UGX.542,522,152.97 resulting into an overstatement of UGX.598,481,822.82. \uf0b7 During the year 2019/2020, management of the Mission was availed a supplementary funding of UGX.433,360,086 to cater for settlement of four (4) court cases but the Mission still remained with outstanding liabilities for settlement of court cases amounting to UGX.542,522,152 at the end of the year. \uf0b7 The Embassy spent Euros.8,430.75 (equivalent to UGX.35,422,471) on refunds for medical expenses to its officers contrary to the requirements of Section M (m-a) (14) of the Public Service Standing Orders, 2010. \uf0b7 The Embassy has an approved staff structure of 6 staff positions out of which 5 (83%) were filled leaving 1 (15%) vacant. | Unnamed: 2 |", "metadata": {"page": 205, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Opinion Unqualified | \uf0b7 There was a shortfall in NTR collections amounting to UGX.1.462Bn representing 6.8% performance. \uf0b7 I sampled 4 outputs with a total of 12 activities and actual expenditure of UGX.4.32Bn and observed that 2 outputs with a total of 8 activities and expenditure worth UGX.4Bn were fully quantified while 2 outputs with a total of 4 activities and expenditure worth UGX.0.32Bn were not quantified. The quantified outputs were partially quantified. \uf0b7 The Mission did not prepare and submit annual monitoring plans to MoFPED and NPA and also did not prepare and submit quarterly monitoring reports to the Office of the Prime Minister and MoFPED contrary to Paragraph 58 of the Budget Execution Circular for 2019/20. \uf0b7 The Mission submitted performance reports for Q1, and Q3, after the deadline given for submission \uf0b7 The Statement of Stores and Other Assets (physical assets) as at the end of the financial year 2019/2020 revealed that additions during the year relating to non-residential buildings were disclosed as UGX.149,778,932, however, the Embassy procured items amounting to UGX.333,509,897 implying that items worth UGX.183,730,965 were not disclosed in this statement thus understating the Statement of Stores and Other Assets (physical assets). \uf0b7 The Embassy had an approved budget of UGX.196,000,000 for procurement of furniture and fixtures but a sum of UGX.333,509,897 on this item resulting into an excess expenditure of UGX.137,509,987. \uf0b7 The Embassy procured furniture and fittings for furnishing six residencies and a Chancery worth RUB.6,795,232 (equivalent to UGX.333,509,897) but were not recorded in the Embassy asset register as well as the Board of Survey report, direct procurement method was used without justification, procurements did not undergo any evaluation of bids, contracts committee was not involved during the procurement process and contract managers were not appointed for all the procurements. \uf0b7 The Assets Register maintained by the Embassy was not in the format prescribed in the Treasury Instructions as it lacked details of date of purchase, cost of purchase, maintenance cost, asset code and estimated useful life. \uf0b7 The Embassy spent RUB.1,052,189.97 and EURO.370.37 (approximately UGX.53,187,249) on refunds for medical expenses to its officers contrary to the requirements of Section M (m-a) (14) of the Public Service Standing Orders, 2010. \uf0b7 Salary advances to the tune of Euro. 4,681.18 (equivalent to UGX.19,537,232) were paid to to staff which exceeded three (3) months gross and though authorised by the Accounting Officer of the Embassy, no authority was sought from Secretary to the Treasury contrary to the Public Service Standing Orders. |\n|---:|-------------:|:----------------------------------------------------|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 32 | Uganda Embassy in Tokyo 2019/20 Opinion Unqualified | \uf0b7 Out of the planned 17 (seventeen) strategic targets/goals in the Mission charter, nine (9) were fully achieved, 4 (four) were partially achieved while four (4) were not achieved at all. \uf0b7 There was a shortfall in NTR collections amounting to UGX.1.451Bn representing 8% performance. \uf0b7 I sampled 5 outputs with a total of 17 activities and actual expenditure of UGX.5.76Bn and observed that all the 5 outputs were not quantified. I was therefore unable to undertake assessment of performance. \uf0b7 Funds to the tune of JPY.730,423 (equivalent to UGX.25,352,982) were irregularly diverted from the activities on which they were budgeted and spent on other activities without seeking and obtaining the necessary approvals. \uf0b7 The Mission did not prepare and submit the annual monitoring plans to MoFPED and NPA contrary to Paragraph 58 of the Budget Execution Circular for 2019/20. \uf0b7 The Mission submitted performance reports for Q1, Q2, Q3 and Q4 after the deadline given for submission. \uf0b7 The Mission paid JPY.3,300,000 (equivalent to UGX.115,295,400) in respect of education allowances direct to its officials instead of their respective educational institutions or schools contrary to Section (E - e) Paragraphs 19 and 20 of the Public Service Standing Orders 2010. \uf0b7 The Embassy spent Euros.8,430.75 (equivalent to UGX.35,422,471) on refunds for medical expenses to its officers contrary to the requirements of Section M (m-a) (14) of the Public Service Standing Orders, 2010. |", "metadata": {"page": 205, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Opinion Unqualified | \uf0b7 There was a shortfall in NTR collections amounting to UGX.1.462Bn representing 6.8% performance. \uf0b7 I sampled 4 outputs with a total of 12 activities and actual expenditure of UGX.4.32Bn and observed that 2 outputs with a total of 8 activities and expenditure worth UGX.4Bn were fully quantified while 2 outputs with a total of 4 activities and expenditure worth UGX.0.32Bn were not quantified. The quantified outputs were partially quantified. \uf0b7 The Mission did not prepare and submit annual monitoring plans to MoFPED and NPA and also did not prepare and submit quarterly monitoring reports to the Office of the Prime Minister and MoFPED contrary to Paragraph 58 of the Budget Execution Circular for 2019/20. \uf0b7 The Mission submitted performance reports for Q1, and Q3, after the deadline given for submission \uf0b7 The Statement of Stores and Other Assets (physical assets) as at the end of the financial year 2019/2020 revealed that additions during the year relating to non-residential buildings were disclosed as UGX.149,778,932, however, the Embassy procured items amounting to UGX.333,509,897 implying that items worth UGX.183,730,965 were not disclosed in this statement thus understating the Statement of Stores and Other Assets (physical assets). \uf0b7 The Embassy had an approved budget of UGX.196,000,000 for procurement of furniture and fixtures but a sum of UGX.333,509,897 on this item resulting into an excess expenditure of UGX.137,509,987. \uf0b7 The Embassy procured furniture and fittings for furnishing six residencies and a Chancery worth RUB.6,795,232 (equivalent to UGX.333,509,897) but were not recorded in the Embassy asset register as well as the Board of Survey report, direct procurement method was used without justification, procurements did not undergo any evaluation of bids, contracts committee was not involved during the procurement process and contract managers were not appointed for all the procurements. \uf0b7 The Assets Register maintained by the Embassy was not in the format prescribed in the Treasury Instructions as it lacked details of date of purchase, cost of purchase, maintenance cost, asset code and estimated useful life. \uf0b7 The Embassy spent RUB.1,052,189.97 and EURO.370.37 (approximately UGX.53,187,249) on refunds for medical expenses to its officers contrary to the requirements of Section M (m-a) (14) of the Public Service Standing Orders, 2010. \uf0b7 Salary advances to the tune of Euro. 4,681.18 (equivalent to UGX.19,537,232) were paid to to staff which exceeded three (3) months gross and though authorised by the Accounting Officer of the Embassy, no authority was sought from Secretary to the Treasury contrary to the Public Service Standing Orders. |\n|---:|:-------------|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | \uf0b7 JPY.2,591,132 (equivalent to UGX.89,938,192) out of which 2/3 of the amount should have been recovered from the respective staff was incurred on the payments for telephone bills during the period. The recovery was not effected. \uf0b7 The fixed assets register maintained by the entity was not in the format prescribed in the Treasury Instructions and lacked details of: cost of some items, maintenance cost, estimated useful life, among others and assets which had already been disposed were still in the assets register. | Unnamed: 2 |", "metadata": {"page": 206, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Opinion Unqualified | \uf0b7 There was a shortfall in NTR collections amounting to UGX.1.462Bn representing 6.8% performance. \uf0b7 I sampled 4 outputs with a total of 12 activities and actual expenditure of UGX.4.32Bn and observed that 2 outputs with a total of 8 activities and expenditure worth UGX.4Bn were fully quantified while 2 outputs with a total of 4 activities and expenditure worth UGX.0.32Bn were not quantified. The quantified outputs were partially quantified. \uf0b7 The Mission did not prepare and submit annual monitoring plans to MoFPED and NPA and also did not prepare and submit quarterly monitoring reports to the Office of the Prime Minister and MoFPED contrary to Paragraph 58 of the Budget Execution Circular for 2019/20. \uf0b7 The Mission submitted performance reports for Q1, and Q3, after the deadline given for submission \uf0b7 The Statement of Stores and Other Assets (physical assets) as at the end of the financial year 2019/2020 revealed that additions during the year relating to non-residential buildings were disclosed as UGX.149,778,932, however, the Embassy procured items amounting to UGX.333,509,897 implying that items worth UGX.183,730,965 were not disclosed in this statement thus understating the Statement of Stores and Other Assets (physical assets). \uf0b7 The Embassy had an approved budget of UGX.196,000,000 for procurement of furniture and fixtures but a sum of UGX.333,509,897 on this item resulting into an excess expenditure of UGX.137,509,987. \uf0b7 The Embassy procured furniture and fittings for furnishing six residencies and a Chancery worth RUB.6,795,232 (equivalent to UGX.333,509,897) but were not recorded in the Embassy asset register as well as the Board of Survey report, direct procurement method was used without justification, procurements did not undergo any evaluation of bids, contracts committee was not involved during the procurement process and contract managers were not appointed for all the procurements. \uf0b7 The Assets Register maintained by the Embassy was not in the format prescribed in the Treasury Instructions as it lacked details of date of purchase, cost of purchase, maintenance cost, asset code and estimated useful life. \uf0b7 The Embassy spent RUB.1,052,189.97 and EURO.370.37 (approximately UGX.53,187,249) on refunds for medical expenses to its officers contrary to the requirements of Section M (m-a) (14) of the Public Service Standing Orders, 2010. \uf0b7 Salary advances to the tune of Euro. 4,681.18 (equivalent to UGX.19,537,232) were paid to to staff which exceeded three (3) months gross and though authorised by the Accounting Officer of the Embassy, no authority was sought from Secretary to the Treasury contrary to the Public Service Standing Orders. |\n|---:|-------------:|:----------------------------------------------------------|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 33 | Uganda Embassy in Washington. 2019/20 Opinion Unqualified | \uf0b7 Funds to the tune of UGX.184,722,054 were irregularly diverted from the activities on which they were budgeted and spent on other activities without seeking and obtaining the necessary approvals. \uf0b7 Out of the planned 31 strategic targets/goals in the Mission charter, 13 were fully achieved while 18 were partially achieved. \uf0b7 There was a shortfall in NTR collections amounting to UGX.3.64Bn representing 0.7% performance. \uf0b7 Out of the total receipts for the financial year of UGX.8,039,710,935, UGX.7,707,884,006 was spent by the entity resulting in an unspent balance of UGX.331,826,929 representing an absorption level of 96%. \uf0b7 I sampled 6 outputs with a total of 17 activities and actual expenditure of UGX.7.67Bn and observed that all 6 outputs were not quantified. I was therefore unable to undertake assessment of performance. \uf0b7 The Mission did not prepare and submit annual monitoring plans to MoFPED and NPA and also did not prepare and submit quarterly monitoring reports to the Office of the Prime Minister and MoFPED contrary to Paragraph 58 of the Budget Execution Circular for 2019/20. \uf0b7 Performance reports for Q1, Q2 and Q3 were submitted after the deadline given for submission. \uf0b7 The Mission paid USD.27,500 (equivalent to UGX.103,134,075) in respect of education allowances direct to its officials instead of their respective educational institutions or schools contrary to Section (E - e) Paragraphs 19 and 20 of the Public Service Standing Orders 2010. \uf0b7 The Embassy spent USD.21,764.99 (equivalent to UGX.81,625,894.95) on refunds for medical expenses to its officers contrary to the requirements of Section M (m-a) (14) of the Public Service Standing Orders, 2010. \uf0b7 USD.18,000 (equivalent to UGX.69,552,175) was paid to Embassy staff as Covid relief allowance during the financial year 2019/2020 in the last month of the financial year. This allowance is not provided for in the Public Service Standing Orders and neither was it budgeted for during the year. \uf0b7 JPY.2,591,132 (equivalent to UGX.89,938,192) out of which 2/3 of the amount should have been recovered from the respective staff was incurred on the payments for telephone bills during the period. The recovery was not effected. \uf0b7 The fixed assets register maintained by the entity was not in the format prescribed in the Treasury Instructions and lacked details of: cost of some items, maintenance cost, estimated useful life, among others and assets which had already been disposed were still in the assets register. |\n| 1 | 34 | Uganda Embassy in Teheranc. 2019/2020 | \uf0b7 Out of the planned 11 (eleven) strategic targets/goals in the Mission charter, one (1) were fully achieved while 10 (ten) were partially |", "metadata": {"page": 206, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Opinion Unqualified | achieved. \uf0b7 There was a shortfall in NTR collections amounting to UGX.1.57Bn representing 0.1% performance. \uf0b7 I sampled 7 outputs with a total of 12 activities and actual expenditure of UGX.3.66Bn and observed that 4 outputs with a total of 6 activities and expenditure worth UGX.2.69Bn were fully quantified, 2 outputs with a total of 5 activities and expenditure worth UGX.1.73Bn were partially quantified while 1 output with 1 activity and expenditure worth UGX.0.04Bn was not quantified at all. Of the quantified outputs, 3 outputs with 3)activities worth UGX.0.38Bn were fully implemented while 1 output with 3 activities worth UGX.1.95Bn was partially implemented. \uf0b7 The Mission had total collections including balance brought forward from previous year of UGX.406,961,421 out of which UGX.126,522,621 had been transferred to the Treasury for onward transfer to the Consolidated Fund leaving a balance UGX.280,522,621 not remitted. \uf0b7 The Mission paid USD.14,000 (UGX.51,800,000) in respect of education allowances direct to its officials instead of their respective educational institutions or schools contrary to Section (E - e) Paragraphs 19 and 20 of the Public Service Standing Orders 2010. \uf0b7 RIALS.746,627,400 (equivalent to UGX.65,703,211) was paid to Embassy staff as contingency allowance which is not provided for in the Public Service Standing Orders, 2010 and neither was it budgeted for during the year. \uf0b7 RIALS.146,565,232,896 (equivalent to UGX.12,897,740,495) was paid from the Mission\u2019s imprest account to cater for official activities but was not adequately accounted for. |\n|---:|-------------:|:-------------------------------------------------------------|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 35 | Uganda Embassy in Addis Ababa. 2019/2020 Opinion Unqualified | \uf0b7 Out of the planned 7 strategic targets/goals, no target was fully achieved, 5 targets were fully achieved and 2 targets were partially achieved. \uf0b7 There was a shortfall in NTR collections amounting to UGX.1.85Bn representing 11% performance. \uf0b7 Out of the total receipts for the financial year of UGX.4.16Bn, UGX.3.81Bn was spent by the entity resulting in an unspent balance of UGX.0.35Bn representing an absorption level of 91.5%. \uf0b7 I sampled 5 outputs with a total of 9 activities and actual expenditure of UGX.3.76Bn and observed that 3 outputs with a total of 7 activities and expenditure worth UGX.3.76Bn were fully quantified while 2 outputs with a total of 2 activities were not quantified. I further observed that 2 outputs with 5 activities worth UGX.3.22Bn were fully implemented while 1 output with 2 activities worth UGX.0.674Bn was partially implemented. \uf0b7 Funds to the tune of Birr.304,045.69 (equivalent to UGX.23,958,820) were irregularly diverted from the activities on which they were budgeted and spent on other activities without seeking and obtaining the necessary approvals. \uf0b7 A review of the 4 quarterly performance reports revealed that the supplementary release of UGX.0.653Bn was not captured at all making the reports inaccurate. \uf0b7 The Mission had total collections including balance brought forward from previous year of UGX.707,901,392 out of which UGX.236,256,209 had been transferred to the Treasury for onward transfer to the Consolidated Fund leaving a balance UGX.471,645,183 not remitted. \uf0b7 USD.48,129.83 and BIRR.94,144.96 (equivalent to UGX.183,940,336) |", "metadata": {"page": 207, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Opinion Unqualified | achieved. \uf0b7 There was a shortfall in NTR collections amounting to UGX.1.57Bn representing 0.1% performance. \uf0b7 I sampled 7 outputs with a total of 12 activities and actual expenditure of UGX.3.66Bn and observed that 4 outputs with a total of 6 activities and expenditure worth UGX.2.69Bn were fully quantified, 2 outputs with a total of 5 activities and expenditure worth UGX.1.73Bn were partially quantified while 1 output with 1 activity and expenditure worth UGX.0.04Bn was not quantified at all. Of the quantified outputs, 3 outputs with 3)activities worth UGX.0.38Bn were fully implemented while 1 output with 3 activities worth UGX.1.95Bn was partially implemented. \uf0b7 The Mission had total collections including balance brought forward from previous year of UGX.406,961,421 out of which UGX.126,522,621 had been transferred to the Treasury for onward transfer to the Consolidated Fund leaving a balance UGX.280,522,621 not remitted. \uf0b7 The Mission paid USD.14,000 (UGX.51,800,000) in respect of education allowances direct to its officials instead of their respective educational institutions or schools contrary to Section (E - e) Paragraphs 19 and 20 of the Public Service Standing Orders 2010. \uf0b7 RIALS.746,627,400 (equivalent to UGX.65,703,211) was paid to Embassy staff as contingency allowance which is not provided for in the Public Service Standing Orders, 2010 and neither was it budgeted for during the year. \uf0b7 RIALS.146,565,232,896 (equivalent to UGX.12,897,740,495) was paid from the Mission\u2019s imprest account to cater for official activities but was not adequately accounted for. |\n|---:|:-------------|:-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | was withdrawn from the Mission\u2019s local expenditure account as cash imprest but was not adequately accounted for. \uf0b7 The Mission paid USD.44,000.00 (equivalent to UGX.165,000,000) in respect of education allowances direct to its officials instead of their respective educational institutions or schools contrary to Section (E - e) Paragraphs 19 and 20 of the Public Service Standing Orders 2010. \uf0b7 The Mission paid medical refunds to its staff amounting to Birr.298,287.38 (equivalent to UGX.582,793,607) contrary to Section M (m-a) (14) of the Public Service Standing Orders, 2010. \uf0b7 The Mission maintains an assets register that is not in the format prescribed by the Treasury Instructions. | Unnamed: 2 |", "metadata": {"page": 208, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Opinion Unqualified | achieved. \uf0b7 There was a shortfall in NTR collections amounting to UGX.1.57Bn representing 0.1% performance. \uf0b7 I sampled 7 outputs with a total of 12 activities and actual expenditure of UGX.3.66Bn and observed that 4 outputs with a total of 6 activities and expenditure worth UGX.2.69Bn were fully quantified, 2 outputs with a total of 5 activities and expenditure worth UGX.1.73Bn were partially quantified while 1 output with 1 activity and expenditure worth UGX.0.04Bn was not quantified at all. Of the quantified outputs, 3 outputs with 3)activities worth UGX.0.38Bn were fully implemented while 1 output with 3 activities worth UGX.1.95Bn was partially implemented. \uf0b7 The Mission had total collections including balance brought forward from previous year of UGX.406,961,421 out of which UGX.126,522,621 had been transferred to the Treasury for onward transfer to the Consolidated Fund leaving a balance UGX.280,522,621 not remitted. \uf0b7 The Mission paid USD.14,000 (UGX.51,800,000) in respect of education allowances direct to its officials instead of their respective educational institutions or schools contrary to Section (E - e) Paragraphs 19 and 20 of the Public Service Standing Orders 2010. \uf0b7 RIALS.746,627,400 (equivalent to UGX.65,703,211) was paid to Embassy staff as contingency allowance which is not provided for in the Public Service Standing Orders, 2010 and neither was it budgeted for during the year. \uf0b7 RIALS.146,565,232,896 (equivalent to UGX.12,897,740,495) was paid from the Mission\u2019s imprest account to cater for official activities but was not adequately accounted for. |\n|---:|-------------:|:----------------------------------------------------------|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 36 | Uganda Embassy in Copenhagen. 2019/2020 Opinion Qualified | \uf0b7 A sum of UGX.300,000,000 was approved by Parliament as supplementary budget for the Embassy for the financial year 2019/2020 out of which UGX.270,000,000 was subsequently released during the year. This amount was not accurately disclosed in the \u201cCommentary on the Financial Statements by the Head of Accounts\u201d. \uf0b7 Receivables from security deposits reduced by UGX.53,375,046 from UGX.313,145,225 in the previous year to UGX.259,770,179 as at the end of the year 2019/2020. I was not availed with supporting records to confirm the movement. \uf0b7 VAT claims increased from UGX.45,636,374 in the previous year to UGX.70,11,405 in the current year. I was not provided with a ledger showing the specific VAT claims, the VAT supplier numbers, and documents to support the claims for refunds from the tax authority among others. \uf0b7 Monthly and end-of-year bank reconciliations were not carried out. In addition, a list of bank accounts operated by the Embassy during the year was not disclosed by the Head of Accounts in his commentary on the Financial Statements. \uf0b7 The Embassy\u2019s approved budget for Non-Tax Revenue was UGX.1,570,000,000. I observed that the Non-Tax Revenue budget was not reflected in the Statements of Appropriation. \uf0b7 The Mission paid advances to various suppliers amounting to DKK.861,578.82 (equivalent to UGX.479,037,824). Whereas the Financial Reporting Guide, 2018 requires that prepayments are reported separately in the Statement of Cash Flows \u2013 as net advances paid and in the Statement of Financial Position as receivables, I noted that these prepayments were missing in both statements. \uf0b7 The Embassy lost a court case and subsequently a sum of UGX.27,965,384 (DKK.49,878.51) was awarded and paid in the year 2019/2020. I noted that the Memorandum Statement of Outstanding Commitments did not disclose the details regarding this case and there was no evidence that the funds for settlement of this court case had been budgeted for during the year. \uf0b7 Funds amounting to DKK.399,793.77 (equivalent to UGX.225,083,893) were irregularly diverted from the activities on which they were budgeted and spent on other activities for which money had not been appropriated without seeking and obtaining the necessary approval. \uf0b7 Payments made to the tune of DKK.109,193.75 (equivalent to UGX.61,221,660) lacked adequate supporting documents. Consequently, I could not confirm that the amounts paid were commensurate to the |", "metadata": {"page": 208, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | DKK.37,500 (equivalent to UGX.21,112,500) while on interdiction. Payment of employment benefits to staff on interdiction may be unlawful. \uf0b7 The Embassy continued to pay rent for the Finance Attach\u00e9\u2019s residence from April 2020 to September 2020 amounting to DKK.133,800.00 (equivalent to UGX.75,329,400), a period during which the residence was not occupied. \uf0b7 The Embassy procured 64 items for use at the Chancery and Embassy staff residences involving a sum of DKK.433,707.00 (equivalent to UGX.244,177,283). The procurements were undertaken without adherence to the procurement procedures and were not adequately accounted for. \uf0b7 Contrary to the provisions in the law, expenditure amounting to DKK.1,181,215.74 (equivalent to UGX.665,024,462) was irregularly incurred by the Embassy during the month of July out of the expired appropriation and before the first quarter release for the financial year 2020/2021 was received. \uf0b7 Prepayments amounting to DKK.566,960.83 (equivalent to UGX.319,198,947) were made to nine (9) suppliers for services including fuel, insurance, water, electricity and heating. The funds were paid before the services were received by the Embassy. \uf0b7 Cash amounting to DKK.37,000 (equivalent to UGX.20,831,000) was irregularly withdrawn from the Mission\u2019s corporate bank account by Amb. Elly Kamahungye Kafeero to pay for accounting work done by a non- member of staff living outside Copenhagen. The funds were re-deposited on the Embassy account on 12th June 2020 by Amb. Elly Kamahungye Kafeero after three months because the reasons for which the funds were withdrawn had been suspended. I found it unusual for an amount of money to be set aside for an activity without confirming the total cost of the activity or following procurement procedures to identify a supplier. \uf0b7 During the year 2019/2020, the Finance Committee was comprised of the Head of Mission (chairperson), Deputy Head of Mission, Accounting Officer, Finance Attach\u00e9, Head of Chancery (Third Secretary) and the Administrative Attach\u00e9. I observed that the Committee did not perform its roles of reviewing and approving the budgets and work-plans, monitoring implementation of the annual work-plans and procurement plans, monitoring implementation of internal controls over financial management and ensuring that there is compliance with applicable laws and regulations. | Unnamed: 2 |\n|---:|-------------:|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 37 | Ministry of Foreign Affairs (MOFA). 2020/21 Opinion Unqualified | \uf0b7 The Ministry has an approved strategic plan for FY 2020/21- 2024/25. NPA had issued a Certificate of Compliance (CoC) to the Ministry, and Ministry Top Management had approved the plan. It is now aligned to the NDPIII. \uf0b7 The Ministry collected only 5.7% of its NTR target for the year and had a shortfall in government funding of UGX.19.886Bn which is 30.9% of the budget. The Ministry absorbed 92.3% of the funds that were released. \uf0b7 Out of the thirty-two (32) outputs sampled, ten (10) were fully quantified, seventeen (17) were insufficiently quantified and five (5) were not quantified. \uf0b7 Out of the ten (10) outputs assessed, seven (7) were fully implemented while three (3) were partially implemented. \uf0b7 The Ministry prepared and submitted the annual budget implementation plans and reports as required but failed to accurately report and submit |", "metadata": {"page": 210, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | DKK.37,500 (equivalent to UGX.21,112,500) while on interdiction. Payment of employment benefits to staff on interdiction may be unlawful. \uf0b7 The Embassy continued to pay rent for the Finance Attach\u00e9\u2019s residence from April 2020 to September 2020 amounting to DKK.133,800.00 (equivalent to UGX.75,329,400), a period during which the residence was not occupied. \uf0b7 The Embassy procured 64 items for use at the Chancery and Embassy staff residences involving a sum of DKK.433,707.00 (equivalent to UGX.244,177,283). The procurements were undertaken without adherence to the procurement procedures and were not adequately accounted for. \uf0b7 Contrary to the provisions in the law, expenditure amounting to DKK.1,181,215.74 (equivalent to UGX.665,024,462) was irregularly incurred by the Embassy during the month of July out of the expired appropriation and before the first quarter release for the financial year 2020/2021 was received. \uf0b7 Prepayments amounting to DKK.566,960.83 (equivalent to UGX.319,198,947) were made to nine (9) suppliers for services including fuel, insurance, water, electricity and heating. The funds were paid before the services were received by the Embassy. \uf0b7 Cash amounting to DKK.37,000 (equivalent to UGX.20,831,000) was irregularly withdrawn from the Mission\u2019s corporate bank account by Amb. Elly Kamahungye Kafeero to pay for accounting work done by a non- member of staff living outside Copenhagen. The funds were re-deposited on the Embassy account on 12th June 2020 by Amb. Elly Kamahungye Kafeero after three months because the reasons for which the funds were withdrawn had been suspended. I found it unusual for an amount of money to be set aside for an activity without confirming the total cost of the activity or following procurement procedures to identify a supplier. \uf0b7 During the year 2019/2020, the Finance Committee was comprised of the Head of Mission (chairperson), Deputy Head of Mission, Accounting Officer, Finance Attach\u00e9, Head of Chancery (Third Secretary) and the Administrative Attach\u00e9. I observed that the Committee did not perform its roles of reviewing and approving the budgets and work-plans, monitoring implementation of the annual work-plans and procurement plans, monitoring implementation of internal controls over financial management and ensuring that there is compliance with applicable laws and regulations. | Unnamed: 2 |\n|---:|:-------------|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | its quarterly budget performance reports in time. \uf0b7 Analysis of the Ministry\u2019s domestic arrears over the past four years showed an increase by 34.2% from 2016/17 to 2020/21. \uf0b7 The Ministry had domestic arrears worth UGX.37,436,592,723 from the prior financial year but only budgeted for UGX.6,356,885,823 (17%) in the financial year under review, thus under budgeting. \uf0b7 The approved staff establishment of Ministry of Foreign Affairs revealed that out of the approved 362 staff positions, 344 positions representing 95% were filled while 18 positions representing 5% were vacant. | Unnamed: 2 |\n| 1 | 38 | Ministry of East African Community Affairs 2020/21 Opinion Unqualified | \uf0b7 I noted that the Ministry only had a draft strategic plan. NPA had not issued a Certificate of Compliance (CoC) to prompt to management of the Ministry approve the strategic plan. \uf0b7 The Ministry budgeted for NTR of UGX.699,000,000 for the financial year 2020/21, however only UGX.12,100,000 was collected representing performance of 1.731% of the target. The ministry absorbed 85.1% of the funds that were released. \uf0b7 Out of the fourteen (14) outputs sampled, twelve (12) were fully quantified, while two (2) were insufficiently quantified. \uf0b7 Out of the twelve (12) outputs assessed, eight (8) were fully implemented while four (4) were partially implemented. \uf0b7 The Ministry neither prepared annual budget monitoring plans nor submitted quarterly budget monitoring reports. The Ministry also failed to submit all its quarterly budget performance reports in time. \uf0b7 Analysis of the Ministry\u2019s domestic arrears over the past four years showed a downward trend from 2017 to 2021. As at the close of the financial year a sum of UGX.13,002,369,510 was outstanding. \uf0b7 Out of the approved one hundred three (103) staff positions, seventy two (72) positions representing 70% were filled while thirty one (31) positions representing 30% were vacant. |", "metadata": {"page": 211, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | DKK.37,500 (equivalent to UGX.21,112,500) while on interdiction. Payment of employment benefits to staff on interdiction may be unlawful. \uf0b7 The Embassy continued to pay rent for the Finance Attach\u00e9\u2019s residence from April 2020 to September 2020 amounting to DKK.133,800.00 (equivalent to UGX.75,329,400), a period during which the residence was not occupied. \uf0b7 The Embassy procured 64 items for use at the Chancery and Embassy staff residences involving a sum of DKK.433,707.00 (equivalent to UGX.244,177,283). The procurements were undertaken without adherence to the procurement procedures and were not adequately accounted for. \uf0b7 Contrary to the provisions in the law, expenditure amounting to DKK.1,181,215.74 (equivalent to UGX.665,024,462) was irregularly incurred by the Embassy during the month of July out of the expired appropriation and before the first quarter release for the financial year 2020/2021 was received. \uf0b7 Prepayments amounting to DKK.566,960.83 (equivalent to UGX.319,198,947) were made to nine (9) suppliers for services including fuel, insurance, water, electricity and heating. The funds were paid before the services were received by the Embassy. \uf0b7 Cash amounting to DKK.37,000 (equivalent to UGX.20,831,000) was irregularly withdrawn from the Mission\u2019s corporate bank account by Amb. Elly Kamahungye Kafeero to pay for accounting work done by a non- member of staff living outside Copenhagen. The funds were re-deposited on the Embassy account on 12th June 2020 by Amb. Elly Kamahungye Kafeero after three months because the reasons for which the funds were withdrawn had been suspended. I found it unusual for an amount of money to be set aside for an activity without confirming the total cost of the activity or following procurement procedures to identify a supplier. \uf0b7 During the year 2019/2020, the Finance Committee was comprised of the Head of Mission (chairperson), Deputy Head of Mission, Accounting Officer, Finance Attach\u00e9, Head of Chancery (Third Secretary) and the Administrative Attach\u00e9. I observed that the Committee did not perform its roles of reviewing and approving the budgets and work-plans, monitoring implementation of the annual work-plans and procurement plans, monitoring implementation of internal controls over financial management and ensuring that there is compliance with applicable laws and regulations. | Unnamed: 2 |\n|---:|-------------:|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 39 | The Independent Electoral Commission. 2020/21 Opinion Unqualified | \uf0b7 The Commission had not finalised the preparation of the strategic plan for the period 2021-2025. \uf0b7 The entity budgeted to collect NTR of UGX.4.483Bn during the year under review. Out of this, UGX.31.1Bn was collected, representing a performance of 694% of the target. \uf0b7 Out of the total warrants of UGX.671.61Bn received during the financial year, UGX.649.15Bn was spent by the entity resulting in an unspent balance of UGX.21.906Bn representing absorption level of 96.1%. \uf0b7 Out of the 9 outputs with a total of 40 activities and expenditure of UGX.671.61Bn assessed, 4 outputs with a total of 10 activities and expenditure worth UGX.51.838Bn was fully quantified, 3 outputs with a total of 16 activities and expenditure worth UGX.499.639Bn were insufficiently quantified while 2 outputs with a total of 14 activities and expenditure worth UGX.97.675Bn were not quantified at all. \uf0b7 Of the 4 out puts that were fully quantified with a total of ten (10) activities worth UGX.51.8Bn, 3 outputs with a total of 9 activities worth UGX.50.9Bn were fully implemented, while 1 output with 1 activity worth UGX.0.846Bn was partially implemented. |", "metadata": {"page": 211, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | DKK.37,500 (equivalent to UGX.21,112,500) while on interdiction. Payment of employment benefits to staff on interdiction may be unlawful. \uf0b7 The Embassy continued to pay rent for the Finance Attach\u00e9\u2019s residence from April 2020 to September 2020 amounting to DKK.133,800.00 (equivalent to UGX.75,329,400), a period during which the residence was not occupied. \uf0b7 The Embassy procured 64 items for use at the Chancery and Embassy staff residences involving a sum of DKK.433,707.00 (equivalent to UGX.244,177,283). The procurements were undertaken without adherence to the procurement procedures and were not adequately accounted for. \uf0b7 Contrary to the provisions in the law, expenditure amounting to DKK.1,181,215.74 (equivalent to UGX.665,024,462) was irregularly incurred by the Embassy during the month of July out of the expired appropriation and before the first quarter release for the financial year 2020/2021 was received. \uf0b7 Prepayments amounting to DKK.566,960.83 (equivalent to UGX.319,198,947) were made to nine (9) suppliers for services including fuel, insurance, water, electricity and heating. The funds were paid before the services were received by the Embassy. \uf0b7 Cash amounting to DKK.37,000 (equivalent to UGX.20,831,000) was irregularly withdrawn from the Mission\u2019s corporate bank account by Amb. Elly Kamahungye Kafeero to pay for accounting work done by a non- member of staff living outside Copenhagen. The funds were re-deposited on the Embassy account on 12th June 2020 by Amb. Elly Kamahungye Kafeero after three months because the reasons for which the funds were withdrawn had been suspended. I found it unusual for an amount of money to be set aside for an activity without confirming the total cost of the activity or following procurement procedures to identify a supplier. \uf0b7 During the year 2019/2020, the Finance Committee was comprised of the Head of Mission (chairperson), Deputy Head of Mission, Accounting Officer, Finance Attach\u00e9, Head of Chancery (Third Secretary) and the Administrative Attach\u00e9. I observed that the Committee did not perform its roles of reviewing and approving the budgets and work-plans, monitoring implementation of the annual work-plans and procurement plans, monitoring implementation of internal controls over financial management and ensuring that there is compliance with applicable laws and regulations. | Unnamed: 2 |\n|---:|:-------------|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:-------------|\n| 0 | Unnamed: 0 | \uf0b7 An assessment to establish if there has been service delivery from a sample of outputs that were implemented revealed that purchase of motor vehicles and other transport equipment was undertaken but not fully used for the purpose while the Commission continues to pay rent after fully acquiring warehousing space. \uf0b7 I noted inconsistencies in the reported performance where all vehicles were reported as received which was not true while reported balances in the financial statements were inconsistent with those reported in the performance reports. \uf0b7 I noted that funds to the tune of UGX.4,023,217,397 were irregularly diverted from the activities on which they were budgeted and spent on other activities without seeking and obtaining the necessary approvals. \uf0b7 I noted that the Commission has been accumulating arrears in past three years and during the year 2020/2021, UGX.6.959Bn in arrears remained outstanding. \uf0b7 The Commission has in the past won cases and was awarded costs to the tune of UGX.336,880,920 but management has not collected these receivables. \uf0b7 The Commission procured Biometric Voter Verification Kit and services for the 2021 general election at a cost of UGX.82,894,881,252 and I observed that available kits were not considered while the services were not fully delivered. \uf0b7 The Commission entered into two contract agreements with a company to supply 10 double cabin pick-up vehicles at a cost of UGX.1,564,563,350 and 40 double cabin pick-up vehicles at UGX.7,013,387,920 for nomination of the Presidential candidates but by the time of audit, whereas the Commission had paid the full amount, only 32 double cabin vehicles out of the total 50 vehicles procured had been delivered leaving a balance of 18 vehicles. \uf0b7 The Commission procured for printing of ballot papers for 2021 general elections at a total cost of UGX.83.855Bn. 248 out of expected 448 pallets were delivered but the Commission had assembled vehicles to carry the entire load which rendered the vehicles redundant and this caused a loss to the Commission in form of hire fees, fuel and allowances. \uf0b7 The Commission was required to vacate their current premises by 30th June, 2021 and was subsequently compensated with UGX.22.14Bn by the Uganda National Roads Authority which was transferred to the consolidated fund as non-tax revenue. As a result of the continued delay to implement this critical activity of finding a new home, the Commission is already incurring losses on property acquired and is also likely to cause government to incur litigation costs through UNRA\u2019s failure to completely hand over the construction sites for roads to the contractor. \uf0b7 The Commission contracted two law firms for provision of legal services for Presidential petition at a cost of UGX.3,748,550,000 which had been budgeted at UGX.800Million resulting into payment of UGX.2,948,550,000 over and above the budget. Even though the planning for the elections started 3 years back, the procurement was treated as an emergency and there was no basis for the fees charged or detail of how the Commission came up with the market price for the service. | Unnamed: 2 |\n| 1 | | WORKS AND TRANSPORT SECTOR | |", "metadata": {"page": 212, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 1 | Ministry of Works and Transport (MoWT) Opinion Unqualified | \uf0b7 I noted that the entity had prepared a strategic plan. However, this had not been approved by NPA at the end of the year under review. \uf0b7 The Ministry did not forecast the NTR to be collected during the year. However, a total of UGX6,995,230,920 was collected during the year. \uf0b7 Out of the total warrants of UGX. 1,280.322Bn received during the financial year, UGX. 1,067.967Bn was spent by the entity resulting in an unspent balance of UGX. 212.355Bn representing absorption level of 83.4% \uf0b7 The Ministry did not implement some of its planned activities during the year. Examples include: bridge inventory Data for BMS not collected; bridge management System (BMS) Software not procured, and; upgrading to Bitumen Standard Sebbowa road. \uf0b7 The Ministry had receivables worth UGX.1,570,776,843 out of which those worth UGX.623,855,947 were outstanding at the end of the previous year. There is likelihood of failure to recover the receivables that have been outstanding for over a year \uf0b7 Twenty-one (21) units of district road equipment had been lying in the workshops\u2019 yards for more than a year without repair. The equipment included: thirteen (13) motor graders of different models; four (4) bulldozers; One (1) pickup; two (2) dump trucks, and one (1) wheel loader. \uf0b7 Three (3) out of the nine (9) training aircrafts of the East African Civil Aviation Academy in Soroti were grounded due to non-repair and maintenance. The aircrafts were (registration numbers): 5X-RWE grounded due to a defective fuel injector pump; 5X-UAN grounded for mandatory structural modification and 5X -YKM grounded for a propeller overhaul. \uf0b7 I observed delayed compensation of PAPs for the development of the New Kampala Port in Bukasa. The valuation report for 2,378 PAPs with a total compensation sum of UGX 29.2 billion was approved by the Chief Government Valuer in October 2018. A total of 1,253 PAPs with a total compensation value of UGX.19.5 billion had been paid by 30th June 2021. As a result a total of 1,125 PAPs with a total compensation value of UGX.9.7 billion have remained unpaid for about three years. \uf0b7 Procurements worth UGX 1,772,908,757 which were not planned were implemented by the Ministry, while procurements worth UGX.7,465,000,000 which were planned were not implemented. \uf0b7 I observed delayed completion of Kayunga - Nabuganyi and Nansana \u2013 Kireka - Bbira roads construction project contracted at UGX 45,349,361,632. The contract provided that the works were to be completed by 01/07/2020. However, by the time of the audit in October 2021, one year and four months after planned completion date, the project works were not yet completed. \uf0b7 The acquisition of land for the Right of Way (RoW) for the SGR project has been delayed. The project plan was to acquire 5200 acres of land free of encumbrances at an estimated cost of UGX 534,600,000,000 for the construction of Kampala \u2013 Malaba SGR route by October 2016. However, only 1,295.98 (24.9%) acres of land had been acquired at a cost of UGX.95,361,767,388 (18%) as of September 2021. |\n|---:|----:|:-------------------------------------------------------------|:-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 2 | Report on Verification SGS Automotive Uganda Limited For | \uf0b7 I was unable to obtain all documents relating to the procurement for my review. From the available records however, it was noted that there were significant delays in the procurement process arising from administrative |", "metadata": {"page": 213, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Setting Up of Vehicle Inspection Facilities Under the Contract for Provision of Mandatory Motor Vehicle Inspection Services (MVIS). Dec 2021 | reviews and court processes. It is also important to note that the High Court had made a ruling in favour of award of the contract to SGS. \uf0b7 There were delays in formulation of the statutory instrument covering revision of chargeable rates, negatively impacting on compliance by the vehicle owning public. \uf0b7 The responsible Government authorities did not make adequate efforts to enforce public compliance to the mandatory motor vehicle inspection. \uf0b7 During the first phase of the contract implementation, the Ministry delayed to formulate a comprehensive public sensitization strategy to create awareness about the mandatory motor vehicle inspection. \uf0b7 The stakeholder information sharing system that was required under the contract had not been set up by the time of halting of operations by Parliament and as such key stakeholders have not had the opportunity to access requisite information. \uf0b7 The upgrading of the upcountry stations of Mbarara, Mbale and Gulu had not yet commenced. \uf0b7 SGS Automotive Uganda had invested a total of UGX.109,856,594,590 in the activities relating to the contract for mandatory vehicle inspection between the SGS and Government of Uganda. |\n|---:|-------------:|:-----------------------------------------------------------------------------------------------------------------------------------------------|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 3 | Uganda Road Fund. Opinion Unqualified | \uf0b7 I noted that the entity had prepared a strategic plan. However, this had not been approved by NPA at the end of the year under review. \uf0b7 URF did not forecast the NTR to be collected during the year. However, the Fund collected a total of UGX7,078,800 during the year. \uf0b7 Out of the total warrants of UGX. 506.507bn received during the financial year, UGX. 506.296 Bn was spent by the entity resulting in an unspent balance of UGX. 0.211Bn representing an absorption level of 99.96%. The unspent funds were swept back to the consolidated fund as required by the PFMA \uf0b7 The Authority did not implement some of its planned activities during the year. Examples include: Production of quarterly reports on the status and functionality of District Road Committees; Recruitment and substantive appointment of staff and; Review and calibration of the funds allocation formula. \uf0b7 The Fund did not collect the funds provided for under section 21 of the URF Act 2008 which mandates the Fund on recommendation by the URF Board to charge road user charges which include fuel levies, international transit fees from vehicles entering the country, road license fees, axle load fees, and bridge and road toll fees. \uf0b7 I noted that the fund allocation formula was last reviewed by the Secretariat in 2019. In addition, during the year, the formula was not reviewed to provide for current situations such as budget cuts and Covid- 19 pandemic effects which led to disproportionate transfers to designated agencies. \uf0b7 Procurements worth UGX 642,234,236 had delays ranging between 1 and 93 working days. For example; the contract for provision of Motor Vehicle maintenance services under framework contract was delayed by 93 days and the contract for supply, delivery and installation of I-pads for URF Board members was delayed by 15 days. \uf0b7 There were inadequate monitoring Designated Agencies. Out of the 203 designated agencies supposed to be monitored, only twenty-seven (27) Agencies representing 13.3% of the total designated agencies and sub |", "metadata": {"page": 214, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Setting Up of Vehicle Inspection Facilities Under the Contract for Provision of Mandatory Motor Vehicle Inspection Services (MVIS). Dec 2021 | reviews and court processes. It is also important to note that the High Court had made a ruling in favour of award of the contract to SGS. \uf0b7 There were delays in formulation of the statutory instrument covering revision of chargeable rates, negatively impacting on compliance by the vehicle owning public. \uf0b7 The responsible Government authorities did not make adequate efforts to enforce public compliance to the mandatory motor vehicle inspection. \uf0b7 During the first phase of the contract implementation, the Ministry delayed to formulate a comprehensive public sensitization strategy to create awareness about the mandatory motor vehicle inspection. \uf0b7 The stakeholder information sharing system that was required under the contract had not been set up by the time of halting of operations by Parliament and as such key stakeholders have not had the opportunity to access requisite information. \uf0b7 The upgrading of the upcountry stations of Mbarara, Mbale and Gulu had not yet commenced. \uf0b7 SGS Automotive Uganda had invested a total of UGX.109,856,594,590 in the activities relating to the contract for mandatory vehicle inspection between the SGS and Government of Uganda. |\n|---:|:-------------|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | agencies were monitored during the year. \uf0b7 Whereas URF had central stores under the charge and control of the Administrative Officer, the entity did not have a proper stores management system that is recommended in the Treasury Instructions. | Unnamed: 2 |", "metadata": {"page": 215, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Setting Up of Vehicle Inspection Facilities Under the Contract for Provision of Mandatory Motor Vehicle Inspection Services (MVIS). Dec 2021 | reviews and court processes. It is also important to note that the High Court had made a ruling in favour of award of the contract to SGS. \uf0b7 There were delays in formulation of the statutory instrument covering revision of chargeable rates, negatively impacting on compliance by the vehicle owning public. \uf0b7 The responsible Government authorities did not make adequate efforts to enforce public compliance to the mandatory motor vehicle inspection. \uf0b7 During the first phase of the contract implementation, the Ministry delayed to formulate a comprehensive public sensitization strategy to create awareness about the mandatory motor vehicle inspection. \uf0b7 The stakeholder information sharing system that was required under the contract had not been set up by the time of halting of operations by Parliament and as such key stakeholders have not had the opportunity to access requisite information. \uf0b7 The upgrading of the upcountry stations of Mbarara, Mbale and Gulu had not yet commenced. \uf0b7 SGS Automotive Uganda had invested a total of UGX.109,856,594,590 in the activities relating to the contract for mandatory vehicle inspection between the SGS and Government of Uganda. |\n|---:|-------------:|:-----------------------------------------------------------------------------------------------------------------------------------------------|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 4 | Uganda National Roads Authority. 2020/21 Opinion Qualified | \uf0b7 A total of UGX 124,367,095,163 representing 21.58% of the spent funds for the sampled planned outputs was diverted from the budgeted projects to other projects contrary to the above provision. There was no evidence that the reallocations/diversions of such magnitude were authorized either by Parliament or the relevant funders. \uf0b7 The Authority over-budgeted funds for salaries. The over budgeted funds were diverted from the salary provisions to capital development activities. The diversion of funds led to a misreporting in the financial statements of UGX 4,689,704,394. \uf0b7 I noted that the UNRA did not have an approved five year vote strategic plan by NPA to facilitate operationalization of the NDP III infrastructure sector priorities during the first year of NDP implementation. \uf0b7 UNRA did not forecast the NTR to be collected during the year. In addition, there was no documented revenue collection plan detailing how much to be collected and revenue sources. However, UNRA collected a total of UGX3,894,306,295 during the year. I also noted that MoFPED set a target of UGX10.76bn to be collected in NTR by UNRA during the year under review; there was no reconciliation between the Ministry of Finance, Planning and Economic and Uganda National Roads Authority on the planned revenue to be collected. \uf0b7 The UNRA budgeted to receive UGX. 3,918.151 bn out of which UGX. 3,787.289 bn was availed, resulting in a shortfall of UGX 130.863 bn, which is 3.34% of the budget. \uf0b7 I noted that UNRA did not have unit cost estimates at activity level to provide a link between inputs, processes, outputs and intermediate outcomes realized during the year. \uf0b7 The Authority failed to implement several planned activities during the year. Examples include: construction of 10 km - equivalents along package 6 (Karugutu - Ntoroko and Kabwoya - Buhuka); construction of 10 km - equivalents along Rwenkunye- Apac- Lira-Acholibur road; civil works for the construction of UNRA offices; works for construction of Kamdini Weigh station, and; construction of Wanseko Ferry landing site. \uf0b7 Contrary to the Land Acquisition Act CAP 226, I noted that for the Hoima- Butiaba-Wanseko Road Project, UNRA did not submit a request to the Ministry of Lands to declare the land identified for the road project as land of interest. \uf0b7 I observed delays in payments for Project Affected Persons on two roads audited. Out of the sampled 221 PAPs for Hoima-Wanseko, 136 PAPs with properties worth UGX 6.2 billion were paid after the specified six-month period. For KJE project, out of 234 PAPs sampled, 229 PAPs with properties worth UGX 70.2 billion were paid after the specified six-month period. \uf0b7 According to the Kampala-Jinja Expressway Resettlement Action Plan Implementation Progress report of May 2020 \u2013 August 2021, a total of 219 PAPs required physical resettlement. It was noted by the time of the audit that 13 resettlement sites had been identified and these were being assessed for suitability. However, although the process of engaging a provider to support UNRA in developing housing options and building the |", "metadata": {"page": 215, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Setting Up of Vehicle Inspection Facilities Under the Contract for Provision of Mandatory Motor Vehicle Inspection Services (MVIS). Dec 2021 | reviews and court processes. It is also important to note that the High Court had made a ruling in favour of award of the contract to SGS. \uf0b7 There were delays in formulation of the statutory instrument covering revision of chargeable rates, negatively impacting on compliance by the vehicle owning public. \uf0b7 The responsible Government authorities did not make adequate efforts to enforce public compliance to the mandatory motor vehicle inspection. \uf0b7 During the first phase of the contract implementation, the Ministry delayed to formulate a comprehensive public sensitization strategy to create awareness about the mandatory motor vehicle inspection. \uf0b7 The stakeholder information sharing system that was required under the contract had not been set up by the time of halting of operations by Parliament and as such key stakeholders have not had the opportunity to access requisite information. \uf0b7 The upgrading of the upcountry stations of Mbarara, Mbale and Gulu had not yet commenced. \uf0b7 SGS Automotive Uganda had invested a total of UGX.109,856,594,590 in the activities relating to the contract for mandatory vehicle inspection between the SGS and Government of Uganda. |\n|---:|:-------------|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | agreed resettlement houses was initially scheduled to be completed by December 2020, no contractor had been procured for this purpose by the time of the audit in September 2021, implying a delay of over 9 months. \uf0b7 Significant delays in subdivision, demarcation and transfer of titles for fully acquired plots were observed on the Kampala-Jinja Expressway and Hoima-Wanseko Road projects. \uf0b7 The Authority had an outstanding balance of UGX 215,059,225,419 in terms of payables at the year end. This figure increased by UGX 73,885,957,262 (52.3%) from the previous year\u2019s amount of UGX 141,173,268,157. It was observed that the bulk of this amount is comprised of unpaid certificates to contractors which yield interest due to delayed payments. \uf0b7 Authority made payments amounting to UGX 17,078,565,465 as a result of penalties for the court cases and interest on delayed payments of advances and IPCs invoices from various projects. This is a loss to Government. \uf0b7 The value of the Authority\u2019s infrastructure assets at the end of the financial year was disclosed as UGX10,417,198,881,566. However, contrary to the policy requirement to revalue the assets every three years, I was not availed with any valuation report for the infrastructure assets to confirm that the assets had ever been valued. \uf0b7 35 road projects with a total contract value of USD.398,427,063.99 and UGX. 149,739,813,845 that were to be completed during the year were still on \u2013 going by the close of the year. \uf0b7 Three civil cases with claims totaling to UGX6.991bn were brought against UNRA due to its failure to return residue land titles to the registered proprietors. | Unnamed: 2 |", "metadata": {"page": 216, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Setting Up of Vehicle Inspection Facilities Under the Contract for Provision of Mandatory Motor Vehicle Inspection Services (MVIS). Dec 2021 | reviews and court processes. It is also important to note that the High Court had made a ruling in favour of award of the contract to SGS. \uf0b7 There were delays in formulation of the statutory instrument covering revision of chargeable rates, negatively impacting on compliance by the vehicle owning public. \uf0b7 The responsible Government authorities did not make adequate efforts to enforce public compliance to the mandatory motor vehicle inspection. \uf0b7 During the first phase of the contract implementation, the Ministry delayed to formulate a comprehensive public sensitization strategy to create awareness about the mandatory motor vehicle inspection. \uf0b7 The stakeholder information sharing system that was required under the contract had not been set up by the time of halting of operations by Parliament and as such key stakeholders have not had the opportunity to access requisite information. \uf0b7 The upgrading of the upcountry stations of Mbarara, Mbale and Gulu had not yet commenced. \uf0b7 SGS Automotive Uganda had invested a total of UGX.109,856,594,590 in the activities relating to the contract for mandatory vehicle inspection between the SGS and Government of Uganda. |\n|---:|-------------:|:-----------------------------------------------------------------------------------------------------------------------------------------------|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 5 | Uganda Civil Aviation Authority. 2020/21 Opinion Unqualified | \uf0b7 I noted that the entity had prepared a strategic plan. However, this had not been approved by NPA at the end of the year under review. \uf0b7 UCAA budgeted to collect internal revenue of UGX 293bn during the year under review. Out of this, only UGX 114.991bn was collected, representing a performance of 39.2% of the target. \uf0b7 UCAA absorbed all its revenue collected, and accrued expenditure in unpaid bills that is. its actual expenditure was more than the revenue. \uf0b7 The Authority did not implement some of its planned activities during the year. Examples include: Capital projects for Regional Airports, KOICA Counterpart funding, and procurement of a fleet management system, updating the master plan and constructing the ground surface car park. \uf0b7 There was an increase in trade and other receivables of UGX. 12,279,645,000 (equivalent to 25%) from UGX. 48,854,526,000 to UGX.61,134,171,000. The delayed collection of the receivables may lead to bad debts. \uf0b7 Management reported an increase in trade payables of UGX 21,763,762,000 (equivalent to 47.9%) from UGX 45,470,736,000 to UGX 67,234,498,000. \uf0b7 The Authority had accumulated receivables of up to UGX 96,569,511,580 in the FY 2019/20 due from Government Agencies. In the year under review, there was no follow up of this debt to the Government agencies, and no amounts were cleared. \uf0b7 The Authority made a loss for the year under review amounting to UGX 29,321,645,000. Because of the loss, the Authority did not have capacity |", "metadata": {"page": 216, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Setting Up of Vehicle Inspection Facilities Under the Contract for Provision of Mandatory Motor Vehicle Inspection Services (MVIS). Dec 2021 | reviews and court processes. It is also important to note that the High Court had made a ruling in favour of award of the contract to SGS. \uf0b7 There were delays in formulation of the statutory instrument covering revision of chargeable rates, negatively impacting on compliance by the vehicle owning public. \uf0b7 The responsible Government authorities did not make adequate efforts to enforce public compliance to the mandatory motor vehicle inspection. \uf0b7 During the first phase of the contract implementation, the Ministry delayed to formulate a comprehensive public sensitization strategy to create awareness about the mandatory motor vehicle inspection. \uf0b7 The stakeholder information sharing system that was required under the contract had not been set up by the time of halting of operations by Parliament and as such key stakeholders have not had the opportunity to access requisite information. \uf0b7 The upgrading of the upcountry stations of Mbarara, Mbale and Gulu had not yet commenced. \uf0b7 SGS Automotive Uganda had invested a total of UGX.109,856,594,590 in the activities relating to the contract for mandatory vehicle inspection between the SGS and Government of Uganda. |\n|---:|:-------------|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | to cover any potential interest accruing on its long term loans in view of its earnings. Along with the lack of potential to cover loan interest, the Authority had a significant long term liabilities portfolio on its balance sheet, which majorly comprised of the loan from Exim Bank of China. \uf0b7 Prime Media\u2019s contract ended with a debt of UGX 1,131,017,128 which was unpaid for the year before the expiry of the contract. \uf0b7 UCAA has multiple systems operating in different departments which are tailored for the operations in the respective departments. A review of these systems revealed that some were not functional, not interfaced with other complementary system(s) and/or some of their modules were not working. Further, the IT Point of Sale System bought for tracking of revenue from concessionaire shops was out of date. \uf0b7 The Exim Bank loan terms to UCAA were renegotiated and this was to be formalized into an addendum agreement, to ensure that they are manageable. However, the addendum to the contract terms had still not been made by the time of this audit. | Unnamed: 2 |", "metadata": {"page": 217, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Setting Up of Vehicle Inspection Facilities Under the Contract for Provision of Mandatory Motor Vehicle Inspection Services (MVIS). Dec 2021 | reviews and court processes. It is also important to note that the High Court had made a ruling in favour of award of the contract to SGS. \uf0b7 There were delays in formulation of the statutory instrument covering revision of chargeable rates, negatively impacting on compliance by the vehicle owning public. \uf0b7 The responsible Government authorities did not make adequate efforts to enforce public compliance to the mandatory motor vehicle inspection. \uf0b7 During the first phase of the contract implementation, the Ministry delayed to formulate a comprehensive public sensitization strategy to create awareness about the mandatory motor vehicle inspection. \uf0b7 The stakeholder information sharing system that was required under the contract had not been set up by the time of halting of operations by Parliament and as such key stakeholders have not had the opportunity to access requisite information. \uf0b7 The upgrading of the upcountry stations of Mbarara, Mbale and Gulu had not yet commenced. \uf0b7 SGS Automotive Uganda had invested a total of UGX.109,856,594,590 in the activities relating to the contract for mandatory vehicle inspection between the SGS and Government of Uganda. |\n|---:|-------------:|:-----------------------------------------------------------------------------------------------------------------------------------------------|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 6 | Uganda National Airlines Company Ltd (UNACL). 2020/21 Opinion Qualified | \uf0b7 UGX 8,716,398,000 was disclosed as the value of the inventories in the statement of financial position. However there was no evidence that Management carried out end of year stock taking to get actual values of inventories. In addition, there were no stores ledgers for engineering stores, and although the general stores had manual ledgers, the ledgers were not capturing Goods Received Note reference numbers (GRN) against the receipts in the ledgers as a reference of the goods received. \uf0b7 I noted that the entity did not have a strategic / business plan aligned to NDPIII. \uf0b7 UNACL budgeted to collect internal revenue of UGX 304.6bn during the year under review. Out of this, only UGX 48.6bn was collected, representing a performance of 16% of the target. \uf0b7 The Company did not implement some of its planned activities during the year. Examples include: Procurement of spare parts for the Airbus fleet; supporting 32 pilots for A330-800 neo type training, and; supporting 60 pilots in simulator training. \uf0b7 The company had payables totaling UGX.47,032,043,000. All the outstanding invoices were payable to UCAA. Out of the amount, payables totaling UGX 16,065,309,363 had been due for more than 6 months. \uf0b7 UGX 1,127,484,315 as the value of Property Plant and Equipment In the statement of financial position and the corresponding note (Note 12) as at the close of the financial year. However, it was noted that assets were not engraved to give them an identification number for easy of identification. It was also noted that the assets could not be traced in the assets\u2019 register due to lack of identification numbers. \uf0b7 I carried out financial analysis of UNACL financial performance and observed that the Company had made losses for the year 2019/2020 and 2020/2021 amounting to UGX102.442bn and UGX164.573bn respectively. On review of the operating margin, I observed that the costs before considering interest and taxes exceeded company revenues for the two years. I also observed that due to the losses incurred, the Company generated negative return on assets of 12.2% for the year 2019/2020 and 13.1% for the year 2020/2021. The Company\u2019s revenue is still far below its assets. \uf0b7 UACL implemented twenty-five (25) procurements outside the approved procurement plan for the FY 2020/2021. The procurements were made in |", "metadata": {"page": 217, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Since the affected staff remained on the same terms of contract, the officers appointed to act in their positions receive extra pay implying double payment for the same position. As a consequence, the company has lost a total of UGX 2,319,017,267 in a seven months\u2019 period (May to November 2021). | Unnamed: 2 |\n|---:|-------------:|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 7 | Uganda Railways Corporation. 2020/21 Opinion Qualified | \uf0b7 The Corporation had Non-current assets worth UGX.3,525,540,249,000 as at 30th June 2021. However, this figure included a total of UGX.6,012,000,000 in respect of Kabalega ferry (UGX.5,760,000,000) and Barbus ferry (UGX.252,000,000) which sunk under water twenty five years and sixteen years respectively. Since the ferries have been out of use under water for a long time without retrieval and cannot be disposed of while under water, it cannot be determined whether they still hold the value indicated to the Corporation. \uf0b7 The Corporation had GoU equipment loans amounting to UGX.22,067,482,000 at the beginning and end of the year under review. Out of this loan amount, loans totalling UGX.16,511,595,000 (other than the Spanish Government loan) were not supported and did not show any movement over the last four (4) years. \uf0b7 Interest arising from loans that was yet to be cleared by URC amounted to UGX.9,511,880,000. However, this balance has been outstanding over several years without any movement. The status quo still remained the same by the close of the year under review. This interest payable was not supported by any original documentation. \uf0b7 Trade and Other Payables increased from UGX.17,937,602,000 at the beginning of the year to UGX.21,513,931,000 at the close of the year. Out of the amount, trade and other payables worth UGX.9,753,781,407 lacked supporting documents such as LPOs, contracts, inward invoices, claims and demand notes. \uf0b7 The Corporation had Trade and Other Receivables of UGX.75,637,890,000 as at 30th June 2021. The figure includes UGX.69,516,000,000 due from Government in respect of the Nsambya land. This amount has remained un-paid to URC for too long despite Government having disposed of the land to the public long ago implying that the Corporation may never be compensated for its land. \uf0b7 URC budgeted to collect internal revenue of UGX 120.49 during the year under review. Out of this, only UGX 54.6bn was collected, representing a performance of 45.3% of the target. \uf0b7 The Corporation did not implement some of its planned activities during the year. Examples include: Sleeper reconditioning; Kampala Station not fencing; Tororo Station Roof Repairs and; Rehabilitation of Steel Mill Jinja siding. \uf0b7 The Corporation made losses for the past two years; UGX 37,783,152,000 (2020/2021) and UGX 66,151,318,000 (2019/2020). The Corporation\u2019s losses and the ratios computed are an indication that Uganda Railways Corporation is not performing well in terms of profitability and ability to sustain provision of services without further Government intervention for funding and Management strategies to improve revenue generation. \uf0b7 Management did not assess impairment of assets despite existence of impairment indicators. For instance, rental properties were being charged below market value. \uf0b7 Uganda Railways Corporation land worth UGX.91,832,636,500 lacked land titles as evidence of URC\u2019s rights to own and use the property. Management\u2019s efforts to secure the land titles appear remote. Lack of |", "metadata": {"page": 219, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Since the affected staff remained on the same terms of contract, the officers appointed to act in their positions receive extra pay implying double payment for the same position. As a consequence, the company has lost a total of UGX 2,319,017,267 in a seven months\u2019 period (May to November 2021). | Unnamed: 2 |\n|---:|:-------------|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | land titles has led to heavy encroachment and grabbing of the Corporation\u2019s land. \uf0b7 URC procured four (4) used locomotives at UGX.41,323,768,935. I noted that the bidder did not comply with some requirements within the bid document which were supposed to be the basis of evaluation. Despite the non-compliance at the preliminary stage, the bid was evaluated at the Technical stage without following procurement regulations. \uf0b7 Government signed an agreement with Mango Tree (U) Ltd for the rehabilitation and upgrade of the Pamba ferry. However, the vessel was still grounded after a year of signing the agreement. \uf0b7 An officer of URC irregularly signed to transfer land measuring 4.452 hectares in Lira (under FRV 220 Folio 13). The land was subdivided into plots 41-63, 52-62, 42-50 and the titles were being processed. \uf0b7 Jinja Municipal took part of URC land in Jinja (6.3 acres) and gave it out to 58 developers, without consultation with the Corporation. | Unnamed: 2 |\n| 1 | 8 | Busega-Mpigi Road Project (Uganda National Roads Authority) 2020 Opinion Unqualified | \uf0b7 I observed slow progress in Construction works and accumulation of loan charges. As of June 30th 2020, the contractor had only achieved physical progress of 0.13% against 12.77% planned cumulative progress. The total time lapse since commencement of the construction works was 7 months constituting 24.26% of the total contract duration yet only 0.13% construction work had been achieved. Slow progress in Construction works has led to continued accumulation of both Commitment and Service Charges that amounted to UGX 2,921,803,802 and UGX 5,802,593,707 respectively as at the reporting date. \uf0b7 UNRA reallocated GOU counterpart funding to other projects for the year ended 30th June, 2020. A total of UGX 320,077,550 was reallocated from the project to other projects. The reallocations delay project progress. |", "metadata": {"page": 220, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Since the affected staff remained on the same terms of contract, the officers appointed to act in their positions receive extra pay implying double payment for the same position. As a consequence, the company has lost a total of UGX 2,319,017,267 in a seven months\u2019 period (May to November 2021). | Unnamed: 2 |\n|---:|-------------:|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 9 | Busega-Mpigi Road Project (Uganda National Roads Authority). 2021 Opinion Unqualified | \uf0b7 I observed slow progress in Construction works and accumulation of loan charges. As of June 30th 2021, the contractor had only achieved 3.42% against 29.18% planned cumulative progress. The total time lapse since commencement of the construction works was 19 months constituting 64.01% of the total contract duration yet only 3.42% construction work had been achieved. Slow progress in Construction works has led to continued accumulation of both Commitment and Service Charges that amounted to UGX 3,224,867,623 and UGX 7,140,345,245 respectively as at the reporting date. \uf0b7 I observed failure to procure Prefabricated Pipe Culvert Units to the project which is delaying project progress. The contractor could not progress through pipe culvert installation due to lack the culverts. \uf0b7 There were delays in payments to the contractor that are likely to lead to interest charges. I observed that on 2nd June 2021, the contractor issued IPC No. 3 amounting to UGX 8,303,000,336 which was unpaid by 30th June, 2021 and interest on the late payment was due to commence on 28th July 2021. \uf0b7 I observed delayed possession of site and land take over by the contractor. By 30th June, 2021, land acquisition was at 54.8% or 14.605 km of the main expressway where access to and possession was granted. It is to be noted that 100% access to and possession should have been formally handed over after 18 months (that is; 22nd May 2021) from commencement. \uf0b7 UNRA reallocated GOU counterpart funding to other projects for the year ended 30th June, 2020. A total of UGX 1,956,237,995 was reallocated |", "metadata": {"page": 220, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Since the affected staff remained on the same terms of contract, the officers appointed to act in their positions receive extra pay implying double payment for the same position. As a consequence, the company has lost a total of UGX 2,319,017,267 in a seven months\u2019 period (May to November 2021). | Unnamed: 2 |\n|---:|:-------------|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | from the project to other projects. The reallocations delay project progress. | Unnamed: 2 |\n| 1 | 10 | Kapchorwa-Suam Road Project (Uganda National Roads Authority) 2021 Opinion Unqualified | \uf0b7 I observed delayed access and possession of site by the contractor. The last section of the road (from km 48+000 to km 073+000) was granted to the contractor on the 14th of June 2021 which is after 888 days. Further, additional land acquisition is still under progress from Km33+000 to Km73+000. Civil works from Km 46 to Km 58 have been put on hold pending additional land take especially for slope protection. It was also noted that new structures were being erected in the road reserve at Km17+692 and KM5+430. \uf0b7 I observed delays in execution of Project civil works. UNRA engaged M/S China State Construction Engineering Corporation Ltd on the 7th May 2018 to upgrade Kapchorwa-Suam road for a period of 36 months, with effect from 1st October 2018. There was an extension of time of 4.5 months up to 15th February 2022. Based on the extension of time, the time lapse as at 30th June 2021 was 33 months that is 81.40 %. However the reported cumulative physical progress for civil works was 43.14% with no active works from Km 55 to km 73. |", "metadata": {"page": 221, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Since the affected staff remained on the same terms of contract, the officers appointed to act in their positions receive extra pay implying double payment for the same position. As a consequence, the company has lost a total of UGX 2,319,017,267 in a seven months\u2019 period (May to November 2021). | Unnamed: 2 |\n|---:|-------------:|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 11 | Road Sector Support Project 4 \u2013 Kigumba-Masindi- Hoima-Kabwoya Road (2021) (Uganda National Roads Authority). 2021 Opinion Unqualified | \uf0b7 I observed delayed completion of civil works on Upgrading of Bulima \u2013 Kabwoya Road (Lot2).The project commencement date was 1st December 2015, and the initial completion date was after 30 months on 31st May 2018. Successive revisions of completion dates extended the construction period by a further 22 months with the last revised completion date being 27th March 2021. A certificate of substantial completion was issued in January 2021, and the contractor allowed 12 months as the Defects Liability Period, expiring on 27th January 2022. The snag list included two main items; the construction of Hoima Town Roads and a way bridge. \uf0b7 I observed delayed completion of civil works on Upgrading of Kigumba \u2013 Bulima Road (Lot1). The construction period was for 30 months (after commencement in March 2018), elapsing on 31st August 2020. When the Audit Team visited the site in September 2021, (42 months after commencement), the attained level of completion was approximately 95%. However, the new proposed completion date of 31st August had passed and no new completion date had been communicated. \uf0b7 There were delays in payment of lot1 supervision fees. By the time of my audit, the Lot 1 Supervising Engineer\u2019s unpaid invoices had accumulated to Euros 661,605 for the foreign component of the contract and UGX 1.38bn for the local component. The delays are likely to impact on the Engineer\u2019s ability to perform the contractual obligations and in turn impact on the progress of the construction works. |", "metadata": {"page": 221, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Since the affected staff remained on the same terms of contract, the officers appointed to act in their positions receive extra pay implying double payment for the same position. As a consequence, the company has lost a total of UGX 2,319,017,267 in a seven months\u2019 period (May to November 2021). | Unnamed: 2 |\n|---:|-------------:|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 12 | Albertine Regional Sustainable Development Project (ARSDP) (Uganda National Roads Authority). 2021 Opinion Unqualified | \uf0b7 I observed delayed implementation of civil works (Upgrading of Kyenjojo- Kabwoya Raod \u2013 100km). The duration of the contract was 36 months (from 5th April 2016 to 4tth April 2019) excluding the Defects Liability Period. There were two extensions of time; the first one for 818 days i.e from 4th April 2019 up to 30th June 2021 and the second one for four months from 1st July 2021 to 31st October 2021. The right of way for the last section, Km 0 to Km 30 was handed over to the contractor on the 14th September 2018. However, as per the monthly report No. 63 for the month of June 2021, the progress of works was reported as 94.83% against planned of 96.27%. In addition to this, the contractor was supposed to substantially complete and hand over 30% of works within 180 days of the commencement date. However, as at 30th June 2021 |", "metadata": {"page": 221, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Since the affected staff remained on the same terms of contract, the officers appointed to act in their positions receive extra pay implying double payment for the same position. As a consequence, the company has lost a total of UGX 2,319,017,267 in a seven months\u2019 period (May to November 2021). | Unnamed: 2 |\n|---:|:-------------|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:-------------|\n| 0 | Unnamed: 0 | (1,912 days) no section of the road was handed over and UNRA. \uf0b7 There were significant defects on the road works. I observed failure of road shoulders, lined drain and a speed hump at KM88+678. It was also observed that the contractor continued to construct line drains on steep slopes without scour checks. \uf0b7 I also observed poor quality works on some sections of the road construction. For example: poor visibility on the right-hand side of river Nguse bridge and also inadequate protection between the end of stone pitching and the stream at the bridge; noticeable bleeding at Km 52+511, failed line drain at Km71+200 RHS and damaged guard rail at km72+921 RHS; maintenance of the completed sections was poor with overgrown grass and silted drainages especially from Km 51 to Km 100, and; pedestrian walkways were not provided for in the design of Kagadi town roads which were under construction at time of the audit. \uf0b7 I noted lack of adherence to the insurance contract. The ICEA Workman\u2019s Compensation Policy No 110-A2506044-18 covering the period 18th January 2021 to 17th February 2022 indicated that the number of staff insured are 181 only with neither the names nor the number of staff under each category/designation indicated but the monthly progress reports, the PAYE and NSSF returns for the period under review indicated that the contractor has over 400 staff. Further, the contract required that the insurances are in the joint names of the parties that is; UNRA and the contractor. However, the UAP Old Mutual contractor\u2019s All Risk Policy No 0000461578 and the ICEA Motor Commercial Policy No. 080-A2-105193- 17 indicate that the insured was only the contractor. \uf0b7 Work Permits for all the foreign consultant\u2019s and contractor\u2019s staff were not provided for review. In the absence of the work permits for the foreign staff, the implication is that the expatriate staff are working irregularly in Uganda irregularly and this may lead to deportation, which will in turn affect the progress of work. | Unnamed: 2 |", "metadata": {"page": 222, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Since the affected staff remained on the same terms of contract, the officers appointed to act in their positions receive extra pay implying double payment for the same position. As a consequence, the company has lost a total of UGX 2,319,017,267 in a seven months\u2019 period (May to November 2021). | Unnamed: 2 |\n|---:|-------------:|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 13 | Road Sector Support Project 5 (Upgrading of Rukungiri- Kihihi-Ishasha/Kanungu and Bumbobi-Lwakhakha Roads (Uganda National Roads Authority). 2020. Opinion Unqualified | \uf0b7 I observed significant delays in Project implementation. During the FY 2019/20, Project disbursements from ADF amounted to UA 6,679,508.53. From the signed loan amount of UA 70,000,000, only UA 24,672,103.72 representing 35% of the signed loan amount had been cumulatively disbursed through direct payments for Project expenditures as at 30th June 2020. However, 91% of the original project implementation time had elapsed as at 30th June 2020. Civil works for the upgrade of Bumbobi-Lwakhakha 44.5km road had attained 84% physical progress as at 30th June 2020 versus time progress and planned physical progress of 91%. The financial progress stood at 83% against plan of 92% as at 30th June 2020. For the upgrade of Rukungiri-Kihihi-Ishasha/Kanungu (78.5km), 19.24% cumulative physical progress had been achieved as at 30th June 2020 although 33.4% was planned to be completed. \uf0b7 During the FY 2019/20, UGX 3,033,479,790 (28%) of GOU counterpart project funds were re-allocated to other Projects. Re-allocation of Project funds to other projects invalidates the approved plan for implementation of RSSP-V activities. \uf0b7 UGX 267,083,716 was paid as interest on delayed payments. Such costs are un-necessary and represent unbudgeted expenditures which affect funds ear-marked for implementation of planned Project activities. \uf0b7 UGX 226,500,820 had been paid to Government agencies (votes) including sub-counties and town councils during the FY 2019/20. These payments constitute revenue received for purpose of Government and |", "metadata": {"page": 222, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Since the affected staff remained on the same terms of contract, the officers appointed to act in their positions receive extra pay implying double payment for the same position. As a consequence, the company has lost a total of UGX 2,319,017,267 in a seven months\u2019 period (May to November 2021). | Unnamed: 2 |\n|---:|:-------------|:------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | should have been paid directly to the Uganda Consolidated Fund. \uf0b7 Financing charges were accumulating due to low utilization of the loan funds. Total charges of UGX 3,912,848,969 accrued on the disbursed and undisbursed loan balances during the FY 2019/2020. This is comprised of UGX 3,079,241,588 (79%) being charges on the undisbursed loan balances during the year and UGX 833,607,381 (21%) being charges on the disbursed loan amounts. | Unnamed: 2 |\n| 1 | 14 | Road Sector Support Project 5 (Upgrading of Rukungiri- Kihihi-Ishasha/Kanungu and Bumbobi-Lwakhakha Roads (Uganda National Roads Authority). 2021 Opinion Unqualified | \uf0b7 I observed significant delays in Project implementation. During the FY 2020/21, Project disbursements from ADF amounted to UA 10,235,407.97 resulting into cumulative disbursements of UA 34,907,511.69 (representing 49.9% of the signed amount of UA 70,000,000). Whereas the upgrading of Bumbobi-Lwakhakha (Lot2) 44.5km road had been substantially completed and the road was handed over to UNRA by the Contractor on 21st December 2020, the upgrading of Rukungiri-Kihihi- Ishasha/Kanungu (Lot1) 78.5km stretch had attained cumulative physical progress of only 42.6% completion rate against planned progress of 55.1% as at 30th June 2021. As at 30th June 2021, only 18 months (19.6%) time were left to the end of the extended Project implementation time of 31st December 2022. It is unlikely that UNRA will complete the 57.4% works outstanding (planned) for the upgrade of Rukungiri-Kihihi-Ishasha/Kanungu road in the agreed timelines. \uf0b7 During the FY 2019/20, UGX 3,822,002,388 (36%) of GOU counterpart project funds were re-allocated to other Projects. Re-allocation of Project funds to other projects invalidates the approved plan for implementation of RSSP-V activities. \uf0b7 UGX 150,255,638 was paid as interest on delayed payments. Such costs are un-necessary and represent unbudgeted expenditures which affect funds ear-marked for implementation of planned Project activities. \uf0b7 Financing charges were accumulating due to low utilization of the loan funds. UGX 3,770,851,261 was accrued on the disbursed and undisbursed loan balances with ADF during the FY 2020/2021. This is comprised of UGX 2,620,478,974 (69%) being charges on the undisbursed loan balances during the year and UGX 1,150,372,287 (31%) being charges on the disbursed loan amounts. For the last two financial years (FY 2019/20 and 2020/21), total charges of UGX 7,683,700,230 had accrued on the loan balances with ADF. This is comprised of UGX 5,699,720,562 (74%) being charges on the undisbursed loan balances and UGX 1,983,979,668 (26%) being charges on the disbursed loan balances. |", "metadata": {"page": 223, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Since the affected staff remained on the same terms of contract, the officers appointed to act in their positions receive extra pay implying double payment for the same position. As a consequence, the company has lost a total of UGX 2,319,017,267 in a seven months\u2019 period (May to November 2021). | Unnamed: 2 |\n|---:|-------------:|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 15 | Upgrading of Tirinyi-Pallisa- Kumi and Pallisa-Kamonkoli Road project (Uganda National Roads Authority). 2020 | \uf0b7 The Authority was made to pay interest as a result of delay to pay the contractor\u2019s approved interim payment certificates (IPCs). The contractor invoked clause 14.7 and 14.8 of GCC and charged interest of UGX 373,044,074.47 for IPCs 1-6. Another interest amount of UGX 166,845,192 was paid for IPCs 11,12,13,14. The total interest paid for the delayed settlement of the IPCs amounted to UGX 539,889,266. These interest payments could have been higher if the dollar amounts had not been negotiated downwards by USD 108,262.29 due to disagreements in computations. \uf0b7 During the FY 2019/20, UGX 892,920,000 of Project funds were re- allocated to other Projects. Re-allocation of Project funds to other projects overrides established budgeting procedures. \uf0b7 There were delays in recruitment of the Project consultant. In the period 15th March 2018 to 26th April 2021, there was no Project consultant procured to carry out supervisory roles for upgrading the Tirinyi-Kumi- |", "metadata": {"page": 223, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Since the affected staff remained on the same terms of contract, the officers appointed to act in their positions receive extra pay implying double payment for the same position. As a consequence, the company has lost a total of UGX 2,319,017,267 in a seven months\u2019 period (May to November 2021). | Unnamed: 2 |\n|---:|:-------------|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:-------------|\n| 0 | Unnamed: 0 | Pallisa-Kamonkoli Road Project. In this period, the Directorate of Roads and Bridges Development of UNRA stepped in to carry out design review and supervisory roles in addition to their other activities. Recruitment of the Consultant, AECO (Abuljebain Engineering Consulting Office) delayed until 15th March 2021 and they commenced work on 26th April 2021 four months when the project physical progress was already at 92.51% and in time progress was 37.3 months (103.6%) to completion. The Consultant\u2019s first report was in the month of May 2021. \uf0b7 I observed delays in payment of Project Affected Persons. As of 30th June 2021 payment of PAPs was still incomplete with a total of 156 PAPs not yet paid. Tirinyi Pallisa Kumi (Lot 1) had 100 PAPs for land measuring 80.06 acres while Pallisa Kamonkoli road (Lot 2) had 56 PAPs not paid for 27.318 acres of land (by May 2021) | Unnamed: 2 |", "metadata": {"page": 224, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Since the affected staff remained on the same terms of contract, the officers appointed to act in their positions receive extra pay implying double payment for the same position. As a consequence, the company has lost a total of UGX 2,319,017,267 in a seven months\u2019 period (May to November 2021). | Unnamed: 2 |\n|---:|-------------:|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 16 | Upgrading of Tirinyi-Pallisa- Kumi and Pallisa-Kamonkoli Road project (Uganda National Roads Authority). 2021 | \uf0b7 There were overpayments to the contractor in interim payment certificates numbers 25 and 26 amounting to UGX 8,613,048,720 (USD 2,556,164.89). These payments were meant for supervisors who had not been recruited. \uf0b7 During the FY 2020/21, UGX 4,083,247,683 of Project funds were re- allocated to other Projects. I did not see any revised schedule submitted to MoFPED for onward approval by Parliament. Re-allocation of Project funds to other projects overrides established budgeting procedures. \uf0b7 In 2019/20, I noted that Management incurred interest charges of UGX 539,889,266 in respect of 10 IPCs (1,2,3,4,5,6 and 11,12,13,14). However as of 30th June 2021, there were still 14 other interim payment certificates (Nos 7,8,9,10,16-23, and 25-26) whose payments were delayed making them eligible to interest charges. \uf0b7 There have been delays in project completion. Completion dates for project works were on 14th March 2021 for Lot 1 and 14th June 2021 for Lot 2 respectively. As of 30th June 2021, both Tirinyi-Pallisa-Kumi and Pallisa-Kamonkoli Road had not been completed as planned. Based on linear sections completed to final Asphalt surfacing, Lot 1 was 95.58% complete while Lot 2 was at 98.09%. \uf0b7 There was no documented plan for assets (housing units) built both in Lot 1 and Lot 2 currently used by the contractors and consultants as their accommodation after they have left. These units number approximately 28 permanent houses (2 type I houses, 6 type II houses 4 type IV houses) and multiple accommodations and engineer\u2019s offices that have been constructed in land owned by UNRA. \uf0b7 I noted delays in relocation of utilities to pave way for road works. Five sub-contractors were approved by UNRA to relocate electricity, water lines and boreholes in Pallisa, Kumi, Mukongoro and Tirinyi towns at a total cost of UGX 1,517,595,734. As of 30th June 2021, work valued at UGX 1,260,024,061 had been certified and paid. The remaining works valued at UGX 257,571,673 were not yet completed. \uf0b7 There were disagreements between the consultant and the contractor on tests of completion on sections already handed over to the employer before certification. The disagreements are likely to cost Government interest charges if not timely resolved. |", "metadata": {"page": 224, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Since the affected staff remained on the same terms of contract, the officers appointed to act in their positions receive extra pay implying double payment for the same position. As a consequence, the company has lost a total of UGX 2,319,017,267 in a seven months\u2019 period (May to November 2021). | Unnamed: 2 |\n|---:|-------------:|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 17 | North Eastern Road- Corridor Asset Management Project (Uganda National Roads Authority) 2020/21 | \uf0b7 The Project did not have an annual work plan and budget prepared for implementation of its activities. Also, quantification of Project outputs was not done for the financial year audited. \uf0b7 I observed delays in Project implementation. From the signed loan |", "metadata": {"page": 224, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Since the affected staff remained on the same terms of contract, the officers appointed to act in their positions receive extra pay implying double payment for the same position. As a consequence, the company has lost a total of UGX 2,319,017,267 in a seven months\u2019 period (May to November 2021). | Unnamed: 2 |\n|---:|:-------------|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:-------------|\n| 0 | Unnamed: 0 | amount of XDR 157,600,000 (Equivalent to USD 243,800,000), only XDR 22,916,350.66 (USD 32,780,000) representing 14.5% of the signed loan amount had been cumulatively disbursed for implementation of the project activities as at 30th June 2021. It should be noted that 65% of the project implementation time had elapsed as at 30th June 2021. Implementation of civil works (road rehabilitation, improvement and routine maintenance works) under component 1 had hardly progressed. \uf0b7 There was under absorption of released project funds. Total IDA funds available during the year were USD 8,090,898.12 (being opening fund balance of USD 4,920,898.12 and additional disbursements of USD 3,170,000 on 23rd October 2020). However, only, USD 4,457,669.32 was spent on implementation of project activities representing funds absorption level of 55%. \uf0b7 Out of the GoU counterpart funds of UGX 3,034,260,000 released in the FY 2020/21, only UGX 765,831,419 (25%) was spent on implementation of the Project activities. The balance of UGX 2,268,428,581 (75%) was reallocated to other projects. Management did not avail the authorization used as basis to reallocate the funds to other projects. \uf0b7 There has been accumulation of higher financing charges due to the low utilization of the signed loan. Charges of UGX 4,703,471,276 (being service charges and commitment charges of UGX 840,691,467 and UGX 3,862,779,809 respectively) were accrued during the FY 2020/21. Cumulatively, total charges of UGX 27,201,439,219 (being service charges and commitment charges of UGX 2,734,784,077 and UGX 24,466,655,142 respectively) have been accrued since loan signature on 16th February 2015. | Unnamed: 2 |", "metadata": {"page": 225, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Since the affected staff remained on the same terms of contract, the officers appointed to act in their positions receive extra pay implying double payment for the same position. As a consequence, the company has lost a total of UGX 2,319,017,267 in a seven months\u2019 period (May to November 2021). | Unnamed: 2 |\n|---:|:-------------|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 18.0 | Masaka-Bukakata Road project (2021) (Uganda National Roads Authority) 2020/21 | \uf0b7 Project funds to the tune of UGX 262,339,751 were reallocated from the activities on which they were budgeted and spent on other activities without seeking and obtaining the necessary approvals. \uf0b7 I observed delayed payment of Interim Payment certificates (IPCs). IPCs 9, 12, 13, 14, 15, 17 and 18 were delayed beyond the agreed contract timelines. Delays in payment could result in nugatory expenditures in form of the interest charged by the contractor. \uf0b7 The contractor submitted an interest certificate in June 2021 amounting to UGX 523,120,000 in respect of interest on delayed payments of IPCs no. 1 to 9. The delayed payment of the IPCs led to wasteful expenditure of UGX523,120,000 in interest to the contractor. \uf0b7 In my previous year report, I noted that out of 1,282 PAPs compensated with land approx. 341.7162 Acres, none of the titles had been transferred to Government, that is; neither to the names of Uganda National Roads Authority nor to Uganda Land Commission. I observed that this key factor to land ownership had not been addressed during the year. |\n| 1 | | LANDS SECTOR | |\n| 2 | 1.0 | National Physical Planning Board 2020/21 Opinion Unqualified | \uf0b7 Out of the budgeted revenue of UGX.6.0 Bn, UGX.5.29 Bn was realised, resulting in a shortfall of UGX 0.710 Bn, which is 12% of the budget, Out of the total receipts for the financial year of UGX 5.29, Bn, UGX 2.945 Bn was spent representing an absorption level of 56%. \uf0b7 I noted that three (03) outputs with a total of three (03) activities and planned expenditure of UGX 0.760 were fully quantified. One (01) output with five (05) activities was insufficiently quantified while (04) outputs with a total of four (04) activities whose expenditure was not established, |", "metadata": {"page": 225, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Since the affected staff remained on the same terms of contract, the officers appointed to act in their positions receive extra pay implying double payment for the same position. As a consequence, the company has lost a total of UGX 2,319,017,267 in a seven months\u2019 period (May to November 2021). | Unnamed: 2 |\n|---:|:-------------|:------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:-------------|\n| 0 | Unnamed: 0 | were not quantified at all. \uf0b7 One (01) output with one (01) activity and expenditure worth UGX 0.452 Bn was fully implemented., two (2) outputs with two (02) activities worth UGX.0.308 Bn were not implemented. \uf0b7 I noted that out of the approved staff structure of thirty five (35) positions, no position was substantively filled. The Board had only three (3) staff on secondment and twenty six (26) on assignment of duties. \uf0b7 | Unnamed: 2 |", "metadata": {"page": 226, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Since the affected staff remained on the same terms of contract, the officers appointed to act in their positions receive extra pay implying double payment for the same position. As a consequence, the company has lost a total of UGX 2,319,017,267 in a seven months\u2019 period (May to November 2021). | Unnamed: 2 |\n|---:|-------------:|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 2 | Ministry of Lands, Housing and Urban Development 2020/21 Opinion Unqualified | \uf0b7 Out of the budgeted NTR of UGX.5.500Bn for the financial year 2019/2020 only UGX.5.480Bn was realized, representing a performance of 99.6 % above the target. \uf0b7 The Ministry budgeted for UGX.74.32Bn in Government receipts, out of which UGX.71.13Bn was warranted, resulting in a shortfall of UGX.3.19Bn which is 4.29% of the budget. \uf0b7 Out of the total receipts of UGX.71.12Bn, UGX.69.13Bn was spent resulting into an unspent balance of UGX.1.99Bn representing an absorption level of 97.2%. The balance unspent was subsequently swept back to the consolidated fund at the end of the financial year. \uf0b7 I sampled 34 outputs with a total of 175 activities and expenditure of UGX 57.908Bn and noted that 15 outputs with a total of 67 activities and expenditure of UGX.12.45Bn were fully quantified. Fifteen (15) outputs with a total of 92 activities and expenditure worth UGX.42.35Bn were insufficiently quantified. Four (4) outputs with a total of 16 activities and expenditure worth UGX.3.11Bn were not quantified. \uf0b7 I assessed the implementation of 15 fully quantified outputs with a sample of 67 activities worth UGX.12.45Bn and noted that three (3) outputs with a total of three (3) activities worth UGX.0.456 Bn were fully implemented. Twelve (12) outputs with a total of sixty-four (64) activities worth UGX.11.99Bn were partially implemented. \uf0b7 I noted that the Ministry\u2019s Payables amount increased by UGX.105,145,022,390 from UGX.144,329,975,873 in the previous year to UGX.249,474,998,263 in the current year. In addition, UGX.11,593,918,200 of the new compensations related to private persons that had been included among the ranchers to be compensated, but lacked ranch title number, area of land lost and other details recorded in the domestic arrears schedule. \uf0b7 I noted a recognized NTR amount of UGX.1.7billion relating to proceeds from the sale of government pool housed had no proper documentation. \uf0b7 I noted that Parliament approved a payment of UGX.3,802,500,000, as compensation for Ndeeba Land but the payment was halted by an interim court order. \uf0b7 I noted that the Ministry compensated the claimant of land at Block 237 plots 29,48,56,59 and 67 at Mutungo for a sum of UGX.26.4 Bn which had earlier been purchased by Uganda Land Commission which partly paid UGX 2.4Bn. The two entities have not agreed on the ownership of the land. |", "metadata": {"page": 226, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Since the affected staff remained on the same terms of contract, the officers appointed to act in their positions receive extra pay implying double payment for the same position. As a consequence, the company has lost a total of UGX 2,319,017,267 in a seven months\u2019 period (May to November 2021). | Unnamed: 2 |\n|---:|-------------:|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 3 | Uganda Support to Municipal Infrastructure Development, Additional Financing (USMID-AF/II) | \uf0b7 To-date, the program has made available USD 140,331,745 (UGX.514,740,787,823), out of which only USD.44,938,686 (UGX.477,249,316,165) had been made available to the LGs, leading to a |", "metadata": {"page": 226, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Project. 2020/21 Opinion Unqualified | funds availability to LG level of 32%. \uf0b7 Out of the budgeted disbursements/receipts of UGX.454,866,200,300 in the financial year, only UGX.301,529,104,089 (66.3%) was available to the project, leading to a shortfall of UGX. 153,337,096,211(33.7%). \uf0b7 Out of a sum of UGX.301.5 Bn available for project utilization in the year, UGX.107,162,555,328 was spent, resulting into an absorption level of only 64.5%. The low rate of absorption of funds may result into delayed attainment of project objectives. \uf0b7 I noted that UGX 331,131,497,751 was being held by the treasury for programme activities. This was an increase of held funds, as UGX.154,842,679,584 was held last year. This arose from inadequate funds utilisation by the LGs. |\n|---:|-------------:|:------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 4 | Albertine Region Sustainable Development Project (ARSDP) \u2013 MoLHUD 2020/21 Opinion Unqualified | \uf0b7 Out of the budgeted IDA disbursement of UGX.19,514,012,776 for the year 2020/2021, only UGX.10,094,659,078 (52%) was realized leading to a shortfall of UGX.9,419,353,698 (48%). Revenue shortfall limits the implementation of planned activities which could affect the achievement of the project objectives. \uf0b7 Review of the Q4 Progress report revealed that many sub-projects worth USD 27.5million handed over to the Ministry of Lands, Housing and Urban Development for construction, will not be implemented due to lack of funding, yet, costs have already been incurred since all the sub- projects have been designed and Environment and Social Impact Assessment done. \uf0b7 The civil works for construction of three markets, namely: Biiso Market in Buliisa District, Kabaale Market in Hoima District and Buhuka Market in Kikuube District costed at UGX.9,963,228,048 were not complete despite the extension of the completion date to 31st August 2021, thus delaying service delivery to citizens. |\n| 1 | 5 | Competitiveness and Enterprise Development Project (CEDP) Component 1- Land Administration (IDA CREDIT AGREEMENT CR 52690-UG) PROJECT ID P130471. 2020/21 Opinion Unqualified | \uf0b7 It was noted that out of the UGX.12.73Bn budget allocated for the project activities during the fiscal year 2020/2021, UGX.11.86 Bn (93%) was spent, leaving a balance of UGX.0.87Bn. \uf0b7 I noted that one plot of land has multiple titles while others are plotted in the middle of the road and wetlands. Such inaccurate/wrong sketches captured on the Uganda National Lands Information System (UGNLIS) may lead to land wrangles, and Government may face challenges from title holders with land titles in roads and wetlands. |\n| 2 | 6 | Uganda Land Commission. 2020/21 Opinion Qualified | \uf0b7 Out of the approved budget of UGX. 71,868,574,709, only UGX. 65,793,286,529was warranted/released resulting into a budget shortfall of UGX.6,075,288,180 representing 91.5%. \uf0b7 Out of the total warrants of UGX.65.79Bn received during the financial year. UGX.64.94Bn was spent by the entity resulting in an unspent balance of UGX.0.85Bn representing an absorption level of 98.71%. \uf0b7 Out of the twenty-one (21) outputs with a total of sixty-one (61) activities and expenditure of UGX.64.86Bn sampled, Two (2) outputs with a total of Six (6) activities and expenditure worth UGX.0.71Bn were fully quantified, Eight (8) outputs with a total of thirty (30) activities and expenditure worth UGX.32.35Bn, was insufficiently quantified. Eleven (11) outputs with a total of twenty-five (25) activities and expenditure worth UGX |", "metadata": {"page": 227, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Project. 2020/21 Opinion Unqualified | funds availability to LG level of 32%. \uf0b7 Out of the budgeted disbursements/receipts of UGX.454,866,200,300 in the financial year, only UGX.301,529,104,089 (66.3%) was available to the project, leading to a shortfall of UGX. 153,337,096,211(33.7%). \uf0b7 Out of a sum of UGX.301.5 Bn available for project utilization in the year, UGX.107,162,555,328 was spent, resulting into an absorption level of only 64.5%. The low rate of absorption of funds may result into delayed attainment of project objectives. \uf0b7 I noted that UGX 331,131,497,751 was being held by the treasury for programme activities. This was an increase of held funds, as UGX.154,842,679,584 was held last year. This arose from inadequate funds utilisation by the LGs. |\n|---:|:-------------|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | 31.8Bn were not quantified at all. \uf0b7 Out of the two (2) fully quantified outputs, Two (2) outputs with six (6) activities worth UGX.0.71Bn were partially implemented. Out of the six (6) activities, the entity fully implemented one (1) activity; Four (4) activities were partially implemented, while one (1) activity remained unimplemented. \uf0b7 The balances for; payables of UGX 169,490,014,824 , Non-produced assets of UGX 212,279,181,177, and that of revenue receivables of UGX 24,760,000 as at 30th June, 2021, Could not be confirmed due to absence of adequate supporting documentation and reliable data by the commission. \uf0b7 A sum of UGX.1,237,717,474 was paid for outstanding arrears that related to the prior year, but were not recognized in the prior year financial statements as payables. In addition, withholding tax of UGX.22,020,000 was not deducted and paid to URA. \uf0b7 I noted that the court garnished the Commission\u2019s bank Account with a balance of UGX.244,184,480 leading to the delay to clear the outstanding obligations to third parties. \uf0b7 It was noted that the entity obtained a supplementary of UGX 10.62Bn was received by the entity but was not requisitioned by management. There were unsupported payments of domestic arrears amounting to UGX 14.4 Bn. Payments worth UGX 6.7Bn were paid to unverified arrears. \uf0b7 In addition, payables to Church of Uganda amounting to UGX 15Bn, and Receivables amounting to UGX 3.966 Bn relating to the overpayment to Kampala archdiocese in the prior year were not recognised. In addition, outstanding arrears of UGX 1.2Bn related to prior year but paid during the year have not been recognised in the current year. \uf0b7 The Commission does not have a land inventory and database for all government land and properties under its jurisdiction that are either occupied by tenants, vacant, acquired under compensation (but not yet re-distributed to the bona fide occupants), or acquired and owned by other government institutions and missions abroad. As such tracking of lease payments and revenue arrears related to ground rent and premium could not be supported. | Unnamed: 2 |\n| 1 | | ACCOUNTABILITY SECTOR | \uf0b7 |", "metadata": {"page": 228, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Project. 2020/21 Opinion Unqualified | funds availability to LG level of 32%. \uf0b7 Out of the budgeted disbursements/receipts of UGX.454,866,200,300 in the financial year, only UGX.301,529,104,089 (66.3%) was available to the project, leading to a shortfall of UGX. 153,337,096,211(33.7%). \uf0b7 Out of a sum of UGX.301.5 Bn available for project utilization in the year, UGX.107,162,555,328 was spent, resulting into an absorption level of only 64.5%. The low rate of absorption of funds may result into delayed attainment of project objectives. \uf0b7 I noted that UGX 331,131,497,751 was being held by the treasury for programme activities. This was an increase of held funds, as UGX.154,842,679,584 was held last year. This arose from inadequate funds utilisation by the LGs. |\n|---:|-------------:|:--------------------------------------------------------------------------------------|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 1 | Uganda Communication Employees Contributory Pension Scheme. 2019/20 Opinion Qualified | \uf0b7 Reported in the Statement of Net Assets Available for Benefits are payables and accruals of UGX.2,679,752,000, of which UGX.2,022,412,000 and UGX.442,330,000 are administrative and actuarial fees respectively. However, these were not adequately supported to confirm existence. \uf0b7 Eleven (11) properties disclosed as part of the non-core assets were still not valued and therefore not included in the value of Non-current assets of the Scheme. \uf0b7 A review and comparison made between the audited financial statements for the period ending 30th June, 2019 and the financial statements for the period ending 30th June, 2020 revealed inconsistencies in the account balances of reserves. \uf0b7 Receivables were not supported with any documentation and schedule to confirm the amounts and authenticity. \uf0b7 The reported cash and cash equivalents is misstated. |", "metadata": {"page": 228, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Project. 2020/21 Opinion Unqualified | funds availability to LG level of 32%. \uf0b7 Out of the budgeted disbursements/receipts of UGX.454,866,200,300 in the financial year, only UGX.301,529,104,089 (66.3%) was available to the project, leading to a shortfall of UGX. 153,337,096,211(33.7%). \uf0b7 Out of a sum of UGX.301.5 Bn available for project utilization in the year, UGX.107,162,555,328 was spent, resulting into an absorption level of only 64.5%. The low rate of absorption of funds may result into delayed attainment of project objectives. \uf0b7 I noted that UGX 331,131,497,751 was being held by the treasury for programme activities. This was an increase of held funds, as UGX.154,842,679,584 was held last year. This arose from inadequate funds utilisation by the LGs. |\n|---:|:-------------|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | \uf0b7 The Scheme recognized a retrenchment penalty worth UGX.11,320,160,000 as a receivable from UTL yet this amount had been written off. \uf0b7 I noted that out of the budgeted revenue of UGX.12,447,003,444 for the year 2019/2020, only UGX.2,264,969,444 was realised representing a performance of only 18.2% of the target. \uf0b7 I established that funds totaling to UGX.88,575,000 were never budgeted for, and no authority was sought from the Founder to use the current year\u2019s appropriated funds to meet this expenditure. \uf0b7 Diversion of members\u2019 contribution (DC) to pay defined benefits (DB) liabilities: UGX.4,550,343,000. \uf0b7 I noted that, whereas PAYE to a tune of UGX.35,427,298 was withheld from employees as required during the year, it was not remitted to URA in the timelines prescribed by the Income Tax Act. | Unnamed: 2 |\n| 1 | 2 | Uganda Bureau of Statistics (UBOS). 2020/21 Opinion Unqualified | \uf0b7 I noted a number of issues in the implementation of the approved budget such: under absorption of funds; partial or non-implementation of activities, non-quantification of activities, under performance of the NTR and government releases. \uf0b7 There was delayed Implementation of a number of Projects such as: UNFPA-Survey Project, Baseline Education Survey Project (WB-GPE- UTSEP) and UBOS Panel-Survey project majorly caused by effects of Covid-19 pandemic. \uf0b7 Out of the total approved structure of 316 staff, only 283 (90%) positions were filled, leaving 33 (10.4%) positions vacant. Staffing gaps affect the entity\u2019s capacity to effectively deliver services. \uf0b7 the entity lacked land titles for its land both in Entebbe and at head office, although management demonstrated its efforts in engaging Uganda Land Commission to secure land titles. \uf0b7 Several procurements to the tune of UGX.1.834Bn were not executed as of 30th June 2021. This was attributed to unforeseen circumstances brought about by the lock-down associated with the Covid-19 pandemic as well as budget cuts. |", "metadata": {"page": 229, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Project. 2020/21 Opinion Unqualified | funds availability to LG level of 32%. \uf0b7 Out of the budgeted disbursements/receipts of UGX.454,866,200,300 in the financial year, only UGX.301,529,104,089 (66.3%) was available to the project, leading to a shortfall of UGX. 153,337,096,211(33.7%). \uf0b7 Out of a sum of UGX.301.5 Bn available for project utilization in the year, UGX.107,162,555,328 was spent, resulting into an absorption level of only 64.5%. The low rate of absorption of funds may result into delayed attainment of project objectives. \uf0b7 I noted that UGX 331,131,497,751 was being held by the treasury for programme activities. This was an increase of held funds, as UGX.154,842,679,584 was held last year. This arose from inadequate funds utilisation by the LGs. |\n|---:|-------------:|:------------------------------------------|:------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 3 | URA Corporate 2020/21 Opinion Unqualified | \uf0b7 URA operated at least six operations bank accounts in commercial banks with an annual turnover of over UGX.1.1 Tn, in contravention of Section 33 (5), (6) and (7) of the Public Finance Management Act 2015. The action overrides the Government financial management controls and distorts the monetary policy. \uf0b7 UGX.9.6Bn was advanced to staff through their bank accounts to purchase goods, services, and other activities without following regulations. The practice is irregular and also exposes Government funds to a risk loss through misuse. \uf0b7 UGX.1.16Bn paid through mobile money to various suppliers for the provision of services were not adequately supported with accountability documents as required; as a result, I could not ascertain whether the funds were utilised correctly for the intended activities. \uf0b7 Management made cash withdrawals amounting to UGX.5.2Bn during the year, contrary to Section 11 of PFMA 2015, as well as Section 7 of the URA Cash Policy that sets the maximum insurable cash limit to UGX.20Mn. The practice has been recurring and exposes government funds to a risk of misuse of cash and loss. |", "metadata": {"page": 229, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Project. 2020/21 Opinion Unqualified | funds availability to LG level of 32%. \uf0b7 Out of the budgeted disbursements/receipts of UGX.454,866,200,300 in the financial year, only UGX.301,529,104,089 (66.3%) was available to the project, leading to a shortfall of UGX. 153,337,096,211(33.7%). \uf0b7 Out of a sum of UGX.301.5 Bn available for project utilization in the year, UGX.107,162,555,328 was spent, resulting into an absorption level of only 64.5%. The low rate of absorption of funds may result into delayed attainment of project objectives. \uf0b7 I noted that UGX 331,131,497,751 was being held by the treasury for programme activities. This was an increase of held funds, as UGX.154,842,679,584 was held last year. This arose from inadequate funds utilisation by the LGs. |\n|---:|:-------------|:------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | \uf0b7 The Authority awarded multi-year contracts to the tune of UGX.18.7Bn without evidence of approval of these multi-year commitments by the Parliament. This was contrary to Section 23(1) of the PFMA 2015. \uf0b7 Planned procurements worth UGX.25.1Bn were not implemented by 30th June 2021. This adversely affects the realisation of critical government programs. Management explained that the delays were due to various reasons, some of which are beyond their control. \uf0b7 During the financial year 2020/21, the collaborating institutions under the Tax Registration and Expansion Programme (TREP) registered only 167,211 taxpayers against a target of 436,869 taxpayers representing a 38.27% registration success and a shortfall of 61.7%. In revenue terms, although TREP had a revenue target of UGX.124.58 Bn in FY 2020/21, it had only collected UGX.49.93Bn by 30th June 2021, representing a 40% performance rate. The paltry performance was attributed to COVID-19 effects, riots and the political environment, that hindered field activities. \uf0b7 The Ministry of Local Government had planned to implement activities worth UGX.4.4Bn under TREP activities but only implemented activities worth UGX.3.3Bn, leaving un-implemented activities worth UGX.1.1Bn despite receiving all funding. As a result, the e-LogRev objective of simplifying and strengthening the local revenue collection systems for Local Governments may not be achieved in time. | Unnamed: 2 |", "metadata": {"page": 230, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Project. 2020/21 Opinion Unqualified | funds availability to LG level of 32%. \uf0b7 Out of the budgeted disbursements/receipts of UGX.454,866,200,300 in the financial year, only UGX.301,529,104,089 (66.3%) was available to the project, leading to a shortfall of UGX. 153,337,096,211(33.7%). \uf0b7 Out of a sum of UGX.301.5 Bn available for project utilization in the year, UGX.107,162,555,328 was spent, resulting into an absorption level of only 64.5%. The low rate of absorption of funds may result into delayed attainment of project objectives. \uf0b7 I noted that UGX 331,131,497,751 was being held by the treasury for programme activities. This was an increase of held funds, as UGX.154,842,679,584 was held last year. This arose from inadequate funds utilisation by the LGs. |\n|---:|-------------:|:-----------------------------------------------------------|:-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 4 | URA Revenue Collection Account 2020/21 Opinion Unqualified | \uf0b7 The Authority had a total revenue collection target of UGX.22.039Tn for the financial year 2020/21, and collected total gross revenue of UGX.19.649Tn, representing 89% hence a shortfall of UGX.2.39Tn (11%). Under collection of revenue affects cash flow performance of Government and realisation of the planned service delivery targets. Management attributed the performance to the adverse impact of COVID- 19 pandemic. \uf0b7 I reviewed the statement of comparison of target and actual revenue collection by the tax head and noted that revenues from different sources worth UGX.86.979Bn were not budgeted for, despite collecting significant incomes on these tax heads for the past two years leading to under- budgeting. Lack of budget provisions of the tax heads conceals revenue potential, distorts revenue projections and may lead to un-appropriate performance assessments and related bonuses. \uf0b7 Uganda Tax/GDP ratio remained low at 12.5% in 2020/21, compared to other countries in the region and globally. This performance was similar to last year's performance. This implies that tax bases have not widened or deepened enough to tax all potential sources. \uf0b7 There was an increase in total Tax Arrears from UGX.3.009Tn in 2019/20 to UGX.4.519Tn in the financial year 2020/21 representing a total increase of UGX.1.492Tn or percentage increase in total Tax Arrears of 50%. The Increase denies Government the required resources to deliver more services. \uf0b7 The contract between the Government of Uganda (GoU) and a private company had since expired even though the Company had continued to manufacture motor vehicle registration numbers for taxpayers. Expired contracts expose the Government to the risk of loss of revenue without a remedy. \uf0b7 I noted that government had continued to engage only two private companies, making them monopolies in providing motor vehicle registration number plates for more than eight (8) years without opening it up for competition. The Monopoly exposes the taxpayer to high prices |", "metadata": {"page": 230, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Project. 2020/21 Opinion Unqualified | funds availability to LG level of 32%. \uf0b7 Out of the budgeted disbursements/receipts of UGX.454,866,200,300 in the financial year, only UGX.301,529,104,089 (66.3%) was available to the project, leading to a shortfall of UGX. 153,337,096,211(33.7%). \uf0b7 Out of a sum of UGX.301.5 Bn available for project utilization in the year, UGX.107,162,555,328 was spent, resulting into an absorption level of only 64.5%. The low rate of absorption of funds may result into delayed attainment of project objectives. \uf0b7 I noted that UGX 331,131,497,751 was being held by the treasury for programme activities. This was an increase of held funds, as UGX.154,842,679,584 was held last year. This arose from inadequate funds utilisation by the LGs. |\n|---:|:-------------|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | for the services. \uf0b7 URA received a sum of UGX.279.509Bn through Bank of Uganda from Government Ministries, Departments and Agencies and Local Governments. The amount was not reconciled and receipted due to the inability to identify the tax head and the lack of IFMS and BoU Systems interface with URA systems. Collection of Revenue without receipting and charging the correct tax heads results into misstatement of revenue collected per tax head. | Unnamed: 2 |\n| 1 | 5 | Uganda Retirement Benefits Regulatory Authority. 2020/21 Opinion Unqualified | \uf0b7 The entity budgeted to receive UGX.12.35Bn in the FY 2021/21. However, only UGX.11.25Bn was available for spending resulting into a shortfall of UGX.1.1Bn, which is 9% of the budget; this affected implementation of planned activities. \uf0b7 Assessment of implementation of planned outputs revealed that Nine (9) outputs with a total of forty (40) activities worth UGX.2.89Bn were partially implemented. Out of the forty (40) activities, the entity implemented twenty-eight (28) activities (70%), while twelve (12) activities (30%) remained unimplemented. In addition, planned procurements totaling UGX.309Mn were also not implemented. \uf0b7 Out of the approved staffing level of 61, the Authority has only 36 positions filled (59%), leaving a staffing gap of 25 positions (41%). Included in the unfilled positions are key positions of Director Finance and Accounting, Director Human Resource and Administration and the Director Research and Strategy. This affects the entity\u2019s capacity to effectively deliver its mandate. |\n| 2 | 6 | Bank of Uganda 2020 Opinion Unqualified | \uf0b7 Uncertainties brought by Covid-19 could potentially led to delays by Government to refund/repay amounts due to the Bank. \uf0b7 Audit noted that the Government capital account included in the loans, advances and drawdowns to Government increased by UGX 1,087,811 million representing 313% from UGX 347,475 million as at 30 June 2019 to UGX 1,435,286 million as at 30 June 2020. \uf0b7 The assessment of the possible outcome of the appeal (Crane Bank - Civil Appeal No. 252 of 201) and the amount of any resulting potential obligations, if any, involves significant judgement by the directors. \uf0b7 I noted that, as at June 30, 2020, the core capital of the Bank was below the minimum required capital by UGX.453,331 million (2019: UGX.671,712 million) |", "metadata": {"page": 231, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Project. 2020/21 Opinion Unqualified | funds availability to LG level of 32%. \uf0b7 Out of the budgeted disbursements/receipts of UGX.454,866,200,300 in the financial year, only UGX.301,529,104,089 (66.3%) was available to the project, leading to a shortfall of UGX. 153,337,096,211(33.7%). \uf0b7 Out of a sum of UGX.301.5 Bn available for project utilization in the year, UGX.107,162,555,328 was spent, resulting into an absorption level of only 64.5%. The low rate of absorption of funds may result into delayed attainment of project objectives. \uf0b7 I noted that UGX 331,131,497,751 was being held by the treasury for programme activities. This was an increase of held funds, as UGX.154,842,679,584 was held last year. This arose from inadequate funds utilisation by the LGs. |\n|---:|-------------:|:------------------------------------------------------|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 7 | Housing Finance Bank Limited 2020 Opinion Unqualified | \uf0b7 I noted that Management has estimated impairment provisions for loans and advances to customers collectively for homogenous loan portfolios using statistical methods on the basis of risk parameters using historical data taking into account forward looking information on expected macroeconomic conditions including considerations made for possible effects from the COVID-19 pandemic. \uf0b7 As at 31 December 2020, a total of 1184 customers with loans worth UGX. 159.8 billion had applied and been granted loan restructures of different forms. However, as at 31 December 2020, only 331 customers with loans worth UGX. 58.0 billion were still under repayment moratoriums with the rest having reverted to periodic repayments schedules following the initial restructures. \uf0b7 The COVID-19 pandemic containment measures increased economic uncertainty amongst the borrowers, prompting many to prematurely repay their loans during and after the lockdowns. These redemptions |", "metadata": {"page": 231, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Project. 2020/21 Opinion Unqualified | funds availability to LG level of 32%. \uf0b7 Out of the budgeted disbursements/receipts of UGX.454,866,200,300 in the financial year, only UGX.301,529,104,089 (66.3%) was available to the project, leading to a shortfall of UGX. 153,337,096,211(33.7%). \uf0b7 Out of a sum of UGX.301.5 Bn available for project utilization in the year, UGX.107,162,555,328 was spent, resulting into an absorption level of only 64.5%. The low rate of absorption of funds may result into delayed attainment of project objectives. \uf0b7 I noted that UGX 331,131,497,751 was being held by the treasury for programme activities. This was an increase of held funds, as UGX.154,842,679,584 was held last year. This arose from inadequate funds utilisation by the LGs. |\n|---:|:-------------|:-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | involving as many as 901 customers affected the growth rate of the loan book by over UGX. 37.0 billion. \uf0b7 I noted that there was a disruption in the periodic repayments by the Bank\u2019s borrowing customers at the peak of the pandemic containment measures. | Unnamed: 2 |\n| 1 | 8 | Post Bank Uganda Limited. 2020 Opinion Unqualified | \uf0b7 COVID-19 effects and corresponding bank measures impacted PBU loan portfolio in different ways including reduction in cash flows from loan repayments as a result of granting moratoriums, increase in customers demanding for Interest rate reduction, shrink in credit demand for some sectors and drop in disbursements due to cautious lending coupled with increase in default rates for some sectors. |\n| 2 | 9 | Contigencies\u2019 Fund. 2020/21 Opinion Unqualified | \uf0b7 Section 26(i) of the PFMA 2015 (as amended) provides that a Contingencies Fund shall every financial year be replenished with an amount equivalent to 0.5% of the appropriated annual budget of Government of the previous financial year. The approved budget for the previous financial year (FY2019/20) was UGX.40.49Trillion, which would have translated into UGX.202.43Bn funding for the Contingencies\u2019 Fund in the year under review. I noted however, that Parliament only appropriated UGX.62Bn to the Contingencies fund, causing a deficit of UGX.140.3Bn. Underfunding of the Contingencies Fund distorts implementation of the approved budget for the current year as evidenced by budget cuts and reallocations to fund supplementary budgets relating to natural disasters and emergencies that occurred during the year. \uf0b7 Audit of the withdrawals made off the Contingencies Fund revealed that a total of UGX.62,070,000,000 was transferred to the Fund bank account held at Bank of Uganda. The funds were consequently transferred to entity bank accounts and expensed off the IFMS, which makes it difficult to follow up and track to confirm the adherence to the approved budget guidelines and also confirm accuracy of the reports generated. Spending off the IFMS also exposes the funds to the risk of misuse due to lack of transparency. |", "metadata": {"page": 232, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Project. 2020/21 Opinion Unqualified | funds availability to LG level of 32%. \uf0b7 Out of the budgeted disbursements/receipts of UGX.454,866,200,300 in the financial year, only UGX.301,529,104,089 (66.3%) was available to the project, leading to a shortfall of UGX. 153,337,096,211(33.7%). \uf0b7 Out of a sum of UGX.301.5 Bn available for project utilization in the year, UGX.107,162,555,328 was spent, resulting into an absorption level of only 64.5%. The low rate of absorption of funds may result into delayed attainment of project objectives. \uf0b7 I noted that UGX 331,131,497,751 was being held by the treasury for programme activities. This was an increase of held funds, as UGX.154,842,679,584 was held last year. This arose from inadequate funds utilisation by the LGs. |\n|---:|-------------:|:--------------------------------------------------------------|:-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 10 | Financial Intelligence Authority. 2020/21 Opinion Unqualified | \uf0b7 The Financial Intelligence Authority lacked an approved strategic plan aligned to the NDP III. Under the circumstances, there is a risk that activities implemented during the financial year 2020/2021 were not aligned to the NDP-III, which negatively affects the achievement of NDP- III objectives. I advised the Accounting Officer to follow up on the approval of the strategic plan urgently. \uf0b7 A review of the staffing structure for FIA revealed that out of the total approved establishment of 64 staff, only 41 (64%) positions were filled, and 23 (36%) positions had not yet been filled. Key among the unfilled positions include; Director Legal, Inspection and Compliance; Director Audit, Director Finance & Administration, among others. Staffing gaps have a negative effect on the general performance of the Authority and hinder effective and efficient service delivery. I advised management to intensify their efforts with the relevant stakeholders to ensure that the gaps are filled so as to deliver effective services. \uf0b7 A review of the Anti-Money Laundering Act (AMLA) 2017 (as amended) and its accompanying regulations revealed that the Authority does not have in place pecuniary sanctions in case of breach of the law and regulations. The lack of sanctions makes it difficult for the Authority to enforce compliance with the Act by all accountable persons. I advised management to follow up with the responsible Minister so that these regulations are passed to enforce accountability. |", "metadata": {"page": 232, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 11 | Insurance Training College (ITC). 2020/21 Opinion Unqualified | \uf0b7 Section 63 of the Insurance Act requires the Insurance Training levy to be reconciled with Insurers within 60 days after the end of the calendar year. I however noted that a total of UGX.4.9Bn was collected based on basis of computed returns submitted by the Insurers and Health Member Organisations (HMO\u2019s), with no evidence of reconciliation of Training Levy returns, contrary to requirements under the Act. As a result, the returns may be understated to reduce remittances, which may lead to revenue loss. |\n|---:|-----:|:----------------------------------------------------------------|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 12 | National Population Council. Opinion Unqualified | \uf0b7 Out of the ten (10) sampled outputs that NPC planned to implement during the period under review, five (5) outputs representing 50% of the planned sampled outputs were fully implemented, four (4) Outputs representing 40% were partially implemented, and one (1) Output representing 10% was not implemented during the period under review. \uf0b7 Gratuity payments totalling UGX.940Mn were not subjected to PAYE and the 5% NSSF employee deductions. I further noted that NPC did not provide for the 10% employer contribution for the staff resulting from the gratuity payment. This denied URA the much-needed revenue and the staff were disadvantaged due to failure to contribute to NSSF. |", "metadata": {"page": 233, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 11 | Insurance Training College (ITC). 2020/21 Opinion Unqualified | \uf0b7 Section 63 of the Insurance Act requires the Insurance Training levy to be reconciled with Insurers within 60 days after the end of the calendar year. I however noted that a total of UGX.4.9Bn was collected based on basis of computed returns submitted by the Insurers and Health Member Organisations (HMO\u2019s), with no evidence of reconciliation of Training Levy returns, contrary to requirements under the Act. As a result, the returns may be understated to reduce remittances, which may lead to revenue loss. |\n|---:|-----:|:----------------------------------------------------------------|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 13 | Tax Appeals Tribunal. 2020/21 Opinion Unqualified | \uf0b7 Arising out of a supreme court decision, all tax disputes in Uganda must first commence in the Tax appeal Tribunal before they move to any other court. A review of the cases filed at the Tribunal, in the last three years, revealed that there was an increase of cases filed from 40 in 2017 to 176 in 2020. In spite of the increase in cases, there has been no increase in the number of members of the Tribunal which has necessitated that the members of the Tribunal sit every day not withstanding their regular involvement in the administrative aspects of the Tribunal. The current structure of the remuneration of the members indicates that each member will be paid a sitting allowance and a retainer. This has resulted into the Tribunal spending the bulk of its money on the payment of allowances to the Tribunal members. \uf0b7 During the reviews, I noted that there were instances in which a Tribunal member is an active partner of a Firm that has a case before the Tribunal. Whereas the said Tribunal Member does not form part of the panel of the committee adjudicating the disputes, this presents a potential conflict of interest for the members of the committee who work with him and have to decide the matters involving his Firm for which he is an active partner. \uf0b7 I noted that the approved organisation structure for the Tribunal, did not have a provision for internal audit function and indeed, this role has not been assigned to any staff. This is contravention with the PFMA 2015, and it also denies the Tribunal an early warning mechanism in cases of errors of omission or commission. |", "metadata": {"page": 233, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 11 | Insurance Training College (ITC). 2020/21 Opinion Unqualified | \uf0b7 Section 63 of the Insurance Act requires the Insurance Training levy to be reconciled with Insurers within 60 days after the end of the calendar year. I however noted that a total of UGX.4.9Bn was collected based on basis of computed returns submitted by the Insurers and Health Member Organisations (HMO\u2019s), with no evidence of reconciliation of Training Levy returns, contrary to requirements under the Act. As a result, the returns may be understated to reduce remittances, which may lead to revenue loss. |\n|---:|-----:|:----------------------------------------------------------------------------|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 14 | Uganda Microfinance Regulatory Authority (UMRA) 2020/21 Opinion Unqualified | \uf0b7 It was noted that, contrary to Section 17 of the PFMA 2015, the Authority had unspent funds totalling UGX.4.93Mn at the year-end that were never returned to Treasury. It should also be noted that the same was done in the preceding year where UGX.204Mn was never returned. Failure to return unspent funds contravenes Section 17 of the Public Finance and Management Act 2015, and exposes the funds to a risk of diversion since they are spent in the subsequent financial year without appropriation by parliament. \uf0b7 Section 11.2.4 of the Treasury Instructions 2017, requires the Head of Finance to ensure that commitments are not approved unless sufficient funds are available in the commitment item. However, in disregard to the |", "metadata": {"page": 233, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 11 | Insurance Training College (ITC). 2020/21 Opinion Unqualified | \uf0b7 Section 63 of the Insurance Act requires the Insurance Training levy to be reconciled with Insurers within 60 days after the end of the calendar year. I however noted that a total of UGX.4.9Bn was collected based on basis of computed returns submitted by the Insurers and Health Member Organisations (HMO\u2019s), with no evidence of reconciliation of Training Levy returns, contrary to requirements under the Act. As a result, the returns may be understated to reduce remittances, which may lead to revenue loss. |\n|---:|:-----------|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | above provision, commitments to a tune of UGX.321Mn remained unpaid at the close of the year under review. \uf0b7 Comparison of licensees per category (Moneyl enders and non-deposit taking institutions) between the previous year 2019/2020 and those that renewed their licenses in the year under review 2020/2021 revealed that a total of 365 licensees had not submitted applications for renewal. In light of the occurrence, there is a risk that the licensees in issue could have operated for the whole year without having paid the requisite fees, which would lead to a loss in government revenue to a tune of UGX.200Mn. \uf0b7 Section 36(1)(a & b) of the Tier 4 Microfinance Institutions Act and Moneylenders Act, 2016 states that a SACCO shall not carry on the business of financial services unless it is a registered society; and licensed under the Act. Audit noted that only 15 SACCOs were issued with operating licenses by Uganda Microfinance Regulatory Authority. However, data obtained from Microfinance Support Centre (MSC) indicated that over 6,150 EMYOOGA SACCOs were by March, 2021 in operation without acquiring operating licenses. \uf0b7 Audit of the Authority\u2019s payroll and other expenses revealed that during the financial year ended 30th June 2021, Pay as You Earn (PAYE) tax amounting to UGX.290Mn in respect of deductions from employees was never remitted to the Uganda Revenue Authority. | Unnamed: 2 |", "metadata": {"page": 234, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 11 | Insurance Training College (ITC). 2020/21 Opinion Unqualified | \uf0b7 Section 63 of the Insurance Act requires the Insurance Training levy to be reconciled with Insurers within 60 days after the end of the calendar year. I however noted that a total of UGX.4.9Bn was collected based on basis of computed returns submitted by the Insurers and Health Member Organisations (HMO\u2019s), with no evidence of reconciliation of Training Levy returns, contrary to requirements under the Act. As a result, the returns may be understated to reduce remittances, which may lead to revenue loss. |\n|---:|-----:|:----------------------------------------------------------------------------------|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 15 | The Departed Asians Property Custodian Board (DAPCB). 2020/21 Opinion Unqualified | \uf0b7 I noted that MDAs and LGs are still experiencing challenges in implementing the budgets approved by parliament and policy guidance\u2019s issued by PS/ST, which has continued to affect the performance and credibility of the budget negatively. \uf0b7 I reviewed the NTR estimates, revenue sources and rates charged for the financial year 2020/2021 and noted that the entity budgeted to collect NTR of UGX.2,572,820,000 during the year under review. Out of this, only UGX.1,410,970,500 was collected, representing a performance of 55% of the target, resulting into a shortfall of UGX.1,161,849,500. \uf0b7 The entity budgeted to receive UGX.2.572Bn during the period, out of which UGX.1.383Bn was warranted, resulting into a shortfall of UGX.1.189Bn which is 46.23% of the budget. \uf0b7 I observed that in cases where outputs were not quantified, management reported performance in generic ways such as tenants sensitised to pay rent, court attended etc, without specifying the number/quantities achieved. \uf0b7 All five (5) outputs with a total of thirteen (13) activities worth UGX.1.383Bn were partially implemented. \uf0b7 I noted that in a twist of events, the Board refunded the sum of UGX.0.860Bn that had been deposited in respect of the property, citing the fact that the property had been donated to the tenant, but this was not supported by a Board resolution. \uf0b7 I observed that according to a disclosure in note 19 of the accounts, receivables have increased from UGX.3.35Bn last year to UGX.8.21Bn this year. Of this amount, UGX.3,73Bn relates to uncollected rent from prior years and UGX.4.60Bn relates to unpaid proceeds from property sales. \uf0b7 I reviewed the portfolio of DAPCB court cases and noted that there was a continuous rise) in the number of court cases against the Board arising from disputes of properties. The cases rose by 18, making a total of 120, as at the end of the year. |", "metadata": {"page": 234, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 11 | Insurance Training College (ITC). 2020/21 Opinion Unqualified | \uf0b7 Section 63 of the Insurance Act requires the Insurance Training levy to be reconciled with Insurers within 60 days after the end of the calendar year. I however noted that a total of UGX.4.9Bn was collected based on basis of computed returns submitted by the Insurers and Health Member Organisations (HMO\u2019s), with no evidence of reconciliation of Training Levy returns, contrary to requirements under the Act. As a result, the returns may be understated to reduce remittances, which may lead to revenue loss. |\n|---:|:-----------|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | \uf0b7 I noted that the entity does not have a comprehensive asset register to date. The copy of the compendium/register availed to me for audit was still under verification by management and as such management could not vouch for its completeness. \uf0b7 I reviewed the compendium of assets presented for audit by management and noted that nearly all properties therein were not yet valued, and yet the Board of valuers has now been in place for nearly three financial years. | Unnamed: 2 |\n| 1 | 16 | The Danida (Upgrade) Project Under the Inspectorate of Government. 2020/21 Opinion Unqualified | \uf0b7 I noted that MDAs and LGs are still experiencing challenges in implementing the budgets approved by parliament and policy guidance's issued by PS/ST, which has continued to affect the performance and credibility of the budget negatively. \uf0b7 I noted that the project had an approved budgeted of UGX.7,910,415,388 but only received UGX.2,047,981,275 as revenues for the period, leading to a 35.7% revenue performance. \uf0b7 I observed that the project work plan had 47 activities out of the planned 69 activities that were not quantified. |\n| 2 | 17 | The Inspectorate of Government (IG). 2020/21 Opinion Unqualified | \uf0b7 I noted that MDAs and LGs are still experiencing challenges in implementing the budgets approved by parliament and policy guidance\u2019s issued by PS/ST, which has continued to affect the performance and credibility of the budget negatively. \uf0b7 I reviewed the NTR estimates, revenue sources and rates charged at vote level for the financial year 2020/2021 and noted that the entity budgeted to collect NTR of UGX.1,201,509,223 during the year under review. Out of this, a total of UGX.1,875,073,520 was collected, representing a performance of 156% of the target with an excess collection of UGX.673,564,297. \uf0b7 The entity budgeted to receive UGX.53.4Bn from GoU sources; however, only UGX.49.45Bn was released, resulting into a shortfall of UGX.3.95Bn, which is 7.4% of the budget. \uf0b7 Out of the total warrants for the financial year of UGX.49,446,960,793, UGX.45,655,225,893 was spent by the entity, leaving a balance of UGX.3,791,734,900 unutilised by the vote. \uf0b7 I noted that the approved work programme for the construction of headquarter building indicated planned progress of 32% compared to the actual work progress of 11.9%. |", "metadata": {"page": 235, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 11 | Insurance Training College (ITC). 2020/21 Opinion Unqualified | \uf0b7 Section 63 of the Insurance Act requires the Insurance Training levy to be reconciled with Insurers within 60 days after the end of the calendar year. I however noted that a total of UGX.4.9Bn was collected based on basis of computed returns submitted by the Insurers and Health Member Organisations (HMO\u2019s), with no evidence of reconciliation of Training Levy returns, contrary to requirements under the Act. As a result, the returns may be understated to reduce remittances, which may lead to revenue loss. |\n|---:|-----:|:----------------------------------------------------------------------------------------------------------------------|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 18 | The Northern Uganda Social Action Fund Project Under the Inspectorate of Government (IG). 2020/21 Opinion Unqualified | \uf0b7 The project had an approved budget of UGX.2,235,166,397 for the FY 2020/21. I noted that a total of UGX.2,235,166,397 was received for the period representing 100% of the appropriated amount. \uf0b7 I noted that out of the twenty (20) sub-activities in the approved work plan for the FY 2020/21, eight (8) of them were not quantified. |\n| 1 | 19 | Ministry of Finance Planning and Economic Development (MoFPED). 2020/21 | \uf0b7 Analysis of domestic arrears showed an increase of UGX.139Bn from UGX.129Bn in the financial year 2019/20 to UGX.269Bn in the financial year 20/21 representing a jump of 108%. Overall, tax expenditure by government for private firms continues to account for the biggest portion of the arrears (at 78%) despite the write off of the tax arrears in the |", "metadata": {"page": 235, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Opinion Unqualified | previous financial year. I also noted that arrears relating to unsettled obligations to international organizations stood at UGX.49.49Bn with some dating as far back as financial year 2014/15. \uf0b7 GoU, through MOFPED, offered additional incentives of USD Cents 5/KWH to companies in the Cotton, Textile and Apparels (CTA) industry. During the financial year ended 30th June 2021, a total of UGX.3.36Bn was paid/refunded to two manufacturers while UGX.5.41Bn remained outstanding as at year end; However, I noted that; i) the concession was not time-bound, which exposes government to perpetual expenditure without value analysis. ii) none of the beneficiaries had furnished the Ministry with the required insurance bond despite the continued access to the benefit. iii) there was no evidence of publicizing the concession for the benefit of all eligible firms/persons. In this regard, the concession is only being enjoyed by two firms which creates competitive disadvantages to the other players in the industry. iv) there was no mechanism in place to monitor compliance with the set targets despite having reached the first milestone. v) the memorandum of understanding signed did not provide for reporting obligations for the beneficiaries. There was thus no justification for the continued incentive vi) all refunds effected so far are made from supplementary budgets implying none sustainability of the incentive. Indeed a total of UGX.5.41Bn remains outstanding as at 30th June 2021. \uf0b7 In line with the above, it is apparent that the subsidy is being implemented with irregularities. Government is exposed to continued expenditure without due regard to achievement of the intended objectives. \uf0b7 The Uganda Agriculture Insurance Scheme (UAIS) is a Public Private Partnership between GoU and the Private Sector represented by the Uganda Insurers Association and insurance companies under the agro- Consortium. The purpose of the scheme is to hedge Ugandan farmers against natural calamities beyond their control. However, review of implementation revealed that there was lack of a mutual agreement on Marketing of the scheme to the potential beneficiaries and a number of conditions in the MoU are not yet fulfilled. This has limited its access to potential beneficiaries and also raised transparency concerns in regard to how the current beneficiaries were identified. \uf0b7 The PPP Act 2015 provides that there is to be established a Project Development Fund to support public private partnerships initiatives. However, six years later, there is no evidence of operationalization of the Fund by the Minister. Failure to establish the fund may be a contributory factor to the slow uptake and limited feasibility studies of the Public Private Partnerships. |\n|---:|-------------:|:-------------------------------------------|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 20 | PPDA Tribunal. 2020/21 Opinion Unqualified | \uf0b7 I noted that the Tribunal was operating a strategic plan that is not aligned to the NDP III period. The Tribunal\u2019s planning period is 2017- 2022 implying that activities implemented during the financial year 2020/2021 may not have been aligned to the NDP-III, which negatively affects the achievement of NDP-III objectives. |", "metadata": {"page": 236, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 21 | Uganda Investment Authority. 2020/21 Opinion Unqualified | \uf0b7 The Authority received off-budget financing to a tune of UGX.50.43Bn, which was not transferred to the consolidated fund as required by law. These funds were received directly from development partners to the EPC contractor for the Development of infrastructure at Kampala Industrial and Business Park, Namanve. Off-budget financing distorts planning, may result into duplication of activities and is contrary to the Public finance Management Act 2015. \uf0b7 The approved budget estimates for the Authority for the financial year 2020/2021 indicated that only UGX.22Mn out of UGX.2.411Bn was budgeted towards the settlement of domestic arrears. The arrears balance of UGX.2.389Bn was therefore not budgeted for settlement. Failure to provide resources for the accumulated arrears increases outstanding obligations. \uf0b7 The Authority continued to accumulate domestic arrears with a total of UGX.1.768Bn incurred in the financial year under review, without clearing outstanding arrears from the previous financial year 2019/2020 of UGX.2.411Bn. The total accumulated domestic arrears stood at UGX.4.18Bn at 30th June 2021. This is an indicator of non adherence with the commitment control system of government. \uf0b7 During inspections countrywide, I observed that the industrial parks lack or had inadequate infrastructures like roads, solid waste and sewage management systems, power supply, street lights etc. The Parks have been characterized by encroachment, farming and cattle grazing, degradation of nearby swamps, unallocated land, idle land allocated to unserious investors and misunderstandings between investors and park management staff. Most roads are impassable and with inadequate lighting which exposes the parks to thefts and insecurity. I observed that some factories in the parks have set up their own infrastructure which may not be sustainable, and to the desired standards. This may negatively affect the usage and utilization of the parks. \uf0b7 The Authority lacks regulations required under Section 38(1) of the Investment Code Act to operationalize the statute. This may hinder the smooth implementation of the Act which is meant to create an investment enabling environment. \uf0b7 Although the Authority has 124 approved positions, only 78 (i.e. 62.9%) are filled, leaving 46 (37.1%) vacant positions. Among the vacant positions include 24 unfilled positions that are from the core Directorate of Investment which is the backbone of UIA. Understaffing undermines service delivery. |\n|---:|-----:|:-----------------------------------------------------------|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 22 | Treasury Operations. 2020/21 Opinion Unqualified | \uf0b7 I reviewed the NTR estimates, revenue sources and rates charged at vote level for the financial year 2020/2021 and noted that the entity had not budgeted to collect NTR during the year under review. \uf0b7 It was noted that out of the approved budget of UGX.15.129Tn for the vote for the final year ended 30th June 2021, only UGX.14.204Tn was released, representing 93% of the approved budget. \uf0b7 Of the UGX.14.204Tn received in the current Financial Year, only UGX.11.963Tn was spent by the vote resulting into an unspent balance of UGX.2.241Tn representing an absorption level of 84%. \uf0b7 I noted that the interest accrued on the outstanding debt but not yet paid amounting to UGX.1.039Tn was not recognised in the financial statements. \uf0b7 Included in the receivables figure is UGX.10.437Bn that was lent by |", "metadata": {"page": 237, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 21 | Uganda Investment Authority. 2020/21 Opinion Unqualified | \uf0b7 The Authority received off-budget financing to a tune of UGX.50.43Bn, which was not transferred to the consolidated fund as required by law. These funds were received directly from development partners to the EPC contractor for the Development of infrastructure at Kampala Industrial and Business Park, Namanve. Off-budget financing distorts planning, may result into duplication of activities and is contrary to the Public finance Management Act 2015. \uf0b7 The approved budget estimates for the Authority for the financial year 2020/2021 indicated that only UGX.22Mn out of UGX.2.411Bn was budgeted towards the settlement of domestic arrears. The arrears balance of UGX.2.389Bn was therefore not budgeted for settlement. Failure to provide resources for the accumulated arrears increases outstanding obligations. \uf0b7 The Authority continued to accumulate domestic arrears with a total of UGX.1.768Bn incurred in the financial year under review, without clearing outstanding arrears from the previous financial year 2019/2020 of UGX.2.411Bn. The total accumulated domestic arrears stood at UGX.4.18Bn at 30th June 2021. This is an indicator of non adherence with the commitment control system of government. \uf0b7 During inspections countrywide, I observed that the industrial parks lack or had inadequate infrastructures like roads, solid waste and sewage management systems, power supply, street lights etc. The Parks have been characterized by encroachment, farming and cattle grazing, degradation of nearby swamps, unallocated land, idle land allocated to unserious investors and misunderstandings between investors and park management staff. Most roads are impassable and with inadequate lighting which exposes the parks to thefts and insecurity. I observed that some factories in the parks have set up their own infrastructure which may not be sustainable, and to the desired standards. This may negatively affect the usage and utilization of the parks. \uf0b7 The Authority lacks regulations required under Section 38(1) of the Investment Code Act to operationalize the statute. This may hinder the smooth implementation of the Act which is meant to create an investment enabling environment. \uf0b7 Although the Authority has 124 approved positions, only 78 (i.e. 62.9%) are filled, leaving 46 (37.1%) vacant positions. Among the vacant positions include 24 unfilled positions that are from the core Directorate of Investment which is the backbone of UIA. Understaffing undermines service delivery. |\n|---:|:-----------|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | government to private enterprises for which no recovery has been effected since 2013. \uf0b7 Included in cash and cash equivalents is UGX.15.62Bn which was a USAID grant for enhancing Livelihoods and Infrastructure of Northern Uganda under a project. The funds have remained utilized for more than two years and risk being refunded to the donor yet it was a grant. \uf0b7 I noted that there is no clear method of identifying which claimants are considered for negotiations even in the instance of where the said claimants have mandamus orders. \uf0b7 I have noted that over the years, budgets for mandamus payments are included in the original budget as notional amounts despite having a figure for outstanding payments at the beginning of the year, including those for which settlement plans have been drawn as per the signed MoUs and court variation orders with beneficiaries. \uf0b7 Audit observed that, UGX.3.32Tn which was advanced by the Bank of Uganda to settle matured obligations relating to treasury bills and bonds (principal and interest) had not been refunded as at 30th June 2021 contrary to the requirements under Section 36 of the PFMA. \uf0b7 A review of the company files in which the GOU holds shares revealed that some companies were dormant, with no activities being undertaken on the said files. There was no evidence that the said companies were filing the mandatory annual returns, minutes of the Annual General Meetings or any information to indicate the activity of the companies. \uf0b7 Audit established through a review of records at Uganda Registration Services Bureau that Government owns a number of investments that are not reported/ recognised in the financial statements of Treasury Operations. \uf0b7 It was established that the Minister provided authorisations to nineteen (19) Public Institutions to borrow funds from financial institutions totalling to UGX.60.042Bn, but there was no evidence of any monitoring being undertaken by the Ministry to ensure adherence to the loan terms and conditions. | Unnamed: 2 |", "metadata": {"page": 238, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 21 | Uganda Investment Authority. 2020/21 Opinion Unqualified | \uf0b7 The Authority received off-budget financing to a tune of UGX.50.43Bn, which was not transferred to the consolidated fund as required by law. These funds were received directly from development partners to the EPC contractor for the Development of infrastructure at Kampala Industrial and Business Park, Namanve. Off-budget financing distorts planning, may result into duplication of activities and is contrary to the Public finance Management Act 2015. \uf0b7 The approved budget estimates for the Authority for the financial year 2020/2021 indicated that only UGX.22Mn out of UGX.2.411Bn was budgeted towards the settlement of domestic arrears. The arrears balance of UGX.2.389Bn was therefore not budgeted for settlement. Failure to provide resources for the accumulated arrears increases outstanding obligations. \uf0b7 The Authority continued to accumulate domestic arrears with a total of UGX.1.768Bn incurred in the financial year under review, without clearing outstanding arrears from the previous financial year 2019/2020 of UGX.2.411Bn. The total accumulated domestic arrears stood at UGX.4.18Bn at 30th June 2021. This is an indicator of non adherence with the commitment control system of government. \uf0b7 During inspections countrywide, I observed that the industrial parks lack or had inadequate infrastructures like roads, solid waste and sewage management systems, power supply, street lights etc. The Parks have been characterized by encroachment, farming and cattle grazing, degradation of nearby swamps, unallocated land, idle land allocated to unserious investors and misunderstandings between investors and park management staff. Most roads are impassable and with inadequate lighting which exposes the parks to thefts and insecurity. I observed that some factories in the parks have set up their own infrastructure which may not be sustainable, and to the desired standards. This may negatively affect the usage and utilization of the parks. \uf0b7 The Authority lacks regulations required under Section 38(1) of the Investment Code Act to operationalize the statute. This may hinder the smooth implementation of the Act which is meant to create an investment enabling environment. \uf0b7 Although the Authority has 124 approved positions, only 78 (i.e. 62.9%) are filled, leaving 46 (37.1%) vacant positions. Among the vacant positions include 24 unfilled positions that are from the core Directorate of Investment which is the backbone of UIA. Understaffing undermines service delivery. |\n|---:|-----:|:------------------------------------------------------------|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 23 | Insurance Regulatory Authority. 2020/21 Opinion Unqualified | \uf0b7 Out of the budgeted NTR of UGX.26.874Bn, only UGX.19.818Bn was collected and a shortfall of UGX.7.056Bn, representing a performance of 73.7% of the target. Shortfalls in NTR collections affect the implementation of planned activities. \uf0b7 I noted that a number of planned procurements were not executed worth UGX.5.61Bn. Non implementation of all procurements leads to failure to attain the intended objectives during the financial year. \uf0b7 There were noted delays in the phase one construction of an ultra- modern 11 storeyed office building for Insurance Regulatory Authority located at plot 6, Lumumba Avenue, which was awarded to a contractor at an amended contract price of UGX.32.662Bn. By the time of reporting, although a total cumulative payment of UGX.29.943Bn (91%) had been made to the contractor, the project was at 80% completion and 46 months behind schedule. |\n| 1 | 24 | National Lottery & Gaming Board. Opinion Unqualified | \uf0b7 I noted that a number of Gaming houses had not filed the required quarterly returns contrary to the Lotteries and Gaming regulations. There was no evidence that the Board had conducted enforcement activities to ensure compliance by the operators. \uf0b7 Failure to undertake enforcement actions poses a risk of the operators |", "metadata": {"page": 238, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 21 | Uganda Investment Authority. 2020/21 Opinion Unqualified | \uf0b7 The Authority received off-budget financing to a tune of UGX.50.43Bn, which was not transferred to the consolidated fund as required by law. These funds were received directly from development partners to the EPC contractor for the Development of infrastructure at Kampala Industrial and Business Park, Namanve. Off-budget financing distorts planning, may result into duplication of activities and is contrary to the Public finance Management Act 2015. \uf0b7 The approved budget estimates for the Authority for the financial year 2020/2021 indicated that only UGX.22Mn out of UGX.2.411Bn was budgeted towards the settlement of domestic arrears. The arrears balance of UGX.2.389Bn was therefore not budgeted for settlement. Failure to provide resources for the accumulated arrears increases outstanding obligations. \uf0b7 The Authority continued to accumulate domestic arrears with a total of UGX.1.768Bn incurred in the financial year under review, without clearing outstanding arrears from the previous financial year 2019/2020 of UGX.2.411Bn. The total accumulated domestic arrears stood at UGX.4.18Bn at 30th June 2021. This is an indicator of non adherence with the commitment control system of government. \uf0b7 During inspections countrywide, I observed that the industrial parks lack or had inadequate infrastructures like roads, solid waste and sewage management systems, power supply, street lights etc. The Parks have been characterized by encroachment, farming and cattle grazing, degradation of nearby swamps, unallocated land, idle land allocated to unserious investors and misunderstandings between investors and park management staff. Most roads are impassable and with inadequate lighting which exposes the parks to thefts and insecurity. I observed that some factories in the parks have set up their own infrastructure which may not be sustainable, and to the desired standards. This may negatively affect the usage and utilization of the parks. \uf0b7 The Authority lacks regulations required under Section 38(1) of the Investment Code Act to operationalize the statute. This may hinder the smooth implementation of the Act which is meant to create an investment enabling environment. \uf0b7 Although the Authority has 124 approved positions, only 78 (i.e. 62.9%) are filled, leaving 46 (37.1%) vacant positions. Among the vacant positions include 24 unfilled positions that are from the core Directorate of Investment which is the backbone of UIA. Understaffing undermines service delivery. |\n|---:|:-----------|:-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | not making returns and having operational gaps going undetected which affects the revenue collections of Uganda Revenue Authority and exposes the Ugandan public to risk of unprofessional operators. \uf0b7 The Ministry of Finance, Planning and Economic Development on behalf of Lotteries and Gaming Regulatory Board awarded a UGX.10.833Bn contract to a foreign company to provide consultancy services for development of a National Central Electronic Monitoring system. The contract period was for 2 (two) years effective 23rd June, 2020. I noted that, two years later, the procurement has not been made. There is no provision for implementation of the system even in the current budget 2021/22. The failure to procure the system, denies the Board the associated benefits like monitoring and revenue tracking. Beside this may result into litigation on grounds of breach of contract and expose Government to loss of funds in compensation. \uf0b7 During the year under review, although the Board licensed 17 casinos, there was no evidence that the Board advertised the applications for the said casinos to invite the views of the public as is required by regulations. Failure to publish the notices poses a risk of granting licenses to operators with some conflicts among the public and as such may result into litigation. | Unnamed: 2 |", "metadata": {"page": 239, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 21 | Uganda Investment Authority. 2020/21 Opinion Unqualified | \uf0b7 The Authority received off-budget financing to a tune of UGX.50.43Bn, which was not transferred to the consolidated fund as required by law. These funds were received directly from development partners to the EPC contractor for the Development of infrastructure at Kampala Industrial and Business Park, Namanve. Off-budget financing distorts planning, may result into duplication of activities and is contrary to the Public finance Management Act 2015. \uf0b7 The approved budget estimates for the Authority for the financial year 2020/2021 indicated that only UGX.22Mn out of UGX.2.411Bn was budgeted towards the settlement of domestic arrears. The arrears balance of UGX.2.389Bn was therefore not budgeted for settlement. Failure to provide resources for the accumulated arrears increases outstanding obligations. \uf0b7 The Authority continued to accumulate domestic arrears with a total of UGX.1.768Bn incurred in the financial year under review, without clearing outstanding arrears from the previous financial year 2019/2020 of UGX.2.411Bn. The total accumulated domestic arrears stood at UGX.4.18Bn at 30th June 2021. This is an indicator of non adherence with the commitment control system of government. \uf0b7 During inspections countrywide, I observed that the industrial parks lack or had inadequate infrastructures like roads, solid waste and sewage management systems, power supply, street lights etc. The Parks have been characterized by encroachment, farming and cattle grazing, degradation of nearby swamps, unallocated land, idle land allocated to unserious investors and misunderstandings between investors and park management staff. Most roads are impassable and with inadequate lighting which exposes the parks to thefts and insecurity. I observed that some factories in the parks have set up their own infrastructure which may not be sustainable, and to the desired standards. This may negatively affect the usage and utilization of the parks. \uf0b7 The Authority lacks regulations required under Section 38(1) of the Investment Code Act to operationalize the statute. This may hinder the smooth implementation of the Act which is meant to create an investment enabling environment. \uf0b7 Although the Authority has 124 approved positions, only 78 (i.e. 62.9%) are filled, leaving 46 (37.1%) vacant positions. Among the vacant positions include 24 unfilled positions that are from the core Directorate of Investment which is the backbone of UIA. Understaffing undermines service delivery. |\n|---:|-----:|:----------------------------------------------------------------------------|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 25 | Public Procurment And Disposal of Public (PPDA) 2020/21 Opinion Unqualified | \uf0b7 I noted at the time of the audit that out of the planned Four (4) strategic targets/goals, No targets had been fully achieved, while three (3) were partially achieved, and one (1) target had not been achieved at al \uf0b7 I noted that out of the budgeted revenue of UGX.28.4Bn for the year 2020/21, UGX.21.3Bn was realised representing a performance of only 75% of the target. \uf0b7 Out of the 5 outputs assessed, No output was fully implemented; 5 outputs representing 100% were partially implemented, while no output was not implemented at all. \uf0b7 I noted that although the budget for Domestic arrears was UGX.42,407,000, funds amounting to UGX.432,579,009 were spent on domestic arrears for the FY 2020/21, implying an over expenditure of UGX.390,172,009 on this item. \uf0b7 Out of the total receipts for the financial year of UGX.18.698Bn, UGX.18.59Bn was spent by the Authority, resulting into an unspent balance of UGX.0.108Bn representing an absorption level of 99%. \uf0b7 The audit reviewed the performance of the above project and noted that much as most of the key planned activities had been implemented, there were few that were still pending. \uf0b7 I observed that the entity has a staff establishment of 140 positions, out of which only 116 were filled, leaving 24 positions vacant, representing 17% of the workforce of the entity. In addition, seven staff exited the Authority during the year, due to various reasons. |\n| 1 | 26 | Bank of Uganda. 2020/21 Opinion Unqualified | \uf0b7 No significant findings. |\n| 2 | 27 | Capital Markets Authority. 2019/20 Opinion | \uf0b7 No significant findings. |", "metadata": {"page": 239, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 21 | Uganda Investment Authority. 2020/21 Opinion Unqualified | \uf0b7 The Authority received off-budget financing to a tune of UGX.50.43Bn, which was not transferred to the consolidated fund as required by law. These funds were received directly from development partners to the EPC contractor for the Development of infrastructure at Kampala Industrial and Business Park, Namanve. Off-budget financing distorts planning, may result into duplication of activities and is contrary to the Public finance Management Act 2015. \uf0b7 The approved budget estimates for the Authority for the financial year 2020/2021 indicated that only UGX.22Mn out of UGX.2.411Bn was budgeted towards the settlement of domestic arrears. The arrears balance of UGX.2.389Bn was therefore not budgeted for settlement. Failure to provide resources for the accumulated arrears increases outstanding obligations. \uf0b7 The Authority continued to accumulate domestic arrears with a total of UGX.1.768Bn incurred in the financial year under review, without clearing outstanding arrears from the previous financial year 2019/2020 of UGX.2.411Bn. The total accumulated domestic arrears stood at UGX.4.18Bn at 30th June 2021. This is an indicator of non adherence with the commitment control system of government. \uf0b7 During inspections countrywide, I observed that the industrial parks lack or had inadequate infrastructures like roads, solid waste and sewage management systems, power supply, street lights etc. The Parks have been characterized by encroachment, farming and cattle grazing, degradation of nearby swamps, unallocated land, idle land allocated to unserious investors and misunderstandings between investors and park management staff. Most roads are impassable and with inadequate lighting which exposes the parks to thefts and insecurity. I observed that some factories in the parks have set up their own infrastructure which may not be sustainable, and to the desired standards. This may negatively affect the usage and utilization of the parks. \uf0b7 The Authority lacks regulations required under Section 38(1) of the Investment Code Act to operationalize the statute. This may hinder the smooth implementation of the Act which is meant to create an investment enabling environment. \uf0b7 Although the Authority has 124 approved positions, only 78 (i.e. 62.9%) are filled, leaving 46 (37.1%) vacant positions. Among the vacant positions include 24 unfilled positions that are from the core Directorate of Investment which is the backbone of UIA. Understaffing undermines service delivery. |\n|---:|:-----------|:-----------------------------------------------------------------------------------------|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | Unqualified | Unnamed: 2 |\n| 1 | 28.0 | Deposit Protection Fund (\"The Fund\") 2020/21 Opinion Unqualified | \uf0b7 I noted that although effective 1st July 2020, DPF was exempt from withholding tax, Bank of Uganda erroneously deducted withholding tax (WHT) on the Fund\u2019s interest income on matured government securities during the period amounting to UGX.10.4Bn. However, directors have decided to make full provision against the WHT receivable based on the historical experience and expected future outcome of the claim from URA on a conservative basis, and this is in accordance with the requirement of IAS 36: Impairment of Assets. |\n| 2 | 29.0 | Pride Microfinance Limited (MDI) 2020 Opinion Unqualified | \uf0b7 No significant findings. |\n| 3 | 30.0 | Project for Financial Inclusion In Rural Areas (PROFIRA) Opinion Unqualified | \uf0b7 I noted that, as reported in my report for the year ended 30th June 2020, Government of Uganda has not yet honored its obligation of UGX.5.6Bn as co-funding for the Project. \uf0b7 I observed that the project has been supporting SACCO\u2019s that were not registered by Uganda Microfinance Regulatory Authority (UMRA). |\n| 4 | 31.0 | The Resource Enhancement and Accountability Programme (REAP) 2020/21 Opinion Unqualified | \uf0b7 No significant findings. |\n| 5 | 32.0 | Uganda Development Bank Limited (UDBL). 2020 Opinion Unqualified | \uf0b7 No significant findings. |\n| 6 | 33.0 | Microfinance Support Centre Limted (MCSC) 2020 Opinion Unqualified | \uf0b7 I noted that unresolved receipts in payables balance amounting to UGX. UGX.581 Million |\n| 7 | | INFORMATION COMMUNICATION SECTOR | |\n| 8 | 1.0 | Ministry of ICT and National Guidance Opinion Unqualified | \uf0b7 The entity budgeted to receive UGX.46.401Bn from Treasury; out of this amount, UGX.43.586 Bn was warranted, resulting into a shortfall of UGX.2.81Bn which was 6% of the budget. Of the released amount, the Ministry absorbed UGX.42Bn, resulting into an unspent balance of UGX.1.6Bn representing an absorption level of 96%. Unspent balances imply un implemented activities and which in turn hampers proper service |", "metadata": {"page": 240, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 21 | Uganda Investment Authority. 2020/21 Opinion Unqualified | \uf0b7 The Authority received off-budget financing to a tune of UGX.50.43Bn, which was not transferred to the consolidated fund as required by law. These funds were received directly from development partners to the EPC contractor for the Development of infrastructure at Kampala Industrial and Business Park, Namanve. Off-budget financing distorts planning, may result into duplication of activities and is contrary to the Public finance Management Act 2015. \uf0b7 The approved budget estimates for the Authority for the financial year 2020/2021 indicated that only UGX.22Mn out of UGX.2.411Bn was budgeted towards the settlement of domestic arrears. The arrears balance of UGX.2.389Bn was therefore not budgeted for settlement. Failure to provide resources for the accumulated arrears increases outstanding obligations. \uf0b7 The Authority continued to accumulate domestic arrears with a total of UGX.1.768Bn incurred in the financial year under review, without clearing outstanding arrears from the previous financial year 2019/2020 of UGX.2.411Bn. The total accumulated domestic arrears stood at UGX.4.18Bn at 30th June 2021. This is an indicator of non adherence with the commitment control system of government. \uf0b7 During inspections countrywide, I observed that the industrial parks lack or had inadequate infrastructures like roads, solid waste and sewage management systems, power supply, street lights etc. The Parks have been characterized by encroachment, farming and cattle grazing, degradation of nearby swamps, unallocated land, idle land allocated to unserious investors and misunderstandings between investors and park management staff. Most roads are impassable and with inadequate lighting which exposes the parks to thefts and insecurity. I observed that some factories in the parks have set up their own infrastructure which may not be sustainable, and to the desired standards. This may negatively affect the usage and utilization of the parks. \uf0b7 The Authority lacks regulations required under Section 38(1) of the Investment Code Act to operationalize the statute. This may hinder the smooth implementation of the Act which is meant to create an investment enabling environment. \uf0b7 Although the Authority has 124 approved positions, only 78 (i.e. 62.9%) are filled, leaving 46 (37.1%) vacant positions. Among the vacant positions include 24 unfilled positions that are from the core Directorate of Investment which is the backbone of UIA. Understaffing undermines service delivery. |\n|---:|:-----------|:-----------------------------------------------------------|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | Unnamed: 1 | delivery. \uf0b7 Contrary to Regulation 18 (1) of the PPDA (Contracts) Regulations, 2014, the Ministry issued call off orders to two firms in three separate procurements of office furniture worth UGX.144.8Mn under a framework contract where the items and prices on the call off orders were different from what was agreed on in the signed framework contract. This erodes the benefits of framework contracts and may cause a loss to Government. |", "metadata": {"page": 241, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 21 | Uganda Investment Authority. 2020/21 Opinion Unqualified | \uf0b7 The Authority received off-budget financing to a tune of UGX.50.43Bn, which was not transferred to the consolidated fund as required by law. These funds were received directly from development partners to the EPC contractor for the Development of infrastructure at Kampala Industrial and Business Park, Namanve. Off-budget financing distorts planning, may result into duplication of activities and is contrary to the Public finance Management Act 2015. \uf0b7 The approved budget estimates for the Authority for the financial year 2020/2021 indicated that only UGX.22Mn out of UGX.2.411Bn was budgeted towards the settlement of domestic arrears. The arrears balance of UGX.2.389Bn was therefore not budgeted for settlement. Failure to provide resources for the accumulated arrears increases outstanding obligations. \uf0b7 The Authority continued to accumulate domestic arrears with a total of UGX.1.768Bn incurred in the financial year under review, without clearing outstanding arrears from the previous financial year 2019/2020 of UGX.2.411Bn. The total accumulated domestic arrears stood at UGX.4.18Bn at 30th June 2021. This is an indicator of non adherence with the commitment control system of government. \uf0b7 During inspections countrywide, I observed that the industrial parks lack or had inadequate infrastructures like roads, solid waste and sewage management systems, power supply, street lights etc. The Parks have been characterized by encroachment, farming and cattle grazing, degradation of nearby swamps, unallocated land, idle land allocated to unserious investors and misunderstandings between investors and park management staff. Most roads are impassable and with inadequate lighting which exposes the parks to thefts and insecurity. I observed that some factories in the parks have set up their own infrastructure which may not be sustainable, and to the desired standards. This may negatively affect the usage and utilization of the parks. \uf0b7 The Authority lacks regulations required under Section 38(1) of the Investment Code Act to operationalize the statute. This may hinder the smooth implementation of the Act which is meant to create an investment enabling environment. \uf0b7 Although the Authority has 124 approved positions, only 78 (i.e. 62.9%) are filled, leaving 46 (37.1%) vacant positions. Among the vacant positions include 24 unfilled positions that are from the core Directorate of Investment which is the backbone of UIA. Understaffing undermines service delivery. |\n|---:|-----:|:-------------------------------------------------------------------------------------------|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 2 | Uganda Communications Commission. Opinion Unqualified | \uf0b7 Assessment of the Commission\u2019s performance of Non Tax Revenue (NTR) revealed that out of the budgeted NTR of UGX.156.59Bn, a total of UGX.454.61 was collected, representing an increase of UGX.298Bn (190% of the target). Management attributed the overperformance to payment of the National Telecom Operator (NTO) license by two telecom companies which had not been budgeted for. The Accounting Officer was advised to always conduct comprehensive research on all potential revenue sources for proper budgeting of NTR. \uf0b7 Out of the total receipts for the financial year of UGX.454.61Bn, only UGX.451.98Bn was spent by the entity resulting into an unspent balance of UGX.2.63Bn representing an absorption level of 99.5%. I commended the Accounting Officer for absorbing most of the funds availed despite the challenges during the year. \uf0b7 I noted that several procurements to the tune of UGX.4.51Bn were not implemented as of 30th June 2021. As a result, implementation of critical Commission programs was delayed. Management attributed the delays in these procurements to the COVID-19 pandemic that paralysed the entire procurement process. \uf0b7 The Commission discontinued issuing invoices to Uganda Telecom Ltd, Posta Uganda and Uganda Broadcasting Corporation due to tax implications where, the Commission has to pay VAT to URA on every invoice raised, whether funds are received or not. As a result, UCC ledger balances of UGX.85.1Bn differed from the reported receivables of UGX.13.1Bn, by a total of UGX.72.0Bn. Furthermore, I noted that the reported receivables by UCC from the same entities differed from the reported payables to UCC by the same entities. The Accounting Officer was advised to engage management of the affected entities with a view of reconciling to the correct receivable figures. \uf0b7 The Commission did not charge the 2% gross annual levy on the licensed Television and FM radio operators and no licensed Television and FM radio operator had submitted Audited financial statements to the Commission for assessment. This denied the Commission the revenue to implement development programs. \uf0b7 The Commission lacks a Tribunal with the jurisdiction to hear and determine all matters relating to communications services arising from decisions made by the Commission or the Minister, contrary to Section 60(1 & 2) and 64(1) of the Uganda Communications Act, 2013. The accounting officer explained that the responsibility to appoint the tribunal resides with the President on the recommendation of the Judicial Service Commission. I advised management and the Board of Directors to liaise with the relevant authorities with the view of constituting the Communications Tribunal. |\n| 1 | 3 | Rural Communications Infrastructure Program, Phase 5 \u2013 Uganda Project, IDA LOAN NO.5635-UG | \uf0b7 I noted that MDAs and LGs are still experiencing challenges in implementing the budgets approved by parliament and policy guidance\u2019s issued by PS/ST, which has continued to affect the performance and |", "metadata": {"page": 241, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | 2020/21 Opinion Unqualified | credibility of the budget negatively. \uf0b7 I noted that RCIP was lagging behind in some activities that would not be completed at the project end. \uf0b7 I noted that all four components did not fully absorb the available funds. Out of the UGX.104.88Bn that was released to RCIP, the Project only utilised UGX.76.52Bn, thus failing to absorb funds to a tune of UGX.28.36Bn representing 27% of the released funds. \uf0b7 It was noted that RCIP set clear performance targets and indicators for some activities to facilitate performance measurement. \uf0b7 I noted that a total of USD.702,415 has so far been paid to the contractor for supply, installation and commissioning of the e-government procurement system, of which a total of USD.198,645 was paid during the year under audit. \uf0b7 Government lost USD.208,156 for receiving quality assurance services for a system that had already been discontinued by Government |\n|---:|-------------:|:----------------------------------------------------------------------------------------|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 4 | National Information Technology Authority \u2013 Uganda (NITA-U) 2020/21 Opinion Unqualified | \uf0b7 Analysis of domestic arrears over the past three years has shown a steep upward trend over the period with a 123% growth. The outstanding amount currently is UGX.6Bn. Further analysis revealed that most of the arrears relate to costs of expanding the national backbone infrastructure. The domestic arrears at hand now account for 14% of the annual GoU budget of the Authority. Such a trend is not only unsustainable but may lead to erosion of the credit worthiness of the Authority and may attract interest and penalties. \uf0b7 Included in the Statement of Financial Position is a receivable of UGX.14.9Bn arising from the 1% levy on Telecoms due from Uganda Communications Commission (UCC) dating as far back as financial year 2016/17, whose recoverability is doubtful following a policy directive from the Ministry of Information, Communication and National Guidance to the effect that NITA-U should stop recognizing its share of 1% levy on Telecoms. \uf0b7 UGX.1,532,979,432 reflected as non-produced assets in the Statement of Financial Position relates to land leased to NITA-U by Uganda Investment Authority. The same land has been leased to a private company without the knowledge of NITA-U. Although NITA-U filed a case against UIA in the High Court seeking a permanent injunction restraining UIA, the case was dismissed noting that the matter could only be determined under land law. By the time of audit, a developer to whom UIA leased the property had taken possession of the land and started undertaking developments on it. |", "metadata": {"page": 242, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | 2020/21 Opinion Unqualified | credibility of the budget negatively. \uf0b7 I noted that RCIP was lagging behind in some activities that would not be completed at the project end. \uf0b7 I noted that all four components did not fully absorb the available funds. Out of the UGX.104.88Bn that was released to RCIP, the Project only utilised UGX.76.52Bn, thus failing to absorb funds to a tune of UGX.28.36Bn representing 27% of the released funds. \uf0b7 It was noted that RCIP set clear performance targets and indicators for some activities to facilitate performance measurement. \uf0b7 I noted that a total of USD.702,415 has so far been paid to the contractor for supply, installation and commissioning of the e-government procurement system, of which a total of USD.198,645 was paid during the year under audit. \uf0b7 Government lost USD.208,156 for receiving quality assurance services for a system that had already been discontinued by Government |\n|---:|-------------:|:-------------------------------------------------------------------|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 5 | Uganda Broadcasting Corporation (UBC). 2020/21 Opinion Unqualified | \uf0b7 Although the entity budgeted to receive UGX.45.83Bn only UGX.15.39Bn was collected and spent, resulting into a shortfall of UGX.30.43Bn which is 66.4% of the budget. The budget for the financial year 2020/2021 was developed on the assumption that UBC would receive the UGX.34.6 Billion approved by Parliament; however, the Corporation did not receive the funds as planned. This is an indication of unrealistic budgeting by the Corporation well aware of the effects of the Covid-19 pandemic \uf0b7 Comparison of the trade receivables balances for current year and prior year indicates that the receivables decreased by 28% from UGX.30.79Bn to UGX.22Bn. An ageing analysis revealed that receivables worth UGX.13.549Bn from 228 clients were at least 7 years old without any movements in their ledger accounts, thus casting doubt as to their existence and recoverability. |", "metadata": {"page": 242, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | 2020/21 Opinion Unqualified | credibility of the budget negatively. \uf0b7 I noted that RCIP was lagging behind in some activities that would not be completed at the project end. \uf0b7 I noted that all four components did not fully absorb the available funds. Out of the UGX.104.88Bn that was released to RCIP, the Project only utilised UGX.76.52Bn, thus failing to absorb funds to a tune of UGX.28.36Bn representing 27% of the released funds. \uf0b7 It was noted that RCIP set clear performance targets and indicators for some activities to facilitate performance measurement. \uf0b7 I noted that a total of USD.702,415 has so far been paid to the contractor for supply, installation and commissioning of the e-government procurement system, of which a total of USD.198,645 was paid during the year under audit. \uf0b7 Government lost USD.208,156 for receiving quality assurance services for a system that had already been discontinued by Government |\n|---:|:-------------|:------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | \uf0b7 The Corporation has outstanding NSSF amounting to UGX.46.38Bn as at 30th June 2021. As a result, the Corporation and the Managing Director have been sued for non-payment and imposition of interest and fines by the NSSF due to non-remittance is now likely. This is wasteful as it could have been avoided if remittances had been made in a timely manner. | Unnamed: 2 |\n| 1 | 6 | Uganda Post Limited. 2020/21 Opinion Unqualified | \uf0b7 I noted that despite this being the final year of the Strategic plan and collecting on average, over 86% of the budget, most objectives were not achieved, with some attaining between 21% and 39% of implementation. The key strategic objectives that were not met include Building a strong financial base to meet operational and project development budget, Attracting, deploying, developing and retaining a productive and motivated Human Resource, Strengthening the ICT unit to raise efficiency and competitiveness of UPL products and Rationalizing existing business lines and diversifying into low hanging opportunities to improve profitability. \uf0b7 The company faces a liquidity crisis which was evidenced by delayed payment of staff salaries for over five months amounting to UGX.1.1Bn, non-payment of statutory obligations amounting to UGX.8.36Bn and failure to complete planned procurements. Management has initiated engagements with Statutory Bodies to settle the liabilities. . \uf0b7 The company has a total of 11 disputed prime Properties with Uganda Telecom Limited in Administration and Uganda Institute of Communication and Technology. Engagements are underway to resolve the impasse. \uf0b7 The company still lacks land titles for several pieces of land which include land in Mpigi, Tororo, Fort Portal, Kasese and Palisa. Management is expeditiously following up the matter. \uf0b7 Although UPL procured the E-Posta System to record all transactions relating to postal services, some services like Home Delivery Services, Post Shop Sales, and Outbound Parcels are still recorded manualy. In addition, there is no interface between Transaction Processing Systems and the Sage financial management system. Manual recording of transactions is prone to abuse and errors |", "metadata": {"page": 243, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | 2020/21 Opinion Unqualified | credibility of the budget negatively. \uf0b7 I noted that RCIP was lagging behind in some activities that would not be completed at the project end. \uf0b7 I noted that all four components did not fully absorb the available funds. Out of the UGX.104.88Bn that was released to RCIP, the Project only utilised UGX.76.52Bn, thus failing to absorb funds to a tune of UGX.28.36Bn representing 27% of the released funds. \uf0b7 It was noted that RCIP set clear performance targets and indicators for some activities to facilitate performance measurement. \uf0b7 I noted that a total of USD.702,415 has so far been paid to the contractor for supply, installation and commissioning of the e-government procurement system, of which a total of USD.198,645 was paid during the year under audit. \uf0b7 Government lost USD.208,156 for receiving quality assurance services for a system that had already been discontinued by Government |\n|---:|-------------:|:----------------------------------------------------------------------------------------------|:------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 7 | Uganda Communication Employees Contributory Pension Scheme (UCECPS) 2020/21 Opinion Qualified | \uf0b7 I noted unsurpported payables amounting to UGX.2,679,752,000. \uf0b7 I noted that eleven (11) properties disclosed as part of the non-core assets were not valued and therefore not included in the value of Non- current assets of the Scheme. \uf0b7 A review and comparison made between the audited financial statements for the period ending 30th June, 2019 and the financial statements for the period ending 30th June, 2020 revealed inconsistencies in the account balances of reserves. \uf0b7 Unsupported and un-reconciled receivables from Uganda Telecom LimiteD (UTL - IN ADMINISTRATION) \uf0b7 I noted that the cash flow statement was misstated. \uf0b7 I noted that out of the budgeted revenue of UGX.12,447,003,444 for the year 2019/2020, only UGX.2,264,969,444 was realised representing a performance of only 18.2% of the target which implied that the Scheme had a deficit of 81.8%. \uf0b7 I noted unbudgeted expenditure totaling to UGX.88,575,000 \uf0b7 I noted diversion of members\u2019 contribution (dc) to pay Defined Benefits |", "metadata": {"page": 243, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | 2020/21 Opinion Unqualified | credibility of the budget negatively. \uf0b7 I noted that RCIP was lagging behind in some activities that would not be completed at the project end. \uf0b7 I noted that all four components did not fully absorb the available funds. Out of the UGX.104.88Bn that was released to RCIP, the Project only utilised UGX.76.52Bn, thus failing to absorb funds to a tune of UGX.28.36Bn representing 27% of the released funds. \uf0b7 It was noted that RCIP set clear performance targets and indicators for some activities to facilitate performance measurement. \uf0b7 I noted that a total of USD.702,415 has so far been paid to the contractor for supply, installation and commissioning of the e-government procurement system, of which a total of USD.198,645 was paid during the year under audit. \uf0b7 Government lost USD.208,156 for receiving quality assurance services for a system that had already been discontinued by Government |\n|---:|:-------------|:------------------------------------------------------------------------------------|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | (DB) liabilities amounting to UGX.4,550,343,000 \uf0b7 | Unnamed: 2 |\n| 1 | 8.0 | Agricultural Credit Facility (ACF) 2020/21 Opinion Unqualiified | \uf0b7 No significant findings. |\n| 2 | | TRADE SECTOR | \uf0b7 |\n| 3 | 1.0 | Quality Infrastructure and Standards Programme (QUISP). 2017/2018 Opinion Qualified | \uf0b7 I observed that a sum of UGX. 80,034,014 and USD. 14,040 was paid to various officers and companies. However, contrary to the guidelines, the expenditure vouchers together with the supporting documents were not availed for audit verification. \uf0b7 Payments amounting to UGX.28,798,048 were paid to officers to enable them carryout various QUISP activities. However, some of the expenditure lacked necessary supporting documents such as activity reports, payee\u2019s acknowledgment and accountability receipts. \uf0b7 The programme had outstanding commitments to the tune of UGX. 373,603,894 as at end of the financial year. According to a letter from the Embassy of Sweden to the Permanent Secretary Ministry of Trade, Industry and Cooperatives dated 27th April, 2017 activities to a tune of UGX. 147,264,493 were authorized to be charged on the QUISP Programme. The entity spent a sum of UGX. 147,468,378 leaving outstanding commitments of UGX. 226,135,516 as indicated in the schedule of outstanding commitments. \uf0b7 I reviewed the Programme bank statements and noted that as at 31st March 2021, UGX. 10,426,029 and USD. 1,973.43 was still on account. Failure to spend funds resulted in partial and non-implementation of planned activities. \uf0b7 I observed that a sum of UGX. 4,038,651 was deducted from two (2) service providers in respect of 6% withholding tax for onward remittance to Uganda Revenue Authority \uf0b7 The project procured 79 assets over the Programme life time. In March 2021, I carried out an inspection of the assets procured under the Programme and noted that 12 were functional, 2 (vehicles) were under repair, 16 were old and beyond repair, 12 were non-functional while 37 were not availed for verification. I could not assess the status of the 37 assets that were not availed. |", "metadata": {"page": 244, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | 2020/21 Opinion Unqualified | credibility of the budget negatively. \uf0b7 I noted that RCIP was lagging behind in some activities that would not be completed at the project end. \uf0b7 I noted that all four components did not fully absorb the available funds. Out of the UGX.104.88Bn that was released to RCIP, the Project only utilised UGX.76.52Bn, thus failing to absorb funds to a tune of UGX.28.36Bn representing 27% of the released funds. \uf0b7 It was noted that RCIP set clear performance targets and indicators for some activities to facilitate performance measurement. \uf0b7 I noted that a total of USD.702,415 has so far been paid to the contractor for supply, installation and commissioning of the e-government procurement system, of which a total of USD.198,645 was paid during the year under audit. \uf0b7 Government lost USD.208,156 for receiving quality assurance services for a system that had already been discontinued by Government |\n|---:|-------------:|:-----------------------------------------------------------|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 2 | Uganda Export Promotions Board 2020/21 Opinion Unqualified | \uf0b7 The entity budgeted to receive UGX.5.813Bn. However, UGX.3.759Bn was warranted, resulting into a shortfall of UGX.2.054Bn, which is 35.4% of the budget. This affected implementation of planned activities. \uf0b7 It was observed that the term of office for the previous Board expired on 5th October 2019, and no replacement Board had been appointed by the time of issuance of my report. This is likely to affect the strategic direction of the entity. For example, I noted that at the time of the audit (June 2021), the entity\u2019s strategic plan was in draft form and was not approved due to the lack of a Board. \uf0b7 I noted that contracts worth UGX.192Mn were awarded to bidders who |", "metadata": {"page": 244, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | 2020/21 Opinion Unqualified | credibility of the budget negatively. \uf0b7 I noted that RCIP was lagging behind in some activities that would not be completed at the project end. \uf0b7 I noted that all four components did not fully absorb the available funds. Out of the UGX.104.88Bn that was released to RCIP, the Project only utilised UGX.76.52Bn, thus failing to absorb funds to a tune of UGX.28.36Bn representing 27% of the released funds. \uf0b7 It was noted that RCIP set clear performance targets and indicators for some activities to facilitate performance measurement. \uf0b7 I noted that a total of USD.702,415 has so far been paid to the contractor for supply, installation and commissioning of the e-government procurement system, of which a total of USD.198,645 was paid during the year under audit. \uf0b7 Government lost USD.208,156 for receiving quality assurance services for a system that had already been discontinued by Government |\n|---:|:-------------|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | did not submit the required documents to evidence the eligibility and administrative compliance as required by regulations and bid documents at the preliminary stage. | Unnamed: 2 |\n| 1 | 3 | Uganda Freezones Authority (UFZA) 2020/21 Opinion Unqualified | \uf0b7 Contrary to Section 15 of the Public Finance Management Act 2015, the Authority overspent to the tune of UGX.635Mn on recruitment and personnel costs in excess of what was approved by the Board. \uf0b7 The entity budgeted to collect NTR amounting to UGX.2.101Bn but was only able to collect UGX.0.06Bn resulting into a shortfall of UGX.2.04Bn, which is 97.13% of the NTR budget. The paltry performance was attributed to COVID19 disruptions. \uf0b7 The development work on 5 acres of land at Entebbe International Airport commenced in September 2020 and works worth UGX.4.146Bn (27%) had been certified as completed as at 30th June 2021. However, the Authority had affected 89% advance payment to NEC as at 29th June 2021, amounting to UGX.15.34Bn and all the advance guarantees staked had expired. \uf0b7 Although the Authority has taken possession of 109 acres of land at Buwaya purchased at UGX.7.6Bn and 5 acres of land at Entebbe International Airport purchased at UGX.850Mn, it still lacks land titles to confirm legal ownership. |", "metadata": {"page": 245, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | 2020/21 Opinion Unqualified | credibility of the budget negatively. \uf0b7 I noted that RCIP was lagging behind in some activities that would not be completed at the project end. \uf0b7 I noted that all four components did not fully absorb the available funds. Out of the UGX.104.88Bn that was released to RCIP, the Project only utilised UGX.76.52Bn, thus failing to absorb funds to a tune of UGX.28.36Bn representing 27% of the released funds. \uf0b7 It was noted that RCIP set clear performance targets and indicators for some activities to facilitate performance measurement. \uf0b7 I noted that a total of USD.702,415 has so far been paid to the contractor for supply, installation and commissioning of the e-government procurement system, of which a total of USD.198,645 was paid during the year under audit. \uf0b7 Government lost USD.208,156 for receiving quality assurance services for a system that had already been discontinued by Government |\n|---:|-------------:|:------------------------------------------------------------------------------|:------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 4 | Uganda Warehouse Receipt System Authority (UWRSA) 2020/21 Opinion Unqualified | \uf0b7 The Uganda Warehouse Receipt System Authority had an approved budget of UGX.8,904,499,400 for the year. A review of the entity\u2019s receipts, cashbook and bank statement for the period ending 30th June 2021 revealed that UGX.8,035,212,980 was received under the normal budget appropriation \uf0b7 Whereas the overall Government National Development Plan (NDP II1) 2020/2021-2024/2025 was commissioned in the year under review, UWRSA had no approved strategic plan for the period under review \uf0b7 I noted that the entity did not budget for any tax revenue despite collecting 84 million. Failure to budget for NTR conceals the entity\u2019s potential collect revenue and also complicates assessment of performance since there is no benchmark. \uf0b7 I noted that out of the budgeted revenue of UGX. 8.899Bn from the Central Government for 2020/2021, and only UGX. 8.035Bn was received, representing a performance of only 90 % of the release. \uf0b7 The entity had a cash balance brought forward of UGX.134,172,095 from FY 2019/2020 and received UGX.8,035,212,980 making total cash available for spending in FY 20/21 of UGX.8,169,385,075. Out of the total cash available to spend, only UGX.3,730,897,866 was actually spent by the entity, representing an absorption level of 46%. This resulted into a balance of UGX.4,438,487,209 (54%) as unspent funds. \uf0b7 I compared the consolidated procurement plan, monthly procurement reports and procurement files availed and established that a number of procurements worth UGX.2,621,000,000 were not completed as of 30th June 2021. \uf0b7 Failure to implement planned activities despite availability of funds. \uf0b7 I noted that the Board sat only once during the year under review on 16th September 2020. I also noted that the Chairperson of the meeting did not sign the minutes for the meeting. \uf0b7 I noted that the Board had not developed some governance policies, manuals and other documents that would help in the smooth running of |", "metadata": {"page": 245, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | 2020/21 Opinion Unqualified | credibility of the budget negatively. \uf0b7 I noted that RCIP was lagging behind in some activities that would not be completed at the project end. \uf0b7 I noted that all four components did not fully absorb the available funds. Out of the UGX.104.88Bn that was released to RCIP, the Project only utilised UGX.76.52Bn, thus failing to absorb funds to a tune of UGX.28.36Bn representing 27% of the released funds. \uf0b7 It was noted that RCIP set clear performance targets and indicators for some activities to facilitate performance measurement. \uf0b7 I noted that a total of USD.702,415 has so far been paid to the contractor for supply, installation and commissioning of the e-government procurement system, of which a total of USD.198,645 was paid during the year under audit. \uf0b7 Government lost USD.208,156 for receiving quality assurance services for a system that had already been discontinued by Government |\n|---:|:-------------|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | the Authority. \uf0b7 The Authority received from the Treasury UGX.13,237,853,910 for the last three financial years to deliver its mandate; however, no tangible results are indicating that it is effective. \uf0b7 I established that procurements worth UGX.62,390,000 were implemented during the year, and yet they were not in the Authority\u2019s consolidated procurement plan. | Unnamed: 2 |\n| 1 | 5 | Competitiveness and Enterprise Development Project (CEDP) Component 2-5 IDA Credit Agreement CR 52690-UG PROJECT ID P130471. 2020/21 Opinion Unqualified | \uf0b7 Competitiveness Enterprise Development Project (CEDP) approved budget for the Financial Year 2020/2021 was UGX.24.18Bn Comprising: UGX.23.5Bn IDA funding and UGX.742.3Mn GoU contributions. Expenditure was UGX.17.4Bn, yielding a 72% budget performance. \uf0b7 The facility's construction certified completed civil works was at 95% on 28th November 2021, and that out of the contract amount of UGX.46,168,410,564, a total of UGX.38,463,565,811 (83.3%) has been paid so far. \uf0b7 The construction of the Building works at UHTTI was expected to be completed by 25th April 2019, and several extensions were entered into up to 30th June 2021. By the time of my field inspection, construction was still ongoing. |\n| 2 | 6 | Great Lakes Trade Facilitation Project (GLTFP). 2020/21 Opinion Unqualified | \uf0b7 I noted that the project management had failed to achieve its objectives by the initial project closure date of 31st December 2020. \uf0b7 As at 30th June 2021, a total of UGX.6.862Bn representing 62% was available for spending as indicated in the Statement of Financial performance leaving a budget deficit of UGX.4.106Bn representing 38%. \uf0b7 Audit noted that out of UGX.6.862Bn total funds available for use during the year, the project managed to utilize UGX.4.423Bn in the implementation of various project activities, leaving an unspent balance of UGX.2.439Bn (25% of the available funding). |", "metadata": {"page": 246, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | 2020/21 Opinion Unqualified | credibility of the budget negatively. \uf0b7 I noted that RCIP was lagging behind in some activities that would not be completed at the project end. \uf0b7 I noted that all four components did not fully absorb the available funds. Out of the UGX.104.88Bn that was released to RCIP, the Project only utilised UGX.76.52Bn, thus failing to absorb funds to a tune of UGX.28.36Bn representing 27% of the released funds. \uf0b7 It was noted that RCIP set clear performance targets and indicators for some activities to facilitate performance measurement. \uf0b7 I noted that a total of USD.702,415 has so far been paid to the contractor for supply, installation and commissioning of the e-government procurement system, of which a total of USD.198,645 was paid during the year under audit. \uf0b7 Government lost USD.208,156 for receiving quality assurance services for a system that had already been discontinued by Government |\n|---:|-------------:|:-------------------------------------------------------------------------|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 7 | Ministry of Trade, Industry and Cooperatives 2020/21 Opinion Unqualified | \uf0b7 I reviewed the approved revenue estimates for the financial year 2020/2021 and noted that the Ministry budgeted to receive Revenue of UGX.233.147Bn during the year under review. The entity received UGX.230.417Bn as releases from the consolidated fund representing the overall performance of 98%. \uf0b7 The Ministry budgeted to collect UGX.0.072Bn but realised UGX.0.053Bn, hence a shortfall of UGX.0.019Bn representing 25.4% of the budget. \uf0b7 Out of UGX.230.417Bn released for various activities, UGX.229.123Bn was spent by the entity resulting into an unspent balance of UGX.1.294Bn representing an absorption level of 99%. \uf0b7 Analysis of the vote performance revealed that a number of programs remained outstanding at the year-end, leaving a total unspent balance of UGX.2.0726Bn. \uf0b7 The entity charged different expenditure codes for several expenditure items from those stipulated in the chart of accounts. This resulted in mischarging of expenditures worth UGX.81,083,608. \uf0b7 Analysis of domestic arrears over the past three years has shown an upward trend in arrears from UGX.10.4Bn in 2018/19 to UGX.19.4Bn in 2020/21. \uf0b7 I observed that the Ministry had not paid verified domestic arrears worth |", "metadata": {"page": 246, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | 2020/21 Opinion Unqualified | credibility of the budget negatively. \uf0b7 I noted that RCIP was lagging behind in some activities that would not be completed at the project end. \uf0b7 I noted that all four components did not fully absorb the available funds. Out of the UGX.104.88Bn that was released to RCIP, the Project only utilised UGX.76.52Bn, thus failing to absorb funds to a tune of UGX.28.36Bn representing 27% of the released funds. \uf0b7 It was noted that RCIP set clear performance targets and indicators for some activities to facilitate performance measurement. \uf0b7 I noted that a total of USD.702,415 has so far been paid to the contractor for supply, installation and commissioning of the e-government procurement system, of which a total of USD.198,645 was paid during the year under audit. \uf0b7 Government lost USD.208,156 for receiving quality assurance services for a system that had already been discontinued by Government |\n|---:|:-------------|:------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | UGX.16.743Bn. \uf0b7 I noted that the Ministry accrued domestic arrears worth UGX.242Mn during the financial year. \uf0b7 I noted that a total of UGX.159,543,267 paid to service providers and advances to various staff was not adequately supported with accountabilities and supporting documents such as requisitions, receipts, activity reports, minutes of meetings. \uf0b7 Payments amounting to UGX.73Mn were advanced to personal accounts of staff to make onward payments to suppliers for services like office internet, hotels, workshop related expenditure, among others. \uf0b7 I noted that as of 30th June 2021, several compensations claim worth UGX.165Bn by some Cooperative Societies had not been verified. There was also no evidence that verification teams had been constituted to undertake the verification exercise. \uf0b7 Examination of records revealed that for some Cooperatives, the amounts to be paid as compensation for war losses were in excess of the amounts originally claimed by the Cooperatives. \uf0b7 I noted that payments amounting to UGX.14Bn were made to persons and law firms other than the beneficiary Cooperative Societies. \uf0b7 review of the procurement processes revealed that, for eight (8) procurements valued at UGX.282,626,237, the estimated market prices approved by the Accounting Officer on Form 5, were the same as those quoted by the best-evaluated bidder and subsequently awarded. I observed that the evaluation committee and Contracts committees did not detect the questionable coincidence. \uf0b7 The ministry acquired a lease on an already existing lease for land and subsequent loss of funds. | Unnamed: 2 |", "metadata": {"page": 247, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | 2020/21 Opinion Unqualified | credibility of the budget negatively. \uf0b7 I noted that RCIP was lagging behind in some activities that would not be completed at the project end. \uf0b7 I noted that all four components did not fully absorb the available funds. Out of the UGX.104.88Bn that was released to RCIP, the Project only utilised UGX.76.52Bn, thus failing to absorb funds to a tune of UGX.28.36Bn representing 27% of the released funds. \uf0b7 It was noted that RCIP set clear performance targets and indicators for some activities to facilitate performance measurement. \uf0b7 I noted that a total of USD.702,415 has so far been paid to the contractor for supply, installation and commissioning of the e-government procurement system, of which a total of USD.198,645 was paid during the year under audit. \uf0b7 Government lost USD.208,156 for receiving quality assurance services for a system that had already been discontinued by Government |\n|---:|-------------:|:-----------------------------------------------------------------|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 8 | Uganda National Bureau of Standards. 2020/21 Opinion Unqualified | \uf0b7 The Beareau was unable to activate the use of the Digital Tracking System (DTS) to enforce conformity to standards of selected items and claim the associated fees due to absence of an enabling regulation to operationalise the Service. As a result, the Buereau was unable to claim for a total of UGX.13Bn charged on goods and services for conformity stamps issued by the provider towards conformity enforcement. There is a risk of misuse of the amounts involced by the private provider. \uf0b7 The Bureau released 366 consignments without testing due to lack of capacity and another 633 consignments released due to the absence of standards to test these commodities for conformity. Lack of capacity may lead to the release of sub-standard products to the market. \uf0b7 I noted that out of the approved staff structure of 666 positions, the Bureau had only filled 439, leaving a staffing gap of 227 (34 %). As a result, there was staff presence at only 27 out of the 170 border entry points. There is a risk of sub-standard goods entering the country through border points where the Bureau staffs are not present. \uf0b7 It was noted that procurements to the tune of UGX.2.735Bn were not completed as of 30th June 2021. This was attributed to several reasons, including failure to attract competitive bidders for some procruements, delayed submission of clear specifications, especially for specialised equipment, late submissions/ initiations of procurement requisitions by the users, as well as delayed deliveries due to COVID-19 especially for specialised Equipment. Un implemented activities imply that the provision of critical government programs and associated services were delayed. |", "metadata": {"page": 247, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 9 | Uganda Development Corporation (UDC). 2020/21 Opinion Unqualified | \uf0b7 Out of the total funds received of UGX.137.27Bn only UGX.63.39Bn was spent by the entity during the year, resulting into an unspent balance of UGX.73.88Bn representing an absorption level of only 46%. I noted that out of the 17 development project activities planned to be implemented during the period under review, only (3) three development projects were fully implemented, while Five (5) development projects were partially implemented, Eleven (11) projects were not implemented at all. Failure to fully absorb funds by the Corporation, leads to non-achievement of development objectives. \uf0b7 The UDC Act 2016 requires capitalisation of UDC to the tune of UGX.500Bn. The same Act also established an Industrial and Economic Development Fund which was to be run by the UDC. However, 5 years later, the company has never been capitalised to that tune; currently the capitalisation grants have accumulated to UGX.311Bn and the Industrial and Economic Development Fund has never been operationalized. The current funding model, is such that capitalisation grants over the years come assigned to specific projects which nullifies the investment appraisal process of UDC. This has the disadvantage of earmarking funds for investments that are not ready or even viable leading to the low absorption noted above. \uf0b7 An amount of UGX.30.46Bn was invested in various companies by UDC during the year without valuation. Shareholding in these companies had not been secured by the time of reporting. There is a risk of loss of value. \uf0b7 Although the UDC Act 2016 provides that the Corporation will take over the interest of government in seven entities specified in schedule 2 and to manage, promote and facilitate the interest of the government in those entities, 5 years later, this had not been done except for Nile Hotel Limited. The other entities include: Amber House Limited, Embassy House, Development House, Munyonyo Commonwealth Resort, Phoenix Logistics and Tri-Star Apparels Limited. There is a risk of loss of strategic direction and government may not be aware whether the national objectives of import substitution, employment and industrialization are being met by these entities. |\n|---:|----:|:--------------------------------------------------------------------|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 10 | Uganda Investment Authority. 2020/21 Opinion Unqualified | \uf0b7 The Authority received off-budget financing to a tune of UGX.50.43Bn, which was not transferred to the consolidated fund as required by law. These funds were received directly from development partners to the EPC contractor for the Development of infrastructure at Kampala Industrial and Business Park, Namanve. Off-budget financing distorts planning, may result into duplication of activities and is contrary to the Public finance Management Act 2015. \uf0b7 The approved budget estimates for the Authority for the financial year 2020/2021 indicated that only UGX.22Mn out of UGX.2.411Bn was budgeted towards the settlement of domestic arrears. The arrears balance of UGX.2.389Bn was therefore not budgeted for settlement. Failure to provide resources for the accumulated arrears increases outstanding obligations. \uf0b7 The Authority continued to accumulate domestic arrears with a total of UGX.1.768Bn incurred in the financial year under review, without clearing outstanding arrears from the previous financial year 2019/2020 of UGX.2.411Bn. The total accumulated domestic arrears stood at UGX.4.18Bn at 30th June 2021. This is an indicator of non adherence with the commitment control system of government. \uf0b7 During inspections countrywide, I observed that the industrial parks lack or had inadequate infrastructures like roads, solid waste and sewage |", "metadata": {"page": 248, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 9 | Uganda Development Corporation (UDC). 2020/21 Opinion Unqualified | \uf0b7 Out of the total funds received of UGX.137.27Bn only UGX.63.39Bn was spent by the entity during the year, resulting into an unspent balance of UGX.73.88Bn representing an absorption level of only 46%. I noted that out of the 17 development project activities planned to be implemented during the period under review, only (3) three development projects were fully implemented, while Five (5) development projects were partially implemented, Eleven (11) projects were not implemented at all. Failure to fully absorb funds by the Corporation, leads to non-achievement of development objectives. \uf0b7 The UDC Act 2016 requires capitalisation of UDC to the tune of UGX.500Bn. The same Act also established an Industrial and Economic Development Fund which was to be run by the UDC. However, 5 years later, the company has never been capitalised to that tune; currently the capitalisation grants have accumulated to UGX.311Bn and the Industrial and Economic Development Fund has never been operationalized. The current funding model, is such that capitalisation grants over the years come assigned to specific projects which nullifies the investment appraisal process of UDC. This has the disadvantage of earmarking funds for investments that are not ready or even viable leading to the low absorption noted above. \uf0b7 An amount of UGX.30.46Bn was invested in various companies by UDC during the year without valuation. Shareholding in these companies had not been secured by the time of reporting. There is a risk of loss of value. \uf0b7 Although the UDC Act 2016 provides that the Corporation will take over the interest of government in seven entities specified in schedule 2 and to manage, promote and facilitate the interest of the government in those entities, 5 years later, this had not been done except for Nile Hotel Limited. The other entities include: Amber House Limited, Embassy House, Development House, Munyonyo Commonwealth Resort, Phoenix Logistics and Tri-Star Apparels Limited. There is a risk of loss of strategic direction and government may not be aware whether the national objectives of import substitution, employment and industrialization are being met by these entities. |\n|---:|:-----------|:------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | management systems, power supply, street lights etc. The Parks have been characterized by encroachment, farming and cattle grazing, degradation of nearby swamps, unallocated land, idle land allocated to unserious investors and misunderstandings between investors and park management staff. Most roads are impassable and with inadequate lighting which exposes the parks to thefts and insecurity. I observed that some factories in the parks have set up their own infrastructure which may not be sustainable, and to the desired standards. This may negatively affect the usage and utilization of the parks. \uf0b7 The Authority lacks regulations required under Section 38(1) of the Investment Code Act to operationalize the statute. This may hinder the smooth implementation of the Act which is meant to create an investment enabling environment. \uf0b7 Although the Authority has 124 approved positions, only 78 (i.e. 62.9%) are filled, leaving 46 (37.1%) vacant positions. Among the vacant positions include 24 unfilled positions that are from the core Directorate of Investment which is the backbone of UIA. Understaffing undermines service delivery. | Unnamed: 2 |\n| 1 | | TOURISM SECTOR | \uf0b7 |\n| 2 | 1.0 | Uganda Hotel and Tourism Training Institute (UHTII) 2020/21 Opinion Unqualified | \uf0b7 Management failed to collect tuition fees and accumulated receivables to the tune of UGX.460Mn by close of the financial year, with some debts dating as far back as 2014. I observed that some students who had not cleared fees had completed their studies, graduated and even obtained their certificates rendering such receivables uncollectible. \uf0b7 I noted that the entity had prepared a new strategic plan, but had no proof of certification and approval of its plan by NPA. Management explained that the exercise was interrupted by Covid-19 Lock down and closure of schools. \uf0b7 Out of 175 approved posts for the Institute, only 127 were filled, resulting into a staffing gap of forty-eight (48) positions. Furthermore, seven (7) positions were filled by staff in an acting capacity including the Position of the Principal. Staffing gaps limit the Institute\u2019s ability to effectively deliver the intended services. |", "metadata": {"page": 249, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 9 | Uganda Development Corporation (UDC). 2020/21 Opinion Unqualified | \uf0b7 Out of the total funds received of UGX.137.27Bn only UGX.63.39Bn was spent by the entity during the year, resulting into an unspent balance of UGX.73.88Bn representing an absorption level of only 46%. I noted that out of the 17 development project activities planned to be implemented during the period under review, only (3) three development projects were fully implemented, while Five (5) development projects were partially implemented, Eleven (11) projects were not implemented at all. Failure to fully absorb funds by the Corporation, leads to non-achievement of development objectives. \uf0b7 The UDC Act 2016 requires capitalisation of UDC to the tune of UGX.500Bn. The same Act also established an Industrial and Economic Development Fund which was to be run by the UDC. However, 5 years later, the company has never been capitalised to that tune; currently the capitalisation grants have accumulated to UGX.311Bn and the Industrial and Economic Development Fund has never been operationalized. The current funding model, is such that capitalisation grants over the years come assigned to specific projects which nullifies the investment appraisal process of UDC. This has the disadvantage of earmarking funds for investments that are not ready or even viable leading to the low absorption noted above. \uf0b7 An amount of UGX.30.46Bn was invested in various companies by UDC during the year without valuation. Shareholding in these companies had not been secured by the time of reporting. There is a risk of loss of value. \uf0b7 Although the UDC Act 2016 provides that the Corporation will take over the interest of government in seven entities specified in schedule 2 and to manage, promote and facilitate the interest of the government in those entities, 5 years later, this had not been done except for Nile Hotel Limited. The other entities include: Amber House Limited, Embassy House, Development House, Munyonyo Commonwealth Resort, Phoenix Logistics and Tri-Star Apparels Limited. There is a risk of loss of strategic direction and government may not be aware whether the national objectives of import substitution, employment and industrialization are being met by these entities. |\n|---:|----:|:-------------------------------------------------------------------------|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 2 | Uganda Hotel and Tourism Training Institute. 2019/20 Opinion Unqualified | \uf0b7 I noted that the budget is not aligned to the specific outputs and therefore, I could not analyze the outputs achieved and planned in line with the approved budget. \uf0b7 I noted that at the time of the audit (June 2020), out of the planned eight (8) strategic targets/goals, one (1) target had been fully achieved, six (6) were partially achieved while one (1) target was not achieved at all. \uf0b7 The entity budgeted to collect NTR of UGX.2,064,355,474 during the year under review but only UGX.1,146,143,225 was collected. \uf0b7 Out of the total receipts for the financial year of UGX.5.296 billion, UGX.4.774Bn was spent. \uf0b7 I noted that the entity had outstanding receivables totalling to UGX.181,480,747 \uf0b7 Failure to Develop Performance Agreements/targets for Senior Managers. \uf0b7 The Institute procured assorted items valued at UGX.36,097,220, however, I was not provided with stores documentation such as Ledgers, |", "metadata": {"page": 249, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 9 | Uganda Development Corporation (UDC). 2020/21 Opinion Unqualified | \uf0b7 Out of the total funds received of UGX.137.27Bn only UGX.63.39Bn was spent by the entity during the year, resulting into an unspent balance of UGX.73.88Bn representing an absorption level of only 46%. I noted that out of the 17 development project activities planned to be implemented during the period under review, only (3) three development projects were fully implemented, while Five (5) development projects were partially implemented, Eleven (11) projects were not implemented at all. Failure to fully absorb funds by the Corporation, leads to non-achievement of development objectives. \uf0b7 The UDC Act 2016 requires capitalisation of UDC to the tune of UGX.500Bn. The same Act also established an Industrial and Economic Development Fund which was to be run by the UDC. However, 5 years later, the company has never been capitalised to that tune; currently the capitalisation grants have accumulated to UGX.311Bn and the Industrial and Economic Development Fund has never been operationalized. The current funding model, is such that capitalisation grants over the years come assigned to specific projects which nullifies the investment appraisal process of UDC. This has the disadvantage of earmarking funds for investments that are not ready or even viable leading to the low absorption noted above. \uf0b7 An amount of UGX.30.46Bn was invested in various companies by UDC during the year without valuation. Shareholding in these companies had not been secured by the time of reporting. There is a risk of loss of value. \uf0b7 Although the UDC Act 2016 provides that the Corporation will take over the interest of government in seven entities specified in schedule 2 and to manage, promote and facilitate the interest of the government in those entities, 5 years later, this had not been done except for Nile Hotel Limited. The other entities include: Amber House Limited, Embassy House, Development House, Munyonyo Commonwealth Resort, Phoenix Logistics and Tri-Star Apparels Limited. There is a risk of loss of strategic direction and government may not be aware whether the national objectives of import substitution, employment and industrialization are being met by these entities. |\n|---:|:-----------|:-------------------------------------------------------------------------------------|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | Stock cards and Goods Received Notes. | Unnamed: 2 |\n| 1 | 3 | Uganda Wildlife Education Conservation Centre (UWEC). 2019/20 Opinion Unqualified | \uf0b7 Out of the 29 quantified outputs/activities assessed, 20 outputs/activities representing 69% were fully implemented; 4 outputs/activities representing 14% were partially implemented while 5 outputs/activities representing 17% were not implemented at all. \uf0b7 I noted that out of the budgeted NTR of UGX.5,360,000,000; only UGX.3,737,222,734 was collected representing performance of only 70% of the target. \uf0b7 I noted that the construction of the floating restaurant stalled. To date, the project is still at the first-floor stage and has since not been opened to the public. \uf0b7 A review of UWEC records revealed that UGX.6.6million was spent for resurveying the land on which the Centre is located. However, by the time of audit, the title had not been transferred to the Centre\u2019s names. |\n| 2 | 4 | Uganda Wildlife Research and Training Institute (UWRTI). 2019/20 Opinion Unqualified | \uf0b7 I observed that out of the budgeted NTR of UGX.435,000,000, only UGX.328,287,026 was collected representing a performance of 75% of the target. \uf0b7 I noted that although the entity received more funds than were budgeted some of the activities remained either partially or not implemented at all. \uf0b7 I observed that UGX.52,224,850 was paid directly to staff accounts to procure particular items or pay other staff members yet the funds in question, could have been paid directly to the intended final beneficiaries. \uf0b7 A review of the staffing structures for the UWRTI revealed that, out of the total approved structure of 46 staff, only 23 (50%) positions were filled while 23 (50%) positions had not yet been filled. \uf0b7 I noted that several direct procurements amounting to UGX.122,943,179 were made by the entity without justification for use of the direct procurement method. \uf0b7 I observed that the Governing Council is not fully constituted, since a representative of the Academic Board has not been nominated. |", "metadata": {"page": 250, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 9 | Uganda Development Corporation (UDC). 2020/21 Opinion Unqualified | \uf0b7 Out of the total funds received of UGX.137.27Bn only UGX.63.39Bn was spent by the entity during the year, resulting into an unspent balance of UGX.73.88Bn representing an absorption level of only 46%. I noted that out of the 17 development project activities planned to be implemented during the period under review, only (3) three development projects were fully implemented, while Five (5) development projects were partially implemented, Eleven (11) projects were not implemented at all. Failure to fully absorb funds by the Corporation, leads to non-achievement of development objectives. \uf0b7 The UDC Act 2016 requires capitalisation of UDC to the tune of UGX.500Bn. The same Act also established an Industrial and Economic Development Fund which was to be run by the UDC. However, 5 years later, the company has never been capitalised to that tune; currently the capitalisation grants have accumulated to UGX.311Bn and the Industrial and Economic Development Fund has never been operationalized. The current funding model, is such that capitalisation grants over the years come assigned to specific projects which nullifies the investment appraisal process of UDC. This has the disadvantage of earmarking funds for investments that are not ready or even viable leading to the low absorption noted above. \uf0b7 An amount of UGX.30.46Bn was invested in various companies by UDC during the year without valuation. Shareholding in these companies had not been secured by the time of reporting. There is a risk of loss of value. \uf0b7 Although the UDC Act 2016 provides that the Corporation will take over the interest of government in seven entities specified in schedule 2 and to manage, promote and facilitate the interest of the government in those entities, 5 years later, this had not been done except for Nile Hotel Limited. The other entities include: Amber House Limited, Embassy House, Development House, Munyonyo Commonwealth Resort, Phoenix Logistics and Tri-Star Apparels Limited. There is a risk of loss of strategic direction and government may not be aware whether the national objectives of import substitution, employment and industrialization are being met by these entities. |\n|---:|----:|:------------------------------------------------------------------------------------------------------------------------|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 5 | The Handicraft and Souvenir Development Project (HSDP) in Uganda for the year ended 31 st Dec 2020. Opinion Unqualified | \uf0b7 I noted that cumulatively a total of USD.940,460.00 had been disbursed to the Project by 31st December 2020, out of which USD.430,916.94 had been utilized, leaving a closing balance of USD.509,543.06 as at 31st December 2020. \uf0b7 It was also noted that no activity had been fully implemented/completed as of the time of this audit as they all remained either partially achieved or not achieved at all. |\n| 1 | 6 | Nile Hotel 2020/21 Opinion Unqualified | \uf0b7 I noted that out of the budgeted revenue of UGX.2.041Bn from Concession fees and Investment income from fixed deposits, only UGX.1.191Bn was received, representing a performance of only 58% of the target. Failure to realise all budgeted revenue affects the implementation of planned activities. This was attributed to the effects of the COVID19 pandemic on the Tourism sector. \uf0b7 I noted that the entity is not in possession and is not aware of the exact whereabouts of the land title to the land on which Serena Hotel Kampala, is seated. The land is located on Plot 16-20 Nile avenue measuring 19.3 acres. The land is listed as part of the assets in the concession agreement |", "metadata": {"page": 250, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 9 | Uganda Development Corporation (UDC). 2020/21 Opinion Unqualified | \uf0b7 Out of the total funds received of UGX.137.27Bn only UGX.63.39Bn was spent by the entity during the year, resulting into an unspent balance of UGX.73.88Bn representing an absorption level of only 46%. I noted that out of the 17 development project activities planned to be implemented during the period under review, only (3) three development projects were fully implemented, while Five (5) development projects were partially implemented, Eleven (11) projects were not implemented at all. Failure to fully absorb funds by the Corporation, leads to non-achievement of development objectives. \uf0b7 The UDC Act 2016 requires capitalisation of UDC to the tune of UGX.500Bn. The same Act also established an Industrial and Economic Development Fund which was to be run by the UDC. However, 5 years later, the company has never been capitalised to that tune; currently the capitalisation grants have accumulated to UGX.311Bn and the Industrial and Economic Development Fund has never been operationalized. The current funding model, is such that capitalisation grants over the years come assigned to specific projects which nullifies the investment appraisal process of UDC. This has the disadvantage of earmarking funds for investments that are not ready or even viable leading to the low absorption noted above. \uf0b7 An amount of UGX.30.46Bn was invested in various companies by UDC during the year without valuation. Shareholding in these companies had not been secured by the time of reporting. There is a risk of loss of value. \uf0b7 Although the UDC Act 2016 provides that the Corporation will take over the interest of government in seven entities specified in schedule 2 and to manage, promote and facilitate the interest of the government in those entities, 5 years later, this had not been done except for Nile Hotel Limited. The other entities include: Amber House Limited, Embassy House, Development House, Munyonyo Commonwealth Resort, Phoenix Logistics and Tri-Star Apparels Limited. There is a risk of loss of strategic direction and government may not be aware whether the national objectives of import substitution, employment and industrialization are being met by these entities. |\n|---:|:-----------|:-----------------------------------------------------------------------------------------------------------------------------------------------|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | that was signed between the Government of Uganda and TPS Uganda Limited and was leased by ULC and Nile Hotel International Ltd (NHIL) in 1995. | Unnamed: 2 |", "metadata": {"page": 251, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 9 | Uganda Development Corporation (UDC). 2020/21 Opinion Unqualified | \uf0b7 Out of the total funds received of UGX.137.27Bn only UGX.63.39Bn was spent by the entity during the year, resulting into an unspent balance of UGX.73.88Bn representing an absorption level of only 46%. I noted that out of the 17 development project activities planned to be implemented during the period under review, only (3) three development projects were fully implemented, while Five (5) development projects were partially implemented, Eleven (11) projects were not implemented at all. Failure to fully absorb funds by the Corporation, leads to non-achievement of development objectives. \uf0b7 The UDC Act 2016 requires capitalisation of UDC to the tune of UGX.500Bn. The same Act also established an Industrial and Economic Development Fund which was to be run by the UDC. However, 5 years later, the company has never been capitalised to that tune; currently the capitalisation grants have accumulated to UGX.311Bn and the Industrial and Economic Development Fund has never been operationalized. The current funding model, is such that capitalisation grants over the years come assigned to specific projects which nullifies the investment appraisal process of UDC. This has the disadvantage of earmarking funds for investments that are not ready or even viable leading to the low absorption noted above. \uf0b7 An amount of UGX.30.46Bn was invested in various companies by UDC during the year without valuation. Shareholding in these companies had not been secured by the time of reporting. There is a risk of loss of value. \uf0b7 Although the UDC Act 2016 provides that the Corporation will take over the interest of government in seven entities specified in schedule 2 and to manage, promote and facilitate the interest of the government in those entities, 5 years later, this had not been done except for Nile Hotel Limited. The other entities include: Amber House Limited, Embassy House, Development House, Munyonyo Commonwealth Resort, Phoenix Logistics and Tri-Star Apparels Limited. There is a risk of loss of strategic direction and government may not be aware whether the national objectives of import substitution, employment and industrialization are being met by these entities. |\n|---:|----:|:--------------------------------------------------------------------|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 7 | Uganda Wildlife Authority. 2020/21 Opinion Unqualified | \uf0b7 This being the first year of implementation of the NDP-III, the entity was expected to prepare a strategic plan aligned to NDP III and ensure that the plan was approved. \uf0b7 I reviewed the NTR estimates, revenue sources and rates charged at vote level for the financial year 2020/2021 and noted that the entity budgeted to collect NTR of UGX.82.Bn (Exclusive of UGX.30Bn prior-year surplus approved for re-investment during the year under review). \uf0b7 The entity budgeted to receive UGX.6.24Bn from donors, however, UGX.5.74Bn was realized, resulting into a shortfall of UGX.501Mn (8%) of the budget. \uf0b7 The entity budgeted to receive UGX.0.72Bn, out of which UGX.0.762Bn was received, resulting into an excess receipt of UGX.0.042Bn, representing 5.8% of the budget \uf0b7 I noted that Management re-assessed its revenue performance and requested the Board to approve a contingency plan to limit the expenditure of the Authority to only UGX.72.595Bn in line with the reduced revenue collections to finance only priority activities in the original approved budget of UGX.119.469Bn for FY 2020-2021. \uf0b7 I noted that the Authority prepared and submitted all the quarterly reports to the line ministry. However, there were delays in submission of Q1, Q2 & Q4 performance reports due to the effect of the covid-19 pandemic. \uf0b7 I noted decreasing Tourism Revenues due to Covid-19 Effect. \uf0b7 It was observed that the Authority has a total outstanding receivables balance of UGX.3.303Bn in the statement of financial position, of which UGX.2.244Bn are unpaid overdue fees from concessionaires that have been outstanding for more than a year. \uf0b7 It was noted that the entity has outstanding payables of UGX.71.655Bn in the statement of financial position of which UGX.8.422Bn are accrued staff gratuity that becomes due at the end of each staff\u2019s four year contract. \uf0b7 UWA had only disbursed UGX.642,455,690 in respect of revenue sharing for the surrounding communities in Lake Mburo National Park, leaving a balance of UGX.9,697,730,137 un-disbursed. \uf0b7 The Accountabilities of the disbursed grants have not yet been availed by the beneficiary communities through to the district local governments by the time of audit on 3rd November 2021. \uf0b7 I noted that whereas the Human Resource unit is critical in managing staff-related affairs, it is only situated at the headquarters and comprises five (5) staff. \uf0b7 Non-integration of gorilla booking system to the accounting system. \uf0b7 It was noted that most of the Protected Areas in Uganda are currently undergoing ecosystem changes as rangeland infestation by invasive and exotic plant species. |\n| 1 | 8 | Wildlife Research and Training Institute 2020/21 | \uf0b7 I reviewed the NTR estimates, revenue sources and rates charged at vote level for the financial year 2020/2021 and noted that the entity budgeted to collect NTR of UGX.0.495Bn during the year under review. Out of this, |", "metadata": {"page": 251, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Opinion Unqualified | only UGX.0.200Bn was collected, representing a performance of 40.6% of the target. \uf0b7 The entity budgeted to receive UGX.3.931Bn during the period, out of which UGX.2.531Bn was warranted, resulting into a shortfall of UGX.1.4Bn, which is 36% of the budget. \uf0b7 A review of the staffing structure for UWRTI revealed that out of the total approved structure of 47 staff, only 23 (49%) positions were filled and 24 positions (51%) had not yet been filled. \uf0b7 A review of the procurement files revealed that the Institute awarded contracts to various providers totalling UGX.519Mn without carrying out market assessments/surveys. |\n|---:|-------------:|:---------------------------------------------------------------------------|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 9 | Uganda Wildlife Education Conservation Centre. 2020/21 Opinion Unqualified | \uf0b7 I noted that UWEC is one of the entities affected by the Government rationalisation policy on mergers anticipated to be concluded in 2023. By the time of reporting, discussions on transitional arrangements were ongoing. However, I was not provided with the transitional plans for a smooth merger. Delayed decision making leads to costly mergers and uncertainity amonst the stakeholders. \uf0b7 Five (5) procurements with a total value of UGX.3.239Bn were not implemented as planned due to insufficient release of funds from GOU and the adverse effects of the covid-19 pandemic resulting into delayed service delivery. \uf0b7 Although some electronic equipment and motor vehicles at cost of UGX.331Mn had been fully depreciated as per the previous financial year, they were still in use. Under the circumstances, the benefits accruing from them are not matched with their usage/expenditure. Management explained that the revaluation of assets had started, but COVID \u2013 19 effects hindered the process. |", "metadata": {"page": 252, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Opinion Unqualified | only UGX.0.200Bn was collected, representing a performance of 40.6% of the target. \uf0b7 The entity budgeted to receive UGX.3.931Bn during the period, out of which UGX.2.531Bn was warranted, resulting into a shortfall of UGX.1.4Bn, which is 36% of the budget. \uf0b7 A review of the staffing structure for UWRTI revealed that out of the total approved structure of 47 staff, only 23 (49%) positions were filled and 24 positions (51%) had not yet been filled. \uf0b7 A review of the procurement files revealed that the Institute awarded contracts to various providers totalling UGX.519Mn without carrying out market assessments/surveys. |\n|---:|-------------:|:----------------------------------------------------------------------------|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 10 | Ministry of Tourism, Wildlife and Antiquities. 2020/21. Opinion Unqualified | \uf0b7 The entity budgeted to receive UGX.27.408Bn out of which UGX.22.934Bn was warranted, resulting into a shortfall of UGX.4.474Bn which is 16.3% of the budget. This affected implementation of planned activities. I further noted that the Ministry did not seek a revision of its budget and work plan, as provided for by Section 17 (3) of the PFMA 2015, following the revenue shortfall. \uf0b7 Out of the approved staffing level of 334, the Ministry has only 201 positions filled (60.2%) leaving a staffing gap of 139 positions (39.8%). Included in the unfilled positions are key ones (1 Director, 3 Asst. Commissioners and a Principal). Inadequate staffing results into heavy workloads on existing staff and affects the Ministry\u2019s performance which in turn affects the overall level of service delivery. \uf0b7 The Ministry of Tourism, Wildlife and Antiquities entered into an MOU with a foreign company on 5th February 2020 to enable Uganda host the 2020 edition of MTV Africa Music Awards (MAMA) on 13th June 2020. The agreed sponsorship fee was USD.3,500,000 (equivalent to UGX 12.6Bn). The first installment of UGX.10.4Bn was paid on 12th March 2020. However due to the COVID 19 pandemic which came about in March 2020, staging of the event could not take place as earlier planned. On 9th November 2020 an addendum was signed between MTWA and the company to modify the function so that it is held virtually on 20th February 2021. Thereafter a second installment of UGX.2.596Bn was paid on 19th January 2021. However, due to a heightened electoral season, the grand finale did not take place. Consequently, the organizers announced cancellation of the function on 14th June 2021. |", "metadata": {"page": 252, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Opinion Unqualified | only UGX.0.200Bn was collected, representing a performance of 40.6% of the target. \uf0b7 The entity budgeted to receive UGX.3.931Bn during the period, out of which UGX.2.531Bn was warranted, resulting into a shortfall of UGX.1.4Bn, which is 36% of the budget. \uf0b7 A review of the staffing structure for UWRTI revealed that out of the total approved structure of 47 staff, only 23 (49%) positions were filled and 24 positions (51%) had not yet been filled. \uf0b7 A review of the procurement files revealed that the Institute awarded contracts to various providers totalling UGX.519Mn without carrying out market assessments/surveys. |\n|---:|:-------------|:-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | \uf0b7 Attention is drawn to Note 19 of the financial statements in which management made a provision to reduce the receivable amount from UGX.13Bn to UGX.3.2Bn given the preliminary findings by a company engaged to assess recoverability of the funds. | Unnamed: 2 |\n| 1 | 11.0 | Uganda Tourism Board. 2020/21 Opinion Unqualified | \uf0b7 Contrary to Section 45 (3) of the Public Finance and Management Act, 2015, the Board failed to implement procurements worth UGX.2.79Bn which had been indicated in their procurement plan. Unimplemented procurements signify unimplemented activities and therefore delayed service delivery. \uf0b7 Contrary to Section 26 (4) of the PPDA 2003, procurements for stationery worth UGX.1.67Bn were concluded without carrying out market assessments. As a result, I could not establish how the estimated unit cost for these procurements was arrived at, thus implying that the procurements may have been awarded at exorbitant costs. \uf0b7 A review of the Board's establishment structure revealed that 38 posts out of the approved 85 remained vacant during the year, indicating a 45% understaffing level. Most notable among the vacant positions are key staffs like the Director Marketing, Director Quality Assurance, Director Finance and planning, and Manager Human Resource. Inadequate staffing levels not only deprive the entity of the skills required to enhance service delivery but also frustrates segregation of duty. |\n| 2 | | WATER AND ENVIRONMENT SECTOR | \uf0b7 |\n| 3 | 1.0 | Kampala Sanitation Program (KSP) Closure 2020/21 Opinion Unqualified | \uf0b7 Contingent Liabilities \uf0b7 A contractor\u2019s global claim of Euros 25,043,073 arising from the contractual obligation of extension of time and causation of delays in project completion which was approved; \uf0b7 A compensation claim of UGX220 Million which is now before the Land Division of the High Court Civil suit No.109 of 2019 and thus the outcome of the compensation claim will be determined by court; \uf0b7 A compensation of UGX1.15 Billion which is now before the Land Division of the High Court HCCS NO. 518 of 2016 and thus the outcome of the compensation claim will be determined by court. |", "metadata": {"page": 253, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Opinion Unqualified | only UGX.0.200Bn was collected, representing a performance of 40.6% of the target. \uf0b7 The entity budgeted to receive UGX.3.931Bn during the period, out of which UGX.2.531Bn was warranted, resulting into a shortfall of UGX.1.4Bn, which is 36% of the budget. \uf0b7 A review of the staffing structure for UWRTI revealed that out of the total approved structure of 47 staff, only 23 (49%) positions were filled and 24 positions (51%) had not yet been filled. \uf0b7 A review of the procurement files revealed that the Institute awarded contracts to various providers totalling UGX.519Mn without carrying out market assessments/surveys. |\n|---:|-------------:|:--------------------------------------------------------|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 2 | National Forestry Authority 2020/21 Opinion Unqualified | \uf0b7 The Authority prepared and had its strategic plan for the period 2020/2021 to 2024/2025 approved by the Board, however there was no certification from NPA. \uf0b7 Out of the approved NTR estimate of UGX 12.966 billion, the Authority collected UGX 10.372 billion representing a performance of 80% of the target. Out of the approved GoU budget of UGX. 42.582 billion, UGX. 32.074 billion (75.3%) was warranted, resulting in a shortfall of UGX. 10.508 billion (24.7%). Of the total receipts for the financial year of UGX 32.074 billion, only UGX 31.304 billion was spent by the entity representing an absorption level of 97.6%. \uf0b7 Out of the six (06) outputs with a total of twenty (20) activities and budget of UGX 42.12 billion, five (5) outputs with a total of fifteen (15) activities were fully quantified while one (1) output with a total of five (05) activities was not quantified at all. \uf0b7 Of the 5 outputs with 15 activities worth UGX.31.68 billion assessed for budget implementation, 01 activity (6.7%) was fully implemented, 13 activities (86.6%) were partially implemented, while 1 activity (6.7%) |", "metadata": {"page": 253, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Opinion Unqualified | only UGX.0.200Bn was collected, representing a performance of 40.6% of the target. \uf0b7 The entity budgeted to receive UGX.3.931Bn during the period, out of which UGX.2.531Bn was warranted, resulting into a shortfall of UGX.1.4Bn, which is 36% of the budget. \uf0b7 A review of the staffing structure for UWRTI revealed that out of the total approved structure of 47 staff, only 23 (49%) positions were filled and 24 positions (51%) had not yet been filled. \uf0b7 A review of the procurement files revealed that the Institute awarded contracts to various providers totalling UGX.519Mn without carrying out market assessments/surveys. |\n|---:|:-------------|:-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | was not implemented at all. \uf0b7 I noted a significant receivables balance of UGX 8,268,255,693 at close of the financial year which impacts the liquidity capacity of the Authority. \uf0b7 There were irregularities in forest land utilization with four (4) unlicensed Central Forest Reserves (one in Kajansi and three in Lutoboka) and 24 non-complying developers in CFRs. \uf0b7 I noted irregularities in forest land utilization, inactive private tree planters in CFRs, non-operationalisation of the Tree Fund, Out-dated Forest Reserve Management Plans and major encroachment on CFRs. | Unnamed: 2 |\n| 1 | 3 | Uganda National Meteorological Authority (UNMA). 2020/21 Opinion Unqualified | \uf0b7 The Authority collected NTR of UGX 317,259,177 out of the estimated UGX 1,259,080,696 representing a performance of 25.2%. \uf0b7 Out of the budgeted revenue of UGX 26,675,604,875, only UGX 19,025,934,156 was realized representing performance level of 71.3% of the target. Out of UGX 19,025,934,156 warranted, UGX 17,970,307,440 was absorbed by the authority leaving unspent balance of UGX 1,295,279,000 representing 94.5% absorption level. \uf0b7 The Authority received off-budget financing of UGX. 668,042,740 \uf0b7 Five (5) outputs with a total of twenty-eight (28) activities and expenditure worth UGX 5,094,648,000 were fully quantified, while Three (3) outputs with a total of thirty-seven (37) activities and expenditure worth UGX 2,682,683,000 were insufficiently quantified. \uf0b7 Of the 5 outputs with 28 fully quantified activities, 7 activities (25%) were fully implemented, 10 activities (35.7%) were partially implemented, while 11 activities (39.3%) remained unimplemented. \uf0b7 There was delayed completion of the Radars in Mwizi-Rwampara and Lira due to the restrictions of Covid 19 lockdown. \uf0b7 The average functionality of all the weather stations is at 89% instead of the desired 100% resulting from the non-functional meteorological equipment. |", "metadata": {"page": 254, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Opinion Unqualified | only UGX.0.200Bn was collected, representing a performance of 40.6% of the target. \uf0b7 The entity budgeted to receive UGX.3.931Bn during the period, out of which UGX.2.531Bn was warranted, resulting into a shortfall of UGX.1.4Bn, which is 36% of the budget. \uf0b7 A review of the staffing structure for UWRTI revealed that out of the total approved structure of 47 staff, only 23 (49%) positions were filled and 24 positions (51%) had not yet been filled. \uf0b7 A review of the procurement files revealed that the Institute awarded contracts to various providers totalling UGX.519Mn without carrying out market assessments/surveys. |\n|---:|-------------:|:-------------------------------------------------------------------------------------------------------------|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 4 | Investment plan preparation grant for the strategic plan for climate resilience. 2020/21 Opinion Unqualified | \uf0b7 Two out of the three (3) sub objectives of the Project, were fully achieved while the third objective of building capacity of both national and subnational stakeholders in the management of climate change disasters was partially achieved. \uf0b7 Out of the approved grant of USD 1,500,000, only USD 1,391,587 has so far been disbursed (92.77%) leaving an undisbursed amount of USD 108,413 (7.23%). Out of the Project available funds of USD 290,641.50 (UGX 1,063,396,206), USD 160,807.11 (55.33%) was spent leaving an unspent balance of USD 129,834.39 (44.67). \uf0b7 All the nine (09) activities with a total budget of USD 290,641.50 (UGX 1,063,396,206) planned for implementation in the financial year 2020/2021 were properly quantified. \uf0b7 Out of nine (09) planned activities for implementation, six (06) activities (66.67%) were fully implemented; one (01) activity (11.11%) was partially implemented while two (02) activities (22.22%) were not implemented at all. \uf0b7 Payables relating to 6%WHT had accumulated to UGX 36,025,563 from UGX 24,878,054 reported in the prior year financial statements. \uf0b7 Statutory deductions amounting to UGX 11,147,509 relating to 6%WHT |", "metadata": {"page": 254, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Opinion Unqualified | only UGX.0.200Bn was collected, representing a performance of 40.6% of the target. \uf0b7 The entity budgeted to receive UGX.3.931Bn during the period, out of which UGX.2.531Bn was warranted, resulting into a shortfall of UGX.1.4Bn, which is 36% of the budget. \uf0b7 A review of the staffing structure for UWRTI revealed that out of the total approved structure of 47 staff, only 23 (49%) positions were filled and 24 positions (51%) had not yet been filled. \uf0b7 A review of the procurement files revealed that the Institute awarded contracts to various providers totalling UGX.519Mn without carrying out market assessments/surveys. |\n|---:|:-------------|:-----------------------------------------------------------------------------------------------------------------------------------------------|:------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | were not remitted to the Uganda Revenue Authority. | Unnamed: 2 |\n| 1 | 5 | Integrated Water Management and Development Project- NWSC 2020/21 Opinion Unqualified | \uf0b7 No material findings to report. |\n| 2 | 6 | National Water and Sewerage Corporation- Kampala Water Lake Victoria Water and Sanitation (KW-LV WATSAN I) PROJECT 2020/21 Opinion Unqualified | \uf0b7 I noted that NWSC delayed to pay the Contractor and as a result, the contractor claimed for interest of Euros 141,968 approximately UGX.610 Million. I also noted changes in the scope of the contract which resulted into a contract variation of Euros 612,000 (approximately UGX 1.4 Billion). |", "metadata": {"page": 255, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Opinion Unqualified | only UGX.0.200Bn was collected, representing a performance of 40.6% of the target. \uf0b7 The entity budgeted to receive UGX.3.931Bn during the period, out of which UGX.2.531Bn was warranted, resulting into a shortfall of UGX.1.4Bn, which is 36% of the budget. \uf0b7 A review of the staffing structure for UWRTI revealed that out of the total approved structure of 47 staff, only 23 (49%) positions were filled and 24 positions (51%) had not yet been filled. \uf0b7 A review of the procurement files revealed that the Institute awarded contracts to various providers totalling UGX.519Mn without carrying out market assessments/surveys. |\n|---:|-------------:|:--------------------------------------------------------------|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 7 | NATIONAL ENVIRONMENT MANAGEMENT AUTHORITY Opinion Unqualified | \uf0b7 The Authority collected NTR of UGX.8,084,594,955 (50.2%) against the estimated UGX.16,088,769,336 as projected by Ministry of MOFPED. However, there were no NTR estimates indicated in the statement of appropriation. \uf0b7 Out of the budgeted GoU revenue of UGX.25,555,655,669 by the Authority, only UGX 18,809,799,829 was warranted representing performance of 73.6% of the target. \uf0b7 I noted that out of the UGX.18,809,799,829 released to the Authority, only UGX.18,494,875,926 was spent representing an absorption level of 98.3%. Subsequently, the unspent funds amounting to UGX.314,923,903 were swept back to the Consolidated Fund. \uf0b7 The Authority received off-budget funding to the tune of UGX.1,963,413,072 and USD 2,805,651,484 which were not appropriated as required by the law. \uf0b7 9 (69%) of the 13 activities (against which UGX 9,707,487,720 was released) were fully implemented and 4 (31%) of the activities were partially implemented. \uf0b7 Contrary to the directive from the Ministry of Finance, during the financial year a total of UGX 441,857,268 was deposited directly into the National Environment Fund (NEF) account as NTR and this amount was not remitted to the consolidated fund. \uf0b7 The Authority does not have any legal provision to regulate the work of the Environment Police. In addition, the funds to facilitate the work of the force were not budgeted for in the annual work plan and budget. Financial records indicate that only UGX.21,280,000 was spent on the force during the year. \uf0b7 I noted that all the wetlands in Uganda are not gazetted, contrary to Section 2 of the National Environment Act 2019, although they are indicated on the maps. In addition, contrary to Instrument 2 of the Nation Environment Act, 2019 (Commencement) that empowers the Authority to enforce wetland gazetting, the Authority went ahead to collect NTR from wetland user permits amounting to UGX 8,800,000 |", "metadata": {"page": 255, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Opinion Unqualified | only UGX.0.200Bn was collected, representing a performance of 40.6% of the target. \uf0b7 The entity budgeted to receive UGX.3.931Bn during the period, out of which UGX.2.531Bn was warranted, resulting into a shortfall of UGX.1.4Bn, which is 36% of the budget. \uf0b7 A review of the staffing structure for UWRTI revealed that out of the total approved structure of 47 staff, only 23 (49%) positions were filled and 24 positions (51%) had not yet been filled. \uf0b7 A review of the procurement files revealed that the Institute awarded contracts to various providers totalling UGX.519Mn without carrying out market assessments/surveys. |\n|---:|:-------------|:---------------------------------------------------------------------------------------------|:-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | during the financial year 2020/21. | Unnamed: 2 |\n| 1 | 8 | Strategic Towns Water Supply and Sanitation Project. 2020/21 Opinion Unqualified | \uf0b7 Out of the total budget of UGX 40 Bn for the financial year, only UGX 19.24 Bn was received representing a performance level of 48%. Out of the amount received, UGX.18.88 Bn was spent during the year representing an absorption level of 98.13%. \uf0b7 I noted that of the 12 quantified activities worth UGX.35.63Bn assessed, 8 activities representing 66.7% were partially implemented, while 4 activities representing 33.3% were not implemented at all. \uf0b7 I noted slow progress of work for Construction of Kayunga \u2013 Busaana water supply system due to failure to access imported materials as a result of the COIVD 19 pandemic. |\n| 2 | 9 | Irrigation for Climate Resilience Project 2020/21 Opinion Unqualified | \uf0b7 Out of the budgeted revenue of USD 13,641,026, only USD 6,305,937 (46.2%) was realized representing performance level of 46.2% of the target. Out of USD 6,305,917, disbursed, there was no absorption by the project as at close of the financial year. \uf0b7 Twenty-two (22) outputs with a total of thirty three (33) activities and budget of USD 13,641,026 were fully quantified as required. Out of 22 outputs with a total of 33 activities, only 1 activity (3%) was fully achieved, 27 (82%) were partially achieved and 5 activities (15%) were not implemented at all. |\n| 3 | 10 | Enhancing Resilience of Communities to Climate Change (EURECCCA) 2020/21 Opinion Unqualified | \uf0b7 At the end of the initial project completion date of 30th April 2021, all the four project components had been partially achieved and thus, the project completion date was extended to 30th April 2022. \uf0b7 Out of the approved budget of UGX 17,768,973,403 (USD 4,670,392), UGX 7,799,443,700 (USD 2,050,000) was realized representing a performance of 43.9%. Out of the total available funds of UGX.8,690,311/616, a sum of UGX.8.541,200,193 was spent representing 98.3% absorption. \uf0b7 All the 15 planned outputs with a total of 42 activities were fully quantified to enable assessment of performance and enhance accountability. Out of the 42 planned activities 19 (45.2%) were fully implemented, 22 (52.4%) were partially implemented and 1(2.4%) was not implemented at all. |", "metadata": {"page": 256, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Opinion Unqualified | only UGX.0.200Bn was collected, representing a performance of 40.6% of the target. \uf0b7 The entity budgeted to receive UGX.3.931Bn during the period, out of which UGX.2.531Bn was warranted, resulting into a shortfall of UGX.1.4Bn, which is 36% of the budget. \uf0b7 A review of the staffing structure for UWRTI revealed that out of the total approved structure of 47 staff, only 23 (49%) positions were filled and 24 positions (51%) had not yet been filled. \uf0b7 A review of the procurement files revealed that the Institute awarded contracts to various providers totalling UGX.519Mn without carrying out market assessments/surveys. |\n|---:|-------------:|:---------------------------------------------------------------------------|:------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 11 | Nyabyeya Forestry College (NFC) Opinion Unqualified | \uf0b7 The College does not have an approved strategic plan for the period 2021-202 and lacks an enabling law that stipulates its mandate. There is a risk that activities implemented during the financial year 2020/2021 were not aligned to the NDP-III, which negatively affects the achievement of the National Development objectives \uf0b7 Out of the total receipts of UGX 2,753,839,117 for the financial year, UGX 2,911,962,444 was spent resulting into an over expenditure of UGX 158,123,327 representing an absorption level of 106%. The over absorption of funds was due to the opening balances for civil works executed even during the Covid-19 lockdown. \uf0b7 I noted a decline in students\u2019 enrolment from 431 students in 2016/17 to 256 students in 2020/21. Continued fall in enrolment may result in the College\u2019s failure to achieve its mandate of producing technical human resource in forestry and related natural resources through training. |\n| 1 | 12 | Farm Income Enhancement and Forestry Conservation Project Phase II (FIEFOC | \uf0b7 The Project has not fully achieved the three project subcomponents of Agriculture Infrastructure Development, Agribusiness Development and |", "metadata": {"page": 256, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | II). 2020/21 Opinion Unqualified | Integrated Natural resources Management which had been set to be achieved by 30/06/2021. \uf0b7 The project had an approved annual budget of UGX 111,249,503,000 out of which UGX 63,414,586,000 (57%) was received leading to a shortfall of UGX 47,834,917,000. \uf0b7 Out of the total funds received of UGX 63,414,586,000, a total of UGX 63,250,130,000 was spent, representing an absorption level of only 99.7%. \uf0b7 Out of the Nine (9) outputs with a total of twenty-nine (29) activities and expenditure worth UGX 51,914,542,000, six outputs with a total of twenty six (26) activities were fully quantified, while three outputs with a total of three (3) activities were not quantified at all. \uf0b7 Of the 6 outputs with 26 fully quantified activities, 18 activities (70%) were fully implemented, 4 activities (15%) were partially implemented while 4 activities (15%) were not implemented. \uf0b7 I noted that the Project extended loans to beneficiaries to the tune of UGX.2,315,145,994. However, out of the amounts due for collection of UGX.1,364,364,026, only UGX. 45,062,600 (3.3%) had been recovered by 30th June 2021, leaving a balance of UGX 1,319,301,426 outstanding. \uf0b7 There is slow progress of works at Wadelai irrigation scheme with major outstanding works, such as; main canal not completed; Embankment not completed with only 0.5km out of 2.3km fully worked on; 3 secondary canals half-done leaving 2 not yet started on; 7 out of 8 tertiary canals for secondary canal 1 done and none for the other 4 secondary canals done; Farm land clearing not done; and Eco system scheme toilets not done. |\n|---:|-------------:|:----------------------------------------------------------------------------------------|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 13 | Integrated Water Management and Development Project (IWMDP) 2020/21 Opinion Unqualified | \uf0b7 Out of the approved budget of UGX 70,327,857,900, UGX.52,949,933,856 (75.3%) was availed for spending leading to a shortfall of UGX.17,377,924,044. Out of the total funds available for the financial year of UGX.52,949,933,856, UGX.20,830,393,625 was spent representing an absorption level of only 39.3%. \uf0b7 Fifteen (15) outputs with a total of twenty-seven (27) activities and expenditure worth UGX.14,957,387,000 were fully quantified, while one (1) outputs with one (1) activity was inadequately quantified. \uf0b7 Of the 15 outputs with 27 fully quantified activities, 2 out puts (13%) were fully implemented, 6 out puts (40%) were partially implemented while 7 out puts (47%) were not implemented. \uf0b7 Review of the project appraisal document, the monitoring and results framework analysis report of October 2021 together with annual progress reports revealed that the rate of achievement of project targets is slow as a result of procurement delays. |\n| 1 | 14 | Northern Uganda Resilience Initiative Project 2020/21 Opinion Unqualified | \uf0b7 Out of the total rolled over funds of UGX.1,520,434,217 from the previous financial year, the project spent UGX.1,055,516,512 (69%) leaving an unspent balance of UGX.464,917,705 (31%). \uf0b7 Out of the 17 planned activities for the financial year 2020/2021, only 2 activities were quantified as required leaving 15 activities unquantified. \uf0b7 Of the 17 activities planned; 5 (29%) were fully implemented, 6 (35%) were partially implemented, 1 activity (6%) was not implemented while 5 activities representing 29% were not reported on in the annual performance report. |", "metadata": {"page": 257, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 15 | Third National Communication (TNC) 2020/21 Opinion Unqualified | \uf0b7 Out of an approved budget of USD.173,474, USD.83,000 was disbursed representing a performance level of 47.8% of the target. \uf0b7 Out of the total available funds for the year of US$ 92,304.34, the project spent US$ 60,493.32 representing an absorption level of 65.6%. As a result some activities were not implemented. \uf0b7 All the 16 outputs with a total budget of USD.173,474 and actual expenditure of 60,555.97 were not quantified at all. |\n|---:|-----:|:--------------------------------------------------------------------------------------------------------------------------------------|:------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 16 | Water Supply and Sanitation on Refugee Hosting Communities in Northern Uganda Funded By (Kfw) Project KfW 2020/21 Opinion Unqualified | \uf0b7 Out of the Project budget of UGX. 20,868,100,000, a sum of UGX 9,204,079,893 was disbursed by the donor, representing a performance level of 44.1% of the target. \uf0b7 Out of the total receipts of UGX 9,204,079,893 from KfW, UGX 8,523,847,919 (92.6%) was spent by the Project, resulting into an unspent balance of UGX 680,231,973 (7.4%). \uf0b7 Both projects outputs with 10 planned activities were fully quantified and; 1 activity (10%) was fully achieved, 8 activities (80%) were partially achieved, while 1 activity (10%) remained unimplemented. |\n| 1 | 17 | Uganda National Redd - Plus Support Project Opinion Unqualified | \uf0b7 The project had 2 sub components which had not been fully achieved. \uf0b7 The project had an approved revenue budget of USD.644,500 for the year under review but only USD.250,000 (38.8%) was disbursed. \uf0b7 Out of the total funds available for spending of USD.475,919.18, only USD.249,763.51 (52.18%) was spent leaving an unspent balance of $ 226,155.67 (48.82%). As a result certain activities were not implemented. \uf0b7 All the 10 outputs comprising 57 activities with a total budget of USD.2,210,799 were properly quantified. \uf0b7 The draft progress report was not detailed to enable assessment of implementation of activities against planned. |", "metadata": {"page": 258, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 15 | Third National Communication (TNC) 2020/21 Opinion Unqualified | \uf0b7 Out of an approved budget of USD.173,474, USD.83,000 was disbursed representing a performance level of 47.8% of the target. \uf0b7 Out of the total available funds for the year of US$ 92,304.34, the project spent US$ 60,493.32 representing an absorption level of 65.6%. As a result some activities were not implemented. \uf0b7 All the 16 outputs with a total budget of USD.173,474 and actual expenditure of 60,555.97 were not quantified at all. |\n|---:|-----:|:----------------------------------------------------------------------|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 18 | Ministry of Water, and Environment (MoWE) 2020/21 Opinion Unqualified | \uf0b7 I noted that the entity had not prepared a specific strategic plan as required by the NDP III and was instead utilizing an Investment plan (2030). \uf0b7 I noted that out of the estimated NTR collection of UGX 8.97 billion, only UGX1.39 Bn was realized, representing a performance of 15.5%. \uf0b7 Out of the approved budget of UGX. 457.52 Bn, a sum of UGX. 452.01 Bn (98.8%) was released, resulting in a shortfall of UGX. 5.52 Bn (1.2%) of the budget. \uf0b7 Out of the total receipts for the financial year of 452.01 Bn, a sum of UGX. 453.24 Bn was spent by the entity resulting in an unspent balance of UGX 5.58 Bn, representing an absorption level of 98.7%. \uf0b7 As a result of the under absorption, I noted that of the 72 quantified activities worth UGX.388.26Bn assessed; 15 activities representing 27.3% were fully implemented, 38 activities representing 69.1% were partially implemented,2 activities representing 3.6% were not implemented .I further noted that there was delayed submission of performance reports. \uf0b7 The Ministry incurred penal interest of UGX.103,632,504 (USD.32,218) arising from delayed payment to the contractor. \uf0b7 I noted that the Ministry\u2019s Payables amount significantly increased from UGX.64.3 billion in the previous year to UGX.114.5 billion in the current |", "metadata": {"page": 258, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 15 | Third National Communication (TNC) 2020/21 Opinion Unqualified | \uf0b7 Out of an approved budget of USD.173,474, USD.83,000 was disbursed representing a performance level of 47.8% of the target. \uf0b7 Out of the total available funds for the year of US$ 92,304.34, the project spent US$ 60,493.32 representing an absorption level of 65.6%. As a result some activities were not implemented. \uf0b7 All the 16 outputs with a total budget of USD.173,474 and actual expenditure of 60,555.97 were not quantified at all. |\n|---:|:-----------|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | year due to the increasing number of multi-year projects in the ministry. \uf0b7 I noted that the Ministry\u2019s Receivables amount significantly increased from UGX.1.3 million in the previous year to UGX.22.4 billion in the current year. This was attributed to prepayments made to contractors (UGX.19.3 billion) and the outstanding letters of credit (UGX.3.1 billion) for on-going projects in the Ministry. \uf0b7 From my audit and field inspection of facilities, regional centres and Umbrella Organisations, I observed several weaknesses in service delivery such as; untitled land for piped water systems and schemes; delayed execution of works; outstanding revenue arrears; unmetered water schemes, Lack and faulty bulk meters; among others. | Unnamed: 2 |\n| 1 | 19 | Support to Priority Irrigation Investments in Uganda Grant 2020/21 Opinion Unqualified | \uf0b7 All the budgeted revenue from Government of USD.949,422.62 was realised representing a performance of 100% of the target. \uf0b7 Out of the donar funds of USD.949,422.62 received, only USD 117,475.04 was absorbed by the project representing an absorption level of 12.4%. The Under absorption was attributed to Covid-19 effects. \uf0b7 All the Six (6) outputs with a total of six (6) activities and expenditure of USD.117,475.04 were fully quantified. \uf0b7 Four (4) out of six (6) outputs had not been achieved despite the fact that the initial Project completion period had been 30thJune 2020. This was later extended to 30/06/2021 and another extension to 31/3/2022. |\n| 2 | 20 | The Adapting to Climate Change In Lake Victoria Basin. 2020/21 Opinion Unqualified | \uf0b7 Out of the budgeted revenue of USD.249,377, only USD.194,645.56 was received representing performance level of 78% of the target. \uf0b7 Out of the total disbursements for the period of USD.273,590.56 (equivalent UGX.998,518,150), only USD.38,215.11 (UGX.141,282,999) was absorbed by the project representing an absorption level of 14%. \uf0b7 All the three (3) outputs with a total of eleven (11) activities and budget of USD.249,377 were fully quantified. \uf0b7 Out of the 3 quantified outputs with 11 activities, 5 activities (45.5%) were fully achieved, 2 activities (18.2%) were partially achieved and 4 activities (36.3%) were not implemented at all. |\n| 3 | 21 | South Western Cluster Water and Sanitation Project \u2013 NWSC 2020/21 Opinion Unqualified | \uf0b7 No material issues to report on |", "metadata": {"page": 259, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 15 | Third National Communication (TNC) 2020/21 Opinion Unqualified | \uf0b7 Out of an approved budget of USD.173,474, USD.83,000 was disbursed representing a performance level of 47.8% of the target. \uf0b7 Out of the total available funds for the year of US$ 92,304.34, the project spent US$ 60,493.32 representing an absorption level of 65.6%. As a result some activities were not implemented. \uf0b7 All the 16 outputs with a total budget of USD.173,474 and actual expenditure of 60,555.97 were not quantified at all. |\n|---:|-----:|:---------------------------------------------------------------------------|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 22 | National Water and Sewerage Corporation (NWSC) 2020/21 Opinion Unqualified | \uf0b7 The financial statements under Note 28 include a Financial Asset in form of Trade Receivables. Management has estimated the fair value of the net financial asset receivable to be UGX 133.7 billion as at 30th June 2021 of which, the net amount of receivables UGX38.2bn is owed from the government and its MDA (Ministries; Departments and Agencies). \uf0b7 I noted that NWSC leased vehicles, offices and land under operating lease contracts whose terms were more than twelve (12) months, which were classified as; Right of Use asset amortization (UGX 87.8m) Right of Use Lease Assets (UGX 12.4bn) and Obligations due to Right of Use Leased Assets (UGX 8.4bn). Liabilities were not amortised annually using effective interest method in order to arrive at the amortised costs for |", "metadata": {"page": 259, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 15 | Third National Communication (TNC) 2020/21 Opinion Unqualified | \uf0b7 Out of an approved budget of USD.173,474, USD.83,000 was disbursed representing a performance level of 47.8% of the target. \uf0b7 Out of the total available funds for the year of US$ 92,304.34, the project spent US$ 60,493.32 representing an absorption level of 65.6%. As a result some activities were not implemented. \uf0b7 All the 16 outputs with a total budget of USD.173,474 and actual expenditure of 60,555.97 were not quantified at all. |\n|---:|:-----------|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | profit and loss recognition although the necessary disclosures were made in the financial statements. \uf0b7 I noted that freehold land (UGX. 176.5bn) and leasehold land (UGX. 4bn) included some land that had expired lease periods, some titles were not yet transferred in the names of NWSC, and Katosi, which is a long term investment constructed on a short term leased land of ten (10) years. \uf0b7 Some on-going water projects were significantly delayed by litigations and substantial amounts that are required to compensate the interested parties in note 24 of the financial statements. | Unnamed: 2 |\n| 1 | 23.0 | Multinational Lakes Edward and Albert Integrated Fisheries and Water Resources Management Project (LEAF) II 2020/21 Opinion Unqualified | \uf0b7 A total of six (6) strategic outputs (50%) were fully achieved, while 6 outputs were partially achieved and still on-going (50%). \uf0b7 Out of the approved budgeted revenue of USD 1,887,374, USD 603,588.93 was released representing performance of 32% of the target. \uf0b7 The project had a total available balance of USD 2,767,452.2, out of which USD 2,754,945.85 (99.5%) was spent leading to an unspent balance of only USD 12,506.35. \uf0b7 All the 10 planned outputs with 39 activities and a total budget of USD 3,119,412.9 were properly quantified to enable measurement of performance. \uf0b7 Out of the 39 planned activities under the 3 Project components, 19 (48.7%) were fully implemented, 10 (25.6 %) were partially implemented and 10 (25.6%) were not implemented at all. \uf0b7 I noted delays in construction of infrastructure projects resulting from the effects of the Covid pandemic and effects of the rising water level of Lakes Albert and Edward and inadequate GoU funding. The projects affected included the construction of the surveillance station, Kitebere Landing Site, Mbegu landing site, fish processing facility at Dei Landing site, and supply of a fisheries research vessel. |\n| 2 | | ENERGY SECTOR | \uf0b7 |", "metadata": {"page": 260, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 15 | Third National Communication (TNC) 2020/21 Opinion Unqualified | \uf0b7 Out of an approved budget of USD.173,474, USD.83,000 was disbursed representing a performance level of 47.8% of the target. \uf0b7 Out of the total available funds for the year of US$ 92,304.34, the project spent US$ 60,493.32 representing an absorption level of 65.6%. As a result some activities were not implemented. \uf0b7 All the 16 outputs with a total budget of USD.173,474 and actual expenditure of 60,555.97 were not quantified at all. |\n|---:|-----:|:-------------------------------------------------------------------|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 1 | Electricity Regulatory Authority (ERA) 2020/21 Opinion Unqualified | \uf0b7 I noted that out of the budgeted revenue of UGX 28.57Bn, a sum of UGX. 27.70Bn was realized representing a performance of 98%. \uf0b7 Out of the revenue realized of UGX. 27.70Bn for the financial year, UGX 24.55Bn was spent on recurrent expenditure and UGX.2.25Bn on capital expenditure, resulting into an unspent balance of UGX.0.9Bn, representing absorption level of 97%. \uf0b7 Out of the forty-six (46) key activities, sixteen (16) (35%) activities had been fully achieved, and thirty (30) (65%) were partially achieved. \uf0b7 Included in the receivables figure of UGX.7,566,003,960, under Note 7 of the Financial Statements is a sum of UGX.724, 185,509, relating to license fees and permit fees which have been outstanding for more than 90 days instead of the recommended 14 days. \uf0b7 I noted that the target of reduction of the end user tariff was not achieved across customers\u2019 categories, with a weighted average of UGX.485.7 per Kwh. The end user off \u2013peak tariff for extra- large industrial customers was achieved at UGX.223.7. \uf0b7 I noted that out of the total staff establishment of 92 positions, only 67 (73%) positions had been filled leaving a balance of 25 (27%) positions vacant. |", "metadata": {"page": 260, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 15 | Third National Communication (TNC) 2020/21 Opinion Unqualified | \uf0b7 Out of an approved budget of USD.173,474, USD.83,000 was disbursed representing a performance level of 47.8% of the target. \uf0b7 Out of the total available funds for the year of US$ 92,304.34, the project spent US$ 60,493.32 representing an absorption level of 65.6%. As a result some activities were not implemented. \uf0b7 All the 16 outputs with a total budget of USD.173,474 and actual expenditure of 60,555.97 were not quantified at all. |\n|---:|:-----------|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | \uf0b7 I noted Non-compliance to Quality-of-Service Standards (QoS) by Distribution Licensees, with an average of 45% compliance. Non- compliance with QoS denies customers quality and reliable electricity supply. | Unnamed: 2 |\n| 1 | 2 | Energy for Rural Transformation III PSFU Project (ERT III). 2020/21 Opinion Unqualified | \uf0b7 Out of the total Receipts for the financial year of USD. 636,993, only USD.382,224 was spent by the Project resulting in an unspent balance of USD. 254,769 representing absorption level of 60% for the year. As a result, activities such as training of certified wiremen was partially implemented. \uf0b7 I noted that a consortium of Ruwenzori Power Ltd (RWP) and East African Power Ltd (EAPL) had been contracted to undertake the development of two Micro Hydro schemes in Rwenzori Sub Region. However, by the time of audit (November, 2021) the development of the 2 Micro Hydro schemes had not commenced. \uf0b7 I noted that out of the target of 850 certified wiremen, 367 wiremen were certified during the period, bringing the total number of total certified wiremen under the ERT-PSFU to 747 (88%), by June 30, 2021. |\n| 2 | 3 | Uganda Rural Electricity Access Project (UREAP). 2020/21 Opinion Unqualified | \uf0b7 Out of the Budget of UGX.157.4Bn, only UGX.106Bn was disbursed representing a shortfall of 51,339,828,177, which is 32.6% of the Budget. I further noted that out of the total receipts for the financial year of UGX. 106.1Bn, UGX.105.5Bn was utilized on installation of Medium Voltage Networks and Last Mile consumer connections, leaving an unutilized balance of UGX.564,461,546 representing an absorption level of 99.5%. \uf0b7 As 30th June 2021, the Bank had disbursed USD.44.83Million and Euros 5.89Million against the Loan credit facility of USD.100 Million and Grant of Euros 11.205 Million representing 45% and 53%, respectively. \uf0b7 I noted delays in construction works under procurement of plants, design, supply and installation of medium voltage networks and last mile consumer connections. Notably, under Lots 6, Medium Voltage stringing, and Low Voltage (LV) stringing had not yet commenced. Under Lot 7 Medium Voltage Pole erection was at 31% and stringing at 47%. \uf0b7 Out of 1,686 Project Affected Persons (PAPs), with an approved compensation amount of UGX.1,240,502,500, only 1,209 PAPs have been paid an amount of UGX.863,758,500, leaving an outstanding amount of UGX.376,744,000 relating to 477 PAPs. |", "metadata": {"page": 261, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 15 | Third National Communication (TNC) 2020/21 Opinion Unqualified | \uf0b7 Out of an approved budget of USD.173,474, USD.83,000 was disbursed representing a performance level of 47.8% of the target. \uf0b7 Out of the total available funds for the year of US$ 92,304.34, the project spent US$ 60,493.32 representing an absorption level of 65.6%. As a result some activities were not implemented. \uf0b7 All the 16 outputs with a total budget of USD.173,474 and actual expenditure of 60,555.97 were not quantified at all. |\n|---:|-----:|:----------------------------------------------------------------------------------------|:------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 4 | Lira-Gulu-Agago 132KV transmission project 2020/21 Opinion Unqualified | \uf0b7 Out of the total Receipts for the financial Year of USD. 2,304,191, only USD.519,117 was utilized by the Project, resulting in an unspent balance of USD.1,785,074, representing an absorption rate of only 22.5%. As a result, activities such as compensation of Project Affected Persons and supervision of EPC works were not implemented. \uf0b7 I noted that the contract for 132kv Double Circuit Transmission Lines and construction of Substations were signed on 12th April and 23rd March, 2021 respectively, however the major Project works such as Survey, Design, Supply and Installations works had not yet commenced. |\n| 1 | 5 | Energy for Rural Transformation III (ERT III) \u2013REA Project. 2020/21 Opinion Unqualified | \uf0b7 Out of the total receipts for the financial year of UGX.139.5Bn, only UGX.98.3Bn was utilized on installation of Medium Voltage Networks and Last Mile consumer connections, leaving an unutilized balance of UGX 41.2Bn representing an absorption level of 70%. As a result, activities such as Grid extensions, Line connections and Grid Intensification schemes under various Lines were partially implemented. \uf0b7 Out of the total credit amount of USD.116.1 Million, only USD.73.7 Million |", "metadata": {"page": 261, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 15 | Third National Communication (TNC) 2020/21 Opinion Unqualified | \uf0b7 Out of an approved budget of USD.173,474, USD.83,000 was disbursed representing a performance level of 47.8% of the target. \uf0b7 Out of the total available funds for the year of US$ 92,304.34, the project spent US$ 60,493.32 representing an absorption level of 65.6%. As a result some activities were not implemented. \uf0b7 All the 16 outputs with a total budget of USD.173,474 and actual expenditure of 60,555.97 were not quantified at all. |\n|---:|:-----------|:-------------------------------------------------------------------------------------------------|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | Unnamed: 1 | had been disbursed by the Bank under ERT- REA representing 64% of the Total credit. \uf0b7 The overall Implementation of the Grid extension and associated connections is behind schedule especially under Lines 20-21 which are at 17% and 2% respectively. Progress of work under Grid Intensification, UMEME Batch 1 and 2 were at 55% and 20% respectively. \uf0b7 Out of 34,535 Project Affected Persons (PAPs), with an approved compensation amount of UGX. 22.6Bn, only 22,180 PAPs have been compensated with an amount of UGX.14.2Bn, leaving an outstanding amount of 8.3Bn relating to 12,355 PAPs. |\n| 1 | 6 | Hoima Kafu Transmission Line Project - Kafu Interconnection Project. 2020/21 Opinion Unqualified | \uf0b7 Out of the total receipts for the financial year, of USD.1,903,946, only USD.41,960 was spent by the Project, resulting in an unspent balance of USD.1,861,986, representing absorption level of only 2.2%. As a result, activities such as compensation of Project Affected Persons were not implemented. \uf0b7 I noted that out of the 508 Project Affected Persons along the final selected route of the Project. 470 disclosures had been made representing 95%. 347(68%) agreements were obtained from disclosures, out of which 125 (25%) disputes arose, and payments to PAPs as at 30th June 2020 was 330 (65%). |\n| 2 | 7 | Kampala Metropolitan Transmission System Improvement Project. 2020/21 Opinion Unqualified | \uf0b7 Out of the total receipts for the financial year of USD.9,259,009 for the financial year, only USD.2,465,150 was spent by the Project, leaving an unspent balance of USD.6,793,859, representing absorption of rate of 26.6%. As a result, I noted that Key activities such as consulting Services for Procurement of the EPC contractor was not implemented, while compensation of projected affected persons was partially implemented. \uf0b7 I noted that out of 130 PAPs, 109 (83%) were compensated. Disclosures made were 120 (91%), agreements obtained from disclosures were 117 (89%), and PAPs not yet compensated were 22 (16.7%). |", "metadata": {"page": 262, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 15 | Third National Communication (TNC) 2020/21 Opinion Unqualified | \uf0b7 Out of an approved budget of USD.173,474, USD.83,000 was disbursed representing a performance level of 47.8% of the target. \uf0b7 Out of the total available funds for the year of US$ 92,304.34, the project spent US$ 60,493.32 representing an absorption level of 65.6%. As a result some activities were not implemented. \uf0b7 All the 16 outputs with a total budget of USD.173,474 and actual expenditure of 60,555.97 were not quantified at all. |\n|---:|-----:|:-----------------------------------------------------------------|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 8 | Petroleum Authority of Uganda (PAU). 2020/21 Opinion Unqualified | \uf0b7 I noted that the Authority budgeted to receive UGX.63.61Bn out of which only UGX.52 Bn was warranted, resulting in a shortfall of UGX11.6Bn, which is 18% of the budget. \uf0b7 Out of the total Receipts for the financial year of UGX.52.0Bn, a sum of UGX.48.5Bn was spent by the entity resulting in an unspent balance of UGX.3.5Bn representing an absorption level of 93%. As a result, activities such as development and Implementation of the Grievance management framework and environment management system for the oil and gas sector were not implemented. \uf0b7 I noted that of the planned output, three (3) outputs with a total of nine (9) activities and expenditure worth UGX.9.05Bn were fully quantified. Five (5) outputs with a total of sixty-seven (67) activities and expenditure worth UGX23.67Bn, was insufficiently quantified. Four (4) outputs with a total of six (6) activities and expenditure worth UGX 1.09Bn were not quantified at all. \uf0b7 I noted that out of the total staff establishment of 283, only 189 (67%) positions had been filled, leaving 94 (33%) positions vacant. \uf0b7 I noted that the Authority had not developed and documented a Business Continuity Plan and not ensured disaster recovery planning for continuous provision of IT services in case of a disaster. \uf0b7 I noted that the Authority lacked an environmental regulatory framework necessary for regulating the environmental aspects in the oil and gas |", "metadata": {"page": 262, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 15 | Third National Communication (TNC) 2020/21 Opinion Unqualified | \uf0b7 Out of an approved budget of USD.173,474, USD.83,000 was disbursed representing a performance level of 47.8% of the target. \uf0b7 Out of the total available funds for the year of US$ 92,304.34, the project spent US$ 60,493.32 representing an absorption level of 65.6%. As a result some activities were not implemented. \uf0b7 All the 16 outputs with a total budget of USD.173,474 and actual expenditure of 60,555.97 were not quantified at all. |\n|---:|:-----------|:--------------------------------------------------------------------------------------------------------------|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | sector. These include; the air quality standards, noise and vibration and the chemicals management standards. | Unnamed: 2 |\n| 1 | 9 | Grid Expansion and Reinforcement Project (GERP)-UETCL. 2020/21 Opinion Unqualified | \uf0b7 Out of the total Receipts for the financial year of USD.35,395,297, only USD.6,139,307 was spent by the project leaving an unspent balance of USD.29,255,991, representing absorption of rate of 17.3%. As a result, activities such as construction of Transmission Lines and compensation of Project affected Persons were partially implemented. \uf0b7 Out of the total amount of IDA credit for the Project of USD.100,000,000 only USD.29,457,000(29.4%) was disbursed, and out of USD.27.3M GoU counterpart funding, 7,945,423 (28.9%) was disbursed by the end of the financial Year. \uf0b7 Out of the annual target of 59% progress, under Lot 1; -Construction of 132kv Double Circuit Transmission Lines, only 39% was achieved. Out of a target of 47% progress under Lot 2- construction of Substations, only 20% was achieved. \uf0b7 I noted that out of 2,340 identified PAPs under Gulu-Nebbi-Arua Section, only 1,719 (73%) had been compensated. Out of 994 PAPs under Kole- Gulu Section 985 (99%) were compensated, leaving a total of 630 PAPs not compensated by the time of audit. In addition to the 3,334 PAPs with a total cash resettlement of USD. 1,463,955.41, USD.1,241,137 was paid to 2,704 PAPs resulting into an outstanding obligation of USD.222,818 relating to 630 PAPs |\n| 2 | 10 | Islamic Development Bank (IDB) III Grid Rural Electrification Project. 2020/21 Opinion Unqualified | \uf0b7 Out of the total Loan credit of USD.70,730,000 Million by the Islamic Development Bank, USD 69,764,722.91 was disbursed representing a performance of 99% of the total Loan facility. \uf0b7 I noted that as at 30th June 2021, the overall Project progress was at 99% completion, for all the 6 lots, involving construction of Rural Electrification Schemes in various parts of Uganda. |\n| 3 | 11 | Uganda Petroleum Fund (UPF). Opinion Unqualified | \uf0b7 I noted that for the year under review, the balance in the Petroleum Fund increased from UGX.87.79Bn as at 30th June 2020 to UGX. 228.79Bn as at 30th June 2021. However, there was no appropriation of UGX. UGX.87.79Bn by during the Financial Year 2020/21 to the Consolidated Fund and/or the Petroleum Revenue Investment Reserve for budget support and investment activities, respectively. |", "metadata": {"page": 263, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 15 | Third National Communication (TNC) 2020/21 Opinion Unqualified | \uf0b7 Out of an approved budget of USD.173,474, USD.83,000 was disbursed representing a performance level of 47.8% of the target. \uf0b7 Out of the total available funds for the year of US$ 92,304.34, the project spent US$ 60,493.32 representing an absorption level of 65.6%. As a result some activities were not implemented. \uf0b7 All the 16 outputs with a total budget of USD.173,474 and actual expenditure of 60,555.97 were not quantified at all. |\n|---:|-----:|:----------------------------------------------------------------------------------|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 12 | Uganda Electricity Generation Company Limited (UEGCL) 2020/21 Opinion Unqualified | \uf0b7 Out of the budgeted revenue of UGX.173,191,277,000, for the year 2020/21, UGX.169,743,586,000 was realized representing performance of 98% of the target. \uf0b7 Out of the total receipts for the financial year of UGX.169,743,586,000, UGX.115,066,984,000 was spent by the entity resulting in an unspent balance of UGX.54,676,622,000 representing an absorption level of 67.7 %. \uf0b7 I sampled 92 interventions/critical activities implemented under the 11 departments and noted that out of the ninety two (92) key interventions, twenty nine (29) (32%) critical tasks had been fully achieved, sixty one (61) (66%) were partially achieved while two(2) (2%) were not achieved. \uf0b7 I noted long outstanding Payables of UGX 814,000,000 relating to penal interest charged by URA, resulting from late payment of WHT on consultancy services for the period 2001-2009. \uf0b7 I noted accumulated interest of UGX 284,942,245,000, on Loan repayment |", "metadata": {"page": 263, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 15 | Third National Communication (TNC) 2020/21 Opinion Unqualified | \uf0b7 Out of an approved budget of USD.173,474, USD.83,000 was disbursed representing a performance level of 47.8% of the target. \uf0b7 Out of the total available funds for the year of US$ 92,304.34, the project spent US$ 60,493.32 representing an absorption level of 65.6%. As a result some activities were not implemented. \uf0b7 All the 16 outputs with a total budget of USD.173,474 and actual expenditure of 60,555.97 were not quantified at all. |\n|---:|:-----------|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | for Karuma Hydro Power Plant was outstanding as at 30th June, 2021. \uf0b7 There has been delayed commissioning of Karuma Dam, whose completion date was extended to 15th June 2022, resulting in a delay of 3 years and 6 months from the initial planned completion date. \uf0b7 Instances of non-conformances (NC) were noted in relation to electrical, mechanical and civil works components that required rectification before commissioning of the Karuma Dam. \uf0b7 There has been continuous extension of the Isimba Dam Defects Liability Period (DLP), due to the various snags and defects that were detected after the Dam`s commissioning on March 2019. \uf0b7 I noted delayed commencement of the Construction of Muzizi Hydro Power Project whose credit facility agreement with Agence Francaise De Development (AFD) and KFW was signed on 9th December 2016 and 25th November, 2016, respectively, to finance the construction of Muzizi Hydro Power Project with expected completion date of December 2023. \uf0b7 I noted delayed Compensation of Project Affected Persons (PAPs) for Muzizi HPP whereby a total of UGX.1,769,227,282 (36.41%) of the total compensation value UGX.4,858,711,140 has been paid to PAPs. \uf0b7 I also note a failure to undertake remedial works on the plants being handled under the concession between GOU and ESKOM with less than 50% of the remedial works that have been carried out currently, with a few months to end of the concession. | Unnamed: 2 |\n| 1 | 13 | Strengthening the Management of Oil and Gas Programme (SMOGP) 2020/21 Opinion Unqualified | \uf0b7 Out of the total receipts for the financial year of USD 790,580.38, only USD. 239,221.92 was spent by the Programme resulting in an unspent balance of USD 551,358.46, representing an absorption level of 30.2%. Under absorption of released funds results in non-implementation of planned activities. \uf0b7 I noted that the Planned Programme activities such as Development of Reservoir Modelling and Simulation, Review of the Tax Laws and the Model Production Sharing Agreement Training course for Component Managers and Program Secretariat among others were not implemented. There is a risk of failure to achieve intended Programme objectives and service delivery due to delayed implementation of activities. |", "metadata": {"page": 264, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 15 | Third National Communication (TNC) 2020/21 Opinion Unqualified | \uf0b7 Out of an approved budget of USD.173,474, USD.83,000 was disbursed representing a performance level of 47.8% of the target. \uf0b7 Out of the total available funds for the year of US$ 92,304.34, the project spent US$ 60,493.32 representing an absorption level of 65.6%. As a result some activities were not implemented. \uf0b7 All the 16 outputs with a total budget of USD.173,474 and actual expenditure of 60,555.97 were not quantified at all. |\n|---:|-----:|:-------------------------------------------------------------------------------------------------------|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 14 | Mutundwe-Entebbe 132kv Double Circuit Transimssion Line Project - UETCL- June 2020 Opinion Unqualified | \uf0b7 I noted delays in transfer of titles, caused by the slow land titling process. Out of the expected 463 land titles, UETCL received 264, and 70 were handed over to the RAP Consultant. \uf0b7 Only 843 PAPs out of 1,062 had been compensated leaving 219 PAPs (20.62%) outstanding. \uf0b7 \uf0b7 Weakness were noted in the performance of the resettlement action plan consultant such as inclusion of forest reserves and wetlands as part of compensation to private individuals anddivergent surcey and valuation report for the same property. |\n| 1 | 15 | Uganda Electricity Distribution Company- UEDCL 2020/21 Opinion | \uf0b7 Out of the total receipts for the financial year of UGX. 64.97Bn, a sum of UGX 63.38Bn was spent by the entity resulting in an unspent balance of UGX 1.52Bn representing absorption level of 97.6 %. \uf0b7 I noted un-reconciled receivables amount of UGX.70.1Bn resulting from the withheld funds by UMEME from the Escrow Account in regard to unpaid government electricity bills by MDAs. |", "metadata": {"page": 264, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Unqualified | \uf0b7 I noted power evacuation liability of UGX.15.29Bn, payable to UETCL. This was due to power losses attributed to absence of transmission lines to evacuate electricity from PA Technical, Siti 1 and Arpe Power Plants, as a result of wheeling power over a lower capacity and weaker distribution lines operated by UEDCL. \uf0b7 The long outstanding receivable resulting from payment of former UEB pension costs of UGX.38.6Bn by UEDCL which has never been paid back to the Company by MoFPED. \uf0b7 Failed to meet its targeted annual connection 37,293 of customers whereby only 6,309 (16.9%) connections were made. \uf0b7 I noted that in the FY 2020/21, the approved energy loss target by the Electricity Regulatory Authority was at 20.1%. I however noted from the Grid Energy Reports submitted to ERA, that the Company was unable to meet its target energy losses and most of its service territories registered an average of 32.7% power losses. \uf0b7 I noted non -compliance by the WENRECO to the terms of the Operation and Maintenance Agreement, such as provision of semi-annual reports on status of the assets, safe storage of UEDCL connection materials, participation in the physical network inspection, submission of asset modifications register among others. \uf0b7 The 62,944 poles leased to UMEME by UEDCL were damaged and required replacement which was not done contrary to the provisions of the Lease Agreement. |\n|---:|-------------:|:------------------------------------------------------------------------------------|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 16 | Uganda National Oil Company 2020/21 Opinion Unqualified | \uf0b7 Out of the total receipts for the financial year of UGX.34.4bn only UGX 26.6bn was spent by the company, resulting in an unspent balance of UGX 7.8bn. This represents an absorption level of 77.3%. \uf0b7 I noted challenges of UNOC state Participation in the Oil and Gas Industry. Whereas UNOC is drawing closer to the Final Investment Decision (FID) for each of the Projects, the Company faces challenges in financing the 15% stake in the East Africa Crude Oil Pipeline (EACOP), 15% State Commercial Interest in the Upstream, and 40% in the Refinery Project. |\n| 1 | 17 | Uganda Refinery Holding Company Ltd 2020/21 Opinion Unqualified | \uf0b7 Out of a total of UGX 2.9bn received during the financial year, UGX.2.9bn was spent by the Company. This represents an absorption level of 100%. \uf0b7 I noted delays in the development of the Kabaale Industrial Park. As at 30th June 2021, implementation of infrastructure such as roads, power supply, water supply and Information Communication Technology connection had not yet commenced. \uf0b7 I noted delays in the implementation of the Refinery Project. As at 30th June 2021, the refinery investor had not met the targets for some Project milestones. Preliminary activities such as the Front End Engineering Design were at 97%, Environmental Social Impact Assessment Study at 70%, and procurement for the consultancy services for the Resettlement Action Plan was on-going. |\n| 2 | 18 | Uganda Electricity Transmission Company Limited (UETCL) 2020/21 Opinion Unqualified | \uf0b7 I noted that UETCL developed and approved a Corporate Business Plan without certification from the National Planning Authority. There is a risk that activities implemented during the financial year 2020/2021 were not aligned to the NDP-III, which negatively affects the achievement of NDP- III objectives. \uf0b7 UETCL budgeted to receive UGX. 1.424Tn in Tariff and Non-Tariff revenue out of which, UGX.1.338Tn was received resulting in a shortfall |", "metadata": {"page": 265, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Unqualified | \uf0b7 I noted power evacuation liability of UGX.15.29Bn, payable to UETCL. This was due to power losses attributed to absence of transmission lines to evacuate electricity from PA Technical, Siti 1 and Arpe Power Plants, as a result of wheeling power over a lower capacity and weaker distribution lines operated by UEDCL. \uf0b7 The long outstanding receivable resulting from payment of former UEB pension costs of UGX.38.6Bn by UEDCL which has never been paid back to the Company by MoFPED. \uf0b7 Failed to meet its targeted annual connection 37,293 of customers whereby only 6,309 (16.9%) connections were made. \uf0b7 I noted that in the FY 2020/21, the approved energy loss target by the Electricity Regulatory Authority was at 20.1%. I however noted from the Grid Energy Reports submitted to ERA, that the Company was unable to meet its target energy losses and most of its service territories registered an average of 32.7% power losses. \uf0b7 I noted non -compliance by the WENRECO to the terms of the Operation and Maintenance Agreement, such as provision of semi-annual reports on status of the assets, safe storage of UEDCL connection materials, participation in the physical network inspection, submission of asset modifications register among others. \uf0b7 The 62,944 poles leased to UMEME by UEDCL were damaged and required replacement which was not done contrary to the provisions of the Lease Agreement. |\n|---:|:-------------|:------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | of UGX 86Bn. Domestic energy sales were 9.5 % below budget. Both sales to Rwanda and DRC 29% below the budget, and no sales were made to South Sudan despite the anticipated revenue of UGX.824 million. \uf0b7 UETCL budgeted to receive from Government, UGX.108.823Bn for capacity charges and deemed energy costs. However, only UGX 36.4Bn was released resulting in a shortfall of UGX 72.423Bn, which is 66% of the budget. \uf0b7 I sampled 40 critical activities implemented under 7 sampled departments under UETCL and noted that 17(43%) tasks had been fully implemented, 13 (32%) were partially implemented, while 10 (25%) were not implemented at all. \uf0b7 A provision for bad and doubtful debts amounting to UGX 161.4bn was made under Trade and other receivables in the financial statements. This was an increment of 25% from the financial year 2019/20. The provision relates to customers with unpaid balances in contravention of the terms and conditions of the power sales agreement. I further noted that 74.7% of the provisions were attributable to only one Company. \uf0b7 Analysis of the trade and other payables revealed an increment of 18.7Bn from UGX.740.8Bn in 2019/20. Included in these payables were amounts of UGX.71.2Bn and USD.4.7 million which have been outstanding for over 10 years. \uf0b7 M/s UMEME and M/s UEDCL withheld UETCL revenue of UGX 64Bn and 10.31Bn, respectively on account of evacuation losses and non-payment of electricity bills by Government MDAs. Withholding revenue constrains UETCL\u2019s ability to pay electricity generators. \uf0b7 The land titling process was not satisfactory on most of UETCL Projects. UETCL takes an average of 3 years to conclude the titling process in contravention of the 6 months period warranted which exposes the company to a risk of litigation and potential encroachment. \uf0b7 UETCL incurred deemed energy costs of UGX 87.7Bn on thirteen (13) PPAs, save for me HPP were directly financed through the tariff system, hence impacting on the electricity price to the final consumer. \uf0b7 I noted that UETCL incurred about UGX 494,150,000 in replacing vandalized tower equipment during the year under review. I further noted that the company incurred UGX. 1.6Bn in replacement costs on assorted transmission line items vandalized between 2017 and 2021. \uf0b7 I noted delays in concluding the procurement process for a sample of procurements with a total contract sum of UGX.17.8Bn with procurements lasting an average of 3 years and some cases going up to 5 years. Prolonged procurement processes deny timely achievement of intended project objectives. | Unnamed: 2 |\n| 1 | 19 | National Pipeline Company 2020/21 Opinion Unqualified | \uf0b7 Out of the total receipts for the financial year of UGX.3.71Bn, UGX.3.71Bn was utilized. This represents an absorption level of 100%. \uf0b7 I noted that the Company failed to maintain National Strategic Reserves. In the period under review, the Consortium failed to meet the required National Strategic Reserve levels of 12 million litres per month. Failure to restock petroleum reserves exposes the Country to supply shocks and a risk of inflated prices in the event of disruptions in the petroleum supplies chain. \uf0b7 I noted that as at 30th June 2021, the consortium had not developed the facilities to enable lake transport to the Jinja Storage Tanks. The construction of an oil jetty and connecting pipeline to Jinja Storage Tanks |", "metadata": {"page": 266, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Unqualified | \uf0b7 I noted power evacuation liability of UGX.15.29Bn, payable to UETCL. This was due to power losses attributed to absence of transmission lines to evacuate electricity from PA Technical, Siti 1 and Arpe Power Plants, as a result of wheeling power over a lower capacity and weaker distribution lines operated by UEDCL. \uf0b7 The long outstanding receivable resulting from payment of former UEB pension costs of UGX.38.6Bn by UEDCL which has never been paid back to the Company by MoFPED. \uf0b7 Failed to meet its targeted annual connection 37,293 of customers whereby only 6,309 (16.9%) connections were made. \uf0b7 I noted that in the FY 2020/21, the approved energy loss target by the Electricity Regulatory Authority was at 20.1%. I however noted from the Grid Energy Reports submitted to ERA, that the Company was unable to meet its target energy losses and most of its service territories registered an average of 32.7% power losses. \uf0b7 I noted non -compliance by the WENRECO to the terms of the Operation and Maintenance Agreement, such as provision of semi-annual reports on status of the assets, safe storage of UEDCL connection materials, participation in the physical network inspection, submission of asset modifications register among others. \uf0b7 The 62,944 poles leased to UMEME by UEDCL were damaged and required replacement which was not done contrary to the provisions of the Lease Agreement. |\n|---:|:-------------|:------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | had not commenced. \uf0b7 I noted delays in implementation of Kampala Storage Terminal (KST). As at 30th June 2021, Preliminary activities such as the Power Reticulation Proposal and Environment Social Impact Assessment for the terminal were undertaken However, Construction activities under the Project had not commenced. | Unnamed: 2 |\n| 1 | 20 | Rural Electrification Agency 2020/21 Opinion Unqualified | \uf0b7 Out of the budgeted government receipts for the financial year of UGX.155.23Bn, a sum of UGX. 149.26Bn was spent by the entity resulting in an unspent balance of UGX.5.97Bn, representing an absorption level of 96%. \uf0b7 I noted outstanding cumulative arrears of revenue in respect to the 5% levy fees due from UETCL amounting to UGX 96.13Bn and UGX.3.69Bn arising from unpaid lease rental from various Service Territory Operators, respectively. \uf0b7 The Rural Electrification Agency had a contingent liability of UGX 19.73Bn in relation to way leaves cases not yet disposed of during the year under review. I further noted that REA had UGX 3.29Bn as an outstanding amount in Court awards due to delayed payment of retention, non- payment for work done, unlawful dismissal and non-renewal of employment contracts \uf0b7 The Agency had challenges in the implementation of the Electricity Connections Policy. As at 30th June 2021, out of the 97,000 annual planned connections, only 3,683 (3.7%) connections were undertaken. Such dismal performance is likely to fail the intended objectives of the policy. \uf0b7 I noted that the entity had outstanding compensations to the landowners of Way leaves amounting to UGX 8.67Bn. This could lead to litigation. |\n| 2 | 21 | Uganda Energy Credit Capitalisation Company Limited 2020/21 Opinion Unqualified | \uf0b7 No material issue reported. \uf0b7 |", "metadata": {"page": 267, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Unqualified | \uf0b7 I noted power evacuation liability of UGX.15.29Bn, payable to UETCL. This was due to power losses attributed to absence of transmission lines to evacuate electricity from PA Technical, Siti 1 and Arpe Power Plants, as a result of wheeling power over a lower capacity and weaker distribution lines operated by UEDCL. \uf0b7 The long outstanding receivable resulting from payment of former UEB pension costs of UGX.38.6Bn by UEDCL which has never been paid back to the Company by MoFPED. \uf0b7 Failed to meet its targeted annual connection 37,293 of customers whereby only 6,309 (16.9%) connections were made. \uf0b7 I noted that in the FY 2020/21, the approved energy loss target by the Electricity Regulatory Authority was at 20.1%. I however noted from the Grid Energy Reports submitted to ERA, that the Company was unable to meet its target energy losses and most of its service territories registered an average of 32.7% power losses. \uf0b7 I noted non -compliance by the WENRECO to the terms of the Operation and Maintenance Agreement, such as provision of semi-annual reports on status of the assets, safe storage of UEDCL connection materials, participation in the physical network inspection, submission of asset modifications register among others. \uf0b7 The 62,944 poles leased to UMEME by UEDCL were damaged and required replacement which was not done contrary to the provisions of the Lease Agreement. |\n|---:|-------------:|:--------------------------------------------------------------------------------------------|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 22 | Grid Expansion and Reinforcement Project \u2013 MEMD 2020/21 Opinion Unqualified | \uf0b7 Out of the total receipts for the financial year of USD.1,698,907.88, only USD.1,030,144.30 was spent resulting into an unspent balance of USD.654,938.58, representing an absorption level of only 60.6%. \uf0b7 I noted low funds disbursement over the Project Life. Out of the loan funds of USD.3,500,000 over the 5-year life of the Project. As at 30th June 2021 (4 years into implementation), only USD.1,965,000 (56%) had been released to the Project, of which USD.1,310,061.41 (67%) had been spent hence putting the overall loan absorption at 37% by 30th June 2021. The Project is expected to close on 31st October 2022. \uf0b7 I noted that Planned Project activities such as development of a Power Sector Integrated Plan had not commenced, while development of a National Electrification Strategy and Environmental and Social monitoring and supervision were still in progress. |\n| 1 | 23 | The Fuel Marking and Quality Monitoring Program, Ministry of Energy and Mineral Development | \uf0b7 Out of the total receipts for the financial year of UGX.9.62Bn, a sum of UGX. 8.71Bn was spent representing 91% absorption level by the program. As a result activities such as Stakeholders\u2019 awareness |", "metadata": {"page": 267, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | 2020/21 Opinion Unqualified | workshops and Training on petroleum standard development were partially implemented. \uf0b7 \uf0b7 I noted non-compliance by fuel stations with the Standard that covers the siting, design and construction of service stations, installation and operation of equipment in service stations for handling, storage and dispensing of petroleum products and their derivatives. \uf0b7 I noted that the Program does not have in place a comprehensive system of monitoring and testing the quality of lubricants and engine oils based on the standards. This poses a risk to motorists who may purchase poor quality engine oils and lubricants. |\n|---:|-------------:|:----------------------------------------------------------------------------------|:-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 24 | The Ministry of Energy and Mineral Development (MEMD) 2020/21 Opinion Unqualified | \uf0b7 I noted in the year under review, that the entity did not have an approved sector development plan (strategic plan) 2020/21. The Accounting Officer explained that a strategic Plan was prepared and is aligned to the NDP III, a however the approval of management delayed due to management transition \uf0b7 The Ministry budgeted to collect NTR of UGX.19.9Bn during the year under review. Out of this, only UGX. 13Bn was realized, representing a performance of 65.3% of the target. This was attributed to COVID Pandemic that greatly affected businesses in the Country to extent that some companies wrote requested for either a reduction or waiving off their rent arrears. \uf0b7 Out of the total warrants for the financial year of UGX.342.3Bn, a sum of UGX.336.9Bn was spent by the entity resulting in an unspent balance of UGX.5.4Bn representing an absorption level of 98%. As a result, I noted that of the 148 quantified activities worth UGX.99.3Bn assessed; 16 activities representing 10.8% were fully implemented, 125 activities representing 84.5% were partially implemented, while 7 activities representing 4.7% were not implemented. \uf0b7 A trend analysis of the domestic arrears reported in Note 24 to the financial statements showed movement of domestic arrears from UGX.18.29Bn in the previous year to UGX.17.13Bn in the year under review, a decrease of 7%. This unsustainable trend poses risks of litigation and related costs inform of interest penalty. \uf0b7 The Ministry received UGX.1.39Bn into the Mineral Royalties Sharing Fund account during the period, in addition to the closing amount of UGX.442.07Mn from the previous period. However, only UGX.1.39Bn was paid leaving an outstanding balance of UGX.433.82Mn which has been correctly disclosed as payables as at year end. \uf0b7 The receivables amount of UGX.14,287,738,002 in the statement of financial position and under Note 19, to the financial statements includes an amount UGX.4,494,005,610 receivables (UGX 4,288,550,000 and UGX.205,455,610 relating to annual mineral rent/royalties and sale of goods and services, respectively) which has been outstanding for over four years. \uf0b7 The RAP implementation and land acquisition for the Karuma Reservoir Area project. The contract has been extended several times with the new completion date set for 23rd June 2022. I established that a RAP survey and valuation report was submitted by the Consultant on 31st April 2021, but, as at 30th June 2021, compensation of the PAPs had not yet commenced. \uf0b7 A review of the Department of Geological Survey and Mines staff |", "metadata": {"page": 268, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | 2020/21 Opinion Unqualified | workshops and Training on petroleum standard development were partially implemented. \uf0b7 \uf0b7 I noted non-compliance by fuel stations with the Standard that covers the siting, design and construction of service stations, installation and operation of equipment in service stations for handling, storage and dispensing of petroleum products and their derivatives. \uf0b7 I noted that the Program does not have in place a comprehensive system of monitoring and testing the quality of lubricants and engine oils based on the standards. This poses a risk to motorists who may purchase poor quality engine oils and lubricants. |\n|---:|:-------------|:---------------------------------------------------------------------------------------------------------------------------------------------------------|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | establishment revealed that out of 127 approved positions, only 85 positions were filled leaving 42 positions vacant representing a staffing gap of 33%. | Unnamed: 2 |\n| 1 | 25 | Kilembe Mines Ltd (KML) 2020/21 Opinion Unqualified | \uf0b7 The entity budgeted to receive UGX.3.574Bn out of which, UGX.857Mn was realised, resulting in a shortfall of UGX.2.717Bn which is 76% of the budget. As a result activities such as dewatering the Copper Mines and revamping of Hima Lime Works, were not been implemented. \uf0b7 \uf0b7 I noted that a number of assets had been damaged / impaired due to waters that broke the banks of River Nyamwamba on 7th and 10th of May, 2020. However, no formal estimate of the recoverable amount has been conducted. This may result into an overstatement of the total assets and understatement of operating loss. \uf0b7 I noted that the Company had an outstanding receivable of UGX.1.26Bn as at 30th June 2021, 54% of the amount relates to unpain rent from Tibet Hima Mining Co. Ltd. Delayed recovery of outstanding revenues affects the Company\u2019s liquidity position. \uf0b7 I noted that the Company had outstanding payables of UGX.2.28Bn. The amount increased from UGX.0.966 to UGX.2.286Bn resulting into an increase of UGX.1.321Bn (137%) as at 30th June 2021. \uf0b7 I noted delayed divesture of Kilembe Mines. Three (3) years have elapsed without an investor/operator being identified to take over Kilembe Mines operations, following the termination of the Tibet Hima Concession Agreement. \uf0b7 Emergency Funding of UGX 4.375bn was required to rehabilitate the damaged Company infrastructure following flooding of rivers Nyamambwa and Mubuku in May and August 2020. However, the requested funds were not availed. \uf0b7 Mubuku Hydro-Power Plant was designed to generate 5MW. I however noted that the plant was only generating 2MW from Unit 1. Units 2 to 4 were out of service for a number of years. \uf0b7 Review of the Annual Performance Report, 2021 revealed that the Company had a number of long outstanding court cases, relating to encroachment of Land belonging to the company. Three cases had been outstanding for over 7 years, three other cases for 5 but less than 7 years and six cases for less than 5 years. |", "metadata": {"page": 269, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | 2020/21 Opinion Unqualified | workshops and Training on petroleum standard development were partially implemented. \uf0b7 \uf0b7 I noted non-compliance by fuel stations with the Standard that covers the siting, design and construction of service stations, installation and operation of equipment in service stations for handling, storage and dispensing of petroleum products and their derivatives. \uf0b7 I noted that the Program does not have in place a comprehensive system of monitoring and testing the quality of lubricants and engine oils based on the standards. This poses a risk to motorists who may purchase poor quality engine oils and lubricants. |\n|---:|-------------:|:---------------------------------------------------------------------------------------------------------------------------------------------------------------|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 26 | Uganda Electricty Generation Company Limited Capacity Building Program-Norwegian Grant Uga-16/0010 Initial Support to UEGCL \u2013 2019 2020/21 Opinion Unqualified | \uf0b7 Out of UGX.6,475,227,265 received for project activities UGX.5,285,679,281 was utilized representing 82% absorption. The under absorption was attributed to postponement of commissioning of Karuma Hydro power plant. \uf0b7 |\n| 1 | 27 | Atomic Energy Council 2020/21 Opinion | \uf0b7 Out of the total receipts for the financial year of UGX. 13.98bn, UGX. 9.96bn was spent by the entity resulting in an unspent balance of UGX 4bn representing an absorption level of 71.2%. As a result, Six (6) outputs with thirty nine (39) activities worth UGX. 4.2Bn were partially |", "metadata": {"page": 269, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Unqualified | implemented. \uf0b7 I noted that the Council lacked of Radiation Protection and Safety Laboratories. There were no Laboratories in place for testing radioactivity levels in food stuffs, construction materials and other consumable products that contain natural radionuclides. This puts the lives of the community at risk. \uf0b7 I noted that the Council lacked adequate specialized inspection equipment required for various practices and activities that involved management of radiation sources. \uf0b7 Out of Staff the Council Establishment of 90 positions, only 49 positions filled leaving 21 positions vacant, representing a staff shortfall of 30%. This affects the efficient and effective execution of the Council mandate. |\n|---:|-------------:|:--------------------------------------------------------------------------------------------|:------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 28 | Energy for Rural Transformation Project (ERT III)-PCU 2020/21 Opinion Unqualified | \uf0b7 Out of the total available funds for the financial year of USD 6,346,771.03, only USD 5,585,830.71 was spent by the Project, resulting in an unspent balance of USD. 760,940.32, representing absorption level of 88%. \uf0b7 I noted low disbursements of loan funds over the Project Life. Out of the ERT III Project loan amount of USD 143.2 Million, only USD 94.5 Million had been disbursed by the Bank to the respective components representing an absorption level of 65% and yet the Project was left with six (6) months to closure on 31 December 2021. \uf0b7 I noted that planned Project activities such as supply and installation of Solar Photovoltaic Energy Packages \u2013 in Schools under the Ministry of Education and Sports and Health Centers under Ministry of Health were not implemented. This resulted into delayed electricity power access by the selected schools and health centres. |\n| 1 | 29 | Opuyo- Moroto 132kv Transmission Line Project - (UETCL) 2019 Opinion Unqualified | \uf0b7 I noted that despite the project nearing completion, out of 1,300 PAPs, only 1,222 had been compensated leaving a balance of 78 (6%) by 30th June 2019. There is a risk that the outstanding compensation of PAPs may further delay project implementation. \uf0b7 I noted that despite the loan last disbursement date being 28th February 2021, only 21% of the total funds were disbursed to both UETCL and REA by 30th June 2019 |\n| 2 | 30 | Opuyo- Moroto 132kv Transmission Line Project - (UETCL) 2020 Opinion Unqualified | \uf0b7 I noted under Note 9.13 that the project payables increased from USD.1,169,371 (2019) to USD. 2,290,568 (2020) due to non payments of service providers at the end of the financial year for the services provided. |\n| 3 | 31 | The 132kv Mirama-Kabale Transmission Line and Distribution Project-2019 Opinion Unqualified | \uf0b7 No significant matters to report on. |", "metadata": {"page": 270, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 32 | The 132kv Mirama-Kabale Transmission Line And Distribution Project-2020 Opinion Unqualified | \uf0b7 No significant matters to report on. |\n|---:|:-----|:---------------------------------------------------------------------------------------------------------------------------------------------|:-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 33.0 | Energy for Rural Transformation III Implemented by Uganda Energy Credit Capitalization Company Limited (ERT III- UECCCL) Opinion Unqualified | \uf0b7 No material issue reported. |\n| 1 | 34.0 | Energy for Rural Transformation III BOU Project (ERT III). Opinion Unqualified | \uf0b7 No material findings to report on |\n| 2 | | EDUCATION SECTOR | |\n| 3 | 1.0 | African Centre for Agro ecology and Livelihood Systems (ACALISE) Project \u2013 UMU 2020/21 Opinion Unqualified | \uf0b7 I noted in the statement of income and expenditure that out of budgeted total revenue of USD 1,807,602 for the financial year 2020/2021, only USD 610,980 (33.8%) was realized leading to a budget shortfall of USD 1,196,622. \uf0b7 I noted that out of the available funds amounting to USD 1,165,530 (current year receipt of USD 610,980 and the balance brought forward of USD 554,550) for the project operations for the financial year, only USD 1,054,538 was spent, leaving an unspent balance of USD 110,992. This represents approximately 90% absorption rate. |\n| 4 | 2.0 | Soroti University. 2020/21 Opinion Unqualified | \uf0b7 I noted that the University did not indicate NTR estimates in its statement of Appropriation. How out of the budgeted NTR of UGX.706,000,000 for the financial year 2020/2021, UGX.195,985,600 was collected representing a performance of 28% of the target. \uf0b7 The entity budgeted to receive UGX.20.229Bn out of which UGX.19.621Bn was warranted, resulting into a shortfall of UGX.0.608 Bn which is 3% of the budget. \uf0b7 I noted the University received off-budget financing to the tune of UGX.36,710,266 which was not transferred to the consolidated fund as required by the law. \uf0b7 Out of the total receipts (warrants) for the financial year of UGX.19.621Bn, UGX.17.484Bn was spent by the entity resulting into an under absorption of UGX.2.137Bn representing an absorption level of 89%. \uf0b7 Ten (10) outputs with a total of ninety-nine (99) activities and |", "metadata": {"page": 271, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 32 | The 132kv Mirama-Kabale Transmission Line And Distribution Project-2020 Opinion Unqualified | \uf0b7 No significant matters to report on. |\n|---:|:-----------|:------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | expenditure worth UGX 10.251Bn were fully quantified while one (1) output with a total of four (4) activities and expenditure worth UGX 1.898Bn was not quantified to enable assessment of performance as there was no output that was insufficiently quantified. \uf0b7 Out of the ten (10) out puts that were fully quantified, one (1) output with a total of 6 (six) activities worth UGX.0.051Bn was fully implemented while 9(nine) outputs with a total of ninety-three (93) activities worth UGX.10.201Bn were partially implemented. \uf0b7 The University closed the financial year with an accumulated payable totaling to UGX.2,604,379,429 of which UGX.559,049,780 had been outstanding for more than one year. \uf0b7 The University paid a contractor UGX.996,389,960 in respect of outstanding debt that included UGX.188,055,690 relating to accrued interest charged by the contractor as a result of delayed payments. The interest expenditure was nugatory | Unnamed: 2 |\n| 1 | 3 | Busitema University. 2020/21 Opinion Unqualified | \uf0b7 Out of the budgeted Non tax revenue of UGX.6,517,061,618 for the year 2020/21, only UGX.4,904,767,921 was collected representing a performance of only 75% of the target. \uf0b7 There was a shortfall in releases amounting to UGX4.63Bn which is 9% of the budget. Furthermore, the entity remained with unspent balance of UGX.1.60Bn representing an absorption level of 97%. \uf0b7 The University received off-budget financing to the tune of UGX.1,462,363,950 which was not transferred to the consolidated fund as required by the law. These funds were received directly from development partners for undertaking activities which were not budgeted for. \uf0b7 Nine (9) outputs with 73 activities worth UGX.33.34Bn were insufficiently quantified. That is out of the Seventy-three (73) activities, twelve (12) activities (16%) were not clearly quantified. Two (2) outputs with a total of eight (8) activities worth UGX.8.52Bn were fully implemented while two (2) outputs with a total of fifteen (15) activities worth UGX3.46Bn were partially implemented. \uf0b7 I noted that the University closed the financial year with outstanding payables to the tune of UGX.1,504,842,864 of which UGX.1,421,201,933 related to unpaid enhanced salaries for administrative and support staff that accrued in the financial year 2016/17. |", "metadata": {"page": 272, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 32 | The 132kv Mirama-Kabale Transmission Line And Distribution Project-2020 Opinion Unqualified | \uf0b7 No significant matters to report on. |\n|---:|-----:|:----------------------------------------------------------------------------------------------|:-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 4 | Gulu University. 2020/21 Opinion Unqualified | \uf0b7 I noted that the University\u2019s strategic plan was not certified by NPA and no feedback had been received by the time of concluding the audit. This was attributed to delays in the review and certification process by NPA. \uf0b7 I reviewed the NTR estimates, revenue sources and rates charged at vote level for the financial year 2020/2021 and noted that the entity budgeted to collect NTR of UGX.12.75Bn during the year under review. Out of this, UGX.4.18Bn was collected, representing a performance of 32.8% of the target. The entity budgeted to receive UGX. 58.88Bn from treasury, out of which UGX.57.90Bn was warranted, resulting into a shortfall of UGX.0.98Bn which is 1.7% of the budget. \uf0b7 Out of the total warrants of UGX 58.11Bn received during the financial year, UGX. 57.90bn was spent by the entity resulting in an unspent balance of UGX 0.21Bn, representing an absorption level of 99.6%. The unspent balance at the end of the financial year was subsequently swept back to the consolidated fund account as required by the PFMA. |", "metadata": {"page": 272, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 32 | The 132kv Mirama-Kabale Transmission Line And Distribution Project-2020 Opinion Unqualified | \uf0b7 No significant matters to report on. |\n|---:|:-----------|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | \uf0b7 The University received off-budget financing to the tune of UGX.6,255,990,597 which was not declared to Treasury and, therefore, not appropriated to the entity by Parliament. These funds were received directly from development partners for undertaking activities not budgeted for. \uf0b7 I reviewed the extent of quantification of outputs and activities for a sample of the ten (10) outputs with a total of twenty (20) activities and expenditure of UGX.45.556Bn and noted that seven (7) outputs with a total of twelve (12) activities and expenditure worth 43.284bn were fully quantified while three (3) outputs with a total of eight (8) activities and expenditure worth UGX. 2.871bn were not quantified at all. \uf0b7 I assessed the implementation of seven (7) out puts that were fully quantified with a total of twelve (12) activities worth UGX.43.282Bn and noted that three (3) outputs with a total of six (6) activities worth UGX.37.054Bn were fully implemented. Two (2) outputs with a total of four (4) activities worth UGX,5.706Bn were partially implemented while two (2) outputs with a total of two (2) activities worth UGX. 0.522Bn were not implemented. \uf0b7 The University had outstanding domestic arrears of UGX.5,681,315,557 dating as far back as financial year 2015/16. There is a risk that the University could face litigation from the suppliers and other beneficiaries. \uf0b7 Gulu University is involved in several court cases and some of the cases remained pending at the financial year end. The cases are mostly between the University and its former staff, students and suppliers. The cases arose mainly from unlawful termination, breach of contracts, unfair treatment, land issues, Arrears/failure to pay suppliers. \uf0b7 Gulu University awarded a contract for the supply and installation of Network Equipment to the Faculty of Agriculture, Biometric Equipment for Staff attendance, Laptops and Desktops for Vice Chancellor, Director ICT and Director Planning & Development at a contract price of UGX.181,794,897 on the 25th June, 2021. However, as at the time of concluding the audit, installation was not undertaken. \uf0b7 Gulu University signed a contract for the construction of the Business and Development Centre on the 19th June, 2019 for a contract price of UGX.30,122,043,772. The construction start date was 1st August, 2019 and the expected completion date of 30th July, 2023. I noted that only UGX.2.1Bn out of UGX.6.0Bn was paid as advance for mobilization and this led to the temporary stoppage of works by the contractor which led to slow progress of the building works. At the time of concluding the audit, no major works were undergoing. \uf0b7 I noted that the following University pieces of land were not titled; forest land measuring 28 hectares, Pajengo Latoro; Agago and Agora Pader land. There is a risk that the land in question could be lost to unscrupulous individuals. \uf0b7 Out of the 1,606 approved positions in Gulu University; only 441 (27%) posts were filled, leaving 1,165 (73%) positions vacant. | Unnamed: 2 |\n| 1 | 5 | The Higher Education Students' Financing Board (HESFB) 2020/21 Opinion Unqualified | \uf0b7 I noted that the University\u2019s strategic plan was not certified by NPA and no feedback had been received by the time of concluding the audit. This was attributed to delays in the review and certification process by NPA. \uf0b7 I reviewed the NTR estimates, revenue sources and rates charged at vote level for the financial year 2020/2021 and noted that the entity budgeted to collect NTR of UGX.12.75Bn during the year under review. Out of this, UGX.4.18Bn was collected, representing a performance of 32.8% of the |", "metadata": {"page": 273, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | posts were filled, leaving 1,165 (73%) positions vacant. | Unnamed: 2 |\n|---:|-------------:|:-----------------------------------------------------------|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 6 | Kabale University. 2020/21 Opinion Unqualified | \uf0b7 I noted that the University prepared a strategic plan aligned to NDP III and the plan was approved by NPA and a certificate of approval issued. \uf0b7 Out of budgeted NTR collections of UGX.7.6 Bn, only UGX. 5.26Bn was realized, representing a performance of 74.6 % of the target. \uf0b7 There was a shortfall in government releases amounting to UGX.0.03Bn representing 0.08% of the budget. \uf0b7 Out of the total receipts for the financial year of UGX.40.95 Bn a sum of UGX. 40.5 Bn was spent by the entity resulting in an unspent balance of UGX 0.45Bn representing an absorption level of 99%. \uf0b7 I sampled 5 outputs of a total of Nine (9) outputs and expenditure worth 37.22.Bn and noted that two (2) outputs with a total of three (3) activities was fully quantified; three (3) outputs with thirteen (13) activities were partially quantified while two (2) activities were not implemented. \uf0b7 The university accumulated receivables totalling to UGX.3,114,950,156 as at 30/6/2021. Under collection of billed revenue cripples, the University\u2019s ability to meet its financial obligations and impacts negatively on service delivery. \uf0b7 I noted the University had outstanding payables of UGX.1,872,390,164 as at 30/6/2021. The failure to clear payables by the closure of the financial year may attract litigation resulting into wasteful expenditure in form of legal fees. |", "metadata": {"page": 275, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | posts were filled, leaving 1,165 (73%) positions vacant. | Unnamed: 2 |\n|---:|-------------:|:-----------------------------------------------------------|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 7 | Lira University. 2020/21 Opinion Unqualified | \uf0b7 The entity submitted its final copy of the strategic plan to National Planning Authority (NPA) for alignment and certification however, no feedback had been received by the entity at the time of audit (September 2021). \uf0b7 I reviewed the NTR estimates, revenue sources and rates charged at vote level for the financial year 2020/2021 and noted that the entity budgeted to collect NTR of UGX 4.948Bn during the year. Out of this, only UGX 1.918Bn was collected, representing a performance of 38.8% of the target. In addition, the University budgeted to receive UGX 27.808Bn out of which UGX.27.118Bn was warranted/availed resulting in a shortfall of UGX.0.698Bn which is 2.5% of the budget. \uf0b7 Out of the total warrants of UGX.27.118Bn received during the financial year, UGX 25.796Bn was spent by the entity resulting in an unspent balance of UGX.1.322Bn representing an absorption level of 95%. The unspent balance at the end of the financial year was subsequently swept back to the consolidated fund as required by the PFMA. \uf0b7 The University received off-budget financing to the tune of UGX.836,710,490 which was not declared to the Treasury and, therefore, not appropriated to the entity by Parliament. These funds were received directly from development partners for undertaking activities not budgeted for. \uf0b7 I reviewed the extent of quantification of outputs and activities for a sample of seven (7) outputs with a total of seventeen (17) activities and expenditure of UGX.22.003Bn and noted that five (5) outputs with a total of six (6) activities and expenditure worth UGX.5.3Bn were fully quantified while two (2) outputs with a total of eleven (11) activities and expenditure worth UGX 16.703Bn were insufficiently quantified. \uf0b7 I assessed the implementation of five (5) outputs that were fully |", "metadata": {"page": 275, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | posts were filled, leaving 1,165 (73%) positions vacant. | Unnamed: 2 |\n|---:|:-------------|:-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | quantified with a total of six (6) activities worth UGX.5.3Bn and noted that two (2) outputs with two (2) activities worth UGX.0.3Bn were fully implemented while three (3) outputs with four (4) activities worth UGX.5Bn were partially implemented. \uf0b7 During the year, the University incurred nugatory expenditure totalling to UGX.25,752,041 being interest and penalties paid resulting from management\u2019s failure to deduct and remit NSSF deductions for the period August 2016 to June 2020. \uf0b7 I noted that Lira University signed a tenancy agreement with the Law Development Centre letting out the first floor of the faculty of Education to LDC at a consideration of UGX.15,300,000 per month inclusive of taxes implying that the University is making a monthly financial loss of UGX.2,754,000 in form of VAT payable to URA. As a result, the university did not remit VAT totalling to UGX. UGX.33,048,000 being VAT payable on rental income to URA on the annual rental income of UGX.183,600,000 (UGX.15,300,000 for 12 months) received by the University. \uf0b7 I noted a delayed construction of the Administration Block following a contract award of UGX.16,664,107,531 to the construction contractor. Despite the expiry of the contract duration of the three years to 11th September 2021, the construction works had not been completed, and the progress of works was estimated at 32% level. However, the supervising contractor had been paid 92% on his contract of UGX.749,885,000 ending 4th February 2022. | Unnamed: 2 |\n| 1 | 8 | MAK Holdings. 2020/21 Opinion Unqualified | \uf0b7 I noted that the Company management budgeted to receive and generate revenue of UGX.1,892,600,000 however, only UGX.809,760,761 (43%) was realized reflecting an underperformance of UGX.1,082,839,239 which is 57% of the expected revenue for the year. \uf0b7 The Makerere University Guest house had accumulated creditors to the tune of UGX.620,024,827 from UGX.405,138,535 in the financial year ended 30th June, 2020 representing a 53% increase in liabilities. Some of the outstanding liabilities include statutory payments worth UGX.240,026,071 \uf0b7 I noted an increase in receivables of UGX.299,307,621 from UGX.271,978,943 reported in the prior year. |", "metadata": {"page": 276, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | posts were filled, leaving 1,165 (73%) positions vacant. | Unnamed: 2 |\n|---:|-------------:|:-----------------------------------------------------------|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 9 | Mapronano World Bank Project. 2020/21 Opinion Unqualified | \uf0b7 I noted that out of the released USD 1,995,561, only USD 1,357,190 was spent by the Project resulting into unspent balance of USD 638,371 representing an under absorption level of 31.98%. The unspent balance at the end of the financial year was subsequently carried forward to the next financial year. \uf0b7 I assessed the implementation of the six (6) out puts with 24 activities that were fully quantified worth USD 2,210,000. Two (2) outputs with two (2) activities worth US$ 171,393 were fully implemented. Four (4) outputs with a total of twenty two (22) activities worth US$ 1,185,795 had 11 activities fully implemented, 9 activities partially implemented, and 4 activities were not implemented. |\n| 1 | 10 | MaRCCI World bank Project. 2020/21 Opinion Unqualified | \uf0b7 I assessed the implementation of the eight (8) out puts with 42 activities that were fully quantified worth US$ $907,282.93, and noted that one (1) output with two (2) activities worth US$ 27,600 was fully implemented while seven (7) outputs with a total of forty (40) activities worth US$ 879,681.93 were partially/not-implemented. The project management implemented sixteen (16) activities fully, eighteen (18) activities partially and six (6) activities were not implemented. |", "metadata": {"page": 276, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | posts were filled, leaving 1,165 (73%) positions vacant. | Unnamed: 2 |\n|---:|:-------------|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | \uf0b7 I noted that the project did not pay staff salaries to the tune of USD 13,596 (approximately UGX.50,305,2000. In addition, PAYE withheld from staff deductions for the months of October and November, 2020 totaling to USD. 11,764 (approximately UGX.43,526,800) was not remitted to Uganda Revenue Authority as per regulations. | Unnamed: 2 |\n| 1 | 11 | Management Training and Advisory Centre (MTAC). 2020/21 Opinion Unqualified | \uf0b7 The MTAC had not prepared the required 5-year strategic plan that is in line with the NDPIII \uf0b7 Out of the budgeted NTR of UGX.2.15Bn for the financial year 2020/2021, a sum of UGX.2.06Bn was collected representing performance of 96% of the target. \uf0b7 Out of the total receipts for the financial year of UGX.5.19Bn, a sum of UGX.3.78Bn was spent by the Centre resulting into unspent balance of UGX.1.41Bn representing an absorption level of 73%. \uf0b7 One (1) output with a total of two (2) activities worth UGX.1.25Bn was partially implemented. Out of the two (2) activities, the entity fully implemented one (1) activity (50%), the entity did not implement one (1) activity (50%). \uf0b7 Though total liabilities decreased by 12%, a review of the age analysis of the payables revealed that a liability totalling to UGX.634,986,966 (79%) has been outstanding for more than one year \uf0b7 I observed that MTAC has operated without the Governing Council since 2015 \uf0b7 Out of 72 posts of the newly implemented MTAC staff establishment, only 54 (75%) were filled leaving 18 (25%) vacancies. Among the vacant posts were key positions of the Executive Director, Director Finance and Administration and Manager-Human resources and Administration. |", "metadata": {"page": 277, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | posts were filled, leaving 1,165 (73%) positions vacant. | Unnamed: 2 |\n|---:|-------------:|:-----------------------------------------------------------|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 12 | Makerere University. 2020/21 Opinion Unqualified | \uf0b7 I noted that the University did not have the strategic plan annualized to indicate which outputs are expected for each year of implementation of the plan covering the period of 2021/21-2024/25. I also noted that whereas the University had prepared and submitted its strategic plan to NPA for approval, it had not yet been approved at the time of audit in October 2021. \uf0b7 I reviewed the NTR estimates, revenue sources and rates charged at vote level for the financial year 2021/2021 and noted that the University budgeted to collect NTR of UGX.95.84Bn during the year under review. Out of this, only UGX.58.29Bn was collected, representing a performance of 60.82% of the target. I further noted that the University budgeted to receive UGX.363.74Bn out of which UGX.359.86Bn was warranted, resulting in a shortfall of UGX.3.88Bn which is 1.1% of the budget. Revenue shortfalls affect implementation of the planned activities. \uf0b7 Out of the total warrants of UGX.359.86Bn received during the financial year, UGX.357.04Bn was spent by the entity resulting in an unspent balance of UGX.2.82Bn representing an absorption level of 99.2%. The unspent funds were swept back to the consolidated fund as required by PFMA. \uf0b7 I noted that the University received off-budget financing to the tune of UGX.237,398,885,878 which was not declared to Treasury and, therefore, not appropriated to the entity by Parliament. These funds were received directly from both development partners and other stakeholders for undertaking activities not budgeted for. \uf0b7 I reviewed the extent of quantification of outputs and activities for a |", "metadata": {"page": 277, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | \uf0b7 A review of the Land register revealed that the University owns land in Kibaale and Makerere Hill. It was however noted that the university had not secured certificate of titles confirming ownership of the two (2) pieces of land. \uf0b7 A review of the staff establishment at the directorates and Colleges revealed an overall staffing gap of 915 positions, which is 44.9 % of the approved establishment. The understaffing was mainly at the Associate Professor level and Professor level. It was further noted that most of the staff at lecturer and senior lecturer level had adequate qualifications but had not been promoted. | Unnamed: 2 |\n|---:|-------------:|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 13 | Muni University. 2020/21 Opinion Unqualified | \uf0b7 I reviewed the NTR estimates, revenue sources and rates charged at vote level for the financial year 2020/2021 and noted that Muni University budgeted to collect NTR of UGX.1.18bn during the year under review. Out of this, only UGX.0.34bn was collected, representing a performance of 29% of the target. \uf0b7 I further noted that the University budgeted to receive UGX.22.60Bn from treasury out of which UGX.21.28Bn was availed, resulting in a shortfall of UGX.1.32Bn which is 5.8% of the budget. \uf0b7 Out of the total warrants of UGX.21.280Bn received during the financial year, UGX.19.982Bn was spent by the entity resulting in an unspent balance of UGX.1.298Bn representing an absorption level of 93.9%. The unspent funds were swept back to the consolidated fund as required by the PFMA. \uf0b7 The University received off-budget financing to the tune of UGX.584,396,093 which was not declared to treasury and, therefore, not appropriated to the entity by Parliament. These funds were received directly from development partners for undertaking activities not budgeted for. \uf0b7 I reviewed the extent of quantification of outputs and activities for a sample of ten (10) outputs with a total of fifty-nine (59) activities and expenditure of UGX.18.9Bn and noted that five (5) outputs with a total of twenty-two (22) activities and expenditure worth UGX.6.47Bn were fully quantified. Two (2) outputs with a total of thirty-three (33) activities and expenditure worth UGX.10.29Bn were insufficiently quantified. While three (3) outputs with a total of four (4) activities and expenditure worth UGX 2.14Bn were not quantified at all. \uf0b7 I assessed the implementation of five (5) out puts that were fully quantified with a total of twenty-two (22) activities worth UGX6.47Bn and noted that three (3) outputs with a total of ten (10) activities worth UGX.0.640Bn were fully implemented while two (2) outputs with a total of twelve (12) activities worth UGX.5.83Bn were partially implemented. \uf0b7 The University spent a sum of UGX.265,775,722 on payment of gratuity expenses during the year against the approved budget and release of only UGX.52,000,000. Payment of gratuity expenses beyond the appropriated and warranted funds is an indication of budget indiscipline and leads to diversion of funds. \uf0b7 The laboratory equipment that included the PCR machine, the high- capacity Fridge for preserving the laboratory specimens, the PCR workstation and many others supplied by the ADB HEST Project last year, had not been put to use due to power challenges. This defeats the purpose for which the equipment was supplied. \uf0b7 Muni University Capacity Building Centre (MUCBC);- Dormitory (Hostels), Dining Hall, Lecture Block, Conference Hall, Office Block, 6 Stance VIP |", "metadata": {"page": 279, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | \uf0b7 A review of the Land register revealed that the University owns land in Kibaale and Makerere Hill. It was however noted that the university had not secured certificate of titles confirming ownership of the two (2) pieces of land. \uf0b7 A review of the staff establishment at the directorates and Colleges revealed an overall staffing gap of 915 positions, which is 44.9 % of the approved establishment. The understaffing was mainly at the Associate Professor level and Professor level. It was further noted that most of the staff at lecturer and senior lecturer level had adequate qualifications but had not been promoted. | Unnamed: 2 |\n|---:|:-------------|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:-------------|\n| 0 | Unnamed: 0 | Latrine and Store have deteriorated and in dire need of renovation. \uf0b7 The University\u2019s land in BidiBidi measuring about 439.58 acres valued at UGX.439,580,000 did not have a land title. \uf0b7 Muni University entered into a contract for the Completion of the Construction of Health Science Laboratory Building at a contract price of UGX.9,393,202,823 inclusive of taxes. However, works were significantly behind schedule at an estimated 36% completion. There is a risk that the Project may not be completed within the projected time frame. | Unnamed: 2 |", "metadata": {"page": 280, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | \uf0b7 A review of the Land register revealed that the University owns land in Kibaale and Makerere Hill. It was however noted that the university had not secured certificate of titles confirming ownership of the two (2) pieces of land. \uf0b7 A review of the staff establishment at the directorates and Colleges revealed an overall staffing gap of 915 positions, which is 44.9 % of the approved establishment. The understaffing was mainly at the Associate Professor level and Professor level. It was further noted that most of the staff at lecturer and senior lecturer level had adequate qualifications but had not been promoted. | Unnamed: 2 |\n|---:|-------------:|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 14 | Mbarara University of Science & Technology. 2020/21 Opinion Unqualified | \uf0b7 I noted that the University had NTR estimates of UGX.12.43Bn out of which UGX.9.28Bn was collected representing 75% of the budget. \uf0b7 I noted that out of the total receipts for the financial year of UGX.55.4Bn, only UGX.51.4Bn was spent by the entity resulting in an unspent balance of UGX.4Bn representing an absorption level of 92.9%. \uf0b7 I noted that the University received off-budget financing to the tune of UGX.9.2Bn which was not transferred to the consolidated fund as required by the law. \uf0b7 I noted that nine (9) outputs with a total of twenty-two (22) activities and expenditure worth 42.9Bn were fully quantified. That is, 99% of the activities within these out-puts were clearly quantified to enable assessment of performance. \uf0b7 I noted that one (1) output with a total of three (3) activities and expenditure worth UGX 0.47Bn was insufficiently quantified. That is, the two (2) activities of the three sampled (67%) of the output was not clearly quantified to enable assessment of performance. \uf0b7 I noted that one (1) output with one activity worth UGX.0.05Bn was fully implemented, while eight (8) outputs with a total of twenty-one (21) activities worth UGX.42.9Bn were partially implemented. Out of the twenty-one (21) activities, the entity fully implemented nine (9) activities (43%), 9 (43%) activities were partially implemented and three (3) activities (14%) remained unimplemented \uf0b7 I noted that the University accumulated receivables totalling to UGX.4,222,012,678 as at 30th June 2021, an increase of UGX.1,427,267,366 (51%) in the outstanding receivables of UGX.2,794,745,312 of the prior year ended 30th June 2020. \uf0b7 I noted that the leasehold land on Plot No. 6, lower circular Road, Mbarara expired on 31st March 2017 and has not been renewed four (4) years after its expiry. \uf0b7 I noted that MUST owns six (6) tourist camping sites (bandas) adjacent to Bwindi forest, in Kanungu district on approximately 2 acres of land which was leased to a service provider for a period of 10 years effective 12/04/2020 at contract sum of UGX.480,000,000 (UGX.48,000,000 annually). However, the service provider did not pay the first instalment of UGX.48,000,000 which was due on 12th April 2021, citing challenges of Covid-19 pandemic. |", "metadata": {"page": 280, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | \uf0b7 A review of the Land register revealed that the University owns land in Kibaale and Makerere Hill. It was however noted that the university had not secured certificate of titles confirming ownership of the two (2) pieces of land. \uf0b7 A review of the staff establishment at the directorates and Colleges revealed an overall staffing gap of 915 positions, which is 44.9 % of the approved establishment. The understaffing was mainly at the Associate Professor level and Professor level. It was further noted that most of the staff at lecturer and senior lecturer level had adequate qualifications but had not been promoted. | Unnamed: 2 |\n|---:|-------------:|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 15 | National Council of Sports. 2020/21 Opinion Unqualified | \uf0b7 Out of the budgeted NTR of UGX.1,185,394,990 for the financial year 2020/2021, UGX.515,782,750 was collected representing a performance of 44% of the target. \uf0b7 The entity budgeted to receive UGX.22.9Bn from the Treasury out of which UGX.21.6Bn was received, resulting into a shortfall of UGX.1.3Bn which was 5.7% of the budget. |", "metadata": {"page": 280, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | \uf0b7 A review of the Land register revealed that the University owns land in Kibaale and Makerere Hill. It was however noted that the university had not secured certificate of titles confirming ownership of the two (2) pieces of land. \uf0b7 A review of the staff establishment at the directorates and Colleges revealed an overall staffing gap of 915 positions, which is 44.9 % of the approved establishment. The understaffing was mainly at the Associate Professor level and Professor level. It was further noted that most of the staff at lecturer and senior lecturer level had adequate qualifications but had not been promoted. | Unnamed: 2 |\n|---:|:-------------|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:-------------|\n| 0 | Unnamed: 0 | \uf0b7 Out of the total receipts for the financial year of UGX.22.165 Bn, UGX.22.160 Bn was spent by the entity resulting into an under absorption of UGX.0.006 Bn representing an absorption level of 99.97%. \uf0b7 Out of the eleven (11) outputs with a total of seventy-six (76) activities and expenditure of UGX.22.059 Bn taken for assessment, six (6) outputs with a total of thirteen (13) activities and expenditure worth UGX.18.708 Bn were fully quantified. \uf0b7 I assessed the implementation of six (6) out puts that were fully quantified with a total of thirteen (13) activities worth UGX.18.708Bn and noted that five (5) outputs with a total of twelve (12) activities worth UGX.18.708Bn were partially implemented. Out of the twelve (12) activities, the entity fully implemented five (5) activities (42%); partially implemented three (3) activities (25%) and four (4) activities (33%) remained unimplemented. \uf0b7 A review of the strategic plan, budgets and other records revealed that Council does not have a policy in place for promoting sports. There was no evidence availed by management to show that there is any framework of relationship with Local authorities to provide sports facilities. \uf0b7 Whereas Council approved funds transfer of UGX.1,431,284,198 to various Associations, there was no evidence to show that Council approved budgets of the individual Associations as required by NCS Regulations. I further noted that the approved funds transfers lacked a schedule supporting the allocation break down. \uf0b7 Out of the 51 registered Associations, 49 submitted information about their other sources of funding. The remaining 2 Associations did not submit the required information for the period under review. \uf0b7 I noted that some Associations did not deduct and remit WHT totalling to UGX.21,636,694 to the Uganda Revenue Authority. | Unnamed: 2 |", "metadata": {"page": 281, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | \uf0b7 A review of the Land register revealed that the University owns land in Kibaale and Makerere Hill. It was however noted that the university had not secured certificate of titles confirming ownership of the two (2) pieces of land. \uf0b7 A review of the staff establishment at the directorates and Colleges revealed an overall staffing gap of 915 positions, which is 44.9 % of the approved establishment. The understaffing was mainly at the Associate Professor level and Professor level. It was further noted that most of the staff at lecturer and senior lecturer level had adequate qualifications but had not been promoted. | Unnamed: 2 |\n|---:|-------------:|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 16 | Uganda Management Institute (UMI). 2020/21 Opinion Unqualified | \uf0b7 I noted that the Institute budgeted to collect NTR of UGX.25.68Bn during the year under review. Out of this, only UGX.9.11Bn was collected, representing a performance of 35.5% of the target. In addition, the Institute budgeted to receive UGX.36.33Bn however, UGX.33.89Bn was availed, resulting in a deficit of UGX.2.44 Bn which is 6.7% of the budget. \uf0b7 Out of the total warrants of UGX.33.88Bn received during the financial year. UGX.29.25Bn was spent by the entity resulting in an unspent balance of UGX.4.63Bn, thus an absorption level of 86.33%. The unspent funds were swept back to the consolidated fund as required by the PFMA. I further noted that the entity did not seek a revision of its budget and work plan as provided for by section 17 (3) of the PFMA 2015. \uf0b7 I noted that the University received off-budget financing to the tune of UGX.185,595,654 which was not declared to treasury and, therefore, not appropriated to the entity by Parliament. These funds were received directly from development partners for undertaking activities not budgeted for. \uf0b7 I reviewed the extent of quantification of outputs and activities for a sample of twelve (12) outputs with a total of sixty-eight (68) activities and expenditure of UGX.35.32Bn and noted that all the twelve (12) outputs with a total of sixty-eight (68) activities and expenditure worth UGX 35.32Bn were not quantified at all. That is, all the sixty-eight (68) activities (100%) within these outputs were not clearly quantified to enable assessment of performance. \uf0b7 I noted that PAYE tax totaling to UGX.589,262,089 was not deducted |", "metadata": {"page": 281, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | \uf0b7 A review of the Land register revealed that the University owns land in Kibaale and Makerere Hill. It was however noted that the university had not secured certificate of titles confirming ownership of the two (2) pieces of land. \uf0b7 A review of the staff establishment at the directorates and Colleges revealed an overall staffing gap of 915 positions, which is 44.9 % of the approved establishment. The understaffing was mainly at the Associate Professor level and Professor level. It was further noted that most of the staff at lecturer and senior lecturer level had adequate qualifications but had not been promoted. | Unnamed: 2 |\n|---:|:-------------|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | from staff gratuity payments on the basis of exemption from PAYE under the Pensions Act However, I noted that the gratuity of staff under contract terms is not regulated by the Pensions Act. \uf0b7 I noted that UMI did not transfer to the Consolidated Fund unspent balances of UGX. 555,953247 on ABSA Project Account at the end of the financial year as advised by the Accountant General. | Unnamed: 2 |\n| 1 | 17 | Uganda National Examinations Board (UNEB). 2020/21 Opinion Unqualified | \uf0b7 Out of the budgeted NTR of UGX.56.7Bn for the financial year 2020/2021, UGX.55.5 Bn was collected representing a performance of 97.9% of the target. \uf0b7 There was no shortfall in Government releases, UNEB budgeted to receive UGX.93.943 Bn from government which was entirely warranted. \uf0b7 Out of the total receipts for the financial year of UGX.149.49Bn, a sum of UGX.149.49 Bn was spent by the Board representing an absorption level of 100%. \uf0b7 UNEB received off-budget financing to the tune of UGX.900,250,000 which was not appropriated by Parliament. These funds were received directly from NAPE-UTSEP project to conduct a survey on behalf of MOES on the effect of COVID-19 on teaching and learning at primary and secondary school levels. \uf0b7 I reviewed the extent of quantification of outputs and activities for all the nine (9) outputs with a total of forty-two (42) activities and expenditure of UGX.149.49Bn and noted the eight (8) outputs with a total of thirty three (33) activities and expenditure worth UGX.101.67Bn were fully quantified. While one (1) output with a total of nine (9) activities and expenditure worth UGX.47.81Bn, was insufficiently quantified. \uf0b7 I assessed the implementation of five (5) outputs that were fully quantified with a total of fifteen (15) activities worth UGX.1.5Bn and noted that Five (5) outputs with fifteen (15) activities and expenditure worth UGX 18.87Bn were fully implemented. Three (3) outputs with eighteen (18) activities worth UGX.82.80Bn were partially implemented. Out of the eighteen (18) activities, the entity fully implemented fourteen (14) activities, two (2) activities partially implemented, while two (2) activities remained unimplemented. |\n| 2 | 18 | BTVET SUPPORT PROJECT 2020/21 Opinion Unqualified | \uf0b7 There were no reportable issues. |", "metadata": {"page": 282, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | \uf0b7 A review of the Land register revealed that the University owns land in Kibaale and Makerere Hill. It was however noted that the university had not secured certificate of titles confirming ownership of the two (2) pieces of land. \uf0b7 A review of the staff establishment at the directorates and Colleges revealed an overall staffing gap of 915 positions, which is 44.9 % of the approved establishment. The understaffing was mainly at the Associate Professor level and Professor level. It was further noted that most of the staff at lecturer and senior lecturer level had adequate qualifications but had not been promoted. | Unnamed: 2 |\n|---:|-------------:|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 19 | Petroleum Geoscience Collaboration Programme (ENPE II PROJECT) 2020/21 Opinion Qualified | \uf0b7 Makerere University main Building was gutted down by fire where vital documents got lost in the inferno. Consequently, payment vouchers and supporting documents in support of payments totaling to UGX.368,361,770 which is 65% of the total expenditure were not presented for examination. I was not able to confirm the authenticity of the expenditure. |\n| 1 | 20 | Makerere Institute of Social Research Beyond Criminal Justice Project Centre File 107453-001 for the Period 1 st January 2013 to 31 st December 2013 | \uf0b7 No material issues to report on |", "metadata": {"page": 282, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | \uf0b7 A review of the Land register revealed that the University owns land in Kibaale and Makerere Hill. It was however noted that the university had not secured certificate of titles confirming ownership of the two (2) pieces of land. \uf0b7 A review of the staff establishment at the directorates and Colleges revealed an overall staffing gap of 915 positions, which is 44.9 % of the approved establishment. The understaffing was mainly at the Associate Professor level and Professor level. It was further noted that most of the staff at lecturer and senior lecturer level had adequate qualifications but had not been promoted. | Unnamed: 2 |\n|---:|:-------------|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:----------------------------------|\n| 0 | Unnamed: 0 | Opinion Unqualified | Unnamed: 2 |\n| 1 | 21 | Makerere Institute of Social Research Beyond Criminal Justice Project Centre File 107453-001 For The Period 1 st January 2014 to 31 st December 2014 Opinion Unqualified | \uf0b7 No material issues to report on |\n| 2 | 22 | Makerere Institute Of Social Research Beyond Criminal Justice Project Centre File 107453-001 For The Period 1st January 2015 To 31st December 2015 Opinion Unqualified | \uf0b7 No material issues to report on |\n| 3 | 23 | Makerere Institute of Social Research Beyond Criminal Justice Project Centre File 107453-001 For The Period 1st January 2016 To 31st December 2016 Opinion Unqualified | \uf0b7 No material issues to report on |\n| 4 | 24 | MAKERERE INSTITUTE OF SOCIAL RESEARCH- HARRY FRANK GUGGENHEIM FOUNDATION GRANT FOR THE PERIOD 1st JANUARY 2014 TO 31ST DECEMBER 2014 Opinion Unqualified | \uf0b7 No material issues to report on |\n| 5 | 25 | MAKERERE INSTITUTE OF SOCIAL RESEARCH- HARRY FRANK GUGGENHEIM FOUNDATION GRANT FOR THE PERIOD 1 st JANUARY 2015TO 31ST DECEMBER 2015 Opinion Unqualified | \uf0b7 No material issues to report on |\n| 6 | 26 | MAKERERE INSTITUTE OF SOCIAL RESEARCH- HARRY FRANK GUGGENHEIM FOUNDATION GRANT FOR THE PERIOD 1 st JANUARY 2016 TO 31ST DECEMBER | \uf0b7 No material issues to report on |", "metadata": {"page": 283, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | \uf0b7 A review of the Land register revealed that the University owns land in Kibaale and Makerere Hill. It was however noted that the university had not secured certificate of titles confirming ownership of the two (2) pieces of land. \uf0b7 A review of the staff establishment at the directorates and Colleges revealed an overall staffing gap of 915 positions, which is 44.9 % of the approved establishment. The understaffing was mainly at the Associate Professor level and Professor level. It was further noted that most of the staff at lecturer and senior lecturer level had adequate qualifications but had not been promoted. | Unnamed: 2 |\n|---:|:-------------|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:------------------------------------|\n| 0 | Unnamed: 0 | 2016 Opinion Unqualified | Unnamed: 2 |\n| 1 | 27 | Makerere Institute Of Social Research Internally Generated Funds For The Period 1st July 2012 To 30th June 2013 Opinion Unqualified | \uf0b7 No material issues to report on \uf0b7 |\n| 2 | 28 | Makerere Institute of Social Research Internally Generated Funds for The Period 1st July 2013 To 30th June 2014 Opinion Unqualified | \uf0b7 No material issues to report on \uf0b7 |\n| 3 | 29 | Makerere Institute of Social Research Internally Generated Funds for The Period 1st July 2014 to 30th June 2015 Opinion Unqualified | \uf0b7 No material issues to report on \uf0b7 |\n| 4 | 30 | Makerere Institute of Social Research Internally Generated Funds for The Period 1st July 2015 to 30th June 2016 Opinion Unqualified | \uf0b7 No material issues to report on \uf0b7 |\n| 5 | 31 | Makerere Institute of Social Research- Norhed Project \u201cBuilding and Reflecting on Interdisciplinary Phd- Studies for Higher Education Transformation\u201d Grant Number: Uga- 13/0023 For the Period 1st January 2014 to 31st December 2014 Opinion Unqualified | \uf0b7 No material issues to report on \uf0b7 |\n| 6 | 32 | Makerere Institute of Social Research- Norhed Project \u201cBuilding and Reflecting on Interdisciplinary Phd- | \uf0b7 No material issues to report on \uf0b7 |", "metadata": {"page": 284, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | \uf0b7 A review of the Land register revealed that the University owns land in Kibaale and Makerere Hill. It was however noted that the university had not secured certificate of titles confirming ownership of the two (2) pieces of land. \uf0b7 A review of the staff establishment at the directorates and Colleges revealed an overall staffing gap of 915 positions, which is 44.9 % of the approved establishment. The understaffing was mainly at the Associate Professor level and Professor level. It was further noted that most of the staff at lecturer and senior lecturer level had adequate qualifications but had not been promoted. | Unnamed: 2 |\n|---:|:-------------|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:------------------------------------|\n| 0 | Unnamed: 0 | Studies for Higher Education Transformation\u201d Grant Number: Uga- 13/0023 For the Period 1st January 2015 to 31st December 2015 Opinion Unqualified | Unnamed: 2 |\n| 1 | 33 | Makerere Institute of Social Research- Norhed Project \u201cBuilding and Reflecting On Interdisciplinary Phd- Studies For Higher Education Transformation\u201d Grant Number: Uga- 13/0023 For The Period 1st January 2016 To 31st December 2016 Opinion Unqualified | \uf0b7 No material issues to report on |\n| 2 | 34 | Makerere Institute of Social Research- Think Tank Initiative Phase 2 Institutional Support Centre File: 107906-001 For The Period 1st January 2014 To 31st December 2014 Opinion Unqualified | \uf0b7 No material issues to report on \uf0b7 |\n| 3 | 35 | Makerere Institute of Social Research- Think Tank Initiative Phase 2 Institutional Support Centre File: 107906-001 For the Period 1st January 2015 to 31st December 2015 Opinion Unqualified | \uf0b7 No material issues to report on |\n| 4 | 36 | Makerere Institute of Social Research- Think Tank Initiative Phase 2 Institutional Support Centre File: 107906-001 For the Period 1st January 2016 to 31st December 2016 Opinion Unqualified | \uf0b7 No material issues to report on |\n| 5 | 37 | Makerere Institute of Social Research- Carnegie | \uf0b7 No material issues to report on |", "metadata": {"page": 285, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Corporation Grant Number B 8741.Ro1 for the Period 1st January 2014 to 31st December 2014 Opinion Unqualified | \uf0b7 |\n|---:|-------------:|:---------------------------------------------------------------------------------------------------------------------------------------------------------------|:-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 38 | Makerere Institute of Social Research Carnegie Corporation Grant Number B 8741.R01 for the Period 1 st January 2015 to 31 st December 2015 Opinion Unqualified | \uf0b7 No material issues to report on \uf0b7 |\n| 1 | 39 | Makerere Institute of Social Research-Carnegie Corporation Grant Number B 8741.Ro1 For the Period 1st January 2016 To 31st December 2016 Opinion Unqualified | \uf0b7 No material issues to report on \uf0b7 |\n| 2 | 40 | Kyambogo University Enable Report June 2020 Opinion Unqualified | \uf0b7 No material issues to report on \uf0b7 |\n| 3 | 41 | KYU University ENABLE Project Report Dec 2020 Opinion Unqualified | \uf0b7 No material issues to report on \uf0b7 |\n| 4 | 42 | KYU NORHED-MVP Project Report June 2020 Opinion Unqualified | \uf0b7 No material issues to report on \uf0b7 |\n| 5 | 43 | KYU NORHED-MVP Project Report Dec 2020 Opinion Unqualified | \uf0b7 No material issues to report on \uf0b7 |\n| 6 | 44 | Uganda Petroleum Institute Kigumba 2020/21 Opinion Unqualified | \uf0b7 I noted that the Institute submitted its strategic plan for the period 2021- 2025 to NPA for review and approval but at the time of audit the certificate of approval had not been received. \uf0b7 Out of the budgeted NTR of UGX.0.67Bn for the year 2020/2021only UGX.0.073Bn was collected, representing a performance of 9% of the target. Similarly, the Institute budgeted to receive UGX.8.5bn from GOU |", "metadata": {"page": 286, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Corporation Grant Number B 8741.Ro1 for the Period 1st January 2014 to 31st December 2014 Opinion Unqualified | \uf0b7 |\n|---:|:-------------|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | of which UGX.6.65bn was warranted, resulting in a shortfall of UGX. 1.85bn representing 21% of the budget. \uf0b7 I noted that the Institute spent all the funds that was available amounting to UGX.6.92bn representing 100% performance. \uf0b7 I noted that Seven (7) outputs with fifteen (15) activities and expenditure worth UGX.4Bn were fully quantified. That is, 100% of the activities within these out-puts were clearly quantified to enable assessment of performance. I further noted that Twelve (12) outputs with Twenty two (22) activities and expenditure worth UGX.2.49Bn was not quantified to enable assessment of performance. \uf0b7 Out of the Seven (7) quantified outputs three (3) outputs with seven (7) activities and expenditure worth UGX 4.39Bn were fully implemented while two (2) outputs with four (4) activities worth UGX.0.25Bn were partially implemented as two (2) outputs with four (4) activities worth UGX0.33Bn were not implemented. That is none of the four (4) activities was implemented at all. \uf0b7 The Institute had accumulated domestic arrears totalling to UGX. UGX.1.03Bn by the closure of the financial year under review (2020/2021) thereby being expressed to risk of litigation. \uf0b7 The Institute had outstanding receivables totalling to UGX.0.055Bn by the closure of the financial year under review. \uf0b7 Construction of Female hostel block, 2 Lecture halls, Library and an information Centre and Health Centre had delayed by 20months from the initial completion date of 27th March, 2020. \uf0b7 Out of the 103 approved staff established of the Institute, only 84 posts had been filled leaving 19 (18%) positions vacancies. I further noted that in spite of the vacant positions, the Institute had recruited an additional Forty-six (46) staff on contract terms outside the approved structure. | Unnamed: 2 |\n| 1 | 45 | Tb Preventive Therapy for Hiv-Infected Alcohol Users in Uganda: An Evaluation of Safety, Tolerability and Adherence (ADEPTT) Project 2018 Opinion Unqualified | \uf0b7 I noted that the closing balance of USD 12,178.00 was different from the balance brought forward as at 1st September 2017 of USD 9,615.58 creating a difference of USD 2,562.42. The difference could not be explained by management and was therefore disclosed in the Fund accountability statement as unaccounted for funds. \uf0b7 |\n| 2 | 46 | MUST- Public Engagement Fund Grant, \u2018Unpacking Design Thinking Principles Through Biomedical Engineering Student\u2019s Innovation Cafes\u2019 Bmeic Project \u2013 2020 Opinion Unqualified | \uf0b7 No Reportable issues. \uf0b7 |", "metadata": {"page": 287, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Corporation Grant Number B 8741.Ro1 for the Period 1st January 2014 to 31st December 2014 Opinion Unqualified | \uf0b7 |\n|---:|-------------:|:------------------------------------------------------------------------------------------------------------------------|:-----------------------------------|\n| 0 | 47 | MUST- Serial Killers to Mosquitoes; The Spatial Targeting of Larval Habitats in Rural Uganda Using Geographic Profiling | \uf0b7 No Material Reportable issues. \uf0b7 |", "metadata": {"page": 287, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Corporation Grant Number B 8741.Ro1 for the Period 1st January 2014 to 31st December 2014 Opinion Unqualified | \uf0b7 |\n|---:|:-------------|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------|:-----------------------------------|\n| 0 | Unnamed: 0 | (Breeding Sites) Project \u2013 2019 Opinion Unqualified | Unnamed: 2 |\n| 1 | 48 | Epidemiology of Coronary Artery Disease Among People with Hiv In Rural Sub-Sahara Africa (CAD) Project 2019 Opinion Unqualified | \uf0b7 No Material Reportable issues. \uf0b7 |\n| 2 | 49 | MUST- Interventions to Reduce Alcohol Use and Increase Adherence to TB Prevention Therapy Among Hiv/Tb Co-Infected Drinkers (DIPT) 2019 Opinion Unqualified | \uf0b7 No Material Reportable issues. \uf0b7 |\n| 3 | 50 | MUST-Population Effectiveness of Dolutegravir Implementation in Sub- Saharan Africa: A Prospective Observational Cohort Study\u201d (DISCO), 2020 Opinion Unqualified | \uf0b7 No Material Reportable issues. \uf0b7 |\n| 4 | 51 | MUST- Mobile Technology to Extend Clinic \u2013 Based Counseling For Hiv+ In Uganda (Extend), Project \u2013 2019 Opinion Unqualified | \uf0b7 No Material Reportable issues. \uf0b7 |\n| 5 | 52 | MUST- Mama Namtoto: Barriers and Enablers to Gender, Equity and Scale- Up in Tanzania Project Code 108547-002, 2018 Opinion Unqualified | \uf0b7 No Material Reportable issues. \uf0b7 |\n| 6 | 53 | Must- Research Aimed at Developing Sustainable Low Field Magnetic Resonance Imaging (MRI-NIH) Project | \uf0b7 No Material Reportable issues. \uf0b7 |", "metadata": {"page": 288, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Corporation Grant Number B 8741.Ro1 for the Period 1st January 2014 to 31st December 2014 Opinion Unqualified | \uf0b7 |\n|---:|:-------------|:------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | \u2013 2019 Opinion Unqualified | Unnamed: 2 |\n| 1 | 54 | Advancing Hiv Research at MUST Through A Research Administration Training Project with the University of Virginia (RASA) -2020 Opinion Unqualified | \uf0b7 No Material Reportable issues. \uf0b7 |\n| 2 | 55 | MUST- Resistance Testing Versus Adherence Support for Management of Patients with Virologic Failure on First-Line Antiretroviral Therapy in Sub-Saharan Africa (Revamp) Project No. 04/05-16 \u2013 2018 Opinion Unqualified | \uf0b7 I noted that the opening bank balance of USD 58,902 was different from the balance brought forward as at 1st July 2017 of USD 49,244, thus creating unexplained difference of USD 9,658. The difference was disclosed in the Fund accountability statement as unaccounted for funds. \uf0b7 I noted stale payments (cheques) totaling to USD 29,567.06 that were kept beyond six months in favor of government agencies and suppliers of goods and services which were never paid by the Project. This creates a risk of court fines and penalties. |\n| 3 | 56 | MUST- Analysis of Past and Projected Future Land Use Change and Its Impact on Sediment Fluxes in The Rwizi Catchment (Vlir Rwizi) Project \u2013 2018 Opinion Unqualified | \uf0b7 No Material Reportable issues. \uf0b7 |\n| 4 | 57 | MUST- Smart Discharge to Improve Post-Discharge Health Outcomes in Children: A Prospective Stepped-Wedge Effectiveness Study (Smart Discharge) Project - 2019. Opinion Unqualified | \uf0b7 No Material Reportable issues. \uf0b7 |\n| 5 | 58 | Social Networks, Hiv Stigma, And the Hiv Care Cascade in Rural Uganda Project Of Mbarara Universisty Of Science and Technology- 2019 Opinion Unqualified | \uf0b7 No Material Reportable issues. \uf0b7 |\n| 6 | 59 | MUST-The Virologic And Pharmacologic | \uf0b7 No Material Reportable issues. |", "metadata": {"page": 289, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Determinants of Dolutegravir Failure in East Africa (Tld) Project 2019 Opinion Unqualified | \uf0b7 |\n|---:|-------------:|:--------------------------------------------------------------------------------------------------------------------------------------------------|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 60 | MUST- Voices of The Indigenous People Of Uganda Project 2020 Opinion Unqualified | \uf0b7 No Material Reportable issues. \uf0b7 |\n| 1 | 61 | Education Service Commission 2020/21 Opinion Unqualified | \uf0b7 I noted the Commission closed the year with outstanding payables/domestic Arrears worth UGX.0.255Bn. \uf0b7 The Commission received all the budgeted amount of UGX.9.38Bn and had unspent balance of UGX. 0.82Bn, representing an absorption level of 91%. \uf0b7 I noted that the Commission quantified all its outputs. Ten (10) outputs were fully quantified with a total of thirty five (35) activities worth UGX 8.55Bn. Seven (7) outputs with twenty four (24) activities worth UGX.8.1Bn were partially implemented, while one (1) output with one (1) activity worth UGX.0.015Bn was not implemented. \uf0b7 |\n| 2 | 62 | Multinational Statistical Capacity Building Program for Managing for Development Results - Phase 4.2 (MSCB-AFDB) Project 2017 Opinion Unqualified | \uf0b7 No Material Reportable issues. \uf0b7 |\n| 3 | 63 | Multinational Statistical Capacity Building Program for Managing for Development Results - Phase 4.2 (MSCB-AFDB) Project 2018 Opinion Unqualified | \uf0b7 No Material Reportable issues. \uf0b7 |\n| 4 | 64 | Multinational Statistical Capacity Building Program for Managing for Development Results - Phase 4.2 (MSCB-AFDB) Project 2019 Opinion Unqualified | \uf0b7 No Material Reportable issues. \uf0b7 |", "metadata": {"page": 290, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Determinants of Dolutegravir Failure in East Africa (Tld) Project 2019 Opinion Unqualified | \uf0b7 |\n|---:|:-------------|:--------------------------------------------------------------------------------------------------------------------------------------------------|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | Unnamed: 1 | Unnamed: 2 |\n| 1 | 65 | Multinational Statistical Capacity Building Program for Managing for Development Results - Phase 4.2 (MSCB-AFDB) Project 2020 Opinion Unqualified | \uf0b7 No Material Reportable issues. \uf0b7 |\n| 2 | 66 | Mandela National Stadium Limited 2020/21 Opinion Unqualified | \uf0b7 I noted that the Company had no approved strategic plan that is aligned to NDPIII at the time of audit. \uf0b7 I noted that although the Company realized 101% of the budgeted, the original budget was revised from UGX.6.07Bn to UGX.2.63bn to match the expected revenue. \uf0b7 Out of the total receipts for the financial year of UGX.2.66bn, UGX. 1.36 Bn was resulting into an unspent balance of UGX.1.3bn representing an absorption level of 51%. \uf0b7 I noted that the Stadium quantified all its five (5) outputs and all the outputs were partially implemented whereby out of forty four (44) activities, the entity fully implemented seven (7) activities (16%), partially implemented five (5) activities (11%), while thirty two (32) activities (73%) remained unimplemented. \uf0b7 I noted that MNSL liabilities remained on a higher side despite a registered decrease from UGX.5.38Bn in the F/Y 2019/2020 to UGX.3.89Bn as at the end of the financial year under review representing a reduction of UGX.1.49 (28%). \uf0b7 I noted that Mandela National stadium closed the financial year with a receivables figure of UGX.2.42Bn, a reduction of only 7% from receivables of UGX.2.59 as at the end of the previous FYR: 2019/2020. \uf0b7 I noted that the Company did not implement its Staffing Strategy of the current running strategic plan 2018-2023. \uf0b7 I noted that stadium Land continues to have illegal occupants. |", "metadata": {"page": 291, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Determinants of Dolutegravir Failure in East Africa (Tld) Project 2019 Opinion Unqualified | \uf0b7 |\n|---:|-------------:|:----------------------------------------------------------------------------------------------------------|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 67 | The Albertine Region Sustainable Development Project (ARSDP) - MOES Component 2020/21 Opinion Unqualified | \uf0b7 Assessment of the Project\u2019s performance for the five year Project work plan implementation status revealed that one objective/goal had been achieved, while the remaining seven (7) were partially achieved. \uf0b7 Out of the project donor budgeted receipts of UGX.41.3Bn only UGX.35.5Bn was released, resulting in a shortfall of 5.5Bn representing 86% performance; out of the GOU budgeted amount of UGX. 2.94Bn, only UGX.2.66Bn was released, resulting in a shortfall of 0.28Bn representing 91% performance. \uf0b7 Out of the total receipts for the financial year of UGX. 35.5Bn, UGX.32.3Bn was spent by the Project leaving a balance of UGX.3.2Bn representing 91% performance. \uf0b7 I noted that four (4) outputs and nine (9) activities to be implemented; Three (3) outputs with a total of eight (8) activities and expenditure worth UGX.18.79Bn were fully quantified while One (1) output with one (1) activity and expenditure worth UGX.13.48Bn was insufficiently quantified to enable the assessment of performance. \uf0b7 I noted that three (3) out puts with a total of eight (8) activities worth |", "metadata": {"page": 291, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Determinants of Dolutegravir Failure in East Africa (Tld) Project 2019 Opinion Unqualified | \uf0b7 |\n|---:|:-------------|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:-----------|\n| 0 | Unnamed: 0 | UGX.25.18Bn were fully quantified. \uf0b7 I noted One (1) output with two (2) activities and expenditure worth UGX 14.53Bn was fully implemented. That is all the two (2) activities within this output were fully implemented. I further noted that One (1) output with Five (5) activities worth UGX.3.60Bn was partially implemented. I also noted that One (1) output with one (1) activity worth UGX.0.68Bn was not implemented. That is; the one (1) activity was not implemented at all. \uf0b7 Review of the Implementation status of the aide Memoir reports by the World bank for the Project monitoring mission activity for the period 27th July -3rdAugust 2020, 2nd-10th December 2020 Mission and 16th-25th March, 2021 revealed that some of the agreed upon actions/recommendations between the World Bank and MoES \uf0b7 Implementation status of aide Memoir reports indicated that some recommendations had either been partially implemented or not implemented. \uf0b7 I noted that there was no internal audit review carried out on the operations of ARSDP during the period under review contrary to the requirement in Section II (B) of the ARSDP Financing agreement. | Unnamed: 2 |", "metadata": {"page": 292, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Determinants of Dolutegravir Failure in East Africa (Tld) Project 2019 Opinion Unqualified | \uf0b7 |\n|---:|-------------:|:---------------------------------------------------------------------------------------------|:------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 68 | Kyambogo University 2020/21 Opinion Unqualified | \uf0b7 I noted that the University prepared a strategic plan and obtained a certificate of compliance on the 27th of September 2021 from National planning Authority (NPA). \uf0b7 The University collected UGX.40.9Bn (53%) of its budgeted non-tax revenue of UGX.77.1Bn. I further noted that the university received UGX.130.07Bn (93%) out of the budgeted GOU receipts amount of UGX.140.6Bn. \uf0b7 Out of the total warrants for the financial year of UGX.130.07Bn, only UGX.124.5 was spent by the University resulting into unspent balance of UGX.5.53Bn representing an absorption level of 96%. \uf0b7 The University received Donor financing to the tune of UGX.3.11Bn of which only UGX.2.68Bn had been included in the budget reflecting off budget receipts of UGX.0.43Bn. \uf0b7 I noted that out of the 14 outputs sampled, 4 out puts (29%) were fully quantified, 8 out puts (57%) were insufficiently quantified while 2 out puts (14%) were not quantified at all. I also noted that the University did not fully implement any of the 4 fully quantified out puts. \uf0b7 The University had outstanding domestic arrears and outstanding receivables of UGX.13.6Bn and UGX.23.2Bn, respectively. \uf0b7 Some of the University land had illegal land occupants. I further noted that there were variations between the area on the Certificate of Tittle and actual Area on the ground for plot M902 of the University land. \uf0b7 Out of the 1,671 approved posts for the University, only 928 (55.5%) were filled leaving 743 (45.5%) posts vacant. This has a negative impact on education service delivery. \uf0b7 The University had MOUs for only 40 of the 112 affiliated Institutions. I further noted that of the 40 MOUs availed; MOUs for 9 Institutions had expired. \uf0b7 |\n| 1 | 69 | The National Council for Higher Education | \uf0b7 Out of budgeted NTR collections of UGX. 6.25bn, only UGX. 2.96Bn was |", "metadata": {"page": 292, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | 2020/21 Opinion Unqualified | realized, representing a performance of 47.4%. \uf0b7 The Council budgeted to receive UGX.5.4Bn from Government out of which UGX.5.01Bn was availed, resulting in a shortfall of UGX0.39Bn, which is 7.2% of the budget. \uf0b7 Out of UGX.8.86 Bn available for spending during the financial year, UGX.8.75Bn was spent by the entity resulting into unspent balance of UGX 0.11 Bn, representing absorption level of 99%. \uf0b7 I noted that out of the one hundred sixteen (116) activities, fifty three (53) activities (46%) were quantified, while the balance of sixty three (63) activities (54%) were not clearly quantified to enable the assessment of performance. I further noted that One (1) output with a total of Nine (9) activities and expenditure worth UGX 0.62 Bn were not quantified at all. |\n|---:|-------------:|:-------------------------------------------------------------------|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 70 | National Curriculum Development Centre 2020/21 Opinion Unqualified | \uf0b7 I noted that whereas NCDC had prepared a strategic plan and whereas a notification of approval had been provided by NPA, a certificate of approval was yet to be obtained. \uf0b7 Out of the budgeted NTR of UGX.250,000,000 for the financial year under review, UGX.93,000,000 was collected representing a performance of 37.2% of the target. \uf0b7 The entity budgeted to receive UGX.40.163Bn from Treasury out of which UGX.37.138 Bn was warranted, resulting into a budget shortfall of UGX.3.025Bn which is 7.5% of the budget. \uf0b7 The Centre received off-budget financing to the tune of UGX.1,661,966,260 which was not transferred to the Consolidated Fund as required by the law and hence not appropriated. \uf0b7 Out of the total receipts for the financial year of UGX 37.137bn a sum of UGX. 36.929bn was spent by the entity resulting into an under absorption of UGX.0.208bn representing absorption level of 99.4%. \uf0b7 Out of the eleven (11) outputs with a total of seventy three (73) activities and expenditure of UGX.36.88 Bn, nine (9) outputs with a total of sixty eight (68) activities and expenditure worth UGX 35.95 Bn were fully quantified, one (1) output with a total of two (2) activities and expenditure worth UGX.0.16Bn were insufficiently quantified, and one (1) output with a total of one (1) activity and expenditure worth UGX 0.77Bn was not quantified to enable assessment of performance. \uf0b7 I assessed the implementation of nine (9) out puts that were fully quantified with a total of sixty eight (68) activities worth UGX.35.95Bn and noted the following; Two (2) outputs with 2 (two) activities worth UGX 0.75 Bn were fully implemented. The entity implemented the two (2) activities (100%) within the outputs. Secondly; seven (7) outputs with a total of sixty six (66) activities worth UGX.35.20Bn were partially implemented. Out of the sixty six (66) activities, the entity fully implemented forty one (41) activities (62%); partially implemented seven (7) activities (11%) and eighteen (18) activities (27%) remained unimplemented. \uf0b7 I noted that goods and services totalling to UGX.5,296,396,760 did not have corresponding WHT transactions totalling to UGX.317,783,806 on the IFMS payment file. I further noted that there was no evidence of exemptions. \uf0b7 Payments totalling to UGX.7,616,021 were made to staff of the Centre contrary to the e-cash guidelines. Similarly, funds totalling to UGX.31,448,969 were irregularly paid to payees who were already |", "metadata": {"page": 293, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | 2020/21 Opinion Unqualified | realized, representing a performance of 47.4%. \uf0b7 The Council budgeted to receive UGX.5.4Bn from Government out of which UGX.5.01Bn was availed, resulting in a shortfall of UGX0.39Bn, which is 7.2% of the budget. \uf0b7 Out of UGX.8.86 Bn available for spending during the financial year, UGX.8.75Bn was spent by the entity resulting into unspent balance of UGX 0.11 Bn, representing absorption level of 99%. \uf0b7 I noted that out of the one hundred sixteen (116) activities, fifty three (53) activities (46%) were quantified, while the balance of sixty three (63) activities (54%) were not clearly quantified to enable the assessment of performance. I further noted that One (1) output with a total of Nine (9) activities and expenditure worth UGX 0.62 Bn were not quantified at all. |\n|---:|:-------------|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | registered suppliers/vendors on IFMS. Also Funds to the tune of UGX.22,105,200, were utilized for expenses that were not provided for in the budget, to cater for COVID-19 SOPs. | Unnamed: 2 |\n| 1 | 71 | Makerere-Sida Bilateral Research Program 2020/21 Opinion Unqualified | \uf0b7 No material Issues to report on \uf0b7 |\n| 2 | 72 | Pharm-Biotechnology and Traditional Medicine (Pharmbiotrac) Centre Ace Ii Project 2020/21 Opinion Unqualified | \uf0b7 I noted that a sum of USD.4,754,402 (88%) was disbursed in the 4 years period to 30th June 2021 against the planned cumulative expenditure of USD 5,404,514. \uf0b7 I noted that out of the total available financing for the financial year of USD.1,506,515 only USD.1,105,054 was spent by the Project resulting into an unspent balance of USD.401,461 representing an absorption level of 73%. \uf0b7 I noted that all the ten (10) outputs with a total of eighty seven (87) activities and expenditure of USD.1,105,054 were clearly quantified to enable assessment of performance. \uf0b7 I noted that all the ten (10) outputs with a total of eighty seven (87) activities worth USD. 1.1million were partially implemented. Out of eighty seven (87) activities, the entity fully implemented forty five (45) activities (52%), the entity partially implemented fifteen (15) activities (17%), while twenty seven (27) activities (31%) remained unimplemented. \uf0b7 \uf0b7 I noted that the Project had not obtained Patent rights over the various Products it had developed. |", "metadata": {"page": 294, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | 2020/21 Opinion Unqualified | realized, representing a performance of 47.4%. \uf0b7 The Council budgeted to receive UGX.5.4Bn from Government out of which UGX.5.01Bn was availed, resulting in a shortfall of UGX0.39Bn, which is 7.2% of the budget. \uf0b7 Out of UGX.8.86 Bn available for spending during the financial year, UGX.8.75Bn was spent by the entity resulting into unspent balance of UGX 0.11 Bn, representing absorption level of 99%. \uf0b7 I noted that out of the one hundred sixteen (116) activities, fifty three (53) activities (46%) were quantified, while the balance of sixty three (63) activities (54%) were not clearly quantified to enable the assessment of performance. I further noted that One (1) output with a total of Nine (9) activities and expenditure worth UGX 0.62 Bn were not quantified at all. |\n|---:|-------------:|:--------------------------------------------------------------------|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 73 | Ministry of Education and Sports (MOES) 2020/21 Opinion Unqualified | \uf0b7 I noted that the Ministry\u2019s Strategic plan was not yet approved by National Planning Authority at the time of audit. \uf0b7 The Ministry budgeted to collect NTR of UGX.6.3Bn during the year under review out of which, only UGX.0.13Bn was realized, representing a performance of only 2% of the target. \uf0b7 The entity budgeted for GOU receipts of UGX.388.4bn of which UGX.369bn was warranted, resulting into a shortfall of UGX.19.4Bn which is 5% of the budget. \uf0b7 Out of the total receipts for the financial year of UGX.369Bn, a sum of UGX.343.6Bn was spent by the Ministry resulting into an unspent balance of UGX.23.3Bn representing an absorption level of 93%. \uf0b7 Twenty three (23) outputs with a total of sixty four (64) activities and expenditure of UGX. 274.4Bn that were sampled were fully quantified. \uf0b7 Ten (10) outputs with a total of twenty seven (27) activities worth UGX.124.1Bn were fully implemented. Nine outputs (9) outputs with a total of twenty five (25) activities worth UGX 98.4Bn were partially implemented while Four (4) outputs with a total of twelve (12) activities worth 51.83 Bn were not implemented at all. \uf0b7 The Ministry spent UGX.5.3Bn on Covid-19 impacted expenditure to cater for printing and distribution of home learning materials, content writing for home learning materials which was not in the approved budget and there was no evidence of a supplementary request. |", "metadata": {"page": 294, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | 2020/21 Opinion Unqualified | realized, representing a performance of 47.4%. \uf0b7 The Council budgeted to receive UGX.5.4Bn from Government out of which UGX.5.01Bn was availed, resulting in a shortfall of UGX0.39Bn, which is 7.2% of the budget. \uf0b7 Out of UGX.8.86 Bn available for spending during the financial year, UGX.8.75Bn was spent by the entity resulting into unspent balance of UGX 0.11 Bn, representing absorption level of 99%. \uf0b7 I noted that out of the one hundred sixteen (116) activities, fifty three (53) activities (46%) were quantified, while the balance of sixty three (63) activities (54%) were not clearly quantified to enable the assessment of performance. I further noted that One (1) output with a total of Nine (9) activities and expenditure worth UGX 0.62 Bn were not quantified at all. |\n|---:|:-------------|:------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | \uf0b7 Out of a sum of UGX. 23.44Bn released to the ministry in respect of Covid-19 response related expenditure only UGX.9.62 (55.4%) remained unspent and was subsequently swept back to the Consolidated Fund Account. \uf0b7 I noted under Note 18 to the financial statements and the statement of financial position that the ministry had receivables totaling to UGX.10.64Bn at the beginning of the financial year which increased to UGX.11,684,417,736 at closure of the year. The outstanding amounts relate to advances which were made to various educational institutions and District Local Government. \uf0b7 The ministry had outstanding payables amounting to UGX.39.45 Bn at the closure of the financial year. This was a reduction of UGX.10.74Bn (21.4%) from UGX.50.19Bn in the FY 2019/20. I further noted that UGX. 29.79Bn (75.5%) of the outstanding amount has been outstanding for more than one year. I also noted that whereas the Ministry had outstanding obligations UGX.50.19Bn at the beginning of the financial year, only UGX.16.69Bn was provided for in the budget resulting into a funding gap of UGX.33.51Bn. \uf0b7 Only UGX.18.81Bn of the appropriation for pensions of UGX.28.52Bn (66%) was absorbed leading to under absorption of funds by UGX.9.71Bn (34%). In addition, the Ministry had accumulated pension arrears totaling to UGX.1.47Bn due to delayed payment due to missing documents on pension files. \uf0b7 Out of the total verified outstanding court awards of UGX.10.18 Bn, a sum of UGX.4.69Bn (46.1%) relates to accumulated interest costs arising from delayed settlement of court awards. I further noted that whereas the ministry had obligations to the tune of UGX. 15.98Bn and other on- going cases during the financial year, only UGX.1.66Bn was provided for court awards and compensations in the work plan for the financial year under review. \uf0b7 Post closure audit inspection on Uganda Teacher School Effectiveness\u2019 project (UTSEP) in the Ministry of Education revealed UGX.1.58Bn remained unutilized as at the closure of the F/Y (30th June 2021). \uf0b7 I noted that UGX.3.9Bn of the UGX.5.55Bn advanced to UBOS before project closure date (31st July 20) to carry out data collection (enumeration) for the comprehensive Education Institutions baseline, which was expected to be completed by 30th April 2020 remained outstanding. \uf0b7 I noted that the Ministry of Education and Sports still holds the mandate of managing Government scholarships, however information on Scholarship offered at the different Missions and other Government organizations was not available at the Secretariat. In addition, there was no scholarship Policy. I also noted that out of a total of 280 scholarships offered in the previous three years, only 162 were utilized resulting into an under absorption of 118 (42%) scholarships. | Unnamed: 2 |\n| 1 | 74 | Opec Fund for International Development (OFID)- Vocational Education Project Phase 11 2020/21 Opinion Unqualified | \uf0b7 I noted that the 5 year project with total budget of UGX.59.43 Bn that started in June 2017 had only received a total of UGX 14.09 Bn by end of financial year 2020/2021. \uf0b7 Out of the total amount of UGX.14.09Bn availed for financing the Project for the four and a half years covered; only UGX.12.3 Bn (87%) had been absorbed while the unspent balance of UGX.1.7bn was swept back to the Consolidated Fund. \uf0b7 I noted that whereas the Project closing date was 31st December 2021, |", "metadata": {"page": 295, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | 2020/21 Opinion Unqualified | realized, representing a performance of 47.4%. \uf0b7 The Council budgeted to receive UGX.5.4Bn from Government out of which UGX.5.01Bn was availed, resulting in a shortfall of UGX0.39Bn, which is 7.2% of the budget. \uf0b7 Out of UGX.8.86 Bn available for spending during the financial year, UGX.8.75Bn was spent by the entity resulting into unspent balance of UGX 0.11 Bn, representing absorption level of 99%. \uf0b7 I noted that out of the one hundred sixteen (116) activities, fifty three (53) activities (46%) were quantified, while the balance of sixty three (63) activities (54%) were not clearly quantified to enable the assessment of performance. I further noted that One (1) output with a total of Nine (9) activities and expenditure worth UGX 0.62 Bn were not quantified at all. |\n|---:|:-------------|:------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | two critical project Components 1 & 2 (civil works, supply of equipment and tools) that form 85% of the total project budget had not taken off by the time of concluding the audit (2nd December 2021. \uf0b7 I observed that out of the absorbed funds worth UGX.12.3Bn, UGX.6.6bn (54%) was spent on other Arab funded Projects other than OFID project. \uf0b7 I noted that a total amount of UGX. 6.6Bn of the UGX.12.3 Bn GOU component was irregularly spent on other Arab funded Projects of IDBI, IDBII, KFAED and BADEA without authority. | Unnamed: 2 |\n| 1 | 75 | Uganda Skills Development Project (USDP)- PSFU 2020/21 Opinion Unqualified | \uf0b7 I noted that the Project has made cummulative disbursements of USD.15,345,592 against cummulative commitments of USD.17,617,457 representing 87% performance. \uf0b7 Out of the total amounts of UGX.30.75Bn available for spending during the financial year under review, a total amount of UGX.24.6Bn was spent by the Project resulting into an unspent balance of UGX.6.14Bn, representing an absorption level of 80%. \uf0b7 All the seven (7) outputs with a total of twenty-nine (29) activities and expenditure of 24.6Bn that is, all the twenty-nine 29 activities (100%) within these out-puts were clearly quantified. \uf0b7 I assessed implementation of Quantified outputs and noted that; the Project fully implemented sixteen (16) activities (62%); the Project partially implemented eight (8) activities (30%), while two (2) activities (8%) remained unimplemented. |", "metadata": {"page": 296, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | 2020/21 Opinion Unqualified | realized, representing a performance of 47.4%. \uf0b7 The Council budgeted to receive UGX.5.4Bn from Government out of which UGX.5.01Bn was availed, resulting in a shortfall of UGX0.39Bn, which is 7.2% of the budget. \uf0b7 Out of UGX.8.86 Bn available for spending during the financial year, UGX.8.75Bn was spent by the entity resulting into unspent balance of UGX 0.11 Bn, representing absorption level of 99%. \uf0b7 I noted that out of the one hundred sixteen (116) activities, fifty three (53) activities (46%) were quantified, while the balance of sixty three (63) activities (54%) were not clearly quantified to enable the assessment of performance. I further noted that One (1) output with a total of Nine (9) activities and expenditure worth UGX 0.62 Bn were not quantified at all. |\n|---:|-------------:|:----------------------------------------------------------------------------------------------------------------------------|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 76 | Uganda Skills Development Project (USDP) -MOES Opinion Unqualified | \uf0b7 I noted that at the close of the financial year 2020/2021, out of the two (2) planned strategic targets/objectives, one objective/goal had been achieved, while the other one had been partially achieved. \uf0b7 Out of the budgeted amount of UGX.58.82Bn budgeted to be received from World Bank during the financial year 2020/2021; a sum of UGX.46.53Bn was received indicating performance of 79% of the target. Similarly, the project budgeted to receive UGX.1.25Bn, of which UGX.1.07Bn was warranted, resulting in a shortfall of UGX. 0.18 Bn (14.4%) of the budget. \uf0b7 I noted that all project outputs were fully quantified. I also noted that the project fully implemented one of the sampled outputs, partially implemented one and two outputs were not implemented. \uf0b7 I noted delayed Signing of Contract for Supply of a Spray track for UTC Lira valued at Euros 205,200 had delayed for 9 months by end of November 2021, following the contracts committee\u2019s approval on 23rd/02/2021. \uf0b7 I noted delayed Installation and testing of Equipment: USD. 8,304,848 by 5 months at the time of audit at the end of November. I further noted that furniture supplies and civil works had also delayed with the delayed period ranging from 1-7 months. |\n| 1 | 77 | Imagining Gender Futures in Uganda (IMAGENU) Project \u2013 DFC Project No. 17-07-AU- Gulu University - 2020 Opinion Unqualified | \uf0b7 There were no reportable issues. \uf0b7 |", "metadata": {"page": 296, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | funds to un-appropriated budget lines leads to non-implementation of budgeted for activities. \uf0b7 I noted that the School had five (5) pieces of land recorded in the assets register that have never been valued to ascertain the monetary value. I also noted that the land in Kireka had squatters and the possibility of reclaiming it may prove to be challenging. The encroachment on the School land was attributed to failure to gazette and develop the land. | Unnamed: 2 |\n|---:|:-------------|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 79.0 | The Norwegian Programme for Capacity Development In Higher Education And Research For Development (Norhed) 2020 Opinion Unqualified | \uf0b7 The Project ended, and as at the end of the six-month period ended 31st December, 2020, funds to the tune of USD. 272,213 (Nok2,054,787) remained unspent, and it was refunded to the Funders. |\n| 1 | 80.0 | Environment for Development Initiative (Efd- Mak Centre) Project Makerere University for The Period 1st January - 31st December 2020 Opinion Unqualified | \uf0b7 No material Issues reported |\n| 2 | 82.0 | Nurture: Research Training and Mentoring Program for Career Development of Faculty in Medical Education Partnership Initiative Institutions (Mepi) At Makerere University College of Health Sciences - 2018 Opinion Unqualified | \uf0b7 No material Issues reported |\n| 3 | | SCIENCE AND INNOVATION SECTOR | |\n| 4 | 1.0 | Kiira Motors Corporation. 2019/2020 Opinion Unqualified | \uf0b7 I noted that at the time of the audit (June 2020), out of the planned six (6) strategic targets/goals, three (3) targets had been fully achieved and three (3) were partially achieved \uf0b7 100 acres of land, in Kiira Town Council, Jinja District land was only disclosed as a note without value attached and neither is it recorded in the assets register. \uf0b7 Failure to handover funds worth UGX.8,923,350,798 to Makerere University, since these funds had been specially released for Kiira Motors as a project under Makerere University. \uf0b7 I observed that only two of the nine (9) members of the Board of Directors, the Executive Chairperson and the Chief Executive Officer were duly appointed, leading to an inadequately constituted Board. |\n| 5 | 2.0 | Presidential Initiative on Banana Industrial Development (PIBID). | \uf0b7 I noted that out of the 3 strategic targets, PIBID partially attained them, with the hope of fully attaining the targets by the end of the strategic |", "metadata": {"page": 298, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | 2019/2020 Opinion Unqualified | plan period. \uf0b7 NTR of UGX.99 Million was collected but not remitted to the consolidated fund and was instead spent at source. \uf0b7 It was observed that the entity has not taken off full operations as it remains cash strapped with limited subventions from the Ministry of Science Technology and innovation. \uf0b7 There was no evidence of the establishment of the Institutional Framework and Governance Board and the renewal of the appointment of the Board and Management Committee Members. \uf0b7 During the financial year, a total of UGX.29,230,320 was paid to the Executive Director as man-day allowance for signing 12 contracts on behalf of the organization, yet this is one of her roles for which a monthly salary is paid. \uf0b7 A total of UGX.272,694,000 was paid to various staff as allowances for working over the weekend. \uf0b7 The internal audit department had only one draft internal audit report with no evidence that the report was submitted to the Accounting Officer and Internal Auditor General. \uf0b7 PIBID recruited staff during the year 2019/2020 without an approved recruitment plan for the period. \uf0b7 Audit noted that PIBID did not have an approved salary structure on which it bases to pay individual staff \uf0b7 I noted that the entity lacked land titles for its land at Sanga (approximately 50 acres) and land where the water source is located at Kyamugambira (approximately 4 acres). \uf0b7 Management deducted UGX.633,205,884, as PAYE, from employee\u2019s salaries but was not remitted to Uganda Revenue Authority. \uf0b7 It was observed that outstanding obligations to the National Security Fund at the end of the Financial Year 2019/2020 were UGX.829,409,254. |\n|---:|-------------:|:-----------------------------------------------------------------------------------|:------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 3 | Uganda Institute of Communication Technology (UICT). 2019/2020 Opinion Unqualified | \uf0b7 I noted that out of the budgeted revenue of UGX.3,359,386,101 for the year 2019/2020, only UGX.1,893,012,622 was collected representing a performance of only 56% of the target. \uf0b7 An analysis of the outputs/activities that were quantified revealed that several activities remained un implemented. \uf0b7 I noted that there was over expenditure of UGX.34,136,741 on three budget lines. \uf0b7 I noted that the entity had outstanding trade and other receivables amounting to UGX.384,635,852. \uf0b7 I noted temporary staffs that have been working at the Institute for over 10 years with continuous contract renewals. \uf0b7 A review of the staff establishment showed that only 41 positions were filled out of the established 99 positions, leaving 58 positions vacant. \uf0b7 I noted that there was neither staff training nor an annual training plan in place. \uf0b7 Contrary to Section 34 (1) of the VAT Act 1996, I noted that UGX.4,534,592 worth of VAT remained outstanding as at 30th June 2020. |\n| 1 | 4 | Ministry of Science and | \uf0b7 The Ministry of Science Technology and Innovation was merged with the |", "metadata": {"page": 299, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Technology and Innovation. 2020/21 Opinion Unqualified | President\u2019s Office effective July 2021. I however did not obtain evidence of a proper transition plan which has led to delayed disbursement of funding for subventions and independent projects. The merger further rendered 136 technical scientist staff redundant and were not paid emoluments by the end of November, 2021. I advised management to ensure that a smooth transition process is undertaken. \uf0b7 Out of the total budget for the financial year of UGX.150Bn, only UGX.144.6Bn was received by the Ministry resulting into a shortfall of UGX.5.737Bn (equivalent to 3.5% of the budget). Shortfalls in revenue result into non implementation of planned activities. \uf0b7 Out of 20 quantified activities worth UGX.105.9Bn that were assessed; 13 activities representing 65% were fully implemented, 5 activities representing 25% were partially implemented, while 2 activities representing 10% were not implemented. I advised management to roll over critical activities to subsequent years and ensure that they are implemented before the end of the National Development Plan III. \uf0b7 I noted that funds to the tune of UGX.834Mn were irregularly diverted from the activities on which they were budgeted and spent on other activities without seeking and obtaining the necessary approvals. I advised management to always ensure that proper authorization is obtained before implementing any unbudgeted activities. \uf0b7 Most of the research projects that had received funds for COVID-19 Vaccines and Treatments had not made much progress. Delays were majorly attributed to the late disbursement of funds and delayed delivery of Equipment. I advised management to ensure thorough due diligence before funds are allocated to the projects. |\n|---:|-------------:|:---------------------------------------------------------|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 5 | Kiira Motors Corporation. 2020/21 Opinion Unqualified | \uf0b7 Cabinet approved the roadmap for the commercialisation of the Kiira Electric vehicle project with a seed fund of UGX.143.7Bn to be availed over a period of 4 years effective 2018/19. Only 59% of the seed fund had been released in the previous three financial years, casting doubt as to whether the balance of UGX.58.4Bn (41%) would be released in the remaining one year. Failure to promptly fund the project, may lead to high-cost overruns and delays in realising the intended objectives. In addition, it may cast doubts on its sustainability. \uf0b7 KMC signed a Memorandum of Understanding (MOU) with National Enterprise Corporation (NEC) on the 15th January 2019 for the construction of the Kiira Vehicle Plant start-up facilities at the cost of UGX.63.64Bn. I noted that of the civil works that were to be completed by June 2021 (a period of 2 years and six (6) months), only 82% of those works had been completed due to insufficient funding. Underfunding has affected the progress of the plant construction which further delays the realisation of the intended objectives. \uf0b7 Ministry of Science, Technology and Innovation (represented by Kiira Motors Corporation) and Makerere University were collaborating in the Development of a Low-Cost Open Design Medical Ventilator named Bulamu, that could be manufactured locally. Although UGX.74Mn was received from Resilient Africa Network Ran Ltd towards the completion of the development of the Ventilator, the development was behind schedule. The delays may affect the realisation of intended objectives. \uf0b7 I noted that Makerere University received UGX.8.92Bn for the Kiira Motors Project between FY2012/13 and FY2015/16 for the construction of the Kiira Vehicle Plant Start-Up facilities in Jinja. However, the university had not released these funds for over eight years. I advised management |", "metadata": {"page": 300, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Technology and Innovation. 2020/21 Opinion Unqualified | President\u2019s Office effective July 2021. I however did not obtain evidence of a proper transition plan which has led to delayed disbursement of funding for subventions and independent projects. The merger further rendered 136 technical scientist staff redundant and were not paid emoluments by the end of November, 2021. I advised management to ensure that a smooth transition process is undertaken. \uf0b7 Out of the total budget for the financial year of UGX.150Bn, only UGX.144.6Bn was received by the Ministry resulting into a shortfall of UGX.5.737Bn (equivalent to 3.5% of the budget). Shortfalls in revenue result into non implementation of planned activities. \uf0b7 Out of 20 quantified activities worth UGX.105.9Bn that were assessed; 13 activities representing 65% were fully implemented, 5 activities representing 25% were partially implemented, while 2 activities representing 10% were not implemented. I advised management to roll over critical activities to subsequent years and ensure that they are implemented before the end of the National Development Plan III. \uf0b7 I noted that funds to the tune of UGX.834Mn were irregularly diverted from the activities on which they were budgeted and spent on other activities without seeking and obtaining the necessary approvals. I advised management to always ensure that proper authorization is obtained before implementing any unbudgeted activities. \uf0b7 Most of the research projects that had received funds for COVID-19 Vaccines and Treatments had not made much progress. Delays were majorly attributed to the late disbursement of funds and delayed delivery of Equipment. I advised management to ensure thorough due diligence before funds are allocated to the projects. |\n|---:|:-------------|:--------------------------------------------------------------------------------|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | to follow up on the matter with all responsible stakeholders. | Unnamed: 2 |\n| 1 | 6 | Uganda National Council for Science and Technology. 2020/21 Opinion Unqualified | \uf0b7 I noted that out of the budgeted revenue of UGX.20.53Bn for 2020/21; UGX.24.59Bn was collected, representing a performance of 120% of the target. \uf0b7 Out of the 41 outputs assessed, 34 outputs representing 83% were fully implemented; four (4) outputs representing 10% were partially implemented, while three (3), representing 7%, were not implemented. \uf0b7 I noted that there was no evidence that the Accounting Officer prepared or submitted the annual budget performance reports of the Council by 31st July 2021 as required by regulations. \uf0b7 I noted that the entity did not prepare and submit the annual monitoring plans to the line Ministry for consolidation and onward transmission to the Ministry of Finance Economic and Economic Planning. \uf0b7 I established that UGX.94Mn was directly paid to staff\u2019s personal bank accounts, yet this money could have been directly paid to the intended final recipients. \uf0b7 Out of the 85 planned activities assessed, 69 outputs/activities representing 81% were fully implemented; 9 outputs/activities representing 11% were partially implemented, while seven (7) outputs/activities representing 8% were not implemented at all. \uf0b7 I noted that the Council did not produce the annual report as required by the UNCST Act. \uf0b7 A review of the procurement file for the Supply of ICT Equipment under EDCTP-SCRECU Project revealed no evidence of any public bid opening session, which creates doubts as to whether the bidders attended the bid opening session. \uf0b7 Audit noted that the Council had outstanding Pay As You Earn (PAYE) payments relating to July 2019 and June 2020 amounting to UGX.45,457,013 as of 30th June 2021, which had not been remitted to Uganda Revenue Authority |", "metadata": {"page": 301, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Technology and Innovation. 2020/21 Opinion Unqualified | President\u2019s Office effective July 2021. I however did not obtain evidence of a proper transition plan which has led to delayed disbursement of funding for subventions and independent projects. The merger further rendered 136 technical scientist staff redundant and were not paid emoluments by the end of November, 2021. I advised management to ensure that a smooth transition process is undertaken. \uf0b7 Out of the total budget for the financial year of UGX.150Bn, only UGX.144.6Bn was received by the Ministry resulting into a shortfall of UGX.5.737Bn (equivalent to 3.5% of the budget). Shortfalls in revenue result into non implementation of planned activities. \uf0b7 Out of 20 quantified activities worth UGX.105.9Bn that were assessed; 13 activities representing 65% were fully implemented, 5 activities representing 25% were partially implemented, while 2 activities representing 10% were not implemented. I advised management to roll over critical activities to subsequent years and ensure that they are implemented before the end of the National Development Plan III. \uf0b7 I noted that funds to the tune of UGX.834Mn were irregularly diverted from the activities on which they were budgeted and spent on other activities without seeking and obtaining the necessary approvals. I advised management to always ensure that proper authorization is obtained before implementing any unbudgeted activities. \uf0b7 Most of the research projects that had received funds for COVID-19 Vaccines and Treatments had not made much progress. Delays were majorly attributed to the late disbursement of funds and delayed delivery of Equipment. I advised management to ensure thorough due diligence before funds are allocated to the projects. |\n|---:|-------------:|:-------------------------------------------------------------------------|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 7 | Uganda Industrial Research Institute (UIRI). 2020/21 Opinion Unqualified | \uf0b7 I noted that 3.2 million masks were tested, treated and packaged, but the contract for the distribution of the reusable face masks was terminated after only 1.5 million masks had been consumed. The stock of over 1.7 million face masks has remained unutilised at the time of reporting. Government is likely to incur nugatory expenditure of almost UGX.4.08Bn in the event no market is obtained for the masks. \uf0b7 I noted that a number of machinery at the UIRI Namanve campus had been procured ahead of the proposed contract on mask production in the textile section. I noted that some equipment has remained unused/idle or has not been put to use due to lack of technical support from the supplier to operationalize the equipment. Management attributed the failure to the restrictions on international travel for the supplier\u2019s technical staff to come. \uf0b7 The absence of a Board Chairperson has resulted in the failure of the Board to be constituted to meet and handle its mandate as provided for under Section 7 of the UIRI Act 2003. There is no evidence that the Board has ever met. There is a risk that the entity will lose strategic focus, since there is no supervisory oversight over its operations. \uf0b7 I observed that the Institute signed MoUs with the different incubatees in which funds have been spent to support the projects. However, the Institute has not signed any binding contracts with the participants, which |", "metadata": {"page": 301, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Technology and Innovation. 2020/21 Opinion Unqualified | President\u2019s Office effective July 2021. I however did not obtain evidence of a proper transition plan which has led to delayed disbursement of funding for subventions and independent projects. The merger further rendered 136 technical scientist staff redundant and were not paid emoluments by the end of November, 2021. I advised management to ensure that a smooth transition process is undertaken. \uf0b7 Out of the total budget for the financial year of UGX.150Bn, only UGX.144.6Bn was received by the Ministry resulting into a shortfall of UGX.5.737Bn (equivalent to 3.5% of the budget). Shortfalls in revenue result into non implementation of planned activities. \uf0b7 Out of 20 quantified activities worth UGX.105.9Bn that were assessed; 13 activities representing 65% were fully implemented, 5 activities representing 25% were partially implemented, while 2 activities representing 10% were not implemented. I advised management to roll over critical activities to subsequent years and ensure that they are implemented before the end of the National Development Plan III. \uf0b7 I noted that funds to the tune of UGX.834Mn were irregularly diverted from the activities on which they were budgeted and spent on other activities without seeking and obtaining the necessary approvals. I advised management to always ensure that proper authorization is obtained before implementing any unbudgeted activities. \uf0b7 Most of the research projects that had received funds for COVID-19 Vaccines and Treatments had not made much progress. Delays were majorly attributed to the late disbursement of funds and delayed delivery of Equipment. I advised management to ensure thorough due diligence before funds are allocated to the projects. |\n|---:|:-------------|:-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | makes dispute resolution difficult in case it arises. In addition, I noted that 50 of the 95 incubatees reviewed had expired MoUs at the time of reporting, while others were not paying NTR to the Institute as per agreement. \uf0b7 It was observed that UIRI paid a total of UGX.1.286Bn in gratuity, for which PAYE was wrongly computed, resulting into an overpayment of UGX.100,778,201 to staff. The staff over payments can lead to financial loss to government, in the event the Institute is unable to recover from the concerned staff. | Unnamed: 2 |\n| 1 | | GENDER AND SOCIAL DEVELOPMENT SECTOR | \uf0b7 |", "metadata": {"page": 302, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Technology and Innovation. 2020/21 Opinion Unqualified | President\u2019s Office effective July 2021. I however did not obtain evidence of a proper transition plan which has led to delayed disbursement of funding for subventions and independent projects. The merger further rendered 136 technical scientist staff redundant and were not paid emoluments by the end of November, 2021. I advised management to ensure that a smooth transition process is undertaken. \uf0b7 Out of the total budget for the financial year of UGX.150Bn, only UGX.144.6Bn was received by the Ministry resulting into a shortfall of UGX.5.737Bn (equivalent to 3.5% of the budget). Shortfalls in revenue result into non implementation of planned activities. \uf0b7 Out of 20 quantified activities worth UGX.105.9Bn that were assessed; 13 activities representing 65% were fully implemented, 5 activities representing 25% were partially implemented, while 2 activities representing 10% were not implemented. I advised management to roll over critical activities to subsequent years and ensure that they are implemented before the end of the National Development Plan III. \uf0b7 I noted that funds to the tune of UGX.834Mn were irregularly diverted from the activities on which they were budgeted and spent on other activities without seeking and obtaining the necessary approvals. I advised management to always ensure that proper authorization is obtained before implementing any unbudgeted activities. \uf0b7 Most of the research projects that had received funds for COVID-19 Vaccines and Treatments had not made much progress. Delays were majorly attributed to the late disbursement of funds and delayed delivery of Equipment. I advised management to ensure thorough due diligence before funds are allocated to the projects. |\n|---:|-------------:|:------------------------------------------------------------|:------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 1 | Equal Opportunities Commission. 2020/21 Opinion Unqualified | \uf0b7 Out of the approved budget of UGX.12,071,754,441, a sum of UGX.12,016,602,345 was realized resulting into a shortfall of UGX. 55,152,096.00, representing 0.46%. \uf0b7 Out of the warrants of UGX.12,016,602,345, a sum of UGX.11,874,386,080 was spent indicating an absorption rate of 98.8 %. In addition, the Commission received off-budget financing to a tune of UGX.3.723 Bn which was not transferred to the consolidated fund. \uf0b7 I sampled 9 outputs with 95 activities worth UGX.10,990,686,400, representing 91% of the total budget, and noted that 1 output (11%) with 04 activities and expenditure worth UGX. 1.05Bn were fully quantified. In addition, Four (4) outputs with twenty-five 25) activities worth UGX.9.47 Bn were partially implemented. Out of the twenty-five (25) activities, the entity fully implemented sixteen (16) activities, two (2) activities were partially implemented, while seven (7) activities remained unimplemented. \uf0b7 I noted long outstanding receivables of UGX.211,105,359 from interdicted staff, and management has not yet instituted recovery measures due to the ongoing court cases. \uf0b7 I noted that funds to the tune of UGX.63,568,761 were irregularly re- allocated from the activities on which they were budgeted and spent on other activities without seeking and obtaining the necessary approvals. \uf0b7 I noted that 244 accumulated cases from 2017/18 are still pending as at 30th June 2021. Over the last three years 48% of the registered cases have remained un-concluded during the year of registration. In addition, the legal department that handles petitions is at a 50% staffing level. \uf0b7 I noted that the Commission has 81 approved staff positions, but only 50 (62%) positions were filled leaving 31 (31%) posts vacant. \uf0b7 I noted that the land and building on plot 7c, Luthuli close, Bugolobi where the EOC offices are located was transferred to the Commission by the Ministry of Gender, labour and Social Development. However, there was no trace of the original title, and there was no documentary evidence of handover of the title to EOC management. \uf0b7 I noted that the report on gender and equity compliance of the budget framework papers was produced in December 2020, eleven (11) months later than the Parliamentary submission of the required certification and responsive measures of February 2020, contrary to the PFMA. \uf0b7 I noted that the Commission lacked an independent Audit Committee, however, the functions of the Committee were being undertaken by the Commissioners who are part of the Commission management, thus posing serious challenges of conflict of interest. |", "metadata": {"page": 302, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | destination countries such sa; Kuwaiti; Qatar; Bahrain; Afghanistan; Iraq; Somalia; Turkey and Oman are still under process. | Unnamed: 2 |\n|---:|-------------:|:-------------------------------------------------------------------------------------------------------------------------------|:-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 3 | National Council for People with Disabilities 2020/21 Opinion Unqualified | \uf0b7 Out of the approved budget of UGX.1,236,047,430 expected through the MOGLSD a sum of UGX.921,555,246 was realized resulting into a shortfall of UGX. 314,492,184, which is 75% of the budget. The shortfall has since led to 43% increase in payables relating to mainly unpaid gratuities to staff, totalling UGX 539,360,000 at year end. \uf0b7 \uf0b7 Out of the total funds available of UGX.922,507,816 a sum of UGX.896,409,230 was spent indicating an absorption level of 97.3 %. The unspent balance of UGX. 26,098,586 related to the production of the disability status report activities that were not undertaken. \uf0b7 \uf0b7 I sampled eleven (11) outputs with thirteen (13) activities worth UGX. 877,320,000, representing 71% of the total budget, and noted that 10 outputs (91%) with eleven (11) activities and expenditure worth UGX. 0.5899Bn were fully quantified. In addition, One (1) output with two (2) activities worth UGX.0.1221Bn was insufficiently quantified. Out of the ten (10) fully quantified outputs, three (3) outputs with three (3) activities worth UGX 0.0135Bn were fully implemented; six (6) outputs with seven (7) activities worth UGX 0.558Bnwere partially implemented and one (1) output with two (2) activities worth UGX 0.0184 were not implemented. The disability status report was not developed. \uf0b7 \uf0b7 To-date, council has not fully taken over the property of the Uganda Foundation for the blind, as such land located at Kireka and Mayuge has since been encroached upon by unknown persons. Council is at risk of losing these and other properties due to delays in taking possession and title. |\n| 1 | 4 | National Council for Older Persons (NCOP) 2020/21 Opinion Unqualified | \uf0b7 Out of the budgeted revenue of UGX. 726,000,000 for the financial year 2020/2021, UGX. 726,606,000 was received representing over 100% availability of funds for expenditure. This resulted in excess revenue of UGX. 606,000. \uf0b7 Out of the released funds amounting to UGX. 726,606,000 and unbudgeted Non-Tax revenue of UGX 1,198,590, only UGX.709,472,400 was spent by the entity resulting into an unspent balance of UGX. 18,332,190, representing absorption level of 97.5%. |", "metadata": {"page": 304, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | destination countries such sa; Kuwaiti; Qatar; Bahrain; Afghanistan; Iraq; Somalia; Turkey and Oman are still under process. | Unnamed: 2 |\n|---:|-------------:|:-------------------------------------------------------------------------------------------------------------------------------|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 5 | Uganda National Cultural Centre 2020/21 Opinion Unqualified | \uf0b7 Out of the approved budget of UGX 15,407,572,000 a sum of UGX 13,245,324,701 was realized, resulting into a shortfall of UGX 2,162,247,299 representing 14% of the total budget. \uf0b7 Out of the total receipts of UGX 13,245,324,701, only UGX 10,700,171020 was spent by the entity resulting in an unspent balance of UGX. 2,545,147,681 representing absorption level of 81%. \uf0b7 For over four years, UGX 652,414,611 is still owed to a private company and this may result into litigation. \uf0b7 Following parliament\u2019s pronouncement to collect UGX 1.6 Bn from a private company for the use of Nommo Gallery, Recovery measures have remained futile. UNCC has since stopped charging rent from the company. |", "metadata": {"page": 304, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | destination countries such sa; Kuwaiti; Qatar; Bahrain; Afghanistan; Iraq; Somalia; Turkey and Oman are still under process. | Unnamed: 2 |\n|---:|:-------------|:-----------------------------------------------------------------------------------------------------------------------------------------|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | \uf0b7 Covid-19 stimulus funds amounting to UGX 6.8 Bn were paid in two batches to music/Arts promoters, without clearly documented criteria. | Unnamed: 2 |\n| 1 | 6 | The National Children Authority (NCA) 2020/21 Opinion Unqualified | \uf0b7 Out of the approved budget of UGX. 901,908,000 a sum of UGX. 826,112,357 was realized resulting into a shortfall of 104,143,334, representing 8.7%. \uf0b7 Out of the subvention receipts of UGX. 797,764,666 and non-tax revenue of UGX 28,347,691, a sum of UGX. 825,311,734 was spent indicating an absorption rate of 99.9%. \uf0b7 The Authority has no governing board and this has led to absence of policy and operational guidelines, and irregular short term employment contracts. \uf0b7 The report on the state of children under the lock down period revealed limited access of reading materials provided, increase in physical abuse, teenage pregnancies and in some instances death. This was due to inadequacies in law enforcement, capacity and resource constraints for extension works at district level and lack of community awareness on the child rights legal framework. |", "metadata": {"page": 305, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | destination countries such sa; Kuwaiti; Qatar; Bahrain; Afghanistan; Iraq; Somalia; Turkey and Oman are still under process. | Unnamed: 2 |\n|---:|-------------:|:-------------------------------------------------------------------------------------------------------------------------------|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 7 | National Library of Uganda 2020/21 Opinion Unqualified | \uf0b7 Out of the approved budget of UGX.1,228,432,118 expected, a sum of UG.1,076,772,693 was realized resulting into a shortfall of UGX. 151,659,425, which is 87.6% of the budget. The shortfall has since led to increased rental and gratuity arrears. \uf0b7 Out of the total funds available of UGX. 1,076,772,693 a sum of UGX.1,041,279,372 was spent indicating an absorption level of 96.7%. The unspent balance of UGX. 35,493,321 was meant for the clearance costs of the periodical book donations from Book Aid International \uf0b7 I sampled eleven (11) outputs with a total of twelve (12) activities worth UGX.852,906,000, representing 69.4% of the total budget, and noted that Ten (10) outputs with a total of eleven (11) activities and expenditure worth UGX.0.801Bn were fully quantified. In addition, One (01) output with One (01) activity and expenditure worth UGX.0.012 Bn was not quantified. Out of the ten (10) fully quantified outputs, One (1) output with one (1) activity and expenditure worth UGX 0.010Bn was fully implemented. Six (06) outputs with seven (7) activities worth UGX.0.775Bn were partially implemented. Three (3) outputs with two (3) activities worth UGX.0.028Bn were not implemented. Review of the entity strategic plan 2016-2021 and production of a new one, and Sensitization of publishers on ISBN requirements were some of the activities not undertaken. \uf0b7 NLU has outstanding rental obligations of up to UGX.145,351,824 which only attract litigation. \uf0b7 2 Acres of land initially allocated to the NLU has been re-allocated without compensation. |\n| 1 | 8 | National Women\u2019s Council 2020/21 Opinion Unqualified | \uf0b7 Out of the approved budget of UGX. UGX.3,589,554,501, a sum of UGX.3,644,076,229 was realized resulting into a shortfall of UGX.31,238,272, representing 99% performance. \uf0b7 Out of the total released funds for the financial year of UGX.3,644,076,229, only UGX.3,597,158,934 was spent by the entity resulting into an unspent balance of UGX.46,917,295 representing an absorption level of 99%. \uf0b7 I noted that NWC did not link its budget to the strategic plan with activities worth UGX.1,686,300,000 that were specified in the entity |", "metadata": {"page": 305, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | destination countries such sa; Kuwaiti; Qatar; Bahrain; Afghanistan; Iraq; Somalia; Turkey and Oman are still under process. | Unnamed: 2 |\n|---:|:-------------|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | strategic plan for implementation during the fourth year (20/21) of the plan not being included in the budget for FY 2020-2021. NWC strategic plan is not aligned to that of the MoGLSD and hence not aligned to the NDP III. \uf0b7 All nineteen (19) outputs with thirty-five (35) activities and expenditure of UGX.3,597,158,934 were not quantified to enable assessment extent of output and activity implementation. \uf0b7 No risk assessments or review of internal controls were undertaken on the council\u2019s operational processes during the year. | Unnamed: 2 |\n| 1 | 9 | National Youth Council 2020/21 Opinion Unqualified | \uf0b7 The entity budgeted to receive UGX.3.075Bn out of which UGX.2080Bn was received, resulting in a shortfall of UGX.0.995 Bn which is 32% of the budget. I also noted that out of the total receipts for the financial year of UGX 2.080 Bn, UGX 2.079 Bn was spent by the entity representing absorption level of 100%. \uf0b7 I noted that Eight (08) outputs with a total of Seventeen (17) activities and expenditure worth UGX.0.901 Bn were fully quantified. Fourteen (14) outputs with a total of Seventeen (17) activities and expenditure worth UGX 1.079 Bn were not quantified at all. \uf0b7 Two (02) output with six (6) activities and expenditure worth UGX 0.230 Bn were fully implemented. UGX.0.435 Bn were partially implemented. while two (2) outputs with six (6) activities worth UGX.0.236Bn were not implemented. The Accounting Officer stated that some of these activities were frustrated by the COVID-19 rules against public gatherings and meetings. \uf0b7 It was noted that Council did not have a risk management policy to ensure identification of perceived or actual threats it faces in its operations. In addition, there was no internal assessment or review of the internal controls done on the entity processes during the year. |\n| 2 | 10 | National Social Security Fund 2020/21 Opinion Unqualified | \uf0b7 No significant matters to report on. \uf0b7 |\n| 3 | 11 | UNFPA Funded Programme Ref; UGA08CMH/HIV/GBV/UFP/A YP/FGM implemented by the Ministry of Education and Sports, 2020 Opinion Unqualified | \uf0b7 No significant matters to report on. |\n| 4 | 12 | UNFPA Funded Programme Ref: UGA08CMH/HIV/GBV/UFP/A YP/FGM implemented by The Ministry of Health, 2020 Opinion Unqualified | \uf0b7 No significant matters to report on. |", "metadata": {"page": 306, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | destination countries such sa; Kuwaiti; Qatar; Bahrain; Afghanistan; Iraq; Somalia; Turkey and Oman are still under process. | Unnamed: 2 |\n|---:|:-------------|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | Unnamed: 1 | Unnamed: 2 |\n| 1 | 13.0 | UNFPA Funded Programme Ref; Uga08cmh/Hiv/Gbv/Ufp/Ayp /Fgm Implemented by The Ministry of Justice and Constitutional Affairs 2020 Opinion Unqualified | \uf0b7 No significant matters to report on. \uf0b7 |\n| 2 | 14.0 | UNFPA Country Programme Component of Data and Populationdynamics Implemented by Ministry of Gender, Labour & Social Development (Mglsd) 2020 Opinion Unqualified | \uf0b7 No significant matters to report on. |\n| 3 | 15.0 | Unfpa Funded Programmeme Component of Data and Population Dynamics Implemented by National Planning Authority (Npa) 2020 Opinion Unqualified | \uf0b7 No significant matters to report on. |\n| 4 | 16.0 | Unfpa Funded Programme Component of Data and Population Dynamics Implemented by National Population Council (Npc) 2020 Opinion Unqualified | \uf0b7 No significant matters to report on. |\n| 5 | 17.0 | Unfpa Funded Programme Component of Data and Population Dynamics Implemented by Uganda Bureau of Statistics 2020 Opinion Unqualified | \uf0b7 No significant matters to report on. |\n| 6 | | HEALTH SECTOR | |\n| 7 | 1.0 | Centre for Disease Control and Prevention (CDC) Opinion Unqualified | \uf0b7 I noted a variance of US$.241,921 between the expenditure recorded in the accounting system and the expenditure reported in the quarterly financial reports for the year ended 30th September 2020. The expenditure reported per quarterly reports totaled US$.3,177,866 as opposed to the audited total expenditure of US$.2,935,945. \uf0b7 A review of budget performance i.e., the budget for the Cooperative |", "metadata": {"page": 307, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | destination countries such sa; Kuwaiti; Qatar; Bahrain; Afghanistan; Iraq; Somalia; Turkey and Oman are still under process. | Unnamed: 2 |\n|---:|:-------------|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | Unnamed: 1 | Agreement Grant/ Notice of Award vs actual expenditures showed that management of CDC \u2013 UPS had executed most of the budgeted activities for the year ended 30th September 2020. The overall budget performance was 97%. \uf0b7 I further noted instances of budget over runs to a tune of US$.198,986 on three budget lines, a practise not permitted under the Cooperative Agreement. \uf0b7 From the tests conducted on a sample of non-payroll disbursements (i.e. supplies contract costs, Fringe Benefits, travel and other direct costs), I noted that cost totalling to US $ 54,135 were inadequately supported. \uf0b7 \uf0b7 I noted that monthly financial returns are supposed to be submitted by the 15th day of the subsequent month, but this was not complied |\n| 1 | 2.0 | Centre for Disease Control Project (PEPFAR Grant No: 6NU2GGH002221-01-01) 30 th September 2020 Opinion Unqualified | \uf0b7 I noted that there was low absorption of project funds. I noted that out of the total receipts; only USD 1,864,527 (UGX. 6,884,001,756) was utilized leaving a balance of USD. 868,756 (UGX. 3,207,525,075); representing an absorption level of 68.2%. \uf0b7 I observed that the Project Chart of Accounts was not aligned with the IFMS Accounting codes. \uf0b7 I noted significant delays in the approval and payment for most activities whereby the average lead time for processing a payment was over three (3) months |\n| 2 | 3.0 | The Italian Support to the Ugandan Health Sector Strategic Plan III (HSSP III) and the Peace, Recovery and Development Plan (PRDP) for Northern Uganda - Karamoja Region Staff Housing Project (KRSHP) \u2013 Ministry of Health Project. 2019/20 Opinion Unqualified | \uf0b7 The entire budgeted revenue of UGX.10,543,205,000 in respect of external financing by the Government of the Italian Republic was not received during the year. As a result, no planned activity was implemented. \uf0b7 The project had a total of EUR.1,442,629.81 available for spending during the year represented by the opening balance. However, the entire amount remained un-absorbed by the close of the year. \uf0b7 The Project had UGX.120,000,000 for spending under Counterpart funding during the year which was all spent. However, out of the amount, UGX.100,000,000 was spent on non-project activities. |", "metadata": {"page": 308, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | destination countries such sa; Kuwaiti; Qatar; Bahrain; Afghanistan; Iraq; Somalia; Turkey and Oman are still under process. | Unnamed: 2 |\n|---:|-------------:|:------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 4 | The Rehabilitation and Expansion of Kayunga and Yumbe Hospitals Project (KAYUP) -BADEA No. 0761, OFID No. 1628P and SFD No. 6/620 - Ministry of Health Project. 2019/20 | \uf0b7 The project experienced significant revenue shortfalls. Out of the expected receipts of USD 19,064,124.79, the project received funding totalling USD.8,252,401.61 constituting USD. 6,240,515.26 from external sources and USD.2,011,886.35 (UGX. 7,505,000,000) from GoU counterpart contribution. This translated into a budget shortfall of USD 10,811,723.18 (representing 56.71% of the approved budget). \uf0b7 There were delays in Project implementation. The project became effective on 16th April 2015 and was initially expected to be completed on 28th February 2020 which was later extended to 31st December 2021. However, the cumulative project progress was at 99.5% as at 30th June 2020. Major delays were identified in the procurement and installation of Medical equipment, Ambulances, mini-buses and Pick-ups. |\n| 1 | 5 | Uganda National Health Research Organization (UNHRO). | \uf0b7 UNHRO did not have an approved strategic plan for the period 2015/16 - 2019/20. The organization implemented a draft strategic plan for five years 2015/2016-2019/2020. I observed that the entity did not fully |", "metadata": {"page": 308, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | 2019/20 Opinion Unqualified | achieve any of the 6 strategic objectives in its expired draft strategic plan it has been implementing for the last five years. \uf0b7 I noted that the Organization did not have a governing Board during the year under review, after the term of office for all former members of the Board expired in 2016. \uf0b7 The Sessional Parliamentary Committee on Social services recommended the granting of a vote status to the Organization. This was followed by issuance of statutory instruments and the gazetting and commencement of the Uganda National Health Research Organisation Act, 2011 on the 22nd day of January 2016. However, it was noted that the Organization had not been granted a vote status by the time of audit. \uf0b7 No regulations were put in place to operationalize the UNHRO Act 2011. There were no regulations to guide UNHRO staff and stakeholders on matters such as regulation of the operations of the constituent research institutions, human resources, finance and administration, the general operations of the Organization. \uf0b7 The employment contract on file for the Director General expired in April 2018 and had not been renewed by the time of audit. \uf0b7 Only 12 out of the approved 26 positions in the Organizational Structure had been filled resulting into a staffing gap of 14 positions. \uf0b7 UNHRO had an annual work plan of UGX 2,080,000,000 for the financial year 2019/2020. However, I noted that the Organization was financed by a subvention of only UGX 240,000,000, through the Ministry of Health thereby resulting into a funding gap of UGX. 1,840,000,000. \uf0b7 A review of the Organization\u2019s Scheme of service and staff contracts revealed that most of the institution staff were only paid their Basic salary leaving out the other packages that form part of their consolidated pay such as housing, transport and medical allowances. |\n|---:|-------------:|:---------------------------------------------------------------------|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 6 | Uganda Nurses and Midwives Council (UNMC). 2019/20 Opinion Qualified | \uf0b7 The Council made payments worth UGX 1,465,751,440 in the year ended 30th June 2019 which did not have supporting documents such as invoices, payment request forms and payment vouchers. I noted that no action had been taken by Management to account for the funds in the year ended 30th June 2020. \uf0b7 Management reported a financial loss of UGX.444,400,000 during the year. The amount was transferred from UNMC\u2019s Stanbic Bank Account No. 9030005852950 to M/S RAM Engineering (U) Ltd under fraudulent circumstances. \uf0b7 Council failed to collect budgeted revenue amounting to UGX 557,669,951 during the year. \uf0b7 Council had a total of UGX. 7.77bn available for implementation of planned activities. The total receipts for the financial year under review were UGX 2.71 bn. However, only UGX 1.84bn was absorbed (representing 23.7%) leaving a balance of UGX. 5.93bn. \uf0b7 I observed that the Council partially implemented six (6) of its planned outputs with a total of Nineteen (19) activities worth UGX 268.41M. I also observed that seven (7) outputs with a total of twenty (20) activities were not implemented at all. \uf0b7 The entity did not prepare and submit the annual monitoring plans to MoFPED and NPA as required. Further, the entity did not prepare and submit quarterly monitoring reports to the MoFPED as required. \uf0b7 A review of the Organization\u2019s Annual cumulative performance report and |", "metadata": {"page": 309, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | 2019/20 Opinion Unqualified | achieve any of the 6 strategic objectives in its expired draft strategic plan it has been implementing for the last five years. \uf0b7 I noted that the Organization did not have a governing Board during the year under review, after the term of office for all former members of the Board expired in 2016. \uf0b7 The Sessional Parliamentary Committee on Social services recommended the granting of a vote status to the Organization. This was followed by issuance of statutory instruments and the gazetting and commencement of the Uganda National Health Research Organisation Act, 2011 on the 22nd day of January 2016. However, it was noted that the Organization had not been granted a vote status by the time of audit. \uf0b7 No regulations were put in place to operationalize the UNHRO Act 2011. There were no regulations to guide UNHRO staff and stakeholders on matters such as regulation of the operations of the constituent research institutions, human resources, finance and administration, the general operations of the Organization. \uf0b7 The employment contract on file for the Director General expired in April 2018 and had not been renewed by the time of audit. \uf0b7 Only 12 out of the approved 26 positions in the Organizational Structure had been filled resulting into a staffing gap of 14 positions. \uf0b7 UNHRO had an annual work plan of UGX 2,080,000,000 for the financial year 2019/2020. However, I noted that the Organization was financed by a subvention of only UGX 240,000,000, through the Ministry of Health thereby resulting into a funding gap of UGX. 1,840,000,000. \uf0b7 A review of the Organization\u2019s Scheme of service and staff contracts revealed that most of the institution staff were only paid their Basic salary leaving out the other packages that form part of their consolidated pay such as housing, transport and medical allowances. |\n|---:|:-------------|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | the entity work plan revealed cases where the reported set targets were not consistent with the set targets in the entity work plans. \uf0b7 I observed conflicting in the Council governing laws. Section 51(2) of the Public Finance Management Act, 2015 requires the Accounting Officer of a public corporation, within two months after the end of each financial year, to prepare and submit to the Accountant-General, a summary statement of financial performance of the public corporation and give a copy of the summary statement to the Secretary to the Treasury. On the contrary, Section 18 (1) Part IV of the Nurses and Midwives Act, 1996 requires the Council to keep proper books of accounts and prepare the annual financial statements of accounts for the immediately preceding financial year not later than three months in the following year. Conflict in the governing laws hampers effective execution of UNMC mandate. \uf0b7 Section 4 of the UNMC Act 1996, requires each Council member to be a seconded representative of a particular institution or body and must be appointed by the Minister. However, a review of Council Members records revealed that out of the seventeen (17) members, none of them were seconded representatives of their respective bodies. \uf0b7 Good Corporate Governance practices require separation of duties of board members to ensure their independence in the discharge of duties. On the contrary, a review of the composition of the Audit Committee revealed that Chairperson of the full council is also a member of the committee. \uf0b7 I noted that the Council had not been managed by a substantive Registrar since 2017. The current Registrar\u2019s initial appointment ran from November 2018 to March 2019. However, management did not provide a valid appointment letter to confirm her appointment after March 2019. \uf0b7 A review of the Governing council minute ref FC/08/14/06/2020 revealed that council members were concerned about the significant delays in issuing of Practicing Certificates that hindered the recruitment of nurses in the industry. Furthermore, Management did not avail status reports on certificates that were produced. \uf0b7 Payment files and PPDA monthly reports revealed that supplies and service worth UGX 46,183,800 were procured and paid without going through the procurement process given that there were no LPOs or procurement documents availed to confirm that the supplier went through the procurement process. \uf0b7 UNMC has three (3) operational vehicles. However, a detailed review of the fleet management revealed that there were no log books maintained to track the vehicle movements as required by the regulations. Further, there were no records being maintained to keep track of vehicle history, performance, servicing, overheads, repairs and maintenance. | Unnamed: 2 |\n| 1 | 7.0 | Uganda Sanitation Fund (USF) \u2013 Ministry of Health Project. 2019/20 Opinion Unqualified | \uf0b7 A review of the annual work plan and the performance reports for the Uganda Sanitation Fund revealed that there were inconsistencies in planned targets and those reported upon. Furthermore, the planned targets/outputs in the work plan lacked sufficient detail (description of outputs) to facilitate a meaningful comparison with the targets in the performance reports. \uf0b7 I observed that the Project did not implement twenty-seven (27) planned outputs with a total budget of UGX 1.506Bn, and Five (5) outputs with a total budget of UGX 0.476bn could not be verified in regard to implementation due to unclear targets. \uf0b7 There were delays in disbursement of funds to sub grantees. A review of |", "metadata": {"page": 310, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | 2019/20 Opinion Unqualified | achieve any of the 6 strategic objectives in its expired draft strategic plan it has been implementing for the last five years. \uf0b7 I noted that the Organization did not have a governing Board during the year under review, after the term of office for all former members of the Board expired in 2016. \uf0b7 The Sessional Parliamentary Committee on Social services recommended the granting of a vote status to the Organization. This was followed by issuance of statutory instruments and the gazetting and commencement of the Uganda National Health Research Organisation Act, 2011 on the 22nd day of January 2016. However, it was noted that the Organization had not been granted a vote status by the time of audit. \uf0b7 No regulations were put in place to operationalize the UNHRO Act 2011. There were no regulations to guide UNHRO staff and stakeholders on matters such as regulation of the operations of the constituent research institutions, human resources, finance and administration, the general operations of the Organization. \uf0b7 The employment contract on file for the Director General expired in April 2018 and had not been renewed by the time of audit. \uf0b7 Only 12 out of the approved 26 positions in the Organizational Structure had been filled resulting into a staffing gap of 14 positions. \uf0b7 UNHRO had an annual work plan of UGX 2,080,000,000 for the financial year 2019/2020. However, I noted that the Organization was financed by a subvention of only UGX 240,000,000, through the Ministry of Health thereby resulting into a funding gap of UGX. 1,840,000,000. \uf0b7 A review of the Organization\u2019s Scheme of service and staff contracts revealed that most of the institution staff were only paid their Basic salary leaving out the other packages that form part of their consolidated pay such as housing, transport and medical allowances. |\n|---:|:-------------|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | the quarterly district performance work plans and reports submitted to the Ministry, revealed that, the quarterly release of funds from MOFPED was not done on time. As a result, Quarter 1 funds were disbursed in quarter 2, quarter 2 funds were disbursed in quarter 3, and quarter 3 funds disbursed in quarter 4. \uf0b7 Since the project\u2019s inception, only a total of UGX.1.3bn (USD 386,259) out of the agreed GOU counterpart funding commitment of USD 2,000,000 had been disbursed to the districts resulting into a funding shortfall of USD 1,613,741. \uf0b7 The program\u2019s average national progress on Open Defecation Free (ODF) target stood at 60.9% yet the project is in its last year of implementation. An Assessment of the 9-year targets (July 2011 to June 2020) revealed that out of the targeted 11,354 villages, only 9,632 achieved ODF targets, representing 84.8%; a total of 140 of the 400 targeted parishes representing 35% achieved ODF; and only 27 of the targeted 360 sub counties achieved the ODF target representing 7.5% achieved ODF status. | Unnamed: 2 |", "metadata": {"page": 311, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | 2019/20 Opinion Unqualified | achieve any of the 6 strategic objectives in its expired draft strategic plan it has been implementing for the last five years. \uf0b7 I noted that the Organization did not have a governing Board during the year under review, after the term of office for all former members of the Board expired in 2016. \uf0b7 The Sessional Parliamentary Committee on Social services recommended the granting of a vote status to the Organization. This was followed by issuance of statutory instruments and the gazetting and commencement of the Uganda National Health Research Organisation Act, 2011 on the 22nd day of January 2016. However, it was noted that the Organization had not been granted a vote status by the time of audit. \uf0b7 No regulations were put in place to operationalize the UNHRO Act 2011. There were no regulations to guide UNHRO staff and stakeholders on matters such as regulation of the operations of the constituent research institutions, human resources, finance and administration, the general operations of the Organization. \uf0b7 The employment contract on file for the Director General expired in April 2018 and had not been renewed by the time of audit. \uf0b7 Only 12 out of the approved 26 positions in the Organizational Structure had been filled resulting into a staffing gap of 14 positions. \uf0b7 UNHRO had an annual work plan of UGX 2,080,000,000 for the financial year 2019/2020. However, I noted that the Organization was financed by a subvention of only UGX 240,000,000, through the Ministry of Health thereby resulting into a funding gap of UGX. 1,840,000,000. \uf0b7 A review of the Organization\u2019s Scheme of service and staff contracts revealed that most of the institution staff were only paid their Basic salary leaving out the other packages that form part of their consolidated pay such as housing, transport and medical allowances. |\n|---:|-------------:|:-----------------------------------------------------------------|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 8 | Allied Health Professionals Council. 2019/20 Opinion Unqualified | \uf0b7 The Governing Council stated that a material uncertainty existed regarding the continued operation of Allied Health Professionals Council in the foreseeable future. \uf0b7 Management\u2019s judgement was informed by a letter from the PS - Ministry of Public Service to all Accounting Officers in which guidance was provided on the modalities for management of Public Institutions during the implementation of recommendations on the rationalization of Agencies and Public Expenditure. \uf0b7 I noted that out of the ten (10) sampled outputs with a total of ten (10) activities and expenditure of UGX. 3.127bn, only five (5) outputs with five (5) activities and expenditure worth UGX 3.017Bn were fully quantified. The balance of five (5) outputs with five (5) activities and expenditure worth UGX.011Bn were insufficiently quantified which made it difficult to assess extent of their delivery. \uf0b7 I observed that out of the five (5) outputs that were fully quantified, three (3) outputs with three (3) activities worth UGX. 1.918Bn were fully implemented. However, the remaining two (2) outputs with two (2) activities worth UGX.1.099Bn were partially implemented. \uf0b7 The Council fleet of six (6) sampled vehicles was not annually inspected during the three (3) year period under review to assess their mechanical condition and road worthiness. \uf0b7 Whereas the Council designated a Transport Officer responsible for transport matters, fuel registers were not maintained for all the six (6) motor vehicles sampled out of nine (9) vehicles held by the Council. \uf0b7 I noted that nine (9) out of the ten (10) Regional Offices were not allocated vehicles to facilitate their operations. |\n| 1 | 9 | Joint Clinical Research Centre. 2019/20 Opinion Unqualified | \uf0b7 The entity budgeted to receive UGX 20,906,339,925 from development partners out of which UGX 19,707,530,000 was received resulting in a shortfall of UGX 1,198,809,925. In addition, out of budgeted local revenue of UGX 4,366,651,934, only UGX 2,693,800,000 was generated resulting into a shortfall of UGX 1,672,851,934. \uf0b7 I noted that all the seven (7) sampled outputs with a total of one hundred fifty-five (155) activities worth UGX 18.304Bn were partially implemented. Out of the one hundred fifty-five (155) activities, the entity fully implemented ninety-three (93) activities (60%), eighteen (18) |", "metadata": {"page": 311, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | 2019/20 Opinion Unqualified | achieve any of the 6 strategic objectives in its expired draft strategic plan it has been implementing for the last five years. \uf0b7 I noted that the Organization did not have a governing Board during the year under review, after the term of office for all former members of the Board expired in 2016. \uf0b7 The Sessional Parliamentary Committee on Social services recommended the granting of a vote status to the Organization. This was followed by issuance of statutory instruments and the gazetting and commencement of the Uganda National Health Research Organisation Act, 2011 on the 22nd day of January 2016. However, it was noted that the Organization had not been granted a vote status by the time of audit. \uf0b7 No regulations were put in place to operationalize the UNHRO Act 2011. There were no regulations to guide UNHRO staff and stakeholders on matters such as regulation of the operations of the constituent research institutions, human resources, finance and administration, the general operations of the Organization. \uf0b7 The employment contract on file for the Director General expired in April 2018 and had not been renewed by the time of audit. \uf0b7 Only 12 out of the approved 26 positions in the Organizational Structure had been filled resulting into a staffing gap of 14 positions. \uf0b7 UNHRO had an annual work plan of UGX 2,080,000,000 for the financial year 2019/2020. However, I noted that the Organization was financed by a subvention of only UGX 240,000,000, through the Ministry of Health thereby resulting into a funding gap of UGX. 1,840,000,000. \uf0b7 A review of the Organization\u2019s Scheme of service and staff contracts revealed that most of the institution staff were only paid their Basic salary leaving out the other packages that form part of their consolidated pay such as housing, transport and medical allowances. |\n|---:|:-------------|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | activities (12%) were partially implemented while forty-four (44) activities (28%), were not implemented by the time of audit. \uf0b7 I reviewed the balance of \u2018payables falling within one year\u2019 reported in the Statement of Financial Position and Note 21 and noted an increase of UGX 121,010,000 from UGX 1,138,910,000 (30th June 2019) to UGX 1,259,920,000 (30th June 2020). I further reviewed the ageing of the payables and noted that included in the outstanding balance of UGX 1,259,920,000 are payables worth UGX 357,139,495 that had remained outstanding for over 90 days. \uf0b7 Seventeen (17) running motor vehicles which were fully depreciated according to the JCRC Fleet Management Policy and had zero net book value in the schedule of fixed assets were still in use. The entity did not revalue or make annual reviews of its expectations with regard to the residual values and useful lives of the vehicles in question resulting into under valuation/understatement of non-current assets in use in the statement of financial position. \uf0b7 The Principal Private Secretary to His Excellency the President\u2019s letter ref: PO/1 dated 12th February 2019 directed the Hon. Minister of Finance, Planning & Economic Development to increase Government funding to the Centre from UGX.240 million to UGX.5 billion annually in the subsequent years, that is, with effect from the Financial Year 2019/20. According to the various communications by the Centre\u2019s Executive Director, the increment in funding was necessitated by the declining donor support. \uf0b7 However, the no-objection for the implementation of the directive was only granted to the PS/ST by the PS MOH through letter ref: 45/415/01 dated 4th February 2020. This was when the financial year 2019/20 budget was in the third quarter of implementation. \uf0b7 Contrary to the PPDA requirements, the entity delayed to submit ten (10) out of twelve (12) monthly procurement and disposal reports to the Authority for the financial year under review. \uf0b7 The Centre had a procurement plan worth for the year under review. I noted that out of the planned procurements worth UGX 6,956,028,077, procurements worth UGX 5,434,128,077 (78%) were implemented while those worth UGX 1,521,900,000 (22%) were not conducted. | Unnamed: 2 |", "metadata": {"page": 312, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | 2019/20 Opinion Unqualified | achieve any of the 6 strategic objectives in its expired draft strategic plan it has been implementing for the last five years. \uf0b7 I noted that the Organization did not have a governing Board during the year under review, after the term of office for all former members of the Board expired in 2016. \uf0b7 The Sessional Parliamentary Committee on Social services recommended the granting of a vote status to the Organization. This was followed by issuance of statutory instruments and the gazetting and commencement of the Uganda National Health Research Organisation Act, 2011 on the 22nd day of January 2016. However, it was noted that the Organization had not been granted a vote status by the time of audit. \uf0b7 No regulations were put in place to operationalize the UNHRO Act 2011. There were no regulations to guide UNHRO staff and stakeholders on matters such as regulation of the operations of the constituent research institutions, human resources, finance and administration, the general operations of the Organization. \uf0b7 The employment contract on file for the Director General expired in April 2018 and had not been renewed by the time of audit. \uf0b7 Only 12 out of the approved 26 positions in the Organizational Structure had been filled resulting into a staffing gap of 14 positions. \uf0b7 UNHRO had an annual work plan of UGX 2,080,000,000 for the financial year 2019/2020. However, I noted that the Organization was financed by a subvention of only UGX 240,000,000, through the Ministry of Health thereby resulting into a funding gap of UGX. 1,840,000,000. \uf0b7 A review of the Organization\u2019s Scheme of service and staff contracts revealed that most of the institution staff were only paid their Basic salary leaving out the other packages that form part of their consolidated pay such as housing, transport and medical allowances. |\n|---:|-------------:|:-----------------------------------------------------------------------------|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 10 | Uganda Medical and Dental Practitioners Council. 2019/20 Opinion Unqualified | \uf0b7 The Governing Council stated that a material uncertainty existed regarding the continued operation of Allied Health Professionals Council in the foreseeable future. \uf0b7 Management\u2019s judgement was informed by a letter from the PS - Ministry of Public Service to all Accounting Officers in which guidance was provided on the modalities for management of Public Institutions during the implementation of recommendations on the rationalization of Agencies and Public Expenditure. \uf0b7 I noted that out of the budgeted Non-Tax revenue UGX.2,891,430,000, only UGX.1,650,811,279 was realized during the year under review (representing 57% performance). This hampered effective service delivery. \uf0b7 Contrary to the statutory deadline of 31st day of March for the publication all up-to-date registers in the gazette, registers for 2020 had not been published in the gazette by the time of audit in November 2020. |\n| 1 | 11 | The Rehabilitation and Expansion of Kayunga and | \uf0b7 The project experienced significant revenue shortfalls. Out of the expected receipts of USD 19,064,124.79, the project received funding |", "metadata": {"page": 312, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Yumbe Hospitals Project (KAYUP) -BADEA No. 0761, OFID No. 1628P and SFD No. 6/620 \u2013 Ministry of Health Project. 2019/20 Opinion Unqualified | totalling USD.8,252,401.61 constituting USD. 6,240,515.26 from external sources and USD.2,011,886.35 (UGX. 7,505,000,000) from GoU counterpart contribution. This translated into a budget shortfall of USD 10,811,723.18 (representing 56.71% of the approved budget). \uf0b7 There were delays in Project implementation. The project became effective on 16th April 2015 and was initially expected to be completed on 28th February 2020 which was later extended to 31st December 2021. However, the cumulative project progress was at 99.5% as at 30th June 2020. Major delays were identified in the procurement and installation of Medical equipment, Ambulances, mini-buses and Pick-ups. |\n|---:|-------------:|:----------------------------------------------------------------------------------------------------------------------------------------------|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 12 | Uganda-Spain Debt Swap Project. 2019/20 Opinion Unqualified | \uf0b7 I noted that out of the two (2) planned project outputs for the year, one (1) output was fully implemented while one (1) output was partially implemented. Management attributed the level of performance to delayed commencement of the preparation of the detailed designs for the refurbishment and equipping of Busolwe General Hospital which involved approval of extra charges for the consultant to revise the site survey report. According to management, the COVID-19 pandemic further affected the operations of the Consultant. \uf0b7 During the year under review, the Project received a sum of UGX 15.69Bn of which UGX.10.63Bn was spent resulting in an unspent balance of UGX.5.06Bn (representing an absorption level of 67.8%). |\n| 1 | 13 | Uganda Reproductive Health Voucher Project (URHVP) GPOBA Grant Number TF015995. 2019/20 Opinion Unqualified | \uf0b7 A review of the project financial statements as at 30th June 2020 (Note 2 & Annex 6.0) together with underlying financial records revealed that the project had bank balances of USD 49.85 and UGX.792 in Bank of Uganda at the time of closure. However, Management did not avail documentary proof of closure of these Accounts at the end of the project when sought. \uf0b7 A review of the agent records revealed that by end of project closure, various assets acquired under the project had not been handed over to the client as per the agreement. |", "metadata": {"page": 313, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Yumbe Hospitals Project (KAYUP) -BADEA No. 0761, OFID No. 1628P and SFD No. 6/620 \u2013 Ministry of Health Project. 2019/20 Opinion Unqualified | totalling USD.8,252,401.61 constituting USD. 6,240,515.26 from external sources and USD.2,011,886.35 (UGX. 7,505,000,000) from GoU counterpart contribution. This translated into a budget shortfall of USD 10,811,723.18 (representing 56.71% of the approved budget). \uf0b7 There were delays in Project implementation. The project became effective on 16th April 2015 and was initially expected to be completed on 28th February 2020 which was later extended to 31st December 2021. However, the cumulative project progress was at 99.5% as at 30th June 2020. Major delays were identified in the procurement and installation of Medical equipment, Ambulances, mini-buses and Pick-ups. |\n|---:|-------------:|:----------------------------------------------------------------------------------------------------------------------------------------------|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 14 | Butabika National Mental Referral Hospital. Opinion Unqualified | \uf0b7 The entity budgeted to collect NTR of UGX 1.24bn during the year under review. However, the hospital collected UGX. 1.15bn thereby resulting into a shortfall of UGX 0.09bn. \uf0b7 The Hospital received the entire revised annual budget of UGX 17.023bn out of which UGX 16.551bn was spent resulting in unutilized funds of UGX 0.472bn. The unspent balance at the end of the financial year was subsequently swept back to the consolidated fund account. \uf0b7 I noted that the entity submitted all the quarterly performance reports after the prescribed deadline. The Accounting Officer explained that due to COVID-19 restrictions, the support offices were operating at 10% which led to delays in preparation and submission of the quarterly performance reports. \uf0b7 According to the patient admission schedule and the strategic plan, the Hospital currently handles between 750 and 780 in-patients per month compared to its bed capacity of 550 patients. This implies that 200 to 230 admitted patients either share beds or sleep on the floor. \uf0b7 I noted that UGX.93,717,182 was utilized for repairs and service for vehicles during the year under review. However, there were no repair and service analysis registers for the 13 vehicles that were maintained. Furthermore, it was observed that the Hospital Transport Officer did not maintain service charts for all the 13 vehicles. |\n| 1 | 15 | Kawempe National Referral | \uf0b7 The entity budgeted to collect NTR of UGX. 449m during the year under |", "metadata": {"page": 313, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Hospital. Opinion Unqualified | review, and UGX. 451m was realized, representing a performance of 100.4% of the target. \uf0b7 Out of the total receipts for the financial year of UGX 11.723 bn, UGX. 11.385Bn was spent by the entity resulting in an unspent balance of UGX.0.337Bn (representing an absorption level of 97.1%). The unspent balance at the end of the financial year was subsequently swept back to the consolidated fund account. \uf0b7 I noted that all the eight (8) outputs selected for budget performance assessment with a total of eleven (11) activities and actual expenditure of UGX 4.6bn were fully quantified. This therefore enabled me to assess the Hospital\u2019s performance during the year under review. \uf0b7 Out of the eight (8) sampled outputs, two (2) outputs were fully implemented while six (6) were partially implemented. I further noted that out of the planned eleven (11) activities under the sampled outputs, two (2) activities were fully achieved while nine (9) were partially achieved. \uf0b7 A total of UGX 36,870,179 worth of expenditure was charged on other than the budget lines on which the funds were appropriated without seeking the necessary approval from the relevant authorities. \uf0b7 I noted that the Hospital submitted all the quarterly performance reports beyond the prescribed deadlines. \uf0b7 From my review of the annual performance reports and physical inspections/verification of outputs reported, I did not observe inconsistencies in the reported performance. \uf0b7 I noted that the Hospital accumulated payables/domestic arrears to tune of UGX. 799,186,746 up from UGX. 365,151,250 as at 30th June 2020. \uf0b7 I noted that whereas the Board of Survey Report for the year ended 30th June 2021 established that the Hospital had a closing inventory of various items; this state of affairs was not disclosed as part of the Financial Statements under Annex (ii)-Schedule of Inventory, thereby rendering the financial statements incomplete. \uf0b7 It was noted that the Hospital stored expired medicines without disposing them as required by the law. Out of the seventy four (74) items of expired drugs, I observed that thirty six (36) had expired by end of December 2020 (representing 49%). Under the circumstances, lives of patients are threatened by the existence of expired medicines at the hospital premises. \uf0b7 I noted that the Referral Hospital was heavily congested with patients crowded in the wards and some sleeping on the floors. This was further evidenced by the data collected on Bed Occupancy Rates which showed an average BOR of 113% for the year under review. Congestion was also observed in the stores where some items were placed directly on the floor exposing them to damage. \uf0b7 From a review of payments and procurements made during the year, I noted that procurements of goods worth UGX 187,406,417 were not supported with ledgers in the stores to track delivery and utilization of the accountable inventories procured. |\n|---:|-------------:|:--------------------------------------------------------|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 16 | Kiruddu National Referral Hospital. Opinion Unqualified | \uf0b7 I noted that the Hospital\u2019s 5-Year Strategic Plan (FY 2020/21-2024/25) had been approved by National Planning Authority (NPA) by the time of audit. \uf0b7 The entity budgeted to collect NTR of UGX. 1,520,000,000 during the |", "metadata": {"page": 314, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Hospital. Opinion Unqualified | review, and UGX. 451m was realized, representing a performance of 100.4% of the target. \uf0b7 Out of the total receipts for the financial year of UGX 11.723 bn, UGX. 11.385Bn was spent by the entity resulting in an unspent balance of UGX.0.337Bn (representing an absorption level of 97.1%). The unspent balance at the end of the financial year was subsequently swept back to the consolidated fund account. \uf0b7 I noted that all the eight (8) outputs selected for budget performance assessment with a total of eleven (11) activities and actual expenditure of UGX 4.6bn were fully quantified. This therefore enabled me to assess the Hospital\u2019s performance during the year under review. \uf0b7 Out of the eight (8) sampled outputs, two (2) outputs were fully implemented while six (6) were partially implemented. I further noted that out of the planned eleven (11) activities under the sampled outputs, two (2) activities were fully achieved while nine (9) were partially achieved. \uf0b7 A total of UGX 36,870,179 worth of expenditure was charged on other than the budget lines on which the funds were appropriated without seeking the necessary approval from the relevant authorities. \uf0b7 I noted that the Hospital submitted all the quarterly performance reports beyond the prescribed deadlines. \uf0b7 From my review of the annual performance reports and physical inspections/verification of outputs reported, I did not observe inconsistencies in the reported performance. \uf0b7 I noted that the Hospital accumulated payables/domestic arrears to tune of UGX. 799,186,746 up from UGX. 365,151,250 as at 30th June 2020. \uf0b7 I noted that whereas the Board of Survey Report for the year ended 30th June 2021 established that the Hospital had a closing inventory of various items; this state of affairs was not disclosed as part of the Financial Statements under Annex (ii)-Schedule of Inventory, thereby rendering the financial statements incomplete. \uf0b7 It was noted that the Hospital stored expired medicines without disposing them as required by the law. Out of the seventy four (74) items of expired drugs, I observed that thirty six (36) had expired by end of December 2020 (representing 49%). Under the circumstances, lives of patients are threatened by the existence of expired medicines at the hospital premises. \uf0b7 I noted that the Referral Hospital was heavily congested with patients crowded in the wards and some sleeping on the floors. This was further evidenced by the data collected on Bed Occupancy Rates which showed an average BOR of 113% for the year under review. Congestion was also observed in the stores where some items were placed directly on the floor exposing them to damage. \uf0b7 From a review of payments and procurements made during the year, I noted that procurements of goods worth UGX 187,406,417 were not supported with ledgers in the stores to track delivery and utilization of the accountable inventories procured. |\n|---:|:-------------|:--------------------------------|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | Unnamed: 1 | year under review, and UGX. 719,423,137 was realized, representing a performance of 46.9% of the target. \uf0b7 Out of the total warrants of UGX.18.8Bn received during the financial year, UGX. 18.3Bn was spent by the entity resulting in an unspent balance of UGX. 0.5Bn (representing an absorption level of 97.3%). The unspent funds were swept back to the consolidated fund as required by the PFMA. \uf0b7 Out of the ten (10) outputs selected for budget performance assessment with a total of twenty four (24) activities and expenditure of UGX 12.16bn, I noted that seven (7) outputs with a total of fourteen (14) activities and expenditure worth UGX 9.99bn were fully quantified. Two (2) outputs with a total of eight (8) activities and expenditure worth UGX 1.9Bn, was insufficiently quantified. One (1) output with a total of two (2) activities and expenditure worth UGX 0.27bn were not quantified at all to enable performance assessment. \uf0b7 Out of the seven (7) outputs that were fully quantified with a total of fourteen (14) activities, four (4) outputs with a total of six (6) activities were fully implemented. Three (3) outputs with a total of eight (8) activities worth UGX 8.45bn were partially implemented. Out of the eight (08) activities, the entity fully implemented two (02) activities (25%) while six (06) activities (75%) remained partially implemented. \uf0b7 I noted that the Hospital submitted three (3) out of four (4) quarterly performance reports to Treasury within the prescribed deadlines. However, there was no documentary proof of preparation and submission of annual monitoring plans and reports to MoFPED and NPA as required. I further noted inconsistences in the financial information reported in the performance reports when compared with the financial statements. \uf0b7 A review of drugs supply chain management revealed that on several occasions there were drug stock-outs which left Kiruddu Hospital without several essential, vital and necessary drugs. \uf0b7 Inspection of the hospital drug stores revealed that some drugs/chemicals had expired in the Hospital stores. This could have been due to low utilization rates, receipt of drugs with short shelf life or placement of orders that do not match the usage patterns. \uf0b7 I noted that 55 new recruits were not cleared by Ministry of Public Service as required. The Accounting Officer attributed the anomaly to the need to fill critical vacant positions in the hospital. |", "metadata": {"page": 315, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Hospital. Opinion Unqualified | review, and UGX. 451m was realized, representing a performance of 100.4% of the target. \uf0b7 Out of the total receipts for the financial year of UGX 11.723 bn, UGX. 11.385Bn was spent by the entity resulting in an unspent balance of UGX.0.337Bn (representing an absorption level of 97.1%). The unspent balance at the end of the financial year was subsequently swept back to the consolidated fund account. \uf0b7 I noted that all the eight (8) outputs selected for budget performance assessment with a total of eleven (11) activities and actual expenditure of UGX 4.6bn were fully quantified. This therefore enabled me to assess the Hospital\u2019s performance during the year under review. \uf0b7 Out of the eight (8) sampled outputs, two (2) outputs were fully implemented while six (6) were partially implemented. I further noted that out of the planned eleven (11) activities under the sampled outputs, two (2) activities were fully achieved while nine (9) were partially achieved. \uf0b7 A total of UGX 36,870,179 worth of expenditure was charged on other than the budget lines on which the funds were appropriated without seeking the necessary approval from the relevant authorities. \uf0b7 I noted that the Hospital submitted all the quarterly performance reports beyond the prescribed deadlines. \uf0b7 From my review of the annual performance reports and physical inspections/verification of outputs reported, I did not observe inconsistencies in the reported performance. \uf0b7 I noted that the Hospital accumulated payables/domestic arrears to tune of UGX. 799,186,746 up from UGX. 365,151,250 as at 30th June 2020. \uf0b7 I noted that whereas the Board of Survey Report for the year ended 30th June 2021 established that the Hospital had a closing inventory of various items; this state of affairs was not disclosed as part of the Financial Statements under Annex (ii)-Schedule of Inventory, thereby rendering the financial statements incomplete. \uf0b7 It was noted that the Hospital stored expired medicines without disposing them as required by the law. Out of the seventy four (74) items of expired drugs, I observed that thirty six (36) had expired by end of December 2020 (representing 49%). Under the circumstances, lives of patients are threatened by the existence of expired medicines at the hospital premises. \uf0b7 I noted that the Referral Hospital was heavily congested with patients crowded in the wards and some sleeping on the floors. This was further evidenced by the data collected on Bed Occupancy Rates which showed an average BOR of 113% for the year under review. Congestion was also observed in the stores where some items were placed directly on the floor exposing them to damage. \uf0b7 From a review of payments and procurements made during the year, I noted that procurements of goods worth UGX 187,406,417 were not supported with ledgers in the stores to track delivery and utilization of the accountable inventories procured. |\n|---:|-------------:|:---------------------------------------------|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 17 | National Drug Authority. Opinion Unqualified | \uf0b7 NDA had an approved five-year strategic plan FY 2020/21-2024/25 which was well aligned to the National Development Plan in terms of timelines. \uf0b7 The financial statements indicated that NTR amounting to UGX 70.73bn was collected during the year against a budget of UGX.68.75bn representing 103% performance. \uf0b7 Out of the total revenue of UGX.70.73bn realized during the financial year, UGX.58.43bn was spent by the entity resulting in balance of UGX.12.3bn representing an absorption level of 83%. \uf0b7 The Authority did not implement some of its key planned activities during the year which included; herbal inspections, collection of microbiology samples and articles on veterinary drug regulation. \uf0b7 The Authority had receivables and prepayments to the tune UGX 42,607,112,126 at the end of the financial year, out of which UGX 37,748,567,840 (88.6%) was due from the Ministry of Health. The presence of significant balances of outstanding receivables poses the risk |", "metadata": {"page": 315, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Hospital. Opinion Unqualified | review, and UGX. 451m was realized, representing a performance of 100.4% of the target. \uf0b7 Out of the total receipts for the financial year of UGX 11.723 bn, UGX. 11.385Bn was spent by the entity resulting in an unspent balance of UGX.0.337Bn (representing an absorption level of 97.1%). The unspent balance at the end of the financial year was subsequently swept back to the consolidated fund account. \uf0b7 I noted that all the eight (8) outputs selected for budget performance assessment with a total of eleven (11) activities and actual expenditure of UGX 4.6bn were fully quantified. This therefore enabled me to assess the Hospital\u2019s performance during the year under review. \uf0b7 Out of the eight (8) sampled outputs, two (2) outputs were fully implemented while six (6) were partially implemented. I further noted that out of the planned eleven (11) activities under the sampled outputs, two (2) activities were fully achieved while nine (9) were partially achieved. \uf0b7 A total of UGX 36,870,179 worth of expenditure was charged on other than the budget lines on which the funds were appropriated without seeking the necessary approval from the relevant authorities. \uf0b7 I noted that the Hospital submitted all the quarterly performance reports beyond the prescribed deadlines. \uf0b7 From my review of the annual performance reports and physical inspections/verification of outputs reported, I did not observe inconsistencies in the reported performance. \uf0b7 I noted that the Hospital accumulated payables/domestic arrears to tune of UGX. 799,186,746 up from UGX. 365,151,250 as at 30th June 2020. \uf0b7 I noted that whereas the Board of Survey Report for the year ended 30th June 2021 established that the Hospital had a closing inventory of various items; this state of affairs was not disclosed as part of the Financial Statements under Annex (ii)-Schedule of Inventory, thereby rendering the financial statements incomplete. \uf0b7 It was noted that the Hospital stored expired medicines without disposing them as required by the law. Out of the seventy four (74) items of expired drugs, I observed that thirty six (36) had expired by end of December 2020 (representing 49%). Under the circumstances, lives of patients are threatened by the existence of expired medicines at the hospital premises. \uf0b7 I noted that the Referral Hospital was heavily congested with patients crowded in the wards and some sleeping on the floors. This was further evidenced by the data collected on Bed Occupancy Rates which showed an average BOR of 113% for the year under review. Congestion was also observed in the stores where some items were placed directly on the floor exposing them to damage. \uf0b7 From a review of payments and procurements made during the year, I noted that procurements of goods worth UGX 187,406,417 were not supported with ledgers in the stores to track delivery and utilization of the accountable inventories procured. |\n|---:|:-------------|:------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | of non-recoverability, thus denying the Authority realization of revenue for achievement of its objectives. \uf0b7 Seventeen (17) running motor vehicles were fully depreciated during the previous year, reflected at zero book value and removed from the Statement of Financial Position. Removal from the statement of financial position of assets still in use and with no evidence that future economic benefits will not be expected from disposal of the same, misrepresents the entity\u2019s financial position. \uf0b7 There was slow progress on the civil works NDA laboratory Tower. Further, works for the amended building plans for the NDA laboratory Tower had commenced by the time of audit in August 2021 prior to approval by the Metropolitan Physical Planning Authority contrary to Section 22 (1f) of the KCCA Act 2010. \uf0b7 The Authority fully paid UGX.343,694,683 in advance to providers awarded contracts for the supply of analytical equipment without obtaining appropriate advance payment security. I also noted that the Authority signed contracts to a tune of USD 14,872.8 with two domestic suppliers in foreign currency. | Unnamed: 2 |\n| 1 | 18 | Uganda National Health Research Organization. Opinion Unqualified | \uf0b7 The Sessional Parliamentary Committee on Social services recommended the granting of a vote status to the Organization. This was followed by issuance of statutory instruments and the gazetting and commencement of the Uganda National Health Research Organisation Act, 2011 on the 22nd day of January 2016. However, I noted that the Organization had not been granted a vote status by the time of audit. \uf0b7 I noted that the Organization did not have a governing Board during the year under review, after the term of office for all former members of the Board expired in 2016. \uf0b7 The employment contract on file for the Director General expired in April 2018 and had not been renewed by the time of audit. \uf0b7 Only 12 out of the approved 26 positions in the Organizational Structure had been filled resulting into a staffing gap of 14 positions. \uf0b7 The Organization was financed by a subvention of only UGX.240m out of which 94% was earmarked for wage leaving only 6% for operational costs. |", "metadata": {"page": 316, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Hospital. Opinion Unqualified | review, and UGX. 451m was realized, representing a performance of 100.4% of the target. \uf0b7 Out of the total receipts for the financial year of UGX 11.723 bn, UGX. 11.385Bn was spent by the entity resulting in an unspent balance of UGX.0.337Bn (representing an absorption level of 97.1%). The unspent balance at the end of the financial year was subsequently swept back to the consolidated fund account. \uf0b7 I noted that all the eight (8) outputs selected for budget performance assessment with a total of eleven (11) activities and actual expenditure of UGX 4.6bn were fully quantified. This therefore enabled me to assess the Hospital\u2019s performance during the year under review. \uf0b7 Out of the eight (8) sampled outputs, two (2) outputs were fully implemented while six (6) were partially implemented. I further noted that out of the planned eleven (11) activities under the sampled outputs, two (2) activities were fully achieved while nine (9) were partially achieved. \uf0b7 A total of UGX 36,870,179 worth of expenditure was charged on other than the budget lines on which the funds were appropriated without seeking the necessary approval from the relevant authorities. \uf0b7 I noted that the Hospital submitted all the quarterly performance reports beyond the prescribed deadlines. \uf0b7 From my review of the annual performance reports and physical inspections/verification of outputs reported, I did not observe inconsistencies in the reported performance. \uf0b7 I noted that the Hospital accumulated payables/domestic arrears to tune of UGX. 799,186,746 up from UGX. 365,151,250 as at 30th June 2020. \uf0b7 I noted that whereas the Board of Survey Report for the year ended 30th June 2021 established that the Hospital had a closing inventory of various items; this state of affairs was not disclosed as part of the Financial Statements under Annex (ii)-Schedule of Inventory, thereby rendering the financial statements incomplete. \uf0b7 It was noted that the Hospital stored expired medicines without disposing them as required by the law. Out of the seventy four (74) items of expired drugs, I observed that thirty six (36) had expired by end of December 2020 (representing 49%). Under the circumstances, lives of patients are threatened by the existence of expired medicines at the hospital premises. \uf0b7 I noted that the Referral Hospital was heavily congested with patients crowded in the wards and some sleeping on the floors. This was further evidenced by the data collected on Bed Occupancy Rates which showed an average BOR of 113% for the year under review. Congestion was also observed in the stores where some items were placed directly on the floor exposing them to damage. \uf0b7 From a review of payments and procurements made during the year, I noted that procurements of goods worth UGX 187,406,417 were not supported with ledgers in the stores to track delivery and utilization of the accountable inventories procured. |\n|---:|-------------:|:------------------------------------------------------------------|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 19 | Uganda National Health Research Organization. Opinion Unqualified | \uf0b7 The Sessional Parliamentary Committee on Social services recommended the granting of a vote status to the Organization. This was followed by issuance of statutory instruments and the gazetting and commencement of the Uganda National Health Research Organisation Act, 2011 on the 22nd day of January 2016. However, I noted that the Organization had not been granted a vote status by the time of audit. \uf0b7 I noted that the Organization did not have a governing Board during the year under review, after the term of office for all former members of the Board expired in 2016. \uf0b7 The employment contract on file for the Director General expired in April 2018 and had not been renewed by the time of audit. \uf0b7 Only 12 out of the approved 26 positions in the Organizational Structure had been filled resulting into a staffing gap of 14 positions. \uf0b7 The Organization was financed by a subvention of only UGX.240m out of which 94% was earmarked for wage leaving only 6% for operational cos |", "metadata": {"page": 316, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 20 | Joint Clinical Research Centre (JCRC). Opinion Unqualified | \uf0b7 JCRC reported trade and other receivables of UGX.4,210,400,000. Out of this UGX.95,254,972 related to the previous financial year. I noted that JCRC did not make any provision for bad debts as required by IFRS 9 and its Manual. Failure to make provisions may result into overstating reported receivables due to unaccounted for risks of non-recoverability. In addition, there was no evidence from the Finance Committee that a review of the bad debts position was annually done. Management explained that in addition to sending out constant reminders to the listed debtors, Management would review the list further for presentation to the Finance Committee of the Board. I advised the Accounting officer to make the required provisions for bad debts in accordance with Standards and the Manual \uf0b7 I noted that JCRC signed contracts with local service providers in foreign currency to a tune of USD 32,258.7. The contracts were for supply of Bone density kits (USD 25,515); supply of Hematology reagents (USD 2,060), and; for internet services (USD 4,683). I advised the Accounting Officer to take heed of the PS/ST recommendation and ensure that all local contracts are awarded in Uganda Shillings. |\n|---:|-----:|:--------------------------------------------------------------|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 21 | Uganda Blood Transfusion Services (UBTS). Opinion Unqualified | \uf0b7 I noted that the entity had prepared and approved its plan. However, approval and certification had not yet been obtained from the National Planning Authority. \uf0b7 Whereas the entity did not budget for collection of NTR, UGX.8,550,000 was collected and remitted to the Treasury during the year under review. Out of the total receipts from Treasury of UGX.17.43Bn, only UGX.17.20Bn was spent by the entity resulting in an unspent balance of UGX.0.23Bn (representing an absorption level of 98.68%). The unspent balance at the end of the financial year was subsequently swept back to the consolidated fund account. \uf0b7 Only one (1) output with a total of two (2) activities and expenditure of UGX 7.65bn was fully quantified out of the seven (7) outputs with a total of sixteen (16) activities and expenditure of UGX 11.99bn sampled for assessment. All the two (2) quantified activities under this output were partially implemented. \uf0b7 I noted that funds to the tune of UGX 20,829,692 were irregularly reallocated from the activities on which they were budgeted and spent on other activities without seeking and obtaining the necessary approvals. \uf0b7 I noted that the entity submitted performance reports for Q1, Q2, Q3, Q4 after the prescribed deadline. \uf0b7 The entity registered an upward trend in accumulation of domestic arrears between the FYs 2016/2017 (UGX.76,296,521), 2019/2020 (UGX.430,885,758) and 2020/21 9 (UGX.512,086,423). Only UGX.97,730,535 was provided in the annual budget to settle domestic arrears. \uf0b7 A review of the staff structure of Uganda Blood Transfusion Services revealed that out of the approved structure of 424, only 299 positions are filled leaving a variance of 125 staff positions vacant. \uf0b7 I noted that apart from Nakasero (Freehold Tenure), Gulu (Leasehold) and Mbarara (Freehold Tenure) Blood Banks, there were no title deeds, memoranda of understanding or lease agreements for the land currently occupied by the four (4) Regional Blood Banks of Arua, Mbale, Kitovu and Fort Portal. \uf0b7 In addition, there were inconsistencies with the plot number wrongly |", "metadata": {"page": 317, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 20 | Joint Clinical Research Centre (JCRC). Opinion Unqualified | \uf0b7 JCRC reported trade and other receivables of UGX.4,210,400,000. Out of this UGX.95,254,972 related to the previous financial year. I noted that JCRC did not make any provision for bad debts as required by IFRS 9 and its Manual. Failure to make provisions may result into overstating reported receivables due to unaccounted for risks of non-recoverability. In addition, there was no evidence from the Finance Committee that a review of the bad debts position was annually done. Management explained that in addition to sending out constant reminders to the listed debtors, Management would review the list further for presentation to the Finance Committee of the Board. I advised the Accounting officer to make the required provisions for bad debts in accordance with Standards and the Manual \uf0b7 I noted that JCRC signed contracts with local service providers in foreign currency to a tune of USD 32,258.7. The contracts were for supply of Bone density kits (USD 25,515); supply of Hematology reagents (USD 2,060), and; for internet services (USD 4,683). I advised the Accounting Officer to take heed of the PS/ST recommendation and ensure that all local contracts are awarded in Uganda Shillings. |\n|---:|:-----------|:------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | reflected as Plot 27 instead of 2F on the cover page of the title deed for the land currently occupied by Nakasero Blood Bank. Management wrote to the Secretary Uganda Land Commission about the anomaly in a letter dated 5/4/2012 Reference number UBTS/ADM/LT/01, no response had been received to date. Furthermore, 0.079 hectares of Nakasero Blood Bank were reported to have been encroached on by the fence of Pearl of Africa Hotel on plots 2E and 7A1-9A1 as per the boundary opening reports of 23rd November 2009 (S.M Geoteam ltd) and 2nd August 2013 (Terrain Consult) who had been appointed by UBTS. \uf0b7 I noted a one year\u2019s delayed execution of works for the completion of the remodelling of a store at Nakasero Blood Bank. A sum of UGX 2.86bn had so far been paid against the contract sum of UGX.3.77bn. \uf0b7 I noted that a total of UGX.0.968Bn was spent on the Blood Safety Information System during the year. Whereas there was information on blood collected, stored and issued during the year, there was no information on how the 224,303 units of blood that had been issued to the different health facilities had been utilized. | Unnamed: 2 |", "metadata": {"page": 318, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 20 | Joint Clinical Research Centre (JCRC). Opinion Unqualified | \uf0b7 JCRC reported trade and other receivables of UGX.4,210,400,000. Out of this UGX.95,254,972 related to the previous financial year. I noted that JCRC did not make any provision for bad debts as required by IFRS 9 and its Manual. Failure to make provisions may result into overstating reported receivables due to unaccounted for risks of non-recoverability. In addition, there was no evidence from the Finance Committee that a review of the bad debts position was annually done. Management explained that in addition to sending out constant reminders to the listed debtors, Management would review the list further for presentation to the Finance Committee of the Board. I advised the Accounting officer to make the required provisions for bad debts in accordance with Standards and the Manual \uf0b7 I noted that JCRC signed contracts with local service providers in foreign currency to a tune of USD 32,258.7. The contracts were for supply of Bone density kits (USD 25,515); supply of Hematology reagents (USD 2,060), and; for internet services (USD 4,683). I advised the Accounting Officer to take heed of the PS/ST recommendation and ensure that all local contracts are awarded in Uganda Shillings. |\n|---:|-----:|:-------------------------------------------------------------|:-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 22 | Uganda Virus Research Institute. Opinion Unqualified | \uf0b7 I noted that the entity had prepared and approved its plan. However, approval and certification had not yet been obtained from the National Planning Authority. \uf0b7 I noted that the entity did not budget or collect NTR during the year under review. \uf0b7 This was attributed to the breakdown of the Nitrogen plant three years ago which was the main source of revenue. However, the Institute received funds from GoU and was in the process of procuring a new Nitrogen plant. \uf0b7 The Institute received the entire budget of UGX.8.97bn out of which UGX.8.95bn was spent by the entity resulting in an unspent balance of UGX.20.76m (representing an absorption level of 98.8%). The unspent balance at the end of the financial year was subsequently swept back to the consolidated fund account. \uf0b7 Two (2) outputs with a total of two (2) activities and expenditure of UGX 2.23bn were fully quantified out of the eight (8) outputs with a total of twenty-two (22) activities and expenditure of UGX 8.20bn sampled for assessment. None of the two (2) quantified activities under the two (2) outputs was implemented at all. \uf0b7 Two (2) outputs with a total of seven (7) activities and expenditure worth UGX.4.99Bn were insufficiently quantified. Out of the seven (7) activities, two (2) activities (29%) was quantified, while the balance of five (5) activities (71%) were not clearly quantified to enable the assessment of performance. \uf0b7 Four (4) outputs with a total of thirteen (13) activities and expenditure worth UGX 980m were not quantified at all. That is none of the thirteen (13) activities within these outputs was quantified at all. \uf0b7 I noted that funds to the tune of UGX 53,300,000 were irregularly reallocated from the activities on which they were budgeted and spent on other activities without seeking and obtaining the necessary approvals. \uf0b7 I noted that the entity submitted performance reports for Q1, Q2, Q3, Q4 after the prescribed deadline. |", "metadata": {"page": 318, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 20 | Joint Clinical Research Centre (JCRC). Opinion Unqualified | \uf0b7 JCRC reported trade and other receivables of UGX.4,210,400,000. Out of this UGX.95,254,972 related to the previous financial year. I noted that JCRC did not make any provision for bad debts as required by IFRS 9 and its Manual. Failure to make provisions may result into overstating reported receivables due to unaccounted for risks of non-recoverability. In addition, there was no evidence from the Finance Committee that a review of the bad debts position was annually done. Management explained that in addition to sending out constant reminders to the listed debtors, Management would review the list further for presentation to the Finance Committee of the Board. I advised the Accounting officer to make the required provisions for bad debts in accordance with Standards and the Manual \uf0b7 I noted that JCRC signed contracts with local service providers in foreign currency to a tune of USD 32,258.7. The contracts were for supply of Bone density kits (USD 25,515); supply of Hematology reagents (USD 2,060), and; for internet services (USD 4,683). I advised the Accounting Officer to take heed of the PS/ST recommendation and ensure that all local contracts are awarded in Uganda Shillings. |\n|---:|:-----------|:-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | \uf0b7 Payables worth UGX 0.409bn remained outstanding from financial year ended 30th June 2019 to-date. I noted that management did not provide for the settlement of domestic arears in the approved budget estimates for the year under review. \uf0b7 A review of the staff structure of Uganda Virus Research Institute revealed that out of the approved structure of 237, only 75 positions were filled leaving 162 staff positions vacant. \uf0b7 A review of a sample of 19 procurement files with a total value of UGX.1.61Bn revealed that the Institute did not require suppliers to provide any form of an acceptable performance guarantee for procurements worth UGX.1.42Bn. \uf0b7 Analysis of payment records and review of staff files revealed that 5 staff of the Institution had retired but had not yet accessed the pension payroll although the six months pensions processing period had elapsed. | Unnamed: 2 |", "metadata": {"page": 319, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 20 | Joint Clinical Research Centre (JCRC). Opinion Unqualified | \uf0b7 JCRC reported trade and other receivables of UGX.4,210,400,000. Out of this UGX.95,254,972 related to the previous financial year. I noted that JCRC did not make any provision for bad debts as required by IFRS 9 and its Manual. Failure to make provisions may result into overstating reported receivables due to unaccounted for risks of non-recoverability. In addition, there was no evidence from the Finance Committee that a review of the bad debts position was annually done. Management explained that in addition to sending out constant reminders to the listed debtors, Management would review the list further for presentation to the Finance Committee of the Board. I advised the Accounting officer to make the required provisions for bad debts in accordance with Standards and the Manual \uf0b7 I noted that JCRC signed contracts with local service providers in foreign currency to a tune of USD 32,258.7. The contracts were for supply of Bone density kits (USD 25,515); supply of Hematology reagents (USD 2,060), and; for internet services (USD 4,683). I advised the Accounting Officer to take heed of the PS/ST recommendation and ensure that all local contracts are awarded in Uganda Shillings. |\n|---:|-----:|:-------------------------------------------------------------|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 23 | National Medical Stores. Opinion Unqualified | \uf0b7 I noted that the Corporation budgeted to collect NTR of UGX.56.37Bn during the year under review. Out of this, only UGX.39.80Bn was collected thereby resulting into a shortfall of UGX.16.57bn. \uf0b7 The Corporation budgeted to receive UGX.470,314,151,130 from treasury. However, UGX.456,568,068,061 was warranted resulting into a budget shortfall of UGX.13,746,083,069 (representing 2.9% of the revised approved budget). \uf0b7 Out of the nine (9) outputs with a total of nine (9) activities and expenditure of UGX.312.5Bn sampled for assessment, I noted that all the nine (9) outputs with a total of nine (9) activities were fully quantified. That is, all the nine (9) activities (100%) within these outputs were clearly quantified to enable assessment of performance. All the nine (9) outputs with a total of nine (9) activities (100%) were fully implemented. \uf0b7 I noted that the Corporation submitted performance reports for Q1, Q2, Q3, Q4 within the prescribed deadlines. \uf0b7 From my review of the annual cumulative performance reports and physical inspections/verification of performance, I did not observe any inconsistencies with the results of my verification. \uf0b7 No justification was provided by management for the significant reduction in the value of Freehold land (UGX 3.91bn; representing 56%) and Stores Equipment (UGX. 5.3bn; representing 135%) within a period of 3 years. \uf0b7 The value of Non-viable medical commodities stood at UGX.5.8bn as at 30th June 2021. I noted that management continued to keep these stocks in the stores. \uf0b7 The Corporation\u2019s receivables stood at UGX.17,537,847,000 as at 30th June 2021. A review of the debtor\u2019s movement schedule revealed that the Ministry of Health was the biggest debtor at UGX.17,325,064,059 (MOH, IDI, LLINs, World Bank and Global Fund), followed by Centre for Disease Control (CDC) project at UGX.8,091,650,000 and container deposits of UGX.408,000,000. This resulted into an accumulated provision for bad and doubtful debts of UGX.25,824,715,000 which according to management was awaiting clearance by MoFPED to be written off. |\n| 1 | 24 | Uganda Heart Institute. Opinion Unqualified | \uf0b7 I noted that the Hospital\u2019s 5-Year Strategic Plan (FY 2020/21 -2024/25) was approved by National Planning Authority (NPA) on 27th September 2021 vide certificate no. 26(3). \uf0b7 Out of eight (8) outputs with a total of forty eight (48) activities and expenditure of UGX.11.50Bn sampled for assessment, I noted that four |", "metadata": {"page": 319, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 20 | Joint Clinical Research Centre (JCRC). Opinion Unqualified | \uf0b7 JCRC reported trade and other receivables of UGX.4,210,400,000. Out of this UGX.95,254,972 related to the previous financial year. I noted that JCRC did not make any provision for bad debts as required by IFRS 9 and its Manual. Failure to make provisions may result into overstating reported receivables due to unaccounted for risks of non-recoverability. In addition, there was no evidence from the Finance Committee that a review of the bad debts position was annually done. Management explained that in addition to sending out constant reminders to the listed debtors, Management would review the list further for presentation to the Finance Committee of the Board. I advised the Accounting officer to make the required provisions for bad debts in accordance with Standards and the Manual \uf0b7 I noted that JCRC signed contracts with local service providers in foreign currency to a tune of USD 32,258.7. The contracts were for supply of Bone density kits (USD 25,515); supply of Hematology reagents (USD 2,060), and; for internet services (USD 4,683). I advised the Accounting Officer to take heed of the PS/ST recommendation and ensure that all local contracts are awarded in Uganda Shillings. |\n|---:|:-----------|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | (4) outputs with a total of seventeen (17) activities and expenditure worth UGX 7.196Bn were fully quantified; four (4) outputs with a total of thirty one (31) activities and expenditure worth UGX 4.306Bn were insufficiently quantified. \uf0b7 I assessed the extent of delivery of the 4 outputs that were fully quantified and noted that one (1) output with a total of two (2) activities worth UGX 0.439Bn was fully implemented. \uf0b7 Two (2) outputs with a total of fourteen (14) activities worth UGX 6.606Bn were partially implemented. Out of the fourteen (14) activities, the entity fully implemented four (4) (29%) activities; seven (7) activities (50%) were partially implemented while three (3) (21%) activities remained unimplemented. One (1) output with only one (1) activity worth 0.15Bn was not implemented at all. \uf0b7 I noted that funds to the tune of UGX. 24.13m were irregularly re- allocated from the activities on which they were budgeted and spent on other activities without seeking and obtaining the necessary approvals. \uf0b7 The entity submitted performance reports for Q1, Q2, Q3, and Q4 after the prescribed deadline. In addition, I did not obtain evidence to confirm that the Accounting Officer Prepared Monitoring Plans and reports which are important in ensuring that the budget performs as expected. \uf0b7 From my review of the annual cumulative performance reports and physical inspections/verification of performance, I did not observe any inconsistencies with the results of my verification. \uf0b7 I noted that insufficient budget provisions (UGX.73,885,634) were made towards settlement of domestic arrears yet the arrears brought forward from the previous year were UGX.1,429,802,685. \uf0b7 The Institute had NTR debtors to the tune of UGX. 282.97m at the end of the financial year under review. These were receivables from various insurance companies, MDAs and institutions for services rendered by the Institute. \uf0b7 The Land Commission received a presidential directive to allocate Uganda Heart Institute 10 acres of land in Nakawa Naguru to facilitate the setting up of a Cardiac Centre of Excellence with a 250 bed hospital. However, I noted that during the year there were encumbrances on part of the allocated land which resulted in the loss of 3 acres after consensual withdrawal of a law suit. \uf0b7 Whereas the total contract sum of UGX. 3.5bn had been paid out for the renovation of the Intensive Care Unit on Block 1C, the works remained incomplete at the time of writing this report. \uf0b7 A review of the staff structure of Uganda Heart Institute revealed that out of the approved structure of 189, only 160 positions were filled leaving 29 staff positions vacant. | Unnamed: 2 |\n| 1 | 25 | Mulago Specialized Women & Neonatal Hospital. Opinion Unqualified | \uf0b7 The entity budgeted to collect NTR of UGX. 7bn during the year under review, and UGX. 3.64bn was realized, representing a performance of 52% of the target. \uf0b7 Out of the total receipts for the financial year of UGX 21.93 bn, UGX. 20.93Bn was spent by the entity resulting in an unspent balance of UGX.0.997Bn (representing an absorption level of 95.5%). The unspent balance at the end of the financial year was subsequently swept back to the consolidated fund account. \uf0b7 I noted that out of the sampled twelve (12) outputs with a total of twenty |", "metadata": {"page": 320, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 20 | Joint Clinical Research Centre (JCRC). Opinion Unqualified | \uf0b7 JCRC reported trade and other receivables of UGX.4,210,400,000. Out of this UGX.95,254,972 related to the previous financial year. I noted that JCRC did not make any provision for bad debts as required by IFRS 9 and its Manual. Failure to make provisions may result into overstating reported receivables due to unaccounted for risks of non-recoverability. In addition, there was no evidence from the Finance Committee that a review of the bad debts position was annually done. Management explained that in addition to sending out constant reminders to the listed debtors, Management would review the list further for presentation to the Finance Committee of the Board. I advised the Accounting officer to make the required provisions for bad debts in accordance with Standards and the Manual \uf0b7 I noted that JCRC signed contracts with local service providers in foreign currency to a tune of USD 32,258.7. The contracts were for supply of Bone density kits (USD 25,515); supply of Hematology reagents (USD 2,060), and; for internet services (USD 4,683). I advised the Accounting Officer to take heed of the PS/ST recommendation and ensure that all local contracts are awarded in Uganda Shillings. |\n|---:|:-----------|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | five (25) activities and expenditure of UGX 17.7bn, only eight (8) outputs with a total of fourteen (14) activities worth UGX 9.1bn were fully quantified. Two (2) outputs with a total of nine (9) activities and expenditure worth UGX.8Bn, was insufficiently quantified. I observed that out of the nine (9) activities, six (6) activities (66.7%) were quantified, while the balance of three (3) activities (33.3%) were not clearly quantified to enable the assessment of performance. Two (2) outputs with a total of two (2) activities and expenditure worth UGX 0.550Bn were not quantified at all. That is none of the two (2) activities within these outputs was quantified at all. \uf0b7 Out of the eight (8) fully quantified outputs with a total of fourteen (14) activities and expenditure worth UGX.9.1Bn, seven (7) outputs with ten (10) activities and expenditure worth UGX 4.8Bn were fully implemented. One (1) output with four (4) activities worth UGX.4.4Bn was partially implemented. Out of the four (4) activities, the entity fully implemented three (3) activities; one (1) activity was partially implemented, while no activity remained unimplemented. \uf0b7 A well equipped kitchen with boilers, fridges, gas cookers, cabinets, a chimney and a full outer gas tank was constructed at the Hospital. However, it was not yet in use at the time of audit. \uf0b7 I noted that the Hospital submitted all the quarterly performance reports beyond the prescribed deadlines. \uf0b7 From my review of the annual performance reports and physical inspections/verification of outputs reported, I did not observe inconsistencies in the reported performance. \uf0b7 I noted that the hospital reported a payables figure of UGX.2,180,857,756 of which UGX. 427,844,778 related to PAYE which was deducted but remained unremitted by close of the year under review. | Unnamed: 2 |", "metadata": {"page": 321, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 20 | Joint Clinical Research Centre (JCRC). Opinion Unqualified | \uf0b7 JCRC reported trade and other receivables of UGX.4,210,400,000. Out of this UGX.95,254,972 related to the previous financial year. I noted that JCRC did not make any provision for bad debts as required by IFRS 9 and its Manual. Failure to make provisions may result into overstating reported receivables due to unaccounted for risks of non-recoverability. In addition, there was no evidence from the Finance Committee that a review of the bad debts position was annually done. Management explained that in addition to sending out constant reminders to the listed debtors, Management would review the list further for presentation to the Finance Committee of the Board. I advised the Accounting officer to make the required provisions for bad debts in accordance with Standards and the Manual \uf0b7 I noted that JCRC signed contracts with local service providers in foreign currency to a tune of USD 32,258.7. The contracts were for supply of Bone density kits (USD 25,515); supply of Hematology reagents (USD 2,060), and; for internet services (USD 4,683). I advised the Accounting Officer to take heed of the PS/ST recommendation and ensure that all local contracts are awarded in Uganda Shillings. |\n|---:|-----:|:-------------------------------------------------------------|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 26 | Mulago National Referral Hospital. 2020/21 Opinion Qualified | \uf0b7 Transfers of UGX.3,867,161,000 received from the Ministry of Health were not recognized in the Statement of Financial Performance. The receipts were also not reported in Note 5 to the Financial Statements. It was further noted that the funds which were received on the Hospital\u2019s Infrastructure Development Account were transfers from Ministry of Health meant for intern allowances. \uf0b7 The Hospital had liabilities of UGX 2,952,608,319 from the previous year (FY 2019/20) in respect of payables (UGX 2,304,366,476) and deposits (UGX 648,241,843). However, payments totalling to UGX3,775,748,845 in respect of the liabilities were made. The Hospital therefore made payments for non-existent liabilities amounting to UGX 1,471,382,369. \uf0b7 Management made an adjustment to the opening balance of payables amounting to UGX 2,097,368,767 (statement of outstanding commitments on Page 33 of the financial statements). However, there was no explanation provided on the cause of the adjustment or the composition of this figure. \uf0b7 The Hospital misstated transfers to the Treasury during the year by UGX 1,296,483,686 in its financial statements. \uf0b7 The entity did not have a strategic plan approved by NPA during the year. \uf0b7 The Hospital did not budget to collect NTR during the year under review. However, the financial statements indicated that NTR amounting to UGX. 1,808,626,491 was collected during the year. \uf0b7 Out of the total warrants of UGX.63,573,318,357 received during the financial year, UGX.59,379,356,427 was spent by the entity resulting in |", "metadata": {"page": 321, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 20 | Joint Clinical Research Centre (JCRC). Opinion Unqualified | \uf0b7 JCRC reported trade and other receivables of UGX.4,210,400,000. Out of this UGX.95,254,972 related to the previous financial year. I noted that JCRC did not make any provision for bad debts as required by IFRS 9 and its Manual. Failure to make provisions may result into overstating reported receivables due to unaccounted for risks of non-recoverability. In addition, there was no evidence from the Finance Committee that a review of the bad debts position was annually done. Management explained that in addition to sending out constant reminders to the listed debtors, Management would review the list further for presentation to the Finance Committee of the Board. I advised the Accounting officer to make the required provisions for bad debts in accordance with Standards and the Manual \uf0b7 I noted that JCRC signed contracts with local service providers in foreign currency to a tune of USD 32,258.7. The contracts were for supply of Bone density kits (USD 25,515); supply of Hematology reagents (USD 2,060), and; for internet services (USD 4,683). I advised the Accounting Officer to take heed of the PS/ST recommendation and ensure that all local contracts are awarded in Uganda Shillings. |\n|---:|:-----------|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | an unspent balance of UGX.4,193,961,930 representing an absorption level of 93.4%. \uf0b7 The Hospital spent UGX. 474,479,100 on refurbishment of the MRI machine. It was noted that the MRI machine was delivered and installed in 2018 and has since never been put to use. \uf0b7 Works under the construction contract for 150 units of staff houses at the Hospital of UGX. 30,228,600,856 have been delayed. \uf0b7 I noted that vital medical equipment was in poor working condition, while others were fully not functional and required replacement. The equipment included: autoclaves in the central sterile service department; patient monitors in the accident and emergency surgical unit; blood coagulation machine in the clinical laboratory unit; ICU beds in the intensive care unit, and CT machine in the Radiology department. | Unnamed: 2 |\n| 1 | 27 | Allied Health Professionals Council (AHPC). 2020/21 | \uf0b7 The Council did not have a strategic plan approved by NPA during the year. \uf0b7 The entity budgeted to collect internal revenue of UGX.4.771Bn during the year under review. Out of this, only UGX.3.783Bn was realized, representing a performance of 79% of the target. \uf0b7 The Council did not implement some of its planned activities during the year. Examples include: Verification and publication of Allied Health Professionals in the Gazette; Licensing of private Allied Health units and training institutions, and; ICT support supervision in regions. \uf0b7 The Governing Council stated that a material uncertainty existed regarding the continued operation of Allied Health Professionals Council in the foreseeable future. This was based on the communication by the Permanent Secretary Ministry of Public Service (PS/MoPS) to the Permanent Secretary Ministry of Health among others in which the PS/MoPS communicated a Cabinet decision of 22nd February 2021 that required the commencement of merging, rationalization and mainstreaming of Government Agencies between financial years 2021/2022 and 2022/2023. \uf0b7 I noted that it takes an average of 3 months for the Council to process registration certificates which seemed to be too long. Delayed processing of registration certificates frustrates applicants and may make some to lose opportunities. \uf0b7 The Council did not make any publication in the Gazette during the year under review, contrary to The Allied Health Professionals\u2019 Act (cap 268). The unsuspecting public was not protected from public from quack practitioners. |", "metadata": {"page": 322, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 20 | Joint Clinical Research Centre (JCRC). Opinion Unqualified | \uf0b7 JCRC reported trade and other receivables of UGX.4,210,400,000. Out of this UGX.95,254,972 related to the previous financial year. I noted that JCRC did not make any provision for bad debts as required by IFRS 9 and its Manual. Failure to make provisions may result into overstating reported receivables due to unaccounted for risks of non-recoverability. In addition, there was no evidence from the Finance Committee that a review of the bad debts position was annually done. Management explained that in addition to sending out constant reminders to the listed debtors, Management would review the list further for presentation to the Finance Committee of the Board. I advised the Accounting officer to make the required provisions for bad debts in accordance with Standards and the Manual \uf0b7 I noted that JCRC signed contracts with local service providers in foreign currency to a tune of USD 32,258.7. The contracts were for supply of Bone density kits (USD 25,515); supply of Hematology reagents (USD 2,060), and; for internet services (USD 4,683). I advised the Accounting Officer to take heed of the PS/ST recommendation and ensure that all local contracts are awarded in Uganda Shillings. |\n|---:|-----:|:-------------------------------------------------------------|:------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 28 | Health Service Commission. 2020/21 Opinion Unqualified | \uf0b7 I noted that the entity had prepared a strategic plan. However, this had not been approved by the end of the year under review. \uf0b7 The Commission did not budget to collect NTR during the year under review. However, the financial statements indicated that NTR amounting to UGX.21,850,000 was collected during the year. \uf0b7 There was no evidence to show that the procurement method and the Evaluation Committee were approved by the Contracts Committee for six sampled procurements worth UGX48,310,800. Lack of approval contravenes the PPDA Regulations. In the circumstances, the Evaluation Committees executed the assignment without authority. |\n| 1 | 29 | Uganda AIDS Commission. 2020/21 | \uf0b7 I noted that the entity had prepared a strategic plan. However, this had |", "metadata": {"page": 322, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Opinion Unqualified | not been approved by the end of the year under review. \uf0b7 The Commission did not budget to collect NTR during the year under review. However, the financial statements indicated that NTR amounting to UGX. 37,800,000 was collected during the year. \uf0b7 UAC received off-budget financing to a tune of UGX.1,465,747,761. Although Management explained that a total of UGX.2.8Bn was budgeted for and appropriated by Parliament as off-budget funding for the Financial Year 2020/2021 as the total grant disbursement of all grants in the year, I could not trace this figure in the Commission\u2019s approved budget for the year. \uf0b7 The Commission failed to implement two planned activities during the year; Data quality control and validation strategy, and Quarterly meetings for adolescents and young people. \uf0b7 The reported domestic arrears of UGX. 76,162,182. These arrears relate to as far back as the FY 2016/2017. It was noted that the arrears are not supported. I absence of supporting documents, there seemed to be no basis for these payables standing in the Commission\u2019s financial statements. \uf0b7 The Commission had a dispute over ownership of Land and Buildings on 0.1 Hectare of Leasehold land comprised in Freehold Register Volume 56 Folio 16 Plot Number 213, Sentema Road at Namirembe with Namirembe Diocese Church of Uganda which disabled the Commission from valuation, renovating and collecting revenue from tenants since 2016. Although the Diocese later confirmed that the Commission\u2019s lease expires in 2026, it asked the Commission to justify why it wants to renew the lease because the Diocese had taken a decision not to renew leases for areas near the Cathedral which the Commission has failed to secure from the Office of the President where it falls. |\n|---:|-------------:|:------------------------------------------------------------------------|:-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 30 | Allied Health Professionals Council (AHPC). 2020/21 Opinion Unqualified | \uf0b7 The Council did not have a strategic plan approved by NPA during the year. \uf0b7 The entity budgeted to collect internal revenue of UGX.4.771Bn during the year under review. Out of this, only UGX.3.783Bn was realized, representing a performance of 79% of the target. \uf0b7 AHPC planned to implement five (5) outputs in the year under review. I assessed the implementation of three (3) outputs which had 16 activities and noted that all the 3 outputs with their 16 activities were fully quantified. with a total of sixteen (16) activities worth UGX.1.380Bn and noted that; \uf0b7 Out of the sampled 3 outputs with a total of 16 activities, I noted that one (1) output with four (4) activities and expenditure worth UGX 0.515Bn was fully implemented that is all the four (4) activities within this output were fully implemented. Two (2) outputs with twelve (12) activities worth UGX.0.865Bn were partially implemented. Out of the twelve (12) activities, the entity fully implemented one (1) activity; seven (7) activities were partially implemented while four (4) activities were not implemented. \uf0b7 The Council did not implement some of its planned activities during the year. Examples include: Verification and publication of Allied Health Professionals in the Gazette; Licensing of private Allied Health units and training institutions, and; ICT support supervision in regions. \uf0b7 The Governing Council stated that a material uncertainty existed regarding the continued operation of Allied Health Professionals Council in |", "metadata": {"page": 323, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Opinion Unqualified | not been approved by the end of the year under review. \uf0b7 The Commission did not budget to collect NTR during the year under review. However, the financial statements indicated that NTR amounting to UGX. 37,800,000 was collected during the year. \uf0b7 UAC received off-budget financing to a tune of UGX.1,465,747,761. Although Management explained that a total of UGX.2.8Bn was budgeted for and appropriated by Parliament as off-budget funding for the Financial Year 2020/2021 as the total grant disbursement of all grants in the year, I could not trace this figure in the Commission\u2019s approved budget for the year. \uf0b7 The Commission failed to implement two planned activities during the year; Data quality control and validation strategy, and Quarterly meetings for adolescents and young people. \uf0b7 The reported domestic arrears of UGX. 76,162,182. These arrears relate to as far back as the FY 2016/2017. It was noted that the arrears are not supported. I absence of supporting documents, there seemed to be no basis for these payables standing in the Commission\u2019s financial statements. \uf0b7 The Commission had a dispute over ownership of Land and Buildings on 0.1 Hectare of Leasehold land comprised in Freehold Register Volume 56 Folio 16 Plot Number 213, Sentema Road at Namirembe with Namirembe Diocese Church of Uganda which disabled the Commission from valuation, renovating and collecting revenue from tenants since 2016. Although the Diocese later confirmed that the Commission\u2019s lease expires in 2026, it asked the Commission to justify why it wants to renew the lease because the Diocese had taken a decision not to renew leases for areas near the Cathedral which the Commission has failed to secure from the Office of the President where it falls. |\n|---:|:-------------|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | the foreseeable future. This was based on the communication by the Permanent Secretary Ministry of Public Service (PS/MoPS) to the Permanent Secretary Ministry of Health among others in which the PS/MoPS communicated a Cabinet decision of 22nd February 2021 that required the commencement of merging, rationalization and mainstreaming of Government Agencies between financial years 2021/2022 and 2022/2023. There is a high possibility that the Council may not remain a going concern beyond the stated period. \uf0b7 The Council did not make any publication in the Gazette during the year under review, contrary to The Allied Health Professionals\u2019 Act (cap 268). In the absence of such a publication, the unsuspecting public may not be protected from quack practitioners. | Unnamed: 2 |\n| 1 | 31 | Uganda Global Fund To Fight Aids, Tuberculosis And Malaria Project \u2013 HIV COMPONENT. 2020. Opinion Unqualified | \uf0b7 No significant findings |\n| 2 | 32 | Uganda Global Fund to Fight Aids, Tuberculosis And Malaria Project \u2013 HIV Component. 2020 Opinion Unqualified | \uf0b7 No significant findings |\n| 3 | 33 | Uganda Global Fund to Fight Aids, Tuberculosis and Malaria Project-Tuberculosis Component. 2020. Opinion Unqualified | \uf0b7 No significant findings |\n| 4 | 34 | Ministry of Health. 2020/21 Opinion Unqualified | \uf0b7 I noted that whereas the Ministry submitted a draft 5-Year Strategic plan (FYs 2020/21-2024/25) to National Planning Authority for approval on 29th July 2021, a certificate had not been issued by the Authority by the time of audit. \uf0b7 The entity did not budget for NTR during the year under review. However, UGX 7.205Bn was collected. \uf0b7 The Ministry budgeted to receive UGX 147.112Bn. This budget was later revised to UGX 376.884Bn, out of which UGX 376.837Bn was warranted, resulting into a shortfall of UGX 47m (representing 0.012% of the approved budget). \uf0b7 Out of the total UGX 1,029.646Bn received during the year under review, UGX 852.099Bn was spent by the entity resulting in an unspent balance of UGX. 177.547Bn (representing an absorption level of 82.8%). The unspent funds included; UGX 0.61Bn of NTR which was swept back to the Consolidated Fund as required by the PFMA, while UGX 5Bn remained on the MoH Contingency Fund and the balance of UGX 171.937Bn remained on project Accounts. \uf0b7 Out of a sample of forty nine (49) outputs with a total of one hundred ninety seven (197) activities and expenditure of UGX 777.8Bn, twenty |", "metadata": {"page": 324, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | vaccines is likely to hamper the timely attainment of the vaccination targets set by government. \uf0b7 The Ministry did not comply with PPDA Regulatory Framework with respect to COVID-19 related procurements valued at UGX. 13.7bn. \uf0b7 Whereas Mulago National Referral Hospital had running contracts for cleaning, waste disposal and security services with 3 suppliers prior to the COVID-19 pandemic, the Ministry of Health directly paid these suppliers a total of UGX 1,071,968,797 in respect of Cleaning & waste disposal Services (UGX 794,999,997) and Security services (UGX 276,968,800) rendered at Mulago COVID-19 Treatment Centre. Under the circumstances, there is a risk of double payment. \uf0b7 I noted that Pay As You Earn (PAYE) amounting to UGX 626,630,608 was not deducted from hardship allowances paid to various officials. Failure to deduct taxes may attract interest and penalties from the Tax Body. | Unnamed: 2 |\n|---:|:-------------|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | | LEGISLATURE | |\n| 1 | 1.0 | Parliamentary Pension Scheme. 2020/21 Opinion Unqualified | \uf0b7 A total of UGX.5,557,452,584 was utilized during the year against the approved budgeted t of UGX.6,601,744,660. The Under absorption of resources implies that the scheme did not carry out all the year\u2019s intended activities, hence not meeting its intended objectives. Some of the activities that were not or partially implemented were; \uf0b7 Recruitment of staff \uf0b7 IT Annual Maintenance Plans \uf0b7 Strategic Partnership Meetings \uf0b7 As observed last financial year 2019/2020, some members on the Board of Trustees are still signatories to the Bank Accounts of the Scheme. The Board\u2019s involvement in the day-to-day operations of the scheme erodes its oversight role. For instance, the Board cannot hold management to account for failure, to implement. agreed activities when the Board is actively participating in the daily operations of the scheme. |\n| 2 | 2.0 | Parliamentary Commission. 2020/21 Opinion Unqualified | \uf0b7 I noted that the Authority\u2019s strategic plan had not been certified by NPA by the time of audit, contrary to the Planning Regulations. \uf0b7 The Authority received 99% of its budget from Government, and NTR performed above expectation by 21%. The Authority had unspent balances of UGX.7.64Bn, which was returned to the consolidated fund. \uf0b7 I noted that the Authority had unremitted off-budget financing of UGX.18.97Bn, which Parliament never appropriated. \uf0b7 I noted that out of the thirty-nine (39) outputs sampled for review, two (2) outputs (5%) were fully quantified, two (2) outputs (5%) were partially quantified, and thirty-five (35) outputs (90%) were not quantified at all which made it impossible to measure performance. The two (2) outputs that were fully quantified were all fully implemented. \uf0b7 All performance reports were submitted after the deadline. \uf0b7 I noted that the Authority had not developed regulations to guide the collection of outdoor advertising fees, which hindered the collection of NTR. I further noted that the Authority did not undertake regular updates of the valuation rolls. \uf0b7 The Authority has an unserviceable long-term liability of UGX.42,570,448,999 in addition to accumulated domestic arrears of |", "metadata": {"page": 326, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | S/N | Fort Portal Branch | Summary of Key Findings |\n|---:|------:|:-----------------------------------|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 1 | Bundibugyo DLG Opinion Unqualified | \uf0b7 I noted a number of anomalies during review of the district payroll such as; Failure to submit wage estimates to MoPs, over payment of salaries worth UGX.29, 467,392, Underpayment of salaries of UGX.2, 160,338; payment of salaries worth UGX.45, 977,978 to sixteen (16) staffs who were no longer in service, delayed access to payroll by sixty (60) new employees and failure to prepare monthly wage, pension and gratuity performance analysis on payroll to MoPS. \uf0b7 The district did not have an approved strategic plan that is aligned to the NDP-III at the time of audit. \uf0b7 I noted a number of issues in the implementation of the approved budget such as; under absorption of funds worth UGX. 2,978,972,164; under performance of the donor & government releases worth UGX.1,536,961,363; partial submission of quarterly monitoring reports to OPM & MoFPED \uf0b7 The district received off-budget financing to a tune of UGX. UGX.7, 989,897 directly from UNFPA for undertaking activities which was never declared to the PSST and as such no supplementary appropriation was issued as guided by the PSST. \uf0b7 The district lost a court case (Busobozi Juma Vs Bundibugyo DLG); but failed to honour this court ruling resulting into attachment of three (3) District Motor vehicles. \uf0b7 I further noted the district failed to absorb UGX.950, 886,390 of the UgIFT funds received and the balance was swept back to the Consolidated Fund Account at the end of the financial year. \uf0b7 I further noted that the district had unutilized funds of UGX.336, 284,000 meant for the construction of Kabango Seed School which was swept back to the Consolidated Fund. |", "metadata": {"page": 328, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | S/N | Fort Portal Branch | Summary of Key Findings |\n|---:|------:|:---------------------------------|:-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 2 | Kabarole DLG Opinion Unqualified | \uf0b7 I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, Over payment of pension worth UGX.288, 866,531; Underpayment of pension worth UGX.271, 215,401; Wrong computation of gratuity worth net overpayment of UGX. 54,578,592; payment of salaries worth UGX. 3,051,636 to two (2) staffs that was no longer in service and irregular deduction of loan instalments worth UGX.9, 061,174. \uf0b7 Additionally, I observed that there was delayed access to payroll by twenty three (23) new employees and nine (9) pensioners; failure to utilize wage funds of UGX.2.38Bn; un-deducted PAYE from political leaders\u2019 gratuity resulting in unpaid tax of UGX.10,746,540 and payment of twenty two (22) staffs worth UGX.35,678,772 off the IPPS |", "metadata": {"page": 328, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | S/N | Fort Portal Branch | Summary of Key Findings |\n|---:|:-----------|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | \uf0b7 I noted a number of issues in the implementation of the approved budget such as; shoddy works in construction of classrooms; incomplete works; under absorption of funds worth UGX.5,185,210,873 that was swept back to consolidated fund account; under performance of the donor & releases from other government units worth UGX.768,125,595; delayed submission of quarterly monitoring reports to OPM & MoFPED \uf0b7 The district mischarged expenditure worth UGX.275, 847,736 on wrong budget lines. | Unnamed: 2 |\n| 1 | 3.0 | Kamwenge DLG Opinion Unqualified | \uf0b7 I noted a number of anomalies during review of the district pension & salary payrolls such as; over payment of pension worth UGX.18,610,306; Underpayment of pension worth UGX. 20,537,350; Wrong computation of gratuity worth net overpayment of UGX. 126, 160257; payment of salaries worth UGX. 3,042,398 to six (6) staffs that was no longer in service; irregular deduction of loan instalments worth UGX.9,912,197 and failure to remit payroll deductions worth UGX.1,206,334,606 \uf0b7 Additionally, I observed that there was delayed access to payroll by eleven (11) new employees; failure to utilize wage funds of UGX.2.32Bn; un-deducted PAYE from political leaders\u2019 gratuity resulting in unpaid tax of UGX.9,904,129; payment of forty three (43) staffs worth UGX.73,835,431 off the IPPS and failure to prepare monthly wage, pension and gratuity performance analysis report on payroll to MoPS \uf0b7 The district mischarged expenditure worth UGX.446,776,818 on wrong budget lines other than those prescribed for salary, pension and gratuity \uf0b7 The district did not have an approved strategic plan that is aligned to the NDP-III at the time of audit. \uf0b7 I noted a number of issues in the implementation of the approved budget such as; under absorption of funds worth UGX.9, 615,375,142 that was eventually swept back to consolidated fund account at end of financial year; combined under performance worth UGX. 18,033,399,211 from planned donor funds, NTR, releases from Government & other Government units ; delayed submission of quarterly monitoring reports to OPM & MoFPED \uf0b7 I observed that a total sum of UGX.792, 482,750 due from the groups that were funded in 2014/15, 2015/16, 2016/17, 2017/18 and 2018/19 were still outstanding and therefore reported as revenue arrears at the year end. \uf0b7 The district lacks evidence of ownership in form of titles for its land at Kabuga-Rubaba measuring 1,321 hectares. \uf0b7 During a physical inspection of the Constructions, I noted a |", "metadata": {"page": 329, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | S/N | Fort Portal Branch | Summary of Key Findings |\n|---:|:-----------|:-------------------------------------------------------------------------------------------------------|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | number of shoddy works in Bwizi Seed School and upgrade Kabingo Health Centre II to Health Centre III. | Unnamed: 2 |\n| 1 | 4.0 | Kasese DLG Opinion Unqualified | \uf0b7 I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, over payment of Salary and gratuity worth UGX. UGX.3, 574,714; Underpayment of pension worth UGX. 705,886; un-deducted PAYE from political leaders\u2019 gratuity resulting in unpaid tax of UGX.21, 251,680; payment of salaries worth UGX. 990,729 to two (2) staffs that was no longer in service and irregular deduction of loan instalments worth UGX.11, 312,968. \uf0b7 Additionally, I observed that there was delayed access to payroll by four (04) new employees and five (5) pensioners; failure to utilize wage funds of UGX.0.01Bn; over remittance UGX.14,857,510 was made to UNATU and UBA, and an under remittance of UGX.162,609,619 to URA and LST respectively; and payment of twenty nine (29) staffs & two (2) pensioners a total of UGX.35,824,742 off the IPPS \uf0b7 The district mischarged expenditure worth UGX.99,558,770 on wrong budget lines other than those prescribed for gratuity \uf0b7 The district\u2019s strategic plan was not certified by National Planning Authority. \uf0b7 I noted that the verification forms and copies of the verification cards for 150 new employees and 8 pensioners/beneficiaries were not on the respective personal files. \uf0b7 The district has uncollected Non Tax Revenue arrears to the tune of UGX.702, 009,983 that has remained outstanding for more than a year. \uf0b7 I noted a number of issues in the implementation of the approved budget such as; under absorption of funds worth UGX. 6,349,941,923 that were eventually swept back to consolidated fund account at end of financial year; combined under performance worth UGX. 11,758,099,498 from planned donor funds, NTR, releases from Government & other Government units ; delayed submission of quarterly monitoring reports to OPM & MoFPED \uf0b7 Ninety one (91) pieces of land owned by the District lacked evidence of ownership in form of titles. \uf0b7 Out of the total funds of UGX.822, 539,506 UgIFT funds received, the district only utilized UGX.314,732,415 (38.26%) resulting into unspent balance of UGX.507,807,091. |\n| 2 | 5.0 | Kyegegwa DLG Opinion Unqualified | \uf0b7 I noted a number of issues during the review of the district pension and payroll such as; |", "metadata": {"page": 330, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | at Kitayunjwa Seed School , ICT and science equipment for Kitayunjwa Seed School, Upgrading of Kagumba HC II to HC III and Procurement of medical equipment for Kagumba HC I and Bubago HCII \uf0b7 I noted that the management had not prepared and approved a strategic plan that is aligned to the NDP-III at the time of audit \uf0b7 I noted ddelayed works for Construction of Karwenyi Health Center III under UgIFT. The contract was awarded to M/s.Nicole Associates Ltd at a contact sum of UGX.529, 682,320 and should have been completed on 07.09.19 but was still having pending works \uf0b7 I noted incomplete construction works on Rwentuuha seed school for works that should have ended by 07.04.2020 \uf0b7 I noted funds shortfall of UGX.91, 745,203 for funds meant for road maintenance from URF that affected the implementation of planned works | Unnamed: 2 |\n|---:|-------------:|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 6 | Kyenjojo DLG Opinion Unqualified | \uf0b7 I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, over payment of Gratuity worth UGX. UGX.4, 503,576; Underpayment of pension worth UGX. 10,233,398; payment of salaries worth UGX. 13, 121,357 to nine (9) staffs that was no longer in service and unauthorized deduction of loan instalments worth UGX. 21,809,702. \uf0b7 Additionally, I observed that there was delayed access to payroll by ten (10) new employees and two (2) pensioners; failure to utilize wage funds of UGX.0.96Bn; unremitted payroll deductions of UGX. 6,025,083 and failure to prepare monthly wage, pension and gratuity performance analysis report on payroll to MoPS \uf0b7 I noted a number of issues in the implementation of the approved budget such as; under absorption of funds worth UGX.3, 847,060,490 that was eventually swept back to consolidated fund account at end of financial year; combined under performance worth UGX. 22,372,196,592 from planned donor funds, NTR, releases from Government & other Government units; \uf0b7 Out of UGX.1, 300,000,000 received for Upgrading of Kigoyera HC II to HC III only UGX.480, 191,731 was utilized and the balance was swept back to the Treasury at the end of the financial year. \uf0b7 I noted shoddy works for M/s Build line Contractors Uganda LTD at a contract sum of UGX.2, 050,045,030. Although the end date was extended to 30th August 2020 and the contract sum revised to UGX.2, 150,170,030 to cater for variations |", "metadata": {"page": 332, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | at Kitayunjwa Seed School , ICT and science equipment for Kitayunjwa Seed School, Upgrading of Kagumba HC II to HC III and Procurement of medical equipment for Kagumba HC I and Bubago HCII \uf0b7 I noted that the management had not prepared and approved a strategic plan that is aligned to the NDP-III at the time of audit \uf0b7 I noted ddelayed works for Construction of Karwenyi Health Center III under UgIFT. The contract was awarded to M/s.Nicole Associates Ltd at a contact sum of UGX.529, 682,320 and should have been completed on 07.09.19 but was still having pending works \uf0b7 I noted incomplete construction works on Rwentuuha seed school for works that should have ended by 07.04.2020 \uf0b7 I noted funds shortfall of UGX.91, 745,203 for funds meant for road maintenance from URF that affected the implementation of planned works | Unnamed: 2 |\n|---:|:-------------|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | \uf0b7 The districts strategic plan was not certified by National Planning Authority therefore I could not confirm that it is aligned to NDP- III. | Unnamed: 2 |\n| 1 | 7.0 | Ntoroko DLG Opinion Unqualified | \uf0b7 I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs; Underpayment of in payroll worth UGX. 5,813,601; un-deducted PAYE from political leaders\u2019 gratuity resulting in unpaid tax of UGX.8, 062,325; Loan deductions relating to all the 279 employees did not have letters of undertaking and evidence of consent on file; One hundred five (105) staffs were paid using wrong salary scales, leading to over payments of UGX.9,200,722. \uf0b7 Additionally, I observed that there was delayed access to payroll by thirty seven (37) new employees and one (01) pensioner; failure to utilize wage funds of UGX.0.026Bn; unremitted PAYE deductions of UGX.58,118,104, to URA; failure to prepare monthly wage, pension and gratuity performance analysis report on payroll to MoPS \uf0b7 I noted that the verification forms and copies of the verification cards for 50 employees were not on the respective personal files \uf0b7 The district\u2019s strategic plan was not certified by National Planning Authority therefore I could not confirm that it is aligned to NDP- III. \uf0b7 I noted a number of issues in the implementation of the approved budget such as; under absorption of funds worth UGX.824, 523,482 that was eventually swept back to consolidated fund account at end of financial year and a combined revenue under performance worth UGX. 1,971,531,402 from planned donor funds, NTR, releases from other Government units \uf0b7 I noted that the Upgrade of Butungama HCIII under UgiFT works had stalled and behind schedule by 14 months. |", "metadata": {"page": 333, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | at Kitayunjwa Seed School , ICT and science equipment for Kitayunjwa Seed School, Upgrading of Kagumba HC II to HC III and Procurement of medical equipment for Kagumba HC I and Bubago HCII \uf0b7 I noted that the management had not prepared and approved a strategic plan that is aligned to the NDP-III at the time of audit \uf0b7 I noted ddelayed works for Construction of Karwenyi Health Center III under UgIFT. The contract was awarded to M/s.Nicole Associates Ltd at a contact sum of UGX.529, 682,320 and should have been completed on 07.09.19 but was still having pending works \uf0b7 I noted incomplete construction works on Rwentuuha seed school for works that should have ended by 07.04.2020 \uf0b7 I noted funds shortfall of UGX.91, 745,203 for funds meant for road maintenance from URF that affected the implementation of planned works | Unnamed: 2 |\n|---:|-------------:|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 8 | Fort portal MC Unqualified Opinion | \uf0b7 I noted a number of anomalies during review of the Municipal pension & salary payrolls such as; Failure to submit wage estimates to MoPs; Overpayment of UGX.1,547,570 Underpayment of in payroll worth UGX.674,289; un-deducted PAYE from political leaders\u2019 gratuity resulting in unpaid tax of UGX.3,015,540; failure to utilize wage funds of UGX.0.655Bn; Payment of 4 employees who were no longer in service; Under remittance of salary deductions worth UGX. UGX.68,499,107; Delayed remittance of deductions to UCLA/UBA of 5 to 90 days \uf0b7 I noted a number of issues in the implementation of the approved budget such as; under absorption of funds worth UGX.9, 264,101,819 that was eventually swept back to consolidated fund account at end of financial year; combined under performance worth UGX. 22,372,196,592 from planned |", "metadata": {"page": 333, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | at Kitayunjwa Seed School , ICT and science equipment for Kitayunjwa Seed School, Upgrading of Kagumba HC II to HC III and Procurement of medical equipment for Kagumba HC I and Bubago HCII \uf0b7 I noted that the management had not prepared and approved a strategic plan that is aligned to the NDP-III at the time of audit \uf0b7 I noted ddelayed works for Construction of Karwenyi Health Center III under UgIFT. The contract was awarded to M/s.Nicole Associates Ltd at a contact sum of UGX.529, 682,320 and should have been completed on 07.09.19 but was still having pending works \uf0b7 I noted incomplete construction works on Rwentuuha seed school for works that should have ended by 07.04.2020 \uf0b7 I noted funds shortfall of UGX.91, 745,203 for funds meant for road maintenance from URF that affected the implementation of planned works | Unnamed: 2 |\n|---:|:-------------|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | donor funds, NTR, releases from Government & other Government units \uf0b7 The Municipality mischarged expenditure worth UGX.5,244,093 on wrong budget lines other than those prescribed for salary, pension or gratuity \uf0b7 The Municipal\u2019s strategic plan was not approved by the National Planning Authority at the time of audit and therefore I could not confirm that it is aligned to NDP-III. \uf0b7 The Municipality lacked certificates of title for 13 pieces of land. \uf0b7 I noted that the MC did not have sufficient waste receptacles and solid waste collection vehicles which have led to piling of garbage on the Municipality streets resulting into a public health nuisance. | Unnamed: 2 |\n| 1 | | Branch Jinja | Summary of Key Findings |\n| 2 | 1.0 | Namutumba DLG Opinion Unqualified | \uf0b7 I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, over payment of Gratuity worth UGX. 6,699,263; Underpayment of salaries worth UGX 3,970,280; payment of salaries worth UGX. 34,532,950 to eighteen (18) staffs who were no longer in service; under remittance of payroll deduction of UGX. 42,851,131; unauthorized excess loan deductions worth UGX. 336,561,515 for one hundred seventy four (174) employees \uf0b7 Additionally, I observed that there was delayed access to payroll by ninety one (91) newly recruited/ transferred employees and nineteen (19) pensioners; eight (8) pensioners failed to access the pension payroll; failure to utilize wage funds of UGX.0.70Bn; un-deducted PAYE from political leaders\u2019 gratuity resulting in unpaid tax of UGX.9, 275,220; failure to prepare monthly wage, pension and gratuity performance analysis report on payroll to MoPS and overpayment of pensioners due to wrong computation worth UGX. 66,739,381 and payment of 05 employees worth UGX. 3,371,913 without authorization of pay change report. \uf0b7 I noted a number of issues in the implementation of the approved budget such as; under absorption of funds worth UGX. 1,074,919,818 that were eventually swept back to consolidated fund account at end of financial year; under performance worth UGX. 183,402,134 from planned donor funds, NTR and releases from Government.; partial implementation of planned activities \uf0b7 The district mischarged expenditure worth UGX.41,963,816 on wrong budget lines other than those prescribed for salary, pension or gratuity \uf0b7 From a comparison of the payroll register and IFMS payment file, I noted that 09 staff and 10 pensioners were paid a total of UGX 461,890,255 off the IPPS. |", "metadata": {"page": 334, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | at Kitayunjwa Seed School , ICT and science equipment for Kitayunjwa Seed School, Upgrading of Kagumba HC II to HC III and Procurement of medical equipment for Kagumba HC I and Bubago HCII \uf0b7 I noted that the management had not prepared and approved a strategic plan that is aligned to the NDP-III at the time of audit \uf0b7 I noted ddelayed works for Construction of Karwenyi Health Center III under UgIFT. The contract was awarded to M/s.Nicole Associates Ltd at a contact sum of UGX.529, 682,320 and should have been completed on 07.09.19 but was still having pending works \uf0b7 I noted incomplete construction works on Rwentuuha seed school for works that should have ended by 07.04.2020 \uf0b7 I noted funds shortfall of UGX.91, 745,203 for funds meant for road maintenance from URF that affected the implementation of planned works | Unnamed: 2 |\n|---:|:-------------|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | \uf0b7 I noted that the District had uncovered funds (receivables) of UGX. 1,400,354,319 that affected the budget implementation of planned activities \uf0b7 The District\u2019s strategic plan is in place but no evidence of approval by the National Planning Authority was availed at the time of audit. \uf0b7 I noted that the construction works of a seed secondary school at Nabweyo did not take off in the financial year under review and the funds amounting to UGX. 344,284,000 were swept back to treasury. \uf0b7 The district lacked land titles for 17 pieces measuring approximately 299.3 acres which exposed the land to loss and encroachment. \uf0b7 The District received a sum of UGX. 223,381,891 for (06) secondary schools and (109) primary schools meant for the procurement of learning materials. However, the bank statements had not been availed for review at the time of audit. | Unnamed: 2 |\n| 1 | 2.0 | Buyende DLG Opinion: Unqualified | \uf0b7 I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, unpaid salaries of UGX 5,941,021 to nine (9) employees; Underpayment of salaries to staff worth UGX 205,153,235; under payment of UGX 6,386,999 to pensioners; over payment of UGX 9,607,227; payment of salaries worth UGX. 11,313,061 to six (06) staffs who were no longer in service; under remittance of payroll deduction of UGX.205,612,209; unauthorized excess loan deductions worth UGX. 17,355,601 for 168 employees \uf0b7 Additionally, I observed that there was delayed access to payroll by twenty nine (29) newly recruited/ transferred employees and seven (07) pensioners; un-deducted PAYE from political leaders\u2019 gratuity resulting in unpaid tax of UGX. 12,019,045; failure to prepare monthly wage, pension and gratuity performance analysis report on payroll to MoPS and overpayment of pensioners due to wrong computation worth UGX. 20,650,780 and payment of funds worth UGX. 8,205,747 off the IPPS system \uf0b7 I noted a number of issues in the implementation of the approved budget such as; under absorption of funds worth UGX. 2,000,000,000,000 that were eventually swept back to consolidated fund account at end of financial year; under performance worth UGX. 2,097,035,126 from planned donor funds, NTR and releases from Government.; partial implementation of planned activities \uf0b7 The district mischarged expenditure worth UGX. 71,513,039 on wrong budget lines other than those prescribed for salary, pension or gratuity |", "metadata": {"page": 335, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | at Kitayunjwa Seed School , ICT and science equipment for Kitayunjwa Seed School, Upgrading of Kagumba HC II to HC III and Procurement of medical equipment for Kagumba HC I and Bubago HCII \uf0b7 I noted that the management had not prepared and approved a strategic plan that is aligned to the NDP-III at the time of audit \uf0b7 I noted ddelayed works for Construction of Karwenyi Health Center III under UgIFT. The contract was awarded to M/s.Nicole Associates Ltd at a contact sum of UGX.529, 682,320 and should have been completed on 07.09.19 but was still having pending works \uf0b7 I noted incomplete construction works on Rwentuuha seed school for works that should have ended by 07.04.2020 \uf0b7 I noted funds shortfall of UGX.91, 745,203 for funds meant for road maintenance from URF that affected the implementation of planned works | Unnamed: 2 |\n|---:|:-------------|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | \uf0b7 I noted that the entity had prepared a strategic plan but the National Planning Authority had not yet approved it at the time of audit. \uf0b7 Failure to quantify outputs, partial and non-implementation of planned activities, late submission of quarterly reports \uf0b7 I noted that funds to the tune of UGX. 571,677,701 were irregularly diverted from the activities on which they were budgeted and spent on other activities without seeking and obtaining the necessary approvals. \uf0b7 Of the 9 road equipments at the district, 03 were grounded and in need of major repairs and I also observed lack of vital road equipment such as an excavator, a backhoe, supervision double cabin pickup and 02 supervision motor cycles. \uf0b7 Delayed construction works on Buyende Seed School and expired performance security for the contract from the contractor was also noted \uf0b7 I note that there undelivered ICT Equipments worth UGX. 148,842,899 to Buyende Seed Secondary School; unutilized funds worth UGX. 178,400,391 meant for procurement of learning materials for (05) secondary schools and (91) primary schools. \uf0b7 I noted that accountability amounting to UGX. 61,788,892 were not presented for verification by the time of audit. \uf0b7 The district lacked land titles for 48 pieces measuring approximately 1,942 hectares which exposed the land to loss and encroachment. | Unnamed: 2 |\n| 1 | 3.0 | Jinja DLG Opinion: Unqualified | \uf0b7 I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, unpaid salaries and pension arrears of UGX 484,546,138; Underpayment of salaries to staff worth UGX. 40,243,749; under payment of UGX 6,386,999 to pensioners; over payment of UGX 9,607,227; payment of salaries worth UGX. 2,763,055 to six (06) staffs who were no longer in service \uf0b7 Additionally, I observed that there was delayed access to payroll by Fifteen (15) newly recruited/ transferred employees and three (03) pensioners; un-deducted PAYE from political leaders\u2019 gratuity resulting in unpaid tax of UGX. 10,866,949; failure to prepare monthly wage, pension and gratuity performance analysis report on payroll to MoPS and payment to 06 staff and 09 pensioners of funds worth UGX. 62,763,120 off the IPPS system \uf0b7 I noted a number of issues in the implementation of the approved budget such as; Failure to Quantify outputs; partial & |", "metadata": {"page": 336, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | at Kitayunjwa Seed School , ICT and science equipment for Kitayunjwa Seed School, Upgrading of Kagumba HC II to HC III and Procurement of medical equipment for Kagumba HC I and Bubago HCII \uf0b7 I noted that the management had not prepared and approved a strategic plan that is aligned to the NDP-III at the time of audit \uf0b7 I noted ddelayed works for Construction of Karwenyi Health Center III under UgIFT. The contract was awarded to M/s.Nicole Associates Ltd at a contact sum of UGX.529, 682,320 and should have been completed on 07.09.19 but was still having pending works \uf0b7 I noted incomplete construction works on Rwentuuha seed school for works that should have ended by 07.04.2020 \uf0b7 I noted funds shortfall of UGX.91, 745,203 for funds meant for road maintenance from URF that affected the implementation of planned works | Unnamed: 2 |\n|---:|:-------------|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | non-implementation of planned activities and delayed submission of performance reports; under absorption of funds worth UGX. 1,890,511,130 that were eventually swept back to consolidated fund account at end of financial year; under performance of NTR worth UGX. 341,038,789 \uf0b7 The district has outstanding unrecovered YLP and UWEP advances worth UGX. 1,164,605,343 | Unnamed: 2 |\n| 1 | 4.0 | Jinja MC Opinion: Unqualified | \uf0b7 I noted a number of anomalies during review of the municipal pension & salary payrolls such as; Failure to submit wage estimates to MoPs, failure to utilize wage funds of UGX.0.5Bn; unpaid salaries and pension arrears of UGX 484,546,138; Underpayment of salaries to staff worth UGX 2,179,634; under payment of UGX.54,373,901 to pensioners; over payment of gratuity worth UGX 34,302,808 to one pensioner arising from wrong computation; Underpayment of pensions worth UGX 49,155,207; nonpayment of a pensioner worth UGX 10,907,334 and payment of salaries worth UGX. 1,158,981 to two (02) staffs who were no longer in service \uf0b7 Additionally, I observed that there was delayed access to payroll by eight (08) newly recruited/ transferred employees and thirty five (35) pensioners; failure to prepare monthly wage, pension and gratuity performance analysis report on payroll to MoPS; Net under remittance of payroll deductions worth UGX. 42,851,131; payment of a staff and a pensioner worth UGX 13,515,274 off the IPPS and payment to 03 employees worth UGX. 6,202,537 without signed pay change reports. \uf0b7 I noted a number of issues in the implementation of the approved budget such as; Failure to Quantify outputs; delayed submission of performance reports; under absorption of funds worth UGX 2,361,255,255 that were eventually swept back to consolidated fund account at end of financial year; under performance of NTR & transfers from other Government Units worth UGX. 6,353,273,753 \uf0b7 I noted that the entity had prepared a strategic plan but the National Planning Authority had not yet approved it at the time of audit \uf0b7 The Municipal Council had outstanding payables of UGX 894,801,904 by the end of the year \uf0b7 The Municipality mischarged UGX. 132,864,963 on wrong account codes other than those prescribed for salary, pension or gratuity. \uf0b7 I noted underfunding of UGX. 41,469,000 from URF that affected the routine manual, mechanized and periodic road maintenance under force account mechanism. |", "metadata": {"page": 337, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | at Kitayunjwa Seed School , ICT and science equipment for Kitayunjwa Seed School, Upgrading of Kagumba HC II to HC III and Procurement of medical equipment for Kagumba HC I and Bubago HCII \uf0b7 I noted that the management had not prepared and approved a strategic plan that is aligned to the NDP-III at the time of audit \uf0b7 I noted ddelayed works for Construction of Karwenyi Health Center III under UgIFT. The contract was awarded to M/s.Nicole Associates Ltd at a contact sum of UGX.529, 682,320 and should have been completed on 07.09.19 but was still having pending works \uf0b7 I noted incomplete construction works on Rwentuuha seed school for works that should have ended by 07.04.2020 \uf0b7 I noted funds shortfall of UGX.91, 745,203 for funds meant for road maintenance from URF that affected the implementation of planned works | Unnamed: 2 |\n|---:|:-------------|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | \uf0b7 I noted that the Municipal Council had 12-road equipment of which two (02) were grounded and in need of major repairs. Additionally, I also observed that the Municipal lacked vital road equipment like a water bowser, a roller, chips spreader and a jet/pothole patcher. \uf0b7 Under USMID, the Municipal Council had unspent balance of UGX 1,701,586,908, meant for road construction works and incomplete road works by the year end \uf0b7 Under UgIFT, I noted that the construction works on Kimaka Health Centre III at a cost of UGX. 493,924,741 had stalled for over a year and the contractor had abandoned the site. \uf0b7 The Municipal Council lacked land titles for 16 pieces measuring approximately over 34.265 hectares which exposed the land to possible loss and encroachment. \uf0b7 I noted that Council was involved in 13 ongoing court cases which could lead to possible loss of funds. | Unnamed: 2 |\n| 1 | 5.0 | Kaliro DLG Opinion: Unqualified | \uf0b7 I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, failure to utilize wage funds of UGX.0.4Bn; Underpayment of salaries to staff worth UGX. 24,360,137; under payment of UGX. 44,242,332 to pensioners and payment of salaries worth UGX. 2,246,579 to 5 staffs who were no longer in service \uf0b7 Additionally, I observed that there was delayed access to payroll by fifty-one (51) newly recruited/transferred employees and 03 pensioners; un-deducted PAYE from political leaders\u2019 gratuity resulting in unpaid tax of UGX. 8,194,860. \uf0b7 I noted a number of issues in the implementation of the approved budget such as; Failure to Quantify outputs; delayed submission of performance reports; under absorption of funds worth UGX. 1,575,930,542 that were eventually swept back to consolidated fund account at end of financial year; under performance of NTR & transfers from other Government Units worth UGX. 288,478,184. \uf0b7 I noted that the district had outstanding receivables of UGX. 1,240,015,837 at year end that had not been collected \uf0b7 There was delayed physical progress of the works at Buyinda health centre, Kasokwe Health Centre and Bukamba Seed Secondary School. This was attributed to effects of Covid-19 pandemic. \uf0b7 I noted that Kaliro DLG did not have land titles for 38 pieces of land measuring approximately 283.25 acres. |\n| 2 | 6.0 | Kamuli MC | \uf0b7 I noted a number of anomalies during review of the Municipal |", "metadata": {"page": 338, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Opinion: Unqualified | pension & salary payrolls such as; Failure to submit wage estimates to MoPs, failure to utilize wage funds of UGX.0.4Bn; Underpayment of salaries to staff worth UGX 17,301,287; overpayment to 239 staff worth UGX 12,549,285 under payment of gratuity worth UGX. 8,102,108 to pensioners; payment of salaries worth UGX. 5,528,605 to 2 staffs who were no longer in service; over and under remittance of salary deductions amounting to UGX 1,392,544 and UGX 30,126,523 \uf0b7 Additionally, I observed that there was delayed access to payroll by 25 newly recruited/ transferred employees and 05 pensioners; un-deducted PAYE from political leaders\u2019 gratuity resulting in unpaid tax of UGX. 2,026,660; Unauthorized payroll deductions worth UGX 156,349,689 relating to 84 without letters of undertaking; over deductions payments worth UGX. 2,876,352 and paid 03 staff and 07 politicians were worth UGX 14,156,592 off the IPPS \uf0b7 I noted a number of issues in the implementation of the approved budget such as; Failure to Quantify outputs; delayed submission of performance reports; inaccurate reporting of performance; under absorption of funds worth UGX 9,850,625,641 that were eventually swept back to consolidated fund account at end of financial year; under performance of NTR & transfers from other Government Units worth UGX. 609,177,435 \uf0b7 I noted that the Municipal Council had outstanding receivables of UGX 592,620,187 that had not been recovered by year end. \uf0b7 I noted that the entity had prepared a strategic plan but the National Planning Authority had not yet approved it at the time of audit. \uf0b7 Failure to quantify outputs, partial or non-implementation of activities not quantified late submission of quarterly reports and. \uf0b7 The Municipal Council had unspent funds under the USMID grant worth UGX. 9,421,230,865, which was subsequently swept back to the Consolidated Fund. Additionally, that the road construction works did not take off in the financial year under review. \uf0b7 I noted that the construction works of two classroom blocks and water borne toilet at Busoga High School at UGX. 309,872,760 were incomplete. \uf0b7 The Municipal Council lacked land titles for 11 pieces which exposed the land to loss and encroachment. |\n|---:|-------------:|:--------------------------------|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 7 | Mayuge DLG Opinion: Unqualified | \uf0b7 I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, failure to utilize wage funds of UGX.1.2Bn; I also noted that there was an under payment of salaries and |", "metadata": {"page": 339, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Opinion: Unqualified | pension & salary payrolls such as; Failure to submit wage estimates to MoPs, failure to utilize wage funds of UGX.0.4Bn; Underpayment of salaries to staff worth UGX 17,301,287; overpayment to 239 staff worth UGX 12,549,285 under payment of gratuity worth UGX. 8,102,108 to pensioners; payment of salaries worth UGX. 5,528,605 to 2 staffs who were no longer in service; over and under remittance of salary deductions amounting to UGX 1,392,544 and UGX 30,126,523 \uf0b7 Additionally, I observed that there was delayed access to payroll by 25 newly recruited/ transferred employees and 05 pensioners; un-deducted PAYE from political leaders\u2019 gratuity resulting in unpaid tax of UGX. 2,026,660; Unauthorized payroll deductions worth UGX 156,349,689 relating to 84 without letters of undertaking; over deductions payments worth UGX. 2,876,352 and paid 03 staff and 07 politicians were worth UGX 14,156,592 off the IPPS \uf0b7 I noted a number of issues in the implementation of the approved budget such as; Failure to Quantify outputs; delayed submission of performance reports; inaccurate reporting of performance; under absorption of funds worth UGX 9,850,625,641 that were eventually swept back to consolidated fund account at end of financial year; under performance of NTR & transfers from other Government Units worth UGX. 609,177,435 \uf0b7 I noted that the Municipal Council had outstanding receivables of UGX 592,620,187 that had not been recovered by year end. \uf0b7 I noted that the entity had prepared a strategic plan but the National Planning Authority had not yet approved it at the time of audit. \uf0b7 Failure to quantify outputs, partial or non-implementation of activities not quantified late submission of quarterly reports and. \uf0b7 The Municipal Council had unspent funds under the USMID grant worth UGX. 9,421,230,865, which was subsequently swept back to the Consolidated Fund. Additionally, that the road construction works did not take off in the financial year under review. \uf0b7 I noted that the construction works of two classroom blocks and water borne toilet at Busoga High School at UGX. 309,872,760 were incomplete. \uf0b7 The Municipal Council lacked land titles for 11 pieces which exposed the land to loss and encroachment. |\n|---:|:-------------|:-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | pensions worth UGX. 1,193,840,180; Unpaid salaries worth UGX. 14,134,729; over payments of UGX. 17,722,575 to pensioners; 71 staff were paid using wrong salary scales, leading to monthly over payments of UGX. 1,177,702 and under payments of UGX. 1,257,209 respectively; nine (09) employees and fifteen (15) pensioners failed to access the payroll during the year; under remittance of salary deductions worth UGX. 45,320,114 \uf0b7 Additionally, I observed that there was delayed access to payroll by one hundred nine (109) newly recruited/ transferred employees and sixteen (16) pensioners; un-deducted PAYE from political leaders\u2019 gratuity resulting in unpaid tax of UGX. 13,865,233; Unauthorized loan deductions worth UGX. 52,171,779 relating to 59 employees due to absence of Letters of undertaking; over deductions payments worth UGX. 2,876,352 and Paid 07 employees and 09 pensioners worth UGX. 89,285,252 off the IPPS \uf0b7 I noted a number of issues in the implementation of the approved budget such as; Failure to Quantify outputs; delayed submission of performance reports; inaccurate reporting of performance; under absorption of funds worth UGX 2,017,223,134 that were eventually swept back to consolidated fund account at end of financial year; under performance of NTR & transfers from other Government Units worth UGX. 1,017,773,209 and delayed completion for the construction of Bukatube health and Nkombe Health Centre III \uf0b7 I noted that the district had outstanding receivables of UGX. 1,559,419,200 by year end \uf0b7 The Mayuge District had outstanding pension liabilities of UGX. 1,251,580,052 by the end of the year. \uf0b7 I noted that Mayuge District received off-budget financing to a tune of UGX 58,291,066 directly from Ministry of Local Governments for undertaking activities which were never declared to the PS/ST. \uf0b7 I noted that there is illegal mining of sand being carried out at the district lakeshores. The Accounting Officer explained that management had written to the prospective stakeholders in the sand mining activities giving guidance on the sustainable way of carrying out the activity including closure of some of the sand mines. \uf0b7 I noted that Mayuge DLG did not have land titles for 33 pieces of land measuring approximately 1430.761 Ha. | Unnamed: 2 |", "metadata": {"page": 340, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Opinion: Unqualified | pension & salary payrolls such as; Failure to submit wage estimates to MoPs, failure to utilize wage funds of UGX.0.4Bn; Underpayment of salaries to staff worth UGX 17,301,287; overpayment to 239 staff worth UGX 12,549,285 under payment of gratuity worth UGX. 8,102,108 to pensioners; payment of salaries worth UGX. 5,528,605 to 2 staffs who were no longer in service; over and under remittance of salary deductions amounting to UGX 1,392,544 and UGX 30,126,523 \uf0b7 Additionally, I observed that there was delayed access to payroll by 25 newly recruited/ transferred employees and 05 pensioners; un-deducted PAYE from political leaders\u2019 gratuity resulting in unpaid tax of UGX. 2,026,660; Unauthorized payroll deductions worth UGX 156,349,689 relating to 84 without letters of undertaking; over deductions payments worth UGX. 2,876,352 and paid 03 staff and 07 politicians were worth UGX 14,156,592 off the IPPS \uf0b7 I noted a number of issues in the implementation of the approved budget such as; Failure to Quantify outputs; delayed submission of performance reports; inaccurate reporting of performance; under absorption of funds worth UGX 9,850,625,641 that were eventually swept back to consolidated fund account at end of financial year; under performance of NTR & transfers from other Government Units worth UGX. 609,177,435 \uf0b7 I noted that the Municipal Council had outstanding receivables of UGX 592,620,187 that had not been recovered by year end. \uf0b7 I noted that the entity had prepared a strategic plan but the National Planning Authority had not yet approved it at the time of audit. \uf0b7 Failure to quantify outputs, partial or non-implementation of activities not quantified late submission of quarterly reports and. \uf0b7 The Municipal Council had unspent funds under the USMID grant worth UGX. 9,421,230,865, which was subsequently swept back to the Consolidated Fund. Additionally, that the road construction works did not take off in the financial year under review. \uf0b7 I noted that the construction works of two classroom blocks and water borne toilet at Busoga High School at UGX. 309,872,760 were incomplete. \uf0b7 The Municipal Council lacked land titles for 11 pieces which exposed the land to loss and encroachment. |\n|---:|-------------:|:------------------------------|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 8 | Lugazi MC Opinion Unqualified | \uf0b7 I noted a number of anomalies during review of the Municipal pension & salary payrolls such as; Failure to submit wage estimates to MoPs, failure to utilize wage funds of UGX.0.4Bn; I also noted that there was an under payment of salaries worth UGX. 8,183,158; Unpaid salaries worth UGX. 34,305,160; Under |", "metadata": {"page": 340, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Opinion: Unqualified | pension & salary payrolls such as; Failure to submit wage estimates to MoPs, failure to utilize wage funds of UGX.0.4Bn; Underpayment of salaries to staff worth UGX 17,301,287; overpayment to 239 staff worth UGX 12,549,285 under payment of gratuity worth UGX. 8,102,108 to pensioners; payment of salaries worth UGX. 5,528,605 to 2 staffs who were no longer in service; over and under remittance of salary deductions amounting to UGX 1,392,544 and UGX 30,126,523 \uf0b7 Additionally, I observed that there was delayed access to payroll by 25 newly recruited/ transferred employees and 05 pensioners; un-deducted PAYE from political leaders\u2019 gratuity resulting in unpaid tax of UGX. 2,026,660; Unauthorized payroll deductions worth UGX 156,349,689 relating to 84 without letters of undertaking; over deductions payments worth UGX. 2,876,352 and paid 03 staff and 07 politicians were worth UGX 14,156,592 off the IPPS \uf0b7 I noted a number of issues in the implementation of the approved budget such as; Failure to Quantify outputs; delayed submission of performance reports; inaccurate reporting of performance; under absorption of funds worth UGX 9,850,625,641 that were eventually swept back to consolidated fund account at end of financial year; under performance of NTR & transfers from other Government Units worth UGX. 609,177,435 \uf0b7 I noted that the Municipal Council had outstanding receivables of UGX 592,620,187 that had not been recovered by year end. \uf0b7 I noted that the entity had prepared a strategic plan but the National Planning Authority had not yet approved it at the time of audit. \uf0b7 Failure to quantify outputs, partial or non-implementation of activities not quantified late submission of quarterly reports and. \uf0b7 The Municipal Council had unspent funds under the USMID grant worth UGX. 9,421,230,865, which was subsequently swept back to the Consolidated Fund. Additionally, that the road construction works did not take off in the financial year under review. \uf0b7 I noted that the construction works of two classroom blocks and water borne toilet at Busoga High School at UGX. 309,872,760 were incomplete. \uf0b7 The Municipal Council lacked land titles for 11 pieces which exposed the land to loss and encroachment. |\n|---:|:-------------|:------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | payments of UGX. 321,560,027 to pensioners; over payments of UGX. 7,263,946 and under payments of UGX. 1,360,106 arising from use of wrong bands; over and under remittance of salary deduction worth UGX. 2,697,535 and UGX. 35,487,023 respectively \uf0b7 Additionally, I observed that there was delayed access to payroll by 14 newly recruited/ transferred employees and thirteen (13) pensioners; un-deducted PAYE from political leaders\u2019 gratuity resulting in unpaid tax of UGX. 3,289,681; Unauthorized loan deductions worth UGX. 565,433,218 relating to 500 employees due to absence of Letters of undertaking; over deductions payments worth UGX. 2,876,352 and paid 15 staff and 10 pensioners a total of UGX. 27,696,793 off the IPPS \uf0b7 I noted a number of issues in the implementation of the approved budget such as; Failure to Quantify outputs; delayed submission of performance reports; under absorption of funds worth UGX 14,415,862,633 that were eventually swept back to consolidated fund account at end of financial year \uf0b7 I noted that the Municipal Council had outstanding receivables of UGX. 1,973,054,521 by the year end that remained unrecovered \uf0b7 Under absorption of funds worth UGX. 14,177,800,402 under the USMID program that was eventually swept back to the consolidated fund. \uf0b7 I noted under performance of funds worth UGX 17,916,865 from Uganda Road Fund meant for road maintenance in the municipality. \uf0b7 I noted that Council was involved in 06 ongoing court cases | Unnamed: 2 |\n| 1 | 9.0 | Namayingo DLG Opinion: Unqualified | \uf0b7 I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, failure to utilize wage funds of UGX.0.72Bn; Unpaid salaries and pensions worth UGX. 49,235,421; under payments of UGX. 129,040,476 to pensioners; over and under payment of salaries worth UGX. 14,206,136 and UGX. 4,684,855 respectively due to use of wrong salary scales \uf0b7 Additionally, I noted there was un-deduction of PAYE from political leaders\u2019 gratuity resulting in unpaid tax of UGX. 9,992,741; Unauthorized loan deductions worth UGX. 702,716,508 relating to 458 employees due to absence of Letters of undertaking; paid 33 staff and 16 pensioners a total of UGX. 38,434,320 off the IPPS \uf0b7 I observed that twenty-four (24) newly recruited/transferred employees and ten (10) pensioners delayed to access payroll; four (04) employees & seventeen (17) pensioners had not yet accessed the payroll by the close of the financial year and |", "metadata": {"page": 341, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Opinion: Unqualified | pension & salary payrolls such as; Failure to submit wage estimates to MoPs, failure to utilize wage funds of UGX.0.4Bn; Underpayment of salaries to staff worth UGX 17,301,287; overpayment to 239 staff worth UGX 12,549,285 under payment of gratuity worth UGX. 8,102,108 to pensioners; payment of salaries worth UGX. 5,528,605 to 2 staffs who were no longer in service; over and under remittance of salary deductions amounting to UGX 1,392,544 and UGX 30,126,523 \uf0b7 Additionally, I observed that there was delayed access to payroll by 25 newly recruited/ transferred employees and 05 pensioners; un-deducted PAYE from political leaders\u2019 gratuity resulting in unpaid tax of UGX. 2,026,660; Unauthorized payroll deductions worth UGX 156,349,689 relating to 84 without letters of undertaking; over deductions payments worth UGX. 2,876,352 and paid 03 staff and 07 politicians were worth UGX 14,156,592 off the IPPS \uf0b7 I noted a number of issues in the implementation of the approved budget such as; Failure to Quantify outputs; delayed submission of performance reports; inaccurate reporting of performance; under absorption of funds worth UGX 9,850,625,641 that were eventually swept back to consolidated fund account at end of financial year; under performance of NTR & transfers from other Government Units worth UGX. 609,177,435 \uf0b7 I noted that the Municipal Council had outstanding receivables of UGX 592,620,187 that had not been recovered by year end. \uf0b7 I noted that the entity had prepared a strategic plan but the National Planning Authority had not yet approved it at the time of audit. \uf0b7 Failure to quantify outputs, partial or non-implementation of activities not quantified late submission of quarterly reports and. \uf0b7 The Municipal Council had unspent funds under the USMID grant worth UGX. 9,421,230,865, which was subsequently swept back to the Consolidated Fund. Additionally, that the road construction works did not take off in the financial year under review. \uf0b7 I noted that the construction works of two classroom blocks and water borne toilet at Busoga High School at UGX. 309,872,760 were incomplete. \uf0b7 The Municipal Council lacked land titles for 11 pieces which exposed the land to loss and encroachment. |\n|---:|:-------------|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | payment of 5 employees who were no longer in service \uf0b7 I noted a number of issues in the implementation of the approved budget such as; Failure to quantify outputs; partial and non-implementation of planned activities delayed submission of performance reports; under absorption of funds worth UGX. 1,299,253,676 that were eventually swept back to consolidated fund account at end of financial year and under performance of revenues worth UGX. 896,645,767 \uf0b7 The District mischarged funds worth UGX. 5,057,686 on account codes other than those prescribed for salary, pension and gratuity. \uf0b7 Further, the District did not prepare monthly wage, pension and gratuity performance analysis and thus did not submit quarterly returns on payroll to MoPS, \uf0b7 I noted that the district had outstanding receivables of UGX. 1,063,954,752 that had not been recovered. \uf0b7 There was a delay in the physical progress of works at Bukana health centre III and Syanyonja Health centre. \uf0b7 I noted that Namayingo DLG did not have land titles for 113 pieces of land measuring approximately 357.3 hectares and 09 pieces of land were in the process of being titled. | Unnamed: 2 |\n| 1 | 10.0 | Bugweri DLG Opinion Unqualified | \uf0b7 I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, failure to utilize wage funds of UGX.0.38Bn; Unpaid pensions worth UGX. 110,127,127; Over payments of UGX. 3,000,000 to pensioners; over and under payment of salaries worth 9,273,543 and UGX. 4,410,477 respectively due to use of wrong bands \uf0b7 Additionally, I noted there was un-deduction of PAYE from political leaders\u2019 gratuity resulting in unpaid tax of UGX. 1,040,880; paid 23 staff and 15 pensioners were paid a total of UGX. 33,868,147 and UGX. 190,371,130 off the IPPS; over and under remittances of pay roll deductions of UGX. 532,326,787 and UGX. 31,529,271 respectively; Payment of UGX.35,780,089 to 09 employees who were no longer in service; wrong computation of gratuity benefits of 01 pensioner (TAJJUBA STEPHEN 417573) that resulted into an over payment of gratuity by UGX. 26, 936,170. \uf0b7 I observed that 22 newly recruited employees and 15 pensioners delayed to access the pension payroll and the district did not prepare monthly wage, pension and gratuity performance analysis and thus did not submit quarterly returns on payroll to MoPS |", "metadata": {"page": 342, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Opinion: Unqualified | pension & salary payrolls such as; Failure to submit wage estimates to MoPs, failure to utilize wage funds of UGX.0.4Bn; Underpayment of salaries to staff worth UGX 17,301,287; overpayment to 239 staff worth UGX 12,549,285 under payment of gratuity worth UGX. 8,102,108 to pensioners; payment of salaries worth UGX. 5,528,605 to 2 staffs who were no longer in service; over and under remittance of salary deductions amounting to UGX 1,392,544 and UGX 30,126,523 \uf0b7 Additionally, I observed that there was delayed access to payroll by 25 newly recruited/ transferred employees and 05 pensioners; un-deducted PAYE from political leaders\u2019 gratuity resulting in unpaid tax of UGX. 2,026,660; Unauthorized payroll deductions worth UGX 156,349,689 relating to 84 without letters of undertaking; over deductions payments worth UGX. 2,876,352 and paid 03 staff and 07 politicians were worth UGX 14,156,592 off the IPPS \uf0b7 I noted a number of issues in the implementation of the approved budget such as; Failure to Quantify outputs; delayed submission of performance reports; inaccurate reporting of performance; under absorption of funds worth UGX 9,850,625,641 that were eventually swept back to consolidated fund account at end of financial year; under performance of NTR & transfers from other Government Units worth UGX. 609,177,435 \uf0b7 I noted that the Municipal Council had outstanding receivables of UGX 592,620,187 that had not been recovered by year end. \uf0b7 I noted that the entity had prepared a strategic plan but the National Planning Authority had not yet approved it at the time of audit. \uf0b7 Failure to quantify outputs, partial or non-implementation of activities not quantified late submission of quarterly reports and. \uf0b7 The Municipal Council had unspent funds under the USMID grant worth UGX. 9,421,230,865, which was subsequently swept back to the Consolidated Fund. Additionally, that the road construction works did not take off in the financial year under review. \uf0b7 I noted that the construction works of two classroom blocks and water borne toilet at Busoga High School at UGX. 309,872,760 were incomplete. \uf0b7 The Municipal Council lacked land titles for 11 pieces which exposed the land to loss and encroachment. |\n|---:|:-------------|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | \uf0b7 I noted a number of issues in the implementation of the approved budget such as; Failure to quantify outputs; partial and non-implementation of planned activities delayed submission of performance reports; under absorption of funds worth UGX. 944,877,155 that were eventually swept back to consolidated fund account at end of financial year and under performance of revenues worth UGX. 6,114,158,151 \uf0b7 I noted that the District had outstanding receivables worth UGX. 499,741,444 that was not yet recovered. \uf0b7 I noted that the district had prepared a draft strategic plan but it had not yet been approved by the National Planning Authority. \uf0b7 I noted that Bugweri District received off-budget financing to a tune of UGX. 860,199,000 without seeking approval. \uf0b7 I noted that funds to the tune of UGX. 129,996,921 were misclassified. \uf0b7 I noted that the District lacked land titles for 31 pieces of land measuring approximately 179 acres including schools, sub counties and health centers. \uf0b7 Bugweri district received a sum of UGX. 155,136,081 for (06) secondary schools and (54) primary schools meant for the procurement of learning materials in March, 2021 but disbursed only UGX. 136,182,515 to the respective schools on 4 th June, 2021 leaving an outstanding amount of UGX. 18,953,562 which remained unaccounted for. \uf0b7 I noted that expenditure totaling UGX. 374,878,394 lacked adequate supporting documentation at the close of the financial year | Unnamed: 2 |\n| 1 | 11.0 | Bugiri Municipal Council Opinion Unqualified | \uf0b7 I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, failure to utilize wage funds of UGX.0.53Bn and over payment of salaries worth UGX. 4,618,049 due to use of wrong bands \uf0b7 Additionally, I observed that there was delayed access to payroll by 11 employees on the salary payroll and 03 pensioners on the pension pay roll; over and underpayment of salaries worth UGX. 5,020,000 UGX. 1,353,000; paid 15 staff and 03 pensioners were paid a total of UGX. 58,059,084 off the IPPS and paid five (5) employees a total of UGX. 29,073,390 without signed pay change reports \uf0b7 I noted a number of issues in the implementation of the approved budget such as; Failure to quantify outputs; partial and non-implementation of planned activities delayed submission of performance reports; under absorption of funds worth UGX. 568,033,989 that were eventually swept back to consolidated |", "metadata": {"page": 343, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Opinion: Unqualified | pension & salary payrolls such as; Failure to submit wage estimates to MoPs, failure to utilize wage funds of UGX.0.4Bn; Underpayment of salaries to staff worth UGX 17,301,287; overpayment to 239 staff worth UGX 12,549,285 under payment of gratuity worth UGX. 8,102,108 to pensioners; payment of salaries worth UGX. 5,528,605 to 2 staffs who were no longer in service; over and under remittance of salary deductions amounting to UGX 1,392,544 and UGX 30,126,523 \uf0b7 Additionally, I observed that there was delayed access to payroll by 25 newly recruited/ transferred employees and 05 pensioners; un-deducted PAYE from political leaders\u2019 gratuity resulting in unpaid tax of UGX. 2,026,660; Unauthorized payroll deductions worth UGX 156,349,689 relating to 84 without letters of undertaking; over deductions payments worth UGX. 2,876,352 and paid 03 staff and 07 politicians were worth UGX 14,156,592 off the IPPS \uf0b7 I noted a number of issues in the implementation of the approved budget such as; Failure to Quantify outputs; delayed submission of performance reports; inaccurate reporting of performance; under absorption of funds worth UGX 9,850,625,641 that were eventually swept back to consolidated fund account at end of financial year; under performance of NTR & transfers from other Government Units worth UGX. 609,177,435 \uf0b7 I noted that the Municipal Council had outstanding receivables of UGX 592,620,187 that had not been recovered by year end. \uf0b7 I noted that the entity had prepared a strategic plan but the National Planning Authority had not yet approved it at the time of audit. \uf0b7 Failure to quantify outputs, partial or non-implementation of activities not quantified late submission of quarterly reports and. \uf0b7 The Municipal Council had unspent funds under the USMID grant worth UGX. 9,421,230,865, which was subsequently swept back to the Consolidated Fund. Additionally, that the road construction works did not take off in the financial year under review. \uf0b7 I noted that the construction works of two classroom blocks and water borne toilet at Busoga High School at UGX. 309,872,760 were incomplete. \uf0b7 The Municipal Council lacked land titles for 11 pieces which exposed the land to loss and encroachment. |\n|---:|:-------------|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | fund account at end of financial year and under performance of revenues worth UGX. 334,420,647. \uf0b7 I noted that funds to the tune of UGX. 33,234,682 were paid on the wrong account codes. \uf0b7 I noted that the Council had outstanding receivables of UGX. 585,573,492. That remained unrecovered by year end \uf0b7 I noted that the entity\u2019s NDP-III was still in draft form and had not had its Strategic plan approved by NPA at the time of audit. \uf0b7 Road maintenance works was affected by budget shortfalls for funds worth GX 63,409,282 from URF. \uf0b7 I noted that expenditure totaling UGX. 37,580,848 advanced to staff and various suppliers to carry out activities lacked adequate supporting documents. \uf0b7 I noted that the Council lacked land titles for 07 pieces of its land. | Unnamed: 2 |\n| 1 | 12.0 | Kamuli DLG Opinion Unqualified | \uf0b7 I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, failure to utilize wage funds of UGX.1.3Bn; Unpaid pensions worth UGX. 129,711,499; Under payments of UGX. 789,022,349 to pensioners; under payment of salaries worth UGX. 16,604,611 and nonpayment of salaries worth UGX. 13,045,994 \uf0b7 Additionally, I observed that there was delayed access to payroll by 25 newly recruited/ transferred employees and 14 pensioners; un-deducted PAYE from political leaders\u2019 gratuity resulting in unpaid tax of UGX.13,801,906; Unauthorized loan deductions worth UGX. 179,141,809 due to absence of Letters of undertaking; over/ under remittance of salary deductions worth UGX. 2,758,277 and paid UGX.5, 049,620 to 13 staff who had retired, transferred, absconded or died. \uf0b7 I noted that Kamuli District had outstanding receivables figure of UGX. 1,309,756,172 that remained unrecovered by year end. \uf0b7 I noted, the entity did not have an approved strategic plan that is aligned to the NDP-III at the time of audit. \uf0b7 I noted a number of issues in the implementation of the approved budget such as; Failure to quantify outputs; partial and non-implementation of planned activities delayed submission of performance reports; under absorption of funds worth UGX. 3,884,528,244 that was eventually swept back to consolidated fund account at end of financial year and under performance of revenues worth UGX. 1,734,443,308 \uf0b7 I noted that Kamuli District received off-budget financing to a |", "metadata": {"page": 344, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Opinion: Unqualified | pension & salary payrolls such as; Failure to submit wage estimates to MoPs, failure to utilize wage funds of UGX.0.4Bn; Underpayment of salaries to staff worth UGX 17,301,287; overpayment to 239 staff worth UGX 12,549,285 under payment of gratuity worth UGX. 8,102,108 to pensioners; payment of salaries worth UGX. 5,528,605 to 2 staffs who were no longer in service; over and under remittance of salary deductions amounting to UGX 1,392,544 and UGX 30,126,523 \uf0b7 Additionally, I observed that there was delayed access to payroll by 25 newly recruited/ transferred employees and 05 pensioners; un-deducted PAYE from political leaders\u2019 gratuity resulting in unpaid tax of UGX. 2,026,660; Unauthorized payroll deductions worth UGX 156,349,689 relating to 84 without letters of undertaking; over deductions payments worth UGX. 2,876,352 and paid 03 staff and 07 politicians were worth UGX 14,156,592 off the IPPS \uf0b7 I noted a number of issues in the implementation of the approved budget such as; Failure to Quantify outputs; delayed submission of performance reports; inaccurate reporting of performance; under absorption of funds worth UGX 9,850,625,641 that were eventually swept back to consolidated fund account at end of financial year; under performance of NTR & transfers from other Government Units worth UGX. 609,177,435 \uf0b7 I noted that the Municipal Council had outstanding receivables of UGX 592,620,187 that had not been recovered by year end. \uf0b7 I noted that the entity had prepared a strategic plan but the National Planning Authority had not yet approved it at the time of audit. \uf0b7 Failure to quantify outputs, partial or non-implementation of activities not quantified late submission of quarterly reports and. \uf0b7 The Municipal Council had unspent funds under the USMID grant worth UGX. 9,421,230,865, which was subsequently swept back to the Consolidated Fund. Additionally, that the road construction works did not take off in the financial year under review. \uf0b7 I noted that the construction works of two classroom blocks and water borne toilet at Busoga High School at UGX. 309,872,760 were incomplete. \uf0b7 The Municipal Council lacked land titles for 11 pieces which exposed the land to loss and encroachment. |\n|---:|:-------------|:-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | tune of UGX. 185,243,153 directly from Ministry of Health (MoH) and Marie topes for undertaking activities which was never declared to the PSST and as such no supplementary appropriation was issued as guided by the PSST. \uf0b7 I noted that the District lacked land titles for 194 pieces of land measuring approximately 546 acres including schools and health centers. \uf0b7 I noted delays in the construction works on Kitayunjwa seed secondary school and construction works of seed secondary schools at Nabwigulu and Kagumba did not take off in the financial year under review and the funds were swept back to treasury. \uf0b7 I noted at the time of inspection on 25th August, 2021 that science kits and chemicals that were delivered for Kitayunjwa Seed School were still in the district stores. \uf0b7 I observed that works at Kagumba HC II were still ongoing and the works progress was behind \uf0b7 Under URF, There was underfunding of UGX 49,538,044 under URF for road maintenance | Unnamed: 2 |\n| 1 | 13.0 | Jinja RRH Opinion Unqualified | \uf0b7 I noted a number of anomalies during review of the Hospital pension & salary payrolls such as; Failure to submit wage estimates to MoPs, failure to utilize wage funds of UGX.1.7Bn; over payment of gratuity worth UGX. 12,702,466 resulting from wrong computations; under payments of pension and gratuity of UGX. 393,563,387; under payment of salaries worth UGX. 43,160,618 and nonpayment of salaries worth UGX. 5,193,740 to eight employees; 14 pensioners were paid a total of UGX. 622,229,852 off the IPPS; twenty two (22) pensioners delayed to access the pension payroll; paid 4 employees who had retired worth UGX. 6,149,095 and under remittance of pay roll deductions amounting to UGX. 39,740,732 \uf0b7 The Hospital had payables of UGX. 1,184,835,800 for payment of utilities, pension and gratuity. \uf0b7 I noted that the entity did not have an approved strategic plan that was aligned to the NDP-III at the time of audit. \uf0b7 I noted that the Referral Hospital received off-budget financing to a tune of UGX.1,482,640,867, which was not declared to treasury. \uf0b7 Expenditure totaling UGX. 154,045,146 was misclassified through wrong coding \uf0b7 The referral hospital received UGX. 581,089,500 as covid 19 funds. Out of which UGX. 385,881,400 was utilized but UGX.30, 585,000 lacked adequate supporting documentation at the close |", "metadata": {"page": 345, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Opinion: Unqualified | pension & salary payrolls such as; Failure to submit wage estimates to MoPs, failure to utilize wage funds of UGX.0.4Bn; Underpayment of salaries to staff worth UGX 17,301,287; overpayment to 239 staff worth UGX 12,549,285 under payment of gratuity worth UGX. 8,102,108 to pensioners; payment of salaries worth UGX. 5,528,605 to 2 staffs who were no longer in service; over and under remittance of salary deductions amounting to UGX 1,392,544 and UGX 30,126,523 \uf0b7 Additionally, I observed that there was delayed access to payroll by 25 newly recruited/ transferred employees and 05 pensioners; un-deducted PAYE from political leaders\u2019 gratuity resulting in unpaid tax of UGX. 2,026,660; Unauthorized payroll deductions worth UGX 156,349,689 relating to 84 without letters of undertaking; over deductions payments worth UGX. 2,876,352 and paid 03 staff and 07 politicians were worth UGX 14,156,592 off the IPPS \uf0b7 I noted a number of issues in the implementation of the approved budget such as; Failure to Quantify outputs; delayed submission of performance reports; inaccurate reporting of performance; under absorption of funds worth UGX 9,850,625,641 that were eventually swept back to consolidated fund account at end of financial year; under performance of NTR & transfers from other Government Units worth UGX. 609,177,435 \uf0b7 I noted that the Municipal Council had outstanding receivables of UGX 592,620,187 that had not been recovered by year end. \uf0b7 I noted that the entity had prepared a strategic plan but the National Planning Authority had not yet approved it at the time of audit. \uf0b7 Failure to quantify outputs, partial or non-implementation of activities not quantified late submission of quarterly reports and. \uf0b7 The Municipal Council had unspent funds under the USMID grant worth UGX. 9,421,230,865, which was subsequently swept back to the Consolidated Fund. Additionally, that the road construction works did not take off in the financial year under review. \uf0b7 I noted that the construction works of two classroom blocks and water borne toilet at Busoga High School at UGX. 309,872,760 were incomplete. \uf0b7 The Municipal Council lacked land titles for 11 pieces which exposed the land to loss and encroachment. |\n|---:|:-------------|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | of the financial year. Further, I observed there was unspent balance of UGX. 195,208,100 \uf0b7 I noted that NTR totaling to UGX.74, 272,140 was spent at source contrary to regulations \uf0b7 Jinja RRH made Payments totaling UGX.41, 914,100 for clearing domestic arrears lacked appropriate supporting documents, UGX.76, 523,500 paid to M/S Rodek Enterprises Ltd towards settlement of outstanding bills for cleaning services of the hospital had not been cleared by Ernst and Young. \uf0b7 The hospital received off-budget financing from the Ministry of health amounting to UGX. 1,482,640,867. \uf0b7 I noted that the hospital commenced construction of a storey staff house on 15 th /04/2019 with an intended completion date of 14 th /10/2021 at a contract price of UGX. 3,205,111,734 but was noted to be incomplete to date, with outstanding advance payment of UGX. 73,337,302 to the contractor. \uf0b7 Expenditures worth UGX. 166,012,755 lacked adequate supporting documents \uf0b7 The Hospital had stock outs of Essential medicines for supportive treatment of Covid-19 during the year with an average stock out period of more than a month. Several drugs that expired during the year had not yet been removed from the shelves as required. \uf0b7 I observed that the hospital did not carry out regular maintenance of the available medical equipment. \uf0b7 I noted that the Hospital did not have land titles for 5 pieces of land measuring approximately 46.7 acres. \uf0b7 I noted that some of the buildings in the hospital were in a dilapidated state while other blocks accommodating nurses were not fit for accommodation due to their dilapidated state and there was lack of hygiene facilities such as latrines and bathrooms. | Unnamed: 2 |\n| 1 | 14.0 | Bugiri DA Unqualified Opinion | \uf0b7 I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, failure to utilize wage funds of UGX.0.017Bn; un-deducted PAYE from political leaders\u2019 gratuity resulting in unpaid tax of UGX.13,100,078 \uf0b7 Additionally, 68 newly recruited/ transferred employees and 04 pensioners delayed to access the payroll; paid 7 employees who were no longer in service worth UGX. 4,090,197; Unpaid salaries worth UGX. 6,074,121; underpayment and overpayment of pensions & gratuity worth UGX. 26,897,618 and UGX. 13,600,648 respectively and the district made unauthorized loan deductions from 49 employees worth UGX. 150,566,095 |", "metadata": {"page": 346, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Opinion: Unqualified | pension & salary payrolls such as; Failure to submit wage estimates to MoPs, failure to utilize wage funds of UGX.0.4Bn; Underpayment of salaries to staff worth UGX 17,301,287; overpayment to 239 staff worth UGX 12,549,285 under payment of gratuity worth UGX. 8,102,108 to pensioners; payment of salaries worth UGX. 5,528,605 to 2 staffs who were no longer in service; over and under remittance of salary deductions amounting to UGX 1,392,544 and UGX 30,126,523 \uf0b7 Additionally, I observed that there was delayed access to payroll by 25 newly recruited/ transferred employees and 05 pensioners; un-deducted PAYE from political leaders\u2019 gratuity resulting in unpaid tax of UGX. 2,026,660; Unauthorized payroll deductions worth UGX 156,349,689 relating to 84 without letters of undertaking; over deductions payments worth UGX. 2,876,352 and paid 03 staff and 07 politicians were worth UGX 14,156,592 off the IPPS \uf0b7 I noted a number of issues in the implementation of the approved budget such as; Failure to Quantify outputs; delayed submission of performance reports; inaccurate reporting of performance; under absorption of funds worth UGX 9,850,625,641 that were eventually swept back to consolidated fund account at end of financial year; under performance of NTR & transfers from other Government Units worth UGX. 609,177,435 \uf0b7 I noted that the Municipal Council had outstanding receivables of UGX 592,620,187 that had not been recovered by year end. \uf0b7 I noted that the entity had prepared a strategic plan but the National Planning Authority had not yet approved it at the time of audit. \uf0b7 Failure to quantify outputs, partial or non-implementation of activities not quantified late submission of quarterly reports and. \uf0b7 The Municipal Council had unspent funds under the USMID grant worth UGX. 9,421,230,865, which was subsequently swept back to the Consolidated Fund. Additionally, that the road construction works did not take off in the financial year under review. \uf0b7 I noted that the construction works of two classroom blocks and water borne toilet at Busoga High School at UGX. 309,872,760 were incomplete. \uf0b7 The Municipal Council lacked land titles for 11 pieces which exposed the land to loss and encroachment. |\n|---:|:-------------|:-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | \uf0b7 I noted that Bugiri District had outstanding receivables of UGX. 1,140,326,136 that had remained unrecovered \uf0b7 Payables of UGX. 30,517,114 remained unsettled by year end \uf0b7 I noted that the entity had prepared a draft Strategic plan but had not yet been approved by NPA at the time of audit. \uf0b7 I noted a number of issues in the implementation of the approved budget such as; Failure to quantify outputs; partial and non-implementation of planned activities delayed submission of performance reports; under absorption of funds worth UGX. UGX. 422,963,116 that was eventually swept back to consolidated fund account at end of financial year and under performance of revenues worth UGX. 3,550,589,111 \uf0b7 I noted that funds to the tune of UGX. 172,737,949 were irregularly diverted from the activities on which they were budgeted and spent on other activities without seeking and obtaining the necessary approvals. \uf0b7 I noted that construction works for Budhaya Seed secondary school did not take off \uf0b7 Underfunding worth UGX 24,751,000 was noted for URF meant for road maintenance \uf0b7 I noted that the District lacked land titles for 16 pieces of land measuring approximately 106.7 acres including schools, sub counties and health centers. \uf0b7 Bugiri district received a sum of UGX. 204,224,148 for (08) secondary schools and (140) primary schools meant for the procurement of learning materials. I noted that (47) schools had irregularly utilized the funds totaling to UGX. 50,639,930 without proper guidance, (58) schools had not utilized the funds, while bank statements as at end of October 2021 for (43) schools were not presented to enable establishment of whether the funds had been utilized without proper guidance or not. | Unnamed: 2 |\n| 1 | 15.0 | Njeru MC Opinion Unqualified | \uf0b7 I noted a number of anomalies during review of the Municipal pension & salary payrolls such as; Failure to submit wage estimates to MoPs, failure to utilize wage funds of UGX.0.31Bn; Under and overpayment of salaries worth UGX. 8,321,986 and UGX. 31,890,939 respectively; under payments of pensions worth UGX. 4,693,227; paid 12 staff a total of UGX. 13,933,412 off the IPPS; the Municipal Council did not prepare monthly wage, pension and gratuity performance analysis for submission to MoPS and Paid UGX. 6,413,424 to 05 staff who were no longer in service \uf0b7 Additionally, I noted that 18 newly recruited/ transferred employees and 08 pensioners delayed to access the pension |", "metadata": {"page": 347, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Opinion: Unqualified | pension & salary payrolls such as; Failure to submit wage estimates to MoPs, failure to utilize wage funds of UGX.0.4Bn; Underpayment of salaries to staff worth UGX 17,301,287; overpayment to 239 staff worth UGX 12,549,285 under payment of gratuity worth UGX. 8,102,108 to pensioners; payment of salaries worth UGX. 5,528,605 to 2 staffs who were no longer in service; over and under remittance of salary deductions amounting to UGX 1,392,544 and UGX 30,126,523 \uf0b7 Additionally, I observed that there was delayed access to payroll by 25 newly recruited/ transferred employees and 05 pensioners; un-deducted PAYE from political leaders\u2019 gratuity resulting in unpaid tax of UGX. 2,026,660; Unauthorized payroll deductions worth UGX 156,349,689 relating to 84 without letters of undertaking; over deductions payments worth UGX. 2,876,352 and paid 03 staff and 07 politicians were worth UGX 14,156,592 off the IPPS \uf0b7 I noted a number of issues in the implementation of the approved budget such as; Failure to Quantify outputs; delayed submission of performance reports; inaccurate reporting of performance; under absorption of funds worth UGX 9,850,625,641 that were eventually swept back to consolidated fund account at end of financial year; under performance of NTR & transfers from other Government Units worth UGX. 609,177,435 \uf0b7 I noted that the Municipal Council had outstanding receivables of UGX 592,620,187 that had not been recovered by year end. \uf0b7 I noted that the entity had prepared a strategic plan but the National Planning Authority had not yet approved it at the time of audit. \uf0b7 Failure to quantify outputs, partial or non-implementation of activities not quantified late submission of quarterly reports and. \uf0b7 The Municipal Council had unspent funds under the USMID grant worth UGX. 9,421,230,865, which was subsequently swept back to the Consolidated Fund. Additionally, that the road construction works did not take off in the financial year under review. \uf0b7 I noted that the construction works of two classroom blocks and water borne toilet at Busoga High School at UGX. 309,872,760 were incomplete. \uf0b7 The Municipal Council lacked land titles for 11 pieces which exposed the land to loss and encroachment. |\n|---:|:-------------|:------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | payroll and 01 pensioner had never accessed the payroll; 15 employees were paid a total of UGX. 16,677,139 without signed pay change reports; over and under payment of thirteen (13) pensioners worth UGX. 34,733,352 and UGX. 24,197,298 respectively arising from wrong computation of gratuity benefits \uf0b7 The municipality paid 322 employees using the wrong bands, leading to monthly over payments of UGX. 7,147,390 and under payments of UGX. 2,837,275 \uf0b7 The Municipal Council made unauthorized loan deductions totaling UGX. 14,734,700 from 19 employees that lacked evidence of signing letters of undertaking \uf0b7 The Municipal Council had outstanding unrecovered funds (receivables) of UGX. 891,306,154 by close of financial year \uf0b7 I noted that the Municipal Council had prepared but had not had the strategic plan approved and aligned to the NDP-III at the time of audit \uf0b7 I noted a number of issues in the implementation of the approved budget such as; Failure to quantify outputs; partial and non-implementation of planned activities delayed submission of performance reports; under absorption of funds worth UGX. 1,815,926,807 that was eventually swept back to consolidated fund account at end of financial year and under performance of revenues worth UGX. 2,234,326,614 \uf0b7 URF underfunding of UGX. 86,246,400 meant for road maintenance was noted \uf0b7 Njeru MC received a sum of UGX. 84,619,384 for (48) primary and secondary schools meant for the procurement of learning materials in March, 2021 and disbursed UGX. 84,619,384 (100%) to (48) schools on 28th June, 2021. However, the various school\u2019s bank statements had not been availed for review at the time of audit \uf0b7 I noted that the Municipal Council did not have land titles for 12 out of 22 pieces of land including schools and health centers | Unnamed: 2 |\n| 1 | 16.0 | Iganga DLG Opinion Unqualified | \uf0b7 I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, failure to utilize wage funds of UGX.1.07Bn; under payment of salaries worth UGX. 32,546,140; non- payments of pensioners worth UGX. 80,485,339; paid 16 staff using wrong bands, leading to monthly over payments of UGX. 287,429 and under payments of UGX. 526,840; paid UGX. 4,349,175 to 07 staff who had retired, transferred or absconded; over and under remittance of salary deductions worth UGX. 7,428,040 and UGX. 42,133,941 respectively \uf0b7 Additionally, I noted that there was Un-deducted PAYE from |", "metadata": {"page": 348, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Opinion: Unqualified | pension & salary payrolls such as; Failure to submit wage estimates to MoPs, failure to utilize wage funds of UGX.0.4Bn; Underpayment of salaries to staff worth UGX 17,301,287; overpayment to 239 staff worth UGX 12,549,285 under payment of gratuity worth UGX. 8,102,108 to pensioners; payment of salaries worth UGX. 5,528,605 to 2 staffs who were no longer in service; over and under remittance of salary deductions amounting to UGX 1,392,544 and UGX 30,126,523 \uf0b7 Additionally, I observed that there was delayed access to payroll by 25 newly recruited/ transferred employees and 05 pensioners; un-deducted PAYE from political leaders\u2019 gratuity resulting in unpaid tax of UGX. 2,026,660; Unauthorized payroll deductions worth UGX 156,349,689 relating to 84 without letters of undertaking; over deductions payments worth UGX. 2,876,352 and paid 03 staff and 07 politicians were worth UGX 14,156,592 off the IPPS \uf0b7 I noted a number of issues in the implementation of the approved budget such as; Failure to Quantify outputs; delayed submission of performance reports; inaccurate reporting of performance; under absorption of funds worth UGX 9,850,625,641 that were eventually swept back to consolidated fund account at end of financial year; under performance of NTR & transfers from other Government Units worth UGX. 609,177,435 \uf0b7 I noted that the Municipal Council had outstanding receivables of UGX 592,620,187 that had not been recovered by year end. \uf0b7 I noted that the entity had prepared a strategic plan but the National Planning Authority had not yet approved it at the time of audit. \uf0b7 Failure to quantify outputs, partial or non-implementation of activities not quantified late submission of quarterly reports and. \uf0b7 The Municipal Council had unspent funds under the USMID grant worth UGX. 9,421,230,865, which was subsequently swept back to the Consolidated Fund. Additionally, that the road construction works did not take off in the financial year under review. \uf0b7 I noted that the construction works of two classroom blocks and water borne toilet at Busoga High School at UGX. 309,872,760 were incomplete. \uf0b7 The Municipal Council lacked land titles for 11 pieces which exposed the land to loss and encroachment. |\n|---:|:-------------|:------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | political leaders\u2019 gratuity resulting in unpaid tax of UGX.10,059,827; 32 pensioners delayed to access the pension payroll and 19 pensioners had never accessed the payroll and therefore not paid; 55 employees were paid a total of UGX. 30 million without signed pay change reports and 73 employees and 34 pensioners were paid a total of UGX. 1,166,247,120 off the IPPS \uf0b7 The district had outstanding unrecovered funds (receivables) of UGX. 1,705,945,185 by the end of the period \uf0b7 I noted that the district was engrossed in a number of court cases estimated at UGX. 3,832,685,041 \uf0b7 I noted a number of issues in the implementation of the approved budget such as; Failure to quantify outputs; partial and non-implementation of planned activities delayed submission of performance reports; under absorption of funds worth UGX. 2,137,465,419 that was eventually swept back to consolidated fund account at end of financial year and under performance of revenues worth UGX. 9,278,908,203 \uf0b7 I noted that the entity had not prepared and approved a strategic plan that is aligned to the NDP-III \uf0b7 I noted that the District had 04 pieces of land that were not titled as well as 33 pieces of land under its supervision that were also not titled \uf0b7 There was URF underfunding of UGX 57,904,000 meant for road maintenance that affected road roads in the district. | Unnamed: 2 |\n| 1 | 17.0 | Luuka DLG Opinion Unqualified | \uf0b7 I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, failure to utilize wage funds of UGX.1.60Bn; under payment of salaries UGX. 33,624,349 \uf0b7 The District had with payments leading to over and over payments of UGX. 188,313272 due to wrong computation; underpayments of UGX. 39,314,543 to 32 pensioners resulting from wrong computation of gratuity benefits; made over and under payments of UGX. 16,741,697 and UGX. 8,347,743 respectively due to use of wrong salary bands \uf0b7 Paid UGX. 21,149,890 to 10 staff, who had retired, transferred, absconded or died; under remitted salary deductions worth UGX. 319,599,269; the District made unauthorized loan deductions totaling UGX. 158,654,625 from 115 employees; Un-deducted PAYE from political leaders\u2019 gratuity resulting in unpaid tax of UGX. 2,659,020 and under payment of pensioners worth UGX. 485,724,648 \uf0b7 Additionally, I noted that 41 newly recruited/ transferred employees and 19 pensioners delayed to access payroll; 47 |", "metadata": {"page": 349, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Opinion: Unqualified | pension & salary payrolls such as; Failure to submit wage estimates to MoPs, failure to utilize wage funds of UGX.0.4Bn; Underpayment of salaries to staff worth UGX 17,301,287; overpayment to 239 staff worth UGX 12,549,285 under payment of gratuity worth UGX. 8,102,108 to pensioners; payment of salaries worth UGX. 5,528,605 to 2 staffs who were no longer in service; over and under remittance of salary deductions amounting to UGX 1,392,544 and UGX 30,126,523 \uf0b7 Additionally, I observed that there was delayed access to payroll by 25 newly recruited/ transferred employees and 05 pensioners; un-deducted PAYE from political leaders\u2019 gratuity resulting in unpaid tax of UGX. 2,026,660; Unauthorized payroll deductions worth UGX 156,349,689 relating to 84 without letters of undertaking; over deductions payments worth UGX. 2,876,352 and paid 03 staff and 07 politicians were worth UGX 14,156,592 off the IPPS \uf0b7 I noted a number of issues in the implementation of the approved budget such as; Failure to Quantify outputs; delayed submission of performance reports; inaccurate reporting of performance; under absorption of funds worth UGX 9,850,625,641 that were eventually swept back to consolidated fund account at end of financial year; under performance of NTR & transfers from other Government Units worth UGX. 609,177,435 \uf0b7 I noted that the Municipal Council had outstanding receivables of UGX 592,620,187 that had not been recovered by year end. \uf0b7 I noted that the entity had prepared a strategic plan but the National Planning Authority had not yet approved it at the time of audit. \uf0b7 Failure to quantify outputs, partial or non-implementation of activities not quantified late submission of quarterly reports and. \uf0b7 The Municipal Council had unspent funds under the USMID grant worth UGX. 9,421,230,865, which was subsequently swept back to the Consolidated Fund. Additionally, that the road construction works did not take off in the financial year under review. \uf0b7 I noted that the construction works of two classroom blocks and water borne toilet at Busoga High School at UGX. 309,872,760 were incomplete. \uf0b7 The Municipal Council lacked land titles for 11 pieces which exposed the land to loss and encroachment. |\n|---:|:-------------|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | employees were paid a total of UGX. 215,642,700 without signed pay change reports; the District did not prepare monthly wage, pension and gratuity performance analysis and thus did not submit quarterly returns on payroll to MoPS; I noted that 21 staff and 01 pensioner were paid a total of UGX. 37,733,743 off the IPPS \uf0b7 The district mischarged funds worth UGX. 40,695,963 on account codes other than those prescribed for salary, pension and gratuity \uf0b7 I noted the district had outstanding unrecovered receivables of UGX. 885,992,084 by the year end. \uf0b7 I noted that the Council was engrossed in 03 court cases with individuals which could lead to possible loss of funds \uf0b7 I noted that the entity had prepared but not had the strategic plan approved and aligned to the NDP-III at the time of audit \uf0b7 I noted a number of issues in the implementation of the approved budget such as; Failure to quantify outputs; partial and non-implementation of planned activities delayed submission of performance reports; under absorption of funds worth UGX. 652,127,207 that was eventually swept back to consolidated fund account at end of financial year and under performance of revenues worth UGX.673,814,209 \uf0b7 The District commenced construction works on Ikumbya seed secondary school under the Education Sector in the FY 2018/2019. At the time of inspection on 28th October, 2021, I observed that works were still ongoing at 87% progress, with all structures yet to be properly floored, with partial painting, no glasses, no roofing of latrine and the compound yet to be cleared and set \uf0b7 Luuka DLG budgeted for and received UGX. 344,284,000 for the initial stages of the construction of Buwanda Seed Secondary in the FY 2020/2021. However, construction works did not take off in the financial year under review and the funds were swept back to treasury \uf0b7 Luuka DLG received a sum of UGX. 217,156,943 for 89 primary schools and 8 secondary schools meant for the procurement of learning materials on 1st April, 2021 and disbursed UGX. 136,640,827 (63%) to 53 primary schools and 5 secondary schools on 28th June, 2021. UGX. 80,516,116 was not disbursed by the district. However, the respective school bank statement and receipts had not been availed for review at the time of audit, and as such, I could not establish whether the funds were still on the accounts | Unnamed: 2 |", "metadata": {"page": 350, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Opinion: Unqualified | pension & salary payrolls such as; Failure to submit wage estimates to MoPs, failure to utilize wage funds of UGX.0.4Bn; Underpayment of salaries to staff worth UGX 17,301,287; overpayment to 239 staff worth UGX 12,549,285 under payment of gratuity worth UGX. 8,102,108 to pensioners; payment of salaries worth UGX. 5,528,605 to 2 staffs who were no longer in service; over and under remittance of salary deductions amounting to UGX 1,392,544 and UGX 30,126,523 \uf0b7 Additionally, I observed that there was delayed access to payroll by 25 newly recruited/ transferred employees and 05 pensioners; un-deducted PAYE from political leaders\u2019 gratuity resulting in unpaid tax of UGX. 2,026,660; Unauthorized payroll deductions worth UGX 156,349,689 relating to 84 without letters of undertaking; over deductions payments worth UGX. 2,876,352 and paid 03 staff and 07 politicians were worth UGX 14,156,592 off the IPPS \uf0b7 I noted a number of issues in the implementation of the approved budget such as; Failure to Quantify outputs; delayed submission of performance reports; inaccurate reporting of performance; under absorption of funds worth UGX 9,850,625,641 that were eventually swept back to consolidated fund account at end of financial year; under performance of NTR & transfers from other Government Units worth UGX. 609,177,435 \uf0b7 I noted that the Municipal Council had outstanding receivables of UGX 592,620,187 that had not been recovered by year end. \uf0b7 I noted that the entity had prepared a strategic plan but the National Planning Authority had not yet approved it at the time of audit. \uf0b7 Failure to quantify outputs, partial or non-implementation of activities not quantified late submission of quarterly reports and. \uf0b7 The Municipal Council had unspent funds under the USMID grant worth UGX. 9,421,230,865, which was subsequently swept back to the Consolidated Fund. Additionally, that the road construction works did not take off in the financial year under review. \uf0b7 I noted that the construction works of two classroom blocks and water borne toilet at Busoga High School at UGX. 309,872,760 were incomplete. \uf0b7 The Municipal Council lacked land titles for 11 pieces which exposed the land to loss and encroachment. |\n|---:|-------------:|:-----------------------|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 18 | Iganga MC | \uf0b7 I noted a number of anomalies during review of the Municipal pension & salary payrolls such as; Failure to submit wage |", "metadata": {"page": 350, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Opinion Unqualified | estimates to MoPs, failure to utilize wage funds of UGX.0.23Bn; under payment of salaries worth UGX. 119,289,474; irregularly paid one staff who had retired UGX. 1,971,915; over remittance of payroll deductions worth UGX.10,164,672 \uf0b7 Additionally, the Municipal Council did not prepare monthly wage, pension and gratuity performance analysis and thus did not submit quarterly returns on payroll to MoPS; 22 staff were paid a total of UGX. 37,734,317 off the IPPS; 15 employees were paid a total of UGX.7.9 million without signed pay change reports; 03 newly recruited/transferred employees and 6 pensioners delayed to access payroll; Un-deducted PAYE from political leaders\u2019 gratuity resulting in unpaid tax of UGX. 2,607,660 \uf0b7 I noted that the verification forms and copies of the verification cards for all employees and pensioners/beneficiaries were not on the respective personal files \uf0b7 The Municipal Council had outstanding receivables of UGX. 1,705,945,185 that had not been recovered by year end. \uf0b7 Municipal Council had outstanding payables of UGX. 650,570,897 unsettled by year \uf0b7 I noted that the Municipal Council had not prepared and approved a strategic plan that is aligned to the NDP-III at the time of audit \uf0b7 I noted a number of issues in the implementation of the approved budget such as; Failure to quantify outputs; partial and non-implementation of planned activities delayed submission of performance reports; under performance of revenues worth UGX. 801,240,396 \uf0b7 Noted URF underfunding of UGX 24,821,498 that affected road maintenance at the Municipality \uf0b7 Iganga Municipal Council did not have land titles for 15 of the 25 pieces of land with some land files deemed missing (Bupala land). |\n|---:|:-------------|:-------------------------------|:------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | | Branch Kampala | Summary of Key Findings |\n| 1 | 1.0 | Buikwe DLG Opinion Unqualified | \uf0b7 I noted a number of anomalies during review of the district pension & salary payrolls such as; Over payment of salary to 7 staffs worth UGX. 6,542,796; Underpayment of salaries to 24 employees worth UGX. 20,560,692; payment of salaries worth UGX 4,697,808 to two (2) staffs that was no longer in service and irregular deduction of loan instalments worth UGX. 56,120,313 for 23 employees. \uf0b7 Additionally, I observed that there was delayed access to payroll by ten (10) new employees; un-deducted PAYE from political leaders\u2019 gratuity resulting in unpaid tax of UGX. 10,214,875; and unpaid pension and gratuity worth UGX. 95,481,460 |", "metadata": {"page": 351, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Opinion Unqualified | estimates to MoPs, failure to utilize wage funds of UGX.0.23Bn; under payment of salaries worth UGX. 119,289,474; irregularly paid one staff who had retired UGX. 1,971,915; over remittance of payroll deductions worth UGX.10,164,672 \uf0b7 Additionally, the Municipal Council did not prepare monthly wage, pension and gratuity performance analysis and thus did not submit quarterly returns on payroll to MoPS; 22 staff were paid a total of UGX. 37,734,317 off the IPPS; 15 employees were paid a total of UGX.7.9 million without signed pay change reports; 03 newly recruited/transferred employees and 6 pensioners delayed to access payroll; Un-deducted PAYE from political leaders\u2019 gratuity resulting in unpaid tax of UGX. 2,607,660 \uf0b7 I noted that the verification forms and copies of the verification cards for all employees and pensioners/beneficiaries were not on the respective personal files \uf0b7 The Municipal Council had outstanding receivables of UGX. 1,705,945,185 that had not been recovered by year end. \uf0b7 Municipal Council had outstanding payables of UGX. 650,570,897 unsettled by year \uf0b7 I noted that the Municipal Council had not prepared and approved a strategic plan that is aligned to the NDP-III at the time of audit \uf0b7 I noted a number of issues in the implementation of the approved budget such as; Failure to quantify outputs; partial and non-implementation of planned activities delayed submission of performance reports; under performance of revenues worth UGX. 801,240,396 \uf0b7 Noted URF underfunding of UGX 24,821,498 that affected road maintenance at the Municipality \uf0b7 Iganga Municipal Council did not have land titles for 15 of the 25 pieces of land with some land files deemed missing (Bupala land). |\n|---:|:-------------|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | \uf0b7 I noted a number of issues in the implementation of the approved budget such as; under absorption of funds worth UGX.1.11Bn that was swept back to consolidated fund account and under performance of the releases from government worth UGX.2,590,769,685; \uf0b7 The district mischarged expenditure worth UGX. 55,352,971 on wrong budget lines \uf0b7 The district had unrecovered funds worth UGX. 597,864,391 from YLP and UWEP groups. \uf0b7 I noted off budget funding worth UGX.1,460,725,115 received for Result Based Financing (RBF) from the ministry of Finance. \uf0b7 I also noted that the original copy of the title for Plot 18 Kyaggwe block 564, land at Nansagazi landing site measuring 7.06 hectares was missing from the safe. | Unnamed: 2 |\n| 1 | 2.0 | Buvuma DLG Opinion Unqualified | \uf0b7 I noted a number of anomalies during review of the district pension & salary payrolls such as; Over payment of salaries worth UGX. UGX.1,243,832; Underpayment of salaries worth UGX. UGX.1,667,474; Wrong computation of gratuity for four (4) pensioners worth UGX.2,382,045 and UGX.1,325,359 respectively; under remittance of employee\u2019s salary deductions worth UGX.139,719,468; unpaid salaries worth UGX. 0.883 Bn and delayed remittance of deductions to UCLA/UBA worth UGX.224 million \uf0b7 Additionally, I observed that there was delayed access to payroll by twenty (20) new employees and two (2) pensioners; un- deducted PAYE from political leaders\u2019 gratuity resulting in unpaid tax of UGX.18,624,938 and payment of one (1) pensioner worth UGX.10,519,628 off the IPPS. \uf0b7 I noted a number of issues in the implementation of the approved budget such as; partial implementation of planned activities; under absorption of funds worth UGX. 0.888 Bn; under performance of the releases from other government units worth UGX.1,004,434; delayed submission of quarterly monitoring reports to OPM & MoFPED and late submission of performance reports \uf0b7 The district mischarged expenditure worth UGX.31,344,359 on wrong budget \uf0b7 I noted unrecovered funds of YLP and UWEP worth UGX.426,197,440 and UGX.161,592,376 respectively |\n| 2 | 3.0 | ENTEBBE MC Opinion | \uf0b7 I noted a number of anomalies during review of the Municipal pension & salary payrolls such as; Over payment of salaries |", "metadata": {"page": 352, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Unqualified | worth UGX.5,237,820; payment of salaries worth UGX.2,734,481 to three (03) staffs that were no longer in service; over and under remittance of salaries worth UGX17,579,629 and UGX,8,495,808 respectively \uf0b7 Additionally, I observed that there was delayed access to payroll by ten (10) pensioners and un-deducted PAYE from political leaders\u2019 gratuity resulting in unpaid tax of UGX,2,607,660 \uf0b7 The MC had outstanding receivables totaling to UGX.1, 280,357,120 for YLP, UWEP and uncollected local revenue. \uf0b7 Municipal Council outstanding commitments of UGX 170,801,502 by close of the financial year \uf0b7 I noted a number of issues in the implementation of the approved budget such as; under absorption of funds worth UGX. 5,594,339,871; under performance of the donor worth UGX 80,040,000 & shortfalls in local revenue worth UGX.3,507,045,896; \uf0b7 I noted that there was an over commitment by the Municipal council of funds worth UGX. 6,503,237,230 under the USMID project through and agreement signed with M/s China Wu Yi Co. Ltd on the 21 st April 2021. |\n|---:|-------------:|:-------------------------------|:-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 4 | Luwero DLG Opinion Unqualified | \uf0b7 I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, Over payment of salary worth UGX.150 million; unpaid salaries worth UGX.1.254 Bn and under/over remittance of employee salaries worth UGX.165,627,734 and UGX.37,026,373 respectively \uf0b7 The district did not have an approved strategic plan that is aligned to the NDP-III at the time of audit. \uf0b7 Additionally, I observed that there was delayed access to payroll by thirty-eight (38) new/transferred employees and twenty- two (22) pensioners and un-deducted PAYE from political leaders\u2019 gratuity resulting in unpaid tax of UGX.15,523,074 \uf0b7 I noted a number of issues in the implementation of the approved budget such as; under performance worth UGX. 1,317,898,459; incomplete works at Katikamu Seed Secondary School and under absorption of funds worth UGX.1.256 Bn \uf0b7 The district received off-budget financing worth UGX.1,002,619,377 directly from Ministry of Health under Result Based Financing Programme (RBF) \uf0b7 The district mischarged expenditure worth UGX.8,575,441 on wrong budget lines. \uf0b7 |", "metadata": {"page": 353, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 05. | MITYANA DLG Opinion Unqualified | \uf0b7 I noted a number of anomalies during review of the district pension & salary payrolls such as; Over payment of salaries worth UGX.2,992,554; Wrong computation of gratuity worth net overpayment of UGX. 2,271,141; payment of salaries worth UGX.4,057,892 to ten (10) staffs that were no longer in service; irregular deduction of loan instalments for three (3) staff worth UGX. 1,085,168; over and under remittance of employees\u2019 salaries worth UGX. 9,347,419 and UGX.52,480,527 respectively and payroll deductions to UCLA/UBA worth UGX. 10,193,805 \uf0b7 Additionally, I observed that there was delayed access to payroll by thirty (30) new employees and sixteen (16) pensioners; un- deducted PAYE from political leaders\u2019 gratuity resulting in unpaid tax of UGX. 12,460, 278 and unremitted PAYE worth UGX.41,763,487 \uf0b7 Failure to remit local government revenue worth UGX.49,502,388 to LLGs \uf0b7 The district did not have an approved strategic plan that is aligned to the NDP-III at the time of audit. \uf0b7 I noted issues such as incomplete works and under absorption of funds worth UGX.0.7 Bn in the implementation of the approved budget. \uf0b7 The district lacked a title of land where the health Centre is being constructed. |\n|---:|------:|:----------------------------------|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 6 | Mukono DLG Opinion Unqualified | \uf0b7 I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, Over payment of pensioners/employees worth UGX2,503,100 and UGX. 5,442,660 respectively. Underpayment worth UGX. 4,860,118; payment of salaries worth UGX.6,175,829 to nine (9) staffs that was no longer in service and irregular deduction of loan instalments for five (5) staff worth 3,165,094 \uf0b7 Additionally, I observed that there was delayed access to payroll by fourteen (14) new employees and fourteen (14) pensioners; failure to utilize wage funds of UGX.0.1 billion; un-deducted PAYE from political leaders\u2019 gratuity resulting in unpaid tax of UGX. 12,104,504 and payment of five (5) staffs and three (3) pensioners worth UGX.9,195,665 off the IPPS; over/ under remittance of employee\u2019s salary deductions worth UGX. 2,345,800 and UGX. 97,808,530 respectively. \uf0b7 I noted that 14 employees were paid a total of UGX. 2,875,407 without signed pay change reports. \uf0b7 I noted a number of issues in the implementation of the approved budget such as; incomplete works at Mukono General |", "metadata": {"page": 354, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 05. | MITYANA DLG Opinion Unqualified | \uf0b7 I noted a number of anomalies during review of the district pension & salary payrolls such as; Over payment of salaries worth UGX.2,992,554; Wrong computation of gratuity worth net overpayment of UGX. 2,271,141; payment of salaries worth UGX.4,057,892 to ten (10) staffs that were no longer in service; irregular deduction of loan instalments for three (3) staff worth UGX. 1,085,168; over and under remittance of employees\u2019 salaries worth UGX. 9,347,419 and UGX.52,480,527 respectively and payroll deductions to UCLA/UBA worth UGX. 10,193,805 \uf0b7 Additionally, I observed that there was delayed access to payroll by thirty (30) new employees and sixteen (16) pensioners; un- deducted PAYE from political leaders\u2019 gratuity resulting in unpaid tax of UGX. 12,460, 278 and unremitted PAYE worth UGX.41,763,487 \uf0b7 Failure to remit local government revenue worth UGX.49,502,388 to LLGs \uf0b7 The district did not have an approved strategic plan that is aligned to the NDP-III at the time of audit. \uf0b7 I noted issues such as incomplete works and under absorption of funds worth UGX.0.7 Bn in the implementation of the approved budget. \uf0b7 The district lacked a title of land where the health Centre is being constructed. |\n|---:|:-----------|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | Hospital and Kimenyedde Seed Secondary School; under absorption of funds worth UGX.0.4bn that was swept back to consolidated fund account and under performance worth UGX.1, 909251149; | Unnamed: 2 |\n| 1 | 7.0 | MUKONO MC Opinion Unqualified | \uf0b7 I noted a number of anomalies during review of the Municipal pension & salary payrolls such as; Failure to submit wage estimates to MoPs, payment of salaries worth UGX 11.1M to nine (9) staffs that was no longer in service and unpaid pension worth UGX.106.9M \uf0b7 Additionally, I observed that there was delayed access to payroll by four (4) new employees and seven (7) pensioners; un- deducted PAYE from political leaders\u2019 gratuity resulting in unpaid tax of UGX 2.6M and payment of fifty-four (54) staffs and one (1) pensioner worth UGX 60.5M off the IPPS \uf0b7 The Municipal Council did not have an approved strategic plan that is aligned to the NDP-III at the time of audit. \uf0b7 I noted an issue of under performance of the releases from other government units worth UGX.2,529,600,000; in the implementation of the approved budget |\n| 2 | 8.0 | Nakaseke DLG Opinion Unqualified | \uf0b7 I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit pension and gratuity estimates to MoPs, Underpayment of pension/gratuity worth UGX.104,392,407; irregular deduction of loan instalments of seven (7) employees worth UGX.7, 853,306; unpaid pension and gratuity worth UGX.77, 373,425; over and under remittance of employee salaries deductions worth UGX.51, 659,500 and UGX.3, 303,310 respectively and unpaid pension arrears worth UGX.245,882,164 \uf0b7 The district had outstanding Payables worth UGX.467,701,993 and Receivables worth UGX.1,660,675,633 by close of financial year \uf0b7 Additionally, I observed that there was delayed access to payroll by twenty-two (22) employees and twenty-five (25) pensioners; un-deducted PAYE from political leaders\u2019 gratuity resulting in unpaid tax of 14, 265,549 and payment of two (2) pensioners worth UGX.6,199,129 and 1 staff worth UGX.26,750,870 off the IPPS \uf0b7 I noted that Butalangu HCIII lacked laboratory, th\u00e9\u00e2tre and maternity ward equipment \uf0b7 I noted a number of issues in the implementation of the approved budget such as; shoddy works on roads- Kinyogoga- Kyabalongo- Kitindo 18.0Km and Kalagala- Kyamaweno- Kinyogoga 34km; incomplete works at Kalenge HC III and under absorption of funds worth UGX.0.3 billion that was swept back to consolidated fund account. |", "metadata": {"page": 355, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 09. | Nakasongola District Opinion Unqualified | \uf0b7 I noted a number of anomalies during review of the district pension & salary payrolls such as; under payment of pension worth UGX. UGX.1,510,120; Underpayment of salary worth UGX.13million; Wrong computation of gratuity worth net overpayment of two (2) pensioners worth UGX.20,784,707; payment of salaries worth UGX. 23,149,880 to eighteen (18) staffs that were no longer in service and irregular deduction of loan instalments worth UGX.307,637,65. \uf0b7 Under remittance of salary deductions worth UGX.132,371,427 \uf0b7 I noted that the district made payroll deductions of UGX.16 million, but did not remit to UCLA/UBA. \uf0b7 I noted outstanding UWEP and YLP advances worth UGX.665,481,500 by year end \uf0b7 Additionally, I observed that there was delayed access to payroll by eighteen (18) new employees and thirteen (13) pensioners and un-deducted PAYE from political leaders\u2019 gratuity resulting in unpaid tax of UGX.12,011,160 \uf0b7 The district had outstanding pension and gratuity arrears worth UGX.234,272,456 at year end. \uf0b7 I noted a number of issues in the implementation of the approved budget such as; un implemented works at a Seed School; under absorption of funds worth UGX.0.6 billion and under performance of the releases from other government units worth 169 Mn; \uf0b7 |\n|---:|------:|:-------------------------------------------|:------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 10 | Nansana MC Opinion Unqualified | \uf0b7 I noted a number of anomalies during review of the Municipal pension & salary payrolls such as; Over payment of salaries/pension worth UGX. 2,494,859 and UGX.24,488,037 respectively; Underpayment of pension worth UGX.11,791,871; and irregular deduction of loan instalments worth UGX.18,027,312. \uf0b7 Un recovered UWEP/YLP funds of UGX.899,208,480 \uf0b7 The Municipal Council did not have an approved strategic plan that is aligned to the NDP-III at the time of audit. \uf0b7 Additionally, I observed that there was delayed access to payroll by three (3) new employees and nineteen (19) pensioners; un- deducted PAYE from political leaders\u2019 gratuity resulting in unpaid tax of UGX. 3,122,640 \uf0b7 I noted a number of issues in the implementation of the approved budget such as; shoddy works on the road construction; under absorption of funds worth UGX.0.278 billion that was swept back to consolidated fund account and under performance of the releases from other government units worth |", "metadata": {"page": 356, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 09. | Nakasongola District Opinion Unqualified | \uf0b7 I noted a number of anomalies during review of the district pension & salary payrolls such as; under payment of pension worth UGX. UGX.1,510,120; Underpayment of salary worth UGX.13million; Wrong computation of gratuity worth net overpayment of two (2) pensioners worth UGX.20,784,707; payment of salaries worth UGX. 23,149,880 to eighteen (18) staffs that were no longer in service and irregular deduction of loan instalments worth UGX.307,637,65. \uf0b7 Under remittance of salary deductions worth UGX.132,371,427 \uf0b7 I noted that the district made payroll deductions of UGX.16 million, but did not remit to UCLA/UBA. \uf0b7 I noted outstanding UWEP and YLP advances worth UGX.665,481,500 by year end \uf0b7 Additionally, I observed that there was delayed access to payroll by eighteen (18) new employees and thirteen (13) pensioners and un-deducted PAYE from political leaders\u2019 gratuity resulting in unpaid tax of UGX.12,011,160 \uf0b7 The district had outstanding pension and gratuity arrears worth UGX.234,272,456 at year end. \uf0b7 I noted a number of issues in the implementation of the approved budget such as; un implemented works at a Seed School; under absorption of funds worth UGX.0.6 billion and under performance of the releases from other government units worth 169 Mn; \uf0b7 |\n|---:|:-----------|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | UGX.534,603,597; \uf0b7 Failure to prepare monthly wage, pension and gratuity performance analysis \uf0b7 The Municipal Council reported receivables balance of UGX.1,780,766,221 \uf0b7 The Municipal Council had outstanding payables of UGX. 87,603,199 by close of the financial year \uf0b7 I noted that UGX.1,131,374,846 (103%) was spent on 2km reflecting over expenditure of UGX.51,408,546. The cost variations in projects planned works affects implementation of other maintenance activities. | Unnamed: 2 |\n| 1 | 11.0 | Wakiso District Opinion Unqualified | \uf0b7 I noted a number of anomalies during review of the district pension & salary payrolls such as Underpayment of pension worth UGX.2, 010,117,938; payment of salaries worth UGX.5, 278,315 to five (5) staffs that was no longer in service; unpaid salaries UGX.8, 379,873 and accrued pension worth UGX.265,144,965 \uf0b7 The outstanding payables for pension and gratuity worth UGX.2, 405,604,903 \uf0b7 Additionally, I observed that there was delayed access to payroll by seventeen (17) pensioners; failure to utilize wage funds of UGX.0.7 Bn; un-deducted PAYE from political leaders\u2019 gratuity resulting in unpaid tax of 14, 993,898 and payment eleven (11) pensioners worth UGX.303, 639,396 off the IPPS \uf0b7 I noted a number of issues in the implementation of the approved budget such as; shoddy works at Nakitokolo HCIII; delayed works at Kasoozo HCIII; incomplete works at Wakiso Seed School; under absorption of funds worth UGX.1,108,628,816 that was swept back to consolidated fund account; under performance of the donor & releases from other government units worth UGX.6,616,905,830; |\n| 2 | 12.0 | KIRA MC Opinion Unqualified | \uf0b7 I noted a number of anomalies during review of the Municipal pension & salary payrolls such as; Failure to submit wage estimates to MoPs, Over payment of salary worth UGX. 12,367,380; Underpayment of salary worth UGX. 1,513,296; Wrong computation of gratuity worth net overpayment of UGX.23,863,854 and payment of salaries worth UGX 9,760,420 to nine (09) staffs that were no longer in service \uf0b7 I noted Over remittance of salary deductions worth UGX. 36,961,624 \uf0b7 I noted outstanding receivables worth of UGX. 3,171,846,861 \uf0b7 Additionally, I observed that there was delayed access to payroll |", "metadata": {"page": 357, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 09. | Nakasongola District Opinion Unqualified | \uf0b7 I noted a number of anomalies during review of the district pension & salary payrolls such as; under payment of pension worth UGX. UGX.1,510,120; Underpayment of salary worth UGX.13million; Wrong computation of gratuity worth net overpayment of two (2) pensioners worth UGX.20,784,707; payment of salaries worth UGX. 23,149,880 to eighteen (18) staffs that were no longer in service and irregular deduction of loan instalments worth UGX.307,637,65. \uf0b7 Under remittance of salary deductions worth UGX.132,371,427 \uf0b7 I noted that the district made payroll deductions of UGX.16 million, but did not remit to UCLA/UBA. \uf0b7 I noted outstanding UWEP and YLP advances worth UGX.665,481,500 by year end \uf0b7 Additionally, I observed that there was delayed access to payroll by eighteen (18) new employees and thirteen (13) pensioners and un-deducted PAYE from political leaders\u2019 gratuity resulting in unpaid tax of UGX.12,011,160 \uf0b7 The district had outstanding pension and gratuity arrears worth UGX.234,272,456 at year end. \uf0b7 I noted a number of issues in the implementation of the approved budget such as; un implemented works at a Seed School; under absorption of funds worth UGX.0.6 billion and under performance of the releases from other government units worth 169 Mn; \uf0b7 |\n|---:|:-----------|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | by three (3) new employees and sixteen (16) pensioners; un- deducted PAYE from political leaders\u2019 gratuity resulting in unpaid tax of UGX. 3,015,540 and payment worth UGX. 435,546,906 off the IPPS \uf0b7 failure to prepare monthly wage, pension and gratuity performance analysis \uf0b7 I noted a number of issues in the implementation of the approved budget such as; incomplete construction works; under absorption of funds worth UGX.0.16Bn that was swept back to consolidated fund account; under performance of the donor & releases from other government units worth UGX.3,402,046,314 and failure to submit quarterly monitoring reports to OPM & MoFPED \uf0b7 I noted that the Municipal Council received off-budget financing worth UGX135,974,720 for Result Based Financing (RBF) from the Ministry of Health \uf0b7 The district mischarged expenditure worth UGX. 20,821,532 on wrong budget lines. | Unnamed: 2 |\n| 1 | 13.0 | MAKINDYE SABAGABO MC Opinion Unqualified | \uf0b7 I noted a number of anomalies during review of the municipal pension & salary payrolls such as, Over payment of salary worth UGX. 8,992,140; Wrong computation of gratuity worth net underpayment of UGX. 9,709,876; payment of salaries worth UGX 20,892,893 to staffs that was no longer in service and irregular deduction of loan instalments worth UGX. 29,407,510. \uf0b7 The Municipal Council reported payables worth UGX.532,235,004 at end the financial year \uf0b7 The Municipal Council reported receivables worth UGX.750,391,890 \uf0b7 The Municipal Council did not have an approved strategic plan that is aligned to the NDP-III at the time of audit. \uf0b7 Additionally, I observed that there was delayed access to payroll by four (4) new employees and four (4) pensioners and un- deducted PAYE from political leaders\u2019 gratuity resulting in unpaid tax of UGX.3,015,540 \uf0b7 Un recovered UWEP/YLP funds worth UGX.459,332,075 \uf0b7 I noted issues in the implementation of the approved budget such as; incomplete works on Mutundwe-Kisugula-Bunamwaya road; under absorption of funds worth UGX. 0.421 billion. and under performance of the releases from other government units worth UGX.6,801,993,716 \uf0b7 The district mischarged expenditure worth UGX. 304,575,692 on wrong budget lines. |", "metadata": {"page": 358, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 09. | Nakasongola District Opinion Unqualified | \uf0b7 I noted a number of anomalies during review of the district pension & salary payrolls such as; under payment of pension worth UGX. UGX.1,510,120; Underpayment of salary worth UGX.13million; Wrong computation of gratuity worth net overpayment of two (2) pensioners worth UGX.20,784,707; payment of salaries worth UGX. 23,149,880 to eighteen (18) staffs that were no longer in service and irregular deduction of loan instalments worth UGX.307,637,65. \uf0b7 Under remittance of salary deductions worth UGX.132,371,427 \uf0b7 I noted that the district made payroll deductions of UGX.16 million, but did not remit to UCLA/UBA. \uf0b7 I noted outstanding UWEP and YLP advances worth UGX.665,481,500 by year end \uf0b7 Additionally, I observed that there was delayed access to payroll by eighteen (18) new employees and thirteen (13) pensioners and un-deducted PAYE from political leaders\u2019 gratuity resulting in unpaid tax of UGX.12,011,160 \uf0b7 The district had outstanding pension and gratuity arrears worth UGX.234,272,456 at year end. \uf0b7 I noted a number of issues in the implementation of the approved budget such as; un implemented works at a Seed School; under absorption of funds worth UGX.0.6 billion and under performance of the releases from other government units worth 169 Mn; \uf0b7 |\n|---:|:-----------|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | \uf0b7 A total of 19.1km at an estimated cost of UGX.70, 200,000 was planned to be undertaken. The audit revealed that 19.1 km were actually undertaken at a cost of UGX.152, 254,000 leading to an over expenditure of UGX. 82,054,000. \uf0b7 I noted unrecovered funds from groups worth UGX.459,332,075 | Unnamed: 2 |\n| 1 | | Masaka Branch | \uf0b7 Summary of Key Findings |\n| 2 | 1.0 | Bukomansimbi DLG Opinion Unqualified | \uf0b7 I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, Underpayment of salary worth UGX.13,134,104; payment of salaries worth UGX.5,195,665 to one (1) staff that was no longer in service; unpaid salary worth UGX.20,579,078; under payments of 5 pensioners worth UGX.1,133,789; under remittance of payroll deduction worth UGX.185,012,274; Amount worth UGX.10,081,159 wasn\u2019t remitted to UCLA/UBA and amount worth UGX.175,148,725 had not been remitted to URA \uf0b7 Additionally, I observed that there was delayed access to payroll by Sixteen (16) newly recruited/ transferred employees and Ten (10) pensioners; un-deducted PAYE from political leaders\u2019 gratuity worth UGX.33,045,600, leading to an under deduction worth UGX.26,510,404 and payment of twenty (20) staffs worth UGX.4, 725,034 off the IPPS. \uf0b7 I noted that the entity had prepared a strategic plan but the National Planning Authority had not yet approved it at the time of audit. \uf0b7 I noted a number of issues in the implementation of the approved budget such as; the shortfalls in local revenue collections of UGX 9,848,129; Donor financing worth UGX. 759,350,373; under absorption of funds worth UGX.340,000,000 that was swept back to consolidated fund account; delayed submission of quarterly monitoring reports to OPM & MoFPED and Shoddy works in construction of classroom blocks \uf0b7 The district lacked land title for land on which Bukango Seed Secondary School is situated. |", "metadata": {"page": 359, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 09. | Nakasongola District Opinion Unqualified | \uf0b7 I noted a number of anomalies during review of the district pension & salary payrolls such as; under payment of pension worth UGX. UGX.1,510,120; Underpayment of salary worth UGX.13million; Wrong computation of gratuity worth net overpayment of two (2) pensioners worth UGX.20,784,707; payment of salaries worth UGX. 23,149,880 to eighteen (18) staffs that were no longer in service and irregular deduction of loan instalments worth UGX.307,637,65. \uf0b7 Under remittance of salary deductions worth UGX.132,371,427 \uf0b7 I noted that the district made payroll deductions of UGX.16 million, but did not remit to UCLA/UBA. \uf0b7 I noted outstanding UWEP and YLP advances worth UGX.665,481,500 by year end \uf0b7 Additionally, I observed that there was delayed access to payroll by eighteen (18) new employees and thirteen (13) pensioners and un-deducted PAYE from political leaders\u2019 gratuity resulting in unpaid tax of UGX.12,011,160 \uf0b7 The district had outstanding pension and gratuity arrears worth UGX.234,272,456 at year end. \uf0b7 I noted a number of issues in the implementation of the approved budget such as; un implemented works at a Seed School; under absorption of funds worth UGX.0.6 billion and under performance of the releases from other government units worth 169 Mn; \uf0b7 |\n|---:|------:|:-------------------------------------------|:------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 2 | Kalangala DLG Opinion Unqualified | \uf0b7 I noted a number of anomalies during review of the district payroll such as; an unabsorbed balance of UGX 1.08 billion; an Over payment of salaries worth UGX 1,265,254, Underpayment of salaries of UGX.37, 719,627; Payment of salaries worth UGX. 1,480,155 to one (1) staff who had retired; under remittance of salary deductions worth UGX. 73,649,208 from employees\u2019 salaries; Deductions worth UGX. 100,753,524 relating to 57 employees without letters of under taking; unremitted deduction to UCLA/UBA worth UGX.2, 210, 654. \uf0b7 Additionally, I observed that the district did not remit deductions worth UGX.51,366,809 to URA; un-deducted PAYE from political |", "metadata": {"page": 359, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 09. | Nakasongola District Opinion Unqualified | \uf0b7 I noted a number of anomalies during review of the district pension & salary payrolls such as; under payment of pension worth UGX. UGX.1,510,120; Underpayment of salary worth UGX.13million; Wrong computation of gratuity worth net overpayment of two (2) pensioners worth UGX.20,784,707; payment of salaries worth UGX. 23,149,880 to eighteen (18) staffs that were no longer in service and irregular deduction of loan instalments worth UGX.307,637,65. \uf0b7 Under remittance of salary deductions worth UGX.132,371,427 \uf0b7 I noted that the district made payroll deductions of UGX.16 million, but did not remit to UCLA/UBA. \uf0b7 I noted outstanding UWEP and YLP advances worth UGX.665,481,500 by year end \uf0b7 Additionally, I observed that there was delayed access to payroll by eighteen (18) new employees and thirteen (13) pensioners and un-deducted PAYE from political leaders\u2019 gratuity resulting in unpaid tax of UGX.12,011,160 \uf0b7 The district had outstanding pension and gratuity arrears worth UGX.234,272,456 at year end. \uf0b7 I noted a number of issues in the implementation of the approved budget such as; un implemented works at a Seed School; under absorption of funds worth UGX.0.6 billion and under performance of the releases from other government units worth 169 Mn; \uf0b7 |\n|---:|:-----------|:-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | leaders\u2019 gratuity worth UGX.51,416,102, leading to an under deduction worth UGX UGX.11,323,785; Delays in accessing pay roll and pension payroll; payment of salaries worth UGX.14,222,733 to Nine (9) staffs who were off IPPS; \uf0b7 I noted that the entity had not prepared and approved its strategic plan by NPA and thus could not confirm if the plan is aligned to NDP 111 \uf0b7 I noted a number of issues in the implementation of the approved budget such as; Failure to quantify outputs; partial and non-implementation of planned activities delayed submission of performance reports; under performance of revenues worth UGX.867,111,016 and under absorption of funds worth UGX.675,040,597 that was swept back to consolidated fund account at the year end. \uf0b7 Mischarged funds worth UGX.357,586,292 on inappropriate budget codes | Unnamed: 2 |\n| 1 | 3.0 | Kyotera DLG Opinion Unqualified | \uf0b7 I noted a number of anomalies during review of Kyotera district payroll such as; Failure to submit wage estimates to MoPs; unabsorbed wage fund balance of UGX. 0.32 billion; Over payment of salaries worth UGX.29, 467,392; Unauthorized loan deductions worth UGX.148 million from 100 employees with no undertaking letters; un-deducted PAYE from political leaders\u2019 gratuity worth UGX 57,855,806, leading to an under deduction worth UGX.13, 730,838. \uf0b7 Additionally, I observed that there were delays in accessing salary and pension payroll; Failed to prepare monthly wage, pension and gratuity performance analysis for submission to MoPS and Payment of salaries worth UGX.7, 166,620 to Three (3) staffs who were off the IPPS. \uf0b7 The district mischarged UGX.4, 876,514 on inappropriate budget codes other than those budget for \uf0b7 I noted that the district had prepared a draft strategic plan pending approval by NPA at the time of audit; \uf0b7 I noted a number of issues in the implementation of the approved budget such as; Failure to quantify outputs; partial and non-implementation of planned activities delayed submission of performance reports; delay commencement of work by contractor under the UGIFT program; under performance of revenues worth UGX.725,450,031 and under absorption of UGX.993, 780,260 \uf0b7 Received off budget financing worth UGX.319,540,631 from Ministry of Health (MOH) \uf0b7 Not secured ownership of the land where the seed school and |", "metadata": {"page": 360, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 09. | Nakasongola District Opinion Unqualified | \uf0b7 I noted a number of anomalies during review of the district pension & salary payrolls such as; under payment of pension worth UGX. UGX.1,510,120; Underpayment of salary worth UGX.13million; Wrong computation of gratuity worth net overpayment of two (2) pensioners worth UGX.20,784,707; payment of salaries worth UGX. 23,149,880 to eighteen (18) staffs that were no longer in service and irregular deduction of loan instalments worth UGX.307,637,65. \uf0b7 Under remittance of salary deductions worth UGX.132,371,427 \uf0b7 I noted that the district made payroll deductions of UGX.16 million, but did not remit to UCLA/UBA. \uf0b7 I noted outstanding UWEP and YLP advances worth UGX.665,481,500 by year end \uf0b7 Additionally, I observed that there was delayed access to payroll by eighteen (18) new employees and thirteen (13) pensioners and un-deducted PAYE from political leaders\u2019 gratuity resulting in unpaid tax of UGX.12,011,160 \uf0b7 The district had outstanding pension and gratuity arrears worth UGX.234,272,456 at year end. \uf0b7 I noted a number of issues in the implementation of the approved budget such as; un implemented works at a Seed School; under absorption of funds worth UGX.0.6 billion and under performance of the releases from other government units worth 169 Mn; \uf0b7 |\n|---:|:-----------|:-------------------------------------------|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | health Center are being constructed | Unnamed: 2 |\n| 1 | 4.0 | Lwengo DLG Opinion Unqualified | \uf0b7 I noted a number of anomalies during review of the district payroll such as; Delay to submit wage estimates to MoPs; An unabsorbed wage funds worth UGX.1.5 billion; an under payment of salaries worth UGX 8,075,359; Accrued Pensions worth UGX.90,656,783 not yet paid; Over payment of gratuity worth UGX. 11,742,937 and under payment of gratuity amounting to UGX. 15,885,858; Payment of salaries worth UGX. 8,620,432 to Eighteen (18) staffs who had retired. \uf0b7 Additionally, I noted unauthorized loan deduction worth UGX.8 million to International Medical Link (IML); un-deducted PAYE from political leaders\u2019 gratuity worth UGX.87,948,356, leading to an under deduction worth UGX.12,070,409; Delays in accessing pay roll and pension payroll. \uf0b7 I noted that the entity had prepared a strategic plan which had not yet been approved by NPA in respect to alignment to the NDP-III; \uf0b7 I noted a number of issues in the implementation of the approved budget such as; Failure to quantify outputs; partial and non-implementation of planned activities delayed submission of performance reports; under performance of revenues worth UGX. UGX.541,868,161 and under absorption of UGX.1,952,031,565 \uf0b7 Received off budget financing worth UGX.223,549,580 from Ministry of Health without informing the PSST |\n| 2 | 5.0 | Masaka DLG Opinion Unqualified | \uf0b7 I noted that Masaka District submitted wage estimates to MoPs on 30th March 2020, which was a delay of 182 days; an unabsorbed balance of UGX 0.85 billion; under payment of UGX of salaries worth 58,950,820; under payment pension worth UGX 198,728,097 and unpaid pension of UGX 53,041,554; The District wrongly computed the gratuity benefit of 21 pensioner/beneficiary leading to over payment of UGX 1,431,442 and under payment of UGX 37,726,688; UGX. 82,631,676 was paid to 38 staff who had retired, transferred, absconded or died; an over and under remittance amounting to UGX. 14,013,953 and UGX. 12,619,869 of payroll deduction. \uf0b7 Additionally, the District made payroll loan deductions of UGX.1, 064,546,679, but did not remit UGX.10, 874,315 to UCLA/UBA; under deduction of PAYE worth UGX. 8,988,018 from payments to political leaders; noted that 30 newly recruited/ transferred employees and 41 pensioners delayed to access payroll; I noted that 24 employees were paid a total of UGX. 263,080,952 without signed pay change reports; 07 staffs and 19 pensioners were paid a total of UGX.20, 688,721 and UGX.85, 258,552 respectively off the IPPS. |", "metadata": {"page": 361, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 09. | Nakasongola District Opinion Unqualified | \uf0b7 I noted a number of anomalies during review of the district pension & salary payrolls such as; under payment of pension worth UGX. UGX.1,510,120; Underpayment of salary worth UGX.13million; Wrong computation of gratuity worth net overpayment of two (2) pensioners worth UGX.20,784,707; payment of salaries worth UGX. 23,149,880 to eighteen (18) staffs that were no longer in service and irregular deduction of loan instalments worth UGX.307,637,65. \uf0b7 Under remittance of salary deductions worth UGX.132,371,427 \uf0b7 I noted that the district made payroll deductions of UGX.16 million, but did not remit to UCLA/UBA. \uf0b7 I noted outstanding UWEP and YLP advances worth UGX.665,481,500 by year end \uf0b7 Additionally, I observed that there was delayed access to payroll by eighteen (18) new employees and thirteen (13) pensioners and un-deducted PAYE from political leaders\u2019 gratuity resulting in unpaid tax of UGX.12,011,160 \uf0b7 The district had outstanding pension and gratuity arrears worth UGX.234,272,456 at year end. \uf0b7 I noted a number of issues in the implementation of the approved budget such as; un implemented works at a Seed School; under absorption of funds worth UGX.0.6 billion and under performance of the releases from other government units worth 169 Mn; \uf0b7 |\n|---:|:-----------|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | \uf0b7 The district mischarged funds worth UGX. 15,255,772 on account codes other than those prescribed for either salary, pension or gratuity \uf0b7 I noted that the entity had had not prepared and approved the strategic plan at the time of audit; \uf0b7 I noted a number of issues in the implementation of the approved budget such as; Failure to quantify outputs; partial and non-implementation of planned activities delayed submission of performance reports; under performance of revenues worth UGX. 11,296,979,720 and under absorption of UGX. 1,258,107,623; Incomplete works at Bukakata seed Secondary School | Unnamed: 2 |\n| 1 | 6.0 | Sembabule DLG Opinion Unqualified | \uf0b7 I noted a number of anomalies during review of the district pension & salary payrolls such as; an unabsorbed balance of UGX.0.73billion; an under payment of salaries worth UGX.9, 696,016; Delays in accessing pension payroll; Failure to prepare monthly wage, pension and gratuity performance analysis; 72 staffs and 14 pensioners were paid a total of UGX.76,444,546 off the IPPS. \uf0b7 I noted that the management had prepared a strategic plan which had not yet been approved by NPA to confirm its alignment with NDP-III; \uf0b7 underperformance 275,905,089; under absorption of funds worth UGX.1,229,179,117; Partial Implantation of One (1) output with a total of two (2) activities worth UGX.0.89Bn; Late submission of performance reports; \uf0b7 I noted underfunding from URF for road maintenance worth UGX.27,517,358 that affected implementation of planned activities |\n| 2 | 7.0 | Lyantonde DLG Opinion Unqualified | \uf0b7 I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, Underpayment of pension worth UGX.27,094,530; Overpayment of Salary worth UGX.29,716,471; an unabsorbed balance of UGX.0.26 billion that was subsequently swept back to the consolidated fund account and wrong computation of gratuity benefit for four (04) pensioner worth net overpayment of UGX.4,437,740 \uf0b7 Further, the district made payment of salaries worth UGX.3,279,528 to four (4) staffs that who had either retired, transferred, absconded or died; an over and over remittance of payroll deductions worth UGX.6,685,000 and UGX.8,713,886 respectively; made unauthorized loan deductions worth UGX.736,802,204 from 400 employees that never had letters of undertaking \uf0b7 Additionally, Tax deductions worth UGX.7,073,772 had not been |", "metadata": {"page": 362, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 09. | Nakasongola District Opinion Unqualified | \uf0b7 I noted a number of anomalies during review of the district pension & salary payrolls such as; under payment of pension worth UGX. UGX.1,510,120; Underpayment of salary worth UGX.13million; Wrong computation of gratuity worth net overpayment of two (2) pensioners worth UGX.20,784,707; payment of salaries worth UGX. 23,149,880 to eighteen (18) staffs that were no longer in service and irregular deduction of loan instalments worth UGX.307,637,65. \uf0b7 Under remittance of salary deductions worth UGX.132,371,427 \uf0b7 I noted that the district made payroll deductions of UGX.16 million, but did not remit to UCLA/UBA. \uf0b7 I noted outstanding UWEP and YLP advances worth UGX.665,481,500 by year end \uf0b7 Additionally, I observed that there was delayed access to payroll by eighteen (18) new employees and thirteen (13) pensioners and un-deducted PAYE from political leaders\u2019 gratuity resulting in unpaid tax of UGX.12,011,160 \uf0b7 The district had outstanding pension and gratuity arrears worth UGX.234,272,456 at year end. \uf0b7 I noted a number of issues in the implementation of the approved budget such as; un implemented works at a Seed School; under absorption of funds worth UGX.0.6 billion and under performance of the releases from other government units worth 169 Mn; \uf0b7 |\n|---:|:-----------|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | remitted to URA; un-deducted PAYE from political leaders\u2019 gratuity resulting in unpaid tax of A UGX.8,109,728; Twenty- Seven (27) employees recruited did not access the payroll and delays in accessing payroll and pension payroll. \uf0b7 The district mischarged funds worth UGX.5,870,000 on account code other than those prescribed salary, pension and gratuity; \uf0b7 The District paid Seventeen (17) employees worth UGX.22, 846,471 without signed pay change reports; failed to prepare monthly wage, pension and gratuity performance analysis and salaries payment worth UGX.85, 678,850 was paid to Seven (7) staffs off the IPPS. \uf0b7 I noted that the entity had prepared its strategic plan but it was not yet approved by NPA \uf0b7 Under performance worth; under absorption worth; Late submission of Reports; \uf0b7 I noted a number of issues in the implementation of the approved budget such as; Failure to quantify outputs; partial and non-implementation of planned activities delayed submission of performance reports; under performance of revenues worth UGX. 68,650,450 and under absorption of UGX.773,177,804 | Unnamed: 2 |\n| 1 | 8.0 | Kassanda DLG Opinion Unqualified | \uf0b7 I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, an unabsorbed balance of UGX.0.20 billion; unpaid accrued pensions worth UGX.89,374,764;Payment of salaries worth UGX.29,042,083 to Eighteen (18) staffs who had either retired, transferred, absconded or died; an over and under remittance of deductions worth UGX.80,614,103 and UGX.11,056,051 respectively; made unauthorized loan deductions worth UGX.684,121,646 from 271 employees that neither had letters of undertaking nor letters of consent. \uf0b7 Additionally, I observed a deduction of worth UGX.31,937,764 from 26 employees who were not in approval and deduction report and a deductions of UGX.63,539,341 from 51 employees who were not in active deduction report but were in approval report; 15 employees had irregular loan end dates; Delays in accessing payroll and pension payroll; Payment of Sixteen (16) staffs and Six (06) pensioners worth UGX.205,954,862 off the IPPS; and payments worth UGX.47,984,473 off the payroll to 33 employees. \uf0b7 I noted that the entity had not prepared and approved a strategic plan that is aligned to the NDP-III at the time of audit; \uf0b7 I noted a number issues in the budget performance such as |", "metadata": {"page": 363, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 09. | Nakasongola District Opinion Unqualified | \uf0b7 I noted a number of anomalies during review of the district pension & salary payrolls such as; under payment of pension worth UGX. UGX.1,510,120; Underpayment of salary worth UGX.13million; Wrong computation of gratuity worth net overpayment of two (2) pensioners worth UGX.20,784,707; payment of salaries worth UGX. 23,149,880 to eighteen (18) staffs that were no longer in service and irregular deduction of loan instalments worth UGX.307,637,65. \uf0b7 Under remittance of salary deductions worth UGX.132,371,427 \uf0b7 I noted that the district made payroll deductions of UGX.16 million, but did not remit to UCLA/UBA. \uf0b7 I noted outstanding UWEP and YLP advances worth UGX.665,481,500 by year end \uf0b7 Additionally, I observed that there was delayed access to payroll by eighteen (18) new employees and thirteen (13) pensioners and un-deducted PAYE from political leaders\u2019 gratuity resulting in unpaid tax of UGX.12,011,160 \uf0b7 The district had outstanding pension and gratuity arrears worth UGX.234,272,456 at year end. \uf0b7 I noted a number of issues in the implementation of the approved budget such as; un implemented works at a Seed School; under absorption of funds worth UGX.0.6 billion and under performance of the releases from other government units worth 169 Mn; \uf0b7 |\n|---:|:-----------|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | Underperformance of funds worth UGX.243,523,703; Under absorption of funds worth UGX.744,143,791; Failure to quantify outputs; partial and non-implementation and late submission of performance reports. | Unnamed: 2 |\n| 1 | 9.0 | Mubende DLG Opinion Unqualified | \uf0b7 I noted that the District delayed to submit wage estimates to MoPs; An under absorption worth UGX.1.36 Billion and was subsequently swept back to the consolidated fund account; unpaid salaries worth UGX.9,974,064; Over payment of one (1) pensioner worth UGX.2,420,407; Unpaid salaries & pension worth UGX.163,350,521; Under payments worth UGX.765,835 to Twenty (20) staffs using wrong salary scale; Payment of salaries worth UGX.17,448,575 to Fourteen (14) staffs who had either retired, transferred, absconded or died; \uf0b7 Additionally, I observed an under remittance of salary deduction worth UGX.246,546,709; Made unauthorized loan deductions worth UGX.123,209,904 from 30 employees that neither had letters of undertaking nor evidence of consent; Delays in accessing payroll and pension payroll; Residual Arrear payments worth UGX.380,760,596 paid to 17 staffs who were not part of MOFPED approved schedule; Unpaid pension to Six (6) pensioners worth UGX.118,064,322; Failed to prepare monthly wage, pension and gratuity performance analysis for submission to MoPS; Payment of Five (5) staffs worth UGX.4,831,538 off the IPPS; \uf0b7 I noted that the district had prepared its strategic plan but had not had its plan approved by NPA at the time of audit; \uf0b7 I noted a number issues in the budget performance such as Underperformance of funds worth UGX.117,978,419; Under absorption of funds worth UGX.1,625,514,838; Failure to quantify outputs; partial and non-implementation and late submission of performance reports. |", "metadata": {"page": 364, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 09. | Nakasongola District Opinion Unqualified | \uf0b7 I noted a number of anomalies during review of the district pension & salary payrolls such as; under payment of pension worth UGX. UGX.1,510,120; Underpayment of salary worth UGX.13million; Wrong computation of gratuity worth net overpayment of two (2) pensioners worth UGX.20,784,707; payment of salaries worth UGX. 23,149,880 to eighteen (18) staffs that were no longer in service and irregular deduction of loan instalments worth UGX.307,637,65. \uf0b7 Under remittance of salary deductions worth UGX.132,371,427 \uf0b7 I noted that the district made payroll deductions of UGX.16 million, but did not remit to UCLA/UBA. \uf0b7 I noted outstanding UWEP and YLP advances worth UGX.665,481,500 by year end \uf0b7 Additionally, I observed that there was delayed access to payroll by eighteen (18) new employees and thirteen (13) pensioners and un-deducted PAYE from political leaders\u2019 gratuity resulting in unpaid tax of UGX.12,011,160 \uf0b7 The district had outstanding pension and gratuity arrears worth UGX.234,272,456 at year end. \uf0b7 I noted a number of issues in the implementation of the approved budget such as; un implemented works at a Seed School; under absorption of funds worth UGX.0.6 billion and under performance of the releases from other government units worth 169 Mn; \uf0b7 |\n|---:|------:|:-------------------------------------------|:------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 10 | Gomba Opinion Unqualified | \uf0b7 I noted that the District delayed to submit wage estimates to MoPS; an unabsorbed balance of UGX.0.8 billion; over payment of UGX.649, 200 to Mujabi James; an under payment of UGX.1, 764,651; Unpaid salaries worth UGX.1, 176,393; noted that the District had an outstanding Accrual worth UGX.17, 271,309 at the end of the year; the District made unauthorized loan deductions worth UGX.7, 592,724 from 4 employees that neither had letters of undertaking nor existed in the reports. \uf0b7 Additionally, I observed delays in accessing payroll and pension payroll; I noted that five (05) ineligible persons accessed the payroll using forged Education Service Commission (ESC) minutes; Twenty Seven (27) staffs were paid worth UGX.31, 972,130 off the IPPS. \uf0b7 I noted that the entity had not had the strategic plan approved at the time of audit \uf0b7 I noted a number of issues in the implementation of budget such |", "metadata": {"page": 364, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 09. | Nakasongola District Opinion Unqualified | \uf0b7 I noted a number of anomalies during review of the district pension & salary payrolls such as; under payment of pension worth UGX. UGX.1,510,120; Underpayment of salary worth UGX.13million; Wrong computation of gratuity worth net overpayment of two (2) pensioners worth UGX.20,784,707; payment of salaries worth UGX. 23,149,880 to eighteen (18) staffs that were no longer in service and irregular deduction of loan instalments worth UGX.307,637,65. \uf0b7 Under remittance of salary deductions worth UGX.132,371,427 \uf0b7 I noted that the district made payroll deductions of UGX.16 million, but did not remit to UCLA/UBA. \uf0b7 I noted outstanding UWEP and YLP advances worth UGX.665,481,500 by year end \uf0b7 Additionally, I observed that there was delayed access to payroll by eighteen (18) new employees and thirteen (13) pensioners and un-deducted PAYE from political leaders\u2019 gratuity resulting in unpaid tax of UGX.12,011,160 \uf0b7 The district had outstanding pension and gratuity arrears worth UGX.234,272,456 at year end. \uf0b7 I noted a number of issues in the implementation of the approved budget such as; un implemented works at a Seed School; under absorption of funds worth UGX.0.6 billion and under performance of the releases from other government units worth 169 Mn; \uf0b7 |\n|---:|:-----------|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | as; Underperformance worth UGX.113,179,395; under absorption of funds worth UGX.1,088,912,187 that was subsequently swept back to the consolidated fund account; Late submission of reports. | Unnamed: 2 |\n| 1 | | Hoima Branch | Summary of Key Findings |\n| 2 | 1.0 | Buliisa DLG Opinion Unqualified | \uf0b7 I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, Over payment of salary worth UGX.516,940 to one (1) employee; payment of salaries worth UGX.962,591 to two (2) staffs that was no longer in service; unauthorized loan deductions worth UGX.19,720,463 from 20 employees and net under payment of payroll deductions worth UGX.218,852,589 \uf0b7 Additionally, I observed that there was delayed access to payroll by twelve (12) new employees and three (3) pensioners; failure to utilize wage funds of UGX.1.39Bn; un- deducted PAYE from political leaders\u2019 gratuity resulting in unpaid tax of UGX.8,971,020 and payment of worth UGX.1,646,800 off the IPPS \uf0b7 I noted a number of issues in the implementation of the approved budget such as; Failure to quantify outputs that affected measurement of performance, partial or non- implementation of planned activities, late submission of quarterly reports; under absorption of funds worth UGX.721,028,206 that was swept back to consolidated fund account; under performance of the donor & releases from the government worth UGX.1,359,130,302 \uf0b7 I noted that the district had prepared and submitted the Strategic plan to NPA but was still pending approval. \uf0b7 In regards to Covid-19 funds, I noted that out of the total receipts of UGX.81, 933,334, the district absorbed UGX.81, 933,334, representing absorption level of 100%. Additionally, I noted that the distribution of many of non-cash items delayed. |", "metadata": {"page": 365, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 09. | Nakasongola District Opinion Unqualified | \uf0b7 I noted a number of anomalies during review of the district pension & salary payrolls such as; under payment of pension worth UGX. UGX.1,510,120; Underpayment of salary worth UGX.13million; Wrong computation of gratuity worth net overpayment of two (2) pensioners worth UGX.20,784,707; payment of salaries worth UGX. 23,149,880 to eighteen (18) staffs that were no longer in service and irregular deduction of loan instalments worth UGX.307,637,65. \uf0b7 Under remittance of salary deductions worth UGX.132,371,427 \uf0b7 I noted that the district made payroll deductions of UGX.16 million, but did not remit to UCLA/UBA. \uf0b7 I noted outstanding UWEP and YLP advances worth UGX.665,481,500 by year end \uf0b7 Additionally, I observed that there was delayed access to payroll by eighteen (18) new employees and thirteen (13) pensioners and un-deducted PAYE from political leaders\u2019 gratuity resulting in unpaid tax of UGX.12,011,160 \uf0b7 The district had outstanding pension and gratuity arrears worth UGX.234,272,456 at year end. \uf0b7 I noted a number of issues in the implementation of the approved budget such as; un implemented works at a Seed School; under absorption of funds worth UGX.0.6 billion and under performance of the releases from other government units worth 169 Mn; \uf0b7 |\n|---:|------:|:-------------------------------------------|:------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 2 | Hoima MC Opinion Unqualified | \uf0b7 I noted a number of anomalies during review of the Municipal pension & salary payrolls such as; Failure to submit wage estimates to MoPs, Over payment of salary worth UGX UGX.7,453,884 to (3) staffs; under payment of funds worth UGX.29,604,189 and unauthorized loan deductions worth UGX.37,990,205 from 35 employees \uf0b7 Additionally, I observed that there was delayed access to payroll by seven (7) new employees and ten (10) pensioners; failure to utilize wage funds of UGX.0.28Bn; un-deducted PAYE from political leaders\u2019 gratuity resulting in unpaid tax of UGX.12,771,000 and payment of two (2) staffs & seven(7) pensioners a total of UGX.368,827,383 off the IPPS \uf0b7 I noted a number of issues in the implementation of the |", "metadata": {"page": 365, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 09. | Nakasongola District Opinion Unqualified | \uf0b7 I noted a number of anomalies during review of the district pension & salary payrolls such as; under payment of pension worth UGX. UGX.1,510,120; Underpayment of salary worth UGX.13million; Wrong computation of gratuity worth net overpayment of two (2) pensioners worth UGX.20,784,707; payment of salaries worth UGX. 23,149,880 to eighteen (18) staffs that were no longer in service and irregular deduction of loan instalments worth UGX.307,637,65. \uf0b7 Under remittance of salary deductions worth UGX.132,371,427 \uf0b7 I noted that the district made payroll deductions of UGX.16 million, but did not remit to UCLA/UBA. \uf0b7 I noted outstanding UWEP and YLP advances worth UGX.665,481,500 by year end \uf0b7 Additionally, I observed that there was delayed access to payroll by eighteen (18) new employees and thirteen (13) pensioners and un-deducted PAYE from political leaders\u2019 gratuity resulting in unpaid tax of UGX.12,011,160 \uf0b7 The district had outstanding pension and gratuity arrears worth UGX.234,272,456 at year end. \uf0b7 I noted a number of issues in the implementation of the approved budget such as; un implemented works at a Seed School; under absorption of funds worth UGX.0.6 billion and under performance of the releases from other government units worth 169 Mn; \uf0b7 |\n|---:|:-----------|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | approved budget such as; Failure to quantify outputs that affected measurement of performance, partial or non- implementation of planned activities; Incomplete road works under absorption of funds worth UGX.29,660,979,614 that was swept back to consolidated fund account; under performance of the donor & releases from the government worth UGX.2,515,468,499 \uf0b7 The district mischarged expenditure worth UGX.45, 235,346 on wrong budget lines. \uf0b7 I noted that UGX.5,060,453 was paid as residual salary arrears to 5 employees who had not missed salaries in the previous financial year(s) \uf0b7 Payment of funds worth UGX.33,792,884 without authorization of the pay change reports \uf0b7 I noted that the entity\u2019s strategic plan was still in draft form and not approved to confirm that is aligned to the NDP-III at the time of audit. \uf0b7 UGX.19,240,000 remained unaccounted for at the close of the financial year | Unnamed: 2 |\n| 1 | 3.0 | Hoima DLG Opinion Unqualified | \uf0b7 I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, over payment of salary worth UGX. 1,380,792 to staffs; under payment of funds worth UGX.; payment of salaries worth UGX.27,668,323 were paid to twenty (20) staffs and eleven (11) pensioners were paid a total of UGX.251,898,925 off the IPPS that was no longer in service unauthorized loan deductions worth UGX.721,600,940 from 432 employees \uf0b7 Additionally, I observed that there was delayed access to payroll by ten (10) new employees and eleven (11) pensioners; failure to utilize wage funds of UGX 16.16Bn; un- deducted PAYE from political leaders\u2019 gratuity resulting in unpaid tax of UGX.7,763,400 \uf0b7 The district mischarged expenditure worth UGX.180, 754,659 on wrong budget lines. \uf0b7 I noted that the verification forms and copies of the verification cards for 126 employees and 43 pensioners were not on the respective personal files \uf0b7 I noted a number of issues in the implementation of the approved budget such as; partial implementation of planned activities; partially implemented ; late submission of quarterly reports; under absorption of funds worth UGX.1.9Bn that was |", "metadata": {"page": 366, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 09. | Nakasongola District Opinion Unqualified | \uf0b7 I noted a number of anomalies during review of the district pension & salary payrolls such as; under payment of pension worth UGX. UGX.1,510,120; Underpayment of salary worth UGX.13million; Wrong computation of gratuity worth net overpayment of two (2) pensioners worth UGX.20,784,707; payment of salaries worth UGX. 23,149,880 to eighteen (18) staffs that were no longer in service and irregular deduction of loan instalments worth UGX.307,637,65. \uf0b7 Under remittance of salary deductions worth UGX.132,371,427 \uf0b7 I noted that the district made payroll deductions of UGX.16 million, but did not remit to UCLA/UBA. \uf0b7 I noted outstanding UWEP and YLP advances worth UGX.665,481,500 by year end \uf0b7 Additionally, I observed that there was delayed access to payroll by eighteen (18) new employees and thirteen (13) pensioners and un-deducted PAYE from political leaders\u2019 gratuity resulting in unpaid tax of UGX.12,011,160 \uf0b7 The district had outstanding pension and gratuity arrears worth UGX.234,272,456 at year end. \uf0b7 I noted a number of issues in the implementation of the approved budget such as; un implemented works at a Seed School; under absorption of funds worth UGX.0.6 billion and under performance of the releases from other government units worth 169 Mn; \uf0b7 |\n|---:|:-----------|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | swept back to consolidated fund account; \uf0b7 Delayed submission of regular reports \uf0b7 I noted that the Hoima district did not have an approved strategic plan that is aligned to NDP-III and therefore lacks a certificate of compliance issued by National Planning Authority. \uf0b7 Regarding Covid-19 funds, Out of the total receipts of UGX.111, 450,000, the District absorbed UGX.111, 450,000 representing an absorption level of 100%. | Unnamed: 2 |\n| 1 | 4.0 | Hoima RRH Opinion Unqualified | \uf0b7 I noted a number of anomalies during review of the hospital pension & salary payrolls such as; Failure to submit wage estimates by the hospital to MoPs, over payment of pension worth UGX.3, 138,332. ; Underpayment of worth 2,282,632; The deductions were from nine (9) employees\u2019 salaries worth UGX18,438,987 \uf0b7 Additionally, I observed that there was delayed access to payroll by twenty (20) new employees and four (4) pensioners;;un paid pensioners worth UGX 13372393.un-deducted PAYE from political leaders\u2019 gratuity resulting in unpaid tax of UGX.13372393 Failure to quantify outputs, \uf0b7 I noted a number of issues in the implementation of the approved budget such as; failure to quantify outputs, partial implementation or non-implementation of planned activities under absorption of funds worth UGX.1.78Bn that was swept back to consolidated fund account; under performance of the donor & releases from other government units worth UGX.0.03Bn; delayed submission of quarterly monitoring reports to OPM & MoFPED \uf0b7 The hospital mischarged expenditure worth UGX.38 million on wrong budget lines. \uf0b7 I noted that the entity\u2019s strategic plan was still in draft form and not approved to confirm that is aligned to the NDP-III at the time of audit. \uf0b7 Failure to quantify outputs, partial implementation or non- implementation of planned activities |\n| 2 | 5.0 | Kagadi DLG Opinion Unqualified | \uf0b7 I noted a number of anomalies during review of the district pension & salary payrolls such as; Wrong computation of gratuity worth net overpayment of UGX. 1,8273,030; payment of salaries to three(3) staffs that was no longer in service and under remittance worth UGX. 35,519,020; and payment of two (2) staffs worth UGX. 3450720 off the IPPS \uf0b7 I noted a number of issues in the implementation of the approved budget such as; unabsorbed balance worth UGX 1.5Bn partial implementation of funds worth UGX 0.155Bn under |", "metadata": {"page": 367, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 09. | Nakasongola District Opinion Unqualified | \uf0b7 I noted a number of anomalies during review of the district pension & salary payrolls such as; under payment of pension worth UGX. UGX.1,510,120; Underpayment of salary worth UGX.13million; Wrong computation of gratuity worth net overpayment of two (2) pensioners worth UGX.20,784,707; payment of salaries worth UGX. 23,149,880 to eighteen (18) staffs that were no longer in service and irregular deduction of loan instalments worth UGX.307,637,65. \uf0b7 Under remittance of salary deductions worth UGX.132,371,427 \uf0b7 I noted that the district made payroll deductions of UGX.16 million, but did not remit to UCLA/UBA. \uf0b7 I noted outstanding UWEP and YLP advances worth UGX.665,481,500 by year end \uf0b7 Additionally, I observed that there was delayed access to payroll by eighteen (18) new employees and thirteen (13) pensioners and un-deducted PAYE from political leaders\u2019 gratuity resulting in unpaid tax of UGX.12,011,160 \uf0b7 The district had outstanding pension and gratuity arrears worth UGX.234,272,456 at year end. \uf0b7 I noted a number of issues in the implementation of the approved budget such as; un implemented works at a Seed School; under absorption of funds worth UGX.0.6 billion and under performance of the releases from other government units worth 169 Mn; \uf0b7 |\n|---:|:-----------|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | absorption of funds worth UGX. 12,314,490,181 that was swept back to consolidated fund account; under performance of the donor & releases from other government units 3,329,413,255; delayed submission of quarterly monitoring reports to OPM & MoFPED \uf0b7 I noted that the entity\u2019s strategic plan was still in draft form and not approved to confirm that is aligned to the NDP-III at the time of audit. \uf0b7 I noted a delay of 9 days for the month of July in the remittance of PAYE deductions to URA | Unnamed: 2 |\n| 1 | 6.0 | Kakumiro DLG Opinion Unqualified | \uf0b7 I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs; Underpayment of salaries worth UGX. 10,643,039 to employees underpayment pension worth UGX.4, 511,350; under remittance worth UGX.146, 308,447 and payment of three (3) staffs worth UGX.8,763,215 off the IPPS \uf0b7 I noted a number of issues in the implementation of the approved budget such as; unspent balance worth UGX 2275637090 ; under absorption of funds worth UGX.9,191,378,616 that was swept back to consolidated fund account; partial or non-implementation of planned activities worth 0.37Bn under performance of the donor & releases from other government units worth UGX.0.4Bn; delayed submission of quarterly monitoring reports to OPM & MoFPED unabsorbed funds worth UGX.138,823,634; delayed completion of construction works at St Matia Mulumba seed secondary school. \uf0b7 I noted that the entity\u2019s strategic plan was still in draft form and not approved to confirm that is aligned to the NDP-III at the time of audit. \uf0b7 I noted that the District did not remit PAYE deductions for the month of May worth UGX.138, 823,634 to URA. \uf0b7 I noted that the district had ongoing service delivery |", "metadata": {"page": 368, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 09. | Nakasongola District Opinion Unqualified | \uf0b7 I noted a number of anomalies during review of the district pension & salary payrolls such as; under payment of pension worth UGX. UGX.1,510,120; Underpayment of salary worth UGX.13million; Wrong computation of gratuity worth net overpayment of two (2) pensioners worth UGX.20,784,707; payment of salaries worth UGX. 23,149,880 to eighteen (18) staffs that were no longer in service and irregular deduction of loan instalments worth UGX.307,637,65. \uf0b7 Under remittance of salary deductions worth UGX.132,371,427 \uf0b7 I noted that the district made payroll deductions of UGX.16 million, but did not remit to UCLA/UBA. \uf0b7 I noted outstanding UWEP and YLP advances worth UGX.665,481,500 by year end \uf0b7 Additionally, I observed that there was delayed access to payroll by eighteen (18) new employees and thirteen (13) pensioners and un-deducted PAYE from political leaders\u2019 gratuity resulting in unpaid tax of UGX.12,011,160 \uf0b7 The district had outstanding pension and gratuity arrears worth UGX.234,272,456 at year end. \uf0b7 I noted a number of issues in the implementation of the approved budget such as; un implemented works at a Seed School; under absorption of funds worth UGX.0.6 billion and under performance of the releases from other government units worth 169 Mn; \uf0b7 |\n|---:|------:|:-------------------------------------------|:------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 7 | Kibaale DLG Opinion Unqualified | \uf0b7 I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, Over payment of pension worth UGX.288, 866,531; Underpayment of pension worth UGX.4,082,68 underpayment of pensioners UGX.387,086,804; payment of salaries worth UGX.20,837,768 to fifteen (15) staffs that was no longer in service \uf0b7 I noted a number of issues in the implementation of the approved budget such as unspent balance worth UGX.1,861,400,617; underperformance of budgets worth UGX.14,350,250,339; delayed submission of quarterly monitoring reports to OPM & MoFPED; delayed completion of construction works at Nyamarwa Seed School secondary school; |", "metadata": {"page": 368, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 09. | Nakasongola District Opinion Unqualified | \uf0b7 I noted a number of anomalies during review of the district pension & salary payrolls such as; under payment of pension worth UGX. UGX.1,510,120; Underpayment of salary worth UGX.13million; Wrong computation of gratuity worth net overpayment of two (2) pensioners worth UGX.20,784,707; payment of salaries worth UGX. 23,149,880 to eighteen (18) staffs that were no longer in service and irregular deduction of loan instalments worth UGX.307,637,65. \uf0b7 Under remittance of salary deductions worth UGX.132,371,427 \uf0b7 I noted that the district made payroll deductions of UGX.16 million, but did not remit to UCLA/UBA. \uf0b7 I noted outstanding UWEP and YLP advances worth UGX.665,481,500 by year end \uf0b7 Additionally, I observed that there was delayed access to payroll by eighteen (18) new employees and thirteen (13) pensioners and un-deducted PAYE from political leaders\u2019 gratuity resulting in unpaid tax of UGX.12,011,160 \uf0b7 The district had outstanding pension and gratuity arrears worth UGX.234,272,456 at year end. \uf0b7 I noted a number of issues in the implementation of the approved budget such as; un implemented works at a Seed School; under absorption of funds worth UGX.0.6 billion and under performance of the releases from other government units worth 169 Mn; \uf0b7 |\n|---:|:-----------|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | under deduction of PAYE to URA worth 20,837,768 \uf0b7 I noted that the entity\u2019s strategic plan was still in draft form and not approved to confirm that is aligned to the NDP-III at the time of audit. \uf0b7 I noted a number of issues in the implementation of the approved budget such as unspent balance worthUGX.1;861;400,617;unabsorbed funds worth UG.1.35 billion; delayed completion of construction works at Nyamarwa Seed School secondary school; under deduction of PAYE to URA worth 20,837,768 \uf0b7 I noted that funds amounting to UGX.24, 910,982 related to gratuity expense but were charged on pension arrears code. \uf0b7 I reviewed the effectiveness and reliability of the IPPS/NID staff/pensioner/beneficiaries\u2019 verification interface and noted in- adequate sensitization and training in the use and navigation of the system, System was not reliable and effective and operational challenges were encountered; such as delayed update of changes in employee details by NIRA, NID interface does not show facial images for some employees and network challenges. | Unnamed: 2 |\n| 1 | 8 | Kikuube DLG Opinion Unqualified | \uf0b7 I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, Over payment of salaries worth UGX.4,919,860; Salaries worth UGX. 5,747,552 to six (6) staffs that was no longer in service and payment of twenty two (22) staffs worth UGX.198,611,180 off the IPPS \uf0b7 I noted a number of issues in the implementation of the approved budget such as; under absorption of funds; under performance of the donor & releases from other government units worth UGX.9.19Bn; partial implementation of funds worth UGX. o.95 delayed submission of quarterly monitoring reports to OPM & MoFPED \uf0b7 I noted that whereas UGX.756,788,804 was deducted from employees\u2019 salaries to be remitted to different beneficiaries, UGX.758,906,480 was remitted leading to an over and under remittance of UGX.2,117,676 \uf0b7 I noted that the entity\u2019s strategic plan was still in draft form and not approved to confirm that is aligned to the NDP-III at the time of audit. \uf0b7 Payments to ten (10) employees worth 1457195 without signed a pay change report \uf0b7 I noted that UGX.68, 527,000 remained unaccounted for at the close of the financial year. \uf0b7 I noted delayed completion of Nyairongo Seed Secondary School |", "metadata": {"page": 369, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 09. | Nakasongola District Opinion Unqualified | \uf0b7 I noted a number of anomalies during review of the district pension & salary payrolls such as; under payment of pension worth UGX. UGX.1,510,120; Underpayment of salary worth UGX.13million; Wrong computation of gratuity worth net overpayment of two (2) pensioners worth UGX.20,784,707; payment of salaries worth UGX. 23,149,880 to eighteen (18) staffs that were no longer in service and irregular deduction of loan instalments worth UGX.307,637,65. \uf0b7 Under remittance of salary deductions worth UGX.132,371,427 \uf0b7 I noted that the district made payroll deductions of UGX.16 million, but did not remit to UCLA/UBA. \uf0b7 I noted outstanding UWEP and YLP advances worth UGX.665,481,500 by year end \uf0b7 Additionally, I observed that there was delayed access to payroll by eighteen (18) new employees and thirteen (13) pensioners and un-deducted PAYE from political leaders\u2019 gratuity resulting in unpaid tax of UGX.12,011,160 \uf0b7 The district had outstanding pension and gratuity arrears worth UGX.234,272,456 at year end. \uf0b7 I noted a number of issues in the implementation of the approved budget such as; un implemented works at a Seed School; under absorption of funds worth UGX.0.6 billion and under performance of the releases from other government units worth 169 Mn; \uf0b7 |\n|---:|:-----------|:-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | \uf0b7 Under Development Response to Displacement Impacts Project (DRDIP), I noted that Procurements worth UGX.2,524,177,097 were undertaken using community procurement method which were not reported in quarterly reports submitted to the Authority. Besides, they were not included in the approved integrated annual work plan of the District. | Unnamed: 2 |\n| 1 | 9.0 | Kyankwanzi Opinion Unqualified | \uf0b7 I noted a number of anomalies during review of the district pension & salary payrolls such as; Underpayment of pension worth UGX.2,819,483 and payment of eight (8) staffs worth UGX.8,810,706 off the IPPS \uf0b7 I noted a number of issues in the implementation of the approved budget such as; failure to quantify outputs, partial and non-implementation of planned activities; unabsorbed wage fund balance worth UGX.0.84Bn; under deduction of PAYE worth UGX.8, 593, 471; unabsorbed balance worth UGX. 69,083,003; under absorption of funds worth UGX.198,251,670 that was swept back to consolidated fund account; under performance under performance worth UGX 1.11Bn. \uf0b7 The district mischarged expenditure worth UGX.275, 847,736 on wrong budget lines. \uf0b7 The district mischarged expenditure worth UGX.50, 174,102 on wrong budget lines. \uf0b7 I noted outstanding pensioners arrears worth UGX.40,454,541 \uf0b7 I noted that the entity did not prepare monthly wage, pension and gratuity performance analysis and did not submit quarterly returns on payroll to MoPS. \uf0b7 I noted that the entity had prepared and approved the strategic plan but it was not certified by National Planning Authority. |\n| 2 | 10.0 | Masindi DLG Opinion Unqualified | \uf0b7 I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, Over and under payment of salaries; Overpayment of pension worth UG.37, 427,367 and under payment of pension worth UGX.870,105,650; payment of salaries to nine (9) staffs but were no longer in service. \uf0b7 I noted a number of issues in the implementation of the approved budget such as; unabsorbed balance worth 1,240,110,296; under performance of the donor & releases from other government units worth UGX.164Bn that was swept back to consolidated fund account; partial and non-implementation of planned activities; delayed submission of quarterly monitoring reports to OPM & MoFPED and payment of worth 208,659,885 eleven staff(11) off the IPPS \uf0b7 I noted that whereas UGX.3,312,092,285 was deducted from |", "metadata": {"page": 370, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 09. | Nakasongola District Opinion Unqualified | \uf0b7 I noted a number of anomalies during review of the district pension & salary payrolls such as; under payment of pension worth UGX. UGX.1,510,120; Underpayment of salary worth UGX.13million; Wrong computation of gratuity worth net overpayment of two (2) pensioners worth UGX.20,784,707; payment of salaries worth UGX. 23,149,880 to eighteen (18) staffs that were no longer in service and irregular deduction of loan instalments worth UGX.307,637,65. \uf0b7 Under remittance of salary deductions worth UGX.132,371,427 \uf0b7 I noted that the district made payroll deductions of UGX.16 million, but did not remit to UCLA/UBA. \uf0b7 I noted outstanding UWEP and YLP advances worth UGX.665,481,500 by year end \uf0b7 Additionally, I observed that there was delayed access to payroll by eighteen (18) new employees and thirteen (13) pensioners and un-deducted PAYE from political leaders\u2019 gratuity resulting in unpaid tax of UGX.12,011,160 \uf0b7 The district had outstanding pension and gratuity arrears worth UGX.234,272,456 at year end. \uf0b7 I noted a number of issues in the implementation of the approved budget such as; un implemented works at a Seed School; under absorption of funds worth UGX.0.6 billion and under performance of the releases from other government units worth 169 Mn; \uf0b7 |\n|---:|:-----------|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | employees\u2019 salaries to be remitted to different beneficiaries, only UGX.3,309,501,072 was remitted leading to a variance amounting to UGX.19,992,521. \uf0b7 I noted delays in the remittance of PAYE deductions to URA for 2 months the months \uf0b7 I reviewed the effectiveness and reliability of the IPPS/NID staff/pensioner/beneficiaries\u2019 verification interface and noted in- adequate sensitization and training in the use and navigation of the system, system was not reliable and effective and operational challenges were encountered; such as delays to capture changes on NIRA by IPPS. \uf0b7 I noted that the District prepared a work plan to guide the utilization of funds that were received. | Unnamed: 2 |\n| 1 | 11.0 | Masindi MC Opinion Qualified | \uf0b7 I noted a number of anomalies during review of the municipal pension & salary payrolls such as; Failure to submit wage estimates to MoPs; over and underpayment of salaries worth UGX.33,863,477 to seventeen (17) staffs that was no longer in service and irregular deduction of loan instalments worth UGX.9, 061,174; under deduction of PAYE amounting to 11,411,400 and 19 staff and 13 pensioners were paid a total of UGX.315,332,447 off IPPS \uf0b7 I noted a number of issues in the implementation of the approved budget such as; under absorption of funds worth UGX.1, 362,275,792 that was swept back to consolidated fund account; partial or non-implementation of planned activities; under performance of the donor & releases from other government units worth UGX. 282,855,823; delayed submission of quarterly monitoring reports to OPM & MoFPED; \uf0b7 I noted that the entity had prepared and approved the strategic plan but it was not certified by National Planning Authority. \uf0b7 I noted that whereas UGX.1,427,190,853 was deducted from employees\u2019 salaries to be remitted to different beneficiaries, UGX.1,149,993,408 was remitted leading to an under remittance amounting to UGX.280,237,640 and over remittance of UGX.3,040,195 \uf0b7 I noted that funds amounting to UGX.195,443,591 in relation to pension and gratuity were charged on wrong account codes \uf0b7 I noted that 73 employees were paid a total of UGX.UGX.61, 299,481 without signed pay change reports. |\n| 2 | 12.0 | Kiboga DLG Opinion | \uf0b7 I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, over payment of salaries worth UGX3, |", "metadata": {"page": 371, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Unqualified | 632,888; Underpayment of salaries worth UGX.6,345,609; overpayment of pension UGX.1, 338,228 and under payment of pension of UGX.3, 404,504; salaries worth UGX. 3,051,636 to two (2) staffs that was no longer in service \uf0b7 I further noted under deduction of PAYE of UGX.5,724,180 to URA and two pensioners were paid a total of UGX.69,008,452 off the IPPS \uf0b7 I noted a number of issues in the implementation of the approved budget such as; unabsorbed wage fund of UGX.0.41Bn; under performance of the donor & releases from other government units worth UGX.1,037,635,628; failure to quantify outputs, partial and non-implementation of planned activities; under absorption of government grants and Non submission of quarterly monitoring reports to OPM & MoFPED \uf0b7 I noted that the entity had prepared and approved the strategic plan but it was not certified by National Planning Authority. \uf0b7 I noted that funds amounting to UGX.40, 000,000 in relation to COVID funds returned by the area Members of Parliament had properly been accounted for. \uf0b7 I noted that different departments at Kiboga district Hospital lacked the required personal protective gear to aid staff execute their duties during the pandemic |\n|---:|-------------:|:------------------------------------|:------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 13 | Kiryandongo DLG Opinion Unqualified | \uf0b7 I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, Over payment of pension salaries worth UGX.1,935,272; overpayment of pension UGX.1,423,052 and under payments of pension UGX.3,591,459; payment of salaries worth UGX. 7,153,511 three (3) staffs that was no longer in service and irregular deduction of loan worth UGX.45, 559,753. \uf0b7 I noted a number of issues in the implementation of the approved budget such as; un absorbed balance wage funds worth UGX 0.28Bn; un quantified outputs; under absorption of funds worth UGX.2,939,664,455 that was swept back to consolidated fund account; under performance of the donor & releases from other government units worth UGX.4,624,951,481; staff payment worth 4,070,605 off the IPPS ;partial and non-implementation of planned activities delayed submission of quarterly monitoring reports to OPM & MoFPED \uf0b7 I noted that the entity had prepared and approved the strategic plan but it was not certified by National Planning Authority. \uf0b7 Deduction Management System, operated by PCA-Payroll Consults Africa. \uf0b7 I noted that 23 employees were paid a total of UGX.46,112,214 without signed pay change reports |", "metadata": {"page": 372, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Unqualified | 632,888; Underpayment of salaries worth UGX.6,345,609; overpayment of pension UGX.1, 338,228 and under payment of pension of UGX.3, 404,504; salaries worth UGX. 3,051,636 to two (2) staffs that was no longer in service \uf0b7 I further noted under deduction of PAYE of UGX.5,724,180 to URA and two pensioners were paid a total of UGX.69,008,452 off the IPPS \uf0b7 I noted a number of issues in the implementation of the approved budget such as; unabsorbed wage fund of UGX.0.41Bn; under performance of the donor & releases from other government units worth UGX.1,037,635,628; failure to quantify outputs, partial and non-implementation of planned activities; under absorption of government grants and Non submission of quarterly monitoring reports to OPM & MoFPED \uf0b7 I noted that the entity had prepared and approved the strategic plan but it was not certified by National Planning Authority. \uf0b7 I noted that funds amounting to UGX.40, 000,000 in relation to COVID funds returned by the area Members of Parliament had properly been accounted for. \uf0b7 I noted that different departments at Kiboga district Hospital lacked the required personal protective gear to aid staff execute their duties during the pandemic |\n|---:|:-------------|:----------------------------------------------------------------------------------------------------|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | \uf0b7 I noted lack of evidence of formal appointment for the contract committee members of the district | Unnamed: 2 |\n| 1 | | Gulu Branch | Summary of Key Findings |\n| 2 | 1.0 | Agago DLG Opinion Unqualified | \uf0b7 I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, over payment of salaries worth UGX. 25,241,289; Underpayment of salaries worth UGX. 164,307,857; Underpayment of pension worth UGX 93,335,963; payment of salaries worth UGX. 28,901,916 to seventeen(17) staffs that was no longer in service \uf0b7 Additionally, I observed that there was delayed access to payroll by five (05) new employees and sixteen (16) pensioners; failure to utilize wage funds of UGX.0.3Bn; un-deducted PAYE from political leaders\u2019 gratuity resulting in unpaid tax of UGX. 13,352,540 and payment of twenty two (22) staffs worth of UGX 642,221,799 off the IPPS \uf0b7 I noted a number of issues in the implementation of the approved budget such as; shoddy works in construction of classrooms; incomplete works; under absorption of funds worth UGX. 484,346,069 that was swept back to consolidated fund account; under performance of the donor & releases from other government units worth UGX.1.994Bn. \uf0b7 I noted that UGX.13.7 million was paid as residual salary arrears to eleven (11) employees who had not missed salaries in the previous financial year(s). \uf0b7 I noted that the verification forms and copies of the verification cards for 04 employees and 16 pensioners/beneficiaries were not on the respective personal files \uf0b7 The district had outstanding unrecovered receivables of UGX. 1,376,134,925 at year end. \uf0b7 I noted that the entity had not prepared a strategic plan at the time of audit. \uf0b7 I noted that Agago District received off-budget financing to a tune of UGX. 90.5 million. \uf0b7 I noted that funds to the tune of UGX .237,168,404 were irregularly diverted from the activities |\n| 3 | 2.0 | Alebtong DLG Opinion Unqualified | \uf0b7 I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, Over payment of salaries worth UGX.20,617,118; Underpayment of salaries worth UGX.21,081,264, payment of salaries worth UGX. 26,612,830 to twenty(20) staffs that was no longer in service |", "metadata": {"page": 373, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Unqualified | 632,888; Underpayment of salaries worth UGX.6,345,609; overpayment of pension UGX.1, 338,228 and under payment of pension of UGX.3, 404,504; salaries worth UGX. 3,051,636 to two (2) staffs that was no longer in service \uf0b7 I further noted under deduction of PAYE of UGX.5,724,180 to URA and two pensioners were paid a total of UGX.69,008,452 off the IPPS \uf0b7 I noted a number of issues in the implementation of the approved budget such as; unabsorbed wage fund of UGX.0.41Bn; under performance of the donor & releases from other government units worth UGX.1,037,635,628; failure to quantify outputs, partial and non-implementation of planned activities; under absorption of government grants and Non submission of quarterly monitoring reports to OPM & MoFPED \uf0b7 I noted that the entity had prepared and approved the strategic plan but it was not certified by National Planning Authority. \uf0b7 I noted that funds amounting to UGX.40, 000,000 in relation to COVID funds returned by the area Members of Parliament had properly been accounted for. \uf0b7 I noted that different departments at Kiboga district Hospital lacked the required personal protective gear to aid staff execute their duties during the pandemic |\n|---:|:-------------|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | \uf0b7 Additionally, I observed that there was delayed access to payroll by thirty three (33) new employees and twenty three(23) pensioners; failure to utilize wage funds of UGX.0.8Bn; un- deducted PAYE from political leaders\u2019 gratuity resulting in unpaid tax of UGX. 9,060,528 \uf0b7 I noted a number of issues in the implementation of the approved budget such as;; Partial implementation, late submission of quarterly reports; Under absorption of UGX.1,493,165,616 that was swept back to consolidated fund account; under performance of the donor & releases from other government units worth UGX.1.994Bn \uf0b7 The district mischarged UGX. 198, 594,102 charged on account codes other than those prescribed for either salary, pension or gratuity. \uf0b7 I noted that the district paid unverified residual arrears worth UGX. 119,498,458 to 12 pensioners \uf0b7 I noted that the District had outstanding receivables amounting to UGX.2,175,996,458 arising from Contractor\u2019s Prepayment YLP & UWEP \uf0b7 I noted that the district had outstanding payables of UGX.1,732,017,300 (Deposits received UGX.1,689,530,652, Sundry creditors of UGX.25,650,000 and Pension liabilities UGX.16,836,648) amounted to UGX. 3,464,034,600. \uf0b7 I noted that the entity had prepared a strategic plan but the National Planning Authority had not yet approved it at the time of audit. \uf0b7 I noted that UGX.580, 701,955 was charged on items which did not reflect the nature of the expenditure. \uf0b7 I noted during the review of expenditure that the district received UGX.183,961,496 to be transferred to schools for printing materials. These funds were never transferred to the schools. \uf0b7 Over/ under remittance of pays amounted to UGX. 6,239,435 and UGX. 180,339,880 respectively | Unnamed: 2 |\n| 1 | 3 | Amuru DLG Opinion Unqualified | \uf0b7 I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, Over payment of salaries worth UGX 9,787,296, Underpayment of salaries and pensioners worth UGX 122,296,566 and UGX 157,253,083 respectively ; payment of salaries worth UGX. 129,399,583 to twenty two (22) staffs that was no longer in service. Under remittance of employees\u2019 salaries deductions worth UGX. 11,492,067. \uf0b7 Additionally, I observed that there was delayed access to payroll by sixty six (66) new employees and thirteen (13) pensioners; |", "metadata": {"page": 374, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Unqualified | 632,888; Underpayment of salaries worth UGX.6,345,609; overpayment of pension UGX.1, 338,228 and under payment of pension of UGX.3, 404,504; salaries worth UGX. 3,051,636 to two (2) staffs that was no longer in service \uf0b7 I further noted under deduction of PAYE of UGX.5,724,180 to URA and two pensioners were paid a total of UGX.69,008,452 off the IPPS \uf0b7 I noted a number of issues in the implementation of the approved budget such as; unabsorbed wage fund of UGX.0.41Bn; under performance of the donor & releases from other government units worth UGX.1,037,635,628; failure to quantify outputs, partial and non-implementation of planned activities; under absorption of government grants and Non submission of quarterly monitoring reports to OPM & MoFPED \uf0b7 I noted that the entity had prepared and approved the strategic plan but it was not certified by National Planning Authority. \uf0b7 I noted that funds amounting to UGX.40, 000,000 in relation to COVID funds returned by the area Members of Parliament had properly been accounted for. \uf0b7 I noted that different departments at Kiboga district Hospital lacked the required personal protective gear to aid staff execute their duties during the pandemic |\n|---:|:-------------|:-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | failure to utilize wage funds of UGX.1,094,631,066; un-deducted PAYE from political leaders\u2019 gratuity resulting in unpaid tax of UGX. 2,140,892 and payment of two (02) pensioners worth UGX. 45,794,020 off the IPPS. \uf0b7 I noted a number of issues in the implementation of the approved budget such as; partial and non-implementation of outputs and activities; non-submission of quarterly wage returns to MoPS; incomplete works such as; Amuru Seed School, Otwee HC III, Giragira-Guruguru and Gotgweno-Maroawobi road and culvert installation under Periodic maintenance of Lakang- Kidimon-Atoro road; under absorption of funds worth UGX.1,854,436,151 that was swept back to consolidated fund account; under performance of the donor & releases from other government units worth UGX. 13,266,132,540; \uf0b7 The district mischarged expenditure worth UGX. 122,058,859 on wrong budget lines. \uf0b7 I noted that UGX. 75,499,557 was paid as residual arrears to 8 pensioners who had not been verified (and thus not part of schedule) by MoFPED \uf0b7 I noted that the entity had not prepared and approved a strategic plan that is aligned to the NDP-III at the time of audit \uf0b7 The district has payables worth UGX. 1,560,778,573 and receivables worth UGX. 1682,711,064 | Unnamed: 2 |\n| 1 | 4 | APAC DLG Qualified Opinion | \uf0b7 I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, Over payment of salaries worth UGX 170,469,321 and over payment of pension worth UGX. 764,207,203; Underpayment of salaries worth UGX. 43,539,065; Wrong computation of gratuity worth net overpayment of UGX. 7650,338, 704; payment of salaries worth UGX. 2,257,209 to two (2) staffs who were no longer in service; unpaid salaries worth UGX. 29,321,020 \uf0b7 I noted over and/or under remittance of salary deductions worth UGX.906, 079,942 and UGX.10, 641,906 respectively. \uf0b7 Additionally, I observed that there was delayed access to payroll by eleven (11) new employees and one (1) pensioners; failure to utilize wage funds of UGX. 364,298,971; un-deducted PAYE from political leaders\u2019 gratuity resulting in unpaid tax of UGX. 7,747,080. and payment of staff off the IPPS \uf0b7 I noted a number of issues in the implementation of the approved budget such as; partial implantation of out puts; incomplete works ; under absorption of funds worth UGX. 1.7 Bn that was swept back to consolidated fund account; under performance of the donor & releases from other government |", "metadata": {"page": 375, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Unqualified | 632,888; Underpayment of salaries worth UGX.6,345,609; overpayment of pension UGX.1, 338,228 and under payment of pension of UGX.3, 404,504; salaries worth UGX. 3,051,636 to two (2) staffs that was no longer in service \uf0b7 I further noted under deduction of PAYE of UGX.5,724,180 to URA and two pensioners were paid a total of UGX.69,008,452 off the IPPS \uf0b7 I noted a number of issues in the implementation of the approved budget such as; unabsorbed wage fund of UGX.0.41Bn; under performance of the donor & releases from other government units worth UGX.1,037,635,628; failure to quantify outputs, partial and non-implementation of planned activities; under absorption of government grants and Non submission of quarterly monitoring reports to OPM & MoFPED \uf0b7 I noted that the entity had prepared and approved the strategic plan but it was not certified by National Planning Authority. \uf0b7 I noted that funds amounting to UGX.40, 000,000 in relation to COVID funds returned by the area Members of Parliament had properly been accounted for. \uf0b7 I noted that different departments at Kiboga district Hospital lacked the required personal protective gear to aid staff execute their duties during the pandemic |\n|---:|:-------------|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | units worth UGX.622,073,000; non submission of quarterly monitoring reports to OPM & MoFPED \uf0b7 The district mischarged expenditure worth UGX.275, 847,736 on wrong budget lines. \uf0b7 I noted that Apac DLG had revenue arrears worth UGX. 715,864,939 by year end \uf0b7 Outstanding unpaid pension arrears worth UGX. 702,052,938 by year end \uf0b7 I noted that no funds were paid as residual arrears to pensioners and staff that had not been verified and were not part of schedule provided by MoFPED for payment. \uf0b7 The district did not have an approved strategic plan that is aligned to the NDP-III at the time of audit. | Unnamed: 2 |\n| 1 | 5 | Gulu District Opinion Unqualified | \uf0b7 I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs; Underpayment of pension worth UGX 299,950,406; Wrong computation of gratuity worth net overpayment of UGX. 1,249,233 and under remittance of salary deductions worth UGX. 8,451,617. \uf0b7 Additionally, I observed that there was delayed access to payroll by two (02) new employees and five (05) pensioners; failure to utilize wage funds of UGX 4.97 billion; un-deducted PAYE from political leaders\u2019 gratuity resulting in unpaid tax of UGX. 11,003,344.and payment of sixteen (16) staffs and five (05) pensioners worth UGX 114,877,542 off the IPPS \uf0b7 I noted a number of issues in the implementation of the approved budget such as;; incomplete works; partial implantation of outputs; under absorption of funds worth UGX 4,900,216,339 that was swept back to consolidated fund account; under performance of the donor & releases from other government units worth UGX.4,034,373,129; delayed submission of quarterly monitoring reports to OPM & MoFPED \uf0b7 The district did not have an approved strategic plan that is aligned to the NDP-III at the time of audit \uf0b7 I noted that the district has outstanding receivables worth UGX. 2,063,196,780 by the year end |\n| 2 | 6 | Gulu RRH Opinion Unqualified | \uf0b7 I noted a number of anomalies during review of the Hospitalpension & salary payrolls such as; Failure to submit wage estimates to MoPs; Underpayment of salaries worth UGX. UGX 8,236,293. Under remittance of salaries worth UGX.197, 476,295. |", "metadata": {"page": 376, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Unqualified | 632,888; Underpayment of salaries worth UGX.6,345,609; overpayment of pension UGX.1, 338,228 and under payment of pension of UGX.3, 404,504; salaries worth UGX. 3,051,636 to two (2) staffs that was no longer in service \uf0b7 I further noted under deduction of PAYE of UGX.5,724,180 to URA and two pensioners were paid a total of UGX.69,008,452 off the IPPS \uf0b7 I noted a number of issues in the implementation of the approved budget such as; unabsorbed wage fund of UGX.0.41Bn; under performance of the donor & releases from other government units worth UGX.1,037,635,628; failure to quantify outputs, partial and non-implementation of planned activities; under absorption of government grants and Non submission of quarterly monitoring reports to OPM & MoFPED \uf0b7 I noted that the entity had prepared and approved the strategic plan but it was not certified by National Planning Authority. \uf0b7 I noted that funds amounting to UGX.40, 000,000 in relation to COVID funds returned by the area Members of Parliament had properly been accounted for. \uf0b7 I noted that different departments at Kiboga district Hospital lacked the required personal protective gear to aid staff execute their duties during the pandemic |\n|---:|:-------------|:-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | \uf0b7 Additionally, I observed that there was delayed access to payroll by thirty one (31) new employees and seven (7) pensioners; failure to utilize wage funds of UGX. 1.87 billion.; un-deducted PAYE from political leaders\u2019 gratuity resulting in unpaid tax of UGX.10,746,540 and payment of nine (9) staffs and ten (10) pensioners worth UGX. 461,890,255 off the IPPS \uf0b7 I noted a number of issues in the implementation of the approved budget such as; shoddy works in construction of classrooms; incomplete works, I noted there was noted delayed completion of the construction of 54 staff houses; partial implementation of actives; under absorption of funds worth UGX. 1,939,617,659 that was swept back to consolidated fund account \uf0b7 The district mischarged expenditure worth UGX. 34,589,597 on wrong budget lines. \uf0b7 I noted that 24 employees were paid worth UGX. 118,822,759 without signed any way. \uf0b7 The district did not have an approved strategic plan that is aligned to the NDP-III at the time of audit \uf0b7 I reviewed the approved Local revenue estimates for the financial year 2020/2021 and noted that the Hospital did not budget for NTR during the year but collected UGX. 206,100,000. \uf0b7 I noted that the hospital had an off budget financing worth UGX. 1,092,948,429 during the financial year. | Unnamed: 2 |\n| 1 | 7 | Kole DLG Opinion Qualified | \uf0b7 I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs; Over payment of pension worth UGX.288, 866,531; Underpayment of pension worth UGX.271, 215,401; Wrong computation of gratuity worth net overpayment of UGX. 54,578,592; payment of salaries two (2) staffs who were no longer in service and irregular deduction of loan instalments worth UGX.9, 061,174. \uf0b7 Additionally, I observed that there was delayed access to payroll by twenty three (23) new employees and fourteen (14) pensioners; failure to utilize wage funds of UGX. 0.4 Billion; un- deducted PAYE from political leaders\u2019 gratuity resulting in unpaid tax of UGX. 6,473,220 and payment of twenty two (22) staffs worth UGX.35,678,772 off the IPPS \uf0b7 I noted a number of issues in the implementation of the approved budget such as; Failure to quantify out puts; partial and non-implementation of planned activities, inaccurate reporting, and delayed submission of quarterly reports; under absorption of funds worth UGX. 1,095,317,475 that was swept |", "metadata": {"page": 377, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | never declared to the PS/ST. \uf0b7 Under UGIFT, I noted delayed completion of construction of Okwerodot Seed Secondary School, Okole HCII and Ayer HCIII upgrade. | Unnamed: 2 |\n|---:|-------------:|:----------------------------------------------------------------------------------------------------------------------------------------------------------------|:------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 8 | Lira Municipal Opinion Unqualified | \uf0b7 I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, over payment of pension worth UGX.438,769,830 , underpayment of salaries worth UGX.14,238,411; Underpayment of pension worth UGX. 390,304,000; \uf0b7 Additionally, I observed that there was delayed access to payroll by five (5) pensioners; four (04) pensionaries do not have access to payroll; failure to utilize wage funds of UGX.0.6 billion; un-deducted PAYE from political leaders\u2019 gratuity resulting in unpaid tax of UGX.3, 734,640 and payment of nine (09) pensionaries worth UGX. 217,577,695 off the IPPS \uf0b7 I noted a number of issues in the implementation of the approved budget such as; incomplete works; non implantation of municipal activities; under absorption of funds worth UGX. UGX.12, 094,641,795 that were swept back to consolidated fund account; under performance of the donor & releases from other government units worth UGX. 236,796,670; late submission of quarterly reports \uf0b7 The municipal mischarged expenditure worth UGX. 63,933,741 on wrong budget lines. \uf0b7 Under remitted payroll deductions worth UGX.4,119,401 \uf0b7 I noted that the municipal paid unverified residual arrears worth UGX. 320,216,040 to 39 pensioners \uf0b7 I noted that 08 employees were paid a total of UGX.20, 975,837 without signed pay change reports. \uf0b7 I noted that the Municipal Council has an outstanding payables balance of UGX.383, 550,743 by year end as recognized in the statement of financial position on page 8 of the financial statements. \uf0b7 I noted that municipal council has outstanding payables worth UGX. 383,550,743 and outstanding debtors worth UGX. 634,438,200 \uf0b7 I noted that the entity had not had their prepared strategic plan approved as aligned to the NDP-III at the time of audit. |\n| 1 | 9 | Lira RRH | \uf0b7 I noted a number of anomalies during review of Lira RR Hospital pension & salary payrolls such as; Failure to submit wage |", "metadata": {"page": 379, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Opinion Unqualified | estimates to MoPs, over payment of salaries worth UGX. UGX.10, 939,040; Underpayment of salaries worth UGX. UGX 19,371,873. Over payment of pension worth UGX 222,915,780. \uf0b7 Additionally, I observed that there was delayed access to payroll by three (3) pensioners; failure to utilize wage funds of UGX.1.50 billion; un-deducted PAYE from political leaders\u2019 gratuity resulting in unpaid tax of UGX.10,746,540 and payment of one (01) pensioner worth UGX 48,955,200 off the IPPS \uf0b7 I noted a number of issues in the implementation of the approved budget such as; incomplete works partial and implementation of activities; under absorption of funds worth UGX.1,866,855,791 that was swept back to consolidated fund account; under performance of the donor & releases from other government units worth UGX.13,220,968,441; delayed submission of quarterly monitoring reports to OPM & MoFPED \uf0b7 The district mischarged expenditure worth UGX. 53,750,617 on wrong budget lines. \uf0b7 Under remittance of salary deductions worth UGX. 115,855,754 \uf0b7 I noted that UGX. 18,767,338 was paid as residual arrears to 13 staff who had not been verified by MoFPED \uf0b7 I observed that a sum of UGX.339,276,432 had been paid to a contractor as advance payments |\n|---:|-------------:|:----------------------------|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 10 | Gulu MC Opinion Unqualified | \uf0b7 I noted a number of anomalies during review of the municipal council pension & salary payrolls such as; Failure to submit wage estimates to MoPs, Underpayment of salaries worth UGX.26,212,810; payment of salaries worth UGX.64,323,258 to twenty nine (29) staffs that was no longer in service \uf0b7 Additionally, I observed that there was delayed access to payroll by one (01) new employee and twenty four (24) pensioners; failure to utilize wage funds of UGX. 0.33 billion; un-deducted PAYE from political leaders\u2019 gratuity resulting in unpaid tax of UGX. 4,415,984 and payment of seven (07) staffs and 08 pensioners worth UGX. 73,991,598 off the IPPS \uf0b7 I noted a number of issues in the implementation of the approved budget such as; incomplete work; partial and non- implementation of activities; under absorption of funds worth UGX. 37,873,163,059 that was swept back to consolidated fund account; under performance of the donor & releases from other government units worth UGX.5,244,627,728; delayed submission of quarterly monitoring reports to OPM & MoFPED \uf0b7 The district mischarged expenditure worth UGX.313, 804,373 on wrong budget lines. |", "metadata": {"page": 380, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Opinion Unqualified | estimates to MoPs, over payment of salaries worth UGX. UGX.10, 939,040; Underpayment of salaries worth UGX. UGX 19,371,873. Over payment of pension worth UGX 222,915,780. \uf0b7 Additionally, I observed that there was delayed access to payroll by three (3) pensioners; failure to utilize wage funds of UGX.1.50 billion; un-deducted PAYE from political leaders\u2019 gratuity resulting in unpaid tax of UGX.10,746,540 and payment of one (01) pensioner worth UGX 48,955,200 off the IPPS \uf0b7 I noted a number of issues in the implementation of the approved budget such as; incomplete works partial and implementation of activities; under absorption of funds worth UGX.1,866,855,791 that was swept back to consolidated fund account; under performance of the donor & releases from other government units worth UGX.13,220,968,441; delayed submission of quarterly monitoring reports to OPM & MoFPED \uf0b7 The district mischarged expenditure worth UGX. 53,750,617 on wrong budget lines. \uf0b7 Under remittance of salary deductions worth UGX. 115,855,754 \uf0b7 I noted that UGX. 18,767,338 was paid as residual arrears to 13 staff who had not been verified by MoFPED \uf0b7 I observed that a sum of UGX.339,276,432 had been paid to a contractor as advance payments |\n|---:|:-------------|:------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | \uf0b7 A review of the pension payroll data and IFMS payments, revealed variances between amounts on the payroll and payments to individual pensioners, leading to an over and under payment of UGX.108,837,902 and UGX.1,323,647,325 respectively. \uf0b7 I noted that the entity had not had their prepared strategic plan approved as aligned to the NDP-III at the time of audit. \uf0b7 I noted that 58 employees were paid a total of UGX. UGX.48,537,458 without Unauthorized pay changed reports \uf0b7 I also noted that UGX.163, 186,521 accrued within the year and had not yet been paid to pensioners by the end of the year. \uf0b7 Over and under payments of UGX 2,050,016 and UGX.625, 974 respectively of 59 staff arising from the use a wrong salary scale. \uf0b7 Overpayment of pension of arrears worth UGX.48,674,235 to nine (09) pensioners \uf0b7 I noted that Municipal Council paid out a total of UGX.6.3 million to 07 non-existent staff. \uf0b7 I noted that UGX.75, 010,130 was paid to 08 purported pensioners that were neither on the IPPS payroll register nor possessed the necessary documentation to support their existence. \uf0b7 I noted that the Municipal Council made PAYE deductions of UGX. 1,439,481,558, but did not remit UGX.2, 162,681 to URA. \uf0b7 I noted that UGX.82, 533,859 was paid as residual arrears to 14 pensioners who had not been verified. \uf0b7 I noted that the council has receivables worth U GX.3, 153,612,053 at end of the financial year. \uf0b7 I noted that expenditure amounting to UGX.113,162,472 remained unaccounted for. | Unnamed: 2 |\n| 1 | 11 | Lira DLG Opinion Unqualified | \uf0b7 I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs,; payment of salaries worth UGX.14,683,834 to eight (8) staffs that was no longer in service . \uf0b7 Additionally, I observed that there was delayed access to payroll by fourteen (14) new employees and eight (8) pensioners; failure to utilize wage funds of UGX.0.5 billion; un-deducted PAYE from political leaders\u2019 gratuity resulting in unpaid tax of UGX.10,794,810; Over and under payment salaries worth of |", "metadata": {"page": 381, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Opinion Unqualified | estimates to MoPs, over payment of salaries worth UGX. UGX.10, 939,040; Underpayment of salaries worth UGX. UGX 19,371,873. Over payment of pension worth UGX 222,915,780. \uf0b7 Additionally, I observed that there was delayed access to payroll by three (3) pensioners; failure to utilize wage funds of UGX.1.50 billion; un-deducted PAYE from political leaders\u2019 gratuity resulting in unpaid tax of UGX.10,746,540 and payment of one (01) pensioner worth UGX 48,955,200 off the IPPS \uf0b7 I noted a number of issues in the implementation of the approved budget such as; incomplete works partial and implementation of activities; under absorption of funds worth UGX.1,866,855,791 that was swept back to consolidated fund account; under performance of the donor & releases from other government units worth UGX.13,220,968,441; delayed submission of quarterly monitoring reports to OPM & MoFPED \uf0b7 The district mischarged expenditure worth UGX. 53,750,617 on wrong budget lines. \uf0b7 Under remittance of salary deductions worth UGX. 115,855,754 \uf0b7 I noted that UGX. 18,767,338 was paid as residual arrears to 13 staff who had not been verified by MoFPED \uf0b7 I observed that a sum of UGX.339,276,432 had been paid to a contractor as advance payments |\n|---:|:-------------|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | UGX.115,309,480 and UGX.131,175,021 respectively; under payments of salaries worth UGX.530,320 of 18 staff arising from the use a wrong salary scale \uf0b7 Over and under payment of pension worth of UGX.30, 707,444 and UGX.598, 762,255 respectively. \uf0b7 I noted a number of issues in the implementation of the approved budget such as; shoddy works in construction of classrooms; incomplete works; the District failed to achieve the intended services from the implemented 02 outputs; under absorption of funds worth UGX. 1,005,249,173 that were swept back to consolidated fund account; over performance and under performance of the donor & releases from other government units worth UGX. 8,559,440,754 delayed submission of quarterly monitoring reports to OPM & MoFPED \uf0b7 The district mischarged expenditure worth UGX.275, 847,736 on wrong budget lines. \uf0b7 I noted that the entity had not had their prepared strategic plan approved as aligned to the NDP-III at the time of audit. \uf0b7 I noted that the district had an off budget financing worth UGX.220, 983,855 during the financial year. \uf0b7 I noted that 21 employees were paid a total of UGX. 9,941,845 without signed pay change reports. \uf0b7 I noted that the District had outstanding receivables worth UGX. 898,553,933 and outstanding payables worth UGX.920,018,518 | Unnamed: 2 |\n| 1 | 12 | Oyam DLG Qualified Opinion | \uf0b7 I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, over payment of salaries worth UGX. 81,486,802; Underpayment of salaries worth UGX. 54,366,065; payment of salaries worth UGX.74, 935,902 to thirty three (33) staffs that was no longer in service .unpaid salary worth UGX.91, 771,432. \uf0b7 Additionally, I observed that there was delayed access to payroll by thirteen (13) new employees and sixteen (16) pensioners; failure to utilize wage funds of UGX. UGX.0.58 billion; un- deducted PAYE from political leaders\u2019 gratuity resulting in unpaid tax of UGX.12, 437,406. \uf0b7 I noted that the entity had not had their prepared strategic plan approved as aligned to the NDP-III at the time of audit. \uf0b7 The District did not recognize as a receivable an advance payment of UGX.414,149,184 made on 28 th June 2021 for the supply and installation of medical equipment to 64 Health Center IIIs under Uganda Intergovernmental Fiscal Transfer Program |", "metadata": {"page": 382, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Opinion Unqualified | estimates to MoPs, over payment of salaries worth UGX. UGX.10, 939,040; Underpayment of salaries worth UGX. UGX 19,371,873. Over payment of pension worth UGX 222,915,780. \uf0b7 Additionally, I observed that there was delayed access to payroll by three (3) pensioners; failure to utilize wage funds of UGX.1.50 billion; un-deducted PAYE from political leaders\u2019 gratuity resulting in unpaid tax of UGX.10,746,540 and payment of one (01) pensioner worth UGX 48,955,200 off the IPPS \uf0b7 I noted a number of issues in the implementation of the approved budget such as; incomplete works partial and implementation of activities; under absorption of funds worth UGX.1,866,855,791 that was swept back to consolidated fund account; under performance of the donor & releases from other government units worth UGX.13,220,968,441; delayed submission of quarterly monitoring reports to OPM & MoFPED \uf0b7 The district mischarged expenditure worth UGX. 53,750,617 on wrong budget lines. \uf0b7 Under remittance of salary deductions worth UGX. 115,855,754 \uf0b7 I noted that UGX. 18,767,338 was paid as residual arrears to 13 staff who had not been verified by MoFPED \uf0b7 I observed that a sum of UGX.339,276,432 had been paid to a contractor as advance payments |\n|---:|:-------------|:------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | (UgIFT) (LOT 3). \uf0b7 The district mischarged expenditure worth UGX. 609,529,053 on wrong budget lines. \uf0b7 Over payments of UGX.1, 104,810 respectively of 27 staff arising from the use of wrong salary scales. \uf0b7 I noted a number of issues in the implementation of the approved budget such as; incomplete works; partial and non- implementation of activities; under absorption of funds worth UGX. 972,008,324 that was swept back to consolidated fund account; under performance of the donor & releases from other government units worth UGX. 1,163,405,949; delayed submission of quarterly monitoring reports to OPM & MoFPED \uf0b7 The district mischarged expenditure worth UGX.275, 847,736 on wrong budget lines. \uf0b7 Over and under payment of pension to pensionaries worth UGX.34, 619,402, and UGX.126, 248,570 respectively. \uf0b7 I noted that the District has unauthorized loan deductions worth UGX.178,342,254. \uf0b7 Payment of pension arrears worth UGX.22,125,006 to ineligible pensioners \uf0b7 I noted 700 vacant staff position at the district that affected service delivery \uf0b7 The district had outstanding payables worth UGX.2, 865,939,536 and Overdue receivables worth UGX.2, 865,939,536 by the end of the financial year. \uf0b7 UGX.590, 863,502 paid to the contractor on the 28 th June 2021 was not supported by certificates of works done. \uf0b7 I noted that expenditure amounting to UGX.31, 252,804 remained unaccounted. \uf0b7 I noted that management irregularly paid out UGX.411, 867,050 to individual staff personal bank accounts to purportedly implement several council activities instead of directly paying the eligible suppliers and service providers. In addition, these individuals were neither imprest holders nor cashiers who are mandated to hold cash among other duties. | Unnamed: 2 |\n| 1 | 13 | Pader DLG Un Qualified Opinion | \uf0b7 I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, Over payment of salaries worth UGX.42,537,857payment of pension worth UGX.288, 866,531; Underpayment of pension worth UGX.910,301,025.; payment of |", "metadata": {"page": 383, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Opinion Unqualified | estimates to MoPs, over payment of salaries worth UGX. UGX.10, 939,040; Underpayment of salaries worth UGX. UGX 19,371,873. Over payment of pension worth UGX 222,915,780. \uf0b7 Additionally, I observed that there was delayed access to payroll by three (3) pensioners; failure to utilize wage funds of UGX.1.50 billion; un-deducted PAYE from political leaders\u2019 gratuity resulting in unpaid tax of UGX.10,746,540 and payment of one (01) pensioner worth UGX 48,955,200 off the IPPS \uf0b7 I noted a number of issues in the implementation of the approved budget such as; incomplete works partial and implementation of activities; under absorption of funds worth UGX.1,866,855,791 that was swept back to consolidated fund account; under performance of the donor & releases from other government units worth UGX.13,220,968,441; delayed submission of quarterly monitoring reports to OPM & MoFPED \uf0b7 The district mischarged expenditure worth UGX. 53,750,617 on wrong budget lines. \uf0b7 Under remittance of salary deductions worth UGX. 115,855,754 \uf0b7 I noted that UGX. 18,767,338 was paid as residual arrears to 13 staff who had not been verified by MoFPED \uf0b7 I observed that a sum of UGX.339,276,432 had been paid to a contractor as advance payments |\n|---:|:-------------|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | salaries worth UGX.7,410,931 to seven (07) staffs that was no longer in service \uf0b7 Additionally, I observed that there was delayed access to payroll by twenty three (23) new employees and two (2) pensioners; failure to utilize wage funds of UGX.2.38Bn; un-deducted PAYE from political leaders\u2019 gratuity resulting in unpaid tax of UGX.310,309,590 and payment of twenty two (22) staffs worth UGX.35,678,772 off the IPPS \uf0b7 I noted a number of issues in the implementation of the approved budget such as; shoddy works in construction of classrooms; incomplete works; under absorption of funds that was swept back to consolidated fund account; under performance of the donor & releases from other government units worth UGX.2,942,949,626; delayed submission of quarterly monitoring reports to OPM & MoFPED \uf0b7 Over payment of salary worth UGX.608,719 arising from use of wrong scale \uf0b7 I noted that the District made unauthorized loan deductions worth UGX. 45,223,516. \uf0b7 I noted that UGX.113, 671,178 was charged on account codes other than those prescribed for salary, pension and gratuity. \uf0b7 The District had an outstanding payables balance of UGX.1,365,231,670 as reported in the statement of financial position \uf0b7 The District had in its statement of financial position, long outstanding debtors (Advances) amounting to UGX.927, 029,154, which relate to the previous financial years. \uf0b7 I noted that the entity had prepared a strategic plan but the National Planning Authority had not yet approved it at the time of audit. \uf0b7 I undertook an assessment to establish if there has been service delivery from a sample of outputs that were implemented and noted that the upgrade of Lapul\u2013Ocwida Health Center II to III had not been completed because the contractor abandoned the site. \uf0b7 I noted that UGX.42, 534,087 was charged on items which did not reflect the nature of the expenditure. \uf0b7 The district has an approved staff structure of 2,215 positions. Out of the approved staff structure, 1,229 (55%) are filled leaving 986 (45%) vacant. | Unnamed: 2 |\n| 1 | | Soroti Branch | Summary of Key Findings |\n| 2 | 1.0 | Amolatar DLG | \uf0b7 I noted a number of anomalies during review of the district |", "metadata": {"page": 384, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | due (Interest Exclusive) of UGX. 559,850,500 representing 18%, leaving an outstanding balance of UGX. 478, 531,250 under the Uganda Women Entrepreneurship Program (UWEP). | Unnamed: 2 |\n|---:|-------------:|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 1 | 0 2 Bukedea DLG Opinion Unqualified | \uf0b7 I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs,; Underpayment of pension worth UGX.4,244,574. ; Wrong computation of gratuity worth net overpayment of UGX 4,368,548; delayed remittance of payroll deductions to URA and one staff was paid a total of UGX.14.8million off the IPPS \uf0b7 I noted a number of issues in the implementation of the approved budget such as;partial implementation of planned activities; an absorbed wage fund balance 0.6Bn; under absorption of funds worth UGX.2.93Bn that was swept back to consolidated fund account; under performance of the donor & releases from other government units worth UGX.0.6Bn; delayed submission of quarterly monitoring reports to OPM & MoFPED \uf0b7 I noted that the entity did not prepare and have an approved strategic plan aligned to NDP-III. \uf0b7 I noted that whereas UGX.4,007,788,020 was deducted from employees\u2019 salaries to be remitted to different beneficiaries, UGX.3,853,954,791 was remitted, leading to an over/ under remittance of UGX.116,697,024/UGX.270,530,253 respectively \uf0b7 \uf0b7 I also noted that within total liabilities are deposits of UGX.994, 994,899 regarding to YLP and UWEP. \uf0b7 Bukedea HCIV experienced drug stock outs for several essential medicines during the year \uf0b7 The district awarded contracts and made payment of UGX. 47,362,136 without proof of active VAT registration. As a result, VAT amounting of UGX. 7,222,726 was paid to non-registered company/deregistered due to non-compliance. \uf0b7 The district had received unbudgeted for funding worth UGX. 254,695,138 for printing of home study materials but this was not even approved as a supplementary budget by the council. \uf0b7 An outstanding receivables balance of UGX. 303,281,690 during the financial year that remained unrecovered |\n| 1 | 2 | 0 3 Dokolo DLG Opinion Unqualified | \uf0b7 I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, Over Underpayment of salaries worth UGX.169,757,747 and several staff were paid a total of UGX.6.4million off the IPPS. \uf0b7 I noted a number of issues in the implementation of the approved budget such as;partial implementation of planned activities; unabsorbed wage funds of UGX.0.128Bn; under |", "metadata": {"page": 386, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | due (Interest Exclusive) of UGX. 559,850,500 representing 18%, leaving an outstanding balance of UGX. 478, 531,250 under the Uganda Women Entrepreneurship Program (UWEP). | Unnamed: 2 |\n|---:|:-------------|:------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | performance of the donor & releases from other government units worth UGX.6.258Bn; delayed submission of quarterly monitoring reports to OPM & MoFPED \uf0b7 I noted that the entity did not prepare and have an approved strategic plan aligned to NDP-III. \uf0b7 I noted delays in the remittance of PAYE deductions to URA in 2 out of 12 months, with an average delay. \uf0b7 I noted that the district did not subject political leaders\u2019 gratuity totaling to UGX.33, 217,800 to the computation of PAYE in IPPS, leading to revenue loss of UGX.10, 036,690. \uf0b7 Outstanding payables during the year worth UGX.7,108,292 remained unsettled by year end \uf0b7 Uncounted for funds at the close of the financial year amounted to UGX.13,212,000 \uf0b7 It was noted that two (2) contracts worth UGX.36,371,630 were awarded to contractors VAT inclusive to a tune of UGX.5,548,214 yet the individual contractors were either not VAT registered or had been de-registered by the tax authority. \uf0b7 An outstanding receivables balance of UGX.346,165,052 due from UWEP and YLP groups | Unnamed: 2 |\n| 1 | 3.0 | 0 4 Kaberamaido DLG Opinion. Unqualified | \uf0b7 I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, over payment of salaries worth UGX.1, 255,265; Underpayment of salaries worth UGX. 1, 222,507; salaries worth UGX.1,960,136 was paid to 1 staff who had retired and Paid UGX.3,300,000 and UGX.54,988,606 to 2 employees and 2 pensioners respectively off IPPS \uf0b7 I noted a number of issues in the implementation of the approved budget such as; unabsorbed wage funds worth UGX 0.4Bn; under payment UGX. 37,655,834 under absorption of other received funds worth UGX.26, 816,534 that was swept back to consolidated fund account; under performance of the donor & releases from other government units worth UGX.464,763,581; delayed submission of quarterly monitoring reports to OPM & MoFPED \uf0b7 I noted that the entity did not prepare and have an approved strategic plan aligned to NDP-III. \uf0b7 \uf0b7 I noted that the District made PAYE deductions of UGX.1, 260,530,351 and remitted to URA and delays in the remittance of PAYE deductions to URA ranging from 1\u201313 days. \uf0b7 I noted that Kaberamaido District did not subject political leaders\u2019 |", "metadata": {"page": 387, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | due (Interest Exclusive) of UGX. 559,850,500 representing 18%, leaving an outstanding balance of UGX. 478, 531,250 under the Uganda Women Entrepreneurship Program (UWEP). | Unnamed: 2 |\n|---:|:-------------|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | gratuity totaling to UGX. 37,211,942 to the computation of PAYE in IPPS, leading to an under deduction of UGX. 11,183,595. \uf0b7 I observed a number of issues during my inspection of Kaberamaido Hospital such as; equipment such as Ultra sound machines and Scanners were idle due to lack of specialized human resources to operate them and the hospital has (4) small oxygen concentrators which are obsolete; Poor infrastructural development of kaberamido hospital \uf0b7 A review of the approved work plan and budget revealed that the district made budget provisions for vehicle maintenance during the period under review amounting to UGX.98, 812,000. However, almost all the district vehicles were not functional due to failure to maintain and repair them and the approximated cost amounted to UGX.298, 400,000. | Unnamed: 2 |\n| 1 | 4.0 | 0 5 Kalaki DLG Opinion Unqualified | \uf0b7 I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs; Underpayment of pension worth UGX.13,901,641; payment of salaries worth UGX. 1,573,970 to five (5) staffs that was no longer in service and payment of UGX 19.29 million to five (5) employees off the IPPS \uf0b7 I noted a number of issues in implementation of approved budget such as; under absorption of funds worth UGX.1,197,062,675 that was swept back to consolidated fund account;. un absorbed funds worth UGX.2.385Bn under performance of the donor & releases from other government units worth UGX.2,685,815,492 and non-submission of quarterly monitoring reports to OPM & MoFPED \uf0b7 I noted that the entity did not prepare and have an approved strategic plan aligned to NDP-III. \uf0b7 I observed that whereas UGX.1,565,039,555 was deducted from employees\u2019 salaries to be remitted to different beneficiaries, UGX.1,487,680,407 was remitted, leading to an over/under remittance of UGX.6,339,201 and UGX.83,698,349 respectively. \uf0b7 Disclosed in the statement of financial position on page (15) are receivables of UGX.752,701,227 as supported by Note (19) relating to UWEP and YLP funds which remained due to the revolving fund and close of the financial year |", "metadata": {"page": 388, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | due (Interest Exclusive) of UGX. 559,850,500 representing 18%, leaving an outstanding balance of UGX. 478, 531,250 under the Uganda Women Entrepreneurship Program (UWEP). | Unnamed: 2 |\n|---:|-------------:|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 6 | Katakwi DLG Opinion Unqualified | \uf0b7 I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, over and under payment of salaries worth UGX. 1,541,478 and UGX. 24,265,506 respectively; under remittance salary deductions worth UGX. 10,723,784; \uf0b7 Additionally, I observed failure to utilize wage funds of UGX.0.1Bn; un-deducted PAYE from political leaders\u2019 gratuity |", "metadata": {"page": 388, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | due (Interest Exclusive) of UGX. 559,850,500 representing 18%, leaving an outstanding balance of UGX. 478, 531,250 under the Uganda Women Entrepreneurship Program (UWEP). | Unnamed: 2 |\n|---:|:-------------|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:-------------|\n| 0 | Unnamed: 0 | resulting in unpaid tax of UGX. 13,353,316; I noted that 4 newly recruited/ transferred employees and 24 pensioners delayed to access payroll; the Katakwi District did not prepare monthly wage, pension and gratuity performance analysis and thus did not submit quarterly returns on payroll to MoPS; paid 32 staff and 02 pensioners worth UGX. 34,292,421 off the IPPS \uf0b7 I noted that the district had not paid salary and pension arrears of UGX.176,136,812 and UGX.210,481,886 respectively and deposits under total liabilities of UGX.1,469,427,540, comprising of YLP and UWEP amounts due to the revolving fund \uf0b7 I noted a number of issues in the implementation of the approved budget such as; shoddy works in construction of classrooms; incomplete works; under absorption of funds worth UGX. 360,155,363 that was swept back to consolidated fund account; under performance of the donor & releases from other government units worth UGX.1,868,819,492; delayed submission of quarterly monitoring reports to OPM & MoFPED \uf0b7 A total of 37 km at an estimated cost of UGX.220, 000,000 was worked on, however on physical inspection it was noted that some road sections were not well graded with poor road shaping, spot gravelling while others lacked access roads to the community. \uf0b7 The district had received unbudgeted funding worth UGX.186,033,984 on 20 th January 2021 for printing of home study materials which was not approved as a supplementary budget by the council, remained un-transferred to schools until 23 rd June 2021 and had not been utilized by the beneficiary schools at the time of audit.(August 2021). \uf0b7 An audit of Katakwi district hospital revealed instances of drug stock outs, failure to keep records of essential medicines such as oxygen and blood, expiry of drugs and staffing gaps at the district hospital. \uf0b7 The district signed a contract with UK General Services Limited for Upgrade of Palam HC III to III funded under Transitional Development Grant (TDG) (KATA522/WRKS/20-21/00032) at a contract price of UGX.296, 838,010, UGX.265, 076,343 (89%) of the contract sum had been paid leaving only 10% retention due to the contractor but on inspection it was noted that the works were in complete and the contractor was not found on site. | Unnamed: 2 |", "metadata": {"page": 389, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | due (Interest Exclusive) of UGX. 559,850,500 representing 18%, leaving an outstanding balance of UGX. 478, 531,250 under the Uganda Women Entrepreneurship Program (UWEP). | Unnamed: 2 |\n|---:|-------------:|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 7 | KUMI DLG Opinion Unqualified | \uf0b7 I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs; Underpayment of pension worth UGX 40,603,995; payment of salaries worth UGX. 41,743,339 to fourteen (14) staffs that was no longer in service \uf0b7 Additionally, I observed that there was delayed access to payroll |", "metadata": {"page": 389, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | due (Interest Exclusive) of UGX. 559,850,500 representing 18%, leaving an outstanding balance of UGX. 478, 531,250 under the Uganda Women Entrepreneurship Program (UWEP). | Unnamed: 2 |\n|---:|:-------------|:-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | by seventy eigth (78) new employees and six (06) pensioners and 15 pensioners did not access the pension payroll by the end of FY 2020/21; failure to utilize wage funds of UGX 0.7 billion.; un-deducted PAYE from political leaders\u2019 gratuity resulting in unpaid tax of UGX. 8,722,103.and payment of seven (07) staffs worth UGX 8,054,219 off the IPPS \uf0b7 I noted a number of issues in the implementation of the approved budget such as; partial implementation of activities, under absorption of funds worth UGX. 1,189,642,702 that was swept back to consolidated fund account; under performance of the donor & releases from other government units worth UGX.9,484,212,313; delayed submission of quarterly monitoring reports to OPM & MoFPED \uf0b7 Over and under remittance amounting to UGX. 1,447,689 and UGX. 27,903,716 respectively. \uf0b7 I noted that the District has receivables worth UGX 207,343,250. \uf0b7 I noted that the District had payables of worth UGX. 1,061,619,255 \uf0b7 The district did not have an approved strategic plan that is aligned to the NDP-III at the time of audit. \uf0b7 The district lacked land titles for 58 pieces measuring 948.809 acres which exposed the land to loss and encroachment. \uf0b7 The district received a sum of UGX 202,441,411 for primary and secondary for procurement of learning materials. I noted that the above funds were still on the schools accounts. \uf0b7 Vacant staff position of 82 was noted at the district \uf0b7 The district mischarged expenditure worth of UGX.23,818,896 on wrong budget lines. | Unnamed: 2 |\n| 1 | 8 | Soroti CITY Opinion Unqualified | \uf0b7 I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs worth 0.20Bn; Underpayment of pension worth UGX 17,693,503; payment of salaries worth UGX. 4,422,604 to two (2) staffs that was no longer in service \uf0b7 Additionally, I observed that there was delayed access to payroll by twenty three (2) new employees and nine (2) pensioners; \uf0b7 I noted under absorption of funds worth UGX.569,370,362 that was swept back to consolidated fund account; under performance of the donor & releases from other government units worth UGX.3,241,130,000; delayed submission of quarterly monitoring reports to OPM & MoFPED partial implementation of planned activities unquantified output 2 pensioners delayed to |", "metadata": {"page": 390, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | due (Interest Exclusive) of UGX. 559,850,500 representing 18%, leaving an outstanding balance of UGX. 478, 531,250 under the Uganda Women Entrepreneurship Program (UWEP). | Unnamed: 2 |\n|---:|:-------------|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:-------------|\n| 0 | Unnamed: 0 | access the pension payroll, with delays of 2 months. \uf0b7 The district did not have an approved strategic plan that is aligned to the NDP-III at the time of audit. \uf0b7 I noted that whereas UGX.1,672,354,754 was deducted from employees\u2019 salaries to be remitted to different beneficiaries, UGX.1,720,244,218 was remitted, leading to an over remittance of UGX.47,889,464. \uf0b7 I noted that the City did not subject political leaders\u2019 gratuity totaling to UGX.10, 718,400 to the computation of PAYE in IPPS, leading to a revenue loss of UGX.3,212,520. . \uf0b7 I noted that UGX.16, 952,389 was charged on account codes other than those prescribed for salary, pension and gratuity. \uf0b7 9 staff and 1 pensioner were paid a total of UGX.9, 175,032 off the IPPS. \uf0b7 \uf0b7 It was noted that the health centre experienced expiry of several essential medicines. \uf0b7 An audit of a sample of essential drugs revealed that there were discrepancies between quantities ordered and those actually delivered by National Medical Stores. \uf0b7 I noted that from the financial year 2015/16 to 2018/19 the City had disbursed a total of UGX.213,350,031 out of which a sum of only UGX.48,137,000(23%) was recovered leaving an outstanding balance of UGX.173,473,68 \uf0b7 AN outstanding balance of UGX.84,288,225 . | Unnamed: 2 |", "metadata": {"page": 391, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | due (Interest Exclusive) of UGX. 559,850,500 representing 18%, leaving an outstanding balance of UGX. 478, 531,250 under the Uganda Women Entrepreneurship Program (UWEP). | Unnamed: 2 |\n|---:|-------------:|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 9 | Soroti DLG Opinion Unqualified | \uf0b7 I noted a number of anomalies during review of the district pension & salary payrolls such as; delayed to submit wage estimates to MoPs; an unabsorbed balance of UGX.0.1Bn; an over payment of UGX.2,539,634; Unpaid Salaries worth UGX.39,755,425; an under payment of UGX.40,539,361; payment of salaries worth UGX.2,618,034 to two (2) staffs that had retired and the other died; an over/under remittance of UGX.24,004,085 and UGX.70,000 respectively; loan deduction worth UGX.1,025,336,368 from 643 employees that had no letters of undertaking but exist in the reports. \uf0b7 I further un-deducted PAYE from political leaders\u2019 gratuity resulting to an under deduction of UGX.10,594,893; delay in accessing payroll and pension payroll; the district mischarged expenditure worth UGX.23,558,053 on wrong budget lines; Paid residual arrears worth UGX.361,354,056 to 15 pensioners who had not been verified; Failed to prepare monthly wage, pension and gratuity performance analysis; Failed also to submit quarterly returns on payroll to MoPS; Payment worth UGX.1,109,575,875 was paid to 26 pensioners off the IPPS; \uf0b7 I noted that the entity prepared and submitted the Strategic Plan to National Planning Authority but had not been approved by the |", "metadata": {"page": 391, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | due (Interest Exclusive) of UGX. 559,850,500 representing 18%, leaving an outstanding balance of UGX. 478, 531,250 under the Uganda Women Entrepreneurship Program (UWEP). | Unnamed: 2 |\n|---:|:-------------|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | time of audit; the district had an Outstanding total liabilities worth UGX.1,315,447,223; Underperformance worth UGX.1,770,722,988; Under absorption worth UGX.620,661,204 which was subsequently swept back to the consolidated fund account; Failed to prepare annual monitoring plans. \uf0b7 The district received Amount worth UGX.51,440,000 under covid 19 response; the district had several pieces of land whose titles had not been secured; an outstanding balance worth UGX.1,028,188,380 from groups; shoddy works in construction of roads; Un utilized amount of money worth UGX.176,968,673 meant for the procurement of learning materials for primary and secondary schools | Unnamed: 2 |\n| 1 | 10 | Kapelebyong DLG Opinion Unqualified | \uf0b7 I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, under payment of pension worth UGX. 13,840,658; Underpayment of salaries worth UGX. 23,446,654.. Accrued payment of pension worth UGX. 1,623,473. under remittance of salaries worth UGX. 35,257,436. \uf0b7 Additionally, I observed that there was delayed access to payroll by two (2) pensioners; failure to utilize wage funds of UGX. 1,030,154,088.; un-deducted PAYE from political leaders\u2019 gratuity resulting in unpaid tax of UGX.6,156,000 and payment of six (06) staffs worth UGX. 19,428,658 off the IPPS \uf0b7 I noted a number of issues in the implementation of the approved budget such as; incomplete works; partial implementation of activities, under absorption of funds worth UGX. 1,089, 751 811, that was swept back to consolidated fund account; under performance of the donor & releases from other government units worth UGX.537,701,164; delayed submission of quarterly monitoring reports to OPM & MoFPED \uf0b7 Outstanding liabilities worth UGX.912,708,330 \uf0b7 The district did not have an approved strategic plan that is aligned to the NDP-III at the time of audit. \uf0b7 A total of UGX.20, 000,000 was received as COVID 19 supplementary funding \uf0b7 I noted that the district has funds worth UGX. 589,150,272 relating to YLP and UWEP \uf0b7 The district received unbudgeted funding worth UGX. 76,174,518 \uf0b7 I noted that the district has outstanding payables (YLP)/ UWEP worth UGX. 331,343,011 and UGX. 251,879,775 respectively . \uf0b7 The district awarded contracts and made payments amounting to UGX.97, 981,512 without proof of active VAT registration, as a result, VAT amounting of UGX.14, 946,332 was paid to non- |", "metadata": {"page": 392, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | due (Interest Exclusive) of UGX. 559,850,500 representing 18%, leaving an outstanding balance of UGX. 478, 531,250 under the Uganda Women Entrepreneurship Program (UWEP). | Unnamed: 2 |\n|---:|:-------------|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | registered or de-registered companies. | Unnamed: 2 |\n| 1 | 11 | SERERE DLG Opinion Unqualified | \uf0b7 I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, Over payment of salaries worth UGX.5,681,385; Underpayment of salaries worth UGX.7,111,988; under remittance of salaries worth UGX.32,910,176 \uf0b7 I further noted failure to utilize wage funds of UGX.0.6 billion; un-deducted PAYE from political leaders\u2019 gratuity resulting in unpaid tax of UGX.10,721, UGX.416million off the IPPS \uf0b7 I noted a number of issues in the implementation of the approved budget such as;; under absorption of funds worth UGX.1.18Bn that was swept back to consolidated fund account; under performance of the donor & releases from other government units worth UGX.7.721Bn; delayed submission of quarterly monitoring reports to OPM & MoFPED \uf0b7 Un recovered YLP and UWEP deposits worth UGX.1,086,363,675 \uf0b7 The district did not have an approved strategic plan that is aligned to the NDP-III at the time of audit. \uf0b7 I noted that the district had received unbudgeted for funding worth UGX. 254,695,138 \uf0b7 Unrecovered YLP and UWEP fund worth UGX. 873,681,064 |\n| 2 | 12 | Amuria DLG Opinion Un-Qualified | \uf0b7 I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, over payment of salaries worth UGX.467,333, under payment of salaries worth UGX.607,250 \uf0b7 Additionally, I observed that there was delayed access to payroll by seven (07) new employees and fourteen (14) pensioners; failure to utilize wage funds of UGX.1,303,509,217.; un-deducted PAYE from political leaders\u2019 gratuity resulting in unpaid tax of UGX.12,243,797 and payment of one (01) staffs worth of UGX.5,393,465 off the IPPS \uf0b7 I noted a number of issues in the implementation of the approved budget such as;; under absorption of funds worth UGX.1,872,205,072 that was swept back to consolidated fund account; under performance of the donor & releases from other government units worth UGX.2,531,940,210; delayed submission of quarterly monitoring reports to OPM & MoFPED \uf0b7 I noted that the District has unauthorized loan deductions worth UGX.694,591,280. |", "metadata": {"page": 393, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | due (Interest Exclusive) of UGX. 559,850,500 representing 18%, leaving an outstanding balance of UGX. 478, 531,250 under the Uganda Women Entrepreneurship Program (UWEP). | Unnamed: 2 |\n|---:|:-------------|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | at the time of audit \uf0b7 The district received off-budget financing to a tune of UGX. .46, 449,000 directly from UNFPA for undertaking activities which was never declared to the PSST and as such no supplementary appropriation was issued as guided by the PSST. \uf0b7 The district did not have an approved strategic plan that is aligned to the NDP-III at the time of audit. \uf0b7 I noted that Note 19, Net Receivables, to the financial Statements, Amuria District had receivables of UGX.808,524,096 relating to UWEP and YLP funds at the beginning of the current financial year. Further review revealed that the receivables increased to UGX.1, 003,497,681. \uf0b7 I noted that funds totaling UGX.7,747,000 were irregularly diverted from the activities on which they were budgeted and spent on other activities without seeking or obtaining the necessary approvals. \uf0b7 I noted that that tracer medicines like Oxytocin, Coatem (Artemether + Lumefantrine) 24 Tablets 30 strips, Gloves, Determine test kit and Mama kits worth UGX.4,615,129 was not accounted for by the Hospital Management. \uf0b7 I noted that out of 154 pieces of land, only 8 (5%) had titles. | Unnamed: 2 |\n| 1 | 13 | Kumi MC Opinion Un-qualified | \uf0b7 I noted a number of anomalies during review of the Municipal pension & salary payrolls such as; Under absorption worth UGX.212,168,628; under payment worth UGX.35,246,285; Outstanding payment worth UGX.2,256,948 meant for 5 employees; an under payment of Pension, Gratuity worth UGX.33,299; Accrued payment worth UGX.13,261,366; payment of salaries worth UGX.5,189,355 to Nine (9) staffs who had either retired, transferred, absconded or died. \uf0b7 Additionally, I observed an over remittance of UGX.13, 281,172; un-deducted PAYE from political leaders\u2019 gratuity resulting in unpaid tax of UGX.3, 889,440; delayed in accessing payroll and pension payroll; Failed to prepare monthly wage, pension and gratuity performance analysis; Failed to submit quarterly returns on payroll to MoPS; Salary payment worth UGX.5, 582,676 was paid to 12 staffs off the IPPS. Receivables worth UGX.1, 132,227,490 relating to UWEP and YLP funds. \uf0b7 I noted that the entity does not have an approved strategic plan that is aligned to the NDP-III at the time of audit; Underperformance worth UGX.389,604,927; under Absorption UGX.297,497,115. \uf0b7 I noted that UGX.9, 350,000 was charged on items which did not reflect the nature of the expenditure. \uf0b7 I noted that all the pieces of land owned by the municipality |", "metadata": {"page": 394, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | due (Interest Exclusive) of UGX. 559,850,500 representing 18%, leaving an outstanding balance of UGX. 478, 531,250 under the Uganda Women Entrepreneurship Program (UWEP). | Unnamed: 2 |\n|---:|:-------------|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | lacked Titles; the entity Lacked approved Physical Development Plan and detailed Plans; Underperformance of the public Health and Hygiene Promotion worth UGX.2,996,879; an outstanding balance worth UGX.256,828,714 and UGX.148,878,891 from YLP groups and UWEP groups respectively | Unnamed: 2 |\n| 1 | 14 | Ngora DLG Opinion Un-Qualified | \uf0b7 I noted a number of anomalies during review of the district pension & salary payrolls such as Underpayment of salary worth UGX.39,027,007; irregular deduction of loan instalments worth UGX.834,880,411; pension and gratuity under/Non-payments of UGX.155,180,697; over remittance of salary deductions worth UGX.100,096,201 and eighty-seven (87) vacant staff positions \uf0b7 Additionally, I observed failure to utilize wage funds of UGX.0.4 Bn; un-deducted PAYE from political leaders\u2019 gratuity resulting in unpaid tax of UGX.10,637,490 and payment of one (1) staff worth UGX.1,776,726 off the IPPS \uf0b7 I noted outstanding receivables of UGX.1,131,962,894 relating to UWEP and YLP \uf0b7 I noted a number of issues in the implementation of the approved budget such as; incomplete works; under absorption of funds worth UGX.652,569,804 that was swept back to consolidated fund account; under performance of the donor & releases from other government units worth UGX 2,214,950,254; \uf0b7 The DLG did not have an approved strategic plan that is aligned to the NDP-III at the time of audit \uf0b7 The district mischarged expenditure worth UGX.44, 007,809 on wrong budget lines. \uf0b7 I noted that the entity did not prepare monthly wage, pension and gratuity performance analysis and did not submit quarterly returns on payroll to MoPS. \uf0b7 I noted that out of the total receipts/ Warrants for Covid-relief funds UGX.39,990,000 the entity did not absorb any Funds. \uf0b7 I noted Drug Stock Outs and Expired medicines in Ngora HC. IV \uf0b7 I noted Lack of land titles for the district land \uf0b7 I noted un recovered youth group funds worth UGX.930,137,986. |\n| 2 | 15 | Soroti Regional Referral Hospital Opinion Un-Qualified | \uf0b7 I noted a number of anomalies during review of the hospital pension & salary payrolls such as; Failure to submit wage estimates to MoPs, over payment of salary worth UGX 8,16,582; Underpayment of salary worth UGX.1,039,133payment of salaries worth UGX 15,516,178 to seven (7) staffs that was no longer in service and irregular deduction of loan instalments worth UGX.61,946,480. |", "metadata": {"page": 395, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | due (Interest Exclusive) of UGX. 559,850,500 representing 18%, leaving an outstanding balance of UGX. 478, 531,250 under the Uganda Women Entrepreneurship Program (UWEP). | Unnamed: 2 |\n|---:|:-------------|:-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | \uf0b7 I noted an over/under payment for gratuity worth UGX8,109,089 and UGX.28,338,806 respectively \uf0b7 I noted under/over remittance of salary deductions worth UGX.6,037,243,966 and UGX.30,277 respectively \uf0b7 Additionally, I observed that there was delayed access to payroll by thirteen (13) new employees \uf0b7 I noted under remittance of PAYE deductions worth5.2Mn \uf0b7 I noted under remittance of salary deductions to UCLA/UBA worth 0.84Mn \uf0b7 I noted issues in the implementation of the approved budget such as; under absorption of funds worth UGX.0.33 that was swept back to consolidated fund account and partially quantified and un quantified planned output \uf0b7 The hospital did not have an approved strategic plan that is aligned to the NDP-III at the time of audit \uf0b7 The district mischarged expenditure worth UGX.105Mn on wrong budget lines. \uf0b7 I noted that 03 employees were paid a total of UGX.27.8 million without signed pay change reports. \uf0b7 I noted that the Hospital did not prepare monthly wage, pension and gratuity performance analysis and thus did not submit quarterly returns on payroll to MoPS. \uf0b7 I noted that the RRH received off-budget financing of UGX.1,652,793,876. \uf0b7 I noted. under absorption of COVID-19 relief funds worth UGX.6,068,828 \uf0b7 I noted that the Hospital had stock outs of Essential medicines for supportive treatment of Covid-19 during the year | Unnamed: 2 |\n| 1 | 16 | Otuke DLG Opinion Un-Qualified | \uf0b7 I noted a number of anomalies during review of the district pension & salary payrolls such as; delay to submit wage estimates to MoPs, accrued pension worth UGX.10,251,154; under payments of pension and gratuity of UGX.5,374,525.; an under remittance of salary deductions worth UGX.122,929,219. \uf0b7 I noted Pension, Salary and retentions arears worth UGX.440,155,588 \uf0b7 I noted un recovered youth group funds worth UGX.898,559,384 |", "metadata": {"page": 396, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | due (Interest Exclusive) of UGX. 559,850,500 representing 18%, leaving an outstanding balance of UGX. 478, 531,250 under the Uganda Women Entrepreneurship Program (UWEP). | Unnamed: 2 |\n|---:|:-------------|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | \uf0b7 Additionally, I observed failure to utilize wage funds of UGX.0.97Bn; un-deducted PAYE from political leaders\u2019 gratuity resulting in unpaid tax of UGX.9,454,537 and payment of two (2) staffs worth UGX.13,339,271 off the IPPS \uf0b7 I noted issues in the implementation of the approved budget such as; absorption of funds worth UGX.0.58Bn that was swept back to consolidated fund account; under performance of the donor & releases from other government units worth UGX 1.452Bn \uf0b7 The district did not have an approved strategic plan that is aligned to the NDP-III at the time of audit. \uf0b7 I noted that the district did not prepare monthly wage, pension and gratuity performance analysis and thus did not submit quarterly returns on payroll to MoPS. \uf0b7 I noted that one employee was paid a total of UGX.18 million without signed pay change reports. \uf0b7 I also noted un recovered YLP and UWEP funds worth UGX.1,514,330,911 \uf0b7 I noted that the district received off-budget financing from donors \uf0b7 I noted that the district only recovered UGX.185,893,762 (31%) out of disbursed amount of UGX.597,983,600 (Interest Inclusive) leaving an outstanding amount of UGX.412,089,838 disbursed in financial Years 2016/2017,2017/2018, 2018/2019 and 2020/2021. | Unnamed: 2 |\n| 1 | | Moroto Branch | \uf0b7 Summary of Key Findings |\n| 2 | 1.0 | Moroto DLG Opinion Unqualified | \uf0b7 I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs; payment of salaries worth UGX. 944,615 to two (2) staffs that was no longer in service \uf0b7 Additionally, I observed that there was delayed access to payroll by two (02) new employees and nine (9) pensioners; failure to utilize wage funds UGX.1.9 Bn; un-deducted PAYE from political leaders\u2019 gratuity resulting in unpaid tax of UGX. 16,712,548 and payment of one hundred twenty six (126) staffs worth UGX. 113,636,936 off the IPPS \uf0b7 I noted Under payment of pension/ gratuity worth UGX 969,963 \uf0b7 Over remittance of salaries worth UGX. 42,443,292. \uf0b7 I noted that loan deductions amounting to UGX. 444 million relating to 236 employees lacked letters of undertaking. |", "metadata": {"page": 397, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | due (Interest Exclusive) of UGX. 559,850,500 representing 18%, leaving an outstanding balance of UGX. 478, 531,250 under the Uganda Women Entrepreneurship Program (UWEP). | Unnamed: 2 |\n|---:|:-------------|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | \uf0b7 I noted a number of issues in the implementation of the approved budget such as; incomplete works; partial and non- implementation of activities worth UGX. 0.842Bn under absorption of funds worth UGX. 2.173 Bn that was swept back to consolidated fund account; under performance of the donor & releases from other government units worth UGX.4,318,906,529 delayed submission of quarterly monitoring reports to OPM & MoFPED Under performance of the URF fund worth UGX 9,622,000 \uf0b7 I noted Failure to maintain a repayments ledger for all YIG\u2019s (Youth Interest Groups) I noted Failure to maintain a repayments ledger for all UWEP Groups. | Unnamed: 2 |\n| 1 | 2 | Napak DLG Opinion Unqualified | \uf0b7 I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, Over payment of salaries worth UGX.25,677,705 \uf0b7 Additionally, I observed that there was delayed access to payroll by fifteen (15) new employees and one (01) pensioners; failure to utilize wage funds of UGX. 0.7 Billion; un-deducted PAYE from political leaders\u2019 gratuity resulting in unpaid tax of UGX. UGX 9,299,652. \uf0b7 I noted a number of issues in the implementation of the approved budget such as; incomplete works; partial implementation; under absorption of funds worth UGX. 2.406 Bn that was swept back to consolidated fund account; under performance of the donor & releases from other government units worth UGX.88,076,485; delayed submission of quarterly monitoring reports to OPM & MoFPED \uf0b7 Overpayment of salaries to 04 staff worth UGX. 263,929 arising from wrong scale. \uf0b7 I noted Under payment of pension/ gratuity worth UGX 274,445,221 \uf0b7 Over remittance of salaries worth 212,895,556. \uf0b7 I noted that the entity\u2019s strategic plan was prepared but not yet approved by NDP \uf0b7 I noted mischarges worth UGX. 23,485,083 by the district |\n| 2 | 3 | Abim DLG Qualified Opinion | \uf0b7 I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs; Overpayments of salaries worth UGX. 2,172,750. |", "metadata": {"page": 398, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | of UGX. 1,073,044,082 more than the amount warrantied by Ugx. 224,945,899. The trial balance also indicate a figure of Ugx.1,194,065 \uf0b7 I noted Statement of Cash Flow indicates a total amount from operating, investing and financing activities as Ugx.17,850,462,341 while the payment file indicates it as Ugx.17,808,775,851 leading to an overstatement of Ugx. 41,686,490. \uf0b7 I noted Unsupported receivables figure in the Statement Of Financial Position of UGX. 1,683,003,314 as there is no schedule of receivables attached to the financial statement. | Unnamed: 2 |\n|---:|-------------:|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 4 | Kaboong DLG Opinion Unqualified | \uf0b7 I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, Over payment of salaries worth UGX.12,181,796; failure to utilize wage funds of UGX. UGX.1.9billion.; un-deducted PAYE from political leaders\u2019 gratuity resulting in unpaid tax of UGX. 9,870,780 I noted a number of issues in the implementation of the approved budget such; incomplete works; partial implementation of activities, under absorption of funds worth UGX.2.042Bn that was swept back to consolidated fund account; delayed submission of quarterly monitoring reports to OPM & MoFPED \uf0b7 The district mischarged expenditure worth UGX.275, 847,736 on wrong budget lines. \uf0b7 I noted under remittance of salaries worth UGX. 55,693,284 \uf0b7 The district mischarged expenditure worth UGX. 551,346,221 on wrong budget lines. \uf0b7 I noted 93 vacant positions at the district \uf0b7 I noted unbudgeted Funds from Ministry of Education and Sports to Kaabong DLG UGX.42,343,319 \uf0b7 I noted Irregular disbursement of NUSAF 3 Funds to M/S Agromax (U) Limited UGX.717,390,988 |\n| 1 | 5 | Amudat DLG Opinion Unqualified | \uf0b7 I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, irregular deduction of loan instalments worth UGX.1,036,328; failure to utilize wage funds of UGX.0.851 billion un -deducted PAYE from political leaders\u2019 gratuity resulting in unpaid tax of UGX.6,432,420. and payment of two hundred two (222) staffs worth UGX.161,371,533 off the IPPS \uf0b7 I noted a number of issues in the implementation of the approved budget such as; incomplete works; partial |", "metadata": {"page": 400, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | of UGX. 1,073,044,082 more than the amount warrantied by Ugx. 224,945,899. The trial balance also indicate a figure of Ugx.1,194,065 \uf0b7 I noted Statement of Cash Flow indicates a total amount from operating, investing and financing activities as Ugx.17,850,462,341 while the payment file indicates it as Ugx.17,808,775,851 leading to an overstatement of Ugx. 41,686,490. \uf0b7 I noted Unsupported receivables figure in the Statement Of Financial Position of UGX. 1,683,003,314 as there is no schedule of receivables attached to the financial statement. | Unnamed: 2 |\n|---:|:-------------|:-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | implementation and quantified under absorption of funds worth UGX.4.3Bn that was swept back to consolidated fund account; under performance of the donor & releases from other government units worth UGX.1,744,210,000; delayed submission of quarterly monitoring reports to OPM & MoFPED \uf0b7 The district mischarged expenditure worth UGX.275, 847,736 on wrong budget lines. \uf0b7 Over remittance of salaries worth UGX. 36,510,817 \uf0b7 I further noted that all loan deductions relating to 7 employees did not have evidence of consent by the employees \uf0b7 UGX.101,273,688 was paid as residual arrears to 2 pensioners who had not been verified (and thus not part of schedule) by MoFPED \uf0b7 I noted that the entity had not prepared and approved a strategic plan that is aligned to the NDP-III at the time of audit. \uf0b7 I noted that district failed to recover worth UGX.390,319,125 of YLP funds \uf0b7 I noted that the district has outstanding balance worth UGX.390,319,125 from UWEP | Unnamed: 2 |\n| 1 | 6 | Kotido DLG Opinion Unqualified | \uf0b7 I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs; payment of salaries worth UGX.1,395,233 to two (2) staffs that was no longer in service. \uf0b7 Additionally, I observed that there was delayed access to payroll by thirty nine (39) new employees; failure to utilize wage funds of UGX.4.127billion; un-deducted PAYE from political leaders\u2019 gratuity resulting in unpaid tax of UGX.8, 766,597. \uf0b7 Under remittance of salary deduction worth UGX.18, 888,478. \uf0b7 I noted that the district has unauthorized loan deductions worth UGX.196,780,103 \uf0b7 I noted that the Kotido district did not have an approved strategic plan that is aligned to NDP-III by the time of audit. \uf0b7 I noted a number of issues in the implementation of the approved budget such as; incomplete works; partial implementation and no quantified activities under absorption of funds worth UGX.1,291,391,337that was swept back to consolidated fund account; under performance of the donor & releases from other government units worth UGX.1,603,270,000; delayed submission of quarterly monitoring reports to OPM & MoFPED |\n| 2 | 7 | Kotido MC | \uf0b7 I noted a number of anomalies during review of the municipal council pension & salary payrolls such as; Failure to submit wage |", "metadata": {"page": 401, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Opinion Unqualified | estimates to MoPs,; payment of salaries worth UGX.1,819,248 to two (2) staffs that was no longer in service ; failure to utilize wage funds of UGX.0.8 billion.; un-deducted PAYE from political leaders\u2019 gratuity resulting in unpaid tax of UGX.12,448,800 and payment of sixteen (16) staffs worth UGX.68,011,511 off the IPPS \uf0b7 I noted a number of issues in the implementation of the approved budget such as;; incomplete works; partial implantation non quantified under absorption of funds worth UGX.211,565,285 873 that was swept back to consolidated fund account; under performance of the donor & releases from other government units worth UGX.1,089,757,389; delayed submission of quarterly monitoring reports to OPM & MoFPED \uf0b7 I noted Over payment of salaries worth UGX.882,243 to 25 staff arising from wrong scale \uf0b7 I noted under remittance of salaries worth UGX. 43,787,620 \uf0b7 I noted that the Municipal Council has unauthorized loan deductions worth UGX.14.77 million \uf0b7 I noted that the municipal council had not prepared and approved a strategic plan that is aligned to the NDP-III at the time of audit. \uf0b7 The municipal has un recovered UWEP funds worth UGX.277,734,805. |\n|---:|-------------:|:--------------------------------|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 8 | Karenga DLG Opinion Unqualified | \uf0b7 I noted anomalies during review of the district pension & salary payrolls such as; seventy-three (73) vacant positions; failure to utilize wage funds of UGX.1.089Bn.; un-deducted PAYE from political leaders\u2019 gratuity resulting in unpaid tax of UGX.5,294,160 and payment of eight (8) staffs worth UGX. 28,433,650 off the IPPS; under remittance of employee salary deductions worth UGX.361,889,043 \uf0b7 I noted issues in the implementation of the approved budget such as; under absorption of funds worth UGX.636,616,391 that was swept back to consolidated fund account; under performance of the donor & releases from other government units worth UGX.4,959,037,208 \uf0b7 The DLG did not have an approved strategic plan that is aligned to the NDP-III at the time of audit \uf0b7 The district mischarged expenditure worth UGX.275, 847,736 on wrong budget lines \uf0b7 I noted that Karenga district did not include IPPS recurrent costs in its budget. |", "metadata": {"page": 402, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Opinion Unqualified | estimates to MoPs,; payment of salaries worth UGX.1,819,248 to two (2) staffs that was no longer in service ; failure to utilize wage funds of UGX.0.8 billion.; un-deducted PAYE from political leaders\u2019 gratuity resulting in unpaid tax of UGX.12,448,800 and payment of sixteen (16) staffs worth UGX.68,011,511 off the IPPS \uf0b7 I noted a number of issues in the implementation of the approved budget such as;; incomplete works; partial implantation non quantified under absorption of funds worth UGX.211,565,285 873 that was swept back to consolidated fund account; under performance of the donor & releases from other government units worth UGX.1,089,757,389; delayed submission of quarterly monitoring reports to OPM & MoFPED \uf0b7 I noted Over payment of salaries worth UGX.882,243 to 25 staff arising from wrong scale \uf0b7 I noted under remittance of salaries worth UGX. 43,787,620 \uf0b7 I noted that the Municipal Council has unauthorized loan deductions worth UGX.14.77 million \uf0b7 I noted that the municipal council had not prepared and approved a strategic plan that is aligned to the NDP-III at the time of audit. \uf0b7 The municipal has un recovered UWEP funds worth UGX.277,734,805. |\n|---:|:-------------|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | \uf0b7 I noted that the entity did not prepare monthly wage, pension and gratuity performance analysis and thus did not submit quarterly returns on payroll to MoPS. \uf0b7 I noted un quantified, partially implemented and un implemented planned output \uf0b7 I noted underperformance of maintenance funds worth UGX.35,851,027 \uf0b7 I noted that administrative advances worth UGX.36,367,220 remained unaccounted for at year end | Unnamed: 2 |\n| 1 | 9 | Nakapiripirit DLG Opinion Unqualified | \uf0b7 I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, Over payment of salary worth UGX.6,225,884; Underpayment of salary worth UGX. 120,957,229; pension worth UGX.102,547,496 and payment of residual arrears to 17 pensioners (not part of schedule) worth UGX.228,354,584 \uf0b7 I noted outstanding receivables worth UGX.748,268,485 by year end \uf0b7 I noted outstanding payables worth UGX.204,060,122 by year end \uf0b7 Additionally, I observed that there was delayed access to payroll by four (4) new employees and five (5) pensioners; failure to utilize wage funds of UGX.0.8 Bn, un-deducted PAYE from political leaders\u2019 gratuity resulting in unpaid tax of UGX.11,064,133and payment of twenty-six (6) staff and two (2) pensioners worth UGX.67,526,067 off the IPPS; over/under remittance of employee salary deductions worth UGX.12,510,739 and UGX.30,390,380 respectively \uf0b7 The DLG did not have an approved strategic plan that is aligned to the NDP-III at the time of audit \uf0b7 I noted partially quantified, partially implemented and un implemented planned output \uf0b7 I noted issues in the implementation of the approved budget such as; under absorption of funds worth UGX.387,179,529 that was swept back to consolidated fund account; under performance of the donor & releases from other government units worth UGX.3,798,701,446; \uf0b7 I noted that the district did not prepare monthly wage, pension and gratuity performance analysis and thus did not submit quarterly returns on payroll to MoPS \uf0b7 . \uf0b7 I noted that funds to the tune of UGX.37,212,320 were irregularly diverted from the activities on which they were |", "metadata": {"page": 403, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Opinion Unqualified | estimates to MoPs,; payment of salaries worth UGX.1,819,248 to two (2) staffs that was no longer in service ; failure to utilize wage funds of UGX.0.8 billion.; un-deducted PAYE from political leaders\u2019 gratuity resulting in unpaid tax of UGX.12,448,800 and payment of sixteen (16) staffs worth UGX.68,011,511 off the IPPS \uf0b7 I noted a number of issues in the implementation of the approved budget such as;; incomplete works; partial implantation non quantified under absorption of funds worth UGX.211,565,285 873 that was swept back to consolidated fund account; under performance of the donor & releases from other government units worth UGX.1,089,757,389; delayed submission of quarterly monitoring reports to OPM & MoFPED \uf0b7 I noted Over payment of salaries worth UGX.882,243 to 25 staff arising from wrong scale \uf0b7 I noted under remittance of salaries worth UGX. 43,787,620 \uf0b7 I noted that the Municipal Council has unauthorized loan deductions worth UGX.14.77 million \uf0b7 I noted that the municipal council had not prepared and approved a strategic plan that is aligned to the NDP-III at the time of audit. \uf0b7 The municipal has un recovered UWEP funds worth UGX.277,734,805. |\n|---:|:-------------|:-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | budgeted and spent on other activities without seeking and obtaining the necessary approvals. \uf0b7 Irregularities in evaluation and award of contract to Ramiram Company Ltd for the construction of a teachers\u2019 house in Doo Primary under procurement reference NAKP543/WRKS/20- 21/00003 \uf0b7 The district entered into a VAT exclusive contract with Bole Engineering Ltd (TIN:) vide NAKP543/WRKS/20-21/00005 worth UGX.55,000,000 despite the company being registered for VAT | Unnamed: 2 |\n| 1 | 10 | Moroto MC Opinion Unqualified | \uf0b7 I noted anomalies during review of the Municipal pension & salary payrolls such as; Failure to submit wage estimates to MoPs Underpayment of salary worth UGX. 359,225; \uf0b7 Additionally, I observed that there was delayed access to payroll by two (2) pensioners; failure to utilize wage funds of UGX.0.32 Bn; un-deducted PAYE from political leaders\u2019 gratuity resulting in unpaid tax of UGX.3,314,340 over/under remittance of employee salary deductions worth UGX.5,297,009 and under UGX.1,329,429 respectively \uf0b7 The MC did not have an approved strategic plan that is aligned to the NDP-III at the time of audit \uf0b7 I noted issues in the implementation of the approved budget such as; under performance of the donor & releases from other government units worth UGX. 439,621,456; un quantified planned output \uf0b7 I noted that the Municipal Council did not prepare monthly wage, pension and gratuity performance analysis and thus did not submit quarterly returns on payroll to MoPS . \uf0b7 I noted that Expenditure amounting to UGX.40,544,000 remained unsupported as at the close of the financial year |\n| 2 | 11 | Nabilatuk DLG Opinion Unqualified | \uf0b7 I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, Over payment of salary worth UGX.41,886,731; Underpayment of salary worth UGX.88,251,765 irregular deduction of loan instalments of twenty-seven (27) employees worth UGX.32,111,398 and excess loan deductions for eighteen (18) employees worth UGX.23,960,268 \uf0b7 I noted payments to non-existent staff worth UGX.12,263,143 \uf0b7 I noted over/under remittance of employee salary deductions worth UGX.22,136,522 and UGX.28,681,822 respectively \uf0b7 I noted outstanding receivables worth UGX.306,557,669. \uf0b7 Additionally, I observed that there was delayed access to payroll by twenty-seven (27) new employees; failure to utilize wage funds of UGX.0.766 Bn; un-deducted PAYE from political leaders\u2019 |", "metadata": {"page": 404, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Opinion Unqualified | estimates to MoPs,; payment of salaries worth UGX.1,819,248 to two (2) staffs that was no longer in service ; failure to utilize wage funds of UGX.0.8 billion.; un-deducted PAYE from political leaders\u2019 gratuity resulting in unpaid tax of UGX.12,448,800 and payment of sixteen (16) staffs worth UGX.68,011,511 off the IPPS \uf0b7 I noted a number of issues in the implementation of the approved budget such as;; incomplete works; partial implantation non quantified under absorption of funds worth UGX.211,565,285 873 that was swept back to consolidated fund account; under performance of the donor & releases from other government units worth UGX.1,089,757,389; delayed submission of quarterly monitoring reports to OPM & MoFPED \uf0b7 I noted Over payment of salaries worth UGX.882,243 to 25 staff arising from wrong scale \uf0b7 I noted under remittance of salaries worth UGX. 43,787,620 \uf0b7 I noted that the Municipal Council has unauthorized loan deductions worth UGX.14.77 million \uf0b7 I noted that the municipal council had not prepared and approved a strategic plan that is aligned to the NDP-III at the time of audit. \uf0b7 The municipal has un recovered UWEP funds worth UGX.277,734,805. |\n|---:|:-------------|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | gratuity resulting in unpaid tax of UGX.111,240 and payment of thirty-five (35) staff pensioners worth UGX.52,863,034 off the IPPS and residual arrears to two (2) staff UGX.3,128,128 \uf0b7 The district did not have an approved strategic plan that is aligned to the NDP-III at the time of audit \uf0b7 I noted a number of issues in the implementation of the approved budget such as; un implemented works on construction of Nataparengan piped water system and rehabilitation of Lorukumo piped water system; under absorption of funds worth UGX.353,461,659 that was swept back to consolidated fund account; under performance of the donor & releases from other government units worth UGX.686,812,859; \uf0b7 I noted partially quantified and partially implemented planned output \uf0b7 I noted that the district did not prepare monthly wage, pension and gratuity performance analysis and thus did not submit quarterly returns on payroll to MoPS \uf0b7 I noted that Nabilatuk District received off-budget financing to a tune of UGX.12,464,800 directly from the Drylands Projects | Unnamed: 2 |\n| 1 | | Mbale Branch | Summary of Key Findings |\n| 2 | 1.0 | Bulambuli DLG Opinion Unqualified | \uf0b7 I noted a number of anomalies during review of the DLG pension & salary payrolls such as; delay to submit wage estimates to MoPs; Underpayment of payroll worth UGX.53, 413,352; Wrong computation of gratuity worth net overpayment of UGX. 4,908,163 and payment of salaries worth UGX.799, 094 to one (1) staff that was no longer in service. \uf0b7 I noted that the entity had receivables worth UGX 865,908,605 and had Payables worth UGX.5,000,000 at close of financial year \uf0b7 Additionally, I observed that there was failure to utilize wage funds of UGX.1.6Bn; un-deducted PAYE from political leaders\u2019 gratuity resulting in unpaid tax of UGX.16,798,690and payment of nine (9) pensioners worth UGX.170,017,059 off the IPPS; partially implemented output worth UGX. 0.863Bn and un implemented output worth UGX.0.558Bn \uf0b7 I noted that the District LG did not prepare monthly wage, pension and gratuity performance analysis report for submission to MoPS \uf0b7 I noted a number of issues in the implementation of the approved budget such as; shoddy works at Bumugusha - Sisiyi Road, Gimayote - Malama Road, the boreholes; incomplete works on Buyaga-Muyembe road, Bulaago and Bwikhonge Health Centre IIs to IIIs; under absorption of funds worth UGX.2,653,035,652 that was swept back to consolidated fund |", "metadata": {"page": 405, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Opinion Unqualified | estimates to MoPs,; payment of salaries worth UGX.1,819,248 to two (2) staffs that was no longer in service ; failure to utilize wage funds of UGX.0.8 billion.; un-deducted PAYE from political leaders\u2019 gratuity resulting in unpaid tax of UGX.12,448,800 and payment of sixteen (16) staffs worth UGX.68,011,511 off the IPPS \uf0b7 I noted a number of issues in the implementation of the approved budget such as;; incomplete works; partial implantation non quantified under absorption of funds worth UGX.211,565,285 873 that was swept back to consolidated fund account; under performance of the donor & releases from other government units worth UGX.1,089,757,389; delayed submission of quarterly monitoring reports to OPM & MoFPED \uf0b7 I noted Over payment of salaries worth UGX.882,243 to 25 staff arising from wrong scale \uf0b7 I noted under remittance of salaries worth UGX. 43,787,620 \uf0b7 I noted that the Municipal Council has unauthorized loan deductions worth UGX.14.77 million \uf0b7 I noted that the municipal council had not prepared and approved a strategic plan that is aligned to the NDP-III at the time of audit. \uf0b7 The municipal has un recovered UWEP funds worth UGX.277,734,805. |\n|---:|:-------------|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | account; under performance of the donor & releases from other government units worth UGX.234,118787; non submission of quarterly monitoring reports to OPM & MoFPED; delayed submission of performance reports and unremitted lower local government revenue worth UGX 47,216,000 \uf0b7 The District mischarged expenditure worth UGX 103,936,059 on wrong budget lines. \uf0b7 I observed that key positions, including that of District engineer, District production officer, District education officer, and District planner had remained vacant by end of year. \uf0b7 I noted drug stock out at Bulaago Health Centre \uf0b7 I observed that the district lacked vital road equipment such as: Motor Grader, Wheel Loader, Bulldozer, Excavator and Cargo Truck \uf0b7 I noted an Under-deduction of LST worth UGX 214,800,000 and PAYE worth UGX 32,139,829. | Unnamed: 2 |\n| 1 | 2 | Manafwa DLG Opinion Unqualified | \uf0b7 I noted a number of anomalies during review of the DLG pension & salary payrolls such as; failure to submit wage estimates to MoPs, over payment of salaries worth UGX. 14,044,594; Underpayment of salaries worth UGX. 10,735,580; Wrong computation of gratuity worth net overpayment of UGX. 14,474,704 \uf0b7 I noted an over and under remittance of employee salary deductions worth UGX 129,973,902 \uf0b7 I observed that there was failure to utilize wage funds worth UGX.0.890 billion \uf0b7 I noted under deduction of PAYE from employee salary worth UGX. 20,600,350. \uf0b7 I noted a number of issues in the implementation of the approved budget such as; under absorption of funds worth UGX. 2,423,640,138 that was swept back to consolidated fund account; under performance of the donor & releases from other government units worth UGX.2,041,524,555; delayed submission of quarterly monitoring reports to OPM & MoFPED; partial implementation of planned activities and under performance of funds meant for maintenance worth UGX. 7,252,593 \uf0b7 The DLG mischarged expenditure worth UGX. 476,473,064 on wrong budget lines \uf0b7 I however noted that UGX. 2,521,572 was paid as residual arrears to 10 staff and 2 pensioners who had not been verified (and thus not part of schedule) by MoFPED. |", "metadata": {"page": 406, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Opinion Unqualified | estimates to MoPs,; payment of salaries worth UGX.1,819,248 to two (2) staffs that was no longer in service ; failure to utilize wage funds of UGX.0.8 billion.; un-deducted PAYE from political leaders\u2019 gratuity resulting in unpaid tax of UGX.12,448,800 and payment of sixteen (16) staffs worth UGX.68,011,511 off the IPPS \uf0b7 I noted a number of issues in the implementation of the approved budget such as;; incomplete works; partial implantation non quantified under absorption of funds worth UGX.211,565,285 873 that was swept back to consolidated fund account; under performance of the donor & releases from other government units worth UGX.1,089,757,389; delayed submission of quarterly monitoring reports to OPM & MoFPED \uf0b7 I noted Over payment of salaries worth UGX.882,243 to 25 staff arising from wrong scale \uf0b7 I noted under remittance of salaries worth UGX. 43,787,620 \uf0b7 I noted that the Municipal Council has unauthorized loan deductions worth UGX.14.77 million \uf0b7 I noted that the municipal council had not prepared and approved a strategic plan that is aligned to the NDP-III at the time of audit. \uf0b7 The municipal has un recovered UWEP funds worth UGX.277,734,805. |\n|---:|:-------------|:------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | \uf0b7 I noted that 2 employees were paid a total of UGX. 7,461,459 without signed pay change reports. \uf0b7 I noted that the DLG did not prepare monthly wage, pension and gratuity performance analysis and thus did not submit quarterly returns on payroll to MoPS. \uf0b7 I noted outstanding payables worth UGX. 1,239,952,064. | Unnamed: 2 |\n| 1 | 3 | TORORO DLG OPINION: UNQUALIFIED | \uf0b7 I noted a number of anomalies during review of the DLG pension & salary payrolls such as; Failure to submit wage estimates to MoPs, over payment of salaries worth UGX.4,068,031; Underpayment of salaries worth UGX.15,716,191 and payment of salaries worth UGX.57,446,500 to staffs that was no longer in service accrued pension worth UGX.47,240,461 \uf0b7 I noted an over and under remittance of employee salary deductions worth UGX.6,208,787 \uf0b7 Additionally, I observed that there was delayed access to payroll by one hundred seventeen (117) new employees; failure to utilize wage funds of UGX.2.18 Bn, un-deducted PAYE from political leaders\u2019 gratuity resulting in unpaid tax of UGX. 11,370,060 and payment of four (4) staffs worth UGX 3,683,801 off the IPPS \uf0b7 I noted a number of issues in the implementation of the approved budget such as; failure to quantify planned output; partial and non- implementation of planned activities; under absorption of funds worth UGX. 2,597,410,656 that was swept back to consolidated fund account; under performance of the donor & releases from other government units worth UGX. 11.87Bn. \uf0b7 The DLG mischarged expenditure worth UGX.45,068,279 on wrong budget lines. \uf0b7 I noted that the DLG did not prepare monthly wage, pension and gratuity performance analysis reports and did not submit quarterly returns on payroll to MoPS \uf0b7 I noted payables worth UGX.335, 571,661 outstanding at year end. |\n| 2 | 4 | MBALE CITY OPINION: Unqualified | \uf0b7 I noted a number of anomalies during review of the city pension & salary payrolls such as; Failure to submit wage estimates to MoPs, Over payment of salary and pension worth UGX.810,144,208; Underpayment of salary and pension worth UGX.915,374,687; Wrong computation of salaries worth net overpayment of UGX.91,569,052; payment of salaries worth UGX 30,376,995 to twenty six (26) staffs that were no longer in service and irregular deduction of loan instalments of one hundred seventeen (117) worth UGX. 159,385,584. \uf0b7 I noted receivables from other UWEP, YLP and other debtors |", "metadata": {"page": 407, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Opinion Unqualified | estimates to MoPs,; payment of salaries worth UGX.1,819,248 to two (2) staffs that was no longer in service ; failure to utilize wage funds of UGX.0.8 billion.; un-deducted PAYE from political leaders\u2019 gratuity resulting in unpaid tax of UGX.12,448,800 and payment of sixteen (16) staffs worth UGX.68,011,511 off the IPPS \uf0b7 I noted a number of issues in the implementation of the approved budget such as;; incomplete works; partial implantation non quantified under absorption of funds worth UGX.211,565,285 873 that was swept back to consolidated fund account; under performance of the donor & releases from other government units worth UGX.1,089,757,389; delayed submission of quarterly monitoring reports to OPM & MoFPED \uf0b7 I noted Over payment of salaries worth UGX.882,243 to 25 staff arising from wrong scale \uf0b7 I noted under remittance of salaries worth UGX. 43,787,620 \uf0b7 I noted that the Municipal Council has unauthorized loan deductions worth UGX.14.77 million \uf0b7 I noted that the municipal council had not prepared and approved a strategic plan that is aligned to the NDP-III at the time of audit. \uf0b7 The municipal has un recovered UWEP funds worth UGX.277,734,805. |\n|---:|:-------------|:-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | worth UGX. 2,239,688,779 by the close of the financial year under review. \uf0b7 I noted outstanding payables worth UGX 545,408,158 at the end of the financial year. \uf0b7 The city did not have an approved strategic plan that is aligned to the NDP-III at the time of audit \uf0b7 Additionally, I observed failure to utilize wage funds of UGX. 1,235,588,920; un-deducted PAYE from political leaders\u2019 gratuity resulting in unpaid tax of UGX.3,015,540and payment of staffs and pensioners worth UGX.161,000,660 off the IPPS; unpaid salaries worth UGX.161,000,660; payment of consolidated health lunch allowance to ineligible staff worth UGX.2,170,750 and a net over payment of arrears of UGX.64,535,832 \uf0b7 I noted an over and under deduction of loans worth UGX.13,477,848 and UGX.14,453,773 respectively \uf0b7 I noted that the city did not prepare monthly wage, pension and gratuity performance analysis and did not submit quarterly returns on payroll to MoPS. \uf0b7 I noted a number of issues in the implementation of the approved budget such as; partial and unquantified planned output, partial and non-implemented planned output ; shoddy works on Nambozo road incomplete works on Nambozo road; under absorption of funds worth UGX.1,600,759,501 that was swept back to consolidated fund account; under performance of the donor & releases from other government units worth UGX.3.17Bn; over absorption of funds worth UGX 73,268,000 \uf0b7 The city mischarged expenditure worth UGX 65,785,703 on wrong budget line \uf0b7 I noted non regular maintenance of street lights | Unnamed: 2 |\n| 1 | 5 | Bukwo DLG Opinion Unqualified | \uf0b7 I noted a number of anomalies during review of the DLG pension & salary payrolls such as; Failure to submit wage estimates to MoPs, Over payment of salary worth UGX.4,296,996; Underpayment of salary, gratuity and pension worth UGX.16,337,404 and delayed deletion of 4 staff from the payroll worth UGX.9,328,845 \uf0b7 I noted that the district did not prepare monthly wage, pension and gratuity performance analysis and thus did not submit quarterly returns on payroll to MoPS \uf0b7 Additionally, I observed that there was delayed access to payroll by 0ne (1) new employee and nine (2) pensioners; failure to utilize wage funds of UGX.0.568 billion; un-deducted PAYE from political leaders\u2019 gratuity resulting in unpaid tax of |", "metadata": {"page": 408, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Opinion Unqualified | estimates to MoPs,; payment of salaries worth UGX.1,819,248 to two (2) staffs that was no longer in service ; failure to utilize wage funds of UGX.0.8 billion.; un-deducted PAYE from political leaders\u2019 gratuity resulting in unpaid tax of UGX.12,448,800 and payment of sixteen (16) staffs worth UGX.68,011,511 off the IPPS \uf0b7 I noted a number of issues in the implementation of the approved budget such as;; incomplete works; partial implantation non quantified under absorption of funds worth UGX.211,565,285 873 that was swept back to consolidated fund account; under performance of the donor & releases from other government units worth UGX.1,089,757,389; delayed submission of quarterly monitoring reports to OPM & MoFPED \uf0b7 I noted Over payment of salaries worth UGX.882,243 to 25 staff arising from wrong scale \uf0b7 I noted under remittance of salaries worth UGX. 43,787,620 \uf0b7 I noted that the Municipal Council has unauthorized loan deductions worth UGX.14.77 million \uf0b7 I noted that the municipal council had not prepared and approved a strategic plan that is aligned to the NDP-III at the time of audit. \uf0b7 The municipal has un recovered UWEP funds worth UGX.277,734,805. |\n|---:|:-------------|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | UGX.11,064,570 over and under remittance of employee salary deductions worth UGX.1,789,798 and UGX.14,974,441 respectively \uf0b7 I noted a number of issues in the implementation of the approved budget such as; delayed works at the HCIIs; under absorption of funds worth UGX.2,421,073,740 that was swept back to consolidated fund account; under performance of the donor & releases from other government units worth UGX.6,333,457,050; partial and un quantified planned output and partial and un implemented planned output \uf0b7 The district did not prepare annual monitoring plans neither were quarterly monitoring reports prepared and submitted. \uf0b7 I noted underperformance of budgeted funds for NUSAF-3 projects worth UGX.183,000,000 and URF funds worth UGX.10,265,009 that affected implementation of the programs \uf0b7 I observed that the district lacked vital road equipment like an excavator, a bulldozer, a pedestrian roller and tampers/rammers. \uf0b7 I noted an under absorption of funds worth UGX 1,005,458,204 relating to construction of the college, secondary school and upgrading of HCIIs \uf0b7 The district lacked titles for 36 pieces of its land. | Unnamed: 2 |\n| 1 | 6 | Sironko DLG Opinion Unqualified | \uf0b7 I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, Over payment of salary worth UGX.3,937,076; Underpayment of salary worth UGX.9,336,463 delayed deletion of 3 staff from the payroll worth UGX.2,418,531 and 365 positions vacant \uf0b7 I noted residual arrear payments to one (1) pensioner who was not on the schedule worth UGX.25,856,920 \uf0b7 I noted outstanding receivables worth UGX.1, 395,021,574 and payables worth UGX.1, 271,747,912 by the end of the year. \uf0b7 Additionally, I observed that there was delayed access to payroll by nineteen (19) new employees and two (2) pensioners; un- deducted PAYE from political leaders\u2019 gratuity resulting in unpaid tax of UGX.13,980,570 over/under remittance of employee salary deductions worth UGX.12,620,619 and UGX.18,207,521 respectively \uf0b7 The district did not have an approved strategic plan that is aligned to the NDP-III at the time of audit \uf0b7 I noted partial and unquantified planned output, partial and non- implemented planned output |", "metadata": {"page": 409, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Opinion Unqualified | estimates to MoPs,; payment of salaries worth UGX.1,819,248 to two (2) staffs that was no longer in service ; failure to utilize wage funds of UGX.0.8 billion.; un-deducted PAYE from political leaders\u2019 gratuity resulting in unpaid tax of UGX.12,448,800 and payment of sixteen (16) staffs worth UGX.68,011,511 off the IPPS \uf0b7 I noted a number of issues in the implementation of the approved budget such as;; incomplete works; partial implantation non quantified under absorption of funds worth UGX.211,565,285 873 that was swept back to consolidated fund account; under performance of the donor & releases from other government units worth UGX.1,089,757,389; delayed submission of quarterly monitoring reports to OPM & MoFPED \uf0b7 I noted Over payment of salaries worth UGX.882,243 to 25 staff arising from wrong scale \uf0b7 I noted under remittance of salaries worth UGX. 43,787,620 \uf0b7 I noted that the Municipal Council has unauthorized loan deductions worth UGX.14.77 million \uf0b7 I noted that the municipal council had not prepared and approved a strategic plan that is aligned to the NDP-III at the time of audit. \uf0b7 The municipal has un recovered UWEP funds worth UGX.277,734,805. |\n|---:|:-------------|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | \uf0b7 I noted issues in the implementation of the approved budget such as; delayed works at Buyobo Health Centre, Buteeza/Bumirisa Seed Secondary School; under performance of the donor & releases from other government units worth UGX.31,073,887; \uf0b7 The district lacked land tittles for 14 of its properties \uf0b7 I noted that the district did not prepare monthly wage, pension and gratuity performance analysis and thus did not submit quarterly returns on payroll to MoPS \uf0b7 I noted Un recovered YLP/Women groups funds worth UGX 1,076,861,319 | Unnamed: 2 |\n| 1 | 7 | Namisidwa DLG Opinion UnQualified | \uf0b7 I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, payment of salaries worth UGX.9,737,931 to twelve (12) staffs that were no longer in service over/under remittances of employee salary deductions worth UGX.15,456,000 and UGX.9,368,000 respectively \uf0b7 Additionally, I observed that there was delayed access to payroll by eleven (11) pensioners; failure to utilize wage funds of UGX.1.8 billion; un-deducted PAYE from political leaders\u2019 gratuity resulting in unpaid tax of UGX.10,343,040 and payment of twenty twelve (12) staffs worth UGX.44,528,289 off the IPPS \uf0b7 I noted a number of issues in the implementation of the approved budget such as; Failure to Construct Namboko Seed Secondary School ; delayed works of Mukoto Seed Secondary School ; under absorption of funds worth UGX.1,965,728,111 that was swept back to consolidated fund account; under performance of the donor & releases from other government units worth UGX.639,520,961; delayed submission of quarterly monitoring reports to OPM & MoFPED; Un implemented procurement plan worth UGX 2,601,160,000 and Underperformance of maintenance funds worth UGX.27,667,500. \uf0b7 District received off-budget financing worth UGX.153,248,760 directly from Ministry of Health (MoH) \uf0b7 I noted outstanding receivables worth UGX 1,380,786,175 \uf0b7 \uf0b7 The entity did not prepare and submit the annual monitoring plans to Moped, MoLG and NPA as required. \uf0b7 I noted Underperformance of UWEP/YLP funds worth of UGX.170,000,000 \uf0b7 I noted district land lacked titles |\n| 2 | 8 | Bududa DLG | \uf0b7 I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage |", "metadata": {"page": 410, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Opinion Unqualified | estimates to MoPs, over payment of salary worth UGX. 40,955,029 Underpayment of salary due to wrong salary scales worth UGX 1,770,196 and Wrong computation of gratuity worth net overpayment of UGX. 16,342,974; \uf0b7 I noted payment to twelve (12) employees without signed pay change reports worth UGX. 33,563,249 \uf0b7 Additionally, I observed that there was; failure to utilize wage funds of UGX.0.386 billion; un-deducted PAYE from political leaders\u2019 gratuity resulting in unpaid tax of UGX. 25,271,520; over/under remittance of employee salary deductions wort UGX. 374,322,700 and UGX. 2,544,986 respectively and residual arrears to 10 staff and 5 pensioners (not part of schedule) worth UGX. 53,269,453 \uf0b7 I noted a number of issues in the implementation of the approved budget such as; incomplete works on five Community Access Roads (CARs); under absorption of funds worth UGX. 3,358,629,901 that was swept back to consolidated fund account; under performance of the donor & releases from other government units worth UGX.12,509,500; Under performance of maintenance funds worth UGX. 2,807,020 and un implemented procurement plan worth UGX.357,489,000 \uf0b7 I noted an under absorption of preliminary expenditures worth UGX 327,911,000 \uf0b7 I noted partial and non-implemented planned output \uf0b7 The district mischarged expenditure worth UGX. 53,269,453 on wrong budget lines. \uf0b7 It was noted that the district did not conduct revenue assessment. \uf0b7 I noted that the lacked District signed MOUs for Donor funds received during the year worth UGX. 25,203,300 from United Nations Children Fund (UNICEF) and World Health Organization (WHO). |\n|---:|-------------:|:-------------------------------|:------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 9 | KIBUKU DLG Opinion Unqualified | \uf0b7 I noted a number of anomalies during review of the district pension & salary payrolls such as; Underpayment of pension worth UGX.97,316,845.; payment of salaries worth UGX.7,336,993 to fourteen (14) staffs that was no longer in service and over remittance of employee salary deductions UGX.430,578,979 \uf0b7 I noted outstanding payables worth UGX 128,739,122 at year end. \uf0b7 I observed that there was delayed access to payroll by twenty- seven (27) new employees and nineteen (19) pensioners and 420 vacant staff positions |", "metadata": {"page": 411, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Opinion Unqualified | estimates to MoPs, over payment of salary worth UGX. 40,955,029 Underpayment of salary due to wrong salary scales worth UGX 1,770,196 and Wrong computation of gratuity worth net overpayment of UGX. 16,342,974; \uf0b7 I noted payment to twelve (12) employees without signed pay change reports worth UGX. 33,563,249 \uf0b7 Additionally, I observed that there was; failure to utilize wage funds of UGX.0.386 billion; un-deducted PAYE from political leaders\u2019 gratuity resulting in unpaid tax of UGX. 25,271,520; over/under remittance of employee salary deductions wort UGX. 374,322,700 and UGX. 2,544,986 respectively and residual arrears to 10 staff and 5 pensioners (not part of schedule) worth UGX. 53,269,453 \uf0b7 I noted a number of issues in the implementation of the approved budget such as; incomplete works on five Community Access Roads (CARs); under absorption of funds worth UGX. 3,358,629,901 that was swept back to consolidated fund account; under performance of the donor & releases from other government units worth UGX.12,509,500; Under performance of maintenance funds worth UGX. 2,807,020 and un implemented procurement plan worth UGX.357,489,000 \uf0b7 I noted an under absorption of preliminary expenditures worth UGX 327,911,000 \uf0b7 I noted partial and non-implemented planned output \uf0b7 The district mischarged expenditure worth UGX. 53,269,453 on wrong budget lines. \uf0b7 It was noted that the district did not conduct revenue assessment. \uf0b7 I noted that the lacked District signed MOUs for Donor funds received during the year worth UGX. 25,203,300 from United Nations Children Fund (UNICEF) and World Health Organization (WHO). |\n|---:|:-------------|:------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | \uf0b7 I noted a number of issues in the implementation of the approved budget such as; I noted partial and unquantified planned output, partial and non-implemented planned output; under absorption of funds worth UGX 5,639,972,053 that was swept back to consolidated fund account; under performance of the donor & releases from other government units worth UGX.789,212,932 and failed submission of quarterly monitoring reports to OPM & MoFPED \uf0b7 The district mischarged expenditure worth UGX.47,252,328 on wrong budget lines \uf0b7 I noted that Kibuku Health Centre IV experienced drug stock outs \uf0b7 I noted that the entity failed to procure assorted medical equipment for upgraded HCs worth UGX.210,937,500 \uf0b7 I noted that the entity failed to conduct pre-bid meetings for 23 contracts as provided for in the tender documents \uf0b7 I noted unrecovered funds from Women groups worth UGX.522,692,690 | Unnamed: 2 |\n| 1 | ARUA BRANCH | Summary of Key Findings | |\n| 2 | 01. | Obongi DLG Opinion Unqualified | \uf0b7 I reviewed funds absorption and noted that UGX.4.6 billion (100%) was spent out of the total receipts of UGX.5.9 billion, resulting in an unabsorbed balance of UGX.1.3 billion. The unabsorbed balance was subsequently swept back to the consolidated fund account. I advised the Accounting Officer to ensure that the activities for which the un absorbed funds were meant are rolled over and implemented in subsequent financial year. \uf0b7 I noted that the District made payroll deductions of UGX.123 million, but did not remit concurrently with the salary payments in 8 out of 12 months. On average, it delayed by 55 days. I advised the Accounting Officer to always ensure that all deductions to UCLA/UBA are remitted concurrently with salary payments. \uf0b7 The ineffectiveness of the system may affect the integrity of the IPPS payroll. \uf0b7 I reviewed the approved Local revenue estimates for the financial year 2020/2021 and noted that the District budgeted to collect UGX. 463,890,000 during the year but collected UGX.318,243,595 representing (69%) performance. The shortfalls in Local Revenue collections of UGX.145,646,405 (31%) were recorded in Local Service Tax, Land Fees , Business Licence, other tax revenues, administrative fees and Application Fees. \uf0b7 I reviewed the District\u2019s revenue performance and noted the |", "metadata": {"page": 412, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | Opinion Unqualified | estimates to MoPs, over payment of salary worth UGX. 40,955,029 Underpayment of salary due to wrong salary scales worth UGX 1,770,196 and Wrong computation of gratuity worth net overpayment of UGX. 16,342,974; \uf0b7 I noted payment to twelve (12) employees without signed pay change reports worth UGX. 33,563,249 \uf0b7 Additionally, I observed that there was; failure to utilize wage funds of UGX.0.386 billion; un-deducted PAYE from political leaders\u2019 gratuity resulting in unpaid tax of UGX. 25,271,520; over/under remittance of employee salary deductions wort UGX. 374,322,700 and UGX. 2,544,986 respectively and residual arrears to 10 staff and 5 pensioners (not part of schedule) worth UGX. 53,269,453 \uf0b7 I noted a number of issues in the implementation of the approved budget such as; incomplete works on five Community Access Roads (CARs); under absorption of funds worth UGX. 3,358,629,901 that was swept back to consolidated fund account; under performance of the donor & releases from other government units worth UGX.12,509,500; Under performance of maintenance funds worth UGX. 2,807,020 and un implemented procurement plan worth UGX.357,489,000 \uf0b7 I noted an under absorption of preliminary expenditures worth UGX 327,911,000 \uf0b7 I noted partial and non-implemented planned output \uf0b7 The district mischarged expenditure worth UGX. 53,269,453 on wrong budget lines. \uf0b7 It was noted that the district did not conduct revenue assessment. \uf0b7 I noted that the lacked District signed MOUs for Donor funds received during the year worth UGX. 25,203,300 from United Nations Children Fund (UNICEF) and World Health Organization (WHO). |\n|---:|:-------------|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | following; \uf0b7 The Entity budgeted to receive UGX.17,548,360,000 as transfers from other Government Units. However, only UGX.14,007,769,263 (80%) was received. The Accounting Officer explained that low Local Revenue performance was due to the effects of COVID 19 lockdown that affected the performance of markets and secondly the disaster of floods impacted negatively on our major source of revenue, fisheries where most landing sites were flooded. \uf0b7 The Entity budgeted to receive UGX.17,548,360,000 as transfers from other Government Units. However, only UGX.14,007,769,263 (80%) was received. The Accounting Officer explained that The under-performance of other government transfers was due to low performance of DRDIP. The funding for DRDIP was only for approved sub projects which were generated by the beneficiary groups. \uf0b7 The District budgeted to receive UGX. 655,424,300 as external/donor financing out of which UGX.630,174,440 (96 %), was receivedThe Accounting Officer explained that External Financing performed very well up to 96% and all planned activities were implemented as planned. The difference of only 4% has had no impact the implementation of the planned activities \uf0b7 Out of the total receipts for the financial year of UGX.27,315,767,447, UGX.42,423,071,166 (92%) was spent by the entity resulting in an unspent balance of UGX. 22,056,617,661 (81%). The unspent balance at the end of the financial year was subsequently swept back to the consolidated fund account. I advised the Accounting Officer to ensure that funds for these activities are in subsequent year un implemented activities rolled over and subsequently ensure the speedy implementation. \uf0b7 I noted that the District received a total of UGX.22,103,714 as capitation grant. I reviewed the bank statements sampled schools and noted that the funds were still on the school accounts by 30th September, 2021 and had hence not been utilized. I advised the Accounting Officer to liaise with relevant authorities and ensure that these funds are put to productive usage. | Unnamed: 2 |\n| 1 | 2.0 | ZOMBO DLG Opinion Unqualified | \uf0b7 I reviewed funds absorption and noted that UGX.12.35 billion (81.78%) was spent out of the total receipts of UGX.15.1 billion, resulting in an unabsorbed balance of UGX.2.75 billion. The unabsorbed balance was subsequently swept back to the consolidated fund account. \uf0b7 A comparison of base pay in the IPPS payroll registers with the salary structure for 2020/21, revealed that 23 staff were paid |", "metadata": {"page": 413, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | September, 2021 and had hence not been utilised. | Unnamed: 2 |\n|---:|-------------:|:---------------------------------------------------|:------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 3 | YUMBE DLG Opinion Unqualified | \uf0b7 I reviewed payroll funds absorption and noted that UGX.22 billion (94%) was spent out of the total receipts of UGX.23.5 billion, resulting in an unabsorbed balance of UGX.1.44 billion. The unabsorbed balance was subsequently swept back to the consolidated fund account. Under absorption of released funds resulted into failure to recruit the required staff. \uf0b7 A review of the pension payroll data and IFMS payments, revealed variances between amounts on the payroll and payments to individual pensioners, leading to over payments of UGX.87,774,282 contrary to article 254 (1) & (3) of the 1995 constitution (as amended). The over payment of pension and gratuity led to over statement of pension expenditure. \uf0b7 A comparison of base pay in the IPPS payroll registers with the salary structure for the financial year 2020/21, revealed that 51 staff were paid using appropriate salary scale but wrong band contrary to Section B\u2013a (6) & (7) of the Uganda Public Service Standing Orders, 2010. The Accounting Officer promised to address it through monthly verification of the payroll. \uf0b7 I noted that UGX.11,772,809 was paid to 9 staff who had either retired, transferred, absconded or died. These were payment for services not rendered to the District resulting in loss of funds to Government. I advised the Accounting Officer to ensure prompt removal of ineligible staff from the payroll. \uf0b7 I noted that whereas UGX.4,904,248,620 was deducted from employees\u2019 salaries to be remitted to different beneficiaries, UGX.4,898,616,110 was remitted, leading to an under remittance of UGX.5,632,510. I advised the Accounting Officer always ensure that full remittances are done to the respective beneficiaries. \uf0b7 I noted that the District made payroll deductions of UGX.1,362,978,294 million, but did not remit concurrently with the salary payments in 5 out of 12 months. On average, it delayed by 35 days. I advised the Accounting Officer to ensure that all deductions to UCLA/UBA are remitted concurrently with salary payments. \uf0b7 I noted delays in the remittance of PAYE deductions to URA of 3 days, in the month of November where deduction was made on 15/11/2020 and the remittance was made on 18/11/2020. The Accounting took note of the observation. \uf0b7 I noted that the District did not subject political leaders\u2019 gratuity totaling to UGX.46,923,600 to the computation of PAYE in IPPS, leading to an under deduction of UGX.10,970,580, contrary to section 19(1) (a) of the Income Tax Act. I advised the Accounting Officer to ensure that political leaders\u2019 gratuity is subjected to tax by including in the gross taxable income when |", "metadata": {"page": 416, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | consolidated fund account. I advised the Accounting Officer to ensure that the rolled over activities are given priority during implementation. \uf0b7 I noted that Management submitted performance reports for Q2, Q3 and Q4 after the deadline. In addition, I did not obtain evidence to confirm that the Accounting Officer Prepared Monitoring Plans and reports which are important in ensuring that the budget performs as expected. \uf0b7 Contrary to Section 34 (1) of the Public Finance Management Act 2015, I observed the District constructed two (2) operating theaterstheatres worth UGX.666,903,480 at Ariwa Health Centre (HC) III and Baraka HC III in the financial year 2017/18 and were not functional and without operating equipment by close of audit. The unutilized operating theatre denies services to the community | Unnamed: 2 |\n|---:|-------------:|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 4 | TEREGO DLG Opinion Unqualified | \uf0b7 Terego District Local Government (DLG), being a newly created District curved out of Arua District, I noted that the payroll for the year under review was managed by Arua DLG. As a result, the pay roll analysis for Terego District was made under the audit of Arua DLG. \uf0b7 I, noted that although the district aligned its targets for the F/Y 2020/2021 with the DDPIII and NDPIII, the District strategic plan had not been approved. I advised the Accounting Officer to urgently prepare and approved a strategic plan that is aligned to NDP-III to facilitate the achievement of the NDP objectives \uf0b7 I reviewed the approved Local revenue estimates for the financial year 2020/2021 and noted that the District budgeted to collect UGX. 116,717,055 during the year but collected UGX.89,153,132 representing (76%) performance. The shortfalls in Local Revenue collections of UGX. UGX.27,563,923(24%) were recorded in Local Service Tax, Land Fees , Business Licence, other tax revenues, administrative fees and Application Fees. \uf0b7 The District budgeted to receive UGX. 23,749,241,508 (revised) as grants from the Treasury. I noted that, UGX. 1,894,332.444 was warranted/ received representing 8% performance. Revenue shortfalls affect the implementation of planned activities. \uf0b7 The Entity budgeted to receive UGX.4,406,498,162 as transfers from other Government Units. However, only UGX.4,006,498,162 (90%) was received. Revenue shortfalls affected the implementation of planned activities. \uf0b7 The District budgeted to receive UGX. 0.8Bn as external/donor financing out of which UGX. 0.4Bn (50%), was received. Revenue shortfalls affect the implementation of planned activities. The Accounting Officer explained that, for external financing the key donor projects funded by UNHCR and UNICEF use the calendar year for Budgeting and reporting as at the close |", "metadata": {"page": 418, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | consolidated fund account. I advised the Accounting Officer to ensure that the rolled over activities are given priority during implementation. \uf0b7 I noted that Management submitted performance reports for Q2, Q3 and Q4 after the deadline. In addition, I did not obtain evidence to confirm that the Accounting Officer Prepared Monitoring Plans and reports which are important in ensuring that the budget performs as expected. \uf0b7 Contrary to Section 34 (1) of the Public Finance Management Act 2015, I observed the District constructed two (2) operating theaterstheatres worth UGX.666,903,480 at Ariwa Health Centre (HC) III and Baraka HC III in the financial year 2017/18 and were not functional and without operating equipment by close of audit. The unutilized operating theatre denies services to the community | Unnamed: 2 |\n|---:|:-------------|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:-------------|\n| 0 | Unnamed: 0 | of the financial year 2020/2021 their Budget release was only for the six months thus explaining the poor performance. \uf0b7 Out of the total receipts for the financial year of UGX. 6.5Bn, UGX. 5.9Bn (91%) was spent by the entity resulting in an unspent balance of UGX. 0.6 Bn (91%). The unspent balance at the end of the financial year was subsequently swept back to the consolidated fund account. The funds were meant for activities that were not fully implemented by the end of the financial year and these include Salaries worth UGX.475,796,820. \uf0b7 During field Inspection carried out on service delivery areas at Yinga HC III, I observed the following; \uf0d8 Fridge for storage of blood donated by IRC and UNICEF was not installed consequently, cases of anaemia are referred to other facilities; \uf0d8 Motorised borehole that was installed by OXFAM had been disconnected for six months; \uf0d8 the piped water system installed at the facility had broken down for the period of six months; \uf0d8 As per interview of in-charge of the facility, the facility had not been supplied drugs for two quarters leading to drug stock-outs. This led to the referral of cases that would have been handled at the facility; \uf0d8 The generator that was donated to the HC has never been installed during the two years it has been at the facility \uf0b7 I reviewed of the governance structures of Terego DLG and noted that the district did not have a District Land Board in place. Consequently, the institutional land of the district was not titled. Further, there were reports of land disputes as seen in the Council Minutes dated 21st May 2021. \uf0b7 I reviewed the execution of the annual procurement plan of Terego district for the year under review revealed that projects worth UGX.740,372,862 were not executed in the year, hence hindering service delivery to the intended beneficiaries. \uf0b7 I reviewed the implementation of the DRDIP project in the district and observed that 16 beneficiary projects funded to the tune of UGX.1,620,066,939 had not yet been implemented. The Accounting Officer promised immediate action. I await the outcome of the Accounting Officers action. | Unnamed: 2 |", "metadata": {"page": 419, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | consolidated fund account. I advised the Accounting Officer to ensure that the rolled over activities are given priority during implementation. \uf0b7 I noted that Management submitted performance reports for Q2, Q3 and Q4 after the deadline. In addition, I did not obtain evidence to confirm that the Accounting Officer Prepared Monitoring Plans and reports which are important in ensuring that the budget performs as expected. \uf0b7 Contrary to Section 34 (1) of the Public Finance Management Act 2015, I observed the District constructed two (2) operating theaterstheatres worth UGX.666,903,480 at Ariwa Health Centre (HC) III and Baraka HC III in the financial year 2017/18 and were not functional and without operating equipment by close of audit. The unutilized operating theatre denies services to the community | Unnamed: 2 |\n|---:|-------------:|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 5 | NEBBI DLG Opinion Unqualified | \uf0b7 I noted that the District did not submit wage estimates to MoPS, as required. I advised the Accounting Officer to always submit wage estimates to MoPs by 30th September of the preceding year. \uf0b7 I reviewed funds absorption and noted that UGX.19,924,679,353 (92%) was spent out of the total receipts of UGX. 21,572,885,359, resulting in an unabsorbed balance of UGX. 1,648,206,006. The unabsorbed balance was subsequently swept |", "metadata": {"page": 419, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | are essential in ensuring that the budget performs as expected. \uf0b7 From my review of the annual performance report, I noted that some outputs were not captured in the performance report, these included Purchase and supply of ICT Equipment for Atego Seed Secondary, and Purchase and supply of laboratory equipment to Atego Seed Secondary School. \uf0b7 I noted that the District received a total of UGX.48,565,353. I reviewed the bank statements sampled schools and noted that the funds were still on the school accounts by 30th September, 2021 and had hence not been utilized. | Unnamed: 2 |\n|---:|-------------:|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 6 | NEBBI MC Opinion Unqualified | \uf0b7 I noted that the Municipal Council did not submit wage estimates to MoPs, as required. I advised the Accounting Officer to always submit wage estimates to MoPs by 30th September of the preceding year. \uf0b7 A review of the pension payroll data and IFMS payments, revealed variances between amounts on the payroll and payments to individual pensioners, leading to over payments of UGX. 4,584,882 contrary to article 254 (1) & (3) of the 1995 constitution (as amended). I further noted that there was an under payment of UGX.32,297,600 as well. The Accounting Officer acknowledged the shortcoming and promised future action. \uf0b7 A comparison of base pay in the Integrated Personnel and Payroll System (IPPS) payroll registers with the salary structure for 2020/21, revealed that 6 staff were paid using wrong salary scales, leading to over payments of UGX.3,190,260 contrary to Section B\u2013a (6) & (7) of the Uganda Public Service Standing Orders, 2010. \uf0b7 I noted that whereas UGX.722,140,725 was deducted from employees\u2019 salaries to be remitted to different beneficiaries, UGX.703,333,159 was remitted, leading to an under remittance of UGX.18,807,566. \uf0b7 I noted that the Municipal Council made unauthorized loan deductions totaling UGX.38,493,134. The deductions were from 24 employees that neither had letters of undertaking nor existed in the \u201cactive deduction\u201d or the \u201cmy approval\u201d reports on the PDMS-Payroll Deduction Management System, operated by Payroll Consults Africa (PCA). \uf0b7 I noted that the Municipal Council did not subject political leaders\u2019 gratuity totaling to UGX.10,962,600 to the computation of PAYE in IPPS, leading to an under deduction of UGX.3,288,780 contrary to section 19 (1) (a) of the Income Tax Act. \uf0b7 I noted that, there was minimal movement in receivables as only |", "metadata": {"page": 421, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | are essential in ensuring that the budget performs as expected. \uf0b7 From my review of the annual performance report, I noted that some outputs were not captured in the performance report, these included Purchase and supply of ICT Equipment for Atego Seed Secondary, and Purchase and supply of laboratory equipment to Atego Seed Secondary School. \uf0b7 I noted that the District received a total of UGX.48,565,353. I reviewed the bank statements sampled schools and noted that the funds were still on the school accounts by 30th September, 2021 and had hence not been utilized. | Unnamed: 2 |\n|---:|:-------------|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | UGX.4,156,000 was recovered from the reported amount of UGX.528,709,420 previously, implying no significant effort was put into recovery. \uf0b7 I noted that the Municipal Council had not prepared and approved a strategic plan that is aligned to the NDP-III. \uf0b7 I noted budget underperformance of UGX.2,132,255,571 from government grants and local revenue which affected activity implementation \uf0b7 The municipality failed to spent funds worth UGX.522,335,106 and the unspent balance at the end of the financial year was subsequently swept back to the consolidated fund account. \uf0b7 I noted that UGX.20,661,647 was charged on items which did not reflect the nature of the expenditure. I advised the Accounting Officer to always ensure that the correct codes are charged and seek approvals for any virement or reallocations | Unnamed: 2 |\n| 1 | 7.0 | MARACHA DLG Opinion Unqualified | \uf0b7 I noted that the District did not submit wage estimates to MoPS, as required. I advised the Accounting Officer to always submit wage estimates to MoPs by 30th September of the preceding year. \uf0b7 I reviewed funds absorption and noted unabsorbed balance of UGX. 1.2 billion meant for payment mostly pensioners due to slow processing of pension benefits by the beneficiaries \uf0b7 A comparison of base pay in the IPPS payroll registers with the salary structure for 2020/21, revealed that 4 staff were paid using wrong salary scales, leading to over payments of UGX.25,197,900, and under payment of UGX.544,068 contrary to Section B\u2013a (6) & (7) of the Uganda Public Service Standing Orders, 2010. The Accounting Officer acknowledged the audit observation and promised to follow the audit recommendation. \uf0b7 I noted that UGX.11, 634,613 was paid to 32 staff who had either retired, transferred, absconded or died. I advised the Accounting Officer to ensure prompt removal of staff from the payroll and recover payments of salaries to staff who have left active employment. \uf0b7 I noted that whereas UGX3,361,569,932 was deducted from employees\u2019 salaries to be remitted to different beneficiaries, UGX3,358,721,257 was remitted, leading to an over remittance of UGX.6,609,552 and under remittance of UGX.9,458,227, I advised the Accounting Officer to reconcile IPPS deductions against IFMS remittances and recover the over remittances and pay the under remittances. \uf0b7 I noted that the District made unauthorized loan deductions totaling UGX.100.4 million. The deductions were from 93 employees that neither had letters of undertaking nor existed in |", "metadata": {"page": 422, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | are essential in ensuring that the budget performs as expected. \uf0b7 From my review of the annual performance report, I noted that some outputs were not captured in the performance report, these included Purchase and supply of ICT Equipment for Atego Seed Secondary, and Purchase and supply of laboratory equipment to Atego Seed Secondary School. \uf0b7 I noted that the District received a total of UGX.48,565,353. I reviewed the bank statements sampled schools and noted that the funds were still on the school accounts by 30th September, 2021 and had hence not been utilized. | Unnamed: 2 |\n|---:|:-------------|:-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:-------------------------------------------------------------------|\n| 0 | Unnamed: 0 | the \u201cactive deduction\u201d or the \u201cmy approval\u201d reports on the PDMS-Payroll Deduction Management System, operated by PCA- Payroll Consults Africa. \uf0b7 I noted that the District did not subject political leaders\u2019 gratuity totaling to UGX.37,848,204 to the computation of PAYE in IPPS, leading to an under deduction of UGX.11,377,861, contrary to section 19(1) (a) of the Income Tax Act. \uf0b7 I noted that the District did not prepare monthly wage, pension and gratuity performance analysis and thus did not submit quarterly returns on payroll to MoPS, contrary to Paragraph 2.1 of Establishment Notice No. 1 of 2020. \uf0b7 I noted that 3 staff were paid a total of UGX.15 Million off the IPPS. I advised the Accounting Officer to ensure that salaries, pension and gratuity is processed and paid through the IPPS. \uf0b7 I noted that the strategic plan of Maracha District was still not approved and therefore it was still in draft form. \uf0b7 I reviewed the approved Local revenue estimates for the financial year 2020/2021 and noted that the District budgeted to collect UGX.215,093,000 during the year but collected UGX.143, 183,859 representing (66.6%) performance. The shortfalls in Local Revenue collections of UGX.71,909,141 (33.4%) were recorded in Land fees, business licenses, other tax revenues and Administrative fees and licenses. Revenue shortfalls affected the implementation of planned activities. \uf0b7 The Entity budgeted to receive UGX. 8, 429,617,471 as transfers from other Government Units. However, only UGX. 139, 292,268 (1.7%) was received, Revenue shortfalls affected the implementation of planned activities. \uf0b7 The Entity did not also submit quarterly monitoring reports to the Office of the Prime Minister and MoFPED as required. I advised the Accounting Officer to ensure that monitoring plans and reports are timely submitted accordingly. \uf0b7 Contrary to Regulation 47 of the PPDA (Contract) Regulations, 2014, the entity on 29th June 2021 paid UGX.178, 391,142 to the contractor upgrading Odupiri HC II to HC III without an interim payment certificate. On inspection in September 2021, On physical inspection, I noted that the construction was still at ring beam stage hence severely delayed and the contractor was not on site and therefore there was no construction works. \uf0b7 I noted that the District received a total of UGX.166,590,846 I reviewed the bank statements sampled schools and noted that the funds were still on the school accounts by 30 th September, 2021 and had hence not been utilised. | Unnamed: 2 |\n| 1 | 8.0 | MADI-OKOLLO DLG | \uf0b7 I noted that the District did not submit wage estimates to MoPs, |", "metadata": {"page": 423, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | shortfalls in Local Revenue collections of UGX. UGX. 93,166,950 (31%) were recorded in Land fees, business licenses, other tax revenues and Administrative fees and licenses. \uf0b7 I noted that Management submitted performance reports for Q1, Q2, Q3 and Q4 after the deadline given for submission of the reports. In addition, I did not obtain evidence to confirm that the Accounting Officer Prepared Monitoring Plans and reports which are important in ensuring that the budget performs as expected. The Accounting Officer admitted the shortcoming and promised to address the matter. \uf0b7 I noted that there was a general delay in the implementation of NUSAF 3 sub- projects without any justification. \uf0b7 Madi-Okollo District contracted M/s TIC Lokere Enterprises Ltd for the rehabilitation of Inde mile 10 Yoro base camp feeder road under DRDIP programme at a cost of UGX.1, 238,943,750. However, I noted that there was delayed Completion of the contract, Failure to install culverts at critical points of the road and Poorly installed culverts. \uf0b7 I noted that advances of UGX. 52,332,500 remained not accounted for, at year end. The funds were advanced to staff to carry out various activities. In the absence of the relevant accountability documents, it was not possible to confirm that the funds were used for the intended purposes. \uf0b7 I noted that there were un-utilized Market at Rhino Camp. The Market was constructed at an estimated cost of UGX.700,000,000. The market lock ups had been turned into residential apartments instead and the market stalls have been abandoned and now only used for drying cassava.4 | Unnamed: 2 |\n|---:|-------------:|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 9 | KOBOKO MC Opinion Unqualified | \uf0b7 I noted that the Municipal Council did not submit wage estimates to MoPs by 30th September of the preceding year as required. \uf0b7 The Municipal did not absorb wage funds worth UGX.0.33 billion. \uf0b7 The Council had outstanding domestic arrears worth UGX 113,354,578 that accrued within the year \uf0b7 I noted that the Municipal Council made unauthorized loan deductions totaling UGX. 18,148,668. from 16 employees that neither had letters of undertaking nor existed in the \u201cactive deduction\u201d or the \u201cmy approval\u201d reports on the PDMS-Payroll Deduction Management System, operated by PCA-Payroll Consults Africa. \uf0b7 I noted that 6 pensioners delayed to access the pension payroll \uf0b7 I noted that 5 staff was paid a total of UGX. 6,488,549 off the IPPS. \uf0b7 I noted that the Municipal Council did not have an approved plan |", "metadata": {"page": 425, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | shortfalls in Local Revenue collections of UGX. UGX. 93,166,950 (31%) were recorded in Land fees, business licenses, other tax revenues and Administrative fees and licenses. \uf0b7 I noted that Management submitted performance reports for Q1, Q2, Q3 and Q4 after the deadline given for submission of the reports. In addition, I did not obtain evidence to confirm that the Accounting Officer Prepared Monitoring Plans and reports which are important in ensuring that the budget performs as expected. The Accounting Officer admitted the shortcoming and promised to address the matter. \uf0b7 I noted that there was a general delay in the implementation of NUSAF 3 sub- projects without any justification. \uf0b7 Madi-Okollo District contracted M/s TIC Lokere Enterprises Ltd for the rehabilitation of Inde mile 10 Yoro base camp feeder road under DRDIP programme at a cost of UGX.1, 238,943,750. However, I noted that there was delayed Completion of the contract, Failure to install culverts at critical points of the road and Poorly installed culverts. \uf0b7 I noted that advances of UGX. 52,332,500 remained not accounted for, at year end. The funds were advanced to staff to carry out various activities. In the absence of the relevant accountability documents, it was not possible to confirm that the funds were used for the intended purposes. \uf0b7 I noted that there were un-utilized Market at Rhino Camp. The Market was constructed at an estimated cost of UGX.700,000,000. The market lock ups had been turned into residential apartments instead and the market stalls have been abandoned and now only used for drying cassava.4 | Unnamed: 2 |\n|---:|:-------------|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | neither did it have certification of the plan by NPA. \uf0b7 I noted underperformance in all revenue sources totaling UGX. 4,384,175,589 that affected implementation of planned activities at the council I further noted delayed submission of quarterly performance reports to OPM and MoFPED | Unnamed: 2 |\n| 1 | 10.0 | ARUA REGIONAL REFERRAL HOSPITAL Opinion Unqualified | \uf0b7 Through re-computation of gratuity benefits, I noted that there were variances of over payments of UGX.21,706,000 and under payment of UGX.19,700,433. I also re-computed pension benefits, and I further noted that there were variances of over payment of UGX.5, 798,629 and under payments of UGX.10, 401,528. The Accounting Officer explained that gratuity payments are automatically computed through the IPPS system. Consultations with system officers in MOPS were underway to have the error rectified. \uf0b7 I noted that UGX.6,659,448 was paid to 03 staff who had been transferred to other entities. These were payment for services not rendered to the Hospital, resulting in loss of funds to Government. \uf0b7 I noted that deductions to UCLA/UBA were concurrently remitted as salary was paid except for the month of April, 2021 where there was no remittance at all yet UGX.16,434,444 was deducted \uf0b7 I noted that the Hospital did not include Hospital Management Board Member\u2019s retainer fees of UGX.33,600,000 in the computation of PAYE leading to under deduction of PAYE of UGX.10,080,000 contrary to section 19(1) (a) of the Income Tax Act. \uf0b7 I noted that the Hospital did not prepare monthly wage, pension and gratuity performance analysis and thus did not submit quarterly returns on payroll to MoPS, contrary to Paragraph 2.1 of Establishment Notice No. 1 of 2020. \uf0b7 The Hospital had outstanding (unsettled) domestic arrears worth UGX. 1,255,228,566 by close of financial year \uf0b7 I noted that the Hospital had not prepared and approved a strategic plan that is aligned to the NDP-III. \uf0b7 I noted the Hospital received off-budget financing from Ministry of Health and development partners for undertaking various activities not budgeted to a tune of UGX.1,925,620,637 which was not transferred to the consolidated fund as required by the law. \uf0b7 The Hospital Ambulance number UG6812M had been stolen from the hospital yard. By close of the audit, the ambulance had not been recovered by management. Also the value of the ambulance had not been updated in the assets register as |", "metadata": {"page": 426, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | shortfalls in Local Revenue collections of UGX. UGX. 93,166,950 (31%) were recorded in Land fees, business licenses, other tax revenues and Administrative fees and licenses. \uf0b7 I noted that Management submitted performance reports for Q1, Q2, Q3 and Q4 after the deadline given for submission of the reports. In addition, I did not obtain evidence to confirm that the Accounting Officer Prepared Monitoring Plans and reports which are important in ensuring that the budget performs as expected. The Accounting Officer admitted the shortcoming and promised to address the matter. \uf0b7 I noted that there was a general delay in the implementation of NUSAF 3 sub- projects without any justification. \uf0b7 Madi-Okollo District contracted M/s TIC Lokere Enterprises Ltd for the rehabilitation of Inde mile 10 Yoro base camp feeder road under DRDIP programme at a cost of UGX.1, 238,943,750. However, I noted that there was delayed Completion of the contract, Failure to install culverts at critical points of the road and Poorly installed culverts. \uf0b7 I noted that advances of UGX. 52,332,500 remained not accounted for, at year end. The funds were advanced to staff to carry out various activities. In the absence of the relevant accountability documents, it was not possible to confirm that the funds were used for the intended purposes. \uf0b7 I noted that there were un-utilized Market at Rhino Camp. The Market was constructed at an estimated cost of UGX.700,000,000. The market lock ups had been turned into residential apartments instead and the market stalls have been abandoned and now only used for drying cassava.4 | Unnamed: 2 |\n|---:|:-------------|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | required. \uf0b7 I noted that the Hospital did not have a land title for Hospital land plot 43 \u2013 Hospital cell with an estimated size of 13.478 acres which it currently occupied. There was no evidence of ownership of property and there was no guarantee that the land was free from encroachment. | Unnamed: 2 |\n| 1 | 11.0 | MOYO DLG Opinion Unqualified | \uf0b7 I noted that UGX.12,035,376 was paid to 8 staff who had either retired, transferred, absconded or died. I advised the Accounting Officer to ensure prompt removal of staff from the payroll. \uf0b7 I noted that whereas UGX.2,467,253,134 was deducted from employees\u2019 salaries to be remitted to different beneficiaries, UGX.2,499,884,543 was remitted, leading to an under remittance amounting to UGX.519,984 and over remittance of UGX.33,151,393. I advised the Accounting Officer to ensure prompt removal of staff from the payroll. \uf0b7 I noted that whereas UGX.2,467,253,134 was deducted from employees\u2019 salaries to be remitted to different beneficiaries, UGX.2,499,884,543 was remitted, leading to an under remittance amounting to UGX.519,984 and over remittance of UGX.33,151,393. \uf0b7 I noted that the District did not subject political leaders\u2019 gratuity totalling to UGX.28,087,200 to the computation of PAYE in IPPS, leading to an under deduction of UGX.8,520,960 contrary to section 19(1) (a) of the Income Tax Act. \uf0b7 I noted that 6 pensioners delayed to access the pension payroll, with delays ranging between 1-2 months. Delayed access to the pension payroll leads to poor wellbeing of the affected retirees as well as accumulation of pension arrears. \uf0b7 I noted that the District/Municipal Council did not prepare monthly wage, pension and gratuity performance analysis and thus did not submit quarterly returns on payroll to MoPS, contrary to Paragraph 2.1 of Establishment Notice No. 1 of 2020. \uf0b7 Revenue underperformance of UGX.9,484,876,432 due to shortfall in NTR, government transfers and donor funding \uf0b7 The district did not absorb funds worth of UGX.940, 729,263 and these funds were subsequently swept back to the consolidated fund account. \uf0b7 I further noted that funds received under USMID totaling to UGX.1,342,227,081 were not absorbed and as such swept back to the consolidated fund |\n| 2 | 12.0 | KOBOKO DLG | \uf0b7 I noted that there was an under payment of UGX 83,675,196 of pension and gratuity |", "metadata": {"page": 427, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | was completed and ready for use, the building was redundant and had not yet been put to use five months after completion | Unnamed: 2 |\n|---:|-------------:|:---------------------------------------------------------------------------------------------------------------------------|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 13 | ARUA DLG Opinions Unqualified | \uf0b7 I was not availed with evidence that the district submitted wage estimates to MoPs as required. \uf0b7 The district failed to absorb wage funds worth UGX.2.14 billion and the funds were swept back into the consolidated fund account at year end. \uf0b7 The district made over payments of UGX.17, 088,304 various pensioners. \uf0b7 I noted that UGX.10, 115,392 was paid to 15 staffs that neither appeared on the IPPS payroll register nor had the necessary documentation in their personal files to support their existence. \uf0b7 I noted that 58 employees were paid salaries above their applicable salary band resulting in overpayments totalling UGX.37,427,696 while 6 employees were paid salaries below their applicable salary band resulting in underpayments totalling UGX.2,441,988. \uf0b7 The District wrongly computed gratuity benefits for 01 pensioner that resulted in an overpayment of UGX.17,088,304. \uf0b7 I noted that UGX.66,918,755 was paid to 49 staff who had either retired, transferred, absconded or died. \uf0b7 The district over and under remitted payroll deductions worth UGX.246,912,350 and UGX.201,704,458 due to wrong coding in the system \uf0b7 I noted that the District made unauthorized loan deductions totaling UGX.386, 522,646. The deductions were from 419 employees that neither had letters of undertaking nor existed in the \u201cactive deduction\u201d or the \u201cmy approval\u201d reports \uf0b7 I further noted that loan deductions relating to 16 (sixteen) employees did not have evidence of consent by the employees. \uf0b7 The District made PAYE deductions of UGX UGX.314, 021,935 for the month of February 2021, but did not remit to URA as required \uf0b7 I noted that the District did not subject political leaders\u2019 gratuity totalling to UGX.105,792,166 to the computation of PAYE in IPPS, leading to an under deduction of UGX.33,858,520, contrary to section 19(1) (a) of the Income Tax Act and also noted tha t 58 pensioners delayed to access the pension payroll during the year. \uf0b7 I noted that unqualifying funds amounting to UGX.52, 328,174 were charged on account codes prescribed for salary, pension and gratuity. |", "metadata": {"page": 429, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | was completed and ready for use, the building was redundant and had not yet been put to use five months after completion | Unnamed: 2 |\n|---:|:-------------|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | \uf0b7 I noted that 29 employees were paid a total of UGX.51,348,377 without signed pay change reports. \uf0b7 I noted that 1,302 staff was paid a total of UGX. 3,048,993,948 off the IPPS that arose from wrong coding of Arua DLG staff under Madi-Okollo DLG payroll arising from the separation of the payroll following the creation of Madi-Okollo district. \uf0b7 The budget of Arua DLG was not adjusted/collapsed following the issuance of the supplementary budgets to the new local governments. Consequently, the budget of Arua DLG for the year under review is unrealistic. Further, activities meant to be undertaken by the new local governments were undertaken by Arua DLG for example the payment of general staff salaries totaling UGX.6,397,754,797 for Terego DLG staff and UGX.8,348,159,119 for Arua city staff. This distorts the budget performance measurement for the local governments involved. \uf0b7 I noted underperformance of revenues from NTR, transfer from government units and donor funding worth UGX.30.7Bn that affected budget implementation \uf0b7 The district failed to absorb funds worth UGX.9.3Bn and these funds were subsequently swept back to the consolidated fund account. \uf0b7 The district mischarged funds worth UGX.373, 406,160 on various codes other those budgeted for. Further, I noted that funds to the tune of UGX.93, 269,685 were spent on other activities without seeking and obtaining the necessary approvals. \uf0b7 I noted outstanding recoveries of funds from YLP and UWEP groups worth UGX.1, 793,009,954 by the year end. \uf0b7 I noted that Arua District received a total of UGX.490,472,016. I reviewed the bank statements sampled schools and noted that the funds were still on the school accounts by 30th September, 2021 and had hence not been utilized. | Unnamed: 2 |\n| 1 | 14.0 | ADJUMANI DLG Opinion Unqualified | \uf0b7 I reviewed funds absorption for salary and pension payments and noted under absorption of UGX.1.2 billion which may have led to non payment of eligible employees and pensioners \uf0b7 I noted that UGX.3,339,798 was paid to 4 staff who had retired. These were payments for services not rendered to the District, resulting in loss of funds to Government. \uf0b7 I noted that the District made unauthorized loan deductions amounting to UGX.39,469,082 relating to 40 employees that neither existed in the \u201cactive deduction\u201d nor the \u201cmy approval\u201d reports on the PDMS as evidence of approval. \uf0b7 I noted that 3 pensioners delayed to access the pension payroll |", "metadata": {"page": 430, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | was completed and ready for use, the building was redundant and had not yet been put to use five months after completion | Unnamed: 2 |\n|---:|:-------------|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:-------------|\n| 0 | Unnamed: 0 | during the year with average delay period of 39 days to access the pension payroll. \uf0b7 I noted that the District did not submit quarterly returns on payroll to MoPS. This led to accumulations of arrears, under absorption of wage, pension and gratuity budget and delays in granting clearance to recruit. \uf0b7 From a comparison of the payroll register and IFMS payment file, I noted that 5 staff was paid a total of UGX.7, 145,972 off the IPPS. This control weakness created an opportunity for payment of salaries to non-eligible persons. \uf0b7 I noted that the verification form and copies of the verification card for 6 pensioners/beneficiaries were not on their files. I was therefore unable to validate, authenticate the accuracy of the payroll records (salary and pension) on the IPPS. \uf0b7 I noted that the District Development Plan III was still in a draft form and had not yet been approved. \uf0b7 The district did not receive funds worth UGX.14,639,062,373 \uf0b7 The district failed to absorb funds worth UGX. 1,621,646,255 by the end of the financial year and the funds were subsequently swept back to the consolidated fund account that affected construction of roads and bridges, Installation of streetlights; and Construction of Leisure Park among others \uf0b7 The funds were meant for activities that were not fully implemented by the end of the financial year and these include; \uf0b7 A review of the revenue management process revealed that there was no invoice register for the amount billed during the year in place and schedule of debtors detailing debtor\u2019s records. I also noted that the district does not have a streamlined policy to be followed to recover the outstanding revenues/amounts. \uf0b7 I noted outstanding YLP balance of UGX.707, 536,351 that has not been recovered by the district which is affecting the revolution of the funds to other groups in the queue \uf0b7 The district had outstanding unrecovered the UWEP funds worth UGX.406,275,629 by close of the year \uf0b7 I noted that the District received a total of UGX. 129,300,127. I reviewed the bank statements sampled schools and noted that the funds were still on the school accounts by 30th September, 2021 and had hence not been utilized. | Unnamed: 2 |", "metadata": {"page": 431, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | was completed and ready for use, the building was redundant and had not yet been put to use five months after completion | Unnamed: 2 |\n|---:|-------------:|:---------------------------------------------------------------------------------------------------------------------------|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 15 | Pakwach DLG Opinion Unqualified | \uf0b7 I noted that the District did not submit wage estimates to MoPs by 30th September of the preceding year a required \uf0b7 I reviewed funds absorption and noted that UGX. 10.209 Bn |", "metadata": {"page": 431, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | was completed and ready for use, the building was redundant and had not yet been put to use five months after completion | Unnamed: 2 |\n|---:|:-------------|:------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | (94%) was spent out of the total receipts of UGX.10.885 Bn, resulting in an unabsorbed balance of UGX. 0.676 Million. The unabsorbed balance was subsequently swept back to the consolidated fund account \uf0b7 I reviewed funds absorption and noted that UGX.19.4 billion (94%) was spent out of the total receipts of UGX.20.6 billion, resulting in an under absorption of UGX.1.2 billion. I further noted an unexplained under absorption of salaries funds totaling UGX. 235,934,838 and under absorption of pension and gratuity totaling UGX.930, 294,356. \uf0b7 I noted that UGX.3, 339,798 was paid to 4 staff who had retired. These were payments for services not rendered to the District, resulting in loss of funds to Government. \uf0b7 I further noted that loan deductions for a sample of 10 employees lacked letters of undertaking and did not have evidence of consent. \uf0b7 I also noted loan deductions for twenty-eight (28) staff, totaling UGX.33,119,091, were above the approved deduction amount and Loans for fifteen (15) staff totaling UGX.132,794,500 had unreasonable loan end-dates. \uf0b7 I noted that the District did not submit quarterly returns on payroll to MoPS. This led to accumulations of arrears, under absorption of wage, pension and gratuity budget and delays in granting clearance to recruit. \uf0b7 From a comparison of the payroll register and IFMS payment file, I noted that 5 staff were paid a total of UGX.7, 145,972 off the IPPS. This control weakness created an opportunity for payment of salaries to non-eligible persons | Unnamed: 2 |\n| 1 | 16.0 | ARUA MC Opinion Unqualified | \uf0b7 I noted that the wage and Pension Pay roll of UGX. 7,083,040,397 constituted 25% of the Municipal Council\u2019s budget for 2020/2021 of 28.3Bn. \uf0b7 I noted that the Municipal Council delayed to submit wage estimates to MoPs, as required. \uf0b7 I reviewed funds absorption and noted that UGX.6.7 billion (98%) was spent out of the total receipts of UGX.6.9 billion for salaries, pension and gratuity \uf0b7 I noted that whereas UGX.1,510,024,063 was deducted from employees\u2019 salaries to be remitted to different beneficiaries, UGX.1,502,519,098 was remitted leading to an under remittance amounting to UGX.7,504,965 \uf0b7 I noted that the entity did not include political leaders\u2019 gratuity of UGX.8,939,400 in the computation of PAYE leading to under deduction of PAYE of UGX.2,681,820 |", "metadata": {"page": 432, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | was completed and ready for use, the building was redundant and had not yet been put to use five months after completion | Unnamed: 2 |\n|---:|:-------------|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | \uf0b7 I noted that the verification form and copies of the verification card for 09 pensioners/beneficiaries were not on their files \uf0b7 I further noted that the Municipal Council Development Plan III was still in a draft form and had not yet been approved \uf0b7 I noted that the Municipal Council had off-budget receipts totaling UGX.1, 069,848,174 during the year. \uf0b7 I noted a number of issues in the implementation of approved budget suchas as failure to fully quantify outputs, partial and non-implementation of planned activities; over absorption of UGX.761,755,708; revenue underperformance of UGX.2,530,484,439 \uf0b7 I noted that UGX.210,033,250 meant for surfacing of Staff Lane and Construction of Municipal Bypass was utilised for supply and installation of solar street lights on Oluko Road \uf0b7 \uf0b7 I noted that the entity submitted performance report for Q4 after the deadline given for submission of the reports \uf0b7 I noted that there were unapproved overpayments of UGX.1,427,380,000 relating to USMID works on School road and Adroa road \uf0b7 I noted that the Municipal Council made advance payment of UGX.333,383,989 to contractors without bank guarantees \uf0b7 I noted low bidder participation in 3 of the 11 sampled procurements \uf0b7 I noted that the Municipal Council did not receive its approved supplementary development budget totaling UGX.14,340,000,000 under Supplementary Expenditure Estimates Supplied Addendum No.1 to Schedule No.2 for F/Y 2020/2021 \uf0b7 I noted that the Municipal Council did not have an approved staff structure/establishment. | Unnamed: 2 |\n| 1 | | MBARARA BRANCH | Summary of Key Findings |\n| 2 | 1.0 | MBARARA DLG Opinion Unqualified | \uf0b7 I analyzed the approved budget and releases to Mbarara District for salary, pension and gratuity in the period under review and noted that the wage and Pension Pay roll of UGX.20,650,503,996 constituted 68% of the District\u2019s budget for 2020/2021 of UGX.30.38 Bn \uf0b7 I noted that the District delayed to submit wage estimates to MoPS, contrary to the Establishment Notice. The submission was made on 18th February 2020, which is 140 days after the required date \uf0b7 I reviewed funds absorption and noted that UGX.19.6 billion (95%) was spent out of the total receipts of UGX.20.7 billion, resulting in an unabsorbed balance of UGX.1.1 billion. |", "metadata": {"page": 433, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | was completed and ready for use, the building was redundant and had not yet been put to use five months after completion | Unnamed: 2 |\n|---:|:-------------|:-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:-------------|\n| 0 | Unnamed: 0 | \uf0b7 I noted that the District made unauthorised loan deductions totalling UGX.11.8 million. The deductions were from 40 employees that neither existed in the \u201cactive deduction\u201d nor the \u201cmy approval\u201d reports on the Payroll Deduction Management System (PDMS), operated by Payroll Consults Africa (PCA) \uf0b7 I noted that the District made payroll deductions of UGX. 813,620,096, but did not remit concurrently with the salary payments in 11 out of 12 months. The delay ranged from 5 to 84 days \uf0b7 I noted delays in the remittance of PAYE deductions to URA for 2 months of November 2020 and January 2021 of six (06) and eighty (08) days respectively \uf0b7 I noted that the District did not subject political leaders\u2019 gratuity totalling to UGX. 16,304,260 to the computation of PAYE in IPPS, leading to an under deduction of UGX.4,891,278 \uf0b7 I noted that of the 29 newly recruited/transferred, 13 employees delayed to access payroll, with delays ranging between 6 to 12 weeks \uf0b7 pensioners delayed to access the pension payroll, with delays ranging between 7-10 months \uf0b7 Gratuity and pensions of UGX. 601,669,910 was charged on Salary account which did not reflect the nature of the expenditure \uf0b7 I noted that the District prepared monthly wage, pension and gratuity performance analysis but did not submit quarterly returns on payroll to MoPS \uf0b7 I reviewed the approved Local revenue estimates for the financial year 2020/2021 and noted that the District budgeted to collect UGX.1,293,851,871 during the year but collected UGX.974,341,070 representing (75%) performance. \uf0b7 The Entity budgeted to receive UGX.2,077,267,871 as transfers from other Government Units. However, only UGX.583,148,567 (28%) was received. Revenue shortfalls affected the implementation of planned activities \uf0b7 The District budgeted to receive UGX.693,590,000 as external/donor financing out of which UGX.53,180,000 (7.7%), was received \uf0b7 I noted that management did not submit quarterly monitoring reports to the Office of the Prime Minister and Mofped as required | Unnamed: 2 |", "metadata": {"page": 434, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | was completed and ready for use, the building was redundant and had not yet been put to use five months after completion | Unnamed: 2 |\n|---:|-------------:|:---------------------------------------------------------------------------------------------------------------------------|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 2 | RUBANDA DLG Opinion Unqualified | \uf0b7 I analysed the approved budget and releases to Rubanda District for salary, pension and gratuity in the period under review and noted that the wage and Pension Pay roll of UGX.17,152,929,012 constituted 49% of the District\u2019s budget for 2020/2021 of UGX.34.85 Bn \uf0b7 I reviewed the wage funds absorption and noted that UGX.17.29 billion(96) was spent out of the total receipts of UGX18.02 billion, resulting in an unabsorbed balance of UGX.0.73 billion \uf0b7 A review of the payroll data (IPPS) and IFMS payments revealed variances between amounts on the approved payroll and payments to individual employees, leading to over payment of |", "metadata": {"page": 434, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | was completed and ready for use, the building was redundant and had not yet been put to use five months after completion | Unnamed: 2 |\n|---:|:-------------|:------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | UGX. 12,101,332 \uf0b7 I noted that 15 employees on the IPPS payroll did not receive salary of UGX. 37,502,687 \uf0b7 A comparison of base pay in the IPPS payroll registers with the salary structure for 2020/21, revealed that June payments were made using wrong salary scales, leading to over payments of UGX. 3,197,252, and under payments of UGX. 978,860 \uf0b7 I noted that whereas UGX. 4,119,399,533 was deducted from employees\u2019 salaries to be remitted to different beneficiaries, UGX. 4,110,103,755 was remitted, leading to an over and under remittance amounting to UGX.(234,929,994) and UGX.244,225,772 respectively \uf0b7 I noted that the District made unauthorised loan deductions totalling UGX. 41,736,635 from 22 employees that neither had letters of undertaking nor existed in the \u201cactive deduction\u201d or the \u201cmy approval\u201d reports on the Payroll Deduction Management System (PDMS) \uf0b7 I noted that the District did not subject political leaders\u2019 gratuity totalling to UGX. 30,155,400 to the computation of PAYE in IPPS, leading to an under deduction of UGX. 9,113,820 I noted that 9 pensioners delayed to access the pension payroll, with delays ranging between 6-15 months \uf0b7 I noted that the District did not prepare monthly wage, pension and gratuity performance analysis and thus did not submit quarterly returns on payroll to MoPS \uf0b7 I observed that there were variances of UGX. 5,667,077 and UGX.7.076,946 between the MoPS IPPS and entity payroll registers availed by the core FTP system \uf0b7 I noted that at the time of audit October 2021 the district strategic plan was not approved by NPA. \uf0b7 I noted that the district had planned to collect local revenue of UGX0.587Million but was only able to collect 0.351 million representing 60% performance. \uf0b7 Of the UGX.10.13Bn budgeted as transfers from other Government Units, only UGX.0.8 Bn was received representing 8% performance \uf0b7 The district did not receive any external/donor financing despite having a budget of UGX0.89Bn | Unnamed: 2 |\n| 1 | 3.0 | KAZO DLG Opinion Unqualified | \uf0b7 I analysed the approved budget and releases to Kazo district for salary, pension and gratuity in the period under review and noted that the wage and Pension Pay roll of UGX.10,993,531,909 constituted 64.1% of the District\u2019s budget for 2020/2021 of UGX.17,131,504,889 \uf0b7 A comparison of base pay in the IPPS payroll registers with the salary structure for 2020/21, revealed that 20 staff were paid using wrong salary scales, leading to over payments of |", "metadata": {"page": 435, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | \uf0b7 In-adequate sensitization and training in the use and navigation of the system \uf0b7 System was not reliable and effective \uf0b7 Operational challenges were encountered; \uf0b7 E.g. Un-reliable network in Buhweju where HR staff had to physically travel to the neighbouring Districts to be able to download documents such as pension payroll registers. \uf0b7 Inadequate staffing of the HR department \uf0b7 I noted that the district budgeted to collect UGX.155,201,000 during the year but collected UGX.136,282,651 representing (88%) performance. The shortfalls in Local Revenue collections of UGX. 18,918,349 (12%) were recorded in Local Service Tax, Land Fees and Application Fees \uf0b7 I noted that entity budgeted to receive UGX.758,657,000 as transfers from other Government Units. However, only UGX.537,760,298 (70.9%) was received \uf0b7 I assessed the implementation of seven (7) outputs that were fully quantified with a total of seven (7) activities worth UGX 1.6 Bn and noted the following. \uf0b7 Five (05) outputs with a total of five (05) activities worth UGX.1.03Bn were fully implemented. The entity implemented all the five (05) activities (100%) within these outputs. \uf0b7 Two (02) outputs with a total of two (02) activities worth UGX.0.5 Bn were partially implemented. \uf0b7 I noted that the district had commenced implementation of two (2) UgIFT projects namely; Upgrading of Engaju HC II to HC III and Upgrade of Rushambya HC II to HC III and noted the following; \uf0b7 Upgrading of Rushambya Health Centre II to Health Centre III; The medical facility had been completed but lacked medical equipment to enable functionality and service delivery \uf0b7 Upgrade of Engaju HC II to HC III; The project stalled but medical equipment had been procured and an advance payment of UGX. 211,119,458 was made during the year | Unnamed: 2 |\n|---:|-------------:|:------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 6 | BUSHENYI DLG Opinion Unqualified | \uf0b7 I noted that the wage and Pension Pay roll of UGX.21,998,865,997 constituted 54% of the District\u2019s budget for 2020/2021 of UGX.40,645,826,438. \uf0b7 I reviewed payroll funds absorption and noted that UGX.20.697 billion (94%) was spent out of the total receipts of UGX.21.999 billion, resulting in an unabsorbed balance of UGX.1.302billion \uf0b7 I noted a salary over payment of Ms Twehandikise Miria of UGX.508,439 instead of paying UGX.5,974,218, UGX.6,482,657 was paid \uf0b7 I noted pension and gratuity underpayment of UGX.984,681,443 |", "metadata": {"page": 440, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | \uf0b7 I noted that the entity submitted performance reports for Q1, Q2, Q3, Q4 after the deadline given for submission \uf0b7 A total of 261.4km at an estimated cost of UGX.94,152,000 was planned to be undertaken, I noted that UGX.75,588,000 was received and all used for maintaining 209.9 Km implying a shortfall of UGX.18,564,000 which affected implementation of 51.5Km of roads | Unnamed: 2 |\n|---:|-------------:|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 7 | IBANDA DLG Opinion Unqualified | \uf0b7 I noted the wage and Pension Pay roll of UGX.13,873,913,709 constituted 56% of the District\u2019s budget for 2020/2021 of UGX.24,675,034,751 \uf0b7 I reviewed payroll funds absorption and noted that UGX.11.6 billion (90.6%) was spent out of the total receipts of UGX.12.8 billion, resulting in an unabsorbed balance of UGX.1.1 billion. \uf0b7 I noted that the District made payroll deductions but did not remit it concurrently with the salary payments in 6 months. The delays ranged from 5 to 28 days \uf0b7 I noted that 191 newly recruited/transferred employees delayed to access payroll, with delays ranging between 1-9 months \uf0b7 I noted that only eight (8) pensioners delayed to access the pension payroll, with delays ranging between 2-7 months \uf0b7 I noted that the District did not prepare monthly wage, pension and gratuity performance analysis and thus did not submit quarterly returns on payroll to MoPS \uf0b7 I noted that although the entity had prepared a strategic plan that at the time of audit, it had not yet been approved as aligned to the NDP-III \uf0b7 I noted that the entity budgeted to receive UGX.22.11Bn as grants from the Treasury. However, only UGX.19.45Bn was received representing 88% performance leading to budget shortfall of UGX.2.66 Bn (12%). \uf0b7 I noted that the entity budgeted to receive UGX.1.48Bn as transfers from other Government Units. However, only UGX.1.22Bn was received representing 82.4% performance leading to revenue shortfall of UGX. 0.26Bn (17.6%). \uf0b7 I noted that the entity budgeted to receive UGX. 0.39Bn as external/donor financing out of which UGX.0.14Bn was received representing 36% performance leading to revenue shortfall of UGX.0.25Bn (63%). \uf0b7 The entity did not prepare and submit the annual monitoring plans to MoFPED, MoLG and NPA as required. \uf0b7 The entity also did not submit quarterly monitoring reports to the Office of the Prime Minister and MoFPED as required |\n| 1 | 8 | KABALE DLG Opinion Unqualified | \uf0b7 I noted that the wage and Pension Pay roll of UGX.23,557,107,073 constituted 49.6% of the District\u2019s budget for 2020/2021 of UGX.47,484,993,193, |", "metadata": {"page": 442, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | resulting in an unspent balance of UGX.0.63 Bn (0.8%). \uf0b7 I noted that Management submitted performance reports for Q1, Q2, Q3 and Q4 after the deadline given for submission of the reports | Unnamed: 2 |\n|---:|-------------:|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 9 | KANUNGU DLG Opinion Unqualified | \uf0b7 I noted that the wage and Pension Pay roll of UGX.28,863,148,598 constituted 66% of the District\u2019s budget for 2020/2021 of UGX.43.7 Bn \uf0b7 I noted that the District delayed to submit wage estimates to MoPs, as required \uf0b7 I reviewed Payroll funds absorption and noted that UGX.27 billion (95%) was spent out of the total receipts of UGX.28 billion, resulting in an unabsorbed balance of UGX.1 billion \uf0b7 I noted under payment of salary amounting to UGX 84,270,346 \uf0b7 I noted that 116 staff were paid using wrong salary scales, leading to over payments of UGX.33,520,148, \uf0b7 I noted that UGX.13,922,650 was paid to 11 staff who had either retired, transferred, absconded or died \uf0b7 I noted that the District made payroll deductions of UGX.6,465,198,289, but did not remit concurrently with the salary payments in 11 out of 12 months. On average, it delayed by 11 days \uf0b7 I noted delays in the remittance of PAYE deductions to URA for 2 months \uf0b7 I noted that the District did not subject political leaders\u2019 gratuity totalling to UGX.58,306,246 to the computation of PAYE in IPPS, leading to an under deduction of UGX.17,588,374 \uf0b7 I noted that 11 newly recruited/ transferred employees delayed to access payroll, with delays ranging between 1-6 months \uf0b7 I noted that the District did not prepare monthly wage, pension and gratuity performance analysis and thus did not submit quarterly returns on payroll to MoPS \uf0b7 I noted that 11 staff were paid a total of UGX.6,647,285 off the IPPS \uf0b7 I carried out a survey to establish the effectiveness and reliability of the IPPS/NID staff/pensioner/beneficiaries\u2019 verification interface and noted the following; \uf0b7 In-adequate sensitization and training in the use and navigation of the IPPS. As a result, the HR team was unable to obtain pension payrolls for the financial year under review and the interface files for both salary and pension for the month of October 2020. \uf0b7 Lack/inadequate verification and ineffectiveness of the system may affect the integrity of the IPPS payroll \uf0b7 I noted that the District budgeted to collect UGX. 969,000,605 |", "metadata": {"page": 444, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | resulting in an unspent balance of UGX.0.63 Bn (0.8%). \uf0b7 I noted that Management submitted performance reports for Q1, Q2, Q3 and Q4 after the deadline given for submission of the reports | Unnamed: 2 |\n|---:|:-------------|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | during the year but collected UGX.349,340,889 representing (36%) performance \uf0b7 I noted that the Entity budgeted to receive UGX.2,914,268,788 as transfers from other Government Units. However, only UGX.1,346,142,527 (46%) \uf0b7 I noted that the District budgeted to receive UGX.958,677,000 as external/donor financing out of which UGX.121,361,000(14%), was received \uf0b7 I noted that out of the total receipts for the financial year of UGX.37,438,548,600, UGX.36,912,545,231 (99%) was spent by the entity resulting in an unspent balance of UGX.526,003,369 (1%). \uf0b7 I noted that UGX.66,181,436 was charged on items which did not reflect the nature of the expenditure as shown in \uf0b7 I noted an irregular payment of VAT UGX 28,258,475 to contractors for the upgrade of Ntungamo HC II to HC III in Butogata Subcounty despite aid-funded projects being VAT exempt . The irregular payment was attributed to the irregular inclusion of the VAT amount in the contract price during the procurement process. \uf0b7 I noted that the District budgeted to receive UGX.931,475,272 from Uganda Road Fund for maintenance of 256.9 km of district roads, and UGX.900,073,304 (97%) was received and was utilised on maintenance of 242.5 km of roads, with a shortfall of UGX.31,401,970(3%) which left 14.4 km of roads not worked on. | Unnamed: 2 |\n| 1 | 10.0 | KIRUHURA DLG Opinion Unqualified | \uf0b7 I noted that the wage and Pension Pay roll of UGX.12,779,567,829 constituted 50% of the District\u2019s budget for 2020/2021 of UGX.25.49 Bn \uf0b7 I reviewed funds absorption and noted that UGX.11.6 billion (90.6%) was spent out of the total receipts of UGX.12.8 billion, resulting in an unabsorbed balance of UGX.1.1 billion \uf0b7 I noted salary underpayment of UGX.7,916,200 \uf0b7 I noted salary overpayment of UGX.38,256,602 \uf0b7 I noted that whereas UGX.2,397,995,367 was deducted from employees\u2019 salaries to be remitted to different beneficiaries, UGX.2,396,361,743 was remitted, leading to an over remittance of UGX.378,730 and an under remittance of UGX.2,012,354 \uf0b7 I noted that the District made loan deductions totalling UGX.71,827,411 from 14 employees that neither had letters of undertaking nor existed in the \u201cactive deduction\u201d or the \u201cmy approval\u201d reports on the Payroll Deduction Management System (PDMS) operated by Payroll Consults Africa (PCA). \uf0b7 Also noted that 08 employees were not in \u2018\u2019my approval report \u2019\u2019 but were in \u201cactive deduction report\u201d. \uf0b7 I further noted that loan deductions relating to 13 employees did |", "metadata": {"page": 445, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | cumulative performance reports and physical inspections/verification of performance. \uf0b7 I reviewed the implementation of Uganda Road Fund and noted the following; \uf0b7 A total of UGX.726,279,445 was budgeted for however the District Council received UGX.1,148,526,601 (158%) \uf0b7 A total of 221.90 km at an estimated cost of UGX.31,213,190 was planned to be undertaken. However, audit revealed that no work was actually undertaken. Thus the entire 221.90 km were not maintained \uf0b7 A total of 6 km at an estimated cost of UGX.17,983,012 was planned to be undertaken. Audit revealed that 34.6 km was undertaken at a cost of UGX.187,493,520. I noted that the initial plan (budget) was not revised when additional funds were received. | Unnamed: 2 |\n|---:|-------------:|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 11 | KISORO DLG Opinion Unqualified | \uf0b7 I noted that the wage and Pension Pay roll of UGX.29,217,966,405 constituted 72% of the District\u2019s budget for 2020/2021 of UGX.40.68 Bn \uf0b7 I noted that the District did not submit wage estimates to MoPs, as required. \uf0b7 I noted an over payment of Pension of UGX.5,223,859 \uf0b7 I also noted that the District made payroll deductions of UGX2.595 billion, but did not remit concurrently with the salary payments in 6 out of 6 months sampled. On average, it delayed by 13.5 days \uf0b7 I noted delays in the remittance of PAYE deductions to URA ranging from 3 \u2013 32 days \uf0b7 I noted that the District did not subject political leaders\u2019 gratuity totalling to UGX.419,638,073 ` to the computation of PAYE in IPPS, leading to an under deduction of UGX.125,070,214 \uf0b7 I noted that 7 pensioners delayed to access the pension payroll, with delays ranging between 1-4 months \uf0b7 I noted that the Districts prepared monthly wage, pension and gratuity performance analysis but did not submit quarterly returns on payroll to MoPS \uf0b7 I noted that 15 staff were paid a total of UGX.47,243,693 off the IPPS \uf0b7 I observed that there were variances of UGX.29,495,726 between the figures in the interface files and entity payroll registers \uf0b7 Some information on the NIRA interface is sometimes not visible/available for instance date of birth and the photo which delays the verification exercise \uf0b7 I noted that Kisoro DLG budgeted to collect UGX.461,618,300 during the year under review. The entity collected |", "metadata": {"page": 447, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | cumulative performance reports and physical inspections/verification of performance. \uf0b7 I reviewed the implementation of Uganda Road Fund and noted the following; \uf0b7 A total of UGX.726,279,445 was budgeted for however the District Council received UGX.1,148,526,601 (158%) \uf0b7 A total of 221.90 km at an estimated cost of UGX.31,213,190 was planned to be undertaken. However, audit revealed that no work was actually undertaken. Thus the entire 221.90 km were not maintained \uf0b7 A total of 6 km at an estimated cost of UGX.17,983,012 was planned to be undertaken. Audit revealed that 34.6 km was undertaken at a cost of UGX.187,493,520. I noted that the initial plan (budget) was not revised when additional funds were received. | Unnamed: 2 |\n|---:|:-------------|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | UGX.256,912,576 representing 55.7% performance. \uf0b7 I noted that the entity budgeted to receive UGX.1.10Bn as transfers from other Government Units out of which UGX.0.73Bn was received representing 66.2% performance \uf0b7 I noted thata the entity budgeted to receive 1.5Bn from external assistance but received 0.11Bn representing 7.6%. \uf0b7 I assessed the implementation of fifteen (15) outputs that were fully quantified with a total of fifteen (15) activities worth UGX.3.81Bn and noted the following; \uf0b7 Thirteen (13) outputs with Thirteen (13) activities worth UGX.3.808 Bn were fully implemented representing 58.6% of the outputs. \uf0b7 Two (2) outputs with two activities(2) worth UGX.0.54 Bn were not implemented representing 3.6% of the outputs(included in the schedule at UGX.0 because no funds were spent) \uf0b7 I noted that the entity submitted performance reports for Q1, Q2, Q3 and Q4 after the deadline given for submission of the reports \uf0b7 I noted the delayed completion of Nyakinama Seed School (UGIFT project) worth 2,331,850,894 \uf0b7 I noted that the District budgeted and received funds worth UGX.344,284,000 under UGIFT program for the construction of Mwumba Progressive SS. However, this project did not take off due to delays in the procurement process and at the time of audit in August, 2021, the project had not started with a delay of 12 months. | Unnamed: 2 |\n| 1 | 12.0 | MBARARA CITY Opinion Unqualified | \uf0b7 I noted that the wage and Pension Payroll of UGX.17,869,060,735 constituted 39.4% of the Municipal Council\u2019s budget for 2020/2021 of UGX.45,355,732,366. \uf0b7 I reviewed payroll funds absorption and noted that UGX.17.2 billion (96.25%) was spent out of the total receipts of UGX.17.9 billion, resulting in an unabsorbed balance of UGX.0.70 billion \uf0b7 I noted salary underpayment of UGX.3,201,482 \uf0b7 I noted that UGX 18,896,920 was paid to 2 staff who had died \uf0b7 I noted that whereas UGX.3,348,734,358 was deducted from employees\u2019 salaries to be remitted to different beneficiaries, UGX.3,346,988,823 was remitted leading to an over remittance of UGX.7,068,846 and under remittance of UGX.8,814,381 \uf0b7 I also noted that the Municipal Council made payroll deductions of UGX.790,748,220, but did not remit concurrently with the salary payments in 12 out 12 months. On average, it delayed by 23 days \uf0b7 I also noted delays in the remittance of PAYE deductions to URA ranging from 2 \u2013 34 days \uf0b7 I noted that 14 newly recruited/ transferred employees delayed |", "metadata": {"page": 448, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 13. | MITOOMA DLG Opinion Unqualified | \uf0b7 I noted that the wage and Pension Pay roll of UGX.18,505,405,927 constituted 63% of the District\u2019s budget for 2020/2021 of UGX.29,350,754,495. \uf0b7 I noted that the District did not to submit wage estimates to MoPS, as required \uf0b7 I noted delays in the remittance of PAYE deductions to URA of up to 100 days \uf0b7 I noted that 47 newly recruited/transferred employees delayed to access payroll, with delays ranging between 2-14 months \uf0b7 I noted that 7 pensioners delayed to access the pension payroll, with delays ranging between 1-14 months \uf0b7 I noted that the District did not prepare monthly wage, pension and gratuity performance analysis and thus did not submit quarterly returns on payroll to MoPS \uf0b7 I noted that 6 pensioners were paid a total of UGX.26,607,195 off the IPPS \uf0b7 I observed that there were variances of UGX.514,103,048 between the figures in the MoPS IPPS and entity payroll registers, \uf0b7 Operational challenges were encountered; E.g. Un-reliable network in Mitooma where HR staff had to physically travel to the neighbouring Bushenyi District to be able to download documents such as pension payroll registers. \uf0b7 I noted that the upgrade of Mayanga HC II to HC III contracted to Khalsa (U) Ltd was still under construction and only at roofing stage by the time of audit inspection on 13th October, 2021. However, the medical equipment had already been procured and delivered under a separate contract to M/s Rodrisa Supplies Limited who was expected to supply, deliver, instal, train and commission the medical equipment. Procurement of medical equipment for a health facility still at foundation stage may lead to obsolescence, pilferage and physical damage leading to nugatory expenditure. |\n|---:|------:|:----------------------------------|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 14 | NTUNGAMO DLG Opinion Unqualified | \uf0b7 I noted that the wage and Pension Pay roll of UGX.35,484,605,345 constituted 56% of the District\u2019s budget for 2020/2021 of UGX.63,733,887,733. \uf0b7 I reviewed payroll funds absorption and noted that UGX.34,743,195,467 (98%) was spent out of the total receipts of UGX.35,484,605,345, resulting in unabsorbed balance of UGX.741,409,878 \uf0b7 I noted that the District made payroll deductions but did not remit concurrently with the salary payments in 8 out of 8 months. On average, it delayed by 12 days \uf0b7 I noted that all remittances of PAYE deductions were paid to URA ranged from 9 - 13 days |", "metadata": {"page": 450, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 13. | MITOOMA DLG Opinion Unqualified | \uf0b7 I noted that the wage and Pension Pay roll of UGX.18,505,405,927 constituted 63% of the District\u2019s budget for 2020/2021 of UGX.29,350,754,495. \uf0b7 I noted that the District did not to submit wage estimates to MoPS, as required \uf0b7 I noted delays in the remittance of PAYE deductions to URA of up to 100 days \uf0b7 I noted that 47 newly recruited/transferred employees delayed to access payroll, with delays ranging between 2-14 months \uf0b7 I noted that 7 pensioners delayed to access the pension payroll, with delays ranging between 1-14 months \uf0b7 I noted that the District did not prepare monthly wage, pension and gratuity performance analysis and thus did not submit quarterly returns on payroll to MoPS \uf0b7 I noted that 6 pensioners were paid a total of UGX.26,607,195 off the IPPS \uf0b7 I observed that there were variances of UGX.514,103,048 between the figures in the MoPS IPPS and entity payroll registers, \uf0b7 Operational challenges were encountered; E.g. Un-reliable network in Mitooma where HR staff had to physically travel to the neighbouring Bushenyi District to be able to download documents such as pension payroll registers. \uf0b7 I noted that the upgrade of Mayanga HC II to HC III contracted to Khalsa (U) Ltd was still under construction and only at roofing stage by the time of audit inspection on 13th October, 2021. However, the medical equipment had already been procured and delivered under a separate contract to M/s Rodrisa Supplies Limited who was expected to supply, deliver, instal, train and commission the medical equipment. Procurement of medical equipment for a health facility still at foundation stage may lead to obsolescence, pilferage and physical damage leading to nugatory expenditure. |\n|---:|:-----------|:-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | \uf0b7 I noted that the District did not subject political leaders\u2019 gratuity totalling to UGX.60,526,800 to the computation of PAYE in IPPS, leading to an under deduction of UGX.14,374,090 \uf0b7 I noted that the entity did not prepare monthly wage, pension and gratuity performance analysis, and did not submit quarterly returns on payroll to MoPS \uf0b7 I noted that 29 staff were paid a total of UGX.91,713,882 off the IPPS \uf0b7 I carried out a survey to establish the effectiveness and reliability of the IPPS/NID staff/pensioner/beneficiaries\u2019 verification interface and noted the following; \uf0b7 I noted that the entity had no approved a strategic plan at the time of audit \uf0b7 I noted that the District budgeted to collect UGX.1,554,984,179 during the year but collected UGX.1,127,109,918 representing (72%) performance \uf0b7 I noted that the entity budgeted to receive UGX.8,698,586,134 as transfers from other Government Units out of which UGX.1,307,013,923 was received representing 15% performance leading to a shortfall of UGX.7,391,572,211(85%) \uf0b7 I noted that the entity budgeted to receive UGX.1,901,504,814 as external/donor financing out of which UGX.267,332,705 was received representing 14% performance \uf0b7 Out of the total receipts for the financial year of UGX. 53.52, UGX. 51.85 (97%) was spent by the entity resulting in an unspent balance of UGX. 1.67 (3%). \uf0b7 I carried out an audit inspection of the Construction of Kihanga seed Secondary school (UGX.718,168,225) in September 2021, and noted that the project had been abandoned and behind schedule by 20 months \uf0b7 I noted that most of the District land did not have certificates of land titles | Unnamed: 2 |\n| 1 | 15.0 | RUKIGA DLG Opinion Unqualified | \uf0b7 I noted that the wage and Pension Pay roll of UGX.15,291,042,432 constituted 50.4% of the District\u2019s budget for 2020/2021 of UGX.30,313,124,744 \uf0b7 I noted that the District did not submit wage estimates to MoPS, as required \uf0b7 I reviewed payroll funds absorption and noted that UGX.13.167 billion (86%) was spent out of the total receipts of UGX.15.29 billion, resulting in an unabsorbed balance of UGX 2.12 billion \uf0b7 I noted that whereas UGX.909,840,551 was deducted from employees\u2019 salaries to be remitted to different beneficiaries, UGX.909,338,143 was remitted, leading to an over/under remittance of UGX.153,842 and UGX.656,250 respectively \uf0b7 I noted that the District made payroll deductions of UGX 0.844 |", "metadata": {"page": 451, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 13. | MITOOMA DLG Opinion Unqualified | \uf0b7 I noted that the wage and Pension Pay roll of UGX.18,505,405,927 constituted 63% of the District\u2019s budget for 2020/2021 of UGX.29,350,754,495. \uf0b7 I noted that the District did not to submit wage estimates to MoPS, as required \uf0b7 I noted delays in the remittance of PAYE deductions to URA of up to 100 days \uf0b7 I noted that 47 newly recruited/transferred employees delayed to access payroll, with delays ranging between 2-14 months \uf0b7 I noted that 7 pensioners delayed to access the pension payroll, with delays ranging between 1-14 months \uf0b7 I noted that the District did not prepare monthly wage, pension and gratuity performance analysis and thus did not submit quarterly returns on payroll to MoPS \uf0b7 I noted that 6 pensioners were paid a total of UGX.26,607,195 off the IPPS \uf0b7 I observed that there were variances of UGX.514,103,048 between the figures in the MoPS IPPS and entity payroll registers, \uf0b7 Operational challenges were encountered; E.g. Un-reliable network in Mitooma where HR staff had to physically travel to the neighbouring Bushenyi District to be able to download documents such as pension payroll registers. \uf0b7 I noted that the upgrade of Mayanga HC II to HC III contracted to Khalsa (U) Ltd was still under construction and only at roofing stage by the time of audit inspection on 13th October, 2021. However, the medical equipment had already been procured and delivered under a separate contract to M/s Rodrisa Supplies Limited who was expected to supply, deliver, instal, train and commission the medical equipment. Procurement of medical equipment for a health facility still at foundation stage may lead to obsolescence, pilferage and physical damage leading to nugatory expenditure. |\n|---:|:-----------|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | billion, but did not remit concurrently with the salary payments in 11 out of 12 months. On average, it delayed by 6.5 days \uf0b7 I noted that the District did not subject political leaders\u2019 gratuity totalling to UGX.34,918,061 to the computation of PAYE in IPPS, leading to an under deduction of UGX.10,880,299 \uf0b7 I noted that 6 newly recruited/transferred employees delayed to access payroll, with delays ranging between 1- 3.5 months \uf0b7 I noted that the District did not prepare monthly wage, pension and gratuity performance analysis nor submitted quarterly returns on payroll to MoPS \uf0b7 I noted that UGX.24,681,002 was paid to 16 staffs that were off the IPPS payroll register \uf0b7 I observed that there were variances of UGX30,377,765 between the figures in the interface files and entity payroll registers \uf0b7 I noted that the entity prepared a strategic plan but was not yet approved. \uf0b7 I noted that Rukiga DLG budgeted to collect UGX. 285,061,188 during the year under review. The entity collected UGX.155,082,884 representing 54% performance. \uf0b7 I noted that the entity budgeted to receive UGX.8.77Bn as transfers from other Government Units out of which UGX.0.68Bn was received representing 11% performance \uf0b7 I noted that the entity budgeted to receive 1.02Bn from external assistance but received 0.05Bn representing 5%. \uf0b7 I noted that out of UGX.21,252,068,152 warrants to finance the council\u2019s budget, only UGX.18,677,785,569 (88%) was spent leaving a balance of UGX.2,574,282,583 (14%) un utilized \uf0b7 I noted that the entity did not also submit quarterly monitoring reports to the Office of the Prime Minister and MoFPED as required. \uf0b7 I noted that the entity submitted performance reports for Q3, and Q4 after the deadline given for submission of the reports \uf0b7 I noted that the District Council budgeted to receive UGX.467,373,000 (Excluding funds to be transferred to LLGs) from Uganda Road Fund for maintenance of 80.9kms of District roads, and UGX.252,363,000 (54%%) was received and was utilised on maintenance of 74.7kms of roads, installation of culverts, equipment repairs and supervision with a shortfall of UGX.215,010,000 (46%) As a result of revenue shortage, 6.2KMs of roads were not maintained under periodic maintenance as planned | Unnamed: 2 |", "metadata": {"page": 452, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | 13. | MITOOMA DLG Opinion Unqualified | \uf0b7 I noted that the wage and Pension Pay roll of UGX.18,505,405,927 constituted 63% of the District\u2019s budget for 2020/2021 of UGX.29,350,754,495. \uf0b7 I noted that the District did not to submit wage estimates to MoPS, as required \uf0b7 I noted delays in the remittance of PAYE deductions to URA of up to 100 days \uf0b7 I noted that 47 newly recruited/transferred employees delayed to access payroll, with delays ranging between 2-14 months \uf0b7 I noted that 7 pensioners delayed to access the pension payroll, with delays ranging between 1-14 months \uf0b7 I noted that the District did not prepare monthly wage, pension and gratuity performance analysis and thus did not submit quarterly returns on payroll to MoPS \uf0b7 I noted that 6 pensioners were paid a total of UGX.26,607,195 off the IPPS \uf0b7 I observed that there were variances of UGX.514,103,048 between the figures in the MoPS IPPS and entity payroll registers, \uf0b7 Operational challenges were encountered; E.g. Un-reliable network in Mitooma where HR staff had to physically travel to the neighbouring Bushenyi District to be able to download documents such as pension payroll registers. \uf0b7 I noted that the upgrade of Mayanga HC II to HC III contracted to Khalsa (U) Ltd was still under construction and only at roofing stage by the time of audit inspection on 13th October, 2021. However, the medical equipment had already been procured and delivered under a separate contract to M/s Rodrisa Supplies Limited who was expected to supply, deliver, instal, train and commission the medical equipment. Procurement of medical equipment for a health facility still at foundation stage may lead to obsolescence, pilferage and physical damage leading to nugatory expenditure. |\n|---:|------:|:----------------------------------|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 16 | RUKUNGIRI DLG Opinion Unqualified | \uf0b7 I noted that the wage and Pension Pay roll of UGX.30,042,268,241 constituted 66.8% of the District\u2019s budget for 2020/2021 of UGX.44.95 Bn. \uf0b7 I noted that the District did not submit wage estimates to MoPS, |", "metadata": {"page": 452, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | project). Project behind schedule by four(04) months \uf0b7 I noted that The District received UGX.499,963,986 (96.3%) of its Uganda Road fund and as a result was not able to maintain 14.2 Km of roads as planned | Unnamed: 2 |\n|---:|-------------:|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | 17 | RWAMPARA DLG Opinion Unqualified | \uf0b7 I noted that the wage and Pension Pay roll of UGX.12,530,332,963 constituted 62% of the District\u2019s budget for 2020/2021 of UGX.20,291,699,406. \uf0b7 I noted that the District did not to submit wage estimates to MoPS, as required \uf0b7 I noted salary overpayment of UGX 6,766,726 \uf0b7 I further noted that there was an under payment of UGX.30,357,501 \uf0b7 I noted pension and gratuity overpayment of UGX 2,144,892 \uf0b7 I noted that UGX.4,580,492 was paid to 4 staff who had either retired or died \uf0b7 I noted that whereas UGX.2,342,683,197 was deducted from employees\u2019 salaries to be remitted to different beneficiaries, UGX.2,336,599,219 was remitted, leading to an over remittance of UGX.1,549,064 and under remittance of UGX.7,633,042 \uf0b7 I noted that the District made unauthorized loan deductions totalling UGX.48 million. The deductions were from 28 employees that had no letters of undertaking however existed in the \u201cactive deduction\u201d and the \u201cmy approval\u201d reports on the PDMS-Payroll Deduction Management System, operated by PCA-Payroll Consults Africa \uf0b7 I noted that deductions to UCLA/UBA were not remitted concurrently with salary payments for 12 out 12 months. I also noted that there was an average delay to remit deductions to UCLA/UBA of 21.3 days \uf0b7 I noted delays in the remittance of PAYE deductions to URA for 2 months. I also noted that there was an average delay to remit deductions to URA of 0.5 days \uf0b7 I noted that the District did not subject political leaders\u2019 gratuity totalling to UGX.3,114,720 to the computation of PAYE in IPPS, leading to an under deduction of UGX.934,416 \uf0b7 I noted that 51 newly recruited/ transferred employees delayed to access payroll, with delays ranging between 9 weeks \uf0b7 I noted that 15 pensioners delayed to access the pension payroll, with delays ranging between 3-4 months \uf0b7 noted that the District did not prepare monthly wage, pension and gratuity performance analysis and thus did not submit quarterly returns on payroll to MoPS, \uf0b7 I noted that although the district had prepared a strategic plan that at the time of audit, it had not yet been approved as aligned |", "metadata": {"page": 454, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}, {"content": "| | Unnamed: 0 | project). Project behind schedule by four(04) months \uf0b7 I noted that The District received UGX.499,963,986 (96.3%) of its Uganda Road fund and as a result was not able to maintain 14.2 Km of roads as planned | Unnamed: 2 |\n|---:|:-------------|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n| 0 | Unnamed: 0 | to the NDP-III \uf0b7 I noted that Rwampara District budgeted to collect UGX.0.392bn during the year under review. The entity collected UGX.0.379bn representing 96.68% performance. \uf0b7 I noted that the entity budgeted to receive UGX.1.51 Bn as transfers from other Government Units. However, only UGX.0.68 Bn was received representing 45% performance leading to revenue shortfall of UGX. 0.83Bn (55%). | Unnamed: 2 |\n| 1 | 18.0 | SHEEMA DLG Opinion Unqualified | \uf0b7 I noted that the wage and Pension Pay roll of UGX.18,356,082,529 constituted 65% of the District\u2019s budget for 2020/2021 of UGX.27,950,550,703 \uf0b7 I reviewed payroll funds absorption and noted that UGX.17.61 billion (95%) was spent out of the total receipts of UGX.18.52 billion, resulting in an unabsorbed balance of UGX.0.91 billion. \uf0b7 I noted that whereas UGX.3,758,132,718 was deducted from employees\u2019 salaries to be remitted to different beneficiaries, UGX.3,749,366,009 was remitted, leading to an over/ under remittance of UGX.73,581,127 and UGX.82,347,836 \uf0b7 I noted that the District made unauthorized loan deductions to 663 employees totalling UGX.1,146,130,412. The deductions neither had letters of undertaking nor existed in the \u201cactive deduction\u201d or the \u201cmy approval\u201d reports on the PDMS-Payroll Deduction Management System. \uf0b7 I noted that 3 pensioners delayed to access the pension payroll, with delays ranging between 12-22 months \uf0b7 I noted that UGX.5,912,486 was charged on account codes other than those prescribed for salary, pension and gratuity \uf0b7 I noted that the District did not prepare monthly wage, pension and gratuity performance analysis and thus did not submit quarterly returns on payroll to MoPS, \uf0b7 I noted that 272 staff were paid a total of UGX. 309, 147,845 off IPPS \uf0b7 Mismatches of names that take long to be corrected by NIRA and affects ability to timely access people on payroll. \uf0b7 In some cases, the statuses under IPPS remain \u201cNOT VERIFIED\u201d even when the record is verified and approved. This again requires one to contact Ministry of Public service for an intervention. \uf0b7 It was noted that at the time of audit (June 2020/21) out of 5 strategic targets, Sheema district fully attained 1 target, and partially completed 4 \uf0b7 I noted that the District budgeted to collect UGX.0.587million during the year under review. The entity collected UGX.0.351million representing 60% performances \uf0b7 I noted that he entity budgeted to receive UGX.960,458,000 as |", "metadata": {"page": 455, "document_name": "Annual Consolidated OAG audit reports 2021", "headings": [], "type": "table"}}] \ No newline at end of file diff --git a/reports/Annual Consolidated OAG audit reports 2021/Annual Consolidated OAG audit reports 2021.md b/reports/Annual Consolidated OAG audit reports 2021/Annual Consolidated OAG audit reports 2021.md new file mode 100644 index 0000000000000000000000000000000000000000..9ec9d3423901eb22e920157474c1629204b7a7d2 --- /dev/null +++ b/reports/Annual Consolidated OAG audit reports 2021/Annual Consolidated OAG audit reports 2021.md @@ -0,0 +1,10153 @@ +## THE REPUBLIC OF UGANDA + +## REPORT OF THE AUDITOR GENERAL TO PARLIAMENT + +FOR THE FINANCIAL YEAR ENDED 30 TH JUNE 2021 + +#### OFFICE OF THE AUDITOR GENERAL UGANDA + +DECEMBER, 2021 + +![](assets_AuditReports%5CConsolidated%20reports%5CAnnual%20Consolidated%20OAG%20audit%20reports%202021/img-01_0.png) + +--- + +## ii + +--- + +### TABLE OF CONTENTS + +LIST OF ACRONYMS - ix +GLOSSARY OF TERMS - xi +FOREWORD BY THE AUDITOR GENERAL - xii +PART 1: INTRODUCTION AND PURPOSE OF THE REPORT - 1 + 1.0 INTRODUCTION AND PURPOSE - 1 + 1.1 General Introduction - 1 + 1.2 Purpose - 1 + 1.3 Summary of Audit Results - 2 + 1.3.1 General Performance - 2 + 1.3.2 Summary of Opinions - 3 +PART 2: CONSOLIDATED FINANCIAL STATEMENTS - 4 +REPORT OF THE AUDITOR GENERAL ON THE CONSOLIDATED FINANCIAL STATEMENTS - 4 +2.0 +2.1 REPORT AND OPINION OF THE AUDITOR GENERAL ON THE GOVERNMENT OF UGANDA +CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 TH JUNE 2021 - 4 +Opinion… .………………………………………………………………………………………………………………………………… - 4 +Basis for Opinion - 4 +Key Audit Matter - 4 +Implementation of the approved budget - 4 +2.1.1. +COVID 19 expenditure - 11 +2.1.2. +Compensations/Acquisition of Right of Way for Selected Transmission Lines Projects - 14 +2.1.3. +Emphasis of Matter - 16 +Other Matter - 17 + 2.1.4 Tax policy - 17 +Audit of public debt - 19 +2.1.5. +Management of ICT in government - 25 +2.1.6. +Audit of public investments - 27 +2.1.7. +Continued expenditure off the IFMS – UGX 695,372,792,876 - 30 +2.1.8. +Other Information - 31 +Responsibilities of Management for the Consolidated Financial Statements - 31 +Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements - 32 +Other Reporting Responsibilities - 33 + +## iii + +--- + +Report on the Audit of Compliance with Legislation ................................................................................33 + +### 2.1.9. + +### Use of prior financial years unspent funds ..............................................................................33 + +2.2 +REPORT AND OPINION OF THE AUDITOR GENERAL ON THE GOVERNMENT OF UGANDA CONSOLIDATED FINANCIAL STATEMENTS OF THE LOCAL GOVTS FOR THE YEAR ENDED 30 TH JUNE 2021 ...35 Opinion ……………………………………………………………………………………………………………………………………… 35 Basis for Opinion............................................................................................................................................35 + +### Key Audit Matters ..........................................................................................................................................35 + +2.2.1. Payroll management in Local Governments..........................................................................................35 Other Matter..................................................................................................................................................40 2.2.2. Implementation of the approved budget .............................................................................................40 + +### 2.2.3. Operationalization of New Cities.......................................................................................................44 2.2.4. + +Capitation Grant for Printing of Home Study Materials .......................................................................44 + +### 2.2.5. Un-Accounted for Funds ..................................................................................................................45 2.2.6. Irregular payment of Salary and Salary arrears to staff in Apac DLG ..................................................45 2.2.7. Failure to submit Financial Statements for consolidation ....................................................................46 2.2.8. + +Implementation of UgIFT project activities .......................................................................................47 Other Information ..........................................................................................................................................49 Management Responsibilities for the Financial Statements................................................................................49 + +## Auditor’s Responsibilities for the Audit of the Financial Statements....................................................................49 Other Reporting Responsibilities .....................................................................................................................51 + +Report on the Audit of Compliance with Legislation ..........................................................................................51 2.3 +REPORT OF THE AUDITOR GENERAL ON THE CONSOLIDATED SUMMARY STATEMENT OF FINANCIAL PERFORMANCE OF PUBLIC CORPORATIONS AND STATE ENTERPRISES FOR THE YEAR ENDED 30 TH JUNE 2021 + +## …………………………………………………………………………………………………………………………………..52 2.3.1. + +Review of the Consolidated Summary Statement of Financial Performance of Public Corporations and State Enterprises ........................................................................................................................ 52 + +### 2.4.1 + +### Review of Financial Performance of Public Corporations and State Enterprises ............................... 54 + +PART 3: SECTORAL AND LOCAL GOVERNMENTS CROSS CUTTING FINDINGS ............................................60 + +### 3.1. + +PUBLIC SECTOR MANAGEMENT ........................................................................................... 60 + +### 3.1.1. + +### Government readiness to implement the programmatic approach ................................................60 3.1.2. + +### Limited efforts to build the capacity of planning units within Government ......................................61 + +3.2. SECURITY SECTOR ............................................................................................................62 + +### 3.2.1. + +### Monitoring and Supervision of Government Programmes under Office of the President ....................62 + +3.3. AGRICULTURE SECTOR ......................................................................................................62 + +### 3.3.1. + +Mainstreaming of Agriculture Sector agencies ..........................................................................62 + +### 3.3.2. + +### Over dependence on the Public Private Partnership in the Cotton sector .......................................63 3.3.3. + +### Management of Foot and Mouth Disease (FMD) Outbreaks in the Country .....................................64 + +## iv + +--- + +### 3.4. + +JUSTICE LAW AND ORDER SECTOR - 65 +Management of cases and Case backlog - 65 +3.4.1. +Operationalisation of the Joint Venture Agreement - 66 +3.4.2. +INFORMATION COMMUNICATION TECHNOLOGY SECTOR - 67 +3.5. +Absence of a National IT Governance/Oversight System - 67 +3.5.1. +Failure by MDAs to Pay for National Backbone Infrastructure Services - 67 +3.5.2. +Uncollected Revenue from Media Operators - 67 +3.5.3. +Lack of a Communications Tribunal - 68 +3.5.4. + 3.6 ACCOUNTABILITY SECTOR - 69 +Approval of supplementary funding without matching revenue - 69 +3.6.1. +Underperformance in Revenue Collection - 69 +3.6.2. +3.6.3. +Overstay of projects in the Public Investment Plan (PIP)-UGX.39.01Tn - 69 +Un recovered Advances; UGX.2,819,193,074 - 70 +3.6.5. +Absence of a monitoring and evaluation framework for impact assessment for tax exemptions - 70 +3.6.6. + 3.7 ENERGY SECTOR - 71 +Capitalization of Uganda National Oil Company and its Subsidiary Companies - 71 +3.7.1. +Implementation of the Electricity Connection Policy(ECP) - 71 +3.7.2. +Vandalism and Theft of UETCL Grid Assets - 72 +3.7.3. +Deemed Energy Purchases: UGX.87.7 Billion and Power Evacuation Losses UGX.15.29 Billion - 72 +3.7.4. +Delayed Commissioning of Karuma HPP - 73 +3.7.5. +3.7.6. +GENDER AND SOCIAL DEVELOPMENT SECTOR - 75 +Labour Externalization Inadequacies - 75 +3.8.1. +Implementation of the Uganda Women Entrepreneurship Programme - 76 +3.8.2. + 3.9 LAND SECTOR - 77 +Management of Government Land Matters - 77 +3.9.1. + 3.10 EDUCATION SECTOR - 77 + 3.10.1 Management of Bilateral Scholarships - 77 +Management of Research Grants by Public Universities in Uganda - 78 +3.10.2. +WATER & ENVIRONMENT SECTOR - 80 +3.11. +Afforestation and Restoration of Selected Central Forest Reserves (CFRS) by the (NFA) - 80 +3.11.1. + 3.12 WORKS SECTOR - 81 +Uganda National Roads Authority - 81 +3.12.1. +Ministry of Works and Transport - 82 +3.12.2. +v + +### Performance of the collaborating institutions under the Tax Registration and Expansion Programme ..69 3.6.4. + +### Bottlenecks in the Compensation of Project Affected Persons(PAPs) under Transmission Line Projects 74 3.8. + +--- + + 3.12.3 Uganda Railways Corporation - 83 +Uganda Civil Aviation Authority - 83 +3.12.4. + 3.13 HEALTH SECTOR - 85 + 3.13.1 Mulago National Referral Hospital - 85 + 3.13.2 National Drug Authority - 86 +SCIENCE, TECHNOLOGY AND INNOVATION SECTOR - 86 +3.14. +Closure of the Ministry of Science, Technology and Innovation - 86 +3.14.1. +Un-deployed Staff upon the abolition of the Ministry - 87 +3.14.2. +Progress on the COVID-19 Vaccine, Diagnostics and Treatment Projects - 87 +3.14.3. + 3.15 TRADE SECTOR - 88 + 3.16 TOURISM SECTOR - 89 +HIGHLIGHTS FROM THE AUDIT OF LOWER LOCAL GOVERNMENTS FOR THE PERIOD 2019/2020 - 90 +3.17. + 3.17.1 Under staffing - 90 +Budget implementation in sample LLGs for FY 2018/2019 and 2019/2020 - 91 +3.17.2. + 3.17.3 Quality of Financial Statements - 92 +Land Management in Local Governments - 92 +3.17.4. +Lack of Urban Physical Planning Committees - 93 +3.17.5. +HIGHLIGHTS FROM THE ENGINEERING AUDITS - 94 +4.0. +4.1. +Engineering Audit of Selected Road and Building Projects in Kampala Capital City Authority (KCCA) - 98 + 5.0 INFORMATION SYSTEMS AUDITS - 100 +Information Systems Audit of Civil Aviation Authority - 100 +5.1. +Information Systems Audit of the Academic Management Information System (AIMS) - 102 +5.2. +Information Systems Audit of Uganda National Land Information System (Ug-NLIS) - 105 +5.3. + 6.0 SPECIAL VERIFICATIONS - 108 +Verification of Assets and Liabilities for Uganda Telecom (In-Administration) - 108 +6.1. +Verification of Terminal Benefits/Pension of former Employees UPTC - 109 +6.2. +HIGHLIGHTS OF VALUE FOR MONEY AUDIT RESULTS - 111 +7.0. +Value for Money Audit on the Management of Government Investments by UDC - 111 +7.1. +7.2 A Value for Money Audit on The Afforestation and Restoration of Selected Central Forest Reserves +(CFRs) by the National Forestry Authority (NFA) - 113 +7.3 A Value for Money Audit on the Implementation of the Uganda Women Entrepreneurship Programme +………………………………………………………………………………………………………………………………….115 +A Value for Money Audit Report on the Management of Research Grants by Public Universities - 117 +7.4. +vi + +### Value for Money Audit of Urban Infrastructure projects implemented by 22 Municipal Councils …….... 94 4.2. + +### Value for Money audit and assessment of Infrastructure projects under the UgIFT Program …….……. 95 4.3. + +--- + +### 7.5. + +Value for Money Audit on The Management Of MATIP-1 Markets by Municipalities - 121 +Prevention and Response to Incidents of Fire by Uganda Police Force - 122 +7.6. +Value for Money Audit on the Performance of the Agriculture Cluster Development Project - 125 +7.7. +7.8 Follow up on the Value for Money Audit on the Compensation of Project Affected Persons under the +Refinery Project by the Ministry of Energy and Mineral Development - 126 +7.9 VFM Audit on the Implementation of the Uganda Reproductive Maternal and Child Health Services +Improvement Project (URMCHSIP) - 127 +ANNEXURES - 129 +ANNEXURE I: SUMMARY OF ENTITY FINDINGS AND OPINIONS FOR MDAs, COMMISSIONS, STATUTORY +CORPORATIONS AND STATE ENTERPRISES AND PROJECTS - 129 +ANNEXURE II: SUMMARY OF ENTITY FINDINGS AND OPINIONS FOR LOCAL GOVERNMENTS - 316 +ANNEXURE III: REPORTS AND CONSOLIDATED GOVERNMENT OF UGANDA FINANCIAL STATEMENTS - 445 + +## vii + +--- + +LIST OF TABLES + +Table 1: Status of audit performance for audit year 2021 - 2 +Table 2: Summary of Current Year Opinions - 3 +Table 3: Trend of Opinions for MDAs, Higher Local Governments for the last three years - 3 +Table 4: Tax arrears - 19 +Table 5: Debt portfolio analysis - 20 +Table 6: Total revenue ratio - 22 +Table 7: Tax to GDP ratio - 23 +Table 8: Noncompliance with the 70% capital threshold - 28 +Table 9: Absorption of fund - 29 +Table 10: Showing Level of Absorption for Wage, Pension and Gratuity - 36 +Table 11: Entities with unsupported expenditure - 45 +Table 12 Un-consolidated local governmentsSn - 46 +Table 13: Status of implementation of UgIFT projects - 47 +Table 14: UgIFT projects without land titles - 48 +Table 15: Entities not Consolidated, but Disclosed in summary statement - 53 +Table 16: Entities neither reported nor Disclosed in the consolidated summary statement - 53 +Table 17: Entities not assessed - 54 +Table 18: Profitability of Public Corporation and State Enterprises - 55 +Table 19: Returns on Assets - 56 +Table 20: Enterprise Liquidity - 57 +Table 21: Liquidity assessment for financial institutions - 58 +Table 22: Loans and Advances performance - 59 +Table 23: Enterprises' ability to service loan obligations - 59 +Table 24: Comparison of consolidated quantities of production inputs - 63 +Table 25: Information Systems within the JLOS Sector - 65 +Table 26: Understaffing in Lower Local Government - 90 +Table 27: Performance of Central Government Grant - 91 +Table 28: Performance of Local Revenue - 91 +Table 29: Unjustified Payments and Overpayments - 99 +Table 30: Creditors Verified - 108 +Table 31: Summary of claims presented for Verification - 110 +Table 32: Summary of Verified claims payable - 110 +Table 33: Challenges of Project Implementation - 112 + +## viii + +--- + +LIST OF ACRONYMS + +| ACRONYM | DESCRIPTION | +|---|---| +| AG | Auditor General | +| AO | Accounting Officer | +| Bn | Billion | +| BoU | Bank of Uganda | +| CAs | Contracting Authorities | +| CFR | Central Forest Reserve | +| DGAL | Directorate of Government Analytical Laboratory | +| DLB | District Land Board | +| FY | Financial Year | +| GDP | Gross Domestic Product | +| GoU | Government of Uganda | +| ICT | Information Communication Technology | +| IDA | International Development Association | +| IESBA | International Ethics Standards Board for Accountants | +| IFMS | Integrated Financial Management System | +| IMF | International Monetary Fund | +| KIS | Kalangala Infrastructure Services | +| MAAIF | Ministry of Agriculture Animal Industry and Fisheries | +| MDAs | Ministries, Departments and Agencies | +| MEMD | Ministry of Energy and Mineral Development | +| MOFPED | Ministry of Finance, Planning, and Economic Development | +| MoGLSD | Ministry of Gender Labour and Social Development | +| MoU | Memoranda of Understanding | +| MTEF | Medium Term Expenditure Framework | +| NAA | National Audit Act | +| NBI | National Backbone Infrastructure | +| NDP | National Development Plan | +| NDPII | Second National Development Plan | +| NEF | National Environment Fund | +| NEMA | National Environment Management Authority | +| NFA | National Forestry Authority | +| NGO | Non-Governmental Organisation | +| NIN | National Identification Number | +| NIRA | National Identification Registration Authority | +| NPA | National Planning Authority | +| NWSC | National Water and Sewerage Corporation | +| OAG | Office of the Auditor General | +| PAPs | Project Affected Persons | +| PDMF | Public Debt Management Framework | +| PFMA | Public Finance Management Act, 2015 | +| PS/ST | Permanent Secretary/Secretary to the Treasury | +| PSST | Permanent Secretary and Secretary to Treasury | +| TAI | Treasury Accounting Instructions, 2016 | +| TIN | Tax Identification Number | +| Tn | Trillion | +| TWGs | Technical Working Groups | +| UCC | Uganda Communications Commission | + + +## ix + +--- + +| UCF | Uganda Consolidated Fund | +|---|---| +| UDC | Uganda Development Corporation | +| UETCL | Uganda Electricity Transmission Company Limited | +| UGX | Uganda Shillings | +| URA | Uganda Revenue Authority | +| USD | United States Dollars | +| USMID | Uganda Support for Municipal Infrastructure Development | +| WMD | Wetlands Management Department | +| YIGs | Youth Interest Groups | +| YLP | Youth Livelihood Programme | + + +x + +--- + +GLOSSARY OF TERMS + +| Term | Definition | +|---|---| +| Classified Expenditure | The expenses and commitments incurred by an authorised agency for the collection and dissemination of information related to national security interests | +| Contingent Liability | A potential liability that may occur depending on the outcome of an uncertain future event. | +| Domestic Arrears | Domestic arrears refer to short-term debts incurred by Governments against unpaid procurement invoices for supply of goods and services during the financial year | +| External Debt | Portion of a country's debt that was borrowed from foreign lenders including commercial banks, Governments or international financial institutions. | +| Garnishee order | A form of enforcing a judgment debt against a creditor to recover money. | +| Nugatory Expenditure | Expenditure that does not achieve any result | +| Off-budget financing | Off-buget refers to expenditure that is not funded through the budget | +| Recruitment | Refers to the process of attracting, screening, selecting, and on boarding a qualified person for a job, provided by an employer in another territory and the preparation for their departure. | +| Revolving Fund | A fund that is continually replenished as withdrawals are made. | +||| + + +## xi + +--- + +## FOREWORD BY THE AUDITOR GENERAL + +In accordance with my audit mandate set out under Article 163 of the Constitution of the Republic of Uganda, 1995 (as amended) and the National Audit Act, 2008, I hereby present to you the Annual Audit Report on the Consolidated Public Accounts of Uganda; Local Government; and Summary Statement of Financial Performance of Public Corporations, and State Enterprises and Companies in which Government has a controlling interest. + +In delivering my mandate, I audited financial statements for 128 MDAs, 107 Statutory Corporations 145 Local Governments and 2048 Lower Local Governments. In addition, I undertook four (4) thematic audits covering, Management of Covid-19 pandemic intervention, compensations of Project Affected Persons, implementation of the approved budget, and Payroll and Pension payments. + +The Office reviewed its audit process to comply with the Covid-19 guidelines from the Ministry of Health and Ministry of Public Service, by conducting some critical meetings virtually and coping with a lean staff. In addition, Stakeholders have increased their call to strengthen accountability in the wake of the Pandemic triggering special audits and investigations relating to Covid-19 expenditure. + +Due to the impact of the Pandemic, some audits were not conducted as planned, but we are committed to continuously adding value to society by making recommendations that enhance accountability and improved service delivery through audit services. + +I extend my gratitude to the Government of Uganda and all other stakeholders for the support rendered to my office during the audit year. I also thank my staff for their unwavering commitment during this challenging period. + +![](assets_AuditReports%5CConsolidated%20reports%5CAnnual%20Consolidated%20OAG%20audit%20reports%202021/img-12_0.png) + +John F.S. Muwanga AUDITOR GENERAL + +31 st December 2021 + +## xii + +--- + +#### PART 1: INTRODUCTION AND PURPOSE OF THE REPORT 1.0 INTRODUCTION AND PURPOSE + +1.1 General Introduction + +I am required by Article 163(3) of the Constitution of the Republic of Uganda and Section 13 and 19 of the National Audit Act 2008 to audit and report on the public accounts of Uganda and of all public offices including the Courts, the Central and Local Government Administrations, Universities and Public Institutions of like nature and any Public Corporations or other bodies established by an Act of Parliament. + +Section 13 (b) of the National Audit Act 2008 further requires me to conduct the following audits: + + + +- Financial audits +- Value for money + +#  Engineering + +- Information Systems +- Special/Forensic Audits +- Gender and Environment and any other audits in respect of any project or activity involving public funds +- Classified expenditure +- Government investments +- Procurement audits, and +- Treasury Memoranda + + + +Under Article 163 (4) of the Constitution, I am also required to submit to Parliament annually a report of the accounts audited by me for the year immediately preceding. I am therefore, issuing this report in accordance with the above provisions. + +1.2 Purpose +The purpose of this report is to provide: + +## (i) + +A summary of audit results and opinions for audits done in the year + +## (ii) + +A report and Opinion of the Auditor General on the; + + + +- Consolidated Financial Statements of the Government of the Republic of Uganda for the year ended 30 th June 2021 +- Consolidated Financial Statements of Local Governments for the year ended 30 th June 2021 +- The Consolidated Summary Statement of Financial Performance of Public Corporations and State Enterprises for the year ended 30 th June 2021 + +(iii) +A summary of audit results from audit of thematic and focus areas + +1 + +--- + +(iv) Sectoral and cross cutting findings, implications and recommendations from the audit of Ministries, Departments, Agencies, Commissions, Statutory Corporations and Local Governments and other specialised audit findings. For the first time, a summary of IT Audit findings have been included in the report under Part 4 of the report. + +## (v) + +A summary of findings of completed audits which include opinions from the audit of Ministries, Departments, Agencies, Commissions, Statutory Corporations (Annexure I) and Local Governments (Annexure II). + +1.3 + +## Summary of Audit Results + +**1.3.1** General Performance + +During the current year, I planned to undertake 4,165 audits. I was able to undertake 2,692 audits which made up 88.1% of the annual approved budget of Government. The summary is in Table 1 below and details are in Annexure I, II. + +A total of 1,473 audits, of which 50% are schools and tertiary institutions, could not be undertaken due to the effects of Covid-19 pandemic and resource constraints. This significantly affected the flow of work from the entities and within the offices. The summary is shown in Table 1 below. + +The forensic investigations and special audit reports have been issued to the respective stakeholders who requested for them. + +### Table 1: Status of audit performance for audit year 2021 + +| Type of Entity/Audit | Planned Audits for the audit year 2021 | Revised Planned Audits for the year 2021 | Actual Performance as at December 31, 2021 | Audits deferred during the year | +|---|---|---|---|---| +| MDAs | 123 | 170 | 128 | 42 | +| Funds | 3 | 3 | 3 | 0 | +| Classified entities | 13 | 13 | 0 | 13 | +| International Audits | 2 | 2 | 2 | 0 | +| Commissions, Statutory Authorities and State Enterprises | 95 | 121 | 107 | 14 | +| Projects | 167 | 257 | 146 | 111 | +| PSAs | 4 | 8 | 4 | 4 | +| Districts | 135 | 135 | 115 | 20 | +| Municipal Councils and Cities | 41 | 41 | 24 | 17 | +| Lower Local Governments for 18/19 and 19/20 | 1,662 | 2,291 | 2,048 | 243 | +| Regional Referral hospitals | 14 | 14 | 6 | 8 | +| Schools/Tertiary institutions | 379 | 746 | 0 | 746 | +| Forensics/Special Audit | 71 | 71 | 8 | 63 | +| VFM Studies | 20 | 41 | 8 | 33 | +| Engineering Audits | 230 | 240 | 90 | 150 | +| IT Audits | 10 | 12 | 3 | 9 | +| TOTAL | 2,969 | 4,165 | 2,692 | 1,473 | + + +2 + +--- + +**1.3.2** Summary of Opinions +Of the financial audits concluded (MDA, Commissions, Statutory Authorities and State Enterprises, Projects, Districts and Municipalities), 502 (95%) entities had unqualified opinions while twenty-seven (27) entities had qualified opinions. Table 2 and figure 1 below provides the summary of the Opinions: + +### Table 2: Summary of Current Year Opinions + +| Category of Audited entities | Type of Opinions |<|<|<| Total | +|---|---|---|---|---|---| +|| Unqualified | Qualified | Adverse | Disclaimer || +| Ministries, Departments and Agencies | 116 | 12 | 0 | 0 | 128 | +| Commissions, Statutory Authorities and State Enterprises | 100 | 7 | 0 | 0 | 107 | +| Projects | 144 | 2 | 0 | 0 | 146 | +| Districts Local Governments | 110 | 5 | 0 | 0 | 115 | +| Regional Referral hospitals | 6 | 0 | 0 | 0 | 6 | +| Municipal Councils and Cities | 23 | 1 | 0 | 0 | 24 | +| Funds | 3 | 0 | 0 | 0 | 3 | +| TOTAL | 502 | 27 | 0 | 0 | 529 | + + +\*The table above excludes Lower Local Governments + +### Table 3: Trend of Opinions for MDAs, Higher Local Governments for the last three years + +| Type of Opinion | 2020/21 | 2019/20 | 2018/19 | +|---|---|---|---| +| Unqualified | 502 | 420 | 433 | +| Qualified | 27 | 33 | 54 | +| Adverse | 0 | 0 | 0 | +| Disclaimer | 0 | 0 | 0 | +| Total | 529 | 453 | 487 | + + +### Figure 1: Summary of opinions for the last 3 years + +600 500 400 300 + +#### Unqualified qualified + +200 100 0 + +#### 2018/19 2019/20 2020/21 + +3 + +--- + +## PART 2: CONSOLIDATED FINANCIAL STATEMENTS + +2.0 +REPORT OF THE AUDITOR GENERAL ON THE CONSOLIDATED FINANCIAL STATEMENTS + +2.1 +REPORT AND OPINION OF THE AUDITOR GENERAL ON THE GOVERNMENT OF UGANDA CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 TH JUNE 2021 + +THE RT. HON. SPEAKER OF PARLIAMENT + +## Opinion + +I have audited the accompanying Consolidated Financial Statements of the Government of the Republic of Uganda for the year ended 30 th June 2021. These financial statements comprise of the Consolidated Statement of Financial Position as at 30 th June 2021, the Consolidated Statement of Financial Performance, and Consolidated Cash Flow Statement together with other accompanying statements, notes, and accounting policies. + +In my opinion, the Consolidated Financial statements of the Government of the Republic of Uganda for the financial year ended 30th June 2021 are prepared, in all material respects, in accordance with Section 52 of the Public Finance Management Act, 2015 and the Financial Reporting Guide, 2018. + +Basis for Opinion + +I conducted my audit in accordance with International Standards of Supreme Audit Institutions (ISSAIs). My responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statement’s section of my report. I am independent of the Treasury in accordance with the Constitution of the Republic of Uganda (1995) as amended, the National Audit Act, 2008, the International Ethics Standards Board for Accountants (IESBA) Code of Ethics for Professional Accountants (Parts A and B), the International Organization of Supreme Audit Institutions (INTOSAI) Code of Ethics and other independence requirements applicable to performing audits of Financial Statements in Uganda. I have fulfilled my other ethical responsibilities in accordance with the IESBA Code, and in accordance with other ethical requirements applicable to performing audits in Uganda. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my qualified opinion. + +Key Audit Matter + +Key audit matters are those matters that, in my professional judgment, were of most significance in my audit of the financial statements of the current period. These matters were addressed in the context of my audit of the financial statements as a whole, and in forming my opinion thereon, and I do not provide a separate opinion on these matters. I have determined the matters described below to be key audit matters communicated in my report. + +## 2.1.1. + +Implementation of the approved budget + +On the 24 th April 2020, Parliament approved the annual budget for MDAs and LGs that contained the specific resource envelope allocated to each vote to implement agreed on + +4 + +--- + +outputs. Subsequently, the PS/ST issued a Budget Execution Circular that communicated the budget strategy, policy, and administrative issues to guide the budget implementation for the financial year 2020/2021. + +During my overall risk assessment exercise, I noted that MDAs and LGs are still experiencing challenges in implementing the budgets approved by parliament and policy guidance’s issued by PS/ST, which has continued to affect the performance and credibility of the budget negatively. These challenges include; lack of strategic plans that are aligned to the National Development Plans, underperformance of revenue, implementation of off-budget activities, under absorption of funds, insufficient quantification of outputs, partial and non- implementation of outputs, diversion of funds and challenges in budget monitoring and reporting of performance. + +I am aware that the Covid-19 Pandemic continues to significantly affect the implementation of several activities. Consequently, a number of activities were not implemented due to budget cuts and lockdown measures instituted to control the spread of the pandemic. It is against this background that the implementation of the budget was again considered a key audit area during the office-wide planning for the current audit year. + +Consequently, I developed procedures to address the performance of the budget of the entity (Detailed reports are provided in individual entity reports). + +From the procedures undertaken, I noted the following; + +SN Finding Recommendation a) Revenue performance +I advised the Secretary to the + +### A review of the approved budget estimates of the Government of Treasury to devise Uganda for the financial year ended 30 th June 2021 revealed that the means of ensuring + +initial approved budget (resource envelope) for the financial year that all budgeted + +### 2020/21 was UGX.45,493.69 Bn. The funding was later revised to revenue is always UGX.48,726.77 Bn, following approval for additional domestic collected to fund the financing of UGX.3,234 Bn. It was estimated that Tax and Non Tax budget as approved. revenue amounted to UGX.22,024.66 Bn, domestic borrowing would finance UGX.6,794 Bn while external financing would provide grants + +of UGX.1,719.91Bn and loans of UGX.10,702.10Bn. + +### The table below summaries the performance of revenue by source; + +Funding source Approved Revised Actual (Bn) Variance Perform Budget (Bn) - budget + +- UGX (Bn) - ance UGX (Bn)-UGX UGX (%) + +Domestic Resources +Taxes 20,218.68 20,218.68 18,252 1,966.68 90 + +Non-Tax 1,805.98 1,805.98 1,648 157.98 91 revenue 1 +Domestic 3,560.32 6,794 6,794 - 100 financing +Domestic 7,486.1 7,486.1 7,420 66.1 99 refinancing + +### 1 Includes Appropriation in Aid of UGX 215 billion. + +5 + +--- + +| SN Finding |<|<|<|<|<|<|<|<|<|<| Recommendation | +|---|---|---|---|---|---|---|---|---|---|---|---| +|   A   A  | External Resources |<|<|<|<|<|<|<|<|<|<| +|^| Budget support |<|<|<|<|<|<|<|<|<|<| +|^| Grants |<|<| 133.56 |<|<| 133.56 | 62.85 | 70.71 | 47 |<| +|^||<|<|<|<|<|<|<|<|<|<| +|^| Loans |<|<| 2,773.12 |<|<| 2,773.12 | 3,134.13 | -361.01 | 113 |<| +|^| Project support |<|<||<|<|||||<| +|^||<|<|<|<|<|<|<|<|<|<| +|^| Grants |<|<| 1,586.35 |<|<| 1,586.35 | 1,026.04 | 560.31 | 65 |<| +|^| Loans |<|<| 7,928.98 |<|<| 7,928.98 | 6,822.23 | 1,106.75 | 86 |<| +|^||<|<|<|<|<|<|<|<|<|<| +|^| Grand Total |<|<| 45,493.09 |<|<| 48,726.77 | 45,159.25 | 1,667.06 | 93 |<| +|^||<|<|<|<|<|<|<|<|<|<| +|^| Actual funding for the budget during the financial year was UGX. |<|<|<|<|<|<|<|<|<|<| +|^| 45,159.25Bn (93%) against a revised revenue budget of UGX. |<|<|<|<|<|<|<|<|<|<| +|^| 48,726.77Bn, indicating a shortfall of UGX. 3,567.52Bn. The details of |<|<|<|<|<|<|<|<|<|<| +|^| funding source are provided below. |<|<|<|<|<|<|<|<|<|<| +|^||<|<|<|<|<|<|<|<|<|<| +|^| Taxes total tax revenue collected during the year was UGX. |<|<|<|<|<|<|<|<|<|<| +|^|^|<|<|<|<|<|<|<|<|<|<| +|^| 19,697.7Bn, representing 90% of the approved estimates. |<|<|<|<|<|<|<|<|<|<| +|^||<|<|<|<|<|<|<|<|<|<| +|^| Non-tax revenue total of UGX.1,605.42Bn was realised from this source against a |<|<|<|<|<|<|<|<|<|<| +|^|^|<|<|<|<|<|<|<|<|<|<| +|^| target of UGX.1,805.98Bn representing a performance of 89%. |<|<|<|<|<|<|<|<|<|<| +|^| Budgeting for NTR remains a challenge at the Treasury, as the |<|<|<|<|<|<|<|<|<|<| +|^| figures included in the revenue estimates are not agreed with |<|<|<|<|<|<|<|<|<|<| +|^| individual votes, and a number of entities do not reflect NTR in their |<|<|<|<|<|<|<|<|<|<| +|^| budgets. |<|<|<|<|<|<|<|<|<|<| +|^||<|<|<|<|<|<|<|<|<|<| +|^| Budget support Government planned to raise a total of UGX.2,906.68 Bn for budget |<|<|<|<|<|<|<|<|<|<| +|^|^|<|<|<|<|<|<|<|<|<|<| +|^| support of which 5% was grants while 95% was from loans. Grants |<|<|<|<|<|<|<|<|<|<| +|^| underperformed by 52% while Government acquired loans of |<|<|<|<|<|<|<|<|<|<| +|^| UGX.361 Bn in excess of what was planned translating into a 113% |<|<|<|<|<|<|<|<|<|<| +|^| performance. The increase in loans for budget support related to |<|<|<|<|<|<|<|<|<|<| +|^| additional borrowing that was secured in light of COVID -19 |<|<|<|<|<|<|<|<|<|<| +|^| disruptions. |<|<|<|<|<|<|<|<|<|<| +|^||<|<|<|<|<|<|<|<|<|<| +|^| Project support total of UGX.9,515.33 Bn (20%) of the approved budget was |<|<|<|<|<|<|<|<|<|<| +|^|^|<|<|<|<|<|<|<|<|<|<| +|^| planned for project support of which grants and loans were |<|<|<|<|<|<|<|<|<|<| +|^| UGX.1,586.35 Bn and UGX.7,928.98 Bn respectively. Grants |<|<|<|<|<|<|<|<|<|<| +|^| underperformed by 60% (UGX.1,026.04 Bn) while UGX.6,822.23 Bn |<|<|<|<|<|<|<|<|<|<| +|^| (83%) was realised from the loans. |<|<|<|<|<|<|<|<|<|<| +|^||<|<|<|<|<|<|<|<|<|<| +|^| Domestic refinancing Government planned to pay back maturing Treasury Instruments by |<|<|<|<|<|<|<|<|<|<| +|^|^|<|<|<|<|<|<|<|<|<|<| +|^| borrowing afresh from the market (domestic refinance) to a tune of |<|<|<|<|<|<|<|<|<|<| +|^| UGX.7,486.1 Bn, of which UGX.7,420Bn (99%) was realised. |<|<|<|<|<|<|<|<|<|<| +|^||<|<|<|<|<|<|<|<|<|<| +|^| Management attributed the Tax and Non tax Revenue shortfall |<|<|<|<|<|<|<|<|<|<| +|^| mainly to the lockdown measures that were instituted by government |<|<|<|<|<|<|<|<|<|<| +|^| curb the spread of the COVID 19 that constrained revenue major |<|<|<|<|<|<|<|<|<|<| +|^| sources and the slow Economic growth which is a major contributor |<|<|<|<|<|<|<|<|<|<| +|^| taxes that declined from the projected 6.4% to 3.1%. Deficits |<|<|<|<|<|<|<|<|<|<| + + +### each The + +### to + +### to + +6 + +--- + +| SN Finding |<|<|<|<|<|<| Recommendation | +|---|---|---|---|---|---|---|---| +| were registered in CIT, VAT, excise duty and Corporation Tax since companies were not working. The EFRIS has now been rolled out and Digital stamps implementation is under way to revive revenue collection. Management also indicated that NTR Budget estimates books have been revised and the budget process for NTR enhanced to incorporate Universities fees collection which was a major challenge in terms of providing the right estimates. The NTR Budget consultation process for FY 2022/23 had been concluded for all Votes and a realistic target set for NTR collections. |<|<|<|<|<|<|<| +|^|<|<|<|<|<|<|<| +|^|<|<|<|<|<|<|<| +|^|<|<|<|<|<|<|<| +|^|<|<|<|<|<|<|<| +|^|<|<|<|<|<|<|<| +|^|<|<|<|<|<|<|<| +|^|<|<|<|<|<|<|<| +|^|<|<|<|<|<|<|<| +|^|<|<|<|<|<|<|<| +|^|<|<|<|<|<|<|<| +|^|<|<|<|<|<|<|<| +| b) Unfunded approved budget During the year under review, Government budgeted to spend a total of UGX.45,439 Bn, which was later revised to UGX.51,625 Bn. An analysis of warrants approved revealed that a total of UGX.46,657 Bn was approved against the budgeted amounts, thus representing 90% performance. A sum of UGX.4,968 Bn was not availed for expenditure. See table below; Entity Percenta ge Total Revised Budget – UGX(bn) Total warrants - UGX(bn) Variance- UGX(bn) Central Govt 73.42% 37,904.70 35,717.10 2,187.7 Local Govt 8.38% 4,327.80 4,218.40 109.4 Local Revenue 0.42% 217.4 115.3 102.0 Project Financing 17.77% 9,176.00 6,606.80 2,569.2 Total 51,626.00 46,657.60 4,968.4 Failure to fully fund the revised budget affected the implementation of the planned activities which were intended to contribute to the achievement of the NDP III and Vision 2040. The detailed impact of this shortfall on the entity activities has been reported in the individual entity reports. Notably, there was a significant variance in project financing which is explained by under absorption by the various implementing MDAs. It was observed that whereas the performance contracts with Accounting Officers are premised on availing the appropriated budgets during the year, such contracts are not revised in situations of shortfalls in budgets. The Secretary to Treasury indicated that the funds releases to Votes are in line with the available resources issued in quarterly expenditure limits which are supported by actual revenue collections from URA and also indicated that Ministry of finance provides guidance by way of circulars to all Votes to fund only critical activities within the work plans in line with the available resources. The Secretary to Treasury committed to improving releases as I advised the PSST to provide guidance to MDAs in regard to the prioritization of activities to the levels of availed resources in cases of shortfalls. |<|<|<|<|<|<|<| +|^|<|<|<|<|<|<|<| +|^|<|<|<|<|<|<|<| +|^|<|<|<|<|<|<|<| +|^|<|<|<|<|<|<|<| +|^|<|<|<|<|<|<|<| +|^|<|<|<|<|<|<|<| +|^|<|<|<|<|<|<|<| +|^|<|<|<|<|<|<|<| +|^|<|<|<|<|<|<|<| +|^|<|<|<|<|<|<|<| +|^|<|<|<|<|<|<|<| +|^|<|<|<|<|<|<|<| +|^|<|<|<|<|<|<|<| + + +7 + +--- + +| SN Finding |<|<|<|<|<|<|<|<|<|<| Recommendation | +|---|---|---|---|---|---|---|---|---|---|---|---| +| revenue collections improve with the economy recovering from the current economic shocks. |<|<|<|<|<|<|<|<|<|<|<| +| c) Unspent warrants/under absorption of funds UGX .3,018.44Bn Section 45 (3) of the Public Finance Management Act, 2015 states that an Accounting Officer shall enter into an annual budget performance contract with the Secretary to the Treasury which shall bind the Accounting Officer to deliver on the activities in the work plan of the vote for a Financial year. It was observed that warrants worth UGX.46,657.6 billion were approved in respect of various entities for which only UGX.43,639.2 billion was paid out leaving UGX.3,018.4 billion (6.5% of approved warrants) unspent. The details are indicated in the table below; Approved Warrants (UGX’ billion) Total Payments (UGX’ billion) Unspent funds (UGX’ billion) ENTI TY Wage Non - Wage Develop ment wage Non - Wage Develo pment wag e Non- Wage Dev CG 2,710 23,647 15,771 2,637 21,32 15,725 73 2,327 45 Missi ons 28 149 18 28 149 17.9 - - - LG 2,271 1,071 992.1 2,151 1,025 586 119 46 406 TOTA L 5,009 24,867 16,781 4,816 22,494 16,329 193 2,373 452 From the above, it can be seen that 79% of the unspent funds related to non-wage expenditure while wage and development expenditure posted underperformance of 6% and 15% respectively. 98% of the unspent funds under non-wage related to Vote 130 (Treasury Operations) and were meant to settle interest costs and treasury bills and Bonds redemptions. The occurrence has an implication of increasing financing costs incurred by the government since the interest costs and redemptions are done by Bank of Uganda which in turn charges the treasury for the advance. Most of the unspent funds under wage related to pension payments casting doubt on the existence of the said pensioners. Under absorption negatively affects service delivery since some of the planned projects and activities are not undertaken. The Secretary to Treasury indicated that GoU operates a Cash budget which is based on actual inflows. The year under audit experienced cash shortfalls arising from, Domestic revenue shortfall as a result of the Covid -19 pandemic , late disbursements from IMF ,which came in on 30 June 2021 & Non disbursement from Afri-Exim Bank and African Development Fund. The occurrence contributed to delay in implementation of planned activities hence the under absorption of funds. |<|<|<|<|<|<|<|<|<|<| I advised the | +|^|<|<|<|<|<|<|<|<|<|<| Secretary to the | +|^|<|<|<|<|<|<|<|<|<|<| Treasury to | +|^|<|<|<|<|<|<|<|<|<|<| strengthen the cash | +|^|<|<|<|<|<|<|<|<|<|<| forecasting function | +|^|<|<|<|<|<|<|<|<|<|<| to avoid issuing | +|^|<|<|<|<|<|<|<|<|<|<| warrants that cannot | +|^|<|<|<|<|<|<|<|<|<|<| be financed. | +|^|<|<|<|<|<|<|<|<|<|<|| +|^|<|<|<|<|<|<|<|<|<|<|| +|^|<|<|<|<|<|<|<|<|<|<|^| +|^|<|<|<|<|<|<|<|<|<|<|^| +|^|<|<|<|<|<|<|<|<|<|<|^| +|^|<|<|<|<|<|<|<|<|<|<|^| +|^|<|<|<|<|<|<|<|<|<|<|^| +|^|<|<|<|<|<|<|<|<|<|<|^| +|^|<|<|<|<|<|<|<|<|<|<|^| +|^|<|<|<|<|<|<|<|<|<|<|^| +|^|<|<|<|<|<|<|<|<|<|<|^| +|^|<|<|<|<|<|<|<|<|<|<|^| +|^|<|<|<|<|<|<|<|<|<|<|^| +|^|<|<|<|<|<|<|<|<|<|<|^| +|^|<|<|<|<|<|<|<|<|<|<|^| +|^|<|<|<|<|<|<|<|<|<|<|^| +|^|<|<|<|<|<|<|<|<|<|<|^| +|^|<|<|<|<|<|<|<|<|<|<|^| +|^|<|<|<|<|<|<|<|<|<|<|^| +|^|<|<|<|<|<|<|<|<|<|<|^| +|^|<|<|<|<|<|<|<|<|<|<|^| +|^|<|<|<|<|<|<|<|<|<|<|^| +|^|<|<|<|<|<|<|<|<|<|<|^| +|^|<|<|<|<|<|<|<|<|<|<|^| +|^|<|<|<|<|<|<|<|<|<|<|^| +|^|<|<|<|<|<|<|<|<|<|<|^| +|^|<|<|<|<|<|<|<|<|<|<|^| +|^|<|<|<|<|<|<|<|<|<|<|^| +|^|<|<|<|<|<|<|<|<|<|<|^| +|^|<|<|<|<|<|<|<|<|<|<|^| +|^|<|<|<|<|<|<|<|<|<|<|^| +|^|<|<|<|<|<|<|<|<|<|<|^| +|^|<|<|<|<|<|<|<|<|<|<|^| +|^|<|<|<|<|<|<|<|<|<|<|^| +|^|<|<|<|<|<|<|<|<|<|<|^| +|^|<|<|<|<|<|<|<|<|<|<|^| +|^|<|<|<|<|<|<|<|<|<|<|^| +|^|<|<|<|<|<|<|<|<|<|<|^| +|^|<|<|<|<|<|<|<|<|<|<|^| +|^|<|<|<|<|<|<|<|<|<|<|^| +|^|<|<|<|<|<|<|<|<|<|<|^| +| d) Approval of supplementary funding without matching revenue Section 25(1) of the Public Finance and Accountability Act (PFMA) stipulates that the total supplementary expenditure that requires additional resources over and above what is approved by Parliament I await the outcome of the new measures. |<|<|<|<|<|<|<|<|<|<|<| +|^|<|<|<|<|<|<|<|<|<|<|<| + + +8 + +--- + +| SN | Finding | Recommendation | +|---|---|---| +| shall not exceed 3% of the total approved budget for that financial year, without the approval of Parliament. It was established that during the financial year ended 30 th June 2021, supplementary funding totalling UGX.6.13Tn was granted by the Minister of Finance, Planning and Economic Development. It was, however, noted that the source of the funding for the supplementary expenditure was not clearly shown before approval was granted. As a result, the supplementary expenditure was instead financed by internal budget cuts from various votes thus affecting implementation of plans/ activities by the affected votes. I noted that, although the budget was increased to UGX.51.625Tn, it was only funded to the tune of UGX.46.6Tn (90%funding). Continued approval of supplementary budgets without a corresponding increase in revenue/financing could be attributed to fiscal indiscipline which leads to increased funding gap affecting the earlier budget objectives and plans. The Secretary to Treasury responded that for the Financial Year 2022/23, the Ministry of Finance was using zero based budgeting approach to prioritize critical activities and expenditures to avoid supplementary requests during execution. The budget for 2022/23 is being used as a launchpad for restricting supplementary budgets to stabilize GoU budget execution going forward. || +| e) | Budgeting for Non-Tax Revenue Section 6 of the Budget Execution Circular for the FY 2020/21 provides that all work plans and Budgets for FY2020/21 are prepared and approved using the Program Budgeting System (PBS). All Budgets, irrespective of the source of financing (GoU, NTR/AIA, Donor or LG Revenue), will be migrated and loaded into the Integrated Financial Management System (IFMS) to facilitate Budget Implementation and reporting. According to the approved budget estimates for the FY2020/21, it was projected that a total of UGX.1.590 Tn would be collected as NTR. Review of the Performance Budgeting System(PBS) tool used by the Government and IFMS records revealed that that NTR Budgets for the respective MDAs were neither uploaded on PBS nor IFMS. The budgeting tool only had details regarding expenditure, and no revenue was included. I further noted that several Accounting Officers disowned the figures incorporated in the NTR Estimates book, indicating that they had not been consulted in arriving at the estimates incorporated therein. As a result, I was unable to compare respective entity budget figures with the URA NTR collections that totalled to UGX.1.605Tn. The absence of revenue estimates for each entity undermines transparency, affects motivation of staff, and hampers performance assessment. Management responded that for the budget of FY 2022/23, | I advised the PSST to ensure that all Ministries, Departments and Agencies budget for the Non-Tax Revenue and have the details provided in the IFMS and the PBS. | + + +9 + +--- + +| SN | Finding | Recommendation | +|---|---|---| +| respective MDAs had been requested to submit their NTR estimates which will be uploaded and reflected on the PBS as had been done in the NTR estimates booklets. PBS has been upgraded to include the NTR budgets for Votes. The approved estimates will also be uploaded on the IFMS for follow up on monthly performance reports. || +| f) | Quantification of activities and Implementation of planned outputs Section 13 (15, b) of the PFMA 2015 states that a policy statement submitted by a vote shall contain the annual and three months’ work plans, outputs, targets and performance indicators of the work plans. Regulation 11 (3) of PFMR 2016 requires that a vote prepares a work plan that indicates the outputs of the vote for the financial year; the indicators to be used to gauge the performance of the outputs and funds allocated to each activity. I sampled 94 entities for purposes of assessing the extent of quantification and implementation of planned outputs I noted that out of the 1,681 outputs worth UGX.9.8tn sampled for review, 1,151 outputs (68.5%) worth UGX.6.8tn were fully quantified, 307 outputs (18.3%) worth UGX.2.1tn were partially quantified while 223 out puts (13.2%) worth UGX.902Bn were not quantified at all. Out of a total of 1,151 quantified out-puts worth UGX.6.8tn assessed, 465 (40.4%) output worth UGX.2.5tn were fully implemented, 592 outputs (51.4%) worth UGX.4.1tn were partially implemented, while 94 (8.2%) out-puts worth UGX.146bn were not implemented at all. The graph below shows the extent of implementation; Failure to fully quantify the planned activities makes the assessment of implementation difficult. The Accounting Officers indicated that the outbreak of the Covid-19 Pandemic affected the implementation of the 2019/2020 budget, especially activities in the last half of the financial year. | I advised the PSST to follow up the matter with the Accounting Officers of the various MDAs to ensure that there is full quantification of activities and outputs. | +| g) | Existence of Strategic plans that are aligned to NDP-III Paragraph 5 of the budget execution circular for the financial year 2020/2021 cites poor alignment of Government Budgets with the National Development Plans. The PS/ST urged Accounting Officers to ensure that all activities for Financial Year 2020/2021 are aligned with NDP III and implemented accordingly. Regulation 26 (1) of the National Planning Authority (development of Plans) regulations require entities to submit to NPA their five-year development plans for certification before approval. This being the first year of implementation of the NDP-III, MDAs were expected to prepare strategic plans aligned to NDP III and ensure that these plans are certified by NPA before approval. These plans would then be the basis for preparation of the entity annual | I advised the PSST to follow up the matter with NPA and ensure that the entities have strategic plans that are aligned to NDP- III and certified by NPA. | + + +10 + +--- + +| SN | Finding | Recommendation | +|---|---|---| +| plans. From the procedures undertaken I noted that out of 94 entities sampled, 75 were supposed to prepare strategic plans that were aligned to NDPII. However, out of 75 only 25 (33%) had their strategic plans certified by NPA. The balance of 50 representing 67% were not certified by NPA. There is a risk that activities implemented by these entities during the financial year 2020/2021 were not aligned to the NDP-III which negatively affects the achievement of NDP-III objectives. || +| h) | Off Budget Financing/Receipts Section 43 (1) of the PFMA 2015 states that all expenditure incurred by the government on externally financed projects in a financial year shall be appropriated by parliament. Paragraph 29 of the Budget Execution Circular for the Financial year states that if an external agency provides funds in the course of implementation of the budget or any funds remain unspent at the expiry of an appropriation, these must be declared and a supplementary issued in line with the Public Finance Management Act 2015. I noted that 30 entities received off-budget financing to a tune of UGX.627.124Bn, which was never declared to the PS/ST and was also not appropriated by Parliament. As such, no supplementary appropriation was issued as guided by the PS/ST. These funds were received directly from development partners for undertaking activities not budgeted for. Off-budget financing distorts planning, may result in duplication of activities, contrary to Section 43(1) of the PFMA 2015 and the budget execution guidelines. The Accounting Officers explained that this was due to limitations of the PBS system which has no provision for inputting such receipts and in some cases funds are received during the year which were not expected at the time of planning. | I advised the Accounting Officers to comply with the law and guidance given by the PSST and ensure that in future, all funds received outside the approved budget are appropriated by way of a supplementary. | + + +2.1.2. COVID 19 expenditure + +The emergence of the Global Covid-19 pandemic presented a social and economic threat to many countries in the world, including Uganda. In response, the Government of Uganda developed and instituted several interventions to control and avert the effects of the pandemic on the economic and social wellbeing of its citizens. The interventions included instituting a total lockdown, closure of airports, restriction of cross boarder movements, and increased surveillance among others which in turn necessitated additional funding. Mobilisation of revenue was also negatively affected due to low economic activity. + +In addition to the local revenue raised by the Government to support the budget, Government proceeded to secure additional funding to facilitate the efforts and interventions + +11 + +--- + +being undertaken to manage and control COVID-19 and its effects on the economy and the society in general. + +In a letter dated 09th August 2021, the PSST advised me that the total amount released for COVID expenditure in the FY 2020/21 was UGX.2,371Bn of which a total of UGX.677Bn was disbursed for the settlement of domestic arrears. + +During the audit, I designed and performed procedures that I considered appropriate under the circumstances to enable me to gather evidence to address the specific objectives listed below; + +i) Confirm whether the funds received by Treasury were dully appropriated by parliament. + +### ii) + +Establish whether funds appropriated and allocated were received by the different votes + +### iii) + +Establish whether the appropriated funds were utilised for the purpose for which they were approved. + +### iv) + +Assess the existence and effectiveness of internal control systems. + +### v) + +Assess the extent of achievement of planned output by the different entities +vi) Establish whether all funds disbursed were properly accounted for and value for money was attained. + +### vii) + +Make appropriate recommendations to strengthen accountability and transparency. + +From the procedures undertaken the following summarised key findings were noted, the detailed report was issued separately as the COVID 19 thematic report; + +Summary of key findings + +- USD 345million received by GoU in respect of support to Bank of Uganda for Balance of Payment was confirmed received and banked intact in Citi bank New York to enhance + + + +## the Country’s foreign reserves. + +- A total of UGX 676Bn was allocated and disbursed to various MDAs to settle domestic arrears with a view of improving liquidity within the local business community. I noted that 90% of funds used appropriately for the intended puropose; however, I noted diversion of funds to pay for unrelated expenditure worth UGX 4.897Bn (0.7%), unsupported domestic arrears of UGX 27.38Bn(4%), and Payment for contested/rejected domestic arrears of UGX.1.245Bn(0.2%). I also noted that UGX 33.8Bn (5%) was used to settle international obligations thus did not contribute to the stated objective since the funds were externalised. + + + +- UGX 260Bn allocated for the Emyooga programme was disbursed to Microfinance Support Centre with a goal of transforming household incomes by increasing employment opportunities and access to financial services to the rural areas. Audit confirmed that UGX 219.40Bn (84%) had so far been disbursed to 6,326 EMYOOGA SACCOs. It was, however, noted that the SACCOs were in the process of obtaining operational licenses; no MoUs had been entered into between the disbursing entity and the beneficiary SACCOs; UGX.34,716,666,049 (1.3%), though disbursed, remained un- accessed by the beneficiary SACCO. + + + +12 + +--- + +- A total of UGX.56.8Bn was disbursed to MSc to increase the funds available for on- lending to different businesses. I noted that MSc lacked capacity at zonal offices to appraise loans which was also manifested in the unbalanced approach for loan appraisals. A total of UGX 13b (23%) was disbursed to applicants without MSC finalising the perfection of securities for the collaterals. UGX.2.5Bn (4%) was irregularly advanced to applicants contrary to the credit policy. A total of UGX 3.149Bn (6%) was advanced to applicants with no collateral. + + + + + +- A total of UGX.31.033Bn was disbursed to the Ministry of Science Technology and innovation to support 23 selected projects of scientists and innovators engaged in CoVID-I9 scientific research, including the procurement of specialized machinery and equipment, development of vaccines, drug diagnostics, and other operational costs. The funds were divided into UGX.15.787Bn for purchase of Equipment and UGX.15.245Bn for Operational Costs. An MOU was entered with Presidential Scientific Initiative on Epidemics (PRESIDE) to provide technical and administrative oversight at an operational level. It was noted that most projects were progressing well. It was also noted that due to the general weaknesses identified, there was a need to provide more guidance to the beneficiaries on how to account for Government funds. + + + +- Out of UGX 558.68Bn appropriated, 531.8Bn was disbursed to Uganda Development Bank for recapitalization, leaving UGX 26.87Bn unremitted by the Ministry of Finance and Economic Development. From the amount disbursed, funds worth UGX 234bn had been paid out to various beneficiaries; by the time of the audit, the balance of UGX 292.66Bn was still deposited in commercial banks. +- Of the amounts paid out, UGX95bn was sent to financial institutions and SACCOs following MoUs entered into by UDB and the financial Institutions, for the latter to on lend to stated beneficiaries. + + + +- Euros 1,602,370 (equivalent to UGX.7,136,910,000) received by UDBL from the European Union for the Tourism Sector. As at 10 th June 2021, 25 applications worth UGX 9.55 Bn had been approved, and grant disbursements worth UGX 4.34 Bn. had been processed to 14 projects. + + + +- Furthermore, the Ministry of Finance and Economic Development disbursed UGX.126.9Bn to Uganda Development Corporation, to finance projects aimed at supporting the private sector to avert the effects of Covid-19. I noted that the capitalisation grants to UDC are assigned to specific projects thereby nullifying the internal appraisal processes of UDC. 54% of the funds remained unutilised as the projects were not ready for investment. + + + +- UGX 253.59bn was released and received by the Ministry of Health. MoH used the money to procure medical supplies, 282 motor vehicles, pay allowances to medical workers, masks, intensive care equipment and build modular houses at 6 border points. All the planned activities were undertaken amidst many challenges. I noted a diversion of funds totalling UGX 7.98Bn. Though funds were paid for the acquisition of vaccines, there were delays in the delivery of the vaccines due to the global demand. There was a delay in the installation of intensive care equipment in Gulu, Mbarara, Bombo, and Lacor hospitals due to building inadequacies. + + + +- Whereas medical workers requested to be given UGX.150,000 per day as risk allowance, this was not possible and they were instead paid UGX.80,000 per day. They made a + +13 + +--- + +request to parliament to have this amount exempted from taxes, but the issue was never resolved. In the meantime, UGX.2.2Bn meant for PAYE was not deducted from the allowances paid to medical workers in the period under review. + +Key Recommendations + +- Management should ensure that compensating controls are put in place in times where conventional controls cannot be implemented. +- Sensitisation of private individuals and organisations to whom public resources are entrusted should be done prior to disbursement of the funds. +- The PS/ST should clearly communicate the intentions of given initiatives before funds are disbursed to implementing agencies to avoid a mismatch between the intended objectives and actual outputs. +- Government entities and projects should be assessed for capacity to implement given tasks before funds are disbursed to them. + + + +## 2.1.3. + +Compensations/Acquisition of Right of Way for Selected Transmission Lines Projects + +The Government, through the Ministry of Energy and Minerals Development, is responsible for provision of policy guidance in the development and exploitation of the energy resources, creation of an enabling environment to attract investment, and provision and utilization of energy resources. + +Currently, UETCL’s network consists of 2,989.2Km of high voltage lines distributed as; 1,008km of 220kv, 1,946km of 132kv and 35km of 66kv , with 25 substations with a total transformation capacity of 2829.5 MVA. However, this is still low, given that Uganda still has one of the lowest per capita electricity consumption in the world with 215 KWh per capita per year, given that the Sub-Saharan Africa’s average is 552Kwh 2 . + +Government has spent significant amounts in compensation of Projected Affected Persons. In a period of 5 years, financial years between 2016/17 to 2019/20, a total of UGX.564.57Bn has been spent in compensations of PAPs. + +The delays in undertaking the construction of the transmission lines has been largely attributed to inadequacies in the compensation of Project Affected Persons. The challenges + +## faced in “Acquisition of the Right of Way (ROW)” have led to delayed implementation of a + +number of projects in the Energy Sector. + +Owing to concerns over the progress of the implementation of the transmission + +# infrastructure under UETCL, the Office of the Auditor General undertook an audit on the + +compensation of PAPs under selected transmission line projects. The overall objective of the audit was to ascertain whether the compensation process of the Project Affected Persons (PAPs) was implemented in accordance with the Compensation Guidelines and other Government Legal Frameworks to enable efficient and effective service delivery. + +The scope of the audit included the Grid Extension and Reinforcement Project (GERP) and the Mputa Transmission lines. The following are the summary of the key findings and recommendations made, and the details are in the thematic report on compensations; + +2 Uganda energy situation-energypedia. +14 + +--- + +Summary of Key Findings: + +- 56% of the PAPs for GERP and Mputa projects were not properly identified, and this resulted in a mismatch between the number of PAPs appearing on the payment files and the survey reports and Valuation Reports prepared by the Chief Government Valuer. + + + + + +- The valuation process was marred with a number of irregularities, which included; the use of un-updated district compensation rates; and unverified legal interests in the land; resulting in unnecessary revaluations and ligation which in turn delayed the RAP processes, thus affecting timely project completion. + + + +- The budgeting, disbursement, and absorption of compensation funds were not properly + +# managed. There are seemingly budget slacks. Although the Survey and Valuation + +Reports are supposed to guide the budgeting for compensations, management prepared budget estimates which were not supported, this resulted in over budgeting to the tune of UGX.111.3Bn. + +- I noted that of the released compensation amount of UGX.21.5Bn for both GERP and Mputa Projects, only UGX.5.86Bn (27%) was paid to PAPs, thus resulting in unspent funds to the tune of UGX.15.64Bn (73%). This mostly affected the GERP Project which had UGX.13.17Bn not utilized, while Mputa had UGX.1.66Bn. + + + +- I also noted significant delays in compensation of PAPs. 1,109 PAPs (52.2%) for Mputa and 821 (35%) for the GERP Transmission Line remained unpaid by the time of concluding the audit (November, 2021). This was mainly caused by outstanding + + + +# grievances whereby 52% and 15% of the grievances remained unresolved for GERP and + +Mputa Projects, respectively. Relatedly, Compensations in kind also delayed whereby out of 149 PAPs identified, only 93 were resettled, leaving 56 PAPs not resettled. + + + +- I noted a number of inadequacies in the construction of the resettlement houses which included; irregular payments to contractors, delayed progress of works, discrepancies in drawing specifications and BOQs, poor materials used for construction, and a number of defects which were not rectified. + +Key Recommendations + +- Management should always ensure that the RAP consultants thoroughly validate the preliminary information obtained during social survey and valuation processes, to enable + + + +# accurate justification of PAPs + +- The District Land Boards should ensure compensation rates are regularly updated and communicated to the CGV, to enable appropriate valuation of the land and properties. +- Management should streamline its RAP processes, including proper identification of PAPs, clear valuation processes, and timely submission of PAP documentation, among others. +- Management should ensure proper supervision and monitoring of construction works. + + + +15 + +--- + +Emphasis of Matter + +Without qualifying my opinion, I draw attention to the following matters in the consolidated + +## financial statements that in my judgment are of such importance and fundamental to users’ + +understanding of the financial statements; + +- Government Loans (Borrowings) – UGX 69.6Tn + + + +As disclosed in the statement of financial performance, the government Loans have increased from UGX.56.9Tn, in 2020 to UGX UGX 69.6Tn in 2021 constituting an increase of UGX 12,718Bn (22.4%) increase. This position reflects the country’s increased borrowing to combat the effects of the Covid19 pandemic. + +- Domestic arrears – UGX 4.65Tn + + + +As disclosed in the statement of financial performance, the domestic arrears have increased from UGX.3.83Tn in 2020 to UGX 4.65Tn in 2021 constituting a 21% increase. The amount represents 9% of the revised budget of government of Uganda for the financial year 2020/21. This is an indication of the failed commitment control system. The growth trend appears unsustainable and on the rise. This could also be as a result of approving supplementary budgets with no matching funding. + +The PS/ST explained that government is currently implementing a Domestic Arrears Strategy to clear significant amounts of the verified arrears. + + + +- Contingent Liabilities – UGX 160Tn + +As disclosed in the statement of contingent liabilities, Government contingent liabilities have increased to UGX160Tn up from UGX.11.5Tn reported in the previous year, representing a 1,290% increase. Most of the contigent Liabilities are arising out of court awards and compensations. The trend continues to appear unsustainable in the event that a significant percentage crystallises into liabilities. + + + +- Classified Expenditure – UGX 840.8 Bn + +As disclosed under note 8, a total of UGX 840.8 Bn relates to classified expenditure. In compliance with Section 24 of the Public Finance Management Act, 2015 (Classified Expenditure), this expenditure is to be audited separately and a separate audit report issued. + + + +- Non-Consolidation of Subventions + +It should be noted that this opinion excludes the details of expenditure worth UGX. 955Bn for subventions whose financial statements are not consolidated in the financial statements of the parent votes. Separate opinions were given on the individual financial Statements of the subventions. + +16 + +--- + +Other Matter + +I consider it necessary to communicate the following matters other than those presented or disclosed in the financial statements; + +2.1.4. Tax policy +a) Absence of clear policies to guide the Tax Exemptions and other Investor Incentives + +Audit observed that there is no clear policy guideline for the issuance, management, and monitoring of the different tax benefits and incentives issued by the Government to different individuals. The absence of a clear mechanism and framework exposes the scheme to mismanagement and abuse. + +For example, there were inconsistencies in the grant of tax benefits to the various beneficiaries, and some conflicted with earlier policy decisions that were made by Government. A review of the letter of undertaking/commitment signed by the Minister of Finance relating to an Industrial park establishment revealed that Government was taking over import duty and VAT on all materials and machinery imported by the beneficiary with the exception of steel items. However, a review of the Memorandum of understanding signed by the GoU and an Industrial park company investor revealed that there was no exception relating to steel. + +It was also established that Government had offered a 10 year tax holiday to the steel sector with the aim of promoting the growth of the sector as well as boosting employment. + +In light of the above, there is conflict in policy as presented in the above agreements and commitments. The Government may not achieve the objectives for having granted the 10 year tax holiday for the steel sector. + +It was also noted that there is no mechanism in place for evaluating and or assessing the impact of the benefits granted. I noted 20 beneficiaries whose benefit period has since expired without follow up. + +In the absence of a monitoring framework, Government is not in position to assess the impact of the tax benefits granted to the various beneficiaries. Government is bound to lose revenues that would have accrued if the beneficiaries were effecting payments and this may also cause unfair competition in the market. + +Management indicated that the issue at hand would be solved by the ongoing development and implementation of the tax governance framework. + +The PS/ST is advised to develop a comprehensive framework to guide the identification of beneficiaries/criteria, the nature of benefits to be granted, the duration of the grant and assessment mechanisms. + +17 + +--- + +b) Continued loss of revenue due to Failure by Government to meet contractual obligations + +The Government of Uganda (GOU), through the Ministry of Finance Planning and Economic Development, entered an agreement on 4 th April, 2003 with Oil Refinery company for the development of oil palm industry in Uganda. Under Article 5(7) of the Agreement, GOU was required to pay VAT on the products of the all companies envisaged under the project from the first year of the project activities and ending after a period of eleven (11) years from the year of handing over the 26,500 hectares of land. It was agreed that the company would then refund (subject to clause 3 of article 4) the VAT paid by the Government with interest over a period of eight (8) years in eight equal installments, including accrued interest starting in the twelfth (12 th ) year. + +However, Government has breached the contract by failing to provide the balance of the 10,000 hectares of land as agreed. There is no documentation to show that the Ministry has made any follow-up on this matter. + +## Due to Government’s failure to provide the balance of the required land, the Ministry of + +Finance, Planning and Economic Development has continued to settle all tax obligations on behalf of the Company. In the financial year 2019/20, the Minister wrote off a total of UGX.194Bn in line with the Tax Procedures Code Act (2019), being arrears as at 30 th June 2019 and also a total of UGX.79.8Bn was accumulated in the year under audit in arrears. Under the circumstances, it is apparent that instead of paying for 11 years, Government has so far paid for 17 years and is still continuing while the chances of recovery appear to be slim. + +The continued failure to provide land continues to affect the Uganda Revenue Authority in its revenue collection efforts and also affects Government of Uganda revenue performance. + +Management explained that Government has provided additional Land in Sango Bay bringing the total land provided to 22,500 hectares. The balance of 4,000 hectares is being sought in collaboration with Ministry of Agriculture Animal Industry and Fisheries. Once this is completed, the Company shall start refunding GoU taxes accumulated accordingly. The Ministry has further written to the Attorney General seeking advice on how the agreement can be amended. + +I advised the Accounting Officer to liaise with the responsible agencies and ministries to expeditiously address the land issue. In the meantime, the PS/ST should also follow up with the Attorney General on the possibility of reviewing the terms of the agreement. + +c) Continued build up of Government tax arrears; UGX.212.747Bn + +Article 17 of the 1995 Constitution of the Republic of Uganda (as amended) provides that it is the duty of every Citizen to pay taxes. Article 152(1) provides that no tax shall be imposed except under the authority of an Act of Parliament. The same Article provides that where a law enacted under the provision of the Article empowers any person to waive or vary a tax imposed by that law, that person or authority shall report to parliament periodically on the exercise of those powers as is provided for by the law. + +The tax procedures Code Act (as amended in 2019) provides that the Minister shall pay taxes due and payable by the Government arising from any commitment made by the + +18 + +--- + +Government to pay taxes on behalf of a person, or owing from the Government through the acquisition of goods and services. In addition, Section 40A (2) of the same Act provides that all unpaid taxes by Government as at 30th June 2019 are written off. The Minister was tasked with gazetting the list of all taxes waived under the provision of Section 40A(2). + +In compliance with the provision of the Tax procedure Code Act, the Minister issued a list of beneficiaries of the said tax waivers totalling UGX.809.734Bn. This was gazetted in the Uganda Gazette of 13th March 2020. The write-off in question affected the tax heads and in amounts as summarised in table 4below; + +Table 4: Tax arrears + +| Nature of Tax | Total Amount written off (UGX) | +|---|---| +| Value Added tax (VAT) | 348,986,568,013 | +| Stamp Duty | 8,460,910,000 | +| Pay As You Earn (PAYE) | 158,293,699,210 | +| Import Duty | 98,569,989,826 | +| Excise Duty | 52,685,114,511 | +| Income Tax | 114,133,374,978 | +| Withholding Tax | 28,604,598,593 | +| Total | 809,734,255,131 | + + +It has however been noted, that one year later, a total of UGX.212.747Bn has already been accumulated at the Ministry of Finance, Planning and Economic Development in tax arrears as 30 th June 2021. The occurrence is a manifestation that a tax write off is not the solution for the issue at hand. The tax arrears build up continues to negatively affect the revenue collection efforts of Uganda Revenue Authority. + +Management responded that the writing off of tax arrears by the minister was consistent with the law, specifically Article 152 (1) of the Constitution and Section 40 of the Tax procedures Code Act. This discretionary power is useful because it addresses strategic circumstances which merit government interventions that were not provided for in the tax acts. Exercise of this discretion by the minister is reported to parliament every end of the quarter. + +I advised the Accounting Officer to review the practice and come up with a lasting solution in respect of companies to which tax incentives and other benefits a granted. + +## 2.1.5. + +Audit of public debt + +## a) Public Debt Portfolio Analysis + +The reported total public debt as at 30 th June, 2021 stood at UGX.69,600 Bn, of which Domestic Debt Stock was UGX.25,288 Bn and the External Debt Stock was valued at UGX.44,312 Bn. This is an increase of UGX.13,429 Bn, equivalent to 23.9% when compared to the debt stock of UGX.56,892 Bn reported as at 30 th June 2020. The table below shows the details; + +19 + +--- + +Table 5: Debt portfolio analysis + +| Financial year ended | Domestic debt (UGX Bn) | Foreign debt (UGX Bn) | Total (UGX Bn) | % change | +|---|---|---|---|---| +| June 21 | 25,288 | 44,312 | 69,600 | 23.90% | +| June 20 | 17,975 | 38,196 | 56,171 | 23.50% | +| June 19 | 15,221 | 30,905 | 46,126 | 11.10% | +| June 18 | 13,059 | 28,386 | 41,445 | 23.60% | +| June 17 | 11,407 | 22,102 | 33,509 || + + +Source: Audited financial statements of Vote 130 + +From the above, I noted that there was a consistent increase in the total debt and from financial year 19/20 to 20/21, there was an increment of UGX. 13,429Bn (23.90%). The net increase in the debt is due to increased borrowing from both the domestic and external sources, with domestic debt accounting for a higher increase. + +Public debt is continuously on the rise, a fact that is attributed to persistent budget deficits (mismatch of government revenue and expenditure), rollover of liquidity papers, new borrowings for various development projects and foreign exchange loss arising from the depreciation of Ugandan Shilling against stronger currencies. The graph below illustrates the trend of public debt stock by type over the past five years; + +Figure 2: The trend of public debt + +#### 80,000 + +#### 70,000 60,000 + +#### 50,000 + +Domestic debt (UGX Bn) + +#### 40,000 + +Foreign debt (UGX Bn) + +#### 30,000 Total (UGX Bn) + +#### 20,000 10,000 + +0 + +#### Jun-17 Jun-18 Jun-19 Jun-20 Jun-21 + +Although government has developed a domestic revenue mobilisation strategy, this appears not to be in harmony with the spending, raising concerns of sustainability. + +Management indicated that revenue Mobilization had recently been affected by reduced economic activity as a result of restrictions imposed to slowdown the spread of COVID 19. COVID 19 has also led to additional expenditure pressures, which necessitated increased borrowing. Going forward, Government will focus on reducing expenditure and increasing revenues in a bid to bridge the fiscal gap and reduce the rate of debt accumulation. These commitments have been clearly spelt out in the Charter for Fiscal Responsibility, which is + +20 + +--- + +awaiting Parliamentary approval. Further to the above, Government is finalising the Public Investment Financing Strategy (PIFS) that will improve alignment of government programmes and projects to suitable financing options. The Strategy will in turn enhance the efforts in resources allocation, utilisation and address issues on debt sustainability. + +I await implementation of the Charter for Fiscal Responsibility. b) Assessment of debt sustainability + +- Debt to GDP Ratio + +Debt to GDP ratios is a measure that compares what a country owes (total debt) and what it + +## produces (manufactures or a service). The ratio reliably indicates a country’s ability to pay + +back its debt. A high debt-to-GDP ratio may make it more difficult for a country to pay both internal and external debts and may lead creditors to seek higher interest rates when lending due to the low credit rating of the country that pushes its lending risk high. + +Though the IMF has recommended 50% as the point of safety, many developed countries have gone up to 200%. However, according to the IMF, the developing countries are more prone to economic shocks and exchange rate risk, thus advising on a 50% threshold. + +## A review of Uganda’s Debt to GDP revealed a 6% increase from 41% last year to 47% in the + +year under review. The graph below illustrates the movement; + +Figure 3: Debt to GDP ratio 160 +140 +120 + +100 + +#### Total Debt(UGX Bn) + +80 + +60 + +#### 40 29.0 31.0 34.0 35.0 + +20 + +- + +#### GDP + +47.0 + +Debt to GDP Ratio 41.0 + +#### Jun 2016 Jun 2017 Jun 2018 Jun 2019 Jun 2020 Jun 2021 + +From the above, it can be seen that though Uganda’s GDP has been increasing over the years since 2013/14, its debt position has also increased. The rate of increase of debt is higher than the rate of increment in the GDP levels, which creates a risk of reaching unsustainable levels in the future. + +## Management attributed the increased debt levels to Government’s ambitious infrastructure + +program under National Development Plans I and II that were particularly focused on the energy (dams and power lines) and transport sectors. In addition, the need to expedite + +21 + +--- + +commercial production of our oil resources has also necessitated the development of infrastructure which will aid the production process. +It was also indicated that the onset of the COVID-19 pandemic had led to a contraction in economic activity and shortfalls in domestic revenue collections while at the same time creating additional spending areas to mitigate the pandemic impact. To maintain debt at sustainable levels, Government had embarked on a fiscal consolidation strategy aimed at accelerating implementation of the Domestic Revenue Mobilisation Strategy and expenditure rationalisation. + +I advised the PSST to consider exploring ways of reducing dependence on debt and expediting the implementation of strategies to enhance revenue generation for the country and/or reducing/rationalising government expenditures. + +- Interest to Total revenue ratio + + + +This benchmark shows the proportion of the domestic revenue that goes into servicing domestic interest costs. Since donor grants are inherently subject to uncertainty, the interest cost of domestic debt is considered in relation to the domestically-raised component of the budget only. Government set the ceiling to be 12.5% in its debt strategy. The table 6 below shows the assessment of the benchmark over the years; + +Table 6: Total revenue ratio + +| Financial year | Total domestic Revenue - UGX | Total Interest - UGX | % of Interest to revenue | Benchmark | +|---|---|---|---|---| +| 2020/21 | 20,199,013,110,066 | 3,118,535,556,062 | 15.4 | < 12.5 | +| 2019/20 | 17,453,981,414,553 | 2,475,531,497,733 | 14.2 | < 12.5 | +| 2018/19 | 17,128,743,726,614 | 2,005,380,900,988 | 11.71 | < 12.5 | +| 2017/18 | 15,219,588,786,381 | 1,937,371,886,367 | 12.73 | < 12.5 | + + +It has been established that the interest to revenue benchmark has been breached as evidenced above. Almost 15% of the revenue being collected is going into servicing interest payments. This is gradually reducing the funds available for funding other critical government expenditures, given that 25% goes to salaries and wages. + +Management indicated that efforts were being made to reduce the interest to revenue ratio by taking steps to reduce the level of domestic borrowing a view to attaining the operational ceiling of 1% of GDP and also working to increase domestic revenues through the operationalization of the Domestic Revenue Mobilization Strategy (DRMS). The implementation of the DRMS had stalled in the last two years due to the pandemic-induced shocks. The DRMS aims to increase to tax to GDP ratio by 0.5 percentage points every year largely through the improvement of revenue administration. + +I advised the PS/ST to implement strategies of reducing the growth of interest expenditures at the same time increasing revenue mobilisation. + + + +- Low Tax to GDP ratio + +Section 2.1 (i) Public Debt and other Financial Liabilities Management Framework for the FY2018/19 to FY2022/23 provides that the Government of Uganda shall work towards 22 + +--- + +## raising its tax-to-GDP ratio to the Sub-Sahara Africa’s (SSA) average of 15.1% as part of Uganda’s Financing Strategy to limit on borrowing. + +## Audit reviewed the Country’s tax collections and its Gross Domestic Product (GDP) and + +noted that from the start of the implementation of the framework in the FY2018/19, Uganda had made an improvement and currently stands at 13%; however, more strides have to be made to make it to 15% and more. Refer to the table 7 below; + +Table 7: Tax to GDP ratio + +| Financial year | GDP at Current Prices (UGX) Billions | TAX collections (UGX) Billions | Tax/GDP | +|---|---|---|---| +| 2020/21 | 147,962 | 18,594 | 13% | +| 2019/20 | 139,689 | 16,042 | 11% | +| 2018/19 | 132,090 | 16,146 | 12% | + + +The continued failure to collect sufficient revenue will imply more borrowing and creates a risk that the Country may not achieve the World Bank Sustainable Development Goals by 2030. + +Management indicated that the Ministry’s tax expenditure analysis revealed that government was losing up to 1 to 2 percentage points of GDP per year, besides the fact that Government of Uganda informal economy is close to 50% of GDP. In addition, a VAT gap analysis carried out discovered a 40% compliance gap. The Ministry is implementing tax administration measures as part of the measures within the Domestic revenue mobilization strategy to improve tax to GDP ratio that include Automation of URA revenue collection systems through EFRIS, Digital Tax Stamps, Enhancement of ICT infrastructure, Installation of scanners at all customers border entry points, Improved Tax payer education, Implementation of a project to improve record-keeping by SMEs for improving compliance. + +Management through URA also committed to ensuring increased tax compliance. + +I advised the PSST to formulate policies that will further enhance domestic revenue mobilization. In the meantime, government should consider limiting its expenditure to within the limits of sustainable financing. + +## c) + +Continued securing of High cost Temporary advance from Bank of Uganda + +Section 36 (3) of the PFMA 2015, stipulates that the Minister of Finance may raise a loan by issuing Government bills, bonds or stock or using any other method the Minister may deem expedient, including a fluctuating overdraft. + +Ministry of Finance, Planning and Economic Development requested for a temporary advance of UGX.2.1 Trillion from Bank of Uganda in line with the Public finance Management Act, 2015. The advance was granted on 1 st October 2020, the Bank of Uganda granted the request based on an average interest rate of the 272 day Treasury bill rate of 9.999%. Government paid an amount of UGX.98,770,218,774 as interest for the temporary advance due to delayed pay back. + +23 + +--- + +The Accounting Officer indicated that the Ministry had embarked on negotiation with the central bank to adjust the interest rate to a fairer benchmark, though this still has to be in line with the Bank of Uganda Act which stipulates use of a market rate. + +I await the outcome of the negotiations. + +## d) + +Absence of Policy to manage Interest rate risk + +A Policy Framework serves as the guiding policy document for institutional development. The Policy Framework translates goals and objectives into attainable targets with outreaching impacts. Audit noted that the Treasury did not have a policy to manage interest rate risk. Without a Policy, there are no streamlined and institutionalized interventions that foster proper safe guards of public resources. + +It was noted that the country continues to engage in the acquisition of debt with floating + +## interest rates from Bilateral countries and Commercial Banks that use the ‘Libor’ and + +‘Eurobor’ interest rates and thus the need for safeguards to be imposed. + +It was further noted that the Government debt management policy on external debt does + +## not give sufficient guidance on the use of instruments such as ‘SWAPs’ in risk management. + +As a result, most products are market-driven which is exposing Government further to new risks. + +I noted that Government entered into a SWAP arrangement with two commercial banks towards the repayment a loan. A review of interest movements on the LIBOR revealed that Government has since made a financial loss of UGX.65,627,696,205 and has not yet benefited from the SWAP agreements with the two banks. + +The Accounting Officer responded that the conclusion of the 15-year Interest Rate Swap transaction in June 2016 was a risk mitigating action against possible increases in US$ LIBOR which was made on the basis of historical US$ LIBOR rates. It could not take into account the ramifications of the CoVID-19 pandemic and the associated interventionist changes in US Monetary policy; as they were not evident in 2016. Current Indications are that restoration of market based interest rates will occur in the near future and hence pointing to the necessity to keep the SWAP in place as insurance against likely future interest rate increases. Government is currently undertaking a midterm review of the Public Debt Management Framework (PDMF) 2018. The proposed measure will therefore be considered and appropriate policy actions will be instituted for the remaining period of the framework and the longer term. + +I advised management is to develop a policy on management of interest rate risk to minimise the exposure. + +e) Failed on-lending scheme + +Government of Uganda has over the years, secured funds for on-lending to various ministries, departments and agencies to undertake various projects. Whereas MDAs signed + +## the on-lent loan agreements, there was an inability by some of the MDA’s to actually re-pay + +## the on-lent loans. It was oserved that only Four(4) out of the Thirteen(13) MDA’s were + +found to be compliant with the repayment of the loans. + +24 + +--- + +It was further noted that; + + + +- There were no criteria in place to assess which MDAs to lend to. +- There was no record of assessment/ feasibility studies undertaken to establish whether the choice of on-lent financing was the best modality to finance the infrastructure projects. +- I noted that Government used non-concessional loans for on-lending, which attracted higher interest rates and shorter grace periods for the loan repayments as compared to the concessional loans which made it very costly. Some MDAs have had challenges with absorption and thus repayment. + +Without a clear policy in place, the above shortcomings will continue to occur. This is causing a strain on government as funds are diverted to pay the loan obligations. + +The Accounting Officer noted the observation and indicated that some of the beneficiary agencies that were not servicing the loans were taking various steps to have the issues resolved including seeking cancellations, write off loans by Government, and conversion of loan into equity among others. + +Government should develop a clear on-lending policy if it continues to use the above option as a channel for funding projects. + +## 2.1.6. + +Management of ICT in government + +a) Failure to rationalize IT investments + +Audit observed that there is massive duplication of IT systems and projects by the different MDAs attributable to implementation of IT initiatives in silos by the different MDAs. This has the effect of resulting into wastage of resources. + +The isolated implementation of ICT initiatives also has the effect of compromising the standard of ICT infrastructure used by Government, which has the effect of compromising service delivery and wasteful expenditure on ICT systems that are not to be used. + +Audit noted that several MDAs have procured several systems with the same functionality, established data centers, server rooms and disaster recovery sites to which the government has spent billions of shillings and the same continue claiming an annual maintenance fee. The major challenges, however, are that due to rapid technological changes, the investments require frequent upgrade infrastructure. + +Audit noted that whereas the ICT strategy gives guidelines on the budgeting and acquisition of ICT systems including the involvement of the Ministry of ICT and NITA in ensuring standardization of systems and prevention of duplication of government systems, the continued individual actions by some MDAs has resulted in uncoordinated budgets and procurements of systems. + +It is important to standardize, streamline and harmonize the budgeting, acquisition, deployment and disposal of IT services in Government to eliminate duplication; enhance information sharing and interoperability of e-government applications. + +25 + +--- + +Management explained that rationalization of IT investments has been an ongoing activity spearheaded by NITAU. This activity resulted in a report which is still under discussion. Despite the desire by NITAU to rationalize IT investments, it is true that some Government Ministries, Departments and other Agencies have continued to procure own systems and Infrastructure. However, with the ongoing discussion, it is expected that rationalization of + +## government’s investments in IT systems will be achieved. + +I advised Government to expedite the ongoing rationalization and also streamline the budgeting and procurement of different ICT systems through seeking concurrence of the Ministry responsible for ICT and NITAU before funds for system acquisition are included in the budgets of MDAs. + +b) Weaknesses in management of recoveries arising out of anti-corruption cases + +Section 10(4) of the Anti-corruption Act, provides that in addition to any other penalty imposed upon conviction on a person order that person to make good the loss occasioned to the property; and the value of the property or damage to the property shall constitute a civil debt from the person to the Government or public body concerned and shall be recoverable from that person. + +A review of decisions from the Anti-corruption Division of the High Court revealed that on several instances, the court has made orders as to refund of proceeds of corrupt practices by persons convicted. The following were observed; + + + +- A sample of the cases reviewed revealed that a total of UGX.24,734,116,888 is outstanding as a result of decisions of the courts for refund of proceeds of corrupt practices but these are not provided for in the consolidated accounts as receivable. + + + +- In my 2019/20 report for the DPP, I also observed that a total of UGX.18,940,206,109 remained uncollected in spite of the setup of a department within the Office of the DPP responsible for enforcing the recovery of compensation orders. + +- The gaps in the collection were partly attributed to the lack of a clear mandate to the DPP, especially in so far as recoveries of compensation would require civil processes which are outside the mandate of the criminal mandate of the Office of the DPP. + + + +- Whereas the mandate of recovery would be a reserve of the Attorney General who is vested with the mandate to litigate civil matters, it was noted that the ODDP has in place a unit for recovery of funds arising out of prosecutions in DPP while IGG also has another. + + + +Failure to enforce the recovery of court orders, denies government the funds that should have been generated and undermine the objective of recovering losses incurred by the government due to corrupt practices. + +It is therefore important that the Government comes up with a regulatory framework that addresses the inadequate legislation on recovery of proceeds of crime, provide for: civil asset recovery, detailed procedures in conviction based recovery, asset management and + +26 + +--- + +disposal, recovery of consequential benefits, and how to apply the recovered proceeds, among others. + +The Accounting Officer responded that the Ministry had initiated consultations with the Office of DPP, IGG and Attorney General for establishment of comprehensive procedures for recovery of proceeds of crime, provide for civil asset recovery, provide for detailed guidelines in conviction based recovery, provide for asset management and disposal, recovery of consequential benefits including application of the recovered proceeds. + +I await the outcome of the consultations. + +## 2.1.7. + +Audit of public investments + +a) Failure to Appraise Projects before funding - UGX.643,434Bn + +Section 3.18 of the Development Committee Guidelines provides that assessment of the project viability shall be measured by the following key indicators including: The Financial Cost Benefit Ratio (CBR), the financial Net Present Value (NPV) and the financial Internal Rate of Return (IRR). + +The guide further requires that all new Projects requiring funding should undergo four levels of approvals before they can be admitted into the Public Investment Plan (PIP). The four levels include; preparing a project concept in line with NDP (II), preparing a Project Profile demonstrating Key results, undertaking a prefeasibility study and undertaking feasibility study. + +Review of the Public Investment Plan for the year ended 30 th /06/2021, revealed that out of a sample of 371 projects, 245 projects (66%) with total Project values of UGX.643,434 Bn did not have feasibility studies undertaken. + +Failure to conduct feasibility studies may lead to the projects failing to achieve the desired project output, duplication or conflicting Government interventions thus causing wasteful expenditure. + +Management committed that going forward all projects will be appraised before inclusion in the PIP. In addition, the DC guidelines were being revised to take into consideration other exceptions, such as social projects, IT solutions among others. + +I await the outcome of the commitment. + +## b) Non-compliance with the 70% Capital Threshold + +Section 2.2: Scope and Institutional arrangements of the Development Committee guidelines requires that Public investments admissible into the PIP shall be limited to public spending to acquire or establish physical assets necessary to facilitate production and delivery of economic, social and administrative services. Interventions that can be undertaken in the recurrent budget shall not be accommodated in the PIP. In this regard, for a project to be admitted into the PIP, its capital component shall account for at least 70% of the total project cost. It further states that interventions that can be undertaken in the recurrent budget shall not be accommodated in the PIP. + +27 + +--- + +Audit reviewed the Public Investment Plan for the year ending 30 th June 2021 and noted that 125 projects in the PIP with total budgets of UGX.4,410Bn did not meet the requirement of 70% capital intervention. The aggregate project expenditure on administrative functions was 75% while the aggregate capital expenditure requirements were only 25% of the entire total budget. I noted that some projects had 100% administrative expenditure. Refer to the table 8 below; + +Table 8 : Noncompliance with the 70% capital threshold + +| No. of projects | Total Budget - UGX | Capital Expenditure - UGX | Administrative expenditure - UGX | % of administrative expenditure | +|---|---|---|---|---| +| 125 | 4,410,809,884 | 1,087,332,424 | 3,323,477,460 | 75% | + + +If this remains unchecked by the development committee, the government runs a risk of spending project funds on recurrent expenditure and thus failing to meet the targets set in + +## the National Development Plan III. + +In addition, it was noted that the Development Committee does not consider software and intellectual properties as assets. This implies that any innovations in the ICT sector will continue to be unfunded, despite their potential to generative substantial returns. + +Management explained that Section 2.2 applies to new projects to be admitted into the PIP and the budget. This requirement is fully adhered to by the DC but as projects continue into execution, recurrent costs can go higher, depending on the requirements between OPEX and CAPEX. The current DC guidelines are currently under review to provide for among others social projects, Grants, software investments and intangible assets, among others. + +I advised the PS/ST to review the guidelines taking into account the project lifecycle and classification of assets to include intangible assets. + +c) Overstay of projects in the PIP - UGX.39,011Bn + +The Public Investment Management Reform Strategy provides that projects are supposed to be delivered on budget and on time in order to achieve the desired goals and objectives. + +Audit observed that in the sample of 371 projects, 342 projects (92.2%) with budgets totalling to UGX.39,011Bn had gone past their planned exit periods, that date as far back as the FY2010/11, with some projects having been extended for more than 12 years. Audit noted that the projects continued to receive DC approval for continued stay on the PIP It was noted that only 40% of the projects in the Public Investment Plan (PIP) were still within their expected time period. + +This was attributed to lack of adequate planning and readiness, delays in procurements, late acquisition of right of way, poor contract management and inadequate capacity to implement and evaluate ongoing projects, and unauthorized change in the scope, among others. + +28 + +--- + +This has caused delays in the completion of key projects, cost overruns and high commitment fees on foreign debt on account of low absorption and failure to complete projects on time. + +Management attributed the overstay to implementation challenges which often lead to extensions in the PIP. Management also informed me that the Ministry had now adopted the resolution not to admit any project into the PIP and budget before completion of all required feasibility studies and ensuring that challenges that often lead to project extensions such as delays in acquisition of right of way, Environmental and Social impact assessment, among others are fulfilled before project commencement. In addition, the Ministry’s leadership had directed that all old projects which continue to face implementation challenges either be cancelled and or renegotiated with the respective funders. + +I advised the PS/ST to devise a mechanism to improve the efficiency with which projects are implemented by ensuring that the causes identified above are addressed. + +d) Under absorption of funds by projects + +According to the approved Budget estimates of the FY2020/21, the Resource Envelope of Financial year 2020/21 approved by Parliament totals UGX.45,493.7Bn of which External Financing consists of Project Support of UGX.9,515.3Bn and General Budget Support + +## UGX.2,906.7Bn. + +Audit obtained and reviewed cash inflows and expenditures of externally funded projects and noted poor absorption/performance of externally funded projects. Out of UGX.9,515.3Bn that was appropriated by Parliament, only UGX.4,516.5Bn (47%) was released. Relatedly, absorption of externally funded projects further declined in the year under audit. Out of the UGX.4,516.5Bn Disbursed for donor-funded projects, only UGX.2,937Bn was spent, representing 65.0% as compared to the 71% observed in the FY2019/20. The table 9 refers to; +Table 9: Absorption of fund + +| External financing Budget (UGX)Bn | Release (UGX) Bn | Expenditure (UGX)Bn | Release Variance (UGX) Bn | Expenditure Variance (UGX) Bn | %of funds not released (UGX) Bn | %of funds not Absorbed (UGX) Bn | +|---|---|---|---|---|---|---| +| 9,515.30 | 4,516.50 | 2,937 | 4,998.80 | 1,579.50 | 53% | 35% | + + +The under absorption of externally funded projects in the FY2020/21 was mainly due to the following; + + + +- Implementation of unready projects, unrealistic conditions precedent to disbursements of funds which constrains decision making during project execution; +- Covid-19 restrictions that affected implementation of projects +- Delayed land acquisition; +- Failure to quantify counterpart funding requirements at the time of project appraisal + +## and; + + + +- Cumbersome procurement processes as well as failure to undertake a comprehensive appraisal of projects. + +Continued underutilization of external financing may lead to an increase in commitment charges and disadvantage other projects that could have utilized those resources efficiently. 29 + +--- + +Management explained that a number of measures have been introduced to improve project absorption as follows; + +## i) + +All projects to have feasibility studies before commencement and entry into the PIP, + +## ii) + +Only sign loan agreements when conditions precedent have been fulfilled. + +## iii) + +All readiness conditions including acquisition of right of way, availability of adequate financing etc. as stipulated in the Project Selection criteria should be met before admission into the PIP and budget, + +## iv) + +Enforce and enhance contract management through adhering to procurement regulations and training of contract managers. + +## v) + +A project management module in the Integrated Bank of Projects has been developed that will flag delay in a milestone and remind project managers on the required steps to facilitate expenditure. + +## vi) + +The Ministry is encouraging that Project management and implementation is undertaken by certified Project Management Professionals (PMP) who have the right skills, professionals and belong to a body that updates management knowledge. In this way project managers will be charged for underperformance which leads to low absorption. + +## vii) + +Training of staff involved in loan and contract negotiations, +viii) +Undertake continuous training of staff in project appraisal, selection, execution, and ex-post evaluation, + +## ix) + +Establish a Project Preparation Fund to support preparation of feasibility studies and provide resources for preliminary activities. + +## x) + +Enforce the use of the Integrated Bank of Projects (IBP) for submission, preparation, execution and ex-post evaluation of projects, + +## xi) + +Adjusting to alternative strategies and approaches for project execution in light of Covid -19 restrictions and protocols e.g. virtual platforms, shifts for workers, embracing mass vaccination among others, + +## xii) + +Fast track approval of the revised PPDA regulations, train staff on timely initiation of procurement processes and execution of contracts, +xiii) Applying sanctions and rewards to efficient and inefficient Accounting Officers, respectively. + +I await the outcome of the above measures. + +## 2.1.8. + +Continued expenditure off the IFMS – UGX. 695,372,792,876 + +The government of Uganda introduced the IFMS with a core objective of ensuring accurate, reliable and complete financial information for Government Ministries, Departments, Agencies and Local Authorities as well as an increase in the transparency of public spending. + +From a sample of ministries, it was observed that several entities which are already on the IFMS system, continue to send huge block figures outside the system after charging expenditure codes on the system; however, the ultimate expenditure cannot be restricted to what was charged. It was also noted that a number of entities post these funds to commercial bank accounts a practice that was stopped many years back. + +30 + +--- + +It was also noted that a number of projects run by the various Ministries, departments and agencies are all spending off the IFMS. Although some of the bank accounts are held at Bank of Uganda, there are challenges of monitoring expenditure. + +Management explained that whereas a significant amount of projects and subventions have been set up on IFMS either directly through being converted into Votes, the remaining subventions and Institutions are undergoing rationalization which will reduce the number of agencies off the IFMS. As explained, GoU is also undertaking a re-implementation of the IFMS which will have all projects aligned to departments under the parent Ministry. + +The Ministry was to progressively set up the remaining agencies and stations as the exercise is ongoing coupled with resource availability to finance the IFMS rollout. + +I advised the PS/ST to ensure that all government expenditure is made on the IFMS and also provide a road map to ensure integration of all projects onto the IFMS. + +Other Information + +The Accounting Officer is responsible for the other information. The other information comprises the statement of responsibilities, a statement from the Hon. Minister of Finance, Planning and Economic Development, a statement from the Secretary to the Treasury, a statement from the Accountant General, and other supplementary information. The other information does not include + +## the financial statements and my auditors’ report thereon. + +My opinion on the financial statements does not cover the other information and I do not express an audit opinion or any form of assurance conclusion thereon. + +In connection with my audit of the financial statements, my responsibility is to read the other information and, in doing so, consider whether the other information is materially consistent with the financial statements or my knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the work I have performed, I conclude that there is a material misstatement of this other information; I am required to report that fact. I have nothing to report in this regard. + +## Responsibilities of Management for the Consolidated Financial Statements + +Under Article 164 of the Constitution of the Republic of Uganda, 1995 (as amended) and Section 45 of the Public Finance Management Act, 2015 (as amended), the Accounting Officers are accountable to Parliament for the funds and resources of the Government of Uganda. + +The Accountant General is appointed as the Accounting Officer and Receiver of Revenue for the Consolidated Fund. The Accountant General is therefore responsible for the preparation of financial statements in accordance with the requirements of the Public Finance Management Act 2015, and the Financial Reporting Guide 2018, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatements, whether due to fraud or error. + +In preparing the financial statements, the Accountant General is responsible for assessing the Government’s ability to continue delivering its mandate, disclosing, as applicable, matters related to affecting the delivery of the mandate of the Government of Uganda, and using the Financial Reporting Guide 2018 unless the Accountant General has a realistic alternative to the contrary. + +31 + +--- + +The Accountant General is responsible for overseeing the Government’s financial reporting process. + +## Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements + +My objectives are to obtain reasonable assurance about whether the consolidated financial statements of government as a whole are free from material misstatement, whether due to fraud or error and to issue an auditor’s report that includes my opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISSAIs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. + +As part of an audit in accordance with ISSAIs, I exercise professional judgment and maintain professional skepticism throughout the audit. I also; + +- Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for my opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. + + + +- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing + + + +## an opinion on the effectiveness of the government’s internal control. + + + +- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. + +##  Conclude on the appropriateness of management’s use of the going concern basis of + +accounting and, based on the audit evidence obtained, whether a material uncertainty exists + +## related to events or conditions that may cast significant doubt on the government’s ability to + +deliver its mandate. If I conclude that a material uncertainty exists, I am required to draw attention in my auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify my opinion. My conclusions are based on the + +## audit evidence obtained up to the date of my auditor’s report. However, future events or + +conditions may cause the government to fail to deliver its mandate. + + + +- Evaluate the overall presentation, structure, and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves a fair presentation. + +I communicate with the Accounting Officer regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that I identify during my audit. + +I also provide the Accounting Officer with a statement that I have complied with relevant ethical requirements regarding independence, and to communicate with him/her all relationships and other + +32 + +--- + +matters that may reasonably be thought to bear on my independence, and where applicable, related safeguards. + +From the matters communicated with the Accounting Officer, I determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. I describe these matters in my auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, I determine that a matter should not be communicated in my report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication. + +Other Reporting Responsibilities + +In accordance with Section 19(1) of the National Audit Act, 2008, I report to you, based on my work described on the audit of the GoU Consolidated Financial Statements that; except for the matters raised in the compliance with legislation section below, and whose effect has been considered in forming my opinion on the GoU consolidated financial statements, the activities, financial transactions and information reflected in the consolidated financial statements that have come to my notice during the audit, are in all material respects, in compliance with the authorities which govern them. + +## Report on the Audit of Compliance with Legislation + +In accordance with Section 19 of the NAA 2008, I have a responsibility to report material findings on the compliance of Government, with specific matters in key legislations. I performed procedures primarily to identify findings but not to gather evidence to express assurance. + +The material findings in respect of the compliance criteria for the applicable subject matters are as follows; + +## 2.1.9. + +Use of prior financial years unspent funds + +Article 154(1)(b) of the 1995 Constitution of the Republic of Uganda (as amended), provides that no monies shall be withdrawn from the Consolidated Fund except where the issue of those monies has been authorised by an Appropriation Act, a Supplementary Appropriation Act or as provided under clause (4) of this article. The Article further provides that no monies shall be withdrawn from any public fund of Uganda other than the Consolidated Fund, unless the issue of those monies has been authorised by law. + +Section 17(3) of the Public Finance Management Act requires Votes which return funds to consolidated fund to revise their annual work plan, procurement plan and recruitment plan to take into account the unexpended money and the Minister responsible for the vote shall submit, as part of the budget for the preceding year, the revised work plan, procurement plan and recruitment plan. + +In the FY 20/21, it was observed that a total of UGX.26,098,586,831 was repaid into the consolidated funds from unspent monies from different votes. The said funds were however consequently utilized by the GOU without any form of appropriation. + +The spending of funds by the GOU without appropriation of the said funds is irregular. + +33 + +--- + +I advised the PSST to always seek supplementary approval from Parliament before using returned funds. + +![](assets_AuditReports%5CConsolidated%20reports%5CAnnual%20Consolidated%20OAG%20audit%20reports%202021/img-46_0.png) + +## John F. S. Muwanga + +AUDITOR GENERAL + +31 st December, 2021 + +34 + +--- + +2.2 REPORT AND OPINION OF THE AUDITOR GENERAL ON THE GOVERNMENT OF + +## UGANDA CONSOLIDATED FINANCIAL STATEMENTS OF THE LOCAL GOVERNMENTS + +FOR THE YEAR ENDED 30 TH JUNE 2021 + +THE RT. HON. SPEAKER OF PARLIAMENT + +## Opinion + +I have audited the accompanying consolidated financial statements of Local Governments, which comprise the Consolidated Statement of Financial Position as at 30 th June 2021, the Consolidated Statement of Financial Performance, the Consolidated Statement of Changes in Equity, the Consolidated Statement of Cash Flows, together with other accompanying Consolidated statements for the year then ended, and notes to the Consolidated financial statements, including a summary of significant accounting policies. + +In my opinion, the consolidated financial statements of Local Governments for the year ended 30 th June, 2021 are prepared in all material respects, in accordance with Section 52(b) of the Public Finance Management Act (PFMA), 2015 (as amended) and the + +## Financial Reporting Guide, 2018. + +Basis for Opinion + +I conducted my audit in accordance with International Standards of Supreme Audit Institutions (ISSAIs). My responsibilities under those standards are further described in the Auditor’s Responsibilities for the audit of the Financial Statements section of my report. I am independent of the Local Governments in accordance with the Constitution of the Republic of Uganda (1995) as amended, the National Audit Act, 2008, the International Organisation of Supreme Audit Institutions (INTOSAI) Code of Ethics, the + +## International Ethics Standards Board for Accountants’ Code of Ethics for Professional + +Accountants (IESBA Code) and other independence requirements applicable to performing audits of Financial Statements in Uganda. I have fulfilled my ethical responsibilities in accordance with the other requirements and the IESBA Code. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion. + +Key Audit Matters + +Key audit matters are those matters that, in my professional judgment, were of most significance in my audit of the consolidated financial statements of the current period. These matters were addressed in the context of my audit of the consolidated financial statements as a whole, and in forming my opinion thereon, and I do not provide a separate opinion on these matters. + +## 2.2.1. + +Payroll management in Local Governments + +Over the years, several reforms have been implemented in payroll management including salary, pension and gratuity payroll management decentralisation. Despite these reforms, challenges have persisted in the management of payroll in the Local Governments (LGs). +As a result, I considered payroll management in Local Governments as a Key Audit Matter and identified crosscutting risks including; unrealistic budgeting for employees and pension costs, under absorption of wage funds, delayed access + +35 + +--- + +to the payroll, over payment of salaries, non-payment of salary and pension arrears, among others. + +The wage and Pension Payrolls of UGX.2,586.47 Bn constituted 46.1% of the overall Local Governments budget for 2020/2021 of UGX.5,615.86 Bn. + +I am aware that the Covid-19 Pandemic continues to significantly affect the implementation of payroll management activities. A number of Local Governments did not carry out planned recruitments resulting into huge unspent balances. + +Consequently, I designed procedures to address the risks in the payroll management in Local Governments. (Detailed findings are provided in individual entity reports) + +Based on the audit procedures performed, I made the following significant audit findings; + +| No Observations |<|<|<|<|<|<| Recommendations | +|---|---|---|---|---|---|---|---| +| a) Payroll management in Local Governments |<|<|<|<|<|<| I advised the | +| Absorption of the released funds for payroll I reviewed funds absorption in 100 LGs and noted an under absorption of UGX79.62Bn. Out of the total receipts of UGX.1,539.37Bn, UGX.1,459.79Bn (94.8%) was absorbed. The unabsorbed balance was subsequently returned to the Consolidated Fund account as shown in the Table below. Table 10: Showing Level of Absorption for Wage, Pension and Gratuity Categ ory Approved Estimates (UGX) Bn Releases (UGX) Bn Expenditure (UGX) Bn Variance (UGX) Bn %age Absorpti on Wage 1,327.65 1,337.68 1,272.10 65.57 95.1 Pensi on/ gratu ity 204.20 201.69 187.63 14.05 93.0 1,531.85 1,539.37 1,459.73 79.62 94.8 Source: OAG analysis The under absorbed funds, denied the use of funds for other deserving service delivery areas. The under absorption was mainly attributed to Covid-19 pandemic and the lockdown, especially in the education sector. There was delayed deployment or non-recruitment of secondary school teachers for seed schools that had been recently constructed under the UgIFT projects. |<|<|<|<|<|<| Accounting Officers to | +|^|<|<|<|<|<|<| liaise with the relevant | +|^|<|<|<|<|<|<| authorities and rollover | +|^|<|<|<|<|<|<| the un-implemented | +|^|<|<|<|<|<|<| activities to the | +|^|<|<|<|<|<|<| subsequent period. | +|^|<|<|<|<|<|<|| +|^|<|<|<|<|<|<|| +|^|<|<|<|<|<|<|^| +|^|<|<|<|<|<|<|^| +|^|<|<|<|<|<|<|^| +|^|<|<|<|<|<|<|^| +|^|<|<|<|<|<|<|^| +|^|<|<|<|<|<|<|^| +|^|<|<|<|<|<|<|^| +|^|<|<|<|<|<|<|^| +|^|<|<|<|<|<|<|^| +|^|<|<|<|<|<|<|^| +|^|<|<|<|<|<|<|^| +|^|<|<|<|<|<|<|^| +|^|<|<|<|<|<|<|^| +|^|<|<|<|<|<|<|^| +|^|<|<|<|<|<|<|^| +|^|<|<|<|<|<|<|^| +|^|<|<|<|<|<|<|^| +|^|<|<|<|<|<|<|^| +|^|<|<|<|<|<|<|^| +|^|<|<|<|<|<|<|^| +| b) Management of Payroll Deductions i) Under/delayed remittance of Deduction Out of a sample of 84 LGs, I noted that whereas UGX 259.65 Bn was deducted from employees’ salaries to be remitted to URA, UCLA/UBA and other beneficiaries, I noted that contrary to I advised the Accounting Officers to ensure that necessary payroll changes are made timely before payments are effected. |<|<|<|<|<|<|<| +|^|<|<|<|<|<|<|<| +|^|<|<|<|<|<|<|<| + + +36 + +--- + +### Paragraph B-a(17) of the Uganda Public Standing Orders, 2010 I further advised the + +there were: + +###  Over remittances of UGX 2.16 Bn and + + + +- Under remittances of UGX 7.33 Bn as shown in table below. + +### Table 11: Showing over and under remittance of deductions + +Over remittance +Under remittance + +Accounting Officers to initiate strategies that ensure timely remittances of payroll deductions and the over remittances should Number of Amount Number of Amount be recovered. +Details Entities with (UGX) Bn Entities with (UGX) +over under Bn +remittance +remittance + +PAYE 13 0.92 65 5.76 UCLA/ +0 +UBA 27 .92 48 1.15 + +LST 33 0.27 41 0.20 + +Others 31 0.50 49 0.22 Total 2.16 7.33 Source: OAG Analysis + +### In addition, 85 LGs (79.4%) out of 107 delayed to remit the funds to UCLA/UBA, contrary to the requirement that payroll deductions are remitted concurrently with salary payments. The extreme + +delays were noted in the districts shown in the table below. + +### Table 12: Average delay in remittance to UCLA + +Vote Number Vote Name +Average Delay (in Days) +564 Amolatar DLG +38 604 Napak dlg +35 623 Nabilatuk dlg +46 610 Buhweju DLG +41 629 Obongi DLG +55 556 Yumbe DLG +35 633 Madi-Okollo DLG +35 572 Oyam DLG +36 Source: OAG Analysis + +### I further noted that 48 LGs (45%) out of 107 delayed to remit the funds to URA, contrary to the requirement that withholding agents remit to URA any tax that has been withheld or that should have + +been withheld within fifteen days after the end of the month in which the payment subject to withholding tax was made by the + +### withholding agent. The extreme delays were noted in Mbarara MC, + +Kaberamaido DLG, Buyende DLG and Buhweju DLG of 8, 9, 8 and 11 months respectively. + +### Delayed/ non remittance of deductions to UCLA/UBA could lead to + +delays in up-dating loan status with the various financial institutions causing un-necessary default charges on employees + +### while delayed remittance of PAYE attracts fines and penalties from the Revenue Authority. It further led to accumulation of arrears + +that had not been paid by 30 th June 2021. + +37 + +--- + +|| The Accounting Officers did not provide satisfactory explanations to justify the over remittances. For the under payments, the Accounting Officers attributed it mainly to suspension of staff salaries due to disciplinary issues, delayed removal of staff from the payroll and delays in resolving issues such as abscondment where payments were withheld. For delays in remittance of deductions, the Accounting Officers attributed it to delays in reconciliation of interface deduction files. || +|---|---|---| +| ii) Un-authorized loans deductions I noted that 48 LGs made unauthorised loans deductions totaling UGX 11.10 Bn. The deductions were from 6,835 employees that lacked letters of consent/ undertaking. I further noted that out of the 48 LGs, 23 LGs (48%) registered 1,916 employees with deductions totaling to UGX 3.77 Bn that did not exist in the Payroll Deduction Management System (PDMS), operated by PCA-Payroll Consults Africa. There is a risk of making deductions from staff that have no loans, which deprives them of their earnings. The inconsistencies in the PDMS undermine the relevance of the system and affect the integrity of the data therein. The Accounting Officers acknowledged the shortcoming and explained that letters of undertaking were being signed although file copies were not being retained for future reference. They further explained that the inconsistencies in the PDMS data were attributed to PCA who largely control and manage the system. | I advised Government through MoPS to ensure that PCA makes the necessary data reconciliation and update the information on the PDMS regarding the deductions. I further advised the Accounting Officers to ensure that all loan applications are backed by letters of undertaking and approved through the PDMS. | +| c) | Access to Payrolls i) Delayed access to salary payroll I noted that 2,178 newly recruited employees in 75 LGs delayed to access payroll, with delays ranging from 1-34 months. I further noted that 407 employees in 17 LGs had not yet accessed the payroll by the close of the financial year. Delayed access to payroll leads to demotivation of the affected staff and accumulation of salary arrears. The Accounting Officers attributed the shortcoming mainly to delayed submission of key personnel documents and data mismatch between IPPS & NIRA. | I advised the Accounting Officers to sensitise the newly recruited employees on the timely submission of the key documents. I further urged the Accounting Officers to ensure timely validation of the newly recruited employees and to liaise with the relevant authorities to improve effectiveness and reliability of the MoPS/NID interface. | +|| ii) Delayed access to pension payroll I noted that 780 pensioners delayed to access the pension payroll, with delays ranging from 1 to 24 months in 83 LGs (78%) out of 107 Local Governments. There were instances of extreme delays in 09 LGs extending over two years to 26 years. I further noted that 146 pensioners in 21 LGs had not yet accessed the pension payroll by the close of the financial year. | I advised the Accounting Officers to liaise with MoPS to initiate strategies of rectifying the inconsistencies with NIRA interface and to cause the beneficiaries | + + +38 + +--- + +|| Delayed access to the pension payroll leads to poor wellbeing of the affected retirees as well as accumulation of pension arrears. The Accounting Officers attributed the shortcoming to mainly mismatch of data between NIRA and IPPS interfaces such as wrong dates of birth, delayed submission of documents and inadequate budget allocation to cater for all retirees hence phased access to the pension payroll. | to submit the essential documents in time. I further advised PS/ST to ensure adequate allocation of pension and gratuity funds. | +|---|---|---| +| d) | Delayed deletion of staff from the salary payroll I noted that in 78 LGs, a total of UGX 1.13 Bn was paid to 635 staff who had either retired, transferred, absconded or died. These were payment for services that were not rendered to the LGs, hence loss of funds to Government. This was mainly attributed to delayed communication from supervisors of the affected staff as well as failure to delete affected staff due to lack of validation on the MoPS/ NID interface. | I advised the Accounting Officers to sensitise all supervisors on when and how to communicate such cases so as to ensure prompt removal of staff from the payroll. I further urged the Accounting Officers to ensure that all staff are validated on the MoPS/ NID interface. I also advised MoPS to automate the deletion of retirees on mandatory grounds. | +| e) | Misclassification of salary, pension and gratuity expenditure UGX 3.60 Bn in 33 LGs was charged on account codes other than those prescribed for salary, pension and gratuity. Misclassification of funds distorts budget performance and monitoring as well as the credibility of the financial statements. The Accounting Officers attributed the misclassification to insufficient budget provisions for pensions and gratuity. I advised the Accounting Officers to liaise with MoFPED to ensure that sufficient budget provisions are made. | I advised the Accounting Officers to ensure that wage, pension and gratuity expenditure is charged on the appropriate codes. | +| f) | Effectiveness and reliability of the IPPS/NID interface I reviewed the effectiveness and reliability of the IPPS/NID staff/pensioner/beneficiaries’ verification interface and made the following observations;  There was in-adequate sensitization and training in the use and navigation of the system  System was not reliable and effective  Operational challenges were encountered, including;  Un-reliable network  Failure to reflect changes in updated staff information  Mismatches of names that take long to be corrected by NIRA  Some information on the NIRA interface is sometimes not visible/available for instance date of birth and the | I advised the Accounting Officers to engage MoPS and NIRA to have trainings conducted as well as resolve the system challenges. | + + +39 + +--- + +photo which delays the verification exercise. + +### The ineffectiveness of the system my affect the integrity of the + +IPPS payroll. + +The Accounting Officers noted the finding. + +Other Matter +I consider it necessary to communicate the following matters other than those presented or disclosed in the financial statements. + +## 2.2.2. + +Implementation of the approved budget + +A review of the Local Governments approved budgets of UGX 5,615.86Bn out of which UGX 4,328.01 Bn was warranted/ availed by the end of the financial year. The total expenditure for the year was UGX 4,147.90 Bn out of which UGX 2,853.55Bn was spent on employee costs and transfers to other units implying that only UGX.1,294.35 Bn was available for implementation of service delivery outputs. + +From the procedures undertaken, I noted the following significant observations + +| No | Observations | Recommendations | +|---|---|---| +| 1.0 | Existence of Strategic plans that are aligned to NDP-III Paragraph 5 of the budget execution circular for the financial year 2020/2021 cites poor alignment of Government Budgets with the National Development Plans. The PS/ST urged Accounting Officers to ensure that all activities for Financial Year 2020/2021 are aligned with NDP III and implemented accordingly. Regulation 26 (1) of the National Planning Authority (development of Plans) regulations require entities to submit to NPA their five-year development plans for certification before approval. This being the first year of implementation of the NDP-III, LGs were expected to prepare a strategic plan aligned to NDP III and ensure that these plans are certified by NPA. These plans would then be the basis for preparation of the entity annual plans. From the procedures undertaken I noted that out of 86 entities sampled, none had prepared a strategic plan that was aligned to NDP-III and certified by NPA. There is a risk that activities implemented by these entities during the financial year 2020/2021 were not aligned to the NDP-III which negatively affects the achievement of NDP-III objectives. | I advised the Accounting Officers to follow up the matter with NPA and ensure that the entities have strategic plans that are aligned to NDP-III and certified by NPA. | + + +40 + +--- + +| 2.1 | a) Absorption of released funds Out of the total receipts for the financial year of UGX 4,328.01 Bn, UGX 4,147.90 Bn (95.8%) was spent by the Local Governments resulting in an unspent balance of UGX 180.11 Bn (4.2%). The unspent balance at the end of the financial year was remitted back to the consolidated fund account. Under absorption of released funds results in non- implementation of planned activities and negates the purpose for which funds were disbursed, thereby affecting the achievement of the objectives in the NDPIII. For example, implementation of USMID projects in Municipal Councils and UgIFT projects in DLGs was not undertaken. The Accounting Officers attributed failure to utilise funds to COVID-19 which affected the recruitment exercise, late release of USMID funds and delays in the procurement process and lotting policy of contract works under UgIFT. | I advised the Accounting Officer to liaise with line Ministries to revote the funds, roll over the activities and ensure they are subsequently implemented. | +|---|---|---| +|| b) Revenue Performance i) Local Revenue performance The local governments budgeted to receive UGX 217.38 Bn (revised) as total revenue for the year. However, only UGX 96.28 Bn representing 44.29% of their revised budgets was received performance. Under collection of local revenue results in non- implementation of planned activities which affects service delivery. The Accounting Officers of the respective local government votes attributed the shortfall in local revenue to COVID 19 effects. The Accountant General explained that Government of Uganda (GoU) had provided some interventions including vaccination and funding to revive the economy for activities to resume and stimulate revenue collection. | I await the outcome of the interventions instituted by GoU to stimulate revenue collection. In addition, I urged the respective Accounting Officers to make budget revisions based on realistic forecasts in such unforeseen circumstances. | +|| ii) Revenue from External financing The Local Governments budgeted to receive UGX 413.94 Bn as external/donor financing, out of which UGX 57 Bn (13.8%), was received Revenue shortfalls affect the implementation of planned activities. The Accounting Officer attributed this to the fact that the Local governments did not receive indicative planning figures from the donors for proper and realistic budgeting for the Financial Year under review. || + + +41 + +--- + +iii) Off Budget Financing/Receipts +I advise Government through the Ministry of Section 43 (1) of the PFMA 2015 states that all expenditure Finance to negotiate incurred by the government on externally financed projects and mainstream Donor in a financial year shall be appropriated by parliament. funding in the Local Paragraph 29 of the Budget Execution Circular for the Governments Budgeting Financial year states that if an external agency provides Process. +funds in the course of implementation of the budget or any +funds remain unspent at the expiry of an appropriation, +these must be declared and a supplementary issued in line +with the Public Finance Management Act 2015. + +I noted that 17 of the 86 LGs sampled received off-budget financing to a tune of UGX 14.20 Bn, which was never declared to the PS/ST and was also not appropriated by parliament. As such, no supplementary appropriation was issued as guided by the PS/ST. These funds were received directly from development partners for undertaking activities not budgeted for. Off-budget financing distorts planning, may result in duplication of activities, contrary to Section 43(1) of the PFMA 2015 and the budget execution guidelines issued by the PS/ST. + +The Accounting Officers explained this was due to limitations of the PBS system which has no provision for inputting such receipts and in some cases funds are received during the year which were not expected at the time of planning. + +42 + +--- + +|| iv) Quantification of activities and Implementation of planned outputs Section 13 (15, b) of the PFMA 2015 states that a policy statement submitted by a vote shall contain the annual and three months’ work plans, outputs, targets and performance indicators of the work plans. Regulation 11 (3) of PFMR 2016 requires that a vote prepares a work plan that indicates the outputs of the vote for the financial year; the indicators to be used to gauge the performance of the outputs and funds allocated to each activity. I sampled 86 entities for purposes assessing the extent of quantification and implementation of planned outputs I noted that out of the 850 outputs worth UGX 254 Bn sampled for review, 675 outputs (79%) worth UGX 182 Bn were fully quantified, 58 outputs (7%) worth UGX 34 Bn were partially quantified while 117 out puts (14%) worth UGX 38 Bn were not quantified at all. Out of a total of 675 quantified out-puts worth UGX.182 Bn assessed, 475 (70.4%) output worth UGX 90.10 Bn were fully implemented, 172 outputs (25.5%) worth UGX 86.70 Bn were partially implemented, while 28 (4%) out-puts worth UGX 4.90 Bn were not implemented at all. The graph below shows the extent of implementation; The Accounting Officers explained that implementation of activities was affected by the restrictions in movement imposed by government to curb the spread of Covid-19 and the fact that staff at the entities were working at 30% staffing levels. Failure to fully quantify the planned activities makes the assessment of implementation difficult while failure to implement planned activities denies citizens services. 70% 26% 4% **Extent of implementation of quantified out- puts** Fully Implemented Partially Implemented Not implemented |<|<| I advised the Accounting Officers to ensure that work plans and budgets are fully quantified and ensure that un-implemented activities are rolled over to the subsequent periods for implementation. | +|---|---|---|---|---| +|^|^|<|<|^| +|^|^|<|<|^| + + +43 + +--- + +#### 2.2.3. Operationalization of New Cities + +During the FY 2019/20 Government made a pronouncement upgrading ten (10) Municipal Councils (MCs) to City status effective 1 st July 2020. These include; Arua, Mbarara, Gulu, Jinja Fort portal, Mbale, Masaka, Soroti, Hoima and Lira + +During my audit of the above cities for the F/Year 2020/21, I noted the following; + +i) Government did not provide funding in the budgets of the newly created entities to enable them operate as cities. I noted that they continued to operate using the budgets of MCs. +ii) The High Court in Masaka was petitioned by some individuals to review the guidelines issued by the Minister of Local Governments for the new cities on grounds that they contravened the procedures set out in the Local Government Act. +iii) The cities lacked establishment structures against which the recruitment of the required human resource could be undertaken. +iv) There was no guidance on the allocation/sharing of assets. This has become a contentious matter between the councils of the newly created cities and those of the hosting districts. + +As a result of the above, the high expectations of both the local political leadership and the general public have not been met. + +I advise Government to ensure that the new cities are fully operationalised. + +#### 2.2.4. Capitation Grant for Printing of Home Study Materials + +The Government through MoES released UGX 23 Bn for printing of home study materials to facilitate home learning during the COVID 19 lockdown. + +However, I noted that the study materials were not procured and the districts were advised to send the money to the school bank accounts with a condition that they should not spend until instructed to do so. + +At the time of writing this report, the home study materials had not been printed + +## and the funds were either used or lying idle on the schools’ bank accounts. + +Consequently, the objective of ensuring that learners continued to learn during the lockdown was not achieved. +The Accounting Officers explained that no instructions were given as indicated by the MoES. + +I advise Government through MoES to always provide timely guidance and coordination in such events that require urgent government interventions. + +I also recommend that schools are given guidance on the utilization of the funds. + +44 + +--- + +## 2.2.5. Un-Accounted for Funds + +Section 43(2) of the of the Local Governments Financial and Accounting Regulations, 2007 require administrative advances to council employees to be authorized by the executive and accounted for within a month. + +I noted expenditure of UGX 3.37 Bn paid out for implementation of various activities in the LGs remained unaccounted at year-end as shown below + +Table 11: Entities with unsupported expenditure + +| Sn | Entity | Amount (UGX) Bn | +|---|---|---| +| 1. | ABIM DLG | 1.41 | +| 2. | BUGWERI DLG | 0.25 | +| 3. | BUKEDEA DLG | 0.01 | +| 4. | Hoima MC | 0.06 | +| 5. | Kikuube DLG | 0.07 | +| 6. | Kiryandongo DLG | 0.01 | +| 7. | KOLE DLG | 0.26 | +| 8. | MADI-OKOLLO DLG | 0.05 | +| 9. | MOROTO DLG | 0.03 | +| 10. | MOROTO MC | 1.19 | +| 11. | OYAM DLG | 0.03 | +| 12. | Total | 3.37 | + + +In the circumstances, it was not possible to confirm that the funds were used for the intended purposes. + +I advised the Accounting Officers to ensure that funds are either accounted for or else be recovered from the responsible officers. + +## 2.2.6. + +Irregular payment of Salary and Salary arrears to staff in Apac DLG + +I reviewed the payroll data (IPPS) and the IFMS payments of Apac District Local Government and noted that the district irregularly paid out UGX 0.57 Bn to 25 individuals and to the estate of the deceased staff as salary and salary arrears without any supporting documentation. The amounts were irregularly expended leading to the overstatement of salary expenditure. + +I observed that much as there were no payroll deductions made for Apac Municipal Council, Apac Sub County, Chegere Sub County, Ibuje Sub County and Akokoro Sub County, the district transferred a total UGX 0.06 Bn from the wage provisions to the same entities with no justification. + +An interview with the Human Resource Officer revealed that these payments were not generated by the Human Resource Department. + +The Accounting Officer explained that investigations were going on by CID + +## Headquarters. + +In the meantime, I have instituted a forensic audit on the matter. + +45 + +--- + +## 2.2.7. + +Failure to submit Financial Statements for consolidation + +Section 52(1)(b) of the Public Finance Management Act (PFMA), 2015 requires that the Accountant General shall within three months after the end of each financial year prepare and submit to the Minister and the Auditor General the consolidated annual accounts of the local governments. + +A review of the consolidated financial statements of Local Governments revealed that 3 District Local Governments and 6 Municipal Councils with a total actual expenditure of UGX 163.08 Bn were not submitted for consolidation by the respective Accounting Officers as shown table below: + +Table 12 un-consolidated local governments Sn + +| SN | Entity | Category | Approved/revised Budget(UGX) Bn | Actual Expenditure (UGX) Bn | +|---|---|---|---|---| +| 1 | Arua | DLG | 71.71 | 52.29 | +| 2 | Butaleja | DLG | 31.68 | 29.84 | +| 3 | Bududa | DLG | 25.82 | 24.61 | +| 4 | Arua | MC | 23.50 | 21.85 | +| 5 | Ntungamo | MC | 8.41 | 6.68 | +| 6 | Mityana | MC | 8.38 | 8.10 | +| 7 | Kumi | MC | 6.11 | 5.72 | +| 8 | Ibanda | MC | 11.00 | 10.25 | +| 9 | Nebbi | MC | 6.08 | 3.74 | +| Total |<|| 192.69 | 163.08 | + + +Source: Consolidated financial statements and schedules + +The Accountant General explained that without any justification, the above entities failed to submit the financial statements contrary section 51 of the PFMA, 2015. These accounts were therefore not quality checked for compliance + +## by the Accountant General. + +Failure to include all individual local government votes in the consolidated financial statements means that the consolidated balances of revenue, expenditure, assets and liabilities do not represent the actual Local Government consolidated position. + +I advised the Accountant General to identify and address the specific challenges that prevented the entities from submitting their Financial Statements for consolidation. + +46 + +--- + +## 2.2.8. + +Implementation of UgIFT project activities + +### a) + +Status of completion of projects + +I undertook audit inspections of civil works in 24 Seed Schools and 41 Health Centre IIs located in a sample of 62 Districts and Municipal Councils and noted that 53 projects (80%) had not been completed, 11 projects (17%) had been completed while 01 project (2%) was not implemented. Notably, Amolatar, Oyam, Luwero, Sironko, Kamwenge and Kanungu Districts completed the construction of the seed schools and Health Centres. + +The inspection results are summarised in the table below; Table 13: Status of implementation of UgIFT projects + +| SN. | Sector | Status of implementation | No. of projects | %age Status | Commencement period | +|---|---|---|---|---|---| +| 1 | Education | Completed | 2 | 8.3% | Previous financial year(s) | +|^|^| Completed and handed over | 1 | 4.2% | Previous financial year(s) | +|^|^| Incomplete | 20 | 83.3% | Previous financial year(s) | +|^||| 1 | 4.2% | 2020/2021 | +|^| Subtotal |<| 24 | 100% || +| 2 | Health | Completed | 3 | 7.3% | Previous financial year(s) | +|^|^|^| 3 | 7.3% | 2020/2021 | +|^|^| Completed and handed over | 1 | 2.4% | Previous financial year(s) | +|^|^|^| 1 | 2.4% | 2020/2021 | +|^|^| Incomplete | 19 | 46 % | Previous financial year(s) | +|^|^|^| 13 | 32% | 2020/2021 | +|^|^| Not implemented | 1 | 2.4% | Not started | +|^| Subtotal |<| 41 | 100% || +| Grand Total |<|<| 65 ||| + + +Source: OAG analysis + +I further noted that out of the 53 incomplete projects, 36projects had exceeded their planned completion dates by an average of 11 months. + +The Accounting Officers attributed the delays in project completion to; + +a) The Covid-19 lockdown measures which limited the movement of materials and labour, +b) The contractors abandoning the sites, +c) Funds not being re-voted to the entities in time, +d) Delayed hybrid procurements, +e) Late release of funds, +f) Poor terrain leading to impassable roads to some projects sites, +g) Low capacity of the contractor in terms of manpower, machinery, and multiple projects. + +Consequently, the projects planned to be completed within the year were not completed, and as such the intended beneficiaries were denied services. + +I advised the Accounting Officers to liaise with the sector Ministries to ensure that the implementation bottlenecks identified above are addressed. + +47 + +--- + +**b)** Land Ownership +The Circular issued by the MoFPED in May 2018 requested all Local Governments to ensure that all Government projects are constructed on land with proof of ownership or a Memorandum of Understanding (MOU) with landowners; + +I observed 4 projects that did not have titles or MOUs for the land on which the seed schools and health centers were constructed as shown in the table below: + +Table 14: UgIFT projects without land titles + +| SN | District/ Municipal Council | Name of project | Contract price (UGX) Bn | Amount spent (UGX) Bn | Status | +|---|---|---|---|---|---| +| 1 | Kamwenge DLG | Construction of Bwizi Seed school | 2.02 | 1.92 | Completed and handed over | +| 2 | Mityana DLG | Upgrade of Busunjju HC II to HC III | 0.66 || Incomplete | +| 3 | Kyotera DLG | Upgrade of Nyangoma HC II to HC III | 0.66 | 0.28 | Incomplete | +| 4 | Moroto DLG | Construction of Rupa Seed secondary school | 1.94 | 1.70 | Incomplete | +| Total |<|<| 5.28 | 3.90 || + + +Source: OAG analysis +Lack of land titles exposes the projects to disputes. + +I advised the Accounting Officers to acquire land titles or MoUs for all the UgIFT projects. + +### c) + +Procurement of ICT equipment, Laboratory kits, and chemical reagents +The guidance on procurement of ICT equipment, science kits, and chemical reagents for seed schools by the Ministry of Education and Sports to all Accounting Officers on 28th August 2020 referenced EPD 192/335/01; which required the procurement to be conducted after successful completion and handover of the facilities. + +I noted that ICT equipment, Science kits and chemicals were procured for seed schools that had not been completed. The equipment were instead being kept in inappropriate storage facilities exposing them to a risk of obsolescence. + +The Accounting Officers pledged to engage the contractors to ensure that construction works on the laboratories are completed. + +I advised the Accounting Officers to ensure that procurements for the equipment are only effected when the construction works have been + +48 + +--- + +completed. I also urged the Accounting Officer to ensure that items are properly stored. + +Other Information + +The Accounting Officer is responsible for the other information. The other information comprises the statement of responsibilities of the Accounting Officer; the commentaries by the Head of Accounts and the Accounting Officer; and other supplementary information. The other information does not include the financial statements and my + +## auditors’ report thereon. My opinion on the financial statements does not cover the + +other information and I do not express an audit opinion or any form of assurance conclusion thereon. + +In connection with my audit of the financial statements, my responsibility is to read the other information and, in doing so, consider whether the other information is materially consistent with the financial statements or my knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the work I have performed, I conclude that there is a material misstatement of this other information; I am required to report that fact. + +I have nothing to report in this regard. +Management Responsibilities for the Financial Statements + +Under Article 164 of the Constitution of the Republic of Uganda, 1995 (as amended) and Section 45 of the Public Finance Management Act, 2015, the Accounting Officer is accountable to Parliament for the funds and resources of the local governments. + +The Accounting Officer is also responsible for the preparation of financial statements in accordance with the requirements of the Public Finance Management Act, 2015 and for such internal control as management determines necessary to enable the preparation of financial statements that are free from material misstatement whether due to fraud or error. + +In preparing the financial statements, the Accounting Officer is responsible for assessing the local government’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting, unless the Accounting Officer has a realistic alternative to the contrary. + +The Accounting Officer is responsible for overseeing the local governments’ financial reporting process. + +## Auditor’s Responsibilities for the Audit of the Financial Statements + +My objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or + +## error and to issue an auditor’s report that includes my opinion. Reasonable assurance is + +a high level of assurance but is not a guarantee that an audit conducted in accordance with ISSAIs will always detect a material misstatement, when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users, taken on the basis of these financial statements. + +49 + +--- + +As part of an audit in accordance with ISSAIs, I exercise professional judgement and maintain professional scepticism throughout the audit. I also; + +- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for my opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. + + + + + +- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the local governments’ internal control. + + + +- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the management. + +##  Conclude on the appropriateness of management’s use of the going concern + +basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the local government’s ability to continue as a going concern. If I conclude that a material uncertainty exists, I am required to draw attention in my auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify my opinion. My conclusions are based on the audit evidence obtained up to the date of my auditor’s report. However, future events or conditions may cause the local government to cease to continue as a going concern. + +- Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. + + + +I communicate with the Accounting Officer regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that I identify during my audit. + +I also provide the Accounting Officer with a statement that I have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on my independence, and where applicable, related safeguards. + +From the matters communicated with the Accounting Officer, I determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. I describe these matters in my auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, I determine that a matter should not be communicated in my report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication. + +50 + +--- + +Other Reporting Responsibilities + +In accordance with Section 19 (1) of the National Audit Act, 2008, I report to you, based on my work described on the audit of Financial Statements, that; except for the matters raised in compliance with legislation section below, and whose effect has been considered in forming my opinion on the financial statements, the activities, financial transactions and information reflected in the financial statements that have come to my notice during the audit, are in all material respects, in compliance with the authorities which govern them. + +## Report on the Audit of Compliance with Legislation + +There were no material findings in respect of the compliance with legislation. + +![](assets_AuditReports%5CConsolidated%20reports%5CAnnual%20Consolidated%20OAG%20audit%20reports%202021/img-63_0.png) + +John F.S. Muwanga AUDITOR GENERAL + +19 th December, 2021 + +51 + +--- + +2.3 +REPORT OF THE AUDITOR GENERAL ON THE CONSOLIDATED SUMMARY STATEMENT OF FINANCIAL PERFORMANCE OF PUBLIC CORPORATIONS AND STATE ENTERPRISES FOR THE YEAR ENDED 30 TH JUNE 2021 + +2.3.1. Review of the Consolidated Summary Statement of Financial Performance of + +## Public Corporations and State Enterprises + +According to Section 3 of the Public Finance Management Act (PFMA), 2015 (as amended); “A Public Corporation means an authority established by an Act of Parliament other than a local Government which receives a contribution from public funds, and any public body which in a financial year receives any income + +## from public funds”. Similarly, “A State Enterprise means a body established + +## under any Act other than the Company’s Act or a local Government council, and + +## a company registered under the company’s Act in which the Government or a + +## state enterprise has controlling interest”. + +In line with the PFMA, 2015, I reviewed the Consolidated Summary Statement of the Financial Performance of Public Corporations and State Enterprises for the year ended 30 th June 2021, and noted the following; + +### a) + +## Completeness of the Consolidated Summary Statement of Performance + +Section 52 (1c) of the Public Finance Management Act (PFMA), 2015 requires the Accountant General, within three months after the end of each financial year, to prepare and submit to the Minister responsible for Finance and the Auditor General the consolidated summary statement of the financial performance of Public Corporations, State Enterprises and Companies where Government has controlling interest. + +I noted that 46 public corporations and state enterprises were supposed to be consolidated in accordance with Section 52 (1c) of the Public Finance Management Act (PFMA), 2015. However, I noted that seven (7) entities were not consolidated in the consolidated summary statement submitted by the Accountant General. + +Furthermore, Government shareholding in twelve (12) Public Corporations and State Enterprises was not disclosed in the consolidated summary statement of performance. This was caused by the absence of a comprehensive register of + +## Public Corporations and State Enterprises. + +In the absence of a complete register of all consolidating public corporations and state enterprises, I was not able to ascertain the completeness of the submitted consolidated summary statement of financial performance of public corporation and state enterprises. + +I advised the Accountant General to establish a comprehensive register of all Public Corporations and State Enterprises with detailed information required for consolidation. + +### b) + +Failure to submit financial statements for consolidation + +52 + +--- + +Section 51(2) of PFMA, 2015 provides that, the Accounting Officer of a public corporation shall, within two months after the end of each financial year, using the format prescribed by the Accountant-General, prepare and submit to the AccountantGeneral, a summary statement of financial performance of the public corporation and give a copy of the summary statement to the Secretary to the + +## Treasury. + +A review of the consolidated summary statement of performance of Public Corporations and State Enterprises revealed that two (2) entities did not submit performance returns to the Accountant General for consolidation as indicated in the table 15 below; + +Table 15: Entities not Consolidated, but Disclosed in summary statement + +| S/N | Enterprise | Government Holding | +|---|---|---| +| 1. | Uganda Air Cargo Corporation | Not ascertained | +| 2. | Uganda Refinery Holding Co | Not ascertained | + + +### c) + +Missing Entities in the consolidated summary statement + +Section 52(1) c of PFMA 2015 as amended requires the Accountant General within three months after the end of each financial year to prepare and submit to the Minister and the Auditor General a consolidated summary statement of the financial performance of public corporations and state enterprises and Companies where Government has a controlling interest. + +I noted that three (3) entities were neither reported nor disclosed in the consolidated summary statement of performance. (Table 16 below refers). + +Table 16: Entities neither reported nor Disclosed in the consolidated summary statement + +| S/N | Enterprise | Remarks | +|---|---|---| +| 1 | Uganda National Oil Company Limited | Not reported in the previous year | +| 2 | Nakivubo War Memorial Stadium | Not reported in the previous year | +| 3 | Uganda Crane Industries Ltd. | Not reported in the previous year | + + +This implies that the consolidated summary statement of financial performance of public corporations and state enterprises does not reflect the accurate status of government ownership and interest and as such I was unable to assess and conclude on their performance. + +I advised the Accountant General to issue comprehensive guidelines in respect of all Public Corporations and state Enterprises to be consolidated to enable assessment of financial performance. + +53 + +--- + +2.4.1 Review of Financial Performance of Public Corporations and State Enterprises + +The Government of Uganda (GoU) owns shares in a number of Public Corporations and State Enterprises. These enterprises, which are independently managed, are supposed to operate efficiently, make profits and pay dividends to Government. Their financial performance is therefore of interest to Government. + +As noted in my previous reports, the Government Consolidated Summary Statement of financial performance of public corporations and State enterprises only reports on; government shareholding, total income, total expenditure, dividends declared, retained earnings, and net worth of entities. However, key performance assessment parameters, such as; profitability, return on assets, liquidity assessment, long-term debt, and interest cover are not reported on. As a result, I computed these ratios using audited financial statements for further analysis of performance of Public Corporations and State Enterprises, where applicable. + +Out of the 46 Public Corporations and State Enterprises, seven (7) entities were not assessed because they had not submitted audited accounts at the time of writing my report. Table 17 below refers; + +Table 17: Entities not assessed + +| S/N | Entity | Government Stake | +|---|---|---| +| 1. | Uganda National Oil Company Limited | 100% | +| 2. | Nakivubo War Memorial Stadium | 100% | +| 3. | National Housing and Construction Company Limited | 51% | +| 4. | Uganda Telecom Limited | Not known | +| 5. | The Micro Finance Support Centre Ltd | 100% | +| 6. | Uganda Seeds Limited | 100% | +| 7. | Uganda Livestock Industry | 100% | + + +From the financial performance analysis undertaken, I noted the following; + +## a) Profitability of Enterprises + +I noted that thirteen (13) out of the twenty-six (26) Public Corporation and State Enterprises analysed made profits/surplus in the year under review, with Uganda Electricity Transmission Company Limited (UETCL), Uganda Electricity Generation Company (UEGCL) and National Water and Sewerage Corporation (NWSC) posting profits of UGX 112Bn, UGX 91.9Bn and UGX 47.8Bn, respectively. Table 18 below refers. + +54 + +--- + +Table 18: Profitability of Public Corporation and State Enterprises + +| No | Entity | Profit After Tax / Surplus for the year (UGX in Bn) |<| Increase/ Decrease | +|---|---|---|---|---| +|^|^| 2020/21 | 2019/20 || +| 1. | Uganda Electricity Transmission Company Limited (UETCL) | 112.00 | 54.02 | 57.97 | +| 2. | Uganda Electricity Generation Company (UEGCL) | 91.93 | 2.80 | 89.14 | +| 3. | National Water and Sewerage Corporation (NWSC) | 47.79 | 27.44 | 20.35 | +| 4. | Kira Motors Corporation | 26.09 || 26.10 | +| 5. | Uganda Development Bank Limited | 22.11 | 10.14 | 11.97 | +| 6. | Housing Finance Bank Limited | 20.69 | 22.50 | (1.80) | +| 7. | Pride Micro Finance (Dec 2020) | 12.69 | 12.79 | (0.98) | +| 8. | Post Bank Uganda Limited (Dec 2020) | 10.07 | 8.38 | 1.69 | +| 9. | Uganda Printing and Publishing Corporation | 6.25 | 4.22 | 2.033 | +| 10. | NEC Luwero | 3.68 | 3.38 | 0.30 | +| 11. | Insurance Training college | 2.42 | 0.015 | 2.42 | +| 12. | Uganda Wildlife Conservation education Centre | 1.44 | 1.74 | (0.30) | +| 13. | Mandela National Stadium | 1.08 | (0.23) | 1.38 | +| 14. | Uganda Property Holdings Limited | 0.85 || 0.85 | +| 15. | Uganda Development Corporation (Group) | 0.63 | (7.32) | 7.95 | +| 16. | NEC UZIMA | 0.15 | 0.26 | (0.12) | +| 17. | Nile Hotel International Limited | 0.08 | 1.24 | (1.16) | +| 18. | Uganda Energy Credit Capitalization Co. Ltd | (0.87) | (0.59) | (0.28) | +| 19. | Kilembe Mines Limited | (0.91) | (2.81) | (1.10) | +| 20. | New Vision Printing and Publishing Company Limited | (7.11) | 2.66 | (9.76) | +| 21. | Uganda Electricity Distribution Company Limited (UEDCL) | (10.90) | (10.12) | (0.78) | +| 22. | Uganda Broadcasting Corporation | (19.32) | (7.62) | (11.71) | +| 23. | Uganda Civil Aviation Authority (UCAA) | (27.50) | (13.74) | (13.78) | +| 24. | Uganda Railways Corporation | (37.78) | (61.39) | 23.60 | +| 25. | Uganda Wildlife Authority (UWA) | (45.05) | 5.54 | (50.59) | +| 26. | Uganda National Airlines Company Limited | (164.60) | (102.45) | (62.12) | + + +The general performance of some of the Public Corporations and State enterprises slightly improved compared to the previous year with companies such as Uganda Electricity Transmission Company Limited (UETCL), Uganda Electricity Generation Company (UEGCL) and National Water and Sewerage Corporation (NWSC) posting more than double the profits of the previous year. This was mainly attributed to government efforts to ease several COVID-19 restrictions, allowing certain businesses to reopen and government intervention of revamping the economy. + +I further noted that entities including Uganda Railways Corporation, Kilembe Mines Limited, Uganda Civil Aviation Authority (UCAA) and Uganda National Airlines Company Limited made losses as at the end of the financial year. However, it should be noted that this is the second year of operation of Uganda National Airlines in a highly competitive industry. + +55 + +--- + +I advised the entities to develop clear strategies to improve operations and adopt efficient financial management practices to lower operating costs and increase revenue generation. Government should also consider recapitalizing the most affected entities to revamp their operations. + +## b) Return on Assets + +## The Return on Assets (ROA) shows the percentage of how a company’s assets are generating revenue. It measures management’s efficiency in using the enterprise’s assets to generate earnings. Although companies that require large + +initial investments will generally have lower return on assets, ROAs below 5% are generally considered inadequate. + +Apart from eleven (11) companies, which include; Uganda Wildlife Conservation education Centre, Uganda Electricity Transmission Company Limited, Kira Motors + +## Corporation, Uganda Printing and Publishing Corporation, Insurance Training + +College, NEC Constructions Construction Works and Engineering Limited, NEC Uzima, NEC Luwero, Insurance Regulatory Authority of Uganda and National Drug Authority which posted a favourable ROA, the rest of the entities where the ratio is applicable, registered a poor performance on ROA of below 5%. + +Table 19: Returns on Assets + +| No. | Entity | Return on Asset (%) |<| +|---|---|---|---| +|^|^| 2019/20 | 2020/21 | +| 1. | Uganda Wildlife Conservation education Centre | 49.9 | 48.1 | +| 2. | Kira Motors Corporation | 41 | 43 | +| 3. | NEC Constructions Construction Works and Engineering Limited | 10.8 | 31 | +| 4. | Uganda Electricity Transmission Company Limited | 26.2 | 26.4 | +| 5. | Uganda Printing and Publishing Corporation | 2.16 | 22.06 | +| 6. | NEC UZIMA | 6.3 | 12.1 | +| 7. | NEC Luwero | 12.5 | 10 | +| 8. | Pride Micro Finance (Dec 2020) | 4 | 3.3 | +| 9. | Uganda Development Bank Limited | 3.16 | 2.91 | +| 10. | Housing Finance Bank Limited | 2.9 | 2.5 | +| 11. | Post Bank Uganda Limited (Dec 2020) | 2.57 | 2.25 | +| 12. | Uganda Development Corporation (Group) | -405.4 | 1.8 | +| 13. | Uganda Post Limited | 1 | 1 | +| 14. | Uganda Electricity Generation Company | 0.69 | 0.79 | +| 15. | Mandela National Stadium | -0.16 | 0.6 | +| 16. | Uganda Property Holdings Limited | 0.4 | 0.33 | +| 17. | National Water and Sewerage Corporation | 1.45 | 0.26 | +| 18. | Nile Hotel International Limited | 0.67 | 0.04 | +| 19. | New Vision Printing and Publishing Company Limited | 5.28 | -0.4 | +| 20. | Uganda Electricity Distribution Company Limited | -0.56 | -0.56 | +| 21. | Uganda Railways Corporation | -1.66 | -1.03 | +| 22. | Uganda Civil Aviation Authority | 0.48 | -2.4 | + + +56 + +--- + +| 23. | Uganda Broadcasting Corporation | -2.5 | -5.88 | +|---|---|---|---| +| 24. | Kilembe Mines Limited | -6.72 | -10 | +| 25. | Uganda National Airlines Company Limited | -12.2 | -13.1 | +| 26. | Uganda Wildlife authority | 6.84 | -21.75 | +| 27. | Soroti Fruits Limited | -1513 | -1590.2 | + + +c) Dividends + +I noted that, only Uganda Property Holdings Limited and Housing Finance Bank Limited proposed a dividend pay-out of, UGX 400,000,000 and UGX 1,495,222,000, respectively, in the year under review, Nile Hotel International Limited, Uganda Development Corporation (Group) and Housing Finance Bank Limited paid out dividends declared for the previous year totalling UGX. + +## 2,269,944,381. + +I further noted that although some companies were making significant amount of profits, they were not paying dividends to Government. + +The enterprises attributed the non-payment of dividends to the loss-making positions and retention of funds to fund planned investments/projects. + +I advised the Accountant General to ensure that profit making enterprises provide a share of government dividend. + +d) Liquidity Assessment + +I analysed the ability of Public Corporations and State enterprises to meet their short-term financial obligations by comparing the current assets and current liabilities using the Current Ratio analysis. Generally, the ratio of Current Assets to Current Liabilities between 1.5 and 2 is desirable, although acceptable current ratios vary between different industries or sectors. + +I noted that eighteen (18) entities were above the ideal threshold, implying that they are able to meet their liabilities as they fall due. three (3) entities had ratios below 1.0 and may have a challenge of paying their obligations as and when they fall due. The table 20 below refers. + +Table 20: Enterprise Liquidity + +| No | Entity | Current Ratio |<| +|---|---|---|---| +|^|^| 2020/21 | 2019/20 | +| 1. | Nile Hotel International Limited | 26.24 | 9.9 | +| 2. | Soroti Fruits Limited | 25.7 | 122.38 | +| 3. | NEC Luwero | 11.9 | 5.1 | +| 4. | NEC AGRO | 11.4 | 2.7 | +| 5. | Uganda Development Corporation (Group) | 9.3 | 4.3 | +| 6. | Uganda Electricity Distribution Company Limited | 6.9 | 7.4 | + + +57 + +--- + +| 7. | Uganda Property Holding | 3.9 | 2.5 | +|---|---|---|---| +| 8. | Uganda National Airlines Company Limited | 2.7 | 6.2 | +| 9. | Uganda Printing and Publishing Corporation | 2.64 | 1.77 | +| 10. | New Vision Printing and Publishing Company Limited | 2.6 | 2.68 | +| 11. | Uganda Railways Corporation | 2.6 | 3.09 | +| 12. | NEC UZIMA | 2.3 | 0.8 | +| 13. | Uganda Electricity Transmission Company Limited | 1.9 | 1.66 | +| 14. | NEC Constructions Construction Works and Engineering Limited | 1.4 | 1.3 | +| 15. | National Water and Sewerage Corporation | 1.37 | 1.18 | +| 16. | Uganda Wildlife Conservation education Centre | 1.3 | 1.12 | +| 17. | Uganda Post Limited | 1.1 | 1.2 | +| 18. | Uganda Wildlife authority | 1.09 | 1.93 | +| 19. | Mandela National Stadium | 0.73 | 0.49 | +| 20. | Kilembe Mines Limited | 0.56 | 1.3 | +| 21. | Uganda Electricity Generation Company | 0.43 | 0.53 | + + +In addition, I noted that the customer deposits in the four banking institutions grew to an average of UGX.344Bn up from UGX.264 Bn in the prior year. Relatedly, the loan to deposit ratio averaged to 66% up from 64% which is still desirable at individual bank rating. The Table 21 below refers; + +Table 21: Liquidity assessment for financial institutions + +|| Institution | Liquidity assessment for banking institutions |<|<|<|<|<|<|<| +|---|---|---|---|---|---|---|---|---|---| +| SN | N Bank | Current ratio |<| CustomerDeposits/loan s |<| Net liquid assets |<| Loan to deposit |<| +| 1. | Housing 1 Finance Bank | 1.45 | 1.44 | 654.1 | 559.8 | 35% | 31% | 84.10% | 98% | +| 2. | Pride 2 Micro Finance | 1.62 | 1.56 | 174.37 | 140.82 | 0 | 0 | 105% | 80% | +| 3. | Post 3 Bank | 1.11 | 1.13 | 0 | 0 | 0 | 0 | 74.50% | 77% | +| 4. | Uganda 4 Development Bank | 6.3 | 4.42 | 547 | 354 | 0 | 0 | 0 | 0 | +|| Total | 10 | 9 | 1375 | 1055 | 35% | 31% | 264% | 255% | +|| Average | 3 | 2 | 344 | 264 | 9% | 8% | 66% | 64% | + + +I further noted that despite the low activity during the COVID-19 period, Loans and advances to customers increased on average from UGX.336Bn to UGX.405Bn in the current year. + +58 + +--- + +Table 22 : Loans and Advances performance + +| SN | Bank | Prior period (UGX- Billions) | Current period (UGX-Billions) | +|---|---|---|---| +| 1 | Housing finance bank | 550.60 | 553.50 | +| 2 | Pride Micro Finance | 171.76 | 183.39 | +| 3 | Postbank | 267.00 | 334.70 | +| 4 | Uganda Development Bank | 354.00 | 547.00 | +|| Average | 335.84 | 404.65 | + + +The performance of the 4 institutions was commendable. e) Interest cover + +I analysed the interest cover of Public Corporations and State enterprises that had taken loans to establish their ability to service the loans through payment of interest. Interest cover looks at how many times a Company’s operating profits exceed its interest payable. A cover of two (2) times and above is usually considered to be safe, depending on the nature of industry. The implication is that a company is most likely to meet its interest payments. + +I noted that of the 3 companies/enterprises which were financing loans, two (2) (NWSC and the Insurance Training College) were better placed to meet their interest obligations, while the New Vision Printing and Publishing Company Limited was not. The Table 23 below refers. + +Table 23 : Enterprises' ability to service loan obligations + +| No. | Entity | Profit Before Interest | Interest (Financing cost) | Interest Cover (No. of times) (2020/21 | Interest Cover (No. of times) (2019/20 | +|---|---|---|---|---|---| +| 1 | National Water and Sewerage Corporation | 18.68 | 6.95 | 2.7 | 28.3 | +| 2 | New Vision Printing and Publishing Company Limited | (0.34) | 0.59 | -0.6 | 28.2 | +| 3 | Insurance Training college | 2.42 | 1.06 | 2.30 | 0.001 | + + +Overall Conclusion/Recommendation + +Whereas government policy to invest in critical sectors of the economy is commendable, it is important to ensure that such investments are operating efficiently and effectively to meet sector objectives. There is need for government to strengthen the supervision and monitoring of these entities. + +Although government efforts to ease several COVID-19 restrictions, allowing certain businesses to reopen improved performance of certain enterprises, the COVID 19 pandemic affected operations of a number of entities, and Government needs to assess its impact on the critical enterprises and corporations and provide the necessary guidance and assistance. + +59 + +--- + +PART 3: SECTORAL AND LOCAL GOVERNMENTS CROSS CUTTING FINDINGS + +This part contains cross cutting key findings noted in the respective sectors and cross cutting service delivery issues in Local Governments. + +#### 3.0. Sectoral Key Findings 3.1. PUBLIC SECTOR MANAGEMENT + +3.1.1. Government readiness to implement the programmatic approach + +Government with effect from 1 st July 2020 started the implementation of NDP III as a successor plan to the NDP II. The overall objective of the NDP III is to increase household income and improving the quality of life of Ugandans. This plan is implemented using the programme approach to planning, budgeting, implementation and results reporting. This programme was also designed to address challenges faced in implementation of prior national development programmes which included uncoordinated planning, weak harmonization, limited sequencing of programmes, and poor linkages between outcomes and outputs. + +I reviewed the readiness of government to effectively implement the NDP III in order to achieve the desired outcomes. From the procedures undertaken, I noted that significant strides have been made towards effective implementation of the plan. + +Areas of commendable performance include; provision of guidelines to entities to facilitate transitioning to programme approach, development of the Programme Implementation Action Plans (PIAPs) for all programmes, development of strategic plans that are aligned to the NDP III by a number of entities in government, operationalization of Programme Working Groups (PWGs) to coordinate programme activities and development of guidelines for the programme working groups. + +Despite these achievements, there are a number of areas that need government attention if the NDP III overall objective is to be achieved. These include; + +a) The shift from sector to programme planning and budgeting requires tracking progress towards attainment of results. This therefore implies that accountability and oversight processes should be re-aligned towards achievement of results as defined in the NDP III framework. This realignment has however not been fully attained. + +## b) + +The shift from sector to programme planning and budgeting also requires a shift of the current government statistical processes to processes that are capable of delivering outcome statistics as defined in the NDP III. The current data systems therefore have to be revised so that they produce results data rather than output data. In addition, surveys and production of key results statistics need to be aligned to the NDP III M&E processes to enable real time capture of data and monitoring of the achievement of programme results. + +## c) + +The shift from sector to programme planning and budgeting also implies that government annual performance reporting will now be based on programmes rather than sectors. The challenge however is that a number of programme + +60 + +--- + +working groups are still struggling to constitute themselves in order to do effective programme reporting which is likely to affect effective coordination and supervision of programme activities. + +d) The shift from sector to programme planning and budgeting also implies that budgets of MDAs and LGs are now developed and approved at programme level although appropriation and spending remain at vote level. However, a number of MDAs are grappling with understanding the new system. + +With 2 years into the implementation of NDP III, a number of MDAs and LGs have not fully transitioned their operations to the new programme based planning and budgeting and this is likely to affect the achievements of the NDP III objectives. + +Government should support the National Planning Authority in capacity building of MDAs and LGs staff such as planners, monitoring and evaluation officers among others to equip them with the necessary skills to track and evaluate the implementation of entity plans in line with the NDP III PIAPs. + +3.1.2. Limited efforts to build the capacity of planning units within Government + +Section 7 (2) (d) provides that in pursuance of its primary planning functions, the Authority shall support local capacity development for national planning and, in particular, provide support and guidance to the national and local bodies responsible for the decentralized planning process. + +I have noted over the years that MDAs and Local Governments face significant challenges in planning, implementing, monitoring and reporting performance due to low capacity of their planning units. I however noted that although the mandate of the Authority provides for supporting the development of local capacity in planning, the Authority had not effectively executed this mandate. No trainings for planners had been undertaken by the Authority in the past three (3) years as a deliberate strategy to build planning capacity both at national and local levels. + +Failure to build planning capacity within the Government implies that there will be persistent challenges in the development, implementation, monitoring and reporting of performance in relation to the approved budgets, which affects service delivery and the credibility of the budgets both at entity and government-wide level. + +The Accounting Officer explained that the Authority developed a National Capacity Enhancement Project for strengthening planning capacity at decentralized level in 2017 however no funds were availed and the activity has persistently remained as an unfunded priority. + +I advised Government to have this critical activity funded, especially with the implementation of the roll out of the new NDP III which has taken effect. + +61 + +--- + +3.2. SECURITY SECTOR + +## 3.2.1. + +Monitoring and Supervision of Government Programmes under Office of the President + +The Office of the President is mandated to follow up implementation of government programmes across the Country. However, the Office has staffing as well as office accommodation challenges which has limited adequate monitoring and supervision of the implementation of the programmes. The Office has a staffing gap of 80 positions of Senior Presidential Advisors, Resident District Commissioners and Deputy Resident District Commissioners. + +In addition to the staffing gap, the RDCs lack enough accommodation. During the year under review, the Office of the President had a deployment of 146 RDCs in Districts and 10 RCCs in newly created cities out of which 107 are renting and 24 lack offices. + +In order to address the above challenge, the Office envisioned an idea of constructing at least 10 RDC offices per annum in a phased approach starting with FY 2008/09. This idea was not fulfilled because government could not fund the capital budget as anticipated. This has necessitated the Office of the President to revert to constructing only one RDC office per annum as the case is currently and renting office space for the rest. Under this approach, the Office will take 107 years to construct offices for all RDCs and spend approximately UGX.445Million on rent annually. + +I have advised Government to ensure that the RDCs and RCCs are recruited and also develop an action plan for construction of offices in a phased manner to minimise the high operation costs. + +3.3. AGRICULTURE SECTOR +3.3.1. Mainstreaming of Agriculture Sector agencies + +Government is still in the process of rationalizing agencies and public expenditure (RAPEX) under the Agricultural Sector which include Cotton Development Organisation, Uganda Coffee Development Authority, Coordinating Office for Control of Trypanosomiasis and Diary Development Authority. These entities have had challenges of attracting staff to undertake activities. The respective Accounting Officers attributed this challenge to the following: + +- Some successful candidates did not take up the job offers because the contract period was limited to only 18 months as recommended by Ministry of Public Service. + + + +- The Ministry of Public Service and Solicitor General guided that recruitment of staff for the agencies affected by rationalization should only be for a period up to June 2023. + + + + + +- The employment contracts should contain a disclaimer clause to the effect that the employment can be terminated any time without recourse. + + + +- There is no guarantee of retention of the workforce. + +The above situation has affected the agencies also in other areas of planning, execution of activities and implementation of the new NDP III strategic plans. + +62 + +--- + +I advised Government to fast-track implementation of the policy with a view of ensuring that the on-going rationalization activities are finalized in the shortest time possible to avoid further disruptions in the operations. + +3.3.2. Over dependence on the Public Private Partnership in the Cotton sector + +Section 5 (i) of the Cotton Development Organisation Act, vests the duty to facilitate cotton production, cotton research and extension through the Ministry responsible for + +## agriculture to CDO. CDO’s mandate is to promote production, monitor marketing and + +processing of cotton and represent all aspects of the cotton subsector. + +Over the last 11 years, the Private Sector (Ginners) under their umbrella body Uganda Ginners and Cotton Exporters Association (UGCEA), have been supporting cotton production activities under the Cotton Production Support Program through a Memorandum of Understanding that is signed annually between CDO and UGCEA. The Program, using funds pooled voluntarily by UGCEA members into the Cotton Development Fund (CDF), supports a variety of activities which aim to assist cotton farmers in Uganda to increase cotton production and productivity through; provision of inputs, farmer mobilization and sensitization, extension services and agricultural mechanization. + +It was noted that UGX.19.649Bn was budgeted to cater for the cotton marketing season 2020/21 out of which, UGX.15.154Bn was budgeted towards provision of planting seed and production inputs. Government was able to contribute only UGX.8.6Bn leaving the balance for the private partner intervention. This is an indication that government is relying more on the ginners to fund the cotton sector. + +Despite the intervention by the private sector, there were shortages in provision of inputs to farmers. From table below, 866 Mt of planting seed, 374.6 Mt of fertilizers and 2,260 spray pumps were not provided as projected in the strategic plan despite the support from the Ginners which directly affected the performance of the sector in achieving the desired cotton production targets. + +### Table 24 : Comparison of consolidated quantities of production inputs + +|| Planting seed | Pesticides | Fertilizers | Spray pumps | Herbicides | +|---|---|---|---|---|---| +| Production inputs needed(Strategic Plan) A | 3,200 Mt | 222,000 liters | 415 Mt | 7,000 | 0 | +| Planned Quantities (MOU- Ginners) B | 2,500Mt | 224,000 liters | 746 Mt | 3,000 | 7,500 liters | +| Actual Quantities provided (Reports) C | 2,334 Mt | 287,102 liters | 40.4 Mt | 4,740 | 6,616 liters | +| Difference A - C | 866 Mt | (65,102) | 374.6 Mt | 2,260 | (6,616) Liters | + + +Source: OAG analysis of CDO Strategic Plan 2020/21-20, MOU, quarterly reports + +63 + +--- + +Dependency on the Private sector for a key production activity such as provision of seed for planting and production inputs, risks the sustainability of the sector and enables the private sector to exercise influence over farmers through paying of low prices for the + +## farmers’ crops. Further, inadequate Government funding limits CDO’s interventions in + +key aspects such as targeted extension services for mobilizing farmers and training them on cotton agronomical practices using demonstration gardens established at village/parish level. + +Management explained that limited government has affected the cotton production in the past 2 years. There was a drop in cotton production from 173,457 bales of lint in FY 2019/20 to 50,709 bales in the year under review largely as a result of heavy rains, meagre funds for procurement and distribution of production inputs as well as provision of extension services. The calamity of drop in the cotton production was brought to the attention of both the Ministry of Agriculture, Animal Industry & Fisheries and the Ministry of Finance, Planning & Economic Development and a request for a supplementary budget of UGX.5 billion was made. + +I advised the Accounting officer to continue liaising with the line Ministry and MoFPED to forge a way forward for the sector. + +3.3.3. Management of Foot and Mouth Disease (FMD) Outbreaks in the Country + +It is the Mandate of MAAIF to regulate and control the prevalence of FMD within the country. Accordingly, Government intervened by procuring FMD vaccines from Kenya Veterinary Vaccines Production Institute (KEVEVAPI) and Botswana Vaccines Institute (BVI) which were distributed to farmers across the country especially in the areas where FMD has been reported previously. + +In June 2021, the country was informed of unprecedented outbreaks of FMD along the cattle corridor. A review of management of the outbreak revealed failure of timely interventions as a result of challenges faced in the procurement of vaccines despite the availability of funds. Furthermore, the following shortcomings were noted; + +a) During the financial year 2019/2020, 700,000 doses of FMD were procured in November 2019, however, only 500,000 (70%) of the consignment was delivered and significantly late by 4 months. + +b) 2,311,000 doses were planned to be procured in 2019/2020 however the supplier failed to deliver despite emergency situation and sensitivity of the disease. + +c) Although the supplier later delivered 1,700,000 doses (52%) during the year 2020/2021, and 2021/2022 financial year, the balance of 611,000 doses (24%) were still outstanding at the time of writing this report. The deliveries have not been made even after several delivery extensions to the supplier. + +The continued presence of the FMD and the inadequate response in terms of vaccine availability has denied Ugandans opportunities to export livestock and livestock products + +## to the international market and significantly curtails the Ministry’s ability to achieve its + +mandate. + +64 + +--- + +I advised the Accounting Officer to effectively and efficiently monitor such disease outbreaks within the Country so as to curb the spread and prevent further loss to the Community. Further, research collaborations with NARO should be enhanced for development of a local intervention. + +#### 3.4. JUSTICE LAW AND ORDER SECTOR + +## 3.4.1. + +Management of cases and Case backlog + +Various stakeholders in the Justice Law and Order Sector (JLOS) have implemented a number of management information systems as indicated in the table 25 below. + +Table 25 : Information Systems within the JLOS Sector + +| SN | Information system | Purpose | Entity | Cost (Bn) | +|---|---|---|---|---| +| 1 | Prosecution Case Management Information System (PROCAMIS) | Record and collect information pertaining to cases, and rapidly transfer case details from law enforcement across the DPP offices. | ODPP | 26.188 | +| 2 | Court Case Administration System (CCAS) | Receiving and allocating cases to different Judicial officers for further management. | Judiciary | No information | +| 3 | The Electronic Court Case Management Information System (ECCMIS) | Manage case records, e-filing. The system tracks all aspects of a case life cycle from initial filing through disposition up to appeal. | Judiciary | 9.277 | +| 4 | Prisoners Management Information System(PMIS) | Recording and classifying of all prisoner related information across all the prisons. | Prisons | 0.501 | +| 5 | Crime Records Management System (CRMS) | Automate all paper based processes of case management. | Uganda Police Force | 0.5 | +| 6 | Suspect profiling systems | Capture profiles of suspects such as bio data, photographs, and thumbprints among other features, to help in quick identification of suspects. | Uganda Police Force | No information | +|| TOTAL ||| 36.466 | + + +Institutions require quick access to accurate, and reliable information in order to function well and promote the objectives of equitable justice for all. In pursuance on the goals of criminal justice, various entities within the sector have acquired computerised information management systems to enable them attain their mandate. + +Although Government has invested a sum of UGX.36.46Bn in four of the systems for the administration of Justice across the JLOS sector, I noted that the systems are stand- alone and decentralized without being integrated to enable information sharing across the sector. + +The lack of systems’ integration inter-linking the various entities such as the Police, Directorate of Prosecution, Judiciary and Prisons implies that the transfer of case details between stakeholders for the quick resolution of cases in the pursuit of Justice cannot be achieved. The absence of shared or integrated management systems may also result in inefficient allocation of resources, higher costs of procurement for IT hardware, network equipment and application software as well as duplications in the nature of service support from the suppliers/vendors of the applications and the hardware. + +65 + +--- + +I also observed that the implementation or setup of some of the systems is still ongoing in various entities. For instance, the Crime Records Management System in Uganda + +## Police, the Prisoner’s Information Management System in the Uganda Prisons, the + +Electronic Court Case Management Information System in Judiciary, the Suspect Profiling System in Uganda Police were still at the pilot testing stage or were yet to be fully rolled out and operationalised across all the regional offices countrywide. + +This may have resulted in the non-optimal use of the information assets held on the systems. + +The JLOS sector should review the existing systems and their functionality vis-à-vis the sector-wide needs with a view of achieving an integrated approach to information management within the sector, in order to avoid the duplication of data, delays in processing cases, and achieving efficiency in resource allocation across the sector so as to attain the goals of criminal justice administration. + +## 3.4.2. + +Operationalisation of the Joint Venture Agreement + +In 2017 the Government of Uganda entered into a Joint Venture Agreement resulting in the formulation of the Uganda Securities Printing Company (USPC) for the exclusive production and supply of all security documents for the Government of Uganda, including National Identity Cards and Birth and Deaths Certificates. This venture had delayed to be operationalised and as a result a number of challenges were identified; + +a) NIRA was expected to order a minimum of 4,500,000 national ID cards annually, starting with the financial year 2020/2021. However, no order was placed for the financial year under review due to lack of budget provisions for this activity. This is a breach of the contract agreement, which may result in the payment of fines for breach of contract. + +b) USPC was yet to supply IT systems and equipment to support the National ID system and the birth and death registration system. The system in use for Identification Information was supplied by M/S Mühlbauer Uganda Limited, whose contract had expired and was not renewed. There is a risk that NIRA will operate without system support from the system vendor of the legacy (existing) system for an unspecified time. + +The Accounting Officer explained that the Authority has been engaging USPC to resolve all the issues relating to the Joint Venture Agreement (JVA) and an Adhoc committee had been put in place comprising of all Permanent secretaries, including the Ministry of Internal Affairs, whose objective is to review the status of implementation of the JVA every quarter. + +I advised Government to design a clear road map and strategy to ensure compliance with the terms of the Joint Venture Agreement, including developing support systems to avoid the stalling of operations of the entity. + +66 + +--- + +## 3.5. INFORMATION COMMUNICATION TECHNOLOGY SECTOR + +#### 3.5.1. Absence of a National IT Governance/Oversight System + +I noted that Government did not have a national IT governance framework that establishes a proper IT governance structure and system. + +The objective of an IT Governance system is to enable Government to; provide for strategic direction for ICT investments; prioritise and ensure strategic alignment of IT and e-government investments across Government; mitigate risks associated with the use and/or investments in ICT such as duplication of IT systems and wasteful expenditure; and optimise the use of ICT and e-government services, among others. + +As a result, there is a lack of strategic insight in IT investments, and the Government may fail to optimise the use of existing ICT infrastructure. In addition, the Country lacks competitiveness in harnessing opportunities in ICT. + +I advised Government to consider establishing a national IT Governance Framework and structure to oversee investments in information and communication technologies. + +## 3.5.2. + +Failure by MDAs to Pay for National Backbone Infrastructure Services + +NITA-U provides NBI/EGI services to MDAs and Local Governments whose ICT budgets have been either consolidated or not consolidated under NITA-U's ICT budget. Currently, fifty-four (54) entities whose ICT budget is consolidated under the ICT sector budget, while the ICT budget for 72 entities are not consolidated. Out of seventy-two (72) entities, only ten (10) entities have honoured their obligations. This has led to the accumulation of domestic arrears totalling UGX.22.96Bn as of 30th June 2021. + +The arrears largely relate to the costs of expanding the national backbone/e- Government infrastructure (NBI/EGI). Notably, domestic arrears accounted for 14% of the annual GoU budget for the Authority, which is not only unsustainable but may lead to difficulties in the provision and extension of e-government services throughout the + +## Country. + +I advised management to liaise with MoFPED in consultation with MDAs to ensure that the ICT budgets are consolidated under the ICT Sector budget. + +#### 3.5.3. Uncollected Revenue from Media Operators + +I noted that UCC stopped invoicing government bodies, namely: Uganda Telecom Limited (in-Administration), Uganda Broadcasting Corporation and Uganda Post Limited, for licensing and other charges. A review of the financial statements of these Government agencies revealed an un-invoiced amount of UGX.50.9 Bn. Management attributed it to the financial distress of these companies and the URA's tax policy of invoicing for VAT based on invoices raised by taxpayers, whether paid or not. + +I noted that UCC did not issue invoices worth UGX.421.9Million to 15 operators (4 television operators and 11 FM broadcasting stations) during the period under review, contrary to its financial regulations. + +67 + +--- + +Relatedly, UCC has not enforced the payment of a 2% gross annual levy on the licensed Television and FM radio operators gazetted in 2017, contrary to Section 68(1) of the UCC Act 2013. Management explained that the operators had appealed to the Minister + +## of Information, Communication Technology & National Guidance. + +I advised management to engage all stakeholders and collect the levies due. + +#### 3.5.4. Lack of a Communications Tribunal + +During the audit, I observed that the Commission does not have a Tribunal contrary to Sections 60(1 & 2) and 64(1) of the Uganda Communications Act, 2013. The tribunal would have jurisdiction to hear and determine all matters relating to communications services arising from decisions made by the Commission or the Minister under this Act. + +In the absence of the tribunal, the Commission lacks jurisdiction to hear and determine matters arising from decisions made by the Commission or the Minister under this Act. Currently, the matters are being heard by the Minister and the Commission, which creates a conflict of interest. + +The Accounting Officer explained that the responsibility to appoint the tribunal does not reside with the Commission and that the tribunal is to be appointed by the President on the recommendation of the Judicial Service Commission, and that the matter had been brought to the attention of the Minister of ICT and National Guidance. + +I advised management and the Board of Directors to liaise with the relevant authorities to constitute the Communications Tribunal. + +68 + +--- + +3.6. ACCOUNTABILITY SECTOR + +## 3.6.1. + +Approval of supplementary funding without matching revenue + +It was established that during the financial year ended 30 th June 2021, supplementary funding totalling UGX.6.13Tn was granted by the Minister of Finance, Planning and Economic Development. It was however, noted that the source of funding for the supplementary expenditure was not clearly shown before approval was granted. + +As a result, the supplementary expenditure was instead financed by internal budget cuts from various votes, thus affecting the implementation of plans/activities by the affected votes. Although the budget was raised from UGX.45.495Tn to UGX.51.625Tn, only UGX.46.6Tn was realised, resulting in unfunded activities worth UGX.4.98Tn. + +#### 3.6.2. Underperformance in Revenue Collection + +I observed that, URA had a total revenue collection target of UGX.22.04Tn for the financial year 2020/21 and collected total gross revenue of UGX.19.65Tn (89%) hence a shortfall of UGX.2.39Tn (11%). Under collection of revenue affects cash flow performance of Government and realisation of the planned service delivery targets. In addition, it may increase the national debt burden as the Country may fail to honour its obligations and borrow more to address revenue shortfalls. Management attributed the performance to the adverse impact of the COVID-19 pandemic. + +I advised management to continue implementing strategies to enhance revenue collection. + +## 3.6.3. + +Performance of the collaborating institutions under the Tax Registration and Expansion Programme (TREP) + +During the financial year 2020/2021, the collaborating institutions under the Tax Registration and Expansion Programme (TREP) registered only 167,211 taxpayers against a target of 436,869 taxpayers representing 38.27% registration success a shortfall of 61.7%. In revenue terms, although TREP had a revenue target of UGX.124.58 Bn in FY 2020/21, it had only collected UGX.49.93Bn by 30th June 2021, representing a 40% performance rate. In addition, the Ministry of Local Government had planned to implement activities worth UGX.4.4Bn under TREP activities but only implemented activities worth UGX.3.3Bn, leaving un-implemented activities worth UGX.1.1Bn despite receiving full funding. As a result, the e-LogRev objective of simplifying and strengthening the local revenue collection systems for Local Governments may not be achieved in time. +The paltry performance was attributed to the effects of the COVID-19 pandemic that has set back many businesses, political riots and limited staff at the various stations because URA TREP officers had been laid off, thus resulting in limited staff capacity to conduct enforcement. + +I advised the project management to review their strategies to enhance performance by agreeing on improvement plans to meet the project target. + +## 3.6.4. + +Overstay of projects in the Public Investment Plan (PIP)-UGX.39.01Tn + +The Public Investment Management Reform Strategy provides that projects are supposed to be delivered on budget and on time in order to achieve the desired goals and objectives. + +69 + +--- + +Audit observed that in the sample of 371 projects, 342 projects with budgets totalling to UGX.39Tn had gone past their planned exit periods that date as far back as the FY2010/11, with some projects having been extended for more than 12 years. The audit noted that the projects continued to receive Development Committee approval for a continued stay on the PIP. It was noted that only 40% of the projects in the PIP were still within their expected time period. + +As a result, this has caused delays in the completion of key projects, cost overruns and high commitment fees on foreign debt on account of low Absorption and failure to complete projects on time. It should also be noted that the effectiveness of some projects dwindles as time goes by. + +The PS/ST was advised to critically review the justification for maintaining certain projects within the Country's Public Investment Plan. + +## 3.6.5. + +Un recovered Advances; UGX.2,819,193,074 + +MoFPED introduced a policy to advance funds to entities before actual collection of Appropriation in Aid on the condition that these funds will be recovered after collection. The policy failed in the FY2018/19 and 2019/20 due to failure to recover funds fully. + +During the financial year 2018/19, entities were advanced Appropriation in Aid, of which UGX.22.16Bn remained outstanding as at year-end. During the year 19/20, UGX.21.31Bn was recovered, leaving UGX.849 million outstanding. + +It was also noted that during the financial year 2020/21, a total of UGX.116.9Bn was again advanced in disregard of what had happened earlier to various Local Governments. Out of the funds advanced, UGX.114.07Bn was recovered, leaving UGX.2.81Bn outstanding. + +## 3.6.6. + +Absence of a monitoring and evaluation framework for impact assessment for tax exemptions + +The Government of Uganda has offered many beneficiaries' tax benefits, including tax holidays, waivers for tax payments, and refunding of various taxes as stipulated in various agreements and memorandum of understanding. The benefits are granted based on intended objectives that include promotion of economic growth, increasing employment, facilitation for extension of social services by Non-Government Organisations, among others. + +It was, however, noted that there is no mechanism in place for evaluating and or assessing the impact of the benefits granted. Analysis revealed that a number of beneficiaries have since had their benefit period expired without any follow up. + +In the absence of a monitoring framework, Government is not in a position to assess the impact of the tax benefits granted to the various beneficiaries. + +The Accounting Officer was advised to review the tax exemption Policy and set up a monitoring mechanism to follow up all tax incentive beneficiaries. + +70 + +--- + +3.7. ENERGY SECTOR + +## 3.7.1. + +Capitalization of Uganda National Oil Company and its Subsidiary Companies + +Uganda National Oil Company (UNOC) is charged with a mandate of representing + +## Government of Uganda’s Commercial interests in Oil and Gas Sector. The Company is + +strategically positioned to participate in the down-stream, middle-stream and the up- stream of the oil and gas value chain, thereby engaging in the exploration, production and commercialization activities. The Company is anticipated to fully participate in the exploration and production in the Albertine Graben; the oil refinery and the oil pipeline. As a result, UNOC has registered two flag ship Subsidiary Companies to champion its commercial interests. These include; the Uganda Refinery Holding Company for the refinery business, and the East African Crude Oil Pipeline Company to lead in the pipeline business. + +I noted that despite the significant initial investment requirements by UNOC and its subsidiary companies, the government has not fully capitalized the companies to enable their full participation in the sector. The companies are consistently facing funding constraints. For the period under review, I noted that out of the Budget of UGX.76.38Bn for UNOC, only UGX.34.4Bn was availed, resulting in a funding gap of UGX41.98Bn, which is 54.96% of the budget. + +After the Final Investment Decision for the Upstream and EACOP Project, which is envisaged to be undertaken in February 2022, there will be a rapid increase of oil and gas activities which will cause an exponential growth in the financing needs of the + +## Companies. + +UNOC has proposed a capitalization plan to MOFPED in its annual work programme and budget for the FY 2021/22 of UGX.914.18Bn comprising Capital expenditure (UGX.304.08Bn) and Operating expenditure (UGX.129.10Bn). + +The Accounting Officer explained that he was engaging MOFPED and other stakeholders to secure finances to that magnitude, and a plan has been agreed with government on a phased approach towards capitalizing UNOC and its subsidiary companies. + +I advised the Accounting Officer to fast-track their discussions with MoFPED to ensure adequate capitalization of the companies to enable government commercial participation in the strategic oil and gas sector. + +## 3.7.2. + +Implementation of the Electricity Connection Policy(ECP) + +The Government of Uganda established the Electricity Connections Policy (ECP), 2018 which is expected to run from 2018 to 2027. The primary objective of the policy is to increase electricity access, and provide cleaner energy to Ugandans. The policy aims at achieving the 26% rural access target by 2022, 30% national coverage target by 2020 and accelerating access after 2020 in order to achieve 60% access rate by the year 2027. + +I noted from the review of the Connections Department work plans and progress reports for the year under review that out of the 97,000 annual planned connections, only 3,683 (3.7%) connections were undertaken. The dismal performance may frustrate the + +## Government’s initiatives under the Policy and NDP III of increasing electricity access to + +the population to 60% by 2027. + +71 + +--- + +I further noted that the ECP was facing challenges in delayed procurement of connection materials, under funding of compensations for the Project Affected Persons (PAPs), vandalism of the distribution network, among others. + +The Accounting Officer explained that the funding for the Connection Policy got exhausted and the Policy was first suspended by Government. However, it resumed in March 2021 to facilitate connections by utilizing materials procured with funding from African Development Bank (ADB). He further explained, that Rural Electrification Program (REP) had secured approval from AFD to utilize the grant for connections intended to benefit 45,000 customers under the result-based implementation arrangement with the expected implementation to start by March 2022, and the connection materials are expected under the TBEA/Exim Bank contract which will benefit over 172,000 customers by June 2022. + +I advised the Accounting Officer to liaise with the relevant stakeholders such as MoFPED and MEMD, to devise Sustainable funding strategies and ensure that implementation of the ECP is fast tracked for the achievement of policy objectives and service delivery. + +#### 3.7.3. Vandalism and Theft of UETCL Grid Assets + +Uganda Electricity Transmission Company Ltd (UECTCL is charged with bulk evacuation of power using High Voltage (220Kv and 132Kv). The Company majorly uses steel Towers for the construction of the Transmission Lines. During the year it incurred UGX.0.5Bn in purchase of Galvanized Angle bars to replace vandalized tower members. Further analysis revealed that the Company incurred UGX 1.56Bn in replacement costs on assorted transmission line items vandalized between 2017 and 2021. + +The Accounting Officer explained that this was a nationwide vice that has been brought to the attention of Cabinet and Security Agencies. In addition, Management installed a pilot security system on transmission lines, however the system was itself vandalized. Nevertheless, management continues to engage security agencies and also community policing to protect UETCL installations. + +Vandalism impedes continuity and reliability of electricity supply to the country and strains company resources used to replace vandalized items and associated works. In addition, energy not transmitted due to infrastructure breakdown translates into loss in revenue to the company. + +I advised the Accounting Officer to continue engaging the MoFPED and MEMD in order to obtain funding for Implementation of Key Projects and follow up with the relevant stakeholders to fast-track amendment of the relevant legislation and promotion of Joint Ventures and negotiation of Commercial Partnerships. + +## 3.7.4. + +Deemed Energy Purchases: UGX.87.7 Billion and Power Evacuation Losses UGX.15.29 + +## Billion + +Deemed energy refers to the electric power that is available for dispatch by an Independent Power Producer (IPP), but due to; non-existent or a weak grid infrastructure, and/ or insufficient demand, the power is not dispatched. This effectively transfers the market risk from the investors to Government, especially when the Power Purchase Agreement states so. + +72 + +--- + +According to several Power Purchase Agreements (PPAs) and other implementation agreements signed between the IPPs, GOU, and UETCL; GOU committed to construct power evacuation infrastructure from the IPP’s generation facilities to the distribution network upon commencement of generation and dispatch of power by IPPs. The failure to dispatch generated power constitutes deemed energy, and UETCL shall make payments to IPPs for such energy generated and not dispatched in accordance with the power purchase agreement. + +I noted that UETCL continues to pay significant amounts relating to deemed energy purchases. As a result, deemed energy costs of UGX.87.7 billion in regard to thirteen (13) Power Purchase Agreements (PPAs), save for one Hydro Power Plant (HPP), were financed through the electricity tariff system, hence negatively impacting on the electricity price to the final consumer. + +Similarly, I noted that UEDCL incurred an amount UGX.15.20Bn from power evacuation losses payable to UETCL for bulk power purchases. The amount is due to power evacuation losses stemming from absence of transmission lines to evacuate electricity from PA Technical, Siti 1 and Arpe Power Plants which resulted into wheeling power over a lower capacity and weaker distribution lines operated by UEDCL. These are significant losses for which the Company did not generate economic value. Payment of + +## this amount would significantly affect the Company’s cash flows. + +I advised the Accounting Officer to continue engaging the Regulator and other sector players to address the infrastructural constraints in the transmission network to ensure efficient evacuation of generated power. + +#### 3.7.5. Delayed Commissioning of Karuma HPP + +According to the 4th Quarter Progress Report, I noted that the completion date for Karuma Dam was further extended to 15th June 2022, resulting in a delay of 3 years and 6 months from the initial planned completion date due to unfinished works such as the spillway rehabilitation and other minor defects. + +I noted that the completion of land acquisition process or the Resettlement Action Plan (RAP) for the 132kV Karuma-Lira Transmission Line and Karuma Dam Reservoir by UTECL and MEMD, respectively, remain outstanding. These when not completed will affect the commissioning of the Karuma Dam and is a breach of the employer’s obligations under the EPC Contract with significant risk to the overall project completion. + +The delays in Project completion are likely to result in increased supervision costs, by the supervising consultant, and increased commitment fees payable on undrawn balances of the loan, of which GoU had already paid commitment fees amounting to UGX.2.9Bn as at 30th June 2021. It also reduces the period between commissioning, commercialization and payback which may have implications on the electricity tariff structure. + +I further noted Key Non-conformities by the EPC Contractor which included; 11kV switchgears installation, Units 1 to 6 ring gate leakage oil sump control box, severe damages on the various 400kV cables, damaged conic sealing surfaces, repair of the oil water separator unit, prolonged spillway operation, Outgoing Line Yard – cracks in the Control Building and absence of a Floating Boom. + +73 + +--- + +There is a risk that the non-conformities will result into damages, malfunction of equipment, unreliable plant components, and significant impact on working life duration and high operation and maintenance costs, as well as, negative environmental impact. This is likely to further affect the timely and successful commissioning of the Karuma + +## Dam. + +I advised the Accounting Officer to ensure that the rectification of pending works under the Karuma Dam is expedited to enable project completion and commissioning without further delay. + +## 3.7.6. + +Bottlenecks in the Compensation of Project Affected Persons(PAPs) under Transmission Line Projects + +The Uganda Electricity Transmission Company Ltd (UETCL) is mandated to augment + +## government’s efforts of increasing electricity coverage and expanding the national + +power transmission line network. The Sustainable Development Goals (SDGs); Seven (7) and Nine (9) both aim at increased electricity access by 2030.The electricity transmission sector has been affected by delayed construction and energizing of transmission lines. The delay has contributed to the low electricity consumption rates in the country of 215 KWh per capita per year, which is below the Sub-Saharan Africa’s average of 552Kwh per capita per year. The delayed construction has further more resulted into low uptake of borrowed funds, leading to increased costs, such as commitment fees paid. + +The delays in undertaking the construction of the transmission lines have been majorly attributed to inadequacies in the compensation process of the Project Affected Persons + +## (PAPs), thus leading to challenges faced in “Acquisition of the Right of Way” (ROW). + +This has in turn led to delayed implementation of a number of projects in the Energy Sector. A review of the compensation process under UETCL revealed the following irregularities; + +### i) + +The budgeting, disbursement, and absorption of compensation funds were not properly managed which resulted into over budgeting to the tune of UGX.111.3Bn on GERP and Mputa projects. + +### ii) + +The valuation process was marred with a number of irregularities, which included the use of un-updated district compensation rates; and unverified legal interests in the land; which resulted into unnecessary revaluations and ligation. + +### iii) + +About 56% of the PAPs for GERP and Mputa projects were not properly identified, and this resulted into a mismatch between the number of PAPs appearing on the Payment files, Survey reports and Valuation Reports. + +### iv) + +Of the released compensation amount of UGX.21.5Bn for both GERP and Mputa Projects, only UGX.5.86Bn was paid to PAPs, thus resulting into unspent funds to the tune of UGX.15.64Bn. This mostly affected the GERP Project which alone had UGX.13.17Bn not utilized, while Mputa had only UGX.1.66Bn. + +### v) + +There were significant delays in compensation of PAPs. 1,109 PAPs (52.2%) for Mputa and 821 (35%) for the GERP Transmission Line remained unpaid by the time of concluding the audit (November, 2021). Relatedly, Compensations in kind also delayed whereby out of 149 PAPs identified, only 93 were resettled, leaving 56 PAPs not resettled. + +74 + +--- + +vi) There were inadequacies in the construction of the resettlement houses which included; irregular payments to contractors, delayed progress of works, discrepancies in drawing specifications and BOQs, poor materials used for construction, and a number of defects which were not rectified. + +Timely compensations of project affected persons (PAPs) and acquisition of the right of way for electricity transmission lines would enable increased access to electricity by the citizens as envisaged in the sustainable development goals; 7 and 9. This would have a multiplier effect on industrialization which is critical for creation of employment and ultimately poverty reduction in the country. + +I advised management to streamline its RAP processes, including proper identification of PAPs, clear valuation processes, proper budgeting and release of funds, timely submission of PAP documentation and proper supervision of RAP activities. + +#### 3.8. GENDER AND SOCIAL DEVELOPMENT SECTOR + +## 3.8.1. Labour Externalization Inadequacies + +Labour externalization is a process whereby government undertakes to regulate the export of labour to foreign countries. This role is under the mandate of the Ministry of Gender, Labour and Social Development (MoGLSD). This activity involves the signing of Bi-lateral Migrant Agreements (BLMA) with destination countries. I noted that the country has only 3 BLMAs with destination countries namely; Saudi Arabia, the Hashemite Kingdom of Jordan and the United Arab Emirates. However, a review of the ministry records indicated that the country was exporting labour to more than 3 countries, such as; Kuwait, Oman, Qatar, Turkey, Afghanistan, Iraq and Somalia, among others. + +I noted that the Ministry had no mechanism in place to monitor the implementation of the BLMAs. Furthermore, pre-externalization checks on the working conditions, safety and health perspectives of the importing labour organizations had not been undertaken. I observed that 246 female migrant workers returned between June and December 2019 without completing their contract period of two years due to human abuse related challenges, according to the Uganda Association of External Recruitment Agencies reception Centre report on Returnee Migrant workers. + +Furthermore, 548 external labour cases were registered, out of which, 48 (9%) cases remained unresolved at year end. + +Accordingly, the gender equality, labour and human rights of over 103,935 Ugandan workers who have migrated to various countries to provide labour, from July 2016 to June 2021, may not be guaranteed without duly signed BLMAs. + +I advised the Accounting Officer to expedite the finalization of bilateral migrant agreements with all the destination countries as this would provide clear international protocols for protection of migrant workers. In addition, the Ministry should liaise with Ugandan Missions in the destination countries and register all the Ugandan migrants for ease of follow up. + +75 + +--- + +#### 3.8.2. Implementation of the Uganda Women Entrepreneurship Programme + +The Uganda Women Entrepreneurship Programme (UWEP) is an initiative of the Government for empowering women to improve their income levels and their contribution to economic development; by improving their access to financial services and equipping them with skills for enterprise growth, value addition and marketing of their products and services. The Programme has disbursed UGX.107 billion to 11,256 women groups, covering approximately 135,000 women, over the five-year period from financial year 2015/16 to 2019/20. + +I carried out a Value for Money audit to assess the extent to which the Programme achieved its intended objectives, and noted a number of key improvement areas as follows; + +## i) + +I noted that only 4,185 women had benefited from the Programme under the capacity and skills development component, which translates into 42% of the desired target (10,000 women) according to the UWEP Programme document. + +## ii) + +There were delays in disbursement of funds to the women groups. In some cases, the delays were more than 12 months from time of approval of the applications to receipt of the funds which affected the performance and success of enterprises, specifically those in the agricultural sector, which depend on the rainy seasons for planting. + +## iii) + +Despite the UGX.16Bn sitting on the recovery account with Bank of Uganda from the loan repayments over the five years, only UGX.963 million (6%) of the amount had been revolved. This denied the qualifying women groups timely access to funds, which were otherwise available for disbursement. + +iv) The Ministry of Gender, Labor and Social Development through the UWEP Technical Support Unit did not effectively plan and coordinate implementation of the objectives of facilitating women to access markets for their product, as well as promoting access to appropriate technologies which were not allocated funds in the budgets for the entire 5-year period. Consequently, these objectives were not fully achieved. + +v) There was underfunding of monitoring and supervision activities at the local government level which affected the frequency of monitoring of beneficiary women groups. The programme gaps at enterprise level could not be adequately identified and corrected on time. At the National level, the Technical Support Unit (TSU) undertook only 13 (43%) of the planned 30 monitoring and supervision visits to the regions throughout the five-year period. This resulted in delayed identification of performance gaps and timely remedial actions. + +I advised the Accounting Officer, prioritize the capacity and skills development component of the Programme and ensure women groups are given funds after attaining the requisite skills in management of the approved enterprises. In addition, the Ministry and Local Authorities should iron out all the bottlenecks in the application approval process to ensure timely revolving of the funds to women groups. + +76 + +--- + +3.9. LAND SECTOR +3.9.1. Management of Government Land Matters + +The Uganda Land Commission is mandated to manage public land acquired by government both abroad and locally. I noted that the Commission does not have an inventory for all government land and properties that are either occupied by tenants, vacant, acquired under compensation (but not yet re-distributed to the bona fide occupants), or acquired and owned by other government institutions and missions abroad. This inadequacy has contributed to government losing land to fraudsters, squatters and also inadequate revenue collections from the untimely collection of the property premiums and leases. + +I further noted an increase of UGX. 118.Bn (81.5%) in land compensation payables during the year, of which UGX 105.5Bn related to new compensations for land, while UGX.12.5Bn related to revaluations of land that had been previously fully compensated or had an outstanding payment. Furthermore, UGX.8.93Bn (15%) was paid to eight (8) persons out of the eight four (84) ranchers who had not been paid in the previous years. The delay to pay other ranch claimants may result into litigation and court awards that would further increase the domestic arrears. As at 30th June, 2021, the outstanding claim from ranchers was UGX.61.5Bn, and compensations to other claimants stood at UGX.188.0Bn, thus bringing total outstanding compensations in the Ministry of Lands alone to UGX.249.5Bn. +Similarly, the current landlord claims under the Uganda Land Fund, at the Uganda Land Commission, stand at UGX 194.7Bn. These also increased by UGX.7.2Bn during the current year. However, this amount is not supported by complete and appropriate documentation. The claims have been outstanding for a while due to the limited budget allocation to the Commission and the delay to fully operationalize the Land Fund which has remained operating as a budget support line in the Commission’s appropriated budget. + +I advised government to fully operationalize the Land Fund under the Commission and consider decentralizing all government land compensation payment claims to the Fund for proper management of government compensation processes, including mobilization of funds. + +3.10. EDUCATION SECTOR + +## 3.10.1. Management of Bilateral Scholarships + +Section 42(1) of the Higher Education Students Financing Act provides that all scholarships offered by the Government of Uganda (GOU), including bilateral scholarships, existing immediately before the commencement of this Act shall vest in the + +## Board. + +Subsection (2) further provides that the central scholarship committee of the Ministry of education and Sports existing immediately before the commencement of this Act shall cease to exist on such a date as the Minister may by Statutory Instrument publish in the gazette. + +77 + +--- + +Over the years, Uganda has received scholarships through various schemes from several Countries. The various types of awards include offers through bilateral cooperation, offers through multilateral cooperation and direct offers to individuals through Embassies of awarding Governments, Institutions and Agencies. + +Scholarships awarded to Ugandans through Embassies of awarding Government are in most cases received on an annual basis, most of them routed through the Ministry of Foreign Affairs. The major and regular donors are; United Kingdom, India, Egypt, China, Cuba, Turkey, Algeria, New Zealand and Hungary, among others. + +A review was undertaken with the objective of establishing the effectiveness in management of Bi-lateral scholarships, identifying the challenges and providing recommendations for improvement. During the analysis, a number of aspects were considered including; the extent of awareness of the scholarship programmes by Ugandans, absorption of Bilateral Scholarships, and the transparency and effectiveness of the award process. The following matters anomalies were identified; + +- Management of scholarships at the Ministry of Education and Sports is not supported by a Scholarship Policy, thus the country lacks policy direction in regard to sourcing, accepting, allocation and monitoring of scholarships. + + + + + +- The Ministry of Education and Sports still holds the mandate of managing Government scholarships contrary to Section 42(1) of the + +## Higher Education Students Financing Act which revoked the Committee’s + +mandate. + + + +- Information on Scholarship offered at the different Missions and other Government organizations was not readily available at the Secretariat. + + + +- Low uptake of scholarships was noted whereby out of a total of 280 scholarships offered to government in the previous three years, only 162 were filled resulting into an under absorption of 118 (42%) scholarships. + +The above outlined weaknesses have resulted into the process of accessing information on scholarships not being properly streamlined and consequently leading to low utilization/absorption of the scholarships available to the Country. + +I advised the Ministry of Education and Sports to ensure that the administration of scholarships in the country is streamlined for efficient and effective management. + +3.10.2. Management of Research Grants by Public Universities in Uganda + +Owing to the different challenges faced by public Universities in the management of research grants I undertook a value for money audit and independently assessed the management of research grants by Public Universities in 4 out of the 9 Public Universities in Uganda, these included; Makerere University, Mbarara University of Science and Technology (MUST), Kyambogo University and Busitema University. I noted the following; + +## i) + +There is no framework to ensure collective planning, coordination and follow-up of research efforts for the different Public Universities to ensure equitable allocation of resources, efficient utilization of academic staff, and that research results contribute to National development. + +78 + +--- + +## ii) + +I noted that key research and grant management policies/guidelines were missing at a number of Universities to guide on the efficient and effective management of research activities. Furthermore, the country lacks national regulations and guidelines for research and innovation activities including; sourcing of external grants, development and uptake of technologies and, management and commercialization of intellectual properties. + +## iii) + +I noted inadequate administration structures for management of university grants, for example, out of the 4 Universities, only MUST had a grants office with dedicated staff to support grant activities. Busitema and Kyambogo universities did not have grants administrators at college/faculty level, while at Makerere and Mbarara only the college of Health Sciences and the faculty of medicine, respectively, had grant administrators to undertake the tasks. + +## iv) + +I noted that the country does not have a clear research agenda to guide planning, implementation and policy matters regarding research in the Country. Some Universities lacked research agenda. For example, Mbarara and Busitema Universities did not have an approved research agenda. + +v) I noted that resource mobilization initiatives for public universities were inadequate. Out of the 4 universities, only MUK had a consolidated Research Innovation Fund (RIF) for research funds from government the other universities have not explored this initiative. All the universities have not raised any resources internally into a separate fund for research. This was attributed to government policy of remitting all internally generated revenue into the consolidated fund. + +## vi) + +I noted monitoring and evaluation of research projects was inadequate in all the four Universities. M&E was not carried out by the university management on external research grants for the period 2017/18-2019/20. I further noted that even where M&E was undertaken by donors, recommendations were not fully implemented by the Universities. + +vii) I noted significant delays in completion of research projects. For example, 450 (88%) out of 512 Government funded Grants from MUK, Kyambogo and Busitema, were not completed in time during the period under review. Similarly, 218 (62.3%) out of 350 Donor funded Grants from the 4 universities were not completed in time. + +I advised government through its various entities to consider establishing a National research agenda which should be supported by a comprehensive research management framework streamlined throughout the entities. In addition, Government should consider establishing a research fund at each public university in which both government and donor research funds could be collected and effectively managed. + +79 + +--- + +## 3.11. WATER & ENVIRONMENT SECTOR + +## 3.11.1. + +Afforestation and Restoration of Selected Central Forest Reserves (CFRS) by the National Forest Authority (NFA) + +The National Forestry Authority (NFA) was established under section 52 of the National Forestry and Tree Planting Act, 2003 (NFTPA) with an objective of managing the Central + +## Forest reserves. The country’s forest cover reduced from 24% (4,933,271ha) in 1990 to + +9% (1,956,664ha) in 2015, with a slight increase of up to 12.3% (2,025,192ha) in 2017. The forest cover loss over the years from 1990 to the last biomass study in 2017 was estimated at 58.9%. Similarly, the CFR forest cover under NFA’s jurisdiction alone dropped from 62.5% (791,240ha) of the NFA forest cover to 45.8% (579,257ha) in the same period. This trend was contrary to Sustainable Development Goal 15 which required governments to ensure the restoration of forests and increase forest cover in line with obligations under international agreements by 2020. + +I carried a value for money audit to evaluate the effectiveness of the measures put in place by the NFA towards the restoration and establishment of new plantations in the central forest reserves, between the period of 2016 and 2020, and noted the following; + +i) Although management achieved 11,173ha (78%) of their planned outputs (14,277ha) for both restoration planting and establishment of new tree plantations, this only contributed a total of only 0.88% to the NFA forest cover (1,265,742ha) over the four-year period. This dismal performance was attributed to a number of inadequacies in the Planning; Budgeting; Land management; Monitoring and Inspections; and Collaboration management, resulting into the failure by NFA to meet its desired targets towards increasing the national forest cover. + +ii) A number of stakeholders in the forest sector, with different projects across MDAs supporting forestry restoration activities, were not adequately coordinated under a single mandate. In addition, there are; inconsistencies in the national, sector and NFA strategic plans, there is a lack of specific outputs per stakeholder in the plan together with matching funding for the activities met to achieve the planned outputs. These inadequacies in coordination and planning at NFA, the Forest sector and national level have contributed to the limited National forest coverage of 12.3% and NFA forest cover of 45.8%. + +iii) I that out of the expected 16 monitoring reports in the four-year period ending 30 th June, 2020, only 4 (25%) were prepared in the entire four-year period. In addition, NFA budgeted to receive UGX.320m for monitoring in the four years under review, but only UGX.91.8million (29%) was released, and the entity spent UGX 88.8million over the period on monitoring activity. Furthermore, there were limitations in discussing and implementing monitoring report recommendations, and as a result, there were instances in which management did not demarcate the area as recommended by the M&E report before restoring the forest. This led to destruction of the newly restored forests by encroachers. + +I established that seventeen (17) MOUs were signed with different government agencies, out of the planned twenty (20), representing an 85% performance. Although these collaborations contributed to the restoration and establishment of new plantations, there were inadequacies in providing the planned quantity of seedlings. In addition, twenty (20) out twenty-eight (28) Collaborative Forest management (CFM) agreements were signed with forest edge communities. + +80 + +--- + +I advised the Accounting Officer to improve on the Planning, Budgeting, Coordination and Collaborations, Monitoring aspects, and prioritization of fixed resources required in the restoration and establishment of forest cover in the country. + +3.12. WORKS SECTOR + +#### 3.12.1. Uganda National Roads Authority + +## a) + +Loss of funds in interest on delayed payment of contractors + +The Authority incurred wasteful expenditure to a tune of UGX.17Bn in form of interest and penalties due to delayed settlement of invoices from contractors. This was a loss to Government. The Accounting Officer explained that interest costs arise due to inadequate funding for the road development and maintenance projects that UNRA is managing. I advised the Accounting Officer to enhance the Authority cash flow management by rationalizing available resources, especially reduction of advances + +## payments to settle outstanding claims and to improve the Authority’s budgeting process + +and liaison with relevant authorities such Parliament and Ministry of Finance for adequate financial resource allocation. + +## b) + +Delayed road projects and accumulation of commitment fees + +By 30 th June 2021, 35 road projects under UNRA with a total contract value of USD.398,427,063.99 and UGX.149,739,813,845 had been delayed. These 35 projects were to be completed during the year were behind schedule as per their work programme still on-going by the close of the year. The delays which ranged from 64 days (about two months) to 1,072 days (about two months three years) days were majorly attributed to: inadequate mobilization by some contractors, abnormal rains, delayed acquisition of Right of Way and the effects of COVID-19 that resulted into nationwide lockdown. I computed commitment fees on only two projects (Busega-Mpigi- UGX.7,1140,345,245) and RSSPV (UGX.3,079,241,588) and observed an accumulation of total commitment fees amounting to UGX.10,219,586,833 in only one year alone. + +The Accounting Officer explained that the delay to complete the projects was due to a number of factors that included; inadequate mobilization by some contractors, abnormal rains, delayed acquisition of Right of Way and the effects of COVID-19 that resulted into nationwide lockdown. I advised the Accounting Officer to always ensure that projects are completed within the agreed timelines. + +## c) + +Delayed compensation for Project Affected Persons and Acquisition of Right of Way for Road Projects (Projects- Kampala Jinja Expressway, Hoima Wanseko) + +I observed delays in compensation of Project Affected Persons and hence Acquisition of the Right of Way. The majority of Project Affected Persons are compensated beyond the stipulated six-month period after approval of the Valuation Reports by the Chief Government Valuer. For the KJE Project, the construction works are planned to commence in January 2022. However, 21% of the approved compensation amount worth UGX.92,571,144,970 has not yet been paid, with less than 6 months to the scheduled commencement date which is likely to impede timely handover of the project corridor and timely commencement of works. In addition, compensation for properties within volume 5 comprising Kasokoso area had not yet been assessed. + +81 + +--- + +The Accounting Officer explained that a number of issues caused the delays for compensations, such as; lack of proper ownership documents, for example; sales agreements, letters of administration, ownership disputes especially for untitled interests like Kibanja or customary land, absentee landlords, and; rejection of compensation awards by PAPs that lead to review of the complaint to ascertain validity. I advised the Accounting Officer to consider using escrow accounts with district local governments for the absentee landlords and PAPs where funds may be deposited so as to aid fast land acquisition. + +#### 3.12.2. Ministry of Works and Transport + +a) Failure to maintain district road equipment + +The inspection of the Ministry’s Regional Mechanical Workshops during August and September 2021 revealed that 21 units of district road equipment which are key in opening and maintaining district roads were left unused in the workshops’ yards for more than a year without repair. The equipment included: thirteen (13) motor graders of different models; four (4) bulldozers; One (1) pickup; two (2) dump trucks, and one (1) wheel loader. This means that the districts that own the said equipment could not maintain their roads and deliver such critical service to the country as planned. In addition, the cost of repair may escalate as other parts also become faulty when the equipment is grounded for a long time. + +The Accounting Officer explained that the amount budgeted and received to maintain road equipment represents 30% of the total funds required for equipment maintenance. I advised the Accounting Officer to liaise with the responsible authorities to obtain the necessary funding for the full maintenance of the equipment so that the equipment operates and serves the Districts. + +b) Delayed acquisition of land for the Right of Way for the Standard Gauge Railway project (Ministry of Works and Transport) + +The SGR project was to acquire 5,200 acres of land free of encumbrances at an estimated cost of UGX 534.6 bn for the Right of Way (ROW) for the construction of the Kampala – Malaba SGR route by October 2016. However, by September 2021 only 1,296 acres (25%) had been acquired at a cost of UGX 95.3 bn. Additionally, the project had not obtained titles for the acquired land. There are risks of subsequent compensation for the land already paid for and failure to acquire all the land needed for the full realization of the project. + +The Accounting Officer explained that currently, land acquisition is one of the core activities of the project. He further explained that the releases however have been going down in comparison to the annual budgets. I advised the Accounting Officer to obtain and transfer land titles to Government for the land paid for and expedite the acquisition of all the land needed for the project. + +82 + +--- + +## 3.12.3. Uganda Railways Corporation + +a) Procurement, supply, delivery, training and commissioning of four (4) used locomotives + +URC contracted M/S GRP Leasing Africa for the supply, delivery, training and commissioning of four (4) used locomotives under procurement reference; URC/SUPLS/2020-11/0001 at UGX.41,323,768,935. However, I noted that the bidder did not comply with some requirements within the bid document which were supposed to be the basis of evaluation. Despite the non-compliance, the bid was evaluated without following the evaluation criteria for Technical stage contrary to the regulations. Non-compliance with the evaluation criteria may have led to delivery of unsuitable locomotives at an inflated cost. Important to note was that the locomotives could not turn at the existing turning points in the country. Therefore, the Corporation will incur un-planned costs of providing turning points for the locomotives. + +The Accounting Officer further explained that the limiting turning curvature for the 98 class locomotives is 26 degrees whereas the existing railway triangle had some sections with sharper curvature of less than 26 degrees presumably because the existing triangle design considered the existing locomotive fleet prior to purchase of the new locomotives with different design specifications to safely change direction at the triangle. The physical constraints of the triangle including 2 bridges over Nakivubo channel, high voltage electricity transmission line pylon and the Kampala Flyover Project Right of Way have limited any possible improvements in the triangle alignment to relax the limiting curvature. I advised the Accounting Officer to always ensure that Evaluation Committees + +## check for bids’ responsiveness to the criteria set in the bid documents and recommend + +only fully responsive bids for award of contracts. + +b) Lack of Land titles - UGX 91,832,636,500 + +I noted that Uganda Railways Corporation land worth UGX.91,832,636,500 lacked land + +## titles as evidence of URC’s rights to own and use the property. Management’s efforts to + +secure the land titles appear remote. Lack of land titles led to the Corporation’s land to have been heavily encroached upon and grabbed as was observed during field inspection. + +The Accounting Officer explained that Management was pursuing the titling of land in various locations. I advised the Accounting Officer to expedite the completion of Management interventions and processing of titles for all URC land. + +#### 3.12.4. Uganda Civil Aviation Authority + +a) Delayed revision of the Financing Agreement for the Exim Bank loan for Upgrading and Expansion of the Entebbe International Airport (EIA) Phase I Project + +UCAA entered into an agreement with China Communications Construction Company (CCCC) on 8 th October 2014 for the upgrading and expansion of the EIA Phase I. To obtain funding for this project, the Government of Uganda (GoU) represented by Ministry of Finance Planning and Economic Development (MoFPED) entered into a 20 + +## years’ concessional loan agreement not exceeding Japanese Yuan One Billion, two + +hundred and sixty million (¥ 1,260,000,000), equivalent to USD Two Hundred Million ($200,000,000) with the Export-Import (EXIM) Bank of China on 31 st March 2015. + +83 + +--- + +Subsequently, MoFPED entered into an on-lending agreement with the UCAA which transferred the following loan obligations to the Authority: - + +a) Semi-annual loan repayment within 13 years after the grace period of 7 years at an interest rate of 2% p.a on the principal amount drawn for the actual number of days elapsed from a 360-day year. + +## b) + +Payment of a management fee on the aggregate amount of the facility equal to ¥ 3,150,000 (USD 500,000) in one lump sum within 30 days after the effective date of the agreement with EXIM Bank but not later than the first disbursement. + +c) Semi-annual payment of commitment fees calculated at 0.25% per annum during the loan availability period. + +Other terms of the agreements relating to the loan included: +a) The Repayment Reserve account shall be used to maintain the minimum amount of balance as a debt service reserve required by the lender. + +b) Banking of Revenue collections on Escrow Accounts, and ensuring that withdrawals are based on approvals of the lender. + +## c) + +Budgeting and Approval of Annual budgets by the lender for funds on Escrow + +## Accounts. + +## d) + +Paying semi-annually to the lender a commitment fee calculated at the rate set forth in concessional loan agreement (which is 0.25%) on the undrawn and un-cancelled balance of the facility. + +Because UCAA was not prepared to meet the terms and conditions of the loan agreement, several meetings were held with the MoFPED and the MoWT and a + +## resolution was made to have a Ugandan team headed by Uganda’s Ambassador to + +China, to engage Exim bank for a renegotiation of the loan terms and conditions. At the time, the Exim Bank had halted payments to the Contractor. + +The Accounting officer explained that as per the Attorney Generals guidance dated 5th November 2021, in his opinion none of the clauses in the agreement require amendment. + +I advised the Accounting Officer to engage the relevant authorities on the clarity of the consequences of non-compliance with the terms and conditions that directly affect + +## UCAA’s operations, and on the possibility of transferring the loan liability from UCAA’s + +books to MoFPED. + +b) Ratio analysis and financial performance of Uganda Civil Aviation Authority +The Authority made a loss for the year under review amounting to UGX 29,321,645,000. On review of the operating margin, I observed that the costs before considering interest and taxes exceeded revenue for the year. I also observed that due to the loss incurred, the Authority generated a negative return on assets of 5%. Further, the Authority could not cover interest accrued on its long-term loans in view of its earnings. Along with the lack of potential to cover loan interest, the Authority had a significant long term liabilities portfolio on its balance sheet, which majorly comprised of the loan from Exim of China to finance the upgrading and expansion of Entebbe International Airport. + +84 + +--- + +## The Authority’s loss and the ratios computed are an indication that Uganda Civil Aviation + +Authority did not perform well in terms of profitability and ability to sustain provision of services without further Government intervention for funding and Management strategies to improve revenue generation. The Accounting Officer explained that the performance results during the period were severely impacted by the COVID-19 situation that affected the airport operations of the Authority. + +I advised the Accounting officer to ensure that strategies are devised to improve the revenue generating potential of the Authority, while putting in place cost cutting mechanisms. I also advised the Accounting Officer to engage Government on further financing including clearance of the debt held by Government agencies, to be able to cover the current operating costs as they devise strategies to improve the earning potential of the Authority. + +3.13. HEALTH SECTOR + +#### 3.13.1. Mulago National Referral Hospital + +## a) + +Status of key medical equipment + +I carried out an assessment of key medical equipment in the hospital. The assessment focused on the functionality and availability of medical equipment in seven key hospital departments, that is; CSSD, radiology, nuclear medicine, ICU, Laundry, clinical laboratories and accidents and emergencies. I noted that some vital medical equipment was in poor working condition, while others were fully not functional and required replacement. The equipment included: autoclaves in the central sterile service department; patient monitors in the accident and emergency surgical unit; blood coagulation machine in the clinical laboratory unit; ICU beds in the intensive care unit, and CT machine in the Radiology department. + +Management attributed the poor state of medical equipment in the Hospital to the limited funding provided under the capital development budget of the Hospitals. Absence of such essential medical equipment presents a daunting task for the medical workers in the effective execution of their duties. The efficiency of the medical workers is compromised. + +I advised the Accounting Officer to liaise with the MoFPED and development partners to ensure that the funding gaps are covered to have the essential medical equipment provided to the hospital units. + +## b) + +Delayed Construction of 150 housing units + +I observed delays in the construction 150 housing units at Mulago Hospital. The contract was awarded on 20 th June 2020 at UGX.30,228,600,856 for a duration of thirty-six (36) months. One year and half down the road, the contractor had not yet completed the foundation of the first block out of the three blocks expected. + +85 + +--- + +The Accounting Officer indicated that the UGX. 4bn cap on the hospital capital expenditure budget creates challenges in undertaking high value capital projects since the absence of funding leads to delays in achievement of project milestones leading to project cost overruns. The Accounting Officer further explained that they have received funds in this Financial Year Budget to pay the contractor and it is expected that by the end of June 2022, the progress of construction shall be at a desirable level. + +I advised the Accounting Officer to follow up with contractor to ensure that the construction of the above staff houses is expedited. + +#### 3.13.2. National Drug Authority a) Delayed Construction of the Laboratory Tower + +NDA is undertaking a Laboratory Tower Construction project at a total contract sum of UGX. 35,849,057,474. The start for the works was 11 th October 2019 and the original completion date was 11 th October 2021. The completion was revised to 07 th March 2022 because of delays. By the time of inspection, UGX 11,847,043,442 had been paid to the contractors. The implementation of the contract was not sufficiently managed leading to delayed works. + +I also noted that changes were made to the original building plans to cater for the adjustments to the outdoor and building basement parking and though the Contract Management Team and the Authority (NDA) had approved the adjustments and works had commenced by the time of audit in August 2021, the amended building plans had not yet been approved by the Metropolitan Physical Planning Authority. Implementation of unapproved building plans poses a risk of loss of the NDA funds in case the responsible Authority (Metropolitan Authority /KCCA) rejects the plans and directs demolition of the works. + +The Accounting Officer explained that the delays in the completion of works were due to the COVID-19 lockdown that took two phases in 2020 and 2021 which interrupted staff movement, manufacturing of inputs globally and transportation. The Accounting Officer also explained that the consultant submitted the revised drawings on 3rd August 2020 and no response had come through despite numerous follow-ups including that of 15th April 2021. Management promised to continue reminding KCCA to approve the submitted adjusted plans. + +I advised the Accounting Officer to liaise with the contractors to scale up project works to ensure that the project is completed within reasonable timelines. I advised the Accounting Officer to follow up with the Physical Planning Authority/KCCA to ensure that the building plans are approved as soon as possible. + +3.14. SCIENCE, TECHNOLOGY AND INNOVATION SECTOR + +## 3.14.1. + +Closure of the Ministry of Science, Technology and Innovation + +The GoU established the Ministry of Science Technology and Innovation in 2016, and it started its operations in 2017/2018 as Vote 023, with a mandate to oversee the overall contribution of the Science Technology and Innovation Sector towards attaining key objectives focused on mainstreaming Science, Technology, and Innovation in the development process of Uganda. + +86 + +--- + +At the time of the transfer, the Ministry had the following subventions and independent projects in pursuit of its objectives; + +### i) + +Uganda National Council for Science and Technology (UNCST); + +### ii) + +The Presidential Initiative on Banana Industrial Development (PIBID); and iii) Kiira Motors Corporation (KMC). + +### iv) + +Uganda Industrial Research Institute (Vote 110), an agency under the ST&I Sector and self-accounting. + +### v) + +The commercialisation of sericulture Technologies and Innovations(TRIDI) +vi) Presidential Scientific initiative on Epidemics (PRESIDE) is an umbrella organisation for multiple scientific research organisations. + +The Ministry was later abolished effective 1st July 2021, and its operations were transferred to the President's Office. The Ministry's closure may slow down the developments in the above entities during re-organisation. + +I noted that there were also no transition plans for the merger and continuity of operations of the subventions. Lack of transition arrangements could delay research projects, loss of assets and critical human resources. + +## 3.14.2. + +Un-deployed Staff upon the abolition of the Ministry + +The Ministry had a structure with a total staff establishment of 154 positions, of which 136 positions had been filled and had a recruitment plan for another fifteen (15) staff of different cadres. + +As a result of the closure of the Ministry, the staff were rendered redundant and had not received their emoluments by the end of November 2021. In addition, 48 common cadre staff had been transferred back to the Ministry of Public Service, as the technical and support staff employed by the Ministry await their fate. + +I noted that some staff were living under uncertainty, which may lead to redundancy escalation and high costs to the Government. + +Management explained that the Ministry of Public Service is reviewing the structure, and once it is approved, a validation exercise will be undertaken to determine those who fit in. Those that will not be absorbed will be handled in line with the public service standing orders. + +## 3.14.3. + +Progress on the COVID-19 Vaccine, Diagnostics and Treatment Projects + +The Ministry of Science, Technology and Innovation (MOSTI) was appropriated supplementary funding of UGX.31.033Bn, which was meant to support 23 selected projects of scientists and innovators engaged in CoVID-I9 scientific research, including the procurement of specialised machinery and equipment, development of vaccines, drug diagnostics and other operational costs. The funds were divided into the purchase of Equipment (UGX.15.787Bn) and Operational Costs (UGX.15.787Bn). + +As of 30th June 2021, the Ministry had received 86.5% of the Operational funds and + +## 100% of the Equipment Funds. + +87 + +--- + +Of the 23 projects, five were for Diagnostics, four for the development of Vaccines, nine for the development of treatments, and five for material support to existing projects. +Of the 23 projects initially selected and funded, 19 progressed while others stalled. Their progress was slowed down by the merger of the Ministry without transition plans and subsequent delays in funding. + +These delays affect the overall intention of the emergency initiative of averting the adverse effects of COVID-19 on the population. + +3.15. TRADE SECTOR + +## 3.15.1. + +Under Absorption of funds by UDC + +UDC received UGX 263.47Bn, from the Government of Uganda, of which only UGX 119.29Bn, (45.3%), was spent by the entity during the year resulting in an unspent balance of UGX. 144.18Bn, (46%) + +Out of the total funds received, UGX.126.2Bn was for Covid-19related interventions, and only UGX.55.9Bn (44.3%) was spent. + +This may be partly attributed to the release of funds before completion of feasibility studies, the release of funds tagged to specific projects in disregard of UDC project appraisals and the un-timely release of funds, among others. + +Under-absorption undermines the intention of Government funding for import substitution and export promotion strategies spearheaded by the Corporation and averting the effects of Covid-19. + +## 3.15.2. + +Extent of Implementation of Planned Development Projects by UDC: + +I noted that out of the 17 development project activities planned to be implemented over the year, 15 were funded under the Covid-19 supplementary budget. Two development projects, namely: Soroti Fruit Factory and Feasibility studies & Business Plans, were funded under the normal budget. + +A review of the extent of implementation revealed that; + + + +- Only (3) three development projects were fully implemented, i.e., shareholder's loan to Atiak Sugar Factory; Acquisition of shares in Mabale Tea Factory; and Acquisition of shares in Bukoona Agro Processors Limited. +- Five (5) development projects were partially implemented. +- Eleven (11) projects were not implemented at all. + +This was attributed to the conditional release of funds tied to specified development projects and inadequate institutional capacity to appraise and implement investment projects. + +Under-absorption undermines government effort in attaining its goals. + +88 + +--- + +## 3.15.3. + +UNBS Inadequate Capacity in Testing and Enforcing Commodity Standards + +Section 3(1) of the UNBS Act spells out the functions of the Bureau which, among others, include providing for the testing of locally manufactured or imported commodities with a view to determining whether the commodities conform to the standard specification as well as making arrangements or provide facilities for the examination, testing or analysis of commodities and any material or substance from which or with which and how they may be manufactured, produced, processed or treated. However, I noted; + + + +- UNBS released 633 consignments due to the absence of standards to test these commodities for conformity. + +- The Bureau also released 366 consignments without testing product standards due to lack of capacity, which may lead to sub-standard products on the market. + + + + + +- The Bureau had staff presence at only 27 out of the 170 border entry points. This was attributed to understaffing at the Bureau. + +Although management explained that it had since developed the capacity to test the majority of commodities but it lacked some product standards. + +3.16. TOURISM SECTOR + +## 3.16.1. + +Decreasing Tourism Revenue due to Covid-19 + +Over the last two years, the tourism sector has been greatly hit by the unprecedented effects of the Covid-19 pandemic that has greatly affected all sectors of the economy, including the tourism sector. + +I observed a significant fall in tourism revenue collections for all of the entities in the Sector whose revenue is entirely dependent on tourism. This was attributed to the countrywide restrictions on the movement of persons, including tourists, due to the Covid-19 lockdown. As a result, tourist visitor numbers reduced from 255,711 to 103,812 (40.6%) + +The reduction in revenue collection has been significant and has directly affected the implementation of the planned activities across the Sector. + +## 3.16.2. + +Invasive species removal in the Wildlife Conservation Areas in Uganda + +I noted that most of the Protected Areas in Uganda are currently undergoing ecosystem changes as rangeland infestation by invasive and exotic plant species limits the grazing land. These plant species include; Dichrostachys cinerea, Lantana camara, Parthenium hysterophorus, Opuntia vulgaris, Imperata cylindrica, Maeruade cumbens, Caesalepina decaputala, Acacia hockii, Tecoma Stan, Senna siamea and Thevetia peruviana. + +89 + +--- + +During my inspection of Queen Elizabeth, Lake Mburo Park, Murchison Falls, and Kidepo Valley National Parks, I noted that these plant species continue to cover large expanses of grazing land despite the Uganda Wildlife Authority's effort to eliminate them. This is reducing the populations of specific grazers such as hippos, buffalos, zebras, topis, and Uganda kobs. + +This is attributed to climate change and inadequate funding to remove invasive species from the national parks. + +## 3.16.3. + +Merger of entities within the Sector + +On 22nd February 2021, Cabinet under minute No. 43 (CT 2021), a decision to merge Uganda Wildlife Authority with Uganda Wildlife Conservation Education Centre was undertaken. However, there were no transitional arrangements and plans to facilitate a smooth merger by the time of the audit. + +Delays in mergers create uncertainties among staff, reduce sector performance and subsequently lead to misappropriation of entity assets by disgruntled staff. + +## 3.17. + +HIGHLIGHTS FROM THE AUDIT OF LOWER LOCAL GOVERNMENTS FOR THE PERIOD + +## 2019/2020 + +I undertook an audit of a total of 2,048 Lower Local Governments (Sub-counties, Town Councils and Divisions), covering two financial years 2018/2019 (762 LLGs) and 2019/2020 (1,286 LLGs). +I noted the following cross cutting issues; + +3.17.1. Under staffing + +I noted that 217 LLGs in FY 2018/2019 and 175 in FY 2019/2020 had significant staffing gaps averaging 48% and 60% shortages respectively. Details are in the table 26 below. + +Table 26 : Understaffing in Lower Local Government + +| Financial Year | Approved positions | Filled up | Shortage | Percentage shortage | +|---|---|---|---|---| +| 2018/2019 | 3,847 | 2,008 | 1,842 | 48% | +| 2019/2020 | 6,797 | 2,713 | 3,823 | 60% | + + +Source: OAG analysis + +Understaffing overstretches the available staff beyond their capacity, creates jobrelated stress to the fewer staff and negatively affects the level of public service delivery to the community. + +The Accounting Officers explained that staffing at LLG level is a responsibility of the respective Districts and Municipal Councils. + +I advised the Accounting Officers to follow up on the matter with the relevant authorities and ensure that most of the vacancies are filled. + +90 + +--- + +## 3.17.2. + +Budget implementation in sample LLGs for FY 2018/2019 and 2019/2020 + +I sampled 627 LLGs for FY 2018/19 and 250 LLGs for FY 2019/20 to assess the implementation of the budget and noted the following significant audit findings: + +3.17.2.1. Performance of Central Government Grants + +The LLGs sampled budgeted to receive UGX.146,160,919,043 for FY 2018/2019 and 2019/2010 (revised) as Central Government Grants). However, UGX.134,095,135,622(92%) was received resulting into a shortfall of UGX.12,065,783,421(8%) majorly attributed to budget cuts as shown in the table below. + +This affected service delivery in Lower Local Governments Table 27 : Performance of Central Government Grant + +| Financial Year | Revised Budget | Actual Receipts | Variance | Percentage Perfomance | +|---|---|---|---|---| +| 2018/2019 | 92,214,094,491 | 87,717,635,886 | 4,496,458,605 | 95% | +| 2019/2020 | 53,946,824,552 | 46,377,499,736 | 7,569,324,816 | 86% | + + +Source: Financial Statements + +I advised the Accounting Officer to always engage the PS/ST through their respective higher local governments to ensure that all revenue is availed to the entity as planned. + +## 3.17.2.2. Local Revenue Performance + +The LLGs sampled had approved budgeted total local revenue for the 2 financial years amounting to UGX.91,399,324,016 (revised) out of which UGX.74,615,525,633(82%) was collected resulting into a shortfall of UGX.16,783,798,383(18%), as shown in the table below: + +Table 28 : Performance of Local Revenue + +| Financial Year | Revised Budget | Actual Receipts | Variance | Percentage Perfomance | +|---|---|---|---|---| +| 2018/2019 | 68,424,052,397 | 57,321,631,217 | 11,102,421,180 | 84% | +| 2019/2020 | 22,975,271,619 | 17,293,894,416 | 5,681,377,203 | 75% | + + +Source: OAG analysis + +The Accounting Officers mainly attributed the underperformance of local revenue in the financial year 2019/2020 to the Covid19 lock down which affected several of their major sources of local revenue. + +I advised the Accounting Officer to always ensure that local revenue is collected as budgeted. + +91 + +--- + +#### 3.17.3. Quality of Financial Statements + +In my previous year’s reports, I noted that there was still a problem with the presentation of financial statements in the Lower Local Governments. In the financial years under review, I noted that there was an improvement in the quality of financial statements with only 37 (6%) LLGs out of 627 and 22 (9%) out of 250 LLGs in financial years 2018/2019 and 2019/2020 respectively having qualified audit opinions. + +I however noted the following matters; UGX 202, 282,811 was improperly accounted for in FY 2018/2019 and UGX 80,259,257 remained Un accounted for in FY 2019/2020. + +The most common shortcomings were; Inconsistences in the amounts in the financial statement, Errors in Financial Statements, Incomplete financial statements and notes, wrong presentation of figures in financial statement, failure to prepare financial statements and unsupported figures in the financial statements. + +Preparation of financial statements is a stewardship role in which accountability for application of resources entrusted to Accounting Officers is reported to the stakeholders. Failure to present financial statements properly impairs interpretation and analysis of entity performances. + +The Accounting Officers attributed this to staff changes that were made in the middle of the financial year, difficulty in acquiring books of accounts from district stores and lack of training. I advised the Accounting Officers to liaise with responsible authorities to ensure that the staffing gaps are addressed and the necessary trainings undertaken. + +#### 3.17.4. Land Management in Local Governments + +I noted that 331 (53%) Lower Local Governments out of the 627 in FY 2018/19 and 188 (75%) Lower Local Governments out of 250 in FY 2019/20 sampled respectively had land management challenges such as: + + + +- 41 LLGs in FY 2018/19 and 24 LLGs in FY 2019/20 respectively lacked land titles, including where their headquarters are located. +- 41 LLGs in FY 2018/19 and 24 LLGs in FY 2019/20 respectively lacked Area Lands Committees or the committees were non-functional. +- In the circumstances, there is risk of persons trespassing, disputes and litigation. + +Majority of Accounting Officers explained that it was the responsibility of the Districts or Municipal Councils to obtain these land titles. A number of other Accounting Officers cited insufficient funding as a cause for failure to have fully functional land committees + +Government should consider taking deliberate steps to fund the survey and titling of all government land at the Local Governments. I also advised the Accounting Officers to constitute the Area land Committees. + +92 + +--- + +## 3.17.5. + +Lack of Urban Physical Planning Committees + +I noted that 32 Town Councils in the two financial years had no Urban Physical Planning Committees in place or the Committees were not fully functional. + +Consequently, physical developments undertaken within the physical planning areas may not have been well determined and managed by the respective LLGs. This was mainly attributed to lack of sufficient funds to operationalize the physical planning committees. + +I advised Government to engage the relevant stakeholders to nominate members and ensure that the committees are fully instituted and are functional. + +93 + +--- + +PART 4: INFORMATION SYSTEMS, ENGINEERING, VALUE FOR MONEY AND SPECIAL + +## AUDITS + +During the financial year 2020/2021, I undertook three Information Systems audits, three Engineering audits covering 90 projects, eight Value for money audits. In addition, I undertook special and forensic audits which are reported on separately. + +Below is a summary of the key findings I noted in each category, the details of which are included in individual reports issued separately. + +### 4.0. + +## HIGHLIGHTS FROM THE ENGINEERING AUDITS + +**4.1.** Value for Money Audit and Assessment of Urban Infrastructure projects implemented by 22 Municipal Councils under the USMID-AF Program for projects started in the Financial year 2018/2019 + +For the financial year 2020/21 a total of 14 infrastructure projects procured in 2018/2019 under the World Bank funded Uganda Support to Municipal Infrastructure Development-Additional Financing (USMID-AF) Program implemented by 22 Municipal Councils namely Arua, Gulu, Kitgum, Lira, Apac, Soroti, Moroto, Mbale, Tororo, Busia, Kamuli, Jinja, Lugazi, Entebbe, Hoima, Mubende, Fort Portal, Kasese, Mbarara, Ntungamo, Kabale and Masaka were audited and assessment of the performance of these projects across the 22 municipalities carried out including a selected sample of non-USMID i.e. Uganda Road Fund (URF) funded projects, and Schools Facilities Grant (SFG)/Transitional Development Grant (TDG)/Discretional Development Equalisation Grant (DDEG) funded projects implemented in the participating municipalities. + +The total contract value of the projects assessed was UGX 192,742,021,942. Below is a summary of the Key findings I noted, the details of which are included in the consolidated audit report for the 22 Municipal Councils and the 22 Individual reports issued separately; + + + +- Overpayments and irregular expenditure on USMID and Non USMID projects were noted during the audit. This comprised of overpayments of UGX. 214,862,488 and UGX 459,323,494 on USMID projects and Non-USMID projects respectively. The audit assessment also revealed various questionable expenditures, irregular payments, and potential financial losses attributable to different contractual irregularities totaling to UGX. 817,571,137 on the USMID funded projects in Arua, Jinja and Mbale + +## Municipalities. + + + +- All the municipalities had completed their projects by the time of the audit and the entire infrastructure in the municipalities was in use with the exception of Entebbe whose project was phased. Although the projects were finally completed there were delays in completion of the projects within the stipulated contract timelines. + + + +- During physical inspection of the municipalities of Mbale, Moroto and Lira, major defects were noted such as missing draining/emptying pipe on the + +94 + +--- + +soaking tank (leads to poor drainage), Clogged manholes and missing manhole covers, potholes on roads and poor drainage leading to ponding. + +- All the participating municipalities implemented environmental protection measures with the exception of Arua Municipality. Further, all the participating municipalities implemented social/safety measures except Soroti and Tororo Municipalities. + + + + + +- Inadequate allocation of funds in the budget for operation and maintenance of USMID infrastructure was noted in the municipalities except for the municipalities of Lira, Hoima, Fort Portal, Masaka and Gulu. + +I advised the Accounting officers of the Municipal Councils to ensure that; + +- All amounts overpaid are recovered by the respective municipalities. +- Contractors have updated work programs and delays in delivery of projects within stipulated contract timelines should be penalized by invoking liquidated damages clauses +- Inspections are carried out during the DLP as some defects can only surface while the structure is in use and report on the progress of the structure during the period and have all the identified major defects rectified. +- All municipalities should plan, budget and implement operation and maintenance activities to avoid early deterioration of the facilities. + +## Conclusion + +Owing to the challenges faced by the Municipal Councils during the delivery of USMID- AF Urban infrastructure as highlighted in this report, audit observed that these challenges notable improvements have been noted in planning, cost control enforcement of internal controls for certification, supervision and monitoring, and general contract management for the USMID Infrastructure projects, however these gains have not been translated to the Non USMID projects as URF, SFG,DDEG accordingly the Town Clerks must ensure that Non USMID projects are equally effectively monitored and supervised to ensure delivery of the works within the planned cost, quality and time requirements + +### 4.2. + +Value for Money audit and assessment of Infrastructure projects implemented by 60 Local Governments under the UgIFT Program for Construction of Seed Schools and Health Facilities in the Education and Health Sectors + +For the financial year 2020/21 a total of 109 infrastructure projects implemented by 60 Local Governments involving the construction of seed schools and Health centre IIs under the World Bank funded Uganda Inter-Governmental Fiscal Transfer (UgIFT) Programme for Results was audited and assessment of the performance of these projects across the 60 Local Governments municipalities carried out for the Education Sector and Health Sector. + +95 + +--- + +Under the UgIFT programme, the World Bank committed the total of US$500m over the period FY 2018/19 to FY 2023/24 to support decentralized services in Education, Health, Water and Environment, and Agriculture (micro-scale irrigation) as well as support I +nterventions in Refugee host communities, With this financial support, Government committed to construct Seed Secondary Schools and Upgrade Health Centre IIs to IIIs in Sub-Counties, extend rural water to underserved communities including the newly constructed seed Secondary Schools and Health Centre IIIs, and also provide Small Scale Irrigation equipment to farmers to enhance their productivity. + +The scope of the audit and assessment covered 53 seed secondary schools’ construction projects with an overall total contract sum of UGX 111,860,803,846 and 57 health centre construction projects with an overall total contract sum of UGX 33,743,610,012. + +Below is a summary of the Key findings noted, the details of which are included in the consolidated audit report for the 60 Local Governments and the 60 Individual reports issued separately; + + + +- In assessing the adequacy of the design process for the buildings, evidence of needs assessment, presence of geotechnical investigations report, design report, drawings and specifications were considered as key requirements, it was observed that detailed design reports were not availed to all local governments by the Ministry of Education. + + + +- Overpayments and irregular expenditure amounting to UGX 3,153,351,606 was noted during payment for construction works in some of the seed schools. Furthermore, UGX 3,588,640,939 were made without providing the breakdown of work items being certified. + + + +- During physical inspection of the Seed school infrastructure works, the participating LGs with exception of 3 LGs had defects such as honeycombing in concrete, absence of anti-sag rods, cracks in the ceilings, absence of expansion joint in the ICT blocks, exposed steel reinforcement, inadequate painting in the roof structures. + +The observed defects, if not addressed, will result in increased maintenance costs for the local governments. + +- In assessing the adequacy of the design process for the buildings, evidence of needs assessment, presence of geotechnical investigations report, design report, drawings and specifications were considered as key requirements. It was observed that 39 local governments did not carry out needs assessment, geotechnical investigations, produce design reports in addition work specifications were also omitted. + + + + + +- Overpayments and irregular expenditure totalling to UGX 920,905,442 were noted during payment for construction works of the Health Centre IIs in LGs and municipalities. Furthermore, UGX 209,175,652 were made without providing the breakdown of work items being certified. + +96 + +--- + +##  Review of the status of the contractors’ equipment mobilization under + +construction of HCs revealed that out of the 56 local governments, only the 4 local governments had evidence that the contractors mobilized all required equipment. Further, only 13 local governments had evidence that the contractors mobilized all required equipment under the construction of seed schools. + + + +- Review of land ownership revealed that 7 local governments did not avail any evidence of acquisition or ownership of the land on which the Seed schools and health centres were constructed. + +I advised the Accounting officers of the Local Governments to ensure that; + + + +- Prior to implementation of any infrastructural projects of similar nature; all due design procedures such as needs assessment, geotechnical investigations are undertaken and documented by the local governments to facilitate adequate designs. + + + +- Overpayments in respect of quantities certified in excess of the actual works executed worth UGX. 3,153,351,606 in the Education Sector and UGX. 920,905,442 in the Health Sector should be recovered. In addition, the technical officers should review the other items that were not part of the audit sample and have additional checks in the certification process to minimise the errors in quantification. + + + +- Investigate the basis of payment of the questionable amounts totalling to UGX.3,588,640,939 in the Education Sector and UGX.209,175,652 in the Health Sector and take appropriate action. + +- Enforce the requirement for contractors to fully mobilize adequate equipment to undertake the works. In addition, any demobilization during contract implementation should be with the written approval of the project manager/supervisor. + + + +- All the defects/omissions observed should be corrected. Furthermore, additional inspection of the contractor’s works should be undertaken and any defects identified remedied immediately. + + + + + +- Fast track the process of obtaining formal ownership of the land on which the infrastructure is being constructed. Going forward, Accounting Officers should ensure that projects of similar nature are constructed on land that is formally owned by the respective local government. + +## Conclusion + +Owing to the challenges faced by the various local governments during the delivery of UgIFT infrastructure projects in the education and health sectors as highlighted in this report, audit observed that these challenges are a result of gaps/weaknesses in the planning and costing of works, enforcement of internal controls for certification, supervision and monitoring, and general contract management. + +97 + +--- + +Accordingly, the relevant stakeholders should enhance the capacities of the local governments through involvement of local governments in the planning for future projects of similar nature, organizing tailor made trainings for technical staff, review of the staff structure in the engineering department and ensure that it is adequate and appropriately staffed. The relevant ministries should develop standardized guidelines for costing of civil works and strengthen the monitoring and supervision role in local governments. + +### 4.3. + +Engineering Audit of Selected Road and Building Projects in Kampala Capital City Authority (KCCA) + +For the financial year 2020/21, a total of 24 public works projects (Road upgrade/rehabilitation, signalization of road junctions, and building projects) with a total contract sum/value of UGX.333.72tn were implemented by KCCA. A sample of Eight (8) projects (road, signalization and building projects) with a contract value of UGX. 276.92tn. were selected for audit. This sample represents 82.98% of the value of the 24 projects. + +Eight (8) of the KCCA projects were sampled for audit comprising of three (3) road projects funded by the World Bank under the Second Kampala Institutional and Infrastructure Development Project (KIIDP 2) and five (5) projects funded by the Government of Uganda (GoU). The five projects funded by GoU comprised of three (3) road upgrading/ rehabilitation projects and two (2) building projects, the following key observations were noted on these projects + +## i. + +Delayed relocation of existing services + +Delayed relocation of existing utilities for water and power for the three KIIDP road projects of Kulambira ring road 4.82Km, spur to Najjera road 0.7Km, Nakawa Ntinda road 2.8Km, Kabuusu –Bunamwaya – Lweza road 8.06Km and Lukuli road 7.71Km resulted in significant delays in execution of road works by up to 17 months. The Accounting Officer explained that public utility services by Statutory Undertakers (UMEME, NITA, UG POLICE, NWSC and UTL) in particular Kampala City are so complex that even the owners/operators do not know the exact location of their infrastructure, In addition, obtaining of shut-down permits from UMEME was always delayed as UMEME had to fit request within their planned shutdown programme. + +I advised the Accounting Officer to ensure that relocation of services is implemented in time, and works executed as per the approved work programme. + +## ii. + +Unjustified and overpayments amounting to UGX 1.355Bn + +It was noted that on some of the projects, payments equivalent to UGX.1.355Bn had been made for quantities of works in excess of those executed, not backed up by the necessary payment supporting documentation or contrary to the contract conditions as follows; + +98 + +--- + +Table 29 : Unjustified Payments and Overpayments + +| S/No | Project Name | Payment (UGX) | Remarks | +|---|---|---|---| +| 1 | Upgrading to Paved Standards of Kulambiro Ring Road (4.82km) including Spur to Najjera Road (0.7km), Reconstruction and Dualling of Nakawa Ntinda Road (2.8km) (Including Signalization of Four Junctions) and Reconstruction and Widening of Acacia Avenue (1.45km) (including Signalization of Six Junctions) – Lot 1 | 80,849,062 | Payment of Unverified NITA Relocations | +|^|^| 503,716,979.38 | Unaccounted for Payments of for relocation of services | +|^|^| 215,992,827.81 | Payments for quantities of works in excess of those executed | +| 2 | Upgrading to paved standard of Kabuusu –Bunamwaya – Lweza road (8.06Km) – Lot 2 | 56,860,150 | Irregular Payment for Costs due to Extension of Time | +|^|^| 348,214,079.83 | Payments for quantities of works in excess of those executed | +| 3 | Upgrading of Cecila Road (1.3Km) | 14,074,910 | Payments for quantities of works in excess of those executed | +| 4 | Construction of Kitintale Market – Phase I | 119,717,000 | Payments for quantities of steel reinforcement in excess of those in the bar bending schedule | +| 5 | Reconstruction of Ntinda II Road | 16,213,200 | Payments for quantities of works in excess of those executed | +| TOTAL |<| 1,355,638,209 || + + +I advised the Accounting Officer to ensure that the amounts certified and paid in excess of the quantities executed, unaccounted for payments and irregular/unjustified payments are recovered from the contractors prior to concluding the contracts. + +## iii. + +Delayed Land Acquisitions for the KIIDP Road projects + +There was delayed acquisition of land by the Authority for the two KIIDP road projects of Kulambiro ring road 4.82 Km, Spur to Najjera road 0.7 Km, Nakawa Ntinda road 2.8 km and Acacia Avenue 1.45 Km under Lot 1, and Kabuusu – Bunamwaya – Lweza road 8.06Km for Lot 2 resulting in delays of more than 12 months significantly affected the progress and timely completion of the works on these projects. The Accounting Officer explained that it has always been the plan of KCCA to expedite land expropriation in time and issue commencement orders for sites that are free of any encumbrances, however the delayed land acquisition was caused by absentee land lords, and unwillingness by some PAPs to accept the Chief government Valuers value of compensation. + +I advised the Accounting Officer that for future projects, the entity should ensure that contractors are issued with commencement orders when the site for construction is fully accessible. + +99 + +--- + +## iv. + +Failure to undertake Ground Investigations for Building Projects + +Detailed ground investigations to inform the foundation designs were not undertaken during the design of Kitintatle Market and the Maternity ward at Kiswa Health Center. Such omissions can lead to inadequate designs which may compromise the safety of the buildings during usage. The Accounting Officer explained that for the Kitintale Market and Kiswa Health Center Projects, no funds were availed for geotechnical investigations + +I advised the Accounting Officer to ensure that detailed ground investigations are undertaken to ensure that the constructed buildings can safely be put to usage when completed and going forward, the Accounting Officer should ensure that for projects of similar nature, detailed ground investigations are undertaken during the design phase. + +## 5.0. INFORMATION SYSTEMS AUDITS + +In accordance with Sections 13 and 22 of the National Audit Act (NAA) 2008, I am mandated to audit all the government investments and carry out special audit engagements that include information technology (IT) Audits. Accordingly, I planned and executed my audits following ISSAI 200: Fundamental Principles of Public-Sector Auditing and INTOSAI 5100 guidance. + +I conducted three (2) audits namely; Information Systems Audit of Civil Aviation Authority; the Academic Information Management System (AIMS) and Uganda National Land Information System (Ug-NLIS). Below are redacted version of my key findings. + +#### 5.1. Information Systems Audit of Civil Aviation Authority + +**i.** Disintegrated Systems/Manual Interfaces + +The entity has twelve independent IT systems which are not integrated to share information. As such, information sharing was purely manual despite being explicitly provided for in the respective system requirements and contracts. This increases the risk of human errors and abuse during data extraction and re- entry. This was attributed to lack of integrated planning for IT interventions. + +Failure to automate sharing of information between systems compromises the data integrity, creates opportunities for fraudulent falsification of records. In addition, maintaining multiple systems increases maintenance costs and increases man hours because of manual extraction and entry of data which would otherwise be used for other productive activities. + +I advised management to comprehensively plan for IT projects. In the meantime, management may explore interfacing the systems as they plan to implement an Enterprise Resource System to ensure that various departments share data seamlessly. + +100 + +--- + +### ii. + +## Lack of Integrated Revenue Systems at CAA + +Despite a big shift to digitalisation and the Authority spending UGX.1.13Bn in acquiring a Passenger Tracking System with the aim of ascertaining the number and identity of passengers on a given flight, two years later, the system was not being used consistently and by-passed from time to time. As a result, the Authority has no independent mechanism to ascertain the number of passengers on each flight, but entirely depends on manual submissions from airlines to bill for revenues. There is a risk of under declaration of passengers which can lead to revenue loss. In addition, the system produces incomplete information. + +Under the circumstances, there is a risk that the amounts disclosed in the financial statements were not accurate and the system does not provide reliable information. + +I advised management to explore possibilities of enforcing the use of the system. + +**iii.** Failure to capitalise Information System Intangible Assets in the Financial + +## Statements + +Despite spending UGX.4.723Bn on system development, Civil Aviation Authority (CAA) has not capitalised intangible assets. These include licenses, software, operating systems, subscriptions. + +As a result, the assets value is understated in financial statements. + +Management explained that they have engaged a consultant to carry out verification of all UCAA Assets; ICT Assets inclusive. + +I advised management to ensure that such assets are properly recorded and disclosed in the financial statements. + +### iv. + +Failure to implement Cargo Handling IT Systems + +One of the major revenue streams of CAA is cargo handling fees levied on the airline operators. Although CAA contracted two companies through concession agreements where 5% is charged on cash exports, 10% on general handling and 10% on standard charge related to aircraft and passenger handling. The Authority does not have an independent system to track and reconcile the revenue collected before charging the percentage as per the concession agreements. The information is not shared in real-time due to lack of appropriate IT systems and they rely on information provided by the contractors. + +This situation poses a risk of loss of revenue as a result of under-declaration of income from cargo handling operations by the handling companies. + +Management explained that they have initiated procurement for extension of the Point of Sale (POS) system to new concessionaires. The Specifications include provision for interface with the existing Cargo Management systems. + +101 + +--- + +I advised management to expedite the procurement and installation of the system. Meanwhile, CAA should engage the contractors to gain read-only access to the systems and extract accurate information for monitoring and reconciliation. + +### v. + +Tenants/Concessionaires without Point of Sale (POS) machines + +The Point of Sale (POS) system is being used to track sales of airport tenants to inform the rental charges, which are a percentage of the sales. However, it was noted that after ten years of implementation, only 7 out of the 18 concessioners have POS terminals installed which creates a risk of revenue loss. I also noted that even for those using the POS system, were using them selectively, hence under-declaration of sales. + +In addition, there is a risk that tax-free goods are being sold to non-passengers compounding revenue losses. This results into loss of revenue both to CAA and + +## URA. + +Management explained that they had 14 concessionaire locations at the deployment of the POS system in 2013. In addition, CAA will deploy a new system to cover the new locations and the procurement has been initiated. + +I advised management to fast-track the procurement and deployment of the new system. + +5.2. Information Systems Audit of the Academic Management Information System + +## (AIMS) + +### i. + +Contested Ownership of the AIMS (Source Code) + +The Ministry of ICT and National Guidance through its rationalization policy of promoting locally developed information systems agreed with Kyambogo University (KYU) to enhance its E-Kampus for sharing with other Public Universities and Self Accounting Tertiary Institutions (PUSATIs). Subsequently the user requirements were reviewed, functionalities improved and the system was rebranded to AIMS. + +A review of the framework contract between The Ministry of ICT and National Guidance and the supplier (Zeenode Uganda Limited) states that; the purchaser (MoICT&NG) acknowledges and agrees that the supplier and/or its licensors own all intellectual property rights in the services and the documentation. It was brought to my attention during my review that there is a disagreement of ownership of the source code and the parties are in court. + +I await the outcome of the court decision. + +102 + +--- + +### ii. + +Unclear Ownership of the system + +The Ministry of ICT & NG undertook the enhancement and deployment at the Public Universities and Self Accounting Tertiary Institutions (PUSATIs) of the E- Kampus into the AIMS under the innovation fund at a cost of UGX 2.1 Bn. Subsequently, the Ministry of ICT & NG procured technical support and maintenance services of the same system. + +However, I noted that the “vendor” (Zeenode) was charging UGX. 30,000 per student for use of the system. + +This casts doubt on the ownership of the system. I further noted that the system was switched off for two weeks December 2020 over non-payment of service and maintenance fees. + +As earlier noted, the case is before Court. I await Court’s decision. + +### iii. + +No right to audit provided in the contract + +The contract between Ministry of ICT & NG and the supplier did not include any "right to audit by third party" clause. As a result, during the execution of the audit, I was denied access to key components of the Information system and I cannot provide assurance on their adequacy. + +Management explained that it will consider including the clause on Right to Audit software, systems, data, in Contracts in collaboration with MoFPED and PPDA. + +I advised management to engage all stakeholders to make a provision for providing audit assurance in the contract. + +### iv. + +Failure to update the Source Code held in Escrow + +The contract between Ministry of ICT & NG and the supplier provides that any additions and inventions added by the purchaser and those that are unique to the purchaser will be documented and copyrighted to the purchaser upon installation and development. + +I noted, however, that even though the AIMS has been in continuous development for the last three years, there is no evidence that the original source code held in Escrow has been updated and neither was copyrighting of all changes to the AIMS after the contract signing. + +Management acknowledged the omission and stated that the source code was not periodically updated. The Ministry committed to ensure continuous periodic updates to all source code held in Escrow. + +I advised management to keep the code updated in real time. + +### v. + +## Data Ownership of the AIMS + +A review of the AIMS operations revealed that there is no clear data owner of the universities' data. The system vendor; + +103 + +--- + +- Has unlimited access to the application that is used to process the PUSATI information. +- Has control over the AIMS database and operating system environment +- Has the only Administrator privileges on the AIMS for all the PUSATIs. +- Issues access rights to the AIMS system users. + + + +This presents a conflict of interest as well as data integrity risk when the system developer has continuous access to the production environment. + +Management explained that Clause 19 (ii) of the Framework contract specifies that each PUSATI shall own its individual data and processes that they run on the System. The Ministry shall ensure that remedial action is taken as per recommendation as part of the new Policy under development. + +I advised management to consider remedial action that would limit the risk of unlimited access and manipulation to both privileged and critical information of the PUSATIs + +### vi. + +No data protection after contract termination + +I noted that in the framework contract signed between the MoICT & NG and the supplier, there is no provision for how the PUSATI data is to be handled at the end of the contract. Without such a provision, the PUSATIs have no way to require the third party to return institutional data or otherwise dispose of such data in a way that does not jeopardise the information security and reputation of the institutions or their affiliated institutions. + +Management committed to address the matter as part of the Policy on System development for Government. + +I advised management to devise means of ensuring that the data will be safely returned or destroyed in order to avoid the associated risks. + +### vii. + +Deviation from the Contract terms by ZUL + +Although the Framework Contract between MoICT and the suppler stipulates that the supplier shall ensure uninterrupted and error-free services, on 12th December 2020, the supplier without consequence, denied services to all PUSATIs for a period of two weeks citing alleged non-payment by MoICT & NG. This led to loss of revenue, critical time and information loss thus delaying decision making. + +Management promised to engage the vendor and ensure future contracts guard against such occurrences. + +I advised management to engage the Attorney General and devise means of protecting data as they wait for the disposal of the court case. + +104 + +--- + +**viii.** Sustainability of the AIMS + +The maintenance contract with the supplier expired in December 2020 and MoICT&NG had to pay the vendor an additional UGX.1Bn to guarantee continued support and maintenance until the 30th June 2021. It was proposed that beyond that period, PUSATIs would meet their own costs at UGX.30,000 per student per year, but there was no agreement or MOU with the system provider to ensure compliance by the PUSATIs. There is a risk of non-continued use of the system despite such investments by government. + +I advised management to ensure that all foreseeable costs of the system are analysed and evaluate sustainability of the project. In future, GoU should aim at outright acquisition or ownership and development of any public information system to avoid escalation of costs and ensure sustainability. + +### ix. + +## Lack of Change Management Procedures + +According to Section A.12.1.2 of the ISO/IEC 27001:2013, Changes to the organisation, business processes, information processing, facilities and systems that affect information security shall be controlled. I established that no change management policies were in place at either MoICT&NG or the universities in regard to the AIMS and as such, Change Requests from users and other changes deemed fit by the supplier were implemented on the live environment without any documented authorisation from either MoICT or PUSATIs management. + +I advised management to integrate change management policies/procedures in project design and implementation. + +5.3. Information Systems Audit of Uganda National Land Information System (Ug- + +## NLIS) + +The Government of Uganda sought assistance from the World Bank to make reforms in the Lands Sector through the Competitiveness and Enterprise Development Project (CEDP). The Modernizing of the land administration activity was implemented through a project named the "Design, Supply, Installation and + +## Implementation of the National Land Information System Infrastructure + +(DeSINLISI) by the Ministry of Lands Housing and Urban Development (MLHUD). The main objective of the DeSINLISI) project was to establish a National Land Information System Infrastructure for the entire country to foster efficiency and transparency in land transactions processing as well as uphold the land tenure security. + +I undertook an audit of the system with the aim of assessing it effectiveness in supporting the land registration process to achieve intended objectives. + +Below are the key findings: **i.** Land Registration Process + +I reviewed the land registration process and noted the following gaps that have led to poor service delivery: + +105 + +--- + + + +- Despite investing substantial amounts of money in the land system, the land registration processes are largely still manual and no transactions take place without a manual file. + +- The system encourages rampant use of agents; sometimes, titles change hands four times before getting to the registrar. + + + + + +- Currently, changes on land titles are effected using manual typewriters, which are prone to error and waste time due to a requirement of scanning out to capture the manual changes. + + + +- There is no mechanism of communication to clients whose titles are ready; I noted that there are a number of duplicate copies of titles that have not been picked by clients, some as far back as 1997. + + + +- The system does not provide for functionality to perform electronic printing and sealing of land titles as a security feature in the certificate of titles. + +The above gaps have led to unjustified delays in processing of land transactions, frustrating the public. + +I advised management to automate the land registration process; enhance system functionality to enable registered proprietors to create accounts to eliminate land agents (brokers) and an SMS alert system for the public to keep track of submitted applications. + +**ii.** Subdivision of plots + +The workflow process is so lengthy as it has seventeen levels of approval with duplicated roles. District physical planners as key technical players were left out of the system workflow process. The system workflow process is not flexible to allow queries at different approval levels without cancellation of the transaction. In addition, the applications involving surveys are submitted physically at the Zonal office, despite the investment in the surveyor's portal to aid the process. + +The public frustration has led to unethical ways of quickening the process, thus creating fertile ground for corruption. + +Management explained that it will enhance the land system functionality and workflow process to improve service delivery. + +I advised management to consider a review of the subdivision and workflow process to create efficiency. + +### iii. + +## Failure to Operationalise the Approved IT Staff Structure + +I noted that Ug-NLIS structure has not been operationalized with all senior positions still vacant despite the criticality of system to the country. Notably, system is largely supported by temporary short term contract staff who have not been recruited into main stream public service but continue to perform critical system roles such as database administration. + +106 + +--- + +The use of temporary staff to oversee and support critical IT system exposes the entire investment to high risk. Management explained that they have made submission to the Public Service Commission (PSC). + +I advised management to follow up with the PSC to expedite the process. + +### iv. + +Failure by Uganda Lands Commission (ULC) to Utilise the UG-NLIS + +I reviewed the Land information system and noted that Uganda Land Commission (ULC) does not utilize the Ug-NLIS to process land transactions (leases of public land). I noted that lease transactions were manually processed outside the system. + +It should be noted that ULC was involved in the development of system and user requirements and acceptance of Ug-NLIS as a solution that meets the Commission’s business needs. Further, I noted that ULC acquired another system which duplicates the functionality of the Ug-NLIS at a cost of UGX.500 million. + +The investment by ULC in a duplicate land registration system is deemed a wasteful expenditure. Management informed me that the Commission has commenced processing of public leases using the Ug-NLIS. + +I have advised Management to ensure that all public leases processed outside the Ug-NLIS should be captured into the system as a backlog. + +**v.** Overlapping Land Parcels + +There are a number of parcels in the system whose geo-referenced coordinates were erroneously captured which created distortions in the cadastral data of the + +## Ug-NLIS. + +The errors manifest where parcels on the system stretch beyond the boundaries and overreach neighbouring parcels such as road reserves, protected areas and neighbouring plots. Where overlaps exist, the system may create delays in processing of deed plans or titles. + +Management informed me that it has prioritised cadastral data cleaning. + +I advised Management to institute mechanisms to ensure quality control of survey data from surveyors and input validation. + +107 + +--- + +6.0. SPECIAL VERIFICATIONS + +In accordance with Sections 13 and 22 of the National Audit Act, 2008, I undertook two special verifications in the telecom sector, and below is a summary of my findings; + +## 6.1. + +Verification of Assets and Liabilities for Uganda Telecom (In-Administration) + +In accordance with Section 13(2) and 22 of the National Audit Act 2008, I undertook a special audit, for verification of liabilities of UTL comprising preferred taxes, UCC liability, UCECPS, administration costs, creditor payments and TDB Loan and assets on a request by the Minister of Finance, Planning and Economic Development. + +Below are the findings of the verification; + +### i. + +Verification of Trade Development Bank Loan + +Out of the claimed USD.16.51 Million by Trade Development Bank, the verified and approved outstanding loan amounted to USD.9.31 Million The balance of USD.7.24 Million which relates to default interest charged during the period from 22 nd May 2017 to 31 st May 2021 when UTL was under administration, could not be verified, as it appears to be contrary to the Ugandan Insolvency Act 2011 and the attendant regulations, which provide that interest payable in respect of any period after the commencement of a liquidation and/or insolvency shall be suspended. + +Government was advised to seek the opinion of the Attorney General, before the amount relating to default interest is allowed. + +**ii.** Verification of Other Creditors + +I verified claims from the creditors as at 30 th June 2021 totalling to UGX. 302.74Bn as summarised in the table 30 below; + +Table 30 : Creditors Verified + +| SN | Item | Amount - UGX | +|---|---|---| +| 1 | Consolidated Tax Liability (PAYE, Local Exercise, Withholding Tax, Value Added Tax) | 9,786,780,845 | +| 2 | UCC liability | 62,469,304,749 | +| 3 | UCECPS liability | 2,353,904,321 | +| 4 | Verified Creditors Liability (Pre & Post Administration period) | 63,079,412,417 | +| 5 | Un remitted NSSF Deductions | 15, 462, 575,874 | +| 6 | UTL Pension Liability for former UPTC employees | 165,048,246,917 | +|| Total | 302,737,649,249 | + + +I noted that creditors worth UGX. 28.74Bn were not verified due to insufficient information and creditors totalling to 336.3Bn were subject to court proceedings and therefore not verified. + +108 + +--- + +The Government should explore ways of settling the above liabilities to avoid litigation and associated costs. + +**iii.** Verification of Non-Current Assets + +The current estimated value of UTL Non-Current Assets is UGX.184Bn which was computed based on independent valuers reports of M/s Bageine and Company (September 2017) and Elite Realty Limited (June 2018). Adjustments were made for depreciation and disposals since the valuation date to arrive at the current estimated value. There is need for re-valuation by the Chief Government Valuer to ascertain the current market values. + +In addition, UTL has a 9.13% shareholding in a company (i.e. WIOCC) which was valued between USD.146.2 – 181.2 million, by an independent valuer commissioned by WIOCC in December 2020. The Administrator further informed me of an ongoing offer by an equity investor into WIOCC, who has valued the company at USD.171 million by the time of my verification. This would imply that the UTL shareholding of 9.13% in WIOCC, could be valued at USD.15.61 Million (i.e. approximately UGX.55.45Bn exchanged at UGX.3,551.71 for one USD), as of 30th June, 2021. This would significantly increase the value of total assets of UTL. + +There are disputes on ownership of 11 Properties worth UGX.57.5Bn between Uganda Telecom Limited (UTL), POSTA (U) Ltd, Uganda Broadcasting Corporation (UBC), and other entities. + +Government should consider resolving the disputes before liquidating the company. **iv.** Verification of Receivables + +Receivables totalling to UGX.113.65Bn were presented for verification. Due to time limitations and sensitivity of the matter, I could not verify receivables, however the process of verification had commenced under the administrator. I await the outcome of the verification exercise. + +## 6.2. + +Verification of Terminal Benefits/Pension of former Employees UPTC in Respect of Civil Appeal No. 230 Of 2013 And No.10 Of 2014 Of The Court Of Appeal Of Uganda + +I undertook a country wide verification exercise of 1,837 former employees/ claimants of the defunct Uganda Posts and Telecommunications Corporation (UPTC) in accordance with the orders of the Court of Appeal in respect to Civil Appeal No. 230 of 2013 and No. 10 of 2014. + +Below are my findings; + +The claims presented for verification in the actuarial report as at 30 th June 2020 and are summarized in the Table 31 below; + +109 + +--- + +Table 31 : Summary of claims presented for Verification + +| S/N | Entity | Total No. of Claimants | Claim Amounts as at 30 th June | +|---|---|---|---| +||<|<| 2020 - UGX | +| 1 | UTL | 1,065 | 200,444,057,531 | +| 2 UPL 348 35,249,791,537 |<|<|<| +| 3 | PBUL | 8 | 135,780,242 | +| 4 UCC 11 691,361,961 |<|<|<| +| 5 | UPTC | 71 | 9,638,276,645 | +| Total 1,503 246,159,267,916 |<|<|<| + + +I verified the claims presented and summarized the findings per entity as presented below; + +**i.** Verified Claims – UGX.213,026,888,318 + +The total verified amount of UGX.213,026,888,318 is payable to 1,254 claimants under UTL (in-Administration), Uganda Posts Limited (UPL) and the defunct UPTC as summarised in the Table 35 below; + +### Table 32 : Summary of Verified claims payable + +| S/N | Entity | Total No. of Claimants | Total claimants verified | Total Amount Verified Payable as at June 2021- UGX | +|---|---|---|---|---| +| 1 | UTL | 1,065 | 882 | 165,048,246,917 | +| 2 | UPL | 348 | 337 | 43,233,738,001 | +| 3 | UPTC | 71 | 35 | 4,744,903,400 | +|| Total | 1,484 | 1,254 | 213,026,888,318 | + + +I advised the Government to make the necessary budgetary provisions to cater for settlement of the above claims. + +**ii.** Fully Settled Claims + +Although the Actuarial report from the Privatisation Unit under the Ministry of Finance, Planning and Economic Development (MoFPED) submitted included claims from former employees of Uganda Communications Commission (UCC) and Post Bank Uganda Limited (PBUL) respectively, from the verification carried out I verified that these entities had duly settled the claims of 21 beneficiaries totalling to UGX.1,124,966,993. + +This verification gave assurance that the Government had fulfilled its obligation to the respective beneficiaries, thereby eliminating any risk of possible double payment of claims in this regard. + +110 + +--- + +### iii. + +Conflict between the legal representative and the beneficiaries + +During the audit, I obtained information relating to the fact that a section of the claimants had a disagreement with their legal advocate, allegedly from failure to remit funds received from UTL and UPL to all the claimants. UTL in Administration and UPL transferred a total of UGX.4,184,469,245 to the lawyer as part payment of their obligations. + +I advised the Ministry of Finance, Planning and Economic Development (MoFPED) and the Attorney General to take note of the conflict and ensure that the dispute is resolved before funds are disbursed to benefit the rightful claimants. + +#### 7.0. HIGHLIGHTS OF VALUE FOR MONEY AUDIT RESULTS + +7.1. Value for Money Audit on the Management of Government Investments by Uganda Development Corporation + +The Government of Uganda has committed over UGX.223.9Bn in various investment projects under Uganda Development Corporation (UDC) over the years 2016/17 to 2019/20. These investments which are highlighted as government priorities from National Development Plan (NDP I), through to NDP III, are meant to promote social and economic development and contribute to poverty eradication by increasing national and regional economic growth and development. + +The objective of the value for money audit was to assess the effectiveness of UDC processes in the management of Government Investments through planning, implementation and monitoring of such investments. + +I sampled eight (8) investment projects worth UGX. 191.5 Bn as of 30 th June, 2020 including; Soroti Fruit factory, Kigezi Highland Tea factory, Kayonza Tea factory, Mabale tea factory, Luwero Fruits factory, Moroto Cement factory, Isingiro Fruit factory and Atiak Sugar Factory. + +The following were the key findings; **i.** Project Planning + +I noted that only one out of the eight selected projects was dully subjected to the planning process representing 12.5%. The objective of the planning process is to justify investment of government funds in identified projects. As a result of ineffective planning, two projects failed to take off while there was a change of scope, cost and implementation strategy for the other five investment projects. + +111 + +--- + +UDC management should ensure that all Investment projects follow the due planning and identification processes as documented in the investment guide. This will increase on the success rate for those projects that are properly planned, identified and appraised. + +**ii.** Project Implementation + +Audit noted that UDC had not been able to have five investment projects operating at full capacity as expected representing 37.5% of the eight sampled projects. The projects faced different challenges as summarised in the table 33 below; + +Table 33 : Challenges of Project Implementation + +| S/N | Project Name | Amount Invested as at 30 th June 2020 (UGX in Bn) | Challenge | +|---|---|---|---| +| 01 | Soroti Fruit factory | 23.76 | Additional machinery was procured to cater for the user needs not identified at planning stage | +| 02 | Kigezi Highland | 14.03 | Additional funds to support raw material uptake leading to project cost-overruns | +| 03 | Mabale Tea Factory | 16.6 | Change of user needs during implementation | +| 04 | Kayonza tea factory | 14.06 | Project performance is satisfactory however, the objective of the investment decision on the part of Government is yet to be realised. | +| 05 | Atiak Sugar factory | 88.8 | Inadequate inputs to match the factory capacity | +| Total |<| 157.25 || + + +Management should improve implementation processes by ensuring that guidelines are in place, and that sufficient staffing is deployed. Additionally, the institution should lobby for a ‘Fund-based’ financing approach of the institution, instead of ‘projectised’ financing where funds are sent to UDC already tagged to an investment project to be funded. This will allow flexibility during implementation of investment projects. + +112 + +--- + +**iii.** Monitoring and Evaluation + +I noted that the oversight role in all the eight sampled investment projects had not been fully undertaken and thus, the projects were not operating at full capacity as expected. This was greatly attributed to weak governance structures and non-existing/inadequate Boards in those investment projects supported as partnership ventures. This ultimately caused delays in decision making, financing and signing of contractual agreements. + +UDC management should improve the monitoring and oversight role in the government investments by ensuring that the monitoring frameworks are established and followed- up at both management and Board levels. +Overall Conclusion + +Government has invested over UGX.200Bn in various sectors of the economy with the objective of boosting value addition mainly in the agricultural sector. There has been a noted increase in both tea and sugar production. It should however be noted that the levels of outputs and other expected benefits are not commensurate with the investments due to challenges of budgeting and planning, lack of feasibility studies and criteria for allocation of funding, inadequate contractual arrangements to clarify roles and targets and limited oversight and monitoring of investments. There is a risk of failure to achieve the intended objectives. There is still potential for improvement by ensuring UDC staffing levels are increased to undertake the above-mentioned tasks. It is also necessary to enhance autonomy for UDC by providing capitalisation instead of project related financing, so that management is flexible in allocation and re-allocate resources where they are urgently required at the time. + +## 7.2. + +A Value for Money Draft Audit Report on The Afforestation and Restoration of Selected Central Forest Reserves (CFRs) by the National Forestry Authority (NFA) + +The National Forestry Authority (NFA) was established under section 52 of the National Forestry and Tree Planting Act, 2003 (NFTPA). The objective of NFA is to manage the Central Forest reserves, expand and promote partnership arrangements, ensure equitable supply of forest and non-forest products and services and enhance organisational sustainability. + +## The country’s forest cover is managed by different stakeholders comprising; Uganda + +Wildlife Authority, National Forestry Authority and Privately owned forest plantations. + +The forest cover loss over the years from 1990 to the last biomass study in 2017 is estimated at 58.9%. Similarly, the CFR forest cover under NFA dropped from 62.5% (791,240ha) of the NFA forest cover to 45.8% (579,257ha) in the same period. This trend was contrary to Sustainable Development Goal 15 which required governments to ensure the restoration of forests and increase forest cover in line with obligations under international agreements by 2020. + +The overall objective of this audit was to evaluate the effectiveness of the measures put in place by the NFA towards the restoration and establishment of new plantations in the central forest reserves, between the period of 2016 and 2020. + +113 + +--- + +The following are the key findings from the study; + +### i. + +Restoration and establishment of new plantations + +Audit noted that management achieved 11,173ha (78%) of their planned outputs (14,277ha) for both restoration planting and establishing new tree plantations, which contributed to only 0.88% of the national forest cover (1,265,742ha) over the four-year period. + +Considering the current rate of forest restoration, it will require 75.8 years for NFA to restore the national forest cover to 62.5% of was it was in the year 1990.Similarly, even if NFA was to meet its targets of 14,277ha in the four-year period, it would still take 59.3 years to restore the CFRs to the 1990 forest cover in Uganda. + +The non-achievement of targets to restore forest cover was caused by inadequacies in the planning and budgeting process; land management; monitoring and inspections; and collaboration with institutional stakeholders. + +### ii. + +Coordination and planning in the Forest Sector + +I noted weaknesses in coordination in the regulation of activities/projects under a single mandate that impact of national forest cover. There are inconsistencies and inadequacies in mainstreaming initiatives to increase forest cover across government and private sector which has led to limited national forest coverage of 12.4% and NFA forest cover of 45.8%. + +### iii. + +Monitoring and Evaluation, and inspections. + +It was observed that out of the expected 16 monitoring reports in the four-year period ending 30th June, 2020, only 4 (25%) were prepared in the entire four-year period. In addition, NFA budgeted to receive UGX.320m for monitoring in the four years under review, however, it received UGX.91.8million (29%) of which UGX 88.8million was spent. There was limited uptake of monitoring and evaluation recommendations which led to led to destruction of the newly restored forests by encroachers. + +**iv.** NFA collaborations + +It was established that seventeen (17) MOUs were signed with different government agencies, out of the planned twenty (20), representing an 85% performance. Although these collaborations contributed to the restoration and establishment of new plantations, there were inadequacies in providing the planned quantity of seedings. + +In addition, twenty (20) Collaborative Forest management (CFM) agreements were signed with forest edge communities, out of the planned twenty-eight (28) over the last three years. There were inadequacies of; staffing, limited sensitization and coordination between the CFM stakeholders. As a result, communities were sighted to be involved in encroachment of newly restored forests in some instances. + +114 + +--- + +Key Recommendations +The National Forestry Authority should; + + + +- Engage all relevant stakeholders to ensure sustainable coordination and comprehensive planning initiatives to enhance mainstreaming efforts to increase forest cover in the country. + + + +- Improve on its collaboration and sensitization efforts with all stakeholders to protect all forest land and undertake a process of titling all gazetted forest reserves and national forests to curb illegal encroachment. The National Land Information System (NLIS) should include control measures to prevent illegal titling of gazetted forest land. + +- Continue engaging the relevant Government authorities to fast-track the revision and approval of the NFA organizational structure, to enhance the institutional capacity to manage national forests. + + + +Overall Conclusion + +Whereas the National Forestry Authority has undertaken specific interventions aimed at increasing forest cover through restoration and establishing new plantations; inadequate coordination, planning, monitoring, collaboration with communities have led to a limited increase in the NFA forest cover over the years. In some instances, increased encroachment, land encumbrances through issuance of title over the NFA land, limited community sensitization and involvement, inadequate prioritization of restoration and new forest establishment have contributed to the dismal 45.8% forest cover under NFA and national cover of 12.3%. + +It is hoped that despite the increased population that is exerting pressure on the rather limited national forest cover, the lessons learnt and recommendations will be applied to fulfil the objectives of the NFA, forest sector and country. + +## 7.3. + +A Value for Money Audit on the Implementation of the Uganda Women Entrepreneurship Programme by the Ministry of Gender, Labour and Social Development (MGLSD) + +I undertook a Value for Money to assess the extent to which the Programme achieved its intended objectives. + +The Uganda Women Entrepreneurship Programme (UWEP) is an initiative of the Government of Uganda that is aimed at empowering women to improve their income levels and their contribution to economic development; by improving their access to financial services and equipping them with skills for enterprise growth, value addition and marketing of their products and services. + +The Programme has disbursed UGX.107 Bn to 11,256 women groups, benefitting over 135,000 women, over the five-year period (2015/16 to 2019/20) in the first Phase. The + +115 + +--- + +programme through its revolving fund recovered over UGX.16 billion from the loans disbursed to the women which funds were available for financing new women groups. + +Despite the achievements registered, the audit identified the following areas that need to be addressed by the Ministry; + +- I noted that 4,185 women had benefited from the Programme under the capacity and skills development component, which translates into 42% of the desired target (10,000 women) according to the UWEP Programme document. + + + +- There were delays in disbursement of funds to the women groups. In some cases, the delays were more than 12 months from time of approval of the applications to receipt of the funds which affected the performance and success of enterprises, specifically those in the agricultural sector, which depend on the rainy seasons for planting. The delays impact on agricultural yields. + + + + + +- I noted budget cuts for women groups at the MGLSD level (TSU) with some groups receiving less than budgeted funds to implement their enterprises; however, at the Local Government level, explanations for the budget revisions were not effectively communicated to the groups; which hindered implementation of activities of women groups. + + + +- Funds to the tune of UGX 16 Bn remained idle on the recovery account in Bank of Uganda over the five years. Only 6% (UGX 963 million) of the amount had been re- disbursed; which denied the other qualifying women groups access to funds. + + + +- The MGLSD through the UWEP Technical Support Unit did not effectively plan for and coordinate implementation of the activities to facilitate women groups to access markets for their products. In addition, access to appropriate technologies were not catered for in the project design and budgets for the entire 5-year period. The intended objective of the funds disbursed may not be fully realised. + + + +- There was underfunding of monitoring and supervision activities at the Local Government level which affected the frequency of monitoring of beneficiary women groups. The programme gaps at enterprise level could not be adequately identified and corrected on time. + +- At the National level, the Technical Support Unit (TSU) undertook only 13 (43%) of the planned 30 monitoring and supervision visits to the regions throughout the five- year period. This resulted in delayed identification of performance gaps and timely remedial actions. + + + +Key Recommendations +I advised management to do the following; + + + +- Prioritize the capacity and skills development component of the Programme through increased sensitization to ensure that women groups receive the required skills to + +116 + +--- + +effectively implement selected enterprises. In addition, consider reviewing the funding programme requirements to make training a prerequisite for all groups venturing into value addition enterprises for the first time. + +- The programme implementation guidelines should be reviewed to reduce on the time taken between approval and disbursement to improve timely access to funding to the groups. All budgetary cuts should be communicated to beneficiary women groups in time. + + + + + +- The MGLSD should ensure that the funds recovered are revolved in a timely manner to benefit the intended women groups, and ensure sustainability of the Programme. + +- The MGLSD should liaise with MoFPED to mobilise funds to cater for value addition, and monitoring and evaluation activities within the programme. + + + +Overall Concluion + +UWEP exceeded its target in attracting 100,000 women beneficiaries over the five year period and managed to put in place implementation guidelines and training of beneficiaries and implementing partners. + +However, utilization of funds from the programme’ revolving fund and equipping beneficiaries with value addition and skills for enterprise growth was found to be + +## unsatisfactory and merits Management’s urgent intervention. + +The overall prospects of the programme are promising if the challenges of rationalization of the programme funding; delayed funding of beneficiaries; limited focus on skills and capacity development; inadequate coordination of partnering institutions; are addressed. + +7.4. A Value for Money Audit Report on the Management of Research Grants by Public Universities in Uganda + +Research is any type of systematic investigation, testing and evaluation whose objective is to discover new facts or information and increase the stock of knowledge. It generates new knowledge, which is critical for sustained economic growth and social transformation of Nations. + +According to Section 24(2)(a) of the Universities and other Tertiary Institutions Act, 2001 (as amended), a Public University has a function of provision of higher education, promotion of research and advancement of learning. Research is a costly activity and often relies on grants to supplement the existing financial resources. Research grants enable the research community within the Universities to thrive in knowledge sharing and to use research towards solving community-based problems. + +Owing to the different challenges in the management of research grants at public universities which is characterised by poor rankings of the universities at continental and world level, and less innovation products from the public universities, the Office of the + +117 + +--- + +Auditor General undertook an independent assessment of the management of research grants by Public Universities. + +The overall audit objective was to assess the adequacy of management of research grants in achieving grant management objectives in Public Universities in Uganda. The audit adopted a case study approach whereby 4 out of the 9 Public Universities in Uganda were considered as cases for the study, these included; Makerere University, Mbarara University of Science and Technology (MUST), Kyambogo University and Busitema University. Below is a summary of key findings and recommendations, the details are found in the subsequent part of the report; + +Key Findings + +### i. + +Institutional framework for coordination of research grants activities + +- It was noted that all the Public Universities through their respective Councils determine the research policies, research management structures and research direction of the respective Universities. There is no framework to ensure collective planning, coordination and follow-up of research efforts for the different Public Universities to ensure equitable allocation of resources, efficient utilization of academic staff, and that research results contribute to National development. + + + +- It was also established that key research and grant management policies/guidelines were missing at a number of Universities to guide on the efficient and effective management of research activities. Only MUST and Busitema had a grants management policy/manual to guide their grants management processes. Furthermore, the country lacks national regulations and guidelines for research and innovation activities including; sourcing of external grants, development and uptake of technologies and, management and commercialization of intellectual properties. +- Furthermore, the research committees for MUK, MUST and Kyambogo which are responsible for strategic planning and research direction focused more on graduate + +## students’ research with limited emphasis on university grants research. + +- It was also noted that out of the 4 Universities, only MUST had a grants office under the DRGT with dedicated staff to support grant activities. It was further noted that Busitema and Kyambogo did not have grants administrators at college/faculty level while at MUK and MUST only the college of Health Sciences and the faculty of medicine respectively had grant administrators to undertake the tasks. + + + +- The most funded area of the research agenda for MUK was health and health systems which accounted for over 50% of the funding with other areas of research getting smaller contributions. In addition, no operational processes were in place to ensure that external grants sourced by MUK & KYU staff are in line with the university’s research agenda. MUST and Busitema University did not have an approved research agenda at University level. Furthermore, the country does not have a clear research agenda to guide planning, implementation and policy making. + + + +118 + +--- + +**ii.** Resource Mobilization Initiatives + +- It was found that MUK, KYU and Busitema have established processes to centrally award competitive research grants from internally generated funds or Government support as initiatives to promote research and innovation in public universities. These processes have in turn enabled staff to seek external grants through proposal writing. The processes however have challenges. MUST on the other hand has not established such processes. + + + +- Out of the 4 universities, only MUK had a consolidated Research Innovation Fund (RIF) for research funds from government. Through continuous lobbying by MUK, government allocated UGX.30bn to the fund; the other universities have not explored this initiative. All the universities have not raised any resources internally into a separate fund for research. This was attributed to government policy of remitting all internally generated revenue into the consolidated fund and therefore appropriating funds through the annual budget process. + + + + + +- It was noted that for all the 348 grants sampled from the four (4) universities, overheads/indirect costs were not deducted from the funds spent contrary to percentage requirements in the research and grant policies of the universities. + +**iii.** Monitoring and Evaluation + +- In all the four Universities, M&E was not carried out by the university management on external research grants for the period 2017/18-2019/20. 193 out of 348 (55.5%) sampled external grants were however monitored by the donors. For internal grants, only 222 grants under MUK RIF were monitored. + + + +- It was noted that even where M&E was undertaken by donors, recommendations were not fully implemented by the Universities. +- 450 out of 512 Government funded Grants from MUK, Kyambogo and Busitema, representing 87.9% were not completed in time during the period under review. Similarly, 218 out of 350 (62.3%) Donor funded Grants from the 4 universities were not completed in time. + +Key Recommendations + + + +- The Ministry of Education and Sports should institute a committee with full representation from all public universities and supported with relevant legislation to collectively undertake strategic planning for university research in line with the National Development Plan and ensure adequate coordination between universities, follow-up of research activities, equitable allocation of resources and efficient utilization of academic staff on research. + + + +- The NCHE should introduce a standard legal framework for evaluation of management of research activities in the universities. The Universities should then take the responsibility for mainstreaming the instituted framework into their management system. Regular audits of planned university research activities vis a vis expected outputs should be undertaken. + +119 + +--- + +- The public universities should prioritize development of key research and grant management policies to guide the related processes. Benchmarking with leading universities in the region and at the continental level can be used to ease the process and ensure up-to-date policies with the changing environment. + + + +- Government and related institutions should fast track the development of policies, strategies and guidelines to promote research, technology development and, uptake and management & commercialization of Intellectual Properties (IPs) as provided for in the NDP III. + + + + + +- The public universities should have different Senate/Management committees for the different roles of governing graduate programs and students on one hand and research and innovations activities including grants management on the other hand. This would ensure adequate focus on strategic planning for research, management and follow-up of research activities at the university for timely achievement of university research objectives. + + + +- The public universities should engage with MoPS, MoFPED and MoES for support to fill the key staffing gaps for grants management and ensure that the necessary key roles such as grants administration and M&E are undertaken. + + + +- Government through the Ministry of Finance, Planning and Economic Development should prioritise funding/grants for research in public universities to enable focus on research which is in line with university research agendas and national priorities. + + + +- Government and related institutions should fast track the development of the national research agenda to guide planning, implementation and policy making as provided for in the NDP III. + +##  The Universities’ management should institute Committees to follow up and review the + +implementation of recommendations on project or grant monitoring and Evaluation for improvement in the management of research grants in the University. + +Overall Audit Conclusion + +Despite the challenges noted in the management of Research Grants, Public Universities have, achieved some notable research outputs through research grants with outstanding innovations which included; production of an electric automobile, crop protection systems, farming systems for generating biofuel, improved water treatment, low cost MakaPads for the girl child, production of energy, and secure fertilizers all at Makerere University. Mbarara University of Science and Technology (MUST) has also been able to produce traditional health care products at its Pharm-Biotechnology and traditional medicine centre, while Kyambogo produced an improved low-cost baby incubator and an online Academic Information Management System (AIMS), which is used by all public universities in the country. + +There are still bottlenecks in management of Research Grants in Public Universities which have affected achievement of the university research objectives. These included; gaps in + +120 + +--- + +the Institutional Framework for coordination of research grants, inadequate resource mobilization initiatives, inadequate implementation of research projects, lack of monitoring and evaluation framework, and absence of a joint organ to oversee and regulate research initiatives in public universities in the country. + +It is hoped that when the recommendations in this report are implemented; the universities will effectively manage research grants, thus attaining the objectives of their research agendas. + +## 7.5. + +Value for Money Audit on The Management Of MATIP-1 Markets by Municipalities + +The Government of Uganda through MATIP-1 redeveloped and reconstructed seven (7) markets at a cost of USD.64.5 million to create a conducive trade environment and increase revenue collections for the municipalities. The seven (7) markets that were redeveloped were; Mpanga market, Hoima Central market, Mbale Central market, Jinja Central market, Gulu Central market, Wandegeya market and Lira central market. + +This study assessed whether the municipalities had ensured that the redeveloped markets created a conducive trade environment and increased revenue collections for the municipalities. + +The redevelopment of the seven (7) markets resulted in an increase in the number of vendors trading in these markets from 14,826 vendors in 2015 to 19,481 Vendors in 2021 which is a growth of 31%. In addition, market management structures comprising of staff of the Municipalities as well as vendor associations were established in all the markets and supported the Municipalities in their role of managing the markets through mobilizing vendors to participate in market activities such as trainings in running small scale businesses, market cleaning, and sensitizations in market security, trade order and hygiene. + +Despite these achievements, the study noted areas that require attention if the management of these markets is to improve; + + + +- The study revealed that the annual revenue budgets or targets of all the seven (7) markets were consistently below their revenue potential by 38%. Whereas the revenue potential for the markets was UGX.32.8Bn over the 6 years reviewed, the markets only budgeted to collect UGX.12.5Bn over the period. This was attributed to lack of a management information systems and the manner in which the municipalities develop the revenue budgets based on prior year collections instead of using actual market occupancy. Unrealistically low budgets imply that the revenue performance is likely to be below the market potential. + + + +- Out of the budget of UGX.12.5Bn by these markets for the six-year period, only UGX.7.9Bn was collected representing a performance of 54%. This was due to lack of automated revenue management system, leaseholders who were not paying monthly market rents, unoccupied stalls and lockups, irregular subletting, and the failure to terminate tenancy of rent defaulters. Under collection of revenues has affected the + +121 + +--- + +ability of these markets to meet their obligations which has resulted into accumulation of arrears totalling to UGX.1.41Bn in the seven (7) markets. + +- Four (4) markets of Mbale, Gulu, Lira and Jinja were overcrowded with the vendor- occupancy exceeding the markets’ design capacity by 36% due to over allocation of market spaces, illegal traders and sub-lettees, inadequate enforcement by the municipality and design deficiencies such as poor lighting in some sections, and lack of accessibility. The overcrowding has caused congestion in the markets. + + + + + +- The majority of vendors all the seven (7) markets were not trading in the established zones due to insufficient space in zones, allocation of spaces to traders outside their designated zones, rejection of the stalls by vendors, and weak enforcement of zoning. This has resulted in a disorganised market environment which continues to present challenges for customers and traders. + + + +- All the seven (7) markets had failed to maintain adequate sanitation within the markets due to overcrowding of the markets, weaknesses in the supervision of the cleaning staff and cleaning contracts, insufficient number of garbage trucks, skips, bins, garbage banks and landfills. The poor sanitation makes the markets unsightly for the customers and poses health risks for both the traders and customers such as food contamination and air pollution. + +- The market infrastructure was not well maintained for all the markets. There were cases of leaking roofs, walls with old peeling paint, cracked floors, non-functioning toilets, failed water pumps, un-serviced generators and firefighting equipment, and non-functioning CCTV security equipment. Inadequate maintenance of the market infrastructure was attributed to failure to prioritize this activity by the municipalities, and failure to set aside maintenance funds as recommended in the market maintenance guidelines. Failure to maintain infrastructure has resulted in accelerated deterioration of the newly constructed markets. + + + +In order to address the gaps identified, the municipalities should roll out automated revenue management systems in all the markets, enforce terms of tenancy agreements in relation to sub-letting, invoicing and payment of rent, modify the market structures to allow for better lighting and improved access. The municipalities should also address the issue of illegal occupants, and develop guidelines to regulate sub-letting. + +The municipalities should review the current markets layout to address the challenges of zoning, and overcrowding. In addition, there is need to enhance supervision of market cleaning and prioritise the maintenance of the market structures. + +## 7.6. + +Prevention and Response to Incidents of Fire by Uganda Police Force. + +Directorate of Fire Prevention and Emergency Rescue Services (DFPERS) is one of the directorates in the Uganda Police Force. Its major role is to enhance capacity for prevention of emergencies and delivery of rescue services in order to deliver on its functions of fire prevention, fire suppression and emergence rescue. The directorate operates eleven (11) fire stations in Kampala Metropolitan Area and thirty-four (34) others stations across the country. + +122 + +--- + +This study assessed the extent to which DFPERS has put in place measures to prevent and respond to fire outbreaks. The Directorate of Fire and Rescue services has made notable achievements over its nine years of existence as illustrated below; + +Following the creation of DFPERS in 2012 the number of fire stations in the country has increased by thirty-one (31) which has improved access to fire services. In addition, coordination with stakeholders in preventing and responding to fire by DFPERS has improved and a total of 4,131 have been responded to in the last four years thus saving lives and property. Despite the achievements registered, the audit identified the following areas that need to be addressed. + + + +- The Directorate of Fire and Rescue Services (DFPERS) undertakes activities aimed at preventing the outbreak of fire and incidents that require emergency response. The study observed that the Directorate faced challenges in preventing the occurrence of fire. These include; + + DFPERS did not have fire and safety Act, regulations, and policies to aid the operations of the directorate in prevention. Because of this the Directorate was unable to effectively carry out risk assessment, sensitization of the public, inspection of buildings by DFPERS staff, and carry out post incident investigations as indicated below. + + DFPERS has not undertaken any comprehensive assessment of risks relating to occurrence of fire incidents in order to develop appropriate prevention and response measures/strategies to control fire outbreaks which has affected the + +## directorate’s ability to develop appropriate fire prevention strategies. + + DFPERS undertook only 873 (29%) out of the planned 3,020 sensitisations in the past four (4) years. This has continued to expose buildings and their occupants to fire outbreaks and limited the capacity of citizens to prevent the occurrence of such incidents. + + DFPERS undertook only 527 (17%) out of the planned 3,080 inspections in the past four (4) years. This affects the level of compliance to fire standards which increases the probability of fire outbreaks which can lead to loss of life and damage to property. + +The study also noted the following weaknesses on the side of the Fire department: + + + +- DFPERS did not undertake post incident investigations to ascertain the cause, extent of damage or loss from the fires and lessons for prevention of re-occurrence of similar incidents on the 3,179 incidents of fire reported during the past three years due to lack of equipment and trained investigators and coordination with other government investigative bodies. This has resulted into non-conclusion of investigations hence continued public dissatisfaction on the way Uganda Police Force handles fire investigations. + +123 + +--- + + + +- In addition to fire prevention, DFPERS responds to fire outbreaks to minimize the impact of fire on people’s lives and property. The Directorate faced challenges in responding to fire outbreaks due to limited number of fire stations, inadequate staff, lack of enough equipment and non-automation of operations to respond to fires as indicated below; + + + +- DFPERS is currently operating forty-five (45) fire stations in thirty-eight (38) districts to respond to cases of fire outbreaks across the country which is only 27% coverage of the total number of districts in the country due to the high cost of opening and + +## operating fire stations. This has resulted into DFPERS’ ineffectiveness in responding + +to incidents of fire across the country. + + + +- DFPERS currently has 599 fire staff against an approved establishment of 1,081 staff representing staffing levels of 55% implying that the current fireman to population ratio in Uganda is 1:75,000 compared to the recommended international ratio of 1:2,000. The existing staff were also not well trained and lacked adequate accommodation. + + + +- The equipment at the fire stations were inadequate in terms of quantity and functionality (not well maintained) to support effective response in the event of fire incidents. DFPERS had only 78 out of 232 equipment required to handle fire incidents representing 34% level of required equipment capacity. In addition, it was noted that firemen lacked adequate PPEs for use during fire response. + + + +- The fire stations inspected were not automated and information was recorded in manual books there were also no computers and communication systems which affected the efficiency and coherence of DFPERS response in the event of fire outbreak. +- DFPERS coordinates with some stakeholders such as Local Governments, NWSC, DGAL, CIID, Hospital emergency units, Civil Aviation Authority and Uganda Red Cross Society however this coordination is informal and characterized by slow decision making which affects response time. + +Key Recommendations + +I advised DFPER to engage the Ministry of internal Affairs to develop a comprehensive fire and safety Act, policy and guidelines in consultation with key stakeholders to streamline risk assessment, sensitisation, inspection and post incident investigations. In addition, DFPERS should enhance coordination mechanisms with internal and external players to support its operations particularly post incident investigations. + +DFPERS should prioritize increasing coverage of fire stations to at least 50% of the districts and develop strategies to ensure the population fire man ratio of 1:75,000 is matched to internationally recommended ratio of 1: 2,000. In addition, UPF should undertake an assessment of the current accommodation needs with a view of developing strategies to address the current inadequacies in accommodation. UPF should prioritise the acquisition of equipment, PPEs and automation of the current communication and record management systems to ensure that there is an effective + +124 + +--- + +response to fire incidents enhance on the operational efficiency during responses to incidents of fire outbreaks + +## 7.7. + +Value for Money Audit on the Performance of the Performance of the Agriculture Cluster Development Project + +Government has implemented the Agriculture Cluster Development Project (ACDP) with an overall objective of raising on-farm productivity, production and marketable volumes of selected agricultural commodities (Maize, Beans, Cassava, Rice, and Coffee) in twelve (12) clusters in fifty-seven (57) districts across the country. The project is funded through IDA Credit worth UGX.540Bn and farmer contribution of UGX.352.8Bn and implemented through the e-voucher management system. + +The intervention has resulted into distribution of 60,124 tonnes of beans, maize, and rice and 49,871 bags of cassava planting materials to 245,510 farmers/beneficiaries by the agro-dealers between 2018/2019 and 2020/2021. The intervention has also resulted into increased the marketable volumes from 11.94MT to 33.28MT in the past three years. + +Despite the achievements registered, the study identified areas that need to be addressed. The following key observations were noted; + +##  The project delayed to commence by 20 months’ due delays in obtaining the necessary + +approvals from cabinet and parliament (20 months) and delayed fulfilment of the project effectiveness conditions (26 months) which led to late implementation of project activities and service delivery. + + + +- Despite the project achieving more than 70% in five (5) districts in training of Local Government Staff and farmers on system use and financial literacy, the project did not perform satisfactorily in twenty-three (23) districts where twenty-seven (27) trainings had been planned. As a consequence, a number of farmers were unable to transition from the first cropping cycle to the third cropping cycle. + + + +- Out of the targeted 450,000 farmers, 204,490 (46%) farmers did not access inputs through the e-voucher system. With only one year left to the end of the project, the project may not achieve its intended objective. + + + +- The inputs that were distributed to the farmers were not verified by UNBS because of absence of a streamlined quality control process. As a result, farmers reported cases where seeds did not germinate and fertilizers that “just hardened the soils” were distributed by the Agro-dealers. This has compromised the process of ensuring farmers get the best quality inputs since the department is limited in capacity to undertake this activity. + + + +- The project did not achieve the intended targets in the three areas below in the three years of implementation. + +125 + +--- + +o Only 207 Area Commodity Cooperative Enterprises (ACCEs) (69%) and 155 Rural Producer Organisations (RPOs) (5%) have been supported with value addition facilities out of the targeted 300 ACCEs and 3000 RPOs in the six-year project life span. +o +Out of 1,835 farmers in the cooperatives that received matching grants for the value addition facilities, only 585 farmers (31.9%) were enrolled on the e-voucher system which made it difficult for the project to reach its targeted 450,000 farmers. +o The project had planned to rehabilitate a total of 2,827.7km planned road chokes however, only 228.1km (8%) had been rehabilitated representing 8% of the overall performance of the community access roads. + +Government should ensure that for future projects of a similar nature; The necessary loan documentation is submitted by the implementing entities and loan appraisal unit at MoFPED to the approving authorities in time, trainings activities are undertaken in a timely manner, farmers are mobilized into village savings and lending associations to increase access to funding and reviewing the e-voucher subsidy rates in order to make them more affordable to farmers. The role of other partner participating agencies (in this case UNBS) regarding quality is clearly defined in future project designs. + +In addition, MAAIF should ensure that evaluation of business proposals for funding of ACCEs and RPOs are done in a timely manner for the farmer groups to access funds. MAAIF should also enhance supervision in the rollout districts so that works on the road chocks are completed in the remaining project life span. + +7.8. Follow up on the Value for Money Audit on the Compensation of Project Affected Persons under the Refinery Project by the Ministry of Energy and Mineral Development + +The follow-up on the 2017 VFM audit on Compensation of Project Affected Persons (PAPs) under the Refinery Project by the Ministry of Energy and Mineral Development found that MEMD had made efforts to implement the Auditor General’s recommendations made at the time, resulting in improved RAP implementation. + +Out of the 21 key audit recommendations made in the report of 2017, 12 (57%) were fully implemented and 4 (19%) were partially implemented. The status of implementation of 5 (24%) of the recommendations can only be verified in future projects through audit of subsequent RAPs. + +Specifically, after the 2017 audit, MEMD had registered the following progress in RAP + +## Implementation: + + + +- All PAPs houses had been occupied by the respective owners; +- Electricity had been connected to all PAP houses; +- Four boreholes were constructed for use by the PAPs and the Host Community; + +##  Access roads constructed in the PAPs’ settlement area were completed and were + +motorable; + +- Construction of the places of worship and a Police Post had been completed and the structures handed over to the respective authorities; +- Construction of the community centre and market stalls was on-going. + +126 + +--- + +- MEMD had acquired land titles for the land occupied by the PAPs and was processing the transfer of the individual land titles into the names of the PAPs. + + + +Some outstanding issues noted included the following: A few pending compensation payments mostly due to failure to trace the PAPs; failure by the contractor to remedy most defects identified during the 2017 audit; reports of conflicts owing to changing social dynamics as people adapt to living in congregated settlements; and long distance from the resettlement area to the boreholes. Finally, the PAPs also reported that MEMD and other responsible players rarely conduct visits to sensitise or update them on progress of pending outputs or to explain delays. + +Further recommendations were then made with the aim of addressing the outstanding issues noted. + +## 7.9. + +VFM Audit on the Implementation of the Uganda Reproductive Maternal and Child Health Services Improvement Project (URMCHSIP) + +URMCHSIP is a USD 180 million project fully donor funded and was approved in August 2016 and is expected to close in December 2022. The target group comprises women of childbearing age, adolescents, and children under-five in all the one-hundred and thrty five (135) districts in Uganda. The Project Development Objectives (PDOs) are to: (a) to scale up reproductive, maternal, newborn, child and adolescent health (RMNCAH) services in the whole country; (b) scale-up birth and death registration (BDR) services; and (c) to strengthen disease outbreak preparedness and response. + +The audit covered twelve (12) Districts benefiting from this project in the three financial years of 2017/18, 2018/19 and 2019/20. Below are the key findings of the study; + +### i. + +Status of Implementation of the Project +It was noted that out of the 22 project performance indicators considered, 13 (i.e. 60%) achieved their target for the FY 2019/20. The remaining 9 indicators (i.e. 40%) were below their 2019/20 target. Amongst the 9 are two indicators: the number of health facilities constructed and equipped, which are not reflecting any progress due to delays in implementation. + +### ii. + +The Results-Based Financing (RBF) Program +Since January 2019 to date, the URMCHSIP has rolled out the RBF program to 1,316 health facilities in one-hundred and thirty-five (135) districts across the country in three phases. However, review of timing of RBF payments made by the Ministry of Health-to- health facilities revealed delayed payments ranging from 83 to 154 days after the prescribed deadline. Consequently, timely implementation of Performance Improvement Plan (PIP) activities at these facilities was adversely impacted. The delayed payments were partly attributed to the delayed verification of health facility outputs by the District Health Management Teams (DHMTs) which was further constrained by the reliance on manual processes. + +127 + +--- + +### iii. + +## Procurement of Essential RMNCAH Medicines and Supplies + +The project intended to support the Ministry of Health (MoH), through National Medical Stores (NMS), to procure and distribute essential Reproductive, maternal, newborn, child and adolescent health (RMNCAH) commodities. However, there have been several delays in the procurement of these commodities under the project, leaving health facilities partly incapable of handling certain complications arising during delivery. This was partly attributed to failure by the MoH to retender certain procurements, there being no bidder that initially met the requirements. + +### iv. + +## Birth and Death Notifications in Health Facilities + +There were delays in implementation of various activities by National Identification and Registration Authority (NIRA) especially (i) scaling up the electronic vital records system + +## for birth registration through the supply of laptops, MiFi’s and internet data bundles to + +285 HC IVs and High-volume Health centre IIIs. As a result, the project has made minimal improvement in capacity of these facilities to conduct birth and death notifications. + +### v. + +Monitoring and Evaluation of Project Activities +The monitoring and evaluation (M&E) function was found to be inadequate and this was partly attributed to the fact that there were no annual M&E work plans and the M&E specialist was only recruited in December 2019, two and a half years after the project had commenced. + +Overall Audit Conclusion + +The MoH is advised to continue working closely with the National Identification and Registration Authority, the District Local Governments, National Medical Stores, and the World Bank to address any capacity gaps and implementation delays that are derailing project performance. The MoH is also advised to liaise with MoFPED and other key stakeholders to guarantee the continuity of the interventions set up under this project especially the RBF Program, the increased supply of key RMNCAH medicines and supplies, the recruitment of health workers trained under URMCHSIP, so as maintain the gains made in the Health sector as a result of this project. + +128 + +--- + +## ANNEXURES + +ANNEXURE I: SUMMARY OF ENTITY FINDINGS AND OPINIONS FOR MDAs, COMMISSIONS, STATUTORY CORPORATIONS AND STATE ENTERPRISES AND PROJECTS + +| Sn SECTOR AND ENTITY SUMMARY OF KEY FINDINGS |<|<| +|---|---|---| +|| AGRICULTURE SECTOR || +| 1\. Agriculture Cluster Development Project (ACDP). 2020/21 Opinion Unqualified  Delays in the implementation of some project activities were noted such as provision of E-Vouchers subsidies to beneficiaries in the 12 clusters, only a total of 208,827 of beneficiaries used E-Voucher out of the targeted 400,000 and only 18 road chokes have been worked on in the 7 pilot districts against the targeted 90.  The project budgeted to receive UGX 361.7Bn from development partners but only received UGX 254.8Bn, representing a performance of 70% of the budget. Similarly, the project budgeted to receive UGX 4Bn as GOU counterpart funding but only received UGX 2.6Bn (66%) resulting in a shortfall of UGX 1.4Bn which is 34% of the budget.  Out the releases of funds of UGX 254.8Bn, the project remained with unspent balance of UGX 99.1Bn representing an absorption level of 61%.  I sampled 12 outputs with a total of 25 activities worth UGX.324.1Bn representing 90% of the total budget and noted that 8 outputs with 17 activities worth UGX 53.7Bn were not quantified to enable measurement of performance. Furthermore, of the 4 outputs with a total of (8) quantified activities worth UGX 80.14Bn assessed; 1 output with 1 activity representing 25% was fully implemented while 3 outputs with a total of 7 activities representing 75% were partially implemented.  The budget for the financial year 2020/21 was approved on 13th August 2020 (2 months into the financial year).  Project funds to the tune of UGX 3.5Bn were disbursed significantly late to the districts.  National Project Steering Committee (NPSC) held only one meeting as opposed to two recommended in a year.  Procurements for rehabilitation of identified and approved road chokes/work in the last 29 roll-out districts had not commenced by the time of audit despite MAAIF budgeting for the activity at UGX 90Bn.  Shortcomings were observed with the E-Voucher Management Agency which included, frequent breakdown of the system, lesser enrolment of beneficiaries ie 64% of the target, only 44% of the project beneficiaries were trained in Financial Literacy and Input use, the system was at 78% of its functional requirement, system installation, configuration, optimisation and commissioning reports have not been submitted.  MAAIF budgeted UGX.104.9Bn to provide Electronic Voucher subsidies to 293,500 beneficiaries in 12 project clusters but only managed 118,933 (41%) beneficiaries.  Farmers still had challenges in transacting using the system, managing farmer savings and use of inputs via the system. During the financial years 2019/2020 and 2020/2021, 52,089 transactions were made by users who had never logged onto the system and were accessing inputs manually. Relatedly, 2,873 user IDs initiated 7,878 payment requests |<|<| +|^|<|<| + + +129 + +--- + +|| without logging onto the system.  An analysis of E-Voucher Management Agency (EVMA) system revealed that 168,086 (99%) of the farmers that accessed inputs redeemed the inputs for only one cycle without transitioning to cycles 2 and 3, 2191 (1.3%) transitioned to cycle 2 without transitioning to cycle 3, while 47 (0.03%) transitioned to cycle 3.  In the year 2019/2020 and 2020/2021, 347 farmers ordered inputs during the financial year at amounts that were in excess of the recommended threshold of UGX.1,350,000 worth UGX.186,792,644. | +|---|---| +| 2 | Agriculture Value Chain Development Programme (AVCP). 2020/21 Opinion Unqualified |  Out of the planned twelve (12) strategic targets/goals to be achieved by financial year 2020/2021; four (4) had been fully achieved, seven (7) were partially achieved while one (1) was not achieved at all.  There was a shortfall in releases of UGX.22.84Bn which is 64% of the budget. Further, the entity remained with unspent balance of UGX.0.81Bn representing an absorption level of 94%.  I reviewed fourteen (14) outputs with a total of fifty (50) activities worth UGX.33.72Bn and noted that all the 14 outputs with a total of 50 activities were fully quantified. Further, out of the 14 outputs that were fully quantified, I observed that; 0ne (01) output with four (04) activities and expenditure worth UGX.0.547Bn was fully implemented; ten (10) outputs with forty-two (42) activities worth UGX.10.1Bn were partially implemented i.e. out of the 42 activities, 17 activities (40%) were fully implemented, 16 activities (39%) were partially implemented while 9 activities (21%) remained unimplemented. Three (03) outputs with four (04) activities were not implemented at all.  Assessment of achievement of services from implemented outputs revealed that 60 artificial inseminations (AI) Kits were purchased at UGX.0.26Bn and delivered to NAGRC in June; however, management had not yet distributed them to beneficiary AIs by November 2021 implying that the equipment was not in use for more than five months.  Relatedly, the project undertook the Purchase and Installation of Ultra- High Performance Liquid Chromatography (UHPLC) for analysis of various chemical food and environmental residues and related substances at UGX.0.39Bn which was delivered in June 2021 but was not functional by November due to incomplete components.  There was no Steering committee sitting during the year to facilitate and ensure adherence to relevant strategies established by Government during project implementation. | +| 3 | Coordinating Office for Control of Trypanosomiasis in Uganda. 2020/21 Opinion Unqualified |  The entity had an approved strategic plan, however the plan had not been certified by NPA contrary to Regulation 26 (1) of the NPA (development of plans).  All budgeted Donor revenue of UGX.0.783Bn for the financial year 2020/2021, was dully received representing performance of 100% of the target.  There was a shortfall in releases amounting to UGX.0.172Bn representing 4.1% of the budget. Furthermore, the entity remained with unspent balance of UGX.0.00037Bn representing an absorption level of 99.9%.  The entity received off-budget financing to a tune of UGX.0.783bn which was not appropriated as part of the entity budget contrary to the law.  4 outputs with 8 activities and expenditure worth UGX.0.324Bn were fully quantified while 5 outputs with 34 activities worth UGX.4.41Bn were | + + +130 + +--- + +|| insufficiently quantified. Of the 4 outputs with all 8 quantified activities worth UGX.0.324Bn assessed; 3 outputs with 4 activities worth UGX.0.19Bn were fully implemented, while 1 output with 4 activities worth UGX.0.134 was partially implemented.  All 4 quarterly performance reports were submitted after the quarterly deadline and I did not obtain evidence to confirm that the Accounting Officer prepared monitoring plans and reports.  Out of the approved staff number of 37 employees, 19 (51%) have been filled leaving a 18 (49%) vacant among which are key posts of Deputy Director, Accountant, Medical Officer, Entomology Officer, M&E Officer etc.  Contrary to the COCTU Human Resource Manual that requires operation of a medical insurance scheme to benefit all its employees, the entity has not operationalized any Staff Medical Insurance Policy for its staff. | +|---|---| +| 4 | Cotton Development Organization. 2020/21 Opinion Unqualified |  The entity cotton sub sector strategic plan had been prepared and approved; however, it was not certified by NPA to evidence its alignment to the NDP-III.  The entity budgeted to collect NTR of UGX 4.43Bn but collected UGX.1.85Bn representing a performance of 41.7% of the target.  Further, there was a shortfall in GoU releases amounting to UGX.0.015Bn representing 1.6% of the budget UGX.8.62Bn. Further, the entity remained with unspent balance of UGX.0.0179Bn representing an absorption level of 98%.  CDO received off-budget financing directly from the United Nations to a tune of UGX.36,178,924 (USD.9,923) which was not declared to treasury and, therefore not appropriated to the entity by Parliament.  I reviewed all 8 out-puts of the budget with a total of twenty one (21) activities and expenditure of UGX.8.46Bn and noted that two (2) outputs with two (2) activities and expenditure worth UGX.4.2Bn were fully quantified, four (4) outputs with a total of thirteen (13) activities and expenditure worth UGX.3.3Bn were insufficiently quantified that is out of the thirteen (13) activities, four (4) activities (30.8%) were quantified and nine (09) activities (69.2%) were not clearly quantified to enable assessment of performance while two (2) outputs with a total of six (6) activities and expenditure worth UGX.0.92Bn were not quantified at all. Further, of the 2 quantified outputs/activities assessed, 1 output with one (1) activity and expenditure of UGX.5.6Bn was fully implemented while 1 output with 1 activity worth UGX.3.6Bn was partially implemented.  Submission of performance reports for three quarters was made after the deadline dates and there was no evidence to confirm that the Accounting Officer Prepared Monitoring Plans and reports which are important in ensuring that the budget performs as expected.  It was noted that UGX.19.649Bn was budgeted to cater for the cotton marketing season 2020/21 out of which, UGX.15.154Bn was budgeted towards provision of planting seed and production inputs. Government was able to contribute only UGX.8.6Bn leaving the balance for the private partner intervention. This is an indication that government is relying more on the ginners to fund the cotton sector. Despite the intervention by the private sector, there were shortages in provision of inputs to farmers. 866 Mt of planting seed, 374.6 Mt of fertilizers and 2,260 spray pumps were not provided as projected in the strategic plan which directly affected the performance of the sector in achieving the desired cotton production | + + +131 + +--- + +|| targets.  Analysis of the domestic arrears showed an increase of 198% from UGX.7,925,963 in the prior year to UGX.23,659,951 in the year under review.  CDO staff structure had thirty seven (37) positions dully filled leaving a staff vacancy of ten (10) positions (21%). The positions that have remained vacant over the years include key positions of two (2) Agronomy officers, a classifier and a Personnel & Administration Officer.  Withholding tax to the tune of UGX.83,142,447 from payments worth UGX.839,194,850 was not recovered for onward remittance to URA contrary to section 120(1) and 120(4) of the Income tax Act. | +|---|---| +| 5 | National Agricultural Research Organization 2020/21 Opinion Unqualified |  The entity’s draft strategic plan had been aligned to the NDP-III at the time of audit and was awaiting certification from NPA due to delayed approval of the Programme Implementation Action Plans (PIAPs).  The entity budgeted to collect NTR of UGX.4.625Bn but collected UGX.3.053Bn representing a performance of 66% of the target.  There was a shortfall in GoU releases amounting to UGX.11.216Bn representing 10.1%. Further, the entity remained with unspent balance of UGX.0.085Bn representing an absorption level of 99.9%.  The entity received off-budget financing directly from development partners to a tune of UGX.49.77Bn out of which only UGX.38.19Bn was declared to the PSST and disclosed in the entity ministerial policy statement without a supplementary appropriation for the balance of UGX.11.58Bn.  I sampled 8 outputs with 35 activities and expenditure of UGX.99.59Bn and noted that 7 outputs with 18 activities and expenditure worth UGX.45.070Bn were fully quantified while 1 output with 17 activities and expenditure worth UGX.54.52Bn was insufficiently quantified, of which 5 activities (29%) were quantified while 12 activities (71%) were not clearly quantified to enable measurement of performance. Further, I observed that out of the seven (7) outputs that were fully quantified, two (2) outputs with five (5) activities and expenditure worth UGX.5.186Bn were fully implemented while Five (5) outputs with thirteen (13) activities worth UGX.39.884Bn were partially implemented i.e. four (4) activities were fully implemented, eight (8) activities were partially implemented, while one (1) activity remained unimplemented.  Submission of performance reports for all the quarters was made after the deadline dates.  Fourteen (14) slow progressing competitive grant scheme (CGS) projects initiated in 2018/19 with funding of UGX.1.158Bn during the financial year 2020/2021 were still on-going despite expected completion date of June 2021.  Civil works and Supplies Projects worth UGX.32,051,565,938 undertaken during the financial year were not yet handed over for use. Further, inspections of NARO facilities at institutes revealed poor road networks, broken down silos at the feed mill, non-functional water pump and abandoned works.  There was failure to achieve the intended service delivery for the additional Civil Works at Rwebitaba ZARDI that costed UGX.418,584,880. This was due to lack of equipment in the laboratory.  Review of 9 sample procurements worth UGX.27,606,866,233 revealed an | + + +132 + +--- + +|| average delay of 45 days in the procurement process due to late release of funds by MoFPED.  The entity received Covid 19 supplementary budget of UGX.0.0134Bn for settlement of arrears which was all spent by the entity representing an absorption level of 100%. It was noted that this was inadequate for settlement of domestic arrears brought forward from the previous year 2019/20 given leaving a deficit of UGX1.69Bn (98%).  Domestic arrears increased from UGX.1.72Bn in the previous year to UGX.2.875Bn in the year under review, an increase of 67%. The arrears remained unsettled at the close of the year. Further, NARO did not budget for domestic arrears amounting to UGX.1.687Bn during the year as a paltry provision of only UGX.0.033Bn was budgeted to settle arrears of UGX.1.72Bn.  A review of NARO’s land portfolio revealed that the entity had surveyed 31 pieces of land with total coverage of 4097.20364 Hectares, however it was noted that 8 pieces (3172.937 Hectares) were titled, 20 pieces of land (706.75454 Hectares) were at deed plan stage and 3 pieces of land (217.5121 Hectares) were still at survey report stage. Further, 17 parcels of land located in NaFIRRI-Jinja, Bulindi-Kibaale district, NaLIRRI- Tororo, Namayingo, Nyakyesasa, Ngetta- Kitgum and Rwebitaba-Fort-portal still had cases of encroachement by both private and public developers.  A review of the NARO staff establishment revealed that out of the approved staff number of 995 employees, 851 positions have been filled leaving a staffing gap of 144 (14.5%) staff which indicates a further reduction in staff by about 2.5% compared to the previous financial year. | +|---|---| +| 6 | National Animal Genetics and Data Bank (NAGRIC) 2020/21 Opinion Unqualified |  The entity strategic plan had been aligned to the NDP-III at the time of audit but it was still in draft form awaiting certification from NPA before approval.  The entity budgeted to collect NTR of UGX.1.550Bn but collected UGX.3,872,073,899 representing a performance of 250% of the target.  There was a shortfall in GoU releases amounting to UGX.4.7Bn representing 6.21%. Further, the entity remained with unspent balance of UGX.0.47Bn representing an absorption level of 99.3%.  41 out-puts with a total of ninety-five (95) activities representing 100% of the total budget and noted that 6 (14.6%) of the total outputs were not quantified while 7 (17%) outputs with a total of seventeen (17) activities were insufficiently quantified. Further, of the 28 quantified outputs/activities assessed, 4 outputs with eight (8) activities representing 9.7% were fully implemented; 10 outputs with 20 activities representing 24.3% were partially implemented while 14 outputs with 30 activities representing 34.1% were not implemented at all.  Submission of performance reports for all the quarters was made after the deadline dates. Furthermore, inconsistences were noted in the reported performance where management reported procurement of poultry feeds, drugs and vaccines for poultry on NAGRC & DB Centre farms instead of the planned activity of rearing of 5,000 Indigenous poultry genetic resources sourced on Aswa ranch in Pader District.  NAGRC&DB had a COVID 19 arrears supplementary budget of UGX.0.066Bn all of which was warranted and spent representing 100% of the budget absorption.  Letters of Credit worth UGX.21.850Bn which expired on 31st December 2020 were renewed to 31st December 2021 leading to nugatory | + + +133 + +--- + +|| expenditure of UGX.0.54Bn. By 30th June 2021, prior year LCs worth UGX.10.875Bn were still outstanding.  12 project sites whose contracts total to UGX.20.055Bn out of which UGX.6.327Bn had been paid were abandoned while 8 delayed and remained incomplete by 30th June 2021.  34 contracts for construction of structures, procurement of land and delivery of supplies worth UGX.34.4Bn out of which UGX.11.451Bn was paid had not started. Out of the 34 contracts, 3 service providers who had been fully paid a sum of UGX.7.45Bn had not delivered.  640 acres of planted pasture/ fodder in Kasolwe ranch had dried up adversely affecting the quality and quantity of feeds for the animals.  Domestic arrears increased by UGX.0.918Bn from UGX. 0.336Bn in the previous year to UGX.1.254Bn in the year under review. The arrears remained unsettled at the close of the year.  Out of 12 ranches managed by NAGRC & DB, 6 had been encroached on while some of the NAGRC & DB land had no land titles in the names of NAGRIC 7DB.  NAGRC & DB had an approved staff structure of 189 positions with only 105 (56%) filled leaving 84 (44%) vacant and 17 positions were filled beyond the approved structure. Further, general support staff structure of 128 positions had 310 staff resulting in an over staffing of 142 (185%). | +|---|---| +| 7 | National Oil Palm Project 2020/21 Opinion Unqualified |  Out of seven (7) strategic targets to be achieved by 30th June 2021, none had been fully achieved, two (2) were partially achieved while five (5) were not achieved at all.  The Project budgeted to receive IFAD funds to a tune of UGX.39.87bn, out of which UGX.25.584bn was available representing a performance of 64% of the budget. Further, there was a shortfall in GoU releases amounting to UGX.0.035Bn representing 0.46% of the budgeted UGX.7.597Bn.  Out of the total available funding of UGX.35.528Bn during the financial year, UGX.28.415Bn was spent by the entity resulting in an unspent balance of UGX.7.113Bn representing an absorption level of 80%.  I sampled Six (6) outputs with a total of eighty one (81) activities and expenditure of UGX.21.6231Bn and noted that all six (6) outputs with 81 activities were fully quantified to enable assessment of performance. Further, assessment of the implementation of all Six (6) outputs revealed that; all six (6) outputs with eighty one (81) activities were partially implemented i.e. out of the eighty one (81) activities, thirty two (32) activities (40%) were fully implemented; thirty (30) activities (37.5%) were partially implemented, while nineteen (19) activities (12.5%) remained unimplemented.  Two (2) contracts worth UGX.12.397Bn in relation to construction of landing sites were cancelled due to delayed implementation of projects beyond 12 months from the initial intended completion date.  I noted delayed titling of 883.92 hectares of the acquired nucleus estate Land exposing it to risks of encroachment by individuals.  Review of four (4) sample procurements worth UGX.1.47Bn revealed an average delay of 140 days in the procurement process majorly as a result of delayed approval process by IFAD, contracts committee and Solicitor General. | + + +134 + +--- + +| 8 | Strengthening National Seed Certification Service Project (SNSCS). 2019/2020 Opinion Unqualified |  Out of the planned six (6) strategic targets/goals to be achieved, none was either fully or partially achieved and one target was not even quantified to enable assessment.  SNSCS planned to receive and spend UGX.2.59bn from AGRA out of which UGX.1.099bn (42%) was received leading to a funding gap of UGX.1.49bn (58%). Further, out of the total receipts for the financial year of UGX.1.099Bn, UGX.0.05Bn was spent by the entity resulting in an unspent balance of UGX.1.049Bn representing an absorption level of 4.5%.  Out of the nine (9) outputs with a total of twenty eight (28) activities and expenditure of UGX.0.0498Bn reviewed; five (5) outputs with sixteen (16) activities and expenditure worth UGX.0.0498BN were fully quantified whereas four (4) outputs with a total of twelve (12) activities and nil expenditure were insufficiently quantified.  I assessed the implementation of the five(5) outputs that were fully quantified with a total of sixteen(16) activities worth UGX.0.0498Bn and noted that one (1) output with 5 activities worth UGX.0.0498Bn was partially implemented. Out of the 5 activities, the entity fully implemented one (1) activity (20%) while 4 activities (80%) were not implemented. Four (4) outputs with a total of eleven (11) activities and nil expenditure were not implemented at all.  Management did not prepare periodic performance reports and therefore I was unable to clearly assess the actual performance against the planned outputs. | +|---|---|---| +| 9 | Strengthening National Seed Certification Service Project (SNSCS). 2020/21 Opinion Unqualified |  Out of the planned six (6) strategic targets/goals to be achieved by 30th June 2021, one (1) target was fully achieved, three (3) targets had been partially achieved and two (2) were not achieved at all.  The Project budgeted to receive UGX.1.184bn out of which UGX.1.049bn was received resulting into a shortfall of UGX.0.135bn, which is 11% of the budget. Further, out of the total warrants of UGX.1.049Bn received during the financial year, only UGX.0.199Bn was spent by the entity resulting in an unspent balance of UGX.0.85Bn representing absorption level of 19%.  I sampled five (5) outputs with 15 activities worth UGX.0.199Bn and noted that three (3) outputs with a total of seven (7) activities and expenditure worth UGX.0.199Bn were fully quantified; Two (2) outputs with a total of eight (8) activities were not quantified at all. Further, of the three quantified outputs assessed, one (1) output with 3 activities worth UGX.199, 045,000 was partially implemented. Out of the 3 activities, one (1) activity was partially implemented, while two (2) activities remained unimplemented. Two (2) outputs with four (4) activities worth NIL expenditure were not implemented.  AGRA amended the disbursement of Grant due to low absorption and decided to de-obligate US$.571,167 being the total un-disbursed funds for the project thus necessity to restructure the budget and milestone delivery plan to fit within US$.323, 450 that had been disbursed.  Contrary to the grant guidelines, unspent or un-committed grant funds remained on the project bank account and were not invested in highly liquid investments to earn income.  A number of project milestones had not been achieved by the end of the financial year exposing the Grant to a risk of failure to achieve its objectives. | + + +135 + +--- + +| 10 | The Uganda Multi-Sectoral Food Security and Nutrition Project. 2020/21 Opinion Unqualified |  Out of the planned fourteen (14) strategic targets/goals to be achieved by financial year 2020/2021; ten (10) (71%) had been fully achieved while four (4) (29%) were partially achieved.  There were excess receipts worth UGX.4.154Bn as a result of the project design where the withdrawal of funds from the Donor is made on a six (6) months projection which is 25% of the budgeted UGX.16.610Bn. Further, there was a shortfall of UGX.0.06Bn in GOU co-funding out of the budgeted UGX.0.755Bn which is 8% of the GOU budget.  I noted that out of the total available funds of UGX.20.764Bn, only UGX.11.267Bn was spent by the project resulting in an unspent balance of UGX.9.497Bn representing an absorption level of 54.26%.  I reviewed seven (7) outputs with a total of forty (40) activities and expenditure of UGX.11.267Bn for assessment and noted that all the 40 activities were fully quantified. Further, assessment of the implementation of the seven (7) outputs revealed that; Two (2) outputs with eight (8) activities and expenditure worth UGX.1.771Bn were fully implemented while five (5) outputs with thirty two (32) activities worth UGX.9.496Bn were partially implemented i.e. out of the thirty two (32) activities, the entity fully implemented nineteen (19) activities (59%), ten (10) activities (31%) were partially implemented, while three (3) activities (10%) remained unimplemented.  An assessment from a sample of out-puts that were implemented during the year revealed shortcomings ie funds remitted to 1500 primary schools had not been utilized since they did not procure the required inputs for planting and multiplication (seedlings), the local Micro Nutrients rich crop Planting Materials for 3000 parent group Members and Herbicides & Pesticides.  Field inspections revealed that nutrition supplements such as the Iron and Folic Acid and Zinc expired in April and December 2020 respectively before they could be utilised by the beneficiaries causing loss of Government funds hindering the achievement of the intended objective. | +|---|---|---| +| 11 | The Regional Pastoral Livelihoods Resilience Project. 2020/21 Opinion Unqualified |  Out of the planned fourteen (14) strategic targets/goals to be achieved by financial year 2020/2021; six (6) had been fully achieved, five (5) were partially achieved while three (3) were not achieved at all.  There was a shortfall in releases from the donor of UGX.13.788Bn which is 30% of the budget. The project budgeted to receive UGX.0.3Bn GOU funding all of which was availed. Further, the entity remained with unspent balance of UGX.15.172Bn representing an absorption level of 54%.  I reviewed all the eleven (11) outputs with a total of twenty six (26) activities and expenditure of UGX.17.71Bn and noted all were fully quantified. Further, assessment of the level of implementation for the 11 outputs revealed that five (5) outputs with nine (9) activities and expenditure worth UGX.0.765Bn were fully implemented while the six (6) outputs with seventeen (17) activities worth UGX.16.945Bn were partially implemented i.e. out of the seventeen (17) activities, the entity fully implemented seven (7) activities (41%); five (5) activities (29%) were partially implemented, while five (5) activities (29%) remained unimplemented.  Assessment of achievement of services from implemented outputs revealed that although the Livestock marketing Information System is in place, it lacks up to date information for the beneficiaries implying that it | + + +136 + +--- + +|| may not be regularly used.  Contract works for the valley dams which are the critical infrastructure for the long term sustainability of the project are past the completion time and works are still significantly behind schedule despite contractors having been paid substantial percentages of the contract sums  Shortcomings were noted on reliability of the market information data system designed to track information such as prices, tradeable volumes, diseases concerning livestock for use by famers such as failure to input market information data into the system since October 2019, lack of a designated system administrator that is responsible for managing and updating the system at the Ministry and lack of a system manual that provides standard guideline for the system use.  There was no Steering committee sitting during the year to facilitate and to ensure adherence to relevant strategies established by Government during project implementation. | +|---|---| +| 12 | Dairy Development Authority. 2020/21 Opinion Unqualified |  DDA’s dairy strategic plan had been prepared, approved and certified by NPA to evidence its alignment to the NDP-III.  The entity budgeted to collect NTR of UGX.3.9Bn but collected UGX.3.9Bn representing a performance of 100% of the target and all the budgeted GOU funds worth UGX.10.02Bn were warranted, without a shortfall.  The entity remained with unspent balance of UGX.2.07Bn representing an absorption level of 79.3%.  DDA directly received off-budget financing to a tune of UGX.0.63Bn from Fleming fund country grant II but it was never declared to the PSST and as such not appropriated to the entity by parliament.  I sampled 4 outputs for review with a total of twenty four (24) activities and expenditure of UGX.3.8Bn and noted that One (01) output with four (04) activities and expenditure worth UGX1.1Bn was insufficiently quantified, that is, one (01) activity (25%) was quantified while three (03) activities (75%) were not clearly quantified to enable assessment of performance. Three (03) outputs with a total of twenty (20) activities and expenditure worth UGX.2.7Bn were not quantified at all. Further, I assessed the implementation of one activity that was quantified and noted that the Rehabilitation of Kyegegwa and Katakwi Milk Collection Centres(MCCs) was partially implemented.  Submission of performance reports for the four quarters was made after the deadline dates and there was no evidence to confirm that the Accounting Officer prepared Monitoring Plans and reports which affect timely tracking and evaluation of performance.  Analysis of the domestic arrears showed new arrears incurred during the year under review to the tune of UGX.0.178Bn. Further, I noted that there was no budget provision for settlement of these arrears in the year under review.  I noted that the entity lost fixed assets through theft which included fifteen (15) desktop computers, two (02) laptop computers, a projector, a router, and cameras but they were not disclosed in the financial statements.  The Authority has failed to collect CESS revenue compensation from MoFPED contrary to the presidential directive requiring the same.  DDA is understaffed by seventy seven (77) posts out of one hundred and forty (140) posts which is 55% understaffing. The unfilled posts include | + + +137 + +--- + +|| key positions like Head of internal audit, Director Finance and Administration, Planner, Regional managers, Principal Dairy Development Officers and Dairy inspectors. Some posts have remained vacant since 2003. | +|---|---| +| 13 | National Agricultural Advisory Services (NAADS). 2020/21 Opinion Unqualified |  The entity had prepared the strategic plan; but there was no approval and certification of the same by NPA to evidence alignment to the NDP- III at the time of audit.  Out of the budgeted NTR of UGX.3.587Bn, the Authority collected only UGX.0.12Bn, representing a performance of 3.3% of the target. There was 100% performance in GoU releases amounting to UGX. 243.9Bn. Further, NAADS remained with unspent balance of UGX.0.06Bn representing an absorption level of 99.9%.  I sampled four (04) outputs with a total of twenty five (25) activities and expenditure of 184.4Bn and noted that two (02) outputs with a total of three (03) activities and expenditure worth UGX.43.19Bn were fully quantified while two (02) outputs with a total of twenty two (22) activities and expenditure worth UGX.141.19Bn were insufficiently quantified i.e. out of the twenty two (22) activities, fourteen (14) activities (64%) were quantified while the balance of eight (08) activities (36%) were not clearly quantified. Further, assessment of the implementation of the two (2) outputs that were fully quantified with a total of three (03) activities revealed that none was fully implemented.  Assessment of one partially implemented output revealed that out of 3,010,000 hand hoes, only 2,500,000 hand hoes were procured and distributed to the Northern parts of the country instead of the planned vulnerable rural small holder farming households across the country.  Submission of performance reports for all quarters was made after the deadline dates. Furthermore, I did not obtain evidence to confirm that the Accounting Officer Prepared Monitoring Plans and reports.  NAADS incurred huge LC charges to a tune of UGX.1.053Bn as a result of opened LCs worth UGX.71.25Bn for contracts that failed to deliver within the year. Further, I noted LCs worth UGX.23.13Bn that failed to perform for a period of more than two (2) financial years with one of UGX.2.071Bn for milk coolers outstanding for more than 4 years.  Review of the Kasese industrial park Agri-LED intervention worth UGX.3.9Bn revealed allocation of land to a bus company contrary to the set objectives and delayed payment of NWSC to connect piped water.  Review of the sugarcane production project implementation with investments of UGX.85Bn revealed shortcomings i.e.lack of feasibility assessment, lack of accruing benefits to the beneficiaries, weaknesses in the MoU signed with beneficiaries, limited information on members of the cooperatives, delays in contract completions, pending liquidated damages, and stalled activities.  I noted failure to enter into MOU’s with beneficiaries of milk coolers contrary to the selection criteria of the standing orders of procedure for operation wealth creation.  There was lack of clearly identified beneficiaries from the start in the transportation and distribution of hoes intervention, lack of MOU’s with delegated DLGs on distribution modalities and nugatory storage costs.  Review of the tractor strategic intervention revealed lack of assessment of potential beneficiaries and non-adherence to the terms of the MoU thus risks of beneficiaries without the capacity to manage the tractor for | + + +138 + +--- + +|| farming practice or as an enterprise.  NAADS had a Covid 19 arrears supplementary budget of UGX.17.84Bn all of which was warranted and absorbed. Further, review of utilisation revealed failure to settle long outstanding payables, appropriation in excess of requirement and diversion of Covid 19 relief funds worth UGX.10.032Bn from the settlement of domestic arrears to settlement of current year bills without seeking and obtaining the necessary approvals  A trend analysis of the domestic arrears showed an increase of UGX.7.085Bn (53.6%) from UGX.13.23Bn in the previous year to UGX.20.31Bn that remained unsettled at close of the year with arrears of UGX.0.162Bn relating to previous financial years.  Funds worth UGX.2.15Bn were irregularly diverted from the activities on which they were budgeted and spent on other activities without seeking and obtaining the necessary approvals  I noted long outstanding receivables of UGX.2.38Bn relating to cash balances and accountabilities that remained at the DLG at the time of restructuring thus casting doubt on their recoverability.  Review of the procurement function revealed shortcomings such as delayed supplies and unjustified extensions and non execution of performance security.  I noted that NAADS has an approved staff structure of 56 positions out of which 53 (94.6%) positions are filled. Key among the vacant posts is Manager Finance and Administration and Zonal Agricultural Development Officer. Further, I noted temporary appointments of six (6) staff for the sugarcane field based team for 30 months contrary to the recommended 12 months as stipulated in the regulations. | +|---|---| +| 14 | Ministry of Agriculture, Animal, Industry and Fisheries (MAAIF). 2020/21 Opinion Unqualified |  I noted that the Ministry had prepared the Agro-Industrialization (AGI) Programme as a strategic plan for 2020/21-2024/25 that is aligned to the NDP-III and according to the certificate of compliance for the FY 2020/21 annual budget, the overall Agro-industrialization programme budget was scored at 63.5% compliance to the NDP-III.  There was a shortfall in NTR collections amounting to UGX.6.82bn representing 76% and a shortfall in GOU releases amounting to UGX.24.1Bn representing 14%. Further, out of the total warrants of UGX.151.2Bn received, UGX.146.95Bn was spent by the entity resulting in an unspent balance of UGX.4.24Bn representing absorption of 97%.  The Ministry received off-budget financing to a tune of UGX.1.78Bn that was not appropriated as part of the entity budget contrary to the law.  I sampled sixty-five (65) outputs with a total of one hundred and sixty- seven (167) activities and expenditure of UGX.98.2Bn for assessment. I noted that; sixty-one (61) outputs with a total of one hundred and sixty (160) activities and expenditure worth UGX.89.6Bn were fully quantified while four (4) outputs with a total of seven (7) activities and expenditure worth UGX.8.6Bn were not quantified at all to enable assessment of performance. Further, I assessed all the quantified 61 outputs and noted that; 34 outputs with a total of 75 activities worth UGX.39.1Bn were fully implemented and 27 outputs with a total of 85 activities worth UGX.50.5Bn were partially implemented i.e. out of the 85 activities, the Ministry fully implemented 39 activities (46%), partially implemented 44 activities (52%) while 2 activities (2%) remained unimplemented.  I noted failure of timely interventions to combat the foot and mouth disease (FMD) outbreak as a result of challenges faced in the | + + +139 + +--- + +|| procurement of vaccines despite the availability of funds. The Ministry faced challenges as only 500,000 doses were delivered out of the procured 700,000 doses from the prior year and these came 4 months after expected delivery. Further, none of the procured 2,311,000 doses procured in May 2020 were delivered within the contract period despite the emergency situation and by the time of audit, the contract had not fully performed with 611,000 doses outstanding.  Shortcomings were noted in the management of the Ministry Public Investment Plan (PIP) Projects in regard to compliance with the Development Committee Guidelines 2016 and the budget execution circular 2020/2021. I noted incomplete approvals for Projects, non- adherence of Projects with appraisal Guidelines, ongoing projects after expiry of project duration and irregular and excessive spending on recurrent Items  Domestic arrears decreased by 14% from UGX.12.96Bn in the prior year to UGX.11.13Bn in the year under review. Further, a paltry UGX.2.42Bn budget provision was provided for settlement of domestic arrears in the current year budget.  All documents pertaining to Contingency fund activities and transfers to agricultural institutions during the year worth UGX 11.95Bn were submitted to the IGG for investigations and I was unable to confirm whether the amount involved was applied to the intended purpose.  Management did not undertake monthly wage and pension performance analysis to reconcile the payroll generated through the IPPS with the payment information from the IFMS as required resulting into delays in granting clearance to recruit, inefficient wage and pension payroll management, accumulated arrears and non-absorption of pension and gratuity budget.  Out of 919 approved staffing positions, only 595 had been filled and the rest of the positions (324) were vacant representing 35% staffing gap. Among the vacant were key positions such as directors, commissioners, assistant commissioners and principals in core directorates and noticed management’s failure to undertake timely recruitments despite availability of funds. | +|---|---| +| 15 | Uganda Coffee Development Authority (UCDA). 2020/21 Opinion Unqualified |  The entity had prepared the coffee strategy; but there was no approval and certification of the strategic plan by NPA to evidence alignment to the NDP-III at the time of audit.  Out of the budgeted NTR of UGX.27.5Bn, the Authority collected only UGX.20.1Bn, representing a performance of 73% of the target.  There was a shortfall in GoU releases amounting to UGX.5.8Bn representing 3.1% of the budgeted UGX.186.3Bn. Further, the entity remained with unspent balance of UGX.9.391Bn representing an absorption level of 94.8%.  The Authority received off-budget financing worth UGX.443M which was never declared to the PSST and as such no supplementary appropriation was issued as guided by the PSST.  I sampled eight (08) outputs with a total of sixty two (62) activities and expenditure of UGX.150.6Bn and noted that one (01) output with a total of four (04) activities and expenditure worth UGX.2.1Bn was fully quantified; three (03) outputs with a total of fifty four (54) activities and expenditure worth UGX.67.1Bn were insufficiently quantified i.e. out of the fifty four (54) activities, forty nine (49) activities (91%) were quantified while the balance of five (05) activities (9%) were not clearly | + + +140 + +--- + +quantified and four (04) outputs with a total of four (04) activities and expenditure worth UGX.81.3Bn were not quantified at all. Further, assessment of the implementation of the one (01) output that was fully quantified with a total of four (04) activities revealed that it was partially implemented i.e. out of the four (4) activities, the entity fully implemented three (03) activities (75%) while one (1) activity (25%) remained unimplemented. + +- Submission of performance reports for three quarters was made after the deadline dates. Furthermore, I did not obtain evidence to confirm that the Accounting Officer Prepared Monitoring Plans and reports. + + + +- Review of the distribution lists (form Bs) attached to the accountabilities for coffee seedlings supplied revealed that deliveries to a tune of UGX.0.213Bn were made either out of season or towards season end thus rendering the survival of the inputs nearly impossible. + + + +- Fertilizers worth UGX.2.25Bn distributed to the cooperatives were unacknowledged by the intended coffee farmers. The form F3’s where the actual farmers who received the fertilisers were supposed to have acknowledged had not yet been received and verified by management and neither had the cooperatives returned the empty fertiliser bags and filled in form F4’s. + + + +- 65,445 and 1880 bags of fertilisers for the western and Elgon region respectively had not yet been distributed at the time of inspection in September 2021 contrary to section 7 (a) of the fertiliser distribution guidelines that required application of fertilisers to only be done in the rainy season. + + + + + +- Field inspection of the procured fertilizers and materials to support the establishment of CWDR nurseries revealed several anomalies i.e. bad warehousing storage (stacked high on the floor, instead of pallets), lack of aeration and non-adherence to first in first out (FIFO) policy. Further, the nurseries for CWDR had not been setup and materials were simply kept in stores by the beneficiaries and some had started using the implements such as hoes, pangas, wheel burrows; mother gardens were poorly maintained and no labels of the lines had been added to the mother gardens. + + + +- UCDA had a Covid 19 arrears supplementary budget of UGX.73Bn all of which was warranted and absorbed 100%. Review of utilisation revealed doubtful payments, duplicated arrears on verified list and witting down of invoice amounts without supplier consent which exposes the entity to litigation + + + +- Domestic arrears showed a movement in arrears from UGX.120,383,249,500 in the previous year to UGX.23,036,904,150 by the close of the financial year 2019/20, representing a decrease of 80.8%. Out of this, amount UGX.16,699,179,350 was incurred during the year under review. + + + +- A total of UGX.80,373,239,334 (43.1% of the approved budget) was provided for settlement of domestic arrears, however, arrears worth UGX.125,407,367,170 were paid resulting in settlement of prior year domestic arrears worth UGX.45,034,127,836. + + + +- Review of the procurement function revealed several shortcomings such as delays in the procurement process with an average delay period of 2 and a half months, failure to deliver within contractual timelines, un- deducted liquidated damages, inconsistent liquidated damages clauses and deviation from Ministry of Works specifications for vehicle + +141 + +--- + +|| procurement leading to higher purchase and maintenance costs.  UCDA undertook new recruitments in the year which have increased staffing levels to only 147 (66%) positions leaving 77 (34%) positions vacant. Among the vacant posts are key positions i.e. Board Secretary/Director of Corporate Services, three (3) Regional managers, Accountants (2), one (1) procurement manager, thirty eight (38) regional coffee extension officers and three (3) Regional Coffee Technical officers among others.  I noted irregular extension of contracts for staff at managerial level without explicit board approval contrary to section 5.3(c) of the UCDA Human Resource manual (2018) and staffs in acting capacities longer than the stipulated time periods in the Human Resource Manual i.e. not more than two terms of six (6) months. | +|---|---| +| 16 | Uganda Seeds Limited. 2019/20 Opinion Qualified |  A receivable of UGX.1,147,910,181 (17% of the total assets) could not be supported as there was no evidence to confirm the accuracy, existence and completeness of the reported balance.  Management of USL did not make adequate disclosures regarding what is included in the capital and revaluation reserves.  UGX.11,205,053 relating to the expenses for the year ended 30th June 2020 was unsupported.  I noted that a disposed of motor vehicle was still maintained in the financial statements and asset register for the period.  Previously issued financial statements have been restated for the correction of material misstatement in the previous period. | +|| JUSTICE, LAW AND ORDER SECTOR || +| 1 | Directorate of Government Analytical Laboratory (DGAL). 2020/21 Opinion Unqualified |  Out the total receipts for the financial year of UGX.24.684Bn, only UGX.15.630Bn was spent by the entity resulting in an unspent balance of UGX.9.054Bn representing an absorption level of 63.3%.  I noted that of the 39 activities worth UGX.6.23Bn assessed, only 18 activities worth UGX.1.55Bn were fully implemented, 20 activities worth UGX.4.68Bn were partially implemented and one 1 activity worth UGX.8.46Bn was not implemented.  An assessment of service delivery revealed that Mbale and Moroto regional laboratories were supported with UGX.0.132Bn to carry out forensic analysis, however the performance the regional labs was assessed as low as both laboratories did not complete any cases during the year.  Although, DGAL had a strategic goal to eliminate all case back-logs by 30th June 2021, the forensic case backlog had only reduced by 58.3% from 5,559 cases in June 2018 to 2,317 outstanding cases as at 30th June 2021.  Despite receiving UGX.8.625Bn for the construction of a DNA databank during the year, the planned construction did not take place and UGX.8.465Bn was returned to the consolidated fund.  In the financial year 2019/2020, DGAL entered into a contractual agreement for which a letter of credit worth UGX.1.475Bn was created at the request of foreign suppliers. The letter of credit remained outstanding for more than one year implying that the foreign supplier had not fulfilled | + + +142 + +--- + +|| their contract obligations.  In the financial year 2019/2020, DGAL procured digital forensic tools for use to recover data on mobile phones at an estimated cost of USD.82,000 (equivalent to UGX.290,232,000). In the period since acquisition, the entity has only used the forensic tools and equipment to process and analyse just one (1) case raising the possibility that the equipment is under-utilised.  Nine (9) staff positions for a Commissioner, Government Analysts and drivers in the Directorate were cleared by the Ministry of Public Service for recruitment, and the directorate received funding amounting to UGX.0.032Bn for the purpose. The recruitment process had not been finalised at the year end and the funds were returned to the consolidated fund.  | +|---|---| +| 2 | Justice Law and Order Sector JLOS-SWAP. 2019/20 Opinion Unqualified |  I noted that out of the budgeted revenue of UGX. 121,683,362,209 for the financial year 2019/2020 only UGX. 104,870,934,098 (86%) was released, resulting in a shortfall of UGX. 16,812,428,111 (14%) on the overall. The largest shortfall of UGX. 10,304,157,202 (8.4%) was in respect to the Development Partners funding,  A review of the JLOS SWAP disbursement of funds to implementing entities and the respective actual expenditure revealed that only UGX. 81,391,358,207 was spent out of the availed UGX.104,870,934,098, resulting in an unspent balance of UGX.31,080,004,792. The unspent balance excludes the JLOS House Project balance of UGX. 18,592,439,794, which commenced in the subsequent financial year 2020/21.  I reviewed all the 43 activities under the JLOS Secretariat with a budget of UGX.23.561Bn, out of which UGX.18.027Bn was released, resulting in a shortfall of UGX.5.534Bn, which is 23.5% of the budget  I further noted from the analysis of the annual performance report that some critical activities for which funds had been released had not been implemented.  Out of the 43 activities with a total budget of UGX.23.561Bn, I reviewed the extent of quantification of outputs and activities and noted that a total of three (3) activities and releases worth UGX.4.076Bn were not quantified at all to enable assessment of performance. A total of forty (40) activities and releases worth UGX.13.951Bn were fully quantified. That is, all the forty (40) activities (100%) were clearly quantified to enable assessment of performance.  I assessed the implementation of all the Forty (40) JLOS SWAP activities worth UGX.13.951Bn that were fully quantified and noted that Fourteen (14) activities worth UGX.12.507Bn were fully implemented. The entity implemented all the Fourteen (14) activities (100%) within the JLOS SWAP consolidated strategic outputs. Four (4) activities worth UGX.0.665Bn were partially implemented. All the Four (4) activities within the JLOS SWAP consolidated strategic outputs were not achieved 100%. Twenty-two (22) activities worth UGX0.779Bn were not implemented at all.  I observed that UGX.656,905,350 advanced to various beneficiaries by four implementing agencies to execute sector activities during the COVID- 19 lockdown period, i.e. between November 2019 and June 2020, lacked the necessary supporting documents such as payment vouchers, activity reports and receipts at the time of audit (November 2020) and were | + + +143 + +--- + +|| submitted during the month of January 2021, implying that the funds had not been accounted for by 30th June 2020.  I noted from the review of financial statements that management did not disclose the outstanding balances as at 30th June 2019. Consequently, no provision was made to cater for domestic arrears in the financial year 2019/2020 budget. But I noted that UGX.9,145,799 was spent to settle outstanding bills in respect of conference facilities for JLOS and the supply and delivery of law reference books | +|---|---| +| 3 | Office of the Director of Public Prosecutions. 2020/21 Opinion Unqualified |  During the years under review, 666,620 cases were brought forward from the previous years, and 99,232 cases were registered during the year, giving a cumulative sum of 765,492 cases recorded. Of these cumulative cases, only 40,466 (5%) were cleared during the year.  Over the five years only 253,596 cases representing (33%) have been concluded through conviction, acquittal, withdrawal, dismissal and closed files.  ODPP continues to incur substantial annual maintenance costs of UGX.2,808,000,000 in spite of the low coverage of the system (only 41 stations out of the planned 138) and some system components like the complaint handling and processing component are not fully operational.  ODPP had an approved organization structure that requires 1,336 staff however, only had 519 staff had been filled. The structure requires 833 prosecutors but is operating with only 366 (40%), and as a result, there are more magistrates than prosecutors.  No budgetary provision was made for the settlement of domestic arrears, which stood at UGX.1,611,006,686 as at the beginning of the financial year 2020/2021. As at the close of 2020/2021, the Office reported domestic arrears to the tune of UGX.1,228,911,994. | +| 4 | Uganda Human Rights Commission 2020/21 Opinion Unqualified |  I noted that the Commission did not have an approved strategic plan that was aligned to NDP III by the time of audit. The draft plan prepared by the entity had not been certified by NPA.  The Commission collected over 100% of its NTR target for the year over and above the target. The Commission absorbed only 86.8% of the funds that were released by government.  The Commission received off-budget financing directly from development partners to a tune of UGX.2.187Bn, which was not declared to Treasury and, therefore, not appropriated to the entity by Parliament.  Management did not quantify 2 outputs with 6 activities and expenditure worth UGX 0.12Bn.  Out of (11) outputs that were fully quantified with 22 activities, 3 activities worth UGX.0.44Bn were fully implemented, 18 activities worth UGX.15.54Bn were partially implemented. 1 output with 1 activity worth UGX.0.17Bn was not implemented at all.   The Commission neither prepared annual budget monitoring plans nor submitted quarterly budget monitoring reports. The Commission also failed to submit all its quarterly budget performance reports in time.  The UHRC had tribunal case backlog of 1,756 cases at the beginning of the financial year 2020/2021, and 71 additional cases were registered during the year, resulting in a total of 1,827 outstanding cases. Out of the 1,827 cases, only 326 (17.8%) were investigated and disposed of. The | + + +144 + +--- + +|| un-cleared complaints at the tribunal level stood at 1,501 at the year-end, translating into underperformance of 82.2%.  Timeline errors continue to occur due to the limited interface between IPPS and IFMS in payroll processing. A review of the payroll register and IFMS payment file revealed that UGX.5.706 Bn was paid as per payroll register; while IFMS indicates that UGX.6.124Bn was paid, resulting in an overpayment of UGX. 0.417Bn. | +|---|---| +| 5 | Uganda Law Reform Commission. 2020/21 Opinion Unqualified |  I noted that the Commission did not have an approved strategic plan that was aligned to NDP III by the time of audit. The draft plan prepared by the entity had not been certified by NPA.  The Commission collected only 100% of its NTR target for the year which was commendable. The Commission also absorbed only 92.4% of the funds that were released thus affecting implementation of planned activities.  Out of the 8 outputs assessed with 37 activities and expenditure of UGX.7.74Bn, 6 outputs with worth UGX.4.53Bn were fully quantified.  I assessed the implementation of 6 outputs with 24 activities that were fully quantified and noted that 1 output with 3 activities and expenditure worth UGX 3.43Bn was fully implemented while 5 outputs with 21 activities worth UGX.1.1Bn were partially implemented. Out of the 21 activities, the entity fully implemented 9 activities, 4 activities were partially implemented, while 8 activities remained unimplemented.  The Commission neither prepared annual budget monitoring plans nor submitted quarterly budget monitoring reports. The Commission also failed to submit all its quarterly budget performance reports in time.  ULRC did not have any domestic arrears brought forward from the previous year; however, the entity recorded payables worth UGX.124,626,384 under court awards and compensations in the year under audit. | +| 6 | Judicial Service Commission 2020/21 Opinion Unqualified |  I noted that the Commission submitted a draft strategic plan to NPA for approval.  The Commission budgeted for NTR of UGX.4.5bn for the financial year 2020/21, however only UGX. 788,000 was collected representing performance of 0.02% of the target. The Commission absorbed 95.7% of the funds that were released.  Out of the fifteen (15) outputs sampled, ten (10) were fully quantified, while one (1) was insufficiently quantified and two (2) were not quantified at all.  Out of the ten (10) outputs assessed, five (5) were fully implemented while five (5) were partially implemented.  The Commission neither prepared annual budget monitoring plans nor submitted quarterly budget monitoring reports. The Commission also failed to submit all its quarterly budget performance reports in time.  Out of the approved 143 staff positions, ninety-seven (97) positions were filled while forty-seven (47) positions were vacant.  The commission did not remit to URA PAYE of UGX.138,219,093. | +| 7 | Ministry of Justice and Constitutional Affairs. 2020/21 |  At the time of audit, the entity strategic plan had not yet been submitted to NPA; management was awaiting the completion of revising | + + +145 + +--- + +|| Opinion Unqualified | the Governance and Security Programme.  The entity budgeted to collect NTR of UGX.0.112Bn but collected UGX.0.233Bn representing a performance of 208% of the target.  There was a shortfall in GoU releases amounting to UGX.34.461Bn, representing 22%.  Thirteen (13) outputs with a total of twenty-nine (28) activities were quantified, while eighteen (18) outputs with a total of thirty-nine (39) activities were insufficiently quantified. Further, of the thirteen (13) quantified outputs/activities assessed, two (2) outputs with two (2) activities were fully implemented; eleven (11) outputs with 27 activities were partially implemented.  Submission of performance reports for all the quarters was made after the deadline dates.  MoJCA received COVID 19 arrears supplementary funding of UGX.18.2Bn, all of which was warranted and spent, representing 100% of the budget absorption.  Domestic arrears decreased from UGX.399.88Bn, in the previous year to UGX.381.26Bn as at 30th June 2021, representing a reduction in arrears by 4.6%. The arrears remained unsettled at the close of the year.  The unpaid Court Awards and Compensation stood at UGX. 377.43Bn as of 30th June 2021, which has accumulated over the last ten years.  I noted that the MOJCA had not put in place a documented criterion for prioritizing the settlement of Court awards.  I noted a rising trend of Government liabilities due to the following (Under budgeting for court awards and compensation across Government, Accumulation of interest, Non-disclosure of contingent liabilities by other MDAs and New developments in the law) | +|---|---|---| +| 8 | The Directorate of Citizenship and Immigration Control. 2020/21 Opinion Unqualified |  The DCIC prepared a strategic plan for 2020-2025 that was approved by the National Planning Authority on 22nd November 2021. However, following the issuance of a Certificate of Approval, management had not approved the plan for implementation.   Out of the total receipts for the financial year of UGX.104.9Bn, only UGX.103.9Bn was spent by the entity resulting in an unspent balance of UGX.1.0Bn representing an absorption level of 99%.  I sampled seventeen (17) outputs with a total of one hundred seventeen (117) activities and expenditure of UGX.101.8Bn for assessment and noted that eleven (11) outputs with expenditure worth UGX.26.95Bn were fully quantified. Five (5) outputs with worth UGX.74.09Bn were insufficiently quantified, and One (1) output with expenditure worth UGX.0.13Bn was not quantified at all  I noted that a sum of UGX.1.02Bn was released to DCIC to settle Domestic Arrears to a supplier under Covid-19 related funding.  An assessment of service delivery revealed that DCIC takes an average of 7.7 days to process a passport and a further 7.3 days from the date of printing to issue the passport to the citizens. I further observed that although the Directorate has several regional offices for processing of passports, 97% of the applications for passports and 92% of the issuances are done at the Central Office in Kampala.  A trend analysis of the Directorate domestic arrears over the past three | + + +146 + +--- + +|| years showed a decreasing trend from UGX.4.19Bn in 2018/2019 to UGX.0.32Bn in 2020/2021.  A review of the approved budget estimates for the year revealed that only UGX.1,015,473,085 (11.4%) was budgeted and released to settle domestic arrears amounting to UGX.8,898,668,915, implying insufficient budgeting for domestic arrears.  The Directorate procured an e-visa and permit management system during the financial year. I observed a number of contract conditions, including final user acceptance testing, completion of the setup of the system workflow, training of end-users, and integration of the system to other government systems in NIRA, CAA, URSB, and URA had not yet to be achieved.  The Directorate procured a consultant for the configuration, installation and maintenance of an Integrated System for archived records and the maintenance of the electronic data management system. I observed delays in contract execution and that the entity did not have a Service Level Agreement to guide the support and maintenance of the system. | +|---|---| +| 9 | The Court of Judicature (The Judiciary). 2020/21 Opinion Unqualified |  The Judiciary prepared a strategic plan and had it approved by NPA at the time of audit.  The entity budgeted to collect NTR of UGX. UGX.11.043Bn but collected UGX.5.698Bn representing a performance of 52% of the target.  There was a shortfall in GoU releases amounting to UGX.6.02Bn, representing a 3% shortfall.  Thirteen (13) outputs with a total of sixty-seven (67) activities were quantified, while seven (7) outputs with a total of twenty-seven (27) activities were insufficiently quantified, and six (6) outputs with a total of forty-five (45) activities were not quantified at all. Further, of the thirteen (13) quantified outputs/activities assessed, five (5) outputs with fourteen (14) activities were fully implemented; eight (8) outputs with fifty-three activities were partially implemented.  Submission of all performance reports for all the quarters was made after the deadline dates.  I noted the accumulation of case backlog due to delayed operationalisation of gazetted courts and a limited number of judicial officer’s compared to the workload.  Judiciary had a COVID 19 arrears supplementary budget of UGX.8.66Bn, all of which was warranted and spent representing 100% of the budget absorption.  I noted an increase in receivables from UGX 661,164,656(2019/2020) to UGX 3,268,317,882 (2020/2021). This was partly due to UGX. 1,652,842,084 that was advanced to courts to undertake election petitions and remained unaccounted for at the end of the financial year under audit. Furthermore, the other receivables of UGX.320,947,170 carried forward from previous years remained outstanding with no recoveries made.  I noted that management accrued new domestic arrears totalling UGX. 4,171,245,048 during the financial year 2020/2021 compared to UGX. 2,641,109,446 new arrears accrued in 2019/2020, registering an increment of new arrears of UGX. 1,530,135,602 thus representing a 58% growth rate.  Judiciary did not budget for domestic arrears amounting to UGX.3.543Bn, | + + +147 + +--- + +|| which remained outstanding in the FY 2019/20.  I noted inconsistencies in statistics reported on both pending and cases handled by the Judiciary during the period.  I noted delays in the implementation of The Electronic Court Case Management Information System (ECCMIS); an overall average delay of 3 months since the Go-live had been scheduled on 7th June 2021. But, as of 11th October 2021, this has not yet been done. Data migration of the Phase 1 stations from CCAS into the new integrated ECCMIS has not been performed; the project was still at the design and development stage at the time of audit; the Change management training is still ongoing as of 6th October 2021, yet the training had been scheduled for 23rd October 2020, some planned activities were not implemented, like the migration of data for phase 1 entities from the court case administration system (CCAS) to ECCMIS. | +|---|---| +| 10 | The Uganda Prisons Service. 2020/21 Opinion Unqualified |  The UPS prepared a strategic plan for the period 2020-2025 and was approved by the National Planning Authority on the 23rd of July 2021.  Out of the total receipts for the financial year of UGX.310.8Bn, only UGX.306.5Bn was spent by the entity resulting in an unspent balance of UGX.4.4Bn representing an absorption level of 98.6%.  I sampled fourteen (14) outputs with a total of eighty seven (87) activities and expenditure of UGX.316.2Bn for assessment and noted that ten (10) outputs with a total of fifty-seven (57) activities and expenditure worth UGX.293.82Bn were fully quantified and four (4) outputs with a total of thirty (30) activities and expenditure worth UGX 22.36Bn were insufficiently quantified  I noted that of the 57 quantified activities worth UGX293.82Bn assessed; 35 activities representing 61% were fully implemented, 20 activities representing 35% were partially implemented, while 2 activities representing 4% were not implemented.  I noted that a sum of UGX. 40,6Bn was released to UPS for the settlement of Domestic Arrears to suppliers under Covid-19 related funding with all funds spent for settlement of arrears.  A trend analysis of the Service’s domestic arrears over the past three years showed a decreasing trend from UGX.65.97Bn in 2018/2019 to UGX.62.345Bn in 2020/2021.  I noted that UPS was only allocated UGX.40.6Bn (67.4%) for settlement of domestic arrears worth UGX.60.2Bn and paid for arrears worth UGX.54.8Bn with the additional funds worth UGX.14.2Bn diverted from planned activities to pay for the arrears  An assessment of service delivery revealed cases of overcrowding in prison cells with the congestion levels increasing from 291.5% in 2017/18 to 321.1% in 2020/2021. This compromises the welfare of the inmates and may result in a number of health risks such as the quick spread of diseases and compromising on sanitation. The existing congestion has proved a challenge for the prisons’ service when implementing Standard Operating Procedures (SOPs) to reduce the spread of COVID-19. It has also posed a challenge in separating different categories of offenders to break the cyclic chain of crime and violence.  I noted that a total of 33 (12.7%) prisons stations are still using the bucket system of sanitation which may turn cells into a breeding centre for diseases, resulting in the violation of the prisoners’ rights  I noted cases of over stay of prisoners on remand with the prisoners’ | + + +148 + +--- + +|| length of stay on remand increasing from 10.5 to 18.8 months for capital offenders and from 2.6 months to 3.8 months for petty offenders from 2016/17 to 2020/2021 respectively. For example out of the 32,409 prisoners on remand, a total of 13,933 prisoners had overstayed on remand  I observed challenges of staff accommodation which currently stands at a deficit of 7,217 (65.1%) housing units with staff staying in temporary houses/shelters/not accommodated  The Service also faced challenges of under staffing where out of an approved organisation structure comprising of 49,470 staff, only 12,860 (26%) posts were filled, leaving a balance of 36,610 (74%) posts vacant. This leads to high staff prisoner ratio and causes fatigue among the few staff  I noted that sixty-seven (67) of the prison stations did not have buses to enable safe and secure transportation of prisoners to court which resulted into delayed delivery of prisoners to courts, transportation of high-risk inmates on open trucks, and prisoners and staff walking long distances to attend court.  I noted delays in completion of the Prisoners Management Information System (PMIS) which has delayed the enjoyment of anticipated benefits from the system.  I observed challenges in land management including encroachments, land disputes and encumbrances. Out of 158 pieces of land of different sizes in the different parts of the country, only 52 pieces were surveyed and titled, 17 pieces were surveyed but still not yet titled, while 89 pieces were not yet surveyed. Furthermore, the UPS did not have land surveying equipment | +|---|---| +| 11 | The Law Development Centre. 2020/21 Opinion Unqualified |  LDC had prepared the Strategic Plan aligned to NDP III and approved by NPA.  The entity budgeted to collect NTR of UGX 13.503Bn during the year under review. Only 12.205Bn was collected, representing a performance of 90% of the target.  LDC budgeted to receive UGX.28.16Bn out of which UGX.24.84Bn was availed, resulting in a shortfall of UGX.3.32Bn, which is 88.2% performance of the budget.  Out of the total warrants of UGX., 24.84Bn received during the financial year, UGX. 24.53Bn was spent by the entity resulting in an unspent balance of UGX.0.31Bn, representing an absorption level of 99%.  From a sample of ten (10) outputs with a total of twenty-five (25) activities and expenditure of UGX.24.53Bn, Four (4) outputs with a total of fifteen (15) activities and expenditure worth UGX.20.5Bn were fully quantified. One (1) output with a total of five (5) activities and expenditure worth UGX.0.6Bn, was insufficiently quantified, and Five (5) outputs with a total of five (5) activities and expenditure worth UGX 3.4Bn were not quantified at all.  I assessed the implementation of four (4) outputs that were fully quantified with a total of fifteen (15) activities worth UGX 20.5Bn and noted that all the five (5) activities within this output were fully implemented. Two (2) outputs with ten (10) activities worth UGX.19.2Bn were partially implemented, the entity fully implemented six (6) activities, three (3) activities were partially implemented, while one (1) activity remained unimplemented. | + + +149 + +--- + +||  The entity submitted all performance reports after the deadline.  LDC had outstanding commitments brought forward totaling UGX. 2,697,202,827 as at 30th June 2020. During the year under review, UGX. 1,490,351,141 was paid, and UGX. 786,304,467 was accumulated, leaving an outstanding of UGX. 1,993,156,153 as at 30th June 2021. | +|---|---| +| 12 | The Uganda Registration Services Bureau – Liquidation. 2020/21 Opinion Unqualified |  The entity had a court appropriation of UGX.1.162Bn for the financial year 2020/2021 and an appropriation by court brought forward from the previous year 2019/2020 of UGX.0.640Bn totaling up to UGX.1.802Bn receipts.  Out of the total funds available for expenditure of UGX.1.802Bn, UGX.1.277Bn was spent by the bureau resulting in an unspent balance of UGX.0.525, representing an absorption level of 70.9%.  I reviewed all the outputs and noted that the outputs were all adequately quantified.  Out of the six (6) outputs assessed, one (1) was fully implemented, while five (5) were partially implemented. Five (5) outputs with twenty-four (24) activities worth UGX1.061Bn were partially implemented.  URSB did not prepare performance reports for liquidation.  I observed that the bureau had receivables carried forward from the previous financial years amounting to UGX.6.243Bn that remained outstanding at the end of the financial year under audit. | +| 13 | The Uganda Registration Services Bureau - Operations. 2020/21 Opinion Unqualified |  The URSB strategic plan was prepared and approved by NPA.  The entity budgeted to collect NTR of UGX.47.31Bn but collected UGX.41.32Bn representing a performance of 87% of the target.  The URSB budgeted to receive UGX. 26.871Bn out of which UGX. 23.099Bn was availed, resulting in a shortfall of UGX.3.772Bn, which is 14% of the budget. Further, the entity remained with an unspent balance of UGX. 0.33Bn representing an absorption level of 99%.  Out of the seven (7) outputs sampled, five (5) were fully quantified, while one (1) was insufficiently quantified and one (1) was not quantified at all.  Out of the five (5) outputs assessed, two (2) were fully implemented while three (3) were partially implemented.  Submission of all the quarterly performance reports was made after the deadline date. Also, inconsistencies were noted in the annual performance report and the system-generated reports. For example, management reported four (4) and two (2) patents to have been granted in the financial years of June 2020 and June 2021, respectively. Yet the system report analysis showed that no patent had been granted in the last two financial years.  Despite a positive increase in the number of searches on the system, there was a significant decline in the performance of industrial designs registered, Local Trademarks renewed, Patents granted, and foreign trademarks registered  I analysed the number of applications received and eventually registered for the Utility model, patents and industrial designs and noted a significant difference in the number of applications that materialised to actual registrations. For instance, three (3) out of nineteen (19) Utility model applications were granted, two (2) out of the fifteen (15) Patent applications were granted, seventeen (17) out of the seventy-six (76) | + + +150 + +--- + +|| were granted.  I noted a decline in performance for activities planned under Civil Registration; the number of churches registered declined by 38.8%. Similarly, the number of Marriage returns FBOs, and Districts registered a decline in the performance of 17.56%.  I noted shortcomings in the performance of the National Marriage registration system such as; NMRS could not internally generate reports; few staff are trained, incomplete information on certificates generated through the system, the system does not allow bulky payments, resulting in multiple bank charges to the customer, other systems of the Bureau like on base are not integrated with NMRS.  URSB received COVID 19 arrears supplementary budget of UGX.0.0318Bn, all of which was spent representing 100% of the budget absorption.  The Bureau had UGX.4.516Bn in domestic arrears, but it budgeted and was warranted UGX.0.032Bn, leaving a balance of UGX.4.484Bn unbudgeted. URSB effected payments totaling UGX.1.216Bnresulting in excess of UGX.1.184Bn above the approved budget. Domestic arrears increased by UGX.3.055Bn (68%) from UGX.1.466Bn to UGX.4.516Bn as at June 2021. The arrears remained unsettled at the close of the year.  I reviewed the business registration system and noted the absence of an inbuilt mechanism to track and trace the movement and clearance of queries raised regarding name reservations and applications. The entity still has some processes that use manual backup. There were delays in the development of the Quality Management system ISO 9001(QMS) | +|---|---| +| 14 | The Ministry of Internal Affairs. 2020/21 Opinion Unqualified |  The Ministry of Internal Affairs prepared a strategic plan for 2020-2025. However, it had not been approved by the National Planning Authority at the time of audit.  Out of the total receipts for the financial year of UGX.51.5Bn, only UGX.50.8Bn was spent by the entity resulting in an unspent balance of UGX.0.7Bn representing an absorption level of 99%.  I sampled forty-one (41) outputs with a total of one hundred and ninety- seven (197) activities and expenditure of UGX.37.7Bn for assessment and noted that fifty-nine (59) activities with expenditure worth UGX.11.30Bn were fully quantified. one hundred thirty-seven (137) activities with worth UGX.26.1Bn were insufficiently quantified, and one (1) activity with expenditure worth UGX.0.24Bn was not quantified at all  An assessment of service delivery revealed that in the financial year 2020/2021, the Ministry extended support to 299 victims of human trafficking, which is only 45% of the total victims of human trafficking as reported by the Uganda Police Force. An assessment of the Monitoring of NGOs revealed that although the Ministry had registered 2,249 NGOs, the Ministry could only carry out offsite inspections of just 145 NGOs or 1% of all registered NGOs.  A trend analysis of the Ministry domestic arrears over the past three years showed an increasing trend from UGX.0.078Bn in 2018/2019 to UGX.1.45Bn in 2020/2021.  The Ministry paid for repair services worth UGX.13,237,877 without being certified by the responsible technical officer to confirm receipt of the services. The Ministry also procured stores worth UGX.88,444,071, which were not recorded in the Ministry’s stores records.  I noted that procurements worth UGX.88,844,071 were not recorded in | + + +151 + +--- + +|| the stores’ ledgers nor witnessed by internal audit, making it difficult to verify the deliveries.  The Ministry of Internal Affairs has an approved structure of 224 positions, out of which 105 are filled, resulting in a shortfall of 119 (representing 47%)., including critical positions such as Commissioner Compliance, Assistant Commissioner Compliance, Senior Internal Auditor, Commissioner and Assistant Commissioner for the Social Integration department were vacant. | +|---|---| +| 15 | Uganda Police Force. 2020/21 Opinion Unqualified |  Uganda Police Force prepared a strategic plan for the period 2020-2025. However, the plan had not yet been approved by the National Planning Authority at the time of audit .  Uganda Police Force budgeted to collect NTR of UGX.24.06Bn during the year. However, by the end of the year, UPF had collected a total of UGX.33.80Bn.  Out of the total GoU receipts for the financial year of UGX.1,043.5Bn, only UGX.1,040.2Bn was spent by the entity resulting in an unspent balance of UGX.3.4Bn representing an absorption level of 99.7%. As a result, I noted that of the twenty-eight (28) fully quantified activities worth UGX.207.3Bn assessed, three activities representing 11% were fully implemented, while 25 activities representing 89% were partially implemented.  I noted that UPF received off-budget financing amounting to UGX.12.4Bn, which was not declared to the Treasury and therefore not appropriated to the entity by Parliament.  I assessed the extent of service delivery and noted that the coverage of canine services had only reached 68 (or 43%) out of Uganda’s 157 policing districts, affecting the extent of canine-related investigations and service delivery in the areas not yet covered.  I assessed the progress on the investigation of crime by the Uganda Police Force and noted that the entity had only completed investigations for 331,584 (40.7%) cases, leaving a backlog of 445,976 cases. Of the 445,976 backlogs of cases, 291,060 (65%) have been pending for three (3) or more years.  Although Uganda Police has completed Phase 1 and 2 of the project for the installation of CCTV cameras, I observed that the Force does not have a budget for the maintenance of the installed camera infrastructure.  UPF received a sum of UGX.49.22Bn as ‘Covid-19 related’ funding, all of which was utilised for the purpose for which it was released.  An assessment of the performance of the Express Penalty Scheme revealed that whereas tickets worth UGX.120.8Bn have been issued in the period from 2015/2016 to 2020/2021, only UGX.90.Bn has so far been collected, resulting in uncollected arrears amounting to UGX.29.98Bn.  A trend analysis of domestic arrears over the past three years shows a decreasing trend from UGX.161.0Bn in 2017/2018 to UGX.114.1Bn at the close of 2020/2021.  A total of 380 staff continued to receive salaries amounting to UGX.1,795,637,954 after their retirement date, as recorded in the Integrated Personnel and Payroll System (IPPS).  UPF does not have an approved land management policy. In addition, a total of 408 out of the 1,078 parcels of land owned by UPF are neither | + + +152 + +--- + +|| surveyed nor titled. | +|---|---| +| 16 | National Identification and Registration Authority (NIRA). 2020/21 Opinion Unqualified |  NIRA prepared a strategic plan for the period 2020-2025, which was approved by the National Planning Authority. However, the plan is yet to be approved by the Board of the Authority for implementation.  NIRA budgeted to collect NTR of UGX.15.0Bn during the year. However, by the end of the year, NIRA had collected a total of UGX.3.66Bn.  Out of the total GoU receipts for the financial year of UGX.55.2Bn, only UGX.53.3Bn was spent by the entity resulting in an unspent balance of UGX.1.7Bn representing an absorption level of 97%. As a result, I noted that of the twenty-four (24) fully quantified activities worth UGX.70.6Bn assessed; 10 activities representing 42% were fully implemented, 12 activities representing 50% were partially implemented, while 2 activities representing 8% were not implemented at all.  I assessed the extent of service delivery and noted that only 11% of the planned 1,712,880 citizens were registered during the year, while only 30% of the planned 2,000,000 National IDs were issued.  I assessed the progress on registration of births and deaths and observed that NIRA registered 90% of the planned 960,000 births and only 1.3% of the 960,000 deaths.  A review of the progress of registering citizens indicated that as of December 2021, 29,713,029 applications, or 69% of all Ugandans, had applied to NIRA for registration. Of these, only 25,557,448 or 86% of the applicants had been registered, and only 16,258,521 (63.6%) have been issued with National Identity cards.  Only 16.3 million cards out of the over 19 million national identity cards so far printed have been claimed, leaving over 2.7 million cards unissued or unclaimed.  At the time of audit (December 2021), the Authority had over 4.3 million applications yet to be processed. Of these, 3.2 million applications were still being processed, while 1.1 million applications have been rejected.  NIRA plans to register at least 28,000 aliens annually and issue them with the relevant identification cards. From 2015 to date, the entity has only received 16 applications for alien IDs, and no Alien ID has been issued.  A reviewed the outcome of the initiative to register learners (or school going children within their schools) undertaken in 2017/2018 to determine whether all registered learners had been issued with NINs. I noted that records of over 1.8 million (or 19%) learners’ who registered during that exercise had been rejected and thus not processed for issuance of NINs and Identification Cards.  NIRA failed to procure over 4,500,000 million IDs from the Uganda Security Printing Company as the Joint Venture Agreement required. As a result, the entity has recognised a contingent liability of UGX.33.5Bn. | +| 17 | Amnesty Commission 2020/21 Opinion Unqualified |  The entity budgeted to receive UGX.4.016Bn, out of which UGX.3.868Bn was warranted, resulting in a shortfall of UGX.0.147Bn, which is 3.7% of the budget.  Out of the total receipts for the financial year of UGX.3.199Bn, all of the funds were spent by the entity representing an absorption level of 100%. As a result, I noted that of the three (3) quantified activities worth UGX.1.297Bn assessed, all of three (3) activities were partially implemented. | + + +153 + +--- + +|| SECURITY SECTOR || +|---|---|---| +| 1 | NEC AGRO SMSC LTD 2019/2020 Opinion Unqualified |  Accounts receivables increased by 229% from UGX.3.080bn in the financial year 2018/19 to UGX.7.062bn in financial year 2019/20. Outstanding debtors represent idle resources which could be used in the implementation of planned activities.  I noted weaknesses in the utilisation of the Corporation’s tractors which include; the tractors have remained parked for a long period of time hence losing value, the entity spent a sum of UGX.8,094,000 on tractor repairs but no revenue was generated, having been acquired in 2010, these tractors are due for disposal however the disposal process had not started.  I reviewed Financial Performance of NEC AGRO SMC LTD and observed the following:  The Corporation had an operating margin of 6.8% which is below the recommended 15%. This implies that the subsidiary has a lower proportion of revenues covering expenses rather than profits or income.  The Corporation made profits of UGX.2.061bn after tax in the year under review up from profits of UGX.0.661bn realized in the previous year (a rise of 211.5%). The Corporation had positive retained earnings of UGX.0.724bn as at the end of the financial year. This will enable the corporation to meet future contingencies or investments in growth.  The return on assets for the Corporation increased to 19.1% from 13.1% recorded in the previous year which is generally considered good given that it is over 5%.  The Corporation had a current ratio of 2.7 for the year under review which was above the desirable ratio of 1.5 implying that the Corporation is not efficiently using its current assets.  The Corporation had a debt ratio of 35% as at the end of the financial year compared to 2.8% in the previous year implying that the majority of the Corporation assets are financed by debt.  Two subsidiaries i.e. NEC Tractor Hire Scheme and NEC Tractor Project to form NEC AGRO SMC LTD were merged to form NEC AGRO SMC LTD. Although the Corporation is now in operation, it has not been approved by the Uganda Registration Services Bureau. | +| 2 | NEC AGRO SMSC LTD 2020/2021 Opinion Unqualified |  Receivables increased by 23.2% from UGX.6,671,059,244 in the F/Y 2019/20 to UGX.8,219,802,915 in the F/Y 2020/21 and a number of debtors had been outstanding since financial year 2018/19 to-date.  NEC AGRO SMC LTD has an operating margin of 8.5% which is below the desirable 15%. This implies that the subsidiary has a lower proportion of revenues covering expenses rather than profits or income.  The Corporation had a current ratio of 11.4 for the year under review which was way above the desirable ratio of 1.5. I further noted that the current ratio for the year increased by 322% from a ratio of 2.7 recorded in the previous year. | +| 3 | (NEC) Farm Katonga Limited. 2019/2020 Opinion Unqualified |  The Corporation had an operating margin of 2.1%, which is below 50% which implies that the Corporation is having a lower proportion of revenues covering expenses rather than profits or income.  The Corporation had negative retained earnings of UGX.1,474,703,986 as at the end of the financial year. This may affect the entity’s ability to | + + +154 + +--- + +||| meet future contingencies or investments in growth.  The return on assets for the Corporation increased by 0.01% from 0.55% recorded in the previous year, the return was still very low. This implies that the Corporation is not making enough income from the use of its assets.  The Corporation had a current ratio of 389 for the year under review which was far above the desirable range of 1.5 – 2.0. It reduced by 59% from a ratio of 938 realized in the previous year. | +|---|---|---| +| 4 | (NEC) Farm Katonga Limited, 2020/2021 Opinion Unqualified |  The Corporation has an operating margin of 1.2%, which is below the 50% compared to 2.1% realized in the previous year 2019/20 representing a reduction of 43% which implies that the Corporation is having a lower proportion of revenues covering expenses rather than profits or income.  The Corporation made profits of UGX.32,789,541 after tax in the year under review up from profits of UGX.30,230,727 realized in the previous year representing a rise in profits of 8.5%. However the Corporation had negative retained earnings of UGX.1,441,914,445 as at the end of the financial year which may affect the entity’s ability to meet future contingencies or investments in growth.  The corporation posted a return on assets of only 0.4% down from 0.56% posted in the previous year, representing a reduction in ROA of 28.6%. This implies that the Corporation is not making enough income from the use of its assets.  The Corporation had a current ratio of 2,123 for the year under review which was far above the desirable range of 1.5 – 2.0. The very high current ratio implies that the Corporation is not efficiently using its current assets or its short-term financing facilities.  A loan advances worth UGX.808,940,140 was extended to NEC AGRO SMC LTD on 10/03/2021 after committing to pay back the short term loan in 4 weeks. It was however observed that at the time of writing this report in December 2021, the loan advance had not been repaid.  It was established that NEC was involved in land disputes with various encroachers at NEC Farm Katonga which may result into loss of land if not promptly handled. | +| 5 | NEC Headquarter 2019/2020 Opinion Unqualified |  The Corporation had outstanding debtors amounting to UGX.1,796,916,916 some of which have been outstanding for a number of years. Continued reflection of the debtors’ amount in the financial statements when their recovery seems to be remote misleads users of the accounts.  The Corporation owns Plot No. 1018 which is about 10 acres of land at Kampala Industrial and Business Park in Namanve allocated to it by Uganda Investment Authority in the year 2005 which has remained undeveloped for about 15 years due to lack of an access road. | +| 6 | NEC Headquarters 2020/2021 Opinion Qualified |  I observed that NEC Pharmaceutical investment reduced to UGX.1,118,877,451 from UGX.2,460,326,736 by the end of the financial year 2020/2021 because machinery and furniture valued at UGX.1,341,449,285 was to be disposed of. The Ministry of Works expert put the value of the machinery and furniture to be disposed of at UGX.413,720,000 implying that value for sale was overstated by UGX.927,729,285.  In the FY 2017, NEC was allocated road construction and maintenance | + + +155 + +--- + +|| equipment from Ministry of Works and Transport as one way of enhancing its competitiveness in the market. I however noted that the depreciation charge related to the road construction and maintenance equipment was not disclosed in the statement of profit and loss and other comprehensive income contrary to the existing financial reporting standards.  Debtors worth UGX.757,989,660 were reported among which are sundry debtors and prepayments worth UGX.142,254,800 which have been outstanding for a period of more than one year.  Payable amounting to UGX.10,010,447 have remained outstanding for over ten years.  In 2005, Iran Agro Industries was given a lease for 17 square miles of land at NEC Farm Katonga. The initial 5-year lease elapsed without fulfilment of the lease obligations by Iran Agro Industries and the lease was terminated but the land titles were not repossessed by NEC.  It was observed that there was no Annual General Meeting held in the last five years and the entity’s draft strategic plan had not been reviewed by NPA to align to NDP III for onward approval by the Board of Directors. | +|---|---| +| 7 | NEC Luwero Industries Limited, 2019/2020 Opinion Unqualified |  The Corporation had outstanding trade debtors amounting to UGX.791,065,997 at the close of the financial year 2019/2020 some of which have been outstanding for over the past three financial years. Uncollected debtors represent an idle resource that would be put to use by the entity to enhance its operations.  The Corporation had outstanding trade creditors amounting to UGX.33,967,430 some of which have been outstanding for over three financial years. Failure to settle creditors for such long periods could lead to litigation costs for the entity and impact on the going concern as the creditors may cease doing business with the entity.  NEC has established an e-waste project at 6th Street Industrial Area managed by Luwero Industries Ltd; a subsidiary of NEC and over UGX.200 million was spent on renovation of structures where the e-waste project was to be established. I noted that NEC is yet to acquire a land title for the space where this project is established.  The Corporation has an operating margin of 30%, which is below 50% compared to 3% realized in the previous year 2018/19 representing an increase of 900%. This implies that the Corporation is having a lower proportion of revenues covering expenses rather than profits or income.  I noted that the Corporation made profits of UGX.3,380,139,206 after tax in the year under review up from profits of UGX.206,028,828 realized in the previous year representing a rise in profits of 1,541%. I further noted that the Corporation had negative retained earnings of UGX.19,235,077,990 as at the end of the financial year.  I noted that although the return on assets for the Corporation increased by 11.5% from 0.95% recorded in the previous year, the return was still very low. This implies that the Corporation is not making enough income from the use of its assets.  I noted that the Corporation had a current ratio of 5.2 for the year under review which was above the desirable ratio of 1.5. I further noted that the current ratio for the year increased by 4% from a ratio of 5.0 recorded in the previous year.  The Corporation had a debt ratio of 5.3% as at the end of the financial year under review implying that majority of Corporation assets are | + + +156 + +--- + +|| financed by debt. In comparison with the previous year, the debt ratio was 6.6% indicating a reduction of 1.3% in the debt over the one year period. | +|---|---| +| 8 | National Enterprise Corporation (NEC) Luwero Industries Limited. 2020/21 Opinion Unqualified |  The entity had outstanding trade debtors amounting to UGX.491,697,278 at the close of the financial year 2020/2021, some of which have been outstanding for over the past three financial years. Uncollected debtors represent an idle resource that would be put to use by the entity to enhance its operations.  The Corporation had outstanding trade creditors amounting to UGX.744,085,592 some of which have been outstanding for over three financial years. Failure to settle creditors for such long periods could lead to expensive litigation costs for the entity and impact on the going concern as the creditors may cease doing business with the entity.  The Corporation had negative retained earnings of UGX.15,552,895,876 as at the end of the financial year. This may affect the entity’s ability to meet future contingencies or investments in growth.  The corporation posted a return on assets of only 10% down from 12.5% posted in the previous year, representing a reduction in ROA of 20%. This implies that the Corporation is not making enough income from the use of its assets.  The Corporation had a current ratio of 11.9 for the year under review which was above the desirable ratio of 1.5. A very high current ratio implies that the Corporation is not efficiently using its current assets or its short-term financing facilities.  The Corporation had a debt ratio of 2.1% as at the end of the financial year under review implying that majority of Corporation assets are financed by debt. | +| 9 | NEC UZIMA. 2019/2020 Opinion Unqualified |  I noted that management procured major factory materials worth UGX.1,645,898,731 without adhering to neither the existing procurement processes nor applying for accreditation of an alternative system specifying existence of unique circumstances that could have prevented adherence to the requirements of PPDA Act.  NEC UZIMA LTD has an operating margin of 5.8% which is below 15%. This compared to 1.3% realised in the previous year 2018/19 represented an increase of 346% which puts the company in an awful situation.  Despite NEC Uzima Ltd making profits, the company had negative retained earnings of UGX.231,489,309 as at the end of the financial year. If this is not improved in the future, entity’s ability to meet future contingencies or investments in growth may be affected.  I noted that the return on assets for the Corporation increased to 6.3% from 2.3% recorded in the previous year which is generally considered good given that it is over 5%.  The Corporation had a current ratio of 0.55 for the year under review which was way below the desirable ratio of 1.5. The Corporation is not able to satisfy its current liabilities/short-term obligations without raising external capital.  The Corporation had a debt ratio of 61% as at the end of the financial year under review implying that majority of Corporation assets are financed by debt. This implies that the company doesn’t have enough funds to meet its current debt obligations and may find it hard to pay a return on government investments. | + + +157 + +--- + +| 10 | NATIONAL ENTERPRISE UZIMA LTD, 2020/2021 Opinion Unqualified |  Payables increased from UGX.1,042,752,671 in the F/Y 18/19 to UGX.1,744,963,543 in 19/20 and further to UGX.2,052,449,538 in the year under review. The increasing trend of payables could result into an uncontrollable level of payables which greatly affects the credit worthiness of the entity.  The Corporation had negative retained earnings of UGX.88,435,269 as at the end of the financial year. This may affect the entity’s ability to meet future contingencies or investments in growth.  The Corporation had a current ratio of 2.3 for the year under review which is above the desirable ratio of 1.5. The high current ratio implies that the Corporation is not efficiently using its current assets or its short term financing facilities.  The Corporation had a debt ratio of 53.5% as at the end of the financial year under review which is considered undesirable. This implies that the company does not have enough funds to meet its current debt obligations and may find it hard to pay a return on Government investment. | +|---|---|---| +| 11 | NEC Construction Works and Engineering Limited, 2019/2020 Opinion Unqualified |  NEC Works Ltd had outstanding trade debtors of UGX.10,074,717,689 as at the close of the financial year 2019/2020. Outstanding debtors represent an idle asset that would be put to use by the entity to enhance its operations.  National Enterprise Corporation (NEC) engaged into an MoU with Uganda Free Zone Authority (UFZA) in June 2019 for construction of the Free port zone facilities at Entebbe international airport. I observed that as at 30/06/2020, the completion status was barely at 30% with expected date of completion in June 2021.  The Corporation has an operating margin of 9%, which is below 50% compared to 12.5% realized in the previous year 2018/19 representing a reduction of 28%. This implies that the Corporation is having a lower proportion of revenues covering expenses rather than profits or income.  The Corporation made profits of UGX.2,094,813,036 after tax in the year under review up from profits of UGX.1,298,330,782 realized in the previous year representing a rise in profits of 61%.  The return on assets for the Corporation increased by 5% from 5.8% recorded in the previous year, the return was still very low. This implies that the Corporation is not making enough income from the use of its assets.  The Corporation had a current ratio of 1.3 for the year under review which was below the desirable ratio of 1.5. I further noted that the current ratio for the year increased by 12% from a ratio of 1.16 recorded in the previous year. The low current ratio implies that the Corporation has limited ability to meet short-term obligations without raising external capital.  The Corporation had a debt ratio of 79% as at the end of the financial year under review implying that majority of Corporation assets are financed by debt. This implies that the company does not have enough funds to meet its current debt obligations and may find it hard to pay a return on government investments. | +| 12 | National Enterprise Corporation - Construction, Works and Engineering Ltd 2020/21 |  NEC Works Ltd had outstanding trade debtors of UGX.2,961,747,233 as at the close of the financial year 2020/2021 some of which have been outstanding for more than one year. I was not availed any recovery plans | + + +158 + +--- + +|| Opinion Unqualified | nor any initiatives taken by management to recover the debts.  The Corporation had an operating margin of 11%, which is below 15% compared to 9% realized in the previous year 2019/20 representing an increase of 22%. This implies that the Corporation is having a lower proportion of revenues covering expenses rather than profits or income.  The Corporation had a current ratio of 1.4 for the year under review which was below the desirable ratio of 1.5. The low current ratio implies that the Corporation has limited ability to meet short-term obligations without raising external capital.  The Corporation had a debt ratio of 69% as at the end of the financial year under review implying that majority of Corporation assets are financed by debt. | +|---|---|---| +| 13 | Uganda Air Cargo Corporation 2019/2020 Opinion Unqualified |  The Corporation had outstanding debtors of UGX.8,174,344,548 as at 30th June, 2020. UGX.8,159,631,016 representing 99.8% of the debtors reported has been outstanding for a period of more than 5 years. The uncollected debtors constitute more than 65% of the total current assets.  The Corporation had outstanding trade payables amounting to UGX.25,276,330,330 as at 30th June, 2020 with over UGX.13bn having been outstanding for over three financial years.  Management budgeted to collect revenue of USD.9,750,409 from its 8 revenue streams but only USD.444,407 was realized resulting into under collection of USD.9,306,004. The under collection constituted 95% of the budgeted revenue.  In keeping in line with the Corporation’s vision, major investment projects were envisaged in the 10 year plan period but a review of the entity work plans and operations revealed that none of the projects has been implemented despite being in its 5th year of implementation.  The Corporation made a loss of UGX.12.6 Bn after tax in the year under review up from a loss of UGX.3.7 Bn realized in the previous year representing a rise in losses of 238%. I further noted that the Corporation had negative revenue reserves of UGX.16.331 Bn as at the end of the financial year. This may affect the entity’s ability to meet future contingencies or investments in growth.  The Corporation had a current ratio of 0.5 for the year under review which was below the desirable ratio. The low ratio implies that the Corporation has limited ability to meet short term obligations without raising external capital.  The Corporation had a debt ratio of 30.6% as at the end of the financial year under review which is below the desirable of 50% and above implying that majority of Corporation assets are financed by debt.  An audit inspection established that the Corporation did not have an operating Aircraft to do business since most of them had been grounded under different circumstances. | +| 14 | Uganda Air Cargo Corporation, 2020/2021 Opinion Unqualified |  MoFPED released UGX.46,048,485,223 through MoDVA for capitalisation of UACC but MoDVA transferred UGX.42,511,285,223 leaving a balance of UGX.3,537,200,000. It was observed that UACC with the approval of the Board of Directors agreed to reallocate UGX.28,647,537,490 to fund new priorities other than those for which the funds were appropriated.  A review of the ten (10) year Strategic Business and Investment Plan 2016 to 2027 revealed that out of the planned seven (7) targets/goals, one (1) had been fully achieved, three (3) were partially achieved while | + + +159 + +--- + +|| three (3) were not achieved at all.  Management created an additional position of “Principal Director” to oversee the Directorates of Flight operations and Maintenance which is not in the established structure and is contrary to The Civil Aviation Regulations 2014, section 13.  UACC is a statutory corporation that is supposed to undertake procurements in accordance with PPDA Law and its Regulations. I observed that procurements are normally undertaken as and when the aircrafts breakdown and as such did not follow the formal procurement procedures.  UACC signed a contract on 20th April, 2021 with National Enterprise Corporation (NEC) for construction of the UACC HQ offices for a sum of UGX.1.097Bn and the expected project completion date was 19th October, 2021. I observed that unsecured advances of UGX.1.04Bn (95%) of the contract sum had been paid to NEC by closure of the financial year 30th June 2021. Audit inspection carried out on 18th October, 2021 observed that construction works were behind schedule.  UACC to-date does not have an operating Aircraft to do business since most of them had been grounded or not operational under different circumstances.  The Corporation had negative retained earnings/revenue reserves of UGX.24.03Bn as at the end of the financial year. This may affect the entity’s ability to meet future contingencies or investments in growth. | +|---|---| +| 15 | State House. 2020/21 Opinion Unqualified |  There was a shortfall in NTR collections amounting to UGX.0.573.4bn representing 64%.  I assessed 13 outputs with a total of 45 activities and actual expenditure of UGX.345.4Bn and observed that 9 outputs were fully quantified, 3 outputs were insufficiently quantified while 1 output was not quantified at all.  I further assessed the nine (9) out puts that were fully quantified with a total of 27 activities worth UGX.242.4bn and observed that 6 outputs were fully implemented while 3 outputs were partially implemented.  In compliance with Section 24 of the Public Finance Management Act, 2015 (Classified Expenditure), expenditure of UGX.546,349,392,500 that relates to classified expenditure is to be audited separately and a separate audit report issued.  UGX.116m was budgeted for domestic arrears during the year under audit despite failure to disclose outstanding domestic arrears in the previous years.  A review of the Ministerial policy statement for the financial year 2020/21 revealed that the entity did not prepare a comprehensive vehicle utilisation report for the period as required by Section 15(h)) of the Public Finance and Management Act, 2015, as amended. | +| 16 | Office of the President Opinion Unqualified |  The entity had prepared a draft strategic plan which was submitted to align the plan to NDP III upon which the certificate of compliance will be issued.  Out of the budgeted revenue of UGX.525,000,000 for the year 2020/21; UGX.423,827,920 was collected representing performance of 80% of the target.  Out of the total warrants for the financial year of UGX.202,499,917,566, | + + +160 + +--- + +|| UGX.201,682,707,928 was spent by the entity resulting in an unspent balance of UGX.817,209,638 representing absorption level of 99.6%.  I assessed the implementation of all the 19 out puts that were fully quantified with a total of 100 activities worth UGX.92.2 bn. and noted the following:  Twelve (12) outputs with a total of seventy eight (78) activities worth UGX.62.1bn were fully implemented.  Four (4) outputs with a total of fifteen (15) activities worth UGX.16.0bn were partially implemented.  Three (3) outputs with a total of seven (7) activities worth UGX.14.7bn were not implemented at all.   Out of the planned 27 strategic targets/goals, 23 targets had been fully achieved while 4 were not achieved at all.  Out of the budgeted revenue of UGX.0.52bn for the year 2019/20; only UGX.0.20bn was collected representing performance of only 3.8% of the target.  Out of the total receipts for the financial year of UGX.2.17bn, UGX.2.11bn was spent by the entity resulting in an unspent balance of UGX.5.633bn representing an absorption level of 97.4%.  I assessed a sampled of 19 outputs with a total of 175 activities and actual expenditure of UGX.94Bn which were fully quantified by management. I observed that; 11 outputs with a total of 69 activities worth UGX.77.2Bn were fully implemented. 2 outputs with a total of 21 activities worth UGX.18.5Bn were partially implemented.  I examined supplementary funding received by the Office for COVID 19 interventions and observed anomalies which included under absorption of the funds, failure to quantify activities implemented, inappropriate procurement methods and funds not accounted for. Specifically for management of quarantine centres, I observed that items were procured at varying prices and they were not taken on charge.  Arrears totalling to UGX 30,549,780,185 remained unsettled at close of the year. Further, UGX.28,431,892,310 was provided for settlement of domestic arrears yet domestic arrears brought forward from the prior year were UGX.58,981,672,495.  Shortcomings were observed in the Ministry’s fleet management which included incomplete recording of motor vehicles in the assets register, failure to use motor vehicle logbooks, lack of motor vehicle annual inspections, lack of adequate vehicles for allocation to RDCs, gaps in drivers’ competences and failure to implement board of survey recommendations for disposal of motor vehicles. | +|---|---| +| 17 | Ministry of Defence and Veteran Affairs. 2020/21 Opinion Unqualified |  Out of the budgeted revenue of UGX.1.735Bn for the year 2020/21; UGX.1.018Bn was collected representing performance of 59% of the target.  Out of the total warrants for the financial year of UGX.5.316Tn, UGX.5.315Tn was spent by the entity resulting in an unspent balance of UGX.1.244Bn representing absorption level of 99.98%.  All the 13 outputs with a total of 26 activities and expenditure of UGX.2.843Tn sampled for assessment were not quantified to enable assessment of performance. | + + +161 + +--- + + + +- A budgetary allocation on Court awards and compensations of UGX.279.12M was received during the year against the outstanding claim of UGX.3.537BN resulting into a shortfall of 99.92%. + + + +- Domestic arrears over the past three years have shown a declining trend with arrears reducing by UGX.284.868Bn from 2019 to 2021. + + + +- I observed that trade creditors totalling to UGX.364.821Bn remained unsettled at close of the year with arrears totalling to UGX.194.297Bn relating to previous financial year(s). + + + +- I noted that UGX.19.711Bn paid to settle domestic arrears was diverted from the current budget. + +- I observed that Batuma Ivan Mbabazi was paid UGX.1.085Bn out of UGX.3.056Bn in respect of compensation for Kibanja land situated in Kihumuro village without proof of ownership. I noted the compensation value of crops worth UGX.1.885Bn paid did not provide details of crops planted and the land coverage. + + + +- I observed that a number of illegal activities were being carried out on UPDF 36 Sq Miles land in Kaweweta to include: Illegal acquisition and fencing of military land by veterans; Illegal leasehold registration; Land encroachment; Charcoal burning; Cattle grazing and construction of dams. + + + + + +- I noted that UGX.47BN out of the contract sum of UGX.104.77BN had been paid in relation to the construction of UPDF National Referral Hospital at Lower Mbuya. I observed during my inspections that the no single structure was complete, agreed time frame had elapsed and the site looked abandoned. + + + +- I noted during my inspection that Kaweweta Recruit Training School construction project site had been abandoned and observed the following: Abandoned water supply project; pending works on phase 2 and phase 3 projects; un finished works on road opening of the security road; pending works on tarmacking of 3kms internal road network; Abandoned dormitory blocks for female trainees and aqua-privy toilets; abandoned construction of 2 range grounds and lack of adequate accommodation. + + + +- I noted an urgent need to repair the white house building at URDCC which was found to have a leaking roof in the mess and accommodation rooms. + + + +- I observed that the UPDF Legal Training Centre which was started in 2014 funded by Netherlands Government had stalled and looked abandoned. + + + +- I observed that out of the required 5.6km concrete perimeter wall fence for land forces headquarter Bombo, only 525 meters had been covered leaving 4.6kms outstanding to complete the perimeter wall. + + + +- I noted that Land forces operation centre Bombo had been abandoned since September 2021 and the project had stalled at 75%. The pending works on the project included painting, electrical and water connections and finishing works on the toilets. + + + +- I inspected the General Military Hospital- Bombo (GMHB) and observed the following: a need for a centralised system of resource allocation at the hospital; Inadequate medical supplies; Underutilization of hospital equipment; Crowded hospital premises; Old hospital equipment and Parked staff bus. + +- I observed that the Marine Pier at Ntokolo Landing site Magamaga was + + + +162 + +--- + +|| affected with water levels on Lake Victoria dropping back to normal hence making it difficult for the marine boats to fully utilise the docking area due to shallow waters. I noted that only half of the docking area was utilised contrary to the original plan.  I inspected Magamaga cantonment and observed the following issues: lack of sufficient storage space, land encroachments’, inadequate water supply, poor road network, insufficient lighting system at the store premises, accommodation challenges, need to expand Health centre II to Health centre III and inadequate toilets at the store premises.  I observed inadequate Fuel supply for Air Force training as Air Force is not allocated fuel for operations. but the same fuel allocation for training is used for other operations and yet the trainers have specific performance contracts.  I noted that while there are reserve tanks in Nakasongola and Jinja that were constructed in past regimes, these have never been utilised subjecting management to buying Jet fuel from dealers at the open market pump prices and exorbitant prices.  I inspected Special Forces Command (SFC) and observed creation of 206 brigade SFC without sufficient funding. I noted lack of office furniture, storage space and CCTV cameras. | +|---|---| +|| PUBLIC SECTOR MANAGEMENT SECTOR || +| 1. | The New Vision printing and Publishing company Limited 2020/21 Opinion Unqualified |  Because the company’s market capitalisation of UGX 23,715 million was significantly lower than the carrying amount of the company’s net assets of UGX 65,039 million as at 30thJune 2021. In accordance with IAS 36 Impairment of Assets, this impairment indicator triggered impairment testing of the non-current assets of the company. The recoverable cost of UGX 57,866 estimated to be the fair value of the company.  NVPPCL incurred costs relating to a one-off discretionary retirement package comprised of cash and in-kind items to recognise long service to the company by an existing employee. Management measured and recognised costs relating to the retirement package of UGX 1,956 million and reported these as part of staff costs included in administrative expenses in the statement of comprehensive income.  The company had gross trade receivables of UGX 17,265 million (2020: UGX 27,190 million) and expected credit losses of UGX 3,202 million (2020: UGX1,428 million) to which management performed the impairment assessment of trade receivables.  In June 2020, the board resolved to move all staff from permanent employment terms to fixed-term contracts. The phased movement of staff members had commenced by August 2020. However, as at 30th April 2021, there were still two staff maintained on the payroll with payment terms similar to those in their permanent employment contracts. I further noted that these had not signed off the fixed term basis employment contracts. Management indicated that it’s engaging the two concerned staff members for a resolution and contract sign off.  I noted that the board approved changes to estimated useful lives of the different items under property, plant and equipment on 25th June 2020 as part of the approval of the budget; however, these changes were not implemented timely as required by IAS 8 Accounting Policies, Changes in Accounting Estimates.  I reviewed the information system controls of the IT system and noted | + + +163 + +--- + +|| the following;  Absence of a defined information security management system  Absence of a cybersecurity incident response team  Inadequate security awareness  Vulnerability assessments not performed  Absence of data classification  Inadequate ICT vendor management | +|---|---| +| 2. | Markets and Agricultural Trade Improvement Project (MATIP) II 2020/21 Opinion Unqualified |  There was a shortfall in releases from GOU sources of UGX.0.23Bn and donors of UGX.19.763Bn. Furthermore, the project failed to absorb UGX.0.271Bn.  I reviewed 4 out-puts with a total of 16 activities worth UGX.57.7Bn representing 100% of the total expenditure and noted that two (2) outputs with six (6) activities worth UGX.38.6Bn were fully quantified. I further observed two (2) out-puts with ten (10) activities worth UGX.19.1Bn were insufficiently quantified. All the two (2) outputs that were fully quantified were partially implemented.  I observed that there was delayed completion of works on some of the markets and value addition facilities. Two (2) markets were completed by June 2021 however they had not been commissioned and operationalized by September 2021 thus affecting service delivery.  I observed that except for Entebbe market all the other markets lacked a revenue management information system to facilitate revenue management. This was also the case for the seven (7) MATIP 1 markets. I further observed that the allocation guidelines favor leaseholders who pay very little in terms of ground rent to the Municipalities. This affects revenue mobilization and impairs self-reliance and sustainability of these markets.  The beneficiary Municipalities have failed to put in place a market maintenance fund which would facilitate routine maintenance of the completed structures. This was also the case for the MATIP 1 markets. In addition, all the markets redeveloped under MATIP 1 and 2 are not insured against risks such as; fire outbreaks, electrical failures and unforeseen disasters. | +| 3. | Ministry of Public Service 2020/21 Opinion Unqualified |  The Ministry’s five (5) year strategic plan was certified by NPA, confirming that it is aligned to the NDP III.  The Ministry collected only 57.7% of its NTR target for the year and had a shortfall in government funding of UGX.9.7Bn, which is 32.4% of the budget. The Ministry failed to absorb UGX.1.1Bn, which is 5.5% of what was released.  The Ministry had off-budget financing of UGX.0.529Bn, which was never declared to the PSST for re-voting.  Out of the thirty-five (35) outputs assessed, eight (8) were fully quantified, while five (5) were insufficiently quantified to facilitate performance measurement. The balance of two (2) outputs were not included in the Ministerial Policy Statement submitted to Parliament.  Out of the eight (8) outputs that were fully quantified, seven (7) outputs were partially implemented, while one (1) output was not implemented at all as a result of the disruptions caused by restrictions imposed due to | + + +164 + +--- + +|| Covid-19.  The Ministry delayed submitting all its quarterly performance reports to MoFPED, and similarly, I did not find evidence to confirm that monitoring plans and reports were prepared.  I observed that a number of government entities had not been filling positions of persons who had been granted leave without pay, which resulted in manpower gaps in these entities affecting their efficiency in delivering services to the citizens.  The Ministry failed to utilise up to UGX.6.5Bn of the total salary budget of UGX.17.9Bn provided by MoFPED over the past four (4) years.  The Ministry had outstanding domestic arrears of UGX 0.86Bn by the end of the financial year.  The Ministry had not put in place adequate guidance regarding the number of boards on which a civil servant is allowed to serve at any one time. This resulted in some civil servants serving on more than three (3) boards, which affects the time they allocate to their substantive jobs.  I noted some challenges in the management of recruitments into the service, such as; irregular employment of staff by Accounting Officers and the absence of a policy for the recruitment and selection of temporary staff.  I noted irregularities in the management of leave without pay for civil servants, which included; absence of a complete register of all civil servants who were away on leave without pay and irregular grant of leave without pay.  I noted irregularities in overseas training for civil servants, such as the absence of a register of all civil servants who were away on training and some Officers who went abroad for training programmes offered by the different local universities in Uganda. | +|---|---| +| 3. | Local Government Finance Commission 2020/21 Opinion Unqualified |  I noted that the Commission did not have an approved strategic plan that was aligned to NDP III by the time of audit. The draft plan prepared by the entity had not been certified by NPA.  The Commission collected only 0.03% of its NTR target for the year and had a shortfall in government funding of 0.04Bn which is 0.75% of the budget. The Commission absorbed all the funds that were released.  Out of the five (5) out-puts assessed, one (1) output with 0.115 Bn was fully quantified, while four (4) outputs with 4.01Bn were insufficiently quantified. The one (1) output that was fully quantified was partially implemented.  The Commission neither prepared annual budget monitoring plans nor submitted quarterly budget monitoring reports. The Commission also failed to submit all its quarterly budget performance reports in time.  The Commission failed to coordinate the automation of revenue management systems. There are currently four (4) revenue management systems used by various Local Governments which are implemented in a disjointed and uncoordinated manner. This has resulted in duplication of activities associated with running these systems thus affecting service delivery.  The Commission received UGX.182,000,000 as budget support to undertake physical decentralization and service delivery. However only UGX.31,241,000 was absorbed by the Commission which significantly | + + +165 + +--- + +|| affected service delivery.  I noted that by 30th June 2021 the Commission had accumulated domestic arrears of UGX.101,473,991. | +|---|---| +| 4. | City Wide Inclusive Sanitation (CWIS) 2020/21 Opinion Unqualified |  I observed that the program work plans and budgets were not sent to parliament for formal approval through the KCCA Ministerial Policy Statements  The project budgeted to receive donor financing of USD 1.2M for the year under review; however, only USD 1M was received during the year. Also, the project had expected to receive USD 0.2M as GoU counterpart funds; but only USD 0.17 was received.  The project under absorbed funds totaling USD 1,329,522, which is 62% of the funds that were available to the project for implementation of activities  Out of the sixty-seven (67) activities assessed, forty-seven activities worth USD 609,563 were fully quantified, while twenty (20) activities worth USD 199,314 were insufficiently quantified. Out of the forty-seven (47) activities that were quantified, twenty (20) 43% activities worth USD 502,564 were fully implemented, seventeen (17) 36% activities worth USD 99,664 were partially implemented, while ten (10) 21% activities worth USD 7,335 were never implemented at all.  The project accumulated arrears amounting to USD 583,742 during the year under review.  The project's progress towards achieving project targets or outcomes was found unsatisfactory in some areas. The performance in some cases was below 50%, while in other areas, no activities had been implemented. This affects service delivery.  The project irregularly recruited providers that KCCA or NEMA had not licensed. | +| 5 | Development Response to Displacement Impacts Project 2020/21 Opinion Unqualified |  The Project budgeted to receive UGX.233Bn out of which UGX.185Bn was received representing 79% of the budget leaving a balance of UGX.48.1Bn as unreleased. All the funds that were released were absorbed.  All the four (4) outputs with a total of thirteen (13) activities worth UGX.185Bn were fully quantified to enable assessment of performance. Out of this two (2) out puts with six (6) activities worth UGX.9.86Bn were fully implemented while the balance of two (2) out puts with seven (&) activities worth UGX.175Bn were partially implemented.  I noted that the project did not utilise grant funds totalling to UGX UGX.9.6Bn.  The project had not achieved its thre e(3) year targets in four (4) areas with performance in some cases being as low as 0% in some areas. | +| 6 | National Planning Authority 2020/21 Opinion Unqualified |  The Authority prepared a new five (5) year strategic plan which was certified as aligned to NDP III.  There was shortfall in revenue collection of up to 100% of the NTR target while government receipts were less than anticipated by UGX.1.65Bn. All the funds that were disbursed were fully absorbed.  NPA received off-budget financing to a tune of UGX.15.27Bn, out of which UGX.11.4Bn was declared to Treasury and appropriated. The balance of UGX.3.87Bn was not declared to Treasury and therefore, not | + + +166 + +--- + +|| appropriated to the entity by Parliament. These funds were received directly from development partners for undertaking activities not budgeted for.  I noted that out of the 12 out-puts sampled for review, 6 (50%) were fully quantified, 5 (41%) were insufficiently quantified and 1 (9%) was not quantified at all making it impossible to measure performance. Out of the 6 out puts that were fully quantified, none was fully implemented, 4 (66%) were partially implemented while 2 (34%) were not implemented.  All the quarterly budget performance reports were submitted late by the Authority.  I noted cases of delays in approval of MDA and LG strategic plans. In addition to this seventy three (73) entities had not submitted their strategic plans for review and certification by the Authority.  The Authority had not undertaken capacity building of planners at both local and national level which affected the capacity of the planners to implement, monitor and report on the performance of the budgets in their respective entities.  I observed shortcomings in government’s readiness to implement the new programme approach to planning and budgeting which included; non-alignment of the accounting and oversight processes to the new programme planning framework, non-alignment to the statistical and data collection systems to the new programme planning framework and non- functional programme working groups among others.  I also noted that the Authority had not realigned the development planning regulations from the sector approach to planning and budgeting to the new programme approach of planning and budgeting. | +|---|---| +| 7 | Public Service Commission 2020/21 Opinion Unqualified |  Although the Commission had come up with a strategic plan aligned to NDP III, this plan had not been approved and certified by NPA as required by the planning regulations.  The Commission did collect NTR for the year despite having an NTR budget of UGX.2.7Bn. The Commission received 99% of its budget from Treasury and absorbed all the funds.  Out of the thirteen out-puts assessed, two (2) outputs worth 0.88Bn were fully quantified, six (6) worth 6.72Bn were partially quantified while five (5) outputs worth 1.87Bn were not quantified at all. The two (2) out-puts that were quantified were all partially implemented.  All the quarterly performance reports were submitted late by the Commission and there were no budget monitoring reports prepared by the Accounting Officer.  The Commission does not participate in the recruitment of foreign service officers in Uganda’s missions and embassies abroad.  The Commission had outstanding domestic arrears amounting to UGX.48.768,099.  The Commission did not deduct PAYE from gratuity payments amounting to UGX.1Bn for its Commission members. | +| 8 | Office of The Prime Minister 2020/21 Opinion Unqualified |  I noted that OPM strategic plan had not been approved by NPA as aligned to NDP III.  There was under-collection of NTR by UGX.0.732Bn, which is 30% of the NTR budget, while shortfalls in Central Government releases were UGX.19.26Bn, which is 13.8% of the approved budget for central | + + +167 + +--- + +|| government releases. OPM had unspent balances of UGX.2.5Bn, which were returned to the consolidated fund.  OPM received off-budget financing amounting to UGX.53.452Bn, which Parliament never appropriated.  I noted that out of the thirty-two (32) outputs sampled for review, twenty-nine (29) (91%) were fully quantified, one (1) (3%) was partially quantified, and 2 (6%) were not quantified at all which made it impossible to measure performance. Out of the twenty-nine (29) outputs that were fully quantified, four (4) outputs (14%) were fully implemented, while twenty-five (25) outputs (86%) were partially implemented.  OPM did not prepare and submit annual budget monitoring plans and reports while submission of all the quarterly performance reports were delayed.  I observed service delivery challenges such as delayed completion of works, failure to fund micro-projects and non-functional District Disaster Management Committees.  I noted that OPM received UGX.0.25Bn as part of the COVID-19 relief interventions budget. These funds were all absorbed and used for the intended purpose.  I noted delayed resettlement of encroachers in the Apaa game reserve land.  OPM did not have a complete database of all entitled beneficiaries and those paid since 2008 under the Akasiimo gratuity scheme. | +|---|---| +| 9 | Northern Uganda Social Action Fund (NUSAF 3) 2020/21 Opinion Unqualified |  This was the last year of implementation of the NUSAF 3 Project. An independent impact evaluation undertaken by Makerere University Business School highlighted achievements by the project, which included; increased income for beneficiary households, improved resilience and vulnerability to shocks, improved household welfare and progress out of poverty, improved savings and investments, increased production and income earnings and increased household food security and consumption for a number of beneficiaries.  uring FY2020/2021, the project budgeted to receive UGX.38.7Bn, which was all received. Similarly, the project absorbed all this money representing 100% performance.  All the three (3) outputs with nine (9) activities worth UGX.38.8Bn sampled for verification were fully quantified. Out of these, two (2) outputs with five (5) activities worth UGX.26.72Bn were fully implemented while one (1) output with four (4) activities worth UGX.12.08Bn was partially implemented.  The project advanced funds for the construction of coffee shops in Arua, Gulu, Lira, Mbale and Tororo. At the time of audit, works were not complete in Lira, Arua and Gulu. The coffee shop in Mbale was not fully operational.  During my inspection, I noted that the beneficiary communities and districts were having sustainability challenges in maintaining project investments three (3) months after the closure of the project. These included poor maintenance of roads, low savings by farmers, among others.  Ownership of two (2) project vehicles had not reverted to government three (3) months after the closure of the project. | + + +168 + +--- + +| 10 | Project for The Restoration of Livelihoods in the Northern Region (PRELNOR) 2020/21 Opinion Unqualified |  The project had a shortfall of UGX.26Bn, which is 52% and UGX.3.27Bn, which is 67% of the budget in external and government funding, respectively. The project absorbed UGX.25.65Bn, which is 88% of all the funds that were released.  All the one hundred seven (107) outputs assessed were fully quantified. Out of the one hundred seven (107), sixty-eight (68) were fully implemented, ten (10) were partially implemented, and twenty-nine (29) were never implemented.  I assessed the progress of project activities and noted that Batch A community access roads were incomplete. Similarly, the procurement process for Batch B community roads and the bulk and satellite markets had delayed, affecting service delivery.  I noted that the project faces sustainability challenges such as failure to maintain completed roads by the districts, which threatened to erode the benefits realised by the project. | +|---|---|---| +| 11 | Ministry of Local Government 2020/21 Opinion Unqualified |  The Ministry’s strategic plan (2020/2021 to 2025/2026) had not been certified by NPA to confirm that it was well aligned to NDP III at the time of the audit.  There was a shortfall in NTR collection of up to 89.9% of the target, while government receipts were less than anticipated by UGX.3.64Bn. The Ministry had unspent balances of UGX.3.94Bn by year-end.  I noted that out of the thirty-nine (39) outputs sampled for review, fifteen (15) (38%) were fully quantified, twenty (20) (51%) were insufficiently quantified, and four (4) (10%) were not quantified at all. Out of the fifteen (15) outputs that were fully quantified, one (1) output was fully implemented, while fourteen (14) outputs were partially implemented.  All the quarterly performance reports were submitted after the deadline for submission.  2,127 motorcycles and 77,831 bicycles worth UGX.18.9Bn and UGX.24.6Bn respectively had not yet been delivered by the time of audit in November 2021, although they were due for delivery in September 2021.  The Ministry delayed disbursing funds for budget support to Local Governments. UGX.22.1Bn to various Local Governments was disbursed in the last two weeks of June 2021.  The Ministry delayed disbursing start-up costs of UGX.6.79Bn to 125 Local Governments. Most of the funds were transferred the last two weeks of June and, in some cases, as late as 29th June 2021.  The Ministry received UGX.2.86Bn for settlement of domestic arrears as part of the COVID 19 interventions, which was all absorbed and used to settle domestic arrears.  The Ministry had outstanding domestic arrears of UGX.33Bn as at June 2021. | +| 12 | Kampala Capital City Authority (KCCA). 2020/21 Opinion Unqualified |  I noted that the Authority’s strategic plan had not been certified by NPA by the time of audit, contrary to the Planning Regulations.  The Authority received 99% of its budget from Government, and NTR performed above expectation by 21%. The Authority had unspent balances of UGX.7.64Bn, which was returned to the consolidated fund.  I noted that the Authority had unremitted off-budget financing of | + + +169 + +--- + +|| UGX.18.97Bn, which Parliament never appropriated.  I noted that out of the thirty-nine (39) outputs sampled for review, two (2) outputs (5%) were fully quantified, two (2) outputs (5%) were partially quantified, and thirty-five (35) outputs (90%) were not quantified at all which made it impossible to measure performance. The two (2) outputs that were fully quantified were all fully implemented.  All performance reports were submitted after the deadline.  I noted that the Authority had not developed regulations to guide the collection of outdoor advertising fees, which hindered the collection of NTR. I further noted that the Authority did not undertake regular updates of the valuation rolls.  The Authority has an unserviceable long-term liability of UGX.42,570,448,999 in addition to accumulated domestic arrears of UGX.62,477,592,377 as at 30th June 2021.  The Authority did not remit statutory deductions to URA and NSSF amounting to UGX.1.86Bn.  The Authority incurred avoidable expenditure of UGX.7.8Bn as interest due to delayed site handover for civil works constructions.  noted that the Authority had not adopted the Computerized Government Financial Management Information Systems (GFMIS) for management of its inventories as required by the Treasury Instructions. | +|---|---| +| 13 | Kampala Institutional and Infrastructure Development Project (KIIDP). 2020/21 Opinion Unqualified |  The Project budgeted to receive UGX.8.7Bn from GOU out of which UGX.1.9Bn was released representing 21.8% of the budget leaving a balance of UGX.6.8Bn as unreleased. Similarly, the project budgeted to receive UGX.139.7Bn from World Bank however only UGX.125.2Bn (90%) was availed.  UGX.49.9Bn remained un-utilized at the end of the financial year.  Out of the four (4) outputs reviewed, only one (1) output (25%) was fully quantified. Three (3) outputs were not quantified at all. I observed that management did not prepare performance reports that show the status of implementation of planned outputs.  I noted that there was slow progress of works, delayed relocation of utilities and delayed land aquistion which resulted in delayed service delivery.  I also noted that UGX.1,323,171,260 that was garnished had not yet been refunded by Government through KCCA.  I noted that ownership of one hundred forty-seven (147) pieces of land on which project roads and drainages had been constructed had not yet been transferred to KCCA. | +|| PUBLIC ADMINISTRATION SECTOR |  | +| 1. | Uganda Embassy in Abu Dhabi. 2019/20 Opinion Unqualified |  Out of the planned 10 strategic targets/goals, 4 targets were fully achieved, 5 targets were partially achieved and 1 was not achieved at all.  There was a shortfall in NTR collections amounting to UGX.1.544Bn representing 1.66% performance.  I sampled 4 outputs with a total of 8 activities and actual expenditure of UGX.5.376Bn and observed that 3 outputs with a total of 7 activities and expenditure worth UGX.5.31Bn were fully quantified while 1 output with 1 activity and expenditure worth UGX 0.06Bn was not quantified. I further | + + +170 + +--- + +|| observed that none of the outputs were fully implemented.  The Mission did not prepare and submit the annual monitoring plans to MoFPED and NPA contrary to the requirement of paragraph 58 of the Budget Execution Circular for 2019/2020. I also noted that the Mission submitted performance reports for Q1, Q2, Q3 and Q4 after the elapse of the deadline given for submission of the reports.  The Mission had total collections including balance brought forward from previous year of UGX.58,817,501 out of which UGX.37,898,755 had been transferred to the Treasury for onward transfer to the Consolidated Fund leaving a balance UGX. 20,918,746 not remitted.  The Mission paid 73,400.00 AED (equivalent to UGX.73,326,600) in respect of education allowances direct to its officials instead of their respective educational institutions or schools contrary to Section (E - e) Paragraphs 19 and 20 of the Public Service Standing Orders 2010.  The Mission paid medical refunds to its staff amounting to 8,540.9 AED (equivalent to UGX.8,531,460) contrary to Section M (m-a) (14) of the Public Service Standing Orders, 2010.  The Mission has an approved staff structure of 4 staff positions out of which 3 (75%) were filled leaving 1 (25%) vacant. | +|---|---| +| 2. | Uganda Embassy in Abuja, 2019/20 Opinion Qualified |  Out of the planned 9 strategic targets/goals, no target was fully achieved, 4 targets were partially achieved and 5 targets were not achieved at all.  There was a shortfall in NTR collections amounting to UGX.1.926Bn representing 8% performance.  Out of the total receipts for the financial year of UGX.2.821Bn, UGX.2.901Bn was spent by the entity resulting in an excess expenditure of UGX.0.081Bn representing an absorption level of 102.8%.  I sampled 3 outputs with a total of 7 activities and actual expenditure of UGX.2.901Bn and observed that all the outputs were fully quantified. I further observed that out of 7 activities, 4 activities were partially implemented while 3 activities remained unimplemented.  The entity did not prepare and submit the annual monitoring plans to MoFPED and NPA contrary to the requirement of paragraph 58 of the Budget Execution Circular for 2019/2020. I also noted that the Mission submitted performance reports for Q1, Q2, Q3 and Q4 after the elapse of the deadline given for submission of the reports.  The Mission paid NGN.4,524,060 (equivalent to UGX.43,204,725) in respect of education allowances direct to its officials instead of their respective educational institutions or schools contrary to Section (E - e) Paragraphs 19 and 20 of the Public Service Standing Orders 2010.  The Mission paid medical refunds to its staff amounting to NGN.2,418,559 (equivalent to UGX.23,097,233) contrary to Section M (m-a) (14) of the Public Service Standing Orders, 2010.  The Mission has an approved staff structure of 5 staff positions out of which 4 (80%) were filled leaving 1 (20%) vacant. | +| 3. | Uganda Embassy in Algeria 2019/20 Opinion Unqualified |  All the planned 7 strategic targets/goals in the Mission charter were partially achieved.  There was a shortfall in NTR collections amounting to UGX.2.078Bn representing 0.5% performance.  Out of the total receipts for the financial year of UGX.4.16Bn, UGX.3.81Bn | + + +171 + +--- + +|| was spent by the entity resulting in an unspent balance of UGX.0.35Bn representing an absorption level of 91.5%.  I sampled 5 outputs with a total of 16 activities and actual expenditure of UGX.3.89Bn and observed that 1 output with a total of 6 activities and expenditure worth UGX.1.14Bn was fully quantified, 2 outputs with a total of 8 activities and expenditure worth UGX.2.47Bn were insufficiently quantified while 2 outputs with 2 activities and expenditure worth UGX.0.28Bn were not quantified at all.  Out of 6 activities planned, only 2 were fully implemented (33%) while 1 activity was partially implemented (17%) and 3 activities were actually not implemented (50%).  Funds to the tune of £ 890 (UGX.3,739,406) were irregularly diverted from the activities on which they were budgeted and spent on other activities without seeking and obtaining the necessary approvals.  The entity did not prepare and submit annual monitoring plans to MoFPED and NPA and also did not prepare and submit quarterly monitoring reports to the Office of the Prime Minister and MoFPED contrary to Paragraph 58 of the Budget Execution Circular for 2019/20.  A review of the cumulative performance reports revealed the subsequent quarterly performance reports did not include activities implemented in the previous quarter(s) and therefore, the cumulative activities reported in the fourth quarter performance report does not include all activities implemented in the first, second and third quarters.  The Mission paid Euros.45,314 (equivalent to UGX.190,390,396) in respect of education allowances direct to its officials instead of their respective educational institutions or schools contrary to Section (E - e) Paragraphs 19 and 20 of the Public Service Standing Orders 2010.  The Mission had a fixed assets register detailing all of the Mission’s assets but lacked some of the information such as date of purchase, estimated useful life, maintenance costs and the expected date of disposal making it incomplete. I further observed that a number of the entity’s assets were old and due for boarding off but this had not been done. | +|---|---| +| 4. | Uganda Embassy in Ankara 2019/20 Opinion Unqualified |  Out of the planned 10 strategic targets/goals in the Mission charter, seven (7) targets had been fully achieved, two (2) were partially achieved, while one (1) was not achieved.  There was a shortfall in NTR collections amounting to UGX.1.456Bn representing 0.93% performance.  I sampled 5 outputs with a total of 9 activities and actual expenditure of UGX.4.792Bn and observed that 3 outputs with a total of 7 activities and expenditure worth UGX.4.702Bn were fully quantified while 2 outputs with a total of 2 activities and expenditure worth UGX.0.9Bn were insufficiently quantified. I further observed that 3 outputs with 7 activities worth UGX.4.702Bn were partially implemented.  The Mission did not prepare and submit annual monitoring plans to MoFPED and NPA and also did not prepare and submit quarterly monitoring reports to the Office of the Prime Minister and MoFPED contrary to Paragraph 58 of the Budget Execution Circular for 2019/20.  The Mission submitted performance reports for Q1, Q2, Q3 and Q4 after the deadline given for submission of the reports.  The Embassy had a capital expenditure budget of UGX.90,000,000 to cater for office equipment, ICT equipment and furniture and fittings but | + + +172 + +--- + +|| management of the Embassy procured office equipment, ICT equipment and furniture and fittings worth UGX.129,698,987 resulting into a diversion of UGX.39,698,987. Furthermore, the additions in the Statement of Stores and Other Assets (physical assets) as at the end of the financial year 2019/2020 was UGX.129,698,987 but the payment file revealed that only office equipment, ICT equipment and furniture and fittings worth UGX.85,138,153 were procured implying that this statement is overstated by UGX.44,560,834.  The Embassy made upfront payments for rent of USD.74,850 (equivalent to UGX.279,215,200) beyond the financial year but did not disclose the prepayments in the Statement of Financial Position for the year.  The Mission paid USD.35,000 (equivalent to UGX.130,725,000) in respect of education allowances direct to its officials instead of their respective educational institutions or schools contrary to Section (E - e) Paragraphs 19 and 20 of the Public Service Standing Orders 2010.  The Embassy spent USD.53,627 (equivalent to UGX.200,296,400) on refunds for medical expenses to its officers contrary to Section M (m-a) (14) of the Public Service Standing Orders, 2010.  The Mission has an approved staff structure of 8 staff positions out of which, 5 (63%) were filled leaving 3 (37%) vacant. | +|---|---| +| 5 | Uganda Embassy in China, Beijing 2019/20 Opinion Qualified |  Out of the planned 8 strategic targets/goals in the Mission charter, three (3) targets had been fully achieved, three (3) were partially achieved, while two (2) was not achieved.  There was a shortfall in NTR collections amounting to UGX.4.17Bn representing 0.05% performance.  Out of the total receipts for the financial year of UGX.5.031Bn, UGX.4.276Bn was spent by the entity resulting in an unspent balance of UGX.0.755Bn representing an absorption level of 84.99%.  The Embassy received off-budget financing from the Contingency Fund as a relief fund for students locked down in Wuhan to a tune of UGX.227,318,724 which was not appropriated by Parliament.  I sampled 5 outputs with a total of 20 activities and actual expenditure of UGX.4.28Bn and observed that 1 output with a total of 20 activities and expenditure worth UGX.4.23Bn was fully quantified while 2 outputs with a total of 2 activities and expenditure worth UGX.0.05Bn were not quantified. I further noted that for the quantified outputs, 3 outputs with 20 activities worth UGX.4.23Bn were partially implemented, 9 (45%) activities were fully implemented, 2 (10%) activities partially implemented and 9 (45%) activities remained unimplemented  Funds to the tune of UGX.20,000,000 were irregularly diverted from purchase of specialized machinery and equipment for which they were budgeted to purchase of curtains without seeking and obtaining the necessary approvals.  The Mission did not prepare and submit annual monitoring plans to MoFPED and NPA and also did not prepare and submit quarterly monitoring reports to the Office of the Prime Minister and MoFPED contrary to Paragraph 58 of the Budget Execution Circular for 2019/20.  The Mission submitted performance reports for Q1, Q2, Q3 and Q4 after the deadline given for submission of the reports.  I noted 20 cases of activities that were not reported that were disclosed in quarter 2 and quarter 3 reports but not disclosed the cumulative 4th | + + +173 + +--- + +|| quarter performance report of the Mission.  The Mission had outstanding commitments to a tune of UGX.7,720,207 from the previous year but no budget was provided for settlement of domestic arrears in the current budget but the arrears were paid.  For procurements, I observed that the Mission had one member for an Evaluation Committee and there was lack involvement of the Contracts Committee in the procurement processes.  I observed that the fixed assets register maintained by the entity was not updated and not maintained in the format prescribed in the Treasury Instructions.  The Embassy spent RMB.154,898 (equivalent to UGX.81,538,197) on refunds for medical expenses to its officers contrary to the requirements of Section M (m-a) (14) of the Public Service Standing Orders, 2010.  Expenditure amounting to RMB.118,327 (equivalent to UGX.62,287,491) was incurred on staff telephone bills out of which RMB.78,885 (equivalent to UGX.41,524,994) representing 2/3 of the amount should have been recovered from staff but the recovery was not effected contrary to Section H (h-e) (12) of the Public service Standing Orders, 2010. | +|---|---| +| 6. | Uganda Embassy in Berlin 2019/20 Opinion Qualified |  The cashbook closing balance revealed an amount of Eur.8,442.77 (equivalent to UGX.35,283,771) while the bank statement closing balance revealed Eur.53,180.48 (222,250,267) resulting into un-reconciled difference of Eur.44,737.71 (equivalent to UGX.186,966,496).  Funds to the tune of EUR.22,056.39 (equivalent to UGX.92,053,888) were irregularly diverted from the activities on which they were budgeted and spent on other activities without seeking and obtaining the necessary approvals.  Out of the planned 21 strategic targets/goals in the Mission charter, 4 targets had been fully achieved, 11 were partially achieved, while 6 were not achieved.  There was a shortfall in NTR collections amounting to UGX.2.60Bn representing 1% performance.  I sampled 3 outputs with a total of 16 activities and actual expenditure of UGX.5.72Bn and observed that 2 outputs with 8 activities and expenditure worth UGX.5.38Bn were fully quantified while 1 output with 8 activities and expenditure worth UGX.0.34Bn was partially quantified at 50% quantification. Out of 8 activities, 3 (37.5%) activities were fully implemented, 3 (37.5%) activities were partially implemented and 2 (25%) activities were not implemented at all.  The entity submitted performance reports for Q1, Q2, Q3 and Q4 but there was no evidence for submission before elapse of the deadline.  The Embassy’s assets were old and due for boarding off but action had not been taken.  The Embassy paid EUR.11,252.55 (equivalent to UGX.47,026,319) in respect of education allowances direct to its officials instead of their respective education institutions or schools contrary to Section (E - e) Paragraphs 19 and 20 of the Public Service Standing Orders, 2010.  The Embassy spent EUR.74,105.28 (equivalent to UGX.309,698,564) on refunds for medical expenses to its officers contrary to the requirements of Section M (m-a) (14) of the Public Service Standing Orders, 2010.  The Embassy paid allowances to staff in form of per diems totalling to | + + +174 + +--- + +|| EUR.37,847.45 (equivalent to UGX.158,170,928) during the period when Germany was under lock down (March to June, 2020). I could not establish the genuineness of the expenditure.  The Embassy has an approved staff structure of 8 positions out of which 5 (62.5%) were filled leaving 3 (37.5%) vacant. | +|---|---| +| 7. | Uganda Embassy in Brussels 2019/20 Opinion Unqualified |  Out of the planned 10 strategic targets/goals in the Mission charter, two (2) targets had been fully achieved while eight (8) were partially achieved.  There was a shortfall in NTR collections amounting to UGX.1.445Bn representing 7.9% performance.  I sampled 4 outputs with a total of 11 activities and actual expenditure of UGX.10.359Bn and observed that all the 4 outputs with a total of 11 activities and expenditure worth UGX.10.359Bn were fully quantified. I further observed that 1 output with 1 activity worth UGX.4.993Bn was fully implemented while 3 outputs with 10 activities worth UGX.5.336Bn were partially implemented.  Funds to the tune of USD.1,949.02 (equivalent to UGX.7,990,982) were irregularly diverted from the activities on which they were budgeted and spent on other activities without seeking and obtaining the necessary approvals.  The Mission did not prepare and submit annual monitoring plans to MoFPED and NPA and also did not prepare and submit quarterly monitoring reports to the Office of the Prime Minister and MoFPED contrary to Paragraph 58 of the Budget Execution Circular for 2019/20.  The entity submitted performance reports for Q1, Q2, Q3 and Q4 but there was no evidence for submission before elapse of the deadline. I noted cases of material inaccuracies and inconsistencies in the annual cumulative performance reports.  The Embassy paid Euro.21,086.69 (equivalent to UGX.88,711,704) in respect of education allowances direct to its officials instead of their respective education institutions or schools contrary to Section (E - e) Paragraphs 19 and 20 of the Public Service Standing Orders, 2010.   The Embassy spent Embassy spent Euro.16,297.47 (equivalent to UGX.68,563,456) on refunds for medical expenses to its officers contrary to the requirements of Section M (m-a) (14) of the Public Service Standing Orders, 2010.  Euro.15,364.80 (equivalent to UGX.64,639,713) was incurred on the payments for telephone bills out of which Euro.10,243.20 (UGX.43,093,142), equivalent to (2/3) should have been recovered from the respective staff during the period but the recovery was not effected contrary to Section H (h-e) (12) of the Public service Standing Orders, 2010.  The Embassy has an approved staff structure of 8 positions out of which 6 (75%) were filled leaving 2 (25%) vacant. | +| 8. | Uganda Embassy in Bujumbura 2019/20 Opinion Unqualified |  Out of the planned 9 strategic targets/goals in the Mission charter, three (3) targets had been fully achieved, three (3) were partially achieved while three (3) were not achieved.  There was a shortfall in NTR collections amounting to UGX.3.087Bn representing 1.68% performance. | + + +175 + +--- + +||  I sampled 6 outputs with a total of 23 activities and actual expenditure of UGX.4.140Bn and observed that 4 outputs with a total of 21 activities and expenditure worth UGX.3.440Bn were fully quantified while 2 outputs with a total of 2 activities and expenditure worth UGX.0.7Bn were insufficiently quantified. I further observed that all 4 outputs with 21 activities were partially implemented.  The Mission did not prepare and submit annual monitoring plans to MoFPED and NPA and also did not prepare and submit quarterly monitoring reports to the Office of the Prime Minister and MoFPED contrary to Paragraph 58 of the Budget Execution Circular for 2019/20.  The entity submitted performance reports for Q1, Q2, Q3 and Q4 but there was no evidence for submission before elapse of the deadline.  The Mission had total collections including balance brought forward from previous year of UGX.59,804,444 out of which UGX.17,626,729 had been transferred to the Treasury for onward transfer to the Consolidated Fund leaving a balance UGX.42,177,715 not remitted  The Embassy paid USD.16,000 (equivalent to UGX.59,685,280) in respect of education allowances direct to its officials instead of their respective education institutions or schools contrary to Section (E - e) Paragraphs 19 and 20 of the Public Service Standing Orders, 2010.  BIF.452,224,651 (equivalent to UGX.863,334,000) was withdrawn from the Mission’s expenditure account as cash imprest but was not adequately accounted for.  The Embassy maintains an asset register which is not in the format prescribed in the Treasury Instructions and has a number of assets that are unserviceable and need to be disposed of. | +|---|---| +| 9. | Uganda Embassy in Cairo, 2019/20 Opinion Unqualified |  All the seven (7) targets/goals of the Mission Charter were partially achieved.  There was a shortfall in NTR collections amounting to UGX.1.999Bn representing 4.45% performance.  Out of the total receipts for the financial year of UGX.5.564Bn, UGX.4.952Bn was spent by the entity resulting in an unspent balance of UGX.0.612Bn representing an absorption level of 89%.  4 outputs with 14 activities and expenditure worth UGX.3.176Bn were not quantified to enable assessment of performance.  The Mission did not prepare and submit annual monitoring plans to MoFPED and NPA and also did not prepare and submit quarterly monitoring reports to the Office of the Prime Minister and MoFPED contrary to Paragraph 58 of the Budget Execution Circular for 2019/20.  The entity submitted performance reports for Q1, Q2, Q3 and Q4 but there was no evidence for submission before elapse of the deadline.  The Mission had total collections including balance brought forward from previous year of UGX.238,031,600 out of which UGX.183,216,635 had been transferred to the Treasury for onward transfer to the Consolidated Fund leaving a balance UGX.54,814,965 not remitted.  UGX.90,391,294 was disclosed as unspent balances for the period 2018/19 but note 17, cash and cash equivalents indicates that the prior year closing balance was UGX.75,022,891. The variance amounting to UGX.15,368,403 was not explained.  EGP.1,015,780.00 (equivalent to UGX.229,058,390) was drawn as imprest | + + +176 + +--- + +|| and spent on activities such as advances, transport and per diems which are not small incidental expenditures contrary to Instruction 17.22 of the Treasury Instructions 2017.  The Embassy paid USD.27,419.00 (equivalent to UGX.101,998,680) in respect of education allowances direct to its officials instead of their respective education institutions or schools contrary to Section (E - e) Paragraphs 19 and 20 of the Public Service Standing Orders, 2010.  The Embassy spent Egyptian pounds.255,613 (equivalent to UGX.57,640,732) on refunds for medical expenses to its officers contrary to the requirements of Section M (m-a) (14) of the Public Service Standing Orders, 2010. | +|---|---| +| 10 | Uganda High Commission in Canberra. 2019/20 Opinion Qualified |  The High Commission made upfront payments for rent of AUD.43,096.67 (equivalent to UGX.109,469,851) beyond the financial year but did not disclose the same as prepayments in the Statement of Financial Position for the year.  The High Commission did not provide strategic performance reports and therefore, I could not undertake an assessment of the achievements of the Mission charter targets/goals.  There was a shortfall in NTR collections amounting to UGX.1.00Bn representing 0.05% performance.  I sampled 3 outputs with a total of 9 activities and actual expenditure of UGX.4.84Bn and observed that the activities were not quantified. I was therefore unable to undertake assessment of the performance of the High Commission.  The Mission did not prepare and submit annual monitoring plans to MoFPED and NPA and also did not prepare and submit quarterly monitoring reports to the Office of the Prime Minister and MoFPED contrary to Paragraph 58 of the Budget Execution Circular for 2019/20.  The entity submitted performance reports for Q1, Q2 and Q3 after the deadline given for submission. I noted cases of material inaccuracies and inconsistencies in the level of performance reported.  Assets to the tune of AUD.25,060 (equivalent to UGX.63,654,906) were procured during the year which were not disclosed in the summary statement of stores and other assets (physical assets) at the end of the year.  The High Commission had total collections including balance brought forward from previous year of UGX.59,002,072. At the closure of the period, no funds had been transferred to the Treasury for onward transfer to the Consolidated Fund thus implying UGX.59,002,072 was not remitted  The Embassy paid AUD.77,726 (equivalent to UGX.197,430,593) in respect of education allowances direct to its officials instead of their respective education institutions or schools contrary to Section (E - e) Paragraphs 19 and 20 of the Public Service Standing Orders, 2010.  The Embassy spent AUD.77,726 (equivalent to UGX.197,430,593) on refunds for medical expenses to its officers contrary to the requirements of Section M (m-a) (14) of the Public Service Standing Orders, 2010.  AUD.28,722 (equivalent to UGX.72,956,752) out of which AUD.19,148 (equivalent to UGX.48,637,835) representing 2/3 of the amount should have been recovered from the respective staff was incurred on the payments for telephone bills during the period. The recovery was not | + + +177 + +--- + +|| effected.  AUD.44,725.21 (equivalent to UGX.113,605973) was withdrawn from the High Commission’s local expenditure account as cash imprest but was not adequately accounted for.  Out of an approved staff structure of 7 staff positions for the Mission, six (86%) were filled leaving one (14%) vacant. | +|---|---| +| 11. | Uganda High Commission in Dar es Salaam. 2019/20 Opinion Unqualified |  Out of the planned 30 strategic targets/goals in the Mission charter, eight(8) outputs/targets had been fully achieved, twelve (12) were partially achieved, while ten (10) were not achieved.  There was a shortfall in NTR collections amounting to UGX.3.12Bn representing 0.01% performance.  I sampled 5 outputs with a total of 18 activities and actual expenditure of UGX.5.277Bn and observed that 1 output with 1 activity and expenditure worth UGX.0.173 was fully quantified, 1 output with 4 activities and expenditure worth UGX.0.674Bn was partially quantified at 50% quantification while 3 outputs with 13 activities and expenditure worth UGX.4.43Bn were not quantified. I further observed that 1 output with 1 activity and expenditure worth UGX.0.173Bn was partially implemented.  The entity submitted performance reports for Q1, Q2, Q3 and Q4 but there was no evidence for submission before elapse of the deadline.  Prepayments amounting to TSHS.1,130,500 (equivalent to UGX.1,818,975) were made to various suppliers for services but were not disclosed in the financial statements thereby understating the assets in the Statement of Financial Position and overstating expenditure in the Statement of Financial Performance.  The Embassy owns land in Dodoma on which the proposed Chancery building and official residence are to be constructed but the value of this land was not disclosed in the financial statements contrary to GOU accounting policy ‘disclosure of land under non-produced assets.  The Embassy paid UGX.74,506,600 in respect of education allowances direct to its officials instead of their respective education institutions or schools contrary to Section (E - e) Paragraphs 19 and 20 of the Public Service Standing Orders, 2010.  The Embassy spent UGX.61,871,014 on refunds for medical expenses to its officers contrary to the requirements of Section M (m-a) (14) of the Public Service Standing Orders, 2010.  UGX.15,954,192 out of which UGX.10,636,129 representing 2/3 of the amount should have been recovered from the respective staff was incurred on the payments for telephone bills during the period. The recovery was not effected.  Out of an approved staff structure of 7 staff positions for the Mission, 5 (71%) were filled leaving 2 (29%) vacant. | +| 12. | Uganda High Commission in Doha. 2019/20 Opinion Qualified |  Prepayments amounting to QR.424,000 (equivalent to UGX.431,046,880) were made to various suppliers for services but were not disclosed in the financial statements thereby understating the assets in the Statement of Financial Position and overstating expenditure in the Statement of Financial Performance.  There was a shortfall in NTR collections amounting to UGX.1.547Bn representing 1.45% performance.  Out of the total receipts for the financial year of UGX.3.293Bn, | + + +178 + +--- + +|| UGX.2.64Bn was spent by the entity resulting in an unspent balance of UGX.0.653Bn representing an absorption level of 80.2%.  I sampled 5 outputs with a total of 7 activities and actual expenditure of UGX.2.64Bn and observed that 2 outputs of the 5 outputs with a total of 2 activities and expenditure worth UGX.0.06Bn were not quantified. I further observed that 1 output out of the 3 outputs with 2 activities worth UGX.2.02Bn was fully implemented 2 outputs with 3 activities worth UGX.0.56Bn were partially implemented.  The Mission did not prepare and submit annual monitoring plans to MoFPED and NPA and also did not prepare and submit quarterly monitoring reports to the Office of the Prime Minister and MoFPED contrary to Paragraph 58 of the Budget Execution Circular for 2019/20.  The Embassy submitted performance reports for Q1, Q2, Q3 and Q4 after the deadline given for submission of the reports.  The Embassy spent QR.11,481 (equivalent to UGX.11,671,814) on refunds for medical expenses to its officers contrary to the requirements of Section M (m-a) (14) of the Public Service Standing Orders, 2010.  QR.43,652 (equivalent to UGX.44,377,496) out of which (2/3) amounting to QR.29,101 (equivalent to UGX.29,584,659) should have been recovered from the respective staff was incurred on the payments for telephone bills during the period. The recovery was not effected.  I noted that all the three (3) sampled procurements were undertaken using direct procurement method but no justification was given and no contract manager was appointed to oversee these procurements.  Out of an approved staff structure of 7 staff positions for the Mission, 9 (60%) were filled leaving 6 (40%) vacant. | +|---|---| +| 13 | Uganda High Commission in Geneva. 2019/20 Opinion Unqualified |  There was a shortfall in NTR collections amounting to UGX.3.045Bn representing 3% performance.  I sampled 3 outputs with a total of 7 activities and actual expenditure of UGX.7.66Bn and observed that all the 3 outputs were fully quantified and were partially implemented.  The Mission did not prepare and submit annual monitoring plans to MoFPED and NPA and also did not prepare and submit quarterly monitoring reports to the Office of the Prime Minister and MoFPED contrary to Paragraph 58 of the Budget Execution Circular for 2019/20.  The Embassy submitted performance reports for Q1, Q2, Q3 and Q4 after the deadline given for submission of the reports.  The Mission had total collections including balance brought forward from previous year of UGX.345,130,819. At the closure of the period, UGX.146,139,671 had been transferred to the Treasury for onward transfer to the Consolidated Fund leaving a balance UGX.198,991,148 not remitted.  UGX.27,296,608 was spent on procurements outside the approved procurement plan for the financial year 2019/2020 while procurements worth UGX.294,979,327 were acquired using the wrong procurement methods.  The fixed assets register maintained by the entity was not updated as it lacks details of exact month of purchase (only the year was mentioned), maintenance cost and estimated useful life of the asset.  The Embassy paid UGX.39,320,000 in respect of education allowances | + + +179 + +--- + +|| direct to its officials instead of their respective education institutions or schools contrary to Section (E - e) Paragraphs 19 and 20 of the Public Service Standing Orders, 2010.  CHF.12,623 (equivalent to UGX.49,602,836) out of which CHF.8,415 (equivalent to UGX.33,068,557) equivalent to 2/3 should have been recovered from the respective staff was incurred on the payments for telephone bills during the period. The recovery was not effected.  Out of an approved staff structure of 7 staff positions for the Mission, six (86%) were filled leaving one (14%) vacant. | +|---|---| +| 14 | Uganda Consulate in Guangzhou, China 2019/20 Opinion Unqualified |  Out of the planned 8 strategic targets/goals in the Mission charter, six (6) outputs/targets had been fully achieved while two (2) were partially achieved.  There was a shortfall in NTR collections amounting to UGX.2.037Bn representing 2.54% performance.  UGX.4.745Bn was budgeted out of which UGX.4.545Bn was warranted, resulting in a shortfall of UGX.0.2Bn resulting in 95.8% funding of the budget. Of the received amount of UGX.4.545Bn, UGX.3.945Bn was spent resulting in an unspent balance of UGX.0.6Bn representing an absorption level of 86.8%.  I sampled 4 outputs with a total of 6 activities and actual expenditure of UGX.3.94Bn and observed that 3 outputs with a total of 4 activities and expenditure worth UGX.3.717Bn were fully quantified while 1 output with a total of 2 activities and expenditure worth UGX.0.228Bn was insufficiently quantified. I further observed that 2 outputs with 3 activities worth UGX.1.682Bn were partially implemented while 1 output with 1 activity worth UGX.2.0Bn was not implemented at all .  The Mission did not prepare and submit annual monitoring plans to MoFPED and NPA and also did not prepare and submit quarterly monitoring reports to the Office of the Prime Minister and MoFPED contrary to Paragraph 58 of the Budget Execution Circular for 2019/20.  The entity submitted performance reports for Q1, Q2 and Q3 after the deadline given for submission. I noted that the performance reports did not report on the project 1169, strengthening the consulate in Guangzhou by procurement of a utility van.  Prepayments amounting to RMB.21,000 (equivalent to UGX.11,466,000) and USD.26,406.60 (equivalent to UGX.107,743,023.20) were made to various suppliers for services but were not disclosed in the financial statements thereby understating the assets in the Statement of Financial Position and overstating expenditure in the Statement of Financial Performance.  The Embassy spent RMB.244,833.6 (equivalent to UGX.129,641,839.54) and USD.500 (equivalent to UGX.1,875,165.00) on refunds for medical expenses to its officers contrary to the requirements of Section M (m-a) (14) of the Public Service Standing Orders, 2010.  The Consulate has land located on plot no. D8 Yi Zhou Rd in Chigang District which is idle and may be repossessed by the host country. In addition, the Consulate owns a utility van whose repair and maintenance costs have escalated is due for disposal and plans were in place to procure a new one but this was not done. | +| 15. | Uganda Embassy in South Sudan. 2019/20 |  Prepayments amounting to UGX.399,145,310 were made to various suppliers for services but were not disclosed in the financial statements | + + +180 + +--- + +|| Opinion Qualified | thereby understating the assets in the Statement of Financial Position and overstating expenditure in the Statement of Financial Performance.  Out of the planned 7 strategic targets/goals in the Mission charter, 2 outputs/targets had been fully achieved while 5 were partially achieved.  There was a shortfall in NTR collections amounting to UGX.2.56Bn representing 17.3% performance.  Out of the total receipts for the financial year of UGX.7.624Bn, UGX.9.11Bn was spent by the entity resulting into an over absorption of UGX.1.48Bn representing an absorption level of 119%.  I sampled 5 outputs with a total of 30 activities and actual expenditure of UGX.7.07Bn and observed that 4 outputs with a total of 18 activities and expenditure worth UGX.6.69Bn were fully quantified while 1 output with a total of 12 activities and expenditure worth UGX.0.39Bn was insufficiently quantified. For the 5 fully quantified outputs, 2 outputs with 2 activities worth UGX.2.55Bn were fully implemented while 3 outputs with 28 activities worth UGX.4.09Bn were partially implemented.  Funds to the tune of USD.17,382.29 (equivalent to UGX.64,841,678) were irregularly diverted from the activities on which they were budgeted and spent on other activities without seeking and obtaining the necessary approvals.  The Mission did not prepare and submit annual monitoring plans to MoFPED and NPA and also did not prepare and submit quarterly monitoring reports to the Office of the Prime Minister and MoFPED contrary to Paragraph 58 of the Budget Execution Circular for 2019/20.  The entity submitted performance reports for Q1, Q2 and Q3 after the deadline given for submission. I noted some cases of material inaccuracies and inconsistencies in the level of performance reported.  UGX.328,779,539 reported as cash in transit has been in the books of the Embassy for more than three financial years and the funds have never been credited to the Consolidated Fund.  The Mission had total collections including balance brought forward from previous year of UGX.884,552,695out of which UGX.180,503,771 had been transferred to the Treasury for onward transfer to the Consolidated Fund leaving a balance UGX.704,048,924 not remitted.  The Embassy paid USD.25,000.00 (equivalent to UGX.93,258,250) in respect of education allowances direct to its officials instead of their respective education institutions or schools contrary to Section (E - e) Paragraphs 19 and 20 of the Public Service Standing Orders, 2010.  USD.1,613.00 (equivalent to UGX.6,017,022) out of which USD.1,076.00 (equivalent to UGX.4,013,835) representing 2/3 of the amount should have been recovered from the respective staff was incurred on the payments for telephone bills during the period. The recovery was not effected.  Out of an approved staff structure of 6 staff positions for the Mission, 5 (83%) were filled leaving 1(17%) vacant. | +|---|---|---| +| 16. | Uganda Embassy in Khartoum. 2019/20 Opinion |  Out of the planned 10 strategic targets/goals in the Mission charter, 5 outputs/targets had been fully achieved while 3 were partially achieved.  There was a shortfall in NTR collections amounting to UGX.2.5Bn representing 2.01% performance.  I sampled 4 outputs with a total of 11 activities and actual expenditure of | + + +181 + +--- + +|| Unqualified | UGX.4.169Bn and observed that 2 outputs with a total of 6 activities and expenditure worth UGX.0.95Bn were fully quantified, 1 output with a total of 4 activities and expenditure worth UGX.3.11Bn was insufficiently quantified while 1 output with 1 activity and expenditure worth UGX.0.11 was totally not quantified. I further observed that no output was fully implemented while 3 outputs with 10 activities worth UGX.4.09Bn were partially implemented.  Funds to the tune of USD.4,393.04 (equivalent to UGX.15,595,150) were irregularly diverted from the activities on which they were budgeted and spent on other activities without seeking and obtaining the necessary approvals.  The Mission did not prepare and submit annual monitoring plans to MoFPED and NPA and also did not prepare and submit quarterly monitoring reports to the Office of the Prime Minister and MoFPED contrary to Paragraph 58 of the Budget Execution Circular for 2019/20.  The entity submitted performance reports for Q1, Q2 and Q3 after the deadline given for submission.  The Embassy paid USD.17,500.00 (equivalent to UGX.64,925,000) in respect of education allowances direct to its officials instead of their respective education institutions or schools contrary to Section (E - e) Paragraphs 19 and 20 of the Public Service Standing Orders, 2010.  The Embassy spent USD.3,702.42 (equivalent to UGX.13,702,656.42) on refunds for medical expenses to its officer’s contrary to the requirements of Section M (m-a) (14) of the Public Service Standing Orders, 2010.  USD.7,979.94 (equivalent to UGX.29,605,577) out of which USD.5,319.96 (equivalent to UGX.19,737,051) representing 2/3 of the amount should have been recovered from the respective staff was incurred on the payments for telephone bills during the period. The recovery was not affected.  Out of an approved staff structure of 5 staff positions for the Mission, 4 (80%) were filled leaving 1 (20%) vacant. | +|---|---|---| +| 17 | Uganda Embassy in Kigali. 2019/20 Opinion Unqualified |  Out of the planned 10 strategic targets/goals in the Mission charter, 2 outputs/targets had been fully achieved, 2 were partially achieved while 6 were partially achieved.  There was a shortfall in NTR collections amounting to UGX.3.07Bn representing 2.3% performance.  I sampled 4 outputs with a total of 13 activities and actual expenditure of UGX.3.325Bn and observed that all the 4 outputs were not quantified. Therefore, I was unable to undertake assessment of the performance of the Mission.  The Mission did not prepare and submit annual monitoring plans to MoFPED and NPA and also did not prepare and submit quarterly monitoring reports to the Office of the Prime Minister and MoFPED contrary to Paragraph 58 of the Budget Execution Circular for 2019/20.  The entity submitted performance reports for Q1, Q2 and Q3 after the deadline given for submission. I noted that the cumulative activities reported in the fourth quarter performance report did not include all activities implemented in the first, second and third quarters.  I noted that the assets register maintained was not in the format prescribed in the Treasury Instructions and lacked details of date of purchase, cost of purchase, maintenance cost, asset code and estimated | + + +182 + +--- + +|| useful life.  Out of an approved staff structure of 5 staff positions for the Mission, two (2) (40%) were filled leaving 3 (60%) vacant. | +|---|---| +| 18 | Uganda Embassy in Kinshasa. 2019/20 Opinion Qualified |  UGX.241,949,940 was reported as the variance between the approved budget/warrants and the actual expenditure instead of UGX.3,564,587. The source of UGX.241,949,940 could not be established.  The statement of revenue collected in the financial statements in comparison with statement of performance and the NTR estimates for the year revealed different amounts were budgeted for as NTR collections for the year UGX.700,000,000 in the Statement of Performance, UGX.2,090,000,000 in the NTR estimates book, UGX.245,514,528 in the Statement of Appropriation (based on services voted) and UGX.245,514,528 in the Statement of revenue collected during the year. This misleads the users of the financial statements.  All 8 strategic targets/goals in the Mission charter were partially achieved.  There was a shortfall in NTR collections amounting to UGX.1.844Bn representing 11.75% performance.  I sampled 3 outputs with a total of 6 activities and actual expenditure of UGX.4.13Bn and observed that 2 outputs with a total of 4 activities and expenditure worth UGX.1.21Bn were fully quantified while 1 output with a total of 2 activities and expenditure worth UGX.2.91Bn was insufficiently quantified. Of the outputs that were fully quantified, 4 activities worth UGX.1.21Bn were partially implemented.  The Mission did not prepare and submit annual monitoring plans to MoFPED and NPA and also did not prepare and submit quarterly monitoring reports to the Office of the Prime Minister and MoFPED contrary to Paragraph 58 of the Budget Execution Circular for 2019/20.  The entity submitted performance reports for Q1, and Q4 after the deadline given for submission.  The Embassy paid UGX.83,932,425 in respect of education allowances direct to its officials instead of their respective education institutions or schools contrary to Section (E - e) Paragraphs 19 and 20 of the Public Service Standing Orders, 2010.  USD.45,232 (equivalent to UGX.168,730,287) was spent on purchases and allowances which are not small incidental expenditures such as postage and other office costs as guided by the Treasury Instructions 2017\. I found this irregular.  The Embassy paid allowances to staff in form of COVID Allowances totalling to USD.3,100 (equivalent to UGX.11,564,023), a period when DR Congo was under lock down (March to June, 2020) contrary to Paragraph (E-a)1 – 2 of the Public Service Standing Orders, 2010 .  I noted that procurements worth UGX.54,649,335 were undertaken outside the approved procurement plan and procurement for medical insurance of staff worth UGX.71,495,505 was a direct procurement with no justification.  The Embassy had a fixed asset register that lacked information such as date of purchase, estimated useful life, maintenance costs and the expected date of disposal and a number of the entity’s assets were not well maintained and utilized.  Out of an approved staff structure of 21 staff positions for the Mission, 18 | + + +183 + +--- + +|| (85.7%) were filled leaving 3 (14.3%) vacant. | +|---|---| +| 19 | Uganda High Commission in Kuala Lumpur. 2019/20 Opinion Unqualified |  Out of the planned 10 (ten) strategic targets/goals in the Mission charter, one (1) target had been fully achieved, three (3) were partially achieved, while six (6) were not achieved.  There was a shortfall in NTR collections amounting to UGX.2.068Bn representing 1% performance.  I sampled 3 outputs with a total of 13 activities and actual expenditure of UGX.3.57Bn and observed that 2 outputs with a total of 9 activities and expenditure worth UGX.0.87Bn were fully quantified while 1 output with a total of 4 activities and expenditure worth UGX.2.6Bn was insufficiently quantified. Of the fully quantified outputs, 1 output with 5 activities worth UGX.0.21Bn was fully implemented while 1 output with 4 activities worth UGX.0.66Bn was partially implemented.  Funds to the tune of MYR.11,209 (equivalent to UGX.9,763,039) were irregularly diverted from purchase of specialized machinery and equipment for which they were budgeted to purchase of curtains without seeking and obtaining the necessary approvals.  The Mission did not prepare and submit annual monitoring plans to MoFPED and NPA and also did not prepare and submit quarterly monitoring reports to the Office of the Prime Minister and MoFPED contrary to Paragraph 58 of the Budget Execution Circular for 2019/20.  The Mission submitted performance reports for Q2 and Q3 after the deadline given for submission of the reports.  The Embassy paid MYR.136,000 (equivalent to UGX.118,456,000) in respect of education allowances direct to its officials instead of their respective education institutions or schools contrary to Section (E - e) Paragraphs 19 and 20 of the Public Service Standing Orders, 2010.  The Mission has an approved staff structure of five (5) staff positions out of which, two (2) (40%) were filled leaving three (3) (60%) vacant.  Management of the Embassy paid salary and FSA advances to staff to the tune of MYR.185,950 (equivalent to UGX.160,995,510) which exceeded three (3) months gross pay and no authority was sought from Secretary to the Treasury. This is contrary to the Public Service Standing Orders, 2010. | +| 20 | Uganda High Commission in London. 2019/20 Opinion Unqualified |  Out of the planned 9 (nine) strategic targets/goals in the Mission charter, four (4) targets had been fully achieved, three (3) were partially achieved, while two (2) were not achieved.  There was a shortfall in NTR collections amounting to UGX.1.604Bn representing 31% performance.  I sampled 4 outputs with a total of 7 activities and actual expenditure of UGX.7.32Bn and observed that all the 4 outputs with 7 activities and expenditure worth UGX.7.32Bn were not quantified to enable assessment of performance.  Funds to the tune of GBP.2,598.56 (equivalent to UGX.11,756,583) were irregularly diverted from purchase of specialized machinery and equipment for which they were budgeted to purchase of curtains without seeking and obtaining the necessary approvals.  Entities are supposed to report actual performance of the quarter as well as the cumulative activities of the previous quarter(s). I observed that cumulative performance reports did not include activities implemented in | + + +184 + +--- + +|| the previous quarter(s).  The Mission had total collections including balance brought forward from previous year of UGX.1,606,177,645 out of which UGX.706,072,607 had been transferred to the Treasury for onward transfer to the Consolidated Fund leaving a balance UGX.900,105,038 not remitted.  Payables increased from UGX.130,550,604 in the previous year to UGX.161,515,890 in the year under review, an increase of 24%. The arrears remained unsettled at the close of the year.  Management has accumulated receivable advances to the tune of UGX.105,435,937 of which UGX.79,896,783 (76%) relates to the prior year and remains unrecovered.  The Statement of Stores and Other Assets (physical assets) as at the end of the financial year 2019/2020 revealed that additions during the year relating to non-residential buildings were disclosed as UGX.465,161,335, however, the Embassy procured items amounting to GBP.107,661 (equivalent to UGX.494,777,699) implying that items worth UGX.29,616,364 were not disclosed in this statement thus understating the Statement of Stores and Other Assets (physical assets).  The Embassy had a capital expenditure budget of UGX.275,000,000 but items worth UGX.494,777,699 were procured resulting into an over expenditure of UGX.224,777,699.  The Embassy paid GBP.28,187.49 (equivalent UGX.129,541,258) in respect of education allowances direct to its officials instead of their respective education institutions or schools contrary to Section (E - e) Paragraphs 19 and 20 of the Public Service Standing Orders, 2010.  The Embassy spent GBP.14,300.09 (equivalent to UGX.65,718,929) on refunds for medical expenses to its officers contrary to the requirements of Section M (m-a) (14) of the Public Service Standing Orders, 2010.  The Mission has an approved staff structure of eight (8) staff positions out of which, 5 (63%) were filled leaving 3 (37%) vacant. | +|---|---| +| 21. | Uganda Embassy in Mogadishu. 2019/20 Opinion Unqualified |  Out of the planned 5 strategic targets/goals in the Mission charter, all the 5 were partially achieved.  There was a shortfall in NTR collections amounting to UGX.3.14Bn representing 0% performance.  Out of the total receipts of UGX.3.78Bn, UGX.2.87Bn was spent by the entity resulting in an unspent balance of UGX.0.91Bn representing an absorption level of 76%.  I sampled 3 outputs with a total of 6 activities and actual expenditure of UGX.2.87Bn and observed that all the 3 outputs with a total of 6 activities and expenditure worth UGX.2.87Bn were not quantified at all. I was therefore unable to assess the implementation of outputs/activities of the Mission.  Funds to the tune of UGX.16,835,000 were irregularly diverted from the activities on which they were budgeted and spent on other activities without seeking and obtaining the necessary approvals.  The Mission did not prepare and submit annual monitoring plans to MoFPED and NPA and also did not prepare and submit quarterly monitoring reports to the Office of the Prime Minister and MoFPED contrary to Paragraph 58 of the Budget Execution Circular for 2019/20.  The Mission submitted performance reports for Q1, Q2, Q3 and Q4 after | + + +185 + +--- + +|| the deadline given for submission.  The Mission had total collections including balance brought forward from previous year of UGX.850,244,773 out of which UGX.7,829 had been transferred to the Treasury for onward transfer to the Consolidated Fund leaving a balance UGX.850,236,944 not remitted.  USD.1,020,250 (equivalent to UGX.3,800,767,933) was withdrawn as petty cash during the year out of which USD.340,250.00 (equivalent to UGX.1,267,543,533) was withdrawn in the last quarter of the financial year (March, April, May and June), the period affected by COVID 19 lockdown which appears irregular.  The Embassy paid UGX.83,250,000 in respect of education allowances direct to its officials instead of their respective education institutions or schools contrary to Section (E - e) Paragraphs 19 and 20 of the Public Service Standing Orders, 2010. | +|---|---| +| 22. | Uganda Consulate in Mombasa. 2019/20 Opinion Unqualified |  Out of the planned 6 strategic targets/goals in the Mission charter, 2 outputs/targets had been fully achieved while 4 were partially achieved.  There was a shortfall in NTR collections amounting to UGX.2.089Bn representing 0.01% performance.  Out of the total receipts for the financial year of UGX.1.996Bn, UGX.1.883Bn was spent by the entity resulting in an under expenditure of UGX.0.113Bn representing an absorption level of 94.34%.  UGX.12,562,792 was received as off-budget financing for a symposium held in the financial year under review but the funds were not disclosed in the financial statements.  I sampled 3 outputs with a total of 4 activities and actual expenditure of UGX.1.883Bn and observed that 1 output with a total of 2 activities and expenditure worth UGX.0.73Bn was fully quantified while 2 outputs with a total of 2 activities and expenditure worth UGX.1.15Bn were insufficiently quantified. The quantified output with all its activities with its activities and expenditure worth UGX.0.73Bn was partially implemented.  Funds to the tune of UGX.5,205,620 were charged wrongly on other expenditure item codes without obtaining the necessary approvals.  The Mission did not prepare and submit annual monitoring plans to MoFPED and NPA and also did not prepare and submit quarterly monitoring reports to the Office of the Prime Minister and MoFPED contrary to Paragraph 58 of the Budget Execution Circular for 2019/20.  Entities are supposed to report actual performance of the quarter as well as the cumulative activities of the previous quarter(s). I observed that cumulative performance reports did not include activities implemented in the previous quarter(s).  The Embassy paid UGX.44,763,960 in respect of education allowances direct to its officials instead of their respective education institutions or schools contrary to Section (E - e) Paragraphs 19 and 20 of the Public Service Standing Orders, 2010.  A number of the Consulate’s assets were old and due for boarding off but were still at the Consulate resulting into loss of value and high maintenance costs. | +| 23. | Uganda Embassy in Moscow. 2019/20 |  Out of the planned 24 (twenty-four) strategic targets/goals in the Mission charter, thirteen (13) targets had been fully achieved, eight (8) were partially achieved, while three (3) were not achieved. | + + +186 + +--- + +|| Opinion Unqualified |  There was a shortfall in NTR collections amounting to UGX.1.462Bn representing 6.8% performance.  I sampled 4 outputs with a total of 12 activities and actual expenditure of UGX.4.32Bn and observed that 2 outputs with a total of 8 activities and expenditure worth UGX.4Bn were fully quantified while 2 outputs with a total of 4 activities and expenditure worth UGX.0.32Bn were not quantified. The quantified outputs were partially quantified.  The Mission did not prepare and submit annual monitoring plans to MoFPED and NPA and also did not prepare and submit quarterly monitoring reports to the Office of the Prime Minister and MoFPED contrary to Paragraph 58 of the Budget Execution Circular for 2019/20.  The Mission submitted performance reports for Q1, and Q3, after the deadline given for submission  The Statement of Stores and Other Assets (physical assets) as at the end of the financial year 2019/2020 revealed that additions during the year relating to non-residential buildings were disclosed as UGX.149,778,932, however, the Embassy procured items amounting to UGX.333,509,897 implying that items worth UGX.183,730,965 were not disclosed in this statement thus understating the Statement of Stores and Other Assets (physical assets).  The Embassy had an approved budget of UGX.196,000,000 for procurement of furniture and fixtures but a sum of UGX.333,509,897 on this item resulting into an excess expenditure of UGX.137,509,987.  The Embassy procured furniture and fittings for furnishing six residencies and a Chancery worth RUB.6,795,232 (equivalent to UGX.333,509,897) but were not recorded in the Embassy asset register as well as the Board of Survey report, direct procurement method was used without justification, procurements did not undergo any evaluation of bids, contracts committee was not involved during the procurement process and contract managers were not appointed for all the procurements.  The Assets Register maintained by the Embassy was not in the format prescribed in the Treasury Instructions as it lacked details of date of purchase, cost of purchase, maintenance cost, asset code and estimated useful life.  The Embassy spent RUB.1,052,189.97 and EURO.370.37 (approximately UGX.53,187,249) on refunds for medical expenses to its officers contrary to the requirements of Section M (m-a) (14) of the Public Service Standing Orders, 2010.  Salary advances to the tune of Euro. 4,681.18 (equivalent to UGX.19,537,232) were paid to to staff which exceeded three (3) months gross and though authorised by the Accounting Officer of the Embassy, no authority was sought from Secretary to the Treasury contrary to the Public Service Standing Orders. | +|---|---|---| +| 24. | Uganda High Commission in Nairobi. 2019/20 Opinion Unqualified |  Out of the planned 10 (ten) strategic targets/goals in the Mission charter, 2 (two) were partially achieved while eight (8) were not achieved.  There was a shortfall in NTR collections amounting to UGX.2.73Bn representing 12.8% performance.  Out of the total receipts for the financial year of UGX.4.94Bn, UGX.3.77Bn was spent by the entity resulting in an unspent balance of UGX.1.17Bn representing an absorption level of 76.3%.  I sampled 4 outputs with a total of 7 activities and actual expenditure of | + + +187 + +--- + +|| UGX.3.77Bn and observed that all the 4 outputs with a total of 7 activities and expenditure worth UGX.3.77Bn were fully quantified but were partially implemented.  The Mission did not prepare and submit annual monitoring plans to MoFPED and NPA and also did not prepare and submit quarterly monitoring reports to the Office of the Prime Minister and MoFPED contrary to Paragraph 58 of the Budget Execution Circular for 2019/20.  The Mission submitted performance reports for all quarters after the deadline given for submission. I also observed that cumulative performance reports revealed that the subsequent quarterly performance reports did not include activities implemented in the previous quarter(s).  Accumulated arrears of revenue to the tune of UGX.181,948,023 most of which related to the prior year remained uncollected.  The Embassy paid a sum of USD.46,950 (equivalent to UGX.174,513,150) to Toyota Kenya Limited for the acquisition of a Land Cruiser Prado but the procurement was undertaken by the High Commissioner instead of the Accounting Officer which resulted into usurping the powers of the Accounting Officer, over committing the Mission, non-compliance with Government ban on acquisition of motor vehicles, un-planned procurement, use of inappropriate procurement method and failure to involve the Contracts Committee.  The Embassy paid KES.3,360,000 (equivalent to UGX.117,633,600) in respect of education allowances direct to its officials instead of their respective education institutions or schools contrary to Section (E - e) Paragraphs 19 and 20 of the Public Service Standing Orders, 2010.  The Embassy spent KES.620,485 (equivalent to UGX.21,723,180)on refunds for medical expenses to its officers contrary to the requirements of Section M (m-a) (14) of the Public Service Standing Orders, 2010.  The Mission did not have a fixed assets register in the format prescribed in the Treasury Instructions and therefore additions and disposals to the assets could not be verified. I further observed that a number of the entity’s assets were old and due for boarding off exposing the assets to loss of value and high maintenance costs.  The Mission has an approved staff structure of seven (7) staff positions out of which 5 (71.4%) were filled leaving 2 (28.5%) vacant. | +|---|---| +| 25. | Uganda Embassy in New Delhi. 2019/20 Opinion Unqualified |  Out of the planned 6 (six) strategic targets/goals in the Mission charter, 1 (one) was fully achieved while 2 (two) were partially achieved while three (3) were not achieved.  There was a shortfall in NTR collections amounting to UGX.2.62Bn representing 0.0015% performance.  Out of the total receipts for the financial year of UGX.4.554Bn, UGX.3.732Bn was spent by the entity resulting in an unspent balance of UGX.0.822Bn representing an absorption level of 81.9%.  I sampled 3 outputs with a total of 6 activities and actual expenditure of UGX.3.732Bn and observed that all the 3 outputs were fully quantified and none was fully implemented.  Funds to the tune of INR.42,262 (equivalent to UGX.2,062,385) were irregularly diverted from the activities on which they were budgeted and spent on other activities without seeking and obtaining the necessary approvals.  The Mission did not prepare and submit annual monitoring plans to | + + +188 + +--- + +|| MoFPED and NPA and contrary to Paragraph 58 of the Budget Execution Circular for 2019/20.  Cumulative performance reports did not include activities implemented in the previous quarter(s).  The Mission had total collections including balance brought forward from previous year of UGX.524,440,586 out of which UGX.160,671,521 had been transferred to the Treasury for onward transfer to the Consolidated Fund leaving a balance UGX.1,284,723,792 not remitted.  INR.38,324.24 (equivalent to UGX.1,839,564) out of which 2/3 of the amount should have been recovered from the respective staff was incurred on the payments for telephone bills during the period. The recovery was not effected.  Salary advances to the tune of USD. 98,406.39 (equivalent to UGX.369,023,963) were paid to staff during the year which exceeded three (3) months gross contrary to the Public Service Standing Orders.  The Embassy spent INR.549,516.00 (equivalent to UGX.26,376,775) on refunds for medical expenses to its officers contrary to the requirements of Section M (m-a) (14) of the Public Service Standing Orders, 2010. | +|---|---| +| 26. | The Uganda Embassy in New York. 2019/20 Opinion Qualified |  The Embassy had a capital expenditure budget of UGX.0 but items worth UGX.665,143,450 resulting into an over expenditure of UGX.665,143,450.  I sampled 4 outputs with a total of 10 activities and actual expenditure of UGX.16.77Bn and observed that all four (4) outputs were not quantified. I was unable to assess the extent of implementation of quantified activities.  Funds to the tune of USD.16,155 (equivalent to UGX.60,182,706) were irregularly diverted from the activities on which they were budgeted and spent on other activities without seeking and obtaining the necessary approvals.  The Mission did not prepare and submit annual monitoring plans to MoFPED and NPA and also did not prepare and submit quarterly monitoring reports to the Office of the Prime Minister and MoFPED contrary to Paragraph 58 of the Budget Execution Circular for 2019/20.  The entity submitted performance reports for Q1, Q2, Q3, Q4 after the deadline given for submission.  The Mission had total collections including balance brought forward from previous year of UGX.13,431,978,161 out of which UGX.3,957,841,655 had been transferred to the Treasury for onward transfer to the Consolidated Fund leaving a balance UGX. 9,474,136,506 not remitted.  The Mission had outstanding payables to a tune of UGX.208,571,725 as the end of June 2019 but details were not provided for audit verification and the arrears were paid without a budget.  The Embassy had accumulated arrears of revenue to the tune of UGX.3,801,562,591 out of which UGX.2,932,243,479 (77%) relates to revenue arrears accumulated in the prior years and remains uncollected. The details relating to the arrears were also not provided for audit verification.  The Mission paid UGX.134,726,559 in respect of education allowances direct to its officials instead of their respective educational institutions or schools contrary to Section (E - e) Paragraphs 19 and 20 of the Public Service Standing Orders 2010. | + + +189 + +--- + +||  The Embassy spent UGX.145,667,183 on refunds for medical expenses to its officers contrary to the requirements of Section M (m-a) (14) of the Public Service Standing Orders, 2010.  The Mission prepared an approved procurement plan for the financial year 2019/2020 but procurement reports and procurement files were not availed for audit.  The Mission has an approved staff structure of 9 staff positions out of which 8 (88%) were filled leaving 01 (12%) vacant. | +|---|---| +| 27. | Uganda High Commission in Ottawa. 2019/20 Opinion Unqualified |  Out of the planned 8 (eight) strategic targets/goals in the Mission charter, four (4) were fully achieved while 2 (two) were partially achieved while two (2) were not achieved.  There was a shortfall in NTR collections amounting to UGX.2.077Bn representing 0.62% performance.  I sampled 3 outputs with a total of 8 activities and actual expenditure of UGX.5.63Bn and observed that all the 3 outputs were fully quantified but none was fully implemented.  Funds to the tune of CAD.3,301.3 (equivalent to UGX.9,586,521) were irregularly diverted from the activities on which they were budgeted and spent on other activities without seeking and obtaining the necessary approvals.  The Mission did not prepare and submit the annual monitoring plans to MoFPED and NPA contrary Paragraph 58 of the Budget Execution Circular for 2019/20.  The Mission had total collections including balance brought forward from previous year of UGX.2,585,956,931 out of which UGX.39,588,787 had been transferred to the Treasury for onward transfer to the Consolidated Fund leaving a balance UGX.2,546,368,144 not remitted.  The Mission paid CAD.35,000.00 (equivalent to UGX.101,605,000)in respect of education allowances direct to its officials instead of their respective educational institutions or schools contrary to Section (E - e) Paragraphs 19 and 20 of the Public Service Standing Orders 2010.  The Embassy spent CAD.114,255 (equivalent to UGX.331,693,168) on refunds for medical expenses to its officers contrary to the requirements of Section M (m-a) (14) of the Public Service Standing Orders, 2010. | +| 28. | Uganda Embassy in Paris. 2019/20 Opinion Unqualified |  The Mission made upfront payments for rent of EUR.50,183 (equivalent to UGX.209,723,288) beyond the financial year but did not disclose the same as prepayments in the Statement of Financial Position for the year.  Funds to the tune of UGX.40,504,892 were irregularly diverted from the activities on which they were budgeted and spent on other activities without seeking and obtaining the necessary approvals.  There was a shortfall in NTR collections amounting to UGX.2.61Bn representing 0.4% performance.  Out of the total receipts for the financial year of UGX.9.59Bn, UGX.5.56Bn was spent by the entity resulting in an unspent balance of UGX.4.03Bn representing an absorption level of 58%.  I sampled 4 outputs with a total of 19 activities and actual expenditure of UGX.5.56Bn and observed that 1 output (25%) with a total of 7 activities and expenditure worth UGX.1.61Bn was insufficiently quantified while 3 outputs (75%) with a total of 12 activities and expenditure worth UGX 3.95Bn were not quantified at all. I was therefore unable to undertake | + + +190 + +--- + +|| assessment of implementation of outputs by the Mission.  The Mission did not prepare and submit annual monitoring plans to MoFPED and NPA and also did not prepare and submit quarterly monitoring reports to the Office of the Prime Minister and MoFPED contrary to Paragraph 58 of the Budget Execution Circular for 2019/20.  The Mission submitted performance reports for Q1, Q2, Q3 and Q4 after the deadline given for submission. Furthermore, entities are supposed to report actual performance of the quarter as well as the cumulative activities of the previous quarter(s) but the Mission quarterly performance reports did not include activities implemented in the previous quarter(s).  The Embassy paid EUROS.30,691 (equivalent to UGX.128,071,701) in respect of education allowances direct to its officials instead of their respective education institutions or schools contrary to Section (E - e) Paragraphs 19 and 20 of the Public Service Standing Orders, 2010.  The Embassy spent EUROS.7,933 (equivalent to UGX.33,101,972) on refunds for medical expenses to its officers contrary to the requirements of Section M (m-a) (14) of the Public Service Standing Orders, 2010.  UGX.3.75BN was released for renovation and modification of Uganda Chancery Building in Paris but the procurement was undertaken using the restricted bidding instead of open domestic bidding without proper justification. Furthermore, the implementation of the contract had not commenced by the end of the financial and the contactor is said to have had difficulty in obtaining a bank guarantee from banks because the Mission is a foreign entity which could pose challenges in contract performance.  The Mission has an approved staff structure of 7 staff positions out of which positions, 6 (86%) were filled leaving 1 (14%) vacant.  EUR.43,541.63 (equivalent to UGX.181,969,420) was paid from the Mission’s imprest account to cater for official activities but EUR.15,851 (equivalent to UGX.66,244,024) was spent on activities such as, allowances, purchase of computer and household items which cannot be categorised under imprest making it irregular. | +|---|---| +| 29. | Uganda Embassy in Pretoria. 2019/2020 Opinion Unqualified |  Out of the planned 8 (eight) strategic targets/goals in the Mission charter, two (2) were fully achieved while 4 (four) were partially achieved while two (2) were not achieved.  There was a shortfall in NTR collections amounting to UGX.2.49Bn representing 5% performance.  I sampled 4 outputs with a total of 8 activities and actual expenditure of UGX.3.62Bn and observed that three (3) outputs with a total of seven (7) activities and expenditure worth UGX.3.54Bn were fully quantified while one (1) output with one (1) activity and expenditure worth UGX.0.08Bn was not quantified. Of the quantified outputs, one (1) output with three (3) activities worth UGX.0.38Bn was fully implemented while two (2) outputs with four (4) activities worth UGX.3.16Bn were partially implemented.  Funds to the tune of RAND.35,774.08 (equivalent to UGX.7,697,509) were irregularly diverted from the activities on which they were budgeted and spent on other activities without seeking and obtaining the necessary approvals.  The entity submitted performance reports for Q1, Q2, Q3, and Q4, however they were submitted after the deadline. I also observed that cumulative performance reports did not include activities implemented in | + + +191 + +--- + +|| the previous quarter(s)  The Embassy paid USD.18,000.009 (equivalent to UGX.66,785,973) in respect of education allowances direct to its officials instead of their respective education institutions or schools contrary to Section (E - e) Paragraphs 19 and 20 of the Public Service Standing Orders, 2010.  The Embassy spent 162,579.25 RAND (equivalent to UGX.34,982,177) on refunds for medical expenses to its officers contrary to the requirements of Section M (m-a) (14) of the Public Service Standing Orders, 2010.  The Mission has an approved staff structure of 6 staff positions out of which, 5 (83%) were filled leaving 1 (17%) vacant. | +|---|---| +| 30. | Uganda Embassy in Riyadh 2019/2020 Opinion Unqualified |  There was a shortfall in NTR collections amounting to UGX.2.088Bn representing 0.5% performance.  I sampled 3 outputs with a total of 13 activities and actual expenditure of UGX.4.156Bn and observed that all the 3 outputs were fully quantified. I further observed that 1 output with 5 activities worth UGX.3.79Bn was fully implemented while 2 outputs with 8 activities worth UGX.0.36Bn were partially implemented.  The Mission did not prepare and submit annual monitoring plans to MoFPED and NPA and also did not prepare and submit quarterly monitoring reports to the Office of the Prime Minister and MoFPED contrary to Paragraph 58 of the Budget Execution Circular for 2019/20.  The Mission submitted performance reports for Q1, Q2, Q3 and Q4 after the deadline given for submission.  The Embassy paid UGX.39,862,700 in respect of education allowances direct to its officials instead of their respective education institutions or schools contrary to Section (E - e) Paragraphs 19 and 20 of the Public Service Standing Orders, 2010.  The Embassy spent SAR.132,601.64 (approximately UGX.131,036,012.44) on refunds for medical expenses to its officers contrary to the requirements of Section M (m-a) (14) of the Public Service Standing Orders, 2010.  UGX.30,569,246 out of which 2/3 of the amount should have been recovered from the respective staff was incurred on the payments for telephone bills during the period. The recovery was not effected.  The Mission has an approved staff structure of 5 staff positions out of which, 3 (60%) were filled leaving 2 (40%) vacant. | +| 31. | Uganda Embassy in Rome 2019/20 Opinion Unqualified |  Out of the planned 8 (eight) strategic targets/goals in the Mission charter, two (2) targets had been fully achieved and six (6) were partially achieved.  There was a shortfall in NTR collections amounting to UGX.1.503Bn representing 4.2% performance.  Of the total receipts for the financial year of UGX.5.564Bn, UGX.4.952Bn was spent by the entity resulting in an unspent balance of UGX.0.612Bn representing an absorption level of 89%.  I sampled 4 outputs with a total of 8 activities and actual expenditure of UGX.3.62Bn and observed that 3 outputs with a total of 7 activities and expenditure worth UGX.3.54Bn were fully quantified while 1 output with 1 activity and expenditure worth UGX.0.08Bn was not quantified. Of the quantified outputs, 1) output with 3) activities worth UGX.0.38Bn was fully implemented while 2 outputs with 4 activities worth UGX.3.16Bn | + + +192 + +--- + +|| were partially implemented.  The Mission did not prepare and submit annual monitoring plans to MoFPED and NPA and also did not prepare and submit quarterly monitoring reports to the Office of the Prime Minister and MoFPED contrary to Paragraph 58 of the Budget Execution Circular for 2019/20.  The Mission had total collections including balance brought forward from previous year of UGX.1,702,152,606 out of which UGX.67,884,170 had been transferred to the Treasury for onward transfer to the Consolidated Fund leaving a balance UGX.1,634,268,436 not remitted.  The Mission reported cash in transit of UGX.32,102,340 which relates to over 10 years ago which may be difficult for the Mission to trace or recover.  The Statement of Contingent Liabilities in the financial statements for the year ended 30th June, 2020, indicated an opening balance of UGX.1,141,003,975.79 instead of UGX.542,522,152.97 resulting into an overstatement of UGX.598,481,822.82.  During the year 2019/2020, management of the Mission was availed a supplementary funding of UGX.433,360,086 to cater for settlement of four (4) court cases but the Mission still remained with outstanding liabilities for settlement of court cases amounting to UGX.542,522,152 at the end of the year.  The Embassy spent Euros.8,430.75 (equivalent to UGX.35,422,471) on refunds for medical expenses to its officers contrary to the requirements of Section M (m-a) (14) of the Public Service Standing Orders, 2010.  The Embassy has an approved staff structure of 6 staff positions out of which 5 (83%) were filled leaving 1 (15%) vacant. | +|---|---| +| 32. | Uganda Embassy in Tokyo 2019/20 Opinion Unqualified |  Out of the planned 17 (seventeen) strategic targets/goals in the Mission charter, nine (9) were fully achieved, 4 (four) were partially achieved while four (4) were not achieved at all.  There was a shortfall in NTR collections amounting to UGX.1.451Bn representing 8% performance.  I sampled 5 outputs with a total of 17 activities and actual expenditure of UGX.5.76Bn and observed that all the 5 outputs were not quantified. I was therefore unable to undertake assessment of performance.  Funds to the tune of JPY.730,423 (equivalent to UGX.25,352,982) were irregularly diverted from the activities on which they were budgeted and spent on other activities without seeking and obtaining the necessary approvals.  The Mission did not prepare and submit the annual monitoring plans to MoFPED and NPA contrary to Paragraph 58 of the Budget Execution Circular for 2019/20.  The Mission submitted performance reports for Q1, Q2, Q3 and Q4 after the deadline given for submission.  The Mission paid JPY.3,300,000 (equivalent to UGX.115,295,400) in respect of education allowances direct to its officials instead of their respective educational institutions or schools contrary to Section (E - e) Paragraphs 19 and 20 of the Public Service Standing Orders 2010.  The Embassy spent Euros.8,430.75 (equivalent to UGX.35,422,471) on refunds for medical expenses to its officers contrary to the requirements of Section M (m-a) (14) of the Public Service Standing Orders, 2010. | + + +193 + +--- + +||  JPY.2,591,132 (equivalent to UGX.89,938,192) out of which 2/3 of the amount should have been recovered from the respective staff was incurred on the payments for telephone bills during the period. The recovery was not effected.  The fixed assets register maintained by the entity was not in the format prescribed in the Treasury Instructions and lacked details of: cost of some items, maintenance cost, estimated useful life, among others and assets which had already been disposed were still in the assets register. | +|---|---| +| 33. | Uganda Embassy in Washington. 2019/20 Opinion Unqualified |  Funds to the tune of UGX.184,722,054 were irregularly diverted from the activities on which they were budgeted and spent on other activities without seeking and obtaining the necessary approvals.  Out of the planned 31 strategic targets/goals in the Mission charter, 13 were fully achieved while 18 were partially achieved.  There was a shortfall in NTR collections amounting to UGX.3.64Bn representing 0.7% performance.  Out of the total receipts for the financial year of UGX.8,039,710,935, UGX.7,707,884,006 was spent by the entity resulting in an unspent balance of UGX.331,826,929 representing an absorption level of 96%.  I sampled 6 outputs with a total of 17 activities and actual expenditure of UGX.7.67Bn and observed that all 6 outputs were not quantified. I was therefore unable to undertake assessment of performance.  The Mission did not prepare and submit annual monitoring plans to MoFPED and NPA and also did not prepare and submit quarterly monitoring reports to the Office of the Prime Minister and MoFPED contrary to Paragraph 58 of the Budget Execution Circular for 2019/20.  Performance reports for Q1, Q2 and Q3 were submitted after the deadline given for submission.  The Mission paid USD.27,500 (equivalent to UGX.103,134,075) in respect of education allowances direct to its officials instead of their respective educational institutions or schools contrary to Section (E - e) Paragraphs 19 and 20 of the Public Service Standing Orders 2010.  The Embassy spent USD.21,764.99 (equivalent to UGX.81,625,894.95) on refunds for medical expenses to its officers contrary to the requirements of Section M (m-a) (14) of the Public Service Standing Orders, 2010.  USD.18,000 (equivalent to UGX.69,552,175) was paid to Embassy staff as Covid relief allowance during the financial year 2019/2020 in the last month of the financial year. This allowance is not provided for in the Public Service Standing Orders and neither was it budgeted for during the year.  JPY.2,591,132 (equivalent to UGX.89,938,192) out of which 2/3 of the amount should have been recovered from the respective staff was incurred on the payments for telephone bills during the period. The recovery was not effected.  The fixed assets register maintained by the entity was not in the format prescribed in the Treasury Instructions and lacked details of: cost of some items, maintenance cost, estimated useful life, among others and assets which had already been disposed were still in the assets register. | +| 34. | Uganda Embassy in Teheranc. 2019/2020 |  Out of the planned 11 (eleven) strategic targets/goals in the Mission charter, one (1) were fully achieved while 10 (ten) were partially | + + +194 + +--- + +|| Opinion Unqualified | achieved.  There was a shortfall in NTR collections amounting to UGX.1.57Bn representing 0.1% performance.  I sampled 7 outputs with a total of 12 activities and actual expenditure of UGX.3.66Bn and observed that 4 outputs with a total of 6 activities and expenditure worth UGX.2.69Bn were fully quantified, 2 outputs with a total of 5 activities and expenditure worth UGX.1.73Bn were partially quantified while 1 output with 1 activity and expenditure worth UGX.0.04Bn was not quantified at all. Of the quantified outputs, 3 outputs with 3)activities worth UGX.0.38Bn were fully implemented while 1 output with 3 activities worth UGX.1.95Bn was partially implemented.  The Mission had total collections including balance brought forward from previous year of UGX.406,961,421 out of which UGX.126,522,621 had been transferred to the Treasury for onward transfer to the Consolidated Fund leaving a balance UGX.280,522,621 not remitted.  The Mission paid USD.14,000 (UGX.51,800,000) in respect of education allowances direct to its officials instead of their respective educational institutions or schools contrary to Section (E - e) Paragraphs 19 and 20 of the Public Service Standing Orders 2010.  RIALS.746,627,400 (equivalent to UGX.65,703,211) was paid to Embassy staff as contingency allowance which is not provided for in the Public Service Standing Orders, 2010 and neither was it budgeted for during the year.  RIALS.146,565,232,896 (equivalent to UGX.12,897,740,495) was paid from the Mission’s imprest account to cater for official activities but was not adequately accounted for. | +|---|---|---| +| 35. | Uganda Embassy in Addis Ababa. 2019/2020 Opinion Unqualified |  Out of the planned 7 strategic targets/goals, no target was fully achieved, 5 targets were fully achieved and 2 targets were partially achieved.  There was a shortfall in NTR collections amounting to UGX.1.85Bn representing 11% performance.  Out of the total receipts for the financial year of UGX.4.16Bn, UGX.3.81Bn was spent by the entity resulting in an unspent balance of UGX.0.35Bn representing an absorption level of 91.5%.  I sampled 5 outputs with a total of 9 activities and actual expenditure of UGX.3.76Bn and observed that 3 outputs with a total of 7 activities and expenditure worth UGX.3.76Bn were fully quantified while 2 outputs with a total of 2 activities were not quantified. I further observed that 2 outputs with 5 activities worth UGX.3.22Bn were fully implemented while 1 output with 2 activities worth UGX.0.674Bn was partially implemented.  Funds to the tune of Birr.304,045.69 (equivalent to UGX.23,958,820) were irregularly diverted from the activities on which they were budgeted and spent on other activities without seeking and obtaining the necessary approvals.  A review of the 4 quarterly performance reports revealed that the supplementary release of UGX.0.653Bn was not captured at all making the reports inaccurate.  The Mission had total collections including balance brought forward from previous year of UGX.707,901,392 out of which UGX.236,256,209 had been transferred to the Treasury for onward transfer to the Consolidated Fund leaving a balance UGX.471,645,183 not remitted.  USD.48,129.83 and BIRR.94,144.96 (equivalent to UGX.183,940,336) | + + +195 + +--- + +|| was withdrawn from the Mission’s local expenditure account as cash imprest but was not adequately accounted for.  The Mission paid USD.44,000.00 (equivalent to UGX.165,000,000) in respect of education allowances direct to its officials instead of their respective educational institutions or schools contrary to Section (E - e) Paragraphs 19 and 20 of the Public Service Standing Orders 2010.  The Mission paid medical refunds to its staff amounting to Birr.298,287.38 (equivalent to UGX.582,793,607) contrary to Section M (m-a) (14) of the Public Service Standing Orders, 2010.  The Mission maintains an assets register that is not in the format prescribed by the Treasury Instructions. | +|---|---| +| 36. | Uganda Embassy in Copenhagen. 2019/2020 Opinion Qualified |  A sum of UGX.300,000,000 was approved by Parliament as supplementary budget for the Embassy for the financial year 2019/2020 out of which UGX.270,000,000 was subsequently released during the year. This amount was not accurately disclosed in the “Commentary on the Financial Statements by the Head of Accounts”.  Receivables from security deposits reduced by UGX.53,375,046 from UGX.313,145,225 in the previous year to UGX.259,770,179 as at the end of the year 2019/2020. I was not availed with supporting records to confirm the movement.  VAT claims increased from UGX.45,636,374 in the previous year to UGX.70,11,405 in the current year. I was not provided with a ledger showing the specific VAT claims, the VAT supplier numbers, and documents to support the claims for refunds from the tax authority among others.  Monthly and end-of-year bank reconciliations were not carried out. In addition, a list of bank accounts operated by the Embassy during the year was not disclosed by the Head of Accounts in his commentary on the Financial Statements.  The Embassy’s approved budget for Non-Tax Revenue was UGX.1,570,000,000. I observed that the Non-Tax Revenue budget was not reflected in the Statements of Appropriation.  The Mission paid advances to various suppliers amounting to DKK.861,578.82 (equivalent to UGX.479,037,824). Whereas the Financial Reporting Guide, 2018 requires that prepayments are reported separately in the Statement of Cash Flows – as net advances paid and in the Statement of Financial Position as receivables, I noted that these prepayments were missing in both statements.  The Embassy lost a court case and subsequently a sum of UGX.27,965,384 (DKK.49,878.51) was awarded and paid in the year 2019/2020. I noted that the Memorandum Statement of Outstanding Commitments did not disclose the details regarding this case and there was no evidence that the funds for settlement of this court case had been budgeted for during the year.  Funds amounting to DKK.399,793.77 (equivalent to UGX.225,083,893) were irregularly diverted from the activities on which they were budgeted and spent on other activities for which money had not been appropriated without seeking and obtaining the necessary approval.  Payments made to the tune of DKK.109,193.75 (equivalent to UGX.61,221,660) lacked adequate supporting documents. Consequently, I could not confirm that the amounts paid were commensurate to the | + + +196 + +--- + +works or supplies made by the different payees. + + + +- The Embassy had planned to refurbish the official residence and UGX.300,000,000 was released by the Ministry of Finance Planning and Economic Development (MoFPED) through a supplementary budget for the purpose. However, the refurbishment did not take place and UGX.190,000,000 was returned to the consolidated fund as required by Section 17(2) of the PFMA 2015 while UGX.110,000,000 was diverted. + + + +- Payments to the tune of DKK.171,063.61 (equivalent to UGX.95,910,234) had contradicting supporting documentation attached, payments were unbudgeted for or were incurred for activities which are not the responsibility of the Embassy. + + + +- Salary payments to locally recruited staff at the Mission to the tune of DKK.141,940.00 (equivalent to UGX.79,581,500) were made to two staff but no contract appointment letters were availed to justify them. + +- Out of the budgeted NTR of UGX.1,570,000,000 for the financial year 2019/2020 only UGX.33,780,671 was collected representing performance of 2.15% of the target. The entity did not remit the collected amounts to the consolidated fund by the 31st July following the closure of the financial year contrary to the requirements of the PFMA. + + + + + +- Out of the total receipts for the financial year of UGX.5.642Bn, UGX.5.152Bn was spent by the Mission resulting in an unspent balance of UGX.0.490Bn representing an absorption level of 91.3%. The unspent balance at the end of the financial year was not returned to the consolidated fund account by the 31st July 2020 contrary to the law. + + + +- Out of the 5 outputs with a total of 9 activities and expenditure of UGX.5.152Bn, 2 outputs with a total of 2 activities and expenditure worth UGX.0.467bn were fully quantified, 2 outputs with a total of 5 activities and expenditure worth UGX.4.828Bn were insufficiently quantified while 1 output with a total of 2 activities and expenditure worth UGX.0.372Bn was not quantified at all. Of the quantified outputs, 1 output with 1 activity worth UGX.0.167bn was fully implemented while 1 output with 1 activity worth UGX.0.300bn was partially implemented. + + + +- The Mission did not prepare and submit annual monitoring plans to MoFPED and NPA and also did not prepare and submit quarterly monitoring reports to the Office of the Prime Minister and MoFPED contrary to Paragraph 58 of the Budget Execution Circular for 2019/20. In addition, performance reports for Q1, Q2, Q3 and Q4 were submitted after the deadline for submission. + + + +- I observed that the Head of Mission and the Accounting Officer were absent from the station from March 2020 to June 2020, a period that is critical for preparation and finalisation of the Embassy financial statements. The two officers were under lock-down restrictions in Uganda due to onset of the Covid-19 pandemic. In addition the Finance Attaché was not in office for most of the financial year. This negatively impacted on the operations of the Mission during that period. + + + +- During the month of June 2020, a sum of DKK.152,700 (equivalent to UGX.85,970,100) was paid to Embassy staff for claims for trips that had been undertaken in January and February 2020. I observed that the payments were not adequately supported to justify that the trips were undertaken. + + + +- An officer of the Embassy was paid Foreign Service Allowance for the months of November and December amounting to DKK.23,375.85 (equivalent to UGX.13,160,604) and education allowance amounting to + +197 + +--- + +|| DKK.37,500 (equivalent to UGX.21,112,500) while on interdiction. Payment of employment benefits to staff on interdiction may be unlawful.  The Embassy continued to pay rent for the Finance Attaché’s residence from April 2020 to September 2020 amounting to DKK.133,800.00 (equivalent to UGX.75,329,400), a period during which the residence was not occupied.  The Embassy procured 64 items for use at the Chancery and Embassy staff residences involving a sum of DKK.433,707.00 (equivalent to UGX.244,177,283). The procurements were undertaken without adherence to the procurement procedures and were not adequately accounted for.  Contrary to the provisions in the law, expenditure amounting to DKK.1,181,215.74 (equivalent to UGX.665,024,462) was irregularly incurred by the Embassy during the month of July out of the expired appropriation and before the first quarter release for the financial year 2020/2021 was received.  Prepayments amounting to DKK.566,960.83 (equivalent to UGX.319,198,947) were made to nine (9) suppliers for services including fuel, insurance, water, electricity and heating. The funds were paid before the services were received by the Embassy.  Cash amounting to DKK.37,000 (equivalent to UGX.20,831,000) was irregularly withdrawn from the Mission’s corporate bank account by Amb. Elly Kamahungye Kafeero to pay for accounting work done by a non- member of staff living outside Copenhagen. The funds were re-deposited on the Embassy account on 12th June 2020 by Amb. Elly Kamahungye Kafeero after three months because the reasons for which the funds were withdrawn had been suspended. I found it unusual for an amount of money to be set aside for an activity without confirming the total cost of the activity or following procurement procedures to identify a supplier.  During the year 2019/2020, the Finance Committee was comprised of the Head of Mission (chairperson), Deputy Head of Mission, Accounting Officer, Finance Attaché, Head of Chancery (Third Secretary) and the Administrative Attaché. I observed that the Committee did not perform its roles of reviewing and approving the budgets and work-plans, monitoring implementation of the annual work-plans and procurement plans, monitoring implementation of internal controls over financial management and ensuring that there is compliance with applicable laws and regulations. | +|---|---| +| 37. | Ministry of Foreign Affairs (MOFA). 2020/21 Opinion Unqualified |  The Ministry has an approved strategic plan for FY 2020/21- 2024/25. NPA had issued a Certificate of Compliance (CoC) to the Ministry, and Ministry Top Management had approved the plan. It is now aligned to the NDPIII.  The Ministry collected only 5.7% of its NTR target for the year and had a shortfall in government funding of UGX.19.886Bn which is 30.9% of the budget. The Ministry absorbed 92.3% of the funds that were released.  Out of the thirty-two (32) outputs sampled, ten (10) were fully quantified, seventeen (17) were insufficiently quantified and five (5) were not quantified.  Out of the ten (10) outputs assessed, seven (7) were fully implemented while three (3) were partially implemented.  The Ministry prepared and submitted the annual budget implementation plans and reports as required but failed to accurately report and submit | + + +198 + +--- + +|| its quarterly budget performance reports in time.  Analysis of the Ministry’s domestic arrears over the past four years showed an increase by 34.2% from 2016/17 to 2020/21.  The Ministry had domestic arrears worth UGX.37,436,592,723 from the prior financial year but only budgeted for UGX.6,356,885,823 (17%) in the financial year under review, thus under budgeting.  The approved staff establishment of Ministry of Foreign Affairs revealed that out of the approved 362 staff positions, 344 positions representing 95% were filled while 18 positions representing 5% were vacant. | +|---|---| +| 38 | Ministry of East African Community Affairs 2020/21 Opinion Unqualified |  I noted that the Ministry only had a draft strategic plan. NPA had not issued a Certificate of Compliance (CoC) to prompt to management of the Ministry approve the strategic plan.  The Ministry budgeted for NTR of UGX.699,000,000 for the financial year 2020/21, however only UGX.12,100,000 was collected representing performance of 1.731% of the target. The ministry absorbed 85.1% of the funds that were released.  Out of the fourteen (14) outputs sampled, twelve (12) were fully quantified, while two (2) were insufficiently quantified.  Out of the twelve (12) outputs assessed, eight (8) were fully implemented while four (4) were partially implemented.  The Ministry neither prepared annual budget monitoring plans nor submitted quarterly budget monitoring reports. The Ministry also failed to submit all its quarterly budget performance reports in time.  Analysis of the Ministry’s domestic arrears over the past four years showed a downward trend from 2017 to 2021. As at the close of the financial year a sum of UGX.13,002,369,510 was outstanding.  Out of the approved one hundred three (103) staff positions, seventy two (72) positions representing 70% were filled while thirty one (31) positions representing 30% were vacant. | +| 39 | The Independent Electoral Commission. 2020/21 Opinion Unqualified |  The Commission had not finalised the preparation of the strategic plan for the period 2021-2025.  The entity budgeted to collect NTR of UGX.4.483Bn during the year under review. Out of this, UGX.31.1Bn was collected, representing a performance of 694% of the target.  Out of the total warrants of UGX.671.61Bn received during the financial year, UGX.649.15Bn was spent by the entity resulting in an unspent balance of UGX.21.906Bn representing absorption level of 96.1%.  Out of the 9 outputs with a total of 40 activities and expenditure of UGX.671.61Bn assessed, 4 outputs with a total of 10 activities and expenditure worth UGX.51.838Bn was fully quantified, 3 outputs with a total of 16 activities and expenditure worth UGX.499.639Bn were insufficiently quantified while 2 outputs with a total of 14 activities and expenditure worth UGX.97.675Bn were not quantified at all.  Of the 4 out puts that were fully quantified with a total of ten (10) activities worth UGX.51.8Bn, 3 outputs with a total of 9 activities worth UGX.50.9Bn were fully implemented, while 1 output with 1 activity worth UGX.0.846Bn was partially implemented. | + + +199 + +--- + +||  An assessment to establish if there has been service delivery from a sample of outputs that were implemented revealed that purchase of motor vehicles and other transport equipment was undertaken but not fully used for the purpose while the Commission continues to pay rent after fully acquiring warehousing space.  I noted inconsistencies in the reported performance where all vehicles were reported as received which was not true while reported balances in the financial statements were inconsistent with those reported in the performance reports.  I noted that funds to the tune of UGX.4,023,217,397 were irregularly diverted from the activities on which they were budgeted and spent on other activities without seeking and obtaining the necessary approvals.  I noted that the Commission has been accumulating arrears in past three years and during the year 2020/2021, UGX.6.959Bn in arrears remained outstanding.  The Commission has in the past won cases and was awarded costs to the tune of UGX.336,880,920 but management has not collected these receivables.  The Commission procured Biometric Voter Verification Kit and services for the 2021 general election at a cost of UGX.82,894,881,252 and I observed that available kits were not considered while the services were not fully delivered.  The Commission entered into two contract agreements with a company to supply 10 double cabin pick-up vehicles at a cost of UGX.1,564,563,350 and 40 double cabin pick-up vehicles at UGX.7,013,387,920 for nomination of the Presidential candidates but by the time of audit, whereas the Commission had paid the full amount, only 32 double cabin vehicles out of the total 50 vehicles procured had been delivered leaving a balance of 18 vehicles.  The Commission procured for printing of ballot papers for 2021 general elections at a total cost of UGX.83.855Bn. 248 out of expected 448 pallets were delivered but the Commission had assembled vehicles to carry the entire load which rendered the vehicles redundant and this caused a loss to the Commission in form of hire fees, fuel and allowances.  The Commission was required to vacate their current premises by 30th June, 2021 and was subsequently compensated with UGX.22.14Bn by the Uganda National Roads Authority which was transferred to the consolidated fund as non-tax revenue. As a result of the continued delay to implement this critical activity of finding a new home, the Commission is already incurring losses on property acquired and is also likely to cause government to incur litigation costs through UNRA’s failure to completely hand over the construction sites for roads to the contractor.  The Commission contracted two law firms for provision of legal services for Presidential petition at a cost of UGX.3,748,550,000 which had been budgeted at UGX.800Million resulting into payment of UGX.2,948,550,000 over and above the budget. Even though the planning for the elections started 3 years back, the procurement was treated as an emergency and there was no basis for the fees charged or detail of how the Commission came up with the market price for the service. | +|---|---| +|| WORKS AND TRANSPORT SECTOR || + + +200 + +--- + +| 1 | Ministry of Works and Transport (MoWT) Opinion Unqualified |  I noted that the entity had prepared a strategic plan. However, this had not been approved by NPA at the end of the year under review.  The Ministry did not forecast the NTR to be collected during the year. However, a total of UGX6,995,230,920 was collected during the year.  Out of the total warrants of UGX. 1,280.322Bn received during the financial year, UGX. 1,067.967Bn was spent by the entity resulting in an unspent balance of UGX. 212.355Bn representing absorption level of 83.4%  The Ministry did not implement some of its planned activities during the year. Examples include: bridge inventory Data for BMS not collected; bridge management System (BMS) Software not procured, and; upgrading to Bitumen Standard Sebbowa road.  The Ministry had receivables worth UGX.1,570,776,843 out of which those worth UGX.623,855,947 were outstanding at the end of the previous year. There is likelihood of failure to recover the receivables that have been outstanding for over a year  Twenty-one (21) units of district road equipment had been lying in the workshops’ yards for more than a year without repair. The equipment included: thirteen (13) motor graders of different models; four (4) bulldozers; One (1) pickup; two (2) dump trucks, and one (1) wheel loader.  Three (3) out of the nine (9) training aircrafts of the East African Civil Aviation Academy in Soroti were grounded due to non-repair and maintenance. The aircrafts were (registration numbers): 5X-RWE grounded due to a defective fuel injector pump; 5X-UAN grounded for mandatory structural modification and 5X -YKM grounded for a propeller overhaul.  I observed delayed compensation of PAPs for the development of the New Kampala Port in Bukasa. The valuation report for 2,378 PAPs with a total compensation sum of UGX 29.2 billion was approved by the Chief Government Valuer in October 2018. A total of 1,253 PAPs with a total compensation value of UGX.19.5 billion had been paid by 30th June 2021. As a result a total of 1,125 PAPs with a total compensation value of UGX.9.7 billion have remained unpaid for about three years.  Procurements worth UGX 1,772,908,757 which were not planned were implemented by the Ministry, while procurements worth UGX.7,465,000,000 which were planned were not implemented.  I observed delayed completion of Kayunga - Nabuganyi and Nansana – Kireka - Bbira roads construction project contracted at UGX 45,349,361,632. The contract provided that the works were to be completed by 01/07/2020. However, by the time of the audit in October 2021, one year and four months after planned completion date, the project works were not yet completed.  The acquisition of land for the Right of Way (RoW) for the SGR project has been delayed. The project plan was to acquire 5200 acres of land free of encumbrances at an estimated cost of UGX 534,600,000,000 for the construction of Kampala – Malaba SGR route by October 2016. However, only 1,295.98 (24.9%) acres of land had been acquired at a cost of UGX.95,361,767,388 (18%) as of September 2021. | +|---|---|---| +| 2 | Report on Verification SGS Automotive Uganda Limited For |  I was unable to obtain all documents relating to the procurement for my review. From the available records however, it was noted that there were significant delays in the procurement process arising from administrative | + + +201 + +--- + +|| Setting Up of Vehicle Inspection Facilities Under the Contract for Provision of Mandatory Motor Vehicle Inspection Services (MVIS). Dec 2021 | reviews and court processes. It is also important to note that the High Court had made a ruling in favour of award of the contract to SGS.  There were delays in formulation of the statutory instrument covering revision of chargeable rates, negatively impacting on compliance by the vehicle owning public.  The responsible Government authorities did not make adequate efforts to enforce public compliance to the mandatory motor vehicle inspection.  During the first phase of the contract implementation, the Ministry delayed to formulate a comprehensive public sensitization strategy to create awareness about the mandatory motor vehicle inspection.  The stakeholder information sharing system that was required under the contract had not been set up by the time of halting of operations by Parliament and as such key stakeholders have not had the opportunity to access requisite information.  The upgrading of the upcountry stations of Mbarara, Mbale and Gulu had not yet commenced.  SGS Automotive Uganda had invested a total of UGX.109,856,594,590 in the activities relating to the contract for mandatory vehicle inspection between the SGS and Government of Uganda. | +|---|---|---| +| 3 | Uganda Road Fund. Opinion Unqualified |  I noted that the entity had prepared a strategic plan. However, this had not been approved by NPA at the end of the year under review.  URF did not forecast the NTR to be collected during the year. However, the Fund collected a total of UGX7,078,800 during the year.  Out of the total warrants of UGX. 506.507bn received during the financial year, UGX. 506.296 Bn was spent by the entity resulting in an unspent balance of UGX. 0.211Bn representing an absorption level of 99.96%. The unspent funds were swept back to the consolidated fund as required by the PFMA  The Authority did not implement some of its planned activities during the year. Examples include: Production of quarterly reports on the status and functionality of District Road Committees; Recruitment and substantive appointment of staff and; Review and calibration of the funds allocation formula.  The Fund did not collect the funds provided for under section 21 of the URF Act 2008 which mandates the Fund on recommendation by the URF Board to charge road user charges which include fuel levies, international transit fees from vehicles entering the country, road license fees, axle load fees, and bridge and road toll fees.  I noted that the fund allocation formula was last reviewed by the Secretariat in 2019. In addition, during the year, the formula was not reviewed to provide for current situations such as budget cuts and Covid- 19 pandemic effects which led to disproportionate transfers to designated agencies.  Procurements worth UGX 642,234,236 had delays ranging between 1 and 93 working days. For example; the contract for provision of Motor Vehicle maintenance services under framework contract was delayed by 93 days and the contract for supply, delivery and installation of I-pads for URF Board members was delayed by 15 days.  There were inadequate monitoring Designated Agencies. Out of the 203 designated agencies supposed to be monitored, only twenty-seven (27) Agencies representing 13.3% of the total designated agencies and sub | + + +202 + +--- + +|| agencies were monitored during the year.  Whereas URF had central stores under the charge and control of the Administrative Officer, the entity did not have a proper stores management system that is recommended in the Treasury Instructions. | +|---|---| +| 4 | Uganda National Roads Authority. 2020/21 Opinion Qualified |  A total of UGX 124,367,095,163 representing 21.58% of the spent funds for the sampled planned outputs was diverted from the budgeted projects to other projects contrary to the above provision. There was no evidence that the reallocations/diversions of such magnitude were authorized either by Parliament or the relevant funders.  The Authority over-budgeted funds for salaries. The over budgeted funds were diverted from the salary provisions to capital development activities. The diversion of funds led to a misreporting in the financial statements of UGX 4,689,704,394.  I noted that the UNRA did not have an approved five year vote strategic plan by NPA to facilitate operationalization of the NDP III infrastructure sector priorities during the first year of NDP implementation.  UNRA did not forecast the NTR to be collected during the year. In addition, there was no documented revenue collection plan detailing how much to be collected and revenue sources. However, UNRA collected a total of UGX3,894,306,295 during the year. I also noted that MoFPED set a target of UGX10.76bn to be collected in NTR by UNRA during the year under review; there was no reconciliation between the Ministry of Finance, Planning and Economic and Uganda National Roads Authority on the planned revenue to be collected.  The UNRA budgeted to receive UGX. 3,918.151 bn out of which UGX. 3,787.289 bn was availed, resulting in a shortfall of UGX 130.863 bn, which is 3.34% of the budget.  I noted that UNRA did not have unit cost estimates at activity level to provide a link between inputs, processes, outputs and intermediate outcomes realized during the year.  The Authority failed to implement several planned activities during the year. Examples include: construction of 10 km - equivalents along package 6 (Karugutu - Ntoroko and Kabwoya - Buhuka); construction of 10 km - equivalents along Rwenkunye- Apac- Lira-Acholibur road; civil works for the construction of UNRA offices; works for construction of Kamdini Weigh station, and; construction of Wanseko Ferry landing site.  Contrary to the Land Acquisition Act CAP 226, I noted that for the Hoima- Butiaba-Wanseko Road Project, UNRA did not submit a request to the Ministry of Lands to declare the land identified for the road project as land of interest.  I observed delays in payments for Project Affected Persons on two roads audited. Out of the sampled 221 PAPs for Hoima-Wanseko, 136 PAPs with properties worth UGX 6.2 billion were paid after the specified six-month period. For KJE project, out of 234 PAPs sampled, 229 PAPs with properties worth UGX 70.2 billion were paid after the specified six-month period.  According to the Kampala-Jinja Expressway Resettlement Action Plan Implementation Progress report of May 2020 – August 2021, a total of 219 PAPs required physical resettlement. It was noted by the time of the audit that 13 resettlement sites had been identified and these were being assessed for suitability. However, although the process of engaging a provider to support UNRA in developing housing options and building the | + + +203 + +--- + +|| agreed resettlement houses was initially scheduled to be completed by December 2020, no contractor had been procured for this purpose by the time of the audit in September 2021, implying a delay of over 9 months.  Significant delays in subdivision, demarcation and transfer of titles for fully acquired plots were observed on the Kampala-Jinja Expressway and Hoima-Wanseko Road projects.  The Authority had an outstanding balance of UGX 215,059,225,419 in terms of payables at the year end. This figure increased by UGX 73,885,957,262 (52.3%) from the previous year’s amount of UGX 141,173,268,157. It was observed that the bulk of this amount is comprised of unpaid certificates to contractors which yield interest due to delayed payments.  Authority made payments amounting to UGX 17,078,565,465 as a result of penalties for the court cases and interest on delayed payments of advances and IPCs invoices from various projects. This is a loss to Government.  The value of the Authority’s infrastructure assets at the end of the financial year was disclosed as UGX10,417,198,881,566. However, contrary to the policy requirement to revalue the assets every three years, I was not availed with any valuation report for the infrastructure assets to confirm that the assets had ever been valued.  35 road projects with a total contract value of USD.398,427,063.99 and UGX. 149,739,813,845 that were to be completed during the year were still on – going by the close of the year.  Three civil cases with claims totaling to UGX6.991bn were brought against UNRA due to its failure to return residue land titles to the registered proprietors. | +|---|---| +| 5 | Uganda Civil Aviation Authority. 2020/21 Opinion Unqualified |  I noted that the entity had prepared a strategic plan. However, this had not been approved by NPA at the end of the year under review.  UCAA budgeted to collect internal revenue of UGX 293bn during the year under review. Out of this, only UGX 114.991bn was collected, representing a performance of 39.2% of the target.  UCAA absorbed all its revenue collected, and accrued expenditure in unpaid bills that is. its actual expenditure was more than the revenue.  The Authority did not implement some of its planned activities during the year. Examples include: Capital projects for Regional Airports, KOICA Counterpart funding, and procurement of a fleet management system, updating the master plan and constructing the ground surface car park.  There was an increase in trade and other receivables of UGX. 12,279,645,000 (equivalent to 25%) from UGX. 48,854,526,000 to UGX.61,134,171,000. The delayed collection of the receivables may lead to bad debts.  Management reported an increase in trade payables of UGX 21,763,762,000 (equivalent to 47.9%) from UGX 45,470,736,000 to UGX 67,234,498,000.  The Authority had accumulated receivables of up to UGX 96,569,511,580 in the FY 2019/20 due from Government Agencies. In the year under review, there was no follow up of this debt to the Government agencies, and no amounts were cleared.  The Authority made a loss for the year under review amounting to UGX 29,321,645,000. Because of the loss, the Authority did not have capacity | + + +204 + +--- + +|| to cover any potential interest accruing on its long term loans in view of its earnings. Along with the lack of potential to cover loan interest, the Authority had a significant long term liabilities portfolio on its balance sheet, which majorly comprised of the loan from Exim Bank of China.  Prime Media’s contract ended with a debt of UGX 1,131,017,128 which was unpaid for the year before the expiry of the contract.  UCAA has multiple systems operating in different departments which are tailored for the operations in the respective departments. A review of these systems revealed that some were not functional, not interfaced with other complementary system(s) and/or some of their modules were not working. Further, the IT Point of Sale System bought for tracking of revenue from concessionaire shops was out of date.  The Exim Bank loan terms to UCAA were renegotiated and this was to be formalized into an addendum agreement, to ensure that they are manageable. However, the addendum to the contract terms had still not been made by the time of this audit. | +|---|---| +| 6 | Uganda National Airlines Company Ltd (UNACL). 2020/21 Opinion Qualified |  UGX 8,716,398,000 was disclosed as the value of the inventories in the statement of financial position. However there was no evidence that Management carried out end of year stock taking to get actual values of inventories. In addition, there were no stores ledgers for engineering stores, and although the general stores had manual ledgers, the ledgers were not capturing Goods Received Note reference numbers (GRN) against the receipts in the ledgers as a reference of the goods received.  I noted that the entity did not have a strategic / business plan aligned to NDPIII.  UNACL budgeted to collect internal revenue of UGX 304.6bn during the year under review. Out of this, only UGX 48.6bn was collected, representing a performance of 16% of the target.  The Company did not implement some of its planned activities during the year. Examples include: Procurement of spare parts for the Airbus fleet; supporting 32 pilots for A330-800 neo type training, and; supporting 60 pilots in simulator training.  The company had payables totaling UGX.47,032,043,000. All the outstanding invoices were payable to UCAA. Out of the amount, payables totaling UGX 16,065,309,363 had been due for more than 6 months.  UGX 1,127,484,315 as the value of Property Plant and Equipment In the statement of financial position and the corresponding note (Note 12) as at the close of the financial year. However, it was noted that assets were not engraved to give them an identification number for easy of identification. It was also noted that the assets could not be traced in the assets’ register due to lack of identification numbers.  I carried out financial analysis of UNACL financial performance and observed that the Company had made losses for the year 2019/2020 and 2020/2021 amounting to UGX102.442bn and UGX164.573bn respectively. On review of the operating margin, I observed that the costs before considering interest and taxes exceeded company revenues for the two years. I also observed that due to the losses incurred, the Company generated negative return on assets of 12.2% for the year 2019/2020 and 13.1% for the year 2020/2021. The Company’s revenue is still far below its assets.  UACL implemented twenty-five (25) procurements outside the approved procurement plan for the FY 2020/2021. The procurements were made in | + + +205 + +--- + +different currencies amounting to (for each currency); Euro 1150,854.06, Kenya Shillings 61,879.2, USD 65,441.36, Tanzania Shillings 7,752,600 and UGX 346,738,939. + + + +- A purchase Order was made for the supply of inflight equipment at a price of USD 25,694.46 (VAT Exclusive) without the approval of the Contracts Committee. + + + +- Two companies submitted bids for specialized motorized equipment used in ground handling of aircraft. The companies failed the preliminary stage (compliance), however, the Evaluation Committee did not cancel the evaluation process. The contract manager was not appointed and the delivery was not witnessed. + +- USD 8,620.7 vide payment voucher No PV07/21/072 was paid to DAS Air as rent for the month of April 2021. Further to the above a review of invoices revealed that DAS Air had billed Uganda Airlines a total of USD 43,103.5 for unpaid ground rent. However, Uganda Airlines had not made any tenancy agreement with the DAS air, and there was no handover report from Uganda Airlines to DAS Air. + + + +- UGX 103,532,800 (USD 28,000) was paid to the supplier vide payment voucher No. PV09/20/025 dated 4/9/2020. The vehicle was purchased through direct procurement without proper justification. + + + + + +- Uganda National Airlines Limited made a contract agreement with M/s Ninesun Manufacturing Limited for supply of inflight service equipment for airbus at a contract amount of USD 319,226.86. The items were said to have been delivered to DAS Air. I was not provided with evidence that the items were actually delivered, witnessed for quality and quantity and handed over to DAS Air stores. + + + +- UNACL concluded the procurement of a contractor for the provision of an Enterprise Resource Planning (ERP) software solution at a contract sum of USD 1,066,910 (VAT Exclusive) as well as the provision of an integrated Passenger Service System at a contract sum of USD 1,234,441 (VAT Exclusive). The procurements were conducted and finalized without seeking the necessary approvals from NITA-U. + + + +- The company issued a purchase order on 27/01/2021 to M/s Stelia Aerospace for Supply of critical spare parts for business class seats for A330-800 NEO at a price of USD 146,230.72. I was however not provided with the contract for the supply. + + + +- From the 20 procurements sampled, I noted that neither was there Accounting Officer’s appointments of contract managers nor were there contract management files. The procurements were made in different currencies amounting to (for each currency); Euro 212,050.67, Kenya Shillings 12,253,905.74, USD 109,803,962.54 and UGX 347,242,879. + + + +- The Company did not have a Board approved staff structure and establishment to assess staff recruitment needs and staffing status, and did not have approved staff salary grades. This affected proper planning and budgeting for staff costs. As a consequence, the Company incurred excess expenditure of UGX 4,919,238,464 (USD 1,333,008) on salaries and staff expenses. + +- There has been delayed conclusion of suspension cases. On 21st of April 2021, some HoDs were suspended for a period of 3 months (effective 29th April, 2021) to enable the appointed committee to investigate and report on stated allegations. Review of the staff files revealed that there were no committee resolutions on the cases and as a result Management extended the suspension on 20th August 2021 for another 3 months. + + + +206 + +--- + +|| Since the affected staff remained on the same terms of contract, the officers appointed to act in their positions receive extra pay implying double payment for the same position. As a consequence, the company has lost a total of UGX 2,319,017,267 in a seven months’ period (May to November 2021). | +|---|---| +| 7 | Uganda Railways Corporation. 2020/21 Opinion Qualified |  The Corporation had Non-current assets worth UGX.3,525,540,249,000 as at 30th June 2021. However, this figure included a total of UGX.6,012,000,000 in respect of Kabalega ferry (UGX.5,760,000,000) and Barbus ferry (UGX.252,000,000) which sunk under water twenty five years and sixteen years respectively. Since the ferries have been out of use under water for a long time without retrieval and cannot be disposed of while under water, it cannot be determined whether they still hold the value indicated to the Corporation.  The Corporation had GoU equipment loans amounting to UGX.22,067,482,000 at the beginning and end of the year under review. Out of this loan amount, loans totalling UGX.16,511,595,000 (other than the Spanish Government loan) were not supported and did not show any movement over the last four (4) years.  Interest arising from loans that was yet to be cleared by URC amounted to UGX.9,511,880,000. However, this balance has been outstanding over several years without any movement. The status quo still remained the same by the close of the year under review. This interest payable was not supported by any original documentation.  Trade and Other Payables increased from UGX.17,937,602,000 at the beginning of the year to UGX.21,513,931,000 at the close of the year. Out of the amount, trade and other payables worth UGX.9,753,781,407 lacked supporting documents such as LPOs, contracts, inward invoices, claims and demand notes.  The Corporation had Trade and Other Receivables of UGX.75,637,890,000 as at 30th June 2021. The figure includes UGX.69,516,000,000 due from Government in respect of the Nsambya land. This amount has remained un-paid to URC for too long despite Government having disposed of the land to the public long ago implying that the Corporation may never be compensated for its land.  URC budgeted to collect internal revenue of UGX 120.49 during the year under review. Out of this, only UGX 54.6bn was collected, representing a performance of 45.3% of the target.  The Corporation did not implement some of its planned activities during the year. Examples include: Sleeper reconditioning; Kampala Station not fencing; Tororo Station Roof Repairs and; Rehabilitation of Steel Mill Jinja siding.  The Corporation made losses for the past two years; UGX 37,783,152,000 (2020/2021) and UGX 66,151,318,000 (2019/2020). The Corporation’s losses and the ratios computed are an indication that Uganda Railways Corporation is not performing well in terms of profitability and ability to sustain provision of services without further Government intervention for funding and Management strategies to improve revenue generation.  Management did not assess impairment of assets despite existence of impairment indicators. For instance, rental properties were being charged below market value.  Uganda Railways Corporation land worth UGX.91,832,636,500 lacked land titles as evidence of URC’s rights to own and use the property. Management’s efforts to secure the land titles appear remote. Lack of | + + +207 + +--- + +|| land titles has led to heavy encroachment and grabbing of the Corporation’s land.  URC procured four (4) used locomotives at UGX.41,323,768,935. I noted that the bidder did not comply with some requirements within the bid document which were supposed to be the basis of evaluation. Despite the non-compliance at the preliminary stage, the bid was evaluated at the Technical stage without following procurement regulations.  Government signed an agreement with Mango Tree (U) Ltd for the rehabilitation and upgrade of the Pamba ferry. However, the vessel was still grounded after a year of signing the agreement.  An officer of URC irregularly signed to transfer land measuring 4.452 hectares in Lira (under FRV 220 Folio 13). The land was subdivided into plots 41-63, 52-62, 42-50 and the titles were being processed.  Jinja Municipal took part of URC land in Jinja (6.3 acres) and gave it out to 58 developers, without consultation with the Corporation. | +|---|---| +| 8 | Busega-Mpigi Road Project (Uganda National Roads Authority) 2020 Opinion Unqualified |  I observed slow progress in Construction works and accumulation of loan charges. As of June 30th 2020, the contractor had only achieved physical progress of 0.13% against 12.77% planned cumulative progress. The total time lapse since commencement of the construction works was 7 months constituting 24.26% of the total contract duration yet only 0.13% construction work had been achieved. Slow progress in Construction works has led to continued accumulation of both Commitment and Service Charges that amounted to UGX 2,921,803,802 and UGX 5,802,593,707 respectively as at the reporting date.  UNRA reallocated GOU counterpart funding to other projects for the year ended 30th June, 2020. A total of UGX 320,077,550 was reallocated from the project to other projects. The reallocations delay project progress. | +| 9 | Busega-Mpigi Road Project (Uganda National Roads Authority). 2021 Opinion Unqualified |  I observed slow progress in Construction works and accumulation of loan charges. As of June 30th 2021, the contractor had only achieved 3.42% against 29.18% planned cumulative progress. The total time lapse since commencement of the construction works was 19 months constituting 64.01% of the total contract duration yet only 3.42% construction work had been achieved. Slow progress in Construction works has led to continued accumulation of both Commitment and Service Charges that amounted to UGX 3,224,867,623 and UGX 7,140,345,245 respectively as at the reporting date.  I observed failure to procure Prefabricated Pipe Culvert Units to the project which is delaying project progress. The contractor could not progress through pipe culvert installation due to lack the culverts.  There were delays in payments to the contractor that are likely to lead to interest charges. I observed that on 2nd June 2021, the contractor issued IPC No. 3 amounting to UGX 8,303,000,336 which was unpaid by 30th June, 2021 and interest on the late payment was due to commence on 28th July 2021.  I observed delayed possession of site and land take over by the contractor. By 30th June, 2021, land acquisition was at 54.8% or 14.605 km of the main expressway where access to and possession was granted. It is to be noted that 100% access to and possession should have been formally handed over after 18 months (that is; 22nd May 2021) from commencement.  UNRA reallocated GOU counterpart funding to other projects for the year ended 30th June, 2020. A total of UGX 1,956,237,995 was reallocated | + + +208 + +--- + +|| from the project to other projects. The reallocations delay project progress. | +|---|---| +| 10 | Kapchorwa-Suam Road Project (Uganda National Roads Authority) 2021 Opinion Unqualified |  I observed delayed access and possession of site by the contractor. The last section of the road (from km 48+000 to km 073+000) was granted to the contractor on the 14th of June 2021 which is after 888 days. Further, additional land acquisition is still under progress from Km33+000 to Km73+000. Civil works from Km 46 to Km 58 have been put on hold pending additional land take especially for slope protection. It was also noted that new structures were being erected in the road reserve at Km17+692 and KM5+430.  I observed delays in execution of Project civil works. UNRA engaged M/S China State Construction Engineering Corporation Ltd on the 7th May 2018 to upgrade Kapchorwa-Suam road for a period of 36 months, with effect from 1st October 2018. There was an extension of time of 4.5 months up to 15th February 2022. Based on the extension of time, the time lapse as at 30th June 2021 was 33 months that is 81.40 %. However the reported cumulative physical progress for civil works was 43.14% with no active works from Km 55 to km 73. | +| 11 | Road Sector Support Project 4 – Kigumba-Masindi- Hoima-Kabwoya Road (2021) (Uganda National Roads Authority). 2021 Opinion Unqualified |  I observed delayed completion of civil works on Upgrading of Bulima – Kabwoya Road (Lot2).The project commencement date was 1st December 2015, and the initial completion date was after 30 months on 31st May 2018. Successive revisions of completion dates extended the construction period by a further 22 months with the last revised completion date being 27th March 2021. A certificate of substantial completion was issued in January 2021, and the contractor allowed 12 months as the Defects Liability Period, expiring on 27th January 2022. The snag list included two main items; the construction of Hoima Town Roads and a way bridge.  I observed delayed completion of civil works on Upgrading of Kigumba – Bulima Road (Lot1). The construction period was for 30 months (after commencement in March 2018), elapsing on 31st August 2020. When the Audit Team visited the site in September 2021, (42 months after commencement), the attained level of completion was approximately 95%. However, the new proposed completion date of 31st August had passed and no new completion date had been communicated.  There were delays in payment of lot1 supervision fees. By the time of my audit, the Lot 1 Supervising Engineer’s unpaid invoices had accumulated to Euros 661,605 for the foreign component of the contract and UGX 1.38bn for the local component. The delays are likely to impact on the Engineer’s ability to perform the contractual obligations and in turn impact on the progress of the construction works. | +| 12 | Albertine Regional Sustainable Development Project (ARSDP) (Uganda National Roads Authority). 2021 Opinion Unqualified |  I observed delayed implementation of civil works (Upgrading of Kyenjojo- Kabwoya Raod – 100km). The duration of the contract was 36 months (from 5th April 2016 to 4tth April 2019) excluding the Defects Liability Period. There were two extensions of time; the first one for 818 days i.e from 4th April 2019 up to 30th June 2021 and the second one for four months from 1st July 2021 to 31st October 2021. The right of way for the last section, Km 0 to Km 30 was handed over to the contractor on the 14th September 2018. However, as per the monthly report No. 63 for the month of June 2021, the progress of works was reported as 94.83% against planned of 96.27%. In addition to this, the contractor was supposed to substantially complete and hand over 30% of works within 180 days of the commencement date. However, as at 30th June 2021 | + + +209 + +--- + +|| (1,912 days) no section of the road was handed over and UNRA.  There were significant defects on the road works. I observed failure of road shoulders, lined drain and a speed hump at KM88+678. It was also observed that the contractor continued to construct line drains on steep slopes without scour checks.  I also observed poor quality works on some sections of the road construction. For example: poor visibility on the right-hand side of river Nguse bridge and also inadequate protection between the end of stone pitching and the stream at the bridge; noticeable bleeding at Km 52+511, failed line drain at Km71+200 RHS and damaged guard rail at km72+921 RHS; maintenance of the completed sections was poor with overgrown grass and silted drainages especially from Km 51 to Km 100, and; pedestrian walkways were not provided for in the design of Kagadi town roads which were under construction at time of the audit.  I noted lack of adherence to the insurance contract. The ICEA Workman’s Compensation Policy No 110-A2506044-18 covering the period 18th January 2021 to 17th February 2022 indicated that the number of staff insured are 181 only with neither the names nor the number of staff under each category/designation indicated but the monthly progress reports, the PAYE and NSSF returns for the period under review indicated that the contractor has over 400 staff. Further, the contract required that the insurances are in the joint names of the parties that is; UNRA and the contractor. However, the UAP Old Mutual contractor’s All Risk Policy No 0000461578 and the ICEA Motor Commercial Policy No. 080-A2-105193- 17 indicate that the insured was only the contractor.  Work Permits for all the foreign consultant’s and contractor’s staff were not provided for review. In the absence of the work permits for the foreign staff, the implication is that the expatriate staff are working irregularly in Uganda irregularly and this may lead to deportation, which will in turn affect the progress of work. | +|---|---| +| 13 | Road Sector Support Project 5 (Upgrading of Rukungiri- Kihihi-Ishasha/Kanungu and Bumbobi-Lwakhakha Roads (Uganda National Roads Authority). 2020. Opinion Unqualified |  I observed significant delays in Project implementation. During the FY 2019/20, Project disbursements from ADF amounted to UA 6,679,508.53. From the signed loan amount of UA 70,000,000, only UA 24,672,103.72 representing 35% of the signed loan amount had been cumulatively disbursed through direct payments for Project expenditures as at 30th June 2020. However, 91% of the original project implementation time had elapsed as at 30th June 2020. Civil works for the upgrade of Bumbobi-Lwakhakha 44.5km road had attained 84% physical progress as at 30th June 2020 versus time progress and planned physical progress of 91%. The financial progress stood at 83% against plan of 92% as at 30th June 2020. For the upgrade of Rukungiri-Kihihi-Ishasha/Kanungu (78.5km), 19.24% cumulative physical progress had been achieved as at 30th June 2020 although 33.4% was planned to be completed.  During the FY 2019/20, UGX 3,033,479,790 (28%) of GOU counterpart project funds were re-allocated to other Projects. Re-allocation of Project funds to other projects invalidates the approved plan for implementation of RSSP-V activities.  UGX 267,083,716 was paid as interest on delayed payments. Such costs are un-necessary and represent unbudgeted expenditures which affect funds ear-marked for implementation of planned Project activities.  UGX 226,500,820 had been paid to Government agencies (votes) including sub-counties and town councils during the FY 2019/20. These payments constitute revenue received for purpose of Government and | + + +210 + +--- + +|| should have been paid directly to the Uganda Consolidated Fund.  Financing charges were accumulating due to low utilization of the loan funds. Total charges of UGX 3,912,848,969 accrued on the disbursed and undisbursed loan balances during the FY 2019/2020. This is comprised of UGX 3,079,241,588 (79%) being charges on the undisbursed loan balances during the year and UGX 833,607,381 (21%) being charges on the disbursed loan amounts. | +|---|---| +| 14 | Road Sector Support Project 5 (Upgrading of Rukungiri- Kihihi-Ishasha/Kanungu and Bumbobi-Lwakhakha Roads (Uganda National Roads Authority). 2021 Opinion Unqualified |  I observed significant delays in Project implementation. During the FY 2020/21, Project disbursements from ADF amounted to UA 10,235,407.97 resulting into cumulative disbursements of UA 34,907,511.69 (representing 49.9% of the signed amount of UA 70,000,000). Whereas the upgrading of Bumbobi-Lwakhakha (Lot2) 44.5km road had been substantially completed and the road was handed over to UNRA by the Contractor on 21st December 2020, the upgrading of Rukungiri-Kihihi- Ishasha/Kanungu (Lot1) 78.5km stretch had attained cumulative physical progress of only 42.6% completion rate against planned progress of 55.1% as at 30th June 2021. As at 30th June 2021, only 18 months (19.6%) time were left to the end of the extended Project implementation time of 31st December 2022. It is unlikely that UNRA will complete the 57.4% works outstanding (planned) for the upgrade of Rukungiri-Kihihi-Ishasha/Kanungu road in the agreed timelines.  During the FY 2019/20, UGX 3,822,002,388 (36%) of GOU counterpart project funds were re-allocated to other Projects. Re-allocation of Project funds to other projects invalidates the approved plan for implementation of RSSP-V activities.  UGX 150,255,638 was paid as interest on delayed payments. Such costs are un-necessary and represent unbudgeted expenditures which affect funds ear-marked for implementation of planned Project activities.  Financing charges were accumulating due to low utilization of the loan funds. UGX 3,770,851,261 was accrued on the disbursed and undisbursed loan balances with ADF during the FY 2020/2021. This is comprised of UGX 2,620,478,974 (69%) being charges on the undisbursed loan balances during the year and UGX 1,150,372,287 (31%) being charges on the disbursed loan amounts. For the last two financial years (FY 2019/20 and 2020/21), total charges of UGX 7,683,700,230 had accrued on the loan balances with ADF. This is comprised of UGX 5,699,720,562 (74%) being charges on the undisbursed loan balances and UGX 1,983,979,668 (26%) being charges on the disbursed loan balances. | +| 15 | Upgrading of Tirinyi-Pallisa- Kumi and Pallisa-Kamonkoli Road project (Uganda National Roads Authority). 2020 |  The Authority was made to pay interest as a result of delay to pay the contractor’s approved interim payment certificates (IPCs). The contractor invoked clause 14.7 and 14.8 of GCC and charged interest of UGX 373,044,074.47 for IPCs 1-6. Another interest amount of UGX 166,845,192 was paid for IPCs 11,12,13,14. The total interest paid for the delayed settlement of the IPCs amounted to UGX 539,889,266. These interest payments could have been higher if the dollar amounts had not been negotiated downwards by USD 108,262.29 due to disagreements in computations.  During the FY 2019/20, UGX 892,920,000 of Project funds were re- allocated to other Projects. Re-allocation of Project funds to other projects overrides established budgeting procedures.  There were delays in recruitment of the Project consultant. In the period 15th March 2018 to 26th April 2021, there was no Project consultant procured to carry out supervisory roles for upgrading the Tirinyi-Kumi- | + + +211 + +--- + +|| Pallisa-Kamonkoli Road Project. In this period, the Directorate of Roads and Bridges Development of UNRA stepped in to carry out design review and supervisory roles in addition to their other activities. Recruitment of the Consultant, AECO (Abuljebain Engineering Consulting Office) delayed until 15th March 2021 and they commenced work on 26th April 2021 four months when the project physical progress was already at 92.51% and in time progress was 37.3 months (103.6%) to completion. The Consultant’s first report was in the month of May 2021.  I observed delays in payment of Project Affected Persons. As of 30th June 2021 payment of PAPs was still incomplete with a total of 156 PAPs not yet paid. Tirinyi Pallisa Kumi (Lot 1) had 100 PAPs for land measuring 80.06 acres while Pallisa Kamonkoli road (Lot 2) had 56 PAPs not paid for 27.318 acres of land (by May 2021) | +|---|---| +| 16 | Upgrading of Tirinyi-Pallisa- Kumi and Pallisa-Kamonkoli Road project (Uganda National Roads Authority). 2021 |  There were overpayments to the contractor in interim payment certificates numbers 25 and 26 amounting to UGX 8,613,048,720 (USD 2,556,164.89). These payments were meant for supervisors who had not been recruited.  During the FY 2020/21, UGX 4,083,247,683 of Project funds were re- allocated to other Projects. I did not see any revised schedule submitted to MoFPED for onward approval by Parliament. Re-allocation of Project funds to other projects overrides established budgeting procedures.  In 2019/20, I noted that Management incurred interest charges of UGX 539,889,266 in respect of 10 IPCs (1,2,3,4,5,6 and 11,12,13,14). However as of 30th June 2021, there were still 14 other interim payment certificates (Nos 7,8,9,10,16-23, and 25-26) whose payments were delayed making them eligible to interest charges.  There have been delays in project completion. Completion dates for project works were on 14th March 2021 for Lot 1 and 14th June 2021 for Lot 2 respectively. As of 30th June 2021, both Tirinyi-Pallisa-Kumi and Pallisa-Kamonkoli Road had not been completed as planned. Based on linear sections completed to final Asphalt surfacing, Lot 1 was 95.58% complete while Lot 2 was at 98.09%.  There was no documented plan for assets (housing units) built both in Lot 1 and Lot 2 currently used by the contractors and consultants as their accommodation after they have left. These units number approximately 28 permanent houses (2 type I houses, 6 type II houses 4 type IV houses) and multiple accommodations and engineer’s offices that have been constructed in land owned by UNRA.  I noted delays in relocation of utilities to pave way for road works. Five sub-contractors were approved by UNRA to relocate electricity, water lines and boreholes in Pallisa, Kumi, Mukongoro and Tirinyi towns at a total cost of UGX 1,517,595,734. As of 30th June 2021, work valued at UGX 1,260,024,061 had been certified and paid. The remaining works valued at UGX 257,571,673 were not yet completed.  There were disagreements between the consultant and the contractor on tests of completion on sections already handed over to the employer before certification. The disagreements are likely to cost Government interest charges if not timely resolved. | +| 17 | North Eastern Road- Corridor Asset Management Project (Uganda National Roads Authority) 2020/21 |  The Project did not have an annual work plan and budget prepared for implementation of its activities. Also, quantification of Project outputs was not done for the financial year audited.  I observed delays in Project implementation. From the signed loan | + + +212 + +--- + +|| amount of XDR 157,600,000 (Equivalent to USD 243,800,000), only XDR 22,916,350.66 (USD 32,780,000) representing 14.5% of the signed loan amount had been cumulatively disbursed for implementation of the project activities as at 30th June 2021. It should be noted that 65% of the project implementation time had elapsed as at 30th June 2021. Implementation of civil works (road rehabilitation, improvement and routine maintenance works) under component 1 had hardly progressed.  There was under absorption of released project funds. Total IDA funds available during the year were USD 8,090,898.12 (being opening fund balance of USD 4,920,898.12 and additional disbursements of USD 3,170,000 on 23rd October 2020). However, only, USD 4,457,669.32 was spent on implementation of project activities representing funds absorption level of 55%.  Out of the GoU counterpart funds of UGX 3,034,260,000 released in the FY 2020/21, only UGX 765,831,419 (25%) was spent on implementation of the Project activities. The balance of UGX 2,268,428,581 (75%) was reallocated to other projects. Management did not avail the authorization used as basis to reallocate the funds to other projects.  There has been accumulation of higher financing charges due to the low utilization of the signed loan. Charges of UGX 4,703,471,276 (being service charges and commitment charges of UGX 840,691,467 and UGX 3,862,779,809 respectively) were accrued during the FY 2020/21. Cumulatively, total charges of UGX 27,201,439,219 (being service charges and commitment charges of UGX 2,734,784,077 and UGX 24,466,655,142 respectively) have been accrued since loan signature on 16th February 2015. | +|---|---| +| 18 | Masaka-Bukakata Road project (2021) (Uganda National Roads Authority) 2020/21 |  Project funds to the tune of UGX 262,339,751 were reallocated from the activities on which they were budgeted and spent on other activities without seeking and obtaining the necessary approvals.  I observed delayed payment of Interim Payment certificates (IPCs). IPCs 9, 12, 13, 14, 15, 17 and 18 were delayed beyond the agreed contract timelines. Delays in payment could result in nugatory expenditures in form of the interest charged by the contractor.  The contractor submitted an interest certificate in June 2021 amounting to UGX 523,120,000 in respect of interest on delayed payments of IPCs no. 1 to 9. The delayed payment of the IPCs led to wasteful expenditure of UGX523,120,000 in interest to the contractor.  In my previous year report, I noted that out of 1,282 PAPs compensated with land approx. 341.7162 Acres, none of the titles had been transferred to Government, that is; neither to the names of Uganda National Roads Authority nor to Uganda Land Commission. I observed that this key factor to land ownership had not been addressed during the year. | +|| LANDS SECTOR || +| 1 | National Physical Planning Board 2020/21 Opinion Unqualified |  Out of the budgeted revenue of UGX.6.0 Bn, UGX.5.29 Bn was realised, resulting in a shortfall of UGX 0.710 Bn, which is 12% of the budget, Out of the total receipts for the financial year of UGX 5.29, Bn, UGX 2.945 Bn was spent representing an absorption level of 56%.  I noted that three (03) outputs with a total of three (03) activities and planned expenditure of UGX 0.760 were fully quantified. One (01) output with five (05) activities was insufficiently quantified while (04) outputs with a total of four (04) activities whose expenditure was not established, | + + +213 + +--- + +|| were not quantified at all.  One (01) output with one (01) activity and expenditure worth UGX 0.452 Bn was fully implemented., two (2) outputs with two (02) activities worth UGX.0.308 Bn were not implemented.  I noted that out of the approved staff structure of thirty five (35) positions, no position was substantively filled. The Board had only three (3) staff on secondment and twenty six (26) on assignment of duties.  | +|---|---| +| 2 | Ministry of Lands, Housing and Urban Development 2020/21 Opinion Unqualified |  Out of the budgeted NTR of UGX.5.500Bn for the financial year 2019/2020 only UGX.5.480Bn was realized, representing a performance of 99.6 % above the target.  The Ministry budgeted for UGX.74.32Bn in Government receipts, out of which UGX.71.13Bn was warranted, resulting in a shortfall of UGX.3.19Bn which is 4.29% of the budget.  Out of the total receipts of UGX.71.12Bn, UGX.69.13Bn was spent resulting into an unspent balance of UGX.1.99Bn representing an absorption level of 97.2%. The balance unspent was subsequently swept back to the consolidated fund at the end of the financial year.  I sampled 34 outputs with a total of 175 activities and expenditure of UGX 57.908Bn and noted that 15 outputs with a total of 67 activities and expenditure of UGX.12.45Bn were fully quantified. Fifteen (15) outputs with a total of 92 activities and expenditure worth UGX.42.35Bn were insufficiently quantified. Four (4) outputs with a total of 16 activities and expenditure worth UGX.3.11Bn were not quantified.  I assessed the implementation of 15 fully quantified outputs with a sample of 67 activities worth UGX.12.45Bn and noted that three (3) outputs with a total of three (3) activities worth UGX.0.456 Bn were fully implemented. Twelve (12) outputs with a total of sixty-four (64) activities worth UGX.11.99Bn were partially implemented.  I noted that the Ministry’s Payables amount increased by UGX.105,145,022,390 from UGX.144,329,975,873 in the previous year to UGX.249,474,998,263 in the current year. In addition, UGX.11,593,918,200 of the new compensations related to private persons that had been included among the ranchers to be compensated, but lacked ranch title number, area of land lost and other details recorded in the domestic arrears schedule.  I noted a recognized NTR amount of UGX.1.7billion relating to proceeds from the sale of government pool housed had no proper documentation.  I noted that Parliament approved a payment of UGX.3,802,500,000, as compensation for Ndeeba Land but the payment was halted by an interim court order.  I noted that the Ministry compensated the claimant of land at Block 237 plots 29,48,56,59 and 67 at Mutungo for a sum of UGX.26.4 Bn which had earlier been purchased by Uganda Land Commission which partly paid UGX 2.4Bn. The two entities have not agreed on the ownership of the land. | +| 3 | Uganda Support to Municipal Infrastructure Development, Additional Financing (USMID-AF/II) |  To-date, the program has made available USD 140,331,745 (UGX.514,740,787,823), out of which only USD.44,938,686 (UGX.477,249,316,165) had been made available to the LGs, leading to a | + + +214 + +--- + +|| Project. 2020/21 Opinion Unqualified | funds availability to LG level of 32%.  Out of the budgeted disbursements/receipts of UGX.454,866,200,300 in the financial year, only UGX.301,529,104,089 (66.3%) was available to the project, leading to a shortfall of UGX. 153,337,096,211(33.7%).  Out of a sum of UGX.301.5 Bn available for project utilization in the year, UGX.107,162,555,328 was spent, resulting into an absorption level of only 64.5%. The low rate of absorption of funds may result into delayed attainment of project objectives.  I noted that UGX 331,131,497,751 was being held by the treasury for programme activities. This was an increase of held funds, as UGX.154,842,679,584 was held last year. This arose from inadequate funds utilisation by the LGs. | +|---|---|---| +| 4 | Albertine Region Sustainable Development Project (ARSDP) – MoLHUD 2020/21 Opinion Unqualified |  Out of the budgeted IDA disbursement of UGX.19,514,012,776 for the year 2020/2021, only UGX.10,094,659,078 (52%) was realized leading to a shortfall of UGX.9,419,353,698 (48%). Revenue shortfall limits the implementation of planned activities which could affect the achievement of the project objectives.  Review of the Q4 Progress report revealed that many sub-projects worth USD 27.5million handed over to the Ministry of Lands, Housing and Urban Development for construction, will not be implemented due to lack of funding, yet, costs have already been incurred since all the sub- projects have been designed and Environment and Social Impact Assessment done.  The civil works for construction of three markets, namely: Biiso Market in Buliisa District, Kabaale Market in Hoima District and Buhuka Market in Kikuube District costed at UGX.9,963,228,048 were not complete despite the extension of the completion date to 31st August 2021, thus delaying service delivery to citizens. | +| 5 | Competitiveness and Enterprise Development Project (CEDP) Component 1- Land Administration (IDA CREDIT AGREEMENT CR 52690-UG) PROJECT ID P130471. 2020/21 Opinion Unqualified |  It was noted that out of the UGX.12.73Bn budget allocated for the project activities during the fiscal year 2020/2021, UGX.11.86 Bn (93%) was spent, leaving a balance of UGX.0.87Bn.  I noted that one plot of land has multiple titles while others are plotted in the middle of the road and wetlands. Such inaccurate/wrong sketches captured on the Uganda National Lands Information System (UGNLIS) may lead to land wrangles, and Government may face challenges from title holders with land titles in roads and wetlands. | +| 6 | Uganda Land Commission. 2020/21 Opinion Qualified |  Out of the approved budget of UGX. 71,868,574,709, only UGX. 65,793,286,529was warranted/released resulting into a budget shortfall of UGX.6,075,288,180 representing 91.5%.  Out of the total warrants of UGX.65.79Bn received during the financial year. UGX.64.94Bn was spent by the entity resulting in an unspent balance of UGX.0.85Bn representing an absorption level of 98.71%.  Out of the twenty-one (21) outputs with a total of sixty-one (61) activities and expenditure of UGX.64.86Bn sampled, Two (2) outputs with a total of Six (6) activities and expenditure worth UGX.0.71Bn were fully quantified, Eight (8) outputs with a total of thirty (30) activities and expenditure worth UGX.32.35Bn, was insufficiently quantified. Eleven (11) outputs with a total of twenty-five (25) activities and expenditure worth UGX | + + +215 + +--- + +|| 31.8Bn were not quantified at all.  Out of the two (2) fully quantified outputs, Two (2) outputs with six (6) activities worth UGX.0.71Bn were partially implemented. Out of the six (6) activities, the entity fully implemented one (1) activity; Four (4) activities were partially implemented, while one (1) activity remained unimplemented.  The balances for; payables of UGX 169,490,014,824 , Non-produced assets of UGX 212,279,181,177, and that of revenue receivables of UGX 24,760,000 as at 30th June, 2021, Could not be confirmed due to absence of adequate supporting documentation and reliable data by the commission.  A sum of UGX.1,237,717,474 was paid for outstanding arrears that related to the prior year, but were not recognized in the prior year financial statements as payables. In addition, withholding tax of UGX.22,020,000 was not deducted and paid to URA.  I noted that the court garnished the Commission’s bank Account with a balance of UGX.244,184,480 leading to the delay to clear the outstanding obligations to third parties.  It was noted that the entity obtained a supplementary of UGX 10.62Bn was received by the entity but was not requisitioned by management. There were unsupported payments of domestic arrears amounting to UGX 14.4 Bn. Payments worth UGX 6.7Bn were paid to unverified arrears.  In addition, payables to Church of Uganda amounting to UGX 15Bn, and Receivables amounting to UGX 3.966 Bn relating to the overpayment to Kampala archdiocese in the prior year were not recognised. In addition, outstanding arrears of UGX 1.2Bn related to prior year but paid during the year have not been recognised in the current year.  The Commission does not have a land inventory and database for all government land and properties under its jurisdiction that are either occupied by tenants, vacant, acquired under compensation (but not yet re-distributed to the bona fide occupants), or acquired and owned by other government institutions and missions abroad. As such tracking of lease payments and revenue arrears related to ground rent and premium could not be supported. | +|---|---| +|| ACCOUNTABILITY SECTOR |  | +| 1. | Uganda Communication Employees Contributory Pension Scheme. 2019/20 Opinion Qualified |  Reported in the Statement of Net Assets Available for Benefits are payables and accruals of UGX.2,679,752,000, of which UGX.2,022,412,000 and UGX.442,330,000 are administrative and actuarial fees respectively. However, these were not adequately supported to confirm existence.  Eleven (11) properties disclosed as part of the non-core assets were still not valued and therefore not included in the value of Non-current assets of the Scheme.  A review and comparison made between the audited financial statements for the period ending 30th June, 2019 and the financial statements for the period ending 30th June, 2020 revealed inconsistencies in the account balances of reserves.  Receivables were not supported with any documentation and schedule to confirm the amounts and authenticity.  The reported cash and cash equivalents is misstated. | + + +216 + +--- + +||  The Scheme recognized a retrenchment penalty worth UGX.11,320,160,000 as a receivable from UTL yet this amount had been written off.  I noted that out of the budgeted revenue of UGX.12,447,003,444 for the year 2019/2020, only UGX.2,264,969,444 was realised representing a performance of only 18.2% of the target.  I established that funds totaling to UGX.88,575,000 were never budgeted for, and no authority was sought from the Founder to use the current year’s appropriated funds to meet this expenditure.  Diversion of members’ contribution (DC) to pay defined benefits (DB) liabilities: UGX.4,550,343,000.  I noted that, whereas PAYE to a tune of UGX.35,427,298 was withheld from employees as required during the year, it was not remitted to URA in the timelines prescribed by the Income Tax Act. | +|---|---| +| 2 | Uganda Bureau of Statistics (UBOS). 2020/21 Opinion Unqualified |  I noted a number of issues in the implementation of the approved budget such: under absorption of funds; partial or non-implementation of activities, non-quantification of activities, under performance of the NTR and government releases.  There was delayed Implementation of a number of Projects such as: UNFPA-Survey Project, Baseline Education Survey Project (WB-GPE- UTSEP) and UBOS Panel-Survey project majorly caused by effects of Covid-19 pandemic.  Out of the total approved structure of 316 staff, only 283 (90%) positions were filled, leaving 33 (10.4%) positions vacant. Staffing gaps affect the entity’s capacity to effectively deliver services.  the entity lacked land titles for its land both in Entebbe and at head office, although management demonstrated its efforts in engaging Uganda Land Commission to secure land titles.  Several procurements to the tune of UGX.1.834Bn were not executed as of 30th June 2021. This was attributed to unforeseen circumstances brought about by the lock-down associated with the Covid-19 pandemic as well as budget cuts. | +| 3 | URA Corporate 2020/21 Opinion Unqualified |  URA operated at least six operations bank accounts in commercial banks with an annual turnover of over UGX.1.1 Tn, in contravention of Section 33 (5), (6) and (7) of the Public Finance Management Act 2015. The action overrides the Government financial management controls and distorts the monetary policy.  UGX.9.6Bn was advanced to staff through their bank accounts to purchase goods, services, and other activities without following regulations. The practice is irregular and also exposes Government funds to a risk loss through misuse.  UGX.1.16Bn paid through mobile money to various suppliers for the provision of services were not adequately supported with accountability documents as required; as a result, I could not ascertain whether the funds were utilised correctly for the intended activities.  Management made cash withdrawals amounting to UGX.5.2Bn during the year, contrary to Section 11 of PFMA 2015, as well as Section 7 of the URA Cash Policy that sets the maximum insurable cash limit to UGX.20Mn. The practice has been recurring and exposes government funds to a risk of misuse of cash and loss. | + + +217 + +--- + +||  The Authority awarded multi-year contracts to the tune of UGX.18.7Bn without evidence of approval of these multi-year commitments by the Parliament. This was contrary to Section 23(1) of the PFMA 2015.  Planned procurements worth UGX.25.1Bn were not implemented by 30th June 2021. This adversely affects the realisation of critical government programs. Management explained that the delays were due to various reasons, some of which are beyond their control.  During the financial year 2020/21, the collaborating institutions under the Tax Registration and Expansion Programme (TREP) registered only 167,211 taxpayers against a target of 436,869 taxpayers representing a 38.27% registration success and a shortfall of 61.7%. In revenue terms, although TREP had a revenue target of UGX.124.58 Bn in FY 2020/21, it had only collected UGX.49.93Bn by 30th June 2021, representing a 40% performance rate. The paltry performance was attributed to COVID-19 effects, riots and the political environment, that hindered field activities.  The Ministry of Local Government had planned to implement activities worth UGX.4.4Bn under TREP activities but only implemented activities worth UGX.3.3Bn, leaving un-implemented activities worth UGX.1.1Bn despite receiving all funding. As a result, the e-LogRev objective of simplifying and strengthening the local revenue collection systems for Local Governments may not be achieved in time. | +|---|---| +| 4 | URA Revenue Collection Account 2020/21 Opinion Unqualified |  The Authority had a total revenue collection target of UGX.22.039Tn for the financial year 2020/21, and collected total gross revenue of UGX.19.649Tn, representing 89% hence a shortfall of UGX.2.39Tn (11%). Under collection of revenue affects cash flow performance of Government and realisation of the planned service delivery targets. Management attributed the performance to the adverse impact of COVID- 19 pandemic.  I reviewed the statement of comparison of target and actual revenue collection by the tax head and noted that revenues from different sources worth UGX.86.979Bn were not budgeted for, despite collecting significant incomes on these tax heads for the past two years leading to under- budgeting. Lack of budget provisions of the tax heads conceals revenue potential, distorts revenue projections and may lead to un-appropriate performance assessments and related bonuses.  Uganda Tax/GDP ratio remained low at 12.5% in 2020/21, compared to other countries in the region and globally. This performance was similar to last year's performance. This implies that tax bases have not widened or deepened enough to tax all potential sources.  There was an increase in total Tax Arrears from UGX.3.009Tn in 2019/20 to UGX.4.519Tn in the financial year 2020/21 representing a total increase of UGX.1.492Tn or percentage increase in total Tax Arrears of 50%. The Increase denies Government the required resources to deliver more services.  The contract between the Government of Uganda (GoU) and a private company had since expired even though the Company had continued to manufacture motor vehicle registration numbers for taxpayers. Expired contracts expose the Government to the risk of loss of revenue without a remedy.  I noted that government had continued to engage only two private companies, making them monopolies in providing motor vehicle registration number plates for more than eight (8) years without opening it up for competition. The Monopoly exposes the taxpayer to high prices | + + +218 + +--- + +|| for the services.  URA received a sum of UGX.279.509Bn through Bank of Uganda from Government Ministries, Departments and Agencies and Local Governments. The amount was not reconciled and receipted due to the inability to identify the tax head and the lack of IFMS and BoU Systems interface with URA systems. Collection of Revenue without receipting and charging the correct tax heads results into misstatement of revenue collected per tax head. | +|---|---| +| 5 | Uganda Retirement Benefits Regulatory Authority. 2020/21 Opinion Unqualified |  The entity budgeted to receive UGX.12.35Bn in the FY 2021/21. However, only UGX.11.25Bn was available for spending resulting into a shortfall of UGX.1.1Bn, which is 9% of the budget; this affected implementation of planned activities.  Assessment of implementation of planned outputs revealed that Nine (9) outputs with a total of forty (40) activities worth UGX.2.89Bn were partially implemented. Out of the forty (40) activities, the entity implemented twenty-eight (28) activities (70%), while twelve (12) activities (30%) remained unimplemented. In addition, planned procurements totaling UGX.309Mn were also not implemented.  Out of the approved staffing level of 61, the Authority has only 36 positions filled (59%), leaving a staffing gap of 25 positions (41%). Included in the unfilled positions are key positions of Director Finance and Accounting, Director Human Resource and Administration and the Director Research and Strategy. This affects the entity’s capacity to effectively deliver its mandate. | +| 6 | Bank of Uganda 2020 Opinion Unqualified |  Uncertainties brought by Covid-19 could potentially led to delays by Government to refund/repay amounts due to the Bank.  Audit noted that the Government capital account included in the loans, advances and drawdowns to Government increased by UGX 1,087,811 million representing 313% from UGX 347,475 million as at 30 June 2019 to UGX 1,435,286 million as at 30 June 2020.  The assessment of the possible outcome of the appeal (Crane Bank - Civil Appeal No. 252 of 201) and the amount of any resulting potential obligations, if any, involves significant judgement by the directors.  I noted that, as at June 30, 2020, the core capital of the Bank was below the minimum required capital by UGX.453,331 million (2019: UGX.671,712 million) | +| 7 | Housing Finance Bank Limited 2020 Opinion Unqualified |  I noted that Management has estimated impairment provisions for loans and advances to customers collectively for homogenous loan portfolios using statistical methods on the basis of risk parameters using historical data taking into account forward looking information on expected macroeconomic conditions including considerations made for possible effects from the COVID-19 pandemic.  As at 31 December 2020, a total of 1184 customers with loans worth UGX. 159.8 billion had applied and been granted loan restructures of different forms. However, as at 31 December 2020, only 331 customers with loans worth UGX. 58.0 billion were still under repayment moratoriums with the rest having reverted to periodic repayments schedules following the initial restructures.  The COVID-19 pandemic containment measures increased economic uncertainty amongst the borrowers, prompting many to prematurely repay their loans during and after the lockdowns. These redemptions | + + +219 + +--- + +|| involving as many as 901 customers affected the growth rate of the loan book by over UGX. 37.0 billion.  I noted that there was a disruption in the periodic repayments by the Bank’s borrowing customers at the peak of the pandemic containment measures. | +|---|---| +| 8 | Post Bank Uganda Limited. 2020 Opinion Unqualified |  COVID-19 effects and corresponding bank measures impacted PBU loan portfolio in different ways including reduction in cash flows from loan repayments as a result of granting moratoriums, increase in customers demanding for Interest rate reduction, shrink in credit demand for some sectors and drop in disbursements due to cautious lending coupled with increase in default rates for some sectors. | +| 9 | Contigencies’ Fund. 2020/21 Opinion Unqualified |  Section 26(i) of the PFMA 2015 (as amended) provides that a Contingencies Fund shall every financial year be replenished with an amount equivalent to 0.5% of the appropriated annual budget of Government of the previous financial year. The approved budget for the previous financial year (FY2019/20) was UGX.40.49Trillion, which would have translated into UGX.202.43Bn funding for the Contingencies’ Fund in the year under review. I noted however, that Parliament only appropriated UGX.62Bn to the Contingencies fund, causing a deficit of UGX.140.3Bn. Underfunding of the Contingencies Fund distorts implementation of the approved budget for the current year as evidenced by budget cuts and reallocations to fund supplementary budgets relating to natural disasters and emergencies that occurred during the year.  Audit of the withdrawals made off the Contingencies Fund revealed that a total of UGX.62,070,000,000 was transferred to the Fund bank account held at Bank of Uganda. The funds were consequently transferred to entity bank accounts and expensed off the IFMS, which makes it difficult to follow up and track to confirm the adherence to the approved budget guidelines and also confirm accuracy of the reports generated. Spending off the IFMS also exposes the funds to the risk of misuse due to lack of transparency. | +| 10 | Financial Intelligence Authority. 2020/21 Opinion Unqualified |  The Financial Intelligence Authority lacked an approved strategic plan aligned to the NDP III. Under the circumstances, there is a risk that activities implemented during the financial year 2020/2021 were not aligned to the NDP-III, which negatively affects the achievement of NDP- III objectives. I advised the Accounting Officer to follow up on the approval of the strategic plan urgently.  A review of the staffing structure for FIA revealed that out of the total approved establishment of 64 staff, only 41 (64%) positions were filled, and 23 (36%) positions had not yet been filled. Key among the unfilled positions include; Director Legal, Inspection and Compliance; Director Audit, Director Finance & Administration, among others. Staffing gaps have a negative effect on the general performance of the Authority and hinder effective and efficient service delivery. I advised management to intensify their efforts with the relevant stakeholders to ensure that the gaps are filled so as to deliver effective services.  A review of the Anti-Money Laundering Act (AMLA) 2017 (as amended) and its accompanying regulations revealed that the Authority does not have in place pecuniary sanctions in case of breach of the law and regulations. The lack of sanctions makes it difficult for the Authority to enforce compliance with the Act by all accountable persons. I advised management to follow up with the responsible Minister so that these regulations are passed to enforce accountability. | + + +220 + +--- + +| 11 | Insurance Training College (ITC). 2020/21 Opinion Unqualified |  Section 63 of the Insurance Act requires the Insurance Training levy to be reconciled with Insurers within 60 days after the end of the calendar year. I however noted that a total of UGX.4.9Bn was collected based on basis of computed returns submitted by the Insurers and Health Member Organisations (HMO’s), with no evidence of reconciliation of Training Levy returns, contrary to requirements under the Act. As a result, the returns may be understated to reduce remittances, which may lead to revenue loss. | +|---|---|---| +| 12 | National Population Council. Opinion Unqualified |  Out of the ten (10) sampled outputs that NPC planned to implement during the period under review, five (5) outputs representing 50% of the planned sampled outputs were fully implemented, four (4) Outputs representing 40% were partially implemented, and one (1) Output representing 10% was not implemented during the period under review.  Gratuity payments totalling UGX.940Mn were not subjected to PAYE and the 5% NSSF employee deductions. I further noted that NPC did not provide for the 10% employer contribution for the staff resulting from the gratuity payment. This denied URA the much-needed revenue and the staff were disadvantaged due to failure to contribute to NSSF. | +| 13 | Tax Appeals Tribunal. 2020/21 Opinion Unqualified |  Arising out of a supreme court decision, all tax disputes in Uganda must first commence in the Tax appeal Tribunal before they move to any other court. A review of the cases filed at the Tribunal, in the last three years, revealed that there was an increase of cases filed from 40 in 2017 to 176 in 2020. In spite of the increase in cases, there has been no increase in the number of members of the Tribunal which has necessitated that the members of the Tribunal sit every day not withstanding their regular involvement in the administrative aspects of the Tribunal. The current structure of the remuneration of the members indicates that each member will be paid a sitting allowance and a retainer. This has resulted into the Tribunal spending the bulk of its money on the payment of allowances to the Tribunal members.  During the reviews, I noted that there were instances in which a Tribunal member is an active partner of a Firm that has a case before the Tribunal. Whereas the said Tribunal Member does not form part of the panel of the committee adjudicating the disputes, this presents a potential conflict of interest for the members of the committee who work with him and have to decide the matters involving his Firm for which he is an active partner.  I noted that the approved organisation structure for the Tribunal, did not have a provision for internal audit function and indeed, this role has not been assigned to any staff. This is contravention with the PFMA 2015, and it also denies the Tribunal an early warning mechanism in cases of errors of omission or commission. | +| 14 | Uganda Microfinance Regulatory Authority (UMRA) 2020/21 Opinion Unqualified |  It was noted that, contrary to Section 17 of the PFMA 2015, the Authority had unspent funds totalling UGX.4.93Mn at the year-end that were never returned to Treasury. It should also be noted that the same was done in the preceding year where UGX.204Mn was never returned. Failure to return unspent funds contravenes Section 17 of the Public Finance and Management Act 2015, and exposes the funds to a risk of diversion since they are spent in the subsequent financial year without appropriation by parliament.  Section 11.2.4 of the Treasury Instructions 2017, requires the Head of Finance to ensure that commitments are not approved unless sufficient funds are available in the commitment item. However, in disregard to the | + + +221 + +--- + +|| above provision, commitments to a tune of UGX.321Mn remained unpaid at the close of the year under review.  Comparison of licensees per category (Moneyl enders and non-deposit taking institutions) between the previous year 2019/2020 and those that renewed their licenses in the year under review 2020/2021 revealed that a total of 365 licensees had not submitted applications for renewal. In light of the occurrence, there is a risk that the licensees in issue could have operated for the whole year without having paid the requisite fees, which would lead to a loss in government revenue to a tune of UGX.200Mn.  Section 36(1)(a & b) of the Tier 4 Microfinance Institutions Act and Moneylenders Act, 2016 states that a SACCO shall not carry on the business of financial services unless it is a registered society; and licensed under the Act. Audit noted that only 15 SACCOs were issued with operating licenses by Uganda Microfinance Regulatory Authority. However, data obtained from Microfinance Support Centre (MSC) indicated that over 6,150 EMYOOGA SACCOs were by March, 2021 in operation without acquiring operating licenses.  Audit of the Authority’s payroll and other expenses revealed that during the financial year ended 30th June 2021, Pay as You Earn (PAYE) tax amounting to UGX.290Mn in respect of deductions from employees was never remitted to the Uganda Revenue Authority. | +|---|---| +| 15 | The Departed Asians Property Custodian Board (DAPCB). 2020/21 Opinion Unqualified |  I noted that MDAs and LGs are still experiencing challenges in implementing the budgets approved by parliament and policy guidance’s issued by PS/ST, which has continued to affect the performance and credibility of the budget negatively.  I reviewed the NTR estimates, revenue sources and rates charged for the financial year 2020/2021 and noted that the entity budgeted to collect NTR of UGX.2,572,820,000 during the year under review. Out of this, only UGX.1,410,970,500 was collected, representing a performance of 55% of the target, resulting into a shortfall of UGX.1,161,849,500.  The entity budgeted to receive UGX.2.572Bn during the period, out of which UGX.1.383Bn was warranted, resulting into a shortfall of UGX.1.189Bn which is 46.23% of the budget.  I observed that in cases where outputs were not quantified, management reported performance in generic ways such as tenants sensitised to pay rent, court attended etc, without specifying the number/quantities achieved.  All five (5) outputs with a total of thirteen (13) activities worth UGX.1.383Bn were partially implemented.  I noted that in a twist of events, the Board refunded the sum of UGX.0.860Bn that had been deposited in respect of the property, citing the fact that the property had been donated to the tenant, but this was not supported by a Board resolution.  I observed that according to a disclosure in note 19 of the accounts, receivables have increased from UGX.3.35Bn last year to UGX.8.21Bn this year. Of this amount, UGX.3,73Bn relates to uncollected rent from prior years and UGX.4.60Bn relates to unpaid proceeds from property sales.  I reviewed the portfolio of DAPCB court cases and noted that there was a continuous rise) in the number of court cases against the Board arising from disputes of properties. The cases rose by 18, making a total of 120, as at the end of the year. | + + +222 + +--- + +||  I noted that the entity does not have a comprehensive asset register to date. The copy of the compendium/register availed to me for audit was still under verification by management and as such management could not vouch for its completeness.  I reviewed the compendium of assets presented for audit by management and noted that nearly all properties therein were not yet valued, and yet the Board of valuers has now been in place for nearly three financial years. | +|---|---| +| 16 | The Danida (Upgrade) Project Under the Inspectorate of Government. 2020/21 Opinion Unqualified |  I noted that MDAs and LGs are still experiencing challenges in implementing the budgets approved by parliament and policy guidance's issued by PS/ST, which has continued to affect the performance and credibility of the budget negatively.  I noted that the project had an approved budgeted of UGX.7,910,415,388 but only received UGX.2,047,981,275 as revenues for the period, leading to a 35.7% revenue performance.  I observed that the project work plan had 47 activities out of the planned 69 activities that were not quantified. | +| 17 | The Inspectorate of Government (IG). 2020/21 Opinion Unqualified |  I noted that MDAs and LGs are still experiencing challenges in implementing the budgets approved by parliament and policy guidance’s issued by PS/ST, which has continued to affect the performance and credibility of the budget negatively.  I reviewed the NTR estimates, revenue sources and rates charged at vote level for the financial year 2020/2021 and noted that the entity budgeted to collect NTR of UGX.1,201,509,223 during the year under review. Out of this, a total of UGX.1,875,073,520 was collected, representing a performance of 156% of the target with an excess collection of UGX.673,564,297.  The entity budgeted to receive UGX.53.4Bn from GoU sources; however, only UGX.49.45Bn was released, resulting into a shortfall of UGX.3.95Bn, which is 7.4% of the budget.  Out of the total warrants for the financial year of UGX.49,446,960,793, UGX.45,655,225,893 was spent by the entity, leaving a balance of UGX.3,791,734,900 unutilised by the vote.  I noted that the approved work programme for the construction of headquarter building indicated planned progress of 32% compared to the actual work progress of 11.9%. | +| 18 | The Northern Uganda Social Action Fund Project Under the Inspectorate of Government (IG). 2020/21 Opinion Unqualified |  The project had an approved budget of UGX.2,235,166,397 for the FY 2020/21. I noted that a total of UGX.2,235,166,397 was received for the period representing 100% of the appropriated amount.  I noted that out of the twenty (20) sub-activities in the approved work plan for the FY 2020/21, eight (8) of them were not quantified. | +| 19 | Ministry of Finance Planning and Economic Development (MoFPED). 2020/21 |  Analysis of domestic arrears showed an increase of UGX.139Bn from UGX.129Bn in the financial year 2019/20 to UGX.269Bn in the financial year 20/21 representing a jump of 108%. Overall, tax expenditure by government for private firms continues to account for the biggest portion of the arrears (at 78%) despite the write off of the tax arrears in the | + + +223 + +--- + +|| Opinion Unqualified | previous financial year. I also noted that arrears relating to unsettled obligations to international organizations stood at UGX.49.49Bn with some dating as far back as financial year 2014/15.  GoU, through MOFPED, offered additional incentives of USD Cents 5/KWH to companies in the Cotton, Textile and Apparels (CTA) industry. During the financial year ended 30th June 2021, a total of UGX.3.36Bn was paid/refunded to two manufacturers while UGX.5.41Bn remained outstanding as at year end; However, I noted that; i) the concession was not time-bound, which exposes government to perpetual expenditure without value analysis. ii) none of the beneficiaries had furnished the Ministry with the required insurance bond despite the continued access to the benefit. iii) there was no evidence of publicizing the concession for the benefit of all eligible firms/persons. In this regard, the concession is only being enjoyed by two firms which creates competitive disadvantages to the other players in the industry. iv) there was no mechanism in place to monitor compliance with the set targets despite having reached the first milestone. v) the memorandum of understanding signed did not provide for reporting obligations for the beneficiaries. There was thus no justification for the continued incentive vi) all refunds effected so far are made from supplementary budgets implying none sustainability of the incentive. Indeed a total of UGX.5.41Bn remains outstanding as at 30th June 2021.  In line with the above, it is apparent that the subsidy is being implemented with irregularities. Government is exposed to continued expenditure without due regard to achievement of the intended objectives.  The Uganda Agriculture Insurance Scheme (UAIS) is a Public Private Partnership between GoU and the Private Sector represented by the Uganda Insurers Association and insurance companies under the agro- Consortium. The purpose of the scheme is to hedge Ugandan farmers against natural calamities beyond their control. However, review of implementation revealed that there was lack of a mutual agreement on Marketing of the scheme to the potential beneficiaries and a number of conditions in the MoU are not yet fulfilled. This has limited its access to potential beneficiaries and also raised transparency concerns in regard to how the current beneficiaries were identified.  The PPP Act 2015 provides that there is to be established a Project Development Fund to support public private partnerships initiatives. However, six years later, there is no evidence of operationalization of the Fund by the Minister. Failure to establish the fund may be a contributory factor to the slow uptake and limited feasibility studies of the Public Private Partnerships. | +|---|---|---| +| 20 | PPDA Tribunal. 2020/21 Opinion Unqualified |  I noted that the Tribunal was operating a strategic plan that is not aligned to the NDP III period. The Tribunal’s planning period is 2017- 2022 implying that activities implemented during the financial year 2020/2021 may not have been aligned to the NDP-III, which negatively affects the achievement of NDP-III objectives. | + + +224 + +--- + +| 21 | Uganda Investment Authority. 2020/21 Opinion Unqualified |  The Authority received off-budget financing to a tune of UGX.50.43Bn, which was not transferred to the consolidated fund as required by law. These funds were received directly from development partners to the EPC contractor for the Development of infrastructure at Kampala Industrial and Business Park, Namanve. Off-budget financing distorts planning, may result into duplication of activities and is contrary to the Public finance Management Act 2015.  The approved budget estimates for the Authority for the financial year 2020/2021 indicated that only UGX.22Mn out of UGX.2.411Bn was budgeted towards the settlement of domestic arrears. The arrears balance of UGX.2.389Bn was therefore not budgeted for settlement. Failure to provide resources for the accumulated arrears increases outstanding obligations.  The Authority continued to accumulate domestic arrears with a total of UGX.1.768Bn incurred in the financial year under review, without clearing outstanding arrears from the previous financial year 2019/2020 of UGX.2.411Bn. The total accumulated domestic arrears stood at UGX.4.18Bn at 30th June 2021. This is an indicator of non adherence with the commitment control system of government.  During inspections countrywide, I observed that the industrial parks lack or had inadequate infrastructures like roads, solid waste and sewage management systems, power supply, street lights etc. The Parks have been characterized by encroachment, farming and cattle grazing, degradation of nearby swamps, unallocated land, idle land allocated to unserious investors and misunderstandings between investors and park management staff. Most roads are impassable and with inadequate lighting which exposes the parks to thefts and insecurity. I observed that some factories in the parks have set up their own infrastructure which may not be sustainable, and to the desired standards. This may negatively affect the usage and utilization of the parks.  The Authority lacks regulations required under Section 38(1) of the Investment Code Act to operationalize the statute. This may hinder the smooth implementation of the Act which is meant to create an investment enabling environment.  Although the Authority has 124 approved positions, only 78 (i.e. 62.9%) are filled, leaving 46 (37.1%) vacant positions. Among the vacant positions include 24 unfilled positions that are from the core Directorate of Investment which is the backbone of UIA. Understaffing undermines service delivery. | +|---|---|---| +| 22 | Treasury Operations. 2020/21 Opinion Unqualified |  I reviewed the NTR estimates, revenue sources and rates charged at vote level for the financial year 2020/2021 and noted that the entity had not budgeted to collect NTR during the year under review.  It was noted that out of the approved budget of UGX.15.129Tn for the vote for the final year ended 30th June 2021, only UGX.14.204Tn was released, representing 93% of the approved budget.  Of the UGX.14.204Tn received in the current Financial Year, only UGX.11.963Tn was spent by the vote resulting into an unspent balance of UGX.2.241Tn representing an absorption level of 84%.  I noted that the interest accrued on the outstanding debt but not yet paid amounting to UGX.1.039Tn was not recognised in the financial statements.  Included in the receivables figure is UGX.10.437Bn that was lent by | + + +225 + +--- + +|| government to private enterprises for which no recovery has been effected since 2013.  Included in cash and cash equivalents is UGX.15.62Bn which was a USAID grant for enhancing Livelihoods and Infrastructure of Northern Uganda under a project. The funds have remained utilized for more than two years and risk being refunded to the donor yet it was a grant.  I noted that there is no clear method of identifying which claimants are considered for negotiations even in the instance of where the said claimants have mandamus orders.  I have noted that over the years, budgets for mandamus payments are included in the original budget as notional amounts despite having a figure for outstanding payments at the beginning of the year, including those for which settlement plans have been drawn as per the signed MoUs and court variation orders with beneficiaries.  Audit observed that, UGX.3.32Tn which was advanced by the Bank of Uganda to settle matured obligations relating to treasury bills and bonds (principal and interest) had not been refunded as at 30th June 2021 contrary to the requirements under Section 36 of the PFMA.  A review of the company files in which the GOU holds shares revealed that some companies were dormant, with no activities being undertaken on the said files. There was no evidence that the said companies were filing the mandatory annual returns, minutes of the Annual General Meetings or any information to indicate the activity of the companies.  Audit established through a review of records at Uganda Registration Services Bureau that Government owns a number of investments that are not reported/ recognised in the financial statements of Treasury Operations.  It was established that the Minister provided authorisations to nineteen (19) Public Institutions to borrow funds from financial institutions totalling to UGX.60.042Bn, but there was no evidence of any monitoring being undertaken by the Ministry to ensure adherence to the loan terms and conditions. | +|---|---| +| 23 | Insurance Regulatory Authority. 2020/21 Opinion Unqualified |  Out of the budgeted NTR of UGX.26.874Bn, only UGX.19.818Bn was collected and a shortfall of UGX.7.056Bn, representing a performance of 73.7% of the target. Shortfalls in NTR collections affect the implementation of planned activities.  I noted that a number of planned procurements were not executed worth UGX.5.61Bn. Non implementation of all procurements leads to failure to attain the intended objectives during the financial year.  There were noted delays in the phase one construction of an ultra- modern 11 storeyed office building for Insurance Regulatory Authority located at plot 6, Lumumba Avenue, which was awarded to a contractor at an amended contract price of UGX.32.662Bn. By the time of reporting, although a total cumulative payment of UGX.29.943Bn (91%) had been made to the contractor, the project was at 80% completion and 46 months behind schedule. | +| 24 | National Lottery & Gaming Board. Opinion Unqualified |  I noted that a number of Gaming houses had not filed the required quarterly returns contrary to the Lotteries and Gaming regulations. There was no evidence that the Board had conducted enforcement activities to ensure compliance by the operators.  Failure to undertake enforcement actions poses a risk of the operators | + + +226 + +--- + +|| not making returns and having operational gaps going undetected which affects the revenue collections of Uganda Revenue Authority and exposes the Ugandan public to risk of unprofessional operators.  The Ministry of Finance, Planning and Economic Development on behalf of Lotteries and Gaming Regulatory Board awarded a UGX.10.833Bn contract to a foreign company to provide consultancy services for development of a National Central Electronic Monitoring system. The contract period was for 2 (two) years effective 23rd June, 2020. I noted that, two years later, the procurement has not been made. There is no provision for implementation of the system even in the current budget 2021/22. The failure to procure the system, denies the Board the associated benefits like monitoring and revenue tracking. Beside this may result into litigation on grounds of breach of contract and expose Government to loss of funds in compensation.  During the year under review, although the Board licensed 17 casinos, there was no evidence that the Board advertised the applications for the said casinos to invite the views of the public as is required by regulations. Failure to publish the notices poses a risk of granting licenses to operators with some conflicts among the public and as such may result into litigation. | +|---|---| +| 25 | Public Procurment And Disposal of Public (PPDA) 2020/21 Opinion Unqualified |  I noted at the time of the audit that out of the planned Four (4) strategic targets/goals, No targets had been fully achieved, while three (3) were partially achieved, and one (1) target had not been achieved at al  I noted that out of the budgeted revenue of UGX.28.4Bn for the year 2020/21, UGX.21.3Bn was realised representing a performance of only 75% of the target.  Out of the 5 outputs assessed, No output was fully implemented; 5 outputs representing 100% were partially implemented, while no output was not implemented at all.  I noted that although the budget for Domestic arrears was UGX.42,407,000, funds amounting to UGX.432,579,009 were spent on domestic arrears for the FY 2020/21, implying an over expenditure of UGX.390,172,009 on this item.  Out of the total receipts for the financial year of UGX.18.698Bn, UGX.18.59Bn was spent by the Authority, resulting into an unspent balance of UGX.0.108Bn representing an absorption level of 99%.  The audit reviewed the performance of the above project and noted that much as most of the key planned activities had been implemented, there were few that were still pending.  I observed that the entity has a staff establishment of 140 positions, out of which only 116 were filled, leaving 24 positions vacant, representing 17% of the workforce of the entity. In addition, seven staff exited the Authority during the year, due to various reasons. | +| 26 | Bank of Uganda. 2020/21 Opinion Unqualified |  No significant findings. | +| 27 | Capital Markets Authority. 2019/20 Opinion |  No significant findings. | + + +227 + +--- + +|| Unqualified || +|---|---|---| +| 28 | Deposit Protection Fund ("The Fund") 2020/21 Opinion Unqualified |  I noted that although effective 1st July 2020, DPF was exempt from withholding tax, Bank of Uganda erroneously deducted withholding tax (WHT) on the Fund’s interest income on matured government securities during the period amounting to UGX.10.4Bn. However, directors have decided to make full provision against the WHT receivable based on the historical experience and expected future outcome of the claim from URA on a conservative basis, and this is in accordance with the requirement of IAS 36: Impairment of Assets. | +| 29 | Pride Microfinance Limited (MDI) 2020 Opinion Unqualified |  No significant findings. | +| 30 | Project for Financial Inclusion In Rural Areas (PROFIRA) Opinion Unqualified |  I noted that, as reported in my report for the year ended 30th June 2020, Government of Uganda has not yet honored its obligation of UGX.5.6Bn as co-funding for the Project.  I observed that the project has been supporting SACCO’s that were not registered by Uganda Microfinance Regulatory Authority (UMRA). | +| 31 | The Resource Enhancement and Accountability Programme (REAP) 2020/21 Opinion Unqualified |  No significant findings. | +| 32 | Uganda Development Bank Limited (UDBL). 2020 Opinion Unqualified |  No significant findings. | +| 33. | Microfinance Support Centre Limted (MCSC) 2020 Opinion Unqualified |  I noted that unresolved receipts in payables balance amounting to UGX. UGX.581 Million | +|| INFORMATION COMMUNICATION SECTOR || +| 1. | Ministry of ICT and National Guidance Opinion Unqualified |  The entity budgeted to receive UGX.46.401Bn from Treasury; out of this amount, UGX.43.586 Bn was warranted, resulting into a shortfall of UGX.2.81Bn which was 6% of the budget. Of the released amount, the Ministry absorbed UGX.42Bn, resulting into an unspent balance of UGX.1.6Bn representing an absorption level of 96%. Unspent balances imply un implemented activities and which in turn hampers proper service | + + +228 + +--- + +||| delivery.  Contrary to Regulation 18 (1) of the PPDA (Contracts) Regulations, 2014, the Ministry issued call off orders to two firms in three separate procurements of office furniture worth UGX.144.8Mn under a framework contract where the items and prices on the call off orders were different from what was agreed on in the signed framework contract. This erodes the benefits of framework contracts and may cause a loss to Government. | +|---|---|---| +| 2 | Uganda Communications Commission. Opinion Unqualified |  Assessment of the Commission’s performance of Non Tax Revenue (NTR) revealed that out of the budgeted NTR of UGX.156.59Bn, a total of UGX.454.61 was collected, representing an increase of UGX.298Bn (190% of the target). Management attributed the overperformance to payment of the National Telecom Operator (NTO) license by two telecom companies which had not been budgeted for. The Accounting Officer was advised to always conduct comprehensive research on all potential revenue sources for proper budgeting of NTR.  Out of the total receipts for the financial year of UGX.454.61Bn, only UGX.451.98Bn was spent by the entity resulting into an unspent balance of UGX.2.63Bn representing an absorption level of 99.5%. I commended the Accounting Officer for absorbing most of the funds availed despite the challenges during the year.  I noted that several procurements to the tune of UGX.4.51Bn were not implemented as of 30th June 2021. As a result, implementation of critical Commission programs was delayed. Management attributed the delays in these procurements to the COVID-19 pandemic that paralysed the entire procurement process.  The Commission discontinued issuing invoices to Uganda Telecom Ltd, Posta Uganda and Uganda Broadcasting Corporation due to tax implications where, the Commission has to pay VAT to URA on every invoice raised, whether funds are received or not. As a result, UCC ledger balances of UGX.85.1Bn differed from the reported receivables of UGX.13.1Bn, by a total of UGX.72.0Bn. Furthermore, I noted that the reported receivables by UCC from the same entities differed from the reported payables to UCC by the same entities. The Accounting Officer was advised to engage management of the affected entities with a view of reconciling to the correct receivable figures.  The Commission did not charge the 2% gross annual levy on the licensed Television and FM radio operators and no licensed Television and FM radio operator had submitted Audited financial statements to the Commission for assessment. This denied the Commission the revenue to implement development programs.  The Commission lacks a Tribunal with the jurisdiction to hear and determine all matters relating to communications services arising from decisions made by the Commission or the Minister, contrary to Section 60(1 & 2) and 64(1) of the Uganda Communications Act, 2013. The accounting officer explained that the responsibility to appoint the tribunal resides with the President on the recommendation of the Judicial Service Commission. I advised management and the Board of Directors to liaise with the relevant authorities with the view of constituting the Communications Tribunal. | +| 3 | Rural Communications Infrastructure Program, Phase 5 – Uganda Project, IDA LOAN NO.5635-UG |  I noted that MDAs and LGs are still experiencing challenges in implementing the budgets approved by parliament and policy guidance’s issued by PS/ST, which has continued to affect the performance and | + + +229 + +--- + +|| 2020/21 Opinion Unqualified | credibility of the budget negatively.  I noted that RCIP was lagging behind in some activities that would not be completed at the project end.  I noted that all four components did not fully absorb the available funds. Out of the UGX.104.88Bn that was released to RCIP, the Project only utilised UGX.76.52Bn, thus failing to absorb funds to a tune of UGX.28.36Bn representing 27% of the released funds.  It was noted that RCIP set clear performance targets and indicators for some activities to facilitate performance measurement.  I noted that a total of USD.702,415 has so far been paid to the contractor for supply, installation and commissioning of the e-government procurement system, of which a total of USD.198,645 was paid during the year under audit.  Government lost USD.208,156 for receiving quality assurance services for a system that had already been discontinued by Government | +|---|---|---| +| 4 | National Information Technology Authority – Uganda (NITA-U) 2020/21 Opinion Unqualified |  Analysis of domestic arrears over the past three years has shown a steep upward trend over the period with a 123% growth. The outstanding amount currently is UGX.6Bn. Further analysis revealed that most of the arrears relate to costs of expanding the national backbone infrastructure. The domestic arrears at hand now account for 14% of the annual GoU budget of the Authority. Such a trend is not only unsustainable but may lead to erosion of the credit worthiness of the Authority and may attract interest and penalties.  Included in the Statement of Financial Position is a receivable of UGX.14.9Bn arising from the 1% levy on Telecoms due from Uganda Communications Commission (UCC) dating as far back as financial year 2016/17, whose recoverability is doubtful following a policy directive from the Ministry of Information, Communication and National Guidance to the effect that NITA-U should stop recognizing its share of 1% levy on Telecoms.  UGX.1,532,979,432 reflected as non-produced assets in the Statement of Financial Position relates to land leased to NITA-U by Uganda Investment Authority. The same land has been leased to a private company without the knowledge of NITA-U. Although NITA-U filed a case against UIA in the High Court seeking a permanent injunction restraining UIA, the case was dismissed noting that the matter could only be determined under land law. By the time of audit, a developer to whom UIA leased the property had taken possession of the land and started undertaking developments on it. | +| 5 | Uganda Broadcasting Corporation (UBC). 2020/21 Opinion Unqualified |  Although the entity budgeted to receive UGX.45.83Bn only UGX.15.39Bn was collected and spent, resulting into a shortfall of UGX.30.43Bn which is 66.4% of the budget. The budget for the financial year 2020/2021 was developed on the assumption that UBC would receive the UGX.34.6 Billion approved by Parliament; however, the Corporation did not receive the funds as planned. This is an indication of unrealistic budgeting by the Corporation well aware of the effects of the Covid-19 pandemic  Comparison of the trade receivables balances for current year and prior year indicates that the receivables decreased by 28% from UGX.30.79Bn to UGX.22Bn. An ageing analysis revealed that receivables worth UGX.13.549Bn from 228 clients were at least 7 years old without any movements in their ledger accounts, thus casting doubt as to their existence and recoverability. | + + +230 + +--- + +||  The Corporation has outstanding NSSF amounting to UGX.46.38Bn as at 30th June 2021. As a result, the Corporation and the Managing Director have been sued for non-payment and imposition of interest and fines by the NSSF due to non-remittance is now likely. This is wasteful as it could have been avoided if remittances had been made in a timely manner. | +|---|---| +| 6 | Uganda Post Limited. 2020/21 Opinion Unqualified |  I noted that despite this being the final year of the Strategic plan and collecting on average, over 86% of the budget, most objectives were not achieved, with some attaining between 21% and 39% of implementation. The key strategic objectives that were not met include Building a strong financial base to meet operational and project development budget, Attracting, deploying, developing and retaining a productive and motivated Human Resource, Strengthening the ICT unit to raise efficiency and competitiveness of UPL products and Rationalizing existing business lines and diversifying into low hanging opportunities to improve profitability.  The company faces a liquidity crisis which was evidenced by delayed payment of staff salaries for over five months amounting to UGX.1.1Bn, non-payment of statutory obligations amounting to UGX.8.36Bn and failure to complete planned procurements. Management has initiated engagements with Statutory Bodies to settle the liabilities. .  The company has a total of 11 disputed prime Properties with Uganda Telecom Limited in Administration and Uganda Institute of Communication and Technology. Engagements are underway to resolve the impasse.  The company still lacks land titles for several pieces of land which include land in Mpigi, Tororo, Fort Portal, Kasese and Palisa. Management is expeditiously following up the matter.  Although UPL procured the E-Posta System to record all transactions relating to postal services, some services like Home Delivery Services, Post Shop Sales, and Outbound Parcels are still recorded manualy. In addition, there is no interface between Transaction Processing Systems and the Sage financial management system. Manual recording of transactions is prone to abuse and errors | +| 7 | Uganda Communication Employees Contributory Pension Scheme (UCECPS) 2020/21 Opinion Qualified |  I noted unsurpported payables amounting to UGX.2,679,752,000.  I noted that eleven (11) properties disclosed as part of the non-core assets were not valued and therefore not included in the value of Non- current assets of the Scheme.  A review and comparison made between the audited financial statements for the period ending 30th June, 2019 and the financial statements for the period ending 30th June, 2020 revealed inconsistencies in the account balances of reserves.  Unsupported and un-reconciled receivables from Uganda Telecom LimiteD (UTL - IN ADMINISTRATION)  I noted that the cash flow statement was misstated.  I noted that out of the budgeted revenue of UGX.12,447,003,444 for the year 2019/2020, only UGX.2,264,969,444 was realised representing a performance of only 18.2% of the target which implied that the Scheme had a deficit of 81.8%.  I noted unbudgeted expenditure totaling to UGX.88,575,000  I noted diversion of members’ contribution (dc) to pay Defined Benefits | + + +231 + +--- + +|| (DB) liabilities amounting to UGX.4,550,343,000  | +|---|---| +| 8 | Agricultural Credit Facility (ACF) 2020/21 Opinion Unqualiified |  No significant findings. | +|| TRADE SECTOR |  | +| 1 | Quality Infrastructure and Standards Programme (QUISP). 2017/2018 Opinion Qualified |  I observed that a sum of UGX. 80,034,014 and USD. 14,040 was paid to various officers and companies. However, contrary to the guidelines, the expenditure vouchers together with the supporting documents were not availed for audit verification.  Payments amounting to UGX.28,798,048 were paid to officers to enable them carryout various QUISP activities. However, some of the expenditure lacked necessary supporting documents such as activity reports, payee’s acknowledgment and accountability receipts.  The programme had outstanding commitments to the tune of UGX. 373,603,894 as at end of the financial year. According to a letter from the Embassy of Sweden to the Permanent Secretary Ministry of Trade, Industry and Cooperatives dated 27th April, 2017 activities to a tune of UGX. 147,264,493 were authorized to be charged on the QUISP Programme. The entity spent a sum of UGX. 147,468,378 leaving outstanding commitments of UGX. 226,135,516 as indicated in the schedule of outstanding commitments.  I reviewed the Programme bank statements and noted that as at 31st March 2021, UGX. 10,426,029 and USD. 1,973.43 was still on account. Failure to spend funds resulted in partial and non-implementation of planned activities.  I observed that a sum of UGX. 4,038,651 was deducted from two (2) service providers in respect of 6% withholding tax for onward remittance to Uganda Revenue Authority  The project procured 79 assets over the Programme life time. In March 2021, I carried out an inspection of the assets procured under the Programme and noted that 12 were functional, 2 (vehicles) were under repair, 16 were old and beyond repair, 12 were non-functional while 37 were not availed for verification. I could not assess the status of the 37 assets that were not availed. | +| 2 | Uganda Export Promotions Board 2020/21 Opinion Unqualified |  The entity budgeted to receive UGX.5.813Bn. However, UGX.3.759Bn was warranted, resulting into a shortfall of UGX.2.054Bn, which is 35.4% of the budget. This affected implementation of planned activities.  It was observed that the term of office for the previous Board expired on 5th October 2019, and no replacement Board had been appointed by the time of issuance of my report. This is likely to affect the strategic direction of the entity. For example, I noted that at the time of the audit (June 2021), the entity’s strategic plan was in draft form and was not approved due to the lack of a Board.  I noted that contracts worth UGX.192Mn were awarded to bidders who | + + +232 + +--- + +|| did not submit the required documents to evidence the eligibility and administrative compliance as required by regulations and bid documents at the preliminary stage. | +|---|---| +| 3 | Uganda Freezones Authority (UFZA) 2020/21 Opinion Unqualified |  Contrary to Section 15 of the Public Finance Management Act 2015, the Authority overspent to the tune of UGX.635Mn on recruitment and personnel costs in excess of what was approved by the Board.  The entity budgeted to collect NTR amounting to UGX.2.101Bn but was only able to collect UGX.0.06Bn resulting into a shortfall of UGX.2.04Bn, which is 97.13% of the NTR budget. The paltry performance was attributed to COVID19 disruptions.  The development work on 5 acres of land at Entebbe International Airport commenced in September 2020 and works worth UGX.4.146Bn (27%) had been certified as completed as at 30th June 2021. However, the Authority had affected 89% advance payment to NEC as at 29th June 2021, amounting to UGX.15.34Bn and all the advance guarantees staked had expired.  Although the Authority has taken possession of 109 acres of land at Buwaya purchased at UGX.7.6Bn and 5 acres of land at Entebbe International Airport purchased at UGX.850Mn, it still lacks land titles to confirm legal ownership. | +| 4 | Uganda Warehouse Receipt System Authority (UWRSA) 2020/21 Opinion Unqualified |  The Uganda Warehouse Receipt System Authority had an approved budget of UGX.8,904,499,400 for the year. A review of the entity’s receipts, cashbook and bank statement for the period ending 30th June 2021 revealed that UGX.8,035,212,980 was received under the normal budget appropriation  Whereas the overall Government National Development Plan (NDP II1) 2020/2021-2024/2025 was commissioned in the year under review, UWRSA had no approved strategic plan for the period under review  I noted that the entity did not budget for any tax revenue despite collecting 84 million. Failure to budget for NTR conceals the entity’s potential collect revenue and also complicates assessment of performance since there is no benchmark.  I noted that out of the budgeted revenue of UGX. 8.899Bn from the Central Government for 2020/2021, and only UGX. 8.035Bn was received, representing a performance of only 90 % of the release.  The entity had a cash balance brought forward of UGX.134,172,095 from FY 2019/2020 and received UGX.8,035,212,980 making total cash available for spending in FY 20/21 of UGX.8,169,385,075. Out of the total cash available to spend, only UGX.3,730,897,866 was actually spent by the entity, representing an absorption level of 46%. This resulted into a balance of UGX.4,438,487,209 (54%) as unspent funds.  I compared the consolidated procurement plan, monthly procurement reports and procurement files availed and established that a number of procurements worth UGX.2,621,000,000 were not completed as of 30th June 2021.  Failure to implement planned activities despite availability of funds.  I noted that the Board sat only once during the year under review on 16th September 2020. I also noted that the Chairperson of the meeting did not sign the minutes for the meeting.  I noted that the Board had not developed some governance policies, manuals and other documents that would help in the smooth running of | + + +233 + +--- + +|| the Authority.  The Authority received from the Treasury UGX.13,237,853,910 for the last three financial years to deliver its mandate; however, no tangible results are indicating that it is effective.  I established that procurements worth UGX.62,390,000 were implemented during the year, and yet they were not in the Authority’s consolidated procurement plan. | +|---|---| +| 5 | Competitiveness and Enterprise Development Project (CEDP) Component 2-5 IDA Credit Agreement CR 52690-UG PROJECT ID P130471. 2020/21 Opinion Unqualified |  Competitiveness Enterprise Development Project (CEDP) approved budget for the Financial Year 2020/2021 was UGX.24.18Bn Comprising: UGX.23.5Bn IDA funding and UGX.742.3Mn GoU contributions. Expenditure was UGX.17.4Bn, yielding a 72% budget performance.  The facility's construction certified completed civil works was at 95% on 28th November 2021, and that out of the contract amount of UGX.46,168,410,564, a total of UGX.38,463,565,811 (83.3%) has been paid so far.  The construction of the Building works at UHTTI was expected to be completed by 25th April 2019, and several extensions were entered into up to 30th June 2021. By the time of my field inspection, construction was still ongoing. | +| 6 | Great Lakes Trade Facilitation Project (GLTFP). 2020/21 Opinion Unqualified |  I noted that the project management had failed to achieve its objectives by the initial project closure date of 31st December 2020.  As at 30th June 2021, a total of UGX.6.862Bn representing 62% was available for spending as indicated in the Statement of Financial performance leaving a budget deficit of UGX.4.106Bn representing 38%.  Audit noted that out of UGX.6.862Bn total funds available for use during the year, the project managed to utilize UGX.4.423Bn in the implementation of various project activities, leaving an unspent balance of UGX.2.439Bn (25% of the available funding). | +| 7 | Ministry of Trade, Industry and Cooperatives 2020/21 Opinion Unqualified |  I reviewed the approved revenue estimates for the financial year 2020/2021 and noted that the Ministry budgeted to receive Revenue of UGX.233.147Bn during the year under review. The entity received UGX.230.417Bn as releases from the consolidated fund representing the overall performance of 98%.  The Ministry budgeted to collect UGX.0.072Bn but realised UGX.0.053Bn, hence a shortfall of UGX.0.019Bn representing 25.4% of the budget.  Out of UGX.230.417Bn released for various activities, UGX.229.123Bn was spent by the entity resulting into an unspent balance of UGX.1.294Bn representing an absorption level of 99%.  Analysis of the vote performance revealed that a number of programs remained outstanding at the year-end, leaving a total unspent balance of UGX.2.0726Bn.  The entity charged different expenditure codes for several expenditure items from those stipulated in the chart of accounts. This resulted in mischarging of expenditures worth UGX.81,083,608.  Analysis of domestic arrears over the past three years has shown an upward trend in arrears from UGX.10.4Bn in 2018/19 to UGX.19.4Bn in 2020/21.  I observed that the Ministry had not paid verified domestic arrears worth | + + +234 + +--- + +|| UGX.16.743Bn.  I noted that the Ministry accrued domestic arrears worth UGX.242Mn during the financial year.  I noted that a total of UGX.159,543,267 paid to service providers and advances to various staff was not adequately supported with accountabilities and supporting documents such as requisitions, receipts, activity reports, minutes of meetings.  Payments amounting to UGX.73Mn were advanced to personal accounts of staff to make onward payments to suppliers for services like office internet, hotels, workshop related expenditure, among others.  I noted that as of 30th June 2021, several compensations claim worth UGX.165Bn by some Cooperative Societies had not been verified. There was also no evidence that verification teams had been constituted to undertake the verification exercise.  Examination of records revealed that for some Cooperatives, the amounts to be paid as compensation for war losses were in excess of the amounts originally claimed by the Cooperatives.  I noted that payments amounting to UGX.14Bn were made to persons and law firms other than the beneficiary Cooperative Societies.  review of the procurement processes revealed that, for eight (8) procurements valued at UGX.282,626,237, the estimated market prices approved by the Accounting Officer on Form 5, were the same as those quoted by the best-evaluated bidder and subsequently awarded. I observed that the evaluation committee and Contracts committees did not detect the questionable coincidence.  The ministry acquired a lease on an already existing lease for land and subsequent loss of funds. | +|---|---| +| 8 | Uganda National Bureau of Standards. 2020/21 Opinion Unqualified |  The Beareau was unable to activate the use of the Digital Tracking System (DTS) to enforce conformity to standards of selected items and claim the associated fees due to absence of an enabling regulation to operationalise the Service. As a result, the Buereau was unable to claim for a total of UGX.13Bn charged on goods and services for conformity stamps issued by the provider towards conformity enforcement. There is a risk of misuse of the amounts involced by the private provider.  The Bureau released 366 consignments without testing due to lack of capacity and another 633 consignments released due to the absence of standards to test these commodities for conformity. Lack of capacity may lead to the release of sub-standard products to the market.  I noted that out of the approved staff structure of 666 positions, the Bureau had only filled 439, leaving a staffing gap of 227 (34 %). As a result, there was staff presence at only 27 out of the 170 border entry points. There is a risk of sub-standard goods entering the country through border points where the Bureau staffs are not present.  It was noted that procurements to the tune of UGX.2.735Bn were not completed as of 30th June 2021. This was attributed to several reasons, including failure to attract competitive bidders for some procruements, delayed submission of clear specifications, especially for specialised equipment, late submissions/ initiations of procurement requisitions by the users, as well as delayed deliveries due to COVID-19 especially for specialised Equipment. Un implemented activities imply that the provision of critical government programs and associated services were delayed. | + + +235 + +--- + +| 9 | Uganda Development Corporation (UDC). 2020/21 Opinion Unqualified |  Out of the total funds received of UGX.137.27Bn only UGX.63.39Bn was spent by the entity during the year, resulting into an unspent balance of UGX.73.88Bn representing an absorption level of only 46%. I noted that out of the 17 development project activities planned to be implemented during the period under review, only (3) three development projects were fully implemented, while Five (5) development projects were partially implemented, Eleven (11) projects were not implemented at all. Failure to fully absorb funds by the Corporation, leads to non-achievement of development objectives.  The UDC Act 2016 requires capitalisation of UDC to the tune of UGX.500Bn. The same Act also established an Industrial and Economic Development Fund which was to be run by the UDC. However, 5 years later, the company has never been capitalised to that tune; currently the capitalisation grants have accumulated to UGX.311Bn and the Industrial and Economic Development Fund has never been operationalized. The current funding model, is such that capitalisation grants over the years come assigned to specific projects which nullifies the investment appraisal process of UDC. This has the disadvantage of earmarking funds for investments that are not ready or even viable leading to the low absorption noted above.  An amount of UGX.30.46Bn was invested in various companies by UDC during the year without valuation. Shareholding in these companies had not been secured by the time of reporting. There is a risk of loss of value.  Although the UDC Act 2016 provides that the Corporation will take over the interest of government in seven entities specified in schedule 2 and to manage, promote and facilitate the interest of the government in those entities, 5 years later, this had not been done except for Nile Hotel Limited. The other entities include: Amber House Limited, Embassy House, Development House, Munyonyo Commonwealth Resort, Phoenix Logistics and Tri-Star Apparels Limited. There is a risk of loss of strategic direction and government may not be aware whether the national objectives of import substitution, employment and industrialization are being met by these entities. | +|---|---|---| +| 10 | Uganda Investment Authority. 2020/21 Opinion Unqualified |  The Authority received off-budget financing to a tune of UGX.50.43Bn, which was not transferred to the consolidated fund as required by law. These funds were received directly from development partners to the EPC contractor for the Development of infrastructure at Kampala Industrial and Business Park, Namanve. Off-budget financing distorts planning, may result into duplication of activities and is contrary to the Public finance Management Act 2015.  The approved budget estimates for the Authority for the financial year 2020/2021 indicated that only UGX.22Mn out of UGX.2.411Bn was budgeted towards the settlement of domestic arrears. The arrears balance of UGX.2.389Bn was therefore not budgeted for settlement. Failure to provide resources for the accumulated arrears increases outstanding obligations.  The Authority continued to accumulate domestic arrears with a total of UGX.1.768Bn incurred in the financial year under review, without clearing outstanding arrears from the previous financial year 2019/2020 of UGX.2.411Bn. The total accumulated domestic arrears stood at UGX.4.18Bn at 30th June 2021. This is an indicator of non adherence with the commitment control system of government.  During inspections countrywide, I observed that the industrial parks lack or had inadequate infrastructures like roads, solid waste and sewage | + + +236 + +--- + +|| management systems, power supply, street lights etc. The Parks have been characterized by encroachment, farming and cattle grazing, degradation of nearby swamps, unallocated land, idle land allocated to unserious investors and misunderstandings between investors and park management staff. Most roads are impassable and with inadequate lighting which exposes the parks to thefts and insecurity. I observed that some factories in the parks have set up their own infrastructure which may not be sustainable, and to the desired standards. This may negatively affect the usage and utilization of the parks.  The Authority lacks regulations required under Section 38(1) of the Investment Code Act to operationalize the statute. This may hinder the smooth implementation of the Act which is meant to create an investment enabling environment.  Although the Authority has 124 approved positions, only 78 (i.e. 62.9%) are filled, leaving 46 (37.1%) vacant positions. Among the vacant positions include 24 unfilled positions that are from the core Directorate of Investment which is the backbone of UIA. Understaffing undermines service delivery. | +|---|---| +|| TOURISM SECTOR |  | +| 1 | Uganda Hotel and Tourism Training Institute (UHTII) 2020/21 Opinion Unqualified |  Management failed to collect tuition fees and accumulated receivables to the tune of UGX.460Mn by close of the financial year, with some debts dating as far back as 2014. I observed that some students who had not cleared fees had completed their studies, graduated and even obtained their certificates rendering such receivables uncollectible.  I noted that the entity had prepared a new strategic plan, but had no proof of certification and approval of its plan by NPA. Management explained that the exercise was interrupted by Covid-19 Lock down and closure of schools.  Out of 175 approved posts for the Institute, only 127 were filled, resulting into a staffing gap of forty-eight (48) positions. Furthermore, seven (7) positions were filled by staff in an acting capacity including the Position of the Principal. Staffing gaps limit the Institute’s ability to effectively deliver the intended services. | +| 2 | Uganda Hotel and Tourism Training Institute. 2019/20 Opinion Unqualified |  I noted that the budget is not aligned to the specific outputs and therefore, I could not analyze the outputs achieved and planned in line with the approved budget.  I noted that at the time of the audit (June 2020), out of the planned eight (8) strategic targets/goals, one (1) target had been fully achieved, six (6) were partially achieved while one (1) target was not achieved at all.  The entity budgeted to collect NTR of UGX.2,064,355,474 during the year under review but only UGX.1,146,143,225 was collected.  Out of the total receipts for the financial year of UGX.5.296 billion, UGX.4.774Bn was spent.  I noted that the entity had outstanding receivables totalling to UGX.181,480,747  Failure to Develop Performance Agreements/targets for Senior Managers.  The Institute procured assorted items valued at UGX.36,097,220, however, I was not provided with stores documentation such as Ledgers, | + + +237 + +--- + +|| Stock cards and Goods Received Notes. | +|---|---| +| 3 | Uganda Wildlife Education Conservation Centre (UWEC). 2019/20 Opinion Unqualified |  Out of the 29 quantified outputs/activities assessed, 20 outputs/activities representing 69% were fully implemented; 4 outputs/activities representing 14% were partially implemented while 5 outputs/activities representing 17% were not implemented at all.  I noted that out of the budgeted NTR of UGX.5,360,000,000; only UGX.3,737,222,734 was collected representing performance of only 70% of the target.  I noted that the construction of the floating restaurant stalled. To date, the project is still at the first-floor stage and has since not been opened to the public.  A review of UWEC records revealed that UGX.6.6million was spent for resurveying the land on which the Centre is located. However, by the time of audit, the title had not been transferred to the Centre’s names. | +| 4 | Uganda Wildlife Research and Training Institute (UWRTI). 2019/20 Opinion Unqualified |  I observed that out of the budgeted NTR of UGX.435,000,000, only UGX.328,287,026 was collected representing a performance of 75% of the target.  I noted that although the entity received more funds than were budgeted some of the activities remained either partially or not implemented at all.  I observed that UGX.52,224,850 was paid directly to staff accounts to procure particular items or pay other staff members yet the funds in question, could have been paid directly to the intended final beneficiaries.  A review of the staffing structures for the UWRTI revealed that, out of the total approved structure of 46 staff, only 23 (50%) positions were filled while 23 (50%) positions had not yet been filled.  I noted that several direct procurements amounting to UGX.122,943,179 were made by the entity without justification for use of the direct procurement method.  I observed that the Governing Council is not fully constituted, since a representative of the Academic Board has not been nominated. | +| 5 | The Handicraft and Souvenir Development Project (HSDP) in Uganda for the year ended 31 st Dec 2020. Opinion Unqualified |  I noted that cumulatively a total of USD.940,460.00 had been disbursed to the Project by 31st December 2020, out of which USD.430,916.94 had been utilized, leaving a closing balance of USD.509,543.06 as at 31st December 2020.  It was also noted that no activity had been fully implemented/completed as of the time of this audit as they all remained either partially achieved or not achieved at all. | +| 6 | Nile Hotel 2020/21 Opinion Unqualified |  I noted that out of the budgeted revenue of UGX.2.041Bn from Concession fees and Investment income from fixed deposits, only UGX.1.191Bn was received, representing a performance of only 58% of the target. Failure to realise all budgeted revenue affects the implementation of planned activities. This was attributed to the effects of the COVID19 pandemic on the Tourism sector.  I noted that the entity is not in possession and is not aware of the exact whereabouts of the land title to the land on which Serena Hotel Kampala, is seated. The land is located on Plot 16-20 Nile avenue measuring 19.3 acres. The land is listed as part of the assets in the concession agreement | + + +238 + +--- + +|| that was signed between the Government of Uganda and TPS Uganda Limited and was leased by ULC and Nile Hotel International Ltd (NHIL) in 1995. | +|---|---| +| 7 | Uganda Wildlife Authority. 2020/21 Opinion Unqualified |  This being the first year of implementation of the NDP-III, the entity was expected to prepare a strategic plan aligned to NDP III and ensure that the plan was approved.  I reviewed the NTR estimates, revenue sources and rates charged at vote level for the financial year 2020/2021 and noted that the entity budgeted to collect NTR of UGX.82.Bn (Exclusive of UGX.30Bn prior-year surplus approved for re-investment during the year under review).  The entity budgeted to receive UGX.6.24Bn from donors, however, UGX.5.74Bn was realized, resulting into a shortfall of UGX.501Mn (8%) of the budget.  The entity budgeted to receive UGX.0.72Bn, out of which UGX.0.762Bn was received, resulting into an excess receipt of UGX.0.042Bn, representing 5.8% of the budget  I noted that Management re-assessed its revenue performance and requested the Board to approve a contingency plan to limit the expenditure of the Authority to only UGX.72.595Bn in line with the reduced revenue collections to finance only priority activities in the original approved budget of UGX.119.469Bn for FY 2020-2021.  I noted that the Authority prepared and submitted all the quarterly reports to the line ministry. However, there were delays in submission of Q1, Q2 & Q4 performance reports due to the effect of the covid-19 pandemic.  I noted decreasing Tourism Revenues due to Covid-19 Effect.  It was observed that the Authority has a total outstanding receivables balance of UGX.3.303Bn in the statement of financial position, of which UGX.2.244Bn are unpaid overdue fees from concessionaires that have been outstanding for more than a year.  It was noted that the entity has outstanding payables of UGX.71.655Bn in the statement of financial position of which UGX.8.422Bn are accrued staff gratuity that becomes due at the end of each staff’s four year contract.  UWA had only disbursed UGX.642,455,690 in respect of revenue sharing for the surrounding communities in Lake Mburo National Park, leaving a balance of UGX.9,697,730,137 un-disbursed.  The Accountabilities of the disbursed grants have not yet been availed by the beneficiary communities through to the district local governments by the time of audit on 3rd November 2021.  I noted that whereas the Human Resource unit is critical in managing staff-related affairs, it is only situated at the headquarters and comprises five (5) staff.  Non-integration of gorilla booking system to the accounting system.  It was noted that most of the Protected Areas in Uganda are currently undergoing ecosystem changes as rangeland infestation by invasive and exotic plant species. | +| 8 | Wildlife Research and Training Institute 2020/21 |  I reviewed the NTR estimates, revenue sources and rates charged at vote level for the financial year 2020/2021 and noted that the entity budgeted to collect NTR of UGX.0.495Bn during the year under review. Out of this, | + + +239 + +--- + +|| Opinion Unqualified | only UGX.0.200Bn was collected, representing a performance of 40.6% of the target.  The entity budgeted to receive UGX.3.931Bn during the period, out of which UGX.2.531Bn was warranted, resulting into a shortfall of UGX.1.4Bn, which is 36% of the budget.  A review of the staffing structure for UWRTI revealed that out of the total approved structure of 47 staff, only 23 (49%) positions were filled and 24 positions (51%) had not yet been filled.  A review of the procurement files revealed that the Institute awarded contracts to various providers totalling UGX.519Mn without carrying out market assessments/surveys. | +|---|---|---| +| 9 | Uganda Wildlife Education Conservation Centre. 2020/21 Opinion Unqualified |  I noted that UWEC is one of the entities affected by the Government rationalisation policy on mergers anticipated to be concluded in 2023. By the time of reporting, discussions on transitional arrangements were ongoing. However, I was not provided with the transitional plans for a smooth merger. Delayed decision making leads to costly mergers and uncertainity amonst the stakeholders.  Five (5) procurements with a total value of UGX.3.239Bn were not implemented as planned due to insufficient release of funds from GOU and the adverse effects of the covid-19 pandemic resulting into delayed service delivery.  Although some electronic equipment and motor vehicles at cost of UGX.331Mn had been fully depreciated as per the previous financial year, they were still in use. Under the circumstances, the benefits accruing from them are not matched with their usage/expenditure. Management explained that the revaluation of assets had started, but COVID – 19 effects hindered the process. | +| 10 | Ministry of Tourism, Wildlife and Antiquities. 2020/21. Opinion Unqualified |  The entity budgeted to receive UGX.27.408Bn out of which UGX.22.934Bn was warranted, resulting into a shortfall of UGX.4.474Bn which is 16.3% of the budget. This affected implementation of planned activities. I further noted that the Ministry did not seek a revision of its budget and work plan, as provided for by Section 17 (3) of the PFMA 2015, following the revenue shortfall.  Out of the approved staffing level of 334, the Ministry has only 201 positions filled (60.2%) leaving a staffing gap of 139 positions (39.8%). Included in the unfilled positions are key ones (1 Director, 3 Asst. Commissioners and a Principal). Inadequate staffing results into heavy workloads on existing staff and affects the Ministry’s performance which in turn affects the overall level of service delivery.  The Ministry of Tourism, Wildlife and Antiquities entered into an MOU with a foreign company on 5th February 2020 to enable Uganda host the 2020 edition of MTV Africa Music Awards (MAMA) on 13th June 2020. The agreed sponsorship fee was USD.3,500,000 (equivalent to UGX 12.6Bn). The first installment of UGX.10.4Bn was paid on 12th March 2020. However due to the COVID 19 pandemic which came about in March 2020, staging of the event could not take place as earlier planned. On 9th November 2020 an addendum was signed between MTWA and the company to modify the function so that it is held virtually on 20th February 2021. Thereafter a second installment of UGX.2.596Bn was paid on 19th January 2021. However, due to a heightened electoral season, the grand finale did not take place. Consequently, the organizers announced cancellation of the function on 14th June 2021. | + + +240 + +--- + +||  Attention is drawn to Note 19 of the financial statements in which management made a provision to reduce the receivable amount from UGX.13Bn to UGX.3.2Bn given the preliminary findings by a company engaged to assess recoverability of the funds. | +|---|---| +| 11 | Uganda Tourism Board. 2020/21 Opinion Unqualified |  Contrary to Section 45 (3) of the Public Finance and Management Act, 2015, the Board failed to implement procurements worth UGX.2.79Bn which had been indicated in their procurement plan. Unimplemented procurements signify unimplemented activities and therefore delayed service delivery.  Contrary to Section 26 (4) of the PPDA 2003, procurements for stationery worth UGX.1.67Bn were concluded without carrying out market assessments. As a result, I could not establish how the estimated unit cost for these procurements was arrived at, thus implying that the procurements may have been awarded at exorbitant costs.  A review of the Board's establishment structure revealed that 38 posts out of the approved 85 remained vacant during the year, indicating a 45% understaffing level. Most notable among the vacant positions are key staffs like the Director Marketing, Director Quality Assurance, Director Finance and planning, and Manager Human Resource. Inadequate staffing levels not only deprive the entity of the skills required to enhance service delivery but also frustrates segregation of duty. | +|| WATER AND ENVIRONMENT SECTOR |  | +| 1 | Kampala Sanitation Program (KSP) Closure 2020/21 Opinion Unqualified |  Contingent Liabilities  A contractor’s global claim of Euros 25,043,073 arising from the contractual obligation of extension of time and causation of delays in project completion which was approved;  A compensation claim of UGX220 Million which is now before the Land Division of the High Court Civil suit No.109 of 2019 and thus the outcome of the compensation claim will be determined by court;  A compensation of UGX1.15 Billion which is now before the Land Division of the High Court HCCS NO. 518 of 2016 and thus the outcome of the compensation claim will be determined by court. | +| 2. | National Forestry Authority 2020/21 Opinion Unqualified |  The Authority prepared and had its strategic plan for the period 2020/2021 to 2024/2025 approved by the Board, however there was no certification from NPA.  Out of the approved NTR estimate of UGX 12.966 billion, the Authority collected UGX 10.372 billion representing a performance of 80% of the target. Out of the approved GoU budget of UGX. 42.582 billion, UGX. 32.074 billion (75.3%) was warranted, resulting in a shortfall of UGX. 10.508 billion (24.7%). Of the total receipts for the financial year of UGX 32.074 billion, only UGX 31.304 billion was spent by the entity representing an absorption level of 97.6%.  Out of the six (06) outputs with a total of twenty (20) activities and budget of UGX 42.12 billion, five (5) outputs with a total of fifteen (15) activities were fully quantified while one (1) output with a total of five (05) activities was not quantified at all.  Of the 5 outputs with 15 activities worth UGX.31.68 billion assessed for budget implementation, 01 activity (6.7%) was fully implemented, 13 activities (86.6%) were partially implemented, while 1 activity (6.7%) | + + +241 + +--- + +|| was not implemented at all.  I noted a significant receivables balance of UGX 8,268,255,693 at close of the financial year which impacts the liquidity capacity of the Authority.  There were irregularities in forest land utilization with four (4) unlicensed Central Forest Reserves (one in Kajansi and three in Lutoboka) and 24 non-complying developers in CFRs.  I noted irregularities in forest land utilization, inactive private tree planters in CFRs, non-operationalisation of the Tree Fund, Out-dated Forest Reserve Management Plans and major encroachment on CFRs. | +|---|---| +| 3 | Uganda National Meteorological Authority (UNMA). 2020/21 Opinion Unqualified |  The Authority collected NTR of UGX 317,259,177 out of the estimated UGX 1,259,080,696 representing a performance of 25.2%.  Out of the budgeted revenue of UGX 26,675,604,875, only UGX 19,025,934,156 was realized representing performance level of 71.3% of the target. Out of UGX 19,025,934,156 warranted, UGX 17,970,307,440 was absorbed by the authority leaving unspent balance of UGX 1,295,279,000 representing 94.5% absorption level.  The Authority received off-budget financing of UGX. 668,042,740  Five (5) outputs with a total of twenty-eight (28) activities and expenditure worth UGX 5,094,648,000 were fully quantified, while Three (3) outputs with a total of thirty-seven (37) activities and expenditure worth UGX 2,682,683,000 were insufficiently quantified.  Of the 5 outputs with 28 fully quantified activities, 7 activities (25%) were fully implemented, 10 activities (35.7%) were partially implemented, while 11 activities (39.3%) remained unimplemented.  There was delayed completion of the Radars in Mwizi-Rwampara and Lira due to the restrictions of Covid 19 lockdown.  The average functionality of all the weather stations is at 89% instead of the desired 100% resulting from the non-functional meteorological equipment. | +| 4 | Investment plan preparation grant for the strategic plan for climate resilience. 2020/21 Opinion Unqualified |  Two out of the three (3) sub objectives of the Project, were fully achieved while the third objective of building capacity of both national and subnational stakeholders in the management of climate change disasters was partially achieved.  Out of the approved grant of USD 1,500,000, only USD 1,391,587 has so far been disbursed (92.77%) leaving an undisbursed amount of USD 108,413 (7.23%). Out of the Project available funds of USD 290,641.50 (UGX 1,063,396,206), USD 160,807.11 (55.33%) was spent leaving an unspent balance of USD 129,834.39 (44.67).  All the nine (09) activities with a total budget of USD 290,641.50 (UGX 1,063,396,206) planned for implementation in the financial year 2020/2021 were properly quantified.  Out of nine (09) planned activities for implementation, six (06) activities (66.67%) were fully implemented; one (01) activity (11.11%) was partially implemented while two (02) activities (22.22%) were not implemented at all.  Payables relating to 6%WHT had accumulated to UGX 36,025,563 from UGX 24,878,054 reported in the prior year financial statements.  Statutory deductions amounting to UGX 11,147,509 relating to 6%WHT | + + +242 + +--- + +|| were not remitted to the Uganda Revenue Authority. | +|---|---| +| 5 | Integrated Water Management and Development Project- NWSC 2020/21 Opinion Unqualified |  No material findings to report. | +| 6 | National Water and Sewerage Corporation- Kampala Water Lake Victoria Water and Sanitation (KW-LV WATSAN I) PROJECT 2020/21 Opinion Unqualified |  I noted that NWSC delayed to pay the Contractor and as a result, the contractor claimed for interest of Euros 141,968 approximately UGX.610 Million. I also noted changes in the scope of the contract which resulted into a contract variation of Euros 612,000 (approximately UGX 1.4 Billion). | +| 7 | NATIONAL ENVIRONMENT MANAGEMENT AUTHORITY Opinion Unqualified |  The Authority collected NTR of UGX.8,084,594,955 (50.2%) against the estimated UGX.16,088,769,336 as projected by Ministry of MOFPED. However, there were no NTR estimates indicated in the statement of appropriation.  Out of the budgeted GoU revenue of UGX.25,555,655,669 by the Authority, only UGX 18,809,799,829 was warranted representing performance of 73.6% of the target.  I noted that out of the UGX.18,809,799,829 released to the Authority, only UGX.18,494,875,926 was spent representing an absorption level of 98.3%. Subsequently, the unspent funds amounting to UGX.314,923,903 were swept back to the Consolidated Fund.  The Authority received off-budget funding to the tune of UGX.1,963,413,072 and USD 2,805,651,484 which were not appropriated as required by the law.  9 (69%) of the 13 activities (against which UGX 9,707,487,720 was released) were fully implemented and 4 (31%) of the activities were partially implemented.  Contrary to the directive from the Ministry of Finance, during the financial year a total of UGX 441,857,268 was deposited directly into the National Environment Fund (NEF) account as NTR and this amount was not remitted to the consolidated fund.  The Authority does not have any legal provision to regulate the work of the Environment Police. In addition, the funds to facilitate the work of the force were not budgeted for in the annual work plan and budget. Financial records indicate that only UGX.21,280,000 was spent on the force during the year.  I noted that all the wetlands in Uganda are not gazetted, contrary to Section 2 of the National Environment Act 2019, although they are indicated on the maps. In addition, contrary to Instrument 2 of the Nation Environment Act, 2019 (Commencement) that empowers the Authority to enforce wetland gazetting, the Authority went ahead to collect NTR from wetland user permits amounting to UGX 8,800,000 | + + +243 + +--- + +|| during the financial year 2020/21. | +|---|---| +| 8 | Strategic Towns Water Supply and Sanitation Project. 2020/21 Opinion Unqualified |  Out of the total budget of UGX 40 Bn for the financial year, only UGX 19.24 Bn was received representing a performance level of 48%. Out of the amount received, UGX.18.88 Bn was spent during the year representing an absorption level of 98.13%.  I noted that of the 12 quantified activities worth UGX.35.63Bn assessed, 8 activities representing 66.7% were partially implemented, while 4 activities representing 33.3% were not implemented at all.  I noted slow progress of work for Construction of Kayunga – Busaana water supply system due to failure to access imported materials as a result of the COIVD 19 pandemic. | +| 9 | Irrigation for Climate Resilience Project 2020/21 Opinion Unqualified |  Out of the budgeted revenue of USD 13,641,026, only USD 6,305,937 (46.2%) was realized representing performance level of 46.2% of the target. Out of USD 6,305,917, disbursed, there was no absorption by the project as at close of the financial year.  Twenty-two (22) outputs with a total of thirty three (33) activities and budget of USD 13,641,026 were fully quantified as required. Out of 22 outputs with a total of 33 activities, only 1 activity (3%) was fully achieved, 27 (82%) were partially achieved and 5 activities (15%) were not implemented at all. | +| 10 | Enhancing Resilience of Communities to Climate Change (EURECCCA) 2020/21 Opinion Unqualified |  At the end of the initial project completion date of 30th April 2021, all the four project components had been partially achieved and thus, the project completion date was extended to 30th April 2022.  Out of the approved budget of UGX 17,768,973,403 (USD 4,670,392), UGX 7,799,443,700 (USD 2,050,000) was realized representing a performance of 43.9%. Out of the total available funds of UGX.8,690,311/616, a sum of UGX.8.541,200,193 was spent representing 98.3% absorption.  All the 15 planned outputs with a total of 42 activities were fully quantified to enable assessment of performance and enhance accountability. Out of the 42 planned activities 19 (45.2%) were fully implemented, 22 (52.4%) were partially implemented and 1(2.4%) was not implemented at all. | +| 11 | Nyabyeya Forestry College (NFC) Opinion Unqualified |  The College does not have an approved strategic plan for the period 2021-202 and lacks an enabling law that stipulates its mandate. There is a risk that activities implemented during the financial year 2020/2021 were not aligned to the NDP-III, which negatively affects the achievement of the National Development objectives  Out of the total receipts of UGX 2,753,839,117 for the financial year, UGX 2,911,962,444 was spent resulting into an over expenditure of UGX 158,123,327 representing an absorption level of 106%. The over absorption of funds was due to the opening balances for civil works executed even during the Covid-19 lockdown.  I noted a decline in students’ enrolment from 431 students in 2016/17 to 256 students in 2020/21. Continued fall in enrolment may result in the College’s failure to achieve its mandate of producing technical human resource in forestry and related natural resources through training. | +| 12 | Farm Income Enhancement and Forestry Conservation Project Phase II (FIEFOC |  The Project has not fully achieved the three project subcomponents of Agriculture Infrastructure Development, Agribusiness Development and | + + +244 + +--- + +|| II). 2020/21 Opinion Unqualified | Integrated Natural resources Management which had been set to be achieved by 30/06/2021.  The project had an approved annual budget of UGX 111,249,503,000 out of which UGX 63,414,586,000 (57%) was received leading to a shortfall of UGX 47,834,917,000.  Out of the total funds received of UGX 63,414,586,000, a total of UGX 63,250,130,000 was spent, representing an absorption level of only 99.7%.  Out of the Nine (9) outputs with a total of twenty-nine (29) activities and expenditure worth UGX 51,914,542,000, six outputs with a total of twenty six (26) activities were fully quantified, while three outputs with a total of three (3) activities were not quantified at all.  Of the 6 outputs with 26 fully quantified activities, 18 activities (70%) were fully implemented, 4 activities (15%) were partially implemented while 4 activities (15%) were not implemented.  I noted that the Project extended loans to beneficiaries to the tune of UGX.2,315,145,994. However, out of the amounts due for collection of UGX.1,364,364,026, only UGX. 45,062,600 (3.3%) had been recovered by 30th June 2021, leaving a balance of UGX 1,319,301,426 outstanding.  There is slow progress of works at Wadelai irrigation scheme with major outstanding works, such as; main canal not completed; Embankment not completed with only 0.5km out of 2.3km fully worked on; 3 secondary canals half-done leaving 2 not yet started on; 7 out of 8 tertiary canals for secondary canal 1 done and none for the other 4 secondary canals done; Farm land clearing not done; and Eco system scheme toilets not done. | +|---|---|---| +| 13 | Integrated Water Management and Development Project (IWMDP) 2020/21 Opinion Unqualified |  Out of the approved budget of UGX 70,327,857,900, UGX.52,949,933,856 (75.3%) was availed for spending leading to a shortfall of UGX.17,377,924,044. Out of the total funds available for the financial year of UGX.52,949,933,856, UGX.20,830,393,625 was spent representing an absorption level of only 39.3%.  Fifteen (15) outputs with a total of twenty-seven (27) activities and expenditure worth UGX.14,957,387,000 were fully quantified, while one (1) outputs with one (1) activity was inadequately quantified.  Of the 15 outputs with 27 fully quantified activities, 2 out puts (13%) were fully implemented, 6 out puts (40%) were partially implemented while 7 out puts (47%) were not implemented.  Review of the project appraisal document, the monitoring and results framework analysis report of October 2021 together with annual progress reports revealed that the rate of achievement of project targets is slow as a result of procurement delays. | +| 14 | Northern Uganda Resilience Initiative Project 2020/21 Opinion Unqualified |  Out of the total rolled over funds of UGX.1,520,434,217 from the previous financial year, the project spent UGX.1,055,516,512 (69%) leaving an unspent balance of UGX.464,917,705 (31%).  Out of the 17 planned activities for the financial year 2020/2021, only 2 activities were quantified as required leaving 15 activities unquantified.  Of the 17 activities planned; 5 (29%) were fully implemented, 6 (35%) were partially implemented, 1 activity (6%) was not implemented while 5 activities representing 29% were not reported on in the annual performance report. | + + +245 + +--- + +| 15 | Third National Communication (TNC) 2020/21 Opinion Unqualified |  Out of an approved budget of USD.173,474, USD.83,000 was disbursed representing a performance level of 47.8% of the target.  Out of the total available funds for the year of US$ 92,304.34, the project spent US$ 60,493.32 representing an absorption level of 65.6%. As a result some activities were not implemented.  All the 16 outputs with a total budget of USD.173,474 and actual expenditure of 60,555.97 were not quantified at all. | +|---|---|---| +| 16 | Water Supply and Sanitation on Refugee Hosting Communities in Northern Uganda Funded By (Kfw) Project KfW 2020/21 Opinion Unqualified |  Out of the Project budget of UGX. 20,868,100,000, a sum of UGX 9,204,079,893 was disbursed by the donor, representing a performance level of 44.1% of the target.  Out of the total receipts of UGX 9,204,079,893 from KfW, UGX 8,523,847,919 (92.6%) was spent by the Project, resulting into an unspent balance of UGX 680,231,973 (7.4%).  Both projects outputs with 10 planned activities were fully quantified and; 1 activity (10%) was fully achieved, 8 activities (80%) were partially achieved, while 1 activity (10%) remained unimplemented. | +| 17 | Uganda National Redd - Plus Support Project Opinion Unqualified |  The project had 2 sub components which had not been fully achieved.  The project had an approved revenue budget of USD.644,500 for the year under review but only USD.250,000 (38.8%) was disbursed.  Out of the total funds available for spending of USD.475,919.18, only USD.249,763.51 (52.18%) was spent leaving an unspent balance of $ 226,155.67 (48.82%). As a result certain activities were not implemented.  All the 10 outputs comprising 57 activities with a total budget of USD.2,210,799 were properly quantified.  The draft progress report was not detailed to enable assessment of implementation of activities against planned. | +| 18 | Ministry of Water, and Environment (MoWE) 2020/21 Opinion Unqualified |  I noted that the entity had not prepared a specific strategic plan as required by the NDP III and was instead utilizing an Investment plan (2030).  I noted that out of the estimated NTR collection of UGX 8.97 billion, only UGX1.39 Bn was realized, representing a performance of 15.5%.  Out of the approved budget of UGX. 457.52 Bn, a sum of UGX. 452.01 Bn (98.8%) was released, resulting in a shortfall of UGX. 5.52 Bn (1.2%) of the budget.  Out of the total receipts for the financial year of 452.01 Bn, a sum of UGX. 453.24 Bn was spent by the entity resulting in an unspent balance of UGX 5.58 Bn, representing an absorption level of 98.7%.  As a result of the under absorption, I noted that of the 72 quantified activities worth UGX.388.26Bn assessed; 15 activities representing 27.3% were fully implemented, 38 activities representing 69.1% were partially implemented,2 activities representing 3.6% were not implemented .I further noted that there was delayed submission of performance reports.  The Ministry incurred penal interest of UGX.103,632,504 (USD.32,218) arising from delayed payment to the contractor.  I noted that the Ministry’s Payables amount significantly increased from UGX.64.3 billion in the previous year to UGX.114.5 billion in the current | + + +246 + +--- + +|| year due to the increasing number of multi-year projects in the ministry.  I noted that the Ministry’s Receivables amount significantly increased from UGX.1.3 million in the previous year to UGX.22.4 billion in the current year. This was attributed to prepayments made to contractors (UGX.19.3 billion) and the outstanding letters of credit (UGX.3.1 billion) for on-going projects in the Ministry.  From my audit and field inspection of facilities, regional centres and Umbrella Organisations, I observed several weaknesses in service delivery such as; untitled land for piped water systems and schemes; delayed execution of works; outstanding revenue arrears; unmetered water schemes, Lack and faulty bulk meters; among others. | +|---|---| +| 19 | Support to Priority Irrigation Investments in Uganda Grant 2020/21 Opinion Unqualified |  All the budgeted revenue from Government of USD.949,422.62 was realised representing a performance of 100% of the target.  Out of the donar funds of USD.949,422.62 received, only USD 117,475.04 was absorbed by the project representing an absorption level of 12.4%. The Under absorption was attributed to Covid-19 effects.  All the Six (6) outputs with a total of six (6) activities and expenditure of USD.117,475.04 were fully quantified.  Four (4) out of six (6) outputs had not been achieved despite the fact that the initial Project completion period had been 30thJune 2020. This was later extended to 30/06/2021 and another extension to 31/3/2022. | +| 20 | The Adapting to Climate Change In Lake Victoria Basin. 2020/21 Opinion Unqualified |  Out of the budgeted revenue of USD.249,377, only USD.194,645.56 was received representing performance level of 78% of the target.  Out of the total disbursements for the period of USD.273,590.56 (equivalent UGX.998,518,150), only USD.38,215.11 (UGX.141,282,999) was absorbed by the project representing an absorption level of 14%.  All the three (3) outputs with a total of eleven (11) activities and budget of USD.249,377 were fully quantified.  Out of the 3 quantified outputs with 11 activities, 5 activities (45.5%) were fully achieved, 2 activities (18.2%) were partially achieved and 4 activities (36.3%) were not implemented at all. | +| 21 | South Western Cluster Water and Sanitation Project – NWSC 2020/21 Opinion Unqualified |  No material issues to report on | +| 22 | National Water and Sewerage Corporation (NWSC) 2020/21 Opinion Unqualified |  The financial statements under Note 28 include a Financial Asset in form of Trade Receivables. Management has estimated the fair value of the net financial asset receivable to be UGX 133.7 billion as at 30th June 2021 of which, the net amount of receivables UGX38.2bn is owed from the government and its MDA (Ministries; Departments and Agencies).  I noted that NWSC leased vehicles, offices and land under operating lease contracts whose terms were more than twelve (12) months, which were classified as; Right of Use asset amortization (UGX 87.8m) Right of Use Lease Assets (UGX 12.4bn) and Obligations due to Right of Use Leased Assets (UGX 8.4bn). Liabilities were not amortised annually using effective interest method in order to arrive at the amortised costs for | + + +247 + +--- + +|| profit and loss recognition although the necessary disclosures were made in the financial statements.  I noted that freehold land (UGX. 176.5bn) and leasehold land (UGX. 4bn) included some land that had expired lease periods, some titles were not yet transferred in the names of NWSC, and Katosi, which is a long term investment constructed on a short term leased land of ten (10) years.  Some on-going water projects were significantly delayed by litigations and substantial amounts that are required to compensate the interested parties in note 24 of the financial statements. | +|---|---| +| 23 | Multinational Lakes Edward and Albert Integrated Fisheries and Water Resources Management Project (LEAF) II 2020/21 Opinion Unqualified |  A total of six (6) strategic outputs (50%) were fully achieved, while 6 outputs were partially achieved and still on-going (50%).  Out of the approved budgeted revenue of USD 1,887,374, USD 603,588.93 was released representing performance of 32% of the target.  The project had a total available balance of USD 2,767,452.2, out of which USD 2,754,945.85 (99.5%) was spent leading to an unspent balance of only USD 12,506.35.  All the 10 planned outputs with 39 activities and a total budget of USD 3,119,412.9 were properly quantified to enable measurement of performance.  Out of the 39 planned activities under the 3 Project components, 19 (48.7%) were fully implemented, 10 (25.6 %) were partially implemented and 10 (25.6%) were not implemented at all.  I noted delays in construction of infrastructure projects resulting from the effects of the Covid pandemic and effects of the rising water level of Lakes Albert and Edward and inadequate GoU funding. The projects affected included the construction of the surveillance station, Kitebere Landing Site, Mbegu landing site, fish processing facility at Dei Landing site, and supply of a fisheries research vessel. | +|| ENERGY SECTOR |  | +| 1 | Electricity Regulatory Authority (ERA) 2020/21 Opinion Unqualified |  I noted that out of the budgeted revenue of UGX 28.57Bn, a sum of UGX. 27.70Bn was realized representing a performance of 98%.  Out of the revenue realized of UGX. 27.70Bn for the financial year, UGX 24.55Bn was spent on recurrent expenditure and UGX.2.25Bn on capital expenditure, resulting into an unspent balance of UGX.0.9Bn, representing absorption level of 97%.  Out of the forty-six (46) key activities, sixteen (16) (35%) activities had been fully achieved, and thirty (30) (65%) were partially achieved.  Included in the receivables figure of UGX.7,566,003,960, under Note 7 of the Financial Statements is a sum of UGX.724, 185,509, relating to license fees and permit fees which have been outstanding for more than 90 days instead of the recommended 14 days.  I noted that the target of reduction of the end user tariff was not achieved across customers’ categories, with a weighted average of UGX.485.7 per Kwh. The end user off –peak tariff for extra- large industrial customers was achieved at UGX.223.7.  I noted that out of the total staff establishment of 92 positions, only 67 (73%) positions had been filled leaving a balance of 25 (27%) positions vacant. | + + +248 + +--- + +||  I noted Non-compliance to Quality-of-Service Standards (QoS) by Distribution Licensees, with an average of 45% compliance. Non- compliance with QoS denies customers quality and reliable electricity supply. | +|---|---| +| 2 | Energy for Rural Transformation III PSFU Project (ERT III). 2020/21 Opinion Unqualified |  Out of the total Receipts for the financial year of USD. 636,993, only USD.382,224 was spent by the Project resulting in an unspent balance of USD. 254,769 representing absorption level of 60% for the year. As a result, activities such as training of certified wiremen was partially implemented.  I noted that a consortium of Ruwenzori Power Ltd (RWP) and East African Power Ltd (EAPL) had been contracted to undertake the development of two Micro Hydro schemes in Rwenzori Sub Region. However, by the time of audit (November, 2021) the development of the 2 Micro Hydro schemes had not commenced.  I noted that out of the target of 850 certified wiremen, 367 wiremen were certified during the period, bringing the total number of total certified wiremen under the ERT-PSFU to 747 (88%), by June 30, 2021. | +| 3 | Uganda Rural Electricity Access Project (UREAP). 2020/21 Opinion Unqualified |  Out of the Budget of UGX.157.4Bn, only UGX.106Bn was disbursed representing a shortfall of 51,339,828,177, which is 32.6% of the Budget. I further noted that out of the total receipts for the financial year of UGX. 106.1Bn, UGX.105.5Bn was utilized on installation of Medium Voltage Networks and Last Mile consumer connections, leaving an unutilized balance of UGX.564,461,546 representing an absorption level of 99.5%.  As 30th June 2021, the Bank had disbursed USD.44.83Million and Euros 5.89Million against the Loan credit facility of USD.100 Million and Grant of Euros 11.205 Million representing 45% and 53%, respectively.  I noted delays in construction works under procurement of plants, design, supply and installation of medium voltage networks and last mile consumer connections. Notably, under Lots 6, Medium Voltage stringing, and Low Voltage (LV) stringing had not yet commenced. Under Lot 7 Medium Voltage Pole erection was at 31% and stringing at 47%.  Out of 1,686 Project Affected Persons (PAPs), with an approved compensation amount of UGX.1,240,502,500, only 1,209 PAPs have been paid an amount of UGX.863,758,500, leaving an outstanding amount of UGX.376,744,000 relating to 477 PAPs. | +| 4 | Lira-Gulu-Agago 132KV transmission project 2020/21 Opinion Unqualified |  Out of the total Receipts for the financial Year of USD. 2,304,191, only USD.519,117 was utilized by the Project, resulting in an unspent balance of USD.1,785,074, representing an absorption rate of only 22.5%. As a result, activities such as compensation of Project Affected Persons and supervision of EPC works were not implemented.  I noted that the contract for 132kv Double Circuit Transmission Lines and construction of Substations were signed on 12th April and 23rd March, 2021 respectively, however the major Project works such as Survey, Design, Supply and Installations works had not yet commenced. | +| 5 | Energy for Rural Transformation III (ERT III) –REA Project. 2020/21 Opinion Unqualified |  Out of the total receipts for the financial year of UGX.139.5Bn, only UGX.98.3Bn was utilized on installation of Medium Voltage Networks and Last Mile consumer connections, leaving an unutilized balance of UGX 41.2Bn representing an absorption level of 70%. As a result, activities such as Grid extensions, Line connections and Grid Intensification schemes under various Lines were partially implemented.  Out of the total credit amount of USD.116.1 Million, only USD.73.7 Million | + + +249 + +--- + +||| had been disbursed by the Bank under ERT- REA representing 64% of the Total credit.  The overall Implementation of the Grid extension and associated connections is behind schedule especially under Lines 20-21 which are at 17% and 2% respectively. Progress of work under Grid Intensification, UMEME Batch 1 and 2 were at 55% and 20% respectively.  Out of 34,535 Project Affected Persons (PAPs), with an approved compensation amount of UGX. 22.6Bn, only 22,180 PAPs have been compensated with an amount of UGX.14.2Bn, leaving an outstanding amount of 8.3Bn relating to 12,355 PAPs. | +|---|---|---| +| 6 | Hoima Kafu Transmission Line Project - Kafu Interconnection Project. 2020/21 Opinion Unqualified |  Out of the total receipts for the financial year, of USD.1,903,946, only USD.41,960 was spent by the Project, resulting in an unspent balance of USD.1,861,986, representing absorption level of only 2.2%. As a result, activities such as compensation of Project Affected Persons were not implemented.  I noted that out of the 508 Project Affected Persons along the final selected route of the Project. 470 disclosures had been made representing 95%. 347(68%) agreements were obtained from disclosures, out of which 125 (25%) disputes arose, and payments to PAPs as at 30th June 2020 was 330 (65%). | +| 7 | Kampala Metropolitan Transmission System Improvement Project. 2020/21 Opinion Unqualified |  Out of the total receipts for the financial year of USD.9,259,009 for the financial year, only USD.2,465,150 was spent by the Project, leaving an unspent balance of USD.6,793,859, representing absorption of rate of 26.6%. As a result, I noted that Key activities such as consulting Services for Procurement of the EPC contractor was not implemented, while compensation of projected affected persons was partially implemented.  I noted that out of 130 PAPs, 109 (83%) were compensated. Disclosures made were 120 (91%), agreements obtained from disclosures were 117 (89%), and PAPs not yet compensated were 22 (16.7%). | +| 8 | Petroleum Authority of Uganda (PAU). 2020/21 Opinion Unqualified |  I noted that the Authority budgeted to receive UGX.63.61Bn out of which only UGX.52 Bn was warranted, resulting in a shortfall of UGX11.6Bn, which is 18% of the budget.  Out of the total Receipts for the financial year of UGX.52.0Bn, a sum of UGX.48.5Bn was spent by the entity resulting in an unspent balance of UGX.3.5Bn representing an absorption level of 93%. As a result, activities such as development and Implementation of the Grievance management framework and environment management system for the oil and gas sector were not implemented.  I noted that of the planned output, three (3) outputs with a total of nine (9) activities and expenditure worth UGX.9.05Bn were fully quantified. Five (5) outputs with a total of sixty-seven (67) activities and expenditure worth UGX23.67Bn, was insufficiently quantified. Four (4) outputs with a total of six (6) activities and expenditure worth UGX 1.09Bn were not quantified at all.  I noted that out of the total staff establishment of 283, only 189 (67%) positions had been filled, leaving 94 (33%) positions vacant.  I noted that the Authority had not developed and documented a Business Continuity Plan and not ensured disaster recovery planning for continuous provision of IT services in case of a disaster.  I noted that the Authority lacked an environmental regulatory framework necessary for regulating the environmental aspects in the oil and gas | + + +250 + +--- + +|| sector. These include; the air quality standards, noise and vibration and the chemicals management standards. | +|---|---| +| 9 | Grid Expansion and Reinforcement Project (GERP)-UETCL. 2020/21 Opinion Unqualified |  Out of the total Receipts for the financial year of USD.35,395,297, only USD.6,139,307 was spent by the project leaving an unspent balance of USD.29,255,991, representing absorption of rate of 17.3%. As a result, activities such as construction of Transmission Lines and compensation of Project affected Persons were partially implemented.  Out of the total amount of IDA credit for the Project of USD.100,000,000 only USD.29,457,000(29.4%) was disbursed, and out of USD.27.3M GoU counterpart funding, 7,945,423 (28.9%) was disbursed by the end of the financial Year.  Out of the annual target of 59% progress, under Lot 1; -Construction of 132kv Double Circuit Transmission Lines, only 39% was achieved. Out of a target of 47% progress under Lot 2- construction of Substations, only 20% was achieved.  I noted that out of 2,340 identified PAPs under Gulu-Nebbi-Arua Section, only 1,719 (73%) had been compensated. Out of 994 PAPs under Kole- Gulu Section 985 (99%) were compensated, leaving a total of 630 PAPs not compensated by the time of audit. In addition to the 3,334 PAPs with a total cash resettlement of USD. 1,463,955.41, USD.1,241,137 was paid to 2,704 PAPs resulting into an outstanding obligation of USD.222,818 relating to 630 PAPs | +| 10 | Islamic Development Bank (IDB) III Grid Rural Electrification Project. 2020/21 Opinion Unqualified |  Out of the total Loan credit of USD.70,730,000 Million by the Islamic Development Bank, USD 69,764,722.91 was disbursed representing a performance of 99% of the total Loan facility.  I noted that as at 30th June 2021, the overall Project progress was at 99% completion, for all the 6 lots, involving construction of Rural Electrification Schemes in various parts of Uganda. | +| 11 | Uganda Petroleum Fund (UPF). Opinion Unqualified |  I noted that for the year under review, the balance in the Petroleum Fund increased from UGX.87.79Bn as at 30th June 2020 to UGX. 228.79Bn as at 30th June 2021. However, there was no appropriation of UGX. UGX.87.79Bn by during the Financial Year 2020/21 to the Consolidated Fund and/or the Petroleum Revenue Investment Reserve for budget support and investment activities, respectively. | +| 12 | Uganda Electricity Generation Company Limited (UEGCL) 2020/21 Opinion Unqualified |  Out of the budgeted revenue of UGX.173,191,277,000, for the year 2020/21, UGX.169,743,586,000 was realized representing performance of 98% of the target.  Out of the total receipts for the financial year of UGX.169,743,586,000, UGX.115,066,984,000 was spent by the entity resulting in an unspent balance of UGX.54,676,622,000 representing an absorption level of 67.7 %.  I sampled 92 interventions/critical activities implemented under the 11 departments and noted that out of the ninety two (92) key interventions, twenty nine (29) (32%) critical tasks had been fully achieved, sixty one (61) (66%) were partially achieved while two(2) (2%) were not achieved.  I noted long outstanding Payables of UGX 814,000,000 relating to penal interest charged by URA, resulting from late payment of WHT on consultancy services for the period 2001-2009.  I noted accumulated interest of UGX 284,942,245,000, on Loan repayment | + + +251 + +--- + +|| for Karuma Hydro Power Plant was outstanding as at 30th June, 2021.  There has been delayed commissioning of Karuma Dam, whose completion date was extended to 15th June 2022, resulting in a delay of 3 years and 6 months from the initial planned completion date.  Instances of non-conformances (NC) were noted in relation to electrical, mechanical and civil works components that required rectification before commissioning of the Karuma Dam.  There has been continuous extension of the Isimba Dam Defects Liability Period (DLP), due to the various snags and defects that were detected after the Dam\`s commissioning on March 2019.  I noted delayed commencement of the Construction of Muzizi Hydro Power Project whose credit facility agreement with Agence Francaise De Development (AFD) and KFW was signed on 9th December 2016 and 25th November, 2016, respectively, to finance the construction of Muzizi Hydro Power Project with expected completion date of December 2023.  I noted delayed Compensation of Project Affected Persons (PAPs) for Muzizi HPP whereby a total of UGX.1,769,227,282 (36.41%) of the total compensation value UGX.4,858,711,140 has been paid to PAPs.  I also note a failure to undertake remedial works on the plants being handled under the concession between GOU and ESKOM with less than 50% of the remedial works that have been carried out currently, with a few months to end of the concession. | +|---|---| +| 13 | Strengthening the Management of Oil and Gas Programme (SMOGP) 2020/21 Opinion Unqualified |  Out of the total receipts for the financial year of USD 790,580.38, only USD. 239,221.92 was spent by the Programme resulting in an unspent balance of USD 551,358.46, representing an absorption level of 30.2%. Under absorption of released funds results in non-implementation of planned activities.  I noted that the Planned Programme activities such as Development of Reservoir Modelling and Simulation, Review of the Tax Laws and the Model Production Sharing Agreement Training course for Component Managers and Program Secretariat among others were not implemented. There is a risk of failure to achieve intended Programme objectives and service delivery due to delayed implementation of activities. | +| 14 | Mutundwe-Entebbe 132kv Double Circuit Transimssion Line Project - UETCL- June 2020 Opinion Unqualified |  I noted delays in transfer of titles, caused by the slow land titling process. Out of the expected 463 land titles, UETCL received 264, and 70 were handed over to the RAP Consultant.  Only 843 PAPs out of 1,062 had been compensated leaving 219 PAPs (20.62%) outstanding.   Weakness were noted in the performance of the resettlement action plan consultant such as inclusion of forest reserves and wetlands as part of compensation to private individuals anddivergent surcey and valuation report for the same property. | +| 15 | Uganda Electricity Distribution Company- UEDCL 2020/21 Opinion |  Out of the total receipts for the financial year of UGX. 64.97Bn, a sum of UGX 63.38Bn was spent by the entity resulting in an unspent balance of UGX 1.52Bn representing absorption level of 97.6 %.  I noted un-reconciled receivables amount of UGX.70.1Bn resulting from the withheld funds by UMEME from the Escrow Account in regard to unpaid government electricity bills by MDAs. | + + +252 + +--- + +|| Unqualified |  I noted power evacuation liability of UGX.15.29Bn, payable to UETCL. This was due to power losses attributed to absence of transmission lines to evacuate electricity from PA Technical, Siti 1 and Arpe Power Plants, as a result of wheeling power over a lower capacity and weaker distribution lines operated by UEDCL.  The long outstanding receivable resulting from payment of former UEB pension costs of UGX.38.6Bn by UEDCL which has never been paid back to the Company by MoFPED.  Failed to meet its targeted annual connection 37,293 of customers whereby only 6,309 (16.9%) connections were made.  I noted that in the FY 2020/21, the approved energy loss target by the Electricity Regulatory Authority was at 20.1%. I however noted from the Grid Energy Reports submitted to ERA, that the Company was unable to meet its target energy losses and most of its service territories registered an average of 32.7% power losses.  I noted non -compliance by the WENRECO to the terms of the Operation and Maintenance Agreement, such as provision of semi-annual reports on status of the assets, safe storage of UEDCL connection materials, participation in the physical network inspection, submission of asset modifications register among others.  The 62,944 poles leased to UMEME by UEDCL were damaged and required replacement which was not done contrary to the provisions of the Lease Agreement. | +|---|---|---| +| 16 | Uganda National Oil Company 2020/21 Opinion Unqualified |  Out of the total receipts for the financial year of UGX.34.4bn only UGX 26.6bn was spent by the company, resulting in an unspent balance of UGX 7.8bn. This represents an absorption level of 77.3%.  I noted challenges of UNOC state Participation in the Oil and Gas Industry. Whereas UNOC is drawing closer to the Final Investment Decision (FID) for each of the Projects, the Company faces challenges in financing the 15% stake in the East Africa Crude Oil Pipeline (EACOP), 15% State Commercial Interest in the Upstream, and 40% in the Refinery Project. | +| 17 | Uganda Refinery Holding Company Ltd 2020/21 Opinion Unqualified |  Out of a total of UGX 2.9bn received during the financial year, UGX.2.9bn was spent by the Company. This represents an absorption level of 100%.  I noted delays in the development of the Kabaale Industrial Park. As at 30th June 2021, implementation of infrastructure such as roads, power supply, water supply and Information Communication Technology connection had not yet commenced.  I noted delays in the implementation of the Refinery Project. As at 30th June 2021, the refinery investor had not met the targets for some Project milestones. Preliminary activities such as the Front End Engineering Design were at 97%, Environmental Social Impact Assessment Study at 70%, and procurement for the consultancy services for the Resettlement Action Plan was on-going. | +| 18 | Uganda Electricity Transmission Company Limited (UETCL) 2020/21 Opinion Unqualified |  I noted that UETCL developed and approved a Corporate Business Plan without certification from the National Planning Authority. There is a risk that activities implemented during the financial year 2020/2021 were not aligned to the NDP-III, which negatively affects the achievement of NDP- III objectives.  UETCL budgeted to receive UGX. 1.424Tn in Tariff and Non-Tariff revenue out of which, UGX.1.338Tn was received resulting in a shortfall | + + +253 + +--- + +|| of UGX 86Bn. Domestic energy sales were 9.5 % below budget. Both sales to Rwanda and DRC 29% below the budget, and no sales were made to South Sudan despite the anticipated revenue of UGX.824 million.  UETCL budgeted to receive from Government, UGX.108.823Bn for capacity charges and deemed energy costs. However, only UGX 36.4Bn was released resulting in a shortfall of UGX 72.423Bn, which is 66% of the budget.  I sampled 40 critical activities implemented under 7 sampled departments under UETCL and noted that 17(43%) tasks had been fully implemented, 13 (32%) were partially implemented, while 10 (25%) were not implemented at all.  A provision for bad and doubtful debts amounting to UGX 161.4bn was made under Trade and other receivables in the financial statements. This was an increment of 25% from the financial year 2019/20. The provision relates to customers with unpaid balances in contravention of the terms and conditions of the power sales agreement. I further noted that 74.7% of the provisions were attributable to only one Company.  Analysis of the trade and other payables revealed an increment of 18.7Bn from UGX.740.8Bn in 2019/20. Included in these payables were amounts of UGX.71.2Bn and USD.4.7 million which have been outstanding for over 10 years.  M/s UMEME and M/s UEDCL withheld UETCL revenue of UGX 64Bn and 10.31Bn, respectively on account of evacuation losses and non-payment of electricity bills by Government MDAs. Withholding revenue constrains UETCL’s ability to pay electricity generators.  The land titling process was not satisfactory on most of UETCL Projects. UETCL takes an average of 3 years to conclude the titling process in contravention of the 6 months period warranted which exposes the company to a risk of litigation and potential encroachment.  UETCL incurred deemed energy costs of UGX 87.7Bn on thirteen (13) PPAs, save for me HPP were directly financed through the tariff system, hence impacting on the electricity price to the final consumer.  I noted that UETCL incurred about UGX 494,150,000 in replacing vandalized tower equipment during the year under review. I further noted that the company incurred UGX. 1.6Bn in replacement costs on assorted transmission line items vandalized between 2017 and 2021.  I noted delays in concluding the procurement process for a sample of procurements with a total contract sum of UGX.17.8Bn with procurements lasting an average of 3 years and some cases going up to 5 years. Prolonged procurement processes deny timely achievement of intended project objectives. | +|---|---| +| 19 | National Pipeline Company 2020/21 Opinion Unqualified |  Out of the total receipts for the financial year of UGX.3.71Bn, UGX.3.71Bn was utilized. This represents an absorption level of 100%.  I noted that the Company failed to maintain National Strategic Reserves. In the period under review, the Consortium failed to meet the required National Strategic Reserve levels of 12 million litres per month. Failure to restock petroleum reserves exposes the Country to supply shocks and a risk of inflated prices in the event of disruptions in the petroleum supplies chain.  I noted that as at 30th June 2021, the consortium had not developed the facilities to enable lake transport to the Jinja Storage Tanks. The construction of an oil jetty and connecting pipeline to Jinja Storage Tanks | + + +254 + +--- + +|| had not commenced.  I noted delays in implementation of Kampala Storage Terminal (KST). As at 30th June 2021, Preliminary activities such as the Power Reticulation Proposal and Environment Social Impact Assessment for the terminal were undertaken However, Construction activities under the Project had not commenced. | +|---|---| +| 20 | Rural Electrification Agency 2020/21 Opinion Unqualified |  Out of the budgeted government receipts for the financial year of UGX.155.23Bn, a sum of UGX. 149.26Bn was spent by the entity resulting in an unspent balance of UGX.5.97Bn, representing an absorption level of 96%.  I noted outstanding cumulative arrears of revenue in respect to the 5% levy fees due from UETCL amounting to UGX 96.13Bn and UGX.3.69Bn arising from unpaid lease rental from various Service Territory Operators, respectively.  The Rural Electrification Agency had a contingent liability of UGX 19.73Bn in relation to way leaves cases not yet disposed of during the year under review. I further noted that REA had UGX 3.29Bn as an outstanding amount in Court awards due to delayed payment of retention, non- payment for work done, unlawful dismissal and non-renewal of employment contracts  The Agency had challenges in the implementation of the Electricity Connections Policy. As at 30th June 2021, out of the 97,000 annual planned connections, only 3,683 (3.7%) connections were undertaken. Such dismal performance is likely to fail the intended objectives of the policy.  I noted that the entity had outstanding compensations to the landowners of Way leaves amounting to UGX 8.67Bn. This could lead to litigation. | +| 21 | Uganda Energy Credit Capitalisation Company Limited 2020/21 Opinion Unqualified |  No material issue reported.  | +| 22 | Grid Expansion and Reinforcement Project – MEMD 2020/21 Opinion Unqualified |  Out of the total receipts for the financial year of USD.1,698,907.88, only USD.1,030,144.30 was spent resulting into an unspent balance of USD.654,938.58, representing an absorption level of only 60.6%.  I noted low funds disbursement over the Project Life. Out of the loan funds of USD.3,500,000 over the 5-year life of the Project. As at 30th June 2021 (4 years into implementation), only USD.1,965,000 (56%) had been released to the Project, of which USD.1,310,061.41 (67%) had been spent hence putting the overall loan absorption at 37% by 30th June 2021\. The Project is expected to close on 31st October 2022.  I noted that Planned Project activities such as development of a Power Sector Integrated Plan had not commenced, while development of a National Electrification Strategy and Environmental and Social monitoring and supervision were still in progress. | +| 23 | The Fuel Marking and Quality Monitoring Program, Ministry of Energy and Mineral Development |  Out of the total receipts for the financial year of UGX.9.62Bn, a sum of UGX. 8.71Bn was spent representing 91% absorption level by the program. As a result activities such as Stakeholders’ awareness | + + +255 + +--- + +|| 2020/21 Opinion Unqualified | workshops and Training on petroleum standard development were partially implemented.   I noted non-compliance by fuel stations with the Standard that covers the siting, design and construction of service stations, installation and operation of equipment in service stations for handling, storage and dispensing of petroleum products and their derivatives.  I noted that the Program does not have in place a comprehensive system of monitoring and testing the quality of lubricants and engine oils based on the standards. This poses a risk to motorists who may purchase poor quality engine oils and lubricants. | +|---|---|---| +| 24 | The Ministry of Energy and Mineral Development (MEMD) 2020/21 Opinion Unqualified |  I noted in the year under review, that the entity did not have an approved sector development plan (strategic plan) 2020/21. The Accounting Officer explained that a strategic Plan was prepared and is aligned to the NDP III, a however the approval of management delayed due to management transition  The Ministry budgeted to collect NTR of UGX.19.9Bn during the year under review. Out of this, only UGX. 13Bn was realized, representing a performance of 65.3% of the target. This was attributed to COVID Pandemic that greatly affected businesses in the Country to extent that some companies wrote requested for either a reduction or waiving off their rent arrears.  Out of the total warrants for the financial year of UGX.342.3Bn, a sum of UGX.336.9Bn was spent by the entity resulting in an unspent balance of UGX.5.4Bn representing an absorption level of 98%. As a result, I noted that of the 148 quantified activities worth UGX.99.3Bn assessed; 16 activities representing 10.8% were fully implemented, 125 activities representing 84.5% were partially implemented, while 7 activities representing 4.7% were not implemented.  A trend analysis of the domestic arrears reported in Note 24 to the financial statements showed movement of domestic arrears from UGX.18.29Bn in the previous year to UGX.17.13Bn in the year under review, a decrease of 7%. This unsustainable trend poses risks of litigation and related costs inform of interest penalty.  The Ministry received UGX.1.39Bn into the Mineral Royalties Sharing Fund account during the period, in addition to the closing amount of UGX.442.07Mn from the previous period. However, only UGX.1.39Bn was paid leaving an outstanding balance of UGX.433.82Mn which has been correctly disclosed as payables as at year end.  The receivables amount of UGX.14,287,738,002 in the statement of financial position and under Note 19, to the financial statements includes an amount UGX.4,494,005,610 receivables (UGX 4,288,550,000 and UGX.205,455,610 relating to annual mineral rent/royalties and sale of goods and services, respectively) which has been outstanding for over four years.  The RAP implementation and land acquisition for the Karuma Reservoir Area project. The contract has been extended several times with the new completion date set for 23rd June 2022. I established that a RAP survey and valuation report was submitted by the Consultant on 31st April 2021, but, as at 30th June 2021, compensation of the PAPs had not yet commenced.  A review of the Department of Geological Survey and Mines staff | + + +256 + +--- + +|| establishment revealed that out of 127 approved positions, only 85 positions were filled leaving 42 positions vacant representing a staffing gap of 33%. | +|---|---| +| 25 | Kilembe Mines Ltd (KML) 2020/21 Opinion Unqualified |  The entity budgeted to receive UGX.3.574Bn out of which, UGX.857Mn was realised, resulting in a shortfall of UGX.2.717Bn which is 76% of the budget. As a result activities such as dewatering the Copper Mines and revamping of Hima Lime Works, were not been implemented.   I noted that a number of assets had been damaged / impaired due to waters that broke the banks of River Nyamwamba on 7th and 10th of May, 2020. However, no formal estimate of the recoverable amount has been conducted. This may result into an overstatement of the total assets and understatement of operating loss.  I noted that the Company had an outstanding receivable of UGX.1.26Bn as at 30th June 2021, 54% of the amount relates to unpain rent from Tibet Hima Mining Co. Ltd. Delayed recovery of outstanding revenues affects the Company’s liquidity position.  I noted that the Company had outstanding payables of UGX.2.28Bn. The amount increased from UGX.0.966 to UGX.2.286Bn resulting into an increase of UGX.1.321Bn (137%) as at 30th June 2021.  I noted delayed divesture of Kilembe Mines. Three (3) years have elapsed without an investor/operator being identified to take over Kilembe Mines operations, following the termination of the Tibet Hima Concession Agreement.  Emergency Funding of UGX 4.375bn was required to rehabilitate the damaged Company infrastructure following flooding of rivers Nyamambwa and Mubuku in May and August 2020. However, the requested funds were not availed.  Mubuku Hydro-Power Plant was designed to generate 5MW. I however noted that the plant was only generating 2MW from Unit 1. Units 2 to 4 were out of service for a number of years.  Review of the Annual Performance Report, 2021 revealed that the Company had a number of long outstanding court cases, relating to encroachment of Land belonging to the company. Three cases had been outstanding for over 7 years, three other cases for 5 but less than 7 years and six cases for less than 5 years. | +| 26 | Uganda Electricty Generation Company Limited Capacity Building Program-Norwegian Grant Uga-16/0010 Initial Support to UEGCL – 2019 2020/21 Opinion Unqualified |  Out of UGX.6,475,227,265 received for project activities UGX.5,285,679,281 was utilized representing 82% absorption. The under absorption was attributed to postponement of commissioning of Karuma Hydro power plant.  | +| 27 | Atomic Energy Council 2020/21 Opinion |  Out of the total receipts for the financial year of UGX. 13.98bn, UGX. 9.96bn was spent by the entity resulting in an unspent balance of UGX 4bn representing an absorption level of 71.2%. As a result, Six (6) outputs with thirty nine (39) activities worth UGX. 4.2Bn were partially | + + +257 + +--- + +|| Unqualified | implemented.  I noted that the Council lacked of Radiation Protection and Safety Laboratories. There were no Laboratories in place for testing radioactivity levels in food stuffs, construction materials and other consumable products that contain natural radionuclides. This puts the lives of the community at risk.  I noted that the Council lacked adequate specialized inspection equipment required for various practices and activities that involved management of radiation sources.  Out of Staff the Council Establishment of 90 positions, only 49 positions filled leaving 21 positions vacant, representing a staff shortfall of 30%. This affects the efficient and effective execution of the Council mandate. | +|---|---|---| +| 28 | Energy for Rural Transformation Project (ERT III)-PCU 2020/21 Opinion Unqualified |  Out of the total available funds for the financial year of USD 6,346,771.03, only USD 5,585,830.71 was spent by the Project, resulting in an unspent balance of USD. 760,940.32, representing absorption level of 88%.  I noted low disbursements of loan funds over the Project Life. Out of the ERT III Project loan amount of USD 143.2 Million, only USD 94.5 Million had been disbursed by the Bank to the respective components representing an absorption level of 65% and yet the Project was left with six (6) months to closure on 31 December 2021.  I noted that planned Project activities such as supply and installation of Solar Photovoltaic Energy Packages – in Schools under the Ministry of Education and Sports and Health Centers under Ministry of Health were not implemented. This resulted into delayed electricity power access by the selected schools and health centres. | +| 29 | Opuyo- Moroto 132kv Transmission Line Project - (UETCL) 2019 Opinion Unqualified |  I noted that despite the project nearing completion, out of 1,300 PAPs, only 1,222 had been compensated leaving a balance of 78 (6%) by 30th June 2019. There is a risk that the outstanding compensation of PAPs may further delay project implementation.  I noted that despite the loan last disbursement date being 28th February 2021, only 21% of the total funds were disbursed to both UETCL and REA by 30th June 2019 | +| 30 | Opuyo- Moroto 132kv Transmission Line Project - (UETCL) 2020 Opinion Unqualified |  I noted under Note 9.13 that the project payables increased from USD.1,169,371 (2019) to USD. 2,290,568 (2020) due to non payments of service providers at the end of the financial year for the services provided. | +| 31 | The 132kv Mirama-Kabale Transmission Line and Distribution Project-2019 Opinion Unqualified |  No significant matters to report on. | + + +258 + +--- + +| 32 | The 132kv Mirama-Kabale Transmission Line And Distribution Project-2020 Opinion Unqualified |  No significant matters to report on. | +|---|---|---| +| 33 | Energy for Rural Transformation III Implemented by Uganda Energy Credit Capitalization Company Limited (ERT III- UECCCL) Opinion Unqualified |  No material issue reported. | +| 34 | Energy for Rural Transformation III BOU Project (ERT III). Opinion Unqualified |  No material findings to report on | +|| EDUCATION SECTOR || +| 1 | African Centre for Agro ecology and Livelihood Systems (ACALISE) Project – UMU 2020/21 Opinion Unqualified |  I noted in the statement of income and expenditure that out of budgeted total revenue of USD 1,807,602 for the financial year 2020/2021, only USD 610,980 (33.8%) was realized leading to a budget shortfall of USD 1,196,622.  I noted that out of the available funds amounting to USD 1,165,530 (current year receipt of USD 610,980 and the balance brought forward of USD 554,550) for the project operations for the financial year, only USD 1,054,538 was spent, leaving an unspent balance of USD 110,992. This represents approximately 90% absorption rate. | +| 2 | Soroti University. 2020/21 Opinion Unqualified |  I noted that the University did not indicate NTR estimates in its statement of Appropriation. How out of the budgeted NTR of UGX.706,000,000 for the financial year 2020/2021, UGX.195,985,600 was collected representing a performance of 28% of the target.  The entity budgeted to receive UGX.20.229Bn out of which UGX.19.621Bn was warranted, resulting into a shortfall of UGX.0.608 Bn which is 3% of the budget.  I noted the University received off-budget financing to the tune of UGX.36,710,266 which was not transferred to the consolidated fund as required by the law.  Out of the total receipts (warrants) for the financial year of UGX.19.621Bn, UGX.17.484Bn was spent by the entity resulting into an under absorption of UGX.2.137Bn representing an absorption level of 89%.  Ten (10) outputs with a total of ninety-nine (99) activities and | + + +259 + +--- + +|| expenditure worth UGX 10.251Bn were fully quantified while one (1) output with a total of four (4) activities and expenditure worth UGX 1.898Bn was not quantified to enable assessment of performance as there was no output that was insufficiently quantified.  Out of the ten (10) out puts that were fully quantified, one (1) output with a total of 6 (six) activities worth UGX.0.051Bn was fully implemented while 9(nine) outputs with a total of ninety-three (93) activities worth UGX.10.201Bn were partially implemented.  The University closed the financial year with an accumulated payable totaling to UGX.2,604,379,429 of which UGX.559,049,780 had been outstanding for more than one year.  The University paid a contractor UGX.996,389,960 in respect of outstanding debt that included UGX.188,055,690 relating to accrued interest charged by the contractor as a result of delayed payments. The interest expenditure was nugatory | +|---|---| +| 3 | Busitema University. 2020/21 Opinion Unqualified |  Out of the budgeted Non tax revenue of UGX.6,517,061,618 for the year 2020/21, only UGX.4,904,767,921 was collected representing a performance of only 75% of the target.  There was a shortfall in releases amounting to UGX4.63Bn which is 9% of the budget. Furthermore, the entity remained with unspent balance of UGX.1.60Bn representing an absorption level of 97%.  The University received off-budget financing to the tune of UGX.1,462,363,950 which was not transferred to the consolidated fund as required by the law. These funds were received directly from development partners for undertaking activities which were not budgeted for.  Nine (9) outputs with 73 activities worth UGX.33.34Bn were insufficiently quantified. That is out of the Seventy-three (73) activities, twelve (12) activities (16%) were not clearly quantified. Two (2) outputs with a total of eight (8) activities worth UGX.8.52Bn were fully implemented while two (2) outputs with a total of fifteen (15) activities worth UGX3.46Bn were partially implemented.  I noted that the University closed the financial year with outstanding payables to the tune of UGX.1,504,842,864 of which UGX.1,421,201,933 related to unpaid enhanced salaries for administrative and support staff that accrued in the financial year 2016/17. | +| 4 | Gulu University. 2020/21 Opinion Unqualified |  I noted that the University’s strategic plan was not certified by NPA and no feedback had been received by the time of concluding the audit. This was attributed to delays in the review and certification process by NPA.  I reviewed the NTR estimates, revenue sources and rates charged at vote level for the financial year 2020/2021 and noted that the entity budgeted to collect NTR of UGX.12.75Bn during the year under review. Out of this, UGX.4.18Bn was collected, representing a performance of 32.8% of the target. The entity budgeted to receive UGX. 58.88Bn from treasury, out of which UGX.57.90Bn was warranted, resulting into a shortfall of UGX.0.98Bn which is 1.7% of the budget.  Out of the total warrants of UGX 58.11Bn received during the financial year, UGX. 57.90bn was spent by the entity resulting in an unspent balance of UGX 0.21Bn, representing an absorption level of 99.6%. The unspent balance at the end of the financial year was subsequently swept back to the consolidated fund account as required by the PFMA. | + + +260 + +--- + +||  The University received off-budget financing to the tune of UGX.6,255,990,597 which was not declared to Treasury and, therefore, not appropriated to the entity by Parliament. These funds were received directly from development partners for undertaking activities not budgeted for.  I reviewed the extent of quantification of outputs and activities for a sample of the ten (10) outputs with a total of twenty (20) activities and expenditure of UGX.45.556Bn and noted that seven (7) outputs with a total of twelve (12) activities and expenditure worth 43.284bn were fully quantified while three (3) outputs with a total of eight (8) activities and expenditure worth UGX. 2.871bn were not quantified at all.  I assessed the implementation of seven (7) out puts that were fully quantified with a total of twelve (12) activities worth UGX.43.282Bn and noted that three (3) outputs with a total of six (6) activities worth UGX.37.054Bn were fully implemented. Two (2) outputs with a total of four (4) activities worth UGX,5.706Bn were partially implemented while two (2) outputs with a total of two (2) activities worth UGX. 0.522Bn were not implemented.  The University had outstanding domestic arrears of UGX.5,681,315,557 dating as far back as financial year 2015/16. There is a risk that the University could face litigation from the suppliers and other beneficiaries.  Gulu University is involved in several court cases and some of the cases remained pending at the financial year end. The cases are mostly between the University and its former staff, students and suppliers. The cases arose mainly from unlawful termination, breach of contracts, unfair treatment, land issues, Arrears/failure to pay suppliers.  Gulu University awarded a contract for the supply and installation of Network Equipment to the Faculty of Agriculture, Biometric Equipment for Staff attendance, Laptops and Desktops for Vice Chancellor, Director ICT and Director Planning & Development at a contract price of UGX.181,794,897 on the 25th June, 2021. However, as at the time of concluding the audit, installation was not undertaken.  Gulu University signed a contract for the construction of the Business and Development Centre on the 19th June, 2019 for a contract price of UGX.30,122,043,772. The construction start date was 1st August, 2019 and the expected completion date of 30th July, 2023. I noted that only UGX.2.1Bn out of UGX.6.0Bn was paid as advance for mobilization and this led to the temporary stoppage of works by the contractor which led to slow progress of the building works. At the time of concluding the audit, no major works were undergoing.  I noted that the following University pieces of land were not titled; forest land measuring 28 hectares, Pajengo Latoro; Agago and Agora Pader land. There is a risk that the land in question could be lost to unscrupulous individuals.  Out of the 1,606 approved positions in Gulu University; only 441 (27%) posts were filled, leaving 1,165 (73%) positions vacant. | +|---|---| +| 5 | The Higher Education Students' Financing Board (HESFB) 2020/21 Opinion Unqualified |  I noted that the University’s strategic plan was not certified by NPA and no feedback had been received by the time of concluding the audit. This was attributed to delays in the review and certification process by NPA.  I reviewed the NTR estimates, revenue sources and rates charged at vote level for the financial year 2020/2021 and noted that the entity budgeted to collect NTR of UGX.12.75Bn during the year under review. Out of this, UGX.4.18Bn was collected, representing a performance of 32.8% of the | + + +261 + +--- + +target. The entity budgeted to receive UGX. 58.88Bn from treasury, out of which UGX.57.90Bn was warranted, resulting into a shortfall of UGX.0.98Bn which is 1.7% of the budget. + +- Out of the total warrants of UGX 58.11Bn received during the financial year, UGX. 57.90bn was spent by the entity resulting in an unspent balance of UGX 0.21Bn, representing an absorption level of 99.6%. The unspent balance at the end of the financial year was subsequently swept back to the consolidated fund account as required by the PFMA. + + + +- The University received off-budget financing to the tune of UGX.6,255,990,597 which was not declared to Treasury and, therefore, not appropriated to the entity by Parliament. These funds were received directly from development partners for undertaking activities not budgeted for. + + + + + +- I reviewed the extent of quantification of outputs and activities for a sample of the ten (10) outputs with a total of twenty (20) activities and expenditure of UGX.45.556Bn and noted that seven (7) outputs with a total of twelve (12) activities and expenditure worth 43.284bn were fully quantified while three (3) outputs with a total of eight (8) activities and expenditure worth UGX. 2.871bn were not quantified at all. + + + +- I assessed the implementation of seven (7) out puts that were fully quantified with a total of twelve (12) activities worth UGX.43.282Bn and noted that three (3) outputs with a total of six (6) activities worth UGX.37.054Bn were fully implemented. Two (2) outputs with a total of four (4) activities worth UGX,5.706Bn were partially implemented while two (2) outputs with a total of two (2) activities worth UGX. 0.522Bn were not implemented. + + + +- The University had outstanding domestic arrears of UGX.5,681,315,557 dating as far back as financial year 2015/16. There is a risk that the University could face litigation from the suppliers and other beneficiaries. + + + +- Gulu University is involved in several court cases and some of the cases remained pending at the financial year end. The cases are mostly between the University and its former staff, students and suppliers. The cases arose mainly from unlawful termination, breach of contracts, unfair treatment, land issues, Arrears/failure to pay suppliers. + + + +- Gulu University awarded a contract for the supply and installation of Network Equipment to the Faculty of Agriculture, Biometric Equipment for Staff attendance, Laptops and Desktops for Vice Chancellor, Director ICT and Director Planning & Development at a contract price of UGX.181,794,897 on the 25th June, 2021. However, as at the time of concluding the audit, installation was not undertaken. + + + +- Gulu University signed a contract for the construction of the Business and Development Centre on the 19th June, 2019 for a contract price of UGX.30,122,043,772. The construction start date was 1st August, 2019 and the expected completion date of 30th July, 2023. I noted that only UGX.2.1Bn out of UGX.6.0Bn was paid as advance for mobilization and this led to the temporary stoppage of works by the contractor which led to slow progress of the building works. At the time of concluding the audit, no major works were undergoing. + + + +- I noted that the following University pieces of land were not titled; forest land measuring 28 hectares, Pajengo Latoro; Agago and Agora Pader land. There is a risk that the land in question could be lost to unscrupulous individuals. + +- Out of the 1,606 approved positions in Gulu University; only 441 (27%) + + + +262 + +--- + +|| posts were filled, leaving 1,165 (73%) positions vacant. | +|---|---| +| 6 | Kabale University. 2020/21 Opinion Unqualified |  I noted that the University prepared a strategic plan aligned to NDP III and the plan was approved by NPA and a certificate of approval issued.  Out of budgeted NTR collections of UGX.7.6 Bn, only UGX. 5.26Bn was realized, representing a performance of 74.6 % of the target.  There was a shortfall in government releases amounting to UGX.0.03Bn representing 0.08% of the budget.  Out of the total receipts for the financial year of UGX.40.95 Bn a sum of UGX. 40.5 Bn was spent by the entity resulting in an unspent balance of UGX 0.45Bn representing an absorption level of 99%.  I sampled 5 outputs of a total of Nine (9) outputs and expenditure worth 37.22.Bn and noted that two (2) outputs with a total of three (3) activities was fully quantified; three (3) outputs with thirteen (13) activities were partially quantified while two (2) activities were not implemented.  The university accumulated receivables totalling to UGX.3,114,950,156 as at 30/6/2021. Under collection of billed revenue cripples, the University’s ability to meet its financial obligations and impacts negatively on service delivery.  I noted the University had outstanding payables of UGX.1,872,390,164 as at 30/6/2021. The failure to clear payables by the closure of the financial year may attract litigation resulting into wasteful expenditure in form of legal fees. | +| 7 | Lira University. 2020/21 Opinion Unqualified |  The entity submitted its final copy of the strategic plan to National Planning Authority (NPA) for alignment and certification however, no feedback had been received by the entity at the time of audit (September 2021).  I reviewed the NTR estimates, revenue sources and rates charged at vote level for the financial year 2020/2021 and noted that the entity budgeted to collect NTR of UGX 4.948Bn during the year. Out of this, only UGX 1.918Bn was collected, representing a performance of 38.8% of the target. In addition, the University budgeted to receive UGX 27.808Bn out of which UGX.27.118Bn was warranted/availed resulting in a shortfall of UGX.0.698Bn which is 2.5% of the budget.  Out of the total warrants of UGX.27.118Bn received during the financial year, UGX 25.796Bn was spent by the entity resulting in an unspent balance of UGX.1.322Bn representing an absorption level of 95%. The unspent balance at the end of the financial year was subsequently swept back to the consolidated fund as required by the PFMA.  The University received off-budget financing to the tune of UGX.836,710,490 which was not declared to the Treasury and, therefore, not appropriated to the entity by Parliament. These funds were received directly from development partners for undertaking activities not budgeted for.  I reviewed the extent of quantification of outputs and activities for a sample of seven (7) outputs with a total of seventeen (17) activities and expenditure of UGX.22.003Bn and noted that five (5) outputs with a total of six (6) activities and expenditure worth UGX.5.3Bn were fully quantified while two (2) outputs with a total of eleven (11) activities and expenditure worth UGX 16.703Bn were insufficiently quantified.  I assessed the implementation of five (5) outputs that were fully | + + +263 + +--- + +|| quantified with a total of six (6) activities worth UGX.5.3Bn and noted that two (2) outputs with two (2) activities worth UGX.0.3Bn were fully implemented while three (3) outputs with four (4) activities worth UGX.5Bn were partially implemented.  During the year, the University incurred nugatory expenditure totalling to UGX.25,752,041 being interest and penalties paid resulting from management’s failure to deduct and remit NSSF deductions for the period August 2016 to June 2020.  I noted that Lira University signed a tenancy agreement with the Law Development Centre letting out the first floor of the faculty of Education to LDC at a consideration of UGX.15,300,000 per month inclusive of taxes implying that the University is making a monthly financial loss of UGX.2,754,000 in form of VAT payable to URA. As a result, the university did not remit VAT totalling to UGX. UGX.33,048,000 being VAT payable on rental income to URA on the annual rental income of UGX.183,600,000 (UGX.15,300,000 for 12 months) received by the University.  I noted a delayed construction of the Administration Block following a contract award of UGX.16,664,107,531 to the construction contractor. Despite the expiry of the contract duration of the three years to 11th September 2021, the construction works had not been completed, and the progress of works was estimated at 32% level. However, the supervising contractor had been paid 92% on his contract of UGX.749,885,000 ending 4th February 2022. | +|---|---| +| 8 | MAK Holdings. 2020/21 Opinion Unqualified |  I noted that the Company management budgeted to receive and generate revenue of UGX.1,892,600,000 however, only UGX.809,760,761 (43%) was realized reflecting an underperformance of UGX.1,082,839,239 which is 57% of the expected revenue for the year.  The Makerere University Guest house had accumulated creditors to the tune of UGX.620,024,827 from UGX.405,138,535 in the financial year ended 30th June, 2020 representing a 53% increase in liabilities. Some of the outstanding liabilities include statutory payments worth UGX.240,026,071  I noted an increase in receivables of UGX.299,307,621 from UGX.271,978,943 reported in the prior year. | +| 9 | Mapronano World Bank Project. 2020/21 Opinion Unqualified |  I noted that out of the released USD 1,995,561, only USD 1,357,190 was spent by the Project resulting into unspent balance of USD 638,371 representing an under absorption level of 31.98%. The unspent balance at the end of the financial year was subsequently carried forward to the next financial year.  I assessed the implementation of the six (6) out puts with 24 activities that were fully quantified worth USD 2,210,000. Two (2) outputs with two (2) activities worth US$ 171,393 were fully implemented. Four (4) outputs with a total of twenty two (22) activities worth US$ 1,185,795 had 11 activities fully implemented, 9 activities partially implemented, and 4 activities were not implemented. | +| 10 | MaRCCI World bank Project. 2020/21 Opinion Unqualified |  I assessed the implementation of the eight (8) out puts with 42 activities that were fully quantified worth US$ $907,282.93, and noted that one (1) output with two (2) activities worth US$ 27,600 was fully implemented while seven (7) outputs with a total of forty (40) activities worth US$ 879,681.93 were partially/not-implemented. The project management implemented sixteen (16) activities fully, eighteen (18) activities partially and six (6) activities were not implemented. | + + +264 + +--- + +||  I noted that the project did not pay staff salaries to the tune of USD 13,596 (approximately UGX.50,305,2000. In addition, PAYE withheld from staff deductions for the months of October and November, 2020 totaling to USD. 11,764 (approximately UGX.43,526,800) was not remitted to Uganda Revenue Authority as per regulations. | +|---|---| +| 11 | Management Training and Advisory Centre (MTAC). 2020/21 Opinion Unqualified |  The MTAC had not prepared the required 5-year strategic plan that is in line with the NDPIII  Out of the budgeted NTR of UGX.2.15Bn for the financial year 2020/2021, a sum of UGX.2.06Bn was collected representing performance of 96% of the target.  Out of the total receipts for the financial year of UGX.5.19Bn, a sum of UGX.3.78Bn was spent by the Centre resulting into unspent balance of UGX.1.41Bn representing an absorption level of 73%.  One (1) output with a total of two (2) activities worth UGX.1.25Bn was partially implemented. Out of the two (2) activities, the entity fully implemented one (1) activity (50%), the entity did not implement one (1) activity (50%).  Though total liabilities decreased by 12%, a review of the age analysis of the payables revealed that a liability totalling to UGX.634,986,966 (79%) has been outstanding for more than one year  I observed that MTAC has operated without the Governing Council since 2015  Out of 72 posts of the newly implemented MTAC staff establishment, only 54 (75%) were filled leaving 18 (25%) vacancies. Among the vacant posts were key positions of the Executive Director, Director Finance and Administration and Manager-Human resources and Administration. | +| 12 | Makerere University. 2020/21 Opinion Unqualified |  I noted that the University did not have the strategic plan annualized to indicate which outputs are expected for each year of implementation of the plan covering the period of 2021/21-2024/25. I also noted that whereas the University had prepared and submitted its strategic plan to NPA for approval, it had not yet been approved at the time of audit in October 2021.  I reviewed the NTR estimates, revenue sources and rates charged at vote level for the financial year 2021/2021 and noted that the University budgeted to collect NTR of UGX.95.84Bn during the year under review. Out of this, only UGX.58.29Bn was collected, representing a performance of 60.82% of the target. I further noted that the University budgeted to receive UGX.363.74Bn out of which UGX.359.86Bn was warranted, resulting in a shortfall of UGX.3.88Bn which is 1.1% of the budget. Revenue shortfalls affect implementation of the planned activities.  Out of the total warrants of UGX.359.86Bn received during the financial year, UGX.357.04Bn was spent by the entity resulting in an unspent balance of UGX.2.82Bn representing an absorption level of 99.2%. The unspent funds were swept back to the consolidated fund as required by PFMA.  I noted that the University received off-budget financing to the tune of UGX.237,398,885,878 which was not declared to Treasury and, therefore, not appropriated to the entity by Parliament. These funds were received directly from both development partners and other stakeholders for undertaking activities not budgeted for.  I reviewed the extent of quantification of outputs and activities for a | + + +265 + +--- + +sample of ten (10) outputs with a total of forty two (42) activities and expenditure of UGX.356.85Bn and noted that two (2) outputs with a total of seven (7) activities and expenditure worth UGX.265.85Bn were fully quantified. Two (2) outputs with a total of twenty-five (25) activities and expenditure worth UGX.30.11Bn were insufficiently quantified while six (6) outputs with a total of ten (10) activities and expenditure worth UGX.60.89Bn were not quantified at all. I observed that in cases where outputs were either partially or not quantified, management reported performance in generic ways. + + + +- I assessed implementation of two (2) out puts that were fully quantified with a sample of seven (7) activities worth UGX.265.85Bn and noted that one (1) output with a total of three (3) activities worth UGX 4.06Bn was fully implemented while one (1) output with a total of four (4) activities worth UGX.261.78Bn were partially implemented. + + + +- During the financial year under review, the University lost its main administration building and other assets therein to a fire that gutted the main administration Block on the 20th day of September 2020. The fire caused substantial damage to the main building whose value was estimated at UGX.15,434,782,500 by the Chief Government Valuer. + +- The Statement of reported losses of Public moneys, stores and other assets during the year showed the reported losses of assets/property of total estimated value of UGX.16,457,577,500. + + + +- The University had a receivables balance of UGX.25,527,015,916 as at 30/6/2021 broken down as accrued income of UGX.23,372,851,776 and a prepayment of UGX.2,154,164,140 to UMEME for electricity bulk purchase. The accumulation of receivables may lead to under performance of the university on its planned activities. + + + + + +- The University has an outstanding pension liability of UGX.18,920,219,207, inclusive of interest as reported in the Statement of Financial Position for the year ended 30th June 2021 resulting from accumulation of In-House Retirement Benefits since 2010. Delayed payment of retirement benefits may result in nugatory expenditure if the retirees decide to take the University to court. + + + +- The Statement of Financial Position showed accumulation of domestic arrears of UGX.7,819,385,752 as at 30th June 2021. I noted that majority of these arrears were from the prior years. There is a risk that the University could face litigation from the suppliers and other beneficiaries. + + + +- I noted that the main University installations/buildings such as the Senate, the Library, School of Women and Gender Studies and others are not comprehensibly insured. In case of a catastrophe, the University is at risk of huge financial obligations to the tenants. + + + +- I noted that there are non-qualifying persons occupying the University buildings. These were identified to be former University staff (retirees), unknown persons and Uganda Police Officers whose services were transferred from Makerere University. + + + +- I noted that water bills for the year under review were neither read nor submitted to the finance department for deductions. I noted that staff salaries were arbitrarily deducted to clear their water consumption without following one’s monthly water consumption. + +- The University owns various pieces of land totalling to 102 Acres in prime locations around Kampala including Makerere, Mulago and Makindye. Inspection of the land revealed that the land is heavily encroached upon and a number of cases have been in court for more than five (5) years. + + + +266 + +--- + +||  A review of the Land register revealed that the University owns land in Kibaale and Makerere Hill. It was however noted that the university had not secured certificate of titles confirming ownership of the two (2) pieces of land.  A review of the staff establishment at the directorates and Colleges revealed an overall staffing gap of 915 positions, which is 44.9 % of the approved establishment. The understaffing was mainly at the Associate Professor level and Professor level. It was further noted that most of the staff at lecturer and senior lecturer level had adequate qualifications but had not been promoted. | +|---|---| +| 13 | Muni University. 2020/21 Opinion Unqualified |  I reviewed the NTR estimates, revenue sources and rates charged at vote level for the financial year 2020/2021 and noted that Muni University budgeted to collect NTR of UGX.1.18bn during the year under review. Out of this, only UGX.0.34bn was collected, representing a performance of 29% of the target.  I further noted that the University budgeted to receive UGX.22.60Bn from treasury out of which UGX.21.28Bn was availed, resulting in a shortfall of UGX.1.32Bn which is 5.8% of the budget.  Out of the total warrants of UGX.21.280Bn received during the financial year, UGX.19.982Bn was spent by the entity resulting in an unspent balance of UGX.1.298Bn representing an absorption level of 93.9%. The unspent funds were swept back to the consolidated fund as required by the PFMA.  The University received off-budget financing to the tune of UGX.584,396,093 which was not declared to treasury and, therefore, not appropriated to the entity by Parliament. These funds were received directly from development partners for undertaking activities not budgeted for.  I reviewed the extent of quantification of outputs and activities for a sample of ten (10) outputs with a total of fifty-nine (59) activities and expenditure of UGX.18.9Bn and noted that five (5) outputs with a total of twenty-two (22) activities and expenditure worth UGX.6.47Bn were fully quantified. Two (2) outputs with a total of thirty-three (33) activities and expenditure worth UGX.10.29Bn were insufficiently quantified. While three (3) outputs with a total of four (4) activities and expenditure worth UGX 2.14Bn were not quantified at all.  I assessed the implementation of five (5) out puts that were fully quantified with a total of twenty-two (22) activities worth UGX6.47Bn and noted that three (3) outputs with a total of ten (10) activities worth UGX.0.640Bn were fully implemented while two (2) outputs with a total of twelve (12) activities worth UGX.5.83Bn were partially implemented.  The University spent a sum of UGX.265,775,722 on payment of gratuity expenses during the year against the approved budget and release of only UGX.52,000,000. Payment of gratuity expenses beyond the appropriated and warranted funds is an indication of budget indiscipline and leads to diversion of funds.  The laboratory equipment that included the PCR machine, the high- capacity Fridge for preserving the laboratory specimens, the PCR workstation and many others supplied by the ADB HEST Project last year, had not been put to use due to power challenges. This defeats the purpose for which the equipment was supplied.  Muni University Capacity Building Centre (MUCBC);- Dormitory (Hostels), Dining Hall, Lecture Block, Conference Hall, Office Block, 6 Stance VIP | + + +267 + +--- + +|| Latrine and Store have deteriorated and in dire need of renovation.  The University’s land in BidiBidi measuring about 439.58 acres valued at UGX.439,580,000 did not have a land title.  Muni University entered into a contract for the Completion of the Construction of Health Science Laboratory Building at a contract price of UGX.9,393,202,823 inclusive of taxes. However, works were significantly behind schedule at an estimated 36% completion. There is a risk that the Project may not be completed within the projected time frame. | +|---|---| +| 14 | Mbarara University of Science & Technology. 2020/21 Opinion Unqualified |  I noted that the University had NTR estimates of UGX.12.43Bn out of which UGX.9.28Bn was collected representing 75% of the budget.  I noted that out of the total receipts for the financial year of UGX.55.4Bn, only UGX.51.4Bn was spent by the entity resulting in an unspent balance of UGX.4Bn representing an absorption level of 92.9%.  I noted that the University received off-budget financing to the tune of UGX.9.2Bn which was not transferred to the consolidated fund as required by the law.  I noted that nine (9) outputs with a total of twenty-two (22) activities and expenditure worth 42.9Bn were fully quantified. That is, 99% of the activities within these out-puts were clearly quantified to enable assessment of performance.  I noted that one (1) output with a total of three (3) activities and expenditure worth UGX 0.47Bn was insufficiently quantified. That is, the two (2) activities of the three sampled (67%) of the output was not clearly quantified to enable assessment of performance.  I noted that one (1) output with one activity worth UGX.0.05Bn was fully implemented, while eight (8) outputs with a total of twenty-one (21) activities worth UGX.42.9Bn were partially implemented. Out of the twenty-one (21) activities, the entity fully implemented nine (9) activities (43%), 9 (43%) activities were partially implemented and three (3) activities (14%) remained unimplemented  I noted that the University accumulated receivables totalling to UGX.4,222,012,678 as at 30th June 2021, an increase of UGX.1,427,267,366 (51%) in the outstanding receivables of UGX.2,794,745,312 of the prior year ended 30th June 2020.  I noted that the leasehold land on Plot No. 6, lower circular Road, Mbarara expired on 31st March 2017 and has not been renewed four (4) years after its expiry.  I noted that MUST owns six (6) tourist camping sites (bandas) adjacent to Bwindi forest, in Kanungu district on approximately 2 acres of land which was leased to a service provider for a period of 10 years effective 12/04/2020 at contract sum of UGX.480,000,000 (UGX.48,000,000 annually). However, the service provider did not pay the first instalment of UGX.48,000,000 which was due on 12th April 2021, citing challenges of Covid-19 pandemic. | +| 15 | National Council of Sports. 2020/21 Opinion Unqualified |  Out of the budgeted NTR of UGX.1,185,394,990 for the financial year 2020/2021, UGX.515,782,750 was collected representing a performance of 44% of the target.  The entity budgeted to receive UGX.22.9Bn from the Treasury out of which UGX.21.6Bn was received, resulting into a shortfall of UGX.1.3Bn which was 5.7% of the budget. | + + +268 + +--- + +||  Out of the total receipts for the financial year of UGX.22.165 Bn, UGX.22.160 Bn was spent by the entity resulting into an under absorption of UGX.0.006 Bn representing an absorption level of 99.97%.  Out of the eleven (11) outputs with a total of seventy-six (76) activities and expenditure of UGX.22.059 Bn taken for assessment, six (6) outputs with a total of thirteen (13) activities and expenditure worth UGX.18.708 Bn were fully quantified.  I assessed the implementation of six (6) out puts that were fully quantified with a total of thirteen (13) activities worth UGX.18.708Bn and noted that five (5) outputs with a total of twelve (12) activities worth UGX.18.708Bn were partially implemented. Out of the twelve (12) activities, the entity fully implemented five (5) activities (42%); partially implemented three (3) activities (25%) and four (4) activities (33%) remained unimplemented.  A review of the strategic plan, budgets and other records revealed that Council does not have a policy in place for promoting sports. There was no evidence availed by management to show that there is any framework of relationship with Local authorities to provide sports facilities.  Whereas Council approved funds transfer of UGX.1,431,284,198 to various Associations, there was no evidence to show that Council approved budgets of the individual Associations as required by NCS Regulations. I further noted that the approved funds transfers lacked a schedule supporting the allocation break down.  Out of the 51 registered Associations, 49 submitted information about their other sources of funding. The remaining 2 Associations did not submit the required information for the period under review.  I noted that some Associations did not deduct and remit WHT totalling to UGX.21,636,694 to the Uganda Revenue Authority. | +|---|---| +| 16 | Uganda Management Institute (UMI). 2020/21 Opinion Unqualified |  I noted that the Institute budgeted to collect NTR of UGX.25.68Bn during the year under review. Out of this, only UGX.9.11Bn was collected, representing a performance of 35.5% of the target. In addition, the Institute budgeted to receive UGX.36.33Bn however, UGX.33.89Bn was availed, resulting in a deficit of UGX.2.44 Bn which is 6.7% of the budget.  Out of the total warrants of UGX.33.88Bn received during the financial year. UGX.29.25Bn was spent by the entity resulting in an unspent balance of UGX.4.63Bn, thus an absorption level of 86.33%. The unspent funds were swept back to the consolidated fund as required by the PFMA. I further noted that the entity did not seek a revision of its budget and work plan as provided for by section 17 (3) of the PFMA 2015.  I noted that the University received off-budget financing to the tune of UGX.185,595,654 which was not declared to treasury and, therefore, not appropriated to the entity by Parliament. These funds were received directly from development partners for undertaking activities not budgeted for.  I reviewed the extent of quantification of outputs and activities for a sample of twelve (12) outputs with a total of sixty-eight (68) activities and expenditure of UGX.35.32Bn and noted that all the twelve (12) outputs with a total of sixty-eight (68) activities and expenditure worth UGX 35.32Bn were not quantified at all. That is, all the sixty-eight (68) activities (100%) within these outputs were not clearly quantified to enable assessment of performance.  I noted that PAYE tax totaling to UGX.589,262,089 was not deducted | + + +269 + +--- + +|| from staff gratuity payments on the basis of exemption from PAYE under the Pensions Act However, I noted that the gratuity of staff under contract terms is not regulated by the Pensions Act.  I noted that UMI did not transfer to the Consolidated Fund unspent balances of UGX. 555,953247 on ABSA Project Account at the end of the financial year as advised by the Accountant General. | +|---|---| +| 17 | Uganda National Examinations Board (UNEB). 2020/21 Opinion Unqualified |  Out of the budgeted NTR of UGX.56.7Bn for the financial year 2020/2021, UGX.55.5 Bn was collected representing a performance of 97.9% of the target.  There was no shortfall in Government releases, UNEB budgeted to receive UGX.93.943 Bn from government which was entirely warranted.  Out of the total receipts for the financial year of UGX.149.49Bn, a sum of UGX.149.49 Bn was spent by the Board representing an absorption level of 100%.  UNEB received off-budget financing to the tune of UGX.900,250,000 which was not appropriated by Parliament. These funds were received directly from NAPE-UTSEP project to conduct a survey on behalf of MOES on the effect of COVID-19 on teaching and learning at primary and secondary school levels.  I reviewed the extent of quantification of outputs and activities for all the nine (9) outputs with a total of forty-two (42) activities and expenditure of UGX.149.49Bn and noted the eight (8) outputs with a total of thirty three (33) activities and expenditure worth UGX.101.67Bn were fully quantified. While one (1) output with a total of nine (9) activities and expenditure worth UGX.47.81Bn, was insufficiently quantified.  I assessed the implementation of five (5) outputs that were fully quantified with a total of fifteen (15) activities worth UGX.1.5Bn and noted that Five (5) outputs with fifteen (15) activities and expenditure worth UGX 18.87Bn were fully implemented. Three (3) outputs with eighteen (18) activities worth UGX.82.80Bn were partially implemented. Out of the eighteen (18) activities, the entity fully implemented fourteen (14) activities, two (2) activities partially implemented, while two (2) activities remained unimplemented. | +| 18 | BTVET SUPPORT PROJECT 2020/21 Opinion Unqualified |  There were no reportable issues. | +| 19 | Petroleum Geoscience Collaboration Programme (ENPE II PROJECT) 2020/21 Opinion Qualified |  Makerere University main Building was gutted down by fire where vital documents got lost in the inferno. Consequently, payment vouchers and supporting documents in support of payments totaling to UGX.368,361,770 which is 65% of the total expenditure were not presented for examination. I was not able to confirm the authenticity of the expenditure. | +| 20 | Makerere Institute of Social Research Beyond Criminal Justice Project Centre File 107453-001 for the Period 1 st January 2013 to 31 st December 2013 |  No material issues to report on | + + +270 + +--- + +|| Opinion Unqualified || +|---|---|---| +| 21 | Makerere Institute of Social Research Beyond Criminal Justice Project Centre File 107453-001 For The Period 1 st January 2014 to 31 st December 2014 Opinion Unqualified |  No material issues to report on | +| 22 | Makerere Institute Of Social Research Beyond Criminal Justice Project Centre File 107453-001 For The Period 1st January 2015 To 31st December 2015 Opinion Unqualified |  No material issues to report on | +| 23 | Makerere Institute of Social Research Beyond Criminal Justice Project Centre File 107453-001 For The Period 1st January 2016 To 31st December 2016 Opinion Unqualified |  No material issues to report on | +| 24 | MAKERERE INSTITUTE OF SOCIAL RESEARCH- HARRY FRANK GUGGENHEIM FOUNDATION GRANT FOR THE PERIOD 1st JANUARY 2014 TO 31ST DECEMBER 2014 Opinion Unqualified |  No material issues to report on | +| 25 | MAKERERE INSTITUTE OF SOCIAL RESEARCH- HARRY FRANK GUGGENHEIM FOUNDATION GRANT FOR THE PERIOD 1 st JANUARY 2015TO 31ST DECEMBER 2015 Opinion Unqualified |  No material issues to report on | +| 26 | MAKERERE INSTITUTE OF SOCIAL RESEARCH- HARRY FRANK GUGGENHEIM FOUNDATION GRANT FOR THE PERIOD 1 st JANUARY 2016 TO 31ST DECEMBER |  No material issues to report on | + + +271 + +--- + +|| 2016 Opinion Unqualified || +|---|---|---| +| 27 | Makerere Institute Of Social Research Internally Generated Funds For The Period 1st July 2012 To 30th June 2013 Opinion Unqualified |  No material issues to report on  | +| 28 | Makerere Institute of Social Research Internally Generated Funds for The Period 1st July 2013 To 30th June 2014 Opinion Unqualified |  No material issues to report on  | +| 29 | Makerere Institute of Social Research Internally Generated Funds for The Period 1st July 2014 to 30th June 2015 Opinion Unqualified |  No material issues to report on  | +| 30 | Makerere Institute of Social Research Internally Generated Funds for The Period 1st July 2015 to 30th June 2016 Opinion Unqualified |  No material issues to report on  | +| 31 | Makerere Institute of Social Research- Norhed Project “Building and Reflecting on Interdisciplinary Phd- Studies for Higher Education Transformation” Grant Number: Uga- 13/0023 For the Period 1st January 2014 to 31st December 2014 Opinion Unqualified |  No material issues to report on  | +| 32 | Makerere Institute of Social Research- Norhed Project “Building and Reflecting on Interdisciplinary Phd- |  No material issues to report on  | + + +272 + +--- + +|| Studies for Higher Education Transformation” Grant Number: Uga- 13/0023 For the Period 1st January 2015 to 31st December 2015 Opinion Unqualified || +|---|---|---| +| 33 | Makerere Institute of Social Research- Norhed Project “Building and Reflecting On Interdisciplinary Phd- Studies For Higher Education Transformation” Grant Number: Uga- 13/0023 For The Period 1st January 2016 To 31st December 2016 Opinion Unqualified |  No material issues to report on | +| 34 | Makerere Institute of Social Research- Think Tank Initiative Phase 2 Institutional Support Centre File: 107906-001 For The Period 1st January 2014 To 31st December 2014 Opinion Unqualified |  No material issues to report on  | +| 35 | Makerere Institute of Social Research- Think Tank Initiative Phase 2 Institutional Support Centre File: 107906-001 For the Period 1st January 2015 to 31st December 2015 Opinion Unqualified |  No material issues to report on | +| 36 | Makerere Institute of Social Research- Think Tank Initiative Phase 2 Institutional Support Centre File: 107906-001 For the Period 1st January 2016 to 31st December 2016 Opinion Unqualified |  No material issues to report on | +| 37 | Makerere Institute of Social Research- Carnegie |  No material issues to report on | + + +273 + +--- + +|| Corporation Grant Number B 8741.Ro1 for the Period 1st January 2014 to 31st December 2014 Opinion Unqualified |  | +|---|---|---| +| 38 | Makerere Institute of Social Research Carnegie Corporation Grant Number B 8741.R01 for the Period 1 st January 2015 to 31 st December 2015 Opinion Unqualified |  No material issues to report on  | +| 39 | Makerere Institute of Social Research-Carnegie Corporation Grant Number B 8741.Ro1 For the Period 1st January 2016 To 31st December 2016 Opinion Unqualified |  No material issues to report on  | +| 40 | Kyambogo University Enable Report June 2020 Opinion Unqualified |  No material issues to report on  | +| 41 | KYU University ENABLE Project Report Dec 2020 Opinion Unqualified |  No material issues to report on  | +| 42 | KYU NORHED-MVP Project Report June 2020 Opinion Unqualified |  No material issues to report on  | +| 43 | KYU NORHED-MVP Project Report Dec 2020 Opinion Unqualified |  No material issues to report on  | +| 44 | Uganda Petroleum Institute Kigumba 2020/21 Opinion Unqualified |  I noted that the Institute submitted its strategic plan for the period 2021- 2025 to NPA for review and approval but at the time of audit the certificate of approval had not been received.  Out of the budgeted NTR of UGX.0.67Bn for the year 2020/2021only UGX.0.073Bn was collected, representing a performance of 9% of the target. Similarly, the Institute budgeted to receive UGX.8.5bn from GOU | + + +274 + +--- + +|| of which UGX.6.65bn was warranted, resulting in a shortfall of UGX. 1.85bn representing 21% of the budget.  I noted that the Institute spent all the funds that was available amounting to UGX.6.92bn representing 100% performance.  I noted that Seven (7) outputs with fifteen (15) activities and expenditure worth UGX.4Bn were fully quantified. That is, 100% of the activities within these out-puts were clearly quantified to enable assessment of performance. I further noted that Twelve (12) outputs with Twenty two (22) activities and expenditure worth UGX.2.49Bn was not quantified to enable assessment of performance.  Out of the Seven (7) quantified outputs three (3) outputs with seven (7) activities and expenditure worth UGX 4.39Bn were fully implemented while two (2) outputs with four (4) activities worth UGX.0.25Bn were partially implemented as two (2) outputs with four (4) activities worth UGX0.33Bn were not implemented. That is none of the four (4) activities was implemented at all.  The Institute had accumulated domestic arrears totalling to UGX. UGX.1.03Bn by the closure of the financial year under review (2020/2021) thereby being expressed to risk of litigation.  The Institute had outstanding receivables totalling to UGX.0.055Bn by the closure of the financial year under review.  Construction of Female hostel block, 2 Lecture halls, Library and an information Centre and Health Centre had delayed by 20months from the initial completion date of 27th March, 2020.  Out of the 103 approved staff established of the Institute, only 84 posts had been filled leaving 19 (18%) positions vacancies. I further noted that in spite of the vacant positions, the Institute had recruited an additional Forty-six (46) staff on contract terms outside the approved structure. | +|---|---| +| 45 | Tb Preventive Therapy for Hiv-Infected Alcohol Users in Uganda: An Evaluation of Safety, Tolerability and Adherence (ADEPTT) Project 2018 Opinion Unqualified |  I noted that the closing balance of USD 12,178.00 was different from the balance brought forward as at 1st September 2017 of USD 9,615.58 creating a difference of USD 2,562.42. The difference could not be explained by management and was therefore disclosed in the Fund accountability statement as unaccounted for funds.  | +| 46 | MUST- Public Engagement Fund Grant, ‘Unpacking Design Thinking Principles Through Biomedical Engineering Student’s Innovation Cafes’ Bmeic Project – 2020 Opinion Unqualified |  No Reportable issues.  | +| 47 | MUST- Serial Killers to Mosquitoes; The Spatial Targeting of Larval Habitats in Rural Uganda Using Geographic Profiling |  No Material Reportable issues.  | + + +275 + +--- + +|| (Breeding Sites) Project – 2019 Opinion Unqualified || +|---|---|---| +| 48 | Epidemiology of Coronary Artery Disease Among People with Hiv In Rural Sub-Sahara Africa (CAD) Project 2019 Opinion Unqualified |  No Material Reportable issues.  | +| 49 | MUST- Interventions to Reduce Alcohol Use and Increase Adherence to TB Prevention Therapy Among Hiv/Tb Co-Infected Drinkers (DIPT) 2019 Opinion Unqualified |  No Material Reportable issues.  | +| 50 | MUST-Population Effectiveness of Dolutegravir Implementation in Sub- Saharan Africa: A Prospective Observational Cohort Study” (DISCO), 2020 Opinion Unqualified |  No Material Reportable issues.  | +| 51 | MUST- Mobile Technology to Extend Clinic – Based Counseling For Hiv+ In Uganda (Extend), Project – 2019 Opinion Unqualified |  No Material Reportable issues.  | +| 52 | MUST- Mama Namtoto: Barriers and Enablers to Gender, Equity and Scale- Up in Tanzania Project Code 108547-002, 2018 Opinion Unqualified |  No Material Reportable issues.  | +| 53 | Must- Research Aimed at Developing Sustainable Low Field Magnetic Resonance Imaging (MRI-NIH) Project |  No Material Reportable issues.  | + + +276 + +--- + +|| – 2019 Opinion Unqualified || +|---|---|---| +| 54 | Advancing Hiv Research at MUST Through A Research Administration Training Project with the University of Virginia (RASA) -2020 Opinion Unqualified |  No Material Reportable issues.  | +| 55 | MUST- Resistance Testing Versus Adherence Support for Management of Patients with Virologic Failure on First-Line Antiretroviral Therapy in Sub-Saharan Africa (Revamp) Project No. 04/05-16 – 2018 Opinion Unqualified |  I noted that the opening bank balance of USD 58,902 was different from the balance brought forward as at 1st July 2017 of USD 49,244, thus creating unexplained difference of USD 9,658. The difference was disclosed in the Fund accountability statement as unaccounted for funds.  I noted stale payments (cheques) totaling to USD 29,567.06 that were kept beyond six months in favor of government agencies and suppliers of goods and services which were never paid by the Project. This creates a risk of court fines and penalties. | +| 56 | MUST- Analysis of Past and Projected Future Land Use Change and Its Impact on Sediment Fluxes in The Rwizi Catchment (Vlir Rwizi) Project – 2018 Opinion Unqualified |  No Material Reportable issues.  | +| 57 | MUST- Smart Discharge to Improve Post-Discharge Health Outcomes in Children: A Prospective Stepped-Wedge Effectiveness Study (Smart Discharge) Project - 2019. Opinion Unqualified |  No Material Reportable issues.  | +| 58 | Social Networks, Hiv Stigma, And the Hiv Care Cascade in Rural Uganda Project Of Mbarara Universisty Of Science and Technology- 2019 Opinion Unqualified |  No Material Reportable issues.  | +| 59 | MUST-The Virologic And Pharmacologic |  No Material Reportable issues. | + + +277 + +--- + +|| Determinants of Dolutegravir Failure in East Africa (Tld) Project 2019 Opinion Unqualified |  | +|---|---|---| +| 60 | MUST- Voices of The Indigenous People Of Uganda Project 2020 Opinion Unqualified |  No Material Reportable issues.  | +| 61 | Education Service Commission 2020/21 Opinion Unqualified |  I noted the Commission closed the year with outstanding payables/domestic Arrears worth UGX.0.255Bn.  The Commission received all the budgeted amount of UGX.9.38Bn and had unspent balance of UGX. 0.82Bn, representing an absorption level of 91%.  I noted that the Commission quantified all its outputs. Ten (10) outputs were fully quantified with a total of thirty five (35) activities worth UGX 8.55Bn. Seven (7) outputs with twenty four (24) activities worth UGX.8.1Bn were partially implemented, while one (1) output with one (1) activity worth UGX.0.015Bn was not implemented.  | +| 62 | Multinational Statistical Capacity Building Program for Managing for Development Results - Phase 4.2 (MSCB-AFDB) Project 2017 Opinion Unqualified |  No Material Reportable issues.  | +| 63 | Multinational Statistical Capacity Building Program for Managing for Development Results - Phase 4.2 (MSCB-AFDB) Project 2018 Opinion Unqualified |  No Material Reportable issues.  | +| 64 | Multinational Statistical Capacity Building Program for Managing for Development Results - Phase 4.2 (MSCB-AFDB) Project 2019 Opinion Unqualified |  No Material Reportable issues.  | + + +278 + +--- + +|||| +|---|---|---| +| 65 | Multinational Statistical Capacity Building Program for Managing for Development Results - Phase 4.2 (MSCB-AFDB) Project 2020 Opinion Unqualified |  No Material Reportable issues.  | +| 66 | Mandela National Stadium Limited 2020/21 Opinion Unqualified |  I noted that the Company had no approved strategic plan that is aligned to NDPIII at the time of audit.  I noted that although the Company realized 101% of the budgeted, the original budget was revised from UGX.6.07Bn to UGX.2.63bn to match the expected revenue.  Out of the total receipts for the financial year of UGX.2.66bn, UGX. 1.36 Bn was resulting into an unspent balance of UGX.1.3bn representing an absorption level of 51%.  I noted that the Stadium quantified all its five (5) outputs and all the outputs were partially implemented whereby out of forty four (44) activities, the entity fully implemented seven (7) activities (16%), partially implemented five (5) activities (11%), while thirty two (32) activities (73%) remained unimplemented.  I noted that MNSL liabilities remained on a higher side despite a registered decrease from UGX.5.38Bn in the F/Y 2019/2020 to UGX.3.89Bn as at the end of the financial year under review representing a reduction of UGX.1.49 (28%).  I noted that Mandela National stadium closed the financial year with a receivables figure of UGX.2.42Bn, a reduction of only 7% from receivables of UGX.2.59 as at the end of the previous FYR: 2019/2020.  I noted that the Company did not implement its Staffing Strategy of the current running strategic plan 2018-2023.  I noted that stadium Land continues to have illegal occupants. | +| 67 | The Albertine Region Sustainable Development Project (ARSDP) - MOES Component 2020/21 Opinion Unqualified |  Assessment of the Project’s performance for the five year Project work plan implementation status revealed that one objective/goal had been achieved, while the remaining seven (7) were partially achieved.  Out of the project donor budgeted receipts of UGX.41.3Bn only UGX.35.5Bn was released, resulting in a shortfall of 5.5Bn representing 86% performance; out of the GOU budgeted amount of UGX. 2.94Bn, only UGX.2.66Bn was released, resulting in a shortfall of 0.28Bn representing 91% performance.  Out of the total receipts for the financial year of UGX. 35.5Bn, UGX.32.3Bn was spent by the Project leaving a balance of UGX.3.2Bn representing 91% performance.  I noted that four (4) outputs and nine (9) activities to be implemented; Three (3) outputs with a total of eight (8) activities and expenditure worth UGX.18.79Bn were fully quantified while One (1) output with one (1) activity and expenditure worth UGX.13.48Bn was insufficiently quantified to enable the assessment of performance.  I noted that three (3) out puts with a total of eight (8) activities worth | + + +279 + +--- + +|| UGX.25.18Bn were fully quantified.  I noted One (1) output with two (2) activities and expenditure worth UGX 14.53Bn was fully implemented. That is all the two (2) activities within this output were fully implemented. I further noted that One (1) output with Five (5) activities worth UGX.3.60Bn was partially implemented. I also noted that One (1) output with one (1) activity worth UGX.0.68Bn was not implemented. That is; the one (1) activity was not implemented at all.  Review of the Implementation status of the aide Memoir reports by the World bank for the Project monitoring mission activity for the period 27th July -3rdAugust 2020, 2nd-10th December 2020 Mission and 16th-25th March, 2021 revealed that some of the agreed upon actions/recommendations between the World Bank and MoES  Implementation status of aide Memoir reports indicated that some recommendations had either been partially implemented or not implemented.  I noted that there was no internal audit review carried out on the operations of ARSDP during the period under review contrary to the requirement in Section II (B) of the ARSDP Financing agreement. | +|---|---| +| 68 | Kyambogo University 2020/21 Opinion Unqualified |  I noted that the University prepared a strategic plan and obtained a certificate of compliance on the 27th of September 2021 from National planning Authority (NPA).  The University collected UGX.40.9Bn (53%) of its budgeted non-tax revenue of UGX.77.1Bn. I further noted that the university received UGX.130.07Bn (93%) out of the budgeted GOU receipts amount of UGX.140.6Bn.  Out of the total warrants for the financial year of UGX.130.07Bn, only UGX.124.5 was spent by the University resulting into unspent balance of UGX.5.53Bn representing an absorption level of 96%.  The University received Donor financing to the tune of UGX.3.11Bn of which only UGX.2.68Bn had been included in the budget reflecting off budget receipts of UGX.0.43Bn.  I noted that out of the 14 outputs sampled, 4 out puts (29%) were fully quantified, 8 out puts (57%) were insufficiently quantified while 2 out puts (14%) were not quantified at all. I also noted that the University did not fully implement any of the 4 fully quantified out puts.  The University had outstanding domestic arrears and outstanding receivables of UGX.13.6Bn and UGX.23.2Bn, respectively.  Some of the University land had illegal land occupants. I further noted that there were variations between the area on the Certificate of Tittle and actual Area on the ground for plot M902 of the University land.  Out of the 1,671 approved posts for the University, only 928 (55.5%) were filled leaving 743 (45.5%) posts vacant. This has a negative impact on education service delivery.  The University had MOUs for only 40 of the 112 affiliated Institutions. I further noted that of the 40 MOUs availed; MOUs for 9 Institutions had expired.  | +| 69 | The National Council for Higher Education |  Out of budgeted NTR collections of UGX. 6.25bn, only UGX. 2.96Bn was | + + +280 + +--- + +|| 2020/21 Opinion Unqualified | realized, representing a performance of 47.4%.  The Council budgeted to receive UGX.5.4Bn from Government out of which UGX.5.01Bn was availed, resulting in a shortfall of UGX0.39Bn, which is 7.2% of the budget.  Out of UGX.8.86 Bn available for spending during the financial year, UGX.8.75Bn was spent by the entity resulting into unspent balance of UGX 0.11 Bn, representing absorption level of 99%.  I noted that out of the one hundred sixteen (116) activities, fifty three (53) activities (46%) were quantified, while the balance of sixty three (63) activities (54%) were not clearly quantified to enable the assessment of performance. I further noted that One (1) output with a total of Nine (9) activities and expenditure worth UGX 0.62 Bn were not quantified at all. | +|---|---|---| +| 70 | National Curriculum Development Centre 2020/21 Opinion Unqualified |  I noted that whereas NCDC had prepared a strategic plan and whereas a notification of approval had been provided by NPA, a certificate of approval was yet to be obtained.  Out of the budgeted NTR of UGX.250,000,000 for the financial year under review, UGX.93,000,000 was collected representing a performance of 37.2% of the target.  The entity budgeted to receive UGX.40.163Bn from Treasury out of which UGX.37.138 Bn was warranted, resulting into a budget shortfall of UGX.3.025Bn which is 7.5% of the budget.  The Centre received off-budget financing to the tune of UGX.1,661,966,260 which was not transferred to the Consolidated Fund as required by the law and hence not appropriated.  Out of the total receipts for the financial year of UGX 37.137bn a sum of UGX. 36.929bn was spent by the entity resulting into an under absorption of UGX.0.208bn representing absorption level of 99.4%.  Out of the eleven (11) outputs with a total of seventy three (73) activities and expenditure of UGX.36.88 Bn, nine (9) outputs with a total of sixty eight (68) activities and expenditure worth UGX 35.95 Bn were fully quantified, one (1) output with a total of two (2) activities and expenditure worth UGX.0.16Bn were insufficiently quantified, and one (1) output with a total of one (1) activity and expenditure worth UGX 0.77Bn was not quantified to enable assessment of performance.  I assessed the implementation of nine (9) out puts that were fully quantified with a total of sixty eight (68) activities worth UGX.35.95Bn and noted the following; Two (2) outputs with 2 (two) activities worth UGX 0.75 Bn were fully implemented. The entity implemented the two (2) activities (100%) within the outputs. Secondly; seven (7) outputs with a total of sixty six (66) activities worth UGX.35.20Bn were partially implemented. Out of the sixty six (66) activities, the entity fully implemented forty one (41) activities (62%); partially implemented seven (7) activities (11%) and eighteen (18) activities (27%) remained unimplemented.  I noted that goods and services totalling to UGX.5,296,396,760 did not have corresponding WHT transactions totalling to UGX.317,783,806 on the IFMS payment file. I further noted that there was no evidence of exemptions.  Payments totalling to UGX.7,616,021 were made to staff of the Centre contrary to the e-cash guidelines. Similarly, funds totalling to UGX.31,448,969 were irregularly paid to payees who were already | + + +281 + +--- + +|| registered suppliers/vendors on IFMS. Also Funds to the tune of UGX.22,105,200, were utilized for expenses that were not provided for in the budget, to cater for COVID-19 SOPs. | +|---|---| +| 71 | Makerere-Sida Bilateral Research Program 2020/21 Opinion Unqualified |  No material Issues to report on  | +| 72 | Pharm-Biotechnology and Traditional Medicine (Pharmbiotrac) Centre Ace Ii Project 2020/21 Opinion Unqualified |  I noted that a sum of USD.4,754,402 (88%) was disbursed in the 4 years period to 30th June 2021 against the planned cumulative expenditure of USD 5,404,514.  I noted that out of the total available financing for the financial year of USD.1,506,515 only USD.1,105,054 was spent by the Project resulting into an unspent balance of USD.401,461 representing an absorption level of 73%.  I noted that all the ten (10) outputs with a total of eighty seven (87) activities and expenditure of USD.1,105,054 were clearly quantified to enable assessment of performance.  I noted that all the ten (10) outputs with a total of eighty seven (87) activities worth USD. 1.1million were partially implemented. Out of eighty seven (87) activities, the entity fully implemented forty five (45) activities (52%), the entity partially implemented fifteen (15) activities (17%), while twenty seven (27) activities (31%) remained unimplemented.   I noted that the Project had not obtained Patent rights over the various Products it had developed. | +| 73 | Ministry of Education and Sports (MOES) 2020/21 Opinion Unqualified |  I noted that the Ministry’s Strategic plan was not yet approved by National Planning Authority at the time of audit.  The Ministry budgeted to collect NTR of UGX.6.3Bn during the year under review out of which, only UGX.0.13Bn was realized, representing a performance of only 2% of the target.  The entity budgeted for GOU receipts of UGX.388.4bn of which UGX.369bn was warranted, resulting into a shortfall of UGX.19.4Bn which is 5% of the budget.  Out of the total receipts for the financial year of UGX.369Bn, a sum of UGX.343.6Bn was spent by the Ministry resulting into an unspent balance of UGX.23.3Bn representing an absorption level of 93%.  Twenty three (23) outputs with a total of sixty four (64) activities and expenditure of UGX. 274.4Bn that were sampled were fully quantified.  Ten (10) outputs with a total of twenty seven (27) activities worth UGX.124.1Bn were fully implemented. Nine outputs (9) outputs with a total of twenty five (25) activities worth UGX 98.4Bn were partially implemented while Four (4) outputs with a total of twelve (12) activities worth 51.83 Bn were not implemented at all.  The Ministry spent UGX.5.3Bn on Covid-19 impacted expenditure to cater for printing and distribution of home learning materials, content writing for home learning materials which was not in the approved budget and there was no evidence of a supplementary request. | + + +282 + +--- + +||  Out of a sum of UGX. 23.44Bn released to the ministry in respect of Covid-19 response related expenditure only UGX.9.62 (55.4%) remained unspent and was subsequently swept back to the Consolidated Fund Account.  I noted under Note 18 to the financial statements and the statement of financial position that the ministry had receivables totaling to UGX.10.64Bn at the beginning of the financial year which increased to UGX.11,684,417,736 at closure of the year. The outstanding amounts relate to advances which were made to various educational institutions and District Local Government.  The ministry had outstanding payables amounting to UGX.39.45 Bn at the closure of the financial year. This was a reduction of UGX.10.74Bn (21.4%) from UGX.50.19Bn in the FY 2019/20. I further noted that UGX. 29.79Bn (75.5%) of the outstanding amount has been outstanding for more than one year. I also noted that whereas the Ministry had outstanding obligations UGX.50.19Bn at the beginning of the financial year, only UGX.16.69Bn was provided for in the budget resulting into a funding gap of UGX.33.51Bn.  Only UGX.18.81Bn of the appropriation for pensions of UGX.28.52Bn (66%) was absorbed leading to under absorption of funds by UGX.9.71Bn (34%). In addition, the Ministry had accumulated pension arrears totaling to UGX.1.47Bn due to delayed payment due to missing documents on pension files.  Out of the total verified outstanding court awards of UGX.10.18 Bn, a sum of UGX.4.69Bn (46.1%) relates to accumulated interest costs arising from delayed settlement of court awards. I further noted that whereas the ministry had obligations to the tune of UGX. 15.98Bn and other on- going cases during the financial year, only UGX.1.66Bn was provided for court awards and compensations in the work plan for the financial year under review.  Post closure audit inspection on Uganda Teacher School Effectiveness’ project (UTSEP) in the Ministry of Education revealed UGX.1.58Bn remained unutilized as at the closure of the F/Y (30th June 2021).  I noted that UGX.3.9Bn of the UGX.5.55Bn advanced to UBOS before project closure date (31st July 20) to carry out data collection (enumeration) for the comprehensive Education Institutions baseline, which was expected to be completed by 30th April 2020 remained outstanding.  I noted that the Ministry of Education and Sports still holds the mandate of managing Government scholarships, however information on Scholarship offered at the different Missions and other Government organizations was not available at the Secretariat. In addition, there was no scholarship Policy. I also noted that out of a total of 280 scholarships offered in the previous three years, only 162 were utilized resulting into an under absorption of 118 (42%) scholarships. | +|---|---| +| 74 | Opec Fund for International Development (OFID)- Vocational Education Project Phase 11 2020/21 Opinion Unqualified |  I noted that the 5 year project with total budget of UGX.59.43 Bn that started in June 2017 had only received a total of UGX 14.09 Bn by end of financial year 2020/2021.  Out of the total amount of UGX.14.09Bn availed for financing the Project for the four and a half years covered; only UGX.12.3 Bn (87%) had been absorbed while the unspent balance of UGX.1.7bn was swept back to the Consolidated Fund.  I noted that whereas the Project closing date was 31st December 2021, | + + +283 + +--- + +|| two critical project Components 1 & 2 (civil works, supply of equipment and tools) that form 85% of the total project budget had not taken off by the time of concluding the audit (2nd December 2021.  I observed that out of the absorbed funds worth UGX.12.3Bn, UGX.6.6bn (54%) was spent on other Arab funded Projects other than OFID project.  I noted that a total amount of UGX. 6.6Bn of the UGX.12.3 Bn GOU component was irregularly spent on other Arab funded Projects of IDBI, IDBII, KFAED and BADEA without authority. | +|---|---| +| 75 | Uganda Skills Development Project (USDP)- PSFU 2020/21 Opinion Unqualified |  I noted that the Project has made cummulative disbursements of USD.15,345,592 against cummulative commitments of USD.17,617,457 representing 87% performance.  Out of the total amounts of UGX.30.75Bn available for spending during the financial year under review, a total amount of UGX.24.6Bn was spent by the Project resulting into an unspent balance of UGX.6.14Bn, representing an absorption level of 80%.  All the seven (7) outputs with a total of twenty-nine (29) activities and expenditure of 24.6Bn that is, all the twenty-nine 29 activities (100%) within these out-puts were clearly quantified.  I assessed implementation of Quantified outputs and noted that; the Project fully implemented sixteen (16) activities (62%); the Project partially implemented eight (8) activities (30%), while two (2) activities (8%) remained unimplemented. | +| 76 | Uganda Skills Development Project (USDP) -MOES Opinion Unqualified |  I noted that at the close of the financial year 2020/2021, out of the two (2) planned strategic targets/objectives, one objective/goal had been achieved, while the other one had been partially achieved.  Out of the budgeted amount of UGX.58.82Bn budgeted to be received from World Bank during the financial year 2020/2021; a sum of UGX.46.53Bn was received indicating performance of 79% of the target. Similarly, the project budgeted to receive UGX.1.25Bn, of which UGX.1.07Bn was warranted, resulting in a shortfall of UGX. 0.18 Bn (14.4%) of the budget.  I noted that all project outputs were fully quantified. I also noted that the project fully implemented one of the sampled outputs, partially implemented one and two outputs were not implemented.  I noted delayed Signing of Contract for Supply of a Spray track for UTC Lira valued at Euros 205,200 had delayed for 9 months by end of November 2021, following the contracts committee’s approval on 23rd/02/2021.  I noted delayed Installation and testing of Equipment: USD. 8,304,848 by 5 months at the time of audit at the end of November. I further noted that furniture supplies and civil works had also delayed with the delayed period ranging from 1-7 months. | +| 77 | Imagining Gender Futures in Uganda (IMAGENU) Project – DFC Project No. 17-07-AU- Gulu University - 2020 Opinion Unqualified |  There were no reportable issues.  | + + +284 + +--- + +78 Makerere University Busines School. +2020/21 + +Opinion Unqualified + + + +- I noted that the University had its plan approved and certified by NPA and the plan is aligned to the national development plan. This greatly supports the achievement of NDP-III objectives. + + + +- I reviewed the NTR estimates, revenue sources and rates charged at vote level for the financial year 2020/2021 and noted that the entity budgeted to collect NTR of 56.845Bn during the year under review. Out of this, only 33.589bn was collected, representing a performance of 59.1% of the target. + +- The University budgeted to receive UGX.102.629Bn out of which UGX.97.03Bn was availed, resulting in a shortfall of UGX5.59Bn, which is 5.5% of the budget. + + + + + +- Out of the total warrants of UGX.97.03Bn received during the financial year. UGX.96.85Bn was spent by the entity resulting in an unspent balance of UGX.0.18Bn representing an absorption level of 99.8%. The unspent funds were swept back to the consolidated fund as required by the PFMA. + + + +- I noted that the School received off-budget financing to the tune of UGX. 549Bn from NOHRED/NORAD Project Support which was not declared to treasury and, therefore, not appropriated to the entity by Parliament. + + + +- I reviewed the extent of quantification of outputs and activities for a sample of twelve (12) outputs with a total of seventy three (73) activities and expenditure of UGX.91.667Bn and noted that five (5) outputs with a total of fourteen (14) activities and expenditure worth UGX.3.031Bn were fully quantified. One (1) output with a total of twenty four (24) activities and expenditure worth UGX.77.002Bn, was insufficiently quantified while six (6) outputs with a total of thirty five (35) activities and expenditure worth UGX 11.633Bn were not quantified at all. + + + +- I assessed the implementation of five (5) outputs that were fully quantified with a total of fourteen (14) activities worth UGX 3.031Bn and noted that; Three (3) outputs with eight (8) activities and expenditure worth UGX 1.694Bn were fully implemented. One (1) output with two (2) activities worth UGX.1.336Bn was partially implemented while one (1) output with four (4) activities with a budget of UGX.1.159Bn was not implemented. + +- The entity disclosed receivables to the tune of UGX.21,730,133,664. This reflected an increase in receivables by UGX.12,025,676,995 (124%) from the previous year’s balance of UGX.9,704,456,669. The accumulation of receivables impacts negatively on the operations of the University and the education service delivery. + + + +- The Statement of Financial Position showed accumulation of payables to the tune of UGX.1,215,592,931 as at 30th June 2021. I noted that these payables were accumulated in the current year and largely related to suppliers of goods and services. Accumulation of payables poses a risk of litigation and or loss of trust against the University from the suppliers of the goods and services. + + + + + +- The financial statements showed that MUBS was involved in several court cases/legal proceedings of a total value UGX.2,899,977,221 in various courts of law that remained pending as at the financial year end. There is a risk that in case of un-favourable rulings, the School may incur more financial losses. + +- A review of the statement of cash flow revealed payment of domestic arrears of UGX.9,601,334,785 against UGX.330,708,964 that was budgeted and warranted for payment of domestic arrears. Payment of + + + +285 + +--- + +|| funds to un-appropriated budget lines leads to non-implementation of budgeted for activities.  I noted that the School had five (5) pieces of land recorded in the assets register that have never been valued to ascertain the monetary value. I also noted that the land in Kireka had squatters and the possibility of reclaiming it may prove to be challenging. The encroachment on the School land was attributed to failure to gazette and develop the land. | +|---|---| +| 79 | The Norwegian Programme for Capacity Development In Higher Education And Research For Development (Norhed) 2020 Opinion Unqualified |  The Project ended, and as at the end of the six-month period ended 31st December, 2020, funds to the tune of USD. 272,213 (Nok2,054,787) remained unspent, and it was refunded to the Funders. | +| 80 | Environment for Development Initiative (Efd- Mak Centre) Project Makerere University for The Period 1st January - 31st December 2020 Opinion Unqualified |  No material Issues reported | +| 82 | Nurture: Research Training and Mentoring Program for Career Development of Faculty in Medical Education Partnership Initiative Institutions (Mepi) At Makerere University College of Health Sciences - 2018 Opinion Unqualified |  No material Issues reported | +|| SCIENCE AND INNOVATION SECTOR || +| 1. | Kiira Motors Corporation. 2019/2020 Opinion Unqualified |  I noted that at the time of the audit (June 2020), out of the planned six (6) strategic targets/goals, three (3) targets had been fully achieved and three (3) were partially achieved  100 acres of land, in Kiira Town Council, Jinja District land was only disclosed as a note without value attached and neither is it recorded in the assets register.  Failure to handover funds worth UGX.8,923,350,798 to Makerere University, since these funds had been specially released for Kiira Motors as a project under Makerere University.  I observed that only two of the nine (9) members of the Board of Directors, the Executive Chairperson and the Chief Executive Officer were duly appointed, leading to an inadequately constituted Board. | +| 2. | Presidential Initiative on Banana Industrial Development (PIBID). |  I noted that out of the 3 strategic targets, PIBID partially attained them, with the hope of fully attaining the targets by the end of the strategic | + + +286 + +--- + +|| 2019/2020 Opinion Unqualified | plan period.  NTR of UGX.99 Million was collected but not remitted to the consolidated fund and was instead spent at source.  It was observed that the entity has not taken off full operations as it remains cash strapped with limited subventions from the Ministry of Science Technology and innovation.  There was no evidence of the establishment of the Institutional Framework and Governance Board and the renewal of the appointment of the Board and Management Committee Members.  During the financial year, a total of UGX.29,230,320 was paid to the Executive Director as man-day allowance for signing 12 contracts on behalf of the organization, yet this is one of her roles for which a monthly salary is paid.  A total of UGX.272,694,000 was paid to various staff as allowances for working over the weekend.  The internal audit department had only one draft internal audit report with no evidence that the report was submitted to the Accounting Officer and Internal Auditor General.  PIBID recruited staff during the year 2019/2020 without an approved recruitment plan for the period.  Audit noted that PIBID did not have an approved salary structure on which it bases to pay individual staff  I noted that the entity lacked land titles for its land at Sanga (approximately 50 acres) and land where the water source is located at Kyamugambira (approximately 4 acres).  Management deducted UGX.633,205,884, as PAYE, from employee’s salaries but was not remitted to Uganda Revenue Authority.  It was observed that outstanding obligations to the National Security Fund at the end of the Financial Year 2019/2020 were UGX.829,409,254. | +|---|---|---| +| 3. | Uganda Institute of Communication Technology (UICT). 2019/2020 Opinion Unqualified |  I noted that out of the budgeted revenue of UGX.3,359,386,101 for the year 2019/2020, only UGX.1,893,012,622 was collected representing a performance of only 56% of the target.  An analysis of the outputs/activities that were quantified revealed that several activities remained un implemented.  I noted that there was over expenditure of UGX.34,136,741 on three budget lines.  I noted that the entity had outstanding trade and other receivables amounting to UGX.384,635,852.  I noted temporary staffs that have been working at the Institute for over 10 years with continuous contract renewals.  A review of the staff establishment showed that only 41 positions were filled out of the established 99 positions, leaving 58 positions vacant.  I noted that there was neither staff training nor an annual training plan in place.  Contrary to Section 34 (1) of the VAT Act 1996, I noted that UGX.4,534,592 worth of VAT remained outstanding as at 30th June 2020. | +| 4. | Ministry of Science and |  The Ministry of Science Technology and Innovation was merged with the | + + +287 + +--- + +|| Technology and Innovation. 2020/21 Opinion Unqualified | President’s Office effective July 2021. I however did not obtain evidence of a proper transition plan which has led to delayed disbursement of funding for subventions and independent projects. The merger further rendered 136 technical scientist staff redundant and were not paid emoluments by the end of November, 2021. I advised management to ensure that a smooth transition process is undertaken.  Out of the total budget for the financial year of UGX.150Bn, only UGX.144.6Bn was received by the Ministry resulting into a shortfall of UGX.5.737Bn (equivalent to 3.5% of the budget). Shortfalls in revenue result into non implementation of planned activities.  Out of 20 quantified activities worth UGX.105.9Bn that were assessed; 13 activities representing 65% were fully implemented, 5 activities representing 25% were partially implemented, while 2 activities representing 10% were not implemented. I advised management to roll over critical activities to subsequent years and ensure that they are implemented before the end of the National Development Plan III.  I noted that funds to the tune of UGX.834Mn were irregularly diverted from the activities on which they were budgeted and spent on other activities without seeking and obtaining the necessary approvals. I advised management to always ensure that proper authorization is obtained before implementing any unbudgeted activities.  Most of the research projects that had received funds for COVID-19 Vaccines and Treatments had not made much progress. Delays were majorly attributed to the late disbursement of funds and delayed delivery of Equipment. I advised management to ensure thorough due diligence before funds are allocated to the projects. | +|---|---|---| +| 5 | Kiira Motors Corporation. 2020/21 Opinion Unqualified |  Cabinet approved the roadmap for the commercialisation of the Kiira Electric vehicle project with a seed fund of UGX.143.7Bn to be availed over a period of 4 years effective 2018/19. Only 59% of the seed fund had been released in the previous three financial years, casting doubt as to whether the balance of UGX.58.4Bn (41%) would be released in the remaining one year. Failure to promptly fund the project, may lead to high-cost overruns and delays in realising the intended objectives. In addition, it may cast doubts on its sustainability.  KMC signed a Memorandum of Understanding (MOU) with National Enterprise Corporation (NEC) on the 15th January 2019 for the construction of the Kiira Vehicle Plant start-up facilities at the cost of UGX.63.64Bn. I noted that of the civil works that were to be completed by June 2021 (a period of 2 years and six (6) months), only 82% of those works had been completed due to insufficient funding. Underfunding has affected the progress of the plant construction which further delays the realisation of the intended objectives.  Ministry of Science, Technology and Innovation (represented by Kiira Motors Corporation) and Makerere University were collaborating in the Development of a Low-Cost Open Design Medical Ventilator named Bulamu, that could be manufactured locally. Although UGX.74Mn was received from Resilient Africa Network Ran Ltd towards the completion of the development of the Ventilator, the development was behind schedule. The delays may affect the realisation of intended objectives.  I noted that Makerere University received UGX.8.92Bn for the Kiira Motors Project between FY2012/13 and FY2015/16 for the construction of the Kiira Vehicle Plant Start-Up facilities in Jinja. However, the university had not released these funds for over eight years. I advised management | + + +288 + +--- + +|| to follow up on the matter with all responsible stakeholders. | +|---|---| +| 6 | Uganda National Council for Science and Technology. 2020/21 Opinion Unqualified |  I noted that out of the budgeted revenue of UGX.20.53Bn for 2020/21; UGX.24.59Bn was collected, representing a performance of 120% of the target.  Out of the 41 outputs assessed, 34 outputs representing 83% were fully implemented; four (4) outputs representing 10% were partially implemented, while three (3), representing 7%, were not implemented.  I noted that there was no evidence that the Accounting Officer prepared or submitted the annual budget performance reports of the Council by 31st July 2021 as required by regulations.  I noted that the entity did not prepare and submit the annual monitoring plans to the line Ministry for consolidation and onward transmission to the Ministry of Finance Economic and Economic Planning.  I established that UGX.94Mn was directly paid to staff’s personal bank accounts, yet this money could have been directly paid to the intended final recipients.  Out of the 85 planned activities assessed, 69 outputs/activities representing 81% were fully implemented; 9 outputs/activities representing 11% were partially implemented, while seven (7) outputs/activities representing 8% were not implemented at all.  I noted that the Council did not produce the annual report as required by the UNCST Act.  A review of the procurement file for the Supply of ICT Equipment under EDCTP-SCRECU Project revealed no evidence of any public bid opening session, which creates doubts as to whether the bidders attended the bid opening session.  Audit noted that the Council had outstanding Pay As You Earn (PAYE) payments relating to July 2019 and June 2020 amounting to UGX.45,457,013 as of 30th June 2021, which had not been remitted to Uganda Revenue Authority | +| 7 | Uganda Industrial Research Institute (UIRI). 2020/21 Opinion Unqualified |  I noted that 3.2 million masks were tested, treated and packaged, but the contract for the distribution of the reusable face masks was terminated after only 1.5 million masks had been consumed. The stock of over 1.7 million face masks has remained unutilised at the time of reporting. Government is likely to incur nugatory expenditure of almost UGX.4.08Bn in the event no market is obtained for the masks.  I noted that a number of machinery at the UIRI Namanve campus had been procured ahead of the proposed contract on mask production in the textile section. I noted that some equipment has remained unused/idle or has not been put to use due to lack of technical support from the supplier to operationalize the equipment. Management attributed the failure to the restrictions on international travel for the supplier’s technical staff to come.  The absence of a Board Chairperson has resulted in the failure of the Board to be constituted to meet and handle its mandate as provided for under Section 7 of the UIRI Act 2003. There is no evidence that the Board has ever met. There is a risk that the entity will lose strategic focus, since there is no supervisory oversight over its operations.  I observed that the Institute signed MoUs with the different incubatees in which funds have been spent to support the projects. However, the Institute has not signed any binding contracts with the participants, which | + + +289 + +--- + +|| makes dispute resolution difficult in case it arises. In addition, I noted that 50 of the 95 incubatees reviewed had expired MoUs at the time of reporting, while others were not paying NTR to the Institute as per agreement.  It was observed that UIRI paid a total of UGX.1.286Bn in gratuity, for which PAYE was wrongly computed, resulting into an overpayment of UGX.100,778,201 to staff. The staff over payments can lead to financial loss to government, in the event the Institute is unable to recover from the concerned staff. | +|---|---| +|| GENDER AND SOCIAL DEVELOPMENT SECTOR |  | +| 1 | Equal Opportunities Commission. 2020/21 Opinion Unqualified |  Out of the approved budget of UGX.12,071,754,441, a sum of UGX.12,016,602,345 was realized resulting into a shortfall of UGX. 55,152,096.00, representing 0.46%.  Out of the warrants of UGX.12,016,602,345, a sum of UGX.11,874,386,080 was spent indicating an absorption rate of 98.8 %. In addition, the Commission received off-budget financing to a tune of UGX.3.723 Bn which was not transferred to the consolidated fund.  I sampled 9 outputs with 95 activities worth UGX.10,990,686,400, representing 91% of the total budget, and noted that 1 output (11%) with 04 activities and expenditure worth UGX. 1.05Bn were fully quantified. In addition, Four (4) outputs with twenty-five 25) activities worth UGX.9.47 Bn were partially implemented. Out of the twenty-five (25) activities, the entity fully implemented sixteen (16) activities, two (2) activities were partially implemented, while seven (7) activities remained unimplemented.  I noted long outstanding receivables of UGX.211,105,359 from interdicted staff, and management has not yet instituted recovery measures due to the ongoing court cases.  I noted that funds to the tune of UGX.63,568,761 were irregularly re- allocated from the activities on which they were budgeted and spent on other activities without seeking and obtaining the necessary approvals.  I noted that 244 accumulated cases from 2017/18 are still pending as at 30th June 2021. Over the last three years 48% of the registered cases have remained un-concluded during the year of registration. In addition, the legal department that handles petitions is at a 50% staffing level.  I noted that the Commission has 81 approved staff positions, but only 50 (62%) positions were filled leaving 31 (31%) posts vacant.  I noted that the land and building on plot 7c, Luthuli close, Bugolobi where the EOC offices are located was transferred to the Commission by the Ministry of Gender, labour and Social Development. However, there was no trace of the original title, and there was no documentary evidence of handover of the title to EOC management.  I noted that the report on gender and equity compliance of the budget framework papers was produced in December 2020, eleven (11) months later than the Parliamentary submission of the required certification and responsive measures of February 2020, contrary to the PFMA.  I noted that the Commission lacked an independent Audit Committee, however, the functions of the Committee were being undertaken by the Commissioners who are part of the Commission management, thus posing serious challenges of conflict of interest. | + + +290 + +--- + +2 Ministry of Gender, Labour and Social Development (MoGLSD) +2020/21 + +Opinion + +Unqualified + +- Out of the approved budget of UGX. 153.01Bn, a sum of UGX.148.47Bn was warranted resulting into a shortfall of UGX.4.54Bn, representing 2.97% of the budget. + + + +- Out UGX.148.47Bn warranted, a sum of UGX.147.63Bn was spent indicating an absorption rate of 99.4%. + + + + + +- The Ministry received off-budget financing of UGX.11.598 Bn that was not appropriated by Parliament. + + + +- I sampled fifteen (15) outputs with a total of thirty (30) activities and expenditure worth UGX.105.44Bn, representing 87.76% of the total budget, and noted that 9 outputs (36%) with 11 activities worth UGX.79.33Bn were not quantified at all. In addition, out of the 16 quantified outputs with 20 activities assessed, 12 outputs (75%) were achieved, 15 activities (75%) were fully achieved/implemented, while 4 out puts with 5 activities representing 25% were partially achieved/implemented. + + + +- The Ministry had payables of UGX 37,394,048,164. Of these, a sum of UGX 36,075,485,050 (96.5%) related to funds not remitted to older persons under the Social Assistance Grant and Empowerment Programme (SAGE). + + + +- The Ministry made a cumulative total disbursement of UGX.113.22Bn to the Youth Livelihood Programme (YLP) by 30th June 2021 to 13,095 Youth groups. However, out of the expected recoverable funds of UGX.78.10Bn, only UGX.40.14Bn was recovered, leaving an outstanding amount of UGX.37.96Bn. + +- The Ministry recovered UGX.40.14Bn YLP funds from Local Governments, but only UGX.37.59Bn was transferred to the recovery account in BOU, leaving a balance of UGX.2.54Bn. + + + +- I noted that out of the total UGX. 37.59Bn received on the YLP revolving fund account in Bank of Uganda, only UGX.19.93Bn (53%) was revolved to other Youth Interest Groups, leaving a balance of UGX.17.65Bn (47%) not revolved. + + + +- Out of the budgeted UGX.188Bn for the Women Entrepreneur Programme (UWEP) for the period of five years since financial year 2015/16, only 135Bn (72%) had been released over the same period leading to a programme budget shortfall of UGX.53Bn (28%). + + + + + +- Out of UGX.27.61Bn due for recovery under UWEP by 30th June, 2021, a sum of UGX.20.19Bn was recovered leaving a balance of UGX.7.42Bn, thus indicating a recovery rate of 73%. + + + +- A sum of UGX.2.64Bn recovered under the UWEP could not be tagged to specific Local Governments and individual women groups. + + + +- The Labour advisory (LAB) Board did not function in the financial year under review to deliberate on matters affecting workers. This meant that no advisory services were extended to Government on matters of employment and industrial relations. + + + +- The Medical Arbitration Board (MAB) met only in one quarter during the entire financial year (February 2021) despite having over 150 pending cases awaiting arbitration as at 30th June 2021. I further noted that some cases have been pending for over 9 years. + + + +- I noted that Uganda has only three signed bilateral agreements in protection of migrant workers with Saudi Arabia, the Hashemite Kingdom of Jordan and the United Arab Emirates. Agreements with other + +291 + +--- + +|| destination countries such sa; Kuwaiti; Qatar; Bahrain; Afghanistan; Iraq; Somalia; Turkey and Oman are still under process. | +|---|---| +| 3 | National Council for People with Disabilities 2020/21 Opinion Unqualified |  Out of the approved budget of UGX.1,236,047,430 expected through the MOGLSD a sum of UGX.921,555,246 was realized resulting into a shortfall of UGX. 314,492,184, which is 75% of the budget. The shortfall has since led to 43% increase in payables relating to mainly unpaid gratuities to staff, totalling UGX 539,360,000 at year end.   Out of the total funds available of UGX.922,507,816 a sum of UGX.896,409,230 was spent indicating an absorption level of 97.3 %. The unspent balance of UGX. 26,098,586 related to the production of the disability status report activities that were not undertaken.   I sampled eleven (11) outputs with thirteen (13) activities worth UGX. 877,320,000, representing 71% of the total budget, and noted that 10 outputs (91%) with eleven (11) activities and expenditure worth UGX. 0.5899Bn were fully quantified. In addition, One (1) output with two (2) activities worth UGX.0.1221Bn was insufficiently quantified. Out of the ten (10) fully quantified outputs, three (3) outputs with three (3) activities worth UGX 0.0135Bn were fully implemented; six (6) outputs with seven (7) activities worth UGX 0.558Bnwere partially implemented and one (1) output with two (2) activities worth UGX 0.0184 were not implemented. The disability status report was not developed.   To-date, council has not fully taken over the property of the Uganda Foundation for the blind, as such land located at Kireka and Mayuge has since been encroached upon by unknown persons. Council is at risk of losing these and other properties due to delays in taking possession and title. | +| 4 | National Council for Older Persons (NCOP) 2020/21 Opinion Unqualified |  Out of the budgeted revenue of UGX. 726,000,000 for the financial year 2020/2021, UGX. 726,606,000 was received representing over 100% availability of funds for expenditure. This resulted in excess revenue of UGX. 606,000.  Out of the released funds amounting to UGX. 726,606,000 and unbudgeted Non-Tax revenue of UGX 1,198,590, only UGX.709,472,400 was spent by the entity resulting into an unspent balance of UGX. 18,332,190, representing absorption level of 97.5%. | +| 5 | Uganda National Cultural Centre 2020/21 Opinion Unqualified |  Out of the approved budget of UGX 15,407,572,000 a sum of UGX 13,245,324,701 was realized, resulting into a shortfall of UGX 2,162,247,299 representing 14% of the total budget.  Out of the total receipts of UGX 13,245,324,701, only UGX 10,700,171020 was spent by the entity resulting in an unspent balance of UGX. 2,545,147,681 representing absorption level of 81%.  For over four years, UGX 652,414,611 is still owed to a private company and this may result into litigation.  Following parliament’s pronouncement to collect UGX 1.6 Bn from a private company for the use of Nommo Gallery, Recovery measures have remained futile. UNCC has since stopped charging rent from the company. | + + +292 + +--- + +||  Covid-19 stimulus funds amounting to UGX 6.8 Bn were paid in two batches to music/Arts promoters, without clearly documented criteria. | +|---|---| +| 6 | The National Children Authority (NCA) 2020/21 Opinion Unqualified |  Out of the approved budget of UGX. 901,908,000 a sum of UGX. 826,112,357 was realized resulting into a shortfall of 104,143,334, representing 8.7%.  Out of the subvention receipts of UGX. 797,764,666 and non-tax revenue of UGX 28,347,691, a sum of UGX. 825,311,734 was spent indicating an absorption rate of 99.9%.  The Authority has no governing board and this has led to absence of policy and operational guidelines, and irregular short term employment contracts.  The report on the state of children under the lock down period revealed limited access of reading materials provided, increase in physical abuse, teenage pregnancies and in some instances death. This was due to inadequacies in law enforcement, capacity and resource constraints for extension works at district level and lack of community awareness on the child rights legal framework. | +| 7 | National Library of Uganda 2020/21 Opinion Unqualified |  Out of the approved budget of UGX.1,228,432,118 expected, a sum of UG.1,076,772,693 was realized resulting into a shortfall of UGX. 151,659,425, which is 87.6% of the budget. The shortfall has since led to increased rental and gratuity arrears.  Out of the total funds available of UGX. 1,076,772,693 a sum of UGX.1,041,279,372 was spent indicating an absorption level of 96.7%. The unspent balance of UGX. 35,493,321 was meant for the clearance costs of the periodical book donations from Book Aid International  I sampled eleven (11) outputs with a total of twelve (12) activities worth UGX.852,906,000, representing 69.4% of the total budget, and noted that Ten (10) outputs with a total of eleven (11) activities and expenditure worth UGX.0.801Bn were fully quantified. In addition, One (01) output with One (01) activity and expenditure worth UGX.0.012 Bn was not quantified. Out of the ten (10) fully quantified outputs, One (1) output with one (1) activity and expenditure worth UGX 0.010Bn was fully implemented. Six (06) outputs with seven (7) activities worth UGX.0.775Bn were partially implemented. Three (3) outputs with two (3) activities worth UGX.0.028Bn were not implemented. Review of the entity strategic plan 2016-2021 and production of a new one, and Sensitization of publishers on ISBN requirements were some of the activities not undertaken.  NLU has outstanding rental obligations of up to UGX.145,351,824 which only attract litigation.  2 Acres of land initially allocated to the NLU has been re-allocated without compensation. | +| 8 | National Women’s Council 2020/21 Opinion Unqualified |  Out of the approved budget of UGX. UGX.3,589,554,501, a sum of UGX.3,644,076,229 was realized resulting into a shortfall of UGX.31,238,272, representing 99% performance.  Out of the total released funds for the financial year of UGX.3,644,076,229, only UGX.3,597,158,934 was spent by the entity resulting into an unspent balance of UGX.46,917,295 representing an absorption level of 99%.  I noted that NWC did not link its budget to the strategic plan with activities worth UGX.1,686,300,000 that were specified in the entity | + + +293 + +--- + +|| strategic plan for implementation during the fourth year (20/21) of the plan not being included in the budget for FY 2020-2021. NWC strategic plan is not aligned to that of the MoGLSD and hence not aligned to the NDP III.  All nineteen (19) outputs with thirty-five (35) activities and expenditure of UGX.3,597,158,934 were not quantified to enable assessment extent of output and activity implementation.  No risk assessments or review of internal controls were undertaken on the council’s operational processes during the year. | +|---|---| +| 9 | National Youth Council 2020/21 Opinion Unqualified |  The entity budgeted to receive UGX.3.075Bn out of which UGX.2080Bn was received, resulting in a shortfall of UGX.0.995 Bn which is 32% of the budget. I also noted that out of the total receipts for the financial year of UGX 2.080 Bn, UGX 2.079 Bn was spent by the entity representing absorption level of 100%.  I noted that Eight (08) outputs with a total of Seventeen (17) activities and expenditure worth UGX.0.901 Bn were fully quantified. Fourteen (14) outputs with a total of Seventeen (17) activities and expenditure worth UGX 1.079 Bn were not quantified at all.  Two (02) output with six (6) activities and expenditure worth UGX 0.230 Bn were fully implemented. UGX.0.435 Bn were partially implemented. while two (2) outputs with six (6) activities worth UGX.0.236Bn were not implemented. The Accounting Officer stated that some of these activities were frustrated by the COVID-19 rules against public gatherings and meetings.  It was noted that Council did not have a risk management policy to ensure identification of perceived or actual threats it faces in its operations. In addition, there was no internal assessment or review of the internal controls done on the entity processes during the year. | +| 10 | National Social Security Fund 2020/21 Opinion Unqualified |  No significant matters to report on.  | +| 11 | UNFPA Funded Programme Ref; UGA08CMH/HIV/GBV/UFP/A YP/FGM implemented by the Ministry of Education and Sports, 2020 Opinion Unqualified |  No significant matters to report on. | +| 12 | UNFPA Funded Programme Ref: UGA08CMH/HIV/GBV/UFP/A YP/FGM implemented by The Ministry of Health, 2020 Opinion Unqualified |  No significant matters to report on. | + + +294 + +--- + +|||| +|---|---|---| +| 13 | UNFPA Funded Programme Ref; Uga08cmh/Hiv/Gbv/Ufp/Ayp /Fgm Implemented by The Ministry of Justice and Constitutional Affairs 2020 Opinion Unqualified |  No significant matters to report on.  | +| 14 | UNFPA Country Programme Component of Data and Populationdynamics Implemented by Ministry of Gender, Labour & Social Development (Mglsd) 2020 Opinion Unqualified |  No significant matters to report on. | +| 15 | Unfpa Funded Programmeme Component of Data and Population Dynamics Implemented by National Planning Authority (Npa) 2020 Opinion Unqualified |  No significant matters to report on. | +| 16 | Unfpa Funded Programme Component of Data and Population Dynamics Implemented by National Population Council (Npc) 2020 Opinion Unqualified |  No significant matters to report on. | +| 17 | Unfpa Funded Programme Component of Data and Population Dynamics Implemented by Uganda Bureau of Statistics 2020 Opinion Unqualified |  No significant matters to report on. | +|| HEALTH SECTOR || +| 1. | Centre for Disease Control and Prevention (CDC) Opinion Unqualified |  I noted a variance of US$.241,921 between the expenditure recorded in the accounting system and the expenditure reported in the quarterly financial reports for the year ended 30th September 2020. The expenditure reported per quarterly reports totaled US$.3,177,866 as opposed to the audited total expenditure of US$.2,935,945.  A review of budget performance i.e., the budget for the Cooperative | + + +295 + +--- + +||| Agreement Grant/ Notice of Award vs actual expenditures showed that management of CDC – UPS had executed most of the budgeted activities for the year ended 30th September 2020. The overall budget performance was 97%.  I further noted instances of budget over runs to a tune of US$.198,986 on three budget lines, a practise not permitted under the Cooperative Agreement.  From the tests conducted on a sample of non-payroll disbursements (i.e. supplies contract costs, Fringe Benefits, travel and other direct costs), I noted that cost totalling to US $ 54,135 were inadequately supported.   I noted that monthly financial returns are supposed to be submitted by the 15th day of the subsequent month, but this was not complied | +|---|---|---| +| 2 | Centre for Disease Control Project (PEPFAR Grant No: 6NU2GGH002221-01-01) 30 th September 2020 Opinion Unqualified |  I noted that there was low absorption of project funds. I noted that out of the total receipts; only USD 1,864,527 (UGX. 6,884,001,756) was utilized leaving a balance of USD. 868,756 (UGX. 3,207,525,075); representing an absorption level of 68.2%.  I observed that the Project Chart of Accounts was not aligned with the IFMS Accounting codes.  I noted significant delays in the approval and payment for most activities whereby the average lead time for processing a payment was over three (3) months | +| 3. | The Italian Support to the Ugandan Health Sector Strategic Plan III (HSSP III) and the Peace, Recovery and Development Plan (PRDP) for Northern Uganda - Karamoja Region Staff Housing Project (KRSHP) – Ministry of Health Project. 2019/20 Opinion Unqualified |  The entire budgeted revenue of UGX.10,543,205,000 in respect of external financing by the Government of the Italian Republic was not received during the year. As a result, no planned activity was implemented.  The project had a total of EUR.1,442,629.81 available for spending during the year represented by the opening balance. However, the entire amount remained un-absorbed by the close of the year.  The Project had UGX.120,000,000 for spending under Counterpart funding during the year which was all spent. However, out of the amount, UGX.100,000,000 was spent on non-project activities. | +| 4. | The Rehabilitation and Expansion of Kayunga and Yumbe Hospitals Project (KAYUP) -BADEA No. 0761, OFID No. 1628P and SFD No. 6/620 - Ministry of Health Project. 2019/20 |  The project experienced significant revenue shortfalls. Out of the expected receipts of USD 19,064,124.79, the project received funding totalling USD.8,252,401.61 constituting USD. 6,240,515.26 from external sources and USD.2,011,886.35 (UGX. 7,505,000,000) from GoU counterpart contribution. This translated into a budget shortfall of USD 10,811,723.18 (representing 56.71% of the approved budget).  There were delays in Project implementation. The project became effective on 16th April 2015 and was initially expected to be completed on 28th February 2020 which was later extended to 31st December 2021. However, the cumulative project progress was at 99.5% as at 30th June 2020\. Major delays were identified in the procurement and installation of Medical equipment, Ambulances, mini-buses and Pick-ups. | +| 5. | Uganda National Health Research Organization (UNHRO). |  UNHRO did not have an approved strategic plan for the period 2015/16 - 2019/20. The organization implemented a draft strategic plan for five years 2015/2016-2019/2020. I observed that the entity did not fully | + + +296 + +--- + +|| 2019/20 Opinion Unqualified | achieve any of the 6 strategic objectives in its expired draft strategic plan it has been implementing for the last five years.  I noted that the Organization did not have a governing Board during the year under review, after the term of office for all former members of the Board expired in 2016.  The Sessional Parliamentary Committee on Social services recommended the granting of a vote status to the Organization. This was followed by issuance of statutory instruments and the gazetting and commencement of the Uganda National Health Research Organisation Act, 2011 on the 22nd day of January 2016. However, it was noted that the Organization had not been granted a vote status by the time of audit.  No regulations were put in place to operationalize the UNHRO Act 2011. There were no regulations to guide UNHRO staff and stakeholders on matters such as regulation of the operations of the constituent research institutions, human resources, finance and administration, the general operations of the Organization.  The employment contract on file for the Director General expired in April 2018 and had not been renewed by the time of audit.  Only 12 out of the approved 26 positions in the Organizational Structure had been filled resulting into a staffing gap of 14 positions.  UNHRO had an annual work plan of UGX 2,080,000,000 for the financial year 2019/2020. However, I noted that the Organization was financed by a subvention of only UGX 240,000,000, through the Ministry of Health thereby resulting into a funding gap of UGX. 1,840,000,000.  A review of the Organization’s Scheme of service and staff contracts revealed that most of the institution staff were only paid their Basic salary leaving out the other packages that form part of their consolidated pay such as housing, transport and medical allowances. | +|---|---|---| +| 6. | Uganda Nurses and Midwives Council (UNMC). 2019/20 Opinion Qualified |  The Council made payments worth UGX 1,465,751,440 in the year ended 30th June 2019 which did not have supporting documents such as invoices, payment request forms and payment vouchers. I noted that no action had been taken by Management to account for the funds in the year ended 30th June 2020.  Management reported a financial loss of UGX.444,400,000 during the year. The amount was transferred from UNMC’s Stanbic Bank Account No. 9030005852950 to M/S RAM Engineering (U) Ltd under fraudulent circumstances.  Council failed to collect budgeted revenue amounting to UGX 557,669,951 during the year.  Council had a total of UGX. 7.77bn available for implementation of planned activities. The total receipts for the financial year under review were UGX 2.71 bn. However, only UGX 1.84bn was absorbed (representing 23.7%) leaving a balance of UGX. 5.93bn.  I observed that the Council partially implemented six (6) of its planned outputs with a total of Nineteen (19) activities worth UGX 268.41M. I also observed that seven (7) outputs with a total of twenty (20) activities were not implemented at all.  The entity did not prepare and submit the annual monitoring plans to MoFPED and NPA as required. Further, the entity did not prepare and submit quarterly monitoring reports to the MoFPED as required.  A review of the Organization’s Annual cumulative performance report and | + + +297 + +--- + +|| the entity work plan revealed cases where the reported set targets were not consistent with the set targets in the entity work plans.  I observed conflicting in the Council governing laws. Section 51(2) of the Public Finance Management Act, 2015 requires the Accounting Officer of a public corporation, within two months after the end of each financial year, to prepare and submit to the Accountant-General, a summary statement of financial performance of the public corporation and give a copy of the summary statement to the Secretary to the Treasury. On the contrary, Section 18 (1) Part IV of the Nurses and Midwives Act, 1996 requires the Council to keep proper books of accounts and prepare the annual financial statements of accounts for the immediately preceding financial year not later than three months in the following year. Conflict in the governing laws hampers effective execution of UNMC mandate.  Section 4 of the UNMC Act 1996, requires each Council member to be a seconded representative of a particular institution or body and must be appointed by the Minister. However, a review of Council Members records revealed that out of the seventeen (17) members, none of them were seconded representatives of their respective bodies.  Good Corporate Governance practices require separation of duties of board members to ensure their independence in the discharge of duties. On the contrary, a review of the composition of the Audit Committee revealed that Chairperson of the full council is also a member of the committee.  I noted that the Council had not been managed by a substantive Registrar since 2017. The current Registrar’s initial appointment ran from November 2018 to March 2019. However, management did not provide a valid appointment letter to confirm her appointment after March 2019.  A review of the Governing council minute ref FC/08/14/06/2020 revealed that council members were concerned about the significant delays in issuing of Practicing Certificates that hindered the recruitment of nurses in the industry. Furthermore, Management did not avail status reports on certificates that were produced.  Payment files and PPDA monthly reports revealed that supplies and service worth UGX 46,183,800 were procured and paid without going through the procurement process given that there were no LPOs or procurement documents availed to confirm that the supplier went through the procurement process.  UNMC has three (3) operational vehicles. However, a detailed review of the fleet management revealed that there were no log books maintained to track the vehicle movements as required by the regulations. Further, there were no records being maintained to keep track of vehicle history, performance, servicing, overheads, repairs and maintenance. | +|---|---| +| 7. | Uganda Sanitation Fund (USF) – Ministry of Health Project. 2019/20 Opinion Unqualified |  A review of the annual work plan and the performance reports for the Uganda Sanitation Fund revealed that there were inconsistencies in planned targets and those reported upon. Furthermore, the planned targets/outputs in the work plan lacked sufficient detail (description of outputs) to facilitate a meaningful comparison with the targets in the performance reports.  I observed that the Project did not implement twenty-seven (27) planned outputs with a total budget of UGX 1.506Bn, and Five (5) outputs with a total budget of UGX 0.476bn could not be verified in regard to implementation due to unclear targets.  There were delays in disbursement of funds to sub grantees. A review of | + + +298 + +--- + +|| the quarterly district performance work plans and reports submitted to the Ministry, revealed that, the quarterly release of funds from MOFPED was not done on time. As a result, Quarter 1 funds were disbursed in quarter 2, quarter 2 funds were disbursed in quarter 3, and quarter 3 funds disbursed in quarter 4.  Since the project’s inception, only a total of UGX.1.3bn (USD 386,259) out of the agreed GOU counterpart funding commitment of USD 2,000,000 had been disbursed to the districts resulting into a funding shortfall of USD 1,613,741.  The program’s average national progress on Open Defecation Free (ODF) target stood at 60.9% yet the project is in its last year of implementation. An Assessment of the 9-year targets (July 2011 to June 2020) revealed that out of the targeted 11,354 villages, only 9,632 achieved ODF targets, representing 84.8%; a total of 140 of the 400 targeted parishes representing 35% achieved ODF; and only 27 of the targeted 360 sub counties achieved the ODF target representing 7.5% achieved ODF status. | +|---|---| +| 8 | Allied Health Professionals Council. 2019/20 Opinion Unqualified |  The Governing Council stated that a material uncertainty existed regarding the continued operation of Allied Health Professionals Council in the foreseeable future.  Management’s judgement was informed by a letter from the PS - Ministry of Public Service to all Accounting Officers in which guidance was provided on the modalities for management of Public Institutions during the implementation of recommendations on the rationalization of Agencies and Public Expenditure.  I noted that out of the ten (10) sampled outputs with a total of ten (10) activities and expenditure of UGX. 3.127bn, only five (5) outputs with five (5) activities and expenditure worth UGX 3.017Bn were fully quantified. The balance of five (5) outputs with five (5) activities and expenditure worth UGX.011Bn were insufficiently quantified which made it difficult to assess extent of their delivery.  I observed that out of the five (5) outputs that were fully quantified, three (3) outputs with three (3) activities worth UGX. 1.918Bn were fully implemented. However, the remaining two (2) outputs with two (2) activities worth UGX.1.099Bn were partially implemented.  The Council fleet of six (6) sampled vehicles was not annually inspected during the three (3) year period under review to assess their mechanical condition and road worthiness.  Whereas the Council designated a Transport Officer responsible for transport matters, fuel registers were not maintained for all the six (6) motor vehicles sampled out of nine (9) vehicles held by the Council.  I noted that nine (9) out of the ten (10) Regional Offices were not allocated vehicles to facilitate their operations. | +| 9 | Joint Clinical Research Centre. 2019/20 Opinion Unqualified |  The entity budgeted to receive UGX 20,906,339,925 from development partners out of which UGX 19,707,530,000 was received resulting in a shortfall of UGX 1,198,809,925. In addition, out of budgeted local revenue of UGX 4,366,651,934, only UGX 2,693,800,000 was generated resulting into a shortfall of UGX 1,672,851,934.  I noted that all the seven (7) sampled outputs with a total of one hundred fifty-five (155) activities worth UGX 18.304Bn were partially implemented. Out of the one hundred fifty-five (155) activities, the entity fully implemented ninety-three (93) activities (60%), eighteen (18) | + + +299 + +--- + +|| activities (12%) were partially implemented while forty-four (44) activities (28%), were not implemented by the time of audit.  I reviewed the balance of ‘payables falling within one year’ reported in the Statement of Financial Position and Note 21 and noted an increase of UGX 121,010,000 from UGX 1,138,910,000 (30th June 2019) to UGX 1,259,920,000 (30th June 2020). I further reviewed the ageing of the payables and noted that included in the outstanding balance of UGX 1,259,920,000 are payables worth UGX 357,139,495 that had remained outstanding for over 90 days.  Seventeen (17) running motor vehicles which were fully depreciated according to the JCRC Fleet Management Policy and had zero net book value in the schedule of fixed assets were still in use. The entity did not revalue or make annual reviews of its expectations with regard to the residual values and useful lives of the vehicles in question resulting into under valuation/understatement of non-current assets in use in the statement of financial position.  The Principal Private Secretary to His Excellency the President’s letter ref: PO/1 dated 12th February 2019 directed the Hon. Minister of Finance, Planning & Economic Development to increase Government funding to the Centre from UGX.240 million to UGX.5 billion annually in the subsequent years, that is, with effect from the Financial Year 2019/20. According to the various communications by the Centre’s Executive Director, the increment in funding was necessitated by the declining donor support.  However, the no-objection for the implementation of the directive was only granted to the PS/ST by the PS MOH through letter ref: 45/415/01 dated 4th February 2020. This was when the financial year 2019/20 budget was in the third quarter of implementation.  Contrary to the PPDA requirements, the entity delayed to submit ten (10) out of twelve (12) monthly procurement and disposal reports to the Authority for the financial year under review.  The Centre had a procurement plan worth for the year under review. I noted that out of the planned procurements worth UGX 6,956,028,077, procurements worth UGX 5,434,128,077 (78%) were implemented while those worth UGX 1,521,900,000 (22%) were not conducted. | +|---|---| +| 10 | Uganda Medical and Dental Practitioners Council. 2019/20 Opinion Unqualified |  The Governing Council stated that a material uncertainty existed regarding the continued operation of Allied Health Professionals Council in the foreseeable future.  Management’s judgement was informed by a letter from the PS - Ministry of Public Service to all Accounting Officers in which guidance was provided on the modalities for management of Public Institutions during the implementation of recommendations on the rationalization of Agencies and Public Expenditure.  I noted that out of the budgeted Non-Tax revenue UGX.2,891,430,000, only UGX.1,650,811,279 was realized during the year under review (representing 57% performance). This hampered effective service delivery.  Contrary to the statutory deadline of 31st day of March for the publication all up-to-date registers in the gazette, registers for 2020 had not been published in the gazette by the time of audit in November 2020. | +| 11 | The Rehabilitation and Expansion of Kayunga and |  The project experienced significant revenue shortfalls. Out of the expected receipts of USD 19,064,124.79, the project received funding | + + +300 + +--- + +|| Yumbe Hospitals Project (KAYUP) -BADEA No. 0761, OFID No. 1628P and SFD No. 6/620 – Ministry of Health Project. 2019/20 Opinion Unqualified | totalling USD.8,252,401.61 constituting USD. 6,240,515.26 from external sources and USD.2,011,886.35 (UGX. 7,505,000,000) from GoU counterpart contribution. This translated into a budget shortfall of USD 10,811,723.18 (representing 56.71% of the approved budget).  There were delays in Project implementation. The project became effective on 16th April 2015 and was initially expected to be completed on 28th February 2020 which was later extended to 31st December 2021. However, the cumulative project progress was at 99.5% as at 30th June 2020\. Major delays were identified in the procurement and installation of Medical equipment, Ambulances, mini-buses and Pick-ups. | +|---|---|---| +| 12 | Uganda-Spain Debt Swap Project. 2019/20 Opinion Unqualified |  I noted that out of the two (2) planned project outputs for the year, one (1) output was fully implemented while one (1) output was partially implemented. Management attributed the level of performance to delayed commencement of the preparation of the detailed designs for the refurbishment and equipping of Busolwe General Hospital which involved approval of extra charges for the consultant to revise the site survey report. According to management, the COVID-19 pandemic further affected the operations of the Consultant.  During the year under review, the Project received a sum of UGX 15.69Bn of which UGX.10.63Bn was spent resulting in an unspent balance of UGX.5.06Bn (representing an absorption level of 67.8%). | +| 13 | Uganda Reproductive Health Voucher Project (URHVP) GPOBA Grant Number TF015995. 2019/20 Opinion Unqualified |  A review of the project financial statements as at 30th June 2020 (Note 2 & Annex 6.0) together with underlying financial records revealed that the project had bank balances of USD 49.85 and UGX.792 in Bank of Uganda at the time of closure. However, Management did not avail documentary proof of closure of these Accounts at the end of the project when sought.  A review of the agent records revealed that by end of project closure, various assets acquired under the project had not been handed over to the client as per the agreement. | +| 14 | Butabika National Mental Referral Hospital. Opinion Unqualified |  The entity budgeted to collect NTR of UGX 1.24bn during the year under review. However, the hospital collected UGX. 1.15bn thereby resulting into a shortfall of UGX 0.09bn.  The Hospital received the entire revised annual budget of UGX 17.023bn out of which UGX 16.551bn was spent resulting in unutilized funds of UGX 0.472bn. The unspent balance at the end of the financial year was subsequently swept back to the consolidated fund account.  I noted that the entity submitted all the quarterly performance reports after the prescribed deadline. The Accounting Officer explained that due to COVID-19 restrictions, the support offices were operating at 10% which led to delays in preparation and submission of the quarterly performance reports.  According to the patient admission schedule and the strategic plan, the Hospital currently handles between 750 and 780 in-patients per month compared to its bed capacity of 550 patients. This implies that 200 to 230 admitted patients either share beds or sleep on the floor.  I noted that UGX.93,717,182 was utilized for repairs and service for vehicles during the year under review. However, there were no repair and service analysis registers for the 13 vehicles that were maintained. Furthermore, it was observed that the Hospital Transport Officer did not maintain service charts for all the 13 vehicles. | +| 15 | Kawempe National Referral |  The entity budgeted to collect NTR of UGX. 449m during the year under | + + +301 + +--- + +|| Hospital. Opinion Unqualified | review, and UGX. 451m was realized, representing a performance of 100.4% of the target.  Out of the total receipts for the financial year of UGX 11.723 bn, UGX. 11.385Bn was spent by the entity resulting in an unspent balance of UGX.0.337Bn (representing an absorption level of 97.1%). The unspent balance at the end of the financial year was subsequently swept back to the consolidated fund account.  I noted that all the eight (8) outputs selected for budget performance assessment with a total of eleven (11) activities and actual expenditure of UGX 4.6bn were fully quantified. This therefore enabled me to assess the Hospital’s performance during the year under review.  Out of the eight (8) sampled outputs, two (2) outputs were fully implemented while six (6) were partially implemented. I further noted that out of the planned eleven (11) activities under the sampled outputs, two (2) activities were fully achieved while nine (9) were partially achieved.  A total of UGX 36,870,179 worth of expenditure was charged on other than the budget lines on which the funds were appropriated without seeking the necessary approval from the relevant authorities.  I noted that the Hospital submitted all the quarterly performance reports beyond the prescribed deadlines.  From my review of the annual performance reports and physical inspections/verification of outputs reported, I did not observe inconsistencies in the reported performance.  I noted that the Hospital accumulated payables/domestic arrears to tune of UGX. 799,186,746 up from UGX. 365,151,250 as at 30th June 2020.  I noted that whereas the Board of Survey Report for the year ended 30th June 2021 established that the Hospital had a closing inventory of various items; this state of affairs was not disclosed as part of the Financial Statements under Annex (ii)-Schedule of Inventory, thereby rendering the financial statements incomplete.  It was noted that the Hospital stored expired medicines without disposing them as required by the law. Out of the seventy four (74) items of expired drugs, I observed that thirty six (36) had expired by end of December 2020 (representing 49%). Under the circumstances, lives of patients are threatened by the existence of expired medicines at the hospital premises.  I noted that the Referral Hospital was heavily congested with patients crowded in the wards and some sleeping on the floors. This was further evidenced by the data collected on Bed Occupancy Rates which showed an average BOR of 113% for the year under review. Congestion was also observed in the stores where some items were placed directly on the floor exposing them to damage.  From a review of payments and procurements made during the year, I noted that procurements of goods worth UGX 187,406,417 were not supported with ledgers in the stores to track delivery and utilization of the accountable inventories procured. | +|---|---|---| +| 16 | Kiruddu National Referral Hospital. Opinion Unqualified |  I noted that the Hospital’s 5-Year Strategic Plan (FY 2020/21-2024/25) had been approved by National Planning Authority (NPA) by the time of audit.  The entity budgeted to collect NTR of UGX. 1,520,000,000 during the | + + +302 + +--- + +||| year under review, and UGX. 719,423,137 was realized, representing a performance of 46.9% of the target.  Out of the total warrants of UGX.18.8Bn received during the financial year, UGX. 18.3Bn was spent by the entity resulting in an unspent balance of UGX. 0.5Bn (representing an absorption level of 97.3%). The unspent funds were swept back to the consolidated fund as required by the PFMA.  Out of the ten (10) outputs selected for budget performance assessment with a total of twenty four (24) activities and expenditure of UGX 12.16bn, I noted that seven (7) outputs with a total of fourteen (14) activities and expenditure worth UGX 9.99bn were fully quantified. Two (2) outputs with a total of eight (8) activities and expenditure worth UGX 1.9Bn, was insufficiently quantified. One (1) output with a total of two (2) activities and expenditure worth UGX 0.27bn were not quantified at all to enable performance assessment.  Out of the seven (7) outputs that were fully quantified with a total of fourteen (14) activities, four (4) outputs with a total of six (6) activities were fully implemented. Three (3) outputs with a total of eight (8) activities worth UGX 8.45bn were partially implemented. Out of the eight (08) activities, the entity fully implemented two (02) activities (25%) while six (06) activities (75%) remained partially implemented.  I noted that the Hospital submitted three (3) out of four (4) quarterly performance reports to Treasury within the prescribed deadlines. However, there was no documentary proof of preparation and submission of annual monitoring plans and reports to MoFPED and NPA as required. I further noted inconsistences in the financial information reported in the performance reports when compared with the financial statements.  A review of drugs supply chain management revealed that on several occasions there were drug stock-outs which left Kiruddu Hospital without several essential, vital and necessary drugs.  Inspection of the hospital drug stores revealed that some drugs/chemicals had expired in the Hospital stores. This could have been due to low utilization rates, receipt of drugs with short shelf life or placement of orders that do not match the usage patterns.  I noted that 55 new recruits were not cleared by Ministry of Public Service as required. The Accounting Officer attributed the anomaly to the need to fill critical vacant positions in the hospital. | +|---|---|---| +| 17 | National Drug Authority. Opinion Unqualified |  NDA had an approved five-year strategic plan FY 2020/21-2024/25 which was well aligned to the National Development Plan in terms of timelines.  The financial statements indicated that NTR amounting to UGX 70.73bn was collected during the year against a budget of UGX.68.75bn representing 103% performance.  Out of the total revenue of UGX.70.73bn realized during the financial year, UGX.58.43bn was spent by the entity resulting in balance of UGX.12.3bn representing an absorption level of 83%.  The Authority did not implement some of its key planned activities during the year which included; herbal inspections, collection of microbiology samples and articles on veterinary drug regulation.  The Authority had receivables and prepayments to the tune UGX 42,607,112,126 at the end of the financial year, out of which UGX 37,748,567,840 (88.6%) was due from the Ministry of Health. The presence of significant balances of outstanding receivables poses the risk | + + +303 + +--- + +|| of non-recoverability, thus denying the Authority realization of revenue for achievement of its objectives.  Seventeen (17) running motor vehicles were fully depreciated during the previous year, reflected at zero book value and removed from the Statement of Financial Position. Removal from the statement of financial position of assets still in use and with no evidence that future economic benefits will not be expected from disposal of the same, misrepresents the entity’s financial position.  There was slow progress on the civil works NDA laboratory Tower. Further, works for the amended building plans for the NDA laboratory Tower had commenced by the time of audit in August 2021 prior to approval by the Metropolitan Physical Planning Authority contrary to Section 22 (1f) of the KCCA Act 2010.  The Authority fully paid UGX.343,694,683 in advance to providers awarded contracts for the supply of analytical equipment without obtaining appropriate advance payment security. I also noted that the Authority signed contracts to a tune of USD 14,872.8 with two domestic suppliers in foreign currency. | +|---|---| +| 18 | Uganda National Health Research Organization. Opinion Unqualified |  The Sessional Parliamentary Committee on Social services recommended the granting of a vote status to the Organization. This was followed by issuance of statutory instruments and the gazetting and commencement of the Uganda National Health Research Organisation Act, 2011 on the 22nd day of January 2016. However, I noted that the Organization had not been granted a vote status by the time of audit.  I noted that the Organization did not have a governing Board during the year under review, after the term of office for all former members of the Board expired in 2016.  The employment contract on file for the Director General expired in April 2018 and had not been renewed by the time of audit.  Only 12 out of the approved 26 positions in the Organizational Structure had been filled resulting into a staffing gap of 14 positions.  The Organization was financed by a subvention of only UGX.240m out of which 94% was earmarked for wage leaving only 6% for operational costs. | +| 19 | Uganda National Health Research Organization. Opinion Unqualified |  The Sessional Parliamentary Committee on Social services recommended the granting of a vote status to the Organization. This was followed by issuance of statutory instruments and the gazetting and commencement of the Uganda National Health Research Organisation Act, 2011 on the 22nd day of January 2016. However, I noted that the Organization had not been granted a vote status by the time of audit.  I noted that the Organization did not have a governing Board during the year under review, after the term of office for all former members of the Board expired in 2016.  The employment contract on file for the Director General expired in April 2018 and had not been renewed by the time of audit.  Only 12 out of the approved 26 positions in the Organizational Structure had been filled resulting into a staffing gap of 14 positions.  The Organization was financed by a subvention of only UGX.240m out of which 94% was earmarked for wage leaving only 6% for operational cos | + + +304 + +--- + +| 20 | Joint Clinical Research Centre (JCRC). Opinion Unqualified |  JCRC reported trade and other receivables of UGX.4,210,400,000. Out of this UGX.95,254,972 related to the previous financial year. I noted that JCRC did not make any provision for bad debts as required by IFRS 9 and its Manual. Failure to make provisions may result into overstating reported receivables due to unaccounted for risks of non-recoverability. In addition, there was no evidence from the Finance Committee that a review of the bad debts position was annually done. Management explained that in addition to sending out constant reminders to the listed debtors, Management would review the list further for presentation to the Finance Committee of the Board. I advised the Accounting officer to make the required provisions for bad debts in accordance with Standards and the Manual  I noted that JCRC signed contracts with local service providers in foreign currency to a tune of USD 32,258.7. The contracts were for supply of Bone density kits (USD 25,515); supply of Hematology reagents (USD 2,060), and; for internet services (USD 4,683). I advised the Accounting Officer to take heed of the PS/ST recommendation and ensure that all local contracts are awarded in Uganda Shillings. | +|---|---|---| +| 21 | Uganda Blood Transfusion Services (UBTS). Opinion Unqualified |  I noted that the entity had prepared and approved its plan. However, approval and certification had not yet been obtained from the National Planning Authority.  Whereas the entity did not budget for collection of NTR, UGX.8,550,000 was collected and remitted to the Treasury during the year under review. Out of the total receipts from Treasury of UGX.17.43Bn, only UGX.17.20Bn was spent by the entity resulting in an unspent balance of UGX.0.23Bn (representing an absorption level of 98.68%). The unspent balance at the end of the financial year was subsequently swept back to the consolidated fund account.  Only one (1) output with a total of two (2) activities and expenditure of UGX 7.65bn was fully quantified out of the seven (7) outputs with a total of sixteen (16) activities and expenditure of UGX 11.99bn sampled for assessment. All the two (2) quantified activities under this output were partially implemented.  I noted that funds to the tune of UGX 20,829,692 were irregularly reallocated from the activities on which they were budgeted and spent on other activities without seeking and obtaining the necessary approvals.  I noted that the entity submitted performance reports for Q1, Q2, Q3, Q4 after the prescribed deadline.  The entity registered an upward trend in accumulation of domestic arrears between the FYs 2016/2017 (UGX.76,296,521), 2019/2020 (UGX.430,885,758) and 2020/21 9 (UGX.512,086,423). Only UGX.97,730,535 was provided in the annual budget to settle domestic arrears.  A review of the staff structure of Uganda Blood Transfusion Services revealed that out of the approved structure of 424, only 299 positions are filled leaving a variance of 125 staff positions vacant.  I noted that apart from Nakasero (Freehold Tenure), Gulu (Leasehold) and Mbarara (Freehold Tenure) Blood Banks, there were no title deeds, memoranda of understanding or lease agreements for the land currently occupied by the four (4) Regional Blood Banks of Arua, Mbale, Kitovu and Fort Portal.  In addition, there were inconsistencies with the plot number wrongly | + + +305 + +--- + +|| reflected as Plot 27 instead of 2F on the cover page of the title deed for the land currently occupied by Nakasero Blood Bank. Management wrote to the Secretary Uganda Land Commission about the anomaly in a letter dated 5/4/2012 Reference number UBTS/ADM/LT/01, no response had been received to date. Furthermore, 0.079 hectares of Nakasero Blood Bank were reported to have been encroached on by the fence of Pearl of Africa Hotel on plots 2E and 7A1-9A1 as per the boundary opening reports of 23rd November 2009 (S.M Geoteam ltd) and 2nd August 2013 (Terrain Consult) who had been appointed by UBTS.  I noted a one year’s delayed execution of works for the completion of the remodelling of a store at Nakasero Blood Bank. A sum of UGX 2.86bn had so far been paid against the contract sum of UGX.3.77bn.  I noted that a total of UGX.0.968Bn was spent on the Blood Safety Information System during the year. Whereas there was information on blood collected, stored and issued during the year, there was no information on how the 224,303 units of blood that had been issued to the different health facilities had been utilized. | +|---|---| +| 22 | Uganda Virus Research Institute. Opinion Unqualified |  I noted that the entity had prepared and approved its plan. However, approval and certification had not yet been obtained from the National Planning Authority.  I noted that the entity did not budget or collect NTR during the year under review.  This was attributed to the breakdown of the Nitrogen plant three years ago which was the main source of revenue. However, the Institute received funds from GoU and was in the process of procuring a new Nitrogen plant.  The Institute received the entire budget of UGX.8.97bn out of which UGX.8.95bn was spent by the entity resulting in an unspent balance of UGX.20.76m (representing an absorption level of 98.8%). The unspent balance at the end of the financial year was subsequently swept back to the consolidated fund account.  Two (2) outputs with a total of two (2) activities and expenditure of UGX 2.23bn were fully quantified out of the eight (8) outputs with a total of twenty-two (22) activities and expenditure of UGX 8.20bn sampled for assessment. None of the two (2) quantified activities under the two (2) outputs was implemented at all.  Two (2) outputs with a total of seven (7) activities and expenditure worth UGX.4.99Bn were insufficiently quantified. Out of the seven (7) activities, two (2) activities (29%) was quantified, while the balance of five (5) activities (71%) were not clearly quantified to enable the assessment of performance.  Four (4) outputs with a total of thirteen (13) activities and expenditure worth UGX 980m were not quantified at all. That is none of the thirteen (13) activities within these outputs was quantified at all.  I noted that funds to the tune of UGX 53,300,000 were irregularly reallocated from the activities on which they were budgeted and spent on other activities without seeking and obtaining the necessary approvals.  I noted that the entity submitted performance reports for Q1, Q2, Q3, Q4 after the prescribed deadline. | + + +306 + +--- + +||  Payables worth UGX 0.409bn remained outstanding from financial year ended 30th June 2019 to-date. I noted that management did not provide for the settlement of domestic arears in the approved budget estimates for the year under review.  A review of the staff structure of Uganda Virus Research Institute revealed that out of the approved structure of 237, only 75 positions were filled leaving 162 staff positions vacant.  A review of a sample of 19 procurement files with a total value of UGX.1.61Bn revealed that the Institute did not require suppliers to provide any form of an acceptable performance guarantee for procurements worth UGX.1.42Bn.  Analysis of payment records and review of staff files revealed that 5 staff of the Institution had retired but had not yet accessed the pension payroll although the six months pensions processing period had elapsed. | +|---|---| +| 23 | National Medical Stores. Opinion Unqualified |  I noted that the Corporation budgeted to collect NTR of UGX.56.37Bn during the year under review. Out of this, only UGX.39.80Bn was collected thereby resulting into a shortfall of UGX.16.57bn.  The Corporation budgeted to receive UGX.470,314,151,130 from treasury. However, UGX.456,568,068,061 was warranted resulting into a budget shortfall of UGX.13,746,083,069 (representing 2.9% of the revised approved budget).  Out of the nine (9) outputs with a total of nine (9) activities and expenditure of UGX.312.5Bn sampled for assessment, I noted that all the nine (9) outputs with a total of nine (9) activities were fully quantified. That is, all the nine (9) activities (100%) within these outputs were clearly quantified to enable assessment of performance. All the nine (9) outputs with a total of nine (9) activities (100%) were fully implemented.  I noted that the Corporation submitted performance reports for Q1, Q2, Q3, Q4 within the prescribed deadlines.  From my review of the annual cumulative performance reports and physical inspections/verification of performance, I did not observe any inconsistencies with the results of my verification.  No justification was provided by management for the significant reduction in the value of Freehold land (UGX 3.91bn; representing 56%) and Stores Equipment (UGX. 5.3bn; representing 135%) within a period of 3 years.  The value of Non-viable medical commodities stood at UGX.5.8bn as at 30th June 2021. I noted that management continued to keep these stocks in the stores.  The Corporation’s receivables stood at UGX.17,537,847,000 as at 30th June 2021. A review of the debtor’s movement schedule revealed that the Ministry of Health was the biggest debtor at UGX.17,325,064,059 (MOH, IDI, LLINs, World Bank and Global Fund), followed by Centre for Disease Control (CDC) project at UGX.8,091,650,000 and container deposits of UGX.408,000,000. This resulted into an accumulated provision for bad and doubtful debts of UGX.25,824,715,000 which according to management was awaiting clearance by MoFPED to be written off. | +| 24 | Uganda Heart Institute. Opinion Unqualified |  I noted that the Hospital’s 5-Year Strategic Plan (FY 2020/21 -2024/25) was approved by National Planning Authority (NPA) on 27th September 2021 vide certificate no. 26(3).  Out of eight (8) outputs with a total of forty eight (48) activities and expenditure of UGX.11.50Bn sampled for assessment, I noted that four | + + +307 + +--- + +|| (4) outputs with a total of seventeen (17) activities and expenditure worth UGX 7.196Bn were fully quantified; four (4) outputs with a total of thirty one (31) activities and expenditure worth UGX 4.306Bn were insufficiently quantified.  I assessed the extent of delivery of the 4 outputs that were fully quantified and noted that one (1) output with a total of two (2) activities worth UGX 0.439Bn was fully implemented.  Two (2) outputs with a total of fourteen (14) activities worth UGX 6.606Bn were partially implemented. Out of the fourteen (14) activities, the entity fully implemented four (4) (29%) activities; seven (7) activities (50%) were partially implemented while three (3) (21%) activities remained unimplemented. One (1) output with only one (1) activity worth 0.15Bn was not implemented at all.  I noted that funds to the tune of UGX. 24.13m were irregularly re- allocated from the activities on which they were budgeted and spent on other activities without seeking and obtaining the necessary approvals.  The entity submitted performance reports for Q1, Q2, Q3, and Q4 after the prescribed deadline. In addition, I did not obtain evidence to confirm that the Accounting Officer Prepared Monitoring Plans and reports which are important in ensuring that the budget performs as expected.  From my review of the annual cumulative performance reports and physical inspections/verification of performance, I did not observe any inconsistencies with the results of my verification.  I noted that insufficient budget provisions (UGX.73,885,634) were made towards settlement of domestic arrears yet the arrears brought forward from the previous year were UGX.1,429,802,685.  The Institute had NTR debtors to the tune of UGX. 282.97m at the end of the financial year under review. These were receivables from various insurance companies, MDAs and institutions for services rendered by the Institute.  The Land Commission received a presidential directive to allocate Uganda Heart Institute 10 acres of land in Nakawa Naguru to facilitate the setting up of a Cardiac Centre of Excellence with a 250 bed hospital. However, I noted that during the year there were encumbrances on part of the allocated land which resulted in the loss of 3 acres after consensual withdrawal of a law suit.  Whereas the total contract sum of UGX. 3.5bn had been paid out for the renovation of the Intensive Care Unit on Block 1C, the works remained incomplete at the time of writing this report.  A review of the staff structure of Uganda Heart Institute revealed that out of the approved structure of 189, only 160 positions were filled leaving 29 staff positions vacant. | +|---|---| +| 25 | Mulago Specialized Women & Neonatal Hospital. Opinion Unqualified |  The entity budgeted to collect NTR of UGX. 7bn during the year under review, and UGX. 3.64bn was realized, representing a performance of 52% of the target.  Out of the total receipts for the financial year of UGX 21.93 bn, UGX. 20.93Bn was spent by the entity resulting in an unspent balance of UGX.0.997Bn (representing an absorption level of 95.5%). The unspent balance at the end of the financial year was subsequently swept back to the consolidated fund account.  I noted that out of the sampled twelve (12) outputs with a total of twenty | + + +308 + +--- + +|| five (25) activities and expenditure of UGX 17.7bn, only eight (8) outputs with a total of fourteen (14) activities worth UGX 9.1bn were fully quantified. Two (2) outputs with a total of nine (9) activities and expenditure worth UGX.8Bn, was insufficiently quantified. I observed that out of the nine (9) activities, six (6) activities (66.7%) were quantified, while the balance of three (3) activities (33.3%) were not clearly quantified to enable the assessment of performance. Two (2) outputs with a total of two (2) activities and expenditure worth UGX 0.550Bn were not quantified at all. That is none of the two (2) activities within these outputs was quantified at all.  Out of the eight (8) fully quantified outputs with a total of fourteen (14) activities and expenditure worth UGX.9.1Bn, seven (7) outputs with ten (10) activities and expenditure worth UGX 4.8Bn were fully implemented. One (1) output with four (4) activities worth UGX.4.4Bn was partially implemented. Out of the four (4) activities, the entity fully implemented three (3) activities; one (1) activity was partially implemented, while no activity remained unimplemented.  A well equipped kitchen with boilers, fridges, gas cookers, cabinets, a chimney and a full outer gas tank was constructed at the Hospital. However, it was not yet in use at the time of audit.  I noted that the Hospital submitted all the quarterly performance reports beyond the prescribed deadlines.  From my review of the annual performance reports and physical inspections/verification of outputs reported, I did not observe inconsistencies in the reported performance.  I noted that the hospital reported a payables figure of UGX.2,180,857,756 of which UGX. 427,844,778 related to PAYE which was deducted but remained unremitted by close of the year under review. | +|---|---| +| 26 | Mulago National Referral Hospital. 2020/21 Opinion Qualified |  Transfers of UGX.3,867,161,000 received from the Ministry of Health were not recognized in the Statement of Financial Performance. The receipts were also not reported in Note 5 to the Financial Statements. It was further noted that the funds which were received on the Hospital’s Infrastructure Development Account were transfers from Ministry of Health meant for intern allowances.  The Hospital had liabilities of UGX 2,952,608,319 from the previous year (FY 2019/20) in respect of payables (UGX 2,304,366,476) and deposits (UGX 648,241,843). However, payments totalling to UGX3,775,748,845 in respect of the liabilities were made. The Hospital therefore made payments for non-existent liabilities amounting to UGX 1,471,382,369.  Management made an adjustment to the opening balance of payables amounting to UGX 2,097,368,767 (statement of outstanding commitments on Page 33 of the financial statements). However, there was no explanation provided on the cause of the adjustment or the composition of this figure.  The Hospital misstated transfers to the Treasury during the year by UGX 1,296,483,686 in its financial statements.  The entity did not have a strategic plan approved by NPA during the year.  The Hospital did not budget to collect NTR during the year under review. However, the financial statements indicated that NTR amounting to UGX. 1,808,626,491 was collected during the year.  Out of the total warrants of UGX.63,573,318,357 received during the financial year, UGX.59,379,356,427 was spent by the entity resulting in | + + +309 + +--- + +|| an unspent balance of UGX.4,193,961,930 representing an absorption level of 93.4%.  The Hospital spent UGX. 474,479,100 on refurbishment of the MRI machine. It was noted that the MRI machine was delivered and installed in 2018 and has since never been put to use.  Works under the construction contract for 150 units of staff houses at the Hospital of UGX. 30,228,600,856 have been delayed.  I noted that vital medical equipment was in poor working condition, while others were fully not functional and required replacement. The equipment included: autoclaves in the central sterile service department; patient monitors in the accident and emergency surgical unit; blood coagulation machine in the clinical laboratory unit; ICU beds in the intensive care unit, and CT machine in the Radiology department. | +|---|---| +| 27 | Allied Health Professionals Council (AHPC). 2020/21 |  The Council did not have a strategic plan approved by NPA during the year.  The entity budgeted to collect internal revenue of UGX.4.771Bn during the year under review. Out of this, only UGX.3.783Bn was realized, representing a performance of 79% of the target.  The Council did not implement some of its planned activities during the year. Examples include: Verification and publication of Allied Health Professionals in the Gazette; Licensing of private Allied Health units and training institutions, and; ICT support supervision in regions.  The Governing Council stated that a material uncertainty existed regarding the continued operation of Allied Health Professionals Council in the foreseeable future. This was based on the communication by the Permanent Secretary Ministry of Public Service (PS/MoPS) to the Permanent Secretary Ministry of Health among others in which the PS/MoPS communicated a Cabinet decision of 22nd February 2021 that required the commencement of merging, rationalization and mainstreaming of Government Agencies between financial years 2021/2022 and 2022/2023.  I noted that it takes an average of 3 months for the Council to process registration certificates which seemed to be too long. Delayed processing of registration certificates frustrates applicants and may make some to lose opportunities.  The Council did not make any publication in the Gazette during the year under review, contrary to The Allied Health Professionals’ Act (cap 268). The unsuspecting public was not protected from public from quack practitioners. | +| 28 | Health Service Commission. 2020/21 Opinion Unqualified |  I noted that the entity had prepared a strategic plan. However, this had not been approved by the end of the year under review.  The Commission did not budget to collect NTR during the year under review. However, the financial statements indicated that NTR amounting to UGX.21,850,000 was collected during the year.  There was no evidence to show that the procurement method and the Evaluation Committee were approved by the Contracts Committee for six sampled procurements worth UGX48,310,800. Lack of approval contravenes the PPDA Regulations. In the circumstances, the Evaluation Committees executed the assignment without authority. | +| 29 | Uganda AIDS Commission. 2020/21 |  I noted that the entity had prepared a strategic plan. However, this had | + + +310 + +--- + +|| Opinion Unqualified | not been approved by the end of the year under review.  The Commission did not budget to collect NTR during the year under review. However, the financial statements indicated that NTR amounting to UGX. 37,800,000 was collected during the year.  UAC received off-budget financing to a tune of UGX.1,465,747,761. Although Management explained that a total of UGX.2.8Bn was budgeted for and appropriated by Parliament as off-budget funding for the Financial Year 2020/2021 as the total grant disbursement of all grants in the year, I could not trace this figure in the Commission’s approved budget for the year.  The Commission failed to implement two planned activities during the year; Data quality control and validation strategy, and Quarterly meetings for adolescents and young people.  The reported domestic arrears of UGX. 76,162,182. These arrears relate to as far back as the FY 2016/2017. It was noted that the arrears are not supported. I absence of supporting documents, there seemed to be no basis for these payables standing in the Commission’s financial statements.  The Commission had a dispute over ownership of Land and Buildings on 0.1 Hectare of Leasehold land comprised in Freehold Register Volume 56 Folio 16 Plot Number 213, Sentema Road at Namirembe with Namirembe Diocese Church of Uganda which disabled the Commission from valuation, renovating and collecting revenue from tenants since 2016. Although the Diocese later confirmed that the Commission’s lease expires in 2026, it asked the Commission to justify why it wants to renew the lease because the Diocese had taken a decision not to renew leases for areas near the Cathedral which the Commission has failed to secure from the Office of the President where it falls. | +|---|---|---| +| 30 | Allied Health Professionals Council (AHPC). 2020/21 Opinion Unqualified |  The Council did not have a strategic plan approved by NPA during the year.  The entity budgeted to collect internal revenue of UGX.4.771Bn during the year under review. Out of this, only UGX.3.783Bn was realized, representing a performance of 79% of the target.  AHPC planned to implement five (5) outputs in the year under review. I assessed the implementation of three (3) outputs which had 16 activities and noted that all the 3 outputs with their 16 activities were fully quantified. with a total of sixteen (16) activities worth UGX.1.380Bn and noted that;  Out of the sampled 3 outputs with a total of 16 activities, I noted that one (1) output with four (4) activities and expenditure worth UGX 0.515Bn was fully implemented that is all the four (4) activities within this output were fully implemented. Two (2) outputs with twelve (12) activities worth UGX.0.865Bn were partially implemented. Out of the twelve (12) activities, the entity fully implemented one (1) activity; seven (7) activities were partially implemented while four (4) activities were not implemented.  The Council did not implement some of its planned activities during the year. Examples include: Verification and publication of Allied Health Professionals in the Gazette; Licensing of private Allied Health units and training institutions, and; ICT support supervision in regions.  The Governing Council stated that a material uncertainty existed regarding the continued operation of Allied Health Professionals Council in | + + +311 + +--- + +|| the foreseeable future. This was based on the communication by the Permanent Secretary Ministry of Public Service (PS/MoPS) to the Permanent Secretary Ministry of Health among others in which the PS/MoPS communicated a Cabinet decision of 22nd February 2021 that required the commencement of merging, rationalization and mainstreaming of Government Agencies between financial years 2021/2022 and 2022/2023. There is a high possibility that the Council may not remain a going concern beyond the stated period.  The Council did not make any publication in the Gazette during the year under review, contrary to The Allied Health Professionals’ Act (cap 268). In the absence of such a publication, the unsuspecting public may not be protected from quack practitioners. | +|---|---| +| 31 | Uganda Global Fund To Fight Aids, Tuberculosis And Malaria Project – HIV COMPONENT. 2020. Opinion Unqualified |  No significant findings | +| 32 | Uganda Global Fund to Fight Aids, Tuberculosis And Malaria Project – HIV Component. 2020 Opinion Unqualified |  No significant findings | +| 33 | Uganda Global Fund to Fight Aids, Tuberculosis and Malaria Project-Tuberculosis Component. 2020. Opinion Unqualified |  No significant findings | +| 34 | Ministry of Health. 2020/21 Opinion Unqualified |  I noted that whereas the Ministry submitted a draft 5-Year Strategic plan (FYs 2020/21-2024/25) to National Planning Authority for approval on 29th July 2021, a certificate had not been issued by the Authority by the time of audit.  The entity did not budget for NTR during the year under review. However, UGX 7.205Bn was collected.  The Ministry budgeted to receive UGX 147.112Bn. This budget was later revised to UGX 376.884Bn, out of which UGX 376.837Bn was warranted, resulting into a shortfall of UGX 47m (representing 0.012% of the approved budget).  Out of the total UGX 1,029.646Bn received during the year under review, UGX 852.099Bn was spent by the entity resulting in an unspent balance of UGX. 177.547Bn (representing an absorption level of 82.8%). The unspent funds included; UGX 0.61Bn of NTR which was swept back to the Consolidated Fund as required by the PFMA, while UGX 5Bn remained on the MoH Contingency Fund and the balance of UGX 171.937Bn remained on project Accounts.  Out of a sample of forty nine (49) outputs with a total of one hundred ninety seven (197) activities and expenditure of UGX 777.8Bn, twenty | + + +312 + +--- + +four (24) 48.9% outputs with a total of fifty nine (59) activities and expenditure worth UGX 140.4Bn were fully quantified. Fifteen (15) 30.6% outputs with a total of one hundred twenty one (121) activities and expenditure worth UGX 373.5Bn were insufficiently quantified. I observed that out of the one hundred twenty one (121) activities, sixty nine(69) activities (57%) were quantified, while the balance of fifty two (52) activities (43%) were not clearly quantified to enable the assessment of performance. Ten (10) 20.4% outputs with a total of seventeen (17) activities and expenditure worth UGX 263.9Bn were not quantified at all. + +- Out of twenty four (24) outputs that were fully quantified with a total of fifty nine (59) activities worth UGX 140.4Bn, eight (8) (33.3%) outputs with eleven (11) activities and expenditure worth UGX 101.8Bn were fully implemented; ten (10) (41.7%) outputs with forty two (42) activities worth UGX 32.5Bn were partially implemented. Out of the forty two (42) activities, eleven (11) activities were fully implemented; thirteen (13) activities were partially implemented, while eighteen (18) activities remained unimplemented. Six (6) (25% )outputs with six (6) activities worth UGX 6.1Bn could not be assessed to establish their level of implementation because four (4) of these outputs were not reported on, while two (2) outputs were inaccurately reported on i.e. different activities were planned for but different activities were reported on. + + + +- Ministry of Health received off-budget financing from Development Partners to a tune of UGX 8.44Bn, which was not declared to Treasury and, therefore, not appropriated to the entity by Parliament. + + + +- The entity submitted performance reports for Q1, Q2, and Q3, Q4 after the prescribed deadlines. In addition, I did not obtain documentary proof of in the form of monitoring plans and reports which are important in ensuring that the budget performs as expected. + + + +- The task force reporting functionality planned to produce bi-weekly, monthly, quarterly, bi-annual and annual COVID-19 performance reports. However, these were not prepared and discussed in a timely manner. + + + + + +- I noted that the Ministry of Health did not prepare a COVID-19 activity work plan upon receipt of UGX 253,596,115,200 meant for management of COVID-19. + + + +- Out of the Supplementary release of UGX 223.596Bn, the Contingency Fund allocation of UGX 30Bn, and the unutilized balance from FY 2019/2020 of UGX 0.5Bn, a total of UGX.249.025bn (Supplementary UGX 223.596Bn, and Contingency Funding of UGX 25.429Bn) was spent leaving a balance of UGX 5.071Bn unspent as at 30th June 2021 (representing an absorption level of 98% of the total available funds) + + + +- I noted that the entity conducted COVID-19 related procurements worth UGX 105,937,028,042 in the FY 2019/20 out of which UGX 92,960,878,888 had been paid by 30th June 2021. During the year under review (FY 2020/21), procurements worth UGX 191,254,414,946 were conducted out of which UGX 184,690,133,663 was paid by 30th June 2021. + + + +- I noted that 37,501,136 masks that were delivered by various suppliers at a cost of UGX 90.2bn were not supported with documentary proof of certification by UNBS to ensure conformance with the desired technical quality specifications. + + + +- Whereas the first GoU allocation for procurement of vaccines amounting to UGX 18.5bn was transferred to National Medical Stores on 29th March 2021, vaccination doses procured by the Government of Uganda were yet to be delivered to NMS by 30th June 2021. Delayed delivery of the + +313 + +--- + +|| vaccines is likely to hamper the timely attainment of the vaccination targets set by government.  The Ministry did not comply with PPDA Regulatory Framework with respect to COVID-19 related procurements valued at UGX. 13.7bn.  Whereas Mulago National Referral Hospital had running contracts for cleaning, waste disposal and security services with 3 suppliers prior to the COVID-19 pandemic, the Ministry of Health directly paid these suppliers a total of UGX 1,071,968,797 in respect of Cleaning & waste disposal Services (UGX 794,999,997) and Security services (UGX 276,968,800) rendered at Mulago COVID-19 Treatment Centre. Under the circumstances, there is a risk of double payment.  I noted that Pay As You Earn (PAYE) amounting to UGX 626,630,608 was not deducted from hardship allowances paid to various officials. Failure to deduct taxes may attract interest and penalties from the Tax Body. | +|---|---| +|| LEGISLATURE || +| 1. | Parliamentary Pension Scheme. 2020/21 Opinion Unqualified |  A total of UGX.5,557,452,584 was utilized during the year against the approved budgeted t of UGX.6,601,744,660. The Under absorption of resources implies that the scheme did not carry out all the year’s intended activities, hence not meeting its intended objectives. Some of the activities that were not or partially implemented were;  Recruitment of staff  IT Annual Maintenance Plans  Strategic Partnership Meetings  As observed last financial year 2019/2020, some members on the Board of Trustees are still signatories to the Bank Accounts of the Scheme. The Board’s involvement in the day-to-day operations of the scheme erodes its oversight role. For instance, the Board cannot hold management to account for failure, to implement. agreed activities when the Board is actively participating in the daily operations of the scheme. | +| 2. | Parliamentary Commission. 2020/21 Opinion Unqualified |  I noted that the Authority’s strategic plan had not been certified by NPA by the time of audit, contrary to the Planning Regulations.  The Authority received 99% of its budget from Government, and NTR performed above expectation by 21%. The Authority had unspent balances of UGX.7.64Bn, which was returned to the consolidated fund.  I noted that the Authority had unremitted off-budget financing of UGX.18.97Bn, which Parliament never appropriated.  I noted that out of the thirty-nine (39) outputs sampled for review, two (2) outputs (5%) were fully quantified, two (2) outputs (5%) were partially quantified, and thirty-five (35) outputs (90%) were not quantified at all which made it impossible to measure performance. The two (2) outputs that were fully quantified were all fully implemented.  All performance reports were submitted after the deadline.  I noted that the Authority had not developed regulations to guide the collection of outdoor advertising fees, which hindered the collection of NTR. I further noted that the Authority did not undertake regular updates of the valuation rolls.  The Authority has an unserviceable long-term liability of UGX.42,570,448,999 in addition to accumulated domestic arrears of | + + +314 + +--- + +UGX.62,477,592,377 as at 30th June 2021. + + + +- The Authority did not remit statutory deductions to URA and NSSF amounting to UGX.1.86Bn. + + + +- The Authority incurred avoidable expenditure of UGX.7.8Bn as interest due to delayed site handover for civil works constructions. + + + +- I noted that the Authority had not adopted the Computerized Government Financial Management Information Systems (GFMIS) for management of its inventories as required by the Treasury Instructions. + +315 + +--- + +ANNEXURE II: SUMMARY OF ENTITY FINDINGS AND OPINIONS FOR LOCAL GOVERNMENTS + +| S/N | Fort Portal Branch | Summary of Key Findings | +|---|---|---| +| 01. | Bundibugyo DLG Opinion Unqualified |  I noted a number of anomalies during review of the district payroll such as; Failure to submit wage estimates to MoPs, over payment of salaries worth UGX.29, 467,392, Underpayment of salaries of UGX.2, 160,338; payment of salaries worth UGX.45, 977,978 to sixteen (16) staffs who were no longer in service, delayed access to payroll by sixty (60) new employees and failure to prepare monthly wage, pension and gratuity performance analysis on payroll to MoPS.  The district did not have an approved strategic plan that is aligned to the NDP-III at the time of audit.  I noted a number of issues in the implementation of the approved budget such as; under absorption of funds worth UGX. 2,978,972,164; under performance of the donor & government releases worth UGX.1,536,961,363; partial submission of quarterly monitoring reports to OPM & MoFPED  The district received off-budget financing to a tune of UGX. UGX.7, 989,897 directly from UNFPA for undertaking activities which was never declared to the PSST and as such no supplementary appropriation was issued as guided by the PSST.  The district lost a court case (Busobozi Juma Vs Bundibugyo DLG); but failed to honour this court ruling resulting into attachment of three (3) District Motor vehicles.  I further noted the district failed to absorb UGX.950, 886,390 of the UgIFT funds received and the balance was swept back to the Consolidated Fund Account at the end of the financial year.  I further noted that the district had unutilized funds of UGX.336, 284,000 meant for the construction of Kabango Seed School which was swept back to the Consolidated Fund. | +| 02. | Kabarole DLG Opinion Unqualified |  I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, Over payment of pension worth UGX.288, 866,531; Underpayment of pension worth UGX.271, 215,401; Wrong computation of gratuity worth net overpayment of UGX. 54,578,592; payment of salaries worth UGX. 3,051,636 to two (2) staffs that was no longer in service and irregular deduction of loan instalments worth UGX.9, 061,174.  Additionally, I observed that there was delayed access to payroll by twenty three (23) new employees and nine (9) pensioners; failure to utilize wage funds of UGX.2.38Bn; un-deducted PAYE from political leaders’ gratuity resulting in unpaid tax of UGX.10,746,540 and payment of twenty two (22) staffs worth UGX.35,678,772 off the IPPS | + + +316 + +--- + +||  I noted a number of issues in the implementation of the approved budget such as; shoddy works in construction of classrooms; incomplete works; under absorption of funds worth UGX.5,185,210,873 that was swept back to consolidated fund account; under performance of the donor & releases from other government units worth UGX.768,125,595; delayed submission of quarterly monitoring reports to OPM & MoFPED  The district mischarged expenditure worth UGX.275, 847,736 on wrong budget lines. | +|---|---| +| 03. | Kamwenge DLG Opinion Unqualified |  I noted a number of anomalies during review of the district pension & salary payrolls such as; over payment of pension worth UGX.18,610,306; Underpayment of pension worth UGX. 20,537,350; Wrong computation of gratuity worth net overpayment of UGX. 126, 160257; payment of salaries worth UGX. 3,042,398 to six (6) staffs that was no longer in service; irregular deduction of loan instalments worth UGX.9,912,197 and failure to remit payroll deductions worth UGX.1,206,334,606  Additionally, I observed that there was delayed access to payroll by eleven (11) new employees; failure to utilize wage funds of UGX.2.32Bn; un-deducted PAYE from political leaders’ gratuity resulting in unpaid tax of UGX.9,904,129; payment of forty three (43) staffs worth UGX.73,835,431 off the IPPS and failure to prepare monthly wage, pension and gratuity performance analysis report on payroll to MoPS  The district mischarged expenditure worth UGX.446,776,818 on wrong budget lines other than those prescribed for salary, pension and gratuity  The district did not have an approved strategic plan that is aligned to the NDP-III at the time of audit.  I noted a number of issues in the implementation of the approved budget such as; under absorption of funds worth UGX.9, 615,375,142 that was eventually swept back to consolidated fund account at end of financial year; combined under performance worth UGX. 18,033,399,211 from planned donor funds, NTR, releases from Government & other Government units ; delayed submission of quarterly monitoring reports to OPM & MoFPED  I observed that a total sum of UGX.792, 482,750 due from the groups that were funded in 2014/15, 2015/16, 2016/17, 2017/18 and 2018/19 were still outstanding and therefore reported as revenue arrears at the year end.  The district lacks evidence of ownership in form of titles for its land at Kabuga-Rubaba measuring 1,321 hectares.  During a physical inspection of the Constructions, I noted a | + + +317 + +--- + +|| number of shoddy works in Bwizi Seed School and upgrade Kabingo Health Centre II to Health Centre III. | +|---|---| +| 04. | Kasese DLG Opinion Unqualified |  I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, over payment of Salary and gratuity worth UGX. UGX.3, 574,714; Underpayment of pension worth UGX. 705,886; un-deducted PAYE from political leaders’ gratuity resulting in unpaid tax of UGX.21, 251,680; payment of salaries worth UGX. 990,729 to two (2) staffs that was no longer in service and irregular deduction of loan instalments worth UGX.11, 312,968.  Additionally, I observed that there was delayed access to payroll by four (04) new employees and five (5) pensioners; failure to utilize wage funds of UGX.0.01Bn; over remittance UGX.14,857,510 was made to UNATU and UBA, and an under remittance of UGX.162,609,619 to URA and LST respectively; and payment of twenty nine (29) staffs & two (2) pensioners a total of UGX.35,824,742 off the IPPS  The district mischarged expenditure worth UGX.99,558,770 on wrong budget lines other than those prescribed for gratuity  The district’s strategic plan was not certified by National Planning Authority.  I noted that the verification forms and copies of the verification cards for 150 new employees and 8 pensioners/beneficiaries were not on the respective personal files.  The district has uncollected Non Tax Revenue arrears to the tune of UGX.702, 009,983 that has remained outstanding for more than a year.  I noted a number of issues in the implementation of the approved budget such as; under absorption of funds worth UGX. 6,349,941,923 that were eventually swept back to consolidated fund account at end of financial year; combined under performance worth UGX. 11,758,099,498 from planned donor funds, NTR, releases from Government & other Government units ; delayed submission of quarterly monitoring reports to OPM & MoFPED  Ninety one (91) pieces of land owned by the District lacked evidence of ownership in form of titles.  Out of the total funds of UGX.822, 539,506 UgIFT funds received, the district only utilized UGX.314,732,415 (38.26%) resulting into unspent balance of UGX.507,807,091. | +| 05. | Kyegegwa DLG Opinion Unqualified |  I noted a number of issues during the review of the district pension and payroll such as; | + + +318 + +--- + +###  The district delayed to submit wage estimates to MoPs by the 30 th of September of the previous year as required. This may + +lead to wage shortfalls/over provision due to lack of clarity and analysis of wage estimates by MoPS. + +###  Unpaid accrued gratuity worth UGX.92,701,695 by year end and Under absorption of wage funds worth UGX.1.13Bn that meant + +some employees and pensioners were unpaid + +###  The verification forms and copies of the verification cards for 50 + +employees were not on the respective personal files + +###  The District did not prepare monthly wage, pension and gratuity + +performance analysis and thus did not submit quarterly returns + +### on payroll to MoPS, contrary to Paragraph 2.1 of Establishment + +Notice No. 1 of 2020. This led to under absorption of wage, pension and gratuity budgets + +###  6 employees were paid a total of UGX.2,852,917 without signed + +pay change reports + +- 37 newly recruited/ transferred employees and 6 pensioners delayed to access payroll this affects staff moral and + + + +### accumulation of domestic arrears and paid UGX.1,446,726 was + +paid to 2 former staff who had either retired or died + + + +- The district did not subject political leaders’ gratuity totalling to + +### UGX.43,741,660 to the computation of PAYE in IPPS, leading to + +### an under deduction of UGX.13,224,798, contrary to section 19(1) + +(a) of the Income Tax Act + +###  The district made unauthorised loan deductions totalling UGX.157,604,005. The deductions were from 84 employees that + +## neither had letters of undertaking nor existed in the “active deduction” or the “my approval” reports on the PDMS-Payroll + +Deduction Management System, operated by PCA-Payroll Consults Africa + +###  I noted unrecovered overdue YLP and UWEP receivables worth + +541,572,633 and 196,364,405 from beneficiary groups that has affected the revolution of the funds among other groups in the queue + +###  I noted a number of issues in the implementation of approved + +budget such as delayed submission of quarterly reports; underperformance of revenue worth 9,414,937,826; under absorption of funds worth UGX.3,780,702,017 that affected + +### implementation of Construction of Kagumba & Nabiwugulu Seed Schools, upgrading of Bubago HCII to HC III, Construction works + +319 + +--- + +|| at Kitayunjwa Seed School , ICT and science equipment for Kitayunjwa Seed School, Upgrading of Kagumba HC II to HC III and Procurement of medical equipment for Kagumba HC I and Bubago HCII  I noted that the management had not prepared and approved a strategic plan that is aligned to the NDP-III at the time of audit  I noted ddelayed works for Construction of Karwenyi Health Center III under UgIFT. The contract was awarded to M/s.Nicole Associates Ltd at a contact sum of UGX.529, 682,320 and should have been completed on 07.09.19 but was still having pending works  I noted incomplete construction works on Rwentuuha seed school for works that should have ended by 07.04.2020  I noted funds shortfall of UGX.91, 745,203 for funds meant for road maintenance from URF that affected the implementation of planned works | +|---|---| +| 06. | Kyenjojo DLG Opinion Unqualified |  I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, over payment of Gratuity worth UGX. UGX.4, 503,576; Underpayment of pension worth UGX. 10,233,398; payment of salaries worth UGX. 13, 121,357 to nine (9) staffs that was no longer in service and unauthorized deduction of loan instalments worth UGX. 21,809,702.  Additionally, I observed that there was delayed access to payroll by ten (10) new employees and two (2) pensioners; failure to utilize wage funds of UGX.0.96Bn; unremitted payroll deductions of UGX. 6,025,083 and failure to prepare monthly wage, pension and gratuity performance analysis report on payroll to MoPS  I noted a number of issues in the implementation of the approved budget such as; under absorption of funds worth UGX.3, 847,060,490 that was eventually swept back to consolidated fund account at end of financial year; combined under performance worth UGX. 22,372,196,592 from planned donor funds, NTR, releases from Government & other Government units;  Out of UGX.1, 300,000,000 received for Upgrading of Kigoyera HC II to HC III only UGX.480, 191,731 was utilized and the balance was swept back to the Treasury at the end of the financial year.  I noted shoddy works for M/s Build line Contractors Uganda LTD at a contract sum of UGX.2, 050,045,030. Although the end date was extended to 30th August 2020 and the contract sum revised to UGX.2, 150,170,030 to cater for variations | + + +320 + +--- + +||  The districts strategic plan was not certified by National Planning Authority therefore I could not confirm that it is aligned to NDP- III. | +|---|---| +| 07. | Ntoroko DLG Opinion Unqualified |  I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs; Underpayment of in payroll worth UGX. 5,813,601; un-deducted PAYE from political leaders’ gratuity resulting in unpaid tax of UGX.8, 062,325; Loan deductions relating to all the 279 employees did not have letters of undertaking and evidence of consent on file; One hundred five (105) staffs were paid using wrong salary scales, leading to over payments of UGX.9,200,722.  Additionally, I observed that there was delayed access to payroll by thirty seven (37) new employees and one (01) pensioner; failure to utilize wage funds of UGX.0.026Bn; unremitted PAYE deductions of UGX.58,118,104, to URA; failure to prepare monthly wage, pension and gratuity performance analysis report on payroll to MoPS  I noted that the verification forms and copies of the verification cards for 50 employees were not on the respective personal files  The district’s strategic plan was not certified by National Planning Authority therefore I could not confirm that it is aligned to NDP- III.  I noted a number of issues in the implementation of the approved budget such as; under absorption of funds worth UGX.824, 523,482 that was eventually swept back to consolidated fund account at end of financial year and a combined revenue under performance worth UGX. 1,971,531,402 from planned donor funds, NTR, releases from other Government units  I noted that the Upgrade of Butungama HCIII under UgiFT works had stalled and behind schedule by 14 months. | +| 08. | Fort portal MC Unqualified Opinion |  I noted a number of anomalies during review of the Municipal pension & salary payrolls such as; Failure to submit wage estimates to MoPs; Overpayment of UGX.1,547,570 Underpayment of in payroll worth UGX.674,289; un-deducted PAYE from political leaders’ gratuity resulting in unpaid tax of UGX.3,015,540; failure to utilize wage funds of UGX.0.655Bn; Payment of 4 employees who were no longer in service; Under remittance of salary deductions worth UGX. UGX.68,499,107; Delayed remittance of deductions to UCLA/UBA of 5 to 90 days  I noted a number of issues in the implementation of the approved budget such as; under absorption of funds worth UGX.9, 264,101,819 that was eventually swept back to consolidated fund account at end of financial year; combined under performance worth UGX. 22,372,196,592 from planned | + + +321 + +--- + +|| donor funds, NTR, releases from Government & other Government units  The Municipality mischarged expenditure worth UGX.5,244,093 on wrong budget lines other than those prescribed for salary, pension or gratuity  The Municipal’s strategic plan was not approved by the National Planning Authority at the time of audit and therefore I could not confirm that it is aligned to NDP-III.  The Municipality lacked certificates of title for 13 pieces of land.  I noted that the MC did not have sufficient waste receptacles and solid waste collection vehicles which have led to piling of garbage on the Municipality streets resulting into a public health nuisance. | +|---|---| +|| Branch Jinja | Summary of Key Findings | +| 01. | Namutumba DLG Opinion Unqualified |  I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, over payment of Gratuity worth UGX. 6,699,263; Underpayment of salaries worth UGX 3,970,280; payment of salaries worth UGX. 34,532,950 to eighteen (18) staffs who were no longer in service; under remittance of payroll deduction of UGX. 42,851,131; unauthorized excess loan deductions worth UGX. 336,561,515 for one hundred seventy four (174) employees  Additionally, I observed that there was delayed access to payroll by ninety one (91) newly recruited/ transferred employees and nineteen (19) pensioners; eight (8) pensioners failed to access the pension payroll; failure to utilize wage funds of UGX.0.70Bn; un-deducted PAYE from political leaders’ gratuity resulting in unpaid tax of UGX.9, 275,220; failure to prepare monthly wage, pension and gratuity performance analysis report on payroll to MoPS and overpayment of pensioners due to wrong computation worth UGX. 66,739,381 and payment of 05 employees worth UGX. 3,371,913 without authorization of pay change report.  I noted a number of issues in the implementation of the approved budget such as; under absorption of funds worth UGX. 1,074,919,818 that were eventually swept back to consolidated fund account at end of financial year; under performance worth UGX. 183,402,134 from planned donor funds, NTR and releases from Government.; partial implementation of planned activities  The district mischarged expenditure worth UGX.41,963,816 on wrong budget lines other than those prescribed for salary, pension or gratuity  From a comparison of the payroll register and IFMS payment file, I noted that 09 staff and 10 pensioners were paid a total of UGX 461,890,255 off the IPPS. | + + +322 + +--- + +||  I noted that the District had uncovered funds (receivables) of UGX. 1,400,354,319 that affected the budget implementation of planned activities  The District’s strategic plan is in place but no evidence of approval by the National Planning Authority was availed at the time of audit.  I noted that the construction works of a seed secondary school at Nabweyo did not take off in the financial year under review and the funds amounting to UGX. 344,284,000 were swept back to treasury.  The district lacked land titles for 17 pieces measuring approximately 299.3 acres which exposed the land to loss and encroachment.  The District received a sum of UGX. 223,381,891 for (06) secondary schools and (109) primary schools meant for the procurement of learning materials. However, the bank statements had not been availed for review at the time of audit. | +|---|---| +| 02. | Buyende DLG Opinion: Unqualified |  I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, unpaid salaries of UGX 5,941,021 to nine (9) employees; Underpayment of salaries to staff worth UGX 205,153,235; under payment of UGX 6,386,999 to pensioners; over payment of UGX 9,607,227; payment of salaries worth UGX. 11,313,061 to six (06) staffs who were no longer in service; under remittance of payroll deduction of UGX.205,612,209; unauthorized excess loan deductions worth UGX. 17,355,601 for 168 employees  Additionally, I observed that there was delayed access to payroll by twenty nine (29) newly recruited/ transferred employees and seven (07) pensioners; un-deducted PAYE from political leaders’ gratuity resulting in unpaid tax of UGX. 12,019,045; failure to prepare monthly wage, pension and gratuity performance analysis report on payroll to MoPS and overpayment of pensioners due to wrong computation worth UGX. 20,650,780 and payment of funds worth UGX. 8,205,747 off the IPPS system  I noted a number of issues in the implementation of the approved budget such as; under absorption of funds worth UGX. 2,000,000,000,000 that were eventually swept back to consolidated fund account at end of financial year; under performance worth UGX. 2,097,035,126 from planned donor funds, NTR and releases from Government.; partial implementation of planned activities  The district mischarged expenditure worth UGX. 71,513,039 on wrong budget lines other than those prescribed for salary, pension or gratuity | + + +323 + +--- + +||  I noted that the entity had prepared a strategic plan but the National Planning Authority had not yet approved it at the time of audit.  Failure to quantify outputs, partial and non-implementation of planned activities, late submission of quarterly reports  I noted that funds to the tune of UGX. 571,677,701 were irregularly diverted from the activities on which they were budgeted and spent on other activities without seeking and obtaining the necessary approvals.  Of the 9 road equipments at the district, 03 were grounded and in need of major repairs and I also observed lack of vital road equipment such as an excavator, a backhoe, supervision double cabin pickup and 02 supervision motor cycles.  Delayed construction works on Buyende Seed School and expired performance security for the contract from the contractor was also noted  I note that there undelivered ICT Equipments worth UGX. 148,842,899 to Buyende Seed Secondary School; unutilized funds worth UGX. 178,400,391 meant for procurement of learning materials for (05) secondary schools and (91) primary schools.  I noted that accountability amounting to UGX. 61,788,892 were not presented for verification by the time of audit.  The district lacked land titles for 48 pieces measuring approximately 1,942 hectares which exposed the land to loss and encroachment. | +|---|---| +| 03. | Jinja DLG Opinion: Unqualified |  I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, unpaid salaries and pension arrears of UGX 484,546,138; Underpayment of salaries to staff worth UGX. 40,243,749; under payment of UGX 6,386,999 to pensioners; over payment of UGX 9,607,227; payment of salaries worth UGX. 2,763,055 to six (06) staffs who were no longer in service  Additionally, I observed that there was delayed access to payroll by Fifteen (15) newly recruited/ transferred employees and three (03) pensioners; un-deducted PAYE from political leaders’ gratuity resulting in unpaid tax of UGX. 10,866,949; failure to prepare monthly wage, pension and gratuity performance analysis report on payroll to MoPS and payment to 06 staff and 09 pensioners of funds worth UGX. 62,763,120 off the IPPS system  I noted a number of issues in the implementation of the approved budget such as; Failure to Quantify outputs; partial & | + + +324 + +--- + +|| non-implementation of planned activities and delayed submission of performance reports; under absorption of funds worth UGX. 1,890,511,130 that were eventually swept back to consolidated fund account at end of financial year; under performance of NTR worth UGX. 341,038,789  The district has outstanding unrecovered YLP and UWEP advances worth UGX. 1,164,605,343 | +|---|---| +| 04. | Jinja MC Opinion: Unqualified |  I noted a number of anomalies during review of the municipal pension & salary payrolls such as; Failure to submit wage estimates to MoPs, failure to utilize wage funds of UGX.0.5Bn; unpaid salaries and pension arrears of UGX 484,546,138; Underpayment of salaries to staff worth UGX 2,179,634; under payment of UGX.54,373,901 to pensioners; over payment of gratuity worth UGX 34,302,808 to one pensioner arising from wrong computation; Underpayment of pensions worth UGX 49,155,207; nonpayment of a pensioner worth UGX 10,907,334 and payment of salaries worth UGX. 1,158,981 to two (02) staffs who were no longer in service  Additionally, I observed that there was delayed access to payroll by eight (08) newly recruited/ transferred employees and thirty five (35) pensioners; failure to prepare monthly wage, pension and gratuity performance analysis report on payroll to MoPS; Net under remittance of payroll deductions worth UGX. 42,851,131; payment of a staff and a pensioner worth UGX 13,515,274 off the IPPS and payment to 03 employees worth UGX. 6,202,537 without signed pay change reports.  I noted a number of issues in the implementation of the approved budget such as; Failure to Quantify outputs; delayed submission of performance reports; under absorption of funds worth UGX 2,361,255,255 that were eventually swept back to consolidated fund account at end of financial year; under performance of NTR & transfers from other Government Units worth UGX. 6,353,273,753  I noted that the entity had prepared a strategic plan but the National Planning Authority had not yet approved it at the time of audit  The Municipal Council had outstanding payables of UGX 894,801,904 by the end of the year  The Municipality mischarged UGX. 132,864,963 on wrong account codes other than those prescribed for salary, pension or gratuity.  I noted underfunding of UGX. 41,469,000 from URF that affected the routine manual, mechanized and periodic road maintenance under force account mechanism. | + + +325 + +--- + +||  I noted that the Municipal Council had 12-road equipment of which two (02) were grounded and in need of major repairs. Additionally, I also observed that the Municipal lacked vital road equipment like a water bowser, a roller, chips spreader and a jet/pothole patcher.  Under USMID, the Municipal Council had unspent balance of UGX 1,701,586,908, meant for road construction works and incomplete road works by the year end  Under UgIFT, I noted that the construction works on Kimaka Health Centre III at a cost of UGX. 493,924,741 had stalled for over a year and the contractor had abandoned the site.  The Municipal Council lacked land titles for 16 pieces measuring approximately over 34.265 hectares which exposed the land to possible loss and encroachment.  I noted that Council was involved in 13 ongoing court cases which could lead to possible loss of funds. | +|---|---| +| 05. | Kaliro DLG Opinion: Unqualified |  I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, failure to utilize wage funds of UGX.0.4Bn; Underpayment of salaries to staff worth UGX. 24,360,137; under payment of UGX. 44,242,332 to pensioners and payment of salaries worth UGX. 2,246,579 to 5 staffs who were no longer in service  Additionally, I observed that there was delayed access to payroll by fifty-one (51) newly recruited/transferred employees and 03 pensioners; un-deducted PAYE from political leaders’ gratuity resulting in unpaid tax of UGX. 8,194,860.  I noted a number of issues in the implementation of the approved budget such as; Failure to Quantify outputs; delayed submission of performance reports; under absorption of funds worth UGX. 1,575,930,542 that were eventually swept back to consolidated fund account at end of financial year; under performance of NTR & transfers from other Government Units worth UGX. 288,478,184.  I noted that the district had outstanding receivables of UGX. 1,240,015,837 at year end that had not been collected  There was delayed physical progress of the works at Buyinda health centre, Kasokwe Health Centre and Bukamba Seed Secondary School. This was attributed to effects of Covid-19 pandemic.  I noted that Kaliro DLG did not have land titles for 38 pieces of land measuring approximately 283.25 acres. | +| 06. | Kamuli MC |  I noted a number of anomalies during review of the Municipal | + + +326 + +--- + +|| Opinion: Unqualified | pension & salary payrolls such as; Failure to submit wage estimates to MoPs, failure to utilize wage funds of UGX.0.4Bn; Underpayment of salaries to staff worth UGX 17,301,287; overpayment to 239 staff worth UGX 12,549,285 under payment of gratuity worth UGX. 8,102,108 to pensioners; payment of salaries worth UGX. 5,528,605 to 2 staffs who were no longer in service; over and under remittance of salary deductions amounting to UGX 1,392,544 and UGX 30,126,523  Additionally, I observed that there was delayed access to payroll by 25 newly recruited/ transferred employees and 05 pensioners; un-deducted PAYE from political leaders’ gratuity resulting in unpaid tax of UGX. 2,026,660; Unauthorized payroll deductions worth UGX 156,349,689 relating to 84 without letters of undertaking; over deductions payments worth UGX. 2,876,352 and paid 03 staff and 07 politicians were worth UGX 14,156,592 off the IPPS  I noted a number of issues in the implementation of the approved budget such as; Failure to Quantify outputs; delayed submission of performance reports; inaccurate reporting of performance; under absorption of funds worth UGX 9,850,625,641 that were eventually swept back to consolidated fund account at end of financial year; under performance of NTR & transfers from other Government Units worth UGX. 609,177,435  I noted that the Municipal Council had outstanding receivables of UGX 592,620,187 that had not been recovered by year end.  I noted that the entity had prepared a strategic plan but the National Planning Authority had not yet approved it at the time of audit.  Failure to quantify outputs, partial or non-implementation of activities not quantified late submission of quarterly reports and.  The Municipal Council had unspent funds under the USMID grant worth UGX. 9,421,230,865, which was subsequently swept back to the Consolidated Fund. Additionally, that the road construction works did not take off in the financial year under review.  I noted that the construction works of two classroom blocks and water borne toilet at Busoga High School at UGX. 309,872,760 were incomplete.  The Municipal Council lacked land titles for 11 pieces which exposed the land to loss and encroachment. | +|---|---|---| +| 07. | Mayuge DLG Opinion: Unqualified |  I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, failure to utilize wage funds of UGX.1.2Bn; I also noted that there was an under payment of salaries and | + + +327 + +--- + +|| pensions worth UGX. 1,193,840,180; Unpaid salaries worth UGX. 14,134,729; over payments of UGX. 17,722,575 to pensioners; 71 staff were paid using wrong salary scales, leading to monthly over payments of UGX. 1,177,702 and under payments of UGX. 1,257,209 respectively; nine (09) employees and fifteen (15) pensioners failed to access the payroll during the year; under remittance of salary deductions worth UGX. 45,320,114  Additionally, I observed that there was delayed access to payroll by one hundred nine (109) newly recruited/ transferred employees and sixteen (16) pensioners; un-deducted PAYE from political leaders’ gratuity resulting in unpaid tax of UGX. 13,865,233; Unauthorized loan deductions worth UGX. 52,171,779 relating to 59 employees due to absence of Letters of undertaking; over deductions payments worth UGX. 2,876,352 and Paid 07 employees and 09 pensioners worth UGX. 89,285,252 off the IPPS  I noted a number of issues in the implementation of the approved budget such as; Failure to Quantify outputs; delayed submission of performance reports; inaccurate reporting of performance; under absorption of funds worth UGX 2,017,223,134 that were eventually swept back to consolidated fund account at end of financial year; under performance of NTR & transfers from other Government Units worth UGX. 1,017,773,209 and delayed completion for the construction of Bukatube health and Nkombe Health Centre III  I noted that the district had outstanding receivables of UGX. 1,559,419,200 by year end  The Mayuge District had outstanding pension liabilities of UGX. 1,251,580,052 by the end of the year.  I noted that Mayuge District received off-budget financing to a tune of UGX 58,291,066 directly from Ministry of Local Governments for undertaking activities which were never declared to the PS/ST.  I noted that there is illegal mining of sand being carried out at the district lakeshores. The Accounting Officer explained that management had written to the prospective stakeholders in the sand mining activities giving guidance on the sustainable way of carrying out the activity including closure of some of the sand mines.  I noted that Mayuge DLG did not have land titles for 33 pieces of land measuring approximately 1430.761 Ha. | +|---|---| +| 08. | Lugazi MC Opinion Unqualified |  I noted a number of anomalies during review of the Municipal pension & salary payrolls such as; Failure to submit wage estimates to MoPs, failure to utilize wage funds of UGX.0.4Bn; I also noted that there was an under payment of salaries worth UGX. 8,183,158; Unpaid salaries worth UGX. 34,305,160; Under | + + +328 + +--- + +|| payments of UGX. 321,560,027 to pensioners; over payments of UGX. 7,263,946 and under payments of UGX. 1,360,106 arising from use of wrong bands; over and under remittance of salary deduction worth UGX. 2,697,535 and UGX. 35,487,023 respectively  Additionally, I observed that there was delayed access to payroll by 14 newly recruited/ transferred employees and thirteen (13) pensioners; un-deducted PAYE from political leaders’ gratuity resulting in unpaid tax of UGX. 3,289,681; Unauthorized loan deductions worth UGX. 565,433,218 relating to 500 employees due to absence of Letters of undertaking; over deductions payments worth UGX. 2,876,352 and paid 15 staff and 10 pensioners a total of UGX. 27,696,793 off the IPPS  I noted a number of issues in the implementation of the approved budget such as; Failure to Quantify outputs; delayed submission of performance reports; under absorption of funds worth UGX 14,415,862,633 that were eventually swept back to consolidated fund account at end of financial year  I noted that the Municipal Council had outstanding receivables of UGX. 1,973,054,521 by the year end that remained unrecovered  Under absorption of funds worth UGX. 14,177,800,402 under the USMID program that was eventually swept back to the consolidated fund.  I noted under performance of funds worth UGX 17,916,865 from Uganda Road Fund meant for road maintenance in the municipality.  I noted that Council was involved in 06 ongoing court cases | +|---|---| +| 09. | Namayingo DLG Opinion: Unqualified |  I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, failure to utilize wage funds of UGX.0.72Bn; Unpaid salaries and pensions worth UGX. 49,235,421; under payments of UGX. 129,040,476 to pensioners; over and under payment of salaries worth UGX. 14,206,136 and UGX. 4,684,855 respectively due to use of wrong salary scales  Additionally, I noted there was un-deduction of PAYE from political leaders’ gratuity resulting in unpaid tax of UGX. 9,992,741; Unauthorized loan deductions worth UGX. 702,716,508 relating to 458 employees due to absence of Letters of undertaking; paid 33 staff and 16 pensioners a total of UGX. 38,434,320 off the IPPS  I observed that twenty-four (24) newly recruited/transferred employees and ten (10) pensioners delayed to access payroll; four (04) employees & seventeen (17) pensioners had not yet accessed the payroll by the close of the financial year and | + + +329 + +--- + +|| payment of 5 employees who were no longer in service  I noted a number of issues in the implementation of the approved budget such as; Failure to quantify outputs; partial and non-implementation of planned activities delayed submission of performance reports; under absorption of funds worth UGX. 1,299,253,676 that were eventually swept back to consolidated fund account at end of financial year and under performance of revenues worth UGX. 896,645,767  The District mischarged funds worth UGX. 5,057,686 on account codes other than those prescribed for salary, pension and gratuity.  Further, the District did not prepare monthly wage, pension and gratuity performance analysis and thus did not submit quarterly returns on payroll to MoPS,  I noted that the district had outstanding receivables of UGX. 1,063,954,752 that had not been recovered.  There was a delay in the physical progress of works at Bukana health centre III and Syanyonja Health centre.  I noted that Namayingo DLG did not have land titles for 113 pieces of land measuring approximately 357.3 hectares and 09 pieces of land were in the process of being titled. | +|---|---| +| 10. | Bugweri DLG Opinion Unqualified |  I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, failure to utilize wage funds of UGX.0.38Bn; Unpaid pensions worth UGX. 110,127,127; Over payments of UGX. 3,000,000 to pensioners; over and under payment of salaries worth 9,273,543 and UGX. 4,410,477 respectively due to use of wrong bands  Additionally, I noted there was un-deduction of PAYE from political leaders’ gratuity resulting in unpaid tax of UGX. 1,040,880; paid 23 staff and 15 pensioners were paid a total of UGX. 33,868,147 and UGX. 190,371,130 off the IPPS; over and under remittances of pay roll deductions of UGX. 532,326,787 and UGX. 31,529,271 respectively; Payment of UGX.35,780,089 to 09 employees who were no longer in service; wrong computation of gratuity benefits of 01 pensioner (TAJJUBA STEPHEN 417573) that resulted into an over payment of gratuity by UGX. 26, 936,170.  I observed that 22 newly recruited employees and 15 pensioners delayed to access the pension payroll and the district did not prepare monthly wage, pension and gratuity performance analysis and thus did not submit quarterly returns on payroll to MoPS | + + +330 + +--- + +||  I noted a number of issues in the implementation of the approved budget such as; Failure to quantify outputs; partial and non-implementation of planned activities delayed submission of performance reports; under absorption of funds worth UGX. 944,877,155 that were eventually swept back to consolidated fund account at end of financial year and under performance of revenues worth UGX. 6,114,158,151  I noted that the District had outstanding receivables worth UGX. 499,741,444 that was not yet recovered.  I noted that the district had prepared a draft strategic plan but it had not yet been approved by the National Planning Authority.  I noted that Bugweri District received off-budget financing to a tune of UGX. 860,199,000 without seeking approval.  I noted that funds to the tune of UGX. 129,996,921 were misclassified.  I noted that the District lacked land titles for 31 pieces of land measuring approximately 179 acres including schools, sub counties and health centers.  Bugweri district received a sum of UGX. 155,136,081 for (06) secondary schools and (54) primary schools meant for the procurement of learning materials in March, 2021 but disbursed only UGX. 136,182,515 to the respective schools on 4 th June, 2021 leaving an outstanding amount of UGX. 18,953,562 which remained unaccounted for.  I noted that expenditure totaling UGX. 374,878,394 lacked adequate supporting documentation at the close of the financial year | +|---|---| +| 11. | Bugiri Municipal Council Opinion Unqualified |  I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, failure to utilize wage funds of UGX.0.53Bn and over payment of salaries worth UGX. 4,618,049 due to use of wrong bands  Additionally, I observed that there was delayed access to payroll by 11 employees on the salary payroll and 03 pensioners on the pension pay roll; over and underpayment of salaries worth UGX. 5,020,000 UGX. 1,353,000; paid 15 staff and 03 pensioners were paid a total of UGX. 58,059,084 off the IPPS and paid five (5) employees a total of UGX. 29,073,390 without signed pay change reports  I noted a number of issues in the implementation of the approved budget such as; Failure to quantify outputs; partial and non-implementation of planned activities delayed submission of performance reports; under absorption of funds worth UGX. 568,033,989 that were eventually swept back to consolidated | + + +331 + +--- + +|| fund account at end of financial year and under performance of revenues worth UGX. 334,420,647.  I noted that funds to the tune of UGX. 33,234,682 were paid on the wrong account codes.  I noted that the Council had outstanding receivables of UGX. 585,573,492. That remained unrecovered by year end  I noted that the entity’s NDP-III was still in draft form and had not had its Strategic plan approved by NPA at the time of audit.  Road maintenance works was affected by budget shortfalls for funds worth GX 63,409,282 from URF.  I noted that expenditure totaling UGX. 37,580,848 advanced to staff and various suppliers to carry out activities lacked adequate supporting documents.  I noted that the Council lacked land titles for 07 pieces of its land. | +|---|---| +| 12. | Kamuli DLG Opinion Unqualified |  I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, failure to utilize wage funds of UGX.1.3Bn; Unpaid pensions worth UGX. 129,711,499; Under payments of UGX. 789,022,349 to pensioners; under payment of salaries worth UGX. 16,604,611 and nonpayment of salaries worth UGX. 13,045,994  Additionally, I observed that there was delayed access to payroll by 25 newly recruited/ transferred employees and 14 pensioners; un-deducted PAYE from political leaders’ gratuity resulting in unpaid tax of UGX.13,801,906; Unauthorized loan deductions worth UGX. 179,141,809 due to absence of Letters of undertaking; over/ under remittance of salary deductions worth UGX. 2,758,277 and paid UGX.5, 049,620 to 13 staff who had retired, transferred, absconded or died.  I noted that Kamuli District had outstanding receivables figure of UGX. 1,309,756,172 that remained unrecovered by year end.  I noted, the entity did not have an approved strategic plan that is aligned to the NDP-III at the time of audit.  I noted a number of issues in the implementation of the approved budget such as; Failure to quantify outputs; partial and non-implementation of planned activities delayed submission of performance reports; under absorption of funds worth UGX. 3,884,528,244 that was eventually swept back to consolidated fund account at end of financial year and under performance of revenues worth UGX. 1,734,443,308  I noted that Kamuli District received off-budget financing to a | + + +332 + +--- + +|| tune of UGX. 185,243,153 directly from Ministry of Health (MoH) and Marie topes for undertaking activities which was never declared to the PSST and as such no supplementary appropriation was issued as guided by the PSST.  I noted that the District lacked land titles for 194 pieces of land measuring approximately 546 acres including schools and health centers.  I noted delays in the construction works on Kitayunjwa seed secondary school and construction works of seed secondary schools at Nabwigulu and Kagumba did not take off in the financial year under review and the funds were swept back to treasury.  I noted at the time of inspection on 25th August, 2021 that science kits and chemicals that were delivered for Kitayunjwa Seed School were still in the district stores.  I observed that works at Kagumba HC II were still ongoing and the works progress was behind  Under URF, There was underfunding of UGX 49,538,044 under URF for road maintenance | +|---|---| +| 13. | Jinja RRH Opinion Unqualified |  I noted a number of anomalies during review of the Hospital pension & salary payrolls such as; Failure to submit wage estimates to MoPs, failure to utilize wage funds of UGX.1.7Bn; over payment of gratuity worth UGX. 12,702,466 resulting from wrong computations; under payments of pension and gratuity of UGX. 393,563,387; under payment of salaries worth UGX. 43,160,618 and nonpayment of salaries worth UGX. 5,193,740 to eight employees; 14 pensioners were paid a total of UGX. 622,229,852 off the IPPS; twenty two (22) pensioners delayed to access the pension payroll; paid 4 employees who had retired worth UGX. 6,149,095 and under remittance of pay roll deductions amounting to UGX. 39,740,732  The Hospital had payables of UGX. 1,184,835,800 for payment of utilities, pension and gratuity.  I noted that the entity did not have an approved strategic plan that was aligned to the NDP-III at the time of audit.  I noted that the Referral Hospital received off-budget financing to a tune of UGX.1,482,640,867, which was not declared to treasury.  Expenditure totaling UGX. 154,045,146 was misclassified through wrong coding  The referral hospital received UGX. 581,089,500 as covid 19 funds. Out of which UGX. 385,881,400 was utilized but UGX.30, 585,000 lacked adequate supporting documentation at the close | + + +333 + +--- + +|| of the financial year. Further, I observed there was unspent balance of UGX. 195,208,100  I noted that NTR totaling to UGX.74, 272,140 was spent at source contrary to regulations  Jinja RRH made Payments totaling UGX.41, 914,100 for clearing domestic arrears lacked appropriate supporting documents, UGX.76, 523,500 paid to M/S Rodek Enterprises Ltd towards settlement of outstanding bills for cleaning services of the hospital had not been cleared by Ernst and Young.  The hospital received off-budget financing from the Ministry of health amounting to UGX. 1,482,640,867.  I noted that the hospital commenced construction of a storey staff house on 15 th /04/2019 with an intended completion date of 14 th /10/2021 at a contract price of UGX. 3,205,111,734 but was noted to be incomplete to date, with outstanding advance payment of UGX. 73,337,302 to the contractor.  Expenditures worth UGX. 166,012,755 lacked adequate supporting documents  The Hospital had stock outs of Essential medicines for supportive treatment of Covid-19 during the year with an average stock out period of more than a month. Several drugs that expired during the year had not yet been removed from the shelves as required.  I observed that the hospital did not carry out regular maintenance of the available medical equipment.  I noted that the Hospital did not have land titles for 5 pieces of land measuring approximately 46.7 acres.  I noted that some of the buildings in the hospital were in a dilapidated state while other blocks accommodating nurses were not fit for accommodation due to their dilapidated state and there was lack of hygiene facilities such as latrines and bathrooms. | +|---|---| +| 14. | Bugiri DA Unqualified Opinion |  I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, failure to utilize wage funds of UGX.0.017Bn; un-deducted PAYE from political leaders’ gratuity resulting in unpaid tax of UGX.13,100,078  Additionally, 68 newly recruited/ transferred employees and 04 pensioners delayed to access the payroll; paid 7 employees who were no longer in service worth UGX. 4,090,197; Unpaid salaries worth UGX. 6,074,121; underpayment and overpayment of pensions & gratuity worth UGX. 26,897,618 and UGX. 13,600,648 respectively and the district made unauthorized loan deductions from 49 employees worth UGX. 150,566,095 | + + +334 + +--- + +||  I noted that Bugiri District had outstanding receivables of UGX. 1,140,326,136 that had remained unrecovered  Payables of UGX. 30,517,114 remained unsettled by year end  I noted that the entity had prepared a draft Strategic plan but had not yet been approved by NPA at the time of audit.  I noted a number of issues in the implementation of the approved budget such as; Failure to quantify outputs; partial and non-implementation of planned activities delayed submission of performance reports; under absorption of funds worth UGX. UGX. 422,963,116 that was eventually swept back to consolidated fund account at end of financial year and under performance of revenues worth UGX. 3,550,589,111  I noted that funds to the tune of UGX. 172,737,949 were irregularly diverted from the activities on which they were budgeted and spent on other activities without seeking and obtaining the necessary approvals.  I noted that construction works for Budhaya Seed secondary school did not take off  Underfunding worth UGX 24,751,000 was noted for URF meant for road maintenance  I noted that the District lacked land titles for 16 pieces of land measuring approximately 106.7 acres including schools, sub counties and health centers.  Bugiri district received a sum of UGX. 204,224,148 for (08) secondary schools and (140) primary schools meant for the procurement of learning materials. I noted that (47) schools had irregularly utilized the funds totaling to UGX. 50,639,930 without proper guidance, (58) schools had not utilized the funds, while bank statements as at end of October 2021 for (43) schools were not presented to enable establishment of whether the funds had been utilized without proper guidance or not. | +|---|---| +| 15. | Njeru MC Opinion Unqualified |  I noted a number of anomalies during review of the Municipal pension & salary payrolls such as; Failure to submit wage estimates to MoPs, failure to utilize wage funds of UGX.0.31Bn; Under and overpayment of salaries worth UGX. 8,321,986 and UGX. 31,890,939 respectively; under payments of pensions worth UGX. 4,693,227; paid 12 staff a total of UGX. 13,933,412 off the IPPS; the Municipal Council did not prepare monthly wage, pension and gratuity performance analysis for submission to MoPS and Paid UGX. 6,413,424 to 05 staff who were no longer in service  Additionally, I noted that 18 newly recruited/ transferred employees and 08 pensioners delayed to access the pension | + + +335 + +--- + +|| payroll and 01 pensioner had never accessed the payroll; 15 employees were paid a total of UGX. 16,677,139 without signed pay change reports; over and under payment of thirteen (13) pensioners worth UGX. 34,733,352 and UGX. 24,197,298 respectively arising from wrong computation of gratuity benefits  The municipality paid 322 employees using the wrong bands, leading to monthly over payments of UGX. 7,147,390 and under payments of UGX. 2,837,275  The Municipal Council made unauthorized loan deductions totaling UGX. 14,734,700 from 19 employees that lacked evidence of signing letters of undertaking  The Municipal Council had outstanding unrecovered funds (receivables) of UGX. 891,306,154 by close of financial year  I noted that the Municipal Council had prepared but had not had the strategic plan approved and aligned to the NDP-III at the time of audit  I noted a number of issues in the implementation of the approved budget such as; Failure to quantify outputs; partial and non-implementation of planned activities delayed submission of performance reports; under absorption of funds worth UGX. 1,815,926,807 that was eventually swept back to consolidated fund account at end of financial year and under performance of revenues worth UGX. 2,234,326,614  URF underfunding of UGX. 86,246,400 meant for road maintenance was noted  Njeru MC received a sum of UGX. 84,619,384 for (48) primary and secondary schools meant for the procurement of learning materials in March, 2021 and disbursed UGX. 84,619,384 (100%) to (48) schools on 28th June, 2021. However, the various school’s bank statements had not been availed for review at the time of audit  I noted that the Municipal Council did not have land titles for 12 out of 22 pieces of land including schools and health centers | +|---|---| +| 16. | Iganga DLG Opinion Unqualified |  I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, failure to utilize wage funds of UGX.1.07Bn; under payment of salaries worth UGX. 32,546,140; non- payments of pensioners worth UGX. 80,485,339; paid 16 staff using wrong bands, leading to monthly over payments of UGX. 287,429 and under payments of UGX. 526,840; paid UGX. 4,349,175 to 07 staff who had retired, transferred or absconded; over and under remittance of salary deductions worth UGX. 7,428,040 and UGX. 42,133,941 respectively  Additionally, I noted that there was Un-deducted PAYE from | + + +336 + +--- + +|| political leaders’ gratuity resulting in unpaid tax of UGX.10,059,827; 32 pensioners delayed to access the pension payroll and 19 pensioners had never accessed the payroll and therefore not paid; 55 employees were paid a total of UGX. 30 million without signed pay change reports and 73 employees and 34 pensioners were paid a total of UGX. 1,166,247,120 off the IPPS  The district had outstanding unrecovered funds (receivables) of UGX. 1,705,945,185 by the end of the period  I noted that the district was engrossed in a number of court cases estimated at UGX. 3,832,685,041  I noted a number of issues in the implementation of the approved budget such as; Failure to quantify outputs; partial and non-implementation of planned activities delayed submission of performance reports; under absorption of funds worth UGX. 2,137,465,419 that was eventually swept back to consolidated fund account at end of financial year and under performance of revenues worth UGX. 9,278,908,203  I noted that the entity had not prepared and approved a strategic plan that is aligned to the NDP-III  I noted that the District had 04 pieces of land that were not titled as well as 33 pieces of land under its supervision that were also not titled  There was URF underfunding of UGX 57,904,000 meant for road maintenance that affected road roads in the district. | +|---|---| +| 17. | Luuka DLG Opinion Unqualified |  I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, failure to utilize wage funds of UGX.1.60Bn; under payment of salaries UGX. 33,624,349  The District had with payments leading to over and over payments of UGX. 188,313272 due to wrong computation; underpayments of UGX. 39,314,543 to 32 pensioners resulting from wrong computation of gratuity benefits; made over and under payments of UGX. 16,741,697 and UGX. 8,347,743 respectively due to use of wrong salary bands  Paid UGX. 21,149,890 to 10 staff, who had retired, transferred, absconded or died; under remitted salary deductions worth UGX. 319,599,269; the District made unauthorized loan deductions totaling UGX. 158,654,625 from 115 employees; Un-deducted PAYE from political leaders’ gratuity resulting in unpaid tax of UGX. 2,659,020 and under payment of pensioners worth UGX. 485,724,648  Additionally, I noted that 41 newly recruited/ transferred employees and 19 pensioners delayed to access payroll; 47 | + + +337 + +--- + +|| employees were paid a total of UGX. 215,642,700 without signed pay change reports; the District did not prepare monthly wage, pension and gratuity performance analysis and thus did not submit quarterly returns on payroll to MoPS; I noted that 21 staff and 01 pensioner were paid a total of UGX. 37,733,743 off the IPPS  The district mischarged funds worth UGX. 40,695,963 on account codes other than those prescribed for salary, pension and gratuity  I noted the district had outstanding unrecovered receivables of UGX. 885,992,084 by the year end.  I noted that the Council was engrossed in 03 court cases with individuals which could lead to possible loss of funds  I noted that the entity had prepared but not had the strategic plan approved and aligned to the NDP-III at the time of audit  I noted a number of issues in the implementation of the approved budget such as; Failure to quantify outputs; partial and non-implementation of planned activities delayed submission of performance reports; under absorption of funds worth UGX. 652,127,207 that was eventually swept back to consolidated fund account at end of financial year and under performance of revenues worth UGX.673,814,209  The District commenced construction works on Ikumbya seed secondary school under the Education Sector in the FY 2018/2019. At the time of inspection on 28th October, 2021, I observed that works were still ongoing at 87% progress, with all structures yet to be properly floored, with partial painting, no glasses, no roofing of latrine and the compound yet to be cleared and set  Luuka DLG budgeted for and received UGX. 344,284,000 for the initial stages of the construction of Buwanda Seed Secondary in the FY 2020/2021. However, construction works did not take off in the financial year under review and the funds were swept back to treasury  Luuka DLG received a sum of UGX. 217,156,943 for 89 primary schools and 8 secondary schools meant for the procurement of learning materials on 1st April, 2021 and disbursed UGX. 136,640,827 (63%) to 53 primary schools and 5 secondary schools on 28th June, 2021. UGX. 80,516,116 was not disbursed by the district. However, the respective school bank statement and receipts had not been availed for review at the time of audit, and as such, I could not establish whether the funds were still on the accounts | +|---|---| +| 18. | Iganga MC |  I noted a number of anomalies during review of the Municipal pension & salary payrolls such as; Failure to submit wage | + + +338 + +--- + +|| Opinion Unqualified | estimates to MoPs, failure to utilize wage funds of UGX.0.23Bn; under payment of salaries worth UGX. 119,289,474; irregularly paid one staff who had retired UGX. 1,971,915; over remittance of payroll deductions worth UGX.10,164,672  Additionally, the Municipal Council did not prepare monthly wage, pension and gratuity performance analysis and thus did not submit quarterly returns on payroll to MoPS; 22 staff were paid a total of UGX. 37,734,317 off the IPPS; 15 employees were paid a total of UGX.7.9 million without signed pay change reports; 03 newly recruited/transferred employees and 6 pensioners delayed to access payroll; Un-deducted PAYE from political leaders’ gratuity resulting in unpaid tax of UGX. 2,607,660  I noted that the verification forms and copies of the verification cards for all employees and pensioners/beneficiaries were not on the respective personal files  The Municipal Council had outstanding receivables of UGX. 1,705,945,185 that had not been recovered by year end.  Municipal Council had outstanding payables of UGX. 650,570,897 unsettled by year  I noted that the Municipal Council had not prepared and approved a strategic plan that is aligned to the NDP-III at the time of audit  I noted a number of issues in the implementation of the approved budget such as; Failure to quantify outputs; partial and non-implementation of planned activities delayed submission of performance reports; under performance of revenues worth UGX. 801,240,396  Noted URF underfunding of UGX 24,821,498 that affected road maintenance at the Municipality  Iganga Municipal Council did not have land titles for 15 of the 25 pieces of land with some land files deemed missing (Bupala land). | +|---|---|---| +|| Branch Kampala | Summary of Key Findings | +| 01. | Buikwe DLG Opinion Unqualified |  I noted a number of anomalies during review of the district pension & salary payrolls such as; Over payment of salary to 7 staffs worth UGX. 6,542,796; Underpayment of salaries to 24 employees worth UGX. 20,560,692; payment of salaries worth UGX 4,697,808 to two (2) staffs that was no longer in service and irregular deduction of loan instalments worth UGX. 56,120,313 for 23 employees.  Additionally, I observed that there was delayed access to payroll by ten (10) new employees; un-deducted PAYE from political leaders’ gratuity resulting in unpaid tax of UGX. 10,214,875; and unpaid pension and gratuity worth UGX. 95,481,460 | + + +339 + +--- + +||  I noted a number of issues in the implementation of the approved budget such as; under absorption of funds worth UGX.1.11Bn that was swept back to consolidated fund account and under performance of the releases from government worth UGX.2,590,769,685;  The district mischarged expenditure worth UGX. 55,352,971 on wrong budget lines  The district had unrecovered funds worth UGX. 597,864,391 from YLP and UWEP groups.  I noted off budget funding worth UGX.1,460,725,115 received for Result Based Financing (RBF) from the ministry of Finance.  I also noted that the original copy of the title for Plot 18 Kyaggwe block 564, land at Nansagazi landing site measuring 7.06 hectares was missing from the safe. | +|---|---| +| 02. | Buvuma DLG Opinion Unqualified |  I noted a number of anomalies during review of the district pension & salary payrolls such as; Over payment of salaries worth UGX. UGX.1,243,832; Underpayment of salaries worth UGX. UGX.1,667,474; Wrong computation of gratuity for four (4) pensioners worth UGX.2,382,045 and UGX.1,325,359 respectively; under remittance of employee’s salary deductions worth UGX.139,719,468; unpaid salaries worth UGX. 0.883 Bn and delayed remittance of deductions to UCLA/UBA worth UGX.224 million  Additionally, I observed that there was delayed access to payroll by twenty (20) new employees and two (2) pensioners; un- deducted PAYE from political leaders’ gratuity resulting in unpaid tax of UGX.18,624,938 and payment of one (1) pensioner worth UGX.10,519,628 off the IPPS.  I noted a number of issues in the implementation of the approved budget such as; partial implementation of planned activities; under absorption of funds worth UGX. 0.888 Bn; under performance of the releases from other government units worth UGX.1,004,434; delayed submission of quarterly monitoring reports to OPM & MoFPED and late submission of performance reports  The district mischarged expenditure worth UGX.31,344,359 on wrong budget  I noted unrecovered funds of YLP and UWEP worth UGX.426,197,440 and UGX.161,592,376 respectively | +| 03. | ENTEBBE MC Opinion |  I noted a number of anomalies during review of the Municipal pension & salary payrolls such as; Over payment of salaries | + + +340 + +--- + +|| Unqualified | worth UGX.5,237,820; payment of salaries worth UGX.2,734,481 to three (03) staffs that were no longer in service; over and under remittance of salaries worth UGX17,579,629 and UGX,8,495,808 respectively  Additionally, I observed that there was delayed access to payroll by ten (10) pensioners and un-deducted PAYE from political leaders’ gratuity resulting in unpaid tax of UGX,2,607,660  The MC had outstanding receivables totaling to UGX.1, 280,357,120 for YLP, UWEP and uncollected local revenue.  Municipal Council outstanding commitments of UGX 170,801,502 by close of the financial year  I noted a number of issues in the implementation of the approved budget such as; under absorption of funds worth UGX. 5,594,339,871; under performance of the donor worth UGX 80,040,000 & shortfalls in local revenue worth UGX.3,507,045,896;  I noted that there was an over commitment by the Municipal council of funds worth UGX. 6,503,237,230 under the USMID project through and agreement signed with M/s China Wu Yi Co. Ltd on the 21 st April 2021. | +|---|---|---| +| 04. | Luwero DLG Opinion Unqualified |  I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, Over payment of salary worth UGX.150 million; unpaid salaries worth UGX.1.254 Bn and under/over remittance of employee salaries worth UGX.165,627,734 and UGX.37,026,373 respectively  The district did not have an approved strategic plan that is aligned to the NDP-III at the time of audit.  Additionally, I observed that there was delayed access to payroll by thirty-eight (38) new/transferred employees and twenty- two (22) pensioners and un-deducted PAYE from political leaders’ gratuity resulting in unpaid tax of UGX.15,523,074  I noted a number of issues in the implementation of the approved budget such as; under performance worth UGX. 1,317,898,459; incomplete works at Katikamu Seed Secondary School and under absorption of funds worth UGX.1.256 Bn  The district received off-budget financing worth UGX.1,002,619,377 directly from Ministry of Health under Result Based Financing Programme (RBF)  The district mischarged expenditure worth UGX.8,575,441 on wrong budget lines.  | + + +341 + +--- + +| 05. | MITYANA DLG Opinion Unqualified |  I noted a number of anomalies during review of the district pension & salary payrolls such as; Over payment of salaries worth UGX.2,992,554; Wrong computation of gratuity worth net overpayment of UGX. 2,271,141; payment of salaries worth UGX.4,057,892 to ten (10) staffs that were no longer in service; irregular deduction of loan instalments for three (3) staff worth UGX. 1,085,168; over and under remittance of employees’ salaries worth UGX. 9,347,419 and UGX.52,480,527 respectively and payroll deductions to UCLA/UBA worth UGX. 10,193,805  Additionally, I observed that there was delayed access to payroll by thirty (30) new employees and sixteen (16) pensioners; un- deducted PAYE from political leaders’ gratuity resulting in unpaid tax of UGX. 12,460, 278 and unremitted PAYE worth UGX.41,763,487  Failure to remit local government revenue worth UGX.49,502,388 to LLGs  The district did not have an approved strategic plan that is aligned to the NDP-III at the time of audit.  I noted issues such as incomplete works and under absorption of funds worth UGX.0.7 Bn in the implementation of the approved budget.  The district lacked a title of land where the health Centre is being constructed. | +|---|---|---| +| 06. | Mukono DLG Opinion Unqualified |  I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, Over payment of pensioners/employees worth UGX2,503,100 and UGX. 5,442,660 respectively. Underpayment worth UGX. 4,860,118; payment of salaries worth UGX.6,175,829 to nine (9) staffs that was no longer in service and irregular deduction of loan instalments for five (5) staff worth 3,165,094  Additionally, I observed that there was delayed access to payroll by fourteen (14) new employees and fourteen (14) pensioners; failure to utilize wage funds of UGX.0.1 billion; un-deducted PAYE from political leaders’ gratuity resulting in unpaid tax of UGX. 12,104,504 and payment of five (5) staffs and three (3) pensioners worth UGX.9,195,665 off the IPPS; over/ under remittance of employee’s salary deductions worth UGX. 2,345,800 and UGX. 97,808,530 respectively.  I noted that 14 employees were paid a total of UGX. 2,875,407 without signed pay change reports.  I noted a number of issues in the implementation of the approved budget such as; incomplete works at Mukono General | + + +342 + +--- + +|| Hospital and Kimenyedde Seed Secondary School; under absorption of funds worth UGX.0.4bn that was swept back to consolidated fund account and under performance worth UGX.1, 909251149; | +|---|---| +| 07. | MUKONO MC Opinion Unqualified |  I noted a number of anomalies during review of the Municipal pension & salary payrolls such as; Failure to submit wage estimates to MoPs, payment of salaries worth UGX 11.1M to nine (9) staffs that was no longer in service and unpaid pension worth UGX.106.9M  Additionally, I observed that there was delayed access to payroll by four (4) new employees and seven (7) pensioners; un- deducted PAYE from political leaders’ gratuity resulting in unpaid tax of UGX 2.6M and payment of fifty-four (54) staffs and one (1) pensioner worth UGX 60.5M off the IPPS  The Municipal Council did not have an approved strategic plan that is aligned to the NDP-III at the time of audit.  I noted an issue of under performance of the releases from other government units worth UGX.2,529,600,000; in the implementation of the approved budget | +| 08. | Nakaseke DLG Opinion Unqualified |  I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit pension and gratuity estimates to MoPs, Underpayment of pension/gratuity worth UGX.104,392,407; irregular deduction of loan instalments of seven (7) employees worth UGX.7, 853,306; unpaid pension and gratuity worth UGX.77, 373,425; over and under remittance of employee salaries deductions worth UGX.51, 659,500 and UGX.3, 303,310 respectively and unpaid pension arrears worth UGX.245,882,164  The district had outstanding Payables worth UGX.467,701,993 and Receivables worth UGX.1,660,675,633 by close of financial year  Additionally, I observed that there was delayed access to payroll by twenty-two (22) employees and twenty-five (25) pensioners; un-deducted PAYE from political leaders’ gratuity resulting in unpaid tax of 14, 265,549 and payment of two (2) pensioners worth UGX.6,199,129 and 1 staff worth UGX.26,750,870 off the IPPS  I noted that Butalangu HCIII lacked laboratory, théâtre and maternity ward equipment  I noted a number of issues in the implementation of the approved budget such as; shoddy works on roads- Kinyogoga- Kyabalongo- Kitindo 18.0Km and Kalagala- Kyamaweno- Kinyogoga 34km; incomplete works at Kalenge HC III and under absorption of funds worth UGX.0.3 billion that was swept back to consolidated fund account. | + + +343 + +--- + +| 09. | Nakasongola District Opinion Unqualified |  I noted a number of anomalies during review of the district pension & salary payrolls such as; under payment of pension worth UGX. UGX.1,510,120; Underpayment of salary worth UGX.13million; Wrong computation of gratuity worth net overpayment of two (2) pensioners worth UGX.20,784,707; payment of salaries worth UGX. 23,149,880 to eighteen (18) staffs that were no longer in service and irregular deduction of loan instalments worth UGX.307,637,65.  Under remittance of salary deductions worth UGX.132,371,427  I noted that the district made payroll deductions of UGX.16 million, but did not remit to UCLA/UBA.  I noted outstanding UWEP and YLP advances worth UGX.665,481,500 by year end  Additionally, I observed that there was delayed access to payroll by eighteen (18) new employees and thirteen (13) pensioners and un-deducted PAYE from political leaders’ gratuity resulting in unpaid tax of UGX.12,011,160  The district had outstanding pension and gratuity arrears worth UGX.234,272,456 at year end.  I noted a number of issues in the implementation of the approved budget such as; un implemented works at a Seed School; under absorption of funds worth UGX.0.6 billion and under performance of the releases from other government units worth 169 Mn;  | +|---|---|---| +| 10. | Nansana MC Opinion Unqualified |  I noted a number of anomalies during review of the Municipal pension & salary payrolls such as; Over payment of salaries/pension worth UGX. 2,494,859 and UGX.24,488,037 respectively; Underpayment of pension worth UGX.11,791,871; and irregular deduction of loan instalments worth UGX.18,027,312.  Un recovered UWEP/YLP funds of UGX.899,208,480  The Municipal Council did not have an approved strategic plan that is aligned to the NDP-III at the time of audit.  Additionally, I observed that there was delayed access to payroll by three (3) new employees and nineteen (19) pensioners; un- deducted PAYE from political leaders’ gratuity resulting in unpaid tax of UGX. 3,122,640  I noted a number of issues in the implementation of the approved budget such as; shoddy works on the road construction; under absorption of funds worth UGX.0.278 billion that was swept back to consolidated fund account and under performance of the releases from other government units worth | + + +344 + +--- + +|| UGX.534,603,597;  Failure to prepare monthly wage, pension and gratuity performance analysis  The Municipal Council reported receivables balance of UGX.1,780,766,221  The Municipal Council had outstanding payables of UGX. 87,603,199 by close of the financial year  I noted that UGX.1,131,374,846 (103%) was spent on 2km reflecting over expenditure of UGX.51,408,546. The cost variations in projects planned works affects implementation of other maintenance activities. | +|---|---| +| 11. | Wakiso District Opinion Unqualified |  I noted a number of anomalies during review of the district pension & salary payrolls such as Underpayment of pension worth UGX.2, 010,117,938; payment of salaries worth UGX.5, 278,315 to five (5) staffs that was no longer in service; unpaid salaries UGX.8, 379,873 and accrued pension worth UGX.265,144,965  The outstanding payables for pension and gratuity worth UGX.2, 405,604,903  Additionally, I observed that there was delayed access to payroll by seventeen (17) pensioners; failure to utilize wage funds of UGX.0.7 Bn; un-deducted PAYE from political leaders’ gratuity resulting in unpaid tax of 14, 993,898 and payment eleven (11) pensioners worth UGX.303, 639,396 off the IPPS  I noted a number of issues in the implementation of the approved budget such as; shoddy works at Nakitokolo HCIII; delayed works at Kasoozo HCIII; incomplete works at Wakiso Seed School; under absorption of funds worth UGX.1,108,628,816 that was swept back to consolidated fund account; under performance of the donor & releases from other government units worth UGX.6,616,905,830; | +| 12. | KIRA MC Opinion Unqualified |  I noted a number of anomalies during review of the Municipal pension & salary payrolls such as; Failure to submit wage estimates to MoPs, Over payment of salary worth UGX. 12,367,380; Underpayment of salary worth UGX. 1,513,296; Wrong computation of gratuity worth net overpayment of UGX.23,863,854 and payment of salaries worth UGX 9,760,420 to nine (09) staffs that were no longer in service  I noted Over remittance of salary deductions worth UGX. 36,961,624  I noted outstanding receivables worth of UGX. 3,171,846,861  Additionally, I observed that there was delayed access to payroll | + + +345 + +--- + +|| by three (3) new employees and sixteen (16) pensioners; un- deducted PAYE from political leaders’ gratuity resulting in unpaid tax of UGX. 3,015,540 and payment worth UGX. 435,546,906 off the IPPS  failure to prepare monthly wage, pension and gratuity performance analysis  I noted a number of issues in the implementation of the approved budget such as; incomplete construction works; under absorption of funds worth UGX.0.16Bn that was swept back to consolidated fund account; under performance of the donor & releases from other government units worth UGX.3,402,046,314 and failure to submit quarterly monitoring reports to OPM & MoFPED  I noted that the Municipal Council received off-budget financing worth UGX135,974,720 for Result Based Financing (RBF) from the Ministry of Health  The district mischarged expenditure worth UGX. 20,821,532 on wrong budget lines. | +|---|---| +| 13. | MAKINDYE SABAGABO MC Opinion Unqualified |  I noted a number of anomalies during review of the municipal pension & salary payrolls such as, Over payment of salary worth UGX. 8,992,140; Wrong computation of gratuity worth net underpayment of UGX. 9,709,876; payment of salaries worth UGX 20,892,893 to staffs that was no longer in service and irregular deduction of loan instalments worth UGX. 29,407,510.  The Municipal Council reported payables worth UGX.532,235,004 at end the financial year  The Municipal Council reported receivables worth UGX.750,391,890  The Municipal Council did not have an approved strategic plan that is aligned to the NDP-III at the time of audit.  Additionally, I observed that there was delayed access to payroll by four (4) new employees and four (4) pensioners and un- deducted PAYE from political leaders’ gratuity resulting in unpaid tax of UGX.3,015,540  Un recovered UWEP/YLP funds worth UGX.459,332,075  I noted issues in the implementation of the approved budget such as; incomplete works on Mutundwe-Kisugula-Bunamwaya road; under absorption of funds worth UGX. 0.421 billion. and under performance of the releases from other government units worth UGX.6,801,993,716  The district mischarged expenditure worth UGX. 304,575,692 on wrong budget lines. | + + +346 + +--- + +||  A total of 19.1km at an estimated cost of UGX.70, 200,000 was planned to be undertaken. The audit revealed that 19.1 km were actually undertaken at a cost of UGX.152, 254,000 leading to an over expenditure of UGX. 82,054,000.  I noted unrecovered funds from groups worth UGX.459,332,075 | +|---|---| +|| Masaka Branch |  Summary of Key Findings | +| 01. | Bukomansimbi DLG Opinion Unqualified |  I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, Underpayment of salary worth UGX.13,134,104; payment of salaries worth UGX.5,195,665 to one (1) staff that was no longer in service; unpaid salary worth UGX.20,579,078; under payments of 5 pensioners worth UGX.1,133,789; under remittance of payroll deduction worth UGX.185,012,274; Amount worth UGX.10,081,159 wasn’t remitted to UCLA/UBA and amount worth UGX.175,148,725 had not been remitted to URA  Additionally, I observed that there was delayed access to payroll by Sixteen (16) newly recruited/ transferred employees and Ten (10) pensioners; un-deducted PAYE from political leaders’ gratuity worth UGX.33,045,600, leading to an under deduction worth UGX.26,510,404 and payment of twenty (20) staffs worth UGX.4, 725,034 off the IPPS.  I noted that the entity had prepared a strategic plan but the National Planning Authority had not yet approved it at the time of audit.  I noted a number of issues in the implementation of the approved budget such as; the shortfalls in local revenue collections of UGX 9,848,129; Donor financing worth UGX. 759,350,373; under absorption of funds worth UGX.340,000,000 that was swept back to consolidated fund account; delayed submission of quarterly monitoring reports to OPM & MoFPED and Shoddy works in construction of classroom blocks  The district lacked land title for land on which Bukango Seed Secondary School is situated. | +| 02. | Kalangala DLG Opinion Unqualified |  I noted a number of anomalies during review of the district payroll such as; an unabsorbed balance of UGX 1.08 billion; an Over payment of salaries worth UGX 1,265,254, Underpayment of salaries of UGX.37, 719,627; Payment of salaries worth UGX. 1,480,155 to one (1) staff who had retired; under remittance of salary deductions worth UGX. 73,649,208 from employees’ salaries; Deductions worth UGX. 100,753,524 relating to 57 employees without letters of under taking; unremitted deduction to UCLA/UBA worth UGX.2, 210, 654.  Additionally, I observed that the district did not remit deductions worth UGX.51,366,809 to URA; un-deducted PAYE from political | + + +347 + +--- + +|| leaders’ gratuity worth UGX.51,416,102, leading to an under deduction worth UGX UGX.11,323,785; Delays in accessing pay roll and pension payroll; payment of salaries worth UGX.14,222,733 to Nine (9) staffs who were off IPPS;  I noted that the entity had not prepared and approved its strategic plan by NPA and thus could not confirm if the plan is aligned to NDP 111  I noted a number of issues in the implementation of the approved budget such as; Failure to quantify outputs; partial and non-implementation of planned activities delayed submission of performance reports; under performance of revenues worth UGX.867,111,016 and under absorption of funds worth UGX.675,040,597 that was swept back to consolidated fund account at the year end.  Mischarged funds worth UGX.357,586,292 on inappropriate budget codes | +|---|---| +| 03. | Kyotera DLG Opinion Unqualified |  I noted a number of anomalies during review of Kyotera district payroll such as; Failure to submit wage estimates to MoPs; unabsorbed wage fund balance of UGX. 0.32 billion; Over payment of salaries worth UGX.29, 467,392; Unauthorized loan deductions worth UGX.148 million from 100 employees with no undertaking letters; un-deducted PAYE from political leaders’ gratuity worth UGX 57,855,806, leading to an under deduction worth UGX.13, 730,838.  Additionally, I observed that there were delays in accessing salary and pension payroll; Failed to prepare monthly wage, pension and gratuity performance analysis for submission to MoPS and Payment of salaries worth UGX.7, 166,620 to Three (3) staffs who were off the IPPS.  The district mischarged UGX.4, 876,514 on inappropriate budget codes other than those budget for  I noted that the district had prepared a draft strategic plan pending approval by NPA at the time of audit;  I noted a number of issues in the implementation of the approved budget such as; Failure to quantify outputs; partial and non-implementation of planned activities delayed submission of performance reports; delay commencement of work by contractor under the UGIFT program; under performance of revenues worth UGX.725,450,031 and under absorption of UGX.993, 780,260  Received off budget financing worth UGX.319,540,631 from Ministry of Health (MOH)  Not secured ownership of the land where the seed school and | + + +348 + +--- + +|| health Center are being constructed | +|---|---| +| 04. | Lwengo DLG Opinion Unqualified |  I noted a number of anomalies during review of the district payroll such as; Delay to submit wage estimates to MoPs; An unabsorbed wage funds worth UGX.1.5 billion; an under payment of salaries worth UGX 8,075,359; Accrued Pensions worth UGX.90,656,783 not yet paid; Over payment of gratuity worth UGX. 11,742,937 and under payment of gratuity amounting to UGX. 15,885,858; Payment of salaries worth UGX. 8,620,432 to Eighteen (18) staffs who had retired.  Additionally, I noted unauthorized loan deduction worth UGX.8 million to International Medical Link (IML); un-deducted PAYE from political leaders’ gratuity worth UGX.87,948,356, leading to an under deduction worth UGX.12,070,409; Delays in accessing pay roll and pension payroll.  I noted that the entity had prepared a strategic plan which had not yet been approved by NPA in respect to alignment to the NDP-III;  I noted a number of issues in the implementation of the approved budget such as; Failure to quantify outputs; partial and non-implementation of planned activities delayed submission of performance reports; under performance of revenues worth UGX. UGX.541,868,161 and under absorption of UGX.1,952,031,565  Received off budget financing worth UGX.223,549,580 from Ministry of Health without informing the PSST | +| 05. | Masaka DLG Opinion Unqualified |  I noted that Masaka District submitted wage estimates to MoPs on 30th March 2020, which was a delay of 182 days; an unabsorbed balance of UGX 0.85 billion; under payment of UGX of salaries worth 58,950,820; under payment pension worth UGX 198,728,097 and unpaid pension of UGX 53,041,554; The District wrongly computed the gratuity benefit of 21 pensioner/beneficiary leading to over payment of UGX 1,431,442 and under payment of UGX 37,726,688; UGX. 82,631,676 was paid to 38 staff who had retired, transferred, absconded or died; an over and under remittance amounting to UGX. 14,013,953 and UGX. 12,619,869 of payroll deduction.  Additionally, the District made payroll loan deductions of UGX.1, 064,546,679, but did not remit UGX.10, 874,315 to UCLA/UBA; under deduction of PAYE worth UGX. 8,988,018 from payments to political leaders; noted that 30 newly recruited/ transferred employees and 41 pensioners delayed to access payroll; I noted that 24 employees were paid a total of UGX. 263,080,952 without signed pay change reports; 07 staffs and 19 pensioners were paid a total of UGX.20, 688,721 and UGX.85, 258,552 respectively off the IPPS. | + + +349 + +--- + +||  The district mischarged funds worth UGX. 15,255,772 on account codes other than those prescribed for either salary, pension or gratuity  I noted that the entity had had not prepared and approved the strategic plan at the time of audit;  I noted a number of issues in the implementation of the approved budget such as; Failure to quantify outputs; partial and non-implementation of planned activities delayed submission of performance reports; under performance of revenues worth UGX. 11,296,979,720 and under absorption of UGX. 1,258,107,623; Incomplete works at Bukakata seed Secondary School | +|---|---| +| 06. | Sembabule DLG Opinion Unqualified |  I noted a number of anomalies during review of the district pension & salary payrolls such as; an unabsorbed balance of UGX.0.73billion; an under payment of salaries worth UGX.9, 696,016; Delays in accessing pension payroll; Failure to prepare monthly wage, pension and gratuity performance analysis; 72 staffs and 14 pensioners were paid a total of UGX.76,444,546 off the IPPS.  I noted that the management had prepared a strategic plan which had not yet been approved by NPA to confirm its alignment with NDP-III;  underperformance 275,905,089; under absorption of funds worth UGX.1,229,179,117; Partial Implantation of One (1) output with a total of two (2) activities worth UGX.0.89Bn; Late submission of performance reports;  I noted underfunding from URF for road maintenance worth UGX.27,517,358 that affected implementation of planned activities | +| 07. | Lyantonde DLG Opinion Unqualified |  I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, Underpayment of pension worth UGX.27,094,530; Overpayment of Salary worth UGX.29,716,471; an unabsorbed balance of UGX.0.26 billion that was subsequently swept back to the consolidated fund account and wrong computation of gratuity benefit for four (04) pensioner worth net overpayment of UGX.4,437,740  Further, the district made payment of salaries worth UGX.3,279,528 to four (4) staffs that who had either retired, transferred, absconded or died; an over and over remittance of payroll deductions worth UGX.6,685,000 and UGX.8,713,886 respectively; made unauthorized loan deductions worth UGX.736,802,204 from 400 employees that never had letters of undertaking  Additionally, Tax deductions worth UGX.7,073,772 had not been | + + +350 + +--- + +|| remitted to URA; un-deducted PAYE from political leaders’ gratuity resulting in unpaid tax of A UGX.8,109,728; Twenty- Seven (27) employees recruited did not access the payroll and delays in accessing payroll and pension payroll.  The district mischarged funds worth UGX.5,870,000 on account code other than those prescribed salary, pension and gratuity;  The District paid Seventeen (17) employees worth UGX.22, 846,471 without signed pay change reports; failed to prepare monthly wage, pension and gratuity performance analysis and salaries payment worth UGX.85, 678,850 was paid to Seven (7) staffs off the IPPS.  I noted that the entity had prepared its strategic plan but it was not yet approved by NPA  Under performance worth; under absorption worth; Late submission of Reports;  I noted a number of issues in the implementation of the approved budget such as; Failure to quantify outputs; partial and non-implementation of planned activities delayed submission of performance reports; under performance of revenues worth UGX. 68,650,450 and under absorption of UGX.773,177,804 | +|---|---| +| 08. | Kassanda DLG Opinion Unqualified |  I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, an unabsorbed balance of UGX.0.20 billion; unpaid accrued pensions worth UGX.89,374,764;Payment of salaries worth UGX.29,042,083 to Eighteen (18) staffs who had either retired, transferred, absconded or died; an over and under remittance of deductions worth UGX.80,614,103 and UGX.11,056,051 respectively; made unauthorized loan deductions worth UGX.684,121,646 from 271 employees that neither had letters of undertaking nor letters of consent.  Additionally, I observed a deduction of worth UGX.31,937,764 from 26 employees who were not in approval and deduction report and a deductions of UGX.63,539,341 from 51 employees who were not in active deduction report but were in approval report; 15 employees had irregular loan end dates; Delays in accessing payroll and pension payroll; Payment of Sixteen (16) staffs and Six (06) pensioners worth UGX.205,954,862 off the IPPS; and payments worth UGX.47,984,473 off the payroll to 33 employees.  I noted that the entity had not prepared and approved a strategic plan that is aligned to the NDP-III at the time of audit;  I noted a number issues in the budget performance such as | + + +351 + +--- + +|| Underperformance of funds worth UGX.243,523,703; Under absorption of funds worth UGX.744,143,791; Failure to quantify outputs; partial and non-implementation and late submission of performance reports. | +|---|---| +| 09. | Mubende DLG Opinion Unqualified |  I noted that the District delayed to submit wage estimates to MoPs; An under absorption worth UGX.1.36 Billion and was subsequently swept back to the consolidated fund account; unpaid salaries worth UGX.9,974,064; Over payment of one (1) pensioner worth UGX.2,420,407; Unpaid salaries & pension worth UGX.163,350,521; Under payments worth UGX.765,835 to Twenty (20) staffs using wrong salary scale; Payment of salaries worth UGX.17,448,575 to Fourteen (14) staffs who had either retired, transferred, absconded or died;  Additionally, I observed an under remittance of salary deduction worth UGX.246,546,709; Made unauthorized loan deductions worth UGX.123,209,904 from 30 employees that neither had letters of undertaking nor evidence of consent; Delays in accessing payroll and pension payroll; Residual Arrear payments worth UGX.380,760,596 paid to 17 staffs who were not part of MOFPED approved schedule; Unpaid pension to Six (6) pensioners worth UGX.118,064,322; Failed to prepare monthly wage, pension and gratuity performance analysis for submission to MoPS; Payment of Five (5) staffs worth UGX.4,831,538 off the IPPS;  I noted that the district had prepared its strategic plan but had not had its plan approved by NPA at the time of audit;  I noted a number issues in the budget performance such as Underperformance of funds worth UGX.117,978,419; Under absorption of funds worth UGX.1,625,514,838; Failure to quantify outputs; partial and non-implementation and late submission of performance reports. | +| 10. | Gomba Opinion Unqualified |  I noted that the District delayed to submit wage estimates to MoPS; an unabsorbed balance of UGX.0.8 billion; over payment of UGX.649, 200 to Mujabi James; an under payment of UGX.1, 764,651; Unpaid salaries worth UGX.1, 176,393; noted that the District had an outstanding Accrual worth UGX.17, 271,309 at the end of the year; the District made unauthorized loan deductions worth UGX.7, 592,724 from 4 employees that neither had letters of undertaking nor existed in the reports.  Additionally, I observed delays in accessing payroll and pension payroll; I noted that five (05) ineligible persons accessed the payroll using forged Education Service Commission (ESC) minutes; Twenty Seven (27) staffs were paid worth UGX.31, 972,130 off the IPPS.  I noted that the entity had not had the strategic plan approved at the time of audit  I noted a number of issues in the implementation of budget such | + + +352 + +--- + +|| as; Underperformance worth UGX.113,179,395; under absorption of funds worth UGX.1,088,912,187 that was subsequently swept back to the consolidated fund account; Late submission of reports. | +|---|---| +|| Hoima Branch | Summary of Key Findings | +| 01 | Buliisa DLG Opinion Unqualified |  I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, Over payment of salary worth UGX.516,940 to one (1) employee; payment of salaries worth UGX.962,591 to two (2) staffs that was no longer in service; unauthorized loan deductions worth UGX.19,720,463 from 20 employees and net under payment of payroll deductions worth UGX.218,852,589  Additionally, I observed that there was delayed access to payroll by twelve (12) new employees and three (3) pensioners; failure to utilize wage funds of UGX.1.39Bn; un- deducted PAYE from political leaders’ gratuity resulting in unpaid tax of UGX.8,971,020 and payment of worth UGX.1,646,800 off the IPPS  I noted a number of issues in the implementation of the approved budget such as; Failure to quantify outputs that affected measurement of performance, partial or non- implementation of planned activities, late submission of quarterly reports; under absorption of funds worth UGX.721,028,206 that was swept back to consolidated fund account; under performance of the donor & releases from the government worth UGX.1,359,130,302  I noted that the district had prepared and submitted the Strategic plan to NPA but was still pending approval.  In regards to Covid-19 funds, I noted that out of the total receipts of UGX.81, 933,334, the district absorbed UGX.81, 933,334, representing absorption level of 100%. Additionally, I noted that the distribution of many of non-cash items delayed. | +| 02. | Hoima MC Opinion Unqualified |  I noted a number of anomalies during review of the Municipal pension & salary payrolls such as; Failure to submit wage estimates to MoPs, Over payment of salary worth UGX UGX.7,453,884 to (3) staffs; under payment of funds worth UGX.29,604,189 and unauthorized loan deductions worth UGX.37,990,205 from 35 employees  Additionally, I observed that there was delayed access to payroll by seven (7) new employees and ten (10) pensioners; failure to utilize wage funds of UGX.0.28Bn; un-deducted PAYE from political leaders’ gratuity resulting in unpaid tax of UGX.12,771,000 and payment of two (2) staffs & seven(7) pensioners a total of UGX.368,827,383 off the IPPS  I noted a number of issues in the implementation of the | + + +353 + +--- + +|| approved budget such as; Failure to quantify outputs that affected measurement of performance, partial or non- implementation of planned activities; Incomplete road works under absorption of funds worth UGX.29,660,979,614 that was swept back to consolidated fund account; under performance of the donor & releases from the government worth UGX.2,515,468,499  The district mischarged expenditure worth UGX.45, 235,346 on wrong budget lines.  I noted that UGX.5,060,453 was paid as residual salary arrears to 5 employees who had not missed salaries in the previous financial year(s)  Payment of funds worth UGX.33,792,884 without authorization of the pay change reports  I noted that the entity’s strategic plan was still in draft form and not approved to confirm that is aligned to the NDP-III at the time of audit.  UGX.19,240,000 remained unaccounted for at the close of the financial year | +|---|---| +| 03. | Hoima DLG Opinion Unqualified |  I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, over payment of salary worth UGX. 1,380,792 to staffs; under payment of funds worth UGX.; payment of salaries worth UGX.27,668,323 were paid to twenty (20) staffs and eleven (11) pensioners were paid a total of UGX.251,898,925 off the IPPS that was no longer in service unauthorized loan deductions worth UGX.721,600,940 from 432 employees  Additionally, I observed that there was delayed access to payroll by ten (10) new employees and eleven (11) pensioners; failure to utilize wage funds of UGX 16.16Bn; un- deducted PAYE from political leaders’ gratuity resulting in unpaid tax of UGX.7,763,400  The district mischarged expenditure worth UGX.180, 754,659 on wrong budget lines.  I noted that the verification forms and copies of the verification cards for 126 employees and 43 pensioners were not on the respective personal files  I noted a number of issues in the implementation of the approved budget such as; partial implementation of planned activities; partially implemented ; late submission of quarterly reports; under absorption of funds worth UGX.1.9Bn that was | + + +354 + +--- + +|| swept back to consolidated fund account;  Delayed submission of regular reports  I noted that the Hoima district did not have an approved strategic plan that is aligned to NDP-III and therefore lacks a certificate of compliance issued by National Planning Authority.  Regarding Covid-19 funds, Out of the total receipts of UGX.111, 450,000, the District absorbed UGX.111, 450,000 representing an absorption level of 100%. | +|---|---| +| 04. | Hoima RRH Opinion Unqualified |  I noted a number of anomalies during review of the hospital pension & salary payrolls such as; Failure to submit wage estimates by the hospital to MoPs, over payment of pension worth UGX.3, 138,332. ; Underpayment of worth 2,282,632; The deductions were from nine (9) employees’ salaries worth UGX18,438,987  Additionally, I observed that there was delayed access to payroll by twenty (20) new employees and four (4) pensioners;;un paid pensioners worth UGX 13372393.un-deducted PAYE from political leaders’ gratuity resulting in unpaid tax of UGX.13372393 Failure to quantify outputs,  I noted a number of issues in the implementation of the approved budget such as; failure to quantify outputs, partial implementation or non-implementation of planned activities under absorption of funds worth UGX.1.78Bn that was swept back to consolidated fund account; under performance of the donor & releases from other government units worth UGX.0.03Bn; delayed submission of quarterly monitoring reports to OPM & MoFPED  The hospital mischarged expenditure worth UGX.38 million on wrong budget lines.  I noted that the entity’s strategic plan was still in draft form and not approved to confirm that is aligned to the NDP-III at the time of audit.  Failure to quantify outputs, partial implementation or non- implementation of planned activities | +| 05. | Kagadi DLG Opinion Unqualified |  I noted a number of anomalies during review of the district pension & salary payrolls such as; Wrong computation of gratuity worth net overpayment of UGX. 1,8273,030; payment of salaries to three(3) staffs that was no longer in service and under remittance worth UGX. 35,519,020; and payment of two (2) staffs worth UGX. 3450720 off the IPPS  I noted a number of issues in the implementation of the approved budget such as; unabsorbed balance worth UGX 1.5Bn partial implementation of funds worth UGX 0.155Bn under | + + +355 + +--- + +|| absorption of funds worth UGX. 12,314,490,181 that was swept back to consolidated fund account; under performance of the donor & releases from other government units 3,329,413,255; delayed submission of quarterly monitoring reports to OPM & MoFPED  I noted that the entity’s strategic plan was still in draft form and not approved to confirm that is aligned to the NDP-III at the time of audit.  I noted a delay of 9 days for the month of July in the remittance of PAYE deductions to URA | +|---|---| +| 06. | Kakumiro DLG Opinion Unqualified |  I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs; Underpayment of salaries worth UGX. 10,643,039 to employees underpayment pension worth UGX.4, 511,350; under remittance worth UGX.146, 308,447 and payment of three (3) staffs worth UGX.8,763,215 off the IPPS  I noted a number of issues in the implementation of the approved budget such as; unspent balance worth UGX 2275637090 ; under absorption of funds worth UGX.9,191,378,616 that was swept back to consolidated fund account; partial or non-implementation of planned activities worth 0.37Bn under performance of the donor & releases from other government units worth UGX.0.4Bn; delayed submission of quarterly monitoring reports to OPM & MoFPED unabsorbed funds worth UGX.138,823,634; delayed completion of construction works at St Matia Mulumba seed secondary school.  I noted that the entity’s strategic plan was still in draft form and not approved to confirm that is aligned to the NDP-III at the time of audit.  I noted that the District did not remit PAYE deductions for the month of May worth UGX.138, 823,634 to URA.  I noted that the district had ongoing service delivery | +| 07 | Kibaale DLG Opinion Unqualified |  I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, Over payment of pension worth UGX.288, 866,531; Underpayment of pension worth UGX.4,082,68 underpayment of pensioners UGX.387,086,804; payment of salaries worth UGX.20,837,768 to fifteen (15) staffs that was no longer in service  I noted a number of issues in the implementation of the approved budget such as unspent balance worth UGX.1,861,400,617; underperformance of budgets worth UGX.14,350,250,339; delayed submission of quarterly monitoring reports to OPM & MoFPED; delayed completion of construction works at Nyamarwa Seed School secondary school; | + + +356 + +--- + +|| under deduction of PAYE to URA worth 20,837,768  I noted that the entity’s strategic plan was still in draft form and not approved to confirm that is aligned to the NDP-III at the time of audit.  I noted a number of issues in the implementation of the approved budget such as unspent balance worthUGX.1;861;400,617;unabsorbed funds worth UG.1.35 billion; delayed completion of construction works at Nyamarwa Seed School secondary school; under deduction of PAYE to URA worth 20,837,768  I noted that funds amounting to UGX.24, 910,982 related to gratuity expense but were charged on pension arrears code.  I reviewed the effectiveness and reliability of the IPPS/NID staff/pensioner/beneficiaries’ verification interface and noted in- adequate sensitization and training in the use and navigation of the system, System was not reliable and effective and operational challenges were encountered; such as delayed update of changes in employee details by NIRA, NID interface does not show facial images for some employees and network challenges. | +|---|---| +| 08 | Kikuube DLG Opinion Unqualified |  I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, Over payment of salaries worth UGX.4,919,860; Salaries worth UGX. 5,747,552 to six (6) staffs that was no longer in service and payment of twenty two (22) staffs worth UGX.198,611,180 off the IPPS  I noted a number of issues in the implementation of the approved budget such as; under absorption of funds; under performance of the donor & releases from other government units worth UGX.9.19Bn; partial implementation of funds worth UGX. o.95 delayed submission of quarterly monitoring reports to OPM & MoFPED  I noted that whereas UGX.756,788,804 was deducted from employees’ salaries to be remitted to different beneficiaries, UGX.758,906,480 was remitted leading to an over and under remittance of UGX.2,117,676  I noted that the entity’s strategic plan was still in draft form and not approved to confirm that is aligned to the NDP-III at the time of audit.  Payments to ten (10) employees worth 1457195 without signed a pay change report  I noted that UGX.68, 527,000 remained unaccounted for at the close of the financial year.  I noted delayed completion of Nyairongo Seed Secondary School | + + +357 + +--- + +||  Under Development Response to Displacement Impacts Project (DRDIP), I noted that Procurements worth UGX.2,524,177,097 were undertaken using community procurement method which were not reported in quarterly reports submitted to the Authority. Besides, they were not included in the approved integrated annual work plan of the District. | +|---|---| +| 09 | Kyankwanzi Opinion Unqualified |  I noted a number of anomalies during review of the district pension & salary payrolls such as; Underpayment of pension worth UGX.2,819,483 and payment of eight (8) staffs worth UGX.8,810,706 off the IPPS  I noted a number of issues in the implementation of the approved budget such as; failure to quantify outputs, partial and non-implementation of planned activities; unabsorbed wage fund balance worth UGX.0.84Bn; under deduction of PAYE worth UGX.8, 593, 471; unabsorbed balance worth UGX. 69,083,003; under absorption of funds worth UGX.198,251,670 that was swept back to consolidated fund account; under performance under performance worth UGX 1.11Bn.  The district mischarged expenditure worth UGX.275, 847,736 on wrong budget lines.  The district mischarged expenditure worth UGX.50, 174,102 on wrong budget lines.  I noted outstanding pensioners arrears worth UGX.40,454,541  I noted that the entity did not prepare monthly wage, pension and gratuity performance analysis and did not submit quarterly returns on payroll to MoPS.  I noted that the entity had prepared and approved the strategic plan but it was not certified by National Planning Authority. | +| 10. | Masindi DLG Opinion Unqualified |  I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, Over and under payment of salaries; Overpayment of pension worth UG.37, 427,367 and under payment of pension worth UGX.870,105,650; payment of salaries to nine (9) staffs but were no longer in service.  I noted a number of issues in the implementation of the approved budget such as; unabsorbed balance worth 1,240,110,296; under performance of the donor & releases from other government units worth UGX.164Bn that was swept back to consolidated fund account; partial and non-implementation of planned activities; delayed submission of quarterly monitoring reports to OPM & MoFPED and payment of worth 208,659,885 eleven staff(11) off the IPPS  I noted that whereas UGX.3,312,092,285 was deducted from | + + +358 + +--- + +|| employees’ salaries to be remitted to different beneficiaries, only UGX.3,309,501,072 was remitted leading to a variance amounting to UGX.19,992,521.  I noted delays in the remittance of PAYE deductions to URA for 2 months the months  I reviewed the effectiveness and reliability of the IPPS/NID staff/pensioner/beneficiaries’ verification interface and noted in- adequate sensitization and training in the use and navigation of the system, system was not reliable and effective and operational challenges were encountered; such as delays to capture changes on NIRA by IPPS.  I noted that the District prepared a work plan to guide the utilization of funds that were received. | +|---|---| +| 11. | Masindi MC Opinion Qualified |  I noted a number of anomalies during review of the municipal pension & salary payrolls such as; Failure to submit wage estimates to MoPs; over and underpayment of salaries worth UGX.33,863,477 to seventeen (17) staffs that was no longer in service and irregular deduction of loan instalments worth UGX.9, 061,174; under deduction of PAYE amounting to 11,411,400 and 19 staff and 13 pensioners were paid a total of UGX.315,332,447 off IPPS  I noted a number of issues in the implementation of the approved budget such as; under absorption of funds worth UGX.1, 362,275,792 that was swept back to consolidated fund account; partial or non-implementation of planned activities; under performance of the donor & releases from other government units worth UGX. 282,855,823; delayed submission of quarterly monitoring reports to OPM & MoFPED;  I noted that the entity had prepared and approved the strategic plan but it was not certified by National Planning Authority.  I noted that whereas UGX.1,427,190,853 was deducted from employees’ salaries to be remitted to different beneficiaries, UGX.1,149,993,408 was remitted leading to an under remittance amounting to UGX.280,237,640 and over remittance of UGX.3,040,195  I noted that funds amounting to UGX.195,443,591 in relation to pension and gratuity were charged on wrong account codes  I noted that 73 employees were paid a total of UGX.UGX.61, 299,481 without signed pay change reports. | +| 12. | Kiboga DLG Opinion |  I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, over payment of salaries worth UGX3, | + + +359 + +--- + +|| Unqualified | 632,888; Underpayment of salaries worth UGX.6,345,609; overpayment of pension UGX.1, 338,228 and under payment of pension of UGX.3, 404,504; salaries worth UGX. 3,051,636 to two (2) staffs that was no longer in service  I further noted under deduction of PAYE of UGX.5,724,180 to URA and two pensioners were paid a total of UGX.69,008,452 off the IPPS  I noted a number of issues in the implementation of the approved budget such as; unabsorbed wage fund of UGX.0.41Bn; under performance of the donor & releases from other government units worth UGX.1,037,635,628; failure to quantify outputs, partial and non-implementation of planned activities; under absorption of government grants and Non submission of quarterly monitoring reports to OPM & MoFPED  I noted that the entity had prepared and approved the strategic plan but it was not certified by National Planning Authority.  I noted that funds amounting to UGX.40, 000,000 in relation to COVID funds returned by the area Members of Parliament had properly been accounted for.  I noted that different departments at Kiboga district Hospital lacked the required personal protective gear to aid staff execute their duties during the pandemic | +|---|---|---| +| 13. | Kiryandongo DLG Opinion Unqualified |  I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, Over payment of pension salaries worth UGX.1,935,272; overpayment of pension UGX.1,423,052 and under payments of pension UGX.3,591,459; payment of salaries worth UGX. 7,153,511 three (3) staffs that was no longer in service and irregular deduction of loan worth UGX.45, 559,753.  I noted a number of issues in the implementation of the approved budget such as; un absorbed balance wage funds worth UGX 0.28Bn; un quantified outputs; under absorption of funds worth UGX.2,939,664,455 that was swept back to consolidated fund account; under performance of the donor & releases from other government units worth UGX.4,624,951,481; staff payment worth 4,070,605 off the IPPS ;partial and non-implementation of planned activities delayed submission of quarterly monitoring reports to OPM & MoFPED  I noted that the entity had prepared and approved the strategic plan but it was not certified by National Planning Authority.  Deduction Management System, operated by PCA-Payroll Consults Africa.  I noted that 23 employees were paid a total of UGX.46,112,214 without signed pay change reports | + + +360 + +--- + +||  I noted lack of evidence of formal appointment for the contract committee members of the district | +|---|---| +|| Gulu Branch | Summary of Key Findings | +| 01 | Agago DLG Opinion Unqualified |  I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, over payment of salaries worth UGX. 25,241,289; Underpayment of salaries worth UGX. 164,307,857; Underpayment of pension worth UGX 93,335,963; payment of salaries worth UGX. 28,901,916 to seventeen(17) staffs that was no longer in service  Additionally, I observed that there was delayed access to payroll by five (05) new employees and sixteen (16) pensioners; failure to utilize wage funds of UGX.0.3Bn; un-deducted PAYE from political leaders’ gratuity resulting in unpaid tax of UGX. 13,352,540 and payment of twenty two (22) staffs worth of UGX 642,221,799 off the IPPS  I noted a number of issues in the implementation of the approved budget such as; shoddy works in construction of classrooms; incomplete works; under absorption of funds worth UGX. 484,346,069 that was swept back to consolidated fund account; under performance of the donor & releases from other government units worth UGX.1.994Bn.  I noted that UGX.13.7 million was paid as residual salary arrears to eleven (11) employees who had not missed salaries in the previous financial year(s).  I noted that the verification forms and copies of the verification cards for 04 employees and 16 pensioners/beneficiaries were not on the respective personal files  The district had outstanding unrecovered receivables of UGX. 1,376,134,925 at year end.  I noted that the entity had not prepared a strategic plan at the time of audit.  I noted that Agago District received off-budget financing to a tune of UGX. 90.5 million.  I noted that funds to the tune of UGX .237,168,404 were irregularly diverted from the activities | +| 02 | Alebtong DLG Opinion Unqualified |  I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, Over payment of salaries worth UGX.20,617,118; Underpayment of salaries worth UGX.21,081,264, payment of salaries worth UGX. 26,612,830 to twenty(20) staffs that was no longer in service | + + +361 + +--- + +||  Additionally, I observed that there was delayed access to payroll by thirty three (33) new employees and twenty three(23) pensioners; failure to utilize wage funds of UGX.0.8Bn; un- deducted PAYE from political leaders’ gratuity resulting in unpaid tax of UGX. 9,060,528  I noted a number of issues in the implementation of the approved budget such as;; Partial implementation, late submission of quarterly reports; Under absorption of UGX.1,493,165,616 that was swept back to consolidated fund account; under performance of the donor & releases from other government units worth UGX.1.994Bn  The district mischarged UGX. 198, 594,102 charged on account codes other than those prescribed for either salary, pension or gratuity.  I noted that the district paid unverified residual arrears worth UGX. 119,498,458 to 12 pensioners  I noted that the District had outstanding receivables amounting to UGX.2,175,996,458 arising from Contractor’s Prepayment YLP & UWEP  I noted that the district had outstanding payables of UGX.1,732,017,300 (Deposits received UGX.1,689,530,652, Sundry creditors of UGX.25,650,000 and Pension liabilities UGX.16,836,648) amounted to UGX. 3,464,034,600.  I noted that the entity had prepared a strategic plan but the National Planning Authority had not yet approved it at the time of audit.  I noted that UGX.580, 701,955 was charged on items which did not reflect the nature of the expenditure.  I noted during the review of expenditure that the district received UGX.183,961,496 to be transferred to schools for printing materials. These funds were never transferred to the schools.  Over/ under remittance of pays amounted to UGX. 6,239,435 and UGX. 180,339,880 respectively | +|---|---| +| 03 | Amuru DLG Opinion Unqualified |  I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, Over payment of salaries worth UGX 9,787,296, Underpayment of salaries and pensioners worth UGX 122,296,566 and UGX 157,253,083 respectively ; payment of salaries worth UGX. 129,399,583 to twenty two (22) staffs that was no longer in service. Under remittance of employees’ salaries deductions worth UGX. 11,492,067.  Additionally, I observed that there was delayed access to payroll by sixty six (66) new employees and thirteen (13) pensioners; | + + +362 + +--- + +|| failure to utilize wage funds of UGX.1,094,631,066; un-deducted PAYE from political leaders’ gratuity resulting in unpaid tax of UGX. 2,140,892 and payment of two (02) pensioners worth UGX. 45,794,020 off the IPPS.  I noted a number of issues in the implementation of the approved budget such as; partial and non-implementation of outputs and activities; non-submission of quarterly wage returns to MoPS; incomplete works such as; Amuru Seed School, Otwee HC III, Giragira-Guruguru and Gotgweno-Maroawobi road and culvert installation under Periodic maintenance of Lakang- Kidimon-Atoro road; under absorption of funds worth UGX.1,854,436,151 that was swept back to consolidated fund account; under performance of the donor & releases from other government units worth UGX. 13,266,132,540;  The district mischarged expenditure worth UGX. 122,058,859 on wrong budget lines.  I noted that UGX. 75,499,557 was paid as residual arrears to 8 pensioners who had not been verified (and thus not part of schedule) by MoFPED  I noted that the entity had not prepared and approved a strategic plan that is aligned to the NDP-III at the time of audit  The district has payables worth UGX. 1,560,778,573 and receivables worth UGX. 1682,711,064 | +|---|---| +| 04 | APAC DLG Qualified Opinion |  I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, Over payment of salaries worth UGX 170,469,321 and over payment of pension worth UGX. 764,207,203; Underpayment of salaries worth UGX. 43,539,065; Wrong computation of gratuity worth net overpayment of UGX. 7650,338, 704; payment of salaries worth UGX. 2,257,209 to two (2) staffs who were no longer in service; unpaid salaries worth UGX. 29,321,020  I noted over and/or under remittance of salary deductions worth UGX.906, 079,942 and UGX.10, 641,906 respectively.  Additionally, I observed that there was delayed access to payroll by eleven (11) new employees and one (1) pensioners; failure to utilize wage funds of UGX. 364,298,971; un-deducted PAYE from political leaders’ gratuity resulting in unpaid tax of UGX. 7,747,080. and payment of staff off the IPPS  I noted a number of issues in the implementation of the approved budget such as; partial implantation of out puts; incomplete works ; under absorption of funds worth UGX. 1.7 Bn that was swept back to consolidated fund account; under performance of the donor & releases from other government | + + +363 + +--- + +|| units worth UGX.622,073,000; non submission of quarterly monitoring reports to OPM & MoFPED  The district mischarged expenditure worth UGX.275, 847,736 on wrong budget lines.  I noted that Apac DLG had revenue arrears worth UGX. 715,864,939 by year end  Outstanding unpaid pension arrears worth UGX. 702,052,938 by year end  I noted that no funds were paid as residual arrears to pensioners and staff that had not been verified and were not part of schedule provided by MoFPED for payment.  The district did not have an approved strategic plan that is aligned to the NDP-III at the time of audit. | +|---|---| +| 05 | Gulu District Opinion Unqualified |  I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs; Underpayment of pension worth UGX 299,950,406; Wrong computation of gratuity worth net overpayment of UGX. 1,249,233 and under remittance of salary deductions worth UGX. 8,451,617.  Additionally, I observed that there was delayed access to payroll by two (02) new employees and five (05) pensioners; failure to utilize wage funds of UGX 4.97 billion; un-deducted PAYE from political leaders’ gratuity resulting in unpaid tax of UGX. 11,003,344.and payment of sixteen (16) staffs and five (05) pensioners worth UGX 114,877,542 off the IPPS  I noted a number of issues in the implementation of the approved budget such as;; incomplete works; partial implantation of outputs; under absorption of funds worth UGX 4,900,216,339 that was swept back to consolidated fund account; under performance of the donor & releases from other government units worth UGX.4,034,373,129; delayed submission of quarterly monitoring reports to OPM & MoFPED  The district did not have an approved strategic plan that is aligned to the NDP-III at the time of audit  I noted that the district has outstanding receivables worth UGX. 2,063,196,780 by the year end | +| 06 | Gulu RRH Opinion Unqualified |  I noted a number of anomalies during review of the Hospitalpension & salary payrolls such as; Failure to submit wage estimates to MoPs; Underpayment of salaries worth UGX. UGX 8,236,293. Under remittance of salaries worth UGX.197, 476,295. | + + +364 + +--- + +||  Additionally, I observed that there was delayed access to payroll by thirty one (31) new employees and seven (7) pensioners; failure to utilize wage funds of UGX. 1.87 billion.; un-deducted PAYE from political leaders’ gratuity resulting in unpaid tax of UGX.10,746,540 and payment of nine (9) staffs and ten (10) pensioners worth UGX. 461,890,255 off the IPPS  I noted a number of issues in the implementation of the approved budget such as; shoddy works in construction of classrooms; incomplete works, I noted there was noted delayed completion of the construction of 54 staff houses; partial implementation of actives; under absorption of funds worth UGX. 1,939,617,659 that was swept back to consolidated fund account  The district mischarged expenditure worth UGX. 34,589,597 on wrong budget lines.  I noted that 24 employees were paid worth UGX. 118,822,759 without signed any way.  The district did not have an approved strategic plan that is aligned to the NDP-III at the time of audit  I reviewed the approved Local revenue estimates for the financial year 2020/2021 and noted that the Hospital did not budget for NTR during the year but collected UGX. 206,100,000.  I noted that the hospital had an off budget financing worth UGX. 1,092,948,429 during the financial year. | +|---|---| +| 07 | Kole DLG Opinion Qualified |  I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs; Over payment of pension worth UGX.288, 866,531; Underpayment of pension worth UGX.271, 215,401; Wrong computation of gratuity worth net overpayment of UGX. 54,578,592; payment of salaries two (2) staffs who were no longer in service and irregular deduction of loan instalments worth UGX.9, 061,174.  Additionally, I observed that there was delayed access to payroll by twenty three (23) new employees and fourteen (14) pensioners; failure to utilize wage funds of UGX. 0.4 Billion; un- deducted PAYE from political leaders’ gratuity resulting in unpaid tax of UGX. 6,473,220 and payment of twenty two (22) staffs worth UGX.35,678,772 off the IPPS  I noted a number of issues in the implementation of the approved budget such as; Failure to quantify out puts; partial and non-implementation of planned activities, inaccurate reporting, and delayed submission of quarterly reports; under absorption of funds worth UGX. 1,095,317,475 that was swept | + + +365 + +--- + +back to consolidated fund account; under performance of the donor & releases from other government units worth + +### 8,664,323,677 + +###  The district mischarged expenditure worth UGX.639, 863,720 + +on wrong budget lines. + +###  I noted that UGX.349,542,400 in respect of staff advances and + +fuel deposits was not accounted for + +###  I noted wrong recognition of deposits received figure of UGX.269, 970,000 in relation to Youth Livelihood Programme + +(YLP) and Uganda Women Entrepreneur Project (UWEP). + +###  I noted that UGX.43, 200,000 was paid to one (1) purported pensioner who was neither on the IPPS payroll register nor + +possessed the necessary documentation to support their existence. + +###  I noted that the district did not submit loan deductions worth UGX. 3,800,833 to UCLA/UBA. + +###  I noted that the District failed to remit tax worth UGX.407, + +791,480 to URA. + +###  I noted that UGX.34,062,213 was paid as residual arrears to one + +(1) staff and two (2) pensioners who had not been verified (and thus not part of schedule) by MoFPED. + +- I noted over remittance of payroll deductions worth + + + +### UGX.450,413,838 + +###  I noted that UGX. 34,062,213 were charged on account codes + +other than those prescribed for salary, pension or gratuity. + +###  I noted that the District had a receivables figure of UGX.1, 072,183,415 as presented in the Statement of Financial Position + +and disclosed in note 19 to the financial statements. + +###  I further noted that the District had a payables worth UGX.1,244,267,887 + +###  I noted a number of misstatements in the financial statements of the districts such as; un-reconciling balances for PPE, treatment + +of revenue surpluses, omission of domestic arrears paid during + +### the year of UGX.74,024,139, + +###  I noted that the entity had not had their prepared strategic plan approved as aligned to the NDP-III at the time of audit. + +###  I noted that Kole District received off-budget financing to a tune of UGX.27, 329,000 directly from the Development Initiative for Northern Uganda (DINU) for undertaking activities which was + +366 + +--- + +|| never declared to the PS/ST.  Under UGIFT, I noted delayed completion of construction of Okwerodot Seed Secondary School, Okole HCII and Ayer HCIII upgrade. | +|---|---| +| 08 | Lira Municipal Opinion Unqualified |  I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, over payment of pension worth UGX.438,769,830 , underpayment of salaries worth UGX.14,238,411; Underpayment of pension worth UGX. 390,304,000;  Additionally, I observed that there was delayed access to payroll by five (5) pensioners; four (04) pensionaries do not have access to payroll; failure to utilize wage funds of UGX.0.6 billion; un-deducted PAYE from political leaders’ gratuity resulting in unpaid tax of UGX.3, 734,640 and payment of nine (09) pensionaries worth UGX. 217,577,695 off the IPPS  I noted a number of issues in the implementation of the approved budget such as; incomplete works; non implantation of municipal activities; under absorption of funds worth UGX. UGX.12, 094,641,795 that were swept back to consolidated fund account; under performance of the donor & releases from other government units worth UGX. 236,796,670; late submission of quarterly reports  The municipal mischarged expenditure worth UGX. 63,933,741 on wrong budget lines.  Under remitted payroll deductions worth UGX.4,119,401  I noted that the municipal paid unverified residual arrears worth UGX. 320,216,040 to 39 pensioners  I noted that 08 employees were paid a total of UGX.20, 975,837 without signed pay change reports.  I noted that the Municipal Council has an outstanding payables balance of UGX.383, 550,743 by year end as recognized in the statement of financial position on page 8 of the financial statements.  I noted that municipal council has outstanding payables worth UGX. 383,550,743 and outstanding debtors worth UGX. 634,438,200  I noted that the entity had not had their prepared strategic plan approved as aligned to the NDP-III at the time of audit. | +| 09 | Lira RRH |  I noted a number of anomalies during review of Lira RR Hospital pension & salary payrolls such as; Failure to submit wage | + + +367 + +--- + +|| Opinion Unqualified | estimates to MoPs, over payment of salaries worth UGX. UGX.10, 939,040; Underpayment of salaries worth UGX. UGX 19,371,873. Over payment of pension worth UGX 222,915,780.  Additionally, I observed that there was delayed access to payroll by three (3) pensioners; failure to utilize wage funds of UGX.1.50 billion; un-deducted PAYE from political leaders’ gratuity resulting in unpaid tax of UGX.10,746,540 and payment of one (01) pensioner worth UGX 48,955,200 off the IPPS  I noted a number of issues in the implementation of the approved budget such as; incomplete works partial and implementation of activities; under absorption of funds worth UGX.1,866,855,791 that was swept back to consolidated fund account; under performance of the donor & releases from other government units worth UGX.13,220,968,441; delayed submission of quarterly monitoring reports to OPM & MoFPED  The district mischarged expenditure worth UGX. 53,750,617 on wrong budget lines.  Under remittance of salary deductions worth UGX. 115,855,754  I noted that UGX. 18,767,338 was paid as residual arrears to 13 staff who had not been verified by MoFPED  I observed that a sum of UGX.339,276,432 had been paid to a contractor as advance payments | +|---|---|---| +| 10 | Gulu MC Opinion Unqualified |  I noted a number of anomalies during review of the municipal council pension & salary payrolls such as; Failure to submit wage estimates to MoPs, Underpayment of salaries worth UGX.26,212,810; payment of salaries worth UGX.64,323,258 to twenty nine (29) staffs that was no longer in service  Additionally, I observed that there was delayed access to payroll by one (01) new employee and twenty four (24) pensioners; failure to utilize wage funds of UGX. 0.33 billion; un-deducted PAYE from political leaders’ gratuity resulting in unpaid tax of UGX. 4,415,984 and payment of seven (07) staffs and 08 pensioners worth UGX. 73,991,598 off the IPPS  I noted a number of issues in the implementation of the approved budget such as; incomplete work; partial and non- implementation of activities; under absorption of funds worth UGX. 37,873,163,059 that was swept back to consolidated fund account; under performance of the donor & releases from other government units worth UGX.5,244,627,728; delayed submission of quarterly monitoring reports to OPM & MoFPED  The district mischarged expenditure worth UGX.313, 804,373 on wrong budget lines. | + + +368 + +--- + +||  A review of the pension payroll data and IFMS payments, revealed variances between amounts on the payroll and payments to individual pensioners, leading to an over and under payment of UGX.108,837,902 and UGX.1,323,647,325 respectively.  I noted that the entity had not had their prepared strategic plan approved as aligned to the NDP-III at the time of audit.  I noted that 58 employees were paid a total of UGX. UGX.48,537,458 without Unauthorized pay changed reports  I also noted that UGX.163, 186,521 accrued within the year and had not yet been paid to pensioners by the end of the year.  Over and under payments of UGX 2,050,016 and UGX.625, 974 respectively of 59 staff arising from the use a wrong salary scale.  Overpayment of pension of arrears worth UGX.48,674,235 to nine (09) pensioners  I noted that Municipal Council paid out a total of UGX.6.3 million to 07 non-existent staff.  I noted that UGX.75, 010,130 was paid to 08 purported pensioners that were neither on the IPPS payroll register nor possessed the necessary documentation to support their existence.  I noted that the Municipal Council made PAYE deductions of UGX. 1,439,481,558, but did not remit UGX.2, 162,681 to URA.  I noted that UGX.82, 533,859 was paid as residual arrears to 14 pensioners who had not been verified.  I noted that the council has receivables worth U GX.3, 153,612,053 at end of the financial year.  I noted that expenditure amounting to UGX.113,162,472 remained unaccounted for. | +|---|---| +| 11 | Lira DLG Opinion Unqualified |  I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs,; payment of salaries worth UGX.14,683,834 to eight (8) staffs that was no longer in service .  Additionally, I observed that there was delayed access to payroll by fourteen (14) new employees and eight (8) pensioners; failure to utilize wage funds of UGX.0.5 billion; un-deducted PAYE from political leaders’ gratuity resulting in unpaid tax of UGX.10,794,810; Over and under payment salaries worth of | + + +369 + +--- + +|| UGX.115,309,480 and UGX.131,175,021 respectively; under payments of salaries worth UGX.530,320 of 18 staff arising from the use a wrong salary scale  Over and under payment of pension worth of UGX.30, 707,444 and UGX.598, 762,255 respectively.  I noted a number of issues in the implementation of the approved budget such as; shoddy works in construction of classrooms; incomplete works; the District failed to achieve the intended services from the implemented 02 outputs; under absorption of funds worth UGX. 1,005,249,173 that were swept back to consolidated fund account; over performance and under performance of the donor & releases from other government units worth UGX. 8,559,440,754 delayed submission of quarterly monitoring reports to OPM & MoFPED  The district mischarged expenditure worth UGX.275, 847,736 on wrong budget lines.  I noted that the entity had not had their prepared strategic plan approved as aligned to the NDP-III at the time of audit.  I noted that the district had an off budget financing worth UGX.220, 983,855 during the financial year.  I noted that 21 employees were paid a total of UGX. 9,941,845 without signed pay change reports.  I noted that the District had outstanding receivables worth UGX. 898,553,933 and outstanding payables worth UGX.920,018,518 | +|---|---| +| 12 | Oyam DLG Qualified Opinion |  I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, over payment of salaries worth UGX. 81,486,802; Underpayment of salaries worth UGX. 54,366,065; payment of salaries worth UGX.74, 935,902 to thirty three (33) staffs that was no longer in service .unpaid salary worth UGX.91, 771,432.  Additionally, I observed that there was delayed access to payroll by thirteen (13) new employees and sixteen (16) pensioners; failure to utilize wage funds of UGX. UGX.0.58 billion; un- deducted PAYE from political leaders’ gratuity resulting in unpaid tax of UGX.12, 437,406.  I noted that the entity had not had their prepared strategic plan approved as aligned to the NDP-III at the time of audit.  The District did not recognize as a receivable an advance payment of UGX.414,149,184 made on 28 th June 2021 for the supply and installation of medical equipment to 64 Health Center IIIs under Uganda Intergovernmental Fiscal Transfer Program | + + +370 + +--- + +|| (UgIFT) (LOT 3).  The district mischarged expenditure worth UGX. 609,529,053 on wrong budget lines.  Over payments of UGX.1, 104,810 respectively of 27 staff arising from the use of wrong salary scales.  I noted a number of issues in the implementation of the approved budget such as; incomplete works; partial and non- implementation of activities; under absorption of funds worth UGX. 972,008,324 that was swept back to consolidated fund account; under performance of the donor & releases from other government units worth UGX. 1,163,405,949; delayed submission of quarterly monitoring reports to OPM & MoFPED  The district mischarged expenditure worth UGX.275, 847,736 on wrong budget lines.  Over and under payment of pension to pensionaries worth UGX.34, 619,402, and UGX.126, 248,570 respectively.  I noted that the District has unauthorized loan deductions worth UGX.178,342,254.  Payment of pension arrears worth UGX.22,125,006 to ineligible pensioners  I noted 700 vacant staff position at the district that affected service delivery  The district had outstanding payables worth UGX.2, 865,939,536 and Overdue receivables worth UGX.2, 865,939,536 by the end of the financial year.  UGX.590, 863,502 paid to the contractor on the 28 th June 2021 was not supported by certificates of works done.  I noted that expenditure amounting to UGX.31, 252,804 remained unaccounted.  I noted that management irregularly paid out UGX.411, 867,050 to individual staff personal bank accounts to purportedly implement several council activities instead of directly paying the eligible suppliers and service providers. In addition, these individuals were neither imprest holders nor cashiers who are mandated to hold cash among other duties. | +|---|---| +| 13 | Pader DLG Un Qualified Opinion |  I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, Over payment of salaries worth UGX.42,537,857payment of pension worth UGX.288, 866,531; Underpayment of pension worth UGX.910,301,025.; payment of | + + +371 + +--- + +|| salaries worth UGX.7,410,931 to seven (07) staffs that was no longer in service  Additionally, I observed that there was delayed access to payroll by twenty three (23) new employees and two (2) pensioners; failure to utilize wage funds of UGX.2.38Bn; un-deducted PAYE from political leaders’ gratuity resulting in unpaid tax of UGX.310,309,590 and payment of twenty two (22) staffs worth UGX.35,678,772 off the IPPS  I noted a number of issues in the implementation of the approved budget such as; shoddy works in construction of classrooms; incomplete works; under absorption of funds that was swept back to consolidated fund account; under performance of the donor & releases from other government units worth UGX.2,942,949,626; delayed submission of quarterly monitoring reports to OPM & MoFPED  Over payment of salary worth UGX.608,719 arising from use of wrong scale  I noted that the District made unauthorized loan deductions worth UGX. 45,223,516.  I noted that UGX.113, 671,178 was charged on account codes other than those prescribed for salary, pension and gratuity.  The District had an outstanding payables balance of UGX.1,365,231,670 as reported in the statement of financial position  The District had in its statement of financial position, long outstanding debtors (Advances) amounting to UGX.927, 029,154, which relate to the previous financial years.  I noted that the entity had prepared a strategic plan but the National Planning Authority had not yet approved it at the time of audit.  I undertook an assessment to establish if there has been service delivery from a sample of outputs that were implemented and noted that the upgrade of Lapul–Ocwida Health Center II to III had not been completed because the contractor abandoned the site.  I noted that UGX.42, 534,087 was charged on items which did not reflect the nature of the expenditure.  The district has an approved staff structure of 2,215 positions. Out of the approved staff structure, 1,229 (55%) are filled leaving 986 (45%) vacant. | +|---|---| +|| Soroti Branch | Summary of Key Findings | +| 01 | Amolatar DLG |  I noted a number of anomalies during review of the district | + + +372 + +--- + +### pension & salary payrolls such as; Failure to submit wage Opinion estimates to MoPs, over payment of pension worth UGX. Unqualified 3,624,783; Underpayment of pension worth UGX. 5,353,736 w; payment of salaries worth UGX. 12,633,711 fourteen (14) staffs + +that was no longer in service + + + +- Un-deducted PAYE from political leaders’ gratuity resulting in unpaid tax of UGX. 13,781,047 and payment of 32 staffs and 02 + +### pensioners worth UGX. 34,292,421 off the IPPS and delayed + +submission of remittances of PAYE to URA + +###  I noted a number of issues in the implementation of the + +approved budget such as; partial and non-implementation of + +### planned activities; unabsorbed wage fund of UGX0.95 billion; under absorption of funds worth UGX.3,620,479,221 that was + +swept back to consolidated fund account; under performance of the donor & releases from other government units worth UGX.2,409,034,822; non submission of quarterly monitoring reports to OPM & MoFPED; + +###  I noted that whereas UGX. 2,463,002,481 was deducted from + +employees’ salaries to be remitted to different beneficiaries, + +### UGX.2,451,377,682.was remitted, leading to an over and under + +remittance amounting to UGX.1,529,715 and UGX.13,154,514 respectively. + +###  The district mischarged UGX. 30,489,944 for pension arrears on + +account code for gratuity. + +###  I noted that the district had not paid pension arrears of UGX.121,391,408 by the end of the financial year and the total + +liabilities of UGX.1,794,377,044 + + + +- I noted that expenditure of UGX.10, 037,020 remained unaccounted for by the close of the financial year. + +###  I noted that the entity did not prepare and have an approved + +strategic plan aligned to NDP-III. + +###  I noted that Amolatar District received off-budget financing to a tune of UGX.29, 056,000 directly from United Nations Development Fund (UNCDF) for local revenue enhancement and + +construction of Development Initiative for Northern Uganda + +### (DINU) centre which was never declared to the PS/ST and as + +such no supplementary appropriation was issued as guided by the PS/ST. + +###  I noted that despite recommendations by the board of survey, + +the district had not disposed of assets. + +###  I noted that for the financial year 2016/17 to 202021/ the district had recovered UGX. 99,542,500 out of the expected total amount + +373 + +--- + +|| due (Interest Exclusive) of UGX. 559,850,500 representing 18%, leaving an outstanding balance of UGX. 478, 531,250 under the Uganda Women Entrepreneurship Program (UWEP). | +|---|---| +| 01. | 0 2 Bukedea DLG Opinion Unqualified |  I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs,; Underpayment of pension worth UGX.4,244,574. ; Wrong computation of gratuity worth net overpayment of UGX 4,368,548; delayed remittance of payroll deductions to URA and one staff was paid a total of UGX.14.8million off the IPPS  I noted a number of issues in the implementation of the approved budget such as;partial implementation of planned activities; an absorbed wage fund balance 0.6Bn; under absorption of funds worth UGX.2.93Bn that was swept back to consolidated fund account; under performance of the donor & releases from other government units worth UGX.0.6Bn; delayed submission of quarterly monitoring reports to OPM & MoFPED  I noted that the entity did not prepare and have an approved strategic plan aligned to NDP-III.  I noted that whereas UGX.4,007,788,020 was deducted from employees’ salaries to be remitted to different beneficiaries, UGX.3,853,954,791 was remitted, leading to an over/ under remittance of UGX.116,697,024/UGX.270,530,253 respectively   I also noted that within total liabilities are deposits of UGX.994, 994,899 regarding to YLP and UWEP.  Bukedea HCIV experienced drug stock outs for several essential medicines during the year  The district awarded contracts and made payment of UGX. 47,362,136 without proof of active VAT registration. As a result, VAT amounting of UGX. 7,222,726 was paid to non-registered company/deregistered due to non-compliance.  The district had received unbudgeted for funding worth UGX. 254,695,138 for printing of home study materials but this was not even approved as a supplementary budget by the council.  An outstanding receivables balance of UGX. 303,281,690 during the financial year that remained unrecovered | +| 02. | 0 3 Dokolo DLG Opinion Unqualified |  I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, Over Underpayment of salaries worth UGX.169,757,747 and several staff were paid a total of UGX.6.4million off the IPPS.  I noted a number of issues in the implementation of the approved budget such as;partial implementation of planned activities; unabsorbed wage funds of UGX.0.128Bn; under | + + +374 + +--- + +|| performance of the donor & releases from other government units worth UGX.6.258Bn; delayed submission of quarterly monitoring reports to OPM & MoFPED  I noted that the entity did not prepare and have an approved strategic plan aligned to NDP-III.  I noted delays in the remittance of PAYE deductions to URA in 2 out of 12 months, with an average delay.  I noted that the district did not subject political leaders’ gratuity totaling to UGX.33, 217,800 to the computation of PAYE in IPPS, leading to revenue loss of UGX.10, 036,690.  Outstanding payables during the year worth UGX.7,108,292 remained unsettled by year end  Uncounted for funds at the close of the financial year amounted to UGX.13,212,000  It was noted that two (2) contracts worth UGX.36,371,630 were awarded to contractors VAT inclusive to a tune of UGX.5,548,214 yet the individual contractors were either not VAT registered or had been de-registered by the tax authority.  An outstanding receivables balance of UGX.346,165,052 due from UWEP and YLP groups | +|---|---| +| 03. | 0 4 Kaberamaido DLG Opinion. Unqualified |  I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, over payment of salaries worth UGX.1, 255,265; Underpayment of salaries worth UGX. 1, 222,507; salaries worth UGX.1,960,136 was paid to 1 staff who had retired and Paid UGX.3,300,000 and UGX.54,988,606 to 2 employees and 2 pensioners respectively off IPPS  I noted a number of issues in the implementation of the approved budget such as; unabsorbed wage funds worth UGX 0.4Bn; under payment UGX. 37,655,834 under absorption of other received funds worth UGX.26, 816,534 that was swept back to consolidated fund account; under performance of the donor & releases from other government units worth UGX.464,763,581; delayed submission of quarterly monitoring reports to OPM & MoFPED  I noted that the entity did not prepare and have an approved strategic plan aligned to NDP-III.   I noted that the District made PAYE deductions of UGX.1, 260,530,351 and remitted to URA and delays in the remittance of PAYE deductions to URA ranging from 1–13 days.  I noted that Kaberamaido District did not subject political leaders’ | + + +375 + +--- + +|| gratuity totaling to UGX. 37,211,942 to the computation of PAYE in IPPS, leading to an under deduction of UGX. 11,183,595.  I observed a number of issues during my inspection of Kaberamaido Hospital such as; equipment such as Ultra sound machines and Scanners were idle due to lack of specialized human resources to operate them and the hospital has (4) small oxygen concentrators which are obsolete; Poor infrastructural development of kaberamido hospital  A review of the approved work plan and budget revealed that the district made budget provisions for vehicle maintenance during the period under review amounting to UGX.98, 812,000. However, almost all the district vehicles were not functional due to failure to maintain and repair them and the approximated cost amounted to UGX.298, 400,000. | +|---|---| +| 04. | 0 5 Kalaki DLG Opinion Unqualified |  I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs; Underpayment of pension worth UGX.13,901,641; payment of salaries worth UGX. 1,573,970 to five (5) staffs that was no longer in service and payment of UGX 19.29 million to five (5) employees off the IPPS  I noted a number of issues in implementation of approved budget such as; under absorption of funds worth UGX.1,197,062,675 that was swept back to consolidated fund account;. un absorbed funds worth UGX.2.385Bn under performance of the donor & releases from other government units worth UGX.2,685,815,492 and non-submission of quarterly monitoring reports to OPM & MoFPED  I noted that the entity did not prepare and have an approved strategic plan aligned to NDP-III.  I observed that whereas UGX.1,565,039,555 was deducted from employees’ salaries to be remitted to different beneficiaries, UGX.1,487,680,407 was remitted, leading to an over/under remittance of UGX.6,339,201 and UGX.83,698,349 respectively.  Disclosed in the statement of financial position on page (15) are receivables of UGX.752,701,227 as supported by Note (19) relating to UWEP and YLP funds which remained due to the revolving fund and close of the financial year | +| 06 | Katakwi DLG Opinion Unqualified |  I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, over and under payment of salaries worth UGX. 1,541,478 and UGX. 24,265,506 respectively; under remittance salary deductions worth UGX. 10,723,784;  Additionally, I observed failure to utilize wage funds of UGX.0.1Bn; un-deducted PAYE from political leaders’ gratuity | + + +376 + +--- + +|| resulting in unpaid tax of UGX. 13,353,316; I noted that 4 newly recruited/ transferred employees and 24 pensioners delayed to access payroll; the Katakwi District did not prepare monthly wage, pension and gratuity performance analysis and thus did not submit quarterly returns on payroll to MoPS; paid 32 staff and 02 pensioners worth UGX. 34,292,421 off the IPPS  I noted that the district had not paid salary and pension arrears of UGX.176,136,812 and UGX.210,481,886 respectively and deposits under total liabilities of UGX.1,469,427,540, comprising of YLP and UWEP amounts due to the revolving fund  I noted a number of issues in the implementation of the approved budget such as; shoddy works in construction of classrooms; incomplete works; under absorption of funds worth UGX. 360,155,363 that was swept back to consolidated fund account; under performance of the donor & releases from other government units worth UGX.1,868,819,492; delayed submission of quarterly monitoring reports to OPM & MoFPED  A total of 37 km at an estimated cost of UGX.220, 000,000 was worked on, however on physical inspection it was noted that some road sections were not well graded with poor road shaping, spot gravelling while others lacked access roads to the community.  The district had received unbudgeted funding worth UGX.186,033,984 on 20 th January 2021 for printing of home study materials which was not approved as a supplementary budget by the council, remained un-transferred to schools until 23 rd June 2021 and had not been utilized by the beneficiary schools at the time of audit.(August 2021).  An audit of Katakwi district hospital revealed instances of drug stock outs, failure to keep records of essential medicines such as oxygen and blood, expiry of drugs and staffing gaps at the district hospital.  The district signed a contract with UK General Services Limited for Upgrade of Palam HC III to III funded under Transitional Development Grant (TDG) (KATA522/WRKS/20-21/00032) at a contract price of UGX.296, 838,010, UGX.265, 076,343 (89%) of the contract sum had been paid leaving only 10% retention due to the contractor but on inspection it was noted that the works were in complete and the contractor was not found on site. | +|---|---| +| 07 | KUMI DLG Opinion Unqualified |  I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs; Underpayment of pension worth UGX 40,603,995; payment of salaries worth UGX. 41,743,339 to fourteen (14) staffs that was no longer in service  Additionally, I observed that there was delayed access to payroll | + + +377 + +--- + +|| by seventy eigth (78) new employees and six (06) pensioners and 15 pensioners did not access the pension payroll by the end of FY 2020/21; failure to utilize wage funds of UGX 0.7 billion.; un-deducted PAYE from political leaders’ gratuity resulting in unpaid tax of UGX. 8,722,103.and payment of seven (07) staffs worth UGX 8,054,219 off the IPPS  I noted a number of issues in the implementation of the approved budget such as; partial implementation of activities, under absorption of funds worth UGX. 1,189,642,702 that was swept back to consolidated fund account; under performance of the donor & releases from other government units worth UGX.9,484,212,313; delayed submission of quarterly monitoring reports to OPM & MoFPED  Over and under remittance amounting to UGX. 1,447,689 and UGX. 27,903,716 respectively.  I noted that the District has receivables worth UGX 207,343,250.  I noted that the District had payables of worth UGX. 1,061,619,255  The district did not have an approved strategic plan that is aligned to the NDP-III at the time of audit.  The district lacked land titles for 58 pieces measuring 948.809 acres which exposed the land to loss and encroachment.  The district received a sum of UGX 202,441,411 for primary and secondary for procurement of learning materials. I noted that the above funds were still on the schools accounts.  Vacant staff position of 82 was noted at the district  The district mischarged expenditure worth of UGX.23,818,896 on wrong budget lines. | +|---|---| +| 08 | Soroti CITY Opinion Unqualified |  I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs worth 0.20Bn; Underpayment of pension worth UGX 17,693,503; payment of salaries worth UGX. 4,422,604 to two (2) staffs that was no longer in service  Additionally, I observed that there was delayed access to payroll by twenty three (2) new employees and nine (2) pensioners;  I noted under absorption of funds worth UGX.569,370,362 that was swept back to consolidated fund account; under performance of the donor & releases from other government units worth UGX.3,241,130,000; delayed submission of quarterly monitoring reports to OPM & MoFPED partial implementation of planned activities unquantified output 2 pensioners delayed to | + + +378 + +--- + +|| access the pension payroll, with delays of 2 months.  The district did not have an approved strategic plan that is aligned to the NDP-III at the time of audit.  I noted that whereas UGX.1,672,354,754 was deducted from employees’ salaries to be remitted to different beneficiaries, UGX.1,720,244,218 was remitted, leading to an over remittance of UGX.47,889,464.  I noted that the City did not subject political leaders’ gratuity totaling to UGX.10, 718,400 to the computation of PAYE in IPPS, leading to a revenue loss of UGX.3,212,520. .  I noted that UGX.16, 952,389 was charged on account codes other than those prescribed for salary, pension and gratuity.  9 staff and 1 pensioner were paid a total of UGX.9, 175,032 off the IPPS.   It was noted that the health centre experienced expiry of several essential medicines.  An audit of a sample of essential drugs revealed that there were discrepancies between quantities ordered and those actually delivered by National Medical Stores.  I noted that from the financial year 2015/16 to 2018/19 the City had disbursed a total of UGX.213,350,031 out of which a sum of only UGX.48,137,000(23%) was recovered leaving an outstanding balance of UGX.173,473,68  AN outstanding balance of UGX.84,288,225 . | +|---|---| +| 09 | Soroti DLG Opinion Unqualified |  I noted a number of anomalies during review of the district pension & salary payrolls such as; delayed to submit wage estimates to MoPs; an unabsorbed balance of UGX.0.1Bn; an over payment of UGX.2,539,634; Unpaid Salaries worth UGX.39,755,425; an under payment of UGX.40,539,361; payment of salaries worth UGX.2,618,034 to two (2) staffs that had retired and the other died; an over/under remittance of UGX.24,004,085 and UGX.70,000 respectively; loan deduction worth UGX.1,025,336,368 from 643 employees that had no letters of undertaking but exist in the reports.  I further un-deducted PAYE from political leaders’ gratuity resulting to an under deduction of UGX.10,594,893; delay in accessing payroll and pension payroll; the district mischarged expenditure worth UGX.23,558,053 on wrong budget lines; Paid residual arrears worth UGX.361,354,056 to 15 pensioners who had not been verified; Failed to prepare monthly wage, pension and gratuity performance analysis; Failed also to submit quarterly returns on payroll to MoPS; Payment worth UGX.1,109,575,875 was paid to 26 pensioners off the IPPS;  I noted that the entity prepared and submitted the Strategic Plan to National Planning Authority but had not been approved by the | + + +379 + +--- + +|| time of audit; the district had an Outstanding total liabilities worth UGX.1,315,447,223; Underperformance worth UGX.1,770,722,988; Under absorption worth UGX.620,661,204 which was subsequently swept back to the consolidated fund account; Failed to prepare annual monitoring plans.  The district received Amount worth UGX.51,440,000 under covid 19 response; the district had several pieces of land whose titles had not been secured; an outstanding balance worth UGX.1,028,188,380 from groups; shoddy works in construction of roads; Un utilized amount of money worth UGX.176,968,673 meant for the procurement of learning materials for primary and secondary schools | +|---|---| +| 10 | Kapelebyong DLG Opinion Unqualified |  I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, under payment of pension worth UGX. 13,840,658; Underpayment of salaries worth UGX. 23,446,654.. Accrued payment of pension worth UGX. 1,623,473. under remittance of salaries worth UGX. 35,257,436.  Additionally, I observed that there was delayed access to payroll by two (2) pensioners; failure to utilize wage funds of UGX. 1,030,154,088.; un-deducted PAYE from political leaders’ gratuity resulting in unpaid tax of UGX.6,156,000 and payment of six (06) staffs worth UGX. 19,428,658 off the IPPS  I noted a number of issues in the implementation of the approved budget such as; incomplete works; partial implementation of activities, under absorption of funds worth UGX. 1,089, 751 811, that was swept back to consolidated fund account; under performance of the donor & releases from other government units worth UGX.537,701,164; delayed submission of quarterly monitoring reports to OPM & MoFPED  Outstanding liabilities worth UGX.912,708,330  The district did not have an approved strategic plan that is aligned to the NDP-III at the time of audit.  A total of UGX.20, 000,000 was received as COVID 19 supplementary funding  I noted that the district has funds worth UGX. 589,150,272 relating to YLP and UWEP  The district received unbudgeted funding worth UGX. 76,174,518  I noted that the district has outstanding payables (YLP)/ UWEP worth UGX. 331,343,011 and UGX. 251,879,775 respectively .  The district awarded contracts and made payments amounting to UGX.97, 981,512 without proof of active VAT registration, as a result, VAT amounting of UGX.14, 946,332 was paid to non- | + + +380 + +--- + +|| registered or de-registered companies. | +|---|---| +| 11 | SERERE DLG Opinion Unqualified |  I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, Over payment of salaries worth UGX.5,681,385; Underpayment of salaries worth UGX.7,111,988; under remittance of salaries worth UGX.32,910,176  I further noted failure to utilize wage funds of UGX.0.6 billion; un-deducted PAYE from political leaders’ gratuity resulting in unpaid tax of UGX.10,721, UGX.416million off the IPPS  I noted a number of issues in the implementation of the approved budget such as;; under absorption of funds worth UGX.1.18Bn that was swept back to consolidated fund account; under performance of the donor & releases from other government units worth UGX.7.721Bn; delayed submission of quarterly monitoring reports to OPM & MoFPED  Un recovered YLP and UWEP deposits worth UGX.1,086,363,675  The district did not have an approved strategic plan that is aligned to the NDP-III at the time of audit.  I noted that the district had received unbudgeted for funding worth UGX. 254,695,138  Unrecovered YLP and UWEP fund worth UGX. 873,681,064 | +| 12 | Amuria DLG Opinion Un-Qualified |  I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, over payment of salaries worth UGX.467,333, under payment of salaries worth UGX.607,250  Additionally, I observed that there was delayed access to payroll by seven (07) new employees and fourteen (14) pensioners; failure to utilize wage funds of UGX.1,303,509,217.; un-deducted PAYE from political leaders’ gratuity resulting in unpaid tax of UGX.12,243,797 and payment of one (01) staffs worth of UGX.5,393,465 off the IPPS  I noted a number of issues in the implementation of the approved budget such as;; under absorption of funds worth UGX.1,872,205,072 that was swept back to consolidated fund account; under performance of the donor & releases from other government units worth UGX.2,531,940,210; delayed submission of quarterly monitoring reports to OPM & MoFPED  I noted that the District has unauthorized loan deductions worth UGX.694,591,280. | + + +381 + +--- + +|| at the time of audit  The district received off-budget financing to a tune of UGX. .46, 449,000 directly from UNFPA for undertaking activities which was never declared to the PSST and as such no supplementary appropriation was issued as guided by the PSST.  The district did not have an approved strategic plan that is aligned to the NDP-III at the time of audit.  I noted that Note 19, Net Receivables, to the financial Statements, Amuria District had receivables of UGX.808,524,096 relating to UWEP and YLP funds at the beginning of the current financial year. Further review revealed that the receivables increased to UGX.1, 003,497,681.  I noted that funds totaling UGX.7,747,000 were irregularly diverted from the activities on which they were budgeted and spent on other activities without seeking or obtaining the necessary approvals.  I noted that that tracer medicines like Oxytocin, Coatem (Artemether + Lumefantrine) 24 Tablets 30 strips, Gloves, Determine test kit and Mama kits worth UGX.4,615,129 was not accounted for by the Hospital Management.  I noted that out of 154 pieces of land, only 8 (5%) had titles. | +|---|---| +| 13 | Kumi MC Opinion Un-qualified |  I noted a number of anomalies during review of the Municipal pension & salary payrolls such as; Under absorption worth UGX.212,168,628; under payment worth UGX.35,246,285; Outstanding payment worth UGX.2,256,948 meant for 5 employees; an under payment of Pension, Gratuity worth UGX.33,299; Accrued payment worth UGX.13,261,366; payment of salaries worth UGX.5,189,355 to Nine (9) staffs who had either retired, transferred, absconded or died.  Additionally, I observed an over remittance of UGX.13, 281,172; un-deducted PAYE from political leaders’ gratuity resulting in unpaid tax of UGX.3, 889,440; delayed in accessing payroll and pension payroll; Failed to prepare monthly wage, pension and gratuity performance analysis; Failed to submit quarterly returns on payroll to MoPS; Salary payment worth UGX.5, 582,676 was paid to 12 staffs off the IPPS. Receivables worth UGX.1, 132,227,490 relating to UWEP and YLP funds.  I noted that the entity does not have an approved strategic plan that is aligned to the NDP-III at the time of audit; Underperformance worth UGX.389,604,927; under Absorption UGX.297,497,115.  I noted that UGX.9, 350,000 was charged on items which did not reflect the nature of the expenditure.  I noted that all the pieces of land owned by the municipality | + + +382 + +--- + +|| lacked Titles; the entity Lacked approved Physical Development Plan and detailed Plans; Underperformance of the public Health and Hygiene Promotion worth UGX.2,996,879; an outstanding balance worth UGX.256,828,714 and UGX.148,878,891 from YLP groups and UWEP groups respectively | +|---|---| +| 14 | Ngora DLG Opinion Un-Qualified |  I noted a number of anomalies during review of the district pension & salary payrolls such as Underpayment of salary worth UGX.39,027,007; irregular deduction of loan instalments worth UGX.834,880,411; pension and gratuity under/Non-payments of UGX.155,180,697; over remittance of salary deductions worth UGX.100,096,201 and eighty-seven (87) vacant staff positions  Additionally, I observed failure to utilize wage funds of UGX.0.4 Bn; un-deducted PAYE from political leaders’ gratuity resulting in unpaid tax of UGX.10,637,490 and payment of one (1) staff worth UGX.1,776,726 off the IPPS  I noted outstanding receivables of UGX.1,131,962,894 relating to UWEP and YLP  I noted a number of issues in the implementation of the approved budget such as; incomplete works; under absorption of funds worth UGX.652,569,804 that was swept back to consolidated fund account; under performance of the donor & releases from other government units worth UGX 2,214,950,254;  The DLG did not have an approved strategic plan that is aligned to the NDP-III at the time of audit  The district mischarged expenditure worth UGX.44, 007,809 on wrong budget lines.  I noted that the entity did not prepare monthly wage, pension and gratuity performance analysis and did not submit quarterly returns on payroll to MoPS.  I noted that out of the total receipts/ Warrants for Covid-relief funds UGX.39,990,000 the entity did not absorb any Funds.  I noted Drug Stock Outs and Expired medicines in Ngora HC. IV  I noted Lack of land titles for the district land  I noted un recovered youth group funds worth UGX.930,137,986. | +| 15 | Soroti Regional Referral Hospital Opinion Un-Qualified |  I noted a number of anomalies during review of the hospital pension & salary payrolls such as; Failure to submit wage estimates to MoPs, over payment of salary worth UGX 8,16,582; Underpayment of salary worth UGX.1,039,133payment of salaries worth UGX 15,516,178 to seven (7) staffs that was no longer in service and irregular deduction of loan instalments worth UGX.61,946,480. | + + +383 + +--- + +||  I noted an over/under payment for gratuity worth UGX8,109,089 and UGX.28,338,806 respectively  I noted under/over remittance of salary deductions worth UGX.6,037,243,966 and UGX.30,277 respectively  Additionally, I observed that there was delayed access to payroll by thirteen (13) new employees  I noted under remittance of PAYE deductions worth5.2Mn  I noted under remittance of salary deductions to UCLA/UBA worth 0.84Mn  I noted issues in the implementation of the approved budget such as; under absorption of funds worth UGX.0.33 that was swept back to consolidated fund account and partially quantified and un quantified planned output  The hospital did not have an approved strategic plan that is aligned to the NDP-III at the time of audit  The district mischarged expenditure worth UGX.105Mn on wrong budget lines.  I noted that 03 employees were paid a total of UGX.27.8 million without signed pay change reports.  I noted that the Hospital did not prepare monthly wage, pension and gratuity performance analysis and thus did not submit quarterly returns on payroll to MoPS.  I noted that the RRH received off-budget financing of UGX.1,652,793,876.  I noted. under absorption of COVID-19 relief funds worth UGX.6,068,828  I noted that the Hospital had stock outs of Essential medicines for supportive treatment of Covid-19 during the year | +|---|---| +| 16 | Otuke DLG Opinion Un-Qualified |  I noted a number of anomalies during review of the district pension & salary payrolls such as; delay to submit wage estimates to MoPs, accrued pension worth UGX.10,251,154; under payments of pension and gratuity of UGX.5,374,525.; an under remittance of salary deductions worth UGX.122,929,219.  I noted Pension, Salary and retentions arears worth UGX.440,155,588  I noted un recovered youth group funds worth UGX.898,559,384 | + + +384 + +--- + +||  Additionally, I observed failure to utilize wage funds of UGX.0.97Bn; un-deducted PAYE from political leaders’ gratuity resulting in unpaid tax of UGX.9,454,537 and payment of two (2) staffs worth UGX.13,339,271 off the IPPS  I noted issues in the implementation of the approved budget such as; absorption of funds worth UGX.0.58Bn that was swept back to consolidated fund account; under performance of the donor & releases from other government units worth UGX 1.452Bn  The district did not have an approved strategic plan that is aligned to the NDP-III at the time of audit.  I noted that the district did not prepare monthly wage, pension and gratuity performance analysis and thus did not submit quarterly returns on payroll to MoPS.  I noted that one employee was paid a total of UGX.18 million without signed pay change reports.  I also noted un recovered YLP and UWEP funds worth UGX.1,514,330,911  I noted that the district received off-budget financing from donors  I noted that the district only recovered UGX.185,893,762 (31%) out of disbursed amount of UGX.597,983,600 (Interest Inclusive) leaving an outstanding amount of UGX.412,089,838 disbursed in financial Years 2016/2017,2017/2018, 2018/2019 and 2020/2021. | +|---|---| +|| Moroto Branch |  Summary of Key Findings | +| 01 | Moroto DLG Opinion Unqualified |  I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs; payment of salaries worth UGX. 944,615 to two (2) staffs that was no longer in service  Additionally, I observed that there was delayed access to payroll by two (02) new employees and nine (9) pensioners; failure to utilize wage funds UGX.1.9 Bn; un-deducted PAYE from political leaders’ gratuity resulting in unpaid tax of UGX. 16,712,548 and payment of one hundred twenty six (126) staffs worth UGX. 113,636,936 off the IPPS  I noted Under payment of pension/ gratuity worth UGX 969,963  Over remittance of salaries worth UGX. 42,443,292.  I noted that loan deductions amounting to UGX. 444 million relating to 236 employees lacked letters of undertaking. | + + +385 + +--- + +||  I noted a number of issues in the implementation of the approved budget such as; incomplete works; partial and non- implementation of activities worth UGX. 0.842Bn under absorption of funds worth UGX. 2.173 Bn that was swept back to consolidated fund account; under performance of the donor & releases from other government units worth UGX.4,318,906,529 delayed submission of quarterly monitoring reports to OPM & MoFPED Under performance of the URF fund worth UGX 9,622,000  I noted Failure to maintain a repayments ledger for all YIG’s (Youth Interest Groups) I noted Failure to maintain a repayments ledger for all UWEP Groups. | +|---|---| +| 02 | Napak DLG Opinion Unqualified |  I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, Over payment of salaries worth UGX.25,677,705  Additionally, I observed that there was delayed access to payroll by fifteen (15) new employees and one (01) pensioners; failure to utilize wage funds of UGX. 0.7 Billion; un-deducted PAYE from political leaders’ gratuity resulting in unpaid tax of UGX. UGX 9,299,652.  I noted a number of issues in the implementation of the approved budget such as; incomplete works; partial implementation; under absorption of funds worth UGX. 2.406 Bn that was swept back to consolidated fund account; under performance of the donor & releases from other government units worth UGX.88,076,485; delayed submission of quarterly monitoring reports to OPM & MoFPED  Overpayment of salaries to 04 staff worth UGX. 263,929 arising from wrong scale.  I noted Under payment of pension/ gratuity worth UGX 274,445,221  Over remittance of salaries worth 212,895,556.  I noted that the entity’s strategic plan was prepared but not yet approved by NDP  I noted mischarges worth UGX. 23,485,083 by the district | +| 03 | Abim DLG Qualified Opinion |  I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs; Overpayments of salaries worth UGX. 2,172,750. | + + +386 + +--- + +###  Additionally, I observed that there was delayed access to payroll + +by twenty one hundred two (102) new employees and six (06) + +### pensioners; failure to utilize wage funds of UGX.0.8 billion; un- + +## deducted PAYE from political leaders’ gratuity resulting in unpaid tax of UGX. 8,922,417and payment of nineteen(19) staffs worth + +### UGX 46,305,014 off the IPPS + +###  I noted a number of issues in the implementation of the + +approved budget such as; incomplete works; partial implementation of activities under absorption of funds worth + +### UGX.1.3Bn that was swept back to consolidated fund account; + +under performance of the donor & releases from other + +### government units worth UGX. 5.87Bn; delayed submission of + +quarterly monitoring reports to OPM & MoFPED + +###  I noted that the district has an outstanding payables worth UGX. 43,702,393 by the end of the year + +###  Over payment of pension to 11 pensionaries worth UGX. + +2,318,376 arising from wrong scale. + +###  I noted Misclassification of Expenditure worth UGX.296,881,279 + +###  I noted that UGX 130,582,400 accrued within the year and had + +not yet been paid to pensioners by the year end. + + + +- Under remittance of salaries deduction worth to UGX. + +### 352,211,360. + +###  I noted that funds amounting to 2 million relating to pension and + +gratuity were incorrectly charged on salaries and pension codes. + +###  I noted that the Abim district did not have an approved strategic + +plan that is aligned to NDP-III and therefore lacks a certificate of compliance issued by National Planning Authority.. + +###  I noted misclassification of expenditure UGX.296,881,279 by + +Abim DLG + +###  I noted Lack of land title for Nyakwae Seed Secondary School. + +###  I noted Irregular disbursement of UGX 175,113,737 for NUSAF + +funds + +###  I noted Award of a VAT inclusive contract to a non-VAT registered supplier worth UGX. 610,546,414 with a VAT amount + +UGX. 109,898,354 + + + +- Unaccounted for funds worth 1,412,507,436 at year end + + + +- I noted Transfer from other Government units indicates + +### warranties in the statement of appropriation of Ugx. 848,098,183, Actual in the statement of appropriation and note 5 + +387 + +--- + +|| of UGX. 1,073,044,082 more than the amount warrantied by Ugx. 224,945,899. The trial balance also indicate a figure of Ugx.1,194,065  I noted Statement of Cash Flow indicates a total amount from operating, investing and financing activities as Ugx.17,850,462,341 while the payment file indicates it as Ugx.17,808,775,851 leading to an overstatement of Ugx. 41,686,490.  I noted Unsupported receivables figure in the Statement Of Financial Position of UGX. 1,683,003,314 as there is no schedule of receivables attached to the financial statement. | +|---|---| +| 04 | Kaboong DLG Opinion Unqualified |  I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, Over payment of salaries worth UGX.12,181,796; failure to utilize wage funds of UGX. UGX.1.9billion.; un-deducted PAYE from political leaders’ gratuity resulting in unpaid tax of UGX. 9,870,780 I noted a number of issues in the implementation of the approved budget such; incomplete works; partial implementation of activities, under absorption of funds worth UGX.2.042Bn that was swept back to consolidated fund account; delayed submission of quarterly monitoring reports to OPM & MoFPED  The district mischarged expenditure worth UGX.275, 847,736 on wrong budget lines.  I noted under remittance of salaries worth UGX. 55,693,284  The district mischarged expenditure worth UGX. 551,346,221 on wrong budget lines.  I noted 93 vacant positions at the district  I noted unbudgeted Funds from Ministry of Education and Sports to Kaabong DLG UGX.42,343,319  I noted Irregular disbursement of NUSAF 3 Funds to M/S Agromax (U) Limited UGX.717,390,988 | +| 05 | Amudat DLG Opinion Unqualified |  I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, irregular deduction of loan instalments worth UGX.1,036,328; failure to utilize wage funds of UGX.0.851 billion un -deducted PAYE from political leaders’ gratuity resulting in unpaid tax of UGX.6,432,420. and payment of two hundred two (222) staffs worth UGX.161,371,533 off the IPPS  I noted a number of issues in the implementation of the approved budget such as; incomplete works; partial | + + +388 + +--- + +|| implementation and quantified under absorption of funds worth UGX.4.3Bn that was swept back to consolidated fund account; under performance of the donor & releases from other government units worth UGX.1,744,210,000; delayed submission of quarterly monitoring reports to OPM & MoFPED  The district mischarged expenditure worth UGX.275, 847,736 on wrong budget lines.  Over remittance of salaries worth UGX. 36,510,817  I further noted that all loan deductions relating to 7 employees did not have evidence of consent by the employees  UGX.101,273,688 was paid as residual arrears to 2 pensioners who had not been verified (and thus not part of schedule) by MoFPED  I noted that the entity had not prepared and approved a strategic plan that is aligned to the NDP-III at the time of audit.  I noted that district failed to recover worth UGX.390,319,125 of YLP funds  I noted that the district has outstanding balance worth UGX.390,319,125 from UWEP | +|---|---| +| 06 | Kotido DLG Opinion Unqualified |  I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs; payment of salaries worth UGX.1,395,233 to two (2) staffs that was no longer in service.  Additionally, I observed that there was delayed access to payroll by thirty nine (39) new employees; failure to utilize wage funds of UGX.4.127billion; un-deducted PAYE from political leaders’ gratuity resulting in unpaid tax of UGX.8, 766,597.  Under remittance of salary deduction worth UGX.18, 888,478.  I noted that the district has unauthorized loan deductions worth UGX.196,780,103  I noted that the Kotido district did not have an approved strategic plan that is aligned to NDP-III by the time of audit.  I noted a number of issues in the implementation of the approved budget such as; incomplete works; partial implementation and no quantified activities under absorption of funds worth UGX.1,291,391,337that was swept back to consolidated fund account; under performance of the donor & releases from other government units worth UGX.1,603,270,000; delayed submission of quarterly monitoring reports to OPM & MoFPED | +| 07 | Kotido MC |  I noted a number of anomalies during review of the municipal council pension & salary payrolls such as; Failure to submit wage | + + +389 + +--- + +|| Opinion Unqualified | estimates to MoPs,; payment of salaries worth UGX.1,819,248 to two (2) staffs that was no longer in service ; failure to utilize wage funds of UGX.0.8 billion.; un-deducted PAYE from political leaders’ gratuity resulting in unpaid tax of UGX.12,448,800 and payment of sixteen (16) staffs worth UGX.68,011,511 off the IPPS  I noted a number of issues in the implementation of the approved budget such as;; incomplete works; partial implantation non quantified under absorption of funds worth UGX.211,565,285 873 that was swept back to consolidated fund account; under performance of the donor & releases from other government units worth UGX.1,089,757,389; delayed submission of quarterly monitoring reports to OPM & MoFPED  I noted Over payment of salaries worth UGX.882,243 to 25 staff arising from wrong scale  I noted under remittance of salaries worth UGX. 43,787,620  I noted that the Municipal Council has unauthorized loan deductions worth UGX.14.77 million  I noted that the municipal council had not prepared and approved a strategic plan that is aligned to the NDP-III at the time of audit.  The municipal has un recovered UWEP funds worth UGX.277,734,805. | +|---|---|---| +| 08 | Karenga DLG Opinion Unqualified |  I noted anomalies during review of the district pension & salary payrolls such as; seventy-three (73) vacant positions; failure to utilize wage funds of UGX.1.089Bn.; un-deducted PAYE from political leaders’ gratuity resulting in unpaid tax of UGX.5,294,160 and payment of eight (8) staffs worth UGX. 28,433,650 off the IPPS; under remittance of employee salary deductions worth UGX.361,889,043  I noted issues in the implementation of the approved budget such as; under absorption of funds worth UGX.636,616,391 that was swept back to consolidated fund account; under performance of the donor & releases from other government units worth UGX.4,959,037,208  The DLG did not have an approved strategic plan that is aligned to the NDP-III at the time of audit  The district mischarged expenditure worth UGX.275, 847,736 on wrong budget lines  I noted that Karenga district did not include IPPS recurrent costs in its budget. | + + +390 + +--- + +||  I noted that the entity did not prepare monthly wage, pension and gratuity performance analysis and thus did not submit quarterly returns on payroll to MoPS.  I noted un quantified, partially implemented and un implemented planned output  I noted underperformance of maintenance funds worth UGX.35,851,027  I noted that administrative advances worth UGX.36,367,220 remained unaccounted for at year end | +|---|---| +| 09 | Nakapiripirit DLG Opinion Unqualified |  I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, Over payment of salary worth UGX.6,225,884; Underpayment of salary worth UGX. 120,957,229; pension worth UGX.102,547,496 and payment of residual arrears to 17 pensioners (not part of schedule) worth UGX.228,354,584  I noted outstanding receivables worth UGX.748,268,485 by year end  I noted outstanding payables worth UGX.204,060,122 by year end  Additionally, I observed that there was delayed access to payroll by four (4) new employees and five (5) pensioners; failure to utilize wage funds of UGX.0.8 Bn, un-deducted PAYE from political leaders’ gratuity resulting in unpaid tax of UGX.11,064,133and payment of twenty-six (6) staff and two (2) pensioners worth UGX.67,526,067 off the IPPS; over/under remittance of employee salary deductions worth UGX.12,510,739 and UGX.30,390,380 respectively  The DLG did not have an approved strategic plan that is aligned to the NDP-III at the time of audit  I noted partially quantified, partially implemented and un implemented planned output  I noted issues in the implementation of the approved budget such as; under absorption of funds worth UGX.387,179,529 that was swept back to consolidated fund account; under performance of the donor & releases from other government units worth UGX.3,798,701,446;  I noted that the district did not prepare monthly wage, pension and gratuity performance analysis and thus did not submit quarterly returns on payroll to MoPS  .  I noted that funds to the tune of UGX.37,212,320 were irregularly diverted from the activities on which they were | + + +391 + +--- + +|| budgeted and spent on other activities without seeking and obtaining the necessary approvals.  Irregularities in evaluation and award of contract to Ramiram Company Ltd for the construction of a teachers’ house in Doo Primary under procurement reference NAKP543/WRKS/20- 21/00003  The district entered into a VAT exclusive contract with Bole Engineering Ltd (TIN:) vide NAKP543/WRKS/20-21/00005 worth UGX.55,000,000 despite the company being registered for VAT | +|---|---| +| 10 | Moroto MC Opinion Unqualified |  I noted anomalies during review of the Municipal pension & salary payrolls such as; Failure to submit wage estimates to MoPs Underpayment of salary worth UGX. 359,225;  Additionally, I observed that there was delayed access to payroll by two (2) pensioners; failure to utilize wage funds of UGX.0.32 Bn; un-deducted PAYE from political leaders’ gratuity resulting in unpaid tax of UGX.3,314,340 over/under remittance of employee salary deductions worth UGX.5,297,009 and under UGX.1,329,429 respectively  The MC did not have an approved strategic plan that is aligned to the NDP-III at the time of audit  I noted issues in the implementation of the approved budget such as; under performance of the donor & releases from other government units worth UGX. 439,621,456; un quantified planned output  I noted that the Municipal Council did not prepare monthly wage, pension and gratuity performance analysis and thus did not submit quarterly returns on payroll to MoPS .  I noted that Expenditure amounting to UGX.40,544,000 remained unsupported as at the close of the financial year | +| 11 | Nabilatuk DLG Opinion Unqualified |  I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, Over payment of salary worth UGX.41,886,731; Underpayment of salary worth UGX.88,251,765 irregular deduction of loan instalments of twenty-seven (27) employees worth UGX.32,111,398 and excess loan deductions for eighteen (18) employees worth UGX.23,960,268  I noted payments to non-existent staff worth UGX.12,263,143  I noted over/under remittance of employee salary deductions worth UGX.22,136,522 and UGX.28,681,822 respectively  I noted outstanding receivables worth UGX.306,557,669.  Additionally, I observed that there was delayed access to payroll by twenty-seven (27) new employees; failure to utilize wage funds of UGX.0.766 Bn; un-deducted PAYE from political leaders’ | + + +392 + +--- + +|| gratuity resulting in unpaid tax of UGX.111,240 and payment of thirty-five (35) staff pensioners worth UGX.52,863,034 off the IPPS and residual arrears to two (2) staff UGX.3,128,128  The district did not have an approved strategic plan that is aligned to the NDP-III at the time of audit  I noted a number of issues in the implementation of the approved budget such as; un implemented works on construction of Nataparengan piped water system and rehabilitation of Lorukumo piped water system; under absorption of funds worth UGX.353,461,659 that was swept back to consolidated fund account; under performance of the donor & releases from other government units worth UGX.686,812,859;  I noted partially quantified and partially implemented planned output  I noted that the district did not prepare monthly wage, pension and gratuity performance analysis and thus did not submit quarterly returns on payroll to MoPS  I noted that Nabilatuk District received off-budget financing to a tune of UGX.12,464,800 directly from the Drylands Projects | +|---|---| +|| Mbale Branch | Summary of Key Findings | +| 01 | Bulambuli DLG Opinion Unqualified |  I noted a number of anomalies during review of the DLG pension & salary payrolls such as; delay to submit wage estimates to MoPs; Underpayment of payroll worth UGX.53, 413,352; Wrong computation of gratuity worth net overpayment of UGX. 4,908,163 and payment of salaries worth UGX.799, 094 to one (1) staff that was no longer in service.  I noted that the entity had receivables worth UGX 865,908,605 and had Payables worth UGX.5,000,000 at close of financial year  Additionally, I observed that there was failure to utilize wage funds of UGX.1.6Bn; un-deducted PAYE from political leaders’ gratuity resulting in unpaid tax of UGX.16,798,690and payment of nine (9) pensioners worth UGX.170,017,059 off the IPPS; partially implemented output worth UGX. 0.863Bn and un implemented output worth UGX.0.558Bn  I noted that the District LG did not prepare monthly wage, pension and gratuity performance analysis report for submission to MoPS  I noted a number of issues in the implementation of the approved budget such as; shoddy works at Bumugusha - Sisiyi Road, Gimayote - Malama Road, the boreholes; incomplete works on Buyaga-Muyembe road, Bulaago and Bwikhonge Health Centre IIs to IIIs; under absorption of funds worth UGX.2,653,035,652 that was swept back to consolidated fund | + + +393 + +--- + +|| account; under performance of the donor & releases from other government units worth UGX.234,118787; non submission of quarterly monitoring reports to OPM & MoFPED; delayed submission of performance reports and unremitted lower local government revenue worth UGX 47,216,000  The District mischarged expenditure worth UGX 103,936,059 on wrong budget lines.  I observed that key positions, including that of District engineer, District production officer, District education officer, and District planner had remained vacant by end of year.  I noted drug stock out at Bulaago Health Centre  I observed that the district lacked vital road equipment such as: Motor Grader, Wheel Loader, Bulldozer, Excavator and Cargo Truck  I noted an Under-deduction of LST worth UGX 214,800,000 and PAYE worth UGX 32,139,829. | +|---|---| +| 02 | Manafwa DLG Opinion Unqualified |  I noted a number of anomalies during review of the DLG pension & salary payrolls such as; failure to submit wage estimates to MoPs, over payment of salaries worth UGX. 14,044,594; Underpayment of salaries worth UGX. 10,735,580; Wrong computation of gratuity worth net overpayment of UGX. 14,474,704  I noted an over and under remittance of employee salary deductions worth UGX 129,973,902  I observed that there was failure to utilize wage funds worth UGX.0.890 billion  I noted under deduction of PAYE from employee salary worth UGX. 20,600,350.  I noted a number of issues in the implementation of the approved budget such as; under absorption of funds worth UGX. 2,423,640,138 that was swept back to consolidated fund account; under performance of the donor & releases from other government units worth UGX.2,041,524,555; delayed submission of quarterly monitoring reports to OPM & MoFPED; partial implementation of planned activities and under performance of funds meant for maintenance worth UGX. 7,252,593  The DLG mischarged expenditure worth UGX. 476,473,064 on wrong budget lines  I however noted that UGX. 2,521,572 was paid as residual arrears to 10 staff and 2 pensioners who had not been verified (and thus not part of schedule) by MoFPED. | + + +394 + +--- + +||  I noted that 2 employees were paid a total of UGX. 7,461,459 without signed pay change reports.  I noted that the DLG did not prepare monthly wage, pension and gratuity performance analysis and thus did not submit quarterly returns on payroll to MoPS.  I noted outstanding payables worth UGX. 1,239,952,064. | +|---|---| +| 03 | TORORO DLG OPINION: UNQUALIFIED |  I noted a number of anomalies during review of the DLG pension & salary payrolls such as; Failure to submit wage estimates to MoPs, over payment of salaries worth UGX.4,068,031; Underpayment of salaries worth UGX.15,716,191 and payment of salaries worth UGX.57,446,500 to staffs that was no longer in service accrued pension worth UGX.47,240,461  I noted an over and under remittance of employee salary deductions worth UGX.6,208,787  Additionally, I observed that there was delayed access to payroll by one hundred seventeen (117) new employees; failure to utilize wage funds of UGX.2.18 Bn, un-deducted PAYE from political leaders’ gratuity resulting in unpaid tax of UGX. 11,370,060 and payment of four (4) staffs worth UGX 3,683,801 off the IPPS  I noted a number of issues in the implementation of the approved budget such as; failure to quantify planned output; partial and non- implementation of planned activities; under absorption of funds worth UGX. 2,597,410,656 that was swept back to consolidated fund account; under performance of the donor & releases from other government units worth UGX. 11.87Bn.  The DLG mischarged expenditure worth UGX.45,068,279 on wrong budget lines.  I noted that the DLG did not prepare monthly wage, pension and gratuity performance analysis reports and did not submit quarterly returns on payroll to MoPS  I noted payables worth UGX.335, 571,661 outstanding at year end. | +| 04 | MBALE CITY OPINION: Unqualified |  I noted a number of anomalies during review of the city pension & salary payrolls such as; Failure to submit wage estimates to MoPs, Over payment of salary and pension worth UGX.810,144,208; Underpayment of salary and pension worth UGX.915,374,687; Wrong computation of salaries worth net overpayment of UGX.91,569,052; payment of salaries worth UGX 30,376,995 to twenty six (26) staffs that were no longer in service and irregular deduction of loan instalments of one hundred seventeen (117) worth UGX. 159,385,584.  I noted receivables from other UWEP, YLP and other debtors | + + +395 + +--- + +|| worth UGX. 2,239,688,779 by the close of the financial year under review.  I noted outstanding payables worth UGX 545,408,158 at the end of the financial year.  The city did not have an approved strategic plan that is aligned to the NDP-III at the time of audit  Additionally, I observed failure to utilize wage funds of UGX. 1,235,588,920; un-deducted PAYE from political leaders’ gratuity resulting in unpaid tax of UGX.3,015,540and payment of staffs and pensioners worth UGX.161,000,660 off the IPPS; unpaid salaries worth UGX.161,000,660; payment of consolidated health lunch allowance to ineligible staff worth UGX.2,170,750 and a net over payment of arrears of UGX.64,535,832  I noted an over and under deduction of loans worth UGX.13,477,848 and UGX.14,453,773 respectively  I noted that the city did not prepare monthly wage, pension and gratuity performance analysis and did not submit quarterly returns on payroll to MoPS.  I noted a number of issues in the implementation of the approved budget such as; partial and unquantified planned output, partial and non-implemented planned output ; shoddy works on Nambozo road incomplete works on Nambozo road; under absorption of funds worth UGX.1,600,759,501 that was swept back to consolidated fund account; under performance of the donor & releases from other government units worth UGX.3.17Bn; over absorption of funds worth UGX 73,268,000  The city mischarged expenditure worth UGX 65,785,703 on wrong budget line  I noted non regular maintenance of street lights | +|---|---| +| 05 | Bukwo DLG Opinion Unqualified |  I noted a number of anomalies during review of the DLG pension & salary payrolls such as; Failure to submit wage estimates to MoPs, Over payment of salary worth UGX.4,296,996; Underpayment of salary, gratuity and pension worth UGX.16,337,404 and delayed deletion of 4 staff from the payroll worth UGX.9,328,845  I noted that the district did not prepare monthly wage, pension and gratuity performance analysis and thus did not submit quarterly returns on payroll to MoPS  Additionally, I observed that there was delayed access to payroll by 0ne (1) new employee and nine (2) pensioners; failure to utilize wage funds of UGX.0.568 billion; un-deducted PAYE from political leaders’ gratuity resulting in unpaid tax of | + + +396 + +--- + +|| UGX.11,064,570 over and under remittance of employee salary deductions worth UGX.1,789,798 and UGX.14,974,441 respectively  I noted a number of issues in the implementation of the approved budget such as; delayed works at the HCIIs; under absorption of funds worth UGX.2,421,073,740 that was swept back to consolidated fund account; under performance of the donor & releases from other government units worth UGX.6,333,457,050; partial and un quantified planned output and partial and un implemented planned output  The district did not prepare annual monitoring plans neither were quarterly monitoring reports prepared and submitted.  I noted underperformance of budgeted funds for NUSAF-3 projects worth UGX.183,000,000 and URF funds worth UGX.10,265,009 that affected implementation of the programs  I observed that the district lacked vital road equipment like an excavator, a bulldozer, a pedestrian roller and tampers/rammers.  I noted an under absorption of funds worth UGX 1,005,458,204 relating to construction of the college, secondary school and upgrading of HCIIs  The district lacked titles for 36 pieces of its land. | +|---|---| +| 06 | Sironko DLG Opinion Unqualified |  I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, Over payment of salary worth UGX.3,937,076; Underpayment of salary worth UGX.9,336,463 delayed deletion of 3 staff from the payroll worth UGX.2,418,531 and 365 positions vacant  I noted residual arrear payments to one (1) pensioner who was not on the schedule worth UGX.25,856,920  I noted outstanding receivables worth UGX.1, 395,021,574 and payables worth UGX.1, 271,747,912 by the end of the year.  Additionally, I observed that there was delayed access to payroll by nineteen (19) new employees and two (2) pensioners; un- deducted PAYE from political leaders’ gratuity resulting in unpaid tax of UGX.13,980,570 over/under remittance of employee salary deductions worth UGX.12,620,619 and UGX.18,207,521 respectively  The district did not have an approved strategic plan that is aligned to the NDP-III at the time of audit  I noted partial and unquantified planned output, partial and non- implemented planned output | + + +397 + +--- + +||  I noted issues in the implementation of the approved budget such as; delayed works at Buyobo Health Centre, Buteeza/Bumirisa Seed Secondary School; under performance of the donor & releases from other government units worth UGX.31,073,887;  The district lacked land tittles for 14 of its properties  I noted that the district did not prepare monthly wage, pension and gratuity performance analysis and thus did not submit quarterly returns on payroll to MoPS  I noted Un recovered YLP/Women groups funds worth UGX 1,076,861,319 | +|---|---| +| 07 | Namisidwa DLG Opinion UnQualified |  I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, payment of salaries worth UGX.9,737,931 to twelve (12) staffs that were no longer in service over/under remittances of employee salary deductions worth UGX.15,456,000 and UGX.9,368,000 respectively  Additionally, I observed that there was delayed access to payroll by eleven (11) pensioners; failure to utilize wage funds of UGX.1.8 billion; un-deducted PAYE from political leaders’ gratuity resulting in unpaid tax of UGX.10,343,040 and payment of twenty twelve (12) staffs worth UGX.44,528,289 off the IPPS  I noted a number of issues in the implementation of the approved budget such as; Failure to Construct Namboko Seed Secondary School ; delayed works of Mukoto Seed Secondary School ; under absorption of funds worth UGX.1,965,728,111 that was swept back to consolidated fund account; under performance of the donor & releases from other government units worth UGX.639,520,961; delayed submission of quarterly monitoring reports to OPM & MoFPED; Un implemented procurement plan worth UGX 2,601,160,000 and Underperformance of maintenance funds worth UGX.27,667,500.  District received off-budget financing worth UGX.153,248,760 directly from Ministry of Health (MoH)  I noted outstanding receivables worth UGX 1,380,786,175   The entity did not prepare and submit the annual monitoring plans to Moped, MoLG and NPA as required.  I noted Underperformance of UWEP/YLP funds worth of UGX.170,000,000  I noted district land lacked titles | +| 08 | Bududa DLG |  I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage | + + +398 + +--- + +|| Opinion Unqualified | estimates to MoPs, over payment of salary worth UGX. 40,955,029 Underpayment of salary due to wrong salary scales worth UGX 1,770,196 and Wrong computation of gratuity worth net overpayment of UGX. 16,342,974;  I noted payment to twelve (12) employees without signed pay change reports worth UGX. 33,563,249  Additionally, I observed that there was; failure to utilize wage funds of UGX.0.386 billion; un-deducted PAYE from political leaders’ gratuity resulting in unpaid tax of UGX. 25,271,520; over/under remittance of employee salary deductions wort UGX. 374,322,700 and UGX. 2,544,986 respectively and residual arrears to 10 staff and 5 pensioners (not part of schedule) worth UGX. 53,269,453  I noted a number of issues in the implementation of the approved budget such as; incomplete works on five Community Access Roads (CARs); under absorption of funds worth UGX. 3,358,629,901 that was swept back to consolidated fund account; under performance of the donor & releases from other government units worth UGX.12,509,500; Under performance of maintenance funds worth UGX. 2,807,020 and un implemented procurement plan worth UGX.357,489,000  I noted an under absorption of preliminary expenditures worth UGX 327,911,000  I noted partial and non-implemented planned output  The district mischarged expenditure worth UGX. 53,269,453 on wrong budget lines.  It was noted that the district did not conduct revenue assessment.  I noted that the lacked District signed MOUs for Donor funds received during the year worth UGX. 25,203,300 from United Nations Children Fund (UNICEF) and World Health Organization (WHO). | +|---|---|---| +| 09 | KIBUKU DLG Opinion Unqualified |  I noted a number of anomalies during review of the district pension & salary payrolls such as; Underpayment of pension worth UGX.97,316,845.; payment of salaries worth UGX.7,336,993 to fourteen (14) staffs that was no longer in service and over remittance of employee salary deductions UGX.430,578,979  I noted outstanding payables worth UGX 128,739,122 at year end.  I observed that there was delayed access to payroll by twenty- seven (27) new employees and nineteen (19) pensioners and 420 vacant staff positions | + + +399 + +--- + +||  I noted a number of issues in the implementation of the approved budget such as; I noted partial and unquantified planned output, partial and non-implemented planned output; under absorption of funds worth UGX 5,639,972,053 that was swept back to consolidated fund account; under performance of the donor & releases from other government units worth UGX.789,212,932 and failed submission of quarterly monitoring reports to OPM & MoFPED  The district mischarged expenditure worth UGX.47,252,328 on wrong budget lines  I noted that Kibuku Health Centre IV experienced drug stock outs  I noted that the entity failed to procure assorted medical equipment for upgraded HCs worth UGX.210,937,500  I noted that the entity failed to conduct pre-bid meetings for 23 contracts as provided for in the tender documents  I noted unrecovered funds from Women groups worth UGX.522,692,690 | +|---|---| +| ARUA BRANCH | Summary of Key Findings | +| 01. | Obongi DLG Opinion Unqualified |  I reviewed funds absorption and noted that UGX.4.6 billion (100%) was spent out of the total receipts of UGX.5.9 billion, resulting in an unabsorbed balance of UGX.1.3 billion. The unabsorbed balance was subsequently swept back to the consolidated fund account. I advised the Accounting Officer to ensure that the activities for which the un absorbed funds were meant are rolled over and implemented in subsequent financial year.  I noted that the District made payroll deductions of UGX.123 million, but did not remit concurrently with the salary payments in 8 out of 12 months. On average, it delayed by 55 days. I advised the Accounting Officer to always ensure that all deductions to UCLA/UBA are remitted concurrently with salary payments.  The ineffectiveness of the system may affect the integrity of the IPPS payroll.  I reviewed the approved Local revenue estimates for the financial year 2020/2021 and noted that the District budgeted to collect UGX. 463,890,000 during the year but collected UGX.318,243,595 representing (69%) performance. The shortfalls in Local Revenue collections of UGX.145,646,405 (31%) were recorded in Local Service Tax, Land Fees , Business Licence, other tax revenues, administrative fees and Application Fees.  I reviewed the District’s revenue performance and noted the | + + +400 + +--- + +|| following;  The Entity budgeted to receive UGX.17,548,360,000 as transfers from other Government Units. However, only UGX.14,007,769,263 (80%) was received. The Accounting Officer explained that low Local Revenue performance was due to the effects of COVID 19 lockdown that affected the performance of markets and secondly the disaster of floods impacted negatively on our major source of revenue, fisheries where most landing sites were flooded.  The Entity budgeted to receive UGX.17,548,360,000 as transfers from other Government Units. However, only UGX.14,007,769,263 (80%) was received. The Accounting Officer explained that The under-performance of other government transfers was due to low performance of DRDIP. The funding for DRDIP was only for approved sub projects which were generated by the beneficiary groups.  The District budgeted to receive UGX. 655,424,300 as external/donor financing out of which UGX.630,174,440 (96 %), was receivedThe Accounting Officer explained that External Financing performed very well up to 96% and all planned activities were implemented as planned. The difference of only 4% has had no impact the implementation of the planned activities  Out of the total receipts for the financial year of UGX.27,315,767,447, UGX.42,423,071,166 (92%) was spent by the entity resulting in an unspent balance of UGX. 22,056,617,661 (81%). The unspent balance at the end of the financial year was subsequently swept back to the consolidated fund account. I advised the Accounting Officer to ensure that funds for these activities are in subsequent year un implemented activities rolled over and subsequently ensure the speedy implementation.  I noted that the District received a total of UGX.22,103,714 as capitation grant. I reviewed the bank statements sampled schools and noted that the funds were still on the school accounts by 30th September, 2021 and had hence not been utilized. I advised the Accounting Officer to liaise with relevant authorities and ensure that these funds are put to productive usage. | +|---|---| +| 02. | ZOMBO DLG Opinion Unqualified |  I reviewed funds absorption and noted that UGX.12.35 billion (81.78%) was spent out of the total receipts of UGX.15.1 billion, resulting in an unabsorbed balance of UGX.2.75 billion. The unabsorbed balance was subsequently swept back to the consolidated fund account.  A comparison of base pay in the IPPS payroll registers with the salary structure for 2020/21, revealed that 23 staff were paid | + + +401 + +--- + +### using wrong salary scales, leading to under payments of UGX + +0.932 million, contrary to Section B–a (6) & (7) of the Uganda + +### Public Service Standing Orders, 2010. + +###  I noted that UGX.20,116,483 was paid to 12 staff who had either retired, transferred, absconded or died. I advised the Accounting Officer to ensure prompt removal of staff from the + +payroll. + +- I noted that whereas UGX.3,328,551,409 was deducted from + + + +## employees’ salaries to be remitted to different beneficiaries, UGX.3,319,064,736 was remitted, leading to an over and/or + +under remittance amounting to UGX.7,357,520 and UGX + +### 6,415,791 respectively. The Accounting Officer explained that the + +underpayment would be paid during subsequent remittances. + +###  I noted that the District made unauthorized loan deductions totaling UGX 680 million. The deductions were from 461 + +employees that neither had letters of undertaking nor existed in + +## the “active deduction” or the “my approval” reports on the + +PDMS-Payroll Deduction Management System, operated by PCA- Payroll Consults Africa. + +###  I noted that 13 newly recruited/ transferred employees delayed + +to access payroll, with delays ranging between 1-2 months. + +### Delayed access to payroll leads to demotivation of the affected + +staff and accumulation of salary arrears. + +###  I noted that one pensioner; Okenga Abedican delayed to access the pension payroll, with delays of 31 days. Delayed access to + +the pension payroll leads to poor wellbeing of the affected retirees as well as accumulation of pension arrears. + + + +- I observed that there were variances of UGX.263,261,431 + +### between the figures in the MoPS IPPS and district payroll registers. I advised the Accounting Officer to ensure that the district IPPS payroll registers are consistent with MoPS payroll + +data. + + + +- Included in the Statement of Financial Position on page 7 of the Financial Statements are receivables worth UGX.485,694,634 as + +### supported by Note 19 to the financial statements. The amount for the previous financial year was UGX.193,836,559. The amounts relate to advances to Youth and Women Interest groups. I advised the Accounting Officer to continue sensitizing Youth Interest Groups and women groups to recover the funds. + +###  I noted that the District had deposits worth UGX.396,301,510 presented in the Statement of Financial Position and disclosed in note 25 to the financial statements. The figure increased by + +UGX.4,000,000 from UGX.394,301,510 which were recoveries of + +### the Youth Livelihood Programme (YLP) as recommended by + +Inspectorate of Government. + +###  I noted that though the district had prepared the Strategic plan, + +402 + +--- + +it was still in draft form at the time of audit and certification from + +### NPA had not been obtained. I advised the Accounting Officer to liaise with NPA to expedite the process of reviewing and approval + +the Strategic Plan of the District. + +###  I reviewed the approved Local revenue estimates for the financial year 2020/2021 and noted that the District budgeted to collect + +UGX.1,040,800,000 during the year but collected UGX.296,535,563 representing (29%) performance. The + +### shortfalls in Local Revenue collections of UGX.744,264,437 (71%) were recorded in Local Service Tax, Land Fees , Business Licence, other tax revenues, administrative fees and Application Fees. + +- The District budgeted to receive UGX. 1,426,989,000 as external/donor financing out of which UGX.1,304,944 (0.09%), was received. + + + +###  Out of the total receipts for the financial year of + +UGX.28,843,895,403, UGX.25,055,771,226 (97%) was spent by the district resulting in an unspent balance of + +### UGX.3,788,124,204. The unspent balance at the end of the + +financial year was subsequently swept back to the consolidated fund account. + +###  I noted that the district prepared annual monitoring plans dated 02/08/2021, but had not been submitted to MoFPED, MoLG and NPA as required by the time of audit (10/09/2021). Further, the + +district had not also submitted quarterly monitoring reports to the Office of the Prime Minister and MoFPED as required by the + +### time of audit (10/09/2021). This practice is not only in + +contravention of the circular instructions but also hinders efforts of timely monitoring of the implementation of the budget. + +###  I noted that management submitted performance reports for Q1 + +and Q2 in time while performance reports for Q3 and Q4 were submitted after deadline given for submission of the reports. + +###  In addition, I did not obtain evidence to confirm that the Accounting Officer Prepared Monitoring Plans and reports which + +are important in ensuring that the budget performs as expected. + +###  I noted delayed completion of Construction of Atyak Seed Secondary School under the UGIFT project, A joint supervision + +report dated 18/5/2021 was reviewed and put the work so far done at only 66% and cumulative total payments had been made + +### of UGX 1,365,729,024 ( representing 65% of the contract sum) by end of year. By the time of the audit in September 2021, + +about 5% of the works were still incomplete yet the contract had long expired. + +###  I noted that the District received a total of UGX.154,269,648. I + +reviewed the bank statements for sampled schools and noted that the funds were still on the schools’ accounts by 30th + +403 + +--- + +|| September, 2021 and had hence not been utilised. | +|---|---| +| 03. | YUMBE DLG Opinion Unqualified |  I reviewed payroll funds absorption and noted that UGX.22 billion (94%) was spent out of the total receipts of UGX.23.5 billion, resulting in an unabsorbed balance of UGX.1.44 billion. The unabsorbed balance was subsequently swept back to the consolidated fund account. Under absorption of released funds resulted into failure to recruit the required staff.  A review of the pension payroll data and IFMS payments, revealed variances between amounts on the payroll and payments to individual pensioners, leading to over payments of UGX.87,774,282 contrary to article 254 (1) & (3) of the 1995 constitution (as amended). The over payment of pension and gratuity led to over statement of pension expenditure.  A comparison of base pay in the IPPS payroll registers with the salary structure for the financial year 2020/21, revealed that 51 staff were paid using appropriate salary scale but wrong band contrary to Section B–a (6) & (7) of the Uganda Public Service Standing Orders, 2010. The Accounting Officer promised to address it through monthly verification of the payroll.  I noted that UGX.11,772,809 was paid to 9 staff who had either retired, transferred, absconded or died. These were payment for services not rendered to the District resulting in loss of funds to Government. I advised the Accounting Officer to ensure prompt removal of ineligible staff from the payroll.  I noted that whereas UGX.4,904,248,620 was deducted from employees’ salaries to be remitted to different beneficiaries, UGX.4,898,616,110 was remitted, leading to an under remittance of UGX.5,632,510. I advised the Accounting Officer always ensure that full remittances are done to the respective beneficiaries.  I noted that the District made payroll deductions of UGX.1,362,978,294 million, but did not remit concurrently with the salary payments in 5 out of 12 months. On average, it delayed by 35 days. I advised the Accounting Officer to ensure that all deductions to UCLA/UBA are remitted concurrently with salary payments.  I noted delays in the remittance of PAYE deductions to URA of 3 days, in the month of November where deduction was made on 15/11/2020 and the remittance was made on 18/11/2020. The Accounting took note of the observation.  I noted that the District did not subject political leaders’ gratuity totaling to UGX.46,923,600 to the computation of PAYE in IPPS, leading to an under deduction of UGX.10,970,580, contrary to section 19(1) (a) of the Income Tax Act. I advised the Accounting Officer to ensure that political leaders’ gratuity is subjected to tax by including in the gross taxable income when | + + +404 + +--- + +computing PAYE. + +###  I noted that 20 pensioners delayed to access the pension payroll, with delays ranging between 4.5 months. I advised the Accounting Officer to ensure that pensioners promptly access the + +payroll and are subsequently paid. + +###  I noted that 16 employees were paid a total of UGX.52 million without signed pay change reports. This affects the + +integrity/credibility of the payroll and creates an avenue for payroll abuse. + +###  I noted that the District did not prepare monthly wage, pension + +and gratuity performance analysis and thus did not submit + +### quarterly returns on payroll to MoPS, contrary to Paragraph 2.1 + +of Establishment Notice No. 1 of 2020. The Accounting Officer took note of the observation and stated that action has been initiated during Q1 of the FY 2021/22. + +###  A comparison of the payroll register and IFMS payment file, I noted that 3 pensioners were paid a total of UGX.75,420,453 off the IPPS. The Accounting Officer explained that Pension and + +gratuity arrears had their schedule of payment; therefore, they would not be paid through IPPS. + +###  I noted that the district had not prepared and approved a strategic plan that is aligned to the NDP-III at the time of audit. I advise Management to urgently prepare and have approved a strategic plan that is aligned to NDP-III to facilitate the + +achievement of the NDP objectives. + +###  I reviewed the approved Local revenue estimates for the financial year 2020/2021 and noted that the District budgeted to collect + +UGX. 663,494,100 during the year but collected UGX.445,457,586 representing (67%) performance. I advised the + +### Accounting Officer to always ensure that NTR is collected as + +budgeted. + +###  The District budgeted to receive UGX.54,077,677,212 (revised) as grants from the Treasury. I noted that, UGX.48,328,375,344 + +was warranted/ received representing 89% performance. + +###  The District budgeted to receive UGX.38,231,319,640 as + +transfers from other Government Units. However, only UGX.23,692,222,658 (62%) was received. + +###  The District budgeted to receive UGX.5,980,183,220 as + +external/donor financing out of which UGX.2,031,658,591 (34%), was received. + +###  Out of the total receipts for the financial year of + +UGX.74,531,220,778, UGX.57,130,020,926 (76.6%) was spent by the district resulting in an unspent balance of + +### UGX.17,401,199,852 (23.4%). The unspent balance at the end of + +the financial year was subsequently swept back to the + +405 + +--- + +|| consolidated fund account. I advised the Accounting Officer to ensure that the rolled over activities are given priority during implementation.  I noted that Management submitted performance reports for Q2, Q3 and Q4 after the deadline. In addition, I did not obtain evidence to confirm that the Accounting Officer Prepared Monitoring Plans and reports which are important in ensuring that the budget performs as expected.  Contrary to Section 34 (1) of the Public Finance Management Act 2015, I observed the District constructed two (2) operating theaterstheatres worth UGX.666,903,480 at Ariwa Health Centre (HC) III and Baraka HC III in the financial year 2017/18 and were not functional and without operating equipment by close of audit. The unutilized operating theatre denies services to the community | +|---|---| +| 04. | TEREGO DLG Opinion Unqualified |  Terego District Local Government (DLG), being a newly created District curved out of Arua District, I noted that the payroll for the year under review was managed by Arua DLG. As a result, the pay roll analysis for Terego District was made under the audit of Arua DLG.  I, noted that although the district aligned its targets for the F/Y 2020/2021 with the DDPIII and NDPIII, the District strategic plan had not been approved. I advised the Accounting Officer to urgently prepare and approved a strategic plan that is aligned to NDP-III to facilitate the achievement of the NDP objectives  I reviewed the approved Local revenue estimates for the financial year 2020/2021 and noted that the District budgeted to collect UGX. 116,717,055 during the year but collected UGX.89,153,132 representing (76%) performance. The shortfalls in Local Revenue collections of UGX. UGX.27,563,923(24%) were recorded in Local Service Tax, Land Fees , Business Licence, other tax revenues, administrative fees and Application Fees.  The District budgeted to receive UGX. 23,749,241,508 (revised) as grants from the Treasury. I noted that, UGX. 1,894,332.444 was warranted/ received representing 8% performance. Revenue shortfalls affect the implementation of planned activities.  The Entity budgeted to receive UGX.4,406,498,162 as transfers from other Government Units. However, only UGX.4,006,498,162 (90%) was received. Revenue shortfalls affected the implementation of planned activities.  The District budgeted to receive UGX. 0.8Bn as external/donor financing out of which UGX. 0.4Bn (50%), was received. Revenue shortfalls affect the implementation of planned activities. The Accounting Officer explained that, for external financing the key donor projects funded by UNHCR and UNICEF use the calendar year for Budgeting and reporting as at the close | + + +406 + +--- + +|| of the financial year 2020/2021 their Budget release was only for the six months thus explaining the poor performance.  Out of the total receipts for the financial year of UGX. 6.5Bn, UGX. 5.9Bn (91%) was spent by the entity resulting in an unspent balance of UGX. 0.6 Bn (91%). The unspent balance at the end of the financial year was subsequently swept back to the consolidated fund account. The funds were meant for activities that were not fully implemented by the end of the financial year and these include Salaries worth UGX.475,796,820.  During field Inspection carried out on service delivery areas at Yinga HC III, I observed the following;  Fridge for storage of blood donated by IRC and UNICEF was not installed consequently, cases of anaemia are referred to other facilities;  Motorised borehole that was installed by OXFAM had been disconnected for six months;  the piped water system installed at the facility had broken down for the period of six months;  As per interview of in-charge of the facility, the facility had not been supplied drugs for two quarters leading to drug stock-outs. This led to the referral of cases that would have been handled at the facility;  The generator that was donated to the HC has never been installed during the two years it has been at the facility  I reviewed of the governance structures of Terego DLG and noted that the district did not have a District Land Board in place. Consequently, the institutional land of the district was not titled. Further, there were reports of land disputes as seen in the Council Minutes dated 21st May 2021.  I reviewed the execution of the annual procurement plan of Terego district for the year under review revealed that projects worth UGX.740,372,862 were not executed in the year, hence hindering service delivery to the intended beneficiaries.  I reviewed the implementation of the DRDIP project in the district and observed that 16 beneficiary projects funded to the tune of UGX.1,620,066,939 had not yet been implemented. The Accounting Officer promised immediate action. I await the outcome of the Accounting Officers action. | +|---|---| +| 05. | NEBBI DLG Opinion Unqualified |  I noted that the District did not submit wage estimates to MoPS, as required. I advised the Accounting Officer to always submit wage estimates to MoPs by 30th September of the preceding year.  I reviewed funds absorption and noted that UGX.19,924,679,353 (92%) was spent out of the total receipts of UGX. 21,572,885,359, resulting in an unabsorbed balance of UGX. 1,648,206,006. The unabsorbed balance was subsequently swept | + + +407 + +--- + +back to the consolidated fund account hence denying the use of funds for other deserving service delivery areas. + + + +- I noted that whereas UGX.4,339,048,878 was deducted from + +## employees’ salaries to be remitted to different beneficiaries only, UGX.4,333,222,745 was remitted, leading to an over remittance + +of UGX.4,849,344 and under remittance of UGX.10,675,477. + +###  I noted that the District made unauthorized loan deductions + +totaling UGX.87,617,577. The deductions were from 78 employees that neither had letters of undertaking nor existed in + +## the “active deduction” or the “my approval” reports on the + +PDMS-Payroll Deduction Management System, operated by PCA- Payroll Consults Africa. + +###  I compared the loan deductions in June 2021 on the IPPS payroll against the active deductions amounts on the Payroll Consults Africa (PCA) system and discovered that there were 160 instances where the amount on IPPS being deducted is either + +more or less than the amount on the active deductions implying that there is a weakness in the system of loan deductions where many employees are either over paying for loans they picked or are underpaying. + +###  In a sample of 14 teachers selected, I noted that the + +district/votes were not affecting annual salary increments on + +### employee salaries. This may lead to demotivation of staff. + +###  I noted that the district had not yet prepared a strategic plan at + +the time of audit, I advised the Accounting Officer to ensure that the strategic plan is implemented upon approval. + +###  I advised the Accounting Officer to ensure that the strategic plan is implemented upon approval. I advised the Accounting Officer to always ensure that NTR is collected as budgeted. The district budgeted to receive UGX.6, 748,502,080 as transfers from other Government Units. However, only UGX.1,325,146,185 (20%) was + +received. Revenue shortfalls affected the implementation of planned activities. + +###  The district budgeted to receive UGX.2,213,127,500 as + +external/donor financing, out of which UGX.261,434,917 (12%), + +### was received. Revenue shortfalls affect the implementation of + +planned activities. + +###  District failed spent fund balance of UGX.681, 679,315 meant for Start of construction of Ndhew Seed Secondary School, Drilling of + +boreholes, and Payment of gratuity. + +###  I noted that the district submitted performance reports for all the + +quarters after the deadlines given for submission of the reports, + +### In addition, I did not obtain evidence to confirm that the Accounting Officer Prepared Monitoring Plans and reports which + +408 + +--- + +|| are essential in ensuring that the budget performs as expected.  From my review of the annual performance report, I noted that some outputs were not captured in the performance report, these included Purchase and supply of ICT Equipment for Atego Seed Secondary, and Purchase and supply of laboratory equipment to Atego Seed Secondary School.  I noted that the District received a total of UGX.48,565,353. I reviewed the bank statements sampled schools and noted that the funds were still on the school accounts by 30th September, 2021 and had hence not been utilized. | +|---|---| +| 06. | NEBBI MC Opinion Unqualified |  I noted that the Municipal Council did not submit wage estimates to MoPs, as required. I advised the Accounting Officer to always submit wage estimates to MoPs by 30th September of the preceding year.  A review of the pension payroll data and IFMS payments, revealed variances between amounts on the payroll and payments to individual pensioners, leading to over payments of UGX. 4,584,882 contrary to article 254 (1) & (3) of the 1995 constitution (as amended). I further noted that there was an under payment of UGX.32,297,600 as well. The Accounting Officer acknowledged the shortcoming and promised future action.  A comparison of base pay in the Integrated Personnel and Payroll System (IPPS) payroll registers with the salary structure for 2020/21, revealed that 6 staff were paid using wrong salary scales, leading to over payments of UGX.3,190,260 contrary to Section B–a (6) & (7) of the Uganda Public Service Standing Orders, 2010.  I noted that whereas UGX.722,140,725 was deducted from employees’ salaries to be remitted to different beneficiaries, UGX.703,333,159 was remitted, leading to an under remittance of UGX.18,807,566.  I noted that the Municipal Council made unauthorized loan deductions totaling UGX.38,493,134. The deductions were from 24 employees that neither had letters of undertaking nor existed in the “active deduction” or the “my approval” reports on the PDMS-Payroll Deduction Management System, operated by Payroll Consults Africa (PCA).  I noted that the Municipal Council did not subject political leaders’ gratuity totaling to UGX.10,962,600 to the computation of PAYE in IPPS, leading to an under deduction of UGX.3,288,780 contrary to section 19 (1) (a) of the Income Tax Act.  I noted that, there was minimal movement in receivables as only | + + +409 + +--- + +|| UGX.4,156,000 was recovered from the reported amount of UGX.528,709,420 previously, implying no significant effort was put into recovery.  I noted that the Municipal Council had not prepared and approved a strategic plan that is aligned to the NDP-III.  I noted budget underperformance of UGX.2,132,255,571 from government grants and local revenue which affected activity implementation  The municipality failed to spent funds worth UGX.522,335,106 and the unspent balance at the end of the financial year was subsequently swept back to the consolidated fund account.  I noted that UGX.20,661,647 was charged on items which did not reflect the nature of the expenditure. I advised the Accounting Officer to always ensure that the correct codes are charged and seek approvals for any virement or reallocations | +|---|---| +| 07. | MARACHA DLG Opinion Unqualified |  I noted that the District did not submit wage estimates to MoPS, as required. I advised the Accounting Officer to always submit wage estimates to MoPs by 30th September of the preceding year.  I reviewed funds absorption and noted unabsorbed balance of UGX. 1.2 billion meant for payment mostly pensioners due to slow processing of pension benefits by the beneficiaries  A comparison of base pay in the IPPS payroll registers with the salary structure for 2020/21, revealed that 4 staff were paid using wrong salary scales, leading to over payments of UGX.25,197,900, and under payment of UGX.544,068 contrary to Section B–a (6) & (7) of the Uganda Public Service Standing Orders, 2010. The Accounting Officer acknowledged the audit observation and promised to follow the audit recommendation.  I noted that UGX.11, 634,613 was paid to 32 staff who had either retired, transferred, absconded or died. I advised the Accounting Officer to ensure prompt removal of staff from the payroll and recover payments of salaries to staff who have left active employment.  I noted that whereas UGX3,361,569,932 was deducted from employees’ salaries to be remitted to different beneficiaries, UGX3,358,721,257 was remitted, leading to an over remittance of UGX.6,609,552 and under remittance of UGX.9,458,227, I advised the Accounting Officer to reconcile IPPS deductions against IFMS remittances and recover the over remittances and pay the under remittances.  I noted that the District made unauthorized loan deductions totaling UGX.100.4 million. The deductions were from 93 employees that neither had letters of undertaking nor existed in | + + +410 + +--- + +|| the “active deduction” or the “my approval” reports on the PDMS-Payroll Deduction Management System, operated by PCA- Payroll Consults Africa.  I noted that the District did not subject political leaders’ gratuity totaling to UGX.37,848,204 to the computation of PAYE in IPPS, leading to an under deduction of UGX.11,377,861, contrary to section 19(1) (a) of the Income Tax Act.  I noted that the District did not prepare monthly wage, pension and gratuity performance analysis and thus did not submit quarterly returns on payroll to MoPS, contrary to Paragraph 2.1 of Establishment Notice No. 1 of 2020.  I noted that 3 staff were paid a total of UGX.15 Million off the IPPS. I advised the Accounting Officer to ensure that salaries, pension and gratuity is processed and paid through the IPPS.  I noted that the strategic plan of Maracha District was still not approved and therefore it was still in draft form.  I reviewed the approved Local revenue estimates for the financial year 2020/2021 and noted that the District budgeted to collect UGX.215,093,000 during the year but collected UGX.143, 183,859 representing (66.6%) performance. The shortfalls in Local Revenue collections of UGX.71,909,141 (33.4%) were recorded in Land fees, business licenses, other tax revenues and Administrative fees and licenses. Revenue shortfalls affected the implementation of planned activities.  The Entity budgeted to receive UGX. 8, 429,617,471 as transfers from other Government Units. However, only UGX. 139, 292,268 (1.7%) was received, Revenue shortfalls affected the implementation of planned activities.  The Entity did not also submit quarterly monitoring reports to the Office of the Prime Minister and MoFPED as required. I advised the Accounting Officer to ensure that monitoring plans and reports are timely submitted accordingly.  Contrary to Regulation 47 of the PPDA (Contract) Regulations, 2014, the entity on 29th June 2021 paid UGX.178, 391,142 to the contractor upgrading Odupiri HC II to HC III without an interim payment certificate. On inspection in September 2021, On physical inspection, I noted that the construction was still at ring beam stage hence severely delayed and the contractor was not on site and therefore there was no construction works.  I noted that the District received a total of UGX.166,590,846 I reviewed the bank statements sampled schools and noted that the funds were still on the school accounts by 30 th September, 2021 and had hence not been utilised. | +|---|---| +| 08. | MADI-OKOLLO DLG |  I noted that the District did not submit wage estimates to MoPs, | + + +411 + +--- + +### as required. The submission was made late. The Accounting Opinion Officer promised to handle this issue as per the requirement in Unqualified + +the subsequent years. + +###  I reviewed payroll funds absorption and noted that UGX.7.4 billion (73%) was spent out of the total receipts of UGX.10.18 billion, resulting in an unabsorbed balance of UGX.2.78 billion. I advised the Accounting Officer to consider the unimplemented + +activities in the next work plan. + +###  A comparison of base pay in the IPPS payroll registers with the + +salary structure for 2020/21, revealed that 17 staff were paid + +### using wrong salary scales, leading to under payments of UGX. + +2.1 million, contrary to Section B–a (6) & (7) of the Uganda + +### Public Service Standing Orders, 2010. + + + +- I noted that whereas UGX.1,901,582,442 was deducted from + +### employees’ salaries to be remitted to different beneficiaries, UGX.1,868,292,549 was remitted, leading to an over and under + +remittance of UGX.28,854,515 and UGX.62,144,408 respectively + +###  I noted that the District made unauthorized loan deductions totaling UGX.108million from 55 employees that neither had + +letters of undertaking nor existed in the “active deduction” or the “my approval” reports on the PDMS-Payroll Deduction Management System, operated by PCA-Payroll Consults Africa + +##  I noted that the District did not subject political leaders’ gratuity + +### totalling to UGX 40,202,400 to the computation of PAYE in IPPS, leading to an under deduction of UGX 12,439,426, contrary to section 19 (1) (a) of the Income Tax Act. The + +###  I noted that 32 newly recruited/ transferred employees and 5 + +pensioners delayed to access payroll, delayed access to payroll leads to demotivation of the affected staff and accumulation of salary arrears. + +###  From a comparison of the payroll register and IFMS payment file, I noted that 14 staff and were paid a total of UGX 19,228,208 off the IPPS. This control weakness creates an opportunity for + +payment of salaries and pension to non-eligible persons, hence loss of funds to Government. + +###  I noted that the entity had not prepared and approved a strategic plan that is aligned to the NDP-III. + +###  I reviewed the approved Local revenue estimates for the financial year 2020/2021 and noted that the District budgeted to collect + +UGX. 302,248,400 during the year but collected UGX.209,081,450 representing (69%) performance. The + +412 + +--- + +|| shortfalls in Local Revenue collections of UGX. UGX. 93,166,950 (31%) were recorded in Land fees, business licenses, other tax revenues and Administrative fees and licenses.  I noted that Management submitted performance reports for Q1, Q2, Q3 and Q4 after the deadline given for submission of the reports. In addition, I did not obtain evidence to confirm that the Accounting Officer Prepared Monitoring Plans and reports which are important in ensuring that the budget performs as expected. The Accounting Officer admitted the shortcoming and promised to address the matter.  I noted that there was a general delay in the implementation of NUSAF 3 sub- projects without any justification.  Madi-Okollo District contracted M/s TIC Lokere Enterprises Ltd for the rehabilitation of Inde mile 10 Yoro base camp feeder road under DRDIP programme at a cost of UGX.1, 238,943,750. However, I noted that there was delayed Completion of the contract, Failure to install culverts at critical points of the road and Poorly installed culverts.  I noted that advances of UGX. 52,332,500 remained not accounted for, at year end. The funds were advanced to staff to carry out various activities. In the absence of the relevant accountability documents, it was not possible to confirm that the funds were used for the intended purposes.  I noted that there were un-utilized Market at Rhino Camp. The Market was constructed at an estimated cost of UGX.700,000,000. The market lock ups had been turned into residential apartments instead and the market stalls have been abandoned and now only used for drying cassava.4 | +|---|---| +| 09. | KOBOKO MC Opinion Unqualified |  I noted that the Municipal Council did not submit wage estimates to MoPs by 30th September of the preceding year as required.  The Municipal did not absorb wage funds worth UGX.0.33 billion.  The Council had outstanding domestic arrears worth UGX 113,354,578 that accrued within the year  I noted that the Municipal Council made unauthorized loan deductions totaling UGX. 18,148,668. from 16 employees that neither had letters of undertaking nor existed in the “active deduction” or the “my approval” reports on the PDMS-Payroll Deduction Management System, operated by PCA-Payroll Consults Africa.  I noted that 6 pensioners delayed to access the pension payroll  I noted that 5 staff was paid a total of UGX. 6,488,549 off the IPPS.  I noted that the Municipal Council did not have an approved plan | + + +413 + +--- + +|| neither did it have certification of the plan by NPA.  I noted underperformance in all revenue sources totaling UGX. 4,384,175,589 that affected implementation of planned activities at the council I further noted delayed submission of quarterly performance reports to OPM and MoFPED | +|---|---| +| 10. | ARUA REGIONAL REFERRAL HOSPITAL Opinion Unqualified |  Through re-computation of gratuity benefits, I noted that there were variances of over payments of UGX.21,706,000 and under payment of UGX.19,700,433. I also re-computed pension benefits, and I further noted that there were variances of over payment of UGX.5, 798,629 and under payments of UGX.10, 401,528. The Accounting Officer explained that gratuity payments are automatically computed through the IPPS system. Consultations with system officers in MOPS were underway to have the error rectified.  I noted that UGX.6,659,448 was paid to 03 staff who had been transferred to other entities. These were payment for services not rendered to the Hospital, resulting in loss of funds to Government.  I noted that deductions to UCLA/UBA were concurrently remitted as salary was paid except for the month of April, 2021 where there was no remittance at all yet UGX.16,434,444 was deducted  I noted that the Hospital did not include Hospital Management Board Member’s retainer fees of UGX.33,600,000 in the computation of PAYE leading to under deduction of PAYE of UGX.10,080,000 contrary to section 19(1) (a) of the Income Tax Act.  I noted that the Hospital did not prepare monthly wage, pension and gratuity performance analysis and thus did not submit quarterly returns on payroll to MoPS, contrary to Paragraph 2.1 of Establishment Notice No. 1 of 2020.  The Hospital had outstanding (unsettled) domestic arrears worth UGX. 1,255,228,566 by close of financial year  I noted that the Hospital had not prepared and approved a strategic plan that is aligned to the NDP-III.  I noted the Hospital received off-budget financing from Ministry of Health and development partners for undertaking various activities not budgeted to a tune of UGX.1,925,620,637 which was not transferred to the consolidated fund as required by the law.  The Hospital Ambulance number UG6812M had been stolen from the hospital yard. By close of the audit, the ambulance had not been recovered by management. Also the value of the ambulance had not been updated in the assets register as | + + +414 + +--- + +|| required.  I noted that the Hospital did not have a land title for Hospital land plot 43 – Hospital cell with an estimated size of 13.478 acres which it currently occupied. There was no evidence of ownership of property and there was no guarantee that the land was free from encroachment. | +|---|---| +| 11. | MOYO DLG Opinion Unqualified |  I noted that UGX.12,035,376 was paid to 8 staff who had either retired, transferred, absconded or died. I advised the Accounting Officer to ensure prompt removal of staff from the payroll.  I noted that whereas UGX.2,467,253,134 was deducted from employees’ salaries to be remitted to different beneficiaries, UGX.2,499,884,543 was remitted, leading to an under remittance amounting to UGX.519,984 and over remittance of UGX.33,151,393. I advised the Accounting Officer to ensure prompt removal of staff from the payroll.  I noted that whereas UGX.2,467,253,134 was deducted from employees’ salaries to be remitted to different beneficiaries, UGX.2,499,884,543 was remitted, leading to an under remittance amounting to UGX.519,984 and over remittance of UGX.33,151,393.  I noted that the District did not subject political leaders’ gratuity totalling to UGX.28,087,200 to the computation of PAYE in IPPS, leading to an under deduction of UGX.8,520,960 contrary to section 19(1) (a) of the Income Tax Act.  I noted that 6 pensioners delayed to access the pension payroll, with delays ranging between 1-2 months. Delayed access to the pension payroll leads to poor wellbeing of the affected retirees as well as accumulation of pension arrears.  I noted that the District/Municipal Council did not prepare monthly wage, pension and gratuity performance analysis and thus did not submit quarterly returns on payroll to MoPS, contrary to Paragraph 2.1 of Establishment Notice No. 1 of 2020.  Revenue underperformance of UGX.9,484,876,432 due to shortfall in NTR, government transfers and donor funding  The district did not absorb funds worth of UGX.940, 729,263 and these funds were subsequently swept back to the consolidated fund account.  I further noted that funds received under USMID totaling to UGX.1,342,227,081 were not absorbed and as such swept back to the consolidated fund | +| 12. | KOBOKO DLG |  I noted that there was an under payment of UGX 83,675,196 of pension and gratuity | + + +415 + +--- + +### Opinion Unqualified  I noted that UGX 5,703,084 was paid to 2 staff who had either + +retired or died + +###  I noted that whereas UGX. 2,007,415,658 was deducted from + +## employees’ salaries to be remitted to different beneficiaries, UGX. + +1,866,468,850 was remitted, leading to an under remittance of + +### UGX.140,946,808 + +###  I noted that the District made unauthorized loan deductions + +totaling UGX. 111,107,631 + +###  I noted that 14 newly recruited/ transferred employees and 6 + +pensioners + +###  From a comparison of the payroll register and IFMS payment file, I noted that 25 staff were paid a total of UGX. 27,346,176 off the IPPS + +- The district has outstanding payables worth UGX.736,710,419 in the current financial year + + + +###  I noted that the entity had not prepared and approved its + +strategic plan at the time of audit + +###  I noted a number of issues in the implementation of approved + +budget such as partial or non-implementation of planned + +### activities and budget shortfall of UGX.8,706,420,377 that affected + +implementation of planned activities; late submission of quarterly + +### reports to Office of the Prime Minister and MoFPED + +###  Construction of Multipurpose Hall, ICT, Library Block , teachers houses, pay ground and water installation at Padrombu + +SeedSchool UGX.1,234,362,772 has delayed and is incomplete + +### and the Contractor was not on site + +- Nyangilia Ps briquette making sub project was advanced + + + +### UGX.51,257,476 on Voucher No/EFT number 36222842 for the purpose of making fuel energy through briquettes. During field inspections undertaken on 24/11/2021, I noted that sub project + +had not yet taken off and the group members could not be traced + +###  I noted that Koboko District received a total of UGX. 113,097,405 for supply of additional learning materials. I reviewed the bank + +statements for sampled schools and noted that the funds were + +## still on the schools’ accounts by 30 th September, 2021 and had + +hence not been utilised + +###  I noted that management ignored the element of competition in + +the procurement of some items worth UGX.1,236,462,077 + +###  I noted that although the Bamure HC III General ward facility + +416 + +--- + +|| was completed and ready for use, the building was redundant and had not yet been put to use five months after completion | +|---|---| +| 13. | ARUA DLG Opinions Unqualified |  I was not availed with evidence that the district submitted wage estimates to MoPs as required.  The district failed to absorb wage funds worth UGX.2.14 billion and the funds were swept back into the consolidated fund account at year end.  The district made over payments of UGX.17, 088,304 various pensioners.  I noted that UGX.10, 115,392 was paid to 15 staffs that neither appeared on the IPPS payroll register nor had the necessary documentation in their personal files to support their existence.  I noted that 58 employees were paid salaries above their applicable salary band resulting in overpayments totalling UGX.37,427,696 while 6 employees were paid salaries below their applicable salary band resulting in underpayments totalling UGX.2,441,988.  The District wrongly computed gratuity benefits for 01 pensioner that resulted in an overpayment of UGX.17,088,304.  I noted that UGX.66,918,755 was paid to 49 staff who had either retired, transferred, absconded or died.  The district over and under remitted payroll deductions worth UGX.246,912,350 and UGX.201,704,458 due to wrong coding in the system  I noted that the District made unauthorized loan deductions totaling UGX.386, 522,646. The deductions were from 419 employees that neither had letters of undertaking nor existed in the “active deduction” or the “my approval” reports  I further noted that loan deductions relating to 16 (sixteen) employees did not have evidence of consent by the employees.  The District made PAYE deductions of UGX UGX.314, 021,935 for the month of February 2021, but did not remit to URA as required  I noted that the District did not subject political leaders’ gratuity totalling to UGX.105,792,166 to the computation of PAYE in IPPS, leading to an under deduction of UGX.33,858,520, contrary to section 19(1) (a) of the Income Tax Act and also noted tha t 58 pensioners delayed to access the pension payroll during the year.  I noted that unqualifying funds amounting to UGX.52, 328,174 were charged on account codes prescribed for salary, pension and gratuity. | + + +417 + +--- + +||  I noted that 29 employees were paid a total of UGX.51,348,377 without signed pay change reports.  I noted that 1,302 staff was paid a total of UGX. 3,048,993,948 off the IPPS that arose from wrong coding of Arua DLG staff under Madi-Okollo DLG payroll arising from the separation of the payroll following the creation of Madi-Okollo district.  The budget of Arua DLG was not adjusted/collapsed following the issuance of the supplementary budgets to the new local governments. Consequently, the budget of Arua DLG for the year under review is unrealistic. Further, activities meant to be undertaken by the new local governments were undertaken by Arua DLG for example the payment of general staff salaries totaling UGX.6,397,754,797 for Terego DLG staff and UGX.8,348,159,119 for Arua city staff. This distorts the budget performance measurement for the local governments involved.  I noted underperformance of revenues from NTR, transfer from government units and donor funding worth UGX.30.7Bn that affected budget implementation  The district failed to absorb funds worth UGX.9.3Bn and these funds were subsequently swept back to the consolidated fund account.  The district mischarged funds worth UGX.373, 406,160 on various codes other those budgeted for. Further, I noted that funds to the tune of UGX.93, 269,685 were spent on other activities without seeking and obtaining the necessary approvals.  I noted outstanding recoveries of funds from YLP and UWEP groups worth UGX.1, 793,009,954 by the year end.  I noted that Arua District received a total of UGX.490,472,016. I reviewed the bank statements sampled schools and noted that the funds were still on the school accounts by 30th September, 2021 and had hence not been utilized. | +|---|---| +| 14. | ADJUMANI DLG Opinion Unqualified |  I reviewed funds absorption for salary and pension payments and noted under absorption of UGX.1.2 billion which may have led to non payment of eligible employees and pensioners  I noted that UGX.3,339,798 was paid to 4 staff who had retired. These were payments for services not rendered to the District, resulting in loss of funds to Government.  I noted that the District made unauthorized loan deductions amounting to UGX.39,469,082 relating to 40 employees that neither existed in the “active deduction” nor the “my approval” reports on the PDMS as evidence of approval.  I noted that 3 pensioners delayed to access the pension payroll | + + +418 + +--- + +|| during the year with average delay period of 39 days to access the pension payroll.  I noted that the District did not submit quarterly returns on payroll to MoPS. This led to accumulations of arrears, under absorption of wage, pension and gratuity budget and delays in granting clearance to recruit.  From a comparison of the payroll register and IFMS payment file, I noted that 5 staff was paid a total of UGX.7, 145,972 off the IPPS. This control weakness created an opportunity for payment of salaries to non-eligible persons.  I noted that the verification form and copies of the verification card for 6 pensioners/beneficiaries were not on their files. I was therefore unable to validate, authenticate the accuracy of the payroll records (salary and pension) on the IPPS.  I noted that the District Development Plan III was still in a draft form and had not yet been approved.  The district did not receive funds worth UGX.14,639,062,373  The district failed to absorb funds worth UGX. 1,621,646,255 by the end of the financial year and the funds were subsequently swept back to the consolidated fund account that affected construction of roads and bridges, Installation of streetlights; and Construction of Leisure Park among others  The funds were meant for activities that were not fully implemented by the end of the financial year and these include;  A review of the revenue management process revealed that there was no invoice register for the amount billed during the year in place and schedule of debtors detailing debtor’s records. I also noted that the district does not have a streamlined policy to be followed to recover the outstanding revenues/amounts.  I noted outstanding YLP balance of UGX.707, 536,351 that has not been recovered by the district which is affecting the revolution of the funds to other groups in the queue  The district had outstanding unrecovered the UWEP funds worth UGX.406,275,629 by close of the year  I noted that the District received a total of UGX. 129,300,127. I reviewed the bank statements sampled schools and noted that the funds were still on the school accounts by 30th September, 2021 and had hence not been utilized. | +|---|---| +| 15. | Pakwach DLG Opinion Unqualified |  I noted that the District did not submit wage estimates to MoPs by 30th September of the preceding year a required  I reviewed funds absorption and noted that UGX. 10.209 Bn | + + +419 + +--- + +|| (94%) was spent out of the total receipts of UGX.10.885 Bn, resulting in an unabsorbed balance of UGX. 0.676 Million. The unabsorbed balance was subsequently swept back to the consolidated fund account  I reviewed funds absorption and noted that UGX.19.4 billion (94%) was spent out of the total receipts of UGX.20.6 billion, resulting in an under absorption of UGX.1.2 billion. I further noted an unexplained under absorption of salaries funds totaling UGX. 235,934,838 and under absorption of pension and gratuity totaling UGX.930, 294,356.  I noted that UGX.3, 339,798 was paid to 4 staff who had retired. These were payments for services not rendered to the District, resulting in loss of funds to Government.  I further noted that loan deductions for a sample of 10 employees lacked letters of undertaking and did not have evidence of consent.  I also noted loan deductions for twenty-eight (28) staff, totaling UGX.33,119,091, were above the approved deduction amount and Loans for fifteen (15) staff totaling UGX.132,794,500 had unreasonable loan end-dates.  I noted that the District did not submit quarterly returns on payroll to MoPS. This led to accumulations of arrears, under absorption of wage, pension and gratuity budget and delays in granting clearance to recruit.  From a comparison of the payroll register and IFMS payment file, I noted that 5 staff were paid a total of UGX.7, 145,972 off the IPPS. This control weakness created an opportunity for payment of salaries to non-eligible persons | +|---|---| +| 16. | ARUA MC Opinion Unqualified |  I noted that the wage and Pension Pay roll of UGX. 7,083,040,397 constituted 25% of the Municipal Council’s budget for 2020/2021 of 28.3Bn.  I noted that the Municipal Council delayed to submit wage estimates to MoPs, as required.  I reviewed funds absorption and noted that UGX.6.7 billion (98%) was spent out of the total receipts of UGX.6.9 billion for salaries, pension and gratuity  I noted that whereas UGX.1,510,024,063 was deducted from employees’ salaries to be remitted to different beneficiaries, UGX.1,502,519,098 was remitted leading to an under remittance amounting to UGX.7,504,965  I noted that the entity did not include political leaders’ gratuity of UGX.8,939,400 in the computation of PAYE leading to under deduction of PAYE of UGX.2,681,820 | + + +420 + +--- + +||  I noted that the verification form and copies of the verification card for 09 pensioners/beneficiaries were not on their files  I further noted that the Municipal Council Development Plan III was still in a draft form and had not yet been approved  I noted that the Municipal Council had off-budget receipts totaling UGX.1, 069,848,174 during the year.  I noted a number of issues in the implementation of approved budget suchas as failure to fully quantify outputs, partial and non-implementation of planned activities; over absorption of UGX.761,755,708; revenue underperformance of UGX.2,530,484,439  I noted that UGX.210,033,250 meant for surfacing of Staff Lane and Construction of Municipal Bypass was utilised for supply and installation of solar street lights on Oluko Road   I noted that the entity submitted performance report for Q4 after the deadline given for submission of the reports  I noted that there were unapproved overpayments of UGX.1,427,380,000 relating to USMID works on School road and Adroa road  I noted that the Municipal Council made advance payment of UGX.333,383,989 to contractors without bank guarantees  I noted low bidder participation in 3 of the 11 sampled procurements  I noted that the Municipal Council did not receive its approved supplementary development budget totaling UGX.14,340,000,000 under Supplementary Expenditure Estimates Supplied Addendum No.1 to Schedule No.2 for F/Y 2020/2021  I noted that the Municipal Council did not have an approved staff structure/establishment. | +|---|---| +|| MBARARA BRANCH | Summary of Key Findings | +| 01. | MBARARA DLG Opinion Unqualified |  I analyzed the approved budget and releases to Mbarara District for salary, pension and gratuity in the period under review and noted that the wage and Pension Pay roll of UGX.20,650,503,996 constituted 68% of the District’s budget for 2020/2021 of UGX.30.38 Bn  I noted that the District delayed to submit wage estimates to MoPS, contrary to the Establishment Notice. The submission was made on 18th February 2020, which is 140 days after the required date  I reviewed funds absorption and noted that UGX.19.6 billion (95%) was spent out of the total receipts of UGX.20.7 billion, resulting in an unabsorbed balance of UGX.1.1 billion. | + + +421 + +--- + +||  I noted that the District made unauthorised loan deductions totalling UGX.11.8 million. The deductions were from 40 employees that neither existed in the “active deduction” nor the “my approval” reports on the Payroll Deduction Management System (PDMS), operated by Payroll Consults Africa (PCA)  I noted that the District made payroll deductions of UGX. 813,620,096, but did not remit concurrently with the salary payments in 11 out of 12 months. The delay ranged from 5 to 84 days  I noted delays in the remittance of PAYE deductions to URA for 2 months of November 2020 and January 2021 of six (06) and eighty (08) days respectively  I noted that the District did not subject political leaders’ gratuity totalling to UGX. 16,304,260 to the computation of PAYE in IPPS, leading to an under deduction of UGX.4,891,278  I noted that of the 29 newly recruited/transferred, 13 employees delayed to access payroll, with delays ranging between 6 to 12 weeks  pensioners delayed to access the pension payroll, with delays ranging between 7-10 months  Gratuity and pensions of UGX. 601,669,910 was charged on Salary account which did not reflect the nature of the expenditure  I noted that the District prepared monthly wage, pension and gratuity performance analysis but did not submit quarterly returns on payroll to MoPS  I reviewed the approved Local revenue estimates for the financial year 2020/2021 and noted that the District budgeted to collect UGX.1,293,851,871 during the year but collected UGX.974,341,070 representing (75%) performance.  The Entity budgeted to receive UGX.2,077,267,871 as transfers from other Government Units. However, only UGX.583,148,567 (28%) was received. Revenue shortfalls affected the implementation of planned activities  The District budgeted to receive UGX.693,590,000 as external/donor financing out of which UGX.53,180,000 (7.7%), was received  I noted that management did not submit quarterly monitoring reports to the Office of the Prime Minister and Mofped as required | +|---|---| +| 02. | RUBANDA DLG Opinion Unqualified |  I analysed the approved budget and releases to Rubanda District for salary, pension and gratuity in the period under review and noted that the wage and Pension Pay roll of UGX.17,152,929,012 constituted 49% of the District’s budget for 2020/2021 of UGX.34.85 Bn  I reviewed the wage funds absorption and noted that UGX.17.29 billion(96) was spent out of the total receipts of UGX18.02 billion, resulting in an unabsorbed balance of UGX.0.73 billion  A review of the payroll data (IPPS) and IFMS payments revealed variances between amounts on the approved payroll and payments to individual employees, leading to over payment of | + + +422 + +--- + +|| UGX. 12,101,332  I noted that 15 employees on the IPPS payroll did not receive salary of UGX. 37,502,687  A comparison of base pay in the IPPS payroll registers with the salary structure for 2020/21, revealed that June payments were made using wrong salary scales, leading to over payments of UGX. 3,197,252, and under payments of UGX. 978,860  I noted that whereas UGX. 4,119,399,533 was deducted from employees’ salaries to be remitted to different beneficiaries, UGX. 4,110,103,755 was remitted, leading to an over and under remittance amounting to UGX.(234,929,994) and UGX.244,225,772 respectively  I noted that the District made unauthorised loan deductions totalling UGX. 41,736,635 from 22 employees that neither had letters of undertaking nor existed in the “active deduction” or the “my approval” reports on the Payroll Deduction Management System (PDMS)  I noted that the District did not subject political leaders’ gratuity totalling to UGX. 30,155,400 to the computation of PAYE in IPPS, leading to an under deduction of UGX. 9,113,820 I noted that 9 pensioners delayed to access the pension payroll, with delays ranging between 6-15 months  I noted that the District did not prepare monthly wage, pension and gratuity performance analysis and thus did not submit quarterly returns on payroll to MoPS  I observed that there were variances of UGX. 5,667,077 and UGX.7.076,946 between the MoPS IPPS and entity payroll registers availed by the core FTP system  I noted that at the time of audit October 2021 the district strategic plan was not approved by NPA.  I noted that the district had planned to collect local revenue of UGX0.587Million but was only able to collect 0.351 million representing 60% performance.  Of the UGX.10.13Bn budgeted as transfers from other Government Units, only UGX.0.8 Bn was received representing 8% performance  The district did not receive any external/donor financing despite having a budget of UGX0.89Bn | +|---|---| +| 03. | KAZO DLG Opinion Unqualified |  I analysed the approved budget and releases to Kazo district for salary, pension and gratuity in the period under review and noted that the wage and Pension Pay roll of UGX.10,993,531,909 constituted 64.1% of the District’s budget for 2020/2021 of UGX.17,131,504,889  A comparison of base pay in the IPPS payroll registers with the salary structure for 2020/21, revealed that 20 staff were paid using wrong salary scales, leading to over payments of | + + +423 + +--- + +### UGX269,392 + +###  I noted that UGX.1,605,867 was paid to 3 staff who had either + +absconded or died + +###  I noted that the District made unauthorised loan deductions + +totalling UGX.43,661,032. The deductions were from 12 employees that neither had letters of undertaking nor existed in + +## the “active deduction” or the “my approval” reports on the + +PDMS-Payroll Deduction Management System, operated by PCA- Payroll Consults Africa. + +###  I further noted that loan deductions relating to 12 employees did + +not have evidence of consent + +###  I noted that the District made payroll deductions but did not + +remit concurrently with the salary payments in 7 out of 8 + +### months. On average, it delayed by 7 days + +##  I noted that the District did not subject political leaders’ gratuity + +### totalling to UGX.29,166,600 to the computation of PAYE in IPPS, + +leading to an under deduction of UGX.8,652,480 + +###  I noted that the District did not prepare monthly wage, pension + +and gratuity performance analysis and thus did not submit quarterly returns on payroll to MoPS + +###  I noted that the district was implementing a strategic plan (2020/21- 2024/25) that had not been approved by National + +Planning Authority + +###  I noted that the district only managed to collect local revenue of + +UGX327,102,266 of the budgeted UGX 824,355,800 representing 40% performance + +###  I noted that Transfers received from the consolidated fund + +performed at 90% + +###  I noted the district did not receive any external financing despite + +having a budget of UGX 33,504,000 + +###  I noted that the District received off-budget financing of UGX.552,762,500 which was never paid into the consolidated + +fund as required by the law + +###  Out of the total receipts for the financial year of UGX.15.12bn + +(including opening balance of UGX.367,655,139) UGX.14.46bn was spent by the entity resulting in an unspent balance of UGX.0.65 Bn representing absorption level of 96% + +###  I assessed the implementation of twenty two (22) outputs that + +were fully quantified with a total of twenty-one (22) activities + +### worth UGX 1.83Bn and noted that Eighteen (18) outputs with total expenditure amounting to UGX 1.16 Bn were fully implemented representing 70.6% of the outputs, Four (4) outputs with total expenditure amounting to UGX.0.67 Bn were + +partially implemented representing 29.4% of the outputs. + +###  I noted that the entity submitted performance reports for Q1, + +Q2, Q3, Q4 after the deadline given for submission of the reports + +424 + +--- + +4. INSINGIRO DLG + + + +### Opinion Unqualified + +###  I analysed the approved budget and releases to the District for + +salary, pension and gratuity in the period under review and noted that the wage and Pension Pay roll of UGX.25,700,415,566 + +## constituted 29.4% of the District’s budget for 2020/2021 of + +UGX.87.35 Bn + +###  I noted that the District delayed to submit wage estimates to MoPs, as required. The submission was made after 30th September 2020. This may lead to wage shortfalls/over provision + +due to lack of clarity and analysis of wage estimates by MoPS + +###  The District paid out a total of UGX.14,568,696 to 12 non- existent staff. These were not on the IPPS payroll register and + +also lacked the necessary documentation to support their existence + +###  A comparison of base pay in the IPPS payroll registers with the + +salary structure for 2020/21 revealed that seventeen (17) staff were paid using wrong salary scales, leading to under payment of UGX.189,881 + +###  I noted that UGX.9,922,552 was paid to five (5) staff who had + +either retired, transferred, absconded or died + +- I noted that whereas UGX.5,426,888,768 was deducted from + + + +## employees’ salaries to be remitted to different beneficiaries, + +UGX.4,951,234,873 was remitted, leading to an under remittance of UGX.475,653,895 + +##  I noted that the District did not subject political leaders’ gratuity + +### totalling to UGX.42,781,000 to the computation of PAYE in IPPS, + +leading to an under deduction of UGX.12,900,150 + +###  I noted that one retiree who was last paid in October, 2020 had + +not yet accessed the pension payroll by the time of audit + +###  I noted that UGX.12,152,847 was diverted to Bangirana Josaphat M employee no 524376) as residual pension arrears from April 2015 to October 2019. However, these had not been verified and therefore not part of schedule provided by MoFPED + +###  I noted that 05 employees were paid a total of UGX.9,087,270 + +without signed pay change reports + +###  I noted that the District did not prepare monthly wage, pension + +and gratuity performance analysis and thus did not submit quarterly returns on payroll to MoPS + +###  I noted that twelve (12) staff and 02 pensioners were paid a + +total of UGX.32,785,938 off the IPPS + + + +- I observed that there were variances of UGX.12,355,491 + +### between the figures in the MoPS IPPS and entity payroll registers + +###  I reviewed the approved Local revenue estimates for the financial year 2020/2021 and noted that the District budgeted to collect + +UGX.1,029,300,000 during the year but collected UGX. 778,835,482 representing (83%) performance + + + +- The entity budgeted to receive UGX.39,034,900,000 as transfers + +425 + +--- + +from other Government Units. However, only UGX.16,417,071,378 (42%) was received + +###  The District budgeted to receive UGX.3,112,206,100 as + +external/donor financing out of which UGX.1,226,592,425 + +### (39.4%) + +###  Out of the total receipts for the financial year of + +(UGX.61,860,404,265 – 1,313,798,884), UGX.61,310,829,945 (89%) was spent by the entity resulting in an unspent balance of UGX.764,224,564 (08%). + +###  I assessed the implementation of thirty two (32) outputs that + +were fully quantified with a total of thirty two (32) activities worth UGX.3.505 Bn and noted the following + +###  Thirty (30) outputs with a total of thirty (30) activities worth + +UGX.2.771 Bn were fully implemented. + +###  Two (02) outputs with a total of two (02) activities worth UGX.0.734 Bn were partially implemented by the time of audit + +###  I noted that the entity did not prepare and submit the annual monitoring plans to MoFPED, MoLG and NPA as required. + +###  The entity had not also submitted quarterly monitoring reports to + +the Office of the Prime Minister and Moped as required by the + +### time of audit 10th of September 2021 I noted that Management submitted performance reports for Q1, Q2, Q3 and 4 after the + +deadline given for submission of the reports + +###  I audited the Construction of Ruborogota seed school under UgIFT and I observed that no liquidated damages were charged + +to the contractor by management as stipulated in terms and + +### conditions of the agreement. I further noted that overall physical + +progress was at 75.2% and the financial progress was at 68% as + +### per monthly progress report of July 2021 implying + +UGX.667,629,755 were lying idle on the account + +###  I noted that taxes amounting to UGX.3,344,640 were never paid + +to URA as summarised in the table I inspected various prices of + +### land owned by the District and noted that most of it lacked land + +titles and three pieces of land (6.6 acres) had been encroached on by private developers + +###  I noted that most of the District land did not have certificates of + +title + +###  I noted that as per quarter 2nd 2020/2021 Youth Livelihood Programme Performance Report by the focal person to the + +Accounting Officer, dated 30st December 2020, that + +### UGX.1,599,889,519 had been disbursed to various youth groups in the district but UGX.331,883,100 had been recovered leaving + +UGX.1,367,353,783 unrecovered + +426 + +--- + +5. BUHWEJU DLG + + + +### Opinion Unqualified + +###  I noted that the wage and pension pay roll of UGX.9,342,366,801 + +## constituted 54% of the District’s budget for 2020/2021 of + +### UGX.17,438,067,437. + +###  I noted that the District did not to submit wage estimates to + +MoPs, as required + +###  I reviewed payroll funds absorption and noted that UGX.9.34 billion (107%) was spent out of the total receipts of UGX.8.57 billion, resulting in an excess expenditure of UGX.0.64 billion + +- I noted a salary over payment of UGX.278,550,496 +- I noted a salary under payment of UGX.36,127,180 + + + +###  I was not availed with the pension payroll data and I was unable to compare pension and gratuity payroll amount with IFMS + +payments of UGX.608,581,426 and UGX.302,628,319 for gratuity and pension respectively + +###  I noted that 116 staff were paid salary using wrong salary scales, + +leading to over payments of UGX.72,081,318 + +###  I was not availed with information on staff departures and I + +could not ascertain the duration of the delayed deletions + +- I noted that UGX.756,742,653 was deducted from employees’ + + + +### salaries to be remitted to Uganda Consumer Lenders' + +### Association/Uganda Bankers' Association, and UGX.756,916,127 was remitted, leading to an over remittance of UGX.173,474 + +###  I noted that the District made payroll deductions of UGX.756,742,653, but did not remit concurrently with the salary payments in all the 6 months. On average, it delayed by 41 days + +###  I noted delays in the remittance of PAYE deductions to URA + +ranging from 2 – 46 days + +###  I was not availed with lists of new staff and leavers, I could + +therefore not establish the timing of accessibility to the payroll by the new staff. + +###  I noted that salary entries amounting to UGX.184,483,367 to + +several employees were not supported by signed pay change reports + +###  I noted that the District did not prepare monthly wage, pension + +and gratuity performance analysis and did not submit quarterly returns on payroll to MoPS + +###  I noted that 102 staff were paid a total of UGX.499,116,733 off + +the IPPS + +###  I noted that the verification form and copies of the verification + +card for employees and pensioners/beneficiaries on their files were not availed for audit review + +###  I reviewed the effectiveness and reliability of the IPPS/NID + +## staff/pensioner/beneficiaries’ verification interface and noted the + +following; + +427 + +--- + +||  In-adequate sensitization and training in the use and navigation of the system  System was not reliable and effective  Operational challenges were encountered;  E.g. Un-reliable network in Buhweju where HR staff had to physically travel to the neighbouring Districts to be able to download documents such as pension payroll registers.  Inadequate staffing of the HR department  I noted that the district budgeted to collect UGX.155,201,000 during the year but collected UGX.136,282,651 representing (88%) performance. The shortfalls in Local Revenue collections of UGX. 18,918,349 (12%) were recorded in Local Service Tax, Land Fees and Application Fees  I noted that entity budgeted to receive UGX.758,657,000 as transfers from other Government Units. However, only UGX.537,760,298 (70.9%) was received  I assessed the implementation of seven (7) outputs that were fully quantified with a total of seven (7) activities worth UGX 1.6 Bn and noted the following.  Five (05) outputs with a total of five (05) activities worth UGX.1.03Bn were fully implemented. The entity implemented all the five (05) activities (100%) within these outputs.  Two (02) outputs with a total of two (02) activities worth UGX.0.5 Bn were partially implemented.  I noted that the district had commenced implementation of two (2) UgIFT projects namely; Upgrading of Engaju HC II to HC III and Upgrade of Rushambya HC II to HC III and noted the following;  Upgrading of Rushambya Health Centre II to Health Centre III; The medical facility had been completed but lacked medical equipment to enable functionality and service delivery  Upgrade of Engaju HC II to HC III; The project stalled but medical equipment had been procured and an advance payment of UGX. 211,119,458 was made during the year | +|---|---| +| 06. | BUSHENYI DLG Opinion Unqualified |  I noted that the wage and Pension Pay roll of UGX.21,998,865,997 constituted 54% of the District’s budget for 2020/2021 of UGX.40,645,826,438.  I reviewed payroll funds absorption and noted that UGX.20.697 billion (94%) was spent out of the total receipts of UGX.21.999 billion, resulting in an unabsorbed balance of UGX.1.302billion  I noted a salary over payment of Ms Twehandikise Miria of UGX.508,439 instead of paying UGX.5,974,218, UGX.6,482,657 was paid  I noted pension and gratuity underpayment of UGX.984,681,443 | + + +428 + +--- + +- I noted that whereas UGX.1,504,757,075 was deducted from + + + +## employees’ salaries to be remitted to different beneficiaries, UGX.1,517,190,079 was remitted, leading to an over/ under + +remittance of UGX.12,433,004 and UGX.6,100,834 + +###  I noted that the District made payroll deductions but did not + +remit concurrently with the salary payments in 5 out of 7 + +### months. On average, it delayed by 7 days + +###  I noted that the district had outstanding salary arrears from + +## previous years’ worth UGX.34,719,743 that remained unpaid at + +the end of the financial year + +###  I carried out a survey to establish the effectiveness and reliability + +## of the IPPS/NID staff/pensioner/beneficiaries’ verification + +interface and noted the following; + + + +- Operational challenges were encountered; + +###  Mismatches of names that take long to be corrected by NIRA and + +affects ability to timely access people on payroll. + +- In some cases, the status under IPPS remain “NOT VERIFIED” + + + +### even when the record is verified and approved. This again + +### requires one to contact Ministry of Public service for an + +intervention. + +###  I noted at the time of audit (June 2020/2021) the strategic plan had not been approved by NPA for implementation + +- I noted that Bushenyi District budgeted to collect + + + +### UGX.630,746,210 in the year under review however the entity + +only collected UGX.393,072,939 representing 62% performance. + +- The entity budgeted to receive UGX.29,905,844,709 from the consolidated fund out of which UGX.28,011,829,956 was received representing causing a shortfall of UGX.1,894,014,753 representing 94% performance + + + + + +- The entity budgeted to receive UGX.9,669,035,803 as transfers + +### from other Government Units out of which UGX.1,522,149,995 + +were received representing 16% performance leading to a shortfall of UGX. 8,146,885,809 (84%) + +###  The entity budgeted to receive UGX.440,199,716 as + +external/donor financing out of which UGX.86,160,000 was received representing 6% performance + +###  I assessed the implementation of Twenty two (22) outputs that were fully quantified with a total of Twenty two (22) activities worth UGX 3.13 Bn and noted the following; + +###  Fifteen (15) outputs with a total of fifteen (15) activities worth + +UGX.2.38 Bn were fully implemented. + +###  Five(05) outputs with a total of Five(05) activities worth UGX 0.70 Bn were partially implemented by the time of audit. + +###  Two (02) outputs with a total of two(02) activities worth UGX 0.05 Bn were not implemented by the time of audit. + +429 + +--- + +||  I noted that the entity submitted performance reports for Q1, Q2, Q3, Q4 after the deadline given for submission  A total of 261.4km at an estimated cost of UGX.94,152,000 was planned to be undertaken, I noted that UGX.75,588,000 was received and all used for maintaining 209.9 Km implying a shortfall of UGX.18,564,000 which affected implementation of 51.5Km of roads | +|---|---| +| 07. | IBANDA DLG Opinion Unqualified |  I noted the wage and Pension Pay roll of UGX.13,873,913,709 constituted 56% of the District’s budget for 2020/2021 of UGX.24,675,034,751  I reviewed payroll funds absorption and noted that UGX.11.6 billion (90.6%) was spent out of the total receipts of UGX.12.8 billion, resulting in an unabsorbed balance of UGX.1.1 billion.  I noted that the District made payroll deductions but did not remit it concurrently with the salary payments in 6 months. The delays ranged from 5 to 28 days  I noted that 191 newly recruited/transferred employees delayed to access payroll, with delays ranging between 1-9 months  I noted that only eight (8) pensioners delayed to access the pension payroll, with delays ranging between 2-7 months  I noted that the District did not prepare monthly wage, pension and gratuity performance analysis and thus did not submit quarterly returns on payroll to MoPS  I noted that although the entity had prepared a strategic plan that at the time of audit, it had not yet been approved as aligned to the NDP-III  I noted that the entity budgeted to receive UGX.22.11Bn as grants from the Treasury. However, only UGX.19.45Bn was received representing 88% performance leading to budget shortfall of UGX.2.66 Bn (12%).  I noted that the entity budgeted to receive UGX.1.48Bn as transfers from other Government Units. However, only UGX.1.22Bn was received representing 82.4% performance leading to revenue shortfall of UGX. 0.26Bn (17.6%).  I noted that the entity budgeted to receive UGX. 0.39Bn as external/donor financing out of which UGX.0.14Bn was received representing 36% performance leading to revenue shortfall of UGX.0.25Bn (63%).  The entity did not prepare and submit the annual monitoring plans to MoFPED, MoLG and NPA as required.  The entity also did not submit quarterly monitoring reports to the Office of the Prime Minister and MoFPED as required | +| 08. | KABALE DLG Opinion Unqualified |  I noted that the wage and Pension Pay roll of UGX.23,557,107,073 constituted 49.6% of the District’s budget for 2020/2021 of UGX.47,484,993,193, | + + +430 + +--- + +###  I noted that UGX.52,165,651 was paid to 30 staff who had either + +retired, transferred, absconded or died + +###  I noted that the District made unauthorised loan deductions totalling to UGX.107 million. The deductions were from 30 employees that did not have letters of undertaking. Of the 30 + +employees, 26 employees did not exist in the “active deduction” while 04 employees did not exist in the “my approval” reports on the PDMS-Payroll Deduction Management System, operated by PCA-Payroll Consults Africa + +###  I noted that the District made payroll deductions of UGX.4.8 Bn, + +but did not remit concurrently with the salary payments in 5 out + +### of 12 months. On average, it delayed by 21 days + +###  I noted delays in the remittance of PAYE deductions to URA + +ranging from 16 – 15 days + +###  I noted that the District did not subject political leaders’ gratuity totalling to UGX.36,127,200 to the computation of PAYE in IPPS, + +leading to an under deduction of UGX.9,608,560 + +###  I noted that 76 newly recruited/ transferred employees delayed + +to access payroll, with delays ranging between 1-2 months, while 50 new recruits did not access the payroll during the financial + +### year + +###  I noted that 36 pensioners delayed to access the pension payroll, + +with delays ranging between 1 - 3 months, whereas 16 pensioners did not access the payroll + +###  I noted that 03 staff and 26 pensioners were paid a total of UGX 81,673,064 off the IPPS + +###  I observed that there were variances of UGX.250 Million between the figures in the MoPS IPPS and entity payroll registers + +###  I noted that although the entity had prepared a strategic plan + +that at the time of audit, it had not yet been approved as aligned to the NDP-III + +###  I reviewed the approved Local revenue estimates for the financial year 2020/2021 and noted that the District budgeted to collect UGX.0.47Bn during the year but collected UGX.0.402 Bn + +representing (85%) performance. + +###  I noted that the District budgeted to receive UGX.37.08 Bn (revised) as grants from the Treasury but UGX.33.54 Bn was + +warranted/ received representing 91% performance. + +###  I noted that the Entity budgeted to receive UGX.9.06 Bn as transfers from other Government Units. However, only UGX.1.45 + +Bn (16%) was received + +###  I noted that the District budgeted to receive UGX.0.86 Bn as external/donor financing out of which UGX.0.11 Bn (12%), was + +received + +###  I noted that Out of the total receipts for the financial year of UGX.35.51 Bn, UGX.34.88 Bn (98.2%) was spent by the entity + +431 + +--- + +|| resulting in an unspent balance of UGX.0.63 Bn (0.8%).  I noted that Management submitted performance reports for Q1, Q2, Q3 and Q4 after the deadline given for submission of the reports | +|---|---| +| 09. | KANUNGU DLG Opinion Unqualified |  I noted that the wage and Pension Pay roll of UGX.28,863,148,598 constituted 66% of the District’s budget for 2020/2021 of UGX.43.7 Bn  I noted that the District delayed to submit wage estimates to MoPs, as required  I reviewed Payroll funds absorption and noted that UGX.27 billion (95%) was spent out of the total receipts of UGX.28 billion, resulting in an unabsorbed balance of UGX.1 billion  I noted under payment of salary amounting to UGX 84,270,346  I noted that 116 staff were paid using wrong salary scales, leading to over payments of UGX.33,520,148,  I noted that UGX.13,922,650 was paid to 11 staff who had either retired, transferred, absconded or died  I noted that the District made payroll deductions of UGX.6,465,198,289, but did not remit concurrently with the salary payments in 11 out of 12 months. On average, it delayed by 11 days  I noted delays in the remittance of PAYE deductions to URA for 2 months  I noted that the District did not subject political leaders’ gratuity totalling to UGX.58,306,246 to the computation of PAYE in IPPS, leading to an under deduction of UGX.17,588,374  I noted that 11 newly recruited/ transferred employees delayed to access payroll, with delays ranging between 1-6 months  I noted that the District did not prepare monthly wage, pension and gratuity performance analysis and thus did not submit quarterly returns on payroll to MoPS  I noted that 11 staff were paid a total of UGX.6,647,285 off the IPPS  I carried out a survey to establish the effectiveness and reliability of the IPPS/NID staff/pensioner/beneficiaries’ verification interface and noted the following;  In-adequate sensitization and training in the use and navigation of the IPPS. As a result, the HR team was unable to obtain pension payrolls for the financial year under review and the interface files for both salary and pension for the month of October 2020.  Lack/inadequate verification and ineffectiveness of the system may affect the integrity of the IPPS payroll  I noted that the District budgeted to collect UGX. 969,000,605 | + + +432 + +--- + +|| during the year but collected UGX.349,340,889 representing (36%) performance  I noted that the Entity budgeted to receive UGX.2,914,268,788 as transfers from other Government Units. However, only UGX.1,346,142,527 (46%)  I noted that the District budgeted to receive UGX.958,677,000 as external/donor financing out of which UGX.121,361,000(14%), was received  I noted that out of the total receipts for the financial year of UGX.37,438,548,600, UGX.36,912,545,231 (99%) was spent by the entity resulting in an unspent balance of UGX.526,003,369 (1%).  I noted that UGX.66,181,436 was charged on items which did not reflect the nature of the expenditure as shown in  I noted an irregular payment of VAT UGX 28,258,475 to contractors for the upgrade of Ntungamo HC II to HC III in Butogata Subcounty despite aid-funded projects being VAT exempt . The irregular payment was attributed to the irregular inclusion of the VAT amount in the contract price during the procurement process.  I noted that the District budgeted to receive UGX.931,475,272 from Uganda Road Fund for maintenance of 256.9 km of district roads, and UGX.900,073,304 (97%) was received and was utilised on maintenance of 242.5 km of roads, with a shortfall of UGX.31,401,970(3%) which left 14.4 km of roads not worked on. | +|---|---| +| 10. | KIRUHURA DLG Opinion Unqualified |  I noted that the wage and Pension Pay roll of UGX.12,779,567,829 constituted 50% of the District’s budget for 2020/2021 of UGX.25.49 Bn  I reviewed funds absorption and noted that UGX.11.6 billion (90.6%) was spent out of the total receipts of UGX.12.8 billion, resulting in an unabsorbed balance of UGX.1.1 billion  I noted salary underpayment of UGX.7,916,200  I noted salary overpayment of UGX.38,256,602  I noted that whereas UGX.2,397,995,367 was deducted from employees’ salaries to be remitted to different beneficiaries, UGX.2,396,361,743 was remitted, leading to an over remittance of UGX.378,730 and an under remittance of UGX.2,012,354  I noted that the District made loan deductions totalling UGX.71,827,411 from 14 employees that neither had letters of undertaking nor existed in the “active deduction” or the “my approval” reports on the Payroll Deduction Management System (PDMS) operated by Payroll Consults Africa (PCA).  Also noted that 08 employees were not in ‘’my approval report ’’ but were in “active deduction report”.  I further noted that loan deductions relating to 13 employees did | + + +433 + +--- + +not have evidence of consent by the employees + +###  I noted that the District made payroll deductions of UGX.919,811,264, but did not remit the deductions concurrently + +with the salary payments in 5 out of 9 months + +##  I noted that the District did not subject political leaders’ gratuity + +### totalling to UGX 30,692,400 to the computation of PAYE in IPPS, + +leading to an under deduction of UGX.8,941,216 + +###  I noted that 38 newly recruited/transferred employees delayed to + +access the payroll, with delays ranging between 1-2 months + +###  I noted that only five(5) out a sample of 52 pensioners delayed + +to access the pension payroll, with delays ranging up to a month + +###  I noted that 15 staff were paid a total of UGX 12,719,746 + +respectively off the IPPS + +###  I noted that although the entity had prepared a strategic plan + +that at the time of audit, it had not yet been approved as aligned to the NDP-III + +###  I noted that Kiruhura District budgeted to collect UGX.1.19Bn during the year under review. The entity collected UGX.0.43Bn + +representing 36.16% performance + +###  I noted that the entity budgeted to receive UGX.2.78 Bn as + +transfers from other Government Units. However, only UGX.1.53Bn was received representing 55.14% performance + +###  I noted that the entity budgeted to receive UGX.0.85Bn as external/donor financing out of which UGX.0.065Bn was received + +representing 7.75% performance + +###  I noted that Out of the total warrants for the financial year of UGX.22.39 Bn, UGX.20.25Bn was utilized and spent by the entity resulting in an unspent balance of UGX.2.14 Bn representing an + +absorption level of 90%. + +###  I assessed the implementation of eight (8) outputs that were + +fully quantified with a total of twenty-one (21) activities worth UGX.2.96Bn and noted the following. + + + +- Three (3) outputs with total expenditure amounting to + +### UGX.0.688Bn were fully implemented representing 37.5% of the + +outputs. + +###  Five (5) outputs with total expenditure amounting to UGX.2.27Bn + +were partially implemented representing 62.45% of the outputs + +###  I noted that the entity did not prepare and submit the annual monitoring plans to MoFPED, MoLG and NPA as required. + +###  I noted that the entity also did not submit quarterly monitoring reports to the Office of the Prime Minister and MoFPED as + +required + +###  I noted that the entity submitted performance reports for Q1, + +Q2, Q3, Q4 after the deadline given for submission of the reports + +###  I noted variances in performance from my review of the Annual + +434 + +--- + +|| cumulative performance reports and physical inspections/verification of performance.  I reviewed the implementation of Uganda Road Fund and noted the following;  A total of UGX.726,279,445 was budgeted for however the District Council received UGX.1,148,526,601 (158%)  A total of 221.90 km at an estimated cost of UGX.31,213,190 was planned to be undertaken. However, audit revealed that no work was actually undertaken. Thus the entire 221.90 km were not maintained  A total of 6 km at an estimated cost of UGX.17,983,012 was planned to be undertaken. Audit revealed that 34.6 km was undertaken at a cost of UGX.187,493,520. I noted that the initial plan (budget) was not revised when additional funds were received. | +|---|---| +| 11. | KISORO DLG Opinion Unqualified |  I noted that the wage and Pension Pay roll of UGX.29,217,966,405 constituted 72% of the District’s budget for 2020/2021 of UGX.40.68 Bn  I noted that the District did not submit wage estimates to MoPs, as required.  I noted an over payment of Pension of UGX.5,223,859  I also noted that the District made payroll deductions of UGX2.595 billion, but did not remit concurrently with the salary payments in 6 out of 6 months sampled. On average, it delayed by 13.5 days  I noted delays in the remittance of PAYE deductions to URA ranging from 3 – 32 days  I noted that the District did not subject political leaders’ gratuity totalling to UGX.419,638,073 \` to the computation of PAYE in IPPS, leading to an under deduction of UGX.125,070,214  I noted that 7 pensioners delayed to access the pension payroll, with delays ranging between 1-4 months  I noted that the Districts prepared monthly wage, pension and gratuity performance analysis but did not submit quarterly returns on payroll to MoPS  I noted that 15 staff were paid a total of UGX.47,243,693 off the IPPS  I observed that there were variances of UGX.29,495,726 between the figures in the interface files and entity payroll registers  Some information on the NIRA interface is sometimes not visible/available for instance date of birth and the photo which delays the verification exercise  I noted that Kisoro DLG budgeted to collect UGX.461,618,300 during the year under review. The entity collected | + + +435 + +--- + +|| UGX.256,912,576 representing 55.7% performance.  I noted that the entity budgeted to receive UGX.1.10Bn as transfers from other Government Units out of which UGX.0.73Bn was received representing 66.2% performance  I noted thata the entity budgeted to receive 1.5Bn from external assistance but received 0.11Bn representing 7.6%.  I assessed the implementation of fifteen (15) outputs that were fully quantified with a total of fifteen (15) activities worth UGX.3.81Bn and noted the following;  Thirteen (13) outputs with Thirteen (13) activities worth UGX.3.808 Bn were fully implemented representing 58.6% of the outputs.  Two (2) outputs with two activities(2) worth UGX.0.54 Bn were not implemented representing 3.6% of the outputs(included in the schedule at UGX.0 because no funds were spent)  I noted that the entity submitted performance reports for Q1, Q2, Q3 and Q4 after the deadline given for submission of the reports  I noted the delayed completion of Nyakinama Seed School (UGIFT project) worth 2,331,850,894  I noted that the District budgeted and received funds worth UGX.344,284,000 under UGIFT program for the construction of Mwumba Progressive SS. However, this project did not take off due to delays in the procurement process and at the time of audit in August, 2021, the project had not started with a delay of 12 months. | +|---|---| +| 12. | MBARARA CITY Opinion Unqualified |  I noted that the wage and Pension Payroll of UGX.17,869,060,735 constituted 39.4% of the Municipal Council’s budget for 2020/2021 of UGX.45,355,732,366.  I reviewed payroll funds absorption and noted that UGX.17.2 billion (96.25%) was spent out of the total receipts of UGX.17.9 billion, resulting in an unabsorbed balance of UGX.0.70 billion  I noted salary underpayment of UGX.3,201,482  I noted that UGX 18,896,920 was paid to 2 staff who had died  I noted that whereas UGX.3,348,734,358 was deducted from employees’ salaries to be remitted to different beneficiaries, UGX.3,346,988,823 was remitted leading to an over remittance of UGX.7,068,846 and under remittance of UGX.8,814,381  I also noted that the Municipal Council made payroll deductions of UGX.790,748,220, but did not remit concurrently with the salary payments in 12 out 12 months. On average, it delayed by 23 days  I also noted delays in the remittance of PAYE deductions to URA ranging from 2 – 34 days  I noted that 14 newly recruited/ transferred employees delayed | + + +436 + +--- + +to access payroll, with delays ranging between 1-2 months + +###  I noted that 22 pensioners delayed to access the pension payroll, + +with delays ranging between 1 to 10 months + +###  I noted that the Municipal Council did not prepare monthly wage, + +pension and gratuity performance analysis and thus did not submit quarterly returns on payroll to MoPS + +###  I observed that there were variances of UGX.7,662,578 between + +the MoPS IPPS and Entity payroll registers + +###  The merger of both IPPS and NIRA system have not been fully + +done in that when there is a system error each entity has to clear an error in its jurisdiction thus time consuming and affecting timely service delivery. + +###  The system has not been fully decentralized to the extent that system errors under Employee verification system (issues) with NIRA have to be handled at the Headquarter and this contributes + +to multiple negative factors such delayed clearance of technical issues at least a period of three month or more. + +###  I noted that although the entity had prepared a strategic plan, at + +the time of audit, it had not yet been approved as aligned to the + +### NDP-III. + +###  I noted that the entity collected local revenue of UGX.3.54Bn of + +6.42Bn representing 55.25% performance + +###  I noted that the entity budgeted to receive UGX.37.49Bn as grants from the Treasury. However, UGX.31.59 Bn was received, + +representing 84.26% performance + +###  I noted that the entity budgeted to receive UGX.1.45Bn as + +transfers from other Government Units. However, UGX.7.65Bn was received representing 527.59% performance + +###  I noted that out of the total receipts for the financial year of UGX.42.84Bn, UGX 36.68Bn was spent by the entity resulting in an unspent balance of UGX 6.15 Bn representing an absorption + +level of 85.6%. + +###  I noted that the management submitted performance reports for Q1, Q2, Q3, Q4 after the deadline given for submission + +###  I noted that the contract for the upgrade of Kyarwabuganda HCII to HCIII worth UGX.540,531,906 was completed fourteen (14) + +months after the expected/ contracted end date + +###  I also noted that another contract of UGX.279,324,596 was awarded to M/s Twinka Enterprises (U) Ltd to construct three units of Doctors houses with planned commencement date of 26/12/2019, and completion date by 26/06/2020. A review of the + +progress report revealed that planned works were completed on 22/08/2020, eleven (11) months outside the contract period without approval. + +437 + +--- + +| 13. | MITOOMA DLG Opinion Unqualified |  I noted that the wage and Pension Pay roll of UGX.18,505,405,927 constituted 63% of the District’s budget for 2020/2021 of UGX.29,350,754,495.  I noted that the District did not to submit wage estimates to MoPS, as required  I noted delays in the remittance of PAYE deductions to URA of up to 100 days  I noted that 47 newly recruited/transferred employees delayed to access payroll, with delays ranging between 2-14 months  I noted that 7 pensioners delayed to access the pension payroll, with delays ranging between 1-14 months  I noted that the District did not prepare monthly wage, pension and gratuity performance analysis and thus did not submit quarterly returns on payroll to MoPS  I noted that 6 pensioners were paid a total of UGX.26,607,195 off the IPPS  I observed that there were variances of UGX.514,103,048 between the figures in the MoPS IPPS and entity payroll registers,  Operational challenges were encountered; E.g. Un-reliable network in Mitooma where HR staff had to physically travel to the neighbouring Bushenyi District to be able to download documents such as pension payroll registers.  I noted that the upgrade of Mayanga HC II to HC III contracted to Khalsa (U) Ltd was still under construction and only at roofing stage by the time of audit inspection on 13th October, 2021. However, the medical equipment had already been procured and delivered under a separate contract to M/s Rodrisa Supplies Limited who was expected to supply, deliver, instal, train and commission the medical equipment. Procurement of medical equipment for a health facility still at foundation stage may lead to obsolescence, pilferage and physical damage leading to nugatory expenditure. | +|---|---|---| +| 14. | NTUNGAMO DLG Opinion Unqualified |  I noted that the wage and Pension Pay roll of UGX.35,484,605,345 constituted 56% of the District’s budget for 2020/2021 of UGX.63,733,887,733.  I reviewed payroll funds absorption and noted that UGX.34,743,195,467 (98%) was spent out of the total receipts of UGX.35,484,605,345, resulting in unabsorbed balance of UGX.741,409,878  I noted that the District made payroll deductions but did not remit concurrently with the salary payments in 8 out of 8 months. On average, it delayed by 12 days  I noted that all remittances of PAYE deductions were paid to URA ranged from 9 - 13 days | + + +438 + +--- + +||  I noted that the District did not subject political leaders’ gratuity totalling to UGX.60,526,800 to the computation of PAYE in IPPS, leading to an under deduction of UGX.14,374,090  I noted that the entity did not prepare monthly wage, pension and gratuity performance analysis, and did not submit quarterly returns on payroll to MoPS  I noted that 29 staff were paid a total of UGX.91,713,882 off the IPPS  I carried out a survey to establish the effectiveness and reliability of the IPPS/NID staff/pensioner/beneficiaries’ verification interface and noted the following;  I noted that the entity had no approved a strategic plan at the time of audit  I noted that the District budgeted to collect UGX.1,554,984,179 during the year but collected UGX.1,127,109,918 representing (72%) performance  I noted that the entity budgeted to receive UGX.8,698,586,134 as transfers from other Government Units out of which UGX.1,307,013,923 was received representing 15% performance leading to a shortfall of UGX.7,391,572,211(85%)  I noted that the entity budgeted to receive UGX.1,901,504,814 as external/donor financing out of which UGX.267,332,705 was received representing 14% performance  Out of the total receipts for the financial year of UGX. 53.52, UGX. 51.85 (97%) was spent by the entity resulting in an unspent balance of UGX. 1.67 (3%).  I carried out an audit inspection of the Construction of Kihanga seed Secondary school (UGX.718,168,225) in September 2021, and noted that the project had been abandoned and behind schedule by 20 months  I noted that most of the District land did not have certificates of land titles | +|---|---| +| 15. | RUKIGA DLG Opinion Unqualified |  I noted that the wage and Pension Pay roll of UGX.15,291,042,432 constituted 50.4% of the District’s budget for 2020/2021 of UGX.30,313,124,744  I noted that the District did not submit wage estimates to MoPS, as required  I reviewed payroll funds absorption and noted that UGX.13.167 billion (86%) was spent out of the total receipts of UGX.15.29 billion, resulting in an unabsorbed balance of UGX 2.12 billion  I noted that whereas UGX.909,840,551 was deducted from employees’ salaries to be remitted to different beneficiaries, UGX.909,338,143 was remitted, leading to an over/under remittance of UGX.153,842 and UGX.656,250 respectively  I noted that the District made payroll deductions of UGX 0.844 | + + +439 + +--- + +|| billion, but did not remit concurrently with the salary payments in 11 out of 12 months. On average, it delayed by 6.5 days  I noted that the District did not subject political leaders’ gratuity totalling to UGX.34,918,061 to the computation of PAYE in IPPS, leading to an under deduction of UGX.10,880,299  I noted that 6 newly recruited/transferred employees delayed to access payroll, with delays ranging between 1- 3.5 months  I noted that the District did not prepare monthly wage, pension and gratuity performance analysis nor submitted quarterly returns on payroll to MoPS  I noted that UGX.24,681,002 was paid to 16 staffs that were off the IPPS payroll register  I observed that there were variances of UGX30,377,765 between the figures in the interface files and entity payroll registers  I noted that the entity prepared a strategic plan but was not yet approved.  I noted that Rukiga DLG budgeted to collect UGX. 285,061,188 during the year under review. The entity collected UGX.155,082,884 representing 54% performance.  I noted that the entity budgeted to receive UGX.8.77Bn as transfers from other Government Units out of which UGX.0.68Bn was received representing 11% performance  I noted that the entity budgeted to receive 1.02Bn from external assistance but received 0.05Bn representing 5%.  I noted that out of UGX.21,252,068,152 warrants to finance the council’s budget, only UGX.18,677,785,569 (88%) was spent leaving a balance of UGX.2,574,282,583 (14%) un utilized  I noted that the entity did not also submit quarterly monitoring reports to the Office of the Prime Minister and MoFPED as required.  I noted that the entity submitted performance reports for Q3, and Q4 after the deadline given for submission of the reports  I noted that the District Council budgeted to receive UGX.467,373,000 (Excluding funds to be transferred to LLGs) from Uganda Road Fund for maintenance of 80.9kms of District roads, and UGX.252,363,000 (54%%) was received and was utilised on maintenance of 74.7kms of roads, installation of culverts, equipment repairs and supervision with a shortfall of UGX.215,010,000 (46%) As a result of revenue shortage, 6.2KMs of roads were not maintained under periodic maintenance as planned | +|---|---| +| 16. | RUKUNGIRI DLG Opinion Unqualified |  I noted that the wage and Pension Pay roll of UGX.30,042,268,241 constituted 66.8% of the District’s budget for 2020/2021 of UGX.44.95 Bn.  I noted that the District did not submit wage estimates to MoPS, | + + +440 + +--- + +as required + +###  I noted that two Education Officers (Twinomuhwezi Julius IPPS no.328279 and Abaho Besigye Gerald IPPS no. 326667) under U4 who were erroneously captured as Assistant Education Officers and paid under U5 thus an over payment of UGX 304,295 + +###  I noted that UGX.28,077,304 was paid to 19 staff who had either + +retired, transferred, absconded or died + + + +- I noted that whereas UGX.6,307,960,826 was deducted from + +## employees’ salaries to be remitted to different beneficiaries, UGX + +6,304,814,535 was remitted, leading to an over/ under remittance of UGX.5,128,867 and UGX.8,275,158 respectively + +###  I noted that the District made payroll deductions of UGX.2.259 + +billion, but did not remit concurrently with the salary payments in 10 out of 12 months. On average, it delayed by 6.5 days + +###  I noted delays in the remittance of PAYE deductions to URA + +ranging from 2 – 22 days + +##  I noted that the District did not subject political leaders’ gratuity + +### totalling to UGX.11,718,959 to the computation of PAYE in IPPS, + +leading to an under deduction of UGX.3,715,200 + +###  I noted that 7 newly recruited/ transferred employees delayed to + +access payroll, with delays ranging between 1-5 months + +###  I noted that 1 pensioner delayed to access the pension payroll, + +with delays of over of 6 months + +###  I noted that the Districts prepared monthly wage, pension and + +gratuity performance analysis but did not submit quarterly returns on payroll to MoPS + +###  I observed that there were variances of UGX 190,771,973 + +between the figures in the interface files and entity payroll registers + +###  I noted that the entity had not approved a strategic plan that is aligned to the NDP-III at the time of audit + + + +- I noted Rukungiri DLG budgeted to collect UGX.776,944,000 + +### during the year under review. However the entity collected + +UGX.625,618,740 representing 81% performance. + +###  I noted that the entity budgeted to receive UGX.1,411,248,710 as transfers from other Government Units out of which + +UGX.888,876,678 was received representing 63% performance + +###  I noted that the entity budgeted to receive 1.05Bn from external + +assistance but received 0.116 Bn representing 11%. + +###  I noted that out of UGX.42,031,304,808 warrants to finance the + +## council’s budget, only UGX.40,435,316,368 (96%) was spent + +### leaving a balance of UGX.1,595,988,440 (4%) un utilized + +###  I noted that the entity submitted performance reports for Q2, + +Q3, and Q4 after the deadline + +###  I noted the delayed completion of Kebisoni Seed School (UGIFT + +441 + +--- + +|| project). Project behind schedule by four(04) months  I noted that The District received UGX.499,963,986 (96.3%) of its Uganda Road fund and as a result was not able to maintain 14.2 Km of roads as planned | +|---|---| +| 17. | RWAMPARA DLG Opinion Unqualified |  I noted that the wage and Pension Pay roll of UGX.12,530,332,963 constituted 62% of the District’s budget for 2020/2021 of UGX.20,291,699,406.  I noted that the District did not to submit wage estimates to MoPS, as required  I noted salary overpayment of UGX 6,766,726  I further noted that there was an under payment of UGX.30,357,501  I noted pension and gratuity overpayment of UGX 2,144,892  I noted that UGX.4,580,492 was paid to 4 staff who had either retired or died  I noted that whereas UGX.2,342,683,197 was deducted from employees’ salaries to be remitted to different beneficiaries, UGX.2,336,599,219 was remitted, leading to an over remittance of UGX.1,549,064 and under remittance of UGX.7,633,042  I noted that the District made unauthorized loan deductions totalling UGX.48 million. The deductions were from 28 employees that had no letters of undertaking however existed in the “active deduction” and the “my approval” reports on the PDMS-Payroll Deduction Management System, operated by PCA-Payroll Consults Africa  I noted that deductions to UCLA/UBA were not remitted concurrently with salary payments for 12 out 12 months. I also noted that there was an average delay to remit deductions to UCLA/UBA of 21.3 days  I noted delays in the remittance of PAYE deductions to URA for 2 months. I also noted that there was an average delay to remit deductions to URA of 0.5 days  I noted that the District did not subject political leaders’ gratuity totalling to UGX.3,114,720 to the computation of PAYE in IPPS, leading to an under deduction of UGX.934,416  I noted that 51 newly recruited/ transferred employees delayed to access payroll, with delays ranging between 9 weeks  I noted that 15 pensioners delayed to access the pension payroll, with delays ranging between 3-4 months  noted that the District did not prepare monthly wage, pension and gratuity performance analysis and thus did not submit quarterly returns on payroll to MoPS,  I noted that although the district had prepared a strategic plan that at the time of audit, it had not yet been approved as aligned | + + +442 + +--- + +|| to the NDP-III  I noted that Rwampara District budgeted to collect UGX.0.392bn during the year under review. The entity collected UGX.0.379bn representing 96.68% performance.  I noted that the entity budgeted to receive UGX.1.51 Bn as transfers from other Government Units. However, only UGX.0.68 Bn was received representing 45% performance leading to revenue shortfall of UGX. 0.83Bn (55%). | +|---|---| +| 18. | SHEEMA DLG Opinion Unqualified |  I noted that the wage and Pension Pay roll of UGX.18,356,082,529 constituted 65% of the District’s budget for 2020/2021 of UGX.27,950,550,703  I reviewed payroll funds absorption and noted that UGX.17.61 billion (95%) was spent out of the total receipts of UGX.18.52 billion, resulting in an unabsorbed balance of UGX.0.91 billion.  I noted that whereas UGX.3,758,132,718 was deducted from employees’ salaries to be remitted to different beneficiaries, UGX.3,749,366,009 was remitted, leading to an over/ under remittance of UGX.73,581,127 and UGX.82,347,836  I noted that the District made unauthorized loan deductions to 663 employees totalling UGX.1,146,130,412. The deductions neither had letters of undertaking nor existed in the “active deduction” or the “my approval” reports on the PDMS-Payroll Deduction Management System.  I noted that 3 pensioners delayed to access the pension payroll, with delays ranging between 12-22 months  I noted that UGX.5,912,486 was charged on account codes other than those prescribed for salary, pension and gratuity  I noted that the District did not prepare monthly wage, pension and gratuity performance analysis and thus did not submit quarterly returns on payroll to MoPS,  I noted that 272 staff were paid a total of UGX. 309, 147,845 off IPPS  Mismatches of names that take long to be corrected by NIRA and affects ability to timely access people on payroll.  In some cases, the statuses under IPPS remain “NOT VERIFIED” even when the record is verified and approved. This again requires one to contact Ministry of Public service for an intervention.  It was noted that at the time of audit (June 2020/21) out of 5 strategic targets, Sheema district fully attained 1 target, and partially completed 4  I noted that the District budgeted to collect UGX.0.587million during the year under review. The entity collected UGX.0.351million representing 60% performances  I noted that he entity budgeted to receive UGX.960,458,000 as | + + +443 + +--- + +### transfers from other Government Units out of which + +UGX.892,442,495 was received representing 93% performance. + +###  I noted that the district budgeted to receive UGX.279,500,000 as + +external/donor financing out of which UGX.130,287,709 million was received representing 47% performance + +###  I noted that out of the total receipts for the financial year of UGX.26.95Bn,) UGX.25,32Bn was spent by the entity resulting in an unspent balance of UGX.1.63 Bn representing an absorption + +level of 94%. + +###  I noted that the entity submitted performance reports for Q1, + +Q2, Q3, Q4 after the deadline given for submission of the reports + +444 + +--- + +ANNEXURE III: REPORTS AND CONSOLIDATED GOVERNMENT OF UGANDA FINANCIAL STATEMENTS + +445 + +--- + +![](assets_AuditReports%5CConsolidated%20reports%5CAnnual%20Consolidated%20OAG%20audit%20reports%202021/img-458_0.png) + +--- + +![](assets_AuditReports%5CConsolidated%20reports%5CAnnual%20Consolidated%20OAG%20audit%20reports%202021/img-459_0.png) + +--- + +![](assets_AuditReports%5CConsolidated%20reports%5CAnnual%20Consolidated%20OAG%20audit%20reports%202021/img-460_0.png) + +--- + +![](assets_AuditReports%5CConsolidated%20reports%5CAnnual%20Consolidated%20OAG%20audit%20reports%202021/img-461_0.png) + +--- + +![](assets_AuditReports%5CConsolidated%20reports%5CAnnual%20Consolidated%20OAG%20audit%20reports%202021/img-462_0.png) + +--- + +![](assets_AuditReports%5CConsolidated%20reports%5CAnnual%20Consolidated%20OAG%20audit%20reports%202021/img-463_0.png) + +--- + +![](assets_AuditReports%5CConsolidated%20reports%5CAnnual%20Consolidated%20OAG%20audit%20reports%202021/img-464_0.png) + +--- + +![](assets_AuditReports%5CConsolidated%20reports%5CAnnual%20Consolidated%20OAG%20audit%20reports%202021/img-465_0.png) + +--- + +![](assets_AuditReports%5CConsolidated%20reports%5CAnnual%20Consolidated%20OAG%20audit%20reports%202021/img-466_0.png) + +--- + +![](assets_AuditReports%5CConsolidated%20reports%5CAnnual%20Consolidated%20OAG%20audit%20reports%202021/img-467_0.png) + +--- + +![](assets_AuditReports%5CConsolidated%20reports%5CAnnual%20Consolidated%20OAG%20audit%20reports%202021/img-468_0.png) + +--- + +![](assets_AuditReports%5CConsolidated%20reports%5CAnnual%20Consolidated%20OAG%20audit%20reports%202021/img-469_0.png) + +--- + +![](assets_AuditReports%5CConsolidated%20reports%5CAnnual%20Consolidated%20OAG%20audit%20reports%202021/img-470_0.png) + +--- + +![](assets_AuditReports%5CConsolidated%20reports%5CAnnual%20Consolidated%20OAG%20audit%20reports%202021/img-471_0.png) + +--- + +![](assets_AuditReports%5CConsolidated%20reports%5CAnnual%20Consolidated%20OAG%20audit%20reports%202021/img-472_0.png) + +--- + +![](assets_AuditReports%5CConsolidated%20reports%5CAnnual%20Consolidated%20OAG%20audit%20reports%202021/img-473_0.png) + +--- + +![](assets_AuditReports%5CConsolidated%20reports%5CAnnual%20Consolidated%20OAG%20audit%20reports%202021/img-474_0.png) + +--- + +![](assets_AuditReports%5CConsolidated%20reports%5CAnnual%20Consolidated%20OAG%20audit%20reports%202021/img-475_0.png) + +--- + +![](assets_AuditReports%5CConsolidated%20reports%5CAnnual%20Consolidated%20OAG%20audit%20reports%202021/img-476_0.png) + +--- + +![](assets_AuditReports%5CConsolidated%20reports%5CAnnual%20Consolidated%20OAG%20audit%20reports%202021/img-477_0.png) + +--- + +![](assets_AuditReports%5CConsolidated%20reports%5CAnnual%20Consolidated%20OAG%20audit%20reports%202021/img-478_0.png) + +--- + 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Consolidated OAG audit reports 2021/Annual Consolidated OAG audit reports 2021.txt @@ -0,0 +1,15053 @@ +THE REPUBLIC OF UGANDA + +REPORT OF THE AUDITOR GENERAL TO PARLIAMENT + +FOR THE FINANCIAL YEAR ENDED 30 TH JUNE 2021 + +OFFICE OF THE AUDITOR GENERAL UGANDA + +DECEMBER, 2021 + + + + + + + + + + + +ii + + + + + + + + + + + +TABLE OF CONTENTS + +LIST OF ACRONYMS - ix +GLOSSARY OF TERMS - xi +FOREWORD BY THE AUDITOR GENERAL - xii +PART 1: INTRODUCTION AND PURPOSE OF THE REPORT - 1 + 1.0 INTRODUCTION AND PURPOSE - 1 + 1.1 General Introduction - 1 + 1.2 Purpose - 1 + 1.3 Summary of Audit Results - 2 + 1.3.1 General Performance - 2 + 1.3.2 Summary of Opinions - 3 +PART 2: CONSOLIDATED FINANCIAL STATEMENTS - 4 +REPORT OF THE AUDITOR GENERAL ON THE CONSOLIDATED FINANCIAL STATEMENTS - 4 +2.0 +2.1 REPORT AND OPINION OF THE AUDITOR GENERAL ON THE GOVERNMENT OF UGANDA +CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 TH JUNE 2021 - 4 +Opinion… .………………………………………………………………………………………………………………………………… - 4 +Basis for Opinion - 4 +Key Audit Matter - 4 +Implementation of the approved budget - 4 +2.1.1. +COVID 19 expenditure - 11 +2.1.2. +Compensations/Acquisition of Right of Way for Selected Transmission Lines Projects - 14 +2.1.3. +Emphasis of Matter - 16 +Other Matter - 17 + 2.1.4 Tax policy - 17 +Audit of public debt - 19 +2.1.5. +Management of ICT in government - 25 +2.1.6. +Audit of public investments - 27 +2.1.7. +Continued expenditure off the IFMS – UGX 695,372,792,876 - 30 +2.1.8. +Other Information - 31 +Responsibilities of Management for the Consolidated Financial Statements - 31 +Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements - 32 +Other Reporting Responsibilities - 33 + +iii + + + + + + + + + + + +Report on the Audit of Compliance with Legislation ................................................................................33 + +2.1.9. + +Use of prior financial years unspent funds ..............................................................................33 + +2.2 REPORT AND OPINION OF THE AUDITOR GENERAL ON THE GOVERNMENT OF UGANDA CONSOLIDATED FINANCIAL STATEMENTS OF THE LOCAL GOVTS FOR THE YEAR ENDED 30 TH JUNE 2021 ...35 Opinion ……………………………………………………………………………………………………………………………………… 35 Basis for Opinion............................................................................................................................................35 + +Key Audit Matters ..........................................................................................................................................35 + +2.2.1. Payroll management in Local Governments..........................................................................................35 Other Matter..................................................................................................................................................40 2.2.2. Implementation of the approved budget .............................................................................................40 + +2.2.3. Operationalization of New Cities.......................................................................................................44 2.2.4. + +Capitation Grant for Printing of Home Study Materials .......................................................................44 + +2.2.5. Un-Accounted for Funds ..................................................................................................................45 2.2.6. Irregular payment of Salary and Salary arrears to staff in Apac DLG ..................................................45 2.2.7. Failure to submit Financial Statements for consolidation ....................................................................46 2.2.8. + +Implementation of UgIFT project activities .......................................................................................47 Other Information ..........................................................................................................................................49 Management Responsibilities for the Financial Statements................................................................................49 + +Auditor’s Responsibilities for the Audit of the Financial Statements....................................................................49 Other Reporting Responsibilities .....................................................................................................................51 + +Report on the Audit of Compliance with Legislation ..........................................................................................51 2.3 REPORT OF THE AUDITOR GENERAL ON THE CONSOLIDATED SUMMARY STATEMENT OF FINANCIAL PERFORMANCE OF PUBLIC CORPORATIONS AND STATE ENTERPRISES FOR THE YEAR ENDED 30 TH JUNE 2021 + +…………………………………………………………………………………………………………………………………..52 2.3.1. + +Review of the Consolidated Summary Statement of Financial Performance of Public Corporations and State Enterprises ........................................................................................................................ 52 + +2.4.1 + +Review of Financial Performance of Public Corporations and State Enterprises ............................... 54 + +PART 3: SECTORAL AND LOCAL GOVERNMENTS CROSS CUTTING FINDINGS ............................................60 + +3.1. + +PUBLIC SECTOR MANAGEMENT ........................................................................................... 60 + +3.1.1. + +Government readiness to implement the programmatic approach ................................................60 3.1.2. + +Limited efforts to build the capacity of planning units within Government ......................................61 + +3.2. SECURITY SECTOR ............................................................................................................62 + +3.2.1. + +Monitoring and Supervision of Government Programmes under Office of the President ....................62 + +3.3. AGRICULTURE SECTOR ......................................................................................................62 + +3.3.1. + +Mainstreaming of Agriculture Sector agencies ..........................................................................62 + +3.3.2. + +Over dependence on the Public Private Partnership in the Cotton sector .......................................63 3.3.3. + +Management of Foot and Mouth Disease (FMD) Outbreaks in the Country .....................................64 + +iv + + + + + + + + + + + +3.4. + +JUSTICE LAW AND ORDER SECTOR - 65 +Management of cases and Case backlog - 65 +3.4.1. +Operationalisation of the Joint Venture Agreement - 66 +3.4.2. +INFORMATION COMMUNICATION TECHNOLOGY SECTOR - 67 +3.5. +Absence of a National IT Governance/Oversight System - 67 +3.5.1. +Failure by MDAs to Pay for National Backbone Infrastructure Services - 67 +3.5.2. +Uncollected Revenue from Media Operators - 67 +3.5.3. +Lack of a Communications Tribunal - 68 +3.5.4. + 3.6 ACCOUNTABILITY SECTOR - 69 +Approval of supplementary funding without matching revenue - 69 +3.6.1. +Underperformance in Revenue Collection - 69 +3.6.2. +3.6.3. +Overstay of projects in the Public Investment Plan (PIP)-UGX.39.01Tn - 69 +Un recovered Advances; UGX.2,819,193,074 - 70 +3.6.5. +Absence of a monitoring and evaluation framework for impact assessment for tax exemptions - 70 +3.6.6. + 3.7 ENERGY SECTOR - 71 +Capitalization of Uganda National Oil Company and its Subsidiary Companies - 71 +3.7.1. +Implementation of the Electricity Connection Policy(ECP) - 71 +3.7.2. +Vandalism and Theft of UETCL Grid Assets - 72 +3.7.3. +Deemed Energy Purchases: UGX.87.7 Billion and Power Evacuation Losses UGX.15.29 Billion - 72 +3.7.4. +Delayed Commissioning of Karuma HPP - 73 +3.7.5. +3.7.6. +GENDER AND SOCIAL DEVELOPMENT SECTOR - 75 +Labour Externalization Inadequacies - 75 +3.8.1. +Implementation of the Uganda Women Entrepreneurship Programme - 76 +3.8.2. + 3.9 LAND SECTOR - 77 +Management of Government Land Matters - 77 +3.9.1. + 3.10 EDUCATION SECTOR - 77 + 3.10.1 Management of Bilateral Scholarships - 77 +Management of Research Grants by Public Universities in Uganda - 78 +3.10.2. +WATER & ENVIRONMENT SECTOR - 80 +3.11. +Afforestation and Restoration of Selected Central Forest Reserves (CFRS) by the (NFA) - 80 +3.11.1. + 3.12 WORKS SECTOR - 81 +Uganda National Roads Authority - 81 +3.12.1. +Ministry of Works and Transport - 82 +3.12.2. +v + +Performance of the collaborating institutions under the Tax Registration and Expansion Programme ..69 3.6.4. + +Bottlenecks in the Compensation of Project Affected Persons(PAPs) under Transmission Line Projects 74 3.8. + + + + + + + + + + + + 3.12.3 Uganda Railways Corporation - 83 +Uganda Civil Aviation Authority - 83 +3.12.4. + 3.13 HEALTH SECTOR - 85 + 3.13.1 Mulago National Referral Hospital - 85 + 3.13.2 National Drug Authority - 86 +SCIENCE, TECHNOLOGY AND INNOVATION SECTOR - 86 +3.14. +Closure of the Ministry of Science, Technology and Innovation - 86 +3.14.1. +Un-deployed Staff upon the abolition of the Ministry - 87 +3.14.2. +Progress on the COVID-19 Vaccine, Diagnostics and Treatment Projects - 87 +3.14.3. + 3.15 TRADE SECTOR - 88 + 3.16 TOURISM SECTOR - 89 +HIGHLIGHTS FROM THE AUDIT OF LOWER LOCAL GOVERNMENTS FOR THE PERIOD 2019/2020 - 90 +3.17. + 3.17.1 Under staffing - 90 +Budget implementation in sample LLGs for FY 2018/2019 and 2019/2020 - 91 +3.17.2. + 3.17.3 Quality of Financial Statements - 92 +Land Management in Local Governments - 92 +3.17.4. +Lack of Urban Physical Planning Committees - 93 +3.17.5. +HIGHLIGHTS FROM THE ENGINEERING AUDITS - 94 +4.0. +4.1. +Engineering Audit of Selected Road and Building Projects in Kampala Capital City Authority (KCCA) - 98 + 5.0 INFORMATION SYSTEMS AUDITS - 100 +Information Systems Audit of Civil Aviation Authority - 100 +5.1. +Information Systems Audit of the Academic Management Information System (AIMS) - 102 +5.2. +Information Systems Audit of Uganda National Land Information System (Ug-NLIS) - 105 +5.3. + 6.0 SPECIAL VERIFICATIONS - 108 +Verification of Assets and Liabilities for Uganda Telecom (In-Administration) - 108 +6.1. +Verification of Terminal Benefits/Pension of former Employees UPTC - 109 +6.2. +HIGHLIGHTS OF VALUE FOR MONEY AUDIT RESULTS - 111 +7.0. +Value for Money Audit on the Management of Government Investments by UDC - 111 +7.1. +7.2 A Value for Money Audit on The Afforestation and Restoration of Selected Central Forest Reserves +(CFRs) by the National Forestry Authority (NFA) - 113 +7.3 A Value for Money Audit on the Implementation of the Uganda Women Entrepreneurship Programme +………………………………………………………………………………………………………………………………….115 +A Value for Money Audit Report on the Management of Research Grants by Public Universities - 117 +7.4. +vi + +Value for Money Audit of Urban Infrastructure projects implemented by 22 Municipal Councils …….... 94 4.2. + +Value for Money audit and assessment of Infrastructure projects under the UgIFT Program …….……. 95 4.3. + + + + + + + + + + + +7.5. + +Value for Money Audit on The Management Of MATIP-1 Markets by Municipalities - 121 +Prevention and Response to Incidents of Fire by Uganda Police Force - 122 +7.6. +Value for Money Audit on the Performance of the Agriculture Cluster Development Project - 125 +7.7. +7.8 Follow up on the Value for Money Audit on the Compensation of Project Affected Persons under the +Refinery Project by the Ministry of Energy and Mineral Development - 126 +7.9 VFM Audit on the Implementation of the Uganda Reproductive Maternal and Child Health Services +Improvement Project (URMCHSIP) - 127 +ANNEXURES - 129 +ANNEXURE I: SUMMARY OF ENTITY FINDINGS AND OPINIONS FOR MDAs, COMMISSIONS, STATUTORY +CORPORATIONS AND STATE ENTERPRISES AND PROJECTS - 129 +ANNEXURE II: SUMMARY OF ENTITY FINDINGS AND OPINIONS FOR LOCAL GOVERNMENTS - 316 +ANNEXURE III: REPORTS AND CONSOLIDATED GOVERNMENT OF UGANDA FINANCIAL STATEMENTS - 445 + +vii + + + + + + + + + + + +LIST OF TABLES + +Table 1: Status of audit performance for audit year 2021 - 2 +Table 2: Summary of Current Year Opinions - 3 +Table 3: Trend of Opinions for MDAs, Higher Local Governments for the last three years - 3 +Table 4: Tax arrears - 19 +Table 5: Debt portfolio analysis - 20 +Table 6: Total revenue ratio - 22 +Table 7: Tax to GDP ratio - 23 +Table 8: Noncompliance with the 70% capital threshold - 28 +Table 9: Absorption of fund - 29 +Table 10: Showing Level of Absorption for Wage, Pension and Gratuity - 36 +Table 11: Entities with unsupported expenditure - 45 +Table 12 Un-consolidated local governmentsSn - 46 +Table 13: Status of implementation of UgIFT projects - 47 +Table 14: UgIFT projects without land titles - 48 +Table 15: Entities not Consolidated, but Disclosed in summary statement - 53 +Table 16: Entities neither reported nor Disclosed in the consolidated summary statement - 53 +Table 17: Entities not assessed - 54 +Table 18: Profitability of Public Corporation and State Enterprises - 55 +Table 19: Returns on Assets - 56 +Table 20: Enterprise Liquidity - 57 +Table 21: Liquidity assessment for financial institutions - 58 +Table 22: Loans and Advances performance - 59 +Table 23: Enterprises' ability to service loan obligations - 59 +Table 24: Comparison of consolidated quantities of production inputs - 63 +Table 25: Information Systems within the JLOS Sector - 65 +Table 26: Understaffing in Lower Local Government - 90 +Table 27: Performance of Central Government Grant - 91 +Table 28: Performance of Local Revenue - 91 +Table 29: Unjustified Payments and Overpayments - 99 +Table 30: Creditors Verified - 108 +Table 31: Summary of claims presented for Verification - 110 +Table 32: Summary of Verified claims payable - 110 +Table 33: Challenges of Project Implementation - 112 + +viii + + + + + + + + + + + +LIST OF ACRONYMS + +ACRONYM DESCRIPTION +AG Auditor General +AO Accounting Officer +Bn Billion +BoU Bank of Uganda +CAs Contracting Authorities +CFR Central Forest Reserve +DGAL Directorate of Government Analytical Laboratory +DLB District Land Board +FY Financial Year +GDP Gross Domestic Product +GoU Government of Uganda +ICT Information Communication Technology +IDA International Development Association +IESBA International Ethics Standards Board for Accountants +IFMS Integrated Financial Management System +IMF International Monetary Fund +KIS Kalangala Infrastructure Services +MAAIF Ministry of Agriculture Animal Industry and Fisheries +MDAs Ministries, Departments and Agencies +MEMD Ministry of Energy and Mineral Development +MOFPED Ministry of Finance, Planning, and Economic Development +MoGLSD Ministry of Gender Labour and Social Development +MoU Memoranda of Understanding +MTEF Medium Term Expenditure Framework +NAA National Audit Act +NBI National Backbone Infrastructure +NDP National Development Plan +NDPII Second National Development Plan +NEF National Environment Fund +NEMA National Environment Management Authority +NFA National Forestry Authority +NGO Non-Governmental Organisation +NIN National Identification Number +NIRA National Identification Registration Authority +NPA National Planning Authority +NWSC National Water and Sewerage Corporation +OAG Office of the Auditor General +PAPs Project Affected Persons +PDMF Public Debt Management Framework +PFMA Public Finance Management Act, 2015 +PS/ST Permanent Secretary/Secretary to the Treasury +PSST Permanent Secretary and Secretary to Treasury +TAI Treasury Accounting Instructions, 2016 +TIN Tax Identification Number +Tn Trillion +TWGs Technical Working Groups +UCC Uganda Communications Commission + + + + +ix + + + + + + + + + + + +UCF Uganda Consolidated Fund +UDC Uganda Development Corporation +UETCL Uganda Electricity Transmission Company Limited +UGX Uganda Shillings +URA Uganda Revenue Authority +USD United States Dollars +USMID Uganda Support for Municipal Infrastructure Development +WMD Wetlands Management Department +YIGs Youth Interest Groups +YLP Youth Livelihood Programme + + + + +x + + + + + + + + + + + +GLOSSARY OF TERMS + +Term Definition +Classified Expenditure The expenses and commitments incurred by an authorised agency for the collection and dissemination of information related to national security interests +Contingent Liability A potential liability that may occur depending on the outcome of an uncertain future event. +Domestic Arrears Domestic arrears refer to short-term debts incurred by Governments against unpaid procurement invoices for supply of goods and services during the financial year +External Debt Portion of a country's debt that was borrowed from foreign lenders including commercial banks, Governments or international financial institutions. +Garnishee order A form of enforcing a judgment debt against a creditor to recover money. +Nugatory Expenditure Expenditure that does not achieve any result +Off-budget financing Off-buget refers to expenditure that is not funded through the budget +Recruitment Refers to the process of attracting, screening, selecting, and on boarding a qualified person for a job, provided by an employer in another territory and the preparation for their departure. +Revolving Fund A fund that is continually replenished as withdrawals are made. + + + + + +xi + + + + + + + + + + + +FOREWORD BY THE AUDITOR GENERAL + +In accordance with my audit mandate set out under Article 163 of the Constitution of the Republic of Uganda, 1995 (as amended) and the National Audit Act, 2008, I hereby present to you the Annual Audit Report on the Consolidated Public Accounts of Uganda; Local Government; and Summary Statement of Financial Performance of Public Corporations, and State Enterprises and Companies in which Government has a controlling interest. + +In delivering my mandate, I audited financial statements for 128 MDAs, 107 Statutory Corporations 145 Local Governments and 2048 Lower Local Governments. In addition, I undertook four (4) thematic audits covering, Management of Covid-19 pandemic intervention, compensations of Project Affected Persons, implementation of the approved budget, and Payroll and Pension payments. + +The Office reviewed its audit process to comply with the Covid-19 guidelines from the Ministry of Health and Ministry of Public Service, by conducting some critical meetings virtually and coping with a lean staff. In addition, Stakeholders have increased their call to strengthen accountability in the wake of the Pandemic triggering special audits and investigations relating to Covid-19 expenditure. + +Due to the impact of the Pandemic, some audits were not conducted as planned, but we are committed to continuously adding value to society by making recommendations that enhance accountability and improved service delivery through audit services. + +I extend my gratitude to the Government of Uganda and all other stakeholders for the support rendered to my office during the audit year. I also thank my staff for their unwavering commitment during this challenging period. + +John F.S. Muwanga AUDITOR GENERAL + +31 st December 2021 + +xii + + + + + + + + + + + +PART 1: INTRODUCTION AND PURPOSE OF THE REPORT 1.0 INTRODUCTION AND PURPOSE + +1.1 General Introduction + +I am required by Article 163(3) of the Constitution of the Republic of Uganda and Section 13 and 19 of the National Audit Act 2008 to audit and report on the public accounts of Uganda and of all public offices including the Courts, the Central and Local Government Administrations, Universities and Public Institutions of like nature and any Public Corporations or other bodies established by an Act of Parliament. + +Section 13 (b) of the National Audit Act 2008 further requires me to conduct the following audits: + + + +- Financial audits +- Value for money + + Engineering + +- Information Systems +- Special/Forensic Audits +- Gender and Environment and any other audits in respect of any project or activity involving public funds +- Classified expenditure +- Government investments +- Procurement audits, and +- Treasury Memoranda + + + +Under Article 163 (4) of the Constitution, I am also required to submit to Parliament annually a report of the accounts audited by me for the year immediately preceding. I am therefore, issuing this report in accordance with the above provisions. + +1.2 Purpose The purpose of this report is to provide: + +(i) + +A summary of audit results and opinions for audits done in the year + +(ii) + +A report and Opinion of the Auditor General on the; + + + +- Consolidated Financial Statements of the Government of the Republic of Uganda for the year ended 30 th June 2021 +- Consolidated Financial Statements of Local Governments for the year ended 30 th June 2021 +- The Consolidated Summary Statement of Financial Performance of Public Corporations and State Enterprises for the year ended 30 th June 2021 + +(iii) A summary of audit results from audit of thematic and focus areas + +1 + + + + + + + + + + + +(iv) Sectoral and cross cutting findings, implications and recommendations from the audit of Ministries, Departments, Agencies, Commissions, Statutory Corporations and Local Governments and other specialised audit findings. For the first time, a summary of IT Audit findings have been included in the report under Part 4 of the report. + +(v) + +A summary of findings of completed audits which include opinions from the audit of Ministries, Departments, Agencies, Commissions, Statutory Corporations (Annexure I) and Local Governments (Annexure II). + +1.3 + +Summary of Audit Results + +1.3.1 General Performance + +During the current year, I planned to undertake 4,165 audits. I was able to undertake 2,692 audits which made up 88.1% of the annual approved budget of Government. The summary is in Table 1 below and details are in Annexure I, II. + +A total of 1,473 audits, of which 50% are schools and tertiary institutions, could not be undertaken due to the effects of Covid-19 pandemic and resource constraints. This significantly affected the flow of work from the entities and within the offices. The summary is shown in Table 1 below. + +The forensic investigations and special audit reports have been issued to the respective stakeholders who requested for them. + +Table 1: Status of audit performance for audit year 2021 + +Type of Entity/Audit Planned Audits for the audit year 2021 Revised Planned Audits for the year 2021 Actual Performance as at December 31, 2021 Audits deferred during the year +MDAs 123 170 128 42 +Funds 3 3 3 0 +Classified entities 13 13 0 13 +International Audits 2 2 2 0 +Commissions, Statutory Authorities and State Enterprises 95 121 107 14 +Projects 167 257 146 111 +PSAs 4 8 4 4 +Districts 135 135 115 20 +Municipal Councils and Cities 41 41 24 17 +Lower Local Governments for 18/19 and 19/20 1,662 2,291 2,048 243 +Regional Referral hospitals 14 14 6 8 +Schools/Tertiary institutions 379 746 0 746 +Forensics/Special Audit 71 71 8 63 +VFM Studies 20 41 8 33 +Engineering Audits 230 240 90 150 +IT Audits 10 12 3 9 +TOTAL 2,969 4,165 2,692 1,473 + + + + +2 + + + + + + + + + + + +1.3.2 Summary of Opinions Of the financial audits concluded (MDA, Commissions, Statutory Authorities and State Enterprises, Projects, Districts and Municipalities), 502 (95%) entities had unqualified opinions while twenty-seven (27) entities had qualified opinions. Table 2 and figure 1 below provides the summary of the Opinions: + +Table 2: Summary of Current Year Opinions + +Category of Audited entities Type of Opinions Total + Unqualified Qualified Adverse Disclaimer +Ministries, Departments and Agencies 116 12 0 0 128 +Commissions, Statutory Authorities and State Enterprises 100 7 0 0 107 +Projects 144 2 0 0 146 +Districts Local Governments 110 5 0 0 115 +Regional Referral hospitals 6 0 0 0 6 +Municipal Councils and Cities 23 1 0 0 24 +Funds 3 0 0 0 3 +TOTAL 502 27 0 0 529 + + + + +*The table above excludes Lower Local Governments + +Table 3: Trend of Opinions for MDAs, Higher Local Governments for the last three years + +Type of Opinion 2020/21 2019/20 2018/19 +Unqualified 502 420 433 +Qualified 27 33 54 +Adverse 0 0 0 +Disclaimer 0 0 0 +Total 529 453 487 + + + + +Figure 1: Summary of opinions for the last 3 years + +600 500 400 300 + +Unqualified qualified + +200 100 0 + +2018/19 2019/20 2020/21 + +3 + + + + + + + + + + + +PART 2: CONSOLIDATED FINANCIAL STATEMENTS + +2.0 REPORT OF THE AUDITOR GENERAL ON THE CONSOLIDATED FINANCIAL STATEMENTS + +2.1 REPORT AND OPINION OF THE AUDITOR GENERAL ON THE GOVERNMENT OF UGANDA CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 TH JUNE 2021 + +THE RT. HON. SPEAKER OF PARLIAMENT + +Opinion + +I have audited the accompanying Consolidated Financial Statements of the Government of the Republic of Uganda for the year ended 30 th June 2021. These financial statements comprise of the Consolidated Statement of Financial Position as at 30 th June 2021, the Consolidated Statement of Financial Performance, and Consolidated Cash Flow Statement together with other accompanying statements, notes, and accounting policies. + +In my opinion, the Consolidated Financial statements of the Government of the Republic of Uganda for the financial year ended 30th June 2021 are prepared, in all material respects, in accordance with Section 52 of the Public Finance Management Act, 2015 and the Financial Reporting Guide, 2018. + +Basis for Opinion + +I conducted my audit in accordance with International Standards of Supreme Audit Institutions (ISSAIs). My responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statement’s section of my report. I am independent of the Treasury in accordance with the Constitution of the Republic of Uganda (1995) as amended, the National Audit Act, 2008, the International Ethics Standards Board for Accountants (IESBA) Code of Ethics for Professional Accountants (Parts A and B), the International Organization of Supreme Audit Institutions (INTOSAI) Code of Ethics and other independence requirements applicable to performing audits of Financial Statements in Uganda. I have fulfilled my other ethical responsibilities in accordance with the IESBA Code, and in accordance with other ethical requirements applicable to performing audits in Uganda. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my qualified opinion. + +Key Audit Matter + +Key audit matters are those matters that, in my professional judgment, were of most significance in my audit of the financial statements of the current period. These matters were addressed in the context of my audit of the financial statements as a whole, and in forming my opinion thereon, and I do not provide a separate opinion on these matters. I have determined the matters described below to be key audit matters communicated in my report. + +2.1.1. + +Implementation of the approved budget + +On the 24 th April 2020, Parliament approved the annual budget for MDAs and LGs that contained the specific resource envelope allocated to each vote to implement agreed on + +4 + + + + + + + + + + + +outputs. Subsequently, the PS/ST issued a Budget Execution Circular that communicated the budget strategy, policy, and administrative issues to guide the budget implementation for the financial year 2020/2021. + +During my overall risk assessment exercise, I noted that MDAs and LGs are still experiencing challenges in implementing the budgets approved by parliament and policy guidance’s issued by PS/ST, which has continued to affect the performance and credibility of the budget negatively. These challenges include; lack of strategic plans that are aligned to the National Development Plans, underperformance of revenue, implementation of off-budget activities, under absorption of funds, insufficient quantification of outputs, partial and non- implementation of outputs, diversion of funds and challenges in budget monitoring and reporting of performance. + +I am aware that the Covid-19 Pandemic continues to significantly affect the implementation of several activities. Consequently, a number of activities were not implemented due to budget cuts and lockdown measures instituted to control the spread of the pandemic. It is against this background that the implementation of the budget was again considered a key audit area during the office-wide planning for the current audit year. + +Consequently, I developed procedures to address the performance of the budget of the entity (Detailed reports are provided in individual entity reports). + +From the procedures undertaken, I noted the following; + +SN Finding Recommendation a) Revenue performance I advised the Secretary to the + +A review of the approved budget estimates of the Government of Treasury to devise Uganda for the financial year ended 30 th June 2021 revealed that the means of ensuring + +initial approved budget (resource envelope) for the financial year that all budgeted + +2020/21 was UGX.45,493.69 Bn. The funding was later revised to revenue is always UGX.48,726.77 Bn, following approval for additional domestic collected to fund the financing of UGX.3,234 Bn. It was estimated that Tax and Non Tax budget as approved. revenue amounted to UGX.22,024.66 Bn, domestic borrowing would finance UGX.6,794 Bn while external financing would provide grants + +of UGX.1,719.91Bn and loans of UGX.10,702.10Bn. + +The table below summaries the performance of revenue by source; + +Funding source Approved Revised Actual (Bn) Variance Perform Budget (Bn) - budget + +- UGX (Bn) - ance UGX (Bn)-UGX UGX (%) + +Domestic Resources Taxes 20,218.68 20,218.68 18,252 1,966.68 90 + +Non-Tax 1,805.98 1,805.98 1,648 157.98 91 revenue 1 Domestic 3,560.32 6,794 6,794 - 100 financing Domestic 7,486.1 7,486.1 7,420 66.1 99 refinancing + +1 Includes Appropriation in Aid of UGX 215 billion. + +5 + + + + + + + + + + + +SN Finding Recommendation + A A External Resources + Budget support + Grants 133.56 133.56 62.85 70.71 47 + + Loans 2,773.12 2,773.12 3,134.13 -361.01 113 + Project support + + Grants 1,586.35 1,586.35 1,026.04 560.31 65 + Loans 7,928.98 7,928.98 6,822.23 1,106.75 86 + + Grand Total 45,493.09 48,726.77 45,159.25 1,667.06 93 + + Actual funding for the budget during the financial year was UGX. + 45,159.25Bn (93%) against a revised revenue budget of UGX. + 48,726.77Bn, indicating a shortfall of UGX. 3,567.52Bn. The details of + funding source are provided below. + + Taxes total tax revenue collected during the year was UGX. + + 19,697.7Bn, representing 90% of the approved estimates. + + Non-tax revenue total of UGX.1,605.42Bn was realised from this source against a + + target of UGX.1,805.98Bn representing a performance of 89%. + Budgeting for NTR remains a challenge at the Treasury, as the + figures included in the revenue estimates are not agreed with + individual votes, and a number of entities do not reflect NTR in their + budgets. + + Budget support Government planned to raise a total of UGX.2,906.68 Bn for budget + + support of which 5% was grants while 95% was from loans. Grants + underperformed by 52% while Government acquired loans of + UGX.361 Bn in excess of what was planned translating into a 113% + performance. The increase in loans for budget support related to + additional borrowing that was secured in light of COVID -19 + disruptions. + + Project support total of UGX.9,515.33 Bn (20%) of the approved budget was + + planned for project support of which grants and loans were + UGX.1,586.35 Bn and UGX.7,928.98 Bn respectively. Grants + underperformed by 60% (UGX.1,026.04 Bn) while UGX.6,822.23 Bn + (83%) was realised from the loans. + + Domestic refinancing Government planned to pay back maturing Treasury Instruments by + + borrowing afresh from the market (domestic refinance) to a tune of + UGX.7,486.1 Bn, of which UGX.7,420Bn (99%) was realised. + + Management attributed the Tax and Non tax Revenue shortfall + mainly to the lockdown measures that were instituted by government + curb the spread of the COVID 19 that constrained revenue major + sources and the slow Economic growth which is a major contributor + taxes that declined from the projected 6.4% to 3.1%. Deficits + + + + +each The + +to + +to + +6 + + + + + + + + + + + +SN Finding Recommendation +were registered in CIT, VAT, excise duty and Corporation Tax since companies were not working. The EFRIS has now been rolled out and Digital stamps implementation is under way to revive revenue collection.Management also indicated that NTR Budget estimates books have been revised and the budget process for NTR enhanced to incorporate Universities fees collection which was a major challenge in terms of providing the right estimates. The NTR Budget consultation process for FY 2022/23 had been concluded for all Votes and a realistic target set for NTR collections. + + + + + + + + + + + +b) Unfunded approved budgetDuring the year under review, Government budgeted to spend a total of UGX.45,439 Bn, which was later revised to UGX.51,625 Bn. An analysis of warrants approved revealed that a total of UGX.46,657 Bn was approved against the budgeted amounts, thus representing 90% performance. A sum of UGX.4,968 Bn was not availed for expenditure. See table below;Entity Percenta geTotal Revised Budget – UGX(bn)Total warrants - UGX(bn) Variance- UGX(bn)Central Govt73.42% 37,904.70 35,717.10 2,187.7 Local Govt 8.38% 4,327.80 4,218.40 109.4Local Revenue0.42% 217.4 115.3 102.0Project Financing17.77% 9,176.00 6,606.80 2,569.2 Total 51,626.00 46,657.60 4,968.4Failure to fully fund the revised budget affected the implementation of the planned activities which were intended to contribute to the achievement of the NDP III and Vision 2040. The detailed impact of this shortfall on the entity activities has been reported in the individual entity reports. Notably, there was a significant variance in project financing which is explained by under absorption by the various implementing MDAs.It was observed that whereas the performance contracts with Accounting Officers are premised on availing the appropriated budgets during the year, such contracts are not revised in situations of shortfalls in budgets.The Secretary to Treasury indicated that the funds releases to Votes are in line with the available resources issued in quarterly expenditure limits which are supported by actual revenue collections from URA and also indicated that Ministry of finance provides guidance by way of circulars to all Votes to fund only critical activities within the work plans in line with the available resources.The Secretary to Treasury committed to improving releases asI advised the PSST to provide guidance to MDAs in regard to the prioritization of activities to the levels of availed resources in cases of shortfalls. + + + + + + + + + + + + + + + + + +7 + + + + + + + + + + + +SN Finding Recommendation +revenue collections improve with the economy recovering from the current economic shocks. +c) Unspent warrants/under absorption of funds UGX .3,018.44BnSection 45 (3) of the Public Finance Management Act, 2015 states that an Accounting Officer shall enter into an annual budget performance contract with the Secretary to the Treasury which shall bind the Accounting Officer to deliver on the activities in the work plan of the vote for a Financial year.It was observed that warrants worth UGX.46,657.6 billion were approved in respect of various entities for which only UGX.43,639.2 billion was paid out leaving UGX.3,018.4 billion (6.5% of approved warrants) unspent. The details are indicated in the table below;Approved Warrants (UGX’ billion)Total Payments (UGX’ billion)Unspent funds (UGX’ billion) ENTI TYWage Non - WageDevelop mentwage Non - WageDevelo pmentwag eNon- WageDevCG 2,710 23,647 15,771 2,637 21,32 15,725 73 2,327 45 Missi ons28 149 18 28 149 17.9 - - -LG 2,271 1,071 992.1 2,151 1,025 586 119 46 406 TOTA L5,009 24,867 16,781 4,816 22,494 16,329 193 2,373 452From the above, it can be seen that 79% of the unspent funds related to non-wage expenditure while wage and development expenditure posted underperformance of 6% and 15% respectively.98% of the unspent funds under non-wage related to Vote 130 (Treasury Operations) and were meant to settle interest costs and treasury bills and Bonds redemptions. The occurrence has an implication of increasing financing costs incurred by the government since the interest costs and redemptions are done by Bank of Uganda which in turn charges the treasury for the advance.Most of the unspent funds under wage related to pension payments casting doubt on the existence of the said pensioners.Under absorption negatively affects service delivery since some of the planned projects and activities are not undertaken.The Secretary to Treasury indicated that GoU operates a Cash budget which is based on actual inflows. The year under audit experienced cash shortfalls arising from, Domestic revenue shortfall as a result of the Covid -19 pandemic , late disbursements from IMF ,which came in on 30 June 2021 & Non disbursement from Afri-Exim Bank and African Development Fund. The occurrence contributed to delay in implementation of planned activities hence the under absorption of funds. I advised the + Secretary to the + Treasury to + strengthen the cash + forecasting function + to avoid issuing + warrants that cannot + be financed. + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + +d) Approval of supplementary funding without matching revenueSection 25(1) of the Public Finance and Accountability Act (PFMA) stipulates that the total supplementary expenditure that requires additional resources over and above what is approved by ParliamentI await the outcome of the new measures. + + + + + +8 + + + + + + + + + + + +SN Finding Recommendation +shall not exceed 3% of the total approved budget for that financial year, without the approval of Parliament.It was established that during the financial year ended 30 th June 2021, supplementary funding totalling UGX.6.13Tn was granted by the Minister of Finance, Planning and Economic Development. It was, however, noted that the source of the funding for the supplementary expenditure was not clearly shown before approval was granted. As a result, the supplementary expenditure was instead financed by internal budget cuts from various votes thus affecting implementation of plans/ activities by the affected votes. I noted that, although the budget was increased to UGX.51.625Tn, it was only funded to the tune of UGX.46.6Tn (90%funding).Continued approval of supplementary budgets without a corresponding increase in revenue/financing could be attributed to fiscal indiscipline which leads to increased funding gap affecting the earlier budget objectives and plans.The Secretary to Treasury responded that for the Financial Year 2022/23, the Ministry of Finance was using zero based budgeting approach to prioritize critical activities and expenditures to avoid supplementary requests during execution. The budget for 2022/23 is being used as a launchpad for restricting supplementary budgets to stabilize GoU budget execution going forward. +e) Budgeting for Non-Tax RevenueSection 6 of the Budget Execution Circular for the FY 2020/21 provides that all work plans and Budgets for FY2020/21 are prepared and approved using the Program Budgeting System (PBS). All Budgets, irrespective of the source of financing (GoU, NTR/AIA, Donor or LG Revenue), will be migrated and loaded into the Integrated Financial Management System (IFMS) to facilitate Budget Implementation and reporting.According to the approved budget estimates for the FY2020/21, it was projected that a total of UGX.1.590 Tn would be collected as NTR. Review of the Performance Budgeting System(PBS) tool used by the Government and IFMS records revealed that that NTR Budgets for the respective MDAs were neither uploaded on PBS nor IFMS. The budgeting tool only had details regarding expenditure, and no revenue was included. I further noted that several Accounting Officers disowned the figures incorporated in the NTR Estimates book, indicating that they had not been consulted in arriving at the estimates incorporated therein.As a result, I was unable to compare respective entity budget figures with the URA NTR collections that totalled to UGX.1.605Tn. The absence of revenue estimates for each entity undermines transparency, affects motivation of staff, and hampers performance assessment.Management responded that for the budget of FY 2022/23, I advised the PSST to ensure that all Ministries, Departments and Agencies budget for the Non-Tax Revenue and have the details provided in the IFMS and the PBS. + + + + +9 + + + + + + + + + + + +SN Finding Recommendation +respective MDAs had been requested to submit their NTR estimates which will be uploaded and reflected on the PBS as had been done in the NTR estimates booklets. PBS has been upgraded to include the NTR budgets for Votes. The approved estimates will also be uploaded on the IFMS for follow up on monthly performance reports. +f) Quantification of activities and Implementation of planned outputsSection 13 (15, b) of the PFMA 2015 states that a policy statement submitted by a vote shall contain the annual and three months’ work plans, outputs, targets and performance indicators of the work plans. Regulation 11 (3) of PFMR 2016 requires that a vote prepares a work plan that indicates the outputs of the vote for the financial year; the indicators to be used to gauge the performance of the outputs and funds allocated to each activity.I sampled 94 entities for purposes of assessing the extent of quantification and implementation of planned outputs I noted that out of the 1,681 outputs worth UGX.9.8tn sampled for review, 1,151 outputs (68.5%) worth UGX.6.8tn were fully quantified, 307 outputs (18.3%) worth UGX.2.1tn were partially quantified while 223 out puts (13.2%) worth UGX.902Bn were not quantified at all.Out of a total of 1,151 quantified out-puts worth UGX.6.8tn assessed, 465 (40.4%) output worth UGX.2.5tn were fully implemented, 592 outputs (51.4%) worth UGX.4.1tn were partially implemented, while 94 (8.2%) out-puts worth UGX.146bn were not implemented at all. The graph below shows the extent of implementation;Failure to fully quantify the planned activities makes the assessment of implementation difficult.The Accounting Officers indicated that the outbreak of the Covid-19 Pandemic affected the implementation of the 2019/2020 budget, especially activities in the last half of the financial year. I advised the PSST to follow up the matter with the Accounting Officers of the various MDAs to ensure that there is full quantification of activities and outputs. +g) Existence of Strategic plans that are aligned to NDP-IIIParagraph 5 of the budget execution circular for the financial year 2020/2021 cites poor alignment of Government Budgets with the National Development Plans. The PS/ST urged Accounting Officers to ensure that all activities for Financial Year 2020/2021 are aligned with NDP III and implemented accordingly. Regulation 26 (1) of the National Planning Authority (development of Plans) regulations require entities to submit to NPA their five-year development plans for certification before approval.This being the first year of implementation of the NDP-III, MDAs were expected to prepare strategic plans aligned to NDP III and ensure that these plans are certified by NPA before approval. These plans would then be the basis for preparation of the entity annual I advised the PSST to follow up the matter with NPA and ensure that the entities have strategic plans that are aligned to NDP- III and certified by NPA. + + + + +10 + + + + + + + + + + + +SN Finding Recommendation +plans.From the procedures undertaken I noted that out of 94 entities sampled, 75 were supposed to prepare strategic plans that were aligned to NDPII. However, out of 75 only 25 (33%) had their strategic plans certified by NPA. The balance of 50 representing 67% were not certified by NPA. There is a risk that activities implemented by these entities during the financial year 2020/2021 were not aligned to the NDP-III which negatively affects the achievement of NDP-III objectives. +h) Off Budget Financing/ReceiptsSection 43 (1) of the PFMA 2015 states that all expenditure incurred by the government on externally financed projects in a financial year shall be appropriated by parliament. Paragraph 29 of the Budget Execution Circular for the Financial year states that if an external agency provides funds in the course of implementation of the budget or any funds remain unspent at the expiry of an appropriation, these must be declared and a supplementary issued in line with the Public Finance Management Act 2015.I noted that 30 entities received off-budget financing to a tune of UGX.627.124Bn, which was never declared to the PS/ST and was also not appropriated by Parliament. As such, no supplementary appropriation was issued as guided by the PS/ST. These funds were received directly from development partners for undertaking activities not budgeted for. Off-budget financing distorts planning, may result in duplication of activities, contrary to Section 43(1) of the PFMA 2015 and the budget execution guidelines.The Accounting Officers explained that this was due to limitations of the PBS system which has no provision for inputting such receipts and in some cases funds are received during the year which were not expected at the time of planning. I advised the Accounting Officers to comply with the law and guidance given by the PSST and ensure that in future, all funds received outside the approved budget are appropriated by way of a supplementary. + + + + +2.1.2. COVID 19 expenditure + +The emergence of the Global Covid-19 pandemic presented a social and economic threat to many countries in the world, including Uganda. In response, the Government of Uganda developed and instituted several interventions to control and avert the effects of the pandemic on the economic and social wellbeing of its citizens. The interventions included instituting a total lockdown, closure of airports, restriction of cross boarder movements, and increased surveillance among others which in turn necessitated additional funding. Mobilisation of revenue was also negatively affected due to low economic activity. + +In addition to the local revenue raised by the Government to support the budget, Government proceeded to secure additional funding to facilitate the efforts and interventions + +11 + + + + + + + + + + + +being undertaken to manage and control COVID-19 and its effects on the economy and the society in general. + +In a letter dated 09th August 2021, the PSST advised me that the total amount released for COVID expenditure in the FY 2020/21 was UGX.2,371Bn of which a total of UGX.677Bn was disbursed for the settlement of domestic arrears. + +During the audit, I designed and performed procedures that I considered appropriate under the circumstances to enable me to gather evidence to address the specific objectives listed below; + +i) Confirm whether the funds received by Treasury were dully appropriated by parliament. + +ii) + +Establish whether funds appropriated and allocated were received by the different votes + +iii) + +Establish whether the appropriated funds were utilised for the purpose for which they were approved. + +iv) + +Assess the existence and effectiveness of internal control systems. + +v) + +Assess the extent of achievement of planned output by the different entities vi) Establish whether all funds disbursed were properly accounted for and value for money was attained. + +vii) + +Make appropriate recommendations to strengthen accountability and transparency. + +From the procedures undertaken the following summarised key findings were noted, the detailed report was issued separately as the COVID 19 thematic report; + +Summary of key findings + +- USD 345million received by GoU in respect of support to Bank of Uganda for Balance of Payment was confirmed received and banked intact in Citi bank New York to enhance + + + +the Country’s foreign reserves. + +- A total of UGX 676Bn was allocated and disbursed to various MDAs to settle domestic arrears with a view of improving liquidity within the local business community. I noted that 90% of funds used appropriately for the intended puropose; however, I noted diversion of funds to pay for unrelated expenditure worth UGX 4.897Bn (0.7%), unsupported domestic arrears of UGX 27.38Bn(4%), and Payment for contested/rejected domestic arrears of UGX.1.245Bn(0.2%). I also noted that UGX 33.8Bn (5%) was used to settle international obligations thus did not contribute to the stated objective since the funds were externalised. + + + +- UGX 260Bn allocated for the Emyooga programme was disbursed to Microfinance Support Centre with a goal of transforming household incomes by increasing employment opportunities and access to financial services to the rural areas. Audit confirmed that UGX 219.40Bn (84%) had so far been disbursed to 6,326 EMYOOGA SACCOs. It was, however, noted that the SACCOs were in the process of obtaining operational licenses; no MoUs had been entered into between the disbursing entity and the beneficiary SACCOs; UGX.34,716,666,049 (1.3%), though disbursed, remained un- accessed by the beneficiary SACCO. + + + +12 + + + + + + + + + + + +- A total of UGX.56.8Bn was disbursed to MSc to increase the funds available for on- lending to different businesses. I noted that MSc lacked capacity at zonal offices to appraise loans which was also manifested in the unbalanced approach for loan appraisals. A total of UGX 13b (23%) was disbursed to applicants without MSC finalising the perfection of securities for the collaterals. UGX.2.5Bn (4%) was irregularly advanced to applicants contrary to the credit policy. A total of UGX 3.149Bn (6%) was advanced to applicants with no collateral. + + + + + +- A total of UGX.31.033Bn was disbursed to the Ministry of Science Technology and innovation to support 23 selected projects of scientists and innovators engaged in CoVID-I9 scientific research, including the procurement of specialized machinery and equipment, development of vaccines, drug diagnostics, and other operational costs. The funds were divided into UGX.15.787Bn for purchase of Equipment and UGX.15.245Bn for Operational Costs. An MOU was entered with Presidential Scientific Initiative on Epidemics (PRESIDE) to provide technical and administrative oversight at an operational level. It was noted that most projects were progressing well. It was also noted that due to the general weaknesses identified, there was a need to provide more guidance to the beneficiaries on how to account for Government funds. + + + +- Out of UGX 558.68Bn appropriated, 531.8Bn was disbursed to Uganda Development Bank for recapitalization, leaving UGX 26.87Bn unremitted by the Ministry of Finance and Economic Development. From the amount disbursed, funds worth UGX 234bn had been paid out to various beneficiaries; by the time of the audit, the balance of UGX 292.66Bn was still deposited in commercial banks. +- Of the amounts paid out, UGX95bn was sent to financial institutions and SACCOs following MoUs entered into by UDB and the financial Institutions, for the latter to on lend to stated beneficiaries. + + + +- Euros 1,602,370 (equivalent to UGX.7,136,910,000) received by UDBL from the European Union for the Tourism Sector. As at 10 th June 2021, 25 applications worth UGX 9.55 Bn had been approved, and grant disbursements worth UGX 4.34 Bn. had been processed to 14 projects. + + + +- Furthermore, the Ministry of Finance and Economic Development disbursed UGX.126.9Bn to Uganda Development Corporation, to finance projects aimed at supporting the private sector to avert the effects of Covid-19. I noted that the capitalisation grants to UDC are assigned to specific projects thereby nullifying the internal appraisal processes of UDC. 54% of the funds remained unutilised as the projects were not ready for investment. + + + +- UGX 253.59bn was released and received by the Ministry of Health. MoH used the money to procure medical supplies, 282 motor vehicles, pay allowances to medical workers, masks, intensive care equipment and build modular houses at 6 border points. All the planned activities were undertaken amidst many challenges. I noted a diversion of funds totalling UGX 7.98Bn. Though funds were paid for the acquisition of vaccines, there were delays in the delivery of the vaccines due to the global demand. There was a delay in the installation of intensive care equipment in Gulu, Mbarara, Bombo, and Lacor hospitals due to building inadequacies. + + + +- Whereas medical workers requested to be given UGX.150,000 per day as risk allowance, this was not possible and they were instead paid UGX.80,000 per day. They made a + +13 + + + + + + + + + + + +request to parliament to have this amount exempted from taxes, but the issue was never resolved. In the meantime, UGX.2.2Bn meant for PAYE was not deducted from the allowances paid to medical workers in the period under review. + +Key Recommendations + +- Management should ensure that compensating controls are put in place in times where conventional controls cannot be implemented. +- Sensitisation of private individuals and organisations to whom public resources are entrusted should be done prior to disbursement of the funds. +- The PS/ST should clearly communicate the intentions of given initiatives before funds are disbursed to implementing agencies to avoid a mismatch between the intended objectives and actual outputs. +- Government entities and projects should be assessed for capacity to implement given tasks before funds are disbursed to them. + + + +2.1.3. + +Compensations/Acquisition of Right of Way for Selected Transmission Lines Projects + +The Government, through the Ministry of Energy and Minerals Development, is responsible for provision of policy guidance in the development and exploitation of the energy resources, creation of an enabling environment to attract investment, and provision and utilization of energy resources. + +Currently, UETCL’s network consists of 2,989.2Km of high voltage lines distributed as; 1,008km of 220kv, 1,946km of 132kv and 35km of 66kv , with 25 substations with a total transformation capacity of 2829.5 MVA. However, this is still low, given that Uganda still has one of the lowest per capita electricity consumption in the world with 215 KWh per capita per year, given that the Sub-Saharan Africa’s average is 552Kwh 2 . + +Government has spent significant amounts in compensation of Projected Affected Persons. In a period of 5 years, financial years between 2016/17 to 2019/20, a total of UGX.564.57Bn has been spent in compensations of PAPs. + +The delays in undertaking the construction of the transmission lines has been largely attributed to inadequacies in the compensation of Project Affected Persons. The challenges + +faced in “Acquisition of the Right of Way (ROW)” have led to delayed implementation of a + +number of projects in the Energy Sector. + +Owing to concerns over the progress of the implementation of the transmission + +infrastructure under UETCL, the Office of the Auditor General undertook an audit on the + +compensation of PAPs under selected transmission line projects. The overall objective of the audit was to ascertain whether the compensation process of the Project Affected Persons (PAPs) was implemented in accordance with the Compensation Guidelines and other Government Legal Frameworks to enable efficient and effective service delivery. + +The scope of the audit included the Grid Extension and Reinforcement Project (GERP) and the Mputa Transmission lines. The following are the summary of the key findings and recommendations made, and the details are in the thematic report on compensations; + +2 Uganda energy situation-energypedia. 14 + + + + + + + + + + + +Summary of Key Findings: + +- 56% of the PAPs for GERP and Mputa projects were not properly identified, and this resulted in a mismatch between the number of PAPs appearing on the payment files and the survey reports and Valuation Reports prepared by the Chief Government Valuer. + + + + + +- The valuation process was marred with a number of irregularities, which included; the use of un-updated district compensation rates; and unverified legal interests in the land; resulting in unnecessary revaluations and ligation which in turn delayed the RAP processes, thus affecting timely project completion. + + + +- The budgeting, disbursement, and absorption of compensation funds were not properly + +managed. There are seemingly budget slacks. Although the Survey and Valuation + +Reports are supposed to guide the budgeting for compensations, management prepared budget estimates which were not supported, this resulted in over budgeting to the tune of UGX.111.3Bn. + +- I noted that of the released compensation amount of UGX.21.5Bn for both GERP and Mputa Projects, only UGX.5.86Bn (27%) was paid to PAPs, thus resulting in unspent funds to the tune of UGX.15.64Bn (73%). This mostly affected the GERP Project which had UGX.13.17Bn not utilized, while Mputa had UGX.1.66Bn. + + + +- I also noted significant delays in compensation of PAPs. 1,109 PAPs (52.2%) for Mputa and 821 (35%) for the GERP Transmission Line remained unpaid by the time of concluding the audit (November, 2021). This was mainly caused by outstanding + + + +grievances whereby 52% and 15% of the grievances remained unresolved for GERP and + +Mputa Projects, respectively. Relatedly, Compensations in kind also delayed whereby out of 149 PAPs identified, only 93 were resettled, leaving 56 PAPs not resettled. + + + +- I noted a number of inadequacies in the construction of the resettlement houses which included; irregular payments to contractors, delayed progress of works, discrepancies in drawing specifications and BOQs, poor materials used for construction, and a number of defects which were not rectified. + +Key Recommendations + +- Management should always ensure that the RAP consultants thoroughly validate the preliminary information obtained during social survey and valuation processes, to enable + + + +accurate justification of PAPs + +- The District Land Boards should ensure compensation rates are regularly updated and communicated to the CGV, to enable appropriate valuation of the land and properties. +- Management should streamline its RAP processes, including proper identification of PAPs, clear valuation processes, and timely submission of PAP documentation, among others. +- Management should ensure proper supervision and monitoring of construction works. + + + +15 + + + + + + + + + + + +Emphasis of Matter + +Without qualifying my opinion, I draw attention to the following matters in the consolidated + +financial statements that in my judgment are of such importance and fundamental to users’ + +understanding of the financial statements; + +- Government Loans (Borrowings) – UGX 69.6Tn + + + +As disclosed in the statement of financial performance, the government Loans have increased from UGX.56.9Tn, in 2020 to UGX UGX 69.6Tn in 2021 constituting an increase of UGX 12,718Bn (22.4%) increase. This position reflects the country’s increased borrowing to combat the effects of the Covid19 pandemic. + +- Domestic arrears – UGX 4.65Tn + + + +As disclosed in the statement of financial performance, the domestic arrears have increased from UGX.3.83Tn in 2020 to UGX 4.65Tn in 2021 constituting a 21% increase. The amount represents 9% of the revised budget of government of Uganda for the financial year 2020/21. This is an indication of the failed commitment control system. The growth trend appears unsustainable and on the rise. This could also be as a result of approving supplementary budgets with no matching funding. + +The PS/ST explained that government is currently implementing a Domestic Arrears Strategy to clear significant amounts of the verified arrears. + + + +- Contingent Liabilities – UGX 160Tn + +As disclosed in the statement of contingent liabilities, Government contingent liabilities have increased to UGX160Tn up from UGX.11.5Tn reported in the previous year, representing a 1,290% increase. Most of the contigent Liabilities are arising out of court awards and compensations. The trend continues to appear unsustainable in the event that a significant percentage crystallises into liabilities. + + + +- Classified Expenditure – UGX 840.8 Bn + +As disclosed under note 8, a total of UGX 840.8 Bn relates to classified expenditure. In compliance with Section 24 of the Public Finance Management Act, 2015 (Classified Expenditure), this expenditure is to be audited separately and a separate audit report issued. + + + +- Non-Consolidation of Subventions + +It should be noted that this opinion excludes the details of expenditure worth UGX. 955Bn for subventions whose financial statements are not consolidated in the financial statements of the parent votes. Separate opinions were given on the individual financial Statements of the subventions. + +16 + + + + + + + + + + + +Other Matter + +I consider it necessary to communicate the following matters other than those presented or disclosed in the financial statements; + +2.1.4. Tax policy a) Absence of clear policies to guide the Tax Exemptions and other Investor Incentives + +Audit observed that there is no clear policy guideline for the issuance, management, and monitoring of the different tax benefits and incentives issued by the Government to different individuals. The absence of a clear mechanism and framework exposes the scheme to mismanagement and abuse. + +For example, there were inconsistencies in the grant of tax benefits to the various beneficiaries, and some conflicted with earlier policy decisions that were made by Government. A review of the letter of undertaking/commitment signed by the Minister of Finance relating to an Industrial park establishment revealed that Government was taking over import duty and VAT on all materials and machinery imported by the beneficiary with the exception of steel items. However, a review of the Memorandum of understanding signed by the GoU and an Industrial park company investor revealed that there was no exception relating to steel. + +It was also established that Government had offered a 10 year tax holiday to the steel sector with the aim of promoting the growth of the sector as well as boosting employment. + +In light of the above, there is conflict in policy as presented in the above agreements and commitments. The Government may not achieve the objectives for having granted the 10 year tax holiday for the steel sector. + +It was also noted that there is no mechanism in place for evaluating and or assessing the impact of the benefits granted. I noted 20 beneficiaries whose benefit period has since expired without follow up. + +In the absence of a monitoring framework, Government is not in position to assess the impact of the tax benefits granted to the various beneficiaries. Government is bound to lose revenues that would have accrued if the beneficiaries were effecting payments and this may also cause unfair competition in the market. + +Management indicated that the issue at hand would be solved by the ongoing development and implementation of the tax governance framework. + +The PS/ST is advised to develop a comprehensive framework to guide the identification of beneficiaries/criteria, the nature of benefits to be granted, the duration of the grant and assessment mechanisms. + +17 + + + + + + + + + + + +b) Continued loss of revenue due to Failure by Government to meet contractual obligations + +The Government of Uganda (GOU), through the Ministry of Finance Planning and Economic Development, entered an agreement on 4 th April, 2003 with Oil Refinery company for the development of oil palm industry in Uganda. Under Article 5(7) of the Agreement, GOU was required to pay VAT on the products of the all companies envisaged under the project from the first year of the project activities and ending after a period of eleven (11) years from the year of handing over the 26,500 hectares of land. It was agreed that the company would then refund (subject to clause 3 of article 4) the VAT paid by the Government with interest over a period of eight (8) years in eight equal installments, including accrued interest starting in the twelfth (12 th ) year. + +However, Government has breached the contract by failing to provide the balance of the 10,000 hectares of land as agreed. There is no documentation to show that the Ministry has made any follow-up on this matter. + +Due to Government’s failure to provide the balance of the required land, the Ministry of + +Finance, Planning and Economic Development has continued to settle all tax obligations on behalf of the Company. In the financial year 2019/20, the Minister wrote off a total of UGX.194Bn in line with the Tax Procedures Code Act (2019), being arrears as at 30 th June 2019 and also a total of UGX.79.8Bn was accumulated in the year under audit in arrears. Under the circumstances, it is apparent that instead of paying for 11 years, Government has so far paid for 17 years and is still continuing while the chances of recovery appear to be slim. + +The continued failure to provide land continues to affect the Uganda Revenue Authority in its revenue collection efforts and also affects Government of Uganda revenue performance. + +Management explained that Government has provided additional Land in Sango Bay bringing the total land provided to 22,500 hectares. The balance of 4,000 hectares is being sought in collaboration with Ministry of Agriculture Animal Industry and Fisheries. Once this is completed, the Company shall start refunding GoU taxes accumulated accordingly. The Ministry has further written to the Attorney General seeking advice on how the agreement can be amended. + +I advised the Accounting Officer to liaise with the responsible agencies and ministries to expeditiously address the land issue. In the meantime, the PS/ST should also follow up with the Attorney General on the possibility of reviewing the terms of the agreement. + +c) Continued build up of Government tax arrears; UGX.212.747Bn + +Article 17 of the 1995 Constitution of the Republic of Uganda (as amended) provides that it is the duty of every Citizen to pay taxes. Article 152(1) provides that no tax shall be imposed except under the authority of an Act of Parliament. The same Article provides that where a law enacted under the provision of the Article empowers any person to waive or vary a tax imposed by that law, that person or authority shall report to parliament periodically on the exercise of those powers as is provided for by the law. + +The tax procedures Code Act (as amended in 2019) provides that the Minister shall pay taxes due and payable by the Government arising from any commitment made by the + +18 + + + + + + + + + + + +Government to pay taxes on behalf of a person, or owing from the Government through the acquisition of goods and services. In addition, Section 40A (2) of the same Act provides that all unpaid taxes by Government as at 30th June 2019 are written off. The Minister was tasked with gazetting the list of all taxes waived under the provision of Section 40A(2). + +In compliance with the provision of the Tax procedure Code Act, the Minister issued a list of beneficiaries of the said tax waivers totalling UGX.809.734Bn. This was gazetted in the Uganda Gazette of 13th March 2020. The write-off in question affected the tax heads and in amounts as summarised in table 4below; + +Table 4: Tax arrears + +Nature of Tax Total Amount written off (UGX) +Value Added tax (VAT) 348,986,568,013 +Stamp Duty 8,460,910,000 +Pay As You Earn (PAYE) 158,293,699,210 +Import Duty 98,569,989,826 +Excise Duty 52,685,114,511 +Income Tax 114,133,374,978 +Withholding Tax 28,604,598,593 +Total 809,734,255,131 + + + + +It has however been noted, that one year later, a total of UGX.212.747Bn has already been accumulated at the Ministry of Finance, Planning and Economic Development in tax arrears as 30 th June 2021. The occurrence is a manifestation that a tax write off is not the solution for the issue at hand. The tax arrears build up continues to negatively affect the revenue collection efforts of Uganda Revenue Authority. + +Management responded that the writing off of tax arrears by the minister was consistent with the law, specifically Article 152 (1) of the Constitution and Section 40 of the Tax procedures Code Act. This discretionary power is useful because it addresses strategic circumstances which merit government interventions that were not provided for in the tax acts. Exercise of this discretion by the minister is reported to parliament every end of the quarter. + +I advised the Accounting Officer to review the practice and come up with a lasting solution in respect of companies to which tax incentives and other benefits a granted. + +2.1.5. + +Audit of public debt + +a) Public Debt Portfolio Analysis + +The reported total public debt as at 30 th June, 2021 stood at UGX.69,600 Bn, of which Domestic Debt Stock was UGX.25,288 Bn and the External Debt Stock was valued at UGX.44,312 Bn. This is an increase of UGX.13,429 Bn, equivalent to 23.9% when compared to the debt stock of UGX.56,892 Bn reported as at 30 th June 2020. The table below shows the details; + +19 + + + + + + + + + + + +Table 5: Debt portfolio analysis + +Financial year ended Domestic debt (UGX Bn) Foreign debt (UGX Bn) Total (UGX Bn) % change +June 21 25,288 44,312 69,600 23.90% +June 20 17,975 38,196 56,171 23.50% +June 19 15,221 30,905 46,126 11.10% +June 18 13,059 28,386 41,445 23.60% +June 17 11,407 22,102 33,509 + + + + +Source: Audited financial statements of Vote 130 + +From the above, I noted that there was a consistent increase in the total debt and from financial year 19/20 to 20/21, there was an increment of UGX. 13,429Bn (23.90%). The net increase in the debt is due to increased borrowing from both the domestic and external sources, with domestic debt accounting for a higher increase. + +Public debt is continuously on the rise, a fact that is attributed to persistent budget deficits (mismatch of government revenue and expenditure), rollover of liquidity papers, new borrowings for various development projects and foreign exchange loss arising from the depreciation of Ugandan Shilling against stronger currencies. The graph below illustrates the trend of public debt stock by type over the past five years; + +Figure 2: The trend of public debt + +80,000 + +70,000 60,000 + +50,000 + +Domestic debt (UGX Bn) + +40,000 + +Foreign debt (UGX Bn) + +30,000 Total (UGX Bn) + +20,000 10,000 + +0 + +Jun-17 Jun-18 Jun-19 Jun-20 Jun-21 + +Although government has developed a domestic revenue mobilisation strategy, this appears not to be in harmony with the spending, raising concerns of sustainability. + +Management indicated that revenue Mobilization had recently been affected by reduced economic activity as a result of restrictions imposed to slowdown the spread of COVID 19. COVID 19 has also led to additional expenditure pressures, which necessitated increased borrowing. Going forward, Government will focus on reducing expenditure and increasing revenues in a bid to bridge the fiscal gap and reduce the rate of debt accumulation. These commitments have been clearly spelt out in the Charter for Fiscal Responsibility, which is + +20 + + + + + + + + + + + +awaiting Parliamentary approval. Further to the above, Government is finalising the Public Investment Financing Strategy (PIFS) that will improve alignment of government programmes and projects to suitable financing options. The Strategy will in turn enhance the efforts in resources allocation, utilisation and address issues on debt sustainability. + +I await implementation of the Charter for Fiscal Responsibility. b) Assessment of debt sustainability + +- Debt to GDP Ratio + +Debt to GDP ratios is a measure that compares what a country owes (total debt) and what it + +produces (manufactures or a service). The ratio reliably indicates a country’s ability to pay + +back its debt. A high debt-to-GDP ratio may make it more difficult for a country to pay both internal and external debts and may lead creditors to seek higher interest rates when lending due to the low credit rating of the country that pushes its lending risk high. + +Though the IMF has recommended 50% as the point of safety, many developed countries have gone up to 200%. However, according to the IMF, the developing countries are more prone to economic shocks and exchange rate risk, thus advising on a 50% threshold. + +A review of Uganda’s Debt to GDP revealed a 6% increase from 41% last year to 47% in the + +year under review. The graph below illustrates the movement; + +Figure 3: Debt to GDP ratio 160 140 120 + +100 + +Total Debt(UGX Bn) + +80 + +60 + +40 29.0 31.0 34.0 35.0 + +20 + +- + +GDP + +47.0 + +Debt to GDP Ratio 41.0 + +Jun 2016 Jun 2017 Jun 2018 Jun 2019 Jun 2020 Jun 2021 + +From the above, it can be seen that though Uganda’s GDP has been increasing over the years since 2013/14, its debt position has also increased. The rate of increase of debt is higher than the rate of increment in the GDP levels, which creates a risk of reaching unsustainable levels in the future. + +Management attributed the increased debt levels to Government’s ambitious infrastructure + +program under National Development Plans I and II that were particularly focused on the energy (dams and power lines) and transport sectors. In addition, the need to expedite + +21 + + + + + + + + + + + +commercial production of our oil resources has also necessitated the development of infrastructure which will aid the production process. It was also indicated that the onset of the COVID-19 pandemic had led to a contraction in economic activity and shortfalls in domestic revenue collections while at the same time creating additional spending areas to mitigate the pandemic impact. To maintain debt at sustainable levels, Government had embarked on a fiscal consolidation strategy aimed at accelerating implementation of the Domestic Revenue Mobilisation Strategy and expenditure rationalisation. + +I advised the PSST to consider exploring ways of reducing dependence on debt and expediting the implementation of strategies to enhance revenue generation for the country and/or reducing/rationalising government expenditures. + +- Interest to Total revenue ratio + + + +This benchmark shows the proportion of the domestic revenue that goes into servicing domestic interest costs. Since donor grants are inherently subject to uncertainty, the interest cost of domestic debt is considered in relation to the domestically-raised component of the budget only. Government set the ceiling to be 12.5% in its debt strategy. The table 6 below shows the assessment of the benchmark over the years; + +Table 6: Total revenue ratio + +Financial year Total domestic Revenue - UGX Total Interest - UGX % of Interest to revenue Benchmark +2020/21 20,199,013,110,066 3,118,535,556,062 15.4 < 12.5 +2019/20 17,453,981,414,553 2,475,531,497,733 14.2 < 12.5 +2018/19 17,128,743,726,614 2,005,380,900,988 11.71 < 12.5 +2017/18 15,219,588,786,381 1,937,371,886,367 12.73 < 12.5 + + + + +It has been established that the interest to revenue benchmark has been breached as evidenced above. Almost 15% of the revenue being collected is going into servicing interest payments. This is gradually reducing the funds available for funding other critical government expenditures, given that 25% goes to salaries and wages. + +Management indicated that efforts were being made to reduce the interest to revenue ratio by taking steps to reduce the level of domestic borrowing a view to attaining the operational ceiling of 1% of GDP and also working to increase domestic revenues through the operationalization of the Domestic Revenue Mobilization Strategy (DRMS). The implementation of the DRMS had stalled in the last two years due to the pandemic-induced shocks. The DRMS aims to increase to tax to GDP ratio by 0.5 percentage points every year largely through the improvement of revenue administration. + +I advised the PS/ST to implement strategies of reducing the growth of interest expenditures at the same time increasing revenue mobilisation. + + + +- Low Tax to GDP ratio + +Section 2.1 (i) Public Debt and other Financial Liabilities Management Framework for the FY2018/19 to FY2022/23 provides that the Government of Uganda shall work towards 22 + + + + + + + + + + + +raising its tax-to-GDP ratio to the Sub-Sahara Africa’s (SSA) average of 15.1% as part of Uganda’s Financing Strategy to limit on borrowing. + +Audit reviewed the Country’s tax collections and its Gross Domestic Product (GDP) and + +noted that from the start of the implementation of the framework in the FY2018/19, Uganda had made an improvement and currently stands at 13%; however, more strides have to be made to make it to 15% and more. Refer to the table 7 below; + +Table 7: Tax to GDP ratio + +Financial year GDP at Current Prices (UGX) Billions TAX collections (UGX) Billions Tax/GDP +2020/21 147,962 18,594 13% +2019/20 139,689 16,042 11% +2018/19 132,090 16,146 12% + + + + +The continued failure to collect sufficient revenue will imply more borrowing and creates a risk that the Country may not achieve the World Bank Sustainable Development Goals by 2030. + +Management indicated that the Ministry’s tax expenditure analysis revealed that government was losing up to 1 to 2 percentage points of GDP per year, besides the fact that Government of Uganda informal economy is close to 50% of GDP. In addition, a VAT gap analysis carried out discovered a 40% compliance gap. The Ministry is implementing tax administration measures as part of the measures within the Domestic revenue mobilization strategy to improve tax to GDP ratio that include Automation of URA revenue collection systems through EFRIS, Digital Tax Stamps, Enhancement of ICT infrastructure, Installation of scanners at all customers border entry points, Improved Tax payer education, Implementation of a project to improve record-keeping by SMEs for improving compliance. + +Management through URA also committed to ensuring increased tax compliance. + +I advised the PSST to formulate policies that will further enhance domestic revenue mobilization. In the meantime, government should consider limiting its expenditure to within the limits of sustainable financing. + +c) + +Continued securing of High cost Temporary advance from Bank of Uganda + +Section 36 (3) of the PFMA 2015, stipulates that the Minister of Finance may raise a loan by issuing Government bills, bonds or stock or using any other method the Minister may deem expedient, including a fluctuating overdraft. + +Ministry of Finance, Planning and Economic Development requested for a temporary advance of UGX.2.1 Trillion from Bank of Uganda in line with the Public finance Management Act, 2015. The advance was granted on 1 st October 2020, the Bank of Uganda granted the request based on an average interest rate of the 272 day Treasury bill rate of 9.999%. Government paid an amount of UGX.98,770,218,774 as interest for the temporary advance due to delayed pay back. + +23 + + + + + + + + + + + +The Accounting Officer indicated that the Ministry had embarked on negotiation with the central bank to adjust the interest rate to a fairer benchmark, though this still has to be in line with the Bank of Uganda Act which stipulates use of a market rate. + +I await the outcome of the negotiations. + +d) + +Absence of Policy to manage Interest rate risk + +A Policy Framework serves as the guiding policy document for institutional development. The Policy Framework translates goals and objectives into attainable targets with outreaching impacts. Audit noted that the Treasury did not have a policy to manage interest rate risk. Without a Policy, there are no streamlined and institutionalized interventions that foster proper safe guards of public resources. + +It was noted that the country continues to engage in the acquisition of debt with floating + +interest rates from Bilateral countries and Commercial Banks that use the ‘Libor’ and + +‘Eurobor’ interest rates and thus the need for safeguards to be imposed. + +It was further noted that the Government debt management policy on external debt does + +not give sufficient guidance on the use of instruments such as ‘SWAPs’ in risk management. + +As a result, most products are market-driven which is exposing Government further to new risks. + +I noted that Government entered into a SWAP arrangement with two commercial banks towards the repayment a loan. A review of interest movements on the LIBOR revealed that Government has since made a financial loss of UGX.65,627,696,205 and has not yet benefited from the SWAP agreements with the two banks. + +The Accounting Officer responded that the conclusion of the 15-year Interest Rate Swap transaction in June 2016 was a risk mitigating action against possible increases in US$ LIBOR which was made on the basis of historical US$ LIBOR rates. It could not take into account the ramifications of the CoVID-19 pandemic and the associated interventionist changes in US Monetary policy; as they were not evident in 2016. Current Indications are that restoration of market based interest rates will occur in the near future and hence pointing to the necessity to keep the SWAP in place as insurance against likely future interest rate increases. Government is currently undertaking a midterm review of the Public Debt Management Framework (PDMF) 2018. The proposed measure will therefore be considered and appropriate policy actions will be instituted for the remaining period of the framework and the longer term. + +I advised management is to develop a policy on management of interest rate risk to minimise the exposure. + +e) Failed on-lending scheme + +Government of Uganda has over the years, secured funds for on-lending to various ministries, departments and agencies to undertake various projects. Whereas MDAs signed + +the on-lent loan agreements, there was an inability by some of the MDA’s to actually re-pay + +the on-lent loans. It was oserved that only Four(4) out of the Thirteen(13) MDA’s were + +found to be compliant with the repayment of the loans. + +24 + + + + + + + + + + + +It was further noted that; + + + +- There were no criteria in place to assess which MDAs to lend to. +- There was no record of assessment/ feasibility studies undertaken to establish whether the choice of on-lent financing was the best modality to finance the infrastructure projects. +- I noted that Government used non-concessional loans for on-lending, which attracted higher interest rates and shorter grace periods for the loan repayments as compared to the concessional loans which made it very costly. Some MDAs have had challenges with absorption and thus repayment. + +Without a clear policy in place, the above shortcomings will continue to occur. This is causing a strain on government as funds are diverted to pay the loan obligations. + +The Accounting Officer noted the observation and indicated that some of the beneficiary agencies that were not servicing the loans were taking various steps to have the issues resolved including seeking cancellations, write off loans by Government, and conversion of loan into equity among others. + +Government should develop a clear on-lending policy if it continues to use the above option as a channel for funding projects. + +2.1.6. + +Management of ICT in government + +a) Failure to rationalize IT investments + +Audit observed that there is massive duplication of IT systems and projects by the different MDAs attributable to implementation of IT initiatives in silos by the different MDAs. This has the effect of resulting into wastage of resources. + +The isolated implementation of ICT initiatives also has the effect of compromising the standard of ICT infrastructure used by Government, which has the effect of compromising service delivery and wasteful expenditure on ICT systems that are not to be used. + +Audit noted that several MDAs have procured several systems with the same functionality, established data centers, server rooms and disaster recovery sites to which the government has spent billions of shillings and the same continue claiming an annual maintenance fee. The major challenges, however, are that due to rapid technological changes, the investments require frequent upgrade infrastructure. + +Audit noted that whereas the ICT strategy gives guidelines on the budgeting and acquisition of ICT systems including the involvement of the Ministry of ICT and NITA in ensuring standardization of systems and prevention of duplication of government systems, the continued individual actions by some MDAs has resulted in uncoordinated budgets and procurements of systems. + +It is important to standardize, streamline and harmonize the budgeting, acquisition, deployment and disposal of IT services in Government to eliminate duplication; enhance information sharing and interoperability of e-government applications. + +25 + + + + + + + + + + + +Management explained that rationalization of IT investments has been an ongoing activity spearheaded by NITAU. This activity resulted in a report which is still under discussion. Despite the desire by NITAU to rationalize IT investments, it is true that some Government Ministries, Departments and other Agencies have continued to procure own systems and Infrastructure. However, with the ongoing discussion, it is expected that rationalization of + +government’s investments in IT systems will be achieved. + +I advised Government to expedite the ongoing rationalization and also streamline the budgeting and procurement of different ICT systems through seeking concurrence of the Ministry responsible for ICT and NITAU before funds for system acquisition are included in the budgets of MDAs. + +b) Weaknesses in management of recoveries arising out of anti-corruption cases + +Section 10(4) of the Anti-corruption Act, provides that in addition to any other penalty imposed upon conviction on a person order that person to make good the loss occasioned to the property; and the value of the property or damage to the property shall constitute a civil debt from the person to the Government or public body concerned and shall be recoverable from that person. + +A review of decisions from the Anti-corruption Division of the High Court revealed that on several instances, the court has made orders as to refund of proceeds of corrupt practices by persons convicted. The following were observed; + + + +- A sample of the cases reviewed revealed that a total of UGX.24,734,116,888 is outstanding as a result of decisions of the courts for refund of proceeds of corrupt practices but these are not provided for in the consolidated accounts as receivable. + + + +- In my 2019/20 report for the DPP, I also observed that a total of UGX.18,940,206,109 remained uncollected in spite of the setup of a department within the Office of the DPP responsible for enforcing the recovery of compensation orders. + +- The gaps in the collection were partly attributed to the lack of a clear mandate to the DPP, especially in so far as recoveries of compensation would require civil processes which are outside the mandate of the criminal mandate of the Office of the DPP. + + + +- Whereas the mandate of recovery would be a reserve of the Attorney General who is vested with the mandate to litigate civil matters, it was noted that the ODDP has in place a unit for recovery of funds arising out of prosecutions in DPP while IGG also has another. + + + +Failure to enforce the recovery of court orders, denies government the funds that should have been generated and undermine the objective of recovering losses incurred by the government due to corrupt practices. + +It is therefore important that the Government comes up with a regulatory framework that addresses the inadequate legislation on recovery of proceeds of crime, provide for: civil asset recovery, detailed procedures in conviction based recovery, asset management and + +26 + + + + + + + + + + + +disposal, recovery of consequential benefits, and how to apply the recovered proceeds, among others. + +The Accounting Officer responded that the Ministry had initiated consultations with the Office of DPP, IGG and Attorney General for establishment of comprehensive procedures for recovery of proceeds of crime, provide for civil asset recovery, provide for detailed guidelines in conviction based recovery, provide for asset management and disposal, recovery of consequential benefits including application of the recovered proceeds. + +I await the outcome of the consultations. + +2.1.7. + +Audit of public investments + +a) Failure to Appraise Projects before funding - UGX.643,434Bn + +Section 3.18 of the Development Committee Guidelines provides that assessment of the project viability shall be measured by the following key indicators including: The Financial Cost Benefit Ratio (CBR), the financial Net Present Value (NPV) and the financial Internal Rate of Return (IRR). + +The guide further requires that all new Projects requiring funding should undergo four levels of approvals before they can be admitted into the Public Investment Plan (PIP). The four levels include; preparing a project concept in line with NDP (II), preparing a Project Profile demonstrating Key results, undertaking a prefeasibility study and undertaking feasibility study. + +Review of the Public Investment Plan for the year ended 30 th /06/2021, revealed that out of a sample of 371 projects, 245 projects (66%) with total Project values of UGX.643,434 Bn did not have feasibility studies undertaken. + +Failure to conduct feasibility studies may lead to the projects failing to achieve the desired project output, duplication or conflicting Government interventions thus causing wasteful expenditure. + +Management committed that going forward all projects will be appraised before inclusion in the PIP. In addition, the DC guidelines were being revised to take into consideration other exceptions, such as social projects, IT solutions among others. + +I await the outcome of the commitment. + +b) Non-compliance with the 70% Capital Threshold + +Section 2.2: Scope and Institutional arrangements of the Development Committee guidelines requires that Public investments admissible into the PIP shall be limited to public spending to acquire or establish physical assets necessary to facilitate production and delivery of economic, social and administrative services. Interventions that can be undertaken in the recurrent budget shall not be accommodated in the PIP. In this regard, for a project to be admitted into the PIP, its capital component shall account for at least 70% of the total project cost. It further states that interventions that can be undertaken in the recurrent budget shall not be accommodated in the PIP. + +27 + + + + + + + + + + + +Audit reviewed the Public Investment Plan for the year ending 30 th June 2021 and noted that 125 projects in the PIP with total budgets of UGX.4,410Bn did not meet the requirement of 70% capital intervention. The aggregate project expenditure on administrative functions was 75% while the aggregate capital expenditure requirements were only 25% of the entire total budget. I noted that some projects had 100% administrative expenditure. Refer to the table 8 below; + +Table 8 : Noncompliance with the 70% capital threshold + +No. of projects Total Budget - UGX Capital Expenditure - UGX Administrative expenditure - UGX % of administrative expenditure +125 4,410,809,884 1,087,332,424 3,323,477,460 75% + + + + +If this remains unchecked by the development committee, the government runs a risk of spending project funds on recurrent expenditure and thus failing to meet the targets set in + +the National Development Plan III. + +In addition, it was noted that the Development Committee does not consider software and intellectual properties as assets. This implies that any innovations in the ICT sector will continue to be unfunded, despite their potential to generative substantial returns. + +Management explained that Section 2.2 applies to new projects to be admitted into the PIP and the budget. This requirement is fully adhered to by the DC but as projects continue into execution, recurrent costs can go higher, depending on the requirements between OPEX and CAPEX. The current DC guidelines are currently under review to provide for among others social projects, Grants, software investments and intangible assets, among others. + +I advised the PS/ST to review the guidelines taking into account the project lifecycle and classification of assets to include intangible assets. + +c) Overstay of projects in the PIP - UGX.39,011Bn + +The Public Investment Management Reform Strategy provides that projects are supposed to be delivered on budget and on time in order to achieve the desired goals and objectives. + +Audit observed that in the sample of 371 projects, 342 projects (92.2%) with budgets totalling to UGX.39,011Bn had gone past their planned exit periods, that date as far back as the FY2010/11, with some projects having been extended for more than 12 years. Audit noted that the projects continued to receive DC approval for continued stay on the PIP It was noted that only 40% of the projects in the Public Investment Plan (PIP) were still within their expected time period. + +This was attributed to lack of adequate planning and readiness, delays in procurements, late acquisition of right of way, poor contract management and inadequate capacity to implement and evaluate ongoing projects, and unauthorized change in the scope, among others. + +28 + + + + + + + + + + + +This has caused delays in the completion of key projects, cost overruns and high commitment fees on foreign debt on account of low absorption and failure to complete projects on time. + +Management attributed the overstay to implementation challenges which often lead to extensions in the PIP. Management also informed me that the Ministry had now adopted the resolution not to admit any project into the PIP and budget before completion of all required feasibility studies and ensuring that challenges that often lead to project extensions such as delays in acquisition of right of way, Environmental and Social impact assessment, among others are fulfilled before project commencement. In addition, the Ministry’s leadership had directed that all old projects which continue to face implementation challenges either be cancelled and or renegotiated with the respective funders. + +I advised the PS/ST to devise a mechanism to improve the efficiency with which projects are implemented by ensuring that the causes identified above are addressed. + +d) Under absorption of funds by projects + +According to the approved Budget estimates of the FY2020/21, the Resource Envelope of Financial year 2020/21 approved by Parliament totals UGX.45,493.7Bn of which External Financing consists of Project Support of UGX.9,515.3Bn and General Budget Support + +UGX.2,906.7Bn. + +Audit obtained and reviewed cash inflows and expenditures of externally funded projects and noted poor absorption/performance of externally funded projects. Out of UGX.9,515.3Bn that was appropriated by Parliament, only UGX.4,516.5Bn (47%) was released. Relatedly, absorption of externally funded projects further declined in the year under audit. Out of the UGX.4,516.5Bn Disbursed for donor-funded projects, only UGX.2,937Bn was spent, representing 65.0% as compared to the 71% observed in the FY2019/20. The table 9 refers to; Table 9: Absorption of fund + +External financing Budget (UGX)Bn Release (UGX) Bn Expenditure (UGX)Bn Release Variance (UGX) Bn Expenditure Variance (UGX) Bn %of funds not released (UGX) Bn %of funds not Absorbed (UGX) Bn +9,515.30 4,516.50 2,937 4,998.80 1,579.50 53% 35% + + + + +The under absorption of externally funded projects in the FY2020/21 was mainly due to the following; + + + +- Implementation of unready projects, unrealistic conditions precedent to disbursements of funds which constrains decision making during project execution; +- Covid-19 restrictions that affected implementation of projects +- Delayed land acquisition; +- Failure to quantify counterpart funding requirements at the time of project appraisal + +and; + + + +- Cumbersome procurement processes as well as failure to undertake a comprehensive appraisal of projects. + +Continued underutilization of external financing may lead to an increase in commitment charges and disadvantage other projects that could have utilized those resources efficiently. 29 + + + + + + + + + + + +Management explained that a number of measures have been introduced to improve project absorption as follows; + +i) + +All projects to have feasibility studies before commencement and entry into the PIP, + +ii) + +Only sign loan agreements when conditions precedent have been fulfilled. + +iii) + +All readiness conditions including acquisition of right of way, availability of adequate financing etc. as stipulated in the Project Selection criteria should be met before admission into the PIP and budget, + +iv) + +Enforce and enhance contract management through adhering to procurement regulations and training of contract managers. + +v) + +A project management module in the Integrated Bank of Projects has been developed that will flag delay in a milestone and remind project managers on the required steps to facilitate expenditure. + +vi) + +The Ministry is encouraging that Project management and implementation is undertaken by certified Project Management Professionals (PMP) who have the right skills, professionals and belong to a body that updates management knowledge. In this way project managers will be charged for underperformance which leads to low absorption. + +vii) + +Training of staff involved in loan and contract negotiations, viii) Undertake continuous training of staff in project appraisal, selection, execution, and ex-post evaluation, + +ix) + +Establish a Project Preparation Fund to support preparation of feasibility studies and provide resources for preliminary activities. + +x) + +Enforce the use of the Integrated Bank of Projects (IBP) for submission, preparation, execution and ex-post evaluation of projects, + +xi) + +Adjusting to alternative strategies and approaches for project execution in light of Covid -19 restrictions and protocols e.g. virtual platforms, shifts for workers, embracing mass vaccination among others, + +xii) + +Fast track approval of the revised PPDA regulations, train staff on timely initiation of procurement processes and execution of contracts, xiii) Applying sanctions and rewards to efficient and inefficient Accounting Officers, respectively. + +I await the outcome of the above measures. + +2.1.8. + +Continued expenditure off the IFMS – UGX. 695,372,792,876 + +The government of Uganda introduced the IFMS with a core objective of ensuring accurate, reliable and complete financial information for Government Ministries, Departments, Agencies and Local Authorities as well as an increase in the transparency of public spending. + +From a sample of ministries, it was observed that several entities which are already on the IFMS system, continue to send huge block figures outside the system after charging expenditure codes on the system; however, the ultimate expenditure cannot be restricted to what was charged. It was also noted that a number of entities post these funds to commercial bank accounts a practice that was stopped many years back. + +30 + + + + + + + + + + + +It was also noted that a number of projects run by the various Ministries, departments and agencies are all spending off the IFMS. Although some of the bank accounts are held at Bank of Uganda, there are challenges of monitoring expenditure. + +Management explained that whereas a significant amount of projects and subventions have been set up on IFMS either directly through being converted into Votes, the remaining subventions and Institutions are undergoing rationalization which will reduce the number of agencies off the IFMS. As explained, GoU is also undertaking a re-implementation of the IFMS which will have all projects aligned to departments under the parent Ministry. + +The Ministry was to progressively set up the remaining agencies and stations as the exercise is ongoing coupled with resource availability to finance the IFMS rollout. + +I advised the PS/ST to ensure that all government expenditure is made on the IFMS and also provide a road map to ensure integration of all projects onto the IFMS. + +Other Information + +The Accounting Officer is responsible for the other information. The other information comprises the statement of responsibilities, a statement from the Hon. Minister of Finance, Planning and Economic Development, a statement from the Secretary to the Treasury, a statement from the Accountant General, and other supplementary information. The other information does not include + +the financial statements and my auditors’ report thereon. + +My opinion on the financial statements does not cover the other information and I do not express an audit opinion or any form of assurance conclusion thereon. + +In connection with my audit of the financial statements, my responsibility is to read the other information and, in doing so, consider whether the other information is materially consistent with the financial statements or my knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the work I have performed, I conclude that there is a material misstatement of this other information; I am required to report that fact. I have nothing to report in this regard. + +Responsibilities of Management for the Consolidated Financial Statements + +Under Article 164 of the Constitution of the Republic of Uganda, 1995 (as amended) and Section 45 of the Public Finance Management Act, 2015 (as amended), the Accounting Officers are accountable to Parliament for the funds and resources of the Government of Uganda. + +The Accountant General is appointed as the Accounting Officer and Receiver of Revenue for the Consolidated Fund. The Accountant General is therefore responsible for the preparation of financial statements in accordance with the requirements of the Public Finance Management Act 2015, and the Financial Reporting Guide 2018, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatements, whether due to fraud or error. + +In preparing the financial statements, the Accountant General is responsible for assessing the Government’s ability to continue delivering its mandate, disclosing, as applicable, matters related to affecting the delivery of the mandate of the Government of Uganda, and using the Financial Reporting Guide 2018 unless the Accountant General has a realistic alternative to the contrary. + +31 + + + + + + + + + + + +The Accountant General is responsible for overseeing the Government’s financial reporting process. + +Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements + +My objectives are to obtain reasonable assurance about whether the consolidated financial statements of government as a whole are free from material misstatement, whether due to fraud or error and to issue an auditor’s report that includes my opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISSAIs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. + +As part of an audit in accordance with ISSAIs, I exercise professional judgment and maintain professional skepticism throughout the audit. I also; + +- Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for my opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. + + + +- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing + + + +an opinion on the effectiveness of the government’s internal control. + + + +- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. + + Conclude on the appropriateness of management’s use of the going concern basis of + +accounting and, based on the audit evidence obtained, whether a material uncertainty exists + +related to events or conditions that may cast significant doubt on the government’s ability to + +deliver its mandate. If I conclude that a material uncertainty exists, I am required to draw attention in my auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify my opinion. My conclusions are based on the + +audit evidence obtained up to the date of my auditor’s report. However, future events or + +conditions may cause the government to fail to deliver its mandate. + + + +- Evaluate the overall presentation, structure, and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves a fair presentation. + +I communicate with the Accounting Officer regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that I identify during my audit. + +I also provide the Accounting Officer with a statement that I have complied with relevant ethical requirements regarding independence, and to communicate with him/her all relationships and other + +32 + + + + + + + + + + + +matters that may reasonably be thought to bear on my independence, and where applicable, related safeguards. + +From the matters communicated with the Accounting Officer, I determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. I describe these matters in my auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, I determine that a matter should not be communicated in my report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication. + +Other Reporting Responsibilities + +In accordance with Section 19(1) of the National Audit Act, 2008, I report to you, based on my work described on the audit of the GoU Consolidated Financial Statements that; except for the matters raised in the compliance with legislation section below, and whose effect has been considered in forming my opinion on the GoU consolidated financial statements, the activities, financial transactions and information reflected in the consolidated financial statements that have come to my notice during the audit, are in all material respects, in compliance with the authorities which govern them. + +Report on the Audit of Compliance with Legislation + +In accordance with Section 19 of the NAA 2008, I have a responsibility to report material findings on the compliance of Government, with specific matters in key legislations. I performed procedures primarily to identify findings but not to gather evidence to express assurance. + +The material findings in respect of the compliance criteria for the applicable subject matters are as follows; + +2.1.9. + +Use of prior financial years unspent funds + +Article 154(1)(b) of the 1995 Constitution of the Republic of Uganda (as amended), provides that no monies shall be withdrawn from the Consolidated Fund except where the issue of those monies has been authorised by an Appropriation Act, a Supplementary Appropriation Act or as provided under clause (4) of this article. The Article further provides that no monies shall be withdrawn from any public fund of Uganda other than the Consolidated Fund, unless the issue of those monies has been authorised by law. + +Section 17(3) of the Public Finance Management Act requires Votes which return funds to consolidated fund to revise their annual work plan, procurement plan and recruitment plan to take into account the unexpended money and the Minister responsible for the vote shall submit, as part of the budget for the preceding year, the revised work plan, procurement plan and recruitment plan. + +In the FY 20/21, it was observed that a total of UGX.26,098,586,831 was repaid into the consolidated funds from unspent monies from different votes. The said funds were however consequently utilized by the GOU without any form of appropriation. + +The spending of funds by the GOU without appropriation of the said funds is irregular. + +33 + + + + + + + + + + + +I advised the PSST to always seek supplementary approval from Parliament before using returned funds. + +John F. S. Muwanga + +AUDITOR GENERAL + +31 st December, 2021 + +34 + + + + + + + + + + + +2.2 REPORT AND OPINION OF THE AUDITOR GENERAL ON THE GOVERNMENT OF + +UGANDA CONSOLIDATED FINANCIAL STATEMENTS OF THE LOCAL GOVERNMENTS + +FOR THE YEAR ENDED 30 TH JUNE 2021 + +THE RT. HON. SPEAKER OF PARLIAMENT + +Opinion + +I have audited the accompanying consolidated financial statements of Local Governments, which comprise the Consolidated Statement of Financial Position as at 30 th June 2021, the Consolidated Statement of Financial Performance, the Consolidated Statement of Changes in Equity, the Consolidated Statement of Cash Flows, together with other accompanying Consolidated statements for the year then ended, and notes to the Consolidated financial statements, including a summary of significant accounting policies. + +In my opinion, the consolidated financial statements of Local Governments for the year ended 30 th June, 2021 are prepared in all material respects, in accordance with Section 52(b) of the Public Finance Management Act (PFMA), 2015 (as amended) and the + +Financial Reporting Guide, 2018. + +Basis for Opinion + +I conducted my audit in accordance with International Standards of Supreme Audit Institutions (ISSAIs). My responsibilities under those standards are further described in the Auditor’s Responsibilities for the audit of the Financial Statements section of my report. I am independent of the Local Governments in accordance with the Constitution of the Republic of Uganda (1995) as amended, the National Audit Act, 2008, the International Organisation of Supreme Audit Institutions (INTOSAI) Code of Ethics, the + +International Ethics Standards Board for Accountants’ Code of Ethics for Professional + +Accountants (IESBA Code) and other independence requirements applicable to performing audits of Financial Statements in Uganda. I have fulfilled my ethical responsibilities in accordance with the other requirements and the IESBA Code. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion. + +Key Audit Matters + +Key audit matters are those matters that, in my professional judgment, were of most significance in my audit of the consolidated financial statements of the current period. These matters were addressed in the context of my audit of the consolidated financial statements as a whole, and in forming my opinion thereon, and I do not provide a separate opinion on these matters. + +2.2.1. + +Payroll management in Local Governments + +Over the years, several reforms have been implemented in payroll management including salary, pension and gratuity payroll management decentralisation. Despite these reforms, challenges have persisted in the management of payroll in the Local Governments (LGs). As a result, I considered payroll management in Local Governments as a Key Audit Matter and identified crosscutting risks including; unrealistic budgeting for employees and pension costs, under absorption of wage funds, delayed access + +35 + + + + + + + + + + + +to the payroll, over payment of salaries, non-payment of salary and pension arrears, among others. + +The wage and Pension Payrolls of UGX.2,586.47 Bn constituted 46.1% of the overall Local Governments budget for 2020/2021 of UGX.5,615.86 Bn. + +I am aware that the Covid-19 Pandemic continues to significantly affect the implementation of payroll management activities. A number of Local Governments did not carry out planned recruitments resulting into huge unspent balances. + +Consequently, I designed procedures to address the risks in the payroll management in Local Governments. (Detailed findings are provided in individual entity reports) + +Based on the audit procedures performed, I made the following significant audit findings; + +No Observations Recommendations +a) Payroll management in Local Governments I advised the +Absorption of the released funds for payroll I reviewed funds absorption in 100 LGs and noted an under absorption of UGX79.62Bn. Out of the total receipts of UGX.1,539.37Bn, UGX.1,459.79Bn (94.8%) was absorbed. The unabsorbed balance was subsequently returned to the Consolidated Fund account as shown in the Table below.Table 10: Showing Level of Absorption for Wage, Pension and Gratuity Categ oryApproved Estimates (UGX) BnReleases (UGX) BnExpenditure (UGX) BnVariance (UGX) Bn%age Absorpti on Wage 1,327.65 1,337.68 1,272.10 65.57 95.1Pensi on/ gratu ity204.20 201.69 187.63 14.05 93.01,531.85 1,539.37 1,459.73 79.62 94.8 Source: OAG analysisThe under absorbed funds, denied the use of funds for other deserving service delivery areas.The under absorption was mainly attributed to Covid-19 pandemic and the lockdown, especially in the education sector. There was delayed deployment or non-recruitment of secondary school teachers for seed schools that had been recently constructed under the UgIFT projects. Accounting Officers to + liaise with the relevant + authorities and rollover + the un-implemented + activities to the + subsequent period. + + + + + + + + + + + + + + + + + + + + + + +b) Management of Payroll Deductionsi) Under/delayed remittance of Deduction Out of a sample of 84 LGs, I noted that whereas UGX 259.65 Bn was deducted from employees’ salaries to be remitted to URA, UCLA/UBA and other beneficiaries, I noted that contrary toI advised the Accounting Officers to ensure that necessary payroll changes are made timely before payments are effected. + + + + + + +36 + + + + + + + + + + + +Paragraph B-a(17) of the Uganda Public Standing Orders, 2010 I further advised the + +there were: + + Over remittances of UGX 2.16 Bn and + + + +- Under remittances of UGX 7.33 Bn as shown in table below. + +Table 11: Showing over and under remittance of deductions + +Over remittance Under remittance + +Accounting Officers to initiate strategies that ensure timely remittances of payroll deductions and the over remittances should Number of Amount Number of Amount be recovered. Details Entities with (UGX) Bn Entities with (UGX) over under Bn remittance remittance + +PAYE 13 0.92 65 5.76 UCLA/ 0 UBA 27 .92 48 1.15 + +LST 33 0.27 41 0.20 + +Others 31 0.50 49 0.22 Total 2.16 7.33 Source: OAG Analysis + +In addition, 85 LGs (79.4%) out of 107 delayed to remit the funds to UCLA/UBA, contrary to the requirement that payroll deductions are remitted concurrently with salary payments. The extreme + +delays were noted in the districts shown in the table below. + +Table 12: Average delay in remittance to UCLA + +Vote Number Vote Name Average Delay (in Days) 564 Amolatar DLG 38 604 Napak dlg 35 623 Nabilatuk dlg 46 610 Buhweju DLG 41 629 Obongi DLG 55 556 Yumbe DLG 35 633 Madi-Okollo DLG 35 572 Oyam DLG 36 Source: OAG Analysis + +I further noted that 48 LGs (45%) out of 107 delayed to remit the funds to URA, contrary to the requirement that withholding agents remit to URA any tax that has been withheld or that should have + +been withheld within fifteen days after the end of the month in which the payment subject to withholding tax was made by the + +withholding agent. The extreme delays were noted in Mbarara MC, + +Kaberamaido DLG, Buyende DLG and Buhweju DLG of 8, 9, 8 and 11 months respectively. + +Delayed/ non remittance of deductions to UCLA/UBA could lead to + +delays in up-dating loan status with the various financial institutions causing un-necessary default charges on employees + +while delayed remittance of PAYE attracts fines and penalties from the Revenue Authority. It further led to accumulation of arrears + +that had not been paid by 30 th June 2021. + +37 + + + + + + + + + + + + The Accounting Officers did not provide satisfactory explanations to justify the over remittances. For the under payments, the Accounting Officers attributed it mainly to suspension of staff salaries due to disciplinary issues, delayed removal of staff from the payroll and delays in resolving issues such as abscondment where payments were withheld. For delays in remittance of deductions, the Accounting Officers attributed it to delays in reconciliation of interface deduction files. +ii) Un-authorized loans deductions I noted that 48 LGs made unauthorised loans deductions totaling UGX 11.10 Bn. The deductions were from 6,835 employees that lacked letters of consent/ undertaking. I further noted that out of the 48 LGs, 23 LGs (48%) registered 1,916 employees with deductions totaling to UGX 3.77 Bn that did not exist in the Payroll Deduction Management System (PDMS), operated by PCA-Payroll Consults Africa.There is a risk of making deductions from staff that have no loans, which deprives them of their earnings. The inconsistencies in the PDMS undermine the relevance of the system and affect the integrity of the data therein.The Accounting Officers acknowledged the shortcoming and explained that letters of undertaking were being signed although file copies were not being retained for future reference. They further explained that the inconsistencies in the PDMS data were attributed to PCA who largely control and manage the system. I advised Government through MoPS to ensure that PCA makes the necessary data reconciliation and update the information on the PDMS regarding the deductions. I further advised the Accounting Officers to ensure that all loan applications are backed by letters of undertaking and approved through the PDMS. +c) Access to Payrolls i) Delayed access to salary payrollI noted that 2,178 newly recruited employees in 75 LGs delayed to access payroll, with delays ranging from 1-34 months. I further noted that 407 employees in 17 LGs had not yet accessed the payroll by the close of the financial year.Delayed access to payroll leads to demotivation of the affected staff and accumulation of salary arrears.The Accounting Officers attributed the shortcoming mainly to delayed submission of key personnel documents and data mismatch between IPPS & NIRA. I advised the Accounting Officers to sensitise the newly recruited employees on the timely submission of the key documents. I further urged the Accounting Officers to ensure timely validation of the newly recruited employees and to liaise with the relevant authorities to improve effectiveness and reliability of the MoPS/NID interface. + ii) Delayed access to pension payroll I noted that 780 pensioners delayed to access the pension payroll, with delays ranging from 1 to 24 months in 83 LGs (78%) out of 107 Local Governments. There were instances of extreme delays in 09 LGs extending over two years to 26 years. I further noted that 146 pensioners in 21 LGs had not yet accessed the pension payroll by the close of the financial year. I advised the Accounting Officers to liaise with MoPS to initiate strategies of rectifying the inconsistencies with NIRA interface and to cause the beneficiaries + + + + +38 + + + + + + + + + + + + Delayed access to the pension payroll leads to poor wellbeing of the affected retirees as well as accumulation of pension arrears.The Accounting Officers attributed the shortcoming to mainly mismatch of data between NIRA and IPPS interfaces such as wrong dates of birth, delayed submission of documents and inadequate budget allocation to cater for all retirees hence phased access to the pension payroll. to submit the essential documents in time. I further advised PS/ST to ensure adequate allocation of pension and gratuity funds. +d) Delayed deletion of staff from the salary payroll I noted that in 78 LGs, a total of UGX 1.13 Bn was paid to 635 staff who had either retired, transferred, absconded or died. These were payment for services that were not rendered to the LGs, hence loss of funds to Government.This was mainly attributed to delayed communication from supervisors of the affected staff as well as failure to delete affected staff due to lack of validation on the MoPS/ NID interface. I advised the Accounting Officers to sensitise all supervisors on when and how to communicate such cases so as to ensure prompt removal of staff from the payroll. I further urged the Accounting Officers to ensure that all staff are validated on the MoPS/ NID interface. I also advised MoPS to automate the deletion of retirees on mandatory grounds. +e) Misclassification of salary, pension and gratuity expenditure UGX 3.60 Bn in 33 LGs was charged on account codes other than those prescribed for salary, pension and gratuity.Misclassification of funds distorts budget performance and monitoring as well as the credibility of the financial statements.The Accounting Officers attributed the misclassification to insufficient budget provisions for pensions and gratuity. I advised the Accounting Officers to liaise with MoFPED to ensure that sufficient budget provisions are made. I advised the Accounting Officers to ensure that wage, pension and gratuity expenditure is charged on the appropriate codes. +f) Effectiveness and reliability of the IPPS/NID interface I reviewed the effectiveness and reliability of the IPPS/NID staff/pensioner/beneficiaries’ verification interface and made the following observations;  There was in-adequate sensitization and training in the use and navigation of the system  System was not reliable and effective  Operational challenges were encountered, including;  Un-reliable network  Failure to reflect changes in updated staff information  Mismatches of names that take long to be corrected by NIRA  Some information on the NIRA interface is sometimes not visible/available for instance date of birth and the I advised the Accounting Officers to engage MoPS and NIRA to have trainings conducted as well as resolve the system challenges. + + + + +39 + + + + + + + + + + + +photo which delays the verification exercise. + +The ineffectiveness of the system my affect the integrity of the + +IPPS payroll. + +The Accounting Officers noted the finding. + +Other Matter I consider it necessary to communicate the following matters other than those presented or disclosed in the financial statements. + +2.2.2. + +Implementation of the approved budget + +A review of the Local Governments approved budgets of UGX 5,615.86Bn out of which UGX 4,328.01 Bn was warranted/ availed by the end of the financial year. The total expenditure for the year was UGX 4,147.90 Bn out of which UGX 2,853.55Bn was spent on employee costs and transfers to other units implying that only UGX.1,294.35 Bn was available for implementation of service delivery outputs. + +From the procedures undertaken, I noted the following significant observations + +No Observations Recommendations +1.0 Existence of Strategic plans that are aligned to NDP-III Paragraph 5 of the budget execution circular for the financial year 2020/2021 cites poor alignment of Government Budgets with the National Development Plans. The PS/ST urged Accounting Officers to ensure that all activities for Financial Year 2020/2021 are aligned with NDP III and implemented accordingly. Regulation 26 (1) of the National Planning Authority (development of Plans) regulations require entities to submit to NPA their five-year development plans for certification before approval.This being the first year of implementation of the NDP-III, LGs were expected to prepare a strategic plan aligned to NDP III and ensure that these plans are certified by NPA. These plans would then be the basis for preparation of the entity annual plans.From the procedures undertaken I noted that out of 86 entities sampled, none had prepared a strategic plan that was aligned to NDP-III and certified by NPA. There is a risk that activities implemented by these entities during the financial year 2020/2021 were not aligned to the NDP-III which negatively affects the achievement of NDP-III objectives. I advised the Accounting Officers to follow up the matter with NPA and ensure that the entities have strategic plans that are aligned to NDP-III and certified by NPA. + + + + +40 + + + + + + + + + + + +2.1 a) Absorption of released funds Out of the total receipts for the financial year of UGX 4,328.01 Bn, UGX 4,147.90 Bn (95.8%) was spent by the Local Governments resulting in an unspent balance of UGX 180.11 Bn (4.2%). The unspent balance at the end of the financial year was remitted back to the consolidated fund account.Under absorption of released funds results in non- implementation of planned activities and negates the purpose for which funds were disbursed, thereby affecting the achievement of the objectives in the NDPIII. For example, implementation of USMID projects in Municipal Councils and UgIFT projects in DLGs was not undertaken.The Accounting Officers attributed failure to utilise funds to COVID-19 which affected the recruitment exercise, late release of USMID funds and delays in the procurement process and lotting policy of contract works under UgIFT. I advised the Accounting Officer to liaise with line Ministries to revote the funds, roll over the activities and ensure they are subsequently implemented. + b) Revenue Performance i) Local Revenue performance The local governments budgeted to receive UGX 217.38 Bn (revised) as total revenue for the year. However, only UGX 96.28 Bn representing 44.29% of their revised budgets was received performance.Under collection of local revenue results in non- implementation of planned activities which affects service delivery. The Accounting Officers of the respective local government votes attributed the shortfall in local revenue to COVID 19 effects.The Accountant General explained that Government of Uganda (GoU) had provided some interventions including vaccination and funding to revive the economy for activities to resume and stimulate revenue collection. I await the outcome of the interventions instituted by GoU to stimulate revenue collection.In addition, I urged the respective Accounting Officers to make budget revisions based on realistic forecasts in such unforeseen circumstances. + ii) Revenue from External financing The Local Governments budgeted to receive UGX 413.94 Bn as external/donor financing, out of which UGX 57 Bn (13.8%), was received Revenue shortfalls affect the implementation of planned activities. The Accounting Officer attributed this to the fact that the Local governments did not receive indicative planning figures from the donors for proper and realistic budgeting for the Financial Year under review. + + + + +41 + + + + + + + + + + + +iii) Off Budget Financing/Receipts I advise Government through the Ministry of Section 43 (1) of the PFMA 2015 states that all expenditure Finance to negotiate incurred by the government on externally financed projects and mainstream Donor in a financial year shall be appropriated by parliament. funding in the Local Paragraph 29 of the Budget Execution Circular for the Governments Budgeting Financial year states that if an external agency provides Process. funds in the course of implementation of the budget or any funds remain unspent at the expiry of an appropriation, these must be declared and a supplementary issued in line with the Public Finance Management Act 2015. + +I noted that 17 of the 86 LGs sampled received off-budget financing to a tune of UGX 14.20 Bn, which was never declared to the PS/ST and was also not appropriated by parliament. As such, no supplementary appropriation was issued as guided by the PS/ST. These funds were received directly from development partners for undertaking activities not budgeted for. Off-budget financing distorts planning, may result in duplication of activities, contrary to Section 43(1) of the PFMA 2015 and the budget execution guidelines issued by the PS/ST. + +The Accounting Officers explained this was due to limitations of the PBS system which has no provision for inputting such receipts and in some cases funds are received during the year which were not expected at the time of planning. + +42 + + + + + + + + + + + + iv) Quantification of activities and Implementation of planned outputsSection 13 (15, b) of the PFMA 2015 states that a policy statement submitted by a vote shall contain the annual and three months’ work plans, outputs, targets and performance indicators of the work plans. Regulation 11 (3) of PFMR 2016 requires that a vote prepares a work plan that indicates the outputs of the vote for the financial year; the indicators to be used to gauge the performance of the outputs and funds allocated to each activity.I sampled 86 entities for purposes assessing the extent of quantification and implementation of planned outputs I noted that out of the 850 outputs worth UGX 254 Bn sampled for review, 675 outputs (79%) worth UGX 182 Bn were fully quantified, 58 outputs (7%) worth UGX 34 Bn were partially quantified while 117 out puts (14%) worth UGX 38 Bn were not quantified at all.Out of a total of 675 quantified out-puts worth UGX.182 Bn assessed, 475 (70.4%) output worth UGX 90.10 Bn were fully implemented, 172 outputs (25.5%) worth UGX 86.70 Bn were partially implemented, while 28 (4%) out-puts worth UGX 4.90 Bn were not implemented at all. The graph below shows the extent of implementation;The Accounting Officers explained that implementation of activities was affected by the restrictions in movement imposed by government to curb the spread of Covid-19 and the fact that staff at the entities were working at 30% staffing levels. Failure to fully quantify the planned activities makes the assessment of implementation difficult while failure to implement planned activities denies citizens services.70%26%4%Extent of implementation of quantified out- putsFully Implemented Partially ImplementedNot implemented I advised the Accounting Officers to ensure that work plans and budgets are fully quantified and ensure that un-implemented activities are rolled over to the subsequent periods for implementation. + + + + + + +43 + + + + + + + + + + + +2.2.3. Operationalization of New Cities + +During the FY 2019/20 Government made a pronouncement upgrading ten (10) Municipal Councils (MCs) to City status effective 1 st July 2020. These include; Arua, Mbarara, Gulu, Jinja Fort portal, Mbale, Masaka, Soroti, Hoima and Lira + +During my audit of the above cities for the F/Year 2020/21, I noted the following; + +i) Government did not provide funding in the budgets of the newly created entities to enable them operate as cities. I noted that they continued to operate using the budgets of MCs. ii) The High Court in Masaka was petitioned by some individuals to review the guidelines issued by the Minister of Local Governments for the new cities on grounds that they contravened the procedures set out in the Local Government Act. iii) The cities lacked establishment structures against which the recruitment of the required human resource could be undertaken. iv) There was no guidance on the allocation/sharing of assets. This has become a contentious matter between the councils of the newly created cities and those of the hosting districts. + +As a result of the above, the high expectations of both the local political leadership and the general public have not been met. + +I advise Government to ensure that the new cities are fully operationalised. + +2.2.4. Capitation Grant for Printing of Home Study Materials + +The Government through MoES released UGX 23 Bn for printing of home study materials to facilitate home learning during the COVID 19 lockdown. + +However, I noted that the study materials were not procured and the districts were advised to send the money to the school bank accounts with a condition that they should not spend until instructed to do so. + +At the time of writing this report, the home study materials had not been printed + +and the funds were either used or lying idle on the schools’ bank accounts. + +Consequently, the objective of ensuring that learners continued to learn during the lockdown was not achieved. The Accounting Officers explained that no instructions were given as indicated by the MoES. + +I advise Government through MoES to always provide timely guidance and coordination in such events that require urgent government interventions. + +I also recommend that schools are given guidance on the utilization of the funds. + +44 + + + + + + + + + + + +2.2.5. Un-Accounted for Funds + +Section 43(2) of the of the Local Governments Financial and Accounting Regulations, 2007 require administrative advances to council employees to be authorized by the executive and accounted for within a month. + +I noted expenditure of UGX 3.37 Bn paid out for implementation of various activities in the LGs remained unaccounted at year-end as shown below + +Table 11: Entities with unsupported expenditure + +Sn Entity Amount (UGX) Bn +1. ABIM DLG 1.41 +2. BUGWERI DLG 0.25 +3. BUKEDEA DLG 0.01 +4. Hoima MC 0.06 +5. Kikuube DLG 0.07 +6. Kiryandongo DLG 0.01 +7. KOLE DLG 0.26 +8. MADI-OKOLLO DLG 0.05 +9. MOROTO DLG 0.03 +10. MOROTO MC 1.19 +11. OYAM DLG 0.03 +12. Total 3.37 + + + + +In the circumstances, it was not possible to confirm that the funds were used for the intended purposes. + +I advised the Accounting Officers to ensure that funds are either accounted for or else be recovered from the responsible officers. + +2.2.6. + +Irregular payment of Salary and Salary arrears to staff in Apac DLG + +I reviewed the payroll data (IPPS) and the IFMS payments of Apac District Local Government and noted that the district irregularly paid out UGX 0.57 Bn to 25 individuals and to the estate of the deceased staff as salary and salary arrears without any supporting documentation. The amounts were irregularly expended leading to the overstatement of salary expenditure. + +I observed that much as there were no payroll deductions made for Apac Municipal Council, Apac Sub County, Chegere Sub County, Ibuje Sub County and Akokoro Sub County, the district transferred a total UGX 0.06 Bn from the wage provisions to the same entities with no justification. + +An interview with the Human Resource Officer revealed that these payments were not generated by the Human Resource Department. + +The Accounting Officer explained that investigations were going on by CID + +Headquarters. + +In the meantime, I have instituted a forensic audit on the matter. + +45 + + + + + + + + + + + +2.2.7. + +Failure to submit Financial Statements for consolidation + +Section 52(1)(b) of the Public Finance Management Act (PFMA), 2015 requires that the Accountant General shall within three months after the end of each financial year prepare and submit to the Minister and the Auditor General the consolidated annual accounts of the local governments. + +A review of the consolidated financial statements of Local Governments revealed that 3 District Local Governments and 6 Municipal Councils with a total actual expenditure of UGX 163.08 Bn were not submitted for consolidation by the respective Accounting Officers as shown table below: + +Table 12 un-consolidated local governments Sn + +SN Entity Category Approved/revised Budget(UGX) Bn Actual Expenditure (UGX) Bn +1 Arua DLG 71.71 52.29 +2 Butaleja DLG 31.68 29.84 +3 Bududa DLG 25.82 24.61 +4 Arua MC 23.50 21.85 +5 Ntungamo MC 8.41 6.68 +6 Mityana MC 8.38 8.10 +7 Kumi MC 6.11 5.72 +8 Ibanda MC 11.00 10.25 +9 Nebbi MC 6.08 3.74 +Total 192.69 163.08 + + + + +Source: Consolidated financial statements and schedules + +The Accountant General explained that without any justification, the above entities failed to submit the financial statements contrary section 51 of the PFMA, 2015. These accounts were therefore not quality checked for compliance + +by the Accountant General. + +Failure to include all individual local government votes in the consolidated financial statements means that the consolidated balances of revenue, expenditure, assets and liabilities do not represent the actual Local Government consolidated position. + +I advised the Accountant General to identify and address the specific challenges that prevented the entities from submitting their Financial Statements for consolidation. + +46 + + + + + + + + + + + +2.2.8. + +Implementation of UgIFT project activities + +a) + +Status of completion of projects + +I undertook audit inspections of civil works in 24 Seed Schools and 41 Health Centre IIs located in a sample of 62 Districts and Municipal Councils and noted that 53 projects (80%) had not been completed, 11 projects (17%) had been completed while 01 project (2%) was not implemented. Notably, Amolatar, Oyam, Luwero, Sironko, Kamwenge and Kanungu Districts completed the construction of the seed schools and Health Centres. + +The inspection results are summarised in the table below; Table 13: Status of implementation of UgIFT projects + +SN. Sector Status of implementation No. of projects %age Status Commencement period +1 Education Completed 2 8.3% Previous financial year(s) + Completed and handed over 1 4.2% Previous financial year(s) + Incomplete 20 83.3% Previous financial year(s) + 1 4.2% 2020/2021 + Subtotal 24 100% +2 Health Completed 3 7.3% Previous financial year(s) + 3 7.3% 2020/2021 + Completed and handed over 1 2.4% Previous financial year(s) + 1 2.4% 2020/2021 + Incomplete 19 46 % Previous financial year(s) + 13 32% 2020/2021 + Not implemented 1 2.4% Not started + Subtotal 41 100% +Grand Total 65 + + + + +Source: OAG analysis + +I further noted that out of the 53 incomplete projects, 36projects had exceeded their planned completion dates by an average of 11 months. + +The Accounting Officers attributed the delays in project completion to; + +a) The Covid-19 lockdown measures which limited the movement of materials and labour, b) The contractors abandoning the sites, c) Funds not being re-voted to the entities in time, d) Delayed hybrid procurements, e) Late release of funds, f) Poor terrain leading to impassable roads to some projects sites, g) Low capacity of the contractor in terms of manpower, machinery, and multiple projects. + +Consequently, the projects planned to be completed within the year were not completed, and as such the intended beneficiaries were denied services. + +I advised the Accounting Officers to liaise with the sector Ministries to ensure that the implementation bottlenecks identified above are addressed. + +47 + + + + + + + + + + + +b) Land Ownership The Circular issued by the MoFPED in May 2018 requested all Local Governments to ensure that all Government projects are constructed on land with proof of ownership or a Memorandum of Understanding (MOU) with landowners; + +I observed 4 projects that did not have titles or MOUs for the land on which the seed schools and health centers were constructed as shown in the table below: + +Table 14: UgIFT projects without land titles + +SN District/ Municipal Council Name ofproject Contract price (UGX) Bn Amount spent (UGX) Bn Status +1 Kamwenge DLG Construction of Bwizi Seed school 2.02 1.92 Completed and handed over +2 Mityana DLG Upgrade of Busunjju HC II to HC III 0.66 Incomplete +3 Kyotera DLG Upgrade of Nyangoma HC II to HC III 0.66 0.28 Incomplete +4 Moroto DLG Construction of Rupa Seed secondary school 1.94 1.70 Incomplete +Total 5.28 3.90 + + + + +Source: OAG analysis Lack of land titles exposes the projects to disputes. + +I advised the Accounting Officers to acquire land titles or MoUs for all the UgIFT projects. + +c) + +Procurement of ICT equipment, Laboratory kits, and chemical reagents The guidance on procurement of ICT equipment, science kits, and chemical reagents for seed schools by the Ministry of Education and Sports to all Accounting Officers on 28th August 2020 referenced EPD 192/335/01; which required the procurement to be conducted after successful completion and handover of the facilities. + +I noted that ICT equipment, Science kits and chemicals were procured for seed schools that had not been completed. The equipment were instead being kept in inappropriate storage facilities exposing them to a risk of obsolescence. + +The Accounting Officers pledged to engage the contractors to ensure that construction works on the laboratories are completed. + +I advised the Accounting Officers to ensure that procurements for the equipment are only effected when the construction works have been + +48 + + + + + + + + + + + +completed. I also urged the Accounting Officer to ensure that items are properly stored. + +Other Information + +The Accounting Officer is responsible for the other information. The other information comprises the statement of responsibilities of the Accounting Officer; the commentaries by the Head of Accounts and the Accounting Officer; and other supplementary information. The other information does not include the financial statements and my + +auditors’ report thereon. My opinion on the financial statements does not cover the + +other information and I do not express an audit opinion or any form of assurance conclusion thereon. + +In connection with my audit of the financial statements, my responsibility is to read the other information and, in doing so, consider whether the other information is materially consistent with the financial statements or my knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the work I have performed, I conclude that there is a material misstatement of this other information; I am required to report that fact. + +I have nothing to report in this regard. Management Responsibilities for the Financial Statements + +Under Article 164 of the Constitution of the Republic of Uganda, 1995 (as amended) and Section 45 of the Public Finance Management Act, 2015, the Accounting Officer is accountable to Parliament for the funds and resources of the local governments. + +The Accounting Officer is also responsible for the preparation of financial statements in accordance with the requirements of the Public Finance Management Act, 2015 and for such internal control as management determines necessary to enable the preparation of financial statements that are free from material misstatement whether due to fraud or error. + +In preparing the financial statements, the Accounting Officer is responsible for assessing the local government’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting, unless the Accounting Officer has a realistic alternative to the contrary. + +The Accounting Officer is responsible for overseeing the local governments’ financial reporting process. + +Auditor’s Responsibilities for the Audit of the Financial Statements + +My objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or + +error and to issue an auditor’s report that includes my opinion. Reasonable assurance is + +a high level of assurance but is not a guarantee that an audit conducted in accordance with ISSAIs will always detect a material misstatement, when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users, taken on the basis of these financial statements. + +49 + + + + + + + + + + + +As part of an audit in accordance with ISSAIs, I exercise professional judgement and maintain professional scepticism throughout the audit. I also; + +- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for my opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. + + + + + +- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the local governments’ internal control. + + + +- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the management. + + Conclude on the appropriateness of management’s use of the going concern + +basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the local government’s ability to continue as a going concern. If I conclude that a material uncertainty exists, I am required to draw attention in my auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify my opinion. My conclusions are based on the audit evidence obtained up to the date of my auditor’s report. However, future events or conditions may cause the local government to cease to continue as a going concern. + +- Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. + + + +I communicate with the Accounting Officer regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that I identify during my audit. + +I also provide the Accounting Officer with a statement that I have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on my independence, and where applicable, related safeguards. + +From the matters communicated with the Accounting Officer, I determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. I describe these matters in my auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, I determine that a matter should not be communicated in my report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication. + +50 + + + + + + + + + + + +Other Reporting Responsibilities + +In accordance with Section 19 (1) of the National Audit Act, 2008, I report to you, based on my work described on the audit of Financial Statements, that; except for the matters raised in compliance with legislation section below, and whose effect has been considered in forming my opinion on the financial statements, the activities, financial transactions and information reflected in the financial statements that have come to my notice during the audit, are in all material respects, in compliance with the authorities which govern them. + +Report on the Audit of Compliance with Legislation + +There were no material findings in respect of the compliance with legislation. + +John F.S. Muwanga AUDITOR GENERAL + +19 th December, 2021 + +51 + + + + + + + + + + + +2.3 REPORT OF THE AUDITOR GENERAL ON THE CONSOLIDATED SUMMARY STATEMENT OF FINANCIAL PERFORMANCE OF PUBLIC CORPORATIONS AND STATE ENTERPRISES FOR THE YEAR ENDED 30 TH JUNE 2021 + +2.3.1. Review of the Consolidated Summary Statement of Financial Performance of + +Public Corporations and State Enterprises + +According to Section 3 of the Public Finance Management Act (PFMA), 2015 (as amended); “A Public Corporation means an authority established by an Act of Parliament other than a local Government which receives a contribution from public funds, and any public body which in a financial year receives any income + +from public funds”. Similarly, “A State Enterprise means a body established + +under any Act other than the Company’s Act or a local Government council, and + +a company registered under the company’s Act in which the Government or a + +state enterprise has controlling interest”. + +In line with the PFMA, 2015, I reviewed the Consolidated Summary Statement of the Financial Performance of Public Corporations and State Enterprises for the year ended 30 th June 2021, and noted the following; + +a) + +Completeness of the Consolidated Summary Statement of Performance + +Section 52 (1c) of the Public Finance Management Act (PFMA), 2015 requires the Accountant General, within three months after the end of each financial year, to prepare and submit to the Minister responsible for Finance and the Auditor General the consolidated summary statement of the financial performance of Public Corporations, State Enterprises and Companies where Government has controlling interest. + +I noted that 46 public corporations and state enterprises were supposed to be consolidated in accordance with Section 52 (1c) of the Public Finance Management Act (PFMA), 2015. However, I noted that seven (7) entities were not consolidated in the consolidated summary statement submitted by the Accountant General. + +Furthermore, Government shareholding in twelve (12) Public Corporations and State Enterprises was not disclosed in the consolidated summary statement of performance. This was caused by the absence of a comprehensive register of + +Public Corporations and State Enterprises. + +In the absence of a complete register of all consolidating public corporations and state enterprises, I was not able to ascertain the completeness of the submitted consolidated summary statement of financial performance of public corporation and state enterprises. + +I advised the Accountant General to establish a comprehensive register of all Public Corporations and State Enterprises with detailed information required for consolidation. + +b) + +Failure to submit financial statements for consolidation + +52 + + + + + + + + + + + +Section 51(2) of PFMA, 2015 provides that, the Accounting Officer of a public corporation shall, within two months after the end of each financial year, using the format prescribed by the Accountant-General, prepare and submit to the AccountantGeneral, a summary statement of financial performance of the public corporation and give a copy of the summary statement to the Secretary to the + +Treasury. + +A review of the consolidated summary statement of performance of Public Corporations and State Enterprises revealed that two (2) entities did not submit performance returns to the Accountant General for consolidation as indicated in the table 15 below; + +Table 15: Entities not Consolidated, but Disclosed in summary statement + +S/N Enterprise Government Holding +1. Uganda Air Cargo Corporation Not ascertained +2. Uganda Refinery Holding Co Not ascertained + + + + +c) + +Missing Entities in the consolidated summary statement + +Section 52(1) c of PFMA 2015 as amended requires the Accountant General within three months after the end of each financial year to prepare and submit to the Minister and the Auditor General a consolidated summary statement of the financial performance of public corporations and state enterprises and Companies where Government has a controlling interest. + +I noted that three (3) entities were neither reported nor disclosed in the consolidated summary statement of performance. (Table 16 below refers). + +Table 16: Entities neither reported nor Disclosed in the consolidated summary statement + +S/N Enterprise Remarks +1 Uganda National Oil Company Limited Not reported in the previous year +2 Nakivubo War Memorial Stadium Not reported in the previous year +3 Uganda Crane Industries Ltd. Not reported in the previous year + + + + +This implies that the consolidated summary statement of financial performance of public corporations and state enterprises does not reflect the accurate status of government ownership and interest and as such I was unable to assess and conclude on their performance. + +I advised the Accountant General to issue comprehensive guidelines in respect of all Public Corporations and state Enterprises to be consolidated to enable assessment of financial performance. + +53 + + + + + + + + + + + +2.4.1 Review of Financial Performance of Public Corporations and State Enterprises + +The Government of Uganda (GoU) owns shares in a number of Public Corporations and State Enterprises. These enterprises, which are independently managed, are supposed to operate efficiently, make profits and pay dividends to Government. Their financial performance is therefore of interest to Government. + +As noted in my previous reports, the Government Consolidated Summary Statement of financial performance of public corporations and State enterprises only reports on; government shareholding, total income, total expenditure, dividends declared, retained earnings, and net worth of entities. However, key performance assessment parameters, such as; profitability, return on assets, liquidity assessment, long-term debt, and interest cover are not reported on. As a result, I computed these ratios using audited financial statements for further analysis of performance of Public Corporations and State Enterprises, where applicable. + +Out of the 46 Public Corporations and State Enterprises, seven (7) entities were not assessed because they had not submitted audited accounts at the time of writing my report. Table 17 below refers; + +Table 17: Entities not assessed + +S/N Entity Government Stake +1. Uganda National Oil Company Limited 100% +2. Nakivubo War Memorial Stadium 100% +3. National Housing and Construction Company Limited 51% +4. Uganda Telecom Limited Not known +5. The Micro Finance Support Centre Ltd 100% +6. Uganda Seeds Limited 100% +7. Uganda Livestock Industry 100% + + + + +From the financial performance analysis undertaken, I noted the following; + +a) Profitability of Enterprises + +I noted that thirteen (13) out of the twenty-six (26) Public Corporation and State Enterprises analysed made profits/surplus in the year under review, with Uganda Electricity Transmission Company Limited (UETCL), Uganda Electricity Generation Company (UEGCL) and National Water and Sewerage Corporation (NWSC) posting profits of UGX 112Bn, UGX 91.9Bn and UGX 47.8Bn, respectively. Table 18 below refers. + +54 + + + + + + + + + + + +Table 18: Profitability of Public Corporation and State Enterprises + +No Entity Profit After Tax / Surplus for the year (UGX in Bn) Increase/ Decrease + 2020/21 2019/20 +1. Uganda Electricity Transmission Company Limited (UETCL) 112.00 54.02 57.97 +2. Uganda Electricity Generation Company (UEGCL) 91.93 2.80 89.14 +3. National Water and Sewerage Corporation (NWSC) 47.79 27.44 20.35 +4. Kira Motors Corporation 26.09 26.10 +5. Uganda Development Bank Limited 22.11 10.14 11.97 +6. Housing Finance Bank Limited 20.69 22.50 (1.80) +7. Pride Micro Finance (Dec 2020) 12.69 12.79 (0.98) +8. Post Bank Uganda Limited (Dec 2020) 10.07 8.38 1.69 +9. Uganda Printing and Publishing Corporation 6.25 4.22 2.033 +10. NEC Luwero 3.68 3.38 0.30 +11. Insurance Training college 2.42 0.015 2.42 +12. Uganda Wildlife Conservation education Centre 1.44 1.74 (0.30) +13. Mandela National Stadium 1.08 (0.23) 1.38 +14. Uganda Property Holdings Limited 0.85 0.85 +15. Uganda Development Corporation (Group) 0.63 (7.32) 7.95 +16. NEC UZIMA 0.15 0.26 (0.12) +17. Nile Hotel International Limited 0.08 1.24 (1.16) +18. Uganda Energy Credit Capitalization Co. Ltd (0.87) (0.59) (0.28) +19. Kilembe Mines Limited (0.91) (2.81) (1.10) +20. New Vision Printing and Publishing Company Limited (7.11) 2.66 (9.76) +21. Uganda Electricity Distribution Company Limited (UEDCL) (10.90) (10.12) (0.78) +22. Uganda Broadcasting Corporation (19.32) (7.62) (11.71) +23. Uganda Civil Aviation Authority (UCAA) (27.50) (13.74) (13.78) +24. Uganda Railways Corporation (37.78) (61.39) 23.60 +25. Uganda Wildlife Authority (UWA) (45.05) 5.54 (50.59) +26. Uganda National Airlines Company Limited (164.60) (102.45) (62.12) + + + + +The general performance of some of the Public Corporations and State enterprises slightly improved compared to the previous year with companies such as Uganda Electricity Transmission Company Limited (UETCL), Uganda Electricity Generation Company (UEGCL) and National Water and Sewerage Corporation (NWSC) posting more than double the profits of the previous year. This was mainly attributed to government efforts to ease several COVID-19 restrictions, allowing certain businesses to reopen and government intervention of revamping the economy. + +I further noted that entities including Uganda Railways Corporation, Kilembe Mines Limited, Uganda Civil Aviation Authority (UCAA) and Uganda National Airlines Company Limited made losses as at the end of the financial year. However, it should be noted that this is the second year of operation of Uganda National Airlines in a highly competitive industry. + +55 + + + + + + + + + + + +I advised the entities to develop clear strategies to improve operations and adopt efficient financial management practices to lower operating costs and increase revenue generation. Government should also consider recapitalizing the most affected entities to revamp their operations. + +b) Return on Assets + +The Return on Assets (ROA) shows the percentage of how a company’s assets are generating revenue. It measures management’s efficiency in using the enterprise’s assets to generate earnings. Although companies that require large + +initial investments will generally have lower return on assets, ROAs below 5% are generally considered inadequate. + +Apart from eleven (11) companies, which include; Uganda Wildlife Conservation education Centre, Uganda Electricity Transmission Company Limited, Kira Motors + +Corporation, Uganda Printing and Publishing Corporation, Insurance Training + +College, NEC Constructions Construction Works and Engineering Limited, NEC Uzima, NEC Luwero, Insurance Regulatory Authority of Uganda and National Drug Authority which posted a favourable ROA, the rest of the entities where the ratio is applicable, registered a poor performance on ROA of below 5%. + +Table 19: Returns on Assets + +No. Entity Return on Asset (%) + 2019/20 2020/21 +1. Uganda Wildlife Conservation education Centre 49.9 48.1 +2. Kira Motors Corporation 41 43 +3. NEC Constructions Construction Works and Engineering Limited 10.8 31 +4. Uganda Electricity Transmission Company Limited 26.2 26.4 +5. Uganda Printing and Publishing Corporation 2.16 22.06 +6. NEC UZIMA 6.3 12.1 +7. NEC Luwero 12.5 10 +8. Pride Micro Finance (Dec 2020) 4 3.3 +9. Uganda Development Bank Limited 3.16 2.91 +10. Housing Finance Bank Limited 2.9 2.5 +11. Post Bank Uganda Limited (Dec 2020) 2.57 2.25 +12. Uganda Development Corporation (Group) -405.4 1.8 +13. Uganda Post Limited 1 1 +14. Uganda Electricity Generation Company 0.69 0.79 +15. Mandela National Stadium -0.16 0.6 +16. Uganda Property Holdings Limited 0.4 0.33 +17. National Water and Sewerage Corporation 1.45 0.26 +18. Nile Hotel International Limited 0.67 0.04 +19. New Vision Printing and Publishing Company Limited 5.28 -0.4 +20. Uganda Electricity Distribution Company Limited -0.56 -0.56 +21. Uganda Railways Corporation -1.66 -1.03 +22. Uganda Civil Aviation Authority 0.48 -2.4 + + + + +56 + + + + + + + + + + + +23. Uganda Broadcasting Corporation -2.5 -5.88 +24. Kilembe Mines Limited -6.72 -10 +25. Uganda National Airlines Company Limited -12.2 -13.1 +26. Uganda Wildlife authority 6.84 -21.75 +27. Soroti Fruits Limited -1513 -1590.2 + + + + +c) Dividends + +I noted that, only Uganda Property Holdings Limited and Housing Finance Bank Limited proposed a dividend pay-out of, UGX 400,000,000 and UGX 1,495,222,000, respectively, in the year under review, Nile Hotel International Limited, Uganda Development Corporation (Group) and Housing Finance Bank Limited paid out dividends declared for the previous year totalling UGX. + +2,269,944,381. + +I further noted that although some companies were making significant amount of profits, they were not paying dividends to Government. + +The enterprises attributed the non-payment of dividends to the loss-making positions and retention of funds to fund planned investments/projects. + +I advised the Accountant General to ensure that profit making enterprises provide a share of government dividend. + +d) Liquidity Assessment + +I analysed the ability of Public Corporations and State enterprises to meet their short-term financial obligations by comparing the current assets and current liabilities using the Current Ratio analysis. Generally, the ratio of Current Assets to Current Liabilities between 1.5 and 2 is desirable, although acceptable current ratios vary between different industries or sectors. + +I noted that eighteen (18) entities were above the ideal threshold, implying that they are able to meet their liabilities as they fall due. three (3) entities had ratios below 1.0 and may have a challenge of paying their obligations as and when they fall due. The table 20 below refers. + +Table 20: Enterprise Liquidity + +No Entity Current Ratio + 2020/21 2019/20 +1. Nile Hotel International Limited 26.24 9.9 +2. Soroti Fruits Limited 25.7 122.38 +3. NEC Luwero 11.9 5.1 +4. NEC AGRO 11.4 2.7 +5. Uganda Development Corporation (Group) 9.3 4.3 +6. Uganda Electricity Distribution Company Limited 6.9 7.4 + + + + +57 + + + + + + + + + + + +7. Uganda Property Holding 3.9 2.5 +8. Uganda National Airlines Company Limited 2.7 6.2 +9. Uganda Printing and Publishing Corporation 2.64 1.77 +10. New Vision Printing and Publishing Company Limited 2.6 2.68 +11. Uganda Railways Corporation 2.6 3.09 +12. NEC UZIMA 2.3 0.8 +13. Uganda Electricity Transmission Company Limited 1.9 1.66 +14. NEC Constructions Construction Works and Engineering Limited 1.4 1.3 +15. National Water and Sewerage Corporation 1.37 1.18 +16. Uganda Wildlife Conservation education Centre 1.3 1.12 +17. Uganda Post Limited 1.1 1.2 +18. Uganda Wildlife authority 1.09 1.93 +19. Mandela National Stadium 0.73 0.49 +20. Kilembe Mines Limited 0.56 1.3 +21. Uganda Electricity Generation Company 0.43 0.53 + + + + +In addition, I noted that the customer deposits in the four banking institutions grew to an average of UGX.344Bn up from UGX.264 Bn in the prior year. Relatedly, the loan to deposit ratio averaged to 66% up from 64% which is still desirable at individual bank rating. The Table 21 below refers; + +Table 21: Liquidity assessment for financial institutions + + Institution Liquidity assessment for banking institutions +SN NBank Current ratio CustomerDeposits/loan s Net liquid assets Loan to deposit +1. Housing 1 Finance Bank 1.45 1.44 654.1 559.8 35% 31% 84.10% 98% +2. Pride 2 Micro Finance 1.62 1.56 174.37 140.82 0 0 105% 80% +3. Post 3 Bank 1.11 1.13 0 0 0 0 74.50% 77% +4. Uganda 4 Development Bank 6.3 4.42 547 354 0 0 0 0 + Total 10 9 1375 1055 35% 31% 264% 255% + Average 3 2 344 264 9% 8% 66% 64% + + + + +I further noted that despite the low activity during the COVID-19 period, Loans and advances to customers increased on average from UGX.336Bn to UGX.405Bn in the current year. + +58 + + + + + + + + + + + +Table 22 : Loans and Advances performance + +SN Bank Prior period (UGX- Billions) Current period (UGX-Billions) +1 Housing finance bank 550.60 553.50 +2 Pride Micro Finance 171.76 183.39 +3 Postbank 267.00 334.70 +4 Uganda Development Bank 354.00 547.00 + Average 335.84 404.65 + + + + +The performance of the 4 institutions was commendable. e) Interest cover + +I analysed the interest cover of Public Corporations and State enterprises that had taken loans to establish their ability to service the loans through payment of interest. Interest cover looks at how many times a Company’s operating profits exceed its interest payable. A cover of two (2) times and above is usually considered to be safe, depending on the nature of industry. The implication is that a company is most likely to meet its interest payments. + +I noted that of the 3 companies/enterprises which were financing loans, two (2) (NWSC and the Insurance Training College) were better placed to meet their interest obligations, while the New Vision Printing and Publishing Company Limited was not. The Table 23 below refers. + +Table 23 : Enterprises' ability to service loan obligations + +No. Entity Profit Before Interest Interest (Financing cost) Interest Cover (No. of times) (2020/21 Interest Cover (No. of times) (2019/20 +1 National Water and Sewerage Corporation 18.68 6.95 2.7 28.3 +2 New Vision Printing and Publishing Company Limited (0.34) 0.59 -0.6 28.2 +3 Insurance Training college 2.42 1.06 2.30 0.001 + + + + +Overall Conclusion/Recommendation + +Whereas government policy to invest in critical sectors of the economy is commendable, it is important to ensure that such investments are operating efficiently and effectively to meet sector objectives. There is need for government to strengthen the supervision and monitoring of these entities. + +Although government efforts to ease several COVID-19 restrictions, allowing certain businesses to reopen improved performance of certain enterprises, the COVID 19 pandemic affected operations of a number of entities, and Government needs to assess its impact on the critical enterprises and corporations and provide the necessary guidance and assistance. + +59 + + + + + + + + + + + +PART 3: SECTORAL AND LOCAL GOVERNMENTS CROSS CUTTING FINDINGS + +This part contains cross cutting key findings noted in the respective sectors and cross cutting service delivery issues in Local Governments. + +3.0. Sectoral Key Findings 3.1. PUBLIC SECTOR MANAGEMENT + +3.1.1. Government readiness to implement the programmatic approach + +Government with effect from 1 st July 2020 started the implementation of NDP III as a successor plan to the NDP II. The overall objective of the NDP III is to increase household income and improving the quality of life of Ugandans. This plan is implemented using the programme approach to planning, budgeting, implementation and results reporting. This programme was also designed to address challenges faced in implementation of prior national development programmes which included uncoordinated planning, weak harmonization, limited sequencing of programmes, and poor linkages between outcomes and outputs. + +I reviewed the readiness of government to effectively implement the NDP III in order to achieve the desired outcomes. From the procedures undertaken, I noted that significant strides have been made towards effective implementation of the plan. + +Areas of commendable performance include; provision of guidelines to entities to facilitate transitioning to programme approach, development of the Programme Implementation Action Plans (PIAPs) for all programmes, development of strategic plans that are aligned to the NDP III by a number of entities in government, operationalization of Programme Working Groups (PWGs) to coordinate programme activities and development of guidelines for the programme working groups. + +Despite these achievements, there are a number of areas that need government attention if the NDP III overall objective is to be achieved. These include; + +a) The shift from sector to programme planning and budgeting requires tracking progress towards attainment of results. This therefore implies that accountability and oversight processes should be re-aligned towards achievement of results as defined in the NDP III framework. This realignment has however not been fully attained. + +b) + +The shift from sector to programme planning and budgeting also requires a shift of the current government statistical processes to processes that are capable of delivering outcome statistics as defined in the NDP III. The current data systems therefore have to be revised so that they produce results data rather than output data. In addition, surveys and production of key results statistics need to be aligned to the NDP III M&E processes to enable real time capture of data and monitoring of the achievement of programme results. + +c) + +The shift from sector to programme planning and budgeting also implies that government annual performance reporting will now be based on programmes rather than sectors. The challenge however is that a number of programme + +60 + + + + + + + + + + + +working groups are still struggling to constitute themselves in order to do effective programme reporting which is likely to affect effective coordination and supervision of programme activities. + +d) The shift from sector to programme planning and budgeting also implies that budgets of MDAs and LGs are now developed and approved at programme level although appropriation and spending remain at vote level. However, a number of MDAs are grappling with understanding the new system. + +With 2 years into the implementation of NDP III, a number of MDAs and LGs have not fully transitioned their operations to the new programme based planning and budgeting and this is likely to affect the achievements of the NDP III objectives. + +Government should support the National Planning Authority in capacity building of MDAs and LGs staff such as planners, monitoring and evaluation officers among others to equip them with the necessary skills to track and evaluate the implementation of entity plans in line with the NDP III PIAPs. + +3.1.2. Limited efforts to build the capacity of planning units within Government + +Section 7 (2) (d) provides that in pursuance of its primary planning functions, the Authority shall support local capacity development for national planning and, in particular, provide support and guidance to the national and local bodies responsible for the decentralized planning process. + +I have noted over the years that MDAs and Local Governments face significant challenges in planning, implementing, monitoring and reporting performance due to low capacity of their planning units. I however noted that although the mandate of the Authority provides for supporting the development of local capacity in planning, the Authority had not effectively executed this mandate. No trainings for planners had been undertaken by the Authority in the past three (3) years as a deliberate strategy to build planning capacity both at national and local levels. + +Failure to build planning capacity within the Government implies that there will be persistent challenges in the development, implementation, monitoring and reporting of performance in relation to the approved budgets, which affects service delivery and the credibility of the budgets both at entity and government-wide level. + +The Accounting Officer explained that the Authority developed a National Capacity Enhancement Project for strengthening planning capacity at decentralized level in 2017 however no funds were availed and the activity has persistently remained as an unfunded priority. + +I advised Government to have this critical activity funded, especially with the implementation of the roll out of the new NDP III which has taken effect. + +61 + + + + + + + + + + + +3.2. SECURITY SECTOR + +3.2.1. + +Monitoring and Supervision of Government Programmes under Office of the President + +The Office of the President is mandated to follow up implementation of government programmes across the Country. However, the Office has staffing as well as office accommodation challenges which has limited adequate monitoring and supervision of the implementation of the programmes. The Office has a staffing gap of 80 positions of Senior Presidential Advisors, Resident District Commissioners and Deputy Resident District Commissioners. + +In addition to the staffing gap, the RDCs lack enough accommodation. During the year under review, the Office of the President had a deployment of 146 RDCs in Districts and 10 RCCs in newly created cities out of which 107 are renting and 24 lack offices. + +In order to address the above challenge, the Office envisioned an idea of constructing at least 10 RDC offices per annum in a phased approach starting with FY 2008/09. This idea was not fulfilled because government could not fund the capital budget as anticipated. This has necessitated the Office of the President to revert to constructing only one RDC office per annum as the case is currently and renting office space for the rest. Under this approach, the Office will take 107 years to construct offices for all RDCs and spend approximately UGX.445Million on rent annually. + +I have advised Government to ensure that the RDCs and RCCs are recruited and also develop an action plan for construction of offices in a phased manner to minimise the high operation costs. + +3.3. AGRICULTURE SECTOR 3.3.1. Mainstreaming of Agriculture Sector agencies + +Government is still in the process of rationalizing agencies and public expenditure (RAPEX) under the Agricultural Sector which include Cotton Development Organisation, Uganda Coffee Development Authority, Coordinating Office for Control of Trypanosomiasis and Diary Development Authority. These entities have had challenges of attracting staff to undertake activities. The respective Accounting Officers attributed this challenge to the following: + +- Some successful candidates did not take up the job offers because the contract period was limited to only 18 months as recommended by Ministry of Public Service. + + + +- The Ministry of Public Service and Solicitor General guided that recruitment of staff for the agencies affected by rationalization should only be for a period up to June 2023. + + + + + +- The employment contracts should contain a disclaimer clause to the effect that the employment can be terminated any time without recourse. + + + +- There is no guarantee of retention of the workforce. + +The above situation has affected the agencies also in other areas of planning, execution of activities and implementation of the new NDP III strategic plans. + +62 + + + + + + + + + + + +I advised Government to fast-track implementation of the policy with a view of ensuring that the on-going rationalization activities are finalized in the shortest time possible to avoid further disruptions in the operations. + +3.3.2. Over dependence on the Public Private Partnership in the Cotton sector + +Section 5 (i) of the Cotton Development Organisation Act, vests the duty to facilitate cotton production, cotton research and extension through the Ministry responsible for + +agriculture to CDO. CDO’s mandate is to promote production, monitor marketing and + +processing of cotton and represent all aspects of the cotton subsector. + +Over the last 11 years, the Private Sector (Ginners) under their umbrella body Uganda Ginners and Cotton Exporters Association (UGCEA), have been supporting cotton production activities under the Cotton Production Support Program through a Memorandum of Understanding that is signed annually between CDO and UGCEA. The Program, using funds pooled voluntarily by UGCEA members into the Cotton Development Fund (CDF), supports a variety of activities which aim to assist cotton farmers in Uganda to increase cotton production and productivity through; provision of inputs, farmer mobilization and sensitization, extension services and agricultural mechanization. + +It was noted that UGX.19.649Bn was budgeted to cater for the cotton marketing season 2020/21 out of which, UGX.15.154Bn was budgeted towards provision of planting seed and production inputs. Government was able to contribute only UGX.8.6Bn leaving the balance for the private partner intervention. This is an indication that government is relying more on the ginners to fund the cotton sector. + +Despite the intervention by the private sector, there were shortages in provision of inputs to farmers. From table below, 866 Mt of planting seed, 374.6 Mt of fertilizers and 2,260 spray pumps were not provided as projected in the strategic plan despite the support from the Ginners which directly affected the performance of the sector in achieving the desired cotton production targets. + +Table 24 : Comparison of consolidated quantities of production inputs + + Planting seed Pesticides Fertilizers Spray pumps Herbicides +Production inputsneeded(Strategic Plan) A 3,200 Mt 222,000 liters 415 Mt 7,000 0 +Planned Quantities (MOU- Ginners) B 2,500Mt 224,000 liters 746 Mt 3,000 7,500 liters +Actual Quantities provided (Reports) C 2,334 Mt 287,102 liters 40.4 Mt 4,740 6,616 liters +Difference A - C 866 Mt (65,102) 374.6 Mt 2,260 (6,616) Liters + + + + +Source: OAG analysis of CDO Strategic Plan 2020/21-20, MOU, quarterly reports + +63 + + + + + + + + + + + +Dependency on the Private sector for a key production activity such as provision of seed for planting and production inputs, risks the sustainability of the sector and enables the private sector to exercise influence over farmers through paying of low prices for the + +farmers’ crops. Further, inadequate Government funding limits CDO’s interventions in + +key aspects such as targeted extension services for mobilizing farmers and training them on cotton agronomical practices using demonstration gardens established at village/parish level. + +Management explained that limited government has affected the cotton production in the past 2 years. There was a drop in cotton production from 173,457 bales of lint in FY 2019/20 to 50,709 bales in the year under review largely as a result of heavy rains, meagre funds for procurement and distribution of production inputs as well as provision of extension services. The calamity of drop in the cotton production was brought to the attention of both the Ministry of Agriculture, Animal Industry & Fisheries and the Ministry of Finance, Planning & Economic Development and a request for a supplementary budget of UGX.5 billion was made. + +I advised the Accounting officer to continue liaising with the line Ministry and MoFPED to forge a way forward for the sector. + +3.3.3. Management of Foot and Mouth Disease (FMD) Outbreaks in the Country + +It is the Mandate of MAAIF to regulate and control the prevalence of FMD within the country. Accordingly, Government intervened by procuring FMD vaccines from Kenya Veterinary Vaccines Production Institute (KEVEVAPI) and Botswana Vaccines Institute (BVI) which were distributed to farmers across the country especially in the areas where FMD has been reported previously. + +In June 2021, the country was informed of unprecedented outbreaks of FMD along the cattle corridor. A review of management of the outbreak revealed failure of timely interventions as a result of challenges faced in the procurement of vaccines despite the availability of funds. Furthermore, the following shortcomings were noted; + +a) During the financial year 2019/2020, 700,000 doses of FMD were procured in November 2019, however, only 500,000 (70%) of the consignment was delivered and significantly late by 4 months. + +b) 2,311,000 doses were planned to be procured in 2019/2020 however the supplier failed to deliver despite emergency situation and sensitivity of the disease. + +c) Although the supplier later delivered 1,700,000 doses (52%) during the year 2020/2021, and 2021/2022 financial year, the balance of 611,000 doses (24%) were still outstanding at the time of writing this report. The deliveries have not been made even after several delivery extensions to the supplier. + +The continued presence of the FMD and the inadequate response in terms of vaccine availability has denied Ugandans opportunities to export livestock and livestock products + +to the international market and significantly curtails the Ministry’s ability to achieve its + +mandate. + +64 + + + + + + + + + + + +I advised the Accounting Officer to effectively and efficiently monitor such disease outbreaks within the Country so as to curb the spread and prevent further loss to the Community. Further, research collaborations with NARO should be enhanced for development of a local intervention. + +3.4. JUSTICE LAW AND ORDER SECTOR + +3.4.1. + +Management of cases and Case backlog + +Various stakeholders in the Justice Law and Order Sector (JLOS) have implemented a number of management information systems as indicated in the table 25 below. + +Table 25 : Information Systems within the JLOS Sector + +SN Information system Purpose Entity Cost (Bn) +1 Prosecution Case Management Information System (PROCAMIS) Record and collect information pertaining to cases, and rapidly transfer case details from law enforcement across the DPP offices. ODPP 26.188 +2 Court Case Administration System (CCAS) Receiving and allocating cases to different Judicial officers for further management. Judiciary No information +3 The Electronic Court Case Management Information System (ECCMIS) Manage case records, e-filing. The system tracks all aspects of a case life cycle from initial filing through disposition up to appeal. Judiciary 9.277 +4 Prisoners Management Information System(PMIS) Recording and classifying of all prisoner related information across all the prisons. Prisons 0.501 +5 Crime RecordsManagement System(CRMS) Automate all paper based processes of case management. Uganda Police Force 0.5 +6 Suspect profilingsystems Capture profiles of suspects such as bio data, photographs, and thumbprints among other features, to help in quick identification of suspects. Uganda Police Force No information + TOTAL 36.466 + + + + +Institutions require quick access to accurate, and reliable information in order to function well and promote the objectives of equitable justice for all. In pursuance on the goals of criminal justice, various entities within the sector have acquired computerised information management systems to enable them attain their mandate. + +Although Government has invested a sum of UGX.36.46Bn in four of the systems for the administration of Justice across the JLOS sector, I noted that the systems are stand- alone and decentralized without being integrated to enable information sharing across the sector. + +The lack of systems’ integration inter-linking the various entities such as the Police, Directorate of Prosecution, Judiciary and Prisons implies that the transfer of case details between stakeholders for the quick resolution of cases in the pursuit of Justice cannot be achieved. The absence of shared or integrated management systems may also result in inefficient allocation of resources, higher costs of procurement for IT hardware, network equipment and application software as well as duplications in the nature of service support from the suppliers/vendors of the applications and the hardware. + +65 + + + + + + + + + + + +I also observed that the implementation or setup of some of the systems is still ongoing in various entities. For instance, the Crime Records Management System in Uganda + +Police, the Prisoner’s Information Management System in the Uganda Prisons, the + +Electronic Court Case Management Information System in Judiciary, the Suspect Profiling System in Uganda Police were still at the pilot testing stage or were yet to be fully rolled out and operationalised across all the regional offices countrywide. + +This may have resulted in the non-optimal use of the information assets held on the systems. + +The JLOS sector should review the existing systems and their functionality vis-à-vis the sector-wide needs with a view of achieving an integrated approach to information management within the sector, in order to avoid the duplication of data, delays in processing cases, and achieving efficiency in resource allocation across the sector so as to attain the goals of criminal justice administration. + +3.4.2. + +Operationalisation of the Joint Venture Agreement + +In 2017 the Government of Uganda entered into a Joint Venture Agreement resulting in the formulation of the Uganda Securities Printing Company (USPC) for the exclusive production and supply of all security documents for the Government of Uganda, including National Identity Cards and Birth and Deaths Certificates. This venture had delayed to be operationalised and as a result a number of challenges were identified; + +a) NIRA was expected to order a minimum of 4,500,000 national ID cards annually, starting with the financial year 2020/2021. However, no order was placed for the financial year under review due to lack of budget provisions for this activity. This is a breach of the contract agreement, which may result in the payment of fines for breach of contract. + +b) USPC was yet to supply IT systems and equipment to support the National ID system and the birth and death registration system. The system in use for Identification Information was supplied by M/S Mühlbauer Uganda Limited, whose contract had expired and was not renewed. There is a risk that NIRA will operate without system support from the system vendor of the legacy (existing) system for an unspecified time. + +The Accounting Officer explained that the Authority has been engaging USPC to resolve all the issues relating to the Joint Venture Agreement (JVA) and an Adhoc committee had been put in place comprising of all Permanent secretaries, including the Ministry of Internal Affairs, whose objective is to review the status of implementation of the JVA every quarter. + +I advised Government to design a clear road map and strategy to ensure compliance with the terms of the Joint Venture Agreement, including developing support systems to avoid the stalling of operations of the entity. + +66 + + + + + + + + + + + +3.5. INFORMATION COMMUNICATION TECHNOLOGY SECTOR + +3.5.1. Absence of a National IT Governance/Oversight System + +I noted that Government did not have a national IT governance framework that establishes a proper IT governance structure and system. + +The objective of an IT Governance system is to enable Government to; provide for strategic direction for ICT investments; prioritise and ensure strategic alignment of IT and e-government investments across Government; mitigate risks associated with the use and/or investments in ICT such as duplication of IT systems and wasteful expenditure; and optimise the use of ICT and e-government services, among others. + +As a result, there is a lack of strategic insight in IT investments, and the Government may fail to optimise the use of existing ICT infrastructure. In addition, the Country lacks competitiveness in harnessing opportunities in ICT. + +I advised Government to consider establishing a national IT Governance Framework and structure to oversee investments in information and communication technologies. + +3.5.2. + +Failure by MDAs to Pay for National Backbone Infrastructure Services + +NITA-U provides NBI/EGI services to MDAs and Local Governments whose ICT budgets have been either consolidated or not consolidated under NITA-U's ICT budget. Currently, fifty-four (54) entities whose ICT budget is consolidated under the ICT sector budget, while the ICT budget for 72 entities are not consolidated. Out of seventy-two (72) entities, only ten (10) entities have honoured their obligations. This has led to the accumulation of domestic arrears totalling UGX.22.96Bn as of 30th June 2021. + +The arrears largely relate to the costs of expanding the national backbone/e- Government infrastructure (NBI/EGI). Notably, domestic arrears accounted for 14% of the annual GoU budget for the Authority, which is not only unsustainable but may lead to difficulties in the provision and extension of e-government services throughout the + +Country. + +I advised management to liaise with MoFPED in consultation with MDAs to ensure that the ICT budgets are consolidated under the ICT Sector budget. + +3.5.3. Uncollected Revenue from Media Operators + +I noted that UCC stopped invoicing government bodies, namely: Uganda Telecom Limited (in-Administration), Uganda Broadcasting Corporation and Uganda Post Limited, for licensing and other charges. A review of the financial statements of these Government agencies revealed an un-invoiced amount of UGX.50.9 Bn. Management attributed it to the financial distress of these companies and the URA's tax policy of invoicing for VAT based on invoices raised by taxpayers, whether paid or not. + +I noted that UCC did not issue invoices worth UGX.421.9Million to 15 operators (4 television operators and 11 FM broadcasting stations) during the period under review, contrary to its financial regulations. + +67 + + + + + + + + + + + +Relatedly, UCC has not enforced the payment of a 2% gross annual levy on the licensed Television and FM radio operators gazetted in 2017, contrary to Section 68(1) of the UCC Act 2013. Management explained that the operators had appealed to the Minister + +of Information, Communication Technology & National Guidance. + +I advised management to engage all stakeholders and collect the levies due. + +3.5.4. Lack of a Communications Tribunal + +During the audit, I observed that the Commission does not have a Tribunal contrary to Sections 60(1 & 2) and 64(1) of the Uganda Communications Act, 2013. The tribunal would have jurisdiction to hear and determine all matters relating to communications services arising from decisions made by the Commission or the Minister under this Act. + +In the absence of the tribunal, the Commission lacks jurisdiction to hear and determine matters arising from decisions made by the Commission or the Minister under this Act. Currently, the matters are being heard by the Minister and the Commission, which creates a conflict of interest. + +The Accounting Officer explained that the responsibility to appoint the tribunal does not reside with the Commission and that the tribunal is to be appointed by the President on the recommendation of the Judicial Service Commission, and that the matter had been brought to the attention of the Minister of ICT and National Guidance. + +I advised management and the Board of Directors to liaise with the relevant authorities to constitute the Communications Tribunal. + +68 + + + + + + + + + + + +3.6. ACCOUNTABILITY SECTOR + +3.6.1. + +Approval of supplementary funding without matching revenue + +It was established that during the financial year ended 30 th June 2021, supplementary funding totalling UGX.6.13Tn was granted by the Minister of Finance, Planning and Economic Development. It was however, noted that the source of funding for the supplementary expenditure was not clearly shown before approval was granted. + +As a result, the supplementary expenditure was instead financed by internal budget cuts from various votes, thus affecting the implementation of plans/activities by the affected votes. Although the budget was raised from UGX.45.495Tn to UGX.51.625Tn, only UGX.46.6Tn was realised, resulting in unfunded activities worth UGX.4.98Tn. + +3.6.2. Underperformance in Revenue Collection + +I observed that, URA had a total revenue collection target of UGX.22.04Tn for the financial year 2020/21 and collected total gross revenue of UGX.19.65Tn (89%) hence a shortfall of UGX.2.39Tn (11%). Under collection of revenue affects cash flow performance of Government and realisation of the planned service delivery targets. In addition, it may increase the national debt burden as the Country may fail to honour its obligations and borrow more to address revenue shortfalls. Management attributed the performance to the adverse impact of the COVID-19 pandemic. + +I advised management to continue implementing strategies to enhance revenue collection. + +3.6.3. + +Performance of the collaborating institutions under the Tax Registration and Expansion Programme (TREP) + +During the financial year 2020/2021, the collaborating institutions under the Tax Registration and Expansion Programme (TREP) registered only 167,211 taxpayers against a target of 436,869 taxpayers representing 38.27% registration success a shortfall of 61.7%. In revenue terms, although TREP had a revenue target of UGX.124.58 Bn in FY 2020/21, it had only collected UGX.49.93Bn by 30th June 2021, representing a 40% performance rate. In addition, the Ministry of Local Government had planned to implement activities worth UGX.4.4Bn under TREP activities but only implemented activities worth UGX.3.3Bn, leaving un-implemented activities worth UGX.1.1Bn despite receiving full funding. As a result, the e-LogRev objective of simplifying and strengthening the local revenue collection systems for Local Governments may not be achieved in time. The paltry performance was attributed to the effects of the COVID-19 pandemic that has set back many businesses, political riots and limited staff at the various stations because URA TREP officers had been laid off, thus resulting in limited staff capacity to conduct enforcement. + +I advised the project management to review their strategies to enhance performance by agreeing on improvement plans to meet the project target. + +3.6.4. + +Overstay of projects in the Public Investment Plan (PIP)-UGX.39.01Tn + +The Public Investment Management Reform Strategy provides that projects are supposed to be delivered on budget and on time in order to achieve the desired goals and objectives. + +69 + + + + + + + + + + + +Audit observed that in the sample of 371 projects, 342 projects with budgets totalling to UGX.39Tn had gone past their planned exit periods that date as far back as the FY2010/11, with some projects having been extended for more than 12 years. The audit noted that the projects continued to receive Development Committee approval for a continued stay on the PIP. It was noted that only 40% of the projects in the PIP were still within their expected time period. + +As a result, this has caused delays in the completion of key projects, cost overruns and high commitment fees on foreign debt on account of low Absorption and failure to complete projects on time. It should also be noted that the effectiveness of some projects dwindles as time goes by. + +The PS/ST was advised to critically review the justification for maintaining certain projects within the Country's Public Investment Plan. + +3.6.5. + +Un recovered Advances; UGX.2,819,193,074 + +MoFPED introduced a policy to advance funds to entities before actual collection of Appropriation in Aid on the condition that these funds will be recovered after collection. The policy failed in the FY2018/19 and 2019/20 due to failure to recover funds fully. + +During the financial year 2018/19, entities were advanced Appropriation in Aid, of which UGX.22.16Bn remained outstanding as at year-end. During the year 19/20, UGX.21.31Bn was recovered, leaving UGX.849 million outstanding. + +It was also noted that during the financial year 2020/21, a total of UGX.116.9Bn was again advanced in disregard of what had happened earlier to various Local Governments. Out of the funds advanced, UGX.114.07Bn was recovered, leaving UGX.2.81Bn outstanding. + +3.6.6. + +Absence of a monitoring and evaluation framework for impact assessment for tax exemptions + +The Government of Uganda has offered many beneficiaries' tax benefits, including tax holidays, waivers for tax payments, and refunding of various taxes as stipulated in various agreements and memorandum of understanding. The benefits are granted based on intended objectives that include promotion of economic growth, increasing employment, facilitation for extension of social services by Non-Government Organisations, among others. + +It was, however, noted that there is no mechanism in place for evaluating and or assessing the impact of the benefits granted. Analysis revealed that a number of beneficiaries have since had their benefit period expired without any follow up. + +In the absence of a monitoring framework, Government is not in a position to assess the impact of the tax benefits granted to the various beneficiaries. + +The Accounting Officer was advised to review the tax exemption Policy and set up a monitoring mechanism to follow up all tax incentive beneficiaries. + +70 + + + + + + + + + + + +3.7. ENERGY SECTOR + +3.7.1. + +Capitalization of Uganda National Oil Company and its Subsidiary Companies + +Uganda National Oil Company (UNOC) is charged with a mandate of representing + +Government of Uganda’s Commercial interests in Oil and Gas Sector. The Company is + +strategically positioned to participate in the down-stream, middle-stream and the up- stream of the oil and gas value chain, thereby engaging in the exploration, production and commercialization activities. The Company is anticipated to fully participate in the exploration and production in the Albertine Graben; the oil refinery and the oil pipeline. As a result, UNOC has registered two flag ship Subsidiary Companies to champion its commercial interests. These include; the Uganda Refinery Holding Company for the refinery business, and the East African Crude Oil Pipeline Company to lead in the pipeline business. + +I noted that despite the significant initial investment requirements by UNOC and its subsidiary companies, the government has not fully capitalized the companies to enable their full participation in the sector. The companies are consistently facing funding constraints. For the period under review, I noted that out of the Budget of UGX.76.38Bn for UNOC, only UGX.34.4Bn was availed, resulting in a funding gap of UGX41.98Bn, which is 54.96% of the budget. + +After the Final Investment Decision for the Upstream and EACOP Project, which is envisaged to be undertaken in February 2022, there will be a rapid increase of oil and gas activities which will cause an exponential growth in the financing needs of the + +Companies. + +UNOC has proposed a capitalization plan to MOFPED in its annual work programme and budget for the FY 2021/22 of UGX.914.18Bn comprising Capital expenditure (UGX.304.08Bn) and Operating expenditure (UGX.129.10Bn). + +The Accounting Officer explained that he was engaging MOFPED and other stakeholders to secure finances to that magnitude, and a plan has been agreed with government on a phased approach towards capitalizing UNOC and its subsidiary companies. + +I advised the Accounting Officer to fast-track their discussions with MoFPED to ensure adequate capitalization of the companies to enable government commercial participation in the strategic oil and gas sector. + +3.7.2. + +Implementation of the Electricity Connection Policy(ECP) + +The Government of Uganda established the Electricity Connections Policy (ECP), 2018 which is expected to run from 2018 to 2027. The primary objective of the policy is to increase electricity access, and provide cleaner energy to Ugandans. The policy aims at achieving the 26% rural access target by 2022, 30% national coverage target by 2020 and accelerating access after 2020 in order to achieve 60% access rate by the year 2027. + +I noted from the review of the Connections Department work plans and progress reports for the year under review that out of the 97,000 annual planned connections, only 3,683 (3.7%) connections were undertaken. The dismal performance may frustrate the + +Government’s initiatives under the Policy and NDP III of increasing electricity access to + +the population to 60% by 2027. + +71 + + + + + + + + + + + +I further noted that the ECP was facing challenges in delayed procurement of connection materials, under funding of compensations for the Project Affected Persons (PAPs), vandalism of the distribution network, among others. + +The Accounting Officer explained that the funding for the Connection Policy got exhausted and the Policy was first suspended by Government. However, it resumed in March 2021 to facilitate connections by utilizing materials procured with funding from African Development Bank (ADB). He further explained, that Rural Electrification Program (REP) had secured approval from AFD to utilize the grant for connections intended to benefit 45,000 customers under the result-based implementation arrangement with the expected implementation to start by March 2022, and the connection materials are expected under the TBEA/Exim Bank contract which will benefit over 172,000 customers by June 2022. + +I advised the Accounting Officer to liaise with the relevant stakeholders such as MoFPED and MEMD, to devise Sustainable funding strategies and ensure that implementation of the ECP is fast tracked for the achievement of policy objectives and service delivery. + +3.7.3. Vandalism and Theft of UETCL Grid Assets + +Uganda Electricity Transmission Company Ltd (UECTCL is charged with bulk evacuation of power using High Voltage (220Kv and 132Kv). The Company majorly uses steel Towers for the construction of the Transmission Lines. During the year it incurred UGX.0.5Bn in purchase of Galvanized Angle bars to replace vandalized tower members. Further analysis revealed that the Company incurred UGX 1.56Bn in replacement costs on assorted transmission line items vandalized between 2017 and 2021. + +The Accounting Officer explained that this was a nationwide vice that has been brought to the attention of Cabinet and Security Agencies. In addition, Management installed a pilot security system on transmission lines, however the system was itself vandalized. Nevertheless, management continues to engage security agencies and also community policing to protect UETCL installations. + +Vandalism impedes continuity and reliability of electricity supply to the country and strains company resources used to replace vandalized items and associated works. In addition, energy not transmitted due to infrastructure breakdown translates into loss in revenue to the company. + +I advised the Accounting Officer to continue engaging the MoFPED and MEMD in order to obtain funding for Implementation of Key Projects and follow up with the relevant stakeholders to fast-track amendment of the relevant legislation and promotion of Joint Ventures and negotiation of Commercial Partnerships. + +3.7.4. + +Deemed Energy Purchases: UGX.87.7 Billion and Power Evacuation Losses UGX.15.29 + +Billion + +Deemed energy refers to the electric power that is available for dispatch by an Independent Power Producer (IPP), but due to; non-existent or a weak grid infrastructure, and/ or insufficient demand, the power is not dispatched. This effectively transfers the market risk from the investors to Government, especially when the Power Purchase Agreement states so. + +72 + + + + + + + + + + + +According to several Power Purchase Agreements (PPAs) and other implementation agreements signed between the IPPs, GOU, and UETCL; GOU committed to construct power evacuation infrastructure from the IPP’s generation facilities to the distribution network upon commencement of generation and dispatch of power by IPPs. The failure to dispatch generated power constitutes deemed energy, and UETCL shall make payments to IPPs for such energy generated and not dispatched in accordance with the power purchase agreement. + +I noted that UETCL continues to pay significant amounts relating to deemed energy purchases. As a result, deemed energy costs of UGX.87.7 billion in regard to thirteen (13) Power Purchase Agreements (PPAs), save for one Hydro Power Plant (HPP), were financed through the electricity tariff system, hence negatively impacting on the electricity price to the final consumer. + +Similarly, I noted that UEDCL incurred an amount UGX.15.20Bn from power evacuation losses payable to UETCL for bulk power purchases. The amount is due to power evacuation losses stemming from absence of transmission lines to evacuate electricity from PA Technical, Siti 1 and Arpe Power Plants which resulted into wheeling power over a lower capacity and weaker distribution lines operated by UEDCL. These are significant losses for which the Company did not generate economic value. Payment of + +this amount would significantly affect the Company’s cash flows. + +I advised the Accounting Officer to continue engaging the Regulator and other sector players to address the infrastructural constraints in the transmission network to ensure efficient evacuation of generated power. + +3.7.5. Delayed Commissioning of Karuma HPP + +According to the 4th Quarter Progress Report, I noted that the completion date for Karuma Dam was further extended to 15th June 2022, resulting in a delay of 3 years and 6 months from the initial planned completion date due to unfinished works such as the spillway rehabilitation and other minor defects. + +I noted that the completion of land acquisition process or the Resettlement Action Plan (RAP) for the 132kV Karuma-Lira Transmission Line and Karuma Dam Reservoir by UTECL and MEMD, respectively, remain outstanding. These when not completed will affect the commissioning of the Karuma Dam and is a breach of the employer’s obligations under the EPC Contract with significant risk to the overall project completion. + +The delays in Project completion are likely to result in increased supervision costs, by the supervising consultant, and increased commitment fees payable on undrawn balances of the loan, of which GoU had already paid commitment fees amounting to UGX.2.9Bn as at 30th June 2021. It also reduces the period between commissioning, commercialization and payback which may have implications on the electricity tariff structure. + +I further noted Key Non-conformities by the EPC Contractor which included; 11kV switchgears installation, Units 1 to 6 ring gate leakage oil sump control box, severe damages on the various 400kV cables, damaged conic sealing surfaces, repair of the oil water separator unit, prolonged spillway operation, Outgoing Line Yard – cracks in the Control Building and absence of a Floating Boom. + +73 + + + + + + + + + + + +There is a risk that the non-conformities will result into damages, malfunction of equipment, unreliable plant components, and significant impact on working life duration and high operation and maintenance costs, as well as, negative environmental impact. This is likely to further affect the timely and successful commissioning of the Karuma + +Dam. + +I advised the Accounting Officer to ensure that the rectification of pending works under the Karuma Dam is expedited to enable project completion and commissioning without further delay. + +3.7.6. + +Bottlenecks in the Compensation of Project Affected Persons(PAPs) under Transmission Line Projects + +The Uganda Electricity Transmission Company Ltd (UETCL) is mandated to augment + +government’s efforts of increasing electricity coverage and expanding the national + +power transmission line network. The Sustainable Development Goals (SDGs); Seven (7) and Nine (9) both aim at increased electricity access by 2030.The electricity transmission sector has been affected by delayed construction and energizing of transmission lines. The delay has contributed to the low electricity consumption rates in the country of 215 KWh per capita per year, which is below the Sub-Saharan Africa’s average of 552Kwh per capita per year. The delayed construction has further more resulted into low uptake of borrowed funds, leading to increased costs, such as commitment fees paid. + +The delays in undertaking the construction of the transmission lines have been majorly attributed to inadequacies in the compensation process of the Project Affected Persons + +(PAPs), thus leading to challenges faced in “Acquisition of the Right of Way” (ROW). + +This has in turn led to delayed implementation of a number of projects in the Energy Sector. A review of the compensation process under UETCL revealed the following irregularities; + +i) + +The budgeting, disbursement, and absorption of compensation funds were not properly managed which resulted into over budgeting to the tune of UGX.111.3Bn on GERP and Mputa projects. + +ii) + +The valuation process was marred with a number of irregularities, which included the use of un-updated district compensation rates; and unverified legal interests in the land; which resulted into unnecessary revaluations and ligation. + +iii) + +About 56% of the PAPs for GERP and Mputa projects were not properly identified, and this resulted into a mismatch between the number of PAPs appearing on the Payment files, Survey reports and Valuation Reports. + +iv) + +Of the released compensation amount of UGX.21.5Bn for both GERP and Mputa Projects, only UGX.5.86Bn was paid to PAPs, thus resulting into unspent funds to the tune of UGX.15.64Bn. This mostly affected the GERP Project which alone had UGX.13.17Bn not utilized, while Mputa had only UGX.1.66Bn. + +v) + +There were significant delays in compensation of PAPs. 1,109 PAPs (52.2%) for Mputa and 821 (35%) for the GERP Transmission Line remained unpaid by the time of concluding the audit (November, 2021). Relatedly, Compensations in kind also delayed whereby out of 149 PAPs identified, only 93 were resettled, leaving 56 PAPs not resettled. + +74 + + + + + + + + + + + +vi) There were inadequacies in the construction of the resettlement houses which included; irregular payments to contractors, delayed progress of works, discrepancies in drawing specifications and BOQs, poor materials used for construction, and a number of defects which were not rectified. + +Timely compensations of project affected persons (PAPs) and acquisition of the right of way for electricity transmission lines would enable increased access to electricity by the citizens as envisaged in the sustainable development goals; 7 and 9. This would have a multiplier effect on industrialization which is critical for creation of employment and ultimately poverty reduction in the country. + +I advised management to streamline its RAP processes, including proper identification of PAPs, clear valuation processes, proper budgeting and release of funds, timely submission of PAP documentation and proper supervision of RAP activities. + +3.8. GENDER AND SOCIAL DEVELOPMENT SECTOR + +3.8.1. Labour Externalization Inadequacies + +Labour externalization is a process whereby government undertakes to regulate the export of labour to foreign countries. This role is under the mandate of the Ministry of Gender, Labour and Social Development (MoGLSD). This activity involves the signing of Bi-lateral Migrant Agreements (BLMA) with destination countries. I noted that the country has only 3 BLMAs with destination countries namely; Saudi Arabia, the Hashemite Kingdom of Jordan and the United Arab Emirates. However, a review of the ministry records indicated that the country was exporting labour to more than 3 countries, such as; Kuwait, Oman, Qatar, Turkey, Afghanistan, Iraq and Somalia, among others. + +I noted that the Ministry had no mechanism in place to monitor the implementation of the BLMAs. Furthermore, pre-externalization checks on the working conditions, safety and health perspectives of the importing labour organizations had not been undertaken. I observed that 246 female migrant workers returned between June and December 2019 without completing their contract period of two years due to human abuse related challenges, according to the Uganda Association of External Recruitment Agencies reception Centre report on Returnee Migrant workers. + +Furthermore, 548 external labour cases were registered, out of which, 48 (9%) cases remained unresolved at year end. + +Accordingly, the gender equality, labour and human rights of over 103,935 Ugandan workers who have migrated to various countries to provide labour, from July 2016 to June 2021, may not be guaranteed without duly signed BLMAs. + +I advised the Accounting Officer to expedite the finalization of bilateral migrant agreements with all the destination countries as this would provide clear international protocols for protection of migrant workers. In addition, the Ministry should liaise with Ugandan Missions in the destination countries and register all the Ugandan migrants for ease of follow up. + +75 + + + + + + + + + + + +3.8.2. Implementation of the Uganda Women Entrepreneurship Programme + +The Uganda Women Entrepreneurship Programme (UWEP) is an initiative of the Government for empowering women to improve their income levels and their contribution to economic development; by improving their access to financial services and equipping them with skills for enterprise growth, value addition and marketing of their products and services. The Programme has disbursed UGX.107 billion to 11,256 women groups, covering approximately 135,000 women, over the five-year period from financial year 2015/16 to 2019/20. + +I carried out a Value for Money audit to assess the extent to which the Programme achieved its intended objectives, and noted a number of key improvement areas as follows; + +i) + +I noted that only 4,185 women had benefited from the Programme under the capacity and skills development component, which translates into 42% of the desired target (10,000 women) according to the UWEP Programme document. + +ii) + +There were delays in disbursement of funds to the women groups. In some cases, the delays were more than 12 months from time of approval of the applications to receipt of the funds which affected the performance and success of enterprises, specifically those in the agricultural sector, which depend on the rainy seasons for planting. + +iii) + +Despite the UGX.16Bn sitting on the recovery account with Bank of Uganda from the loan repayments over the five years, only UGX.963 million (6%) of the amount had been revolved. This denied the qualifying women groups timely access to funds, which were otherwise available for disbursement. + +iv) The Ministry of Gender, Labor and Social Development through the UWEP Technical Support Unit did not effectively plan and coordinate implementation of the objectives of facilitating women to access markets for their product, as well as promoting access to appropriate technologies which were not allocated funds in the budgets for the entire 5-year period. Consequently, these objectives were not fully achieved. + +v) There was underfunding of monitoring and supervision activities at the local government level which affected the frequency of monitoring of beneficiary women groups. The programme gaps at enterprise level could not be adequately identified and corrected on time. At the National level, the Technical Support Unit (TSU) undertook only 13 (43%) of the planned 30 monitoring and supervision visits to the regions throughout the five-year period. This resulted in delayed identification of performance gaps and timely remedial actions. + +I advised the Accounting Officer, prioritize the capacity and skills development component of the Programme and ensure women groups are given funds after attaining the requisite skills in management of the approved enterprises. In addition, the Ministry and Local Authorities should iron out all the bottlenecks in the application approval process to ensure timely revolving of the funds to women groups. + +76 + + + + + + + + + + + +3.9. LAND SECTOR 3.9.1. Management of Government Land Matters + +The Uganda Land Commission is mandated to manage public land acquired by government both abroad and locally. I noted that the Commission does not have an inventory for all government land and properties that are either occupied by tenants, vacant, acquired under compensation (but not yet re-distributed to the bona fide occupants), or acquired and owned by other government institutions and missions abroad. This inadequacy has contributed to government losing land to fraudsters, squatters and also inadequate revenue collections from the untimely collection of the property premiums and leases. + +I further noted an increase of UGX. 118.Bn (81.5%) in land compensation payables during the year, of which UGX 105.5Bn related to new compensations for land, while UGX.12.5Bn related to revaluations of land that had been previously fully compensated or had an outstanding payment. Furthermore, UGX.8.93Bn (15%) was paid to eight (8) persons out of the eight four (84) ranchers who had not been paid in the previous years. The delay to pay other ranch claimants may result into litigation and court awards that would further increase the domestic arrears. As at 30th June, 2021, the outstanding claim from ranchers was UGX.61.5Bn, and compensations to other claimants stood at UGX.188.0Bn, thus bringing total outstanding compensations in the Ministry of Lands alone to UGX.249.5Bn. Similarly, the current landlord claims under the Uganda Land Fund, at the Uganda Land Commission, stand at UGX 194.7Bn. These also increased by UGX.7.2Bn during the current year. However, this amount is not supported by complete and appropriate documentation. The claims have been outstanding for a while due to the limited budget allocation to the Commission and the delay to fully operationalize the Land Fund which has remained operating as a budget support line in the Commission’s appropriated budget. + +I advised government to fully operationalize the Land Fund under the Commission and consider decentralizing all government land compensation payment claims to the Fund for proper management of government compensation processes, including mobilization of funds. + +3.10. EDUCATION SECTOR + +3.10.1. Management of Bilateral Scholarships + +Section 42(1) of the Higher Education Students Financing Act provides that all scholarships offered by the Government of Uganda (GOU), including bilateral scholarships, existing immediately before the commencement of this Act shall vest in the + +Board. + +Subsection (2) further provides that the central scholarship committee of the Ministry of education and Sports existing immediately before the commencement of this Act shall cease to exist on such a date as the Minister may by Statutory Instrument publish in the gazette. + +77 + + + + + + + + + + + +Over the years, Uganda has received scholarships through various schemes from several Countries. The various types of awards include offers through bilateral cooperation, offers through multilateral cooperation and direct offers to individuals through Embassies of awarding Governments, Institutions and Agencies. + +Scholarships awarded to Ugandans through Embassies of awarding Government are in most cases received on an annual basis, most of them routed through the Ministry of Foreign Affairs. The major and regular donors are; United Kingdom, India, Egypt, China, Cuba, Turkey, Algeria, New Zealand and Hungary, among others. + +A review was undertaken with the objective of establishing the effectiveness in management of Bi-lateral scholarships, identifying the challenges and providing recommendations for improvement. During the analysis, a number of aspects were considered including; the extent of awareness of the scholarship programmes by Ugandans, absorption of Bilateral Scholarships, and the transparency and effectiveness of the award process. The following matters anomalies were identified; + +- Management of scholarships at the Ministry of Education and Sports is not supported by a Scholarship Policy, thus the country lacks policy direction in regard to sourcing, accepting, allocation and monitoring of scholarships. + + + + + +- The Ministry of Education and Sports still holds the mandate of managing Government scholarships contrary to Section 42(1) of the + +Higher Education Students Financing Act which revoked the Committee’s + +mandate. + + + +- Information on Scholarship offered at the different Missions and other Government organizations was not readily available at the Secretariat. + + + +- Low uptake of scholarships was noted whereby out of a total of 280 scholarships offered to government in the previous three years, only 162 were filled resulting into an under absorption of 118 (42%) scholarships. + +The above outlined weaknesses have resulted into the process of accessing information on scholarships not being properly streamlined and consequently leading to low utilization/absorption of the scholarships available to the Country. + +I advised the Ministry of Education and Sports to ensure that the administration of scholarships in the country is streamlined for efficient and effective management. + +3.10.2. Management of Research Grants by Public Universities in Uganda + +Owing to the different challenges faced by public Universities in the management of research grants I undertook a value for money audit and independently assessed the management of research grants by Public Universities in 4 out of the 9 Public Universities in Uganda, these included; Makerere University, Mbarara University of Science and Technology (MUST), Kyambogo University and Busitema University. I noted the following; + +i) + +There is no framework to ensure collective planning, coordination and follow-up of research efforts for the different Public Universities to ensure equitable allocation of resources, efficient utilization of academic staff, and that research results contribute to National development. + +78 + + + + + + + + + + + +ii) + +I noted that key research and grant management policies/guidelines were missing at a number of Universities to guide on the efficient and effective management of research activities. Furthermore, the country lacks national regulations and guidelines for research and innovation activities including; sourcing of external grants, development and uptake of technologies and, management and commercialization of intellectual properties. + +iii) + +I noted inadequate administration structures for management of university grants, for example, out of the 4 Universities, only MUST had a grants office with dedicated staff to support grant activities. Busitema and Kyambogo universities did not have grants administrators at college/faculty level, while at Makerere and Mbarara only the college of Health Sciences and the faculty of medicine, respectively, had grant administrators to undertake the tasks. + +iv) + +I noted that the country does not have a clear research agenda to guide planning, implementation and policy matters regarding research in the Country. Some Universities lacked research agenda. For example, Mbarara and Busitema Universities did not have an approved research agenda. + +v) I noted that resource mobilization initiatives for public universities were inadequate. Out of the 4 universities, only MUK had a consolidated Research Innovation Fund (RIF) for research funds from government the other universities have not explored this initiative. All the universities have not raised any resources internally into a separate fund for research. This was attributed to government policy of remitting all internally generated revenue into the consolidated fund. + +vi) + +I noted monitoring and evaluation of research projects was inadequate in all the four Universities. M&E was not carried out by the university management on external research grants for the period 2017/18-2019/20. I further noted that even where M&E was undertaken by donors, recommendations were not fully implemented by the Universities. + +vii) I noted significant delays in completion of research projects. For example, 450 (88%) out of 512 Government funded Grants from MUK, Kyambogo and Busitema, were not completed in time during the period under review. Similarly, 218 (62.3%) out of 350 Donor funded Grants from the 4 universities were not completed in time. + +I advised government through its various entities to consider establishing a National research agenda which should be supported by a comprehensive research management framework streamlined throughout the entities. In addition, Government should consider establishing a research fund at each public university in which both government and donor research funds could be collected and effectively managed. + +79 + + + + + + + + + + + +3.11. WATER & ENVIRONMENT SECTOR + +3.11.1. + +Afforestation and Restoration of Selected Central Forest Reserves (CFRS) by the National Forest Authority (NFA) + +The National Forestry Authority (NFA) was established under section 52 of the National Forestry and Tree Planting Act, 2003 (NFTPA) with an objective of managing the Central + +Forest reserves. The country’s forest cover reduced from 24% (4,933,271ha) in 1990 to + +9% (1,956,664ha) in 2015, with a slight increase of up to 12.3% (2,025,192ha) in 2017. The forest cover loss over the years from 1990 to the last biomass study in 2017 was estimated at 58.9%. Similarly, the CFR forest cover under NFA’s jurisdiction alone dropped from 62.5% (791,240ha) of the NFA forest cover to 45.8% (579,257ha) in the same period. This trend was contrary to Sustainable Development Goal 15 which required governments to ensure the restoration of forests and increase forest cover in line with obligations under international agreements by 2020. + +I carried a value for money audit to evaluate the effectiveness of the measures put in place by the NFA towards the restoration and establishment of new plantations in the central forest reserves, between the period of 2016 and 2020, and noted the following; + +i) Although management achieved 11,173ha (78%) of their planned outputs (14,277ha) for both restoration planting and establishment of new tree plantations, this only contributed a total of only 0.88% to the NFA forest cover (1,265,742ha) over the four-year period. This dismal performance was attributed to a number of inadequacies in the Planning; Budgeting; Land management; Monitoring and Inspections; and Collaboration management, resulting into the failure by NFA to meet its desired targets towards increasing the national forest cover. + +ii) A number of stakeholders in the forest sector, with different projects across MDAs supporting forestry restoration activities, were not adequately coordinated under a single mandate. In addition, there are; inconsistencies in the national, sector and NFA strategic plans, there is a lack of specific outputs per stakeholder in the plan together with matching funding for the activities met to achieve the planned outputs. These inadequacies in coordination and planning at NFA, the Forest sector and national level have contributed to the limited National forest coverage of 12.3% and NFA forest cover of 45.8%. + +iii) I that out of the expected 16 monitoring reports in the four-year period ending 30 th June, 2020, only 4 (25%) were prepared in the entire four-year period. In addition, NFA budgeted to receive UGX.320m for monitoring in the four years under review, but only UGX.91.8million (29%) was released, and the entity spent UGX 88.8million over the period on monitoring activity. Furthermore, there were limitations in discussing and implementing monitoring report recommendations, and as a result, there were instances in which management did not demarcate the area as recommended by the M&E report before restoring the forest. This led to destruction of the newly restored forests by encroachers. + +I established that seventeen (17) MOUs were signed with different government agencies, out of the planned twenty (20), representing an 85% performance. Although these collaborations contributed to the restoration and establishment of new plantations, there were inadequacies in providing the planned quantity of seedlings. In addition, twenty (20) out twenty-eight (28) Collaborative Forest management (CFM) agreements were signed with forest edge communities. + +80 + + + + + + + + + + + +I advised the Accounting Officer to improve on the Planning, Budgeting, Coordination and Collaborations, Monitoring aspects, and prioritization of fixed resources required in the restoration and establishment of forest cover in the country. + +3.12. WORKS SECTOR + +3.12.1. Uganda National Roads Authority + +a) + +Loss of funds in interest on delayed payment of contractors + +The Authority incurred wasteful expenditure to a tune of UGX.17Bn in form of interest and penalties due to delayed settlement of invoices from contractors. This was a loss to Government. The Accounting Officer explained that interest costs arise due to inadequate funding for the road development and maintenance projects that UNRA is managing. I advised the Accounting Officer to enhance the Authority cash flow management by rationalizing available resources, especially reduction of advances + +payments to settle outstanding claims and to improve the Authority’s budgeting process + +and liaison with relevant authorities such Parliament and Ministry of Finance for adequate financial resource allocation. + +b) + +Delayed road projects and accumulation of commitment fees + +By 30 th June 2021, 35 road projects under UNRA with a total contract value of USD.398,427,063.99 and UGX.149,739,813,845 had been delayed. These 35 projects were to be completed during the year were behind schedule as per their work programme still on-going by the close of the year. The delays which ranged from 64 days (about two months) to 1,072 days (about two months three years) days were majorly attributed to: inadequate mobilization by some contractors, abnormal rains, delayed acquisition of Right of Way and the effects of COVID-19 that resulted into nationwide lockdown. I computed commitment fees on only two projects (Busega-Mpigi- UGX.7,1140,345,245) and RSSPV (UGX.3,079,241,588) and observed an accumulation of total commitment fees amounting to UGX.10,219,586,833 in only one year alone. + +The Accounting Officer explained that the delay to complete the projects was due to a number of factors that included; inadequate mobilization by some contractors, abnormal rains, delayed acquisition of Right of Way and the effects of COVID-19 that resulted into nationwide lockdown. I advised the Accounting Officer to always ensure that projects are completed within the agreed timelines. + +c) + +Delayed compensation for Project Affected Persons and Acquisition of Right of Way for Road Projects (Projects- Kampala Jinja Expressway, Hoima Wanseko) + +I observed delays in compensation of Project Affected Persons and hence Acquisition of the Right of Way. The majority of Project Affected Persons are compensated beyond the stipulated six-month period after approval of the Valuation Reports by the Chief Government Valuer. For the KJE Project, the construction works are planned to commence in January 2022. However, 21% of the approved compensation amount worth UGX.92,571,144,970 has not yet been paid, with less than 6 months to the scheduled commencement date which is likely to impede timely handover of the project corridor and timely commencement of works. In addition, compensation for properties within volume 5 comprising Kasokoso area had not yet been assessed. + +81 + + + + + + + + + + + +The Accounting Officer explained that a number of issues caused the delays for compensations, such as; lack of proper ownership documents, for example; sales agreements, letters of administration, ownership disputes especially for untitled interests like Kibanja or customary land, absentee landlords, and; rejection of compensation awards by PAPs that lead to review of the complaint to ascertain validity. I advised the Accounting Officer to consider using escrow accounts with district local governments for the absentee landlords and PAPs where funds may be deposited so as to aid fast land acquisition. + +3.12.2. Ministry of Works and Transport + +a) Failure to maintain district road equipment + +The inspection of the Ministry’s Regional Mechanical Workshops during August and September 2021 revealed that 21 units of district road equipment which are key in opening and maintaining district roads were left unused in the workshops’ yards for more than a year without repair. The equipment included: thirteen (13) motor graders of different models; four (4) bulldozers; One (1) pickup; two (2) dump trucks, and one (1) wheel loader. This means that the districts that own the said equipment could not maintain their roads and deliver such critical service to the country as planned. In addition, the cost of repair may escalate as other parts also become faulty when the equipment is grounded for a long time. + +The Accounting Officer explained that the amount budgeted and received to maintain road equipment represents 30% of the total funds required for equipment maintenance. I advised the Accounting Officer to liaise with the responsible authorities to obtain the necessary funding for the full maintenance of the equipment so that the equipment operates and serves the Districts. + +b) Delayed acquisition of land for the Right of Way for the Standard Gauge Railway project (Ministry of Works and Transport) + +The SGR project was to acquire 5,200 acres of land free of encumbrances at an estimated cost of UGX 534.6 bn for the Right of Way (ROW) for the construction of the Kampala – Malaba SGR route by October 2016. However, by September 2021 only 1,296 acres (25%) had been acquired at a cost of UGX 95.3 bn. Additionally, the project had not obtained titles for the acquired land. There are risks of subsequent compensation for the land already paid for and failure to acquire all the land needed for the full realization of the project. + +The Accounting Officer explained that currently, land acquisition is one of the core activities of the project. He further explained that the releases however have been going down in comparison to the annual budgets. I advised the Accounting Officer to obtain and transfer land titles to Government for the land paid for and expedite the acquisition of all the land needed for the project. + +82 + + + + + + + + + + + +3.12.3. Uganda Railways Corporation + +a) Procurement, supply, delivery, training and commissioning of four (4) used locomotives + +URC contracted M/S GRP Leasing Africa for the supply, delivery, training and commissioning of four (4) used locomotives under procurement reference; URC/SUPLS/2020-11/0001 at UGX.41,323,768,935. However, I noted that the bidder did not comply with some requirements within the bid document which were supposed to be the basis of evaluation. Despite the non-compliance, the bid was evaluated without following the evaluation criteria for Technical stage contrary to the regulations. Non-compliance with the evaluation criteria may have led to delivery of unsuitable locomotives at an inflated cost. Important to note was that the locomotives could not turn at the existing turning points in the country. Therefore, the Corporation will incur un-planned costs of providing turning points for the locomotives. + +The Accounting Officer further explained that the limiting turning curvature for the 98 class locomotives is 26 degrees whereas the existing railway triangle had some sections with sharper curvature of less than 26 degrees presumably because the existing triangle design considered the existing locomotive fleet prior to purchase of the new locomotives with different design specifications to safely change direction at the triangle. The physical constraints of the triangle including 2 bridges over Nakivubo channel, high voltage electricity transmission line pylon and the Kampala Flyover Project Right of Way have limited any possible improvements in the triangle alignment to relax the limiting curvature. I advised the Accounting Officer to always ensure that Evaluation Committees + +check for bids’ responsiveness to the criteria set in the bid documents and recommend + +only fully responsive bids for award of contracts. + +b) Lack of Land titles - UGX 91,832,636,500 + +I noted that Uganda Railways Corporation land worth UGX.91,832,636,500 lacked land + +titles as evidence of URC’s rights to own and use the property. Management’s efforts to + +secure the land titles appear remote. Lack of land titles led to the Corporation’s land to have been heavily encroached upon and grabbed as was observed during field inspection. + +The Accounting Officer explained that Management was pursuing the titling of land in various locations. I advised the Accounting Officer to expedite the completion of Management interventions and processing of titles for all URC land. + +3.12.4. Uganda Civil Aviation Authority + +a) Delayed revision of the Financing Agreement for the Exim Bank loan for Upgrading and Expansion of the Entebbe International Airport (EIA) Phase I Project + +UCAA entered into an agreement with China Communications Construction Company (CCCC) on 8 th October 2014 for the upgrading and expansion of the EIA Phase I. To obtain funding for this project, the Government of Uganda (GoU) represented by Ministry of Finance Planning and Economic Development (MoFPED) entered into a 20 + +years’ concessional loan agreement not exceeding Japanese Yuan One Billion, two + +hundred and sixty million (¥ 1,260,000,000), equivalent to USD Two Hundred Million ($200,000,000) with the Export-Import (EXIM) Bank of China on 31 st March 2015. + +83 + + + + + + + + + + + +Subsequently, MoFPED entered into an on-lending agreement with the UCAA which transferred the following loan obligations to the Authority: - + +a) Semi-annual loan repayment within 13 years after the grace period of 7 years at an interest rate of 2% p.a on the principal amount drawn for the actual number of days elapsed from a 360-day year. + +b) + +Payment of a management fee on the aggregate amount of the facility equal to ¥ 3,150,000 (USD 500,000) in one lump sum within 30 days after the effective date of the agreement with EXIM Bank but not later than the first disbursement. + +c) Semi-annual payment of commitment fees calculated at 0.25% per annum during the loan availability period. + +Other terms of the agreements relating to the loan included: a) The Repayment Reserve account shall be used to maintain the minimum amount of balance as a debt service reserve required by the lender. + +b) Banking of Revenue collections on Escrow Accounts, and ensuring that withdrawals are based on approvals of the lender. + +c) + +Budgeting and Approval of Annual budgets by the lender for funds on Escrow + +Accounts. + +d) + +Paying semi-annually to the lender a commitment fee calculated at the rate set forth in concessional loan agreement (which is 0.25%) on the undrawn and un-cancelled balance of the facility. + +Because UCAA was not prepared to meet the terms and conditions of the loan agreement, several meetings were held with the MoFPED and the MoWT and a + +resolution was made to have a Ugandan team headed by Uganda’s Ambassador to + +China, to engage Exim bank for a renegotiation of the loan terms and conditions. At the time, the Exim Bank had halted payments to the Contractor. + +The Accounting officer explained that as per the Attorney Generals guidance dated 5th November 2021, in his opinion none of the clauses in the agreement require amendment. + +I advised the Accounting Officer to engage the relevant authorities on the clarity of the consequences of non-compliance with the terms and conditions that directly affect + +UCAA’s operations, and on the possibility of transferring the loan liability from UCAA’s + +books to MoFPED. + +b) Ratio analysis and financial performance of Uganda Civil Aviation Authority The Authority made a loss for the year under review amounting to UGX 29,321,645,000. On review of the operating margin, I observed that the costs before considering interest and taxes exceeded revenue for the year. I also observed that due to the loss incurred, the Authority generated a negative return on assets of 5%. Further, the Authority could not cover interest accrued on its long-term loans in view of its earnings. Along with the lack of potential to cover loan interest, the Authority had a significant long term liabilities portfolio on its balance sheet, which majorly comprised of the loan from Exim of China to finance the upgrading and expansion of Entebbe International Airport. + +84 + + + + + + + + + + + +The Authority’s loss and the ratios computed are an indication that Uganda Civil Aviation + +Authority did not perform well in terms of profitability and ability to sustain provision of services without further Government intervention for funding and Management strategies to improve revenue generation. The Accounting Officer explained that the performance results during the period were severely impacted by the COVID-19 situation that affected the airport operations of the Authority. + +I advised the Accounting officer to ensure that strategies are devised to improve the revenue generating potential of the Authority, while putting in place cost cutting mechanisms. I also advised the Accounting Officer to engage Government on further financing including clearance of the debt held by Government agencies, to be able to cover the current operating costs as they devise strategies to improve the earning potential of the Authority. + +3.13. HEALTH SECTOR + +3.13.1. Mulago National Referral Hospital + +a) + +Status of key medical equipment + +I carried out an assessment of key medical equipment in the hospital. The assessment focused on the functionality and availability of medical equipment in seven key hospital departments, that is; CSSD, radiology, nuclear medicine, ICU, Laundry, clinical laboratories and accidents and emergencies. I noted that some vital medical equipment was in poor working condition, while others were fully not functional and required replacement. The equipment included: autoclaves in the central sterile service department; patient monitors in the accident and emergency surgical unit; blood coagulation machine in the clinical laboratory unit; ICU beds in the intensive care unit, and CT machine in the Radiology department. + +Management attributed the poor state of medical equipment in the Hospital to the limited funding provided under the capital development budget of the Hospitals. Absence of such essential medical equipment presents a daunting task for the medical workers in the effective execution of their duties. The efficiency of the medical workers is compromised. + +I advised the Accounting Officer to liaise with the MoFPED and development partners to ensure that the funding gaps are covered to have the essential medical equipment provided to the hospital units. + +b) + +Delayed Construction of 150 housing units + +I observed delays in the construction 150 housing units at Mulago Hospital. The contract was awarded on 20 th June 2020 at UGX.30,228,600,856 for a duration of thirty-six (36) months. One year and half down the road, the contractor had not yet completed the foundation of the first block out of the three blocks expected. + +85 + + + + + + + + + + + +The Accounting Officer indicated that the UGX. 4bn cap on the hospital capital expenditure budget creates challenges in undertaking high value capital projects since the absence of funding leads to delays in achievement of project milestones leading to project cost overruns. The Accounting Officer further explained that they have received funds in this Financial Year Budget to pay the contractor and it is expected that by the end of June 2022, the progress of construction shall be at a desirable level. + +I advised the Accounting Officer to follow up with contractor to ensure that the construction of the above staff houses is expedited. + +3.13.2. National Drug Authority a) Delayed Construction of the Laboratory Tower + +NDA is undertaking a Laboratory Tower Construction project at a total contract sum of UGX. 35,849,057,474. The start for the works was 11 th October 2019 and the original completion date was 11 th October 2021. The completion was revised to 07 th March 2022 because of delays. By the time of inspection, UGX 11,847,043,442 had been paid to the contractors. The implementation of the contract was not sufficiently managed leading to delayed works. + +I also noted that changes were made to the original building plans to cater for the adjustments to the outdoor and building basement parking and though the Contract Management Team and the Authority (NDA) had approved the adjustments and works had commenced by the time of audit in August 2021, the amended building plans had not yet been approved by the Metropolitan Physical Planning Authority. Implementation of unapproved building plans poses a risk of loss of the NDA funds in case the responsible Authority (Metropolitan Authority /KCCA) rejects the plans and directs demolition of the works. + +The Accounting Officer explained that the delays in the completion of works were due to the COVID-19 lockdown that took two phases in 2020 and 2021 which interrupted staff movement, manufacturing of inputs globally and transportation. The Accounting Officer also explained that the consultant submitted the revised drawings on 3rd August 2020 and no response had come through despite numerous follow-ups including that of 15th April 2021. Management promised to continue reminding KCCA to approve the submitted adjusted plans. + +I advised the Accounting Officer to liaise with the contractors to scale up project works to ensure that the project is completed within reasonable timelines. I advised the Accounting Officer to follow up with the Physical Planning Authority/KCCA to ensure that the building plans are approved as soon as possible. + +3.14. SCIENCE, TECHNOLOGY AND INNOVATION SECTOR + +3.14.1. + +Closure of the Ministry of Science, Technology and Innovation + +The GoU established the Ministry of Science Technology and Innovation in 2016, and it started its operations in 2017/2018 as Vote 023, with a mandate to oversee the overall contribution of the Science Technology and Innovation Sector towards attaining key objectives focused on mainstreaming Science, Technology, and Innovation in the development process of Uganda. + +86 + + + + + + + + + + + +At the time of the transfer, the Ministry had the following subventions and independent projects in pursuit of its objectives; + +i) + +Uganda National Council for Science and Technology (UNCST); + +ii) + +The Presidential Initiative on Banana Industrial Development (PIBID); and iii) Kiira Motors Corporation (KMC). + +iv) + +Uganda Industrial Research Institute (Vote 110), an agency under the ST&I Sector and self-accounting. + +v) + +The commercialisation of sericulture Technologies and Innovations(TRIDI) vi) Presidential Scientific initiative on Epidemics (PRESIDE) is an umbrella organisation for multiple scientific research organisations. + +The Ministry was later abolished effective 1st July 2021, and its operations were transferred to the President's Office. The Ministry's closure may slow down the developments in the above entities during re-organisation. + +I noted that there were also no transition plans for the merger and continuity of operations of the subventions. Lack of transition arrangements could delay research projects, loss of assets and critical human resources. + +3.14.2. + +Un-deployed Staff upon the abolition of the Ministry + +The Ministry had a structure with a total staff establishment of 154 positions, of which 136 positions had been filled and had a recruitment plan for another fifteen (15) staff of different cadres. + +As a result of the closure of the Ministry, the staff were rendered redundant and had not received their emoluments by the end of November 2021. In addition, 48 common cadre staff had been transferred back to the Ministry of Public Service, as the technical and support staff employed by the Ministry await their fate. + +I noted that some staff were living under uncertainty, which may lead to redundancy escalation and high costs to the Government. + +Management explained that the Ministry of Public Service is reviewing the structure, and once it is approved, a validation exercise will be undertaken to determine those who fit in. Those that will not be absorbed will be handled in line with the public service standing orders. + +3.14.3. + +Progress on the COVID-19 Vaccine, Diagnostics and Treatment Projects + +The Ministry of Science, Technology and Innovation (MOSTI) was appropriated supplementary funding of UGX.31.033Bn, which was meant to support 23 selected projects of scientists and innovators engaged in CoVID-I9 scientific research, including the procurement of specialised machinery and equipment, development of vaccines, drug diagnostics and other operational costs. The funds were divided into the purchase of Equipment (UGX.15.787Bn) and Operational Costs (UGX.15.787Bn). + +As of 30th June 2021, the Ministry had received 86.5% of the Operational funds and + +100% of the Equipment Funds. + +87 + + + + + + + + + + + +Of the 23 projects, five were for Diagnostics, four for the development of Vaccines, nine for the development of treatments, and five for material support to existing projects. Of the 23 projects initially selected and funded, 19 progressed while others stalled. Their progress was slowed down by the merger of the Ministry without transition plans and subsequent delays in funding. + +These delays affect the overall intention of the emergency initiative of averting the adverse effects of COVID-19 on the population. + +3.15. TRADE SECTOR + +3.15.1. + +Under Absorption of funds by UDC + +UDC received UGX 263.47Bn, from the Government of Uganda, of which only UGX 119.29Bn, (45.3%), was spent by the entity during the year resulting in an unspent balance of UGX. 144.18Bn, (46%) + +Out of the total funds received, UGX.126.2Bn was for Covid-19related interventions, and only UGX.55.9Bn (44.3%) was spent. + +This may be partly attributed to the release of funds before completion of feasibility studies, the release of funds tagged to specific projects in disregard of UDC project appraisals and the un-timely release of funds, among others. + +Under-absorption undermines the intention of Government funding for import substitution and export promotion strategies spearheaded by the Corporation and averting the effects of Covid-19. + +3.15.2. + +Extent of Implementation of Planned Development Projects by UDC: + +I noted that out of the 17 development project activities planned to be implemented over the year, 15 were funded under the Covid-19 supplementary budget. Two development projects, namely: Soroti Fruit Factory and Feasibility studies & Business Plans, were funded under the normal budget. + +A review of the extent of implementation revealed that; + + + +- Only (3) three development projects were fully implemented, i.e., shareholder's loan to Atiak Sugar Factory; Acquisition of shares in Mabale Tea Factory; and Acquisition of shares in Bukoona Agro Processors Limited. +- Five (5) development projects were partially implemented. +- Eleven (11) projects were not implemented at all. + +This was attributed to the conditional release of funds tied to specified development projects and inadequate institutional capacity to appraise and implement investment projects. + +Under-absorption undermines government effort in attaining its goals. + +88 + + + + + + + + + + + +3.15.3. + +UNBS Inadequate Capacity in Testing and Enforcing Commodity Standards + +Section 3(1) of the UNBS Act spells out the functions of the Bureau which, among others, include providing for the testing of locally manufactured or imported commodities with a view to determining whether the commodities conform to the standard specification as well as making arrangements or provide facilities for the examination, testing or analysis of commodities and any material or substance from which or with which and how they may be manufactured, produced, processed or treated. However, I noted; + + + +- UNBS released 633 consignments due to the absence of standards to test these commodities for conformity. + +- The Bureau also released 366 consignments without testing product standards due to lack of capacity, which may lead to sub-standard products on the market. + + + + + +- The Bureau had staff presence at only 27 out of the 170 border entry points. This was attributed to understaffing at the Bureau. + +Although management explained that it had since developed the capacity to test the majority of commodities but it lacked some product standards. + +3.16. TOURISM SECTOR + +3.16.1. + +Decreasing Tourism Revenue due to Covid-19 + +Over the last two years, the tourism sector has been greatly hit by the unprecedented effects of the Covid-19 pandemic that has greatly affected all sectors of the economy, including the tourism sector. + +I observed a significant fall in tourism revenue collections for all of the entities in the Sector whose revenue is entirely dependent on tourism. This was attributed to the countrywide restrictions on the movement of persons, including tourists, due to the Covid-19 lockdown. As a result, tourist visitor numbers reduced from 255,711 to 103,812 (40.6%) + +The reduction in revenue collection has been significant and has directly affected the implementation of the planned activities across the Sector. + +3.16.2. + +Invasive species removal in the Wildlife Conservation Areas in Uganda + +I noted that most of the Protected Areas in Uganda are currently undergoing ecosystem changes as rangeland infestation by invasive and exotic plant species limits the grazing land. These plant species include; Dichrostachys cinerea, Lantana camara, Parthenium hysterophorus, Opuntia vulgaris, Imperata cylindrica, Maeruade cumbens, Caesalepina decaputala, Acacia hockii, Tecoma Stan, Senna siamea and Thevetia peruviana. + +89 + + + + + + + + + + + +During my inspection of Queen Elizabeth, Lake Mburo Park, Murchison Falls, and Kidepo Valley National Parks, I noted that these plant species continue to cover large expanses of grazing land despite the Uganda Wildlife Authority's effort to eliminate them. This is reducing the populations of specific grazers such as hippos, buffalos, zebras, topis, and Uganda kobs. + +This is attributed to climate change and inadequate funding to remove invasive species from the national parks. + +3.16.3. + +Merger of entities within the Sector + +On 22nd February 2021, Cabinet under minute No. 43 (CT 2021), a decision to merge Uganda Wildlife Authority with Uganda Wildlife Conservation Education Centre was undertaken. However, there were no transitional arrangements and plans to facilitate a smooth merger by the time of the audit. + +Delays in mergers create uncertainties among staff, reduce sector performance and subsequently lead to misappropriation of entity assets by disgruntled staff. + +3.17. + +HIGHLIGHTS FROM THE AUDIT OF LOWER LOCAL GOVERNMENTS FOR THE PERIOD + +2019/2020 + +I undertook an audit of a total of 2,048 Lower Local Governments (Sub-counties, Town Councils and Divisions), covering two financial years 2018/2019 (762 LLGs) and 2019/2020 (1,286 LLGs). I noted the following cross cutting issues; + +3.17.1. Under staffing + +I noted that 217 LLGs in FY 2018/2019 and 175 in FY 2019/2020 had significant staffing gaps averaging 48% and 60% shortages respectively. Details are in the table 26 below. + +Table 26 : Understaffing in Lower Local Government + +Financial Year Approved positions Filled up Shortage Percentage shortage +2018/2019 3,847 2,008 1,842 48% +2019/2020 6,797 2,713 3,823 60% + + + + +Source: OAG analysis + +Understaffing overstretches the available staff beyond their capacity, creates jobrelated stress to the fewer staff and negatively affects the level of public service delivery to the community. + +The Accounting Officers explained that staffing at LLG level is a responsibility of the respective Districts and Municipal Councils. + +I advised the Accounting Officers to follow up on the matter with the relevant authorities and ensure that most of the vacancies are filled. + +90 + + + + + + + + + + + +3.17.2. + +Budget implementation in sample LLGs for FY 2018/2019 and 2019/2020 + +I sampled 627 LLGs for FY 2018/19 and 250 LLGs for FY 2019/20 to assess the implementation of the budget and noted the following significant audit findings: + +3.17.2.1. Performance of Central Government Grants + +The LLGs sampled budgeted to receive UGX.146,160,919,043 for FY 2018/2019 and 2019/2010 (revised) as Central Government Grants). However, UGX.134,095,135,622(92%) was received resulting into a shortfall of UGX.12,065,783,421(8%) majorly attributed to budget cuts as shown in the table below. + +This affected service delivery in Lower Local Governments Table 27 : Performance of Central Government Grant + +Financial Year Revised Budget Actual Receipts Variance Percentage Perfomance +2018/2019 92,214,094,491 87,717,635,886 4,496,458,605 95% +2019/2020 53,946,824,552 46,377,499,736 7,569,324,816 86% + + + + +Source: Financial Statements + +I advised the Accounting Officer to always engage the PS/ST through their respective higher local governments to ensure that all revenue is availed to the entity as planned. + +3.17.2.2. Local Revenue Performance + +The LLGs sampled had approved budgeted total local revenue for the 2 financial years amounting to UGX.91,399,324,016 (revised) out of which UGX.74,615,525,633(82%) was collected resulting into a shortfall of UGX.16,783,798,383(18%), as shown in the table below: + +Table 28 : Performance of Local Revenue + +Financial Year Revised Budget Actual Receipts Variance Percentage Perfomance +2018/2019 68,424,052,397 57,321,631,217 11,102,421,180 84% +2019/2020 22,975,271,619 17,293,894,416 5,681,377,203 75% + + + + +Source: OAG analysis + +The Accounting Officers mainly attributed the underperformance of local revenue in the financial year 2019/2020 to the Covid19 lock down which affected several of their major sources of local revenue. + +I advised the Accounting Officer to always ensure that local revenue is collected as budgeted. + +91 + + + + + + + + + + + +3.17.3. Quality of Financial Statements + +In my previous year’s reports, I noted that there was still a problem with the presentation of financial statements in the Lower Local Governments. In the financial years under review, I noted that there was an improvement in the quality of financial statements with only 37 (6%) LLGs out of 627 and 22 (9%) out of 250 LLGs in financial years 2018/2019 and 2019/2020 respectively having qualified audit opinions. + +I however noted the following matters; UGX 202, 282,811 was improperly accounted for in FY 2018/2019 and UGX 80,259,257 remained Un accounted for in FY 2019/2020. + +The most common shortcomings were; Inconsistences in the amounts in the financial statement, Errors in Financial Statements, Incomplete financial statements and notes, wrong presentation of figures in financial statement, failure to prepare financial statements and unsupported figures in the financial statements. + +Preparation of financial statements is a stewardship role in which accountability for application of resources entrusted to Accounting Officers is reported to the stakeholders. Failure to present financial statements properly impairs interpretation and analysis of entity performances. + +The Accounting Officers attributed this to staff changes that were made in the middle of the financial year, difficulty in acquiring books of accounts from district stores and lack of training. I advised the Accounting Officers to liaise with responsible authorities to ensure that the staffing gaps are addressed and the necessary trainings undertaken. + +3.17.4. Land Management in Local Governments + +I noted that 331 (53%) Lower Local Governments out of the 627 in FY 2018/19 and 188 (75%) Lower Local Governments out of 250 in FY 2019/20 sampled respectively had land management challenges such as: + + + +- 41 LLGs in FY 2018/19 and 24 LLGs in FY 2019/20 respectively lacked land titles, including where their headquarters are located. +- 41 LLGs in FY 2018/19 and 24 LLGs in FY 2019/20 respectively lacked Area Lands Committees or the committees were non-functional. +- In the circumstances, there is risk of persons trespassing, disputes and litigation. + +Majority of Accounting Officers explained that it was the responsibility of the Districts or Municipal Councils to obtain these land titles. A number of other Accounting Officers cited insufficient funding as a cause for failure to have fully functional land committees + +Government should consider taking deliberate steps to fund the survey and titling of all government land at the Local Governments. I also advised the Accounting Officers to constitute the Area land Committees. + +92 + + + + + + + + + + + +3.17.5. + +Lack of Urban Physical Planning Committees + +I noted that 32 Town Councils in the two financial years had no Urban Physical Planning Committees in place or the Committees were not fully functional. + +Consequently, physical developments undertaken within the physical planning areas may not have been well determined and managed by the respective LLGs. This was mainly attributed to lack of sufficient funds to operationalize the physical planning committees. + +I advised Government to engage the relevant stakeholders to nominate members and ensure that the committees are fully instituted and are functional. + +93 + + + + + + + + + + + +PART 4: INFORMATION SYSTEMS, ENGINEERING, VALUE FOR MONEY AND SPECIAL + +AUDITS + +During the financial year 2020/2021, I undertook three Information Systems audits, three Engineering audits covering 90 projects, eight Value for money audits. In addition, I undertook special and forensic audits which are reported on separately. + +Below is a summary of the key findings I noted in each category, the details of which are included in individual reports issued separately. + +4.0. + +HIGHLIGHTS FROM THE ENGINEERING AUDITS + +4.1. Value for Money Audit and Assessment of Urban Infrastructure projects implemented by 22 Municipal Councils under the USMID-AF Program for projects started in the Financial year 2018/2019 + +For the financial year 2020/21 a total of 14 infrastructure projects procured in 2018/2019 under the World Bank funded Uganda Support to Municipal Infrastructure Development-Additional Financing (USMID-AF) Program implemented by 22 Municipal Councils namely Arua, Gulu, Kitgum, Lira, Apac, Soroti, Moroto, Mbale, Tororo, Busia, Kamuli, Jinja, Lugazi, Entebbe, Hoima, Mubende, Fort Portal, Kasese, Mbarara, Ntungamo, Kabale and Masaka were audited and assessment of the performance of these projects across the 22 municipalities carried out including a selected sample of non-USMID i.e. Uganda Road Fund (URF) funded projects, and Schools Facilities Grant (SFG)/Transitional Development Grant (TDG)/Discretional Development Equalisation Grant (DDEG) funded projects implemented in the participating municipalities. + +The total contract value of the projects assessed was UGX 192,742,021,942. Below is a summary of the Key findings I noted, the details of which are included in the consolidated audit report for the 22 Municipal Councils and the 22 Individual reports issued separately; + + + +- Overpayments and irregular expenditure on USMID and Non USMID projects were noted during the audit. This comprised of overpayments of UGX. 214,862,488 and UGX 459,323,494 on USMID projects and Non-USMID projects respectively. The audit assessment also revealed various questionable expenditures, irregular payments, and potential financial losses attributable to different contractual irregularities totaling to UGX. 817,571,137 on the USMID funded projects in Arua, Jinja and Mbale + +Municipalities. + + + +- All the municipalities had completed their projects by the time of the audit and the entire infrastructure in the municipalities was in use with the exception of Entebbe whose project was phased. Although the projects were finally completed there were delays in completion of the projects within the stipulated contract timelines. + + + +- During physical inspection of the municipalities of Mbale, Moroto and Lira, major defects were noted such as missing draining/emptying pipe on the + +94 + + + + + + + + + + + +soaking tank (leads to poor drainage), Clogged manholes and missing manhole covers, potholes on roads and poor drainage leading to ponding. + +- All the participating municipalities implemented environmental protection measures with the exception of Arua Municipality. Further, all the participating municipalities implemented social/safety measures except Soroti and Tororo Municipalities. + + + + + +- Inadequate allocation of funds in the budget for operation and maintenance of USMID infrastructure was noted in the municipalities except for the municipalities of Lira, Hoima, Fort Portal, Masaka and Gulu. + +I advised the Accounting officers of the Municipal Councils to ensure that; + +- All amounts overpaid are recovered by the respective municipalities. +- Contractors have updated work programs and delays in delivery of projects within stipulated contract timelines should be penalized by invoking liquidated damages clauses +- Inspections are carried out during the DLP as some defects can only surface while the structure is in use and report on the progress of the structure during the period and have all the identified major defects rectified. +- All municipalities should plan, budget and implement operation and maintenance activities to avoid early deterioration of the facilities. + +Conclusion + +Owing to the challenges faced by the Municipal Councils during the delivery of USMID- AF Urban infrastructure as highlighted in this report, audit observed that these challenges notable improvements have been noted in planning, cost control enforcement of internal controls for certification, supervision and monitoring, and general contract management for the USMID Infrastructure projects, however these gains have not been translated to the Non USMID projects as URF, SFG,DDEG accordingly the Town Clerks must ensure that Non USMID projects are equally effectively monitored and supervised to ensure delivery of the works within the planned cost, quality and time requirements + +4.2. + +Value for Money audit and assessment of Infrastructure projects implemented by 60 Local Governments under the UgIFT Program for Construction of Seed Schools and Health Facilities in the Education and Health Sectors + +For the financial year 2020/21 a total of 109 infrastructure projects implemented by 60 Local Governments involving the construction of seed schools and Health centre IIs under the World Bank funded Uganda Inter-Governmental Fiscal Transfer (UgIFT) Programme for Results was audited and assessment of the performance of these projects across the 60 Local Governments municipalities carried out for the Education Sector and Health Sector. + +95 + + + + + + + + + + + +Under the UgIFT programme, the World Bank committed the total of US$500m over the period FY 2018/19 to FY 2023/24 to support decentralized services in Education, Health, Water and Environment, and Agriculture (micro-scale irrigation) as well as support I nterventions in Refugee host communities, With this financial support, Government committed to construct Seed Secondary Schools and Upgrade Health Centre IIs to IIIs in Sub-Counties, extend rural water to underserved communities including the newly constructed seed Secondary Schools and Health Centre IIIs, and also provide Small Scale Irrigation equipment to farmers to enhance their productivity. + +The scope of the audit and assessment covered 53 seed secondary schools’ construction projects with an overall total contract sum of UGX 111,860,803,846 and 57 health centre construction projects with an overall total contract sum of UGX 33,743,610,012. + +Below is a summary of the Key findings noted, the details of which are included in the consolidated audit report for the 60 Local Governments and the 60 Individual reports issued separately; + + + +- In assessing the adequacy of the design process for the buildings, evidence of needs assessment, presence of geotechnical investigations report, design report, drawings and specifications were considered as key requirements, it was observed that detailed design reports were not availed to all local governments by the Ministry of Education. + + + +- Overpayments and irregular expenditure amounting to UGX 3,153,351,606 was noted during payment for construction works in some of the seed schools. Furthermore, UGX 3,588,640,939 were made without providing the breakdown of work items being certified. + + + +- During physical inspection of the Seed school infrastructure works, the participating LGs with exception of 3 LGs had defects such as honeycombing in concrete, absence of anti-sag rods, cracks in the ceilings, absence of expansion joint in the ICT blocks, exposed steel reinforcement, inadequate painting in the roof structures. + +The observed defects, if not addressed, will result in increased maintenance costs for the local governments. + +- In assessing the adequacy of the design process for the buildings, evidence of needs assessment, presence of geotechnical investigations report, design report, drawings and specifications were considered as key requirements. It was observed that 39 local governments did not carry out needs assessment, geotechnical investigations, produce design reports in addition work specifications were also omitted. + + + + + +- Overpayments and irregular expenditure totalling to UGX 920,905,442 were noted during payment for construction works of the Health Centre IIs in LGs and municipalities. Furthermore, UGX 209,175,652 were made without providing the breakdown of work items being certified. + +96 + + + + + + + + + + + + Review of the status of the contractors’ equipment mobilization under + +construction of HCs revealed that out of the 56 local governments, only the 4 local governments had evidence that the contractors mobilized all required equipment. Further, only 13 local governments had evidence that the contractors mobilized all required equipment under the construction of seed schools. + + + +- Review of land ownership revealed that 7 local governments did not avail any evidence of acquisition or ownership of the land on which the Seed schools and health centres were constructed. + +I advised the Accounting officers of the Local Governments to ensure that; + + + +- Prior to implementation of any infrastructural projects of similar nature; all due design procedures such as needs assessment, geotechnical investigations are undertaken and documented by the local governments to facilitate adequate designs. + + + +- Overpayments in respect of quantities certified in excess of the actual works executed worth UGX. 3,153,351,606 in the Education Sector and UGX. 920,905,442 in the Health Sector should be recovered. In addition, the technical officers should review the other items that were not part of the audit sample and have additional checks in the certification process to minimise the errors in quantification. + + + +- Investigate the basis of payment of the questionable amounts totalling to UGX.3,588,640,939 in the Education Sector and UGX.209,175,652 in the Health Sector and take appropriate action. + +- Enforce the requirement for contractors to fully mobilize adequate equipment to undertake the works. In addition, any demobilization during contract implementation should be with the written approval of the project manager/supervisor. + + + +- All the defects/omissions observed should be corrected. Furthermore, additional inspection of the contractor’s works should be undertaken and any defects identified remedied immediately. + + + + + +- Fast track the process of obtaining formal ownership of the land on which the infrastructure is being constructed. Going forward, Accounting Officers should ensure that projects of similar nature are constructed on land that is formally owned by the respective local government. + +Conclusion + +Owing to the challenges faced by the various local governments during the delivery of UgIFT infrastructure projects in the education and health sectors as highlighted in this report, audit observed that these challenges are a result of gaps/weaknesses in the planning and costing of works, enforcement of internal controls for certification, supervision and monitoring, and general contract management. + +97 + + + + + + + + + + + +Accordingly, the relevant stakeholders should enhance the capacities of the local governments through involvement of local governments in the planning for future projects of similar nature, organizing tailor made trainings for technical staff, review of the staff structure in the engineering department and ensure that it is adequate and appropriately staffed. The relevant ministries should develop standardized guidelines for costing of civil works and strengthen the monitoring and supervision role in local governments. + +4.3. + +Engineering Audit of Selected Road and Building Projects in Kampala Capital City Authority (KCCA) + +For the financial year 2020/21, a total of 24 public works projects (Road upgrade/rehabilitation, signalization of road junctions, and building projects) with a total contract sum/value of UGX.333.72tn were implemented by KCCA. A sample of Eight (8) projects (road, signalization and building projects) with a contract value of UGX. 276.92tn. were selected for audit. This sample represents 82.98% of the value of the 24 projects. + +Eight (8) of the KCCA projects were sampled for audit comprising of three (3) road projects funded by the World Bank under the Second Kampala Institutional and Infrastructure Development Project (KIIDP 2) and five (5) projects funded by the Government of Uganda (GoU). The five projects funded by GoU comprised of three (3) road upgrading/ rehabilitation projects and two (2) building projects, the following key observations were noted on these projects + +i. + +Delayed relocation of existing services + +Delayed relocation of existing utilities for water and power for the three KIIDP road projects of Kulambira ring road 4.82Km, spur to Najjera road 0.7Km, Nakawa Ntinda road 2.8Km, Kabuusu –Bunamwaya – Lweza road 8.06Km and Lukuli road 7.71Km resulted in significant delays in execution of road works by up to 17 months. The Accounting Officer explained that public utility services by Statutory Undertakers (UMEME, NITA, UG POLICE, NWSC and UTL) in particular Kampala City are so complex that even the owners/operators do not know the exact location of their infrastructure, In addition, obtaining of shut-down permits from UMEME was always delayed as UMEME had to fit request within their planned shutdown programme. + +I advised the Accounting Officer to ensure that relocation of services is implemented in time, and works executed as per the approved work programme. + +ii. + +Unjustified and overpayments amounting to UGX 1.355Bn + +It was noted that on some of the projects, payments equivalent to UGX.1.355Bn had been made for quantities of works in excess of those executed, not backed up by the necessary payment supporting documentation or contrary to the contract conditions as follows; + +98 + + + + + + + + + + + +Table 29 : Unjustified Payments and Overpayments + +S/No Project Name Payment (UGX) Remarks +1 Upgrading to Paved Standards of Kulambiro Ring Road (4.82km) including Spur to Najjera Road (0.7km), Reconstruction and Dualling of Nakawa Ntinda Road (2.8km) (Including Signalization of Four Junctions) and Reconstruction and Widening of Acacia Avenue (1.45km) (including Signalization of Six Junctions) – Lot 1 80,849,062 Payment of Unverified NITA Relocations + 503,716,979.38 Unaccounted for Payments of for relocation of services + 215,992,827.81 Payments for quantities of works in excess of those executed +2 Upgrading to paved standard of Kabuusu –Bunamwaya – Lweza road (8.06Km) – Lot 2 56,860,150 Irregular Payment for Costs due to Extension of Time + 348,214,079.83 Payments for quantities of works in excess of those executed +3 Upgrading of Cecila Road (1.3Km) 14,074,910 Payments for quantities of works in excess of those executed +4 Construction of Kitintale Market – Phase I 119,717,000 Payments for quantities of steel reinforcement in excess of those in the bar bending schedule +5 Reconstruction of Ntinda II Road 16,213,200 Payments for quantities of works in excess of those executed +TOTAL 1,355,638,209 + + + + +I advised the Accounting Officer to ensure that the amounts certified and paid in excess of the quantities executed, unaccounted for payments and irregular/unjustified payments are recovered from the contractors prior to concluding the contracts. + +iii. + +Delayed Land Acquisitions for the KIIDP Road projects + +There was delayed acquisition of land by the Authority for the two KIIDP road projects of Kulambiro ring road 4.82 Km, Spur to Najjera road 0.7 Km, Nakawa Ntinda road 2.8 km and Acacia Avenue 1.45 Km under Lot 1, and Kabuusu – Bunamwaya – Lweza road 8.06Km for Lot 2 resulting in delays of more than 12 months significantly affected the progress and timely completion of the works on these projects. The Accounting Officer explained that it has always been the plan of KCCA to expedite land expropriation in time and issue commencement orders for sites that are free of any encumbrances, however the delayed land acquisition was caused by absentee land lords, and unwillingness by some PAPs to accept the Chief government Valuers value of compensation. + +I advised the Accounting Officer that for future projects, the entity should ensure that contractors are issued with commencement orders when the site for construction is fully accessible. + +99 + + + + + + + + + + + +iv. + +Failure to undertake Ground Investigations for Building Projects + +Detailed ground investigations to inform the foundation designs were not undertaken during the design of Kitintatle Market and the Maternity ward at Kiswa Health Center. Such omissions can lead to inadequate designs which may compromise the safety of the buildings during usage. The Accounting Officer explained that for the Kitintale Market and Kiswa Health Center Projects, no funds were availed for geotechnical investigations + +I advised the Accounting Officer to ensure that detailed ground investigations are undertaken to ensure that the constructed buildings can safely be put to usage when completed and going forward, the Accounting Officer should ensure that for projects of similar nature, detailed ground investigations are undertaken during the design phase. + +5.0. INFORMATION SYSTEMS AUDITS + +In accordance with Sections 13 and 22 of the National Audit Act (NAA) 2008, I am mandated to audit all the government investments and carry out special audit engagements that include information technology (IT) Audits. Accordingly, I planned and executed my audits following ISSAI 200: Fundamental Principles of Public-Sector Auditing and INTOSAI 5100 guidance. + +I conducted three (2) audits namely; Information Systems Audit of Civil Aviation Authority; the Academic Information Management System (AIMS) and Uganda National Land Information System (Ug-NLIS). Below are redacted version of my key findings. + +5.1. Information Systems Audit of Civil Aviation Authority + +i. Disintegrated Systems/Manual Interfaces + +The entity has twelve independent IT systems which are not integrated to share information. As such, information sharing was purely manual despite being explicitly provided for in the respective system requirements and contracts. This increases the risk of human errors and abuse during data extraction and re- entry. This was attributed to lack of integrated planning for IT interventions. + +Failure to automate sharing of information between systems compromises the data integrity, creates opportunities for fraudulent falsification of records. In addition, maintaining multiple systems increases maintenance costs and increases man hours because of manual extraction and entry of data which would otherwise be used for other productive activities. + +I advised management to comprehensively plan for IT projects. In the meantime, management may explore interfacing the systems as they plan to implement an Enterprise Resource System to ensure that various departments share data seamlessly. + +100 + + + + + + + + + + + +ii. + +Lack of Integrated Revenue Systems at CAA + +Despite a big shift to digitalisation and the Authority spending UGX.1.13Bn in acquiring a Passenger Tracking System with the aim of ascertaining the number and identity of passengers on a given flight, two years later, the system was not being used consistently and by-passed from time to time. As a result, the Authority has no independent mechanism to ascertain the number of passengers on each flight, but entirely depends on manual submissions from airlines to bill for revenues. There is a risk of under declaration of passengers which can lead to revenue loss. In addition, the system produces incomplete information. + +Under the circumstances, there is a risk that the amounts disclosed in the financial statements were not accurate and the system does not provide reliable information. + +I advised management to explore possibilities of enforcing the use of the system. + +iii. Failure to capitalise Information System Intangible Assets in the Financial + +Statements + +Despite spending UGX.4.723Bn on system development, Civil Aviation Authority (CAA) has not capitalised intangible assets. These include licenses, software, operating systems, subscriptions. + +As a result, the assets value is understated in financial statements. + +Management explained that they have engaged a consultant to carry out verification of all UCAA Assets; ICT Assets inclusive. + +I advised management to ensure that such assets are properly recorded and disclosed in the financial statements. + +iv. + +Failure to implement Cargo Handling IT Systems + +One of the major revenue streams of CAA is cargo handling fees levied on the airline operators. Although CAA contracted two companies through concession agreements where 5% is charged on cash exports, 10% on general handling and 10% on standard charge related to aircraft and passenger handling. The Authority does not have an independent system to track and reconcile the revenue collected before charging the percentage as per the concession agreements. The information is not shared in real-time due to lack of appropriate IT systems and they rely on information provided by the contractors. + +This situation poses a risk of loss of revenue as a result of under-declaration of income from cargo handling operations by the handling companies. + +Management explained that they have initiated procurement for extension of the Point of Sale (POS) system to new concessionaires. The Specifications include provision for interface with the existing Cargo Management systems. + +101 + + + + + + + + + + + +I advised management to expedite the procurement and installation of the system. Meanwhile, CAA should engage the contractors to gain read-only access to the systems and extract accurate information for monitoring and reconciliation. + +v. + +Tenants/Concessionaires without Point of Sale (POS) machines + +The Point of Sale (POS) system is being used to track sales of airport tenants to inform the rental charges, which are a percentage of the sales. However, it was noted that after ten years of implementation, only 7 out of the 18 concessioners have POS terminals installed which creates a risk of revenue loss. I also noted that even for those using the POS system, were using them selectively, hence under-declaration of sales. + +In addition, there is a risk that tax-free goods are being sold to non-passengers compounding revenue losses. This results into loss of revenue both to CAA and + +URA. + +Management explained that they had 14 concessionaire locations at the deployment of the POS system in 2013. In addition, CAA will deploy a new system to cover the new locations and the procurement has been initiated. + +I advised management to fast-track the procurement and deployment of the new system. + +5.2. Information Systems Audit of the Academic Management Information System + +(AIMS) + +i. + +Contested Ownership of the AIMS (Source Code) + +The Ministry of ICT and National Guidance through its rationalization policy of promoting locally developed information systems agreed with Kyambogo University (KYU) to enhance its E-Kampus for sharing with other Public Universities and Self Accounting Tertiary Institutions (PUSATIs). Subsequently the user requirements were reviewed, functionalities improved and the system was rebranded to AIMS. + +A review of the framework contract between The Ministry of ICT and National Guidance and the supplier (Zeenode Uganda Limited) states that; the purchaser (MoICT&NG) acknowledges and agrees that the supplier and/or its licensors own all intellectual property rights in the services and the documentation. It was brought to my attention during my review that there is a disagreement of ownership of the source code and the parties are in court. + +I await the outcome of the court decision. + +102 + + + + + + + + + + + +ii. + +Unclear Ownership of the system + +The Ministry of ICT & NG undertook the enhancement and deployment at the Public Universities and Self Accounting Tertiary Institutions (PUSATIs) of the E- Kampus into the AIMS under the innovation fund at a cost of UGX 2.1 Bn. Subsequently, the Ministry of ICT & NG procured technical support and maintenance services of the same system. + +However, I noted that the “vendor” (Zeenode) was charging UGX. 30,000 per student for use of the system. + +This casts doubt on the ownership of the system. I further noted that the system was switched off for two weeks December 2020 over non-payment of service and maintenance fees. + +As earlier noted, the case is before Court. I await Court’s decision. + +iii. + +No right to audit provided in the contract + +The contract between Ministry of ICT & NG and the supplier did not include any "right to audit by third party" clause. As a result, during the execution of the audit, I was denied access to key components of the Information system and I cannot provide assurance on their adequacy. + +Management explained that it will consider including the clause on Right to Audit software, systems, data, in Contracts in collaboration with MoFPED and PPDA. + +I advised management to engage all stakeholders to make a provision for providing audit assurance in the contract. + +iv. + +Failure to update the Source Code held in Escrow + +The contract between Ministry of ICT & NG and the supplier provides that any additions and inventions added by the purchaser and those that are unique to the purchaser will be documented and copyrighted to the purchaser upon installation and development. + +I noted, however, that even though the AIMS has been in continuous development for the last three years, there is no evidence that the original source code held in Escrow has been updated and neither was copyrighting of all changes to the AIMS after the contract signing. + +Management acknowledged the omission and stated that the source code was not periodically updated. The Ministry committed to ensure continuous periodic updates to all source code held in Escrow. + +I advised management to keep the code updated in real time. + +v. + +Data Ownership of the AIMS + +A review of the AIMS operations revealed that there is no clear data owner of the universities' data. The system vendor; + +103 + + + + + + + + + + + +- Has unlimited access to the application that is used to process the PUSATI information. +- Has control over the AIMS database and operating system environment +- Has the only Administrator privileges on the AIMS for all the PUSATIs. +- Issues access rights to the AIMS system users. + + + +This presents a conflict of interest as well as data integrity risk when the system developer has continuous access to the production environment. + +Management explained that Clause 19 (ii) of the Framework contract specifies that each PUSATI shall own its individual data and processes that they run on the System. The Ministry shall ensure that remedial action is taken as per recommendation as part of the new Policy under development. + +I advised management to consider remedial action that would limit the risk of unlimited access and manipulation to both privileged and critical information of the PUSATIs + +vi. + +No data protection after contract termination + +I noted that in the framework contract signed between the MoICT & NG and the supplier, there is no provision for how the PUSATI data is to be handled at the end of the contract. Without such a provision, the PUSATIs have no way to require the third party to return institutional data or otherwise dispose of such data in a way that does not jeopardise the information security and reputation of the institutions or their affiliated institutions. + +Management committed to address the matter as part of the Policy on System development for Government. + +I advised management to devise means of ensuring that the data will be safely returned or destroyed in order to avoid the associated risks. + +vii. + +Deviation from the Contract terms by ZUL + +Although the Framework Contract between MoICT and the suppler stipulates that the supplier shall ensure uninterrupted and error-free services, on 12th December 2020, the supplier without consequence, denied services to all PUSATIs for a period of two weeks citing alleged non-payment by MoICT & NG. This led to loss of revenue, critical time and information loss thus delaying decision making. + +Management promised to engage the vendor and ensure future contracts guard against such occurrences. + +I advised management to engage the Attorney General and devise means of protecting data as they wait for the disposal of the court case. + +104 + + + + + + + + + + + +viii. Sustainability of the AIMS + +The maintenance contract with the supplier expired in December 2020 and MoICT&NG had to pay the vendor an additional UGX.1Bn to guarantee continued support and maintenance until the 30th June 2021. It was proposed that beyond that period, PUSATIs would meet their own costs at UGX.30,000 per student per year, but there was no agreement or MOU with the system provider to ensure compliance by the PUSATIs. There is a risk of non-continued use of the system despite such investments by government. + +I advised management to ensure that all foreseeable costs of the system are analysed and evaluate sustainability of the project. In future, GoU should aim at outright acquisition or ownership and development of any public information system to avoid escalation of costs and ensure sustainability. + +ix. + +Lack of Change Management Procedures + +According to Section A.12.1.2 of the ISO/IEC 27001:2013, Changes to the organisation, business processes, information processing, facilities and systems that affect information security shall be controlled. I established that no change management policies were in place at either MoICT&NG or the universities in regard to the AIMS and as such, Change Requests from users and other changes deemed fit by the supplier were implemented on the live environment without any documented authorisation from either MoICT or PUSATIs management. + +I advised management to integrate change management policies/procedures in project design and implementation. + +5.3. Information Systems Audit of Uganda National Land Information System (Ug- + +NLIS) + +The Government of Uganda sought assistance from the World Bank to make reforms in the Lands Sector through the Competitiveness and Enterprise Development Project (CEDP). The Modernizing of the land administration activity was implemented through a project named the "Design, Supply, Installation and + +Implementation of the National Land Information System Infrastructure + +(DeSINLISI) by the Ministry of Lands Housing and Urban Development (MLHUD). The main objective of the DeSINLISI) project was to establish a National Land Information System Infrastructure for the entire country to foster efficiency and transparency in land transactions processing as well as uphold the land tenure security. + +I undertook an audit of the system with the aim of assessing it effectiveness in supporting the land registration process to achieve intended objectives. + +Below are the key findings: i. Land Registration Process + +I reviewed the land registration process and noted the following gaps that have led to poor service delivery: + +105 + + + + + + + + + + + + + +- Despite investing substantial amounts of money in the land system, the land registration processes are largely still manual and no transactions take place without a manual file. + +- The system encourages rampant use of agents; sometimes, titles change hands four times before getting to the registrar. + + + + + +- Currently, changes on land titles are effected using manual typewriters, which are prone to error and waste time due to a requirement of scanning out to capture the manual changes. + + + +- There is no mechanism of communication to clients whose titles are ready; I noted that there are a number of duplicate copies of titles that have not been picked by clients, some as far back as 1997. + + + +- The system does not provide for functionality to perform electronic printing and sealing of land titles as a security feature in the certificate of titles. + +The above gaps have led to unjustified delays in processing of land transactions, frustrating the public. + +I advised management to automate the land registration process; enhance system functionality to enable registered proprietors to create accounts to eliminate land agents (brokers) and an SMS alert system for the public to keep track of submitted applications. + +ii. Subdivision of plots + +The workflow process is so lengthy as it has seventeen levels of approval with duplicated roles. District physical planners as key technical players were left out of the system workflow process. The system workflow process is not flexible to allow queries at different approval levels without cancellation of the transaction. In addition, the applications involving surveys are submitted physically at the Zonal office, despite the investment in the surveyor's portal to aid the process. + +The public frustration has led to unethical ways of quickening the process, thus creating fertile ground for corruption. + +Management explained that it will enhance the land system functionality and workflow process to improve service delivery. + +I advised management to consider a review of the subdivision and workflow process to create efficiency. + +iii. + +Failure to Operationalise the Approved IT Staff Structure + +I noted that Ug-NLIS structure has not been operationalized with all senior positions still vacant despite the criticality of system to the country. Notably, system is largely supported by temporary short term contract staff who have not been recruited into main stream public service but continue to perform critical system roles such as database administration. + +106 + + + + + + + + + + + +The use of temporary staff to oversee and support critical IT system exposes the entire investment to high risk. Management explained that they have made submission to the Public Service Commission (PSC). + +I advised management to follow up with the PSC to expedite the process. + +iv. + +Failure by Uganda Lands Commission (ULC) to Utilise the UG-NLIS + +I reviewed the Land information system and noted that Uganda Land Commission (ULC) does not utilize the Ug-NLIS to process land transactions (leases of public land). I noted that lease transactions were manually processed outside the system. + +It should be noted that ULC was involved in the development of system and user requirements and acceptance of Ug-NLIS as a solution that meets the Commission’s business needs. Further, I noted that ULC acquired another system which duplicates the functionality of the Ug-NLIS at a cost of UGX.500 million. + +The investment by ULC in a duplicate land registration system is deemed a wasteful expenditure. Management informed me that the Commission has commenced processing of public leases using the Ug-NLIS. + +I have advised Management to ensure that all public leases processed outside the Ug-NLIS should be captured into the system as a backlog. + +v. Overlapping Land Parcels + +There are a number of parcels in the system whose geo-referenced coordinates were erroneously captured which created distortions in the cadastral data of the + +Ug-NLIS. + +The errors manifest where parcels on the system stretch beyond the boundaries and overreach neighbouring parcels such as road reserves, protected areas and neighbouring plots. Where overlaps exist, the system may create delays in processing of deed plans or titles. + +Management informed me that it has prioritised cadastral data cleaning. + +I advised Management to institute mechanisms to ensure quality control of survey data from surveyors and input validation. + +107 + + + + + + + + + + + +6.0. SPECIAL VERIFICATIONS + +In accordance with Sections 13 and 22 of the National Audit Act, 2008, I undertook two special verifications in the telecom sector, and below is a summary of my findings; + +6.1. + +Verification of Assets and Liabilities for Uganda Telecom (In-Administration) + +In accordance with Section 13(2) and 22 of the National Audit Act 2008, I undertook a special audit, for verification of liabilities of UTL comprising preferred taxes, UCC liability, UCECPS, administration costs, creditor payments and TDB Loan and assets on a request by the Minister of Finance, Planning and Economic Development. + +Below are the findings of the verification; + +i. + +Verification of Trade Development Bank Loan + +Out of the claimed USD.16.51 Million by Trade Development Bank, the verified and approved outstanding loan amounted to USD.9.31 Million The balance of USD.7.24 Million which relates to default interest charged during the period from 22 nd May 2017 to 31 st May 2021 when UTL was under administration, could not be verified, as it appears to be contrary to the Ugandan Insolvency Act 2011 and the attendant regulations, which provide that interest payable in respect of any period after the commencement of a liquidation and/or insolvency shall be suspended. + +Government was advised to seek the opinion of the Attorney General, before the amount relating to default interest is allowed. + +ii. Verification of Other Creditors + +I verified claims from the creditors as at 30 th June 2021 totalling to UGX. 302.74Bn as summarised in the table 30 below; + +Table 30 : Creditors Verified + +SN Item Amount - UGX +1 Consolidated Tax Liability (PAYE, Local Exercise, Withholding Tax, Value Added Tax) 9,786,780,845 +2 UCC liability 62,469,304,749 +3 UCECPS liability 2,353,904,321 +4 Verified Creditors Liability (Pre & Post Administration period) 63,079,412,417 +5 Un remitted NSSF Deductions 15, 462, 575,874 +6 UTL Pension Liability for former UPTC employees 165,048,246,917 + Total 302,737,649,249 + + + + +I noted that creditors worth UGX. 28.74Bn were not verified due to insufficient information and creditors totalling to 336.3Bn were subject to court proceedings and therefore not verified. + +108 + + + + + + + + + + + +The Government should explore ways of settling the above liabilities to avoid litigation and associated costs. + +iii. Verification of Non-Current Assets + +The current estimated value of UTL Non-Current Assets is UGX.184Bn which was computed based on independent valuers reports of M/s Bageine and Company (September 2017) and Elite Realty Limited (June 2018). Adjustments were made for depreciation and disposals since the valuation date to arrive at the current estimated value. There is need for re-valuation by the Chief Government Valuer to ascertain the current market values. + +In addition, UTL has a 9.13% shareholding in a company (i.e. WIOCC) which was valued between USD.146.2 – 181.2 million, by an independent valuer commissioned by WIOCC in December 2020. The Administrator further informed me of an ongoing offer by an equity investor into WIOCC, who has valued the company at USD.171 million by the time of my verification. This would imply that the UTL shareholding of 9.13% in WIOCC, could be valued at USD.15.61 Million (i.e. approximately UGX.55.45Bn exchanged at UGX.3,551.71 for one USD), as of 30th June, 2021. This would significantly increase the value of total assets of UTL. + +There are disputes on ownership of 11 Properties worth UGX.57.5Bn between Uganda Telecom Limited (UTL), POSTA (U) Ltd, Uganda Broadcasting Corporation (UBC), and other entities. + +Government should consider resolving the disputes before liquidating the company. iv. Verification of Receivables + +Receivables totalling to UGX.113.65Bn were presented for verification. Due to time limitations and sensitivity of the matter, I could not verify receivables, however the process of verification had commenced under the administrator. I await the outcome of the verification exercise. + +6.2. + +Verification of Terminal Benefits/Pension of former Employees UPTC in Respect of Civil Appeal No. 230 Of 2013 And No.10 Of 2014 Of The Court Of Appeal Of Uganda + +I undertook a country wide verification exercise of 1,837 former employees/ claimants of the defunct Uganda Posts and Telecommunications Corporation (UPTC) in accordance with the orders of the Court of Appeal in respect to Civil Appeal No. 230 of 2013 and No. 10 of 2014. + +Below are my findings; + +The claims presented for verification in the actuarial report as at 30 th June 2020 and are summarized in the Table 31 below; + +109 + + + + + + + + + + + +Table 31 : Summary of claims presented for Verification + +S/N Entity Total No. of Claimants Claim Amounts as at 30 th June + 2020 - UGX +1 UTL 1,065 200,444,057,531 +2 UPL 348 35,249,791,537 +3 PBUL 8 135,780,242 +4 UCC 11 691,361,961 +5 UPTC 71 9,638,276,645 +Total 1,503 246,159,267,916 + + + + +I verified the claims presented and summarized the findings per entity as presented below; + +i. Verified Claims – UGX.213,026,888,318 + +The total verified amount of UGX.213,026,888,318 is payable to 1,254 claimants under UTL (in-Administration), Uganda Posts Limited (UPL) and the defunct UPTC as summarised in the Table 35 below; + +Table 32 : Summary of Verified claims payable + +S/N Entity Total No. of Claimants Total claimants verified Total Amount Verified Payable as at June 2021- UGX +1 UTL 1,065 882 165,048,246,917 +2 UPL 348 337 43,233,738,001 +3 UPTC 71 35 4,744,903,400 + Total 1,484 1,254 213,026,888,318 + + + + +I advised the Government to make the necessary budgetary provisions to cater for settlement of the above claims. + +ii. Fully Settled Claims + +Although the Actuarial report from the Privatisation Unit under the Ministry of Finance, Planning and Economic Development (MoFPED) submitted included claims from former employees of Uganda Communications Commission (UCC) and Post Bank Uganda Limited (PBUL) respectively, from the verification carried out I verified that these entities had duly settled the claims of 21 beneficiaries totalling to UGX.1,124,966,993. + +This verification gave assurance that the Government had fulfilled its obligation to the respective beneficiaries, thereby eliminating any risk of possible double payment of claims in this regard. + +110 + + + + + + + + + + + +iii. + +Conflict between the legal representative and the beneficiaries + +During the audit, I obtained information relating to the fact that a section of the claimants had a disagreement with their legal advocate, allegedly from failure to remit funds received from UTL and UPL to all the claimants. UTL in Administration and UPL transferred a total of UGX.4,184,469,245 to the lawyer as part payment of their obligations. + +I advised the Ministry of Finance, Planning and Economic Development (MoFPED) and the Attorney General to take note of the conflict and ensure that the dispute is resolved before funds are disbursed to benefit the rightful claimants. + +7.0. HIGHLIGHTS OF VALUE FOR MONEY AUDIT RESULTS + +7.1. Value for Money Audit on the Management of Government Investments by Uganda Development Corporation + +The Government of Uganda has committed over UGX.223.9Bn in various investment projects under Uganda Development Corporation (UDC) over the years 2016/17 to 2019/20. These investments which are highlighted as government priorities from National Development Plan (NDP I), through to NDP III, are meant to promote social and economic development and contribute to poverty eradication by increasing national and regional economic growth and development. + +The objective of the value for money audit was to assess the effectiveness of UDC processes in the management of Government Investments through planning, implementation and monitoring of such investments. + +I sampled eight (8) investment projects worth UGX. 191.5 Bn as of 30 th June, 2020 including; Soroti Fruit factory, Kigezi Highland Tea factory, Kayonza Tea factory, Mabale tea factory, Luwero Fruits factory, Moroto Cement factory, Isingiro Fruit factory and Atiak Sugar Factory. + +The following were the key findings; i. Project Planning + +I noted that only one out of the eight selected projects was dully subjected to the planning process representing 12.5%. The objective of the planning process is to justify investment of government funds in identified projects. As a result of ineffective planning, two projects failed to take off while there was a change of scope, cost and implementation strategy for the other five investment projects. + +111 + + + + + + + + + + + +UDC management should ensure that all Investment projects follow the due planning and identification processes as documented in the investment guide. This will increase on the success rate for those projects that are properly planned, identified and appraised. + +ii. Project Implementation + +Audit noted that UDC had not been able to have five investment projects operating at full capacity as expected representing 37.5% of the eight sampled projects. The projects faced different challenges as summarised in the table 33 below; + +Table 33 : Challenges of Project Implementation + +S/N Project Name Amount Invested as at 30 th June 2020 (UGX in Bn) Challenge +01 Soroti Fruit factory 23.76 Additional machinery was procured to cater for the user needs not identified at planning stage +02 Kigezi Highland 14.03 Additional funds to support raw material uptake leading to project cost-overruns +03 Mabale Tea Factory 16.6 Change of user needs during implementation +04 Kayonza tea factory 14.06 Project performance is satisfactory however, the objective of the investment decision on the part of Government is yet to be realised. +05 Atiak Sugar factory 88.8 Inadequate inputs to match the factory capacity +Total 157.25 + + + + +Management should improve implementation processes by ensuring that guidelines are in place, and that sufficient staffing is deployed. Additionally, the institution should lobby for a ‘Fund-based’ financing approach of the institution, instead of ‘projectised’ financing where funds are sent to UDC already tagged to an investment project to be funded. This will allow flexibility during implementation of investment projects. + +112 + + + + + + + + + + + +iii. Monitoring and Evaluation + +I noted that the oversight role in all the eight sampled investment projects had not been fully undertaken and thus, the projects were not operating at full capacity as expected. This was greatly attributed to weak governance structures and non-existing/inadequate Boards in those investment projects supported as partnership ventures. This ultimately caused delays in decision making, financing and signing of contractual agreements. + +UDC management should improve the monitoring and oversight role in the government investments by ensuring that the monitoring frameworks are established and followed- up at both management and Board levels. Overall Conclusion + +Government has invested over UGX.200Bn in various sectors of the economy with the objective of boosting value addition mainly in the agricultural sector. There has been a noted increase in both tea and sugar production. It should however be noted that the levels of outputs and other expected benefits are not commensurate with the investments due to challenges of budgeting and planning, lack of feasibility studies and criteria for allocation of funding, inadequate contractual arrangements to clarify roles and targets and limited oversight and monitoring of investments. There is a risk of failure to achieve the intended objectives. There is still potential for improvement by ensuring UDC staffing levels are increased to undertake the above-mentioned tasks. It is also necessary to enhance autonomy for UDC by providing capitalisation instead of project related financing, so that management is flexible in allocation and re-allocate resources where they are urgently required at the time. + +7.2. + +A Value for Money Draft Audit Report on The Afforestation and Restoration of Selected Central Forest Reserves (CFRs) by the National Forestry Authority (NFA) + +The National Forestry Authority (NFA) was established under section 52 of the National Forestry and Tree Planting Act, 2003 (NFTPA). The objective of NFA is to manage the Central Forest reserves, expand and promote partnership arrangements, ensure equitable supply of forest and non-forest products and services and enhance organisational sustainability. + +The country’s forest cover is managed by different stakeholders comprising; Uganda + +Wildlife Authority, National Forestry Authority and Privately owned forest plantations. + +The forest cover loss over the years from 1990 to the last biomass study in 2017 is estimated at 58.9%. Similarly, the CFR forest cover under NFA dropped from 62.5% (791,240ha) of the NFA forest cover to 45.8% (579,257ha) in the same period. This trend was contrary to Sustainable Development Goal 15 which required governments to ensure the restoration of forests and increase forest cover in line with obligations under international agreements by 2020. + +The overall objective of this audit was to evaluate the effectiveness of the measures put in place by the NFA towards the restoration and establishment of new plantations in the central forest reserves, between the period of 2016 and 2020. + +113 + + + + + + + + + + + +The following are the key findings from the study; + +i. + +Restoration and establishment of new plantations + +Audit noted that management achieved 11,173ha (78%) of their planned outputs (14,277ha) for both restoration planting and establishing new tree plantations, which contributed to only 0.88% of the national forest cover (1,265,742ha) over the four-year period. + +Considering the current rate of forest restoration, it will require 75.8 years for NFA to restore the national forest cover to 62.5% of was it was in the year 1990.Similarly, even if NFA was to meet its targets of 14,277ha in the four-year period, it would still take 59.3 years to restore the CFRs to the 1990 forest cover in Uganda. + +The non-achievement of targets to restore forest cover was caused by inadequacies in the planning and budgeting process; land management; monitoring and inspections; and collaboration with institutional stakeholders. + +ii. + +Coordination and planning in the Forest Sector + +I noted weaknesses in coordination in the regulation of activities/projects under a single mandate that impact of national forest cover. There are inconsistencies and inadequacies in mainstreaming initiatives to increase forest cover across government and private sector which has led to limited national forest coverage of 12.4% and NFA forest cover of 45.8%. + +iii. + +Monitoring and Evaluation, and inspections. + +It was observed that out of the expected 16 monitoring reports in the four-year period ending 30th June, 2020, only 4 (25%) were prepared in the entire four-year period. In addition, NFA budgeted to receive UGX.320m for monitoring in the four years under review, however, it received UGX.91.8million (29%) of which UGX 88.8million was spent. There was limited uptake of monitoring and evaluation recommendations which led to led to destruction of the newly restored forests by encroachers. + +iv. NFA collaborations + +It was established that seventeen (17) MOUs were signed with different government agencies, out of the planned twenty (20), representing an 85% performance. Although these collaborations contributed to the restoration and establishment of new plantations, there were inadequacies in providing the planned quantity of seedings. + +In addition, twenty (20) Collaborative Forest management (CFM) agreements were signed with forest edge communities, out of the planned twenty-eight (28) over the last three years. There were inadequacies of; staffing, limited sensitization and coordination between the CFM stakeholders. As a result, communities were sighted to be involved in encroachment of newly restored forests in some instances. + +114 + + + + + + + + + + + +Key Recommendations The National Forestry Authority should; + + + +- Engage all relevant stakeholders to ensure sustainable coordination and comprehensive planning initiatives to enhance mainstreaming efforts to increase forest cover in the country. + + + +- Improve on its collaboration and sensitization efforts with all stakeholders to protect all forest land and undertake a process of titling all gazetted forest reserves and national forests to curb illegal encroachment. The National Land Information System (NLIS) should include control measures to prevent illegal titling of gazetted forest land. + +- Continue engaging the relevant Government authorities to fast-track the revision and approval of the NFA organizational structure, to enhance the institutional capacity to manage national forests. + + + +Overall Conclusion + +Whereas the National Forestry Authority has undertaken specific interventions aimed at increasing forest cover through restoration and establishing new plantations; inadequate coordination, planning, monitoring, collaboration with communities have led to a limited increase in the NFA forest cover over the years. In some instances, increased encroachment, land encumbrances through issuance of title over the NFA land, limited community sensitization and involvement, inadequate prioritization of restoration and new forest establishment have contributed to the dismal 45.8% forest cover under NFA and national cover of 12.3%. + +It is hoped that despite the increased population that is exerting pressure on the rather limited national forest cover, the lessons learnt and recommendations will be applied to fulfil the objectives of the NFA, forest sector and country. + +7.3. + +A Value for Money Audit on the Implementation of the Uganda Women Entrepreneurship Programme by the Ministry of Gender, Labour and Social Development (MGLSD) + +I undertook a Value for Money to assess the extent to which the Programme achieved its intended objectives. + +The Uganda Women Entrepreneurship Programme (UWEP) is an initiative of the Government of Uganda that is aimed at empowering women to improve their income levels and their contribution to economic development; by improving their access to financial services and equipping them with skills for enterprise growth, value addition and marketing of their products and services. + +The Programme has disbursed UGX.107 Bn to 11,256 women groups, benefitting over 135,000 women, over the five-year period (2015/16 to 2019/20) in the first Phase. The + +115 + + + + + + + + + + + +programme through its revolving fund recovered over UGX.16 billion from the loans disbursed to the women which funds were available for financing new women groups. + +Despite the achievements registered, the audit identified the following areas that need to be addressed by the Ministry; + +- I noted that 4,185 women had benefited from the Programme under the capacity and skills development component, which translates into 42% of the desired target (10,000 women) according to the UWEP Programme document. + + + +- There were delays in disbursement of funds to the women groups. In some cases, the delays were more than 12 months from time of approval of the applications to receipt of the funds which affected the performance and success of enterprises, specifically those in the agricultural sector, which depend on the rainy seasons for planting. The delays impact on agricultural yields. + + + + + +- I noted budget cuts for women groups at the MGLSD level (TSU) with some groups receiving less than budgeted funds to implement their enterprises; however, at the Local Government level, explanations for the budget revisions were not effectively communicated to the groups; which hindered implementation of activities of women groups. + + + +- Funds to the tune of UGX 16 Bn remained idle on the recovery account in Bank of Uganda over the five years. Only 6% (UGX 963 million) of the amount had been re- disbursed; which denied the other qualifying women groups access to funds. + + + +- The MGLSD through the UWEP Technical Support Unit did not effectively plan for and coordinate implementation of the activities to facilitate women groups to access markets for their products. In addition, access to appropriate technologies were not catered for in the project design and budgets for the entire 5-year period. The intended objective of the funds disbursed may not be fully realised. + + + +- There was underfunding of monitoring and supervision activities at the Local Government level which affected the frequency of monitoring of beneficiary women groups. The programme gaps at enterprise level could not be adequately identified and corrected on time. + +- At the National level, the Technical Support Unit (TSU) undertook only 13 (43%) of the planned 30 monitoring and supervision visits to the regions throughout the five- year period. This resulted in delayed identification of performance gaps and timely remedial actions. + + + +Key Recommendations I advised management to do the following; + + + +- Prioritize the capacity and skills development component of the Programme through increased sensitization to ensure that women groups receive the required skills to + +116 + + + + + + + + + + + +effectively implement selected enterprises. In addition, consider reviewing the funding programme requirements to make training a prerequisite for all groups venturing into value addition enterprises for the first time. + +- The programme implementation guidelines should be reviewed to reduce on the time taken between approval and disbursement to improve timely access to funding to the groups. All budgetary cuts should be communicated to beneficiary women groups in time. + + + + + +- The MGLSD should ensure that the funds recovered are revolved in a timely manner to benefit the intended women groups, and ensure sustainability of the Programme. + +- The MGLSD should liaise with MoFPED to mobilise funds to cater for value addition, and monitoring and evaluation activities within the programme. + + + +Overall Concluion + +UWEP exceeded its target in attracting 100,000 women beneficiaries over the five year period and managed to put in place implementation guidelines and training of beneficiaries and implementing partners. + +However, utilization of funds from the programme’ revolving fund and equipping beneficiaries with value addition and skills for enterprise growth was found to be + +unsatisfactory and merits Management’s urgent intervention. + +The overall prospects of the programme are promising if the challenges of rationalization of the programme funding; delayed funding of beneficiaries; limited focus on skills and capacity development; inadequate coordination of partnering institutions; are addressed. + +7.4. A Value for Money Audit Report on the Management of Research Grants by Public Universities in Uganda + +Research is any type of systematic investigation, testing and evaluation whose objective is to discover new facts or information and increase the stock of knowledge. It generates new knowledge, which is critical for sustained economic growth and social transformation of Nations. + +According to Section 24(2)(a) of the Universities and other Tertiary Institutions Act, 2001 (as amended), a Public University has a function of provision of higher education, promotion of research and advancement of learning. Research is a costly activity and often relies on grants to supplement the existing financial resources. Research grants enable the research community within the Universities to thrive in knowledge sharing and to use research towards solving community-based problems. + +Owing to the different challenges in the management of research grants at public universities which is characterised by poor rankings of the universities at continental and world level, and less innovation products from the public universities, the Office of the + +117 + + + + + + + + + + + +Auditor General undertook an independent assessment of the management of research grants by Public Universities. + +The overall audit objective was to assess the adequacy of management of research grants in achieving grant management objectives in Public Universities in Uganda. The audit adopted a case study approach whereby 4 out of the 9 Public Universities in Uganda were considered as cases for the study, these included; Makerere University, Mbarara University of Science and Technology (MUST), Kyambogo University and Busitema University. Below is a summary of key findings and recommendations, the details are found in the subsequent part of the report; + +Key Findings + +i. + +Institutional framework for coordination of research grants activities + +- It was noted that all the Public Universities through their respective Councils determine the research policies, research management structures and research direction of the respective Universities. There is no framework to ensure collective planning, coordination and follow-up of research efforts for the different Public Universities to ensure equitable allocation of resources, efficient utilization of academic staff, and that research results contribute to National development. + + + +- It was also established that key research and grant management policies/guidelines were missing at a number of Universities to guide on the efficient and effective management of research activities. Only MUST and Busitema had a grants management policy/manual to guide their grants management processes. Furthermore, the country lacks national regulations and guidelines for research and innovation activities including; sourcing of external grants, development and uptake of technologies and, management and commercialization of intellectual properties. +- Furthermore, the research committees for MUK, MUST and Kyambogo which are responsible for strategic planning and research direction focused more on graduate + +students’ research with limited emphasis on university grants research. + +- It was also noted that out of the 4 Universities, only MUST had a grants office under the DRGT with dedicated staff to support grant activities. It was further noted that Busitema and Kyambogo did not have grants administrators at college/faculty level while at MUK and MUST only the college of Health Sciences and the faculty of medicine respectively had grant administrators to undertake the tasks. + + + +- The most funded area of the research agenda for MUK was health and health systems which accounted for over 50% of the funding with other areas of research getting smaller contributions. In addition, no operational processes were in place to ensure that external grants sourced by MUK & KYU staff are in line with the university’s research agenda. MUST and Busitema University did not have an approved research agenda at University level. Furthermore, the country does not have a clear research agenda to guide planning, implementation and policy making. + + + +118 + + + + + + + + + + + +ii. Resource Mobilization Initiatives + +- It was found that MUK, KYU and Busitema have established processes to centrally award competitive research grants from internally generated funds or Government support as initiatives to promote research and innovation in public universities. These processes have in turn enabled staff to seek external grants through proposal writing. The processes however have challenges. MUST on the other hand has not established such processes. + + + +- Out of the 4 universities, only MUK had a consolidated Research Innovation Fund (RIF) for research funds from government. Through continuous lobbying by MUK, government allocated UGX.30bn to the fund; the other universities have not explored this initiative. All the universities have not raised any resources internally into a separate fund for research. This was attributed to government policy of remitting all internally generated revenue into the consolidated fund and therefore appropriating funds through the annual budget process. + + + + + +- It was noted that for all the 348 grants sampled from the four (4) universities, overheads/indirect costs were not deducted from the funds spent contrary to percentage requirements in the research and grant policies of the universities. + +iii. Monitoring and Evaluation + +- In all the four Universities, M&E was not carried out by the university management on external research grants for the period 2017/18-2019/20. 193 out of 348 (55.5%) sampled external grants were however monitored by the donors. For internal grants, only 222 grants under MUK RIF were monitored. + + + +- It was noted that even where M&E was undertaken by donors, recommendations were not fully implemented by the Universities. +- 450 out of 512 Government funded Grants from MUK, Kyambogo and Busitema, representing 87.9% were not completed in time during the period under review. Similarly, 218 out of 350 (62.3%) Donor funded Grants from the 4 universities were not completed in time. + +Key Recommendations + + + +- The Ministry of Education and Sports should institute a committee with full representation from all public universities and supported with relevant legislation to collectively undertake strategic planning for university research in line with the National Development Plan and ensure adequate coordination between universities, follow-up of research activities, equitable allocation of resources and efficient utilization of academic staff on research. + + + +- The NCHE should introduce a standard legal framework for evaluation of management of research activities in the universities. The Universities should then take the responsibility for mainstreaming the instituted framework into their management system. Regular audits of planned university research activities vis a vis expected outputs should be undertaken. + +119 + + + + + + + + + + + +- The public universities should prioritize development of key research and grant management policies to guide the related processes. Benchmarking with leading universities in the region and at the continental level can be used to ease the process and ensure up-to-date policies with the changing environment. + + + +- Government and related institutions should fast track the development of policies, strategies and guidelines to promote research, technology development and, uptake and management & commercialization of Intellectual Properties (IPs) as provided for in the NDP III. + + + + + +- The public universities should have different Senate/Management committees for the different roles of governing graduate programs and students on one hand and research and innovations activities including grants management on the other hand. This would ensure adequate focus on strategic planning for research, management and follow-up of research activities at the university for timely achievement of university research objectives. + + + +- The public universities should engage with MoPS, MoFPED and MoES for support to fill the key staffing gaps for grants management and ensure that the necessary key roles such as grants administration and M&E are undertaken. + + + +- Government through the Ministry of Finance, Planning and Economic Development should prioritise funding/grants for research in public universities to enable focus on research which is in line with university research agendas and national priorities. + + + +- Government and related institutions should fast track the development of the national research agenda to guide planning, implementation and policy making as provided for in the NDP III. + + The Universities’ management should institute Committees to follow up and review the + +implementation of recommendations on project or grant monitoring and Evaluation for improvement in the management of research grants in the University. + +Overall Audit Conclusion + +Despite the challenges noted in the management of Research Grants, Public Universities have, achieved some notable research outputs through research grants with outstanding innovations which included; production of an electric automobile, crop protection systems, farming systems for generating biofuel, improved water treatment, low cost MakaPads for the girl child, production of energy, and secure fertilizers all at Makerere University. Mbarara University of Science and Technology (MUST) has also been able to produce traditional health care products at its Pharm-Biotechnology and traditional medicine centre, while Kyambogo produced an improved low-cost baby incubator and an online Academic Information Management System (AIMS), which is used by all public universities in the country. + +There are still bottlenecks in management of Research Grants in Public Universities which have affected achievement of the university research objectives. These included; gaps in + +120 + + + + + + + + + + + +the Institutional Framework for coordination of research grants, inadequate resource mobilization initiatives, inadequate implementation of research projects, lack of monitoring and evaluation framework, and absence of a joint organ to oversee and regulate research initiatives in public universities in the country. + +It is hoped that when the recommendations in this report are implemented; the universities will effectively manage research grants, thus attaining the objectives of their research agendas. + +7.5. + +Value for Money Audit on The Management Of MATIP-1 Markets by Municipalities + +The Government of Uganda through MATIP-1 redeveloped and reconstructed seven (7) markets at a cost of USD.64.5 million to create a conducive trade environment and increase revenue collections for the municipalities. The seven (7) markets that were redeveloped were; Mpanga market, Hoima Central market, Mbale Central market, Jinja Central market, Gulu Central market, Wandegeya market and Lira central market. + +This study assessed whether the municipalities had ensured that the redeveloped markets created a conducive trade environment and increased revenue collections for the municipalities. + +The redevelopment of the seven (7) markets resulted in an increase in the number of vendors trading in these markets from 14,826 vendors in 2015 to 19,481 Vendors in 2021 which is a growth of 31%. In addition, market management structures comprising of staff of the Municipalities as well as vendor associations were established in all the markets and supported the Municipalities in their role of managing the markets through mobilizing vendors to participate in market activities such as trainings in running small scale businesses, market cleaning, and sensitizations in market security, trade order and hygiene. + +Despite these achievements, the study noted areas that require attention if the management of these markets is to improve; + + + +- The study revealed that the annual revenue budgets or targets of all the seven (7) markets were consistently below their revenue potential by 38%. Whereas the revenue potential for the markets was UGX.32.8Bn over the 6 years reviewed, the markets only budgeted to collect UGX.12.5Bn over the period. This was attributed to lack of a management information systems and the manner in which the municipalities develop the revenue budgets based on prior year collections instead of using actual market occupancy. Unrealistically low budgets imply that the revenue performance is likely to be below the market potential. + + + +- Out of the budget of UGX.12.5Bn by these markets for the six-year period, only UGX.7.9Bn was collected representing a performance of 54%. This was due to lack of automated revenue management system, leaseholders who were not paying monthly market rents, unoccupied stalls and lockups, irregular subletting, and the failure to terminate tenancy of rent defaulters. Under collection of revenues has affected the + +121 + + + + + + + + + + + +ability of these markets to meet their obligations which has resulted into accumulation of arrears totalling to UGX.1.41Bn in the seven (7) markets. + +- Four (4) markets of Mbale, Gulu, Lira and Jinja were overcrowded with the vendor- occupancy exceeding the markets’ design capacity by 36% due to over allocation of market spaces, illegal traders and sub-lettees, inadequate enforcement by the municipality and design deficiencies such as poor lighting in some sections, and lack of accessibility. The overcrowding has caused congestion in the markets. + + + + + +- The majority of vendors all the seven (7) markets were not trading in the established zones due to insufficient space in zones, allocation of spaces to traders outside their designated zones, rejection of the stalls by vendors, and weak enforcement of zoning. This has resulted in a disorganised market environment which continues to present challenges for customers and traders. + + + +- All the seven (7) markets had failed to maintain adequate sanitation within the markets due to overcrowding of the markets, weaknesses in the supervision of the cleaning staff and cleaning contracts, insufficient number of garbage trucks, skips, bins, garbage banks and landfills. The poor sanitation makes the markets unsightly for the customers and poses health risks for both the traders and customers such as food contamination and air pollution. + +- The market infrastructure was not well maintained for all the markets. There were cases of leaking roofs, walls with old peeling paint, cracked floors, non-functioning toilets, failed water pumps, un-serviced generators and firefighting equipment, and non-functioning CCTV security equipment. Inadequate maintenance of the market infrastructure was attributed to failure to prioritize this activity by the municipalities, and failure to set aside maintenance funds as recommended in the market maintenance guidelines. Failure to maintain infrastructure has resulted in accelerated deterioration of the newly constructed markets. + + + +In order to address the gaps identified, the municipalities should roll out automated revenue management systems in all the markets, enforce terms of tenancy agreements in relation to sub-letting, invoicing and payment of rent, modify the market structures to allow for better lighting and improved access. The municipalities should also address the issue of illegal occupants, and develop guidelines to regulate sub-letting. + +The municipalities should review the current markets layout to address the challenges of zoning, and overcrowding. In addition, there is need to enhance supervision of market cleaning and prioritise the maintenance of the market structures. + +7.6. + +Prevention and Response to Incidents of Fire by Uganda Police Force. + +Directorate of Fire Prevention and Emergency Rescue Services (DFPERS) is one of the directorates in the Uganda Police Force. Its major role is to enhance capacity for prevention of emergencies and delivery of rescue services in order to deliver on its functions of fire prevention, fire suppression and emergence rescue. The directorate operates eleven (11) fire stations in Kampala Metropolitan Area and thirty-four (34) others stations across the country. + +122 + + + + + + + + + + + +This study assessed the extent to which DFPERS has put in place measures to prevent and respond to fire outbreaks. The Directorate of Fire and Rescue services has made notable achievements over its nine years of existence as illustrated below; + +Following the creation of DFPERS in 2012 the number of fire stations in the country has increased by thirty-one (31) which has improved access to fire services. In addition, coordination with stakeholders in preventing and responding to fire by DFPERS has improved and a total of 4,131 have been responded to in the last four years thus saving lives and property. Despite the achievements registered, the audit identified the following areas that need to be addressed. + + + +- The Directorate of Fire and Rescue Services (DFPERS) undertakes activities aimed at preventing the outbreak of fire and incidents that require emergency response. The study observed that the Directorate faced challenges in preventing the occurrence of fire. These include; + + DFPERS did not have fire and safety Act, regulations, and policies to aid the operations of the directorate in prevention. Because of this the Directorate was unable to effectively carry out risk assessment, sensitization of the public, inspection of buildings by DFPERS staff, and carry out post incident investigations as indicated below. + + DFPERS has not undertaken any comprehensive assessment of risks relating to occurrence of fire incidents in order to develop appropriate prevention and response measures/strategies to control fire outbreaks which has affected the + +directorate’s ability to develop appropriate fire prevention strategies. + + DFPERS undertook only 873 (29%) out of the planned 3,020 sensitisations in the past four (4) years. This has continued to expose buildings and their occupants to fire outbreaks and limited the capacity of citizens to prevent the occurrence of such incidents. + + DFPERS undertook only 527 (17%) out of the planned 3,080 inspections in the past four (4) years. This affects the level of compliance to fire standards which increases the probability of fire outbreaks which can lead to loss of life and damage to property. + +The study also noted the following weaknesses on the side of the Fire department: + + + +- DFPERS did not undertake post incident investigations to ascertain the cause, extent of damage or loss from the fires and lessons for prevention of re-occurrence of similar incidents on the 3,179 incidents of fire reported during the past three years due to lack of equipment and trained investigators and coordination with other government investigative bodies. This has resulted into non-conclusion of investigations hence continued public dissatisfaction on the way Uganda Police Force handles fire investigations. + +123 + + + + + + + + + + + + + +- In addition to fire prevention, DFPERS responds to fire outbreaks to minimize the impact of fire on people’s lives and property. The Directorate faced challenges in responding to fire outbreaks due to limited number of fire stations, inadequate staff, lack of enough equipment and non-automation of operations to respond to fires as indicated below; + + + +- DFPERS is currently operating forty-five (45) fire stations in thirty-eight (38) districts to respond to cases of fire outbreaks across the country which is only 27% coverage of the total number of districts in the country due to the high cost of opening and + +operating fire stations. This has resulted into DFPERS’ ineffectiveness in responding + +to incidents of fire across the country. + + + +- DFPERS currently has 599 fire staff against an approved establishment of 1,081 staff representing staffing levels of 55% implying that the current fireman to population ratio in Uganda is 1:75,000 compared to the recommended international ratio of 1:2,000. The existing staff were also not well trained and lacked adequate accommodation. + + + +- The equipment at the fire stations were inadequate in terms of quantity and functionality (not well maintained) to support effective response in the event of fire incidents. DFPERS had only 78 out of 232 equipment required to handle fire incidents representing 34% level of required equipment capacity. In addition, it was noted that firemen lacked adequate PPEs for use during fire response. + + + +- The fire stations inspected were not automated and information was recorded in manual books there were also no computers and communication systems which affected the efficiency and coherence of DFPERS response in the event of fire outbreak. +- DFPERS coordinates with some stakeholders such as Local Governments, NWSC, DGAL, CIID, Hospital emergency units, Civil Aviation Authority and Uganda Red Cross Society however this coordination is informal and characterized by slow decision making which affects response time. + +Key Recommendations + +I advised DFPER to engage the Ministry of internal Affairs to develop a comprehensive fire and safety Act, policy and guidelines in consultation with key stakeholders to streamline risk assessment, sensitisation, inspection and post incident investigations. In addition, DFPERS should enhance coordination mechanisms with internal and external players to support its operations particularly post incident investigations. + +DFPERS should prioritize increasing coverage of fire stations to at least 50% of the districts and develop strategies to ensure the population fire man ratio of 1:75,000 is matched to internationally recommended ratio of 1: 2,000. In addition, UPF should undertake an assessment of the current accommodation needs with a view of developing strategies to address the current inadequacies in accommodation. UPF should prioritise the acquisition of equipment, PPEs and automation of the current communication and record management systems to ensure that there is an effective + +124 + + + + + + + + + + + +response to fire incidents enhance on the operational efficiency during responses to incidents of fire outbreaks + +7.7. + +Value for Money Audit on the Performance of the Performance of the Agriculture Cluster Development Project + +Government has implemented the Agriculture Cluster Development Project (ACDP) with an overall objective of raising on-farm productivity, production and marketable volumes of selected agricultural commodities (Maize, Beans, Cassava, Rice, and Coffee) in twelve (12) clusters in fifty-seven (57) districts across the country. The project is funded through IDA Credit worth UGX.540Bn and farmer contribution of UGX.352.8Bn and implemented through the e-voucher management system. + +The intervention has resulted into distribution of 60,124 tonnes of beans, maize, and rice and 49,871 bags of cassava planting materials to 245,510 farmers/beneficiaries by the agro-dealers between 2018/2019 and 2020/2021. The intervention has also resulted into increased the marketable volumes from 11.94MT to 33.28MT in the past three years. + +Despite the achievements registered, the study identified areas that need to be addressed. The following key observations were noted; + + The project delayed to commence by 20 months’ due delays in obtaining the necessary + +approvals from cabinet and parliament (20 months) and delayed fulfilment of the project effectiveness conditions (26 months) which led to late implementation of project activities and service delivery. + + + +- Despite the project achieving more than 70% in five (5) districts in training of Local Government Staff and farmers on system use and financial literacy, the project did not perform satisfactorily in twenty-three (23) districts where twenty-seven (27) trainings had been planned. As a consequence, a number of farmers were unable to transition from the first cropping cycle to the third cropping cycle. + + + +- Out of the targeted 450,000 farmers, 204,490 (46%) farmers did not access inputs through the e-voucher system. With only one year left to the end of the project, the project may not achieve its intended objective. + + + +- The inputs that were distributed to the farmers were not verified by UNBS because of absence of a streamlined quality control process. As a result, farmers reported cases where seeds did not germinate and fertilizers that “just hardened the soils” were distributed by the Agro-dealers. This has compromised the process of ensuring farmers get the best quality inputs since the department is limited in capacity to undertake this activity. + + + +- The project did not achieve the intended targets in the three areas below in the three years of implementation. + +125 + + + + + + + + + + + +o Only 207 Area Commodity Cooperative Enterprises (ACCEs) (69%) and 155 Rural Producer Organisations (RPOs) (5%) have been supported with value addition facilities out of the targeted 300 ACCEs and 3000 RPOs in the six-year project life span. o Out of 1,835 farmers in the cooperatives that received matching grants for the value addition facilities, only 585 farmers (31.9%) were enrolled on the e-voucher system which made it difficult for the project to reach its targeted 450,000 farmers. o The project had planned to rehabilitate a total of 2,827.7km planned road chokes however, only 228.1km (8%) had been rehabilitated representing 8% of the overall performance of the community access roads. + +Government should ensure that for future projects of a similar nature; The necessary loan documentation is submitted by the implementing entities and loan appraisal unit at MoFPED to the approving authorities in time, trainings activities are undertaken in a timely manner, farmers are mobilized into village savings and lending associations to increase access to funding and reviewing the e-voucher subsidy rates in order to make them more affordable to farmers. The role of other partner participating agencies (in this case UNBS) regarding quality is clearly defined in future project designs. + +In addition, MAAIF should ensure that evaluation of business proposals for funding of ACCEs and RPOs are done in a timely manner for the farmer groups to access funds. MAAIF should also enhance supervision in the rollout districts so that works on the road chocks are completed in the remaining project life span. + +7.8. Follow up on the Value for Money Audit on the Compensation of Project Affected Persons under the Refinery Project by the Ministry of Energy and Mineral Development + +The follow-up on the 2017 VFM audit on Compensation of Project Affected Persons (PAPs) under the Refinery Project by the Ministry of Energy and Mineral Development found that MEMD had made efforts to implement the Auditor General’s recommendations made at the time, resulting in improved RAP implementation. + +Out of the 21 key audit recommendations made in the report of 2017, 12 (57%) were fully implemented and 4 (19%) were partially implemented. The status of implementation of 5 (24%) of the recommendations can only be verified in future projects through audit of subsequent RAPs. + +Specifically, after the 2017 audit, MEMD had registered the following progress in RAP + +Implementation: + + + +- All PAPs houses had been occupied by the respective owners; +- Electricity had been connected to all PAP houses; +- Four boreholes were constructed for use by the PAPs and the Host Community; + + Access roads constructed in the PAPs’ settlement area were completed and were + +motorable; + +- Construction of the places of worship and a Police Post had been completed and the structures handed over to the respective authorities; +- Construction of the community centre and market stalls was on-going. + +126 + + + + + + + + + + + +- MEMD had acquired land titles for the land occupied by the PAPs and was processing the transfer of the individual land titles into the names of the PAPs. + + + +Some outstanding issues noted included the following: A few pending compensation payments mostly due to failure to trace the PAPs; failure by the contractor to remedy most defects identified during the 2017 audit; reports of conflicts owing to changing social dynamics as people adapt to living in congregated settlements; and long distance from the resettlement area to the boreholes. Finally, the PAPs also reported that MEMD and other responsible players rarely conduct visits to sensitise or update them on progress of pending outputs or to explain delays. + +Further recommendations were then made with the aim of addressing the outstanding issues noted. + +7.9. + +VFM Audit on the Implementation of the Uganda Reproductive Maternal and Child Health Services Improvement Project (URMCHSIP) + +URMCHSIP is a USD 180 million project fully donor funded and was approved in August 2016 and is expected to close in December 2022. The target group comprises women of childbearing age, adolescents, and children under-five in all the one-hundred and thrty five (135) districts in Uganda. The Project Development Objectives (PDOs) are to: (a) to scale up reproductive, maternal, newborn, child and adolescent health (RMNCAH) services in the whole country; (b) scale-up birth and death registration (BDR) services; and (c) to strengthen disease outbreak preparedness and response. + +The audit covered twelve (12) Districts benefiting from this project in the three financial years of 2017/18, 2018/19 and 2019/20. Below are the key findings of the study; + +i. + +Status of Implementation of the Project It was noted that out of the 22 project performance indicators considered, 13 (i.e. 60%) achieved their target for the FY 2019/20. The remaining 9 indicators (i.e. 40%) were below their 2019/20 target. Amongst the 9 are two indicators: the number of health facilities constructed and equipped, which are not reflecting any progress due to delays in implementation. + +ii. + +The Results-Based Financing (RBF) Program Since January 2019 to date, the URMCHSIP has rolled out the RBF program to 1,316 health facilities in one-hundred and thirty-five (135) districts across the country in three phases. However, review of timing of RBF payments made by the Ministry of Health-to- health facilities revealed delayed payments ranging from 83 to 154 days after the prescribed deadline. Consequently, timely implementation of Performance Improvement Plan (PIP) activities at these facilities was adversely impacted. The delayed payments were partly attributed to the delayed verification of health facility outputs by the District Health Management Teams (DHMTs) which was further constrained by the reliance on manual processes. + +127 + + + + + + + + + + + +iii. + +Procurement of Essential RMNCAH Medicines and Supplies + +The project intended to support the Ministry of Health (MoH), through National Medical Stores (NMS), to procure and distribute essential Reproductive, maternal, newborn, child and adolescent health (RMNCAH) commodities. However, there have been several delays in the procurement of these commodities under the project, leaving health facilities partly incapable of handling certain complications arising during delivery. This was partly attributed to failure by the MoH to retender certain procurements, there being no bidder that initially met the requirements. + +iv. + +Birth and Death Notifications in Health Facilities + +There were delays in implementation of various activities by National Identification and Registration Authority (NIRA) especially (i) scaling up the electronic vital records system + +for birth registration through the supply of laptops, MiFi’s and internet data bundles to + +285 HC IVs and High-volume Health centre IIIs. As a result, the project has made minimal improvement in capacity of these facilities to conduct birth and death notifications. + +v. + +Monitoring and Evaluation of Project Activities The monitoring and evaluation (M&E) function was found to be inadequate and this was partly attributed to the fact that there were no annual M&E work plans and the M&E specialist was only recruited in December 2019, two and a half years after the project had commenced. + +Overall Audit Conclusion + +The MoH is advised to continue working closely with the National Identification and Registration Authority, the District Local Governments, National Medical Stores, and the World Bank to address any capacity gaps and implementation delays that are derailing project performance. The MoH is also advised to liaise with MoFPED and other key stakeholders to guarantee the continuity of the interventions set up under this project especially the RBF Program, the increased supply of key RMNCAH medicines and supplies, the recruitment of health workers trained under URMCHSIP, so as maintain the gains made in the Health sector as a result of this project. + +128 + + + + + + + + + + + +ANNEXURES + +ANNEXURE I: SUMMARY OF ENTITY FINDINGS AND OPINIONS FOR MDAs, COMMISSIONS, STATUTORY CORPORATIONS AND STATE ENTERPRISES AND PROJECTS + +Sn SECTOR AND ENTITY SUMMARY OF KEY FINDINGS + AGRICULTURE SECTOR +1. Agriculture Cluster Development Project (ACDP). 2020/21Opinion Unqualified Delays in the implementation of some project activities were noted such as provision of E-Vouchers subsidies to beneficiaries in the 12 clusters, only a total of 208,827 of beneficiaries used E-Voucher out of the targeted 400,000 and only 18 road chokes have been worked on in the 7 pilot districts against the targeted 90. The project budgeted to receive UGX 361.7Bn from development partners but only received UGX 254.8Bn, representing a performance of 70% of the budget. Similarly, the project budgeted to receive UGX 4Bn as GOU counterpart funding but only received UGX 2.6Bn (66%) resulting in a shortfall of UGX 1.4Bn which is 34% of the budget. Out the releases of funds of UGX 254.8Bn, the project remained with unspent balance of UGX 99.1Bn representing an absorption level of 61%. I sampled 12 outputs with a total of 25 activities worth UGX.324.1Bn representing 90% of the total budget and noted that 8 outputs with 17 activities worth UGX 53.7Bn were not quantified to enable measurement of performance. Furthermore, of the 4 outputs with a total of (8) quantified activities worth UGX 80.14Bn assessed; 1 output with 1 activity representing 25% was fully implemented while 3 outputs with a total of 7 activities representing 75% were partially implemented. The budget for the financial year 2020/21 was approved on 13th August 2020 (2 months into the financial year). Project funds to the tune of UGX 3.5Bn were disbursed significantly late to the districts. National Project Steering Committee (NPSC) held only one meeting as opposed to two recommended in a year. Procurements for rehabilitation of identified and approved road chokes/work in the last 29 roll-out districts had not commenced by the time of audit despite MAAIF budgeting for the activity at UGX 90Bn. Shortcomings were observed with the E-Voucher Management Agency which included, frequent breakdown of the system, lesser enrolment of beneficiaries ie 64% of the target, only 44% of the project beneficiaries were trained in Financial Literacy and Input use, the system was at 78% of its functional requirement, system installation, configuration, optimisation and commissioning reports have not been submitted. MAAIF budgeted UGX.104.9Bn to provide Electronic Voucher subsidies to 293,500 beneficiaries in 12 project clusters but only managed 118,933 (41%) beneficiaries. Farmers still had challenges in transacting using the system, managing farmer savings and use of inputs via the system. During the financial years 2019/2020 and 2020/2021, 52,089 transactions were made by users who had never logged onto the system and were accessing inputs manually. Relatedly, 2,873 user IDs initiated 7,878 payment requests + + + + + +129 + + + + + + + + + + + + without logging onto the system. An analysis of E-Voucher Management Agency (EVMA) system revealed that 168,086 (99%) of the farmers that accessed inputs redeemed the inputs for only one cycle without transitioning to cycles 2 and 3, 2191 (1.3%) transitioned to cycle 2 without transitioning to cycle 3, while 47 (0.03%) transitioned to cycle 3. In the year 2019/2020 and 2020/2021, 347 farmers ordered inputs during the financial year at amounts that were in excess of the recommended threshold of UGX.1,350,000 worth UGX.186,792,644. +2 Agriculture Value Chain Development Programme (AVCP). 2020/21Opinion Unqualified  Out of the planned twelve (12) strategic targets/goals to be achieved by financial year 2020/2021; four (4) had been fully achieved, seven (7) were partially achieved while one (1) was not achieved at all. There was a shortfall in releases of UGX.22.84Bn which is 64% of the budget. Further, the entity remained with unspent balance of UGX.0.81Bn representing an absorption level of 94%. I reviewed fourteen (14) outputs with a total of fifty (50) activities worth UGX.33.72Bn and noted that all the 14 outputs with a total of 50 activities were fully quantified. Further, out of the 14 outputs that were fully quantified, I observed that; 0ne (01) output with four (04) activities and expenditure worth UGX.0.547Bn was fully implemented; ten (10) outputs with forty-two (42) activities worth UGX.10.1Bn were partially implemented i.e. out of the 42 activities, 17 activities (40%) were fully implemented, 16 activities (39%) were partially implemented while 9 activities (21%) remained unimplemented. Three (03) outputs with four (04) activities were not implemented at all. Assessment of achievement of services from implemented outputs revealed that 60 artificial inseminations (AI) Kits were purchased at UGX.0.26Bn and delivered to NAGRC in June; however, management had not yet distributed them to beneficiary AIs by November 2021 implying that the equipment was not in use for more than five months. Relatedly, the project undertook the Purchase and Installation of Ultra- High Performance Liquid Chromatography (UHPLC) for analysis of various chemical food and environmental residues and related substances at UGX.0.39Bn which was delivered in June 2021 but was not functional by November due to incomplete components. There was no Steering committee sitting during the year to facilitate and ensure adherence to relevant strategies established by Government during project implementation. +3 Coordinating Office for Control of Trypanosomiasis in Uganda. 2020/21Opinion Unqualified  The entity had an approved strategic plan, however the plan had not been certified by NPA contrary to Regulation 26 (1) of the NPA (development of plans). All budgeted Donor revenue of UGX.0.783Bn for the financial year 2020/2021, was dully received representing performance of 100% of the target. There was a shortfall in releases amounting to UGX.0.172Bn representing 4.1% of the budget. Furthermore, the entity remained with unspent balance of UGX.0.00037Bn representing an absorption level of 99.9%. The entity received off-budget financing to a tune of UGX.0.783bn which was not appropriated as part of the entity budget contrary to the law. 4 outputs with 8 activities and expenditure worth UGX.0.324Bn were fully quantified while 5 outputs with 34 activities worth UGX.4.41Bn were + + + + +130 + + + + + + + + + + + + insufficiently quantified. Of the 4 outputs with all 8 quantified activities worth UGX.0.324Bn assessed; 3 outputs with 4 activities worth UGX.0.19Bn were fully implemented, while 1 output with 4 activities worth UGX.0.134 was partially implemented. All 4 quarterly performance reports were submitted after the quarterly deadline and I did not obtain evidence to confirm that the Accounting Officer prepared monitoring plans and reports. Out of the approved staff number of 37 employees, 19 (51%) have been filled leaving a 18 (49%) vacant among which are key posts of Deputy Director, Accountant, Medical Officer, Entomology Officer, M&E Officer etc. Contrary to the COCTU Human Resource Manual that requires operation of a medical insurance scheme to benefit all its employees, the entity has not operationalized any Staff Medical Insurance Policy for its staff. +4 Cotton Development Organization. 2020/21Opinion Unqualified  The entity cotton sub sector strategic plan had been prepared and approved; however, it was not certified by NPA to evidence its alignment to the NDP-III. The entity budgeted to collect NTR of UGX 4.43Bn but collected UGX.1.85Bn representing a performance of 41.7% of the target. Further, there was a shortfall in GoU releases amounting to UGX.0.015Bn representing 1.6% of the budget UGX.8.62Bn. Further, the entity remained with unspent balance of UGX.0.0179Bn representing an absorption level of 98%. CDO received off-budget financing directly from the United Nations to a tune of UGX.36,178,924 (USD.9,923) which was not declared to treasury and, therefore not appropriated to the entity by Parliament. I reviewed all 8 out-puts of the budget with a total of twenty one (21) activities and expenditure of UGX.8.46Bn and noted that two (2) outputs with two (2) activities and expenditure worth UGX.4.2Bn were fully quantified, four (4) outputs with a total of thirteen (13) activities and expenditure worth UGX.3.3Bn were insufficiently quantified that is out of the thirteen (13) activities, four (4) activities (30.8%) were quantified and nine (09) activities (69.2%) were not clearly quantified to enable assessment of performance while two (2) outputs with a total of six (6) activities and expenditure worth UGX.0.92Bn were not quantified at all. Further, of the 2 quantified outputs/activities assessed, 1 output with one (1) activity and expenditure of UGX.5.6Bn was fully implemented while 1 output with 1 activity worth UGX.3.6Bn was partially implemented. Submission of performance reports for three quarters was made after the deadline dates and there was no evidence to confirm that the Accounting Officer Prepared Monitoring Plans and reports which are important in ensuring that the budget performs as expected. It was noted that UGX.19.649Bn was budgeted to cater for the cotton marketing season 2020/21 out of which, UGX.15.154Bn was budgeted towards provision of planting seed and production inputs. Government was able to contribute only UGX.8.6Bn leaving the balance for the private partner intervention. This is an indication that government is relying more on the ginners to fund the cotton sector. Despite the intervention by the private sector, there were shortages in provision of inputs to farmers. 866 Mt of planting seed, 374.6 Mt of fertilizers and 2,260 spray pumps were not provided as projected in the strategic plan which directly affected the performance of the sector in achieving the desired cotton production + + + + +131 + + + + + + + + + + + + targets. Analysis of the domestic arrears showed an increase of 198% from UGX.7,925,963 in the prior year to UGX.23,659,951 in the year under review. CDO staff structure had thirty seven (37) positions dully filled leaving a staff vacancy of ten (10) positions (21%). The positions that have remained vacant over the years include key positions of two (2) Agronomy officers, a classifier and a Personnel & Administration Officer. Withholding tax to the tune of UGX.83,142,447 from payments worth UGX.839,194,850 was not recovered for onward remittance to URA contrary to section 120(1) and 120(4) of the Income tax Act. +5 National Agricultural Research Organization 2020/21Opinion Unqualified  The entity’s draft strategic plan had been aligned to the NDP-III at the time of audit and was awaiting certification from NPA due to delayed approval of the Programme Implementation Action Plans (PIAPs). The entity budgeted to collect NTR of UGX.4.625Bn but collected UGX.3.053Bn representing a performance of 66% of the target. There was a shortfall in GoU releases amounting to UGX.11.216Bn representing 10.1%. Further, the entity remained with unspent balance of UGX.0.085Bn representing an absorption level of 99.9%. The entity received off-budget financing directly from development partners to a tune of UGX.49.77Bn out of which only UGX.38.19Bn was declared to the PSST and disclosed in the entity ministerial policy statement without a supplementary appropriation for the balance of UGX.11.58Bn. I sampled 8 outputs with 35 activities and expenditure of UGX.99.59Bn and noted that 7 outputs with 18 activities and expenditure worth UGX.45.070Bn were fully quantified while 1 output with 17 activities and expenditure worth UGX.54.52Bn was insufficiently quantified, of which 5 activities (29%) were quantified while 12 activities (71%) were not clearly quantified to enable measurement of performance. Further, I observed that out of the seven (7) outputs that were fully quantified, two (2) outputs with five (5) activities and expenditure worth UGX.5.186Bn were fully implemented while Five (5) outputs with thirteen (13) activities worth UGX.39.884Bn were partially implemented i.e. four (4) activities were fully implemented, eight (8) activities were partially implemented, while one (1) activity remained unimplemented. Submission of performance reports for all the quarters was made after the deadline dates. Fourteen (14) slow progressing competitive grant scheme (CGS) projects initiated in 2018/19 with funding of UGX.1.158Bn during the financial year 2020/2021 were still on-going despite expected completion date of June 2021. Civil works and Supplies Projects worth UGX.32,051,565,938 undertaken during the financial year were not yet handed over for use. Further, inspections of NARO facilities at institutes revealed poor road networks, broken down silos at the feed mill, non-functional water pump and abandoned works. There was failure to achieve the intended service delivery for the additional Civil Works at Rwebitaba ZARDI that costed UGX.418,584,880. This was due to lack of equipment in the laboratory. Review of 9 sample procurements worth UGX.27,606,866,233 revealed an + + + + +132 + + + + + + + + + + + + average delay of 45 days in the procurement process due to late release of funds by MoFPED. The entity received Covid 19 supplementary budget of UGX.0.0134Bn for settlement of arrears which was all spent by the entity representing an absorption level of 100%. It was noted that this was inadequate for settlement of domestic arrears brought forward from the previous year 2019/20 given leaving a deficit of UGX1.69Bn (98%). Domestic arrears increased from UGX.1.72Bn in the previous year to UGX.2.875Bn in the year under review, an increase of 67%. The arrears remained unsettled at the close of the year. Further, NARO did not budget for domestic arrears amounting to UGX.1.687Bn during the year as a paltry provision of only UGX.0.033Bn was budgeted to settle arrears of UGX.1.72Bn. A review of NARO’s land portfolio revealed that the entity had surveyed 31 pieces of land with total coverage of 4097.20364 Hectares, however it was noted that 8 pieces (3172.937 Hectares) were titled, 20 pieces of land (706.75454 Hectares) were at deed plan stage and 3 pieces of land (217.5121 Hectares) were still at survey report stage. Further, 17 parcels of land located in NaFIRRI-Jinja, Bulindi-Kibaale district, NaLIRRI- Tororo, Namayingo, Nyakyesasa, Ngetta- Kitgum and Rwebitaba-Fort-portal still had cases of encroachement by both private and public developers. A review of the NARO staff establishment revealed that out of the approved staff number of 995 employees, 851 positions have been filled leaving a staffing gap of 144 (14.5%) staff which indicates a further reduction in staff by about 2.5% compared to the previous financial year. +6 National Animal Genetics and Data Bank (NAGRIC) 2020/21Opinion Unqualified  The entity strategic plan had been aligned to the NDP-III at the time of audit but it was still in draft form awaiting certification from NPA before approval. The entity budgeted to collect NTR of UGX.1.550Bn but collected UGX.3,872,073,899 representing a performance of 250% of the target. There was a shortfall in GoU releases amounting to UGX.4.7Bn representing 6.21%. Further, the entity remained with unspent balance of UGX.0.47Bn representing an absorption level of 99.3%. 41 out-puts with a total of ninety-five (95) activities representing 100% of the total budget and noted that 6 (14.6%) of the total outputs were not quantified while 7 (17%) outputs with a total of seventeen (17) activities were insufficiently quantified. Further, of the 28 quantified outputs/activities assessed, 4 outputs with eight (8) activities representing 9.7% were fully implemented; 10 outputs with 20 activities representing 24.3% were partially implemented while 14 outputs with 30 activities representing 34.1% were not implemented at all. Submission of performance reports for all the quarters was made after the deadline dates. Furthermore, inconsistences were noted in the reported performance where management reported procurement of poultry feeds, drugs and vaccines for poultry on NAGRC & DB Centre farms instead of the planned activity of rearing of 5,000 Indigenous poultry genetic resources sourced on Aswa ranch in Pader District. NAGRC&DB had a COVID 19 arrears supplementary budget of UGX.0.066Bn all of which was warranted and spent representing 100% of the budget absorption. Letters of Credit worth UGX.21.850Bn which expired on 31st December 2020 were renewed to 31st December 2021 leading to nugatory + + + + +133 + + + + + + + + + + + + expenditure of UGX.0.54Bn. By 30th June 2021, prior year LCs worth UGX.10.875Bn were still outstanding. 12 project sites whose contracts total to UGX.20.055Bn out of which UGX.6.327Bn had been paid were abandoned while 8 delayed and remained incomplete by 30th June 2021. 34 contracts for construction of structures, procurement of land and delivery of supplies worth UGX.34.4Bn out of which UGX.11.451Bn was paid had not started. Out of the 34 contracts, 3 service providers who had been fully paid a sum of UGX.7.45Bn had not delivered. 640 acres of planted pasture/ fodder in Kasolwe ranch had dried up adversely affecting the quality and quantity of feeds for the animals. Domestic arrears increased by UGX.0.918Bn from UGX. 0.336Bn in the previous year to UGX.1.254Bn in the year under review. The arrears remained unsettled at the close of the year. Out of 12 ranches managed by NAGRC & DB, 6 had been encroached on while some of the NAGRC & DB land had no land titles in the names of NAGRIC 7DB. NAGRC & DB had an approved staff structure of 189 positions with only 105 (56%) filled leaving 84 (44%) vacant and 17 positions were filled beyond the approved structure. Further, general support staff structure of 128 positions had 310 staff resulting in an over staffing of 142 (185%). +7 National Oil Palm Project 2020/21Opinion Unqualified  Out of seven (7) strategic targets to be achieved by 30th June 2021, none had been fully achieved, two (2) were partially achieved while five (5) were not achieved at all. The Project budgeted to receive IFAD funds to a tune of UGX.39.87bn, out of which UGX.25.584bn was available representing a performance of 64% of the budget. Further, there was a shortfall in GoU releases amounting to UGX.0.035Bn representing 0.46% of the budgeted UGX.7.597Bn. Out of the total available funding of UGX.35.528Bn during the financial year, UGX.28.415Bn was spent by the entity resulting in an unspent balance of UGX.7.113Bn representing an absorption level of 80%. I sampled Six (6) outputs with a total of eighty one (81) activities and expenditure of UGX.21.6231Bn and noted that all six (6) outputs with 81 activities were fully quantified to enable assessment of performance. Further, assessment of the implementation of all Six (6) outputs revealed that; all six (6) outputs with eighty one (81) activities were partially implemented i.e. out of the eighty one (81) activities, thirty two (32) activities (40%) were fully implemented; thirty (30) activities (37.5%) were partially implemented, while nineteen (19) activities (12.5%) remained unimplemented. Two (2) contracts worth UGX.12.397Bn in relation to construction of landing sites were cancelled due to delayed implementation of projects beyond 12 months from the initial intended completion date. I noted delayed titling of 883.92 hectares of the acquired nucleus estate Land exposing it to risks of encroachment by individuals. Review of four (4) sample procurements worth UGX.1.47Bn revealed an average delay of 140 days in the procurement process majorly as a result of delayed approval process by IFAD, contracts committee and Solicitor General. + + + + +134 + + + + + + + + + + + +8 Strengthening National Seed Certification Service Project (SNSCS).2019/2020Opinion Unqualified  Out of the planned six (6) strategic targets/goals to be achieved, none was either fully or partially achieved and one target was not even quantified to enable assessment. SNSCS planned to receive and spend UGX.2.59bn from AGRA out of which UGX.1.099bn (42%) was received leading to a funding gap of UGX.1.49bn (58%). Further, out of the total receipts for the financial year of UGX.1.099Bn, UGX.0.05Bn was spent by the entity resulting in an unspent balance of UGX.1.049Bn representing an absorption level of 4.5%. Out of the nine (9) outputs with a total of twenty eight (28) activities and expenditure of UGX.0.0498Bn reviewed; five (5) outputs with sixteen (16) activities and expenditure worth UGX.0.0498BN were fully quantified whereas four (4) outputs with a total of twelve (12) activities and nil expenditure were insufficiently quantified. I assessed the implementation of the five(5) outputs that were fully quantified with a total of sixteen(16) activities worth UGX.0.0498Bn and noted that one (1) output with 5 activities worth UGX.0.0498Bn was partially implemented. Out of the 5 activities, the entity fully implemented one (1) activity (20%) while 4 activities (80%) were not implemented. Four (4) outputs with a total of eleven (11) activities and nil expenditure were not implemented at all. Management did not prepare periodic performance reports and therefore I was unable to clearly assess the actual performance against the planned outputs. +9 Strengthening National Seed Certification Service Project (SNSCS). 2020/21Opinion Unqualified  Out of the planned six (6) strategic targets/goals to be achieved by 30th June 2021, one (1) target was fully achieved, three (3) targets had been partially achieved and two (2) were not achieved at all. The Project budgeted to receive UGX.1.184bn out of which UGX.1.049bn was received resulting into a shortfall of UGX.0.135bn, which is 11% of the budget. Further, out of the total warrants of UGX.1.049Bn received during the financial year, only UGX.0.199Bn was spent by the entity resulting in an unspent balance of UGX.0.85Bn representing absorption level of 19%. I sampled five (5) outputs with 15 activities worth UGX.0.199Bn and noted that three (3) outputs with a total of seven (7) activities and expenditure worth UGX.0.199Bn were fully quantified; Two (2) outputs with a total of eight (8) activities were not quantified at all. Further, of the three quantified outputs assessed, one (1) output with 3 activities worth UGX.199, 045,000 was partially implemented. Out of the 3 activities, one (1) activity was partially implemented, while two (2) activities remained unimplemented. Two (2) outputs with four (4) activities worth NIL expenditure were not implemented. AGRA amended the disbursement of Grant due to low absorption and decided to de-obligate US$.571,167 being the total un-disbursed funds for the project thus necessity to restructure the budget and milestone delivery plan to fit within US$.323, 450 that had been disbursed. Contrary to the grant guidelines, unspent or un-committed grant funds remained on the project bank account and were not invested in highly liquid investments to earn income. A number of project milestones had not been achieved by the end of the financial year exposing the Grant to a risk of failure to achieve its objectives. + + + + +135 + + + + + + + + + + + +10 The Uganda Multi-Sectoral Food Security and Nutrition Project. 2020/21Opinion Unqualified  Out of the planned fourteen (14) strategic targets/goals to be achieved by financial year 2020/2021; ten (10) (71%) had been fully achieved while four (4) (29%) were partially achieved. There were excess receipts worth UGX.4.154Bn as a result of the project design where the withdrawal of funds from the Donor is made on a six (6) months projection which is 25% of the budgeted UGX.16.610Bn. Further, there was a shortfall of UGX.0.06Bn in GOU co-funding out of the budgeted UGX.0.755Bn which is 8% of the GOU budget. I noted that out of the total available funds of UGX.20.764Bn, only UGX.11.267Bn was spent by the project resulting in an unspent balance of UGX.9.497Bn representing an absorption level of 54.26%. I reviewed seven (7) outputs with a total of forty (40) activities and expenditure of UGX.11.267Bn for assessment and noted that all the 40 activities were fully quantified. Further, assessment of the implementation of the seven (7) outputs revealed that; Two (2) outputs with eight (8) activities and expenditure worth UGX.1.771Bn were fully implemented while five (5) outputs with thirty two (32) activities worth UGX.9.496Bn were partially implemented i.e. out of the thirty two (32) activities, the entity fully implemented nineteen (19) activities (59%), ten (10) activities (31%) were partially implemented, while three (3) activities (10%) remained unimplemented. An assessment from a sample of out-puts that were implemented during the year revealed shortcomings ie funds remitted to 1500 primary schools had not been utilized since they did not procure the required inputs for planting and multiplication (seedlings), the local Micro Nutrients rich crop Planting Materials for 3000 parent group Members and Herbicides & Pesticides. Field inspections revealed that nutrition supplements such as the Iron and Folic Acid and Zinc expired in April and December 2020 respectively before they could be utilised by the beneficiaries causing loss of Government funds hindering the achievement of the intended objective. +11 The Regional Pastoral Livelihoods Resilience Project. 2020/21Opinion Unqualified  Out of the planned fourteen (14) strategic targets/goals to be achieved by financial year 2020/2021; six (6) had been fully achieved, five (5) were partially achieved while three (3) were not achieved at all. There was a shortfall in releases from the donor of UGX.13.788Bn which is 30% of the budget. The project budgeted to receive UGX.0.3Bn GOU funding all of which was availed. Further, the entity remained with unspent balance of UGX.15.172Bn representing an absorption level of 54%. I reviewed all the eleven (11) outputs with a total of twenty six (26) activities and expenditure of UGX.17.71Bn and noted all were fully quantified. Further, assessment of the level of implementation for the 11 outputs revealed that five (5) outputs with nine (9) activities and expenditure worth UGX.0.765Bn were fully implemented while the six (6) outputs with seventeen (17) activities worth UGX.16.945Bn were partially implemented i.e. out of the seventeen (17) activities, the entity fully implemented seven (7) activities (41%); five (5) activities (29%) were partially implemented, while five (5) activities (29%) remained unimplemented. Assessment of achievement of services from implemented outputs revealed that although the Livestock marketing Information System is in place, it lacks up to date information for the beneficiaries implying that it + + + + +136 + + + + + + + + + + + + may not be regularly used. Contract works for the valley dams which are the critical infrastructure for the long term sustainability of the project are past the completion time and works are still significantly behind schedule despite contractors having been paid substantial percentages of the contract sums Shortcomings were noted on reliability of the market information data system designed to track information such as prices, tradeable volumes, diseases concerning livestock for use by famers such as failure to input market information data into the system since October 2019, lack of a designated system administrator that is responsible for managing and updating the system at the Ministry and lack of a system manual that provides standard guideline for the system use. There was no Steering committee sitting during the year to facilitate and to ensure adherence to relevant strategies established by Government during project implementation. +12 Dairy Development Authority. 2020/21Opinion Unqualified  DDA’s dairy strategic plan had been prepared, approved and certified by NPA to evidence its alignment to the NDP-III. The entity budgeted to collect NTR of UGX.3.9Bn but collected UGX.3.9Bn representing a performance of 100% of the target and all the budgeted GOU funds worth UGX.10.02Bn were warranted, without a shortfall. The entity remained with unspent balance of UGX.2.07Bn representing an absorption level of 79.3%. DDA directly received off-budget financing to a tune of UGX.0.63Bn from Fleming fund country grant II but it was never declared to the PSST and as such not appropriated to the entity by parliament. I sampled 4 outputs for review with a total of twenty four (24) activities and expenditure of UGX.3.8Bn and noted that One (01) output with four (04) activities and expenditure worth UGX1.1Bn was insufficiently quantified, that is, one (01) activity (25%) was quantified while three (03) activities (75%) were not clearly quantified to enable assessment of performance. Three (03) outputs with a total of twenty (20) activities and expenditure worth UGX.2.7Bn were not quantified at all. Further, I assessed the implementation of one activity that was quantified and noted that the Rehabilitation of Kyegegwa and Katakwi Milk Collection Centres(MCCs) was partially implemented. Submission of performance reports for the four quarters was made after the deadline dates and there was no evidence to confirm that the Accounting Officer prepared Monitoring Plans and reports which affect timely tracking and evaluation of performance. Analysis of the domestic arrears showed new arrears incurred during the year under review to the tune of UGX.0.178Bn. Further, I noted that there was no budget provision for settlement of these arrears in the year under review. I noted that the entity lost fixed assets through theft which included fifteen (15) desktop computers, two (02) laptop computers, a projector, a router, and cameras but they were not disclosed in the financial statements. The Authority has failed to collect CESS revenue compensation from MoFPED contrary to the presidential directive requiring the same. DDA is understaffed by seventy seven (77) posts out of one hundred and forty (140) posts which is 55% understaffing. The unfilled posts include + + + + +137 + + + + + + + + + + + + key positions like Head of internal audit, Director Finance and Administration, Planner, Regional managers, Principal Dairy Development Officers and Dairy inspectors. Some posts have remained vacant since 2003. +13 National Agricultural Advisory Services (NAADS). 2020/21OpinionUnqualified  The entity had prepared the strategic plan; but there was no approval and certification of the same by NPA to evidence alignment to the NDP- III at the time of audit. Out of the budgeted NTR of UGX.3.587Bn, the Authority collected only UGX.0.12Bn, representing a performance of 3.3% of the target. There was 100% performance in GoU releases amounting to UGX. 243.9Bn. Further, NAADS remained with unspent balance of UGX.0.06Bn representing an absorption level of 99.9%. I sampled four (04) outputs with a total of twenty five (25) activities and expenditure of 184.4Bn and noted that two (02) outputs with a total of three (03) activities and expenditure worth UGX.43.19Bn were fully quantified while two (02) outputs with a total of twenty two (22) activities and expenditure worth UGX.141.19Bn were insufficiently quantified i.e. out of the twenty two (22) activities, fourteen (14) activities (64%) were quantified while the balance of eight (08) activities (36%) were not clearly quantified. Further, assessment of the implementation of the two (2) outputs that were fully quantified with a total of three (03) activities revealed that none was fully implemented. Assessment of one partially implemented output revealed that out of 3,010,000 hand hoes, only 2,500,000 hand hoes were procured and distributed to the Northern parts of the country instead of the planned vulnerable rural small holder farming households across the country. Submission of performance reports for all quarters was made after the deadline dates. Furthermore, I did not obtain evidence to confirm that the Accounting Officer Prepared Monitoring Plans and reports. NAADS incurred huge LC charges to a tune of UGX.1.053Bn as a result of opened LCs worth UGX.71.25Bn for contracts that failed to deliver within the year. Further, I noted LCs worth UGX.23.13Bn that failed to perform for a period of more than two (2) financial years with one of UGX.2.071Bn for milk coolers outstanding for more than 4 years. Review of the Kasese industrial park Agri-LED intervention worth UGX.3.9Bn revealed allocation of land to a bus company contrary to the set objectives and delayed payment of NWSC to connect piped water. Review of the sugarcane production project implementation with investments of UGX.85Bn revealed shortcomings i.e.lack of feasibility assessment, lack of accruing benefits to the beneficiaries, weaknesses in the MoU signed with beneficiaries, limited information on members of the cooperatives, delays in contract completions, pending liquidated damages, and stalled activities. I noted failure to enter into MOU’s with beneficiaries of milk coolers contrary to the selection criteria of the standing orders of procedure for operation wealth creation. There was lack of clearly identified beneficiaries from the start in the transportation and distribution of hoes intervention, lack of MOU’s with delegated DLGs on distribution modalities and nugatory storage costs. Review of the tractor strategic intervention revealed lack of assessment of potential beneficiaries and non-adherence to the terms of the MoU thus risks of beneficiaries without the capacity to manage the tractor for + + + + +138 + + + + + + + + + + + + farming practice or as an enterprise. NAADS had a Covid 19 arrears supplementary budget of UGX.17.84Bn all of which was warranted and absorbed. Further, review of utilisation revealed failure to settle long outstanding payables, appropriation in excess of requirement and diversion of Covid 19 relief funds worth UGX.10.032Bn from the settlement of domestic arrears to settlement of current year bills without seeking and obtaining the necessary approvals A trend analysis of the domestic arrears showed an increase of UGX.7.085Bn (53.6%) from UGX.13.23Bn in the previous year to UGX.20.31Bn that remained unsettled at close of the year with arrears of UGX.0.162Bn relating to previous financial years. Funds worth UGX.2.15Bn were irregularly diverted from the activities on which they were budgeted and spent on other activities without seeking and obtaining the necessary approvals I noted long outstanding receivables of UGX.2.38Bn relating to cash balances and accountabilities that remained at the DLG at the time of restructuring thus casting doubt on their recoverability. Review of the procurement function revealed shortcomings such as delayed supplies and unjustified extensions and non execution of performance security. I noted that NAADS has an approved staff structure of 56 positions out of which 53 (94.6%) positions are filled. Key among the vacant posts is Manager Finance and Administration and Zonal Agricultural Development Officer. Further, I noted temporary appointments of six (6) staff for the sugarcane field based team for 30 months contrary to the recommended 12 months as stipulated in the regulations. +14 Ministry of Agriculture, Animal, Industry and Fisheries (MAAIF). 2020/21OpinionUnqualified  I noted that the Ministry had prepared the Agro-Industrialization (AGI) Programme as a strategic plan for 2020/21-2024/25 that is aligned to the NDP-III and according to the certificate of compliance for the FY 2020/21 annual budget, the overall Agro-industrialization programme budget was scored at 63.5% compliance to the NDP-III. There was a shortfall in NTR collections amounting to UGX.6.82bn representing 76% and a shortfall in GOU releases amounting to UGX.24.1Bn representing 14%. Further, out of the total warrants of UGX.151.2Bn received, UGX.146.95Bn was spent by the entity resulting in an unspent balance of UGX.4.24Bn representing absorption of 97%. The Ministry received off-budget financing to a tune of UGX.1.78Bn that was not appropriated as part of the entity budget contrary to the law. I sampled sixty-five (65) outputs with a total of one hundred and sixty- seven (167) activities and expenditure of UGX.98.2Bn for assessment. I noted that; sixty-one (61) outputs with a total of one hundred and sixty (160) activities and expenditure worth UGX.89.6Bn were fully quantified while four (4) outputs with a total of seven (7) activities and expenditure worth UGX.8.6Bn were not quantified at all to enable assessment of performance. Further, I assessed all the quantified 61 outputs and noted that; 34 outputs with a total of 75 activities worth UGX.39.1Bn were fully implemented and 27 outputs with a total of 85 activities worth UGX.50.5Bn were partially implemented i.e. out of the 85 activities, the Ministry fully implemented 39 activities (46%), partially implemented 44 activities (52%) while 2 activities (2%) remained unimplemented. I noted failure of timely interventions to combat the foot and mouth disease (FMD) outbreak as a result of challenges faced in the + + + + +139 + + + + + + + + + + + + procurement of vaccines despite the availability of funds. The Ministry faced challenges as only 500,000 doses were delivered out of the procured 700,000 doses from the prior year and these came 4 months after expected delivery. Further, none of the procured 2,311,000 doses procured in May 2020 were delivered within the contract period despite the emergency situation and by the time of audit, the contract had not fully performed with 611,000 doses outstanding. Shortcomings were noted in the management of the Ministry Public Investment Plan (PIP) Projects in regard to compliance with the Development Committee Guidelines 2016 and the budget execution circular 2020/2021. I noted incomplete approvals for Projects, non- adherence of Projects with appraisal Guidelines, ongoing projects after expiry of project duration and irregular and excessive spending on recurrent Items Domestic arrears decreased by 14% from UGX.12.96Bn in the prior year to UGX.11.13Bn in the year under review. Further, a paltry UGX.2.42Bn budget provision was provided for settlement of domestic arrears in the current year budget. All documents pertaining to Contingency fund activities and transfers to agricultural institutions during the year worth UGX 11.95Bn were submitted to the IGG for investigations and I was unable to confirm whether the amount involved was applied to the intended purpose. Management did not undertake monthly wage and pension performance analysis to reconcile the payroll generated through the IPPS with the payment information from the IFMS as required resulting into delays in granting clearance to recruit, inefficient wage and pension payroll management, accumulated arrears and non-absorption of pension and gratuity budget. Out of 919 approved staffing positions, only 595 had been filled and the rest of the positions (324) were vacant representing 35% staffing gap. Among the vacant were key positions such as directors, commissioners, assistant commissioners and principals in core directorates and noticed management’s failure to undertake timely recruitments despite availability of funds. +15 Uganda Coffee Development Authority (UCDA). 2020/21OpinionUnqualified  The entity had prepared the coffee strategy; but there was no approval and certification of the strategic plan by NPA to evidence alignment to the NDP-III at the time of audit. Out of the budgeted NTR of UGX.27.5Bn, the Authority collected only UGX.20.1Bn, representing a performance of 73% of the target. There was a shortfall in GoU releases amounting to UGX.5.8Bn representing 3.1% of the budgeted UGX.186.3Bn. Further, the entity remained with unspent balance of UGX.9.391Bn representing an absorption level of 94.8%. The Authority received off-budget financing worth UGX.443M which was never declared to the PSST and as such no supplementary appropriation was issued as guided by the PSST. I sampled eight (08) outputs with a total of sixty two (62) activities and expenditure of UGX.150.6Bn and noted that one (01) output with a total of four (04) activities and expenditure worth UGX.2.1Bn was fully quantified; three (03) outputs with a total of fifty four (54) activities and expenditure worth UGX.67.1Bn were insufficiently quantified i.e. out of the fifty four (54) activities, forty nine (49) activities (91%) were quantified while the balance of five (05) activities (9%) were not clearly + + + + +140 + + + + + + + + + + + +quantified and four (04) outputs with a total of four (04) activities and expenditure worth UGX.81.3Bn were not quantified at all. Further, assessment of the implementation of the one (01) output that was fully quantified with a total of four (04) activities revealed that it was partially implemented i.e. out of the four (4) activities, the entity fully implemented three (03) activities (75%) while one (1) activity (25%) remained unimplemented. + +- Submission of performance reports for three quarters was made after the deadline dates. Furthermore, I did not obtain evidence to confirm that the Accounting Officer Prepared Monitoring Plans and reports. + + + +- Review of the distribution lists (form Bs) attached to the accountabilities for coffee seedlings supplied revealed that deliveries to a tune of UGX.0.213Bn were made either out of season or towards season end thus rendering the survival of the inputs nearly impossible. + + + +- Fertilizers worth UGX.2.25Bn distributed to the cooperatives were unacknowledged by the intended coffee farmers. The form F3’s where the actual farmers who received the fertilisers were supposed to have acknowledged had not yet been received and verified by management and neither had the cooperatives returned the empty fertiliser bags and filled in form F4’s. + + + +- 65,445 and 1880 bags of fertilisers for the western and Elgon region respectively had not yet been distributed at the time of inspection in September 2021 contrary to section 7 (a) of the fertiliser distribution guidelines that required application of fertilisers to only be done in the rainy season. + + + + + +- Field inspection of the procured fertilizers and materials to support the establishment of CWDR nurseries revealed several anomalies i.e. bad warehousing storage (stacked high on the floor, instead of pallets), lack of aeration and non-adherence to first in first out (FIFO) policy. Further, the nurseries for CWDR had not been setup and materials were simply kept in stores by the beneficiaries and some had started using the implements such as hoes, pangas, wheel burrows; mother gardens were poorly maintained and no labels of the lines had been added to the mother gardens. + + + +- UCDA had a Covid 19 arrears supplementary budget of UGX.73Bn all of which was warranted and absorbed 100%. Review of utilisation revealed doubtful payments, duplicated arrears on verified list and witting down of invoice amounts without supplier consent which exposes the entity to litigation + + + +- Domestic arrears showed a movement in arrears from UGX.120,383,249,500 in the previous year to UGX.23,036,904,150 by the close of the financial year 2019/20, representing a decrease of 80.8%. Out of this, amount UGX.16,699,179,350 was incurred during the year under review. + + + +- A total of UGX.80,373,239,334 (43.1% of the approved budget) was provided for settlement of domestic arrears, however, arrears worth UGX.125,407,367,170 were paid resulting in settlement of prior year domestic arrears worth UGX.45,034,127,836. + + + +- Review of the procurement function revealed several shortcomings such as delays in the procurement process with an average delay period of 2 and a half months, failure to deliver within contractual timelines, un- deducted liquidated damages, inconsistent liquidated damages clauses and deviation from Ministry of Works specifications for vehicle + +141 + + + + + + + + + + + + procurement leading to higher purchase and maintenance costs. UCDA undertook new recruitments in the year which have increased staffing levels to only 147 (66%) positions leaving 77 (34%) positions vacant. Among the vacant posts are key positions i.e. Board Secretary/Director of Corporate Services, three (3) Regional managers, Accountants (2), one (1) procurement manager, thirty eight (38) regional coffee extension officers and three (3) Regional Coffee Technical officers among others. I noted irregular extension of contracts for staff at managerial level without explicit board approval contrary to section 5.3(c) of the UCDA Human Resource manual (2018) and staffs in acting capacities longer than the stipulated time periods in the Human Resource Manual i.e. not more than two terms of six (6) months. +16 Uganda Seeds Limited. 2019/20Opinion Qualified  A receivable of UGX.1,147,910,181 (17% of the total assets) could not be supported as there was no evidence to confirm the accuracy, existence and completeness of the reported balance. Management of USL did not make adequate disclosures regarding what is included in the capital and revaluation reserves. UGX.11,205,053 relating to the expenses for the year ended 30th June 2020 was unsupported. I noted that a disposed of motor vehicle was still maintained in the financial statements and asset register for the period. Previously issued financial statements have been restated for the correction of material misstatement in the previous period. + JUSTICE, LAW AND ORDER SECTOR +1 Directorate of Government Analytical Laboratory (DGAL). 2020/21OpinionUnqualified  Out the total receipts for the financial year of UGX.24.684Bn, only UGX.15.630Bn was spent by the entity resulting in an unspent balance of UGX.9.054Bn representing an absorption level of 63.3%. I noted that of the 39 activities worth UGX.6.23Bn assessed, only 18 activities worth UGX.1.55Bn were fully implemented, 20 activities worth UGX.4.68Bn were partially implemented and one 1 activity worth UGX.8.46Bn was not implemented. An assessment of service delivery revealed that Mbale and Moroto regional laboratories were supported with UGX.0.132Bn to carry out forensic analysis, however the performance the regional labs was assessed as low as both laboratories did not complete any cases during the year. Although, DGAL had a strategic goal to eliminate all case back-logs by 30th June 2021, the forensic case backlog had only reduced by 58.3% from 5,559 cases in June 2018 to 2,317 outstanding cases as at 30th June 2021. Despite receiving UGX.8.625Bn for the construction of a DNA databank during the year, the planned construction did not take place and UGX.8.465Bn was returned to the consolidated fund. In the financial year 2019/2020, DGAL entered into a contractual agreement for which a letter of credit worth UGX.1.475Bn was created at the request of foreign suppliers. The letter of credit remained outstanding for more than one year implying that the foreign supplier had not fulfilled + + + + +142 + + + + + + + + + + + + their contract obligations. In the financial year 2019/2020, DGAL procured digital forensic tools for use to recover data on mobile phones at an estimated cost of USD.82,000 (equivalent to UGX.290,232,000). In the period since acquisition, the entity has only used the forensic tools and equipment to process and analyse just one (1) case raising the possibility that the equipment is under-utilised. Nine (9) staff positions for a Commissioner, Government Analysts and drivers in the Directorate were cleared by the Ministry of Public Service for recruitment, and the directorate received funding amounting to UGX.0.032Bn for the purpose. The recruitment process had not been finalised at the year end and the funds were returned to the consolidated fund. +2 Justice Law and Order Sector JLOS-SWAP. 2019/20OpinionUnqualified  I noted that out of the budgeted revenue of UGX. 121,683,362,209 for the financial year 2019/2020 only UGX. 104,870,934,098 (86%) was released, resulting in a shortfall of UGX. 16,812,428,111 (14%) on the overall. The largest shortfall of UGX. 10,304,157,202 (8.4%) was in respect to the Development Partners funding, A review of the JLOS SWAP disbursement of funds to implementing entities and the respective actual expenditure revealed that only UGX. 81,391,358,207 was spent out of the availed UGX.104,870,934,098, resulting in an unspent balance of UGX.31,080,004,792. The unspent balance excludes the JLOS House Project balance of UGX. 18,592,439,794, which commenced in the subsequent financial year 2020/21. I reviewed all the 43 activities under the JLOS Secretariat with a budget of UGX.23.561Bn, out of which UGX.18.027Bn was released, resulting in a shortfall of UGX.5.534Bn, which is 23.5% of the budget I further noted from the analysis of the annual performance report that some critical activities for which funds had been released had not been implemented. Out of the 43 activities with a total budget of UGX.23.561Bn, I reviewed the extent of quantification of outputs and activities and noted that a total of three (3) activities and releases worth UGX.4.076Bn were not quantified at all to enable assessment of performance. A total of forty (40) activities and releases worth UGX.13.951Bn were fully quantified. That is, all the forty (40) activities (100%) were clearly quantified to enable assessment of performance. I assessed the implementation of all the Forty (40) JLOS SWAP activities worth UGX.13.951Bn that were fully quantified and noted that Fourteen (14) activities worth UGX.12.507Bn were fully implemented. The entity implemented all the Fourteen (14) activities (100%) within the JLOS SWAP consolidated strategic outputs. Four (4) activities worth UGX.0.665Bn were partially implemented. All the Four (4) activities within the JLOS SWAP consolidated strategic outputs were not achieved 100%. Twenty-two (22) activities worth UGX0.779Bn were not implemented at all. I observed that UGX.656,905,350 advanced to various beneficiaries by four implementing agencies to execute sector activities during the COVID- 19 lockdown period, i.e. between November 2019 and June 2020, lacked the necessary supporting documents such as payment vouchers, activity reports and receipts at the time of audit (November 2020) and were + + + + +143 + + + + + + + + + + + + submitted during the month of January 2021, implying that the funds had not been accounted for by 30th June 2020. I noted from the review of financial statements that management did not disclose the outstanding balances as at 30th June 2019. Consequently, no provision was made to cater for domestic arrears in the financial year 2019/2020 budget. But I noted that UGX.9,145,799 was spent to settle outstanding bills in respect of conference facilities for JLOS and the supply and delivery of law reference books +3 Office of the Director of Public Prosecutions. 2020/21OpinionUnqualified  During the years under review, 666,620 cases were brought forward from the previous years, and 99,232 cases were registered during the year, giving a cumulative sum of 765,492 cases recorded. Of these cumulative cases, only 40,466 (5%) were cleared during the year. Over the five years only 253,596 cases representing (33%) have been concluded through conviction, acquittal, withdrawal, dismissal and closed files. ODPP continues to incur substantial annual maintenance costs of UGX.2,808,000,000 in spite of the low coverage of the system (only 41 stations out of the planned 138) and some system components like the complaint handling and processing component are not fully operational. ODPP had an approved organization structure that requires 1,336 staff however, only had 519 staff had been filled. The structure requires 833 prosecutors but is operating with only 366 (40%), and as a result, there are more magistrates than prosecutors. No budgetary provision was made for the settlement of domestic arrears, which stood at UGX.1,611,006,686 as at the beginning of the financial year 2020/2021. As at the close of 2020/2021, the Office reported domestic arrears to the tune of UGX.1,228,911,994. +4 Uganda Human Rights Commission 2020/21OpinionUnqualified  I noted that the Commission did not have an approved strategic plan that was aligned to NDP III by the time of audit. The draft plan prepared by the entity had not been certified by NPA. The Commission collected over 100% of its NTR target for the year over and above the target. The Commission absorbed only 86.8% of the funds that were released by government. The Commission received off-budget financing directly from development partners to a tune of UGX.2.187Bn, which was not declared to Treasury and, therefore, not appropriated to the entity by Parliament. Management did not quantify 2 outputs with 6 activities and expenditure worth UGX 0.12Bn. Out of (11) outputs that were fully quantified with 22 activities, 3 activities worth UGX.0.44Bn were fully implemented, 18 activities worth UGX.15.54Bn were partially implemented. 1 output with 1 activity worth UGX.0.17Bn was not implemented at all. The Commission neither prepared annual budget monitoring plans nor submitted quarterly budget monitoring reports. The Commission also failed to submit all its quarterly budget performance reports in time. The UHRC had tribunal case backlog of 1,756 cases at the beginning of the financial year 2020/2021, and 71 additional cases were registered during the year, resulting in a total of 1,827 outstanding cases. Out of the 1,827 cases, only 326 (17.8%) were investigated and disposed of. The + + + + +144 + + + + + + + + + + + + un-cleared complaints at the tribunal level stood at 1,501 at the year-end, translating into underperformance of 82.2%. Timeline errors continue to occur due to the limited interface between IPPS and IFMS in payroll processing. A review of the payroll register and IFMS payment file revealed that UGX.5.706 Bn was paid as per payroll register; while IFMS indicates that UGX.6.124Bn was paid, resulting in an overpayment of UGX. 0.417Bn. +5 Uganda Law Reform Commission. 2020/21OpinionUnqualified  I noted that the Commission did not have an approved strategic plan that was aligned to NDP III by the time of audit. The draft plan prepared by the entity had not been certified by NPA. The Commission collected only 100% of its NTR target for the year which was commendable. The Commission also absorbed only 92.4% of the funds that were released thus affecting implementation of planned activities. Out of the 8 outputs assessed with 37 activities and expenditure of UGX.7.74Bn, 6 outputs with worth UGX.4.53Bn were fully quantified. I assessed the implementation of 6 outputs with 24 activities that were fully quantified and noted that 1 output with 3 activities and expenditure worth UGX 3.43Bn was fully implemented while 5 outputs with 21 activities worth UGX.1.1Bn were partially implemented. Out of the 21 activities, the entity fully implemented 9 activities, 4 activities were partially implemented, while 8 activities remained unimplemented. The Commission neither prepared annual budget monitoring plans nor submitted quarterly budget monitoring reports. The Commission also failed to submit all its quarterly budget performance reports in time. ULRC did not have any domestic arrears brought forward from the previous year; however, the entity recorded payables worth UGX.124,626,384 under court awards and compensations in the year under audit. +6 Judicial Service Commission 2020/21OpinionUnqualified  I noted that the Commission submitted a draft strategic plan to NPA for approval. The Commission budgeted for NTR of UGX.4.5bn for the financial year 2020/21, however only UGX. 788,000 was collected representing performance of 0.02% of the target. The Commission absorbed 95.7% of the funds that were released. Out of the fifteen (15) outputs sampled, ten (10) were fully quantified, while one (1) was insufficiently quantified and two (2) were not quantified at all. Out of the ten (10) outputs assessed, five (5) were fully implemented while five (5) were partially implemented. The Commission neither prepared annual budget monitoring plans nor submitted quarterly budget monitoring reports. The Commission also failed to submit all its quarterly budget performance reports in time. Out of the approved 143 staff positions, ninety-seven (97) positions were filled while forty-seven (47) positions were vacant. The commission did not remit to URA PAYE of UGX.138,219,093. +7 Ministry of Justice and Constitutional Affairs. 2020/21  At the time of audit, the entity strategic plan had not yet been submitted to NPA; management was awaiting the completion of revising + + + + +145 + + + + + + + + + + + + Opinion Unqualified the Governance and Security Programme. The entity budgeted to collect NTR of UGX.0.112Bn but collected UGX.0.233Bn representing a performance of 208% of the target. There was a shortfall in GoU releases amounting to UGX.34.461Bn, representing 22%. Thirteen (13) outputs with a total of twenty-nine (28) activities were quantified, while eighteen (18) outputs with a total of thirty-nine (39) activities were insufficiently quantified. Further, of the thirteen (13) quantified outputs/activities assessed, two (2) outputs with two (2) activities were fully implemented; eleven (11) outputs with 27 activities were partially implemented. Submission of performance reports for all the quarters was made after the deadline dates. MoJCA received COVID 19 arrears supplementary funding of UGX.18.2Bn, all of which was warranted and spent, representing 100% of the budget absorption. Domestic arrears decreased from UGX.399.88Bn, in the previous year to UGX.381.26Bn as at 30th June 2021, representing a reduction in arrears by 4.6%. The arrears remained unsettled at the close of the year. The unpaid Court Awards and Compensation stood at UGX. 377.43Bn as of 30th June 2021, which has accumulated over the last ten years. I noted that the MOJCA had not put in place a documented criterion for prioritizing the settlement of Court awards. I noted a rising trend of Government liabilities due to the following (Under budgeting for court awards and compensation across Government, Accumulation of interest, Non-disclosure of contingent liabilities by other MDAs and New developments in the law) +8 The Directorate of Citizenship and Immigration Control. 2020/21Opinion Unqualified  The DCIC prepared a strategic plan for 2020-2025 that was approved by the National Planning Authority on 22nd November 2021. However, following the issuance of a Certificate of Approval, management had not approved the plan for implementation. Out of the total receipts for the financial year of UGX.104.9Bn, only UGX.103.9Bn was spent by the entity resulting in an unspent balance of UGX.1.0Bn representing an absorption level of 99%. I sampled seventeen (17) outputs with a total of one hundred seventeen (117) activities and expenditure of UGX.101.8Bn for assessment and noted that eleven (11) outputs with expenditure worth UGX.26.95Bn were fully quantified. Five (5) outputs with worth UGX.74.09Bn were insufficiently quantified, and One (1) output with expenditure worth UGX.0.13Bn was not quantified at all I noted that a sum of UGX.1.02Bn was released to DCIC to settle Domestic Arrears to a supplier under Covid-19 related funding. An assessment of service delivery revealed that DCIC takes an average of 7.7 days to process a passport and a further 7.3 days from the date of printing to issue the passport to the citizens. I further observed that although the Directorate has several regional offices for processing of passports, 97% of the applications for passports and 92% of the issuances are done at the Central Office in Kampala. A trend analysis of the Directorate domestic arrears over the past three + + + + +146 + + + + + + + + + + + + years showed a decreasing trend from UGX.4.19Bn in 2018/2019 to UGX.0.32Bn in 2020/2021. A review of the approved budget estimates for the year revealed that only UGX.1,015,473,085 (11.4%) was budgeted and released to settle domestic arrears amounting to UGX.8,898,668,915, implying insufficient budgeting for domestic arrears. The Directorate procured an e-visa and permit management system during the financial year. I observed a number of contract conditions, including final user acceptance testing, completion of the setup of the system workflow, training of end-users, and integration of the system to other government systems in NIRA, CAA, URSB, and URA had not yet to be achieved. The Directorate procured a consultant for the configuration, installation and maintenance of an Integrated System for archived records and the maintenance of the electronic data management system. I observed delays in contract execution and that the entity did not have a Service Level Agreement to guide the support and maintenance of the system. +9 The Court of Judicature (The Judiciary). 2020/21Opinion Unqualified  The Judiciary prepared a strategic plan and had it approved by NPA at the time of audit. The entity budgeted to collect NTR of UGX. UGX.11.043Bn but collected UGX.5.698Bn representing a performance of 52% of the target. There was a shortfall in GoU releases amounting to UGX.6.02Bn, representing a 3% shortfall. Thirteen (13) outputs with a total of sixty-seven (67) activities were quantified, while seven (7) outputs with a total of twenty-seven (27) activities were insufficiently quantified, and six (6) outputs with a total of forty-five (45) activities were not quantified at all. Further, of the thirteen (13) quantified outputs/activities assessed, five (5) outputs with fourteen (14) activities were fully implemented; eight (8) outputs with fifty-three activities were partially implemented. Submission of all performance reports for all the quarters was made after the deadline dates. I noted the accumulation of case backlog due to delayed operationalisation of gazetted courts and a limited number of judicial officer’s compared to the workload. Judiciary had a COVID 19 arrears supplementary budget of UGX.8.66Bn, all of which was warranted and spent representing 100% of the budget absorption. I noted an increase in receivables from UGX 661,164,656(2019/2020) to UGX 3,268,317,882 (2020/2021). This was partly due to UGX. 1,652,842,084 that was advanced to courts to undertake election petitions and remained unaccounted for at the end of the financial year under audit. Furthermore, the other receivables of UGX.320,947,170 carried forward from previous years remained outstanding with no recoveries made. I noted that management accrued new domestic arrears totalling UGX. 4,171,245,048 during the financial year 2020/2021 compared to UGX. 2,641,109,446 new arrears accrued in 2019/2020, registering an increment of new arrears of UGX. 1,530,135,602 thus representing a 58% growth rate. Judiciary did not budget for domestic arrears amounting to UGX.3.543Bn, + + + + +147 + + + + + + + + + + + + which remained outstanding in the FY 2019/20. I noted inconsistencies in statistics reported on both pending and cases handled by the Judiciary during the period. I noted delays in the implementation of The Electronic Court Case Management Information System (ECCMIS); an overall average delay of 3 months since the Go-live had been scheduled on 7th June 2021. But, as of 11th October 2021, this has not yet been done. Data migration of the Phase 1 stations from CCAS into the new integrated ECCMIS has not been performed; the project was still at the design and development stage at the time of audit; the Change management training is still ongoing as of 6th October 2021, yet the training had been scheduled for 23rd October 2020, some planned activities were not implemented, like the migration of data for phase 1 entities from the court case administration system (CCAS) to ECCMIS. +10 The Uganda Prisons Service. 2020/21Opinion Unqualified  The UPS prepared a strategic plan for the period 2020-2025 and was approved by the National Planning Authority on the 23rd of July 2021. Out of the total receipts for the financial year of UGX.310.8Bn, only UGX.306.5Bn was spent by the entity resulting in an unspent balance of UGX.4.4Bn representing an absorption level of 98.6%. I sampled fourteen (14) outputs with a total of eighty seven (87) activities and expenditure of UGX.316.2Bn for assessment and noted that ten (10) outputs with a total of fifty-seven (57) activities and expenditure worth UGX.293.82Bn were fully quantified and four (4) outputs with a total of thirty (30) activities and expenditure worth UGX 22.36Bn were insufficiently quantified I noted that of the 57 quantified activities worth UGX293.82Bn assessed; 35 activities representing 61% were fully implemented, 20 activities representing 35% were partially implemented, while 2 activities representing 4% were not implemented. I noted that a sum of UGX. 40,6Bn was released to UPS for the settlement of Domestic Arrears to suppliers under Covid-19 related funding with all funds spent for settlement of arrears. A trend analysis of the Service’s domestic arrears over the past three years showed a decreasing trend from UGX.65.97Bn in 2018/2019 to UGX.62.345Bn in 2020/2021. I noted that UPS was only allocated UGX.40.6Bn (67.4%) for settlement of domestic arrears worth UGX.60.2Bn and paid for arrears worth UGX.54.8Bn with the additional funds worth UGX.14.2Bn diverted from planned activities to pay for the arrears An assessment of service delivery revealed cases of overcrowding in prison cells with the congestion levels increasing from 291.5% in 2017/18 to 321.1% in 2020/2021. This compromises the welfare of the inmates and may result in a number of health risks such as the quick spread of diseases and compromising on sanitation. The existing congestion has proved a challenge for the prisons’ service when implementing Standard Operating Procedures (SOPs) to reduce the spread of COVID-19. It has also posed a challenge in separating different categories of offenders to break the cyclic chain of crime and violence. I noted that a total of 33 (12.7%) prisons stations are still using the bucket system of sanitation which may turn cells into a breeding centre for diseases, resulting in the violation of the prisoners’ rights I noted cases of over stay of prisoners on remand with the prisoners’ + + + + +148 + + + + + + + + + + + + length of stay on remand increasing from 10.5 to 18.8 months for capital offenders and from 2.6 months to 3.8 months for petty offenders from 2016/17 to 2020/2021 respectively. For example out of the 32,409 prisoners on remand, a total of 13,933 prisoners had overstayed on remand I observed challenges of staff accommodation which currently stands at a deficit of 7,217 (65.1%) housing units with staff staying in temporary houses/shelters/not accommodated The Service also faced challenges of under staffing where out of an approved organisation structure comprising of 49,470 staff, only 12,860 (26%) posts were filled, leaving a balance of 36,610 (74%) posts vacant. This leads to high staff prisoner ratio and causes fatigue among the few staff I noted that sixty-seven (67) of the prison stations did not have buses to enable safe and secure transportation of prisoners to court which resulted into delayed delivery of prisoners to courts, transportation of high-risk inmates on open trucks, and prisoners and staff walking long distances to attend court. I noted delays in completion of the Prisoners Management Information System (PMIS) which has delayed the enjoyment of anticipated benefits from the system. I observed challenges in land management including encroachments, land disputes and encumbrances. Out of 158 pieces of land of different sizes in the different parts of the country, only 52 pieces were surveyed and titled, 17 pieces were surveyed but still not yet titled, while 89 pieces were not yet surveyed. Furthermore, the UPS did not have land surveying equipment +11 The Law Development Centre. 2020/21Opinion Unqualified  LDC had prepared the Strategic Plan aligned to NDP III and approved by NPA. The entity budgeted to collect NTR of UGX 13.503Bn during the year under review. Only 12.205Bn was collected, representing a performance of 90% of the target. LDC budgeted to receive UGX.28.16Bn out of which UGX.24.84Bn was availed, resulting in a shortfall of UGX.3.32Bn, which is 88.2% performance of the budget. Out of the total warrants of UGX., 24.84Bn received during the financial year, UGX. 24.53Bn was spent by the entity resulting in an unspent balance of UGX.0.31Bn, representing an absorption level of 99%. From a sample of ten (10) outputs with a total of twenty-five (25) activities and expenditure of UGX.24.53Bn, Four (4) outputs with a total of fifteen (15) activities and expenditure worth UGX.20.5Bn were fully quantified. One (1) output with a total of five (5) activities and expenditure worth UGX.0.6Bn, was insufficiently quantified, and Five (5) outputs with a total of five (5) activities and expenditure worth UGX 3.4Bn were not quantified at all. I assessed the implementation of four (4) outputs that were fully quantified with a total of fifteen (15) activities worth UGX 20.5Bn and noted that all the five (5) activities within this output were fully implemented. Two (2) outputs with ten (10) activities worth UGX.19.2Bn were partially implemented, the entity fully implemented six (6) activities, three (3) activities were partially implemented, while one (1) activity remained unimplemented. + + + + +149 + + + + + + + + + + + +  The entity submitted all performance reports after the deadline. LDC had outstanding commitments brought forward totaling UGX. 2,697,202,827 as at 30th June 2020. During the year under review, UGX. 1,490,351,141 was paid, and UGX. 786,304,467 was accumulated, leaving an outstanding of UGX. 1,993,156,153 as at 30th June 2021. +12 The Uganda Registration Services Bureau – Liquidation. 2020/21Opinion Unqualified  The entity had a court appropriation of UGX.1.162Bn for the financial year 2020/2021 and an appropriation by court brought forward from the previous year 2019/2020 of UGX.0.640Bn totaling up to UGX.1.802Bn receipts. Out of the total funds available for expenditure of UGX.1.802Bn, UGX.1.277Bn was spent by the bureau resulting in an unspent balance of UGX.0.525, representing an absorption level of 70.9%. I reviewed all the outputs and noted that the outputs were all adequately quantified. Out of the six (6) outputs assessed, one (1) was fully implemented, while five (5) were partially implemented. Five (5) outputs with twenty-four (24) activities worth UGX1.061Bn were partially implemented. URSB did not prepare performance reports for liquidation. I observed that the bureau had receivables carried forward from the previous financial years amounting to UGX.6.243Bn that remained outstanding at the end of the financial year under audit. +13 The Uganda Registration Services Bureau - Operations. 2020/21Opinion Unqualified  The URSB strategic plan was prepared and approved by NPA. The entity budgeted to collect NTR of UGX.47.31Bn but collected UGX.41.32Bn representing a performance of 87% of the target. The URSB budgeted to receive UGX. 26.871Bn out of which UGX. 23.099Bn was availed, resulting in a shortfall of UGX.3.772Bn, which is 14% of the budget. Further, the entity remained with an unspent balance of UGX. 0.33Bn representing an absorption level of 99%. Out of the seven (7) outputs sampled, five (5) were fully quantified, while one (1) was insufficiently quantified and one (1) was not quantified at all. Out of the five (5) outputs assessed, two (2) were fully implemented while three (3) were partially implemented. Submission of all the quarterly performance reports was made after the deadline date. Also, inconsistencies were noted in the annual performance report and the system-generated reports. For example, management reported four (4) and two (2) patents to have been granted in the financial years of June 2020 and June 2021, respectively. Yet the system report analysis showed that no patent had been granted in the last two financial years. Despite a positive increase in the number of searches on the system, there was a significant decline in the performance of industrial designs registered, Local Trademarks renewed, Patents granted, and foreign trademarks registered I analysed the number of applications received and eventually registered for the Utility model, patents and industrial designs and noted a significant difference in the number of applications that materialised to actual registrations. For instance, three (3) out of nineteen (19) Utility model applications were granted, two (2) out of the fifteen (15) Patent applications were granted, seventeen (17) out of the seventy-six (76) + + + + +150 + + + + + + + + + + + + were granted. I noted a decline in performance for activities planned under Civil Registration; the number of churches registered declined by 38.8%. Similarly, the number of Marriage returns FBOs, and Districts registered a decline in the performance of 17.56%. I noted shortcomings in the performance of the National Marriage registration system such as; NMRS could not internally generate reports; few staff are trained, incomplete information on certificates generated through the system, the system does not allow bulky payments, resulting in multiple bank charges to the customer, other systems of the Bureau like on base are not integrated with NMRS. URSB received COVID 19 arrears supplementary budget of UGX.0.0318Bn, all of which was spent representing 100% of the budget absorption. The Bureau had UGX.4.516Bn in domestic arrears, but it budgeted and was warranted UGX.0.032Bn, leaving a balance of UGX.4.484Bn unbudgeted. URSB effected payments totaling UGX.1.216Bnresulting in excess of UGX.1.184Bn above the approved budget. Domestic arrears increased by UGX.3.055Bn (68%) from UGX.1.466Bn to UGX.4.516Bn as at June 2021. The arrears remained unsettled at the close of the year. I reviewed the business registration system and noted the absence of an inbuilt mechanism to track and trace the movement and clearance of queries raised regarding name reservations and applications. The entity still has some processes that use manual backup. There were delays in the development of the Quality Management system ISO 9001(QMS) +14 The Ministry of Internal Affairs. 2020/21Opinion Unqualified  The Ministry of Internal Affairs prepared a strategic plan for 2020-2025. However, it had not been approved by the National Planning Authority at the time of audit. Out of the total receipts for the financial year of UGX.51.5Bn, only UGX.50.8Bn was spent by the entity resulting in an unspent balance of UGX.0.7Bn representing an absorption level of 99%. I sampled forty-one (41) outputs with a total of one hundred and ninety- seven (197) activities and expenditure of UGX.37.7Bn for assessment and noted that fifty-nine (59) activities with expenditure worth UGX.11.30Bn were fully quantified. one hundred thirty-seven (137) activities with worth UGX.26.1Bn were insufficiently quantified, and one (1) activity with expenditure worth UGX.0.24Bn was not quantified at all An assessment of service delivery revealed that in the financial year 2020/2021, the Ministry extended support to 299 victims of human trafficking, which is only 45% of the total victims of human trafficking as reported by the Uganda Police Force. An assessment of the Monitoring of NGOs revealed that although the Ministry had registered 2,249 NGOs, the Ministry could only carry out offsite inspections of just 145 NGOs or 1% of all registered NGOs. A trend analysis of the Ministry domestic arrears over the past three years showed an increasing trend from UGX.0.078Bn in 2018/2019 to UGX.1.45Bn in 2020/2021. The Ministry paid for repair services worth UGX.13,237,877 without being certified by the responsible technical officer to confirm receipt of the services. The Ministry also procured stores worth UGX.88,444,071, which were not recorded in the Ministry’s stores records. I noted that procurements worth UGX.88,844,071 were not recorded in + + + + +151 + + + + + + + + + + + + the stores’ ledgers nor witnessed by internal audit, making it difficult to verify the deliveries. The Ministry of Internal Affairs has an approved structure of 224 positions, out of which 105 are filled, resulting in a shortfall of 119 (representing 47%)., including critical positions such as Commissioner Compliance, Assistant Commissioner Compliance, Senior Internal Auditor, Commissioner and Assistant Commissioner for the Social Integration department were vacant. +15 Uganda Police Force. 2020/21Opinion Unqualified  Uganda Police Force prepared a strategic plan for the period 2020-2025. However, the plan had not yet been approved by the National Planning Authority at the time of audit . Uganda Police Force budgeted to collect NTR of UGX.24.06Bn during the year. However, by the end of the year, UPF had collected a total of UGX.33.80Bn. Out of the total GoU receipts for the financial year of UGX.1,043.5Bn, only UGX.1,040.2Bn was spent by the entity resulting in an unspent balance of UGX.3.4Bn representing an absorption level of 99.7%. As a result, I noted that of the twenty-eight (28) fully quantified activities worth UGX.207.3Bn assessed, three activities representing 11% were fully implemented, while 25 activities representing 89% were partially implemented. I noted that UPF received off-budget financing amounting to UGX.12.4Bn, which was not declared to the Treasury and therefore not appropriated to the entity by Parliament. I assessed the extent of service delivery and noted that the coverage of canine services had only reached 68 (or 43%) out of Uganda’s 157 policing districts, affecting the extent of canine-related investigations and service delivery in the areas not yet covered. I assessed the progress on the investigation of crime by the Uganda Police Force and noted that the entity had only completed investigations for 331,584 (40.7%) cases, leaving a backlog of 445,976 cases. Of the 445,976 backlogs of cases, 291,060 (65%) have been pending for three (3) or more years. Although Uganda Police has completed Phase 1 and 2 of the project for the installation of CCTV cameras, I observed that the Force does not have a budget for the maintenance of the installed camera infrastructure. UPF received a sum of UGX.49.22Bn as ‘Covid-19 related’ funding, all of which was utilised for the purpose for which it was released. An assessment of the performance of the Express Penalty Scheme revealed that whereas tickets worth UGX.120.8Bn have been issued in the period from 2015/2016 to 2020/2021, only UGX.90.Bn has so far been collected, resulting in uncollected arrears amounting to UGX.29.98Bn. A trend analysis of domestic arrears over the past three years shows a decreasing trend from UGX.161.0Bn in 2017/2018 to UGX.114.1Bn at the close of 2020/2021. A total of 380 staff continued to receive salaries amounting to UGX.1,795,637,954 after their retirement date, as recorded in the Integrated Personnel and Payroll System (IPPS). UPF does not have an approved land management policy. In addition, a total of 408 out of the 1,078 parcels of land owned by UPF are neither + + + + +152 + + + + + + + + + + + + surveyed nor titled. +16 National Identification and Registration Authority (NIRA). 2020/21Opinion Unqualified  NIRA prepared a strategic plan for the period 2020-2025, which was approved by the National Planning Authority. However, the plan is yet to be approved by the Board of the Authority for implementation. NIRA budgeted to collect NTR of UGX.15.0Bn during the year. However, by the end of the year, NIRA had collected a total of UGX.3.66Bn. Out of the total GoU receipts for the financial year of UGX.55.2Bn, only UGX.53.3Bn was spent by the entity resulting in an unspent balance of UGX.1.7Bn representing an absorption level of 97%. As a result, I noted that of the twenty-four (24) fully quantified activities worth UGX.70.6Bn assessed; 10 activities representing 42% were fully implemented, 12 activities representing 50% were partially implemented, while 2 activities representing 8% were not implemented at all. I assessed the extent of service delivery and noted that only 11% of the planned 1,712,880 citizens were registered during the year, while only 30% of the planned 2,000,000 National IDs were issued. I assessed the progress on registration of births and deaths and observed that NIRA registered 90% of the planned 960,000 births and only 1.3% of the 960,000 deaths. A review of the progress of registering citizens indicated that as of December 2021, 29,713,029 applications, or 69% of all Ugandans, had applied to NIRA for registration. Of these, only 25,557,448 or 86% of the applicants had been registered, and only 16,258,521 (63.6%) have been issued with National Identity cards. Only 16.3 million cards out of the over 19 million national identity cards so far printed have been claimed, leaving over 2.7 million cards unissued or unclaimed. At the time of audit (December 2021), the Authority had over 4.3 million applications yet to be processed. Of these, 3.2 million applications were still being processed, while 1.1 million applications have been rejected. NIRA plans to register at least 28,000 aliens annually and issue them with the relevant identification cards. From 2015 to date, the entity has only received 16 applications for alien IDs, and no Alien ID has been issued. A reviewed the outcome of the initiative to register learners (or school going children within their schools) undertaken in 2017/2018 to determine whether all registered learners had been issued with NINs. I noted that records of over 1.8 million (or 19%) learners’ who registered during that exercise had been rejected and thus not processed for issuance of NINs and Identification Cards. NIRA failed to procure over 4,500,000 million IDs from the Uganda Security Printing Company as the Joint Venture Agreement required. As a result, the entity has recognised a contingent liability of UGX.33.5Bn. +17 Amnesty Commission 2020/21Opinion Unqualified  The entity budgeted to receive UGX.4.016Bn, out of which UGX.3.868Bn was warranted, resulting in a shortfall of UGX.0.147Bn, which is 3.7% of the budget. Out of the total receipts for the financial year of UGX.3.199Bn, all of the funds were spent by the entity representing an absorption level of 100%. As a result, I noted that of the three (3) quantified activities worth UGX.1.297Bn assessed, all of three (3) activities were partially implemented. + + + + +153 + + + + + + + + + + + + SECURITY SECTOR +1 NEC AGRO SMSC LTD 2019/2020Opinion Unqualified  Accounts receivables increased by 229% from UGX.3.080bn in the financial year 2018/19 to UGX.7.062bn in financial year 2019/20. Outstanding debtors represent idle resources which could be used in the implementation of planned activities. I noted weaknesses in the utilisation of the Corporation’s tractors which include; the tractors have remained parked for a long period of time hence losing value, the entity spent a sum of UGX.8,094,000 on tractor repairs but no revenue was generated, having been acquired in 2010, these tractors are due for disposal however the disposal process had not started. I reviewed Financial Performance of NEC AGRO SMC LTD and observed the following: The Corporation had an operating margin of 6.8% which is below the recommended 15%. This implies that the subsidiary has a lower proportion of revenues covering expenses rather than profits or income. The Corporation made profits of UGX.2.061bn after tax in the year under review up from profits of UGX.0.661bn realized in the previous year (a rise of 211.5%). The Corporation had positive retained earnings of UGX.0.724bn as at the end of the financial year. This will enable the corporation to meet future contingencies or investments in growth. The return on assets for the Corporation increased to 19.1% from 13.1% recorded in the previous year which is generally considered good given that it is over 5%. The Corporation had a current ratio of 2.7 for the year under review which was above the desirable ratio of 1.5 implying that the Corporation is not efficiently using its current assets. The Corporation had a debt ratio of 35% as at the end of the financial year compared to 2.8% in the previous year implying that the majority of the Corporation assets are financed by debt. Two subsidiaries i.e. NEC Tractor Hire Scheme and NEC Tractor Project to form NEC AGRO SMC LTD were merged to form NEC AGRO SMC LTD. Although the Corporation is now in operation, it has not been approved by the Uganda Registration Services Bureau. +2 NEC AGRO SMSC LTD 2020/2021Opinion Unqualified  Receivables increased by 23.2% from UGX.6,671,059,244 in the F/Y 2019/20 to UGX.8,219,802,915 in the F/Y 2020/21 and a number of debtors had been outstanding since financial year 2018/19 to-date. NEC AGRO SMC LTD has an operating margin of 8.5% which is below the desirable 15%. This implies that the subsidiary has a lower proportion of revenues covering expenses rather than profits or income. The Corporation had a current ratio of 11.4 for the year under review which was way above the desirable ratio of 1.5. I further noted that the current ratio for the year increased by 322% from a ratio of 2.7 recorded in the previous year. +3 (NEC) Farm Katonga Limited. 2019/2020Opinion Unqualified  The Corporation had an operating margin of 2.1%, which is below 50% which implies that the Corporation is having a lower proportion of revenues covering expenses rather than profits or income. The Corporation had negative retained earnings of UGX.1,474,703,986 as at the end of the financial year. This may affect the entity’s ability to + + + + +154 + + + + + + + + + + + + meet future contingencies or investments in growth. The return on assets for the Corporation increased by 0.01% from 0.55% recorded in the previous year, the return was still very low. This implies that the Corporation is not making enough income from the use of its assets. The Corporation had a current ratio of 389 for the year under review which was far above the desirable range of 1.5 – 2.0. It reduced by 59% from a ratio of 938 realized in the previous year. +4 (NEC) Farm Katonga Limited, 2020/2021Opinion Unqualified  The Corporation has an operating margin of 1.2%, which is below the 50% compared to 2.1% realized in the previous year 2019/20 representing a reduction of 43% which implies that the Corporation is having a lower proportion of revenues covering expenses rather than profits or income. The Corporation made profits of UGX.32,789,541 after tax in the year under review up from profits of UGX.30,230,727 realized in the previous year representing a rise in profits of 8.5%. However the Corporation had negative retained earnings of UGX.1,441,914,445 as at the end of the financial year which may affect the entity’s ability to meet future contingencies or investments in growth. The corporation posted a return on assets of only 0.4% down from 0.56% posted in the previous year, representing a reduction in ROA of 28.6%. This implies that the Corporation is not making enough income from the use of its assets. The Corporation had a current ratio of 2,123 for the year under review which was far above the desirable range of 1.5 – 2.0. The very high current ratio implies that the Corporation is not efficiently using its current assets or its short-term financing facilities. A loan advances worth UGX.808,940,140 was extended to NEC AGRO SMC LTD on 10/03/2021 after committing to pay back the short term loan in 4 weeks. It was however observed that at the time of writing this report in December 2021, the loan advance had not been repaid. It was established that NEC was involved in land disputes with various encroachers at NEC Farm Katonga which may result into loss of land if not promptly handled. +5 NEC Headquarter 2019/2020Opinion Unqualified  The Corporation had outstanding debtors amounting to UGX.1,796,916,916 some of which have been outstanding for a number of years. Continued reflection of the debtors’ amount in the financial statements when their recovery seems to be remote misleads users of the accounts. The Corporation owns Plot No. 1018 which is about 10 acres of land at Kampala Industrial and Business Park in Namanve allocated to it by Uganda Investment Authority in the year 2005 which has remained undeveloped for about 15 years due to lack of an access road. +6 NEC Headquarters 2020/2021Opinion Qualified  I observed that NEC Pharmaceutical investment reduced to UGX.1,118,877,451 from UGX.2,460,326,736 by the end of the financial year 2020/2021 because machinery and furniture valued at UGX.1,341,449,285 was to be disposed of. The Ministry of Works expert put the value of the machinery and furniture to be disposed of at UGX.413,720,000 implying that value for sale was overstated by UGX.927,729,285. In the FY 2017, NEC was allocated road construction and maintenance + + + + +155 + + + + + + + + + + + + equipment from Ministry of Works and Transport as one way of enhancing its competitiveness in the market. I however noted that the depreciation charge related to the road construction and maintenance equipment was not disclosed in the statement of profit and loss and other comprehensive income contrary to the existing financial reporting standards. Debtors worth UGX.757,989,660 were reported among which are sundry debtors and prepayments worth UGX.142,254,800 which have been outstanding for a period of more than one year. Payable amounting to UGX.10,010,447 have remained outstanding for over ten years. In 2005, Iran Agro Industries was given a lease for 17 square miles of land at NEC Farm Katonga. The initial 5-year lease elapsed without fulfilment of the lease obligations by Iran Agro Industries and the lease was terminated but the land titles were not repossessed by NEC. It was observed that there was no Annual General Meeting held in the last five years and the entity’s draft strategic plan had not been reviewed by NPA to align to NDP III for onward approval by the Board of Directors. +7 NEC Luwero Industries Limited, 2019/2020Opinion Unqualified  The Corporation had outstanding trade debtors amounting to UGX.791,065,997 at the close of the financial year 2019/2020 some of which have been outstanding for over the past three financial years. Uncollected debtors represent an idle resource that would be put to use by the entity to enhance its operations. The Corporation had outstanding trade creditors amounting to UGX.33,967,430 some of which have been outstanding for over three financial years. Failure to settle creditors for such long periods could lead to litigation costs for the entity and impact on the going concern as the creditors may cease doing business with the entity. NEC has established an e-waste project at 6th Street Industrial Area managed by Luwero Industries Ltd; a subsidiary of NEC and over UGX.200 million was spent on renovation of structures where the e-waste project was to be established. I noted that NEC is yet to acquire a land title for the space where this project is established. The Corporation has an operating margin of 30%, which is below 50% compared to 3% realized in the previous year 2018/19 representing an increase of 900%. This implies that the Corporation is having a lower proportion of revenues covering expenses rather than profits or income. I noted that the Corporation made profits of UGX.3,380,139,206 after tax in the year under review up from profits of UGX.206,028,828 realized in the previous year representing a rise in profits of 1,541%. I further noted that the Corporation had negative retained earnings of UGX.19,235,077,990 as at the end of the financial year. I noted that although the return on assets for the Corporation increased by 11.5% from 0.95% recorded in the previous year, the return was still very low. This implies that the Corporation is not making enough income from the use of its assets. I noted that the Corporation had a current ratio of 5.2 for the year under review which was above the desirable ratio of 1.5. I further noted that the current ratio for the year increased by 4% from a ratio of 5.0 recorded in the previous year. The Corporation had a debt ratio of 5.3% as at the end of the financial year under review implying that majority of Corporation assets are + + + + +156 + + + + + + + + + + + + financed by debt. In comparison with the previous year, the debt ratio was 6.6% indicating a reduction of 1.3% in the debt over the one year period. +8 National Enterprise Corporation (NEC) Luwero Industries Limited. 2020/21Opinion Unqualified  The entity had outstanding trade debtors amounting to UGX.491,697,278 at the close of the financial year 2020/2021, some of which have been outstanding for over the past three financial years. Uncollected debtors represent an idle resource that would be put to use by the entity to enhance its operations. The Corporation had outstanding trade creditors amounting to UGX.744,085,592 some of which have been outstanding for over three financial years. Failure to settle creditors for such long periods could lead to expensive litigation costs for the entity and impact on the going concern as the creditors may cease doing business with the entity. The Corporation had negative retained earnings of UGX.15,552,895,876 as at the end of the financial year. This may affect the entity’s ability to meet future contingencies or investments in growth. The corporation posted a return on assets of only 10% down from 12.5% posted in the previous year, representing a reduction in ROA of 20%. This implies that the Corporation is not making enough income from the use of its assets. The Corporation had a current ratio of 11.9 for the year under review which was above the desirable ratio of 1.5. A very high current ratio implies that the Corporation is not efficiently using its current assets or its short-term financing facilities. The Corporation had a debt ratio of 2.1% as at the end of the financial year under review implying that majority of Corporation assets are financed by debt. +9 NEC UZIMA. 2019/2020Opinion Unqualified  I noted that management procured major factory materials worth UGX.1,645,898,731 without adhering to neither the existing procurement processes nor applying for accreditation of an alternative system specifying existence of unique circumstances that could have prevented adherence to the requirements of PPDA Act. NEC UZIMA LTD has an operating margin of 5.8% which is below 15%. This compared to 1.3% realised in the previous year 2018/19 represented an increase of 346% which puts the company in an awful situation. Despite NEC Uzima Ltd making profits, the company had negative retained earnings of UGX.231,489,309 as at the end of the financial year. If this is not improved in the future, entity’s ability to meet future contingencies or investments in growth may be affected. I noted that the return on assets for the Corporation increased to 6.3% from 2.3% recorded in the previous year which is generally considered good given that it is over 5%. The Corporation had a current ratio of 0.55 for the year under review which was way below the desirable ratio of 1.5. The Corporation is not able to satisfy its current liabilities/short-term obligations without raising external capital. The Corporation had a debt ratio of 61% as at the end of the financial year under review implying that majority of Corporation assets are financed by debt. This implies that the company doesn’t have enough funds to meet its current debt obligations and may find it hard to pay a return on government investments. + + + + +157 + + + + + + + + + + + +10 NATIONAL ENTERPRISE UZIMA LTD, 2020/2021Opinion Unqualified  Payables increased from UGX.1,042,752,671 in the F/Y 18/19 to UGX.1,744,963,543 in 19/20 and further to UGX.2,052,449,538 in the year under review. The increasing trend of payables could result into an uncontrollable level of payables which greatly affects the credit worthiness of the entity. The Corporation had negative retained earnings of UGX.88,435,269 as at the end of the financial year. This may affect the entity’s ability to meet future contingencies or investments in growth. The Corporation had a current ratio of 2.3 for the year under review which is above the desirable ratio of 1.5. The high current ratio implies that the Corporation is not efficiently using its current assets or its short term financing facilities. The Corporation had a debt ratio of 53.5% as at the end of the financial year under review which is considered undesirable. This implies that the company does not have enough funds to meet its current debt obligations and may find it hard to pay a return on Government investment. +11 NEC Construction Works and Engineering Limited, 2019/2020Opinion Unqualified  NEC Works Ltd had outstanding trade debtors of UGX.10,074,717,689 as at the close of the financial year 2019/2020. Outstanding debtors represent an idle asset that would be put to use by the entity to enhance its operations. National Enterprise Corporation (NEC) engaged into an MoU with Uganda Free Zone Authority (UFZA) in June 2019 for construction of the Free port zone facilities at Entebbe international airport. I observed that as at 30/06/2020, the completion status was barely at 30% with expected date of completion in June 2021. The Corporation has an operating margin of 9%, which is below 50% compared to 12.5% realized in the previous year 2018/19 representing a reduction of 28%. This implies that the Corporation is having a lower proportion of revenues covering expenses rather than profits or income. The Corporation made profits of UGX.2,094,813,036 after tax in the year under review up from profits of UGX.1,298,330,782 realized in the previous year representing a rise in profits of 61%. The return on assets for the Corporation increased by 5% from 5.8% recorded in the previous year, the return was still very low. This implies that the Corporation is not making enough income from the use of its assets. The Corporation had a current ratio of 1.3 for the year under review which was below the desirable ratio of 1.5. I further noted that the current ratio for the year increased by 12% from a ratio of 1.16 recorded in the previous year. The low current ratio implies that the Corporation has limited ability to meet short-term obligations without raising external capital. The Corporation had a debt ratio of 79% as at the end of the financial year under review implying that majority of Corporation assets are financed by debt. This implies that the company does not have enough funds to meet its current debt obligations and may find it hard to pay a return on government investments. +12 National Enterprise Corporation - Construction, Works and Engineering Ltd 2020/21  NEC Works Ltd had outstanding trade debtors of UGX.2,961,747,233 as at the close of the financial year 2020/2021 some of which have been outstanding for more than one year. I was not availed any recovery plans + + + + +158 + + + + + + + + + + + + Opinion Unqualified nor any initiatives taken by management to recover the debts. The Corporation had an operating margin of 11%, which is below 15% compared to 9% realized in the previous year 2019/20 representing an increase of 22%. This implies that the Corporation is having a lower proportion of revenues covering expenses rather than profits or income. The Corporation had a current ratio of 1.4 for the year under review which was below the desirable ratio of 1.5. The low current ratio implies that the Corporation has limited ability to meet short-term obligations without raising external capital. The Corporation had a debt ratio of 69% as at the end of the financial year under review implying that majority of Corporation assets are financed by debt. +13 Uganda Air Cargo Corporation 2019/2020Opinion Unqualified  The Corporation had outstanding debtors of UGX.8,174,344,548 as at 30th June, 2020. UGX.8,159,631,016 representing 99.8% of the debtors reported has been outstanding for a period of more than 5 years. The uncollected debtors constitute more than 65% of the total current assets. The Corporation had outstanding trade payables amounting to UGX.25,276,330,330 as at 30th June, 2020 with over UGX.13bn having been outstanding for over three financial years. Management budgeted to collect revenue of USD.9,750,409 from its 8 revenue streams but only USD.444,407 was realized resulting into under collection of USD.9,306,004. The under collection constituted 95% of the budgeted revenue. In keeping in line with the Corporation’s vision, major investment projects were envisaged in the 10 year plan period but a review of the entity work plans and operations revealed that none of the projects has been implemented despite being in its 5th year of implementation. The Corporation made a loss of UGX.12.6 Bn after tax in the year under review up from a loss of UGX.3.7 Bn realized in the previous year representing a rise in losses of 238%. I further noted that the Corporation had negative revenue reserves of UGX.16.331 Bn as at the end of the financial year. This may affect the entity’s ability to meet future contingencies or investments in growth. The Corporation had a current ratio of 0.5 for the year under review which was below the desirable ratio. The low ratio implies that the Corporation has limited ability to meet short term obligations without raising external capital. The Corporation had a debt ratio of 30.6% as at the end of the financial year under review which is below the desirable of 50% and above implying that majority of Corporation assets are financed by debt. An audit inspection established that the Corporation did not have an operating Aircraft to do business since most of them had been grounded under different circumstances. +14 Uganda Air Cargo Corporation, 2020/2021Opinion Unqualified  MoFPED released UGX.46,048,485,223 through MoDVA for capitalisation of UACC but MoDVA transferred UGX.42,511,285,223 leaving a balance of UGX.3,537,200,000. It was observed that UACC with the approval of the Board of Directors agreed to reallocate UGX.28,647,537,490 to fund new priorities other than those for which the funds were appropriated. A review of the ten (10) year Strategic Business and Investment Plan 2016 to 2027 revealed that out of the planned seven (7) targets/goals, one (1) had been fully achieved, three (3) were partially achieved while + + + + +159 + + + + + + + + + + + + three (3) were not achieved at all. Management created an additional position of “Principal Director” to oversee the Directorates of Flight operations and Maintenance which is not in the established structure and is contrary to The Civil Aviation Regulations 2014, section 13. UACC is a statutory corporation that is supposed to undertake procurements in accordance with PPDA Law and its Regulations. I observed that procurements are normally undertaken as and when the aircrafts breakdown and as such did not follow the formal procurement procedures. UACC signed a contract on 20th April, 2021 with National Enterprise Corporation (NEC) for construction of the UACC HQ offices for a sum of UGX.1.097Bn and the expected project completion date was 19th October, 2021. I observed that unsecured advances of UGX.1.04Bn (95%) of the contract sum had been paid to NEC by closure of the financial year 30th June 2021. Audit inspection carried out on 18th October, 2021 observed that construction works were behind schedule. UACC to-date does not have an operating Aircraft to do business since most of them had been grounded or not operational under different circumstances. The Corporation had negative retained earnings/revenue reserves of UGX.24.03Bn as at the end of the financial year. This may affect the entity’s ability to meet future contingencies or investments in growth. +15 State House. 2020/21Opinion Unqualified  There was a shortfall in NTR collections amounting to UGX.0.573.4bn representing 64%. I assessed 13 outputs with a total of 45 activities and actual expenditure of UGX.345.4Bn and observed that 9 outputs were fully quantified, 3 outputs were insufficiently quantified while 1 output was not quantified at all. I further assessed the nine (9) out puts that were fully quantified with a total of 27 activities worth UGX.242.4bn and observed that 6 outputs were fully implemented while 3 outputs were partially implemented. In compliance with Section 24 of the Public Finance Management Act, 2015 (Classified Expenditure), expenditure of UGX.546,349,392,500 that relates to classified expenditure is to be audited separately and a separate audit report issued. UGX.116m was budgeted for domestic arrears during the year under audit despite failure to disclose outstanding domestic arrears in the previous years. A review of the Ministerial policy statement for the financial year 2020/21 revealed that the entity did not prepare a comprehensive vehicle utilisation report for the period as required by Section 15(h)) of the Public Finance and Management Act, 2015, as amended. +16 Office of the PresidentOpinion Unqualified  The entity had prepared a draft strategic plan which was submitted to align the plan to NDP III upon which the certificate of compliance will be issued. Out of the budgeted revenue of UGX.525,000,000 for the year 2020/21; UGX.423,827,920 was collected representing performance of 80% of the target. Out of the total warrants for the financial year of UGX.202,499,917,566, + + + + +160 + + + + + + + + + + + + UGX.201,682,707,928 was spent by the entity resulting in an unspent balance of UGX.817,209,638 representing absorption level of 99.6%. I assessed the implementation of all the 19 out puts that were fully quantified with a total of 100 activities worth UGX.92.2 bn. and noted the following: Twelve (12) outputs with a total of seventy eight (78) activities worth UGX.62.1bn were fully implemented. Four (4) outputs with a total of fifteen (15) activities worth UGX.16.0bn were partially implemented. Three (3) outputs with a total of seven (7) activities worth UGX.14.7bn were not implemented at all. Out of the planned 27 strategic targets/goals, 23 targets had been fully achieved while 4 were not achieved at all. Out of the budgeted revenue of UGX.0.52bn for the year 2019/20; only UGX.0.20bn was collected representing performance of only 3.8% of the target. Out of the total receipts for the financial year of UGX.2.17bn, UGX.2.11bn was spent by the entity resulting in an unspent balance of UGX.5.633bn representing an absorption level of 97.4%. I assessed a sampled of 19 outputs with a total of 175 activities and actual expenditure of UGX.94Bn which were fully quantified by management. I observed that; 11 outputs with a total of 69 activities worth UGX.77.2Bn were fully implemented. 2 outputs with a total of 21 activities worth UGX.18.5Bn were partially implemented. I examined supplementary funding received by the Office for COVID 19 interventions and observed anomalies which included under absorption of the funds, failure to quantify activities implemented, inappropriate procurement methods and funds not accounted for. Specifically for management of quarantine centres, I observed that items were procured at varying prices and they were not taken on charge. Arrears totalling to UGX 30,549,780,185 remained unsettled at close of the year. Further, UGX.28,431,892,310 was provided for settlement of domestic arrears yet domestic arrears brought forward from the prior year were UGX.58,981,672,495. Shortcomings were observed in the Ministry’s fleet management which included incomplete recording of motor vehicles in the assets register, failure to use motor vehicle logbooks, lack of motor vehicle annual inspections, lack of adequate vehicles for allocation to RDCs, gaps in drivers’ competences and failure to implement board of survey recommendations for disposal of motor vehicles. +17 Ministry of Defence and Veteran Affairs. 2020/21OpinionUnqualified  Out of the budgeted revenue of UGX.1.735Bn for the year 2020/21; UGX.1.018Bn was collected representing performance of 59% of the target. Out of the total warrants for the financial year of UGX.5.316Tn, UGX.5.315Tn was spent by the entity resulting in an unspent balance of UGX.1.244Bn representing absorption level of 99.98%. All the 13 outputs with a total of 26 activities and expenditure of UGX.2.843Tn sampled for assessment were not quantified to enable assessment of performance. + + + + +161 + + + + + + + + + + + + + +- A budgetary allocation on Court awards and compensations of UGX.279.12M was received during the year against the outstanding claim of UGX.3.537BN resulting into a shortfall of 99.92%. + + + +- Domestic arrears over the past three years have shown a declining trend with arrears reducing by UGX.284.868Bn from 2019 to 2021. + + + +- I observed that trade creditors totalling to UGX.364.821Bn remained unsettled at close of the year with arrears totalling to UGX.194.297Bn relating to previous financial year(s). + + + +- I noted that UGX.19.711Bn paid to settle domestic arrears was diverted from the current budget. + +- I observed that Batuma Ivan Mbabazi was paid UGX.1.085Bn out of UGX.3.056Bn in respect of compensation for Kibanja land situated in Kihumuro village without proof of ownership. I noted the compensation value of crops worth UGX.1.885Bn paid did not provide details of crops planted and the land coverage. + + + +- I observed that a number of illegal activities were being carried out on UPDF 36 Sq Miles land in Kaweweta to include: Illegal acquisition and fencing of military land by veterans; Illegal leasehold registration; Land encroachment; Charcoal burning; Cattle grazing and construction of dams. + + + + + +- I noted that UGX.47BN out of the contract sum of UGX.104.77BN had been paid in relation to the construction of UPDF National Referral Hospital at Lower Mbuya. I observed during my inspections that the no single structure was complete, agreed time frame had elapsed and the site looked abandoned. + + + +- I noted during my inspection that Kaweweta Recruit Training School construction project site had been abandoned and observed the following: Abandoned water supply project; pending works on phase 2 and phase 3 projects; un finished works on road opening of the security road; pending works on tarmacking of 3kms internal road network; Abandoned dormitory blocks for female trainees and aqua-privy toilets; abandoned construction of 2 range grounds and lack of adequate accommodation. + + + +- I noted an urgent need to repair the white house building at URDCC which was found to have a leaking roof in the mess and accommodation rooms. + + + +- I observed that the UPDF Legal Training Centre which was started in 2014 funded by Netherlands Government had stalled and looked abandoned. + + + +- I observed that out of the required 5.6km concrete perimeter wall fence for land forces headquarter Bombo, only 525 meters had been covered leaving 4.6kms outstanding to complete the perimeter wall. + + + +- I noted that Land forces operation centre Bombo had been abandoned since September 2021 and the project had stalled at 75%. The pending works on the project included painting, electrical and water connections and finishing works on the toilets. + + + +- I inspected the General Military Hospital- Bombo (GMHB) and observed the following: a need for a centralised system of resource allocation at the hospital; Inadequate medical supplies; Underutilization of hospital equipment; Crowded hospital premises; Old hospital equipment and Parked staff bus. + +- I observed that the Marine Pier at Ntokolo Landing site Magamaga was + + + +162 + + + + + + + + + + + + affected with water levels on Lake Victoria dropping back to normal hence making it difficult for the marine boats to fully utilise the docking area due to shallow waters. I noted that only half of the docking area was utilised contrary to the original plan. I inspected Magamaga cantonment and observed the following issues: lack of sufficient storage space, land encroachments’, inadequate water supply, poor road network, insufficient lighting system at the store premises, accommodation challenges, need to expand Health centre II to Health centre III and inadequate toilets at the store premises. I observed inadequate Fuel supply for Air Force training as Air Force is not allocated fuel for operations. but the same fuel allocation for training is used for other operations and yet the trainers have specific performance contracts. I noted that while there are reserve tanks in Nakasongola and Jinja that were constructed in past regimes, these have never been utilised subjecting management to buying Jet fuel from dealers at the open market pump prices and exorbitant prices. I inspected Special Forces Command (SFC) and observed creation of 206 brigade SFC without sufficient funding. I noted lack of office furniture, storage space and CCTV cameras. + PUBLIC SECTORMANAGEMENT SECTOR +1. The New Vision printing and Publishing company Limited 2020/21OpinionUnqualified  Because the company’s market capitalisation of UGX 23,715 million was significantly lower than the carrying amount of the company’s net assets of UGX 65,039 million as at 30thJune 2021. In accordance with IAS 36 Impairment of Assets, this impairment indicator triggered impairment testing of the non-current assets of the company. The recoverable cost of UGX 57,866 estimated to be the fair value of the company. NVPPCL incurred costs relating to a one-off discretionary retirement package comprised of cash and in-kind items to recognise long service to the company by an existing employee. Management measured and recognised costs relating to the retirement package of UGX 1,956 million and reported these as part of staff costs included in administrative expenses in the statement of comprehensive income. The company had gross trade receivables of UGX 17,265 million (2020: UGX 27,190 million) and expected credit losses of UGX 3,202 million (2020: UGX1,428 million) to which management performed the impairment assessment of trade receivables. In June 2020, the board resolved to move all staff from permanent employment terms to fixed-term contracts. The phased movement of staff members had commenced by August 2020. However, as at 30th April 2021, there were still two staff maintained on the payroll with payment terms similar to those in their permanent employment contracts. I further noted that these had not signed off the fixed term basis employment contracts. Management indicated that it’s engaging the two concerned staff members for a resolution and contract sign off. I noted that the board approved changes to estimated useful lives of the different items under property, plant and equipment on 25th June 2020 as part of the approval of the budget; however, these changes were not implemented timely as required by IAS 8 Accounting Policies, Changes in Accounting Estimates. I reviewed the information system controls of the IT system and noted + + + + +163 + + + + + + + + + + + + the following;  Absence of a defined information security management system  Absence of a cybersecurity incident response team  Inadequate security awareness  Vulnerability assessments not performed  Absence of data classification  Inadequate ICT vendor management +2. Markets and Agricultural Trade Improvement Project (MATIP) II 2020/21OpinionUnqualified  There was a shortfall in releases from GOU sources of UGX.0.23Bn and donors of UGX.19.763Bn. Furthermore, the project failed to absorb UGX.0.271Bn. I reviewed 4 out-puts with a total of 16 activities worth UGX.57.7Bn representing 100% of the total expenditure and noted that two (2) outputs with six (6) activities worth UGX.38.6Bn were fully quantified. I further observed two (2) out-puts with ten (10) activities worth UGX.19.1Bn were insufficiently quantified. All the two (2) outputs that were fully quantified were partially implemented. I observed that there was delayed completion of works on some of the markets and value addition facilities. Two (2) markets were completed by June 2021 however they had not been commissioned and operationalized by September 2021 thus affecting service delivery. I observed that except for Entebbe market all the other markets lacked a revenue management information system to facilitate revenue management. This was also the case for the seven (7) MATIP 1 markets. I further observed that the allocation guidelines favor leaseholders who pay very little in terms of ground rent to the Municipalities. This affects revenue mobilization and impairs self-reliance and sustainability of these markets. The beneficiary Municipalities have failed to put in place a market maintenance fund which would facilitate routine maintenance of the completed structures. This was also the case for the MATIP 1 markets. In addition, all the markets redeveloped under MATIP 1 and 2 are not insured against risks such as; fire outbreaks, electrical failures and unforeseen disasters. +3. Ministry of Public Service 2020/21OpinionUnqualified  The Ministry’s five (5) year strategic plan was certified by NPA, confirming that it is aligned to the NDP III. The Ministry collected only 57.7% of its NTR target for the year and had a shortfall in government funding of UGX.9.7Bn, which is 32.4% of the budget. The Ministry failed to absorb UGX.1.1Bn, which is 5.5% of what was released. The Ministry had off-budget financing of UGX.0.529Bn, which was never declared to the PSST for re-voting. Out of the thirty-five (35) outputs assessed, eight (8) were fully quantified, while five (5) were insufficiently quantified to facilitate performance measurement. The balance of two (2) outputs were not included in the Ministerial Policy Statement submitted to Parliament. Out of the eight (8) outputs that were fully quantified, seven (7) outputs were partially implemented, while one (1) output was not implemented at all as a result of the disruptions caused by restrictions imposed due to + + + + +164 + + + + + + + + + + + + Covid-19. The Ministry delayed submitting all its quarterly performance reports to MoFPED, and similarly, I did not find evidence to confirm that monitoring plans and reports were prepared. I observed that a number of government entities had not been filling positions of persons who had been granted leave without pay, which resulted in manpower gaps in these entities affecting their efficiency in delivering services to the citizens. The Ministry failed to utilise up to UGX.6.5Bn of the total salary budget of UGX.17.9Bn provided by MoFPED over the past four (4) years. The Ministry had outstanding domestic arrears of UGX 0.86Bn by the end of the financial year. The Ministry had not put in place adequate guidance regarding the number of boards on which a civil servant is allowed to serve at any one time. This resulted in some civil servants serving on more than three (3) boards, which affects the time they allocate to their substantive jobs. I noted some challenges in the management of recruitments into the service, such as; irregular employment of staff by Accounting Officers and the absence of a policy for the recruitment and selection of temporary staff. I noted irregularities in the management of leave without pay for civil servants, which included; absence of a complete register of all civil servants who were away on leave without pay and irregular grant of leave without pay. I noted irregularities in overseas training for civil servants, such as the absence of a register of all civil servants who were away on training and some Officers who went abroad for training programmes offered by the different local universities in Uganda. +3. Local Government Finance Commission 2020/21OpinionUnqualified  I noted that the Commission did not have an approved strategic plan that was aligned to NDP III by the time of audit. The draft plan prepared by the entity had not been certified by NPA. The Commission collected only 0.03% of its NTR target for the year and had a shortfall in government funding of 0.04Bn which is 0.75% of the budget. The Commission absorbed all the funds that were released. Out of the five (5) out-puts assessed, one (1) output with 0.115 Bn was fully quantified, while four (4) outputs with 4.01Bn were insufficiently quantified. The one (1) output that was fully quantified was partially implemented. The Commission neither prepared annual budget monitoring plans nor submitted quarterly budget monitoring reports. The Commission also failed to submit all its quarterly budget performance reports in time. The Commission failed to coordinate the automation of revenue management systems. There are currently four (4) revenue management systems used by various Local Governments which are implemented in a disjointed and uncoordinated manner. This has resulted in duplication of activities associated with running these systems thus affecting service delivery. The Commission received UGX.182,000,000 as budget support to undertake physical decentralization and service delivery. However only UGX.31,241,000 was absorbed by the Commission which significantly + + + + +165 + + + + + + + + + + + + affected service delivery. I noted that by 30th June 2021 the Commission had accumulated domestic arrears of UGX.101,473,991. +4. City Wide Inclusive Sanitation (CWIS) 2020/21OpinionUnqualified  I observed that the program work plans and budgets were not sent to parliament for formal approval through the KCCA Ministerial Policy Statements The project budgeted to receive donor financing of USD 1.2M for the year under review; however, only USD 1M was received during the year. Also, the project had expected to receive USD 0.2M as GoU counterpart funds; but only USD 0.17 was received. The project under absorbed funds totaling USD 1,329,522, which is 62% of the funds that were available to the project for implementation of activities Out of the sixty-seven (67) activities assessed, forty-seven activities worth USD 609,563 were fully quantified, while twenty (20) activities worth USD 199,314 were insufficiently quantified. Out of the forty-seven (47) activities that were quantified, twenty (20) 43% activities worth USD 502,564 were fully implemented, seventeen (17) 36% activities worth USD 99,664 were partially implemented, while ten (10) 21% activities worth USD 7,335 were never implemented at all. The project accumulated arrears amounting to USD 583,742 during the year under review. The project's progress towards achieving project targets or outcomes was found unsatisfactory in some areas. The performance in some cases was below 50%, while in other areas, no activities had been implemented. This affects service delivery. The project irregularly recruited providers that KCCA or NEMA had not licensed. +5 Development Response to Displacement Impacts Project 2020/21OpinionUnqualified  The Project budgeted to receive UGX.233Bn out of which UGX.185Bn was received representing 79% of the budget leaving a balance of UGX.48.1Bn as unreleased. All the funds that were released were absorbed. All the four (4) outputs with a total of thirteen (13) activities worth UGX.185Bn were fully quantified to enable assessment of performance. Out of this two (2) out puts with six (6) activities worth UGX.9.86Bn were fully implemented while the balance of two (2) out puts with seven (&) activities worth UGX.175Bn were partially implemented. I noted that the project did not utilise grant funds totalling to UGX UGX.9.6Bn. The project had not achieved its thre e(3) year targets in four (4) areas with performance in some cases being as low as 0% in some areas. +6 National Planning Authority 2020/21Opinion Unqualified  The Authority prepared a new five (5) year strategic plan which was certified as aligned to NDP III. There was shortfall in revenue collection of up to 100% of the NTR target while government receipts were less than anticipated by UGX.1.65Bn. All the funds that were disbursed were fully absorbed. NPA received off-budget financing to a tune of UGX.15.27Bn, out of which UGX.11.4Bn was declared to Treasury and appropriated. The balance of UGX.3.87Bn was not declared to Treasury and therefore, not + + + + +166 + + + + + + + + + + + + appropriated to the entity by Parliament. These funds were received directly from development partners for undertaking activities not budgeted for. I noted that out of the 12 out-puts sampled for review, 6 (50%) were fully quantified, 5 (41%) were insufficiently quantified and 1 (9%) was not quantified at all making it impossible to measure performance. Out of the 6 out puts that were fully quantified, none was fully implemented, 4 (66%) were partially implemented while 2 (34%) were not implemented. All the quarterly budget performance reports were submitted late by the Authority. I noted cases of delays in approval of MDA and LG strategic plans. In addition to this seventy three (73) entities had not submitted their strategic plans for review and certification by the Authority. The Authority had not undertaken capacity building of planners at both local and national level which affected the capacity of the planners to implement, monitor and report on the performance of the budgets in their respective entities. I observed shortcomings in government’s readiness to implement the new programme approach to planning and budgeting which included; non-alignment of the accounting and oversight processes to the new programme planning framework, non-alignment to the statistical and data collection systems to the new programme planning framework and non- functional programme working groups among others. I also noted that the Authority had not realigned the development planning regulations from the sector approach to planning and budgeting to the new programme approach of planning and budgeting. +7 Public Service Commission 2020/21Opinion Unqualified  Although the Commission had come up with a strategic plan aligned to NDP III, this plan had not been approved and certified by NPA as required by the planning regulations. The Commission did collect NTR for the year despite having an NTR budget of UGX.2.7Bn. The Commission received 99% of its budget from Treasury and absorbed all the funds. Out of the thirteen out-puts assessed, two (2) outputs worth 0.88Bn were fully quantified, six (6) worth 6.72Bn were partially quantified while five (5) outputs worth 1.87Bn were not quantified at all. The two (2) out-puts that were quantified were all partially implemented. All the quarterly performance reports were submitted late by the Commission and there were no budget monitoring reports prepared by the Accounting Officer. The Commission does not participate in the recruitment of foreign service officers in Uganda’s missions and embassies abroad. The Commission had outstanding domestic arrears amounting to UGX.48.768,099. The Commission did not deduct PAYE from gratuity payments amounting to UGX.1Bn for its Commission members. +8 Office of The Prime Minister 2020/21Opinion Unqualified  I noted that OPM strategic plan had not been approved by NPA as aligned to NDP III. There was under-collection of NTR by UGX.0.732Bn, which is 30% of the NTR budget, while shortfalls in Central Government releases were UGX.19.26Bn, which is 13.8% of the approved budget for central + + + + +167 + + + + + + + + + + + + government releases. OPM had unspent balances of UGX.2.5Bn, which were returned to the consolidated fund. OPM received off-budget financing amounting to UGX.53.452Bn, which Parliament never appropriated. I noted that out of the thirty-two (32) outputs sampled for review, twenty-nine (29) (91%) were fully quantified, one (1) (3%) was partially quantified, and 2 (6%) were not quantified at all which made it impossible to measure performance. Out of the twenty-nine (29) outputs that were fully quantified, four (4) outputs (14%) were fully implemented, while twenty-five (25) outputs (86%) were partially implemented. OPM did not prepare and submit annual budget monitoring plans and reports while submission of all the quarterly performance reports were delayed. I observed service delivery challenges such as delayed completion of works, failure to fund micro-projects and non-functional District Disaster Management Committees. I noted that OPM received UGX.0.25Bn as part of the COVID-19 relief interventions budget. These funds were all absorbed and used for the intended purpose. I noted delayed resettlement of encroachers in the Apaa game reserve land. OPM did not have a complete database of all entitled beneficiaries and those paid since 2008 under the Akasiimo gratuity scheme. +9 Northern Uganda Social Action Fund (NUSAF 3) 2020/21Opinion Unqualified  This was the last year of implementation of the NUSAF 3 Project. An independent impact evaluation undertaken by Makerere University Business School highlighted achievements by the project, which included; increased income for beneficiary households, improved resilience and vulnerability to shocks, improved household welfare and progress out of poverty, improved savings and investments, increased production and income earnings and increased household food security and consumption for a number of beneficiaries. uring FY2020/2021, the project budgeted to receive UGX.38.7Bn, which was all received. Similarly, the project absorbed all this money representing 100% performance. All the three (3) outputs with nine (9) activities worth UGX.38.8Bn sampled for verification were fully quantified. Out of these, two (2) outputs with five (5) activities worth UGX.26.72Bn were fully implemented while one (1) output with four (4) activities worth UGX.12.08Bn was partially implemented. The project advanced funds for the construction of coffee shops in Arua, Gulu, Lira, Mbale and Tororo. At the time of audit, works were not complete in Lira, Arua and Gulu. The coffee shop in Mbale was not fully operational. During my inspection, I noted that the beneficiary communities and districts were having sustainability challenges in maintaining project investments three (3) months after the closure of the project. These included poor maintenance of roads, low savings by farmers, among others. Ownership of two (2) project vehicles had not reverted to government three (3) months after the closure of the project. + + + + +168 + + + + + + + + + + + +10 Project for The Restoration of Livelihoods in the Northern Region (PRELNOR) 2020/21Opinion Unqualified  The project had a shortfall of UGX.26Bn, which is 52% and UGX.3.27Bn, which is 67% of the budget in external and government funding, respectively. The project absorbed UGX.25.65Bn, which is 88% of all the funds that were released. All the one hundred seven (107) outputs assessed were fully quantified. Out of the one hundred seven (107), sixty-eight (68) were fully implemented, ten (10) were partially implemented, and twenty-nine (29) were never implemented. I assessed the progress of project activities and noted that Batch A community access roads were incomplete. Similarly, the procurement process for Batch B community roads and the bulk and satellite markets had delayed, affecting service delivery. I noted that the project faces sustainability challenges such as failure to maintain completed roads by the districts, which threatened to erode the benefits realised by the project. +11 Ministry of Local Government 2020/21Opinion Unqualified  The Ministry’s strategic plan (2020/2021 to 2025/2026) had not been certified by NPA to confirm that it was well aligned to NDP III at the time of the audit. There was a shortfall in NTR collection of up to 89.9% of the target, while government receipts were less than anticipated by UGX.3.64Bn. The Ministry had unspent balances of UGX.3.94Bn by year-end. I noted that out of the thirty-nine (39) outputs sampled for review, fifteen (15) (38%) were fully quantified, twenty (20) (51%) were insufficiently quantified, and four (4) (10%) were not quantified at all. Out of the fifteen (15) outputs that were fully quantified, one (1) output was fully implemented, while fourteen (14) outputs were partially implemented. All the quarterly performance reports were submitted after the deadline for submission. 2,127 motorcycles and 77,831 bicycles worth UGX.18.9Bn and UGX.24.6Bn respectively had not yet been delivered by the time of audit in November 2021, although they were due for delivery in September 2021. The Ministry delayed disbursing funds for budget support to Local Governments. UGX.22.1Bn to various Local Governments was disbursed in the last two weeks of June 2021. The Ministry delayed disbursing start-up costs of UGX.6.79Bn to 125 Local Governments. Most of the funds were transferred the last two weeks of June and, in some cases, as late as 29th June 2021. The Ministry received UGX.2.86Bn for settlement of domestic arrears as part of the COVID 19 interventions, which was all absorbed and used to settle domestic arrears. The Ministry had outstanding domestic arrears of UGX.33Bn as at June 2021. +12 Kampala Capital City Authority (KCCA). 2020/21Opinion Unqualified  I noted that the Authority’s strategic plan had not been certified by NPA by the time of audit, contrary to the Planning Regulations. The Authority received 99% of its budget from Government, and NTR performed above expectation by 21%. The Authority had unspent balances of UGX.7.64Bn, which was returned to the consolidated fund. I noted that the Authority had unremitted off-budget financing of + + + + +169 + + + + + + + + + + + + UGX.18.97Bn, which Parliament never appropriated. I noted that out of the thirty-nine (39) outputs sampled for review, two (2) outputs (5%) were fully quantified, two (2) outputs (5%) were partially quantified, and thirty-five (35) outputs (90%) were not quantified at all which made it impossible to measure performance. The two (2) outputs that were fully quantified were all fully implemented. All performance reports were submitted after the deadline. I noted that the Authority had not developed regulations to guide the collection of outdoor advertising fees, which hindered the collection of NTR. I further noted that the Authority did not undertake regular updates of the valuation rolls. The Authority has an unserviceable long-term liability of UGX.42,570,448,999 in addition to accumulated domestic arrears of UGX.62,477,592,377 as at 30th June 2021. The Authority did not remit statutory deductions to URA and NSSF amounting to UGX.1.86Bn. The Authority incurred avoidable expenditure of UGX.7.8Bn as interest due to delayed site handover for civil works constructions. noted that the Authority had not adopted the Computerized Government Financial Management Information Systems (GFMIS) for management of its inventories as required by the Treasury Instructions. +13 Kampala Institutional and Infrastructure Development Project (KIIDP). 2020/21Opinion Unqualified  The Project budgeted to receive UGX.8.7Bn from GOU out of which UGX.1.9Bn was released representing 21.8% of the budget leaving a balance of UGX.6.8Bn as unreleased. Similarly, the project budgeted to receive UGX.139.7Bn from World Bank however only UGX.125.2Bn (90%) was availed. UGX.49.9Bn remained un-utilized at the end of the financial year. Out of the four (4) outputs reviewed, only one (1) output (25%) was fully quantified. Three (3) outputs were not quantified at all. I observed that management did not prepare performance reports that show the status of implementation of planned outputs. I noted that there was slow progress of works, delayed relocation of utilities and delayed land aquistion which resulted in delayed service delivery. I also noted that UGX.1,323,171,260 that was garnished had not yet been refunded by Government through KCCA. I noted that ownership of one hundred forty-seven (147) pieces of land on which project roads and drainages had been constructed had not yet been transferred to KCCA. + PUBLIC ADMINISTRATION SECTOR  +1. Uganda Embassy in Abu Dhabi. 2019/20Opinion Unqualified  Out of the planned 10 strategic targets/goals, 4 targets were fully achieved, 5 targets were partially achieved and 1 was not achieved at all. There was a shortfall in NTR collections amounting to UGX.1.544Bn representing 1.66% performance. I sampled 4 outputs with a total of 8 activities and actual expenditure of UGX.5.376Bn and observed that 3 outputs with a total of 7 activities and expenditure worth UGX.5.31Bn were fully quantified while 1 output with 1 activity and expenditure worth UGX 0.06Bn was not quantified. I further + + + + +170 + + + + + + + + + + + + observed that none of the outputs were fully implemented. The Mission did not prepare and submit the annual monitoring plans to MoFPED and NPA contrary to the requirement of paragraph 58 of the Budget Execution Circular for 2019/2020. I also noted that the Mission submitted performance reports for Q1, Q2, Q3 and Q4 after the elapse of the deadline given for submission of the reports. The Mission had total collections including balance brought forward from previous year of UGX.58,817,501 out of which UGX.37,898,755 had been transferred to the Treasury for onward transfer to the Consolidated Fund leaving a balance UGX. 20,918,746 not remitted. The Mission paid 73,400.00 AED (equivalent to UGX.73,326,600) in respect of education allowances direct to its officials instead of their respective educational institutions or schools contrary to Section (E - e) Paragraphs 19 and 20 of the Public Service Standing Orders 2010. The Mission paid medical refunds to its staff amounting to 8,540.9 AED (equivalent to UGX.8,531,460) contrary to Section M (m-a) (14) of the Public Service Standing Orders, 2010. The Mission has an approved staff structure of 4 staff positions out of which 3 (75%) were filled leaving 1 (25%) vacant. +2. Uganda Embassy in Abuja, 2019/20Opinion Qualified  Out of the planned 9 strategic targets/goals, no target was fully achieved, 4 targets were partially achieved and 5 targets were not achieved at all. There was a shortfall in NTR collections amounting to UGX.1.926Bn representing 8% performance. Out of the total receipts for the financial year of UGX.2.821Bn, UGX.2.901Bn was spent by the entity resulting in an excess expenditure of UGX.0.081Bn representing an absorption level of 102.8%. I sampled 3 outputs with a total of 7 activities and actual expenditure of UGX.2.901Bn and observed that all the outputs were fully quantified. I further observed that out of 7 activities, 4 activities were partially implemented while 3 activities remained unimplemented. The entity did not prepare and submit the annual monitoring plans to MoFPED and NPA contrary to the requirement of paragraph 58 of the Budget Execution Circular for 2019/2020. I also noted that the Mission submitted performance reports for Q1, Q2, Q3 and Q4 after the elapse of the deadline given for submission of the reports. The Mission paid NGN.4,524,060 (equivalent to UGX.43,204,725) in respect of education allowances direct to its officials instead of their respective educational institutions or schools contrary to Section (E - e) Paragraphs 19 and 20 of the Public Service Standing Orders 2010. The Mission paid medical refunds to its staff amounting to NGN.2,418,559 (equivalent to UGX.23,097,233) contrary to Section M (m-a) (14) of the Public Service Standing Orders, 2010. The Mission has an approved staff structure of 5 staff positions out of which 4 (80%) were filled leaving 1 (20%) vacant. +3. Uganda Embassy in Algeria 2019/20Opinion Unqualified  All the planned 7 strategic targets/goals in the Mission charter were partially achieved. There was a shortfall in NTR collections amounting to UGX.2.078Bn representing 0.5% performance. Out of the total receipts for the financial year of UGX.4.16Bn, UGX.3.81Bn + + + + +171 + + + + + + + + + + + + was spent by the entity resulting in an unspent balance of UGX.0.35Bn representing an absorption level of 91.5%. I sampled 5 outputs with a total of 16 activities and actual expenditure of UGX.3.89Bn and observed that 1 output with a total of 6 activities and expenditure worth UGX.1.14Bn was fully quantified, 2 outputs with a total of 8 activities and expenditure worth UGX.2.47Bn were insufficiently quantified while 2 outputs with 2 activities and expenditure worth UGX.0.28Bn were not quantified at all. Out of 6 activities planned, only 2 were fully implemented (33%) while 1 activity was partially implemented (17%) and 3 activities were actually not implemented (50%). Funds to the tune of £ 890 (UGX.3,739,406) were irregularly diverted from the activities on which they were budgeted and spent on other activities without seeking and obtaining the necessary approvals. The entity did not prepare and submit annual monitoring plans to MoFPED and NPA and also did not prepare and submit quarterly monitoring reports to the Office of the Prime Minister and MoFPED contrary to Paragraph 58 of the Budget Execution Circular for 2019/20. A review of the cumulative performance reports revealed the subsequent quarterly performance reports did not include activities implemented in the previous quarter(s) and therefore, the cumulative activities reported in the fourth quarter performance report does not include all activities implemented in the first, second and third quarters. The Mission paid Euros.45,314 (equivalent to UGX.190,390,396) in respect of education allowances direct to its officials instead of their respective educational institutions or schools contrary to Section (E - e) Paragraphs 19 and 20 of the Public Service Standing Orders 2010. The Mission had a fixed assets register detailing all of the Mission’s assets but lacked some of the information such as date of purchase, estimated useful life, maintenance costs and the expected date of disposal making it incomplete. I further observed that a number of the entity’s assets were old and due for boarding off but this had not been done. +4. Uganda Embassy in Ankara 2019/20Opinion Unqualified  Out of the planned 10 strategic targets/goals in the Mission charter, seven (7) targets had been fully achieved, two (2) were partially achieved, while one (1) was not achieved. There was a shortfall in NTR collections amounting to UGX.1.456Bn representing 0.93% performance. I sampled 5 outputs with a total of 9 activities and actual expenditure of UGX.4.792Bn and observed that 3 outputs with a total of 7 activities and expenditure worth UGX.4.702Bn were fully quantified while 2 outputs with a total of 2 activities and expenditure worth UGX.0.9Bn were insufficiently quantified. I further observed that 3 outputs with 7 activities worth UGX.4.702Bn were partially implemented. The Mission did not prepare and submit annual monitoring plans to MoFPED and NPA and also did not prepare and submit quarterly monitoring reports to the Office of the Prime Minister and MoFPED contrary to Paragraph 58 of the Budget Execution Circular for 2019/20. The Mission submitted performance reports for Q1, Q2, Q3 and Q4 after the deadline given for submission of the reports. The Embassy had a capital expenditure budget of UGX.90,000,000 to cater for office equipment, ICT equipment and furniture and fittings but + + + + +172 + + + + + + + + + + + + management of the Embassy procured office equipment, ICT equipment and furniture and fittings worth UGX.129,698,987 resulting into a diversion of UGX.39,698,987. Furthermore, the additions in the Statement of Stores and Other Assets (physical assets) as at the end of the financial year 2019/2020 was UGX.129,698,987 but the payment file revealed that only office equipment, ICT equipment and furniture and fittings worth UGX.85,138,153 were procured implying that this statement is overstated by UGX.44,560,834. The Embassy made upfront payments for rent of USD.74,850 (equivalent to UGX.279,215,200) beyond the financial year but did not disclose the prepayments in the Statement of Financial Position for the year. The Mission paid USD.35,000 (equivalent to UGX.130,725,000) in respect of education allowances direct to its officials instead of their respective educational institutions or schools contrary to Section (E - e) Paragraphs 19 and 20 of the Public Service Standing Orders 2010. The Embassy spent USD.53,627 (equivalent to UGX.200,296,400) on refunds for medical expenses to its officers contrary to Section M (m-a) (14) of the Public Service Standing Orders, 2010. The Mission has an approved staff structure of 8 staff positions out of which, 5 (63%) were filled leaving 3 (37%) vacant. +5 Uganda Embassy in China, Beijing 2019/20Opinion Qualified  Out of the planned 8 strategic targets/goals in the Mission charter, three (3) targets had been fully achieved, three (3) were partially achieved, while two (2) was not achieved. There was a shortfall in NTR collections amounting to UGX.4.17Bn representing 0.05% performance. Out of the total receipts for the financial year of UGX.5.031Bn, UGX.4.276Bn was spent by the entity resulting in an unspent balance of UGX.0.755Bn representing an absorption level of 84.99%. The Embassy received off-budget financing from the Contingency Fund as a relief fund for students locked down in Wuhan to a tune of UGX.227,318,724 which was not appropriated by Parliament. I sampled 5 outputs with a total of 20 activities and actual expenditure of UGX.4.28Bn and observed that 1 output with a total of 20 activities and expenditure worth UGX.4.23Bn was fully quantified while 2 outputs with a total of 2 activities and expenditure worth UGX.0.05Bn were not quantified. I further noted that for the quantified outputs, 3 outputs with 20 activities worth UGX.4.23Bn were partially implemented, 9 (45%) activities were fully implemented, 2 (10%) activities partially implemented and 9 (45%) activities remained unimplemented Funds to the tune of UGX.20,000,000 were irregularly diverted from purchase of specialized machinery and equipment for which they were budgeted to purchase of curtains without seeking and obtaining the necessary approvals. The Mission did not prepare and submit annual monitoring plans to MoFPED and NPA and also did not prepare and submit quarterly monitoring reports to the Office of the Prime Minister and MoFPED contrary to Paragraph 58 of the Budget Execution Circular for 2019/20. The Mission submitted performance reports for Q1, Q2, Q3 and Q4 after the deadline given for submission of the reports. I noted 20 cases of activities that were not reported that were disclosed in quarter 2 and quarter 3 reports but not disclosed the cumulative 4th + + + + +173 + + + + + + + + + + + + quarter performance report of the Mission. The Mission had outstanding commitments to a tune of UGX.7,720,207 from the previous year but no budget was provided for settlement of domestic arrears in the current budget but the arrears were paid. For procurements, I observed that the Mission had one member for an Evaluation Committee and there was lack involvement of the Contracts Committee in the procurement processes. I observed that the fixed assets register maintained by the entity was not updated and not maintained in the format prescribed in the Treasury Instructions. The Embassy spent RMB.154,898 (equivalent to UGX.81,538,197) on refunds for medical expenses to its officers contrary to the requirements of Section M (m-a) (14) of the Public Service Standing Orders, 2010. Expenditure amounting to RMB.118,327 (equivalent to UGX.62,287,491) was incurred on staff telephone bills out of which RMB.78,885 (equivalent to UGX.41,524,994) representing 2/3 of the amount should have been recovered from staff but the recovery was not effected contrary to Section H (h-e) (12) of the Public service Standing Orders, 2010. +6. Uganda Embassy in Berlin 2019/20Opinion Qualified  The cashbook closing balance revealed an amount of Eur.8,442.77 (equivalent to UGX.35,283,771) while the bank statement closing balance revealed Eur.53,180.48 (222,250,267) resulting into un-reconciled difference of Eur.44,737.71 (equivalent to UGX.186,966,496). Funds to the tune of EUR.22,056.39 (equivalent to UGX.92,053,888) were irregularly diverted from the activities on which they were budgeted and spent on other activities without seeking and obtaining the necessary approvals. Out of the planned 21 strategic targets/goals in the Mission charter, 4 targets had been fully achieved, 11 were partially achieved, while 6 were not achieved. There was a shortfall in NTR collections amounting to UGX.2.60Bn representing 1% performance. I sampled 3 outputs with a total of 16 activities and actual expenditure of UGX.5.72Bn and observed that 2 outputs with 8 activities and expenditure worth UGX.5.38Bn were fully quantified while 1 output with 8 activities and expenditure worth UGX.0.34Bn was partially quantified at 50% quantification. Out of 8 activities, 3 (37.5%) activities were fully implemented, 3 (37.5%) activities were partially implemented and 2 (25%) activities were not implemented at all. The entity submitted performance reports for Q1, Q2, Q3 and Q4 but there was no evidence for submission before elapse of the deadline. The Embassy’s assets were old and due for boarding off but action had not been taken. The Embassy paid EUR.11,252.55 (equivalent to UGX.47,026,319) in respect of education allowances direct to its officials instead of their respective education institutions or schools contrary to Section (E - e) Paragraphs 19 and 20 of the Public Service Standing Orders, 2010. The Embassy spent EUR.74,105.28 (equivalent to UGX.309,698,564) on refunds for medical expenses to its officers contrary to the requirements of Section M (m-a) (14) of the Public Service Standing Orders, 2010. The Embassy paid allowances to staff in form of per diems totalling to + + + + +174 + + + + + + + + + + + + EUR.37,847.45 (equivalent to UGX.158,170,928) during the period when Germany was under lock down (March to June, 2020). I could not establish the genuineness of the expenditure. The Embassy has an approved staff structure of 8 positions out of which 5 (62.5%) were filled leaving 3 (37.5%) vacant. +7. Uganda Embassy in Brussels 2019/20Opinion Unqualified  Out of the planned 10 strategic targets/goals in the Mission charter, two (2) targets had been fully achieved while eight (8) were partially achieved. There was a shortfall in NTR collections amounting to UGX.1.445Bn representing 7.9% performance. I sampled 4 outputs with a total of 11 activities and actual expenditure of UGX.10.359Bn and observed that all the 4 outputs with a total of 11 activities and expenditure worth UGX.10.359Bn were fully quantified. I further observed that 1 output with 1 activity worth UGX.4.993Bn was fully implemented while 3 outputs with 10 activities worth UGX.5.336Bn were partially implemented. Funds to the tune of USD.1,949.02 (equivalent to UGX.7,990,982) were irregularly diverted from the activities on which they were budgeted and spent on other activities without seeking and obtaining the necessary approvals. The Mission did not prepare and submit annual monitoring plans to MoFPED and NPA and also did not prepare and submit quarterly monitoring reports to the Office of the Prime Minister and MoFPED contrary to Paragraph 58 of the Budget Execution Circular for 2019/20. The entity submitted performance reports for Q1, Q2, Q3 and Q4 but there was no evidence for submission before elapse of the deadline. I noted cases of material inaccuracies and inconsistencies in the annual cumulative performance reports. The Embassy paid Euro.21,086.69 (equivalent to UGX.88,711,704) in respect of education allowances direct to its officials instead of their respective education institutions or schools contrary to Section (E - e) Paragraphs 19 and 20 of the Public Service Standing Orders, 2010. The Embassy spent Embassy spent Euro.16,297.47 (equivalent to UGX.68,563,456) on refunds for medical expenses to its officers contrary to the requirements of Section M (m-a) (14) of the Public Service Standing Orders, 2010. Euro.15,364.80 (equivalent to UGX.64,639,713) was incurred on the payments for telephone bills out of which Euro.10,243.20 (UGX.43,093,142), equivalent to (2/3) should have been recovered from the respective staff during the period but the recovery was not effected contrary to Section H (h-e) (12) of the Public service Standing Orders, 2010. The Embassy has an approved staff structure of 8 positions out of which 6 (75%) were filled leaving 2 (25%) vacant. +8. Uganda Embassy in Bujumbura 2019/20Opinion Unqualified  Out of the planned 9 strategic targets/goals in the Mission charter, three (3) targets had been fully achieved, three (3) were partially achieved while three (3) were not achieved. There was a shortfall in NTR collections amounting to UGX.3.087Bn representing 1.68% performance. + + + + +175 + + + + + + + + + + + +  I sampled 6 outputs with a total of 23 activities and actual expenditure of UGX.4.140Bn and observed that 4 outputs with a total of 21 activities and expenditure worth UGX.3.440Bn were fully quantified while 2 outputs with a total of 2 activities and expenditure worth UGX.0.7Bn were insufficiently quantified. I further observed that all 4 outputs with 21 activities were partially implemented. The Mission did not prepare and submit annual monitoring plans to MoFPED and NPA and also did not prepare and submit quarterly monitoring reports to the Office of the Prime Minister and MoFPED contrary to Paragraph 58 of the Budget Execution Circular for 2019/20. The entity submitted performance reports for Q1, Q2, Q3 and Q4 but there was no evidence for submission before elapse of the deadline. The Mission had total collections including balance brought forward from previous year of UGX.59,804,444 out of which UGX.17,626,729 had been transferred to the Treasury for onward transfer to the Consolidated Fund leaving a balance UGX.42,177,715 not remitted The Embassy paid USD.16,000 (equivalent to UGX.59,685,280) in respect of education allowances direct to its officials instead of their respective education institutions or schools contrary to Section (E - e) Paragraphs 19 and 20 of the Public Service Standing Orders, 2010. BIF.452,224,651 (equivalent to UGX.863,334,000) was withdrawn from the Mission’s expenditure account as cash imprest but was not adequately accounted for. The Embassy maintains an asset register which is not in the format prescribed in the Treasury Instructions and has a number of assets that are unserviceable and need to be disposed of. +9. Uganda Embassy in Cairo, 2019/20Opinion Unqualified  All the seven (7) targets/goals of the Mission Charter were partially achieved. There was a shortfall in NTR collections amounting to UGX.1.999Bn representing 4.45% performance. Out of the total receipts for the financial year of UGX.5.564Bn, UGX.4.952Bn was spent by the entity resulting in an unspent balance of UGX.0.612Bn representing an absorption level of 89%. 4 outputs with 14 activities and expenditure worth UGX.3.176Bn were not quantified to enable assessment of performance. The Mission did not prepare and submit annual monitoring plans to MoFPED and NPA and also did not prepare and submit quarterly monitoring reports to the Office of the Prime Minister and MoFPED contrary to Paragraph 58 of the Budget Execution Circular for 2019/20. The entity submitted performance reports for Q1, Q2, Q3 and Q4 but there was no evidence for submission before elapse of the deadline. The Mission had total collections including balance brought forward from previous year of UGX.238,031,600 out of which UGX.183,216,635 had been transferred to the Treasury for onward transfer to the Consolidated Fund leaving a balance UGX.54,814,965 not remitted. UGX.90,391,294 was disclosed as unspent balances for the period 2018/19 but note 17, cash and cash equivalents indicates that the prior year closing balance was UGX.75,022,891. The variance amounting to UGX.15,368,403 was not explained. EGP.1,015,780.00 (equivalent to UGX.229,058,390) was drawn as imprest + + + + +176 + + + + + + + + + + + + and spent on activities such as advances, transport and per diems which are not small incidental expenditures contrary to Instruction 17.22 of the Treasury Instructions 2017. The Embassy paid USD.27,419.00 (equivalent to UGX.101,998,680) in respect of education allowances direct to its officials instead of their respective education institutions or schools contrary to Section (E - e) Paragraphs 19 and 20 of the Public Service Standing Orders, 2010. The Embassy spent Egyptian pounds.255,613 (equivalent to UGX.57,640,732) on refunds for medical expenses to its officers contrary to the requirements of Section M (m-a) (14) of the Public Service Standing Orders, 2010. +10 Uganda High Commission in Canberra. 2019/20OpinionQualified  The High Commission made upfront payments for rent of AUD.43,096.67 (equivalent to UGX.109,469,851) beyond the financial year but did not disclose the same as prepayments in the Statement of Financial Position for the year. The High Commission did not provide strategic performance reports and therefore, I could not undertake an assessment of the achievements of the Mission charter targets/goals. There was a shortfall in NTR collections amounting to UGX.1.00Bn representing 0.05% performance. I sampled 3 outputs with a total of 9 activities and actual expenditure of UGX.4.84Bn and observed that the activities were not quantified. I was therefore unable to undertake assessment of the performance of the High Commission. The Mission did not prepare and submit annual monitoring plans to MoFPED and NPA and also did not prepare and submit quarterly monitoring reports to the Office of the Prime Minister and MoFPED contrary to Paragraph 58 of the Budget Execution Circular for 2019/20. The entity submitted performance reports for Q1, Q2 and Q3 after the deadline given for submission. I noted cases of material inaccuracies and inconsistencies in the level of performance reported. Assets to the tune of AUD.25,060 (equivalent to UGX.63,654,906) were procured during the year which were not disclosed in the summary statement of stores and other assets (physical assets) at the end of the year. The High Commission had total collections including balance brought forward from previous year of UGX.59,002,072. At the closure of the period, no funds had been transferred to the Treasury for onward transfer to the Consolidated Fund thus implying UGX.59,002,072 was not remitted The Embassy paid AUD.77,726 (equivalent to UGX.197,430,593) in respect of education allowances direct to its officials instead of their respective education institutions or schools contrary to Section (E - e) Paragraphs 19 and 20 of the Public Service Standing Orders, 2010. The Embassy spent AUD.77,726 (equivalent to UGX.197,430,593) on refunds for medical expenses to its officers contrary to the requirements of Section M (m-a) (14) of the Public Service Standing Orders, 2010. AUD.28,722 (equivalent to UGX.72,956,752) out of which AUD.19,148 (equivalent to UGX.48,637,835) representing 2/3 of the amount should have been recovered from the respective staff was incurred on the payments for telephone bills during the period. The recovery was not + + + + +177 + + + + + + + + + + + + effected. AUD.44,725.21 (equivalent to UGX.113,605973) was withdrawn from the High Commission’s local expenditure account as cash imprest but was not adequately accounted for. Out of an approved staff structure of 7 staff positions for the Mission, six (86%) were filled leaving one (14%) vacant. +11. Uganda High Commission in Dar es Salaam. 2019/20OpinionUnqualified  Out of the planned 30 strategic targets/goals in the Mission charter, eight(8) outputs/targets had been fully achieved, twelve (12) were partially achieved, while ten (10) were not achieved. There was a shortfall in NTR collections amounting to UGX.3.12Bn representing 0.01% performance. I sampled 5 outputs with a total of 18 activities and actual expenditure of UGX.5.277Bn and observed that 1 output with 1 activity and expenditure worth UGX.0.173 was fully quantified, 1 output with 4 activities and expenditure worth UGX.0.674Bn was partially quantified at 50% quantification while 3 outputs with 13 activities and expenditure worth UGX.4.43Bn were not quantified. I further observed that 1 output with 1 activity and expenditure worth UGX.0.173Bn was partially implemented. The entity submitted performance reports for Q1, Q2, Q3 and Q4 but there was no evidence for submission before elapse of the deadline. Prepayments amounting to TSHS.1,130,500 (equivalent to UGX.1,818,975) were made to various suppliers for services but were not disclosed in the financial statements thereby understating the assets in the Statement of Financial Position and overstating expenditure in the Statement of Financial Performance. The Embassy owns land in Dodoma on which the proposed Chancery building and official residence are to be constructed but the value of this land was not disclosed in the financial statements contrary to GOU accounting policy ‘disclosure of land under non-produced assets. The Embassy paid UGX.74,506,600 in respect of education allowances direct to its officials instead of their respective education institutions or schools contrary to Section (E - e) Paragraphs 19 and 20 of the Public Service Standing Orders, 2010. The Embassy spent UGX.61,871,014 on refunds for medical expenses to its officers contrary to the requirements of Section M (m-a) (14) of the Public Service Standing Orders, 2010. UGX.15,954,192 out of which UGX.10,636,129 representing 2/3 of the amount should have been recovered from the respective staff was incurred on the payments for telephone bills during the period. The recovery was not effected. Out of an approved staff structure of 7 staff positions for the Mission, 5 (71%) were filled leaving 2 (29%) vacant. +12. Uganda High Commission in Doha. 2019/20OpinionQualified  Prepayments amounting to QR.424,000 (equivalent to UGX.431,046,880) were made to various suppliers for services but were not disclosed in the financial statements thereby understating the assets in the Statement of Financial Position and overstating expenditure in the Statement of Financial Performance. There was a shortfall in NTR collections amounting to UGX.1.547Bn representing 1.45% performance. Out of the total receipts for the financial year of UGX.3.293Bn, + + + + +178 + + + + + + + + + + + + UGX.2.64Bn was spent by the entity resulting in an unspent balance of UGX.0.653Bn representing an absorption level of 80.2%. I sampled 5 outputs with a total of 7 activities and actual expenditure of UGX.2.64Bn and observed that 2 outputs of the 5 outputs with a total of 2 activities and expenditure worth UGX.0.06Bn were not quantified. I further observed that 1 output out of the 3 outputs with 2 activities worth UGX.2.02Bn was fully implemented 2 outputs with 3 activities worth UGX.0.56Bn were partially implemented. The Mission did not prepare and submit annual monitoring plans to MoFPED and NPA and also did not prepare and submit quarterly monitoring reports to the Office of the Prime Minister and MoFPED contrary to Paragraph 58 of the Budget Execution Circular for 2019/20. The Embassy submitted performance reports for Q1, Q2, Q3 and Q4 after the deadline given for submission of the reports. The Embassy spent QR.11,481 (equivalent to UGX.11,671,814) on refunds for medical expenses to its officers contrary to the requirements of Section M (m-a) (14) of the Public Service Standing Orders, 2010. QR.43,652 (equivalent to UGX.44,377,496) out of which (2/3) amounting to QR.29,101 (equivalent to UGX.29,584,659) should have been recovered from the respective staff was incurred on the payments for telephone bills during the period. The recovery was not effected. I noted that all the three (3) sampled procurements were undertaken using direct procurement method but no justification was given and no contract manager was appointed to oversee these procurements. Out of an approved staff structure of 7 staff positions for the Mission, 9 (60%) were filled leaving 6 (40%) vacant. +13 Uganda High Commission in Geneva. 2019/20OpinionUnqualified  There was a shortfall in NTR collections amounting to UGX.3.045Bn representing 3% performance. I sampled 3 outputs with a total of 7 activities and actual expenditure of UGX.7.66Bn and observed that all the 3 outputs were fully quantified and were partially implemented. The Mission did not prepare and submit annual monitoring plans to MoFPED and NPA and also did not prepare and submit quarterly monitoring reports to the Office of the Prime Minister and MoFPED contrary to Paragraph 58 of the Budget Execution Circular for 2019/20. The Embassy submitted performance reports for Q1, Q2, Q3 and Q4 after the deadline given for submission of the reports. The Mission had total collections including balance brought forward from previous year of UGX.345,130,819. At the closure of the period, UGX.146,139,671 had been transferred to the Treasury for onward transfer to the Consolidated Fund leaving a balance UGX.198,991,148 not remitted. UGX.27,296,608 was spent on procurements outside the approved procurement plan for the financial year 2019/2020 while procurements worth UGX.294,979,327 were acquired using the wrong procurement methods. The fixed assets register maintained by the entity was not updated as it lacks details of exact month of purchase (only the year was mentioned), maintenance cost and estimated useful life of the asset. The Embassy paid UGX.39,320,000 in respect of education allowances + + + + +179 + + + + + + + + + + + + direct to its officials instead of their respective education institutions or schools contrary to Section (E - e) Paragraphs 19 and 20 of the Public Service Standing Orders, 2010. CHF.12,623 (equivalent to UGX.49,602,836) out of which CHF.8,415 (equivalent to UGX.33,068,557) equivalent to 2/3 should have been recovered from the respective staff was incurred on the payments for telephone bills during the period. The recovery was not effected. Out of an approved staff structure of 7 staff positions for the Mission, six (86%) were filled leaving one (14%) vacant. +14 Uganda Consulate in Guangzhou, China 2019/20OpinionUnqualified  Out of the planned 8 strategic targets/goals in the Mission charter, six (6) outputs/targets had been fully achieved while two (2) were partially achieved. There was a shortfall in NTR collections amounting to UGX.2.037Bn representing 2.54% performance. UGX.4.745Bn was budgeted out of which UGX.4.545Bn was warranted, resulting in a shortfall of UGX.0.2Bn resulting in 95.8% funding of the budget. Of the received amount of UGX.4.545Bn, UGX.3.945Bn was spent resulting in an unspent balance of UGX.0.6Bn representing an absorption level of 86.8%. I sampled 4 outputs with a total of 6 activities and actual expenditure of UGX.3.94Bn and observed that 3 outputs with a total of 4 activities and expenditure worth UGX.3.717Bn were fully quantified while 1 output with a total of 2 activities and expenditure worth UGX.0.228Bn was insufficiently quantified. I further observed that 2 outputs with 3 activities worth UGX.1.682Bn were partially implemented while 1 output with 1 activity worth UGX.2.0Bn was not implemented at all . The Mission did not prepare and submit annual monitoring plans to MoFPED and NPA and also did not prepare and submit quarterly monitoring reports to the Office of the Prime Minister and MoFPED contrary to Paragraph 58 of the Budget Execution Circular for 2019/20. The entity submitted performance reports for Q1, Q2 and Q3 after the deadline given for submission. I noted that the performance reports did not report on the project 1169, strengthening the consulate in Guangzhou by procurement of a utility van. Prepayments amounting to RMB.21,000 (equivalent to UGX.11,466,000) and USD.26,406.60 (equivalent to UGX.107,743,023.20) were made to various suppliers for services but were not disclosed in the financial statements thereby understating the assets in the Statement of Financial Position and overstating expenditure in the Statement of Financial Performance. The Embassy spent RMB.244,833.6 (equivalent to UGX.129,641,839.54) and USD.500 (equivalent to UGX.1,875,165.00) on refunds for medical expenses to its officers contrary to the requirements of Section M (m-a) (14) of the Public Service Standing Orders, 2010. The Consulate has land located on plot no. D8 Yi Zhou Rd in Chigang District which is idle and may be repossessed by the host country. In addition, the Consulate owns a utility van whose repair and maintenance costs have escalated is due for disposal and plans were in place to procure a new one but this was not done. +15. Uganda Embassy in South Sudan. 2019/20  Prepayments amounting to UGX.399,145,310 were made to various suppliers for services but were not disclosed in the financial statements + + + + +180 + + + + + + + + + + + + Opinion Qualified thereby understating the assets in the Statement of Financial Position and overstating expenditure in the Statement of Financial Performance. Out of the planned 7 strategic targets/goals in the Mission charter, 2 outputs/targets had been fully achieved while 5 were partially achieved. There was a shortfall in NTR collections amounting to UGX.2.56Bn representing 17.3% performance. Out of the total receipts for the financial year of UGX.7.624Bn, UGX.9.11Bn was spent by the entity resulting into an over absorption of UGX.1.48Bn representing an absorption level of 119%. I sampled 5 outputs with a total of 30 activities and actual expenditure of UGX.7.07Bn and observed that 4 outputs with a total of 18 activities and expenditure worth UGX.6.69Bn were fully quantified while 1 output with a total of 12 activities and expenditure worth UGX.0.39Bn was insufficiently quantified. For the 5 fully quantified outputs, 2 outputs with 2 activities worth UGX.2.55Bn were fully implemented while 3 outputs with 28 activities worth UGX.4.09Bn were partially implemented. Funds to the tune of USD.17,382.29 (equivalent to UGX.64,841,678) were irregularly diverted from the activities on which they were budgeted and spent on other activities without seeking and obtaining the necessary approvals. The Mission did not prepare and submit annual monitoring plans to MoFPED and NPA and also did not prepare and submit quarterly monitoring reports to the Office of the Prime Minister and MoFPED contrary to Paragraph 58 of the Budget Execution Circular for 2019/20. The entity submitted performance reports for Q1, Q2 and Q3 after the deadline given for submission. I noted some cases of material inaccuracies and inconsistencies in the level of performance reported. UGX.328,779,539 reported as cash in transit has been in the books of the Embassy for more than three financial years and the funds have never been credited to the Consolidated Fund. The Mission had total collections including balance brought forward from previous year of UGX.884,552,695out of which UGX.180,503,771 had been transferred to the Treasury for onward transfer to the Consolidated Fund leaving a balance UGX.704,048,924 not remitted. The Embassy paid USD.25,000.00 (equivalent to UGX.93,258,250) in respect of education allowances direct to its officials instead of their respective education institutions or schools contrary to Section (E - e) Paragraphs 19 and 20 of the Public Service Standing Orders, 2010. USD.1,613.00 (equivalent to UGX.6,017,022) out of which USD.1,076.00 (equivalent to UGX.4,013,835) representing 2/3 of the amount should have been recovered from the respective staff was incurred on the payments for telephone bills during the period. The recovery was not effected. Out of an approved staff structure of 6 staff positions for the Mission, 5 (83%) were filled leaving 1(17%) vacant. +16. Uganda Embassy in Khartoum. 2019/20Opinion  Out of the planned 10 strategic targets/goals in the Mission charter, 5 outputs/targets had been fully achieved while 3 were partially achieved. There was a shortfall in NTR collections amounting to UGX.2.5Bn representing 2.01% performance. I sampled 4 outputs with a total of 11 activities and actual expenditure of + + + + +181 + + + + + + + + + + + + Unqualified UGX.4.169Bn and observed that 2 outputs with a total of 6 activities and expenditure worth UGX.0.95Bn were fully quantified, 1 output with a total of 4 activities and expenditure worth UGX.3.11Bn was insufficiently quantified while 1 output with 1 activity and expenditure worth UGX.0.11 was totally not quantified. I further observed that no output was fully implemented while 3 outputs with 10 activities worth UGX.4.09Bn were partially implemented. Funds to the tune of USD.4,393.04 (equivalent to UGX.15,595,150) were irregularly diverted from the activities on which they were budgeted and spent on other activities without seeking and obtaining the necessary approvals. The Mission did not prepare and submit annual monitoring plans to MoFPED and NPA and also did not prepare and submit quarterly monitoring reports to the Office of the Prime Minister and MoFPED contrary to Paragraph 58 of the Budget Execution Circular for 2019/20. The entity submitted performance reports for Q1, Q2 and Q3 after the deadline given for submission. The Embassy paid USD.17,500.00 (equivalent to UGX.64,925,000) in respect of education allowances direct to its officials instead of their respective education institutions or schools contrary to Section (E - e) Paragraphs 19 and 20 of the Public Service Standing Orders, 2010. The Embassy spent USD.3,702.42 (equivalent to UGX.13,702,656.42) on refunds for medical expenses to its officer’s contrary to the requirements of Section M (m-a) (14) of the Public Service Standing Orders, 2010. USD.7,979.94 (equivalent to UGX.29,605,577) out of which USD.5,319.96 (equivalent to UGX.19,737,051) representing 2/3 of the amount should have been recovered from the respective staff was incurred on the payments for telephone bills during the period. The recovery was not affected. Out of an approved staff structure of 5 staff positions for the Mission, 4 (80%) were filled leaving 1 (20%) vacant. +17 Uganda Embassy in Kigali. 2019/20OpinionUnqualified  Out of the planned 10 strategic targets/goals in the Mission charter, 2 outputs/targets had been fully achieved, 2 were partially achieved while 6 were partially achieved. There was a shortfall in NTR collections amounting to UGX.3.07Bn representing 2.3% performance. I sampled 4 outputs with a total of 13 activities and actual expenditure of UGX.3.325Bn and observed that all the 4 outputs were not quantified. Therefore, I was unable to undertake assessment of the performance of the Mission. The Mission did not prepare and submit annual monitoring plans to MoFPED and NPA and also did not prepare and submit quarterly monitoring reports to the Office of the Prime Minister and MoFPED contrary to Paragraph 58 of the Budget Execution Circular for 2019/20. The entity submitted performance reports for Q1, Q2 and Q3 after the deadline given for submission. I noted that the cumulative activities reported in the fourth quarter performance report did not include all activities implemented in the first, second and third quarters. I noted that the assets register maintained was not in the format prescribed in the Treasury Instructions and lacked details of date of purchase, cost of purchase, maintenance cost, asset code and estimated + + + + +182 + + + + + + + + + + + + useful life. Out of an approved staff structure of 5 staff positions for the Mission, two (2) (40%) were filled leaving 3 (60%) vacant. +18 Uganda Embassy in Kinshasa. 2019/20OpinionQualified  UGX.241,949,940 was reported as the variance between the approved budget/warrants and the actual expenditure instead of UGX.3,564,587. The source of UGX.241,949,940 could not be established. The statement of revenue collected in the financial statements in comparison with statement of performance and the NTR estimates for the year revealed different amounts were budgeted for as NTR collections for the year UGX.700,000,000 in the Statement of Performance, UGX.2,090,000,000 in the NTR estimates book, UGX.245,514,528 in the Statement of Appropriation (based on services voted) and UGX.245,514,528 in the Statement of revenue collected during the year. This misleads the users of the financial statements. All 8 strategic targets/goals in the Mission charter were partially achieved. There was a shortfall in NTR collections amounting to UGX.1.844Bn representing 11.75% performance. I sampled 3 outputs with a total of 6 activities and actual expenditure of UGX.4.13Bn and observed that 2 outputs with a total of 4 activities and expenditure worth UGX.1.21Bn were fully quantified while 1 output with a total of 2 activities and expenditure worth UGX.2.91Bn was insufficiently quantified. Of the outputs that were fully quantified, 4 activities worth UGX.1.21Bn were partially implemented. The Mission did not prepare and submit annual monitoring plans to MoFPED and NPA and also did not prepare and submit quarterly monitoring reports to the Office of the Prime Minister and MoFPED contrary to Paragraph 58 of the Budget Execution Circular for 2019/20. The entity submitted performance reports for Q1, and Q4 after the deadline given for submission. The Embassy paid UGX.83,932,425 in respect of education allowances direct to its officials instead of their respective education institutions or schools contrary to Section (E - e) Paragraphs 19 and 20 of the Public Service Standing Orders, 2010. USD.45,232 (equivalent to UGX.168,730,287) was spent on purchases and allowances which are not small incidental expenditures such as postage and other office costs as guided by the Treasury Instructions 2017. I found this irregular. The Embassy paid allowances to staff in form of COVID Allowances totalling to USD.3,100 (equivalent to UGX.11,564,023), a period when DR Congo was under lock down (March to June, 2020) contrary to Paragraph (E-a)1 – 2 of the Public Service Standing Orders, 2010 . I noted that procurements worth UGX.54,649,335 were undertaken outside the approved procurement plan and procurement for medical insurance of staff worth UGX.71,495,505 was a direct procurement with no justification. The Embassy had a fixed asset register that lacked information such as date of purchase, estimated useful life, maintenance costs and the expected date of disposal and a number of the entity’s assets were not well maintained and utilized. Out of an approved staff structure of 21 staff positions for the Mission, 18 + + + + +183 + + + + + + + + + + + + (85.7%) were filled leaving 3 (14.3%) vacant. +19 Uganda High Commission in Kuala Lumpur. 2019/20OpinionUnqualified  Out of the planned 10 (ten) strategic targets/goals in the Mission charter, one (1) target had been fully achieved, three (3) were partially achieved, while six (6) were not achieved. There was a shortfall in NTR collections amounting to UGX.2.068Bn representing 1% performance. I sampled 3 outputs with a total of 13 activities and actual expenditure of UGX.3.57Bn and observed that 2 outputs with a total of 9 activities and expenditure worth UGX.0.87Bn were fully quantified while 1 output with a total of 4 activities and expenditure worth UGX.2.6Bn was insufficiently quantified. Of the fully quantified outputs, 1 output with 5 activities worth UGX.0.21Bn was fully implemented while 1 output with 4 activities worth UGX.0.66Bn was partially implemented. Funds to the tune of MYR.11,209 (equivalent to UGX.9,763,039) were irregularly diverted from purchase of specialized machinery and equipment for which they were budgeted to purchase of curtains without seeking and obtaining the necessary approvals. The Mission did not prepare and submit annual monitoring plans to MoFPED and NPA and also did not prepare and submit quarterly monitoring reports to the Office of the Prime Minister and MoFPED contrary to Paragraph 58 of the Budget Execution Circular for 2019/20. The Mission submitted performance reports for Q2 and Q3 after the deadline given for submission of the reports. The Embassy paid MYR.136,000 (equivalent to UGX.118,456,000) in respect of education allowances direct to its officials instead of their respective education institutions or schools contrary to Section (E - e) Paragraphs 19 and 20 of the Public Service Standing Orders, 2010. The Mission has an approved staff structure of five (5) staff positions out of which, two (2) (40%) were filled leaving three (3) (60%) vacant. Management of the Embassy paid salary and FSA advances to staff to the tune of MYR.185,950 (equivalent to UGX.160,995,510) which exceeded three (3) months gross pay and no authority was sought from Secretary to the Treasury. This is contrary to the Public Service Standing Orders, 2010. +20 Uganda High Commission in London. 2019/20OpinionUnqualified  Out of the planned 9 (nine) strategic targets/goals in the Mission charter, four (4) targets had been fully achieved, three (3) were partially achieved, while two (2) were not achieved. There was a shortfall in NTR collections amounting to UGX.1.604Bn representing 31% performance. I sampled 4 outputs with a total of 7 activities and actual expenditure of UGX.7.32Bn and observed that all the 4 outputs with 7 activities and expenditure worth UGX.7.32Bn were not quantified to enable assessment of performance. Funds to the tune of GBP.2,598.56 (equivalent to UGX.11,756,583) were irregularly diverted from purchase of specialized machinery and equipment for which they were budgeted to purchase of curtains without seeking and obtaining the necessary approvals. Entities are supposed to report actual performance of the quarter as well as the cumulative activities of the previous quarter(s). I observed that cumulative performance reports did not include activities implemented in + + + + +184 + + + + + + + + + + + + the previous quarter(s). The Mission had total collections including balance brought forward from previous year of UGX.1,606,177,645 out of which UGX.706,072,607 had been transferred to the Treasury for onward transfer to the Consolidated Fund leaving a balance UGX.900,105,038 not remitted. Payables increased from UGX.130,550,604 in the previous year to UGX.161,515,890 in the year under review, an increase of 24%. The arrears remained unsettled at the close of the year. Management has accumulated receivable advances to the tune of UGX.105,435,937 of which UGX.79,896,783 (76%) relates to the prior year and remains unrecovered. The Statement of Stores and Other Assets (physical assets) as at the end of the financial year 2019/2020 revealed that additions during the year relating to non-residential buildings were disclosed as UGX.465,161,335, however, the Embassy procured items amounting to GBP.107,661 (equivalent to UGX.494,777,699) implying that items worth UGX.29,616,364 were not disclosed in this statement thus understating the Statement of Stores and Other Assets (physical assets). The Embassy had a capital expenditure budget of UGX.275,000,000 but items worth UGX.494,777,699 were procured resulting into an over expenditure of UGX.224,777,699. The Embassy paid GBP.28,187.49 (equivalent UGX.129,541,258) in respect of education allowances direct to its officials instead of their respective education institutions or schools contrary to Section (E - e) Paragraphs 19 and 20 of the Public Service Standing Orders, 2010. The Embassy spent GBP.14,300.09 (equivalent to UGX.65,718,929) on refunds for medical expenses to its officers contrary to the requirements of Section M (m-a) (14) of the Public Service Standing Orders, 2010. The Mission has an approved staff structure of eight (8) staff positions out of which, 5 (63%) were filled leaving 3 (37%) vacant. +21. Uganda Embassy in Mogadishu. 2019/20Opinion Unqualified  Out of the planned 5 strategic targets/goals in the Mission charter, all the 5 were partially achieved. There was a shortfall in NTR collections amounting to UGX.3.14Bn representing 0% performance. Out of the total receipts of UGX.3.78Bn, UGX.2.87Bn was spent by the entity resulting in an unspent balance of UGX.0.91Bn representing an absorption level of 76%. I sampled 3 outputs with a total of 6 activities and actual expenditure of UGX.2.87Bn and observed that all the 3 outputs with a total of 6 activities and expenditure worth UGX.2.87Bn were not quantified at all. I was therefore unable to assess the implementation of outputs/activities of the Mission. Funds to the tune of UGX.16,835,000 were irregularly diverted from the activities on which they were budgeted and spent on other activities without seeking and obtaining the necessary approvals. The Mission did not prepare and submit annual monitoring plans to MoFPED and NPA and also did not prepare and submit quarterly monitoring reports to the Office of the Prime Minister and MoFPED contrary to Paragraph 58 of the Budget Execution Circular for 2019/20. The Mission submitted performance reports for Q1, Q2, Q3 and Q4 after + + + + +185 + + + + + + + + + + + + the deadline given for submission. The Mission had total collections including balance brought forward from previous year of UGX.850,244,773 out of which UGX.7,829 had been transferred to the Treasury for onward transfer to the Consolidated Fund leaving a balance UGX.850,236,944 not remitted. USD.1,020,250 (equivalent to UGX.3,800,767,933) was withdrawn as petty cash during the year out of which USD.340,250.00 (equivalent to UGX.1,267,543,533) was withdrawn in the last quarter of the financial year (March, April, May and June), the period affected by COVID 19 lockdown which appears irregular. The Embassy paid UGX.83,250,000 in respect of education allowances direct to its officials instead of their respective education institutions or schools contrary to Section (E - e) Paragraphs 19 and 20 of the Public Service Standing Orders, 2010. +22. Uganda Consulate in Mombasa. 2019/20Opinion Unqualified  Out of the planned 6 strategic targets/goals in the Mission charter, 2 outputs/targets had been fully achieved while 4 were partially achieved. There was a shortfall in NTR collections amounting to UGX.2.089Bn representing 0.01% performance. Out of the total receipts for the financial year of UGX.1.996Bn, UGX.1.883Bn was spent by the entity resulting in an under expenditure of UGX.0.113Bn representing an absorption level of 94.34%. UGX.12,562,792 was received as off-budget financing for a symposium held in the financial year under review but the funds were not disclosed in the financial statements. I sampled 3 outputs with a total of 4 activities and actual expenditure of UGX.1.883Bn and observed that 1 output with a total of 2 activities and expenditure worth UGX.0.73Bn was fully quantified while 2 outputs with a total of 2 activities and expenditure worth UGX.1.15Bn were insufficiently quantified. The quantified output with all its activities with its activities and expenditure worth UGX.0.73Bn was partially implemented. Funds to the tune of UGX.5,205,620 were charged wrongly on other expenditure item codes without obtaining the necessary approvals. The Mission did not prepare and submit annual monitoring plans to MoFPED and NPA and also did not prepare and submit quarterly monitoring reports to the Office of the Prime Minister and MoFPED contrary to Paragraph 58 of the Budget Execution Circular for 2019/20. Entities are supposed to report actual performance of the quarter as well as the cumulative activities of the previous quarter(s). I observed that cumulative performance reports did not include activities implemented in the previous quarter(s). The Embassy paid UGX.44,763,960 in respect of education allowances direct to its officials instead of their respective education institutions or schools contrary to Section (E - e) Paragraphs 19 and 20 of the Public Service Standing Orders, 2010. A number of the Consulate’s assets were old and due for boarding off but were still at the Consulate resulting into loss of value and high maintenance costs. +23. Uganda Embassy in Moscow. 2019/20  Out of the planned 24 (twenty-four) strategic targets/goals in the Mission charter, thirteen (13) targets had been fully achieved, eight (8) were partially achieved, while three (3) were not achieved. + + + + +186 + + + + + + + + + + + + Opinion Unqualified  There was a shortfall in NTR collections amounting to UGX.1.462Bn representing 6.8% performance. I sampled 4 outputs with a total of 12 activities and actual expenditure of UGX.4.32Bn and observed that 2 outputs with a total of 8 activities and expenditure worth UGX.4Bn were fully quantified while 2 outputs with a total of 4 activities and expenditure worth UGX.0.32Bn were not quantified. The quantified outputs were partially quantified. The Mission did not prepare and submit annual monitoring plans to MoFPED and NPA and also did not prepare and submit quarterly monitoring reports to the Office of the Prime Minister and MoFPED contrary to Paragraph 58 of the Budget Execution Circular for 2019/20. The Mission submitted performance reports for Q1, and Q3, after the deadline given for submission The Statement of Stores and Other Assets (physical assets) as at the end of the financial year 2019/2020 revealed that additions during the year relating to non-residential buildings were disclosed as UGX.149,778,932, however, the Embassy procured items amounting to UGX.333,509,897 implying that items worth UGX.183,730,965 were not disclosed in this statement thus understating the Statement of Stores and Other Assets (physical assets). The Embassy had an approved budget of UGX.196,000,000 for procurement of furniture and fixtures but a sum of UGX.333,509,897 on this item resulting into an excess expenditure of UGX.137,509,987. The Embassy procured furniture and fittings for furnishing six residencies and a Chancery worth RUB.6,795,232 (equivalent to UGX.333,509,897) but were not recorded in the Embassy asset register as well as the Board of Survey report, direct procurement method was used without justification, procurements did not undergo any evaluation of bids, contracts committee was not involved during the procurement process and contract managers were not appointed for all the procurements. The Assets Register maintained by the Embassy was not in the format prescribed in the Treasury Instructions as it lacked details of date of purchase, cost of purchase, maintenance cost, asset code and estimated useful life. The Embassy spent RUB.1,052,189.97 and EURO.370.37 (approximately UGX.53,187,249) on refunds for medical expenses to its officers contrary to the requirements of Section M (m-a) (14) of the Public Service Standing Orders, 2010. Salary advances to the tune of Euro. 4,681.18 (equivalent to UGX.19,537,232) were paid to to staff which exceeded three (3) months gross and though authorised by the Accounting Officer of the Embassy, no authority was sought from Secretary to the Treasury contrary to the Public Service Standing Orders. +24. Uganda High Commission in Nairobi. 2019/20OpinionUnqualified  Out of the planned 10 (ten) strategic targets/goals in the Mission charter, 2 (two) were partially achieved while eight (8) were not achieved. There was a shortfall in NTR collections amounting to UGX.2.73Bn representing 12.8% performance. Out of the total receipts for the financial year of UGX.4.94Bn, UGX.3.77Bn was spent by the entity resulting in an unspent balance of UGX.1.17Bn representing an absorption level of 76.3%. I sampled 4 outputs with a total of 7 activities and actual expenditure of + + + + +187 + + + + + + + + + + + + UGX.3.77Bn and observed that all the 4 outputs with a total of 7 activities and expenditure worth UGX.3.77Bn were fully quantified but were partially implemented. The Mission did not prepare and submit annual monitoring plans to MoFPED and NPA and also did not prepare and submit quarterly monitoring reports to the Office of the Prime Minister and MoFPED contrary to Paragraph 58 of the Budget Execution Circular for 2019/20. The Mission submitted performance reports for all quarters after the deadline given for submission. I also observed that cumulative performance reports revealed that the subsequent quarterly performance reports did not include activities implemented in the previous quarter(s). Accumulated arrears of revenue to the tune of UGX.181,948,023 most of which related to the prior year remained uncollected. The Embassy paid a sum of USD.46,950 (equivalent to UGX.174,513,150) to Toyota Kenya Limited for the acquisition of a Land Cruiser Prado but the procurement was undertaken by the High Commissioner instead of the Accounting Officer which resulted into usurping the powers of the Accounting Officer, over committing the Mission, non-compliance with Government ban on acquisition of motor vehicles, un-planned procurement, use of inappropriate procurement method and failure to involve the Contracts Committee. The Embassy paid KES.3,360,000 (equivalent to UGX.117,633,600) in respect of education allowances direct to its officials instead of their respective education institutions or schools contrary to Section (E - e) Paragraphs 19 and 20 of the Public Service Standing Orders, 2010. The Embassy spent KES.620,485 (equivalent to UGX.21,723,180)on refunds for medical expenses to its officers contrary to the requirements of Section M (m-a) (14) of the Public Service Standing Orders, 2010. The Mission did not have a fixed assets register in the format prescribed in the Treasury Instructions and therefore additions and disposals to the assets could not be verified. I further observed that a number of the entity’s assets were old and due for boarding off exposing the assets to loss of value and high maintenance costs. The Mission has an approved staff structure of seven (7) staff positions out of which 5 (71.4%) were filled leaving 2 (28.5%) vacant. +25. Uganda Embassy in New Delhi. 2019/20OpinionUnqualified  Out of the planned 6 (six) strategic targets/goals in the Mission charter, 1 (one) was fully achieved while 2 (two) were partially achieved while three (3) were not achieved. There was a shortfall in NTR collections amounting to UGX.2.62Bn representing 0.0015% performance. Out of the total receipts for the financial year of UGX.4.554Bn, UGX.3.732Bn was spent by the entity resulting in an unspent balance of UGX.0.822Bn representing an absorption level of 81.9%. I sampled 3 outputs with a total of 6 activities and actual expenditure of UGX.3.732Bn and observed that all the 3 outputs were fully quantified and none was fully implemented. Funds to the tune of INR.42,262 (equivalent to UGX.2,062,385) were irregularly diverted from the activities on which they were budgeted and spent on other activities without seeking and obtaining the necessary approvals. The Mission did not prepare and submit annual monitoring plans to + + + + +188 + + + + + + + + + + + + MoFPED and NPA and contrary to Paragraph 58 of the Budget Execution Circular for 2019/20. Cumulative performance reports did not include activities implemented in the previous quarter(s). The Mission had total collections including balance brought forward from previous year of UGX.524,440,586 out of which UGX.160,671,521 had been transferred to the Treasury for onward transfer to the Consolidated Fund leaving a balance UGX.1,284,723,792 not remitted. INR.38,324.24 (equivalent to UGX.1,839,564) out of which 2/3 of the amount should have been recovered from the respective staff was incurred on the payments for telephone bills during the period. The recovery was not effected. Salary advances to the tune of USD. 98,406.39 (equivalent to UGX.369,023,963) were paid to staff during the year which exceeded three (3) months gross contrary to the Public Service Standing Orders. The Embassy spent INR.549,516.00 (equivalent to UGX.26,376,775) on refunds for medical expenses to its officers contrary to the requirements of Section M (m-a) (14) of the Public Service Standing Orders, 2010. +26. The Uganda Embassy in New York. 2019/20OpinionQualified  The Embassy had a capital expenditure budget of UGX.0 but items worth UGX.665,143,450 resulting into an over expenditure of UGX.665,143,450. I sampled 4 outputs with a total of 10 activities and actual expenditure of UGX.16.77Bn and observed that all four (4) outputs were not quantified. I was unable to assess the extent of implementation of quantified activities. Funds to the tune of USD.16,155 (equivalent to UGX.60,182,706) were irregularly diverted from the activities on which they were budgeted and spent on other activities without seeking and obtaining the necessary approvals. The Mission did not prepare and submit annual monitoring plans to MoFPED and NPA and also did not prepare and submit quarterly monitoring reports to the Office of the Prime Minister and MoFPED contrary to Paragraph 58 of the Budget Execution Circular for 2019/20. The entity submitted performance reports for Q1, Q2, Q3, Q4 after the deadline given for submission. The Mission had total collections including balance brought forward from previous year of UGX.13,431,978,161 out of which UGX.3,957,841,655 had been transferred to the Treasury for onward transfer to the Consolidated Fund leaving a balance UGX. 9,474,136,506 not remitted. The Mission had outstanding payables to a tune of UGX.208,571,725 as the end of June 2019 but details were not provided for audit verification and the arrears were paid without a budget. The Embassy had accumulated arrears of revenue to the tune of UGX.3,801,562,591 out of which UGX.2,932,243,479 (77%) relates to revenue arrears accumulated in the prior years and remains uncollected. The details relating to the arrears were also not provided for audit verification. The Mission paid UGX.134,726,559 in respect of education allowances direct to its officials instead of their respective educational institutions or schools contrary to Section (E - e) Paragraphs 19 and 20 of the Public Service Standing Orders 2010. + + + + +189 + + + + + + + + + + + +  The Embassy spent UGX.145,667,183 on refunds for medical expenses to its officers contrary to the requirements of Section M (m-a) (14) of the Public Service Standing Orders, 2010. The Mission prepared an approved procurement plan for the financial year 2019/2020 but procurement reports and procurement files were not availed for audit. The Mission has an approved staff structure of 9 staff positions out of which 8 (88%) were filled leaving 01 (12%) vacant. +27. Uganda High Commission in Ottawa. 2019/20OpinionUnqualified  Out of the planned 8 (eight) strategic targets/goals in the Mission charter, four (4) were fully achieved while 2 (two) were partially achieved while two (2) were not achieved. There was a shortfall in NTR collections amounting to UGX.2.077Bn representing 0.62% performance. I sampled 3 outputs with a total of 8 activities and actual expenditure of UGX.5.63Bn and observed that all the 3 outputs were fully quantified but none was fully implemented. Funds to the tune of CAD.3,301.3 (equivalent to UGX.9,586,521) were irregularly diverted from the activities on which they were budgeted and spent on other activities without seeking and obtaining the necessary approvals. The Mission did not prepare and submit the annual monitoring plans to MoFPED and NPA contrary Paragraph 58 of the Budget Execution Circular for 2019/20. The Mission had total collections including balance brought forward from previous year of UGX.2,585,956,931 out of which UGX.39,588,787 had been transferred to the Treasury for onward transfer to the Consolidated Fund leaving a balance UGX.2,546,368,144 not remitted. The Mission paid CAD.35,000.00 (equivalent to UGX.101,605,000)in respect of education allowances direct to its officials instead of their respective educational institutions or schools contrary to Section (E - e) Paragraphs 19 and 20 of the Public Service Standing Orders 2010. The Embassy spent CAD.114,255 (equivalent to UGX.331,693,168) on refunds for medical expenses to its officers contrary to the requirements of Section M (m-a) (14) of the Public Service Standing Orders, 2010. +28. Uganda Embassy in Paris. 2019/20OpinionUnqualified  The Mission made upfront payments for rent of EUR.50,183 (equivalent to UGX.209,723,288) beyond the financial year but did not disclose the same as prepayments in the Statement of Financial Position for the year. Funds to the tune of UGX.40,504,892 were irregularly diverted from the activities on which they were budgeted and spent on other activities without seeking and obtaining the necessary approvals. There was a shortfall in NTR collections amounting to UGX.2.61Bn representing 0.4% performance. Out of the total receipts for the financial year of UGX.9.59Bn, UGX.5.56Bn was spent by the entity resulting in an unspent balance of UGX.4.03Bn representing an absorption level of 58%. I sampled 4 outputs with a total of 19 activities and actual expenditure of UGX.5.56Bn and observed that 1 output (25%) with a total of 7 activities and expenditure worth UGX.1.61Bn was insufficiently quantified while 3 outputs (75%) with a total of 12 activities and expenditure worth UGX 3.95Bn were not quantified at all. I was therefore unable to undertake + + + + +190 + + + + + + + + + + + + assessment of implementation of outputs by the Mission. The Mission did not prepare and submit annual monitoring plans to MoFPED and NPA and also did not prepare and submit quarterly monitoring reports to the Office of the Prime Minister and MoFPED contrary to Paragraph 58 of the Budget Execution Circular for 2019/20. The Mission submitted performance reports for Q1, Q2, Q3 and Q4 after the deadline given for submission. Furthermore, entities are supposed to report actual performance of the quarter as well as the cumulative activities of the previous quarter(s) but the Mission quarterly performance reports did not include activities implemented in the previous quarter(s). The Embassy paid EUROS.30,691 (equivalent to UGX.128,071,701) in respect of education allowances direct to its officials instead of their respective education institutions or schools contrary to Section (E - e) Paragraphs 19 and 20 of the Public Service Standing Orders, 2010. The Embassy spent EUROS.7,933 (equivalent to UGX.33,101,972) on refunds for medical expenses to its officers contrary to the requirements of Section M (m-a) (14) of the Public Service Standing Orders, 2010. UGX.3.75BN was released for renovation and modification of Uganda Chancery Building in Paris but the procurement was undertaken using the restricted bidding instead of open domestic bidding without proper justification. Furthermore, the implementation of the contract had not commenced by the end of the financial and the contactor is said to have had difficulty in obtaining a bank guarantee from banks because the Mission is a foreign entity which could pose challenges in contract performance. The Mission has an approved staff structure of 7 staff positions out of which positions, 6 (86%) were filled leaving 1 (14%) vacant. EUR.43,541.63 (equivalent to UGX.181,969,420) was paid from the Mission’s imprest account to cater for official activities but EUR.15,851 (equivalent to UGX.66,244,024) was spent on activities such as, allowances, purchase of computer and household items which cannot be categorised under imprest making it irregular. +29. Uganda Embassy in Pretoria. 2019/2020OpinionUnqualified  Out of the planned 8 (eight) strategic targets/goals in the Mission charter, two (2) were fully achieved while 4 (four) were partially achieved while two (2) were not achieved. There was a shortfall in NTR collections amounting to UGX.2.49Bn representing 5% performance. I sampled 4 outputs with a total of 8 activities and actual expenditure of UGX.3.62Bn and observed that three (3) outputs with a total of seven (7) activities and expenditure worth UGX.3.54Bn were fully quantified while one (1) output with one (1) activity and expenditure worth UGX.0.08Bn was not quantified. Of the quantified outputs, one (1) output with three (3) activities worth UGX.0.38Bn was fully implemented while two (2) outputs with four (4) activities worth UGX.3.16Bn were partially implemented. Funds to the tune of RAND.35,774.08 (equivalent to UGX.7,697,509) were irregularly diverted from the activities on which they were budgeted and spent on other activities without seeking and obtaining the necessary approvals. The entity submitted performance reports for Q1, Q2, Q3, and Q4, however they were submitted after the deadline. I also observed that cumulative performance reports did not include activities implemented in + + + + +191 + + + + + + + + + + + + the previous quarter(s) The Embassy paid USD.18,000.009 (equivalent to UGX.66,785,973) in respect of education allowances direct to its officials instead of their respective education institutions or schools contrary to Section (E - e) Paragraphs 19 and 20 of the Public Service Standing Orders, 2010. The Embassy spent 162,579.25 RAND (equivalent to UGX.34,982,177) on refunds for medical expenses to its officers contrary to the requirements of Section M (m-a) (14) of the Public Service Standing Orders, 2010. The Mission has an approved staff structure of 6 staff positions out of which, 5 (83%) were filled leaving 1 (17%) vacant. +30. Uganda Embassy in Riyadh 2019/2020OpinionUnqualified  There was a shortfall in NTR collections amounting to UGX.2.088Bn representing 0.5% performance. I sampled 3 outputs with a total of 13 activities and actual expenditure of UGX.4.156Bn and observed that all the 3 outputs were fully quantified. I further observed that 1 output with 5 activities worth UGX.3.79Bn was fully implemented while 2 outputs with 8 activities worth UGX.0.36Bn were partially implemented. The Mission did not prepare and submit annual monitoring plans to MoFPED and NPA and also did not prepare and submit quarterly monitoring reports to the Office of the Prime Minister and MoFPED contrary to Paragraph 58 of the Budget Execution Circular for 2019/20. The Mission submitted performance reports for Q1, Q2, Q3 and Q4 after the deadline given for submission. The Embassy paid UGX.39,862,700 in respect of education allowances direct to its officials instead of their respective education institutions or schools contrary to Section (E - e) Paragraphs 19 and 20 of the Public Service Standing Orders, 2010. The Embassy spent SAR.132,601.64 (approximately UGX.131,036,012.44) on refunds for medical expenses to its officers contrary to the requirements of Section M (m-a) (14) of the Public Service Standing Orders, 2010. UGX.30,569,246 out of which 2/3 of the amount should have been recovered from the respective staff was incurred on the payments for telephone bills during the period. The recovery was not effected. The Mission has an approved staff structure of 5 staff positions out of which, 3 (60%) were filled leaving 2 (40%) vacant. +31. Uganda Embassy in Rome 2019/20Opinion Unqualified  Out of the planned 8 (eight) strategic targets/goals in the Mission charter, two (2) targets had been fully achieved and six (6) were partially achieved. There was a shortfall in NTR collections amounting to UGX.1.503Bn representing 4.2% performance. Of the total receipts for the financial year of UGX.5.564Bn, UGX.4.952Bn was spent by the entity resulting in an unspent balance of UGX.0.612Bn representing an absorption level of 89%. I sampled 4 outputs with a total of 8 activities and actual expenditure of UGX.3.62Bn and observed that 3 outputs with a total of 7 activities and expenditure worth UGX.3.54Bn were fully quantified while 1 output with 1 activity and expenditure worth UGX.0.08Bn was not quantified. Of the quantified outputs, 1) output with 3) activities worth UGX.0.38Bn was fully implemented while 2 outputs with 4 activities worth UGX.3.16Bn + + + + +192 + + + + + + + + + + + + were partially implemented. The Mission did not prepare and submit annual monitoring plans to MoFPED and NPA and also did not prepare and submit quarterly monitoring reports to the Office of the Prime Minister and MoFPED contrary to Paragraph 58 of the Budget Execution Circular for 2019/20. The Mission had total collections including balance brought forward from previous year of UGX.1,702,152,606 out of which UGX.67,884,170 had been transferred to the Treasury for onward transfer to the Consolidated Fund leaving a balance UGX.1,634,268,436 not remitted. The Mission reported cash in transit of UGX.32,102,340 which relates to over 10 years ago which may be difficult for the Mission to trace or recover. The Statement of Contingent Liabilities in the financial statements for the year ended 30th June, 2020, indicated an opening balance of UGX.1,141,003,975.79 instead of UGX.542,522,152.97 resulting into an overstatement of UGX.598,481,822.82. During the year 2019/2020, management of the Mission was availed a supplementary funding of UGX.433,360,086 to cater for settlement of four (4) court cases but the Mission still remained with outstanding liabilities for settlement of court cases amounting to UGX.542,522,152 at the end of the year. The Embassy spent Euros.8,430.75 (equivalent to UGX.35,422,471) on refunds for medical expenses to its officers contrary to the requirements of Section M (m-a) (14) of the Public Service Standing Orders, 2010. The Embassy has an approved staff structure of 6 staff positions out of which 5 (83%) were filled leaving 1 (15%) vacant. +32. Uganda Embassy in Tokyo 2019/20 Opinion Unqualified  Out of the planned 17 (seventeen) strategic targets/goals in the Mission charter, nine (9) were fully achieved, 4 (four) were partially achieved while four (4) were not achieved at all. There was a shortfall in NTR collections amounting to UGX.1.451Bn representing 8% performance. I sampled 5 outputs with a total of 17 activities and actual expenditure of UGX.5.76Bn and observed that all the 5 outputs were not quantified. I was therefore unable to undertake assessment of performance. Funds to the tune of JPY.730,423 (equivalent to UGX.25,352,982) were irregularly diverted from the activities on which they were budgeted and spent on other activities without seeking and obtaining the necessary approvals. The Mission did not prepare and submit the annual monitoring plans to MoFPED and NPA contrary to Paragraph 58 of the Budget Execution Circular for 2019/20. The Mission submitted performance reports for Q1, Q2, Q3 and Q4 after the deadline given for submission. The Mission paid JPY.3,300,000 (equivalent to UGX.115,295,400) in respect of education allowances direct to its officials instead of their respective educational institutions or schools contrary to Section (E - e) Paragraphs 19 and 20 of the Public Service Standing Orders 2010. The Embassy spent Euros.8,430.75 (equivalent to UGX.35,422,471) on refunds for medical expenses to its officers contrary to the requirements of Section M (m-a) (14) of the Public Service Standing Orders, 2010. + + + + +193 + + + + + + + + + + + +  JPY.2,591,132 (equivalent to UGX.89,938,192) out of which 2/3 of the amount should have been recovered from the respective staff was incurred on the payments for telephone bills during the period. The recovery was not effected. The fixed assets register maintained by the entity was not in the format prescribed in the Treasury Instructions and lacked details of: cost of some items, maintenance cost, estimated useful life, among others and assets which had already been disposed were still in the assets register. +33. Uganda Embassy in Washington. 2019/20OpinionUnqualified  Funds to the tune of UGX.184,722,054 were irregularly diverted from the activities on which they were budgeted and spent on other activities without seeking and obtaining the necessary approvals. Out of the planned 31 strategic targets/goals in the Mission charter, 13 were fully achieved while 18 were partially achieved. There was a shortfall in NTR collections amounting to UGX.3.64Bn representing 0.7% performance. Out of the total receipts for the financial year of UGX.8,039,710,935, UGX.7,707,884,006 was spent by the entity resulting in an unspent balance of UGX.331,826,929 representing an absorption level of 96%. I sampled 6 outputs with a total of 17 activities and actual expenditure of UGX.7.67Bn and observed that all 6 outputs were not quantified. I was therefore unable to undertake assessment of performance. The Mission did not prepare and submit annual monitoring plans to MoFPED and NPA and also did not prepare and submit quarterly monitoring reports to the Office of the Prime Minister and MoFPED contrary to Paragraph 58 of the Budget Execution Circular for 2019/20. Performance reports for Q1, Q2 and Q3 were submitted after the deadline given for submission. The Mission paid USD.27,500 (equivalent to UGX.103,134,075) in respect of education allowances direct to its officials instead of their respective educational institutions or schools contrary to Section (E - e) Paragraphs 19 and 20 of the Public Service Standing Orders 2010. The Embassy spent USD.21,764.99 (equivalent to UGX.81,625,894.95) on refunds for medical expenses to its officers contrary to the requirements of Section M (m-a) (14) of the Public Service Standing Orders, 2010. USD.18,000 (equivalent to UGX.69,552,175) was paid to Embassy staff as Covid relief allowance during the financial year 2019/2020 in the last month of the financial year. This allowance is not provided for in the Public Service Standing Orders and neither was it budgeted for during the year. JPY.2,591,132 (equivalent to UGX.89,938,192) out of which 2/3 of the amount should have been recovered from the respective staff was incurred on the payments for telephone bills during the period. The recovery was not effected. The fixed assets register maintained by the entity was not in the format prescribed in the Treasury Instructions and lacked details of: cost of some items, maintenance cost, estimated useful life, among others and assets which had already been disposed were still in the assets register. +34. Uganda Embassy in Teheranc. 2019/2020  Out of the planned 11 (eleven) strategic targets/goals in the Mission charter, one (1) were fully achieved while 10 (ten) were partially + + + + +194 + + + + + + + + + + + + Opinion Unqualified achieved. There was a shortfall in NTR collections amounting to UGX.1.57Bn representing 0.1% performance. I sampled 7 outputs with a total of 12 activities and actual expenditure of UGX.3.66Bn and observed that 4 outputs with a total of 6 activities and expenditure worth UGX.2.69Bn were fully quantified, 2 outputs with a total of 5 activities and expenditure worth UGX.1.73Bn were partially quantified while 1 output with 1 activity and expenditure worth UGX.0.04Bn was not quantified at all. Of the quantified outputs, 3 outputs with 3)activities worth UGX.0.38Bn were fully implemented while 1 output with 3 activities worth UGX.1.95Bn was partially implemented. The Mission had total collections including balance brought forward from previous year of UGX.406,961,421 out of which UGX.126,522,621 had been transferred to the Treasury for onward transfer to the Consolidated Fund leaving a balance UGX.280,522,621 not remitted. The Mission paid USD.14,000 (UGX.51,800,000) in respect of education allowances direct to its officials instead of their respective educational institutions or schools contrary to Section (E - e) Paragraphs 19 and 20 of the Public Service Standing Orders 2010. RIALS.746,627,400 (equivalent to UGX.65,703,211) was paid to Embassy staff as contingency allowance which is not provided for in the Public Service Standing Orders, 2010 and neither was it budgeted for during the year. RIALS.146,565,232,896 (equivalent to UGX.12,897,740,495) was paid from the Mission’s imprest account to cater for official activities but was not adequately accounted for. +35. Uganda Embassy in Addis Ababa. 2019/2020OpinionUnqualified  Out of the planned 7 strategic targets/goals, no target was fully achieved, 5 targets were fully achieved and 2 targets were partially achieved. There was a shortfall in NTR collections amounting to UGX.1.85Bn representing 11% performance. Out of the total receipts for the financial year of UGX.4.16Bn, UGX.3.81Bn was spent by the entity resulting in an unspent balance of UGX.0.35Bn representing an absorption level of 91.5%. I sampled 5 outputs with a total of 9 activities and actual expenditure of UGX.3.76Bn and observed that 3 outputs with a total of 7 activities and expenditure worth UGX.3.76Bn were fully quantified while 2 outputs with a total of 2 activities were not quantified. I further observed that 2 outputs with 5 activities worth UGX.3.22Bn were fully implemented while 1 output with 2 activities worth UGX.0.674Bn was partially implemented. Funds to the tune of Birr.304,045.69 (equivalent to UGX.23,958,820) were irregularly diverted from the activities on which they were budgeted and spent on other activities without seeking and obtaining the necessary approvals. A review of the 4 quarterly performance reports revealed that the supplementary release of UGX.0.653Bn was not captured at all making the reports inaccurate. The Mission had total collections including balance brought forward from previous year of UGX.707,901,392 out of which UGX.236,256,209 had been transferred to the Treasury for onward transfer to the Consolidated Fund leaving a balance UGX.471,645,183 not remitted. USD.48,129.83 and BIRR.94,144.96 (equivalent to UGX.183,940,336) + + + + +195 + + + + + + + + + + + + was withdrawn from the Mission’s local expenditure account as cash imprest but was not adequately accounted for. The Mission paid USD.44,000.00 (equivalent to UGX.165,000,000) in respect of education allowances direct to its officials instead of their respective educational institutions or schools contrary to Section (E - e) Paragraphs 19 and 20 of the Public Service Standing Orders 2010. The Mission paid medical refunds to its staff amounting to Birr.298,287.38 (equivalent to UGX.582,793,607) contrary to Section M (m-a) (14) of the Public Service Standing Orders, 2010. The Mission maintains an assets register that is not in the format prescribed by the Treasury Instructions. +36. Uganda Embassy in Copenhagen. 2019/2020OpinionQualified  A sum of UGX.300,000,000 was approved by Parliament as supplementary budget for the Embassy for the financial year 2019/2020 out of which UGX.270,000,000 was subsequently released during the year. This amount was not accurately disclosed in the “Commentary on the Financial Statements by the Head of Accounts”. Receivables from security deposits reduced by UGX.53,375,046 from UGX.313,145,225 in the previous year to UGX.259,770,179 as at the end of the year 2019/2020. I was not availed with supporting records to confirm the movement. VAT claims increased from UGX.45,636,374 in the previous year to UGX.70,11,405 in the current year. I was not provided with a ledger showing the specific VAT claims, the VAT supplier numbers, and documents to support the claims for refunds from the tax authority among others. Monthly and end-of-year bank reconciliations were not carried out. In addition, a list of bank accounts operated by the Embassy during the year was not disclosed by the Head of Accounts in his commentary on the Financial Statements. The Embassy’s approved budget for Non-Tax Revenue was UGX.1,570,000,000. I observed that the Non-Tax Revenue budget was not reflected in the Statements of Appropriation. The Mission paid advances to various suppliers amounting to DKK.861,578.82 (equivalent to UGX.479,037,824). Whereas the Financial Reporting Guide, 2018 requires that prepayments are reported separately in the Statement of Cash Flows – as net advances paid and in the Statement of Financial Position as receivables, I noted that these prepayments were missing in both statements. The Embassy lost a court case and subsequently a sum of UGX.27,965,384 (DKK.49,878.51) was awarded and paid in the year 2019/2020. I noted that the Memorandum Statement of Outstanding Commitments did not disclose the details regarding this case and there was no evidence that the funds for settlement of this court case had been budgeted for during the year. Funds amounting to DKK.399,793.77 (equivalent to UGX.225,083,893) were irregularly diverted from the activities on which they were budgeted and spent on other activities for which money had not been appropriated without seeking and obtaining the necessary approval. Payments made to the tune of DKK.109,193.75 (equivalent to UGX.61,221,660) lacked adequate supporting documents. Consequently, I could not confirm that the amounts paid were commensurate to the + + + + +196 + + + + + + + + + + + +works or supplies made by the different payees. + + + +- The Embassy had planned to refurbish the official residence and UGX.300,000,000 was released by the Ministry of Finance Planning and Economic Development (MoFPED) through a supplementary budget for the purpose. However, the refurbishment did not take place and UGX.190,000,000 was returned to the consolidated fund as required by Section 17(2) of the PFMA 2015 while UGX.110,000,000 was diverted. + + + +- Payments to the tune of DKK.171,063.61 (equivalent to UGX.95,910,234) had contradicting supporting documentation attached, payments were unbudgeted for or were incurred for activities which are not the responsibility of the Embassy. + + + +- Salary payments to locally recruited staff at the Mission to the tune of DKK.141,940.00 (equivalent to UGX.79,581,500) were made to two staff but no contract appointment letters were availed to justify them. + +- Out of the budgeted NTR of UGX.1,570,000,000 for the financial year 2019/2020 only UGX.33,780,671 was collected representing performance of 2.15% of the target. The entity did not remit the collected amounts to the consolidated fund by the 31st July following the closure of the financial year contrary to the requirements of the PFMA. + + + + + +- Out of the total receipts for the financial year of UGX.5.642Bn, UGX.5.152Bn was spent by the Mission resulting in an unspent balance of UGX.0.490Bn representing an absorption level of 91.3%. The unspent balance at the end of the financial year was not returned to the consolidated fund account by the 31st July 2020 contrary to the law. + + + +- Out of the 5 outputs with a total of 9 activities and expenditure of UGX.5.152Bn, 2 outputs with a total of 2 activities and expenditure worth UGX.0.467bn were fully quantified, 2 outputs with a total of 5 activities and expenditure worth UGX.4.828Bn were insufficiently quantified while 1 output with a total of 2 activities and expenditure worth UGX.0.372Bn was not quantified at all. Of the quantified outputs, 1 output with 1 activity worth UGX.0.167bn was fully implemented while 1 output with 1 activity worth UGX.0.300bn was partially implemented. + + + +- The Mission did not prepare and submit annual monitoring plans to MoFPED and NPA and also did not prepare and submit quarterly monitoring reports to the Office of the Prime Minister and MoFPED contrary to Paragraph 58 of the Budget Execution Circular for 2019/20. In addition, performance reports for Q1, Q2, Q3 and Q4 were submitted after the deadline for submission. + + + +- I observed that the Head of Mission and the Accounting Officer were absent from the station from March 2020 to June 2020, a period that is critical for preparation and finalisation of the Embassy financial statements. The two officers were under lock-down restrictions in Uganda due to onset of the Covid-19 pandemic. In addition the Finance Attaché was not in office for most of the financial year. This negatively impacted on the operations of the Mission during that period. + + + +- During the month of June 2020, a sum of DKK.152,700 (equivalent to UGX.85,970,100) was paid to Embassy staff for claims for trips that had been undertaken in January and February 2020. I observed that the payments were not adequately supported to justify that the trips were undertaken. + + + +- An officer of the Embassy was paid Foreign Service Allowance for the months of November and December amounting to DKK.23,375.85 (equivalent to UGX.13,160,604) and education allowance amounting to + +197 + + + + + + + + + + + + DKK.37,500 (equivalent to UGX.21,112,500) while on interdiction. Payment of employment benefits to staff on interdiction may be unlawful. The Embassy continued to pay rent for the Finance Attaché’s residence from April 2020 to September 2020 amounting to DKK.133,800.00 (equivalent to UGX.75,329,400), a period during which the residence was not occupied. The Embassy procured 64 items for use at the Chancery and Embassy staff residences involving a sum of DKK.433,707.00 (equivalent to UGX.244,177,283). The procurements were undertaken without adherence to the procurement procedures and were not adequately accounted for. Contrary to the provisions in the law, expenditure amounting to DKK.1,181,215.74 (equivalent to UGX.665,024,462) was irregularly incurred by the Embassy during the month of July out of the expired appropriation and before the first quarter release for the financial year 2020/2021 was received. Prepayments amounting to DKK.566,960.83 (equivalent to UGX.319,198,947) were made to nine (9) suppliers for services including fuel, insurance, water, electricity and heating. The funds were paid before the services were received by the Embassy. Cash amounting to DKK.37,000 (equivalent to UGX.20,831,000) was irregularly withdrawn from the Mission’s corporate bank account by Amb. Elly Kamahungye Kafeero to pay for accounting work done by a non- member of staff living outside Copenhagen. The funds were re-deposited on the Embassy account on 12th June 2020 by Amb. Elly Kamahungye Kafeero after three months because the reasons for which the funds were withdrawn had been suspended. I found it unusual for an amount of money to be set aside for an activity without confirming the total cost of the activity or following procurement procedures to identify a supplier. During the year 2019/2020, the Finance Committee was comprised of the Head of Mission (chairperson), Deputy Head of Mission, Accounting Officer, Finance Attaché, Head of Chancery (Third Secretary) and the Administrative Attaché. I observed that the Committee did not perform its roles of reviewing and approving the budgets and work-plans, monitoring implementation of the annual work-plans and procurement plans, monitoring implementation of internal controls over financial management and ensuring that there is compliance with applicable laws and regulations. +37. Ministry of Foreign Affairs (MOFA). 2020/21OpinionUnqualified  The Ministry has an approved strategic plan for FY 2020/21- 2024/25. NPA had issued a Certificate of Compliance (CoC) to the Ministry, and Ministry Top Management had approved the plan. It is now aligned to the NDPIII. The Ministry collected only 5.7% of its NTR target for the year and had a shortfall in government funding of UGX.19.886Bn which is 30.9% of the budget. The Ministry absorbed 92.3% of the funds that were released. Out of the thirty-two (32) outputs sampled, ten (10) were fully quantified, seventeen (17) were insufficiently quantified and five (5) were not quantified. Out of the ten (10) outputs assessed, seven (7) were fully implemented while three (3) were partially implemented. The Ministry prepared and submitted the annual budget implementation plans and reports as required but failed to accurately report and submit + + + + +198 + + + + + + + + + + + + its quarterly budget performance reports in time. Analysis of the Ministry’s domestic arrears over the past four years showed an increase by 34.2% from 2016/17 to 2020/21. The Ministry had domestic arrears worth UGX.37,436,592,723 from the prior financial year but only budgeted for UGX.6,356,885,823 (17%) in the financial year under review, thus under budgeting. The approved staff establishment of Ministry of Foreign Affairs revealed that out of the approved 362 staff positions, 344 positions representing 95% were filled while 18 positions representing 5% were vacant. +38 Ministry of East African Community Affairs 2020/21OpinionUnqualified  I noted that the Ministry only had a draft strategic plan. NPA had not issued a Certificate of Compliance (CoC) to prompt to management of the Ministry approve the strategic plan. The Ministry budgeted for NTR of UGX.699,000,000 for the financial year 2020/21, however only UGX.12,100,000 was collected representing performance of 1.731% of the target. The ministry absorbed 85.1% of the funds that were released. Out of the fourteen (14) outputs sampled, twelve (12) were fully quantified, while two (2) were insufficiently quantified. Out of the twelve (12) outputs assessed, eight (8) were fully implemented while four (4) were partially implemented. The Ministry neither prepared annual budget monitoring plans nor submitted quarterly budget monitoring reports. The Ministry also failed to submit all its quarterly budget performance reports in time. Analysis of the Ministry’s domestic arrears over the past four years showed a downward trend from 2017 to 2021. As at the close of the financial year a sum of UGX.13,002,369,510 was outstanding. Out of the approved one hundred three (103) staff positions, seventy two (72) positions representing 70% were filled while thirty one (31) positions representing 30% were vacant. +39 The Independent Electoral Commission. 2020/21OpinionUnqualified  The Commission had not finalised the preparation of the strategic plan for the period 2021-2025. The entity budgeted to collect NTR of UGX.4.483Bn during the year under review. Out of this, UGX.31.1Bn was collected, representing a performance of 694% of the target. Out of the total warrants of UGX.671.61Bn received during the financial year, UGX.649.15Bn was spent by the entity resulting in an unspent balance of UGX.21.906Bn representing absorption level of 96.1%. Out of the 9 outputs with a total of 40 activities and expenditure of UGX.671.61Bn assessed, 4 outputs with a total of 10 activities and expenditure worth UGX.51.838Bn was fully quantified, 3 outputs with a total of 16 activities and expenditure worth UGX.499.639Bn were insufficiently quantified while 2 outputs with a total of 14 activities and expenditure worth UGX.97.675Bn were not quantified at all. Of the 4 out puts that were fully quantified with a total of ten (10) activities worth UGX.51.8Bn, 3 outputs with a total of 9 activities worth UGX.50.9Bn were fully implemented, while 1 output with 1 activity worth UGX.0.846Bn was partially implemented. + + + + +199 + + + + + + + + + + + +  An assessment to establish if there has been service delivery from a sample of outputs that were implemented revealed that purchase of motor vehicles and other transport equipment was undertaken but not fully used for the purpose while the Commission continues to pay rent after fully acquiring warehousing space. I noted inconsistencies in the reported performance where all vehicles were reported as received which was not true while reported balances in the financial statements were inconsistent with those reported in the performance reports. I noted that funds to the tune of UGX.4,023,217,397 were irregularly diverted from the activities on which they were budgeted and spent on other activities without seeking and obtaining the necessary approvals. I noted that the Commission has been accumulating arrears in past three years and during the year 2020/2021, UGX.6.959Bn in arrears remained outstanding. The Commission has in the past won cases and was awarded costs to the tune of UGX.336,880,920 but management has not collected these receivables. The Commission procured Biometric Voter Verification Kit and services for the 2021 general election at a cost of UGX.82,894,881,252 and I observed that available kits were not considered while the services were not fully delivered. The Commission entered into two contract agreements with a company to supply 10 double cabin pick-up vehicles at a cost of UGX.1,564,563,350 and 40 double cabin pick-up vehicles at UGX.7,013,387,920 for nomination of the Presidential candidates but by the time of audit, whereas the Commission had paid the full amount, only 32 double cabin vehicles out of the total 50 vehicles procured had been delivered leaving a balance of 18 vehicles. The Commission procured for printing of ballot papers for 2021 general elections at a total cost of UGX.83.855Bn. 248 out of expected 448 pallets were delivered but the Commission had assembled vehicles to carry the entire load which rendered the vehicles redundant and this caused a loss to the Commission in form of hire fees, fuel and allowances. The Commission was required to vacate their current premises by 30th June, 2021 and was subsequently compensated with UGX.22.14Bn by the Uganda National Roads Authority which was transferred to the consolidated fund as non-tax revenue. As a result of the continued delay to implement this critical activity of finding a new home, the Commission is already incurring losses on property acquired and is also likely to cause government to incur litigation costs through UNRA’s failure to completely hand over the construction sites for roads to the contractor. The Commission contracted two law firms for provision of legal services for Presidential petition at a cost of UGX.3,748,550,000 which had been budgeted at UGX.800Million resulting into payment of UGX.2,948,550,000 over and above the budget. Even though the planning for the elections started 3 years back, the procurement was treated as an emergency and there was no basis for the fees charged or detail of how the Commission came up with the market price for the service. + WORKS AND TRANSPORT SECTOR + + + + +200 + + + + + + + + + + + +1 Ministry of Works and Transport (MoWT)Opinion Unqualified  I noted that the entity had prepared a strategic plan. However, this had not been approved by NPA at the end of the year under review. The Ministry did not forecast the NTR to be collected during the year. However, a total of UGX6,995,230,920 was collected during the year. Out of the total warrants of UGX. 1,280.322Bn received during the financial year, UGX. 1,067.967Bn was spent by the entity resulting in an unspent balance of UGX. 212.355Bn representing absorption level of 83.4% The Ministry did not implement some of its planned activities during the year. Examples include: bridge inventory Data for BMS not collected; bridge management System (BMS) Software not procured, and; upgrading to Bitumen Standard Sebbowa road. The Ministry had receivables worth UGX.1,570,776,843 out of which those worth UGX.623,855,947 were outstanding at the end of the previous year. There is likelihood of failure to recover the receivables that have been outstanding for over a year Twenty-one (21) units of district road equipment had been lying in the workshops’ yards for more than a year without repair. The equipment included: thirteen (13) motor graders of different models; four (4) bulldozers; One (1) pickup; two (2) dump trucks, and one (1) wheel loader. Three (3) out of the nine (9) training aircrafts of the East African Civil Aviation Academy in Soroti were grounded due to non-repair and maintenance. The aircrafts were (registration numbers): 5X-RWE grounded due to a defective fuel injector pump; 5X-UAN grounded for mandatory structural modification and 5X -YKM grounded for a propeller overhaul. I observed delayed compensation of PAPs for the development of the New Kampala Port in Bukasa. The valuation report for 2,378 PAPs with a total compensation sum of UGX 29.2 billion was approved by the Chief Government Valuer in October 2018. A total of 1,253 PAPs with a total compensation value of UGX.19.5 billion had been paid by 30th June 2021. As a result a total of 1,125 PAPs with a total compensation value of UGX.9.7 billion have remained unpaid for about three years. Procurements worth UGX 1,772,908,757 which were not planned were implemented by the Ministry, while procurements worth UGX.7,465,000,000 which were planned were not implemented. I observed delayed completion of Kayunga - Nabuganyi and Nansana – Kireka - Bbira roads construction project contracted at UGX 45,349,361,632. The contract provided that the works were to be completed by 01/07/2020. However, by the time of the audit in October 2021, one year and four months after planned completion date, the project works were not yet completed. The acquisition of land for the Right of Way (RoW) for the SGR project has been delayed. The project plan was to acquire 5200 acres of land free of encumbrances at an estimated cost of UGX 534,600,000,000 for the construction of Kampala – Malaba SGR route by October 2016. However, only 1,295.98 (24.9%) acres of land had been acquired at a cost of UGX.95,361,767,388 (18%) as of September 2021. +2 Report on Verification SGS Automotive Uganda Limited For  I was unable to obtain all documents relating to the procurement for my review. From the available records however, it was noted that there were significant delays in the procurement process arising from administrative + + + + +201 + + + + + + + + + + + + Setting Up of Vehicle Inspection Facilities Under the Contract for Provision of Mandatory Motor Vehicle Inspection Services (MVIS). Dec 2021 reviews and court processes. It is also important to note that the High Court had made a ruling in favour of award of the contract to SGS. There were delays in formulation of the statutory instrument covering revision of chargeable rates, negatively impacting on compliance by the vehicle owning public. The responsible Government authorities did not make adequate efforts to enforce public compliance to the mandatory motor vehicle inspection. During the first phase of the contract implementation, the Ministry delayed to formulate a comprehensive public sensitization strategy to create awareness about the mandatory motor vehicle inspection. The stakeholder information sharing system that was required under the contract had not been set up by the time of halting of operations by Parliament and as such key stakeholders have not had the opportunity to access requisite information. The upgrading of the upcountry stations of Mbarara, Mbale and Gulu had not yet commenced. SGS Automotive Uganda had invested a total of UGX.109,856,594,590 in the activities relating to the contract for mandatory vehicle inspection between the SGS and Government of Uganda. +3 Uganda Road Fund.Opinion Unqualified  I noted that the entity had prepared a strategic plan. However, this had not been approved by NPA at the end of the year under review. URF did not forecast the NTR to be collected during the year. However, the Fund collected a total of UGX7,078,800 during the year. Out of the total warrants of UGX. 506.507bn received during the financial year, UGX. 506.296 Bn was spent by the entity resulting in an unspent balance of UGX. 0.211Bn representing an absorption level of 99.96%. The unspent funds were swept back to the consolidated fund as required by the PFMA The Authority did not implement some of its planned activities during the year. Examples include: Production of quarterly reports on the status and functionality of District Road Committees; Recruitment and substantive appointment of staff and; Review and calibration of the funds allocation formula. The Fund did not collect the funds provided for under section 21 of the URF Act 2008 which mandates the Fund on recommendation by the URF Board to charge road user charges which include fuel levies, international transit fees from vehicles entering the country, road license fees, axle load fees, and bridge and road toll fees. I noted that the fund allocation formula was last reviewed by the Secretariat in 2019. In addition, during the year, the formula was not reviewed to provide for current situations such as budget cuts and Covid- 19 pandemic effects which led to disproportionate transfers to designated agencies. Procurements worth UGX 642,234,236 had delays ranging between 1 and 93 working days. For example; the contract for provision of Motor Vehicle maintenance services under framework contract was delayed by 93 days and the contract for supply, delivery and installation of I-pads for URF Board members was delayed by 15 days. There were inadequate monitoring Designated Agencies. Out of the 203 designated agencies supposed to be monitored, only twenty-seven (27) Agencies representing 13.3% of the total designated agencies and sub + + + + +202 + + + + + + + + + + + + agencies were monitored during the year. Whereas URF had central stores under the charge and control of the Administrative Officer, the entity did not have a proper stores management system that is recommended in the Treasury Instructions. +4 Uganda National Roads Authority. 2020/21Opinion Qualified  A total of UGX 124,367,095,163 representing 21.58% of the spent funds for the sampled planned outputs was diverted from the budgeted projects to other projects contrary to the above provision. There was no evidence that the reallocations/diversions of such magnitude were authorized either by Parliament or the relevant funders. The Authority over-budgeted funds for salaries. The over budgeted funds were diverted from the salary provisions to capital development activities. The diversion of funds led to a misreporting in the financial statements of UGX 4,689,704,394. I noted that the UNRA did not have an approved five year vote strategic plan by NPA to facilitate operationalization of the NDP III infrastructure sector priorities during the first year of NDP implementation. UNRA did not forecast the NTR to be collected during the year. In addition, there was no documented revenue collection plan detailing how much to be collected and revenue sources. However, UNRA collected a total of UGX3,894,306,295 during the year. I also noted that MoFPED set a target of UGX10.76bn to be collected in NTR by UNRA during the year under review; there was no reconciliation between the Ministry of Finance, Planning and Economic and Uganda National Roads Authority on the planned revenue to be collected. The UNRA budgeted to receive UGX. 3,918.151 bn out of which UGX. 3,787.289 bn was availed, resulting in a shortfall of UGX 130.863 bn, which is 3.34% of the budget. I noted that UNRA did not have unit cost estimates at activity level to provide a link between inputs, processes, outputs and intermediate outcomes realized during the year. The Authority failed to implement several planned activities during the year. Examples include: construction of 10 km - equivalents along package 6 (Karugutu - Ntoroko and Kabwoya - Buhuka); construction of 10 km - equivalents along Rwenkunye- Apac- Lira-Acholibur road; civil works for the construction of UNRA offices; works for construction of Kamdini Weigh station, and; construction of Wanseko Ferry landing site. Contrary to the Land Acquisition Act CAP 226, I noted that for the Hoima- Butiaba-Wanseko Road Project, UNRA did not submit a request to the Ministry of Lands to declare the land identified for the road project as land of interest. I observed delays in payments for Project Affected Persons on two roads audited. Out of the sampled 221 PAPs for Hoima-Wanseko, 136 PAPs with properties worth UGX 6.2 billion were paid after the specified six-month period. For KJE project, out of 234 PAPs sampled, 229 PAPs with properties worth UGX 70.2 billion were paid after the specified six-month period. According to the Kampala-Jinja Expressway Resettlement Action Plan Implementation Progress report of May 2020 – August 2021, a total of 219 PAPs required physical resettlement. It was noted by the time of the audit that 13 resettlement sites had been identified and these were being assessed for suitability. However, although the process of engaging a provider to support UNRA in developing housing options and building the + + + + +203 + + + + + + + + + + + + agreed resettlement houses was initially scheduled to be completed by December 2020, no contractor had been procured for this purpose by the time of the audit in September 2021, implying a delay of over 9 months. Significant delays in subdivision, demarcation and transfer of titles for fully acquired plots were observed on the Kampala-Jinja Expressway and Hoima-Wanseko Road projects. The Authority had an outstanding balance of UGX 215,059,225,419 in terms of payables at the year end. This figure increased by UGX 73,885,957,262 (52.3%) from the previous year’s amount of UGX 141,173,268,157. It was observed that the bulk of this amount is comprised of unpaid certificates to contractors which yield interest due to delayed payments. Authority made payments amounting to UGX 17,078,565,465 as a result of penalties for the court cases and interest on delayed payments of advances and IPCs invoices from various projects. This is a loss to Government. The value of the Authority’s infrastructure assets at the end of the financial year was disclosed as UGX10,417,198,881,566. However, contrary to the policy requirement to revalue the assets every three years, I was not availed with any valuation report for the infrastructure assets to confirm that the assets had ever been valued. 35 road projects with a total contract value of USD.398,427,063.99 and UGX. 149,739,813,845 that were to be completed during the year were still on – going by the close of the year. Three civil cases with claims totaling to UGX6.991bn were brought against UNRA due to its failure to return residue land titles to the registered proprietors. +5 Uganda Civil Aviation Authority. 2020/21Opinion Unqualified  I noted that the entity had prepared a strategic plan. However, this had not been approved by NPA at the end of the year under review. UCAA budgeted to collect internal revenue of UGX 293bn during the year under review. Out of this, only UGX 114.991bn was collected, representing a performance of 39.2% of the target. UCAA absorbed all its revenue collected, and accrued expenditure in unpaid bills that is. its actual expenditure was more than the revenue. The Authority did not implement some of its planned activities during the year. Examples include: Capital projects for Regional Airports, KOICA Counterpart funding, and procurement of a fleet management system, updating the master plan and constructing the ground surface car park. There was an increase in trade and other receivables of UGX. 12,279,645,000 (equivalent to 25%) from UGX. 48,854,526,000 to UGX.61,134,171,000. The delayed collection of the receivables may lead to bad debts. Management reported an increase in trade payables of UGX 21,763,762,000 (equivalent to 47.9%) from UGX 45,470,736,000 to UGX 67,234,498,000. The Authority had accumulated receivables of up to UGX 96,569,511,580 in the FY 2019/20 due from Government Agencies. In the year under review, there was no follow up of this debt to the Government agencies, and no amounts were cleared. The Authority made a loss for the year under review amounting to UGX 29,321,645,000. Because of the loss, the Authority did not have capacity + + + + +204 + + + + + + + + + + + + to cover any potential interest accruing on its long term loans in view of its earnings. Along with the lack of potential to cover loan interest, the Authority had a significant long term liabilities portfolio on its balance sheet, which majorly comprised of the loan from Exim Bank of China. Prime Media’s contract ended with a debt of UGX 1,131,017,128 which was unpaid for the year before the expiry of the contract. UCAA has multiple systems operating in different departments which are tailored for the operations in the respective departments. A review of these systems revealed that some were not functional, not interfaced with other complementary system(s) and/or some of their modules were not working. Further, the IT Point of Sale System bought for tracking of revenue from concessionaire shops was out of date. The Exim Bank loan terms to UCAA were renegotiated and this was to be formalized into an addendum agreement, to ensure that they are manageable. However, the addendum to the contract terms had still not been made by the time of this audit. +6 Uganda National Airlines Company Ltd (UNACL). 2020/21Opinion Qualified  UGX 8,716,398,000 was disclosed as the value of the inventories in the statement of financial position. However there was no evidence that Management carried out end of year stock taking to get actual values of inventories. In addition, there were no stores ledgers for engineering stores, and although the general stores had manual ledgers, the ledgers were not capturing Goods Received Note reference numbers (GRN) against the receipts in the ledgers as a reference of the goods received. I noted that the entity did not have a strategic / business plan aligned to NDPIII. UNACL budgeted to collect internal revenue of UGX 304.6bn during the year under review. Out of this, only UGX 48.6bn was collected, representing a performance of 16% of the target. The Company did not implement some of its planned activities during the year. Examples include: Procurement of spare parts for the Airbus fleet; supporting 32 pilots for A330-800 neo type training, and; supporting 60 pilots in simulator training. The company had payables totaling UGX.47,032,043,000. All the outstanding invoices were payable to UCAA. Out of the amount, payables totaling UGX 16,065,309,363 had been due for more than 6 months. UGX 1,127,484,315 as the value of Property Plant and Equipment In the statement of financial position and the corresponding note (Note 12) as at the close of the financial year. However, it was noted that assets were not engraved to give them an identification number for easy of identification. It was also noted that the assets could not be traced in the assets’ register due to lack of identification numbers. I carried out financial analysis of UNACL financial performance and observed that the Company had made losses for the year 2019/2020 and 2020/2021 amounting to UGX102.442bn and UGX164.573bn respectively. On review of the operating margin, I observed that the costs before considering interest and taxes exceeded company revenues for the two years. I also observed that due to the losses incurred, the Company generated negative return on assets of 12.2% for the year 2019/2020 and 13.1% for the year 2020/2021. The Company’s revenue is still far below its assets. UACL implemented twenty-five (25) procurements outside the approved procurement plan for the FY 2020/2021. The procurements were made in + + + + +205 + + + + + + + + + + + +different currencies amounting to (for each currency); Euro 1150,854.06, Kenya Shillings 61,879.2, USD 65,441.36, Tanzania Shillings 7,752,600 and UGX 346,738,939. + + + +- A purchase Order was made for the supply of inflight equipment at a price of USD 25,694.46 (VAT Exclusive) without the approval of the Contracts Committee. + + + +- Two companies submitted bids for specialized motorized equipment used in ground handling of aircraft. The companies failed the preliminary stage (compliance), however, the Evaluation Committee did not cancel the evaluation process. The contract manager was not appointed and the delivery was not witnessed. + +- USD 8,620.7 vide payment voucher No PV07/21/072 was paid to DAS Air as rent for the month of April 2021. Further to the above a review of invoices revealed that DAS Air had billed Uganda Airlines a total of USD 43,103.5 for unpaid ground rent. However, Uganda Airlines had not made any tenancy agreement with the DAS air, and there was no handover report from Uganda Airlines to DAS Air. + + + +- UGX 103,532,800 (USD 28,000) was paid to the supplier vide payment voucher No. PV09/20/025 dated 4/9/2020. The vehicle was purchased through direct procurement without proper justification. + + + + + +- Uganda National Airlines Limited made a contract agreement with M/s Ninesun Manufacturing Limited for supply of inflight service equipment for airbus at a contract amount of USD 319,226.86. The items were said to have been delivered to DAS Air. I was not provided with evidence that the items were actually delivered, witnessed for quality and quantity and handed over to DAS Air stores. + + + +- UNACL concluded the procurement of a contractor for the provision of an Enterprise Resource Planning (ERP) software solution at a contract sum of USD 1,066,910 (VAT Exclusive) as well as the provision of an integrated Passenger Service System at a contract sum of USD 1,234,441 (VAT Exclusive). The procurements were conducted and finalized without seeking the necessary approvals from NITA-U. + + + +- The company issued a purchase order on 27/01/2021 to M/s Stelia Aerospace for Supply of critical spare parts for business class seats for A330-800 NEO at a price of USD 146,230.72. I was however not provided with the contract for the supply. + + + +- From the 20 procurements sampled, I noted that neither was there Accounting Officer’s appointments of contract managers nor were there contract management files. The procurements were made in different currencies amounting to (for each currency); Euro 212,050.67, Kenya Shillings 12,253,905.74, USD 109,803,962.54 and UGX 347,242,879. + + + +- The Company did not have a Board approved staff structure and establishment to assess staff recruitment needs and staffing status, and did not have approved staff salary grades. This affected proper planning and budgeting for staff costs. As a consequence, the Company incurred excess expenditure of UGX 4,919,238,464 (USD 1,333,008) on salaries and staff expenses. + +- There has been delayed conclusion of suspension cases. On 21st of April 2021, some HoDs were suspended for a period of 3 months (effective 29th April, 2021) to enable the appointed committee to investigate and report on stated allegations. Review of the staff files revealed that there were no committee resolutions on the cases and as a result Management extended the suspension on 20th August 2021 for another 3 months. + + + +206 + + + + + + + + + + + + Since the affected staff remained on the same terms of contract, the officers appointed to act in their positions receive extra pay implying double payment for the same position. As a consequence, the company has lost a total of UGX 2,319,017,267 in a seven months’ period (May to November 2021). +7 Uganda Railways Corporation. 2020/21Opinion Qualified  The Corporation had Non-current assets worth UGX.3,525,540,249,000 as at 30th June 2021. However, this figure included a total of UGX.6,012,000,000 in respect of Kabalega ferry (UGX.5,760,000,000) and Barbus ferry (UGX.252,000,000) which sunk under water twenty five years and sixteen years respectively. Since the ferries have been out of use under water for a long time without retrieval and cannot be disposed of while under water, it cannot be determined whether they still hold the value indicated to the Corporation. The Corporation had GoU equipment loans amounting to UGX.22,067,482,000 at the beginning and end of the year under review. Out of this loan amount, loans totalling UGX.16,511,595,000 (other than the Spanish Government loan) were not supported and did not show any movement over the last four (4) years. Interest arising from loans that was yet to be cleared by URC amounted to UGX.9,511,880,000. However, this balance has been outstanding over several years without any movement. The status quo still remained the same by the close of the year under review. This interest payable was not supported by any original documentation. Trade and Other Payables increased from UGX.17,937,602,000 at the beginning of the year to UGX.21,513,931,000 at the close of the year. Out of the amount, trade and other payables worth UGX.9,753,781,407 lacked supporting documents such as LPOs, contracts, inward invoices, claims and demand notes. The Corporation had Trade and Other Receivables of UGX.75,637,890,000 as at 30th June 2021. The figure includes UGX.69,516,000,000 due from Government in respect of the Nsambya land. This amount has remained un-paid to URC for too long despite Government having disposed of the land to the public long ago implying that the Corporation may never be compensated for its land. URC budgeted to collect internal revenue of UGX 120.49 during the year under review. Out of this, only UGX 54.6bn was collected, representing a performance of 45.3% of the target. The Corporation did not implement some of its planned activities during the year. Examples include: Sleeper reconditioning; Kampala Station not fencing; Tororo Station Roof Repairs and; Rehabilitation of Steel Mill Jinja siding. The Corporation made losses for the past two years; UGX 37,783,152,000 (2020/2021) and UGX 66,151,318,000 (2019/2020). The Corporation’s losses and the ratios computed are an indication that Uganda Railways Corporation is not performing well in terms of profitability and ability to sustain provision of services without further Government intervention for funding and Management strategies to improve revenue generation. Management did not assess impairment of assets despite existence of impairment indicators. For instance, rental properties were being charged below market value. Uganda Railways Corporation land worth UGX.91,832,636,500 lacked land titles as evidence of URC’s rights to own and use the property. Management’s efforts to secure the land titles appear remote. Lack of + + + + +207 + + + + + + + + + + + + land titles has led to heavy encroachment and grabbing of the Corporation’s land. URC procured four (4) used locomotives at UGX.41,323,768,935. I noted that the bidder did not comply with some requirements within the bid document which were supposed to be the basis of evaluation. Despite the non-compliance at the preliminary stage, the bid was evaluated at the Technical stage without following procurement regulations. Government signed an agreement with Mango Tree (U) Ltd for the rehabilitation and upgrade of the Pamba ferry. However, the vessel was still grounded after a year of signing the agreement. An officer of URC irregularly signed to transfer land measuring 4.452 hectares in Lira (under FRV 220 Folio 13). The land was subdivided into plots 41-63, 52-62, 42-50 and the titles were being processed. Jinja Municipal took part of URC land in Jinja (6.3 acres) and gave it out to 58 developers, without consultation with the Corporation. +8 Busega-Mpigi Road Project (Uganda National Roads Authority) 2020Opinion Unqualified  I observed slow progress in Construction works and accumulation of loan charges. As of June 30th 2020, the contractor had only achieved physical progress of 0.13% against 12.77% planned cumulative progress. The total time lapse since commencement of the construction works was 7 months constituting 24.26% of the total contract duration yet only 0.13% construction work had been achieved. Slow progress in Construction works has led to continued accumulation of both Commitment and Service Charges that amounted to UGX 2,921,803,802 and UGX 5,802,593,707 respectively as at the reporting date. UNRA reallocated GOU counterpart funding to other projects for the year ended 30th June, 2020. A total of UGX 320,077,550 was reallocated from the project to other projects. The reallocations delay project progress. +9 Busega-Mpigi Road Project (Uganda National Roads Authority). 2021Opinion Unqualified  I observed slow progress in Construction works and accumulation of loan charges. As of June 30th 2021, the contractor had only achieved 3.42% against 29.18% planned cumulative progress. The total time lapse since commencement of the construction works was 19 months constituting 64.01% of the total contract duration yet only 3.42% construction work had been achieved. Slow progress in Construction works has led to continued accumulation of both Commitment and Service Charges that amounted to UGX 3,224,867,623 and UGX 7,140,345,245 respectively as at the reporting date. I observed failure to procure Prefabricated Pipe Culvert Units to the project which is delaying project progress. The contractor could not progress through pipe culvert installation due to lack the culverts. There were delays in payments to the contractor that are likely to lead to interest charges. I observed that on 2nd June 2021, the contractor issued IPC No. 3 amounting to UGX 8,303,000,336 which was unpaid by 30th June, 2021 and interest on the late payment was due to commence on 28th July 2021. I observed delayed possession of site and land take over by the contractor. By 30th June, 2021, land acquisition was at 54.8% or 14.605 km of the main expressway where access to and possession was granted. It is to be noted that 100% access to and possession should have been formally handed over after 18 months (that is; 22nd May 2021) from commencement. UNRA reallocated GOU counterpart funding to other projects for the year ended 30th June, 2020. A total of UGX 1,956,237,995 was reallocated + + + + +208 + + + + + + + + + + + + from the project to other projects. The reallocations delay project progress. +10 Kapchorwa-Suam Road Project (Uganda National Roads Authority) 2021Opinion Unqualified  I observed delayed access and possession of site by the contractor. The last section of the road (from km 48+000 to km 073+000) was granted to the contractor on the 14th of June 2021 which is after 888 days. Further, additional land acquisition is still under progress from Km33+000 to Km73+000. Civil works from Km 46 to Km 58 have been put on hold pending additional land take especially for slope protection. It was also noted that new structures were being erected in the road reserve at Km17+692 and KM5+430. I observed delays in execution of Project civil works. UNRA engaged M/S China State Construction Engineering Corporation Ltd on the 7th May 2018 to upgrade Kapchorwa-Suam road for a period of 36 months, with effect from 1st October 2018. There was an extension of time of 4.5 months up to 15th February 2022. Based on the extension of time, the time lapse as at 30th June 2021 was 33 months that is 81.40 %. However the reported cumulative physical progress for civil works was 43.14% with no active works from Km 55 to km 73. +11 Road Sector Support Project 4 – Kigumba-Masindi- Hoima-Kabwoya Road (2021) (Uganda National Roads Authority). 2021Opinion Unqualified  I observed delayed completion of civil works on Upgrading of Bulima – Kabwoya Road (Lot2).The project commencement date was 1st December 2015, and the initial completion date was after 30 months on 31st May 2018. Successive revisions of completion dates extended the construction period by a further 22 months with the last revised completion date being 27th March 2021. A certificate of substantial completion was issued in January 2021, and the contractor allowed 12 months as the Defects Liability Period, expiring on 27th January 2022. The snag list included two main items; the construction of Hoima Town Roads and a way bridge. I observed delayed completion of civil works on Upgrading of Kigumba – Bulima Road (Lot1). The construction period was for 30 months (after commencement in March 2018), elapsing on 31st August 2020. When the Audit Team visited the site in September 2021, (42 months after commencement), the attained level of completion was approximately 95%. However, the new proposed completion date of 31st August had passed and no new completion date had been communicated. There were delays in payment of lot1 supervision fees. By the time of my audit, the Lot 1 Supervising Engineer’s unpaid invoices had accumulated to Euros 661,605 for the foreign component of the contract and UGX 1.38bn for the local component. The delays are likely to impact on the Engineer’s ability to perform the contractual obligations and in turn impact on the progress of the construction works. +12 Albertine Regional Sustainable Development Project (ARSDP) (Uganda National Roads Authority). 2021Opinion Unqualified  I observed delayed implementation of civil works (Upgrading of Kyenjojo- Kabwoya Raod – 100km). The duration of the contract was 36 months (from 5th April 2016 to 4tth April 2019) excluding the Defects Liability Period. There were two extensions of time; the first one for 818 days i.e from 4th April 2019 up to 30th June 2021 and the second one for four months from 1st July 2021 to 31st October 2021. The right of way for the last section, Km 0 to Km 30 was handed over to the contractor on the 14th September 2018. However, as per the monthly report No. 63 for the month of June 2021, the progress of works was reported as 94.83% against planned of 96.27%. In addition to this, the contractor was supposed to substantially complete and hand over 30% of works within 180 days of the commencement date. However, as at 30th June 2021 + + + + +209 + + + + + + + + + + + + (1,912 days) no section of the road was handed over and UNRA. There were significant defects on the road works. I observed failure of road shoulders, lined drain and a speed hump at KM88+678. It was also observed that the contractor continued to construct line drains on steep slopes without scour checks. I also observed poor quality works on some sections of the road construction. For example: poor visibility on the right-hand side of river Nguse bridge and also inadequate protection between the end of stone pitching and the stream at the bridge; noticeable bleeding at Km 52+511, failed line drain at Km71+200 RHS and damaged guard rail at km72+921 RHS; maintenance of the completed sections was poor with overgrown grass and silted drainages especially from Km 51 to Km 100, and; pedestrian walkways were not provided for in the design of Kagadi town roads which were under construction at time of the audit. I noted lack of adherence to the insurance contract. The ICEA Workman’s Compensation Policy No 110-A2506044-18 covering the period 18th January 2021 to 17th February 2022 indicated that the number of staff insured are 181 only with neither the names nor the number of staff under each category/designation indicated but the monthly progress reports, the PAYE and NSSF returns for the period under review indicated that the contractor has over 400 staff. Further, the contract required that the insurances are in the joint names of the parties that is; UNRA and the contractor. However, the UAP Old Mutual contractor’s All Risk Policy No 0000461578 and the ICEA Motor Commercial Policy No. 080-A2-105193- 17 indicate that the insured was only the contractor. Work Permits for all the foreign consultant’s and contractor’s staff were not provided for review. In the absence of the work permits for the foreign staff, the implication is that the expatriate staff are working irregularly in Uganda irregularly and this may lead to deportation, which will in turn affect the progress of work. +13 Road Sector Support Project 5 (Upgrading of Rukungiri- Kihihi-Ishasha/Kanungu and Bumbobi-Lwakhakha Roads (Uganda National Roads Authority). 2020.Opinion Unqualified  I observed significant delays in Project implementation. During the FY 2019/20, Project disbursements from ADF amounted to UA 6,679,508.53. From the signed loan amount of UA 70,000,000, only UA 24,672,103.72 representing 35% of the signed loan amount had been cumulatively disbursed through direct payments for Project expenditures as at 30th June 2020. However, 91% of the original project implementation time had elapsed as at 30th June 2020. Civil works for the upgrade of Bumbobi-Lwakhakha 44.5km road had attained 84% physical progress as at 30th June 2020 versus time progress and planned physical progress of 91%. The financial progress stood at 83% against plan of 92% as at 30th June 2020. For the upgrade of Rukungiri-Kihihi-Ishasha/Kanungu (78.5km), 19.24% cumulative physical progress had been achieved as at 30th June 2020 although 33.4% was planned to be completed. During the FY 2019/20, UGX 3,033,479,790 (28%) of GOU counterpart project funds were re-allocated to other Projects. Re-allocation of Project funds to other projects invalidates the approved plan for implementation of RSSP-V activities. UGX 267,083,716 was paid as interest on delayed payments. Such costs are un-necessary and represent unbudgeted expenditures which affect funds ear-marked for implementation of planned Project activities. UGX 226,500,820 had been paid to Government agencies (votes) including sub-counties and town councils during the FY 2019/20. These payments constitute revenue received for purpose of Government and + + + + +210 + + + + + + + + + + + + should have been paid directly to the Uganda Consolidated Fund. Financing charges were accumulating due to low utilization of the loan funds. Total charges of UGX 3,912,848,969 accrued on the disbursed and undisbursed loan balances during the FY 2019/2020. This is comprised of UGX 3,079,241,588 (79%) being charges on the undisbursed loan balances during the year and UGX 833,607,381 (21%) being charges on the disbursed loan amounts. +14 Road Sector Support Project 5 (Upgrading of Rukungiri- Kihihi-Ishasha/Kanungu and Bumbobi-Lwakhakha Roads (Uganda National Roads Authority). 2021Opinion Unqualified  I observed significant delays in Project implementation. During the FY 2020/21, Project disbursements from ADF amounted to UA 10,235,407.97 resulting into cumulative disbursements of UA 34,907,511.69 (representing 49.9% of the signed amount of UA 70,000,000). Whereas the upgrading of Bumbobi-Lwakhakha (Lot2) 44.5km road had been substantially completed and the road was handed over to UNRA by the Contractor on 21st December 2020, the upgrading of Rukungiri-Kihihi- Ishasha/Kanungu (Lot1) 78.5km stretch had attained cumulative physical progress of only 42.6% completion rate against planned progress of 55.1% as at 30th June 2021. As at 30th June 2021, only 18 months (19.6%) time were left to the end of the extended Project implementation time of 31st December 2022. It is unlikely that UNRA will complete the 57.4% works outstanding (planned) for the upgrade of Rukungiri-Kihihi-Ishasha/Kanungu road in the agreed timelines. During the FY 2019/20, UGX 3,822,002,388 (36%) of GOU counterpart project funds were re-allocated to other Projects. Re-allocation of Project funds to other projects invalidates the approved plan for implementation of RSSP-V activities. UGX 150,255,638 was paid as interest on delayed payments. Such costs are un-necessary and represent unbudgeted expenditures which affect funds ear-marked for implementation of planned Project activities. Financing charges were accumulating due to low utilization of the loan funds. UGX 3,770,851,261 was accrued on the disbursed and undisbursed loan balances with ADF during the FY 2020/2021. This is comprised of UGX 2,620,478,974 (69%) being charges on the undisbursed loan balances during the year and UGX 1,150,372,287 (31%) being charges on the disbursed loan amounts. For the last two financial years (FY 2019/20 and 2020/21), total charges of UGX 7,683,700,230 had accrued on the loan balances with ADF. This is comprised of UGX 5,699,720,562 (74%) being charges on the undisbursed loan balances and UGX 1,983,979,668 (26%) being charges on the disbursed loan balances. +15 Upgrading of Tirinyi-Pallisa- Kumi and Pallisa-Kamonkoli Road project (Uganda National Roads Authority). 2020  The Authority was made to pay interest as a result of delay to pay the contractor’s approved interim payment certificates (IPCs). The contractor invoked clause 14.7 and 14.8 of GCC and charged interest of UGX 373,044,074.47 for IPCs 1-6. Another interest amount of UGX 166,845,192 was paid for IPCs 11,12,13,14. The total interest paid for the delayed settlement of the IPCs amounted to UGX 539,889,266. These interest payments could have been higher if the dollar amounts had not been negotiated downwards by USD 108,262.29 due to disagreements in computations. During the FY 2019/20, UGX 892,920,000 of Project funds were re- allocated to other Projects. Re-allocation of Project funds to other projects overrides established budgeting procedures. There were delays in recruitment of the Project consultant. In the period 15th March 2018 to 26th April 2021, there was no Project consultant procured to carry out supervisory roles for upgrading the Tirinyi-Kumi- + + + + +211 + + + + + + + + + + + + Pallisa-Kamonkoli Road Project. In this period, the Directorate of Roads and Bridges Development of UNRA stepped in to carry out design review and supervisory roles in addition to their other activities. Recruitment of the Consultant, AECO (Abuljebain Engineering Consulting Office) delayed until 15th March 2021 and they commenced work on 26th April 2021 four months when the project physical progress was already at 92.51% and in time progress was 37.3 months (103.6%) to completion. The Consultant’s first report was in the month of May 2021. I observed delays in payment of Project Affected Persons. As of 30th June 2021 payment of PAPs was still incomplete with a total of 156 PAPs not yet paid. Tirinyi Pallisa Kumi (Lot 1) had 100 PAPs for land measuring 80.06 acres while Pallisa Kamonkoli road (Lot 2) had 56 PAPs not paid for 27.318 acres of land (by May 2021) +16 Upgrading of Tirinyi-Pallisa- Kumi and Pallisa-Kamonkoli Road project (Uganda National Roads Authority). 2021  There were overpayments to the contractor in interim payment certificates numbers 25 and 26 amounting to UGX 8,613,048,720 (USD 2,556,164.89). These payments were meant for supervisors who had not been recruited. During the FY 2020/21, UGX 4,083,247,683 of Project funds were re- allocated to other Projects. I did not see any revised schedule submitted to MoFPED for onward approval by Parliament. Re-allocation of Project funds to other projects overrides established budgeting procedures. In 2019/20, I noted that Management incurred interest charges of UGX 539,889,266 in respect of 10 IPCs (1,2,3,4,5,6 and 11,12,13,14). However as of 30th June 2021, there were still 14 other interim payment certificates (Nos 7,8,9,10,16-23, and 25-26) whose payments were delayed making them eligible to interest charges. There have been delays in project completion. Completion dates for project works were on 14th March 2021 for Lot 1 and 14th June 2021 for Lot 2 respectively. As of 30th June 2021, both Tirinyi-Pallisa-Kumi and Pallisa-Kamonkoli Road had not been completed as planned. Based on linear sections completed to final Asphalt surfacing, Lot 1 was 95.58% complete while Lot 2 was at 98.09%. There was no documented plan for assets (housing units) built both in Lot 1 and Lot 2 currently used by the contractors and consultants as their accommodation after they have left. These units number approximately 28 permanent houses (2 type I houses, 6 type II houses 4 type IV houses) and multiple accommodations and engineer’s offices that have been constructed in land owned by UNRA. I noted delays in relocation of utilities to pave way for road works. Five sub-contractors were approved by UNRA to relocate electricity, water lines and boreholes in Pallisa, Kumi, Mukongoro and Tirinyi towns at a total cost of UGX 1,517,595,734. As of 30th June 2021, work valued at UGX 1,260,024,061 had been certified and paid. The remaining works valued at UGX 257,571,673 were not yet completed. There were disagreements between the consultant and the contractor on tests of completion on sections already handed over to the employer before certification. The disagreements are likely to cost Government interest charges if not timely resolved. +17 North Eastern Road- Corridor Asset Management Project (Uganda National Roads Authority) 2020/21  The Project did not have an annual work plan and budget prepared for implementation of its activities. Also, quantification of Project outputs was not done for the financial year audited. I observed delays in Project implementation. From the signed loan + + + + +212 + + + + + + + + + + + + amount of XDR 157,600,000 (Equivalent to USD 243,800,000), only XDR 22,916,350.66 (USD 32,780,000) representing 14.5% of the signed loan amount had been cumulatively disbursed for implementation of the project activities as at 30th June 2021. It should be noted that 65% of the project implementation time had elapsed as at 30th June 2021. Implementation of civil works (road rehabilitation, improvement and routine maintenance works) under component 1 had hardly progressed. There was under absorption of released project funds. Total IDA funds available during the year were USD 8,090,898.12 (being opening fund balance of USD 4,920,898.12 and additional disbursements of USD 3,170,000 on 23rd October 2020). However, only, USD 4,457,669.32 was spent on implementation of project activities representing funds absorption level of 55%. Out of the GoU counterpart funds of UGX 3,034,260,000 released in the FY 2020/21, only UGX 765,831,419 (25%) was spent on implementation of the Project activities. The balance of UGX 2,268,428,581 (75%) was reallocated to other projects. Management did not avail the authorization used as basis to reallocate the funds to other projects. There has been accumulation of higher financing charges due to the low utilization of the signed loan. Charges of UGX 4,703,471,276 (being service charges and commitment charges of UGX 840,691,467 and UGX 3,862,779,809 respectively) were accrued during the FY 2020/21. Cumulatively, total charges of UGX 27,201,439,219 (being service charges and commitment charges of UGX 2,734,784,077 and UGX 24,466,655,142 respectively) have been accrued since loan signature on 16th February 2015. +18 Masaka-Bukakata Road project (2021) (Uganda National Roads Authority) 2020/21  Project funds to the tune of UGX 262,339,751 were reallocated from the activities on which they were budgeted and spent on other activities without seeking and obtaining the necessary approvals. I observed delayed payment of Interim Payment certificates (IPCs). IPCs 9, 12, 13, 14, 15, 17 and 18 were delayed beyond the agreed contract timelines. Delays in payment could result in nugatory expenditures in form of the interest charged by the contractor. The contractor submitted an interest certificate in June 2021 amounting to UGX 523,120,000 in respect of interest on delayed payments of IPCs no. 1 to 9. The delayed payment of the IPCs led to wasteful expenditure of UGX523,120,000 in interest to the contractor. In my previous year report, I noted that out of 1,282 PAPs compensated with land approx. 341.7162 Acres, none of the titles had been transferred to Government, that is; neither to the names of Uganda National Roads Authority nor to Uganda Land Commission. I observed that this key factor to land ownership had not been addressed during the year. + LANDS SECTOR +1 National Physical Planning Board 2020/21Opinion Unqualified  Out of the budgeted revenue of UGX.6.0 Bn, UGX.5.29 Bn was realised, resulting in a shortfall of UGX 0.710 Bn, which is 12% of the budget, Out of the total receipts for the financial year of UGX 5.29, Bn, UGX 2.945 Bn was spent representing an absorption level of 56%. I noted that three (03) outputs with a total of three (03) activities and planned expenditure of UGX 0.760 were fully quantified. One (01) output with five (05) activities was insufficiently quantified while (04) outputs with a total of four (04) activities whose expenditure was not established, + + + + +213 + + + + + + + + + + + + were not quantified at all. One (01) output with one (01) activity and expenditure worth UGX 0.452 Bn was fully implemented., two (2) outputs with two (02) activities worth UGX.0.308 Bn were not implemented. I noted that out of the approved staff structure of thirty five (35) positions, no position was substantively filled. The Board had only three (3) staff on secondment and twenty six (26) on assignment of duties. +2 Ministry of Lands, Housing and Urban Development 2020/21Opinion Unqualified  Out of the budgeted NTR of UGX.5.500Bn for the financial year 2019/2020 only UGX.5.480Bn was realized, representing a performance of 99.6 % above the target. The Ministry budgeted for UGX.74.32Bn in Government receipts, out of which UGX.71.13Bn was warranted, resulting in a shortfall of UGX.3.19Bn which is 4.29% of the budget. Out of the total receipts of UGX.71.12Bn, UGX.69.13Bn was spent resulting into an unspent balance of UGX.1.99Bn representing an absorption level of 97.2%. The balance unspent was subsequently swept back to the consolidated fund at the end of the financial year. I sampled 34 outputs with a total of 175 activities and expenditure of UGX 57.908Bn and noted that 15 outputs with a total of 67 activities and expenditure of UGX.12.45Bn were fully quantified. Fifteen (15) outputs with a total of 92 activities and expenditure worth UGX.42.35Bn were insufficiently quantified. Four (4) outputs with a total of 16 activities and expenditure worth UGX.3.11Bn were not quantified. I assessed the implementation of 15 fully quantified outputs with a sample of 67 activities worth UGX.12.45Bn and noted that three (3) outputs with a total of three (3) activities worth UGX.0.456 Bn were fully implemented. Twelve (12) outputs with a total of sixty-four (64) activities worth UGX.11.99Bn were partially implemented. I noted that the Ministry’s Payables amount increased by UGX.105,145,022,390 from UGX.144,329,975,873 in the previous year to UGX.249,474,998,263 in the current year. In addition, UGX.11,593,918,200 of the new compensations related to private persons that had been included among the ranchers to be compensated, but lacked ranch title number, area of land lost and other details recorded in the domestic arrears schedule. I noted a recognized NTR amount of UGX.1.7billion relating to proceeds from the sale of government pool housed had no proper documentation. I noted that Parliament approved a payment of UGX.3,802,500,000, as compensation for Ndeeba Land but the payment was halted by an interim court order. I noted that the Ministry compensated the claimant of land at Block 237 plots 29,48,56,59 and 67 at Mutungo for a sum of UGX.26.4 Bn which had earlier been purchased by Uganda Land Commission which partly paid UGX 2.4Bn. The two entities have not agreed on the ownership of the land. +3 Uganda Support to Municipal Infrastructure Development, Additional Financing (USMID-AF/II)  To-date, the program has made available USD 140,331,745 (UGX.514,740,787,823), out of which only USD.44,938,686 (UGX.477,249,316,165) had been made available to the LGs, leading to a + + + + +214 + + + + + + + + + + + + Project. 2020/21Opinion Unqualified funds availability to LG level of 32%. Out of the budgeted disbursements/receipts of UGX.454,866,200,300 in the financial year, only UGX.301,529,104,089 (66.3%) was available to the project, leading to a shortfall of UGX. 153,337,096,211(33.7%). Out of a sum of UGX.301.5 Bn available for project utilization in the year, UGX.107,162,555,328 was spent, resulting into an absorption level of only 64.5%. The low rate of absorption of funds may result into delayed attainment of project objectives. I noted that UGX 331,131,497,751 was being held by the treasury for programme activities. This was an increase of held funds, as UGX.154,842,679,584 was held last year. This arose from inadequate funds utilisation by the LGs. +4 Albertine Region Sustainable Development Project (ARSDP) – MoLHUD 2020/21Opinion Unqualified  Out of the budgeted IDA disbursement of UGX.19,514,012,776 for the year 2020/2021, only UGX.10,094,659,078 (52%) was realized leading to a shortfall of UGX.9,419,353,698 (48%). Revenue shortfall limits the implementation of planned activities which could affect the achievement of the project objectives. Review of the Q4 Progress report revealed that many sub-projects worth USD 27.5million handed over to the Ministry of Lands, Housing and Urban Development for construction, will not be implemented due to lack of funding, yet, costs have already been incurred since all the sub- projects have been designed and Environment and Social Impact Assessment done. The civil works for construction of three markets, namely: Biiso Market in Buliisa District, Kabaale Market in Hoima District and Buhuka Market in Kikuube District costed at UGX.9,963,228,048 were not complete despite the extension of the completion date to 31st August 2021, thus delaying service delivery to citizens. +5 Competitiveness and Enterprise Development Project (CEDP) Component 1- Land Administration (IDA CREDIT AGREEMENT CR 52690-UG) PROJECT ID P130471. 2020/21Opinion Unqualified  It was noted that out of the UGX.12.73Bn budget allocated for the project activities during the fiscal year 2020/2021, UGX.11.86 Bn (93%) was spent, leaving a balance of UGX.0.87Bn. I noted that one plot of land has multiple titles while others are plotted in the middle of the road and wetlands. Such inaccurate/wrong sketches captured on the Uganda National Lands Information System (UGNLIS) may lead to land wrangles, and Government may face challenges from title holders with land titles in roads and wetlands. +6 Uganda Land Commission. 2020/21Opinion Qualified  Out of the approved budget of UGX. 71,868,574,709, only UGX. 65,793,286,529was warranted/released resulting into a budget shortfall of UGX.6,075,288,180 representing 91.5%. Out of the total warrants of UGX.65.79Bn received during the financial year. UGX.64.94Bn was spent by the entity resulting in an unspent balance of UGX.0.85Bn representing an absorption level of 98.71%. Out of the twenty-one (21) outputs with a total of sixty-one (61) activities and expenditure of UGX.64.86Bn sampled, Two (2) outputs with a total of Six (6) activities and expenditure worth UGX.0.71Bn were fully quantified, Eight (8) outputs with a total of thirty (30) activities and expenditure worth UGX.32.35Bn, was insufficiently quantified. Eleven (11) outputs with a total of twenty-five (25) activities and expenditure worth UGX + + + + +215 + + + + + + + + + + + + 31.8Bn were not quantified at all. Out of the two (2) fully quantified outputs, Two (2) outputs with six (6) activities worth UGX.0.71Bn were partially implemented. Out of the six (6) activities, the entity fully implemented one (1) activity; Four (4) activities were partially implemented, while one (1) activity remained unimplemented. The balances for; payables of UGX 169,490,014,824 , Non-produced assets of UGX 212,279,181,177, and that of revenue receivables of UGX 24,760,000 as at 30th June, 2021, Could not be confirmed due to absence of adequate supporting documentation and reliable data by the commission. A sum of UGX.1,237,717,474 was paid for outstanding arrears that related to the prior year, but were not recognized in the prior year financial statements as payables. In addition, withholding tax of UGX.22,020,000 was not deducted and paid to URA. I noted that the court garnished the Commission’s bank Account with a balance of UGX.244,184,480 leading to the delay to clear the outstanding obligations to third parties. It was noted that the entity obtained a supplementary of UGX 10.62Bn was received by the entity but was not requisitioned by management. There were unsupported payments of domestic arrears amounting to UGX 14.4 Bn. Payments worth UGX 6.7Bn were paid to unverified arrears. In addition, payables to Church of Uganda amounting to UGX 15Bn, and Receivables amounting to UGX 3.966 Bn relating to the overpayment to Kampala archdiocese in the prior year were not recognised. In addition, outstanding arrears of UGX 1.2Bn related to prior year but paid during the year have not been recognised in the current year. The Commission does not have a land inventory and database for all government land and properties under its jurisdiction that are either occupied by tenants, vacant, acquired under compensation (but not yet re-distributed to the bona fide occupants), or acquired and owned by other government institutions and missions abroad. As such tracking of lease payments and revenue arrears related to ground rent and premium could not be supported. + ACCOUNTABILITY SECTOR  +1. Uganda Communication Employees Contributory Pension Scheme. 2019/20Opinion Qualified  Reported in the Statement of Net Assets Available for Benefits are payables and accruals of UGX.2,679,752,000, of which UGX.2,022,412,000 and UGX.442,330,000 are administrative and actuarial fees respectively. However, these were not adequately supported to confirm existence. Eleven (11) properties disclosed as part of the non-core assets were still not valued and therefore not included in the value of Non-current assets of the Scheme. A review and comparison made between the audited financial statements for the period ending 30th June, 2019 and the financial statements for the period ending 30th June, 2020 revealed inconsistencies in the account balances of reserves. Receivables were not supported with any documentation and schedule to confirm the amounts and authenticity. The reported cash and cash equivalents is misstated. + + + + +216 + + + + + + + + + + + +  The Scheme recognized a retrenchment penalty worth UGX.11,320,160,000 as a receivable from UTL yet this amount had been written off. I noted that out of the budgeted revenue of UGX.12,447,003,444 for the year 2019/2020, only UGX.2,264,969,444 was realised representing a performance of only 18.2% of the target. I established that funds totaling to UGX.88,575,000 were never budgeted for, and no authority was sought from the Founder to use the current year’s appropriated funds to meet this expenditure. Diversion of members’ contribution (DC) to pay defined benefits (DB) liabilities: UGX.4,550,343,000. I noted that, whereas PAYE to a tune of UGX.35,427,298 was withheld from employees as required during the year, it was not remitted to URA in the timelines prescribed by the Income Tax Act. +2 Uganda Bureau of Statistics (UBOS). 2020/21OpinionUnqualified  I noted a number of issues in the implementation of the approved budget such: under absorption of funds; partial or non-implementation of activities, non-quantification of activities, under performance of the NTR and government releases. There was delayed Implementation of a number of Projects such as: UNFPA-Survey Project, Baseline Education Survey Project (WB-GPE- UTSEP) and UBOS Panel-Survey project majorly caused by effects of Covid-19 pandemic. Out of the total approved structure of 316 staff, only 283 (90%) positions were filled, leaving 33 (10.4%) positions vacant. Staffing gaps affect the entity’s capacity to effectively deliver services. the entity lacked land titles for its land both in Entebbe and at head office, although management demonstrated its efforts in engaging Uganda Land Commission to secure land titles. Several procurements to the tune of UGX.1.834Bn were not executed as of 30th June 2021. This was attributed to unforeseen circumstances brought about by the lock-down associated with the Covid-19 pandemic as well as budget cuts. +3 URA Corporate 2020/21OpinionUnqualified  URA operated at least six operations bank accounts in commercial banks with an annual turnover of over UGX.1.1 Tn, in contravention of Section 33 (5), (6) and (7) of the Public Finance Management Act 2015. The action overrides the Government financial management controls and distorts the monetary policy. UGX.9.6Bn was advanced to staff through their bank accounts to purchase goods, services, and other activities without following regulations. The practice is irregular and also exposes Government funds to a risk loss through misuse. UGX.1.16Bn paid through mobile money to various suppliers for the provision of services were not adequately supported with accountability documents as required; as a result, I could not ascertain whether the funds were utilised correctly for the intended activities. Management made cash withdrawals amounting to UGX.5.2Bn during the year, contrary to Section 11 of PFMA 2015, as well as Section 7 of the URA Cash Policy that sets the maximum insurable cash limit to UGX.20Mn. The practice has been recurring and exposes government funds to a risk of misuse of cash and loss. + + + + +217 + + + + + + + + + + + +  The Authority awarded multi-year contracts to the tune of UGX.18.7Bn without evidence of approval of these multi-year commitments by the Parliament. This was contrary to Section 23(1) of the PFMA 2015. Planned procurements worth UGX.25.1Bn were not implemented by 30th June 2021. This adversely affects the realisation of critical government programs. Management explained that the delays were due to various reasons, some of which are beyond their control. During the financial year 2020/21, the collaborating institutions under the Tax Registration and Expansion Programme (TREP) registered only 167,211 taxpayers against a target of 436,869 taxpayers representing a 38.27% registration success and a shortfall of 61.7%. In revenue terms, although TREP had a revenue target of UGX.124.58 Bn in FY 2020/21, it had only collected UGX.49.93Bn by 30th June 2021, representing a 40% performance rate. The paltry performance was attributed to COVID-19 effects, riots and the political environment, that hindered field activities. The Ministry of Local Government had planned to implement activities worth UGX.4.4Bn under TREP activities but only implemented activities worth UGX.3.3Bn, leaving un-implemented activities worth UGX.1.1Bn despite receiving all funding. As a result, the e-LogRev objective of simplifying and strengthening the local revenue collection systems for Local Governments may not be achieved in time. +4 URA Revenue Collection Account 2020/21OpinionUnqualified  The Authority had a total revenue collection target of UGX.22.039Tn for the financial year 2020/21, and collected total gross revenue of UGX.19.649Tn, representing 89% hence a shortfall of UGX.2.39Tn (11%). Under collection of revenue affects cash flow performance of Government and realisation of the planned service delivery targets. Management attributed the performance to the adverse impact of COVID- 19 pandemic. I reviewed the statement of comparison of target and actual revenue collection by the tax head and noted that revenues from different sources worth UGX.86.979Bn were not budgeted for, despite collecting significant incomes on these tax heads for the past two years leading to under- budgeting. Lack of budget provisions of the tax heads conceals revenue potential, distorts revenue projections and may lead to un-appropriate performance assessments and related bonuses. Uganda Tax/GDP ratio remained low at 12.5% in 2020/21, compared to other countries in the region and globally. This performance was similar to last year's performance. This implies that tax bases have not widened or deepened enough to tax all potential sources. There was an increase in total Tax Arrears from UGX.3.009Tn in 2019/20 to UGX.4.519Tn in the financial year 2020/21 representing a total increase of UGX.1.492Tn or percentage increase in total Tax Arrears of 50%. The Increase denies Government the required resources to deliver more services. The contract between the Government of Uganda (GoU) and a private company had since expired even though the Company had continued to manufacture motor vehicle registration numbers for taxpayers. Expired contracts expose the Government to the risk of loss of revenue without a remedy. I noted that government had continued to engage only two private companies, making them monopolies in providing motor vehicle registration number plates for more than eight (8) years without opening it up for competition. The Monopoly exposes the taxpayer to high prices + + + + +218 + + + + + + + + + + + + for the services. URA received a sum of UGX.279.509Bn through Bank of Uganda from Government Ministries, Departments and Agencies and Local Governments. The amount was not reconciled and receipted due to the inability to identify the tax head and the lack of IFMS and BoU Systems interface with URA systems. Collection of Revenue without receipting and charging the correct tax heads results into misstatement of revenue collected per tax head. +5 Uganda Retirement Benefits Regulatory Authority. 2020/21OpinionUnqualified  The entity budgeted to receive UGX.12.35Bn in the FY 2021/21. However, only UGX.11.25Bn was available for spending resulting into a shortfall of UGX.1.1Bn, which is 9% of the budget; this affected implementation of planned activities. Assessment of implementation of planned outputs revealed that Nine (9) outputs with a total of forty (40) activities worth UGX.2.89Bn were partially implemented. Out of the forty (40) activities, the entity implemented twenty-eight (28) activities (70%), while twelve (12) activities (30%) remained unimplemented. In addition, planned procurements totaling UGX.309Mn were also not implemented. Out of the approved staffing level of 61, the Authority has only 36 positions filled (59%), leaving a staffing gap of 25 positions (41%). Included in the unfilled positions are key positions of Director Finance and Accounting, Director Human Resource and Administration and the Director Research and Strategy. This affects the entity’s capacity to effectively deliver its mandate. +6 Bank of Uganda 2020OpinionUnqualified  Uncertainties brought by Covid-19 could potentially led to delays by Government to refund/repay amounts due to the Bank. Audit noted that the Government capital account included in the loans, advances and drawdowns to Government increased by UGX 1,087,811 million representing 313% from UGX 347,475 million as at 30 June 2019 to UGX 1,435,286 million as at 30 June 2020. The assessment of the possible outcome of the appeal (Crane Bank - Civil Appeal No. 252 of 201) and the amount of any resulting potential obligations, if any, involves significant judgement by the directors. I noted that, as at June 30, 2020, the core capital of the Bank was below the minimum required capital by UGX.453,331 million (2019: UGX.671,712 million) +7 Housing Finance Bank Limited 2020OpinionUnqualified  I noted that Management has estimated impairment provisions for loans and advances to customers collectively for homogenous loan portfolios using statistical methods on the basis of risk parameters using historical data taking into account forward looking information on expected macroeconomic conditions including considerations made for possible effects from the COVID-19 pandemic. As at 31 December 2020, a total of 1184 customers with loans worth UGX. 159.8 billion had applied and been granted loan restructures of different forms. However, as at 31 December 2020, only 331 customers with loans worth UGX. 58.0 billion were still under repayment moratoriums with the rest having reverted to periodic repayments schedules following the initial restructures. The COVID-19 pandemic containment measures increased economic uncertainty amongst the borrowers, prompting many to prematurely repay their loans during and after the lockdowns. These redemptions + + + + +219 + + + + + + + + + + + + involving as many as 901 customers affected the growth rate of the loan book by over UGX. 37.0 billion. I noted that there was a disruption in the periodic repayments by the Bank’s borrowing customers at the peak of the pandemic containment measures. +8 Post Bank Uganda Limited. 2020OpinionUnqualified  COVID-19 effects and corresponding bank measures impacted PBU loan portfolio in different ways including reduction in cash flows from loan repayments as a result of granting moratoriums, increase in customers demanding for Interest rate reduction, shrink in credit demand for some sectors and drop in disbursements due to cautious lending coupled with increase in default rates for some sectors. +9 Contigencies’ Fund. 2020/21Opinion Unqualified  Section 26(i) of the PFMA 2015 (as amended) provides that a Contingencies Fund shall every financial year be replenished with an amount equivalent to 0.5% of the appropriated annual budget of Government of the previous financial year. The approved budget for the previous financial year (FY2019/20) was UGX.40.49Trillion, which would have translated into UGX.202.43Bn funding for the Contingencies’ Fund in the year under review. I noted however, that Parliament only appropriated UGX.62Bn to the Contingencies fund, causing a deficit of UGX.140.3Bn. Underfunding of the Contingencies Fund distorts implementation of the approved budget for the current year as evidenced by budget cuts and reallocations to fund supplementary budgets relating to natural disasters and emergencies that occurred during the year. Audit of the withdrawals made off the Contingencies Fund revealed that a total of UGX.62,070,000,000 was transferred to the Fund bank account held at Bank of Uganda. The funds were consequently transferred to entity bank accounts and expensed off the IFMS, which makes it difficult to follow up and track to confirm the adherence to the approved budget guidelines and also confirm accuracy of the reports generated. Spending off the IFMS also exposes the funds to the risk of misuse due to lack of transparency. +10 Financial Intelligence Authority. 2020/21OpinionUnqualified  The Financial Intelligence Authority lacked an approved strategic plan aligned to the NDP III. Under the circumstances, there is a risk that activities implemented during the financial year 2020/2021 were not aligned to the NDP-III, which negatively affects the achievement of NDP- III objectives. I advised the Accounting Officer to follow up on the approval of the strategic plan urgently. A review of the staffing structure for FIA revealed that out of the total approved establishment of 64 staff, only 41 (64%) positions were filled, and 23 (36%) positions had not yet been filled. Key among the unfilled positions include; Director Legal, Inspection and Compliance; Director Audit, Director Finance & Administration, among others. Staffing gaps have a negative effect on the general performance of the Authority and hinder effective and efficient service delivery. I advised management to intensify their efforts with the relevant stakeholders to ensure that the gaps are filled so as to deliver effective services. A review of the Anti-Money Laundering Act (AMLA) 2017 (as amended) and its accompanying regulations revealed that the Authority does not have in place pecuniary sanctions in case of breach of the law and regulations. The lack of sanctions makes it difficult for the Authority to enforce compliance with the Act by all accountable persons. I advised management to follow up with the responsible Minister so that these regulations are passed to enforce accountability. + + + + +220 + + + + + + + + + + + +11 Insurance Training College (ITC). 2020/21OpinionUnqualified  Section 63 of the Insurance Act requires the Insurance Training levy to be reconciled with Insurers within 60 days after the end of the calendar year. I however noted that a total of UGX.4.9Bn was collected based on basis of computed returns submitted by the Insurers and Health Member Organisations (HMO’s), with no evidence of reconciliation of Training Levy returns, contrary to requirements under the Act. As a result, the returns may be understated to reduce remittances, which may lead to revenue loss. +12 National Population Council.Opinion Unqualified  Out of the ten (10) sampled outputs that NPC planned to implement during the period under review, five (5) outputs representing 50% of the planned sampled outputs were fully implemented, four (4) Outputs representing 40% were partially implemented, and one (1) Output representing 10% was not implemented during the period under review. Gratuity payments totalling UGX.940Mn were not subjected to PAYE and the 5% NSSF employee deductions. I further noted that NPC did not provide for the 10% employer contribution for the staff resulting from the gratuity payment. This denied URA the much-needed revenue and the staff were disadvantaged due to failure to contribute to NSSF. +13 Tax Appeals Tribunal. 2020/21OpinionUnqualified  Arising out of a supreme court decision, all tax disputes in Uganda must first commence in the Tax appeal Tribunal before they move to any other court. A review of the cases filed at the Tribunal, in the last three years, revealed that there was an increase of cases filed from 40 in 2017 to 176 in 2020. In spite of the increase in cases, there has been no increase in the number of members of the Tribunal which has necessitated that the members of the Tribunal sit every day not withstanding their regular involvement in the administrative aspects of the Tribunal. The current structure of the remuneration of the members indicates that each member will be paid a sitting allowance and a retainer. This has resulted into the Tribunal spending the bulk of its money on the payment of allowances to the Tribunal members. During the reviews, I noted that there were instances in which a Tribunal member is an active partner of a Firm that has a case before the Tribunal. Whereas the said Tribunal Member does not form part of the panel of the committee adjudicating the disputes, this presents a potential conflict of interest for the members of the committee who work with him and have to decide the matters involving his Firm for which he is an active partner. I noted that the approved organisation structure for the Tribunal, did not have a provision for internal audit function and indeed, this role has not been assigned to any staff. This is contravention with the PFMA 2015, and it also denies the Tribunal an early warning mechanism in cases of errors of omission or commission. +14 Uganda Microfinance Regulatory Authority (UMRA) 2020/21OpinionUnqualified  It was noted that, contrary to Section 17 of the PFMA 2015, the Authority had unspent funds totalling UGX.4.93Mn at the year-end that were never returned to Treasury. It should also be noted that the same was done in the preceding year where UGX.204Mn was never returned. Failure to return unspent funds contravenes Section 17 of the Public Finance and Management Act 2015, and exposes the funds to a risk of diversion since they are spent in the subsequent financial year without appropriation by parliament. Section 11.2.4 of the Treasury Instructions 2017, requires the Head of Finance to ensure that commitments are not approved unless sufficient funds are available in the commitment item. However, in disregard to the + + + + +221 + + + + + + + + + + + + above provision, commitments to a tune of UGX.321Mn remained unpaid at the close of the year under review. Comparison of licensees per category (Moneyl enders and non-deposit taking institutions) between the previous year 2019/2020 and those that renewed their licenses in the year under review 2020/2021 revealed that a total of 365 licensees had not submitted applications for renewal. In light of the occurrence, there is a risk that the licensees in issue could have operated for the whole year without having paid the requisite fees, which would lead to a loss in government revenue to a tune of UGX.200Mn. Section 36(1)(a & b) of the Tier 4 Microfinance Institutions Act and Moneylenders Act, 2016 states that a SACCO shall not carry on the business of financial services unless it is a registered society; and licensed under the Act. Audit noted that only 15 SACCOs were issued with operating licenses by Uganda Microfinance Regulatory Authority. However, data obtained from Microfinance Support Centre (MSC) indicated that over 6,150 EMYOOGA SACCOs were by March, 2021 in operation without acquiring operating licenses. Audit of the Authority’s payroll and other expenses revealed that during the financial year ended 30th June 2021, Pay as You Earn (PAYE) tax amounting to UGX.290Mn in respect of deductions from employees was never remitted to the Uganda Revenue Authority. +15 The Departed Asians Property Custodian Board (DAPCB). 2020/21OpinionUnqualified  I noted that MDAs and LGs are still experiencing challenges in implementing the budgets approved by parliament and policy guidance’s issued by PS/ST, which has continued to affect the performance and credibility of the budget negatively. I reviewed the NTR estimates, revenue sources and rates charged for the financial year 2020/2021 and noted that the entity budgeted to collect NTR of UGX.2,572,820,000 during the year under review. Out of this, only UGX.1,410,970,500 was collected, representing a performance of 55% of the target, resulting into a shortfall of UGX.1,161,849,500. The entity budgeted to receive UGX.2.572Bn during the period, out of which UGX.1.383Bn was warranted, resulting into a shortfall of UGX.1.189Bn which is 46.23% of the budget. I observed that in cases where outputs were not quantified, management reported performance in generic ways such as tenants sensitised to pay rent, court attended etc, without specifying the number/quantities achieved. All five (5) outputs with a total of thirteen (13) activities worth UGX.1.383Bn were partially implemented. I noted that in a twist of events, the Board refunded the sum of UGX.0.860Bn that had been deposited in respect of the property, citing the fact that the property had been donated to the tenant, but this was not supported by a Board resolution. I observed that according to a disclosure in note 19 of the accounts, receivables have increased from UGX.3.35Bn last year to UGX.8.21Bn this year. Of this amount, UGX.3,73Bn relates to uncollected rent from prior years and UGX.4.60Bn relates to unpaid proceeds from property sales. I reviewed the portfolio of DAPCB court cases and noted that there was a continuous rise) in the number of court cases against the Board arising from disputes of properties. The cases rose by 18, making a total of 120, as at the end of the year. + + + + +222 + + + + + + + + + + + +  I noted that the entity does not have a comprehensive asset register to date. The copy of the compendium/register availed to me for audit was still under verification by management and as such management could not vouch for its completeness. I reviewed the compendium of assets presented for audit by management and noted that nearly all properties therein were not yet valued, and yet the Board of valuers has now been in place for nearly three financial years. +16 The Danida (Upgrade) Project Under the Inspectorate of Government. 2020/21OpinionUnqualified  I noted that MDAs and LGs are still experiencing challenges in implementing the budgets approved by parliament and policy guidance's issued by PS/ST, which has continued to affect the performance and credibility of the budget negatively. I noted that the project had an approved budgeted of UGX.7,910,415,388 but only received UGX.2,047,981,275 as revenues for the period, leading to a 35.7% revenue performance. I observed that the project work plan had 47 activities out of the planned 69 activities that were not quantified. +17 The Inspectorate of Government (IG). 2020/21OpinionUnqualified  I noted that MDAs and LGs are still experiencing challenges in implementing the budgets approved by parliament and policy guidance’s issued by PS/ST, which has continued to affect the performance and credibility of the budget negatively. I reviewed the NTR estimates, revenue sources and rates charged at vote level for the financial year 2020/2021 and noted that the entity budgeted to collect NTR of UGX.1,201,509,223 during the year under review. Out of this, a total of UGX.1,875,073,520 was collected, representing a performance of 156% of the target with an excess collection of UGX.673,564,297. The entity budgeted to receive UGX.53.4Bn from GoU sources; however, only UGX.49.45Bn was released, resulting into a shortfall of UGX.3.95Bn, which is 7.4% of the budget. Out of the total warrants for the financial year of UGX.49,446,960,793, UGX.45,655,225,893 was spent by the entity, leaving a balance of UGX.3,791,734,900 unutilised by the vote. I noted that the approved work programme for the construction of headquarter building indicated planned progress of 32% compared to the actual work progress of 11.9%. +18 The Northern Uganda Social Action Fund Project Under the Inspectorate of Government (IG). 2020/21OpinionUnqualified  The project had an approved budget of UGX.2,235,166,397 for the FY 2020/21. I noted that a total of UGX.2,235,166,397 was received for the period representing 100% of the appropriated amount. I noted that out of the twenty (20) sub-activities in the approved work plan for the FY 2020/21, eight (8) of them were not quantified. +19 Ministry of Finance Planning and Economic Development (MoFPED). 2020/21  Analysis of domestic arrears showed an increase of UGX.139Bn from UGX.129Bn in the financial year 2019/20 to UGX.269Bn in the financial year 20/21 representing a jump of 108%. Overall, tax expenditure by government for private firms continues to account for the biggest portion of the arrears (at 78%) despite the write off of the tax arrears in the + + + + +223 + + + + + + + + + + + + Opinion Unqualified previous financial year. I also noted that arrears relating to unsettled obligations to international organizations stood at UGX.49.49Bn with some dating as far back as financial year 2014/15. GoU, through MOFPED, offered additional incentives of USD Cents 5/KWH to companies in the Cotton, Textile and Apparels (CTA) industry. During the financial year ended 30th June 2021, a total of UGX.3.36Bn was paid/refunded to two manufacturers while UGX.5.41Bn remained outstanding as at year end; However, I noted that;i) the concession was not time-bound, which exposes government to perpetual expenditure without value analysis.ii) none of the beneficiaries had furnished the Ministry with the required insurance bond despite the continued access to the benefit.iii) there was no evidence of publicizing the concession for the benefit of all eligible firms/persons. In this regard, the concession is only being enjoyed by two firms which creates competitive disadvantages to the other players in the industry.iv) there was no mechanism in place to monitor compliance with the set targets despite having reached the first milestone.v) the memorandum of understanding signed did not provide for reporting obligations for the beneficiaries. There was thus no justification for the continued incentivevi) all refunds effected so far are made from supplementary budgets implying none sustainability of the incentive. Indeed a total of UGX.5.41Bn remains outstanding as at 30th June 2021. In line with the above, it is apparent that the subsidy is being implemented with irregularities. Government is exposed to continued expenditure without due regard to achievement of the intended objectives. The Uganda Agriculture Insurance Scheme (UAIS) is a Public Private Partnership between GoU and the Private Sector represented by the Uganda Insurers Association and insurance companies under the agro- Consortium. The purpose of the scheme is to hedge Ugandan farmers against natural calamities beyond their control. However, review of implementation revealed that there was lack of a mutual agreement on Marketing of the scheme to the potential beneficiaries and a number of conditions in the MoU are not yet fulfilled. This has limited its access to potential beneficiaries and also raised transparency concerns in regard to how the current beneficiaries were identified. The PPP Act 2015 provides that there is to be established a Project Development Fund to support public private partnerships initiatives. However, six years later, there is no evidence of operationalization of the Fund by the Minister. Failure to establish the fund may be a contributory factor to the slow uptake and limited feasibility studies of the Public Private Partnerships. +20 PPDA Tribunal. 2020/21OpinionUnqualified  I noted that the Tribunal was operating a strategic plan that is not aligned to the NDP III period. The Tribunal’s planning period is 2017- 2022 implying that activities implemented during the financial year 2020/2021 may not have been aligned to the NDP-III, which negatively affects the achievement of NDP-III objectives. + + + + +224 + + + + + + + + + + + +21 Uganda Investment Authority. 2020/21Opinion Unqualified  The Authority received off-budget financing to a tune of UGX.50.43Bn, which was not transferred to the consolidated fund as required by law. These funds were received directly from development partners to the EPC contractor for the Development of infrastructure at Kampala Industrial and Business Park, Namanve. Off-budget financing distorts planning, may result into duplication of activities and is contrary to the Public finance Management Act 2015. The approved budget estimates for the Authority for the financial year 2020/2021 indicated that only UGX.22Mn out of UGX.2.411Bn was budgeted towards the settlement of domestic arrears. The arrears balance of UGX.2.389Bn was therefore not budgeted for settlement. Failure to provide resources for the accumulated arrears increases outstanding obligations. The Authority continued to accumulate domestic arrears with a total of UGX.1.768Bn incurred in the financial year under review, without clearing outstanding arrears from the previous financial year 2019/2020 of UGX.2.411Bn. The total accumulated domestic arrears stood at UGX.4.18Bn at 30th June 2021. This is an indicator of non adherence with the commitment control system of government. During inspections countrywide, I observed that the industrial parks lack or had inadequate infrastructures like roads, solid waste and sewage management systems, power supply, street lights etc. The Parks have been characterized by encroachment, farming and cattle grazing, degradation of nearby swamps, unallocated land, idle land allocated to unserious investors and misunderstandings between investors and park management staff. Most roads are impassable and with inadequate lighting which exposes the parks to thefts and insecurity. I observed that some factories in the parks have set up their own infrastructure which may not be sustainable, and to the desired standards. This may negatively affect the usage and utilization of the parks. The Authority lacks regulations required under Section 38(1) of the Investment Code Act to operationalize the statute. This may hinder the smooth implementation of the Act which is meant to create an investment enabling environment. Although the Authority has 124 approved positions, only 78 (i.e. 62.9%) are filled, leaving 46 (37.1%) vacant positions. Among the vacant positions include 24 unfilled positions that are from the core Directorate of Investment which is the backbone of UIA. Understaffing undermines service delivery. +22 Treasury Operations. 2020/21Opinion Unqualified  I reviewed the NTR estimates, revenue sources and rates charged at vote level for the financial year 2020/2021 and noted that the entity had not budgeted to collect NTR during the year under review. It was noted that out of the approved budget of UGX.15.129Tn for the vote for the final year ended 30th June 2021, only UGX.14.204Tn was released, representing 93% of the approved budget. Of the UGX.14.204Tn received in the current Financial Year, only UGX.11.963Tn was spent by the vote resulting into an unspent balance of UGX.2.241Tn representing an absorption level of 84%. I noted that the interest accrued on the outstanding debt but not yet paid amounting to UGX.1.039Tn was not recognised in the financial statements. Included in the receivables figure is UGX.10.437Bn that was lent by + + + + +225 + + + + + + + + + + + + government to private enterprises for which no recovery has been effected since 2013. Included in cash and cash equivalents is UGX.15.62Bn which was a USAID grant for enhancing Livelihoods and Infrastructure of Northern Uganda under a project. The funds have remained utilized for more than two years and risk being refunded to the donor yet it was a grant. I noted that there is no clear method of identifying which claimants are considered for negotiations even in the instance of where the said claimants have mandamus orders. I have noted that over the years, budgets for mandamus payments are included in the original budget as notional amounts despite having a figure for outstanding payments at the beginning of the year, including those for which settlement plans have been drawn as per the signed MoUs and court variation orders with beneficiaries. Audit observed that, UGX.3.32Tn which was advanced by the Bank of Uganda to settle matured obligations relating to treasury bills and bonds (principal and interest) had not been refunded as at 30th June 2021 contrary to the requirements under Section 36 of the PFMA. A review of the company files in which the GOU holds shares revealed that some companies were dormant, with no activities being undertaken on the said files. There was no evidence that the said companies were filing the mandatory annual returns, minutes of the Annual General Meetings or any information to indicate the activity of the companies. Audit established through a review of records at Uganda Registration Services Bureau that Government owns a number of investments that are not reported/ recognised in the financial statements of Treasury Operations. It was established that the Minister provided authorisations to nineteen (19) Public Institutions to borrow funds from financial institutions totalling to UGX.60.042Bn, but there was no evidence of any monitoring being undertaken by the Ministry to ensure adherence to the loan terms and conditions. +23 Insurance Regulatory Authority. 2020/21Opinion Unqualified  Out of the budgeted NTR of UGX.26.874Bn, only UGX.19.818Bn was collected and a shortfall of UGX.7.056Bn, representing a performance of 73.7% of the target. Shortfalls in NTR collections affect the implementation of planned activities. I noted that a number of planned procurements were not executed worth UGX.5.61Bn. Non implementation of all procurements leads to failure to attain the intended objectives during the financial year. There were noted delays in the phase one construction of an ultra- modern 11 storeyed office building for Insurance Regulatory Authority located at plot 6, Lumumba Avenue, which was awarded to a contractor at an amended contract price of UGX.32.662Bn. By the time of reporting, although a total cumulative payment of UGX.29.943Bn (91%) had been made to the contractor, the project was at 80% completion and 46 months behind schedule. +24 National Lottery & Gaming Board.Opinion Unqualified  I noted that a number of Gaming houses had not filed the required quarterly returns contrary to the Lotteries and Gaming regulations. There was no evidence that the Board had conducted enforcement activities to ensure compliance by the operators. Failure to undertake enforcement actions poses a risk of the operators + + + + +226 + + + + + + + + + + + + not making returns and having operational gaps going undetected which affects the revenue collections of Uganda Revenue Authority and exposes the Ugandan public to risk of unprofessional operators. The Ministry of Finance, Planning and Economic Development on behalf of Lotteries and Gaming Regulatory Board awarded a UGX.10.833Bn contract to a foreign company to provide consultancy services for development of a National Central Electronic Monitoring system. The contract period was for 2 (two) years effective 23rd June, 2020. I noted that, two years later, the procurement has not been made. There is no provision for implementation of the system even in the current budget 2021/22. The failure to procure the system, denies the Board the associated benefits like monitoring and revenue tracking. Beside this may result into litigation on grounds of breach of contract and expose Government to loss of funds in compensation. During the year under review, although the Board licensed 17 casinos, there was no evidence that the Board advertised the applications for the said casinos to invite the views of the public as is required by regulations. Failure to publish the notices poses a risk of granting licenses to operators with some conflicts among the public and as such may result into litigation. +25 Public Procurment And Disposal of Public (PPDA) 2020/21Opinion Unqualified  I noted at the time of the audit that out of the planned Four (4) strategic targets/goals, No targets had been fully achieved, while three (3) were partially achieved, and one (1) target had not been achieved at al I noted that out of the budgeted revenue of UGX.28.4Bn for the year 2020/21, UGX.21.3Bn was realised representing a performance of only 75% of the target. Out of the 5 outputs assessed, No output was fully implemented; 5 outputs representing 100% were partially implemented, while no output was not implemented at all. I noted that although the budget for Domestic arrears was UGX.42,407,000, funds amounting to UGX.432,579,009 were spent on domestic arrears for the FY 2020/21, implying an over expenditure of UGX.390,172,009 on this item. Out of the total receipts for the financial year of UGX.18.698Bn, UGX.18.59Bn was spent by the Authority, resulting into an unspent balance of UGX.0.108Bn representing an absorption level of 99%. The audit reviewed the performance of the above project and noted that much as most of the key planned activities had been implemented, there were few that were still pending. I observed that the entity has a staff establishment of 140 positions, out of which only 116 were filled, leaving 24 positions vacant, representing 17% of the workforce of the entity. In addition, seven staff exited the Authority during the year, due to various reasons. +26 Bank of Uganda. 2020/21Opinion Unqualified  No significant findings. +27 Capital Markets Authority. 2019/20Opinion  No significant findings. + + + + +227 + + + + + + + + + + + + Unqualified +28 Deposit Protection Fund ("The Fund") 2020/21 Opinion Unqualified  I noted that although effective 1st July 2020, DPF was exempt from withholding tax, Bank of Uganda erroneously deducted withholding tax (WHT) on the Fund’s interest income on matured government securities during the period amounting to UGX.10.4Bn. However, directors have decided to make full provision against the WHT receivable based on the historical experience and expected future outcome of the claim from URA on a conservative basis, and this is in accordance with the requirement of IAS 36: Impairment of Assets. +29 Pride Microfinance Limited (MDI) 2020Opinion Unqualified  No significant findings. +30 Project for Financial Inclusion In Rural Areas (PROFIRA)Opinion Unqualified  I noted that, as reported in my report for the year ended 30th June 2020, Government of Uganda has not yet honored its obligation of UGX.5.6Bn as co-funding for the Project. I observed that the project has been supporting SACCO’s that were not registered by Uganda Microfinance Regulatory Authority (UMRA). +31 The Resource Enhancement and Accountability Programme (REAP) 2020/21Opinion Unqualified  No significant findings. +32 Uganda Development Bank Limited (UDBL). 2020Opinion Unqualified  No significant findings. +33. Microfinance Support Centre Limted (MCSC) 2020Opinion Unqualified  I noted that unresolved receipts in payables balance amounting to UGX. UGX.581 Million + INFORMATION COMMUNICATION SECTOR +1. Ministry of ICT and National GuidanceOpinion Unqualified  The entity budgeted to receive UGX.46.401Bn from Treasury; out of this amount, UGX.43.586 Bn was warranted, resulting into a shortfall of UGX.2.81Bn which was 6% of the budget. Of the released amount, the Ministry absorbed UGX.42Bn, resulting into an unspent balance of UGX.1.6Bn representing an absorption level of 96%. Unspent balances imply un implemented activities and which in turn hampers proper service + + + + +228 + + + + + + + + + + + + delivery. Contrary to Regulation 18 (1) of the PPDA (Contracts) Regulations, 2014, the Ministry issued call off orders to two firms in three separate procurements of office furniture worth UGX.144.8Mn under a framework contract where the items and prices on the call off orders were different from what was agreed on in the signed framework contract. This erodes the benefits of framework contracts and may cause a loss to Government. +2 Uganda Communications Commission.Opinion Unqualified  Assessment of the Commission’s performance of Non Tax Revenue (NTR) revealed that out of the budgeted NTR of UGX.156.59Bn, a total of UGX.454.61 was collected, representing an increase of UGX.298Bn (190% of the target). Management attributed the overperformance to payment of the National Telecom Operator (NTO) license by two telecom companies which had not been budgeted for. The Accounting Officer was advised to always conduct comprehensive research on all potential revenue sources for proper budgeting of NTR. Out of the total receipts for the financial year of UGX.454.61Bn, only UGX.451.98Bn was spent by the entity resulting into an unspent balance of UGX.2.63Bn representing an absorption level of 99.5%. I commended the Accounting Officer for absorbing most of the funds availed despite the challenges during the year. I noted that several procurements to the tune of UGX.4.51Bn were not implemented as of 30th June 2021. As a result, implementation of critical Commission programs was delayed. Management attributed the delays in these procurements to the COVID-19 pandemic that paralysed the entire procurement process. The Commission discontinued issuing invoices to Uganda Telecom Ltd, Posta Uganda and Uganda Broadcasting Corporation due to tax implications where, the Commission has to pay VAT to URA on every invoice raised, whether funds are received or not. As a result, UCC ledger balances of UGX.85.1Bn differed from the reported receivables of UGX.13.1Bn, by a total of UGX.72.0Bn. Furthermore, I noted that the reported receivables by UCC from the same entities differed from the reported payables to UCC by the same entities. The Accounting Officer was advised to engage management of the affected entities with a view of reconciling to the correct receivable figures. The Commission did not charge the 2% gross annual levy on the licensed Television and FM radio operators and no licensed Television and FM radio operator had submitted Audited financial statements to the Commission for assessment. This denied the Commission the revenue to implement development programs. The Commission lacks a Tribunal with the jurisdiction to hear and determine all matters relating to communications services arising from decisions made by the Commission or the Minister, contrary to Section 60(1 & 2) and 64(1) of the Uganda Communications Act, 2013. The accounting officer explained that the responsibility to appoint the tribunal resides with the President on the recommendation of the Judicial Service Commission. I advised management and the Board of Directors to liaise with the relevant authorities with the view of constituting the Communications Tribunal. +3 Rural Communications Infrastructure Program, Phase 5 – Uganda Project, IDA LOAN NO.5635-UG  I noted that MDAs and LGs are still experiencing challenges in implementing the budgets approved by parliament and policy guidance’s issued by PS/ST, which has continued to affect the performance and + + + + +229 + + + + + + + + + + + + 2020/21Opinion Unqualified credibility of the budget negatively. I noted that RCIP was lagging behind in some activities that would not be completed at the project end. I noted that all four components did not fully absorb the available funds. Out of the UGX.104.88Bn that was released to RCIP, the Project only utilised UGX.76.52Bn, thus failing to absorb funds to a tune of UGX.28.36Bn representing 27% of the released funds. It was noted that RCIP set clear performance targets and indicators for some activities to facilitate performance measurement. I noted that a total of USD.702,415 has so far been paid to the contractor for supply, installation and commissioning of the e-government procurement system, of which a total of USD.198,645 was paid during the year under audit. Government lost USD.208,156 for receiving quality assurance services for a system that had already been discontinued by Government +4 National Information Technology Authority – Uganda (NITA-U) 2020/21Opinion Unqualified  Analysis of domestic arrears over the past three years has shown a steep upward trend over the period with a 123% growth. The outstanding amount currently is UGX.6Bn. Further analysis revealed that most of the arrears relate to costs of expanding the national backbone infrastructure. The domestic arrears at hand now account for 14% of the annual GoU budget of the Authority. Such a trend is not only unsustainable but may lead to erosion of the credit worthiness of the Authority and may attract interest and penalties. Included in the Statement of Financial Position is a receivable of UGX.14.9Bn arising from the 1% levy on Telecoms due from Uganda Communications Commission (UCC) dating as far back as financial year 2016/17, whose recoverability is doubtful following a policy directive from the Ministry of Information, Communication and National Guidance to the effect that NITA-U should stop recognizing its share of 1% levy on Telecoms. UGX.1,532,979,432 reflected as non-produced assets in the Statement of Financial Position relates to land leased to NITA-U by Uganda Investment Authority. The same land has been leased to a private company without the knowledge of NITA-U. Although NITA-U filed a case against UIA in the High Court seeking a permanent injunction restraining UIA, the case was dismissed noting that the matter could only be determined under land law. By the time of audit, a developer to whom UIA leased the property had taken possession of the land and started undertaking developments on it. +5 Uganda Broadcasting Corporation (UBC). 2020/21Opinion Unqualified  Although the entity budgeted to receive UGX.45.83Bn only UGX.15.39Bn was collected and spent, resulting into a shortfall of UGX.30.43Bn which is 66.4% of the budget. The budget for the financial year 2020/2021 was developed on the assumption that UBC would receive the UGX.34.6 Billion approved by Parliament; however, the Corporation did not receive the funds as planned. This is an indication of unrealistic budgeting by the Corporation well aware of the effects of the Covid-19 pandemic Comparison of the trade receivables balances for current year and prior year indicates that the receivables decreased by 28% from UGX.30.79Bn to UGX.22Bn. An ageing analysis revealed that receivables worth UGX.13.549Bn from 228 clients were at least 7 years old without any movements in their ledger accounts, thus casting doubt as to their existence and recoverability. + + + + +230 + + + + + + + + + + + +  The Corporation has outstanding NSSF amounting to UGX.46.38Bn as at 30th June 2021. As a result, the Corporation and the Managing Director have been sued for non-payment and imposition of interest and fines by the NSSF due to non-remittance is now likely. This is wasteful as it could have been avoided if remittances had been made in a timely manner. +6 Uganda Post Limited. 2020/21Opinion Unqualified  I noted that despite this being the final year of the Strategic plan and collecting on average, over 86% of the budget, most objectives were not achieved, with some attaining between 21% and 39% of implementation. The key strategic objectives that were not met include Building a strong financial base to meet operational and project development budget, Attracting, deploying, developing and retaining a productive and motivated Human Resource, Strengthening the ICT unit to raise efficiency and competitiveness of UPL products and Rationalizing existing business lines and diversifying into low hanging opportunities to improve profitability. The company faces a liquidity crisis which was evidenced by delayed payment of staff salaries for over five months amounting to UGX.1.1Bn, non-payment of statutory obligations amounting to UGX.8.36Bn and failure to complete planned procurements. Management has initiated engagements with Statutory Bodies to settle the liabilities. . The company has a total of 11 disputed prime Properties with Uganda Telecom Limited in Administration and Uganda Institute of Communication and Technology. Engagements are underway to resolve the impasse. The company still lacks land titles for several pieces of land which include land in Mpigi, Tororo, Fort Portal, Kasese and Palisa. Management is expeditiously following up the matter. Although UPL procured the E-Posta System to record all transactions relating to postal services, some services like Home Delivery Services, Post Shop Sales, and Outbound Parcels are still recorded manualy. In addition, there is no interface between Transaction Processing Systems and the Sage financial management system. Manual recording of transactions is prone to abuse and errors +7 Uganda Communication Employees Contributory Pension Scheme (UCECPS) 2020/21OpinionQualified  I noted unsurpported payables amounting to UGX.2,679,752,000. I noted that eleven (11) properties disclosed as part of the non-core assets were not valued and therefore not included in the value of Non- current assets of the Scheme. A review and comparison made between the audited financial statements for the period ending 30th June, 2019 and the financial statements for the period ending 30th June, 2020 revealed inconsistencies in the account balances of reserves. Unsupported and un-reconciled receivables from Uganda Telecom LimiteD (UTL - IN ADMINISTRATION) I noted that the cash flow statement was misstated. I noted that out of the budgeted revenue of UGX.12,447,003,444 for the year 2019/2020, only UGX.2,264,969,444 was realised representing a performance of only 18.2% of the target which implied that the Scheme had a deficit of 81.8%. I noted unbudgeted expenditure totaling to UGX.88,575,000 I noted diversion of members’ contribution (dc) to pay Defined Benefits + + + + +231 + + + + + + + + + + + + (DB) liabilities amounting to UGX.4,550,343,000  +8 Agricultural Credit Facility (ACF) 2020/21OpinionUnqualiified  No significant findings. + TRADE SECTOR  +1 Quality Infrastructure and Standards Programme (QUISP). 2017/2018OpinionQualified  I observed that a sum of UGX. 80,034,014 and USD. 14,040 was paid to various officers and companies. However, contrary to the guidelines, the expenditure vouchers together with the supporting documents were not availed for audit verification. Payments amounting to UGX.28,798,048 were paid to officers to enable them carryout various QUISP activities. However, some of the expenditure lacked necessary supporting documents such as activity reports, payee’s acknowledgment and accountability receipts. The programme had outstanding commitments to the tune of UGX. 373,603,894 as at end of the financial year. According to a letter from the Embassy of Sweden to the Permanent Secretary Ministry of Trade, Industry and Cooperatives dated 27th April, 2017 activities to a tune of UGX. 147,264,493 were authorized to be charged on the QUISP Programme. The entity spent a sum of UGX. 147,468,378 leaving outstanding commitments of UGX. 226,135,516 as indicated in the schedule of outstanding commitments. I reviewed the Programme bank statements and noted that as at 31st March 2021, UGX. 10,426,029 and USD. 1,973.43 was still on account. Failure to spend funds resulted in partial and non-implementation of planned activities. I observed that a sum of UGX. 4,038,651 was deducted from two (2) service providers in respect of 6% withholding tax for onward remittance to Uganda Revenue Authority The project procured 79 assets over the Programme life time. In March 2021, I carried out an inspection of the assets procured under the Programme and noted that 12 were functional, 2 (vehicles) were under repair, 16 were old and beyond repair, 12 were non-functional while 37 were not availed for verification. I could not assess the status of the 37 assets that were not availed. +2 Uganda Export Promotions Board 2020/21OpinionUnqualified  The entity budgeted to receive UGX.5.813Bn. However, UGX.3.759Bn was warranted, resulting into a shortfall of UGX.2.054Bn, which is 35.4% of the budget. This affected implementation of planned activities. It was observed that the term of office for the previous Board expired on 5th October 2019, and no replacement Board had been appointed by the time of issuance of my report. This is likely to affect the strategic direction of the entity. For example, I noted that at the time of the audit (June 2021), the entity’s strategic plan was in draft form and was not approved due to the lack of a Board. I noted that contracts worth UGX.192Mn were awarded to bidders who + + + + +232 + + + + + + + + + + + + did not submit the required documents to evidence the eligibility and administrative compliance as required by regulations and bid documents at the preliminary stage. +3 Uganda Freezones Authority (UFZA) 2020/21OpinionUnqualified  Contrary to Section 15 of the Public Finance Management Act 2015, the Authority overspent to the tune of UGX.635Mn on recruitment and personnel costs in excess of what was approved by the Board. The entity budgeted to collect NTR amounting to UGX.2.101Bn but was only able to collect UGX.0.06Bn resulting into a shortfall of UGX.2.04Bn, which is 97.13% of the NTR budget. The paltry performance was attributed to COVID19 disruptions. The development work on 5 acres of land at Entebbe International Airport commenced in September 2020 and works worth UGX.4.146Bn (27%) had been certified as completed as at 30th June 2021. However, the Authority had affected 89% advance payment to NEC as at 29th June 2021, amounting to UGX.15.34Bn and all the advance guarantees staked had expired. Although the Authority has taken possession of 109 acres of land at Buwaya purchased at UGX.7.6Bn and 5 acres of land at Entebbe International Airport purchased at UGX.850Mn, it still lacks land titles to confirm legal ownership. +4 Uganda Warehouse Receipt System Authority (UWRSA) 2020/21OpinionUnqualified  The Uganda Warehouse Receipt System Authority had an approved budget of UGX.8,904,499,400 for the year. A review of the entity’s receipts, cashbook and bank statement for the period ending 30th June 2021 revealed that UGX.8,035,212,980 was received under the normal budget appropriation Whereas the overall Government National Development Plan (NDP II1) 2020/2021-2024/2025 was commissioned in the year under review, UWRSA had no approved strategic plan for the period under review I noted that the entity did not budget for any tax revenue despite collecting 84 million. Failure to budget for NTR conceals the entity’s potential collect revenue and also complicates assessment of performance since there is no benchmark. I noted that out of the budgeted revenue of UGX. 8.899Bn from the Central Government for 2020/2021, and only UGX. 8.035Bn was received, representing a performance of only 90 % of the release. The entity had a cash balance brought forward of UGX.134,172,095 from FY 2019/2020 and received UGX.8,035,212,980 making total cash available for spending in FY 20/21 of UGX.8,169,385,075. Out of the total cash available to spend, only UGX.3,730,897,866 was actually spent by the entity, representing an absorption level of 46%. This resulted into a balance of UGX.4,438,487,209 (54%) as unspent funds. I compared the consolidated procurement plan, monthly procurement reports and procurement files availed and established that a number of procurements worth UGX.2,621,000,000 were not completed as of 30th June 2021. Failure to implement planned activities despite availability of funds. I noted that the Board sat only once during the year under review on 16th September 2020. I also noted that the Chairperson of the meeting did not sign the minutes for the meeting. I noted that the Board had not developed some governance policies, manuals and other documents that would help in the smooth running of + + + + +233 + + + + + + + + + + + + the Authority. The Authority received from the Treasury UGX.13,237,853,910 for the last three financial years to deliver its mandate; however, no tangible results are indicating that it is effective. I established that procurements worth UGX.62,390,000 were implemented during the year, and yet they were not in the Authority’s consolidated procurement plan. +5 Competitiveness and Enterprise Development Project (CEDP) Component 2-5 IDA Credit Agreement CR 52690-UG PROJECT ID P130471. 2020/21OpinionUnqualified  Competitiveness Enterprise Development Project (CEDP) approved budget for the Financial Year 2020/2021 was UGX.24.18Bn Comprising: UGX.23.5Bn IDA funding and UGX.742.3Mn GoU contributions. Expenditure was UGX.17.4Bn, yielding a 72% budget performance. The facility's construction certified completed civil works was at 95% on 28th November 2021, and that out of the contract amount of UGX.46,168,410,564, a total of UGX.38,463,565,811 (83.3%) has been paid so far. The construction of the Building works at UHTTI was expected to be completed by 25th April 2019, and several extensions were entered into up to 30th June 2021. By the time of my field inspection, construction was still ongoing. +6 Great Lakes Trade Facilitation Project (GLTFP). 2020/21OpinionUnqualified  I noted that the project management had failed to achieve its objectives by the initial project closure date of 31st December 2020. As at 30th June 2021, a total of UGX.6.862Bn representing 62% was available for spending as indicated in the Statement of Financial performance leaving a budget deficit of UGX.4.106Bn representing 38%. Audit noted that out of UGX.6.862Bn total funds available for use during the year, the project managed to utilize UGX.4.423Bn in the implementation of various project activities, leaving an unspent balance of UGX.2.439Bn (25% of the available funding). +7 Ministry of Trade, Industry and Cooperatives 2020/21OpinionUnqualified  I reviewed the approved revenue estimates for the financial year 2020/2021 and noted that the Ministry budgeted to receive Revenue of UGX.233.147Bn during the year under review. The entity received UGX.230.417Bn as releases from the consolidated fund representing the overall performance of 98%. The Ministry budgeted to collect UGX.0.072Bn but realised UGX.0.053Bn, hence a shortfall of UGX.0.019Bn representing 25.4% of the budget. Out of UGX.230.417Bn released for various activities, UGX.229.123Bn was spent by the entity resulting into an unspent balance of UGX.1.294Bn representing an absorption level of 99%. Analysis of the vote performance revealed that a number of programs remained outstanding at the year-end, leaving a total unspent balance of UGX.2.0726Bn. The entity charged different expenditure codes for several expenditure items from those stipulated in the chart of accounts. This resulted in mischarging of expenditures worth UGX.81,083,608. Analysis of domestic arrears over the past three years has shown an upward trend in arrears from UGX.10.4Bn in 2018/19 to UGX.19.4Bn in 2020/21. I observed that the Ministry had not paid verified domestic arrears worth + + + + +234 + + + + + + + + + + + + UGX.16.743Bn. I noted that the Ministry accrued domestic arrears worth UGX.242Mn during the financial year. I noted that a total of UGX.159,543,267 paid to service providers and advances to various staff was not adequately supported with accountabilities and supporting documents such as requisitions, receipts, activity reports, minutes of meetings. Payments amounting to UGX.73Mn were advanced to personal accounts of staff to make onward payments to suppliers for services like office internet, hotels, workshop related expenditure, among others. I noted that as of 30th June 2021, several compensations claim worth UGX.165Bn by some Cooperative Societies had not been verified. There was also no evidence that verification teams had been constituted to undertake the verification exercise. Examination of records revealed that for some Cooperatives, the amounts to be paid as compensation for war losses were in excess of the amounts originally claimed by the Cooperatives. I noted that payments amounting to UGX.14Bn were made to persons and law firms other than the beneficiary Cooperative Societies. review of the procurement processes revealed that, for eight (8) procurements valued at UGX.282,626,237, the estimated market prices approved by the Accounting Officer on Form 5, were the same as those quoted by the best-evaluated bidder and subsequently awarded. I observed that the evaluation committee and Contracts committees did not detect the questionable coincidence. The ministry acquired a lease on an already existing lease for land and subsequent loss of funds. +8 Uganda National Bureau of Standards. 2020/21OpinionUnqualified  The Beareau was unable to activate the use of the Digital Tracking System (DTS) to enforce conformity to standards of selected items and claim the associated fees due to absence of an enabling regulation to operationalise the Service. As a result, the Buereau was unable to claim for a total of UGX.13Bn charged on goods and services for conformity stamps issued by the provider towards conformity enforcement. There is a risk of misuse of the amounts involced by the private provider. The Bureau released 366 consignments without testing due to lack of capacity and another 633 consignments released due to the absence of standards to test these commodities for conformity. Lack of capacity may lead to the release of sub-standard products to the market. I noted that out of the approved staff structure of 666 positions, the Bureau had only filled 439, leaving a staffing gap of 227 (34 %). As a result, there was staff presence at only 27 out of the 170 border entry points. There is a risk of sub-standard goods entering the country through border points where the Bureau staffs are not present. It was noted that procurements to the tune of UGX.2.735Bn were not completed as of 30th June 2021. This was attributed to several reasons, including failure to attract competitive bidders for some procruements, delayed submission of clear specifications, especially for specialised equipment, late submissions/ initiations of procurement requisitions by the users, as well as delayed deliveries due to COVID-19 especially for specialised Equipment. Un implemented activities imply that the provision of critical government programs and associated services were delayed. + + + + +235 + + + + + + + + + + + +9 Uganda Development Corporation (UDC). 2020/21OpinionUnqualified  Out of the total funds received of UGX.137.27Bn only UGX.63.39Bn was spent by the entity during the year, resulting into an unspent balance of UGX.73.88Bn representing an absorption level of only 46%. I noted that out of the 17 development project activities planned to be implemented during the period under review, only (3) three development projects were fully implemented, while Five (5) development projects were partially implemented, Eleven (11) projects were not implemented at all. Failure to fully absorb funds by the Corporation, leads to non-achievement of development objectives. The UDC Act 2016 requires capitalisation of UDC to the tune of UGX.500Bn. The same Act also established an Industrial and Economic Development Fund which was to be run by the UDC. However, 5 years later, the company has never been capitalised to that tune; currently the capitalisation grants have accumulated to UGX.311Bn and the Industrial and Economic Development Fund has never been operationalized. The current funding model, is such that capitalisation grants over the years come assigned to specific projects which nullifies the investment appraisal process of UDC. This has the disadvantage of earmarking funds for investments that are not ready or even viable leading to the low absorption noted above. An amount of UGX.30.46Bn was invested in various companies by UDC during the year without valuation. Shareholding in these companies had not been secured by the time of reporting. There is a risk of loss of value. Although the UDC Act 2016 provides that the Corporation will take over the interest of government in seven entities specified in schedule 2 and to manage, promote and facilitate the interest of the government in those entities, 5 years later, this had not been done except for Nile Hotel Limited. The other entities include: Amber House Limited, Embassy House, Development House, Munyonyo Commonwealth Resort, Phoenix Logistics and Tri-Star Apparels Limited. There is a risk of loss of strategic direction and government may not be aware whether the national objectives of import substitution, employment and industrialization are being met by these entities. +10 Uganda Investment Authority. 2020/21OpinionUnqualified  The Authority received off-budget financing to a tune of UGX.50.43Bn, which was not transferred to the consolidated fund as required by law. These funds were received directly from development partners to the EPC contractor for the Development of infrastructure at Kampala Industrial and Business Park, Namanve. Off-budget financing distorts planning, may result into duplication of activities and is contrary to the Public finance Management Act 2015. The approved budget estimates for the Authority for the financial year 2020/2021 indicated that only UGX.22Mn out of UGX.2.411Bn was budgeted towards the settlement of domestic arrears. The arrears balance of UGX.2.389Bn was therefore not budgeted for settlement. Failure to provide resources for the accumulated arrears increases outstanding obligations. The Authority continued to accumulate domestic arrears with a total of UGX.1.768Bn incurred in the financial year under review, without clearing outstanding arrears from the previous financial year 2019/2020 of UGX.2.411Bn. The total accumulated domestic arrears stood at UGX.4.18Bn at 30th June 2021. This is an indicator of non adherence with the commitment control system of government. During inspections countrywide, I observed that the industrial parks lack or had inadequate infrastructures like roads, solid waste and sewage + + + + +236 + + + + + + + + + + + + management systems, power supply, street lights etc. The Parks have been characterized by encroachment, farming and cattle grazing, degradation of nearby swamps, unallocated land, idle land allocated to unserious investors and misunderstandings between investors and park management staff. Most roads are impassable and with inadequate lighting which exposes the parks to thefts and insecurity. I observed that some factories in the parks have set up their own infrastructure which may not be sustainable, and to the desired standards. This may negatively affect the usage and utilization of the parks. The Authority lacks regulations required under Section 38(1) of the Investment Code Act to operationalize the statute. This may hinder the smooth implementation of the Act which is meant to create an investment enabling environment. Although the Authority has 124 approved positions, only 78 (i.e. 62.9%) are filled, leaving 46 (37.1%) vacant positions. Among the vacant positions include 24 unfilled positions that are from the core Directorate of Investment which is the backbone of UIA. Understaffing undermines service delivery. + TOURISM SECTOR  +1 Uganda Hotel and Tourism Training Institute (UHTII) 2020/21Opinion Unqualified  Management failed to collect tuition fees and accumulated receivables to the tune of UGX.460Mn by close of the financial year, with some debts dating as far back as 2014. I observed that some students who had not cleared fees had completed their studies, graduated and even obtained their certificates rendering such receivables uncollectible. I noted that the entity had prepared a new strategic plan, but had no proof of certification and approval of its plan by NPA. Management explained that the exercise was interrupted by Covid-19 Lock down and closure of schools. Out of 175 approved posts for the Institute, only 127 were filled, resulting into a staffing gap of forty-eight (48) positions. Furthermore, seven (7) positions were filled by staff in an acting capacity including the Position of the Principal. Staffing gaps limit the Institute’s ability to effectively deliver the intended services. +2 Uganda Hotel and Tourism Training Institute. 2019/20Opinion Unqualified  I noted that the budget is not aligned to the specific outputs and therefore, I could not analyze the outputs achieved and planned in line with the approved budget. I noted that at the time of the audit (June 2020), out of the planned eight (8) strategic targets/goals, one (1) target had been fully achieved, six (6) were partially achieved while one (1) target was not achieved at all. The entity budgeted to collect NTR of UGX.2,064,355,474 during the year under review but only UGX.1,146,143,225 was collected. Out of the total receipts for the financial year of UGX.5.296 billion, UGX.4.774Bn was spent. I noted that the entity had outstanding receivables totalling to UGX.181,480,747 Failure to Develop Performance Agreements/targets for Senior Managers. The Institute procured assorted items valued at UGX.36,097,220, however, I was not provided with stores documentation such as Ledgers, + + + + +237 + + + + + + + + + + + + Stock cards and Goods Received Notes. +3 Uganda Wildlife Education Conservation Centre (UWEC). 2019/20Opinion Unqualified  Out of the 29 quantified outputs/activities assessed, 20 outputs/activities representing 69% were fully implemented; 4 outputs/activities representing 14% were partially implemented while 5 outputs/activities representing 17% were not implemented at all. I noted that out of the budgeted NTR of UGX.5,360,000,000; only UGX.3,737,222,734 was collected representing performance of only 70% of the target. I noted that the construction of the floating restaurant stalled. To date, the project is still at the first-floor stage and has since not been opened to the public. A review of UWEC records revealed that UGX.6.6million was spent for resurveying the land on which the Centre is located. However, by the time of audit, the title had not been transferred to the Centre’s names. +4 Uganda Wildlife Research and Training Institute (UWRTI). 2019/20Opinion Unqualified  I observed that out of the budgeted NTR of UGX.435,000,000, only UGX.328,287,026 was collected representing a performance of 75% of the target. I noted that although the entity received more funds than were budgeted some of the activities remained either partially or not implemented at all. I observed that UGX.52,224,850 was paid directly to staff accounts to procure particular items or pay other staff members yet the funds in question, could have been paid directly to the intended final beneficiaries. A review of the staffing structures for the UWRTI revealed that, out of the total approved structure of 46 staff, only 23 (50%) positions were filled while 23 (50%) positions had not yet been filled. I noted that several direct procurements amounting to UGX.122,943,179 were made by the entity without justification for use of the direct procurement method. I observed that the Governing Council is not fully constituted, since a representative of the Academic Board has not been nominated. +5 The Handicraft and Souvenir Development Project (HSDP) in Uganda for the year ended 31 st Dec 2020.Opinion Unqualified  I noted that cumulatively a total of USD.940,460.00 had been disbursed to the Project by 31st December 2020, out of which USD.430,916.94 had been utilized, leaving a closing balance of USD.509,543.06 as at 31st December 2020. It was also noted that no activity had been fully implemented/completed as of the time of this audit as they all remained either partially achieved or not achieved at all. +6 Nile Hotel 2020/21Opinion Unqualified  I noted that out of the budgeted revenue of UGX.2.041Bn from Concession fees and Investment income from fixed deposits, only UGX.1.191Bn was received, representing a performance of only 58% of the target. Failure to realise all budgeted revenue affects the implementation of planned activities. This was attributed to the effects of the COVID19 pandemic on the Tourism sector. I noted that the entity is not in possession and is not aware of the exact whereabouts of the land title to the land on which Serena Hotel Kampala, is seated. The land is located on Plot 16-20 Nile avenue measuring 19.3 acres. The land is listed as part of the assets in the concession agreement + + + + +238 + + + + + + + + + + + + that was signed between the Government of Uganda and TPS Uganda Limited and was leased by ULC and Nile Hotel International Ltd (NHIL) in 1995. +7 Uganda Wildlife Authority. 2020/21Opinion Unqualified  This being the first year of implementation of the NDP-III, the entity was expected to prepare a strategic plan aligned to NDP III and ensure that the plan was approved. I reviewed the NTR estimates, revenue sources and rates charged at vote level for the financial year 2020/2021 and noted that the entity budgeted to collect NTR of UGX.82.Bn (Exclusive of UGX.30Bn prior-year surplus approved for re-investment during the year under review). The entity budgeted to receive UGX.6.24Bn from donors, however, UGX.5.74Bn was realized, resulting into a shortfall of UGX.501Mn (8%) of the budget. The entity budgeted to receive UGX.0.72Bn, out of which UGX.0.762Bn was received, resulting into an excess receipt of UGX.0.042Bn, representing 5.8% of the budget I noted that Management re-assessed its revenue performance and requested the Board to approve a contingency plan to limit the expenditure of the Authority to only UGX.72.595Bn in line with the reduced revenue collections to finance only priority activities in the original approved budget of UGX.119.469Bn for FY 2020-2021. I noted that the Authority prepared and submitted all the quarterly reports to the line ministry. However, there were delays in submission of Q1, Q2 & Q4 performance reports due to the effect of the covid-19 pandemic. I noted decreasing Tourism Revenues due to Covid-19 Effect. It was observed that the Authority has a total outstanding receivables balance of UGX.3.303Bn in the statement of financial position, of which UGX.2.244Bn are unpaid overdue fees from concessionaires that have been outstanding for more than a year. It was noted that the entity has outstanding payables of UGX.71.655Bn in the statement of financial position of which UGX.8.422Bn are accrued staff gratuity that becomes due at the end of each staff’s four year contract. UWA had only disbursed UGX.642,455,690 in respect of revenue sharing for the surrounding communities in Lake Mburo National Park, leaving a balance of UGX.9,697,730,137 un-disbursed. The Accountabilities of the disbursed grants have not yet been availed by the beneficiary communities through to the district local governments by the time of audit on 3rd November 2021. I noted that whereas the Human Resource unit is critical in managing staff-related affairs, it is only situated at the headquarters and comprises five (5) staff. Non-integration of gorilla booking system to the accounting system. It was noted that most of the Protected Areas in Uganda are currently undergoing ecosystem changes as rangeland infestation by invasive and exotic plant species. +8 Wildlife Research and Training Institute 2020/21  I reviewed the NTR estimates, revenue sources and rates charged at vote level for the financial year 2020/2021 and noted that the entity budgeted to collect NTR of UGX.0.495Bn during the year under review. Out of this, + + + + +239 + + + + + + + + + + + + Opinion Unqualified only UGX.0.200Bn was collected, representing a performance of 40.6% of the target. The entity budgeted to receive UGX.3.931Bn during the period, out of which UGX.2.531Bn was warranted, resulting into a shortfall of UGX.1.4Bn, which is 36% of the budget. A review of the staffing structure for UWRTI revealed that out of the total approved structure of 47 staff, only 23 (49%) positions were filled and 24 positions (51%) had not yet been filled. A review of the procurement files revealed that the Institute awarded contracts to various providers totalling UGX.519Mn without carrying out market assessments/surveys. +9 Uganda Wildlife Education Conservation Centre. 2020/21Opinion Unqualified  I noted that UWEC is one of the entities affected by the Government rationalisation policy on mergers anticipated to be concluded in 2023. By the time of reporting, discussions on transitional arrangements were ongoing. However, I was not provided with the transitional plans for a smooth merger. Delayed decision making leads to costly mergers and uncertainity amonst the stakeholders. Five (5) procurements with a total value of UGX.3.239Bn were not implemented as planned due to insufficient release of funds from GOU and the adverse effects of the covid-19 pandemic resulting into delayed service delivery. Although some electronic equipment and motor vehicles at cost of UGX.331Mn had been fully depreciated as per the previous financial year, they were still in use. Under the circumstances, the benefits accruing from them are not matched with their usage/expenditure. Management explained that the revaluation of assets had started, but COVID – 19 effects hindered the process. +10 Ministry of Tourism, Wildlife and Antiquities. 2020/21.Opinion Unqualified  The entity budgeted to receive UGX.27.408Bn out of which UGX.22.934Bn was warranted, resulting into a shortfall of UGX.4.474Bn which is 16.3% of the budget. This affected implementation of planned activities. I further noted that the Ministry did not seek a revision of its budget and work plan, as provided for by Section 17 (3) of the PFMA 2015, following the revenue shortfall. Out of the approved staffing level of 334, the Ministry has only 201 positions filled (60.2%) leaving a staffing gap of 139 positions (39.8%). Included in the unfilled positions are key ones (1 Director, 3 Asst. Commissioners and a Principal). Inadequate staffing results into heavy workloads on existing staff and affects the Ministry’s performance which in turn affects the overall level of service delivery. The Ministry of Tourism, Wildlife and Antiquities entered into an MOU with a foreign company on 5th February 2020 to enable Uganda host the 2020 edition of MTV Africa Music Awards (MAMA) on 13th June 2020. The agreed sponsorship fee was USD.3,500,000 (equivalent to UGX 12.6Bn). The first installment of UGX.10.4Bn was paid on 12th March 2020. However due to the COVID 19 pandemic which came about in March 2020, staging of the event could not take place as earlier planned. On 9th November 2020 an addendum was signed between MTWA and the company to modify the function so that it is held virtually on 20th February 2021. Thereafter a second installment of UGX.2.596Bn was paid on 19th January 2021. However, due to a heightened electoral season, the grand finale did not take place. Consequently, the organizers announced cancellation of the function on 14th June 2021. + + + + +240 + + + + + + + + + + + +  Attention is drawn to Note 19 of the financial statements in which management made a provision to reduce the receivable amount from UGX.13Bn to UGX.3.2Bn given the preliminary findings by a company engaged to assess recoverability of the funds. +11 Uganda Tourism Board. 2020/21Opinion Unqualified  Contrary to Section 45 (3) of the Public Finance and Management Act, 2015, the Board failed to implement procurements worth UGX.2.79Bn which had been indicated in their procurement plan. Unimplemented procurements signify unimplemented activities and therefore delayed service delivery. Contrary to Section 26 (4) of the PPDA 2003, procurements for stationery worth UGX.1.67Bn were concluded without carrying out market assessments. As a result, I could not establish how the estimated unit cost for these procurements was arrived at, thus implying that the procurements may have been awarded at exorbitant costs. A review of the Board's establishment structure revealed that 38 posts out of the approved 85 remained vacant during the year, indicating a 45% understaffing level. Most notable among the vacant positions are key staffs like the Director Marketing, Director Quality Assurance, Director Finance and planning, and Manager Human Resource. Inadequate staffing levels not only deprive the entity of the skills required to enhance service delivery but also frustrates segregation of duty. + WATER ANDENVIRONMENT SECTOR  +1 Kampala Sanitation Program (KSP) Closure 2020/21Opinion Unqualified  Contingent Liabilities A contractor’s global claim of Euros 25,043,073 arising from the contractual obligation of extension of time and causation of delays in project completion which was approved; A compensation claim of UGX220 Million which is now before the Land Division of the High Court Civil suit No.109 of 2019 and thus the outcome of the compensation claim will be determined by court; A compensation of UGX1.15 Billion which is now before the Land Division of the High Court HCCS NO. 518 of 2016 and thus the outcome of the compensation claim will be determined by court. +2. National Forestry Authority 2020/21Opinion Unqualified  The Authority prepared and had its strategic plan for the period 2020/2021 to 2024/2025 approved by the Board, however there was no certification from NPA. Out of the approved NTR estimate of UGX 12.966 billion, the Authority collected UGX 10.372 billion representing a performance of 80% of the target. Out of the approved GoU budget of UGX. 42.582 billion, UGX. 32.074 billion (75.3%) was warranted, resulting in a shortfall of UGX. 10.508 billion (24.7%). Of the total receipts for the financial year of UGX 32.074 billion, only UGX 31.304 billion was spent by the entity representing an absorption level of 97.6%. Out of the six (06) outputs with a total of twenty (20) activities and budget of UGX 42.12 billion, five (5) outputs with a total of fifteen (15) activities were fully quantified while one (1) output with a total of five (05) activities was not quantified at all. Of the 5 outputs with 15 activities worth UGX.31.68 billion assessed for budget implementation, 01 activity (6.7%) was fully implemented, 13 activities (86.6%) were partially implemented, while 1 activity (6.7%) + + + + +241 + + + + + + + + + + + + was not implemented at all. I noted a significant receivables balance of UGX 8,268,255,693 at close of the financial year which impacts the liquidity capacity of the Authority. There were irregularities in forest land utilization with four (4) unlicensed Central Forest Reserves (one in Kajansi and three in Lutoboka) and 24 non-complying developers in CFRs. I noted irregularities in forest land utilization, inactive private tree planters in CFRs, non-operationalisation of the Tree Fund, Out-dated Forest Reserve Management Plans and major encroachment on CFRs. +3 Uganda National Meteorological Authority (UNMA). 2020/21Opinion Unqualified  The Authority collected NTR of UGX 317,259,177 out of the estimated UGX 1,259,080,696 representing a performance of 25.2%. Out of the budgeted revenue of UGX 26,675,604,875, only UGX 19,025,934,156 was realized representing performance level of 71.3% of the target. Out of UGX 19,025,934,156 warranted, UGX 17,970,307,440 was absorbed by the authority leaving unspent balance of UGX 1,295,279,000 representing 94.5% absorption level. The Authority received off-budget financing of UGX. 668,042,740 Five (5) outputs with a total of twenty-eight (28) activities and expenditure worth UGX 5,094,648,000 were fully quantified, while Three (3) outputs with a total of thirty-seven (37) activities and expenditure worth UGX 2,682,683,000 were insufficiently quantified. Of the 5 outputs with 28 fully quantified activities, 7 activities (25%) were fully implemented, 10 activities (35.7%) were partially implemented, while 11 activities (39.3%) remained unimplemented. There was delayed completion of the Radars in Mwizi-Rwampara and Lira due to the restrictions of Covid 19 lockdown. The average functionality of all the weather stations is at 89% instead of the desired 100% resulting from the non-functional meteorological equipment. +4 Investment plan preparation grant for the strategic plan for climate resilience. 2020/21Opinion Unqualified  Two out of the three (3) sub objectives of the Project, were fully achieved while the third objective of building capacity of both national and subnational stakeholders in the management of climate change disasters was partially achieved. Out of the approved grant of USD 1,500,000, only USD 1,391,587 has so far been disbursed (92.77%) leaving an undisbursed amount of USD 108,413 (7.23%). Out of the Project available funds of USD 290,641.50 (UGX 1,063,396,206), USD 160,807.11 (55.33%) was spent leaving an unspent balance of USD 129,834.39 (44.67). All the nine (09) activities with a total budget of USD 290,641.50 (UGX 1,063,396,206) planned for implementation in the financial year 2020/2021 were properly quantified. Out of nine (09) planned activities for implementation, six (06) activities (66.67%) were fully implemented; one (01) activity (11.11%) was partially implemented while two (02) activities (22.22%) were not implemented at all. Payables relating to 6%WHT had accumulated to UGX 36,025,563 from UGX 24,878,054 reported in the prior year financial statements. Statutory deductions amounting to UGX 11,147,509 relating to 6%WHT + + + + +242 + + + + + + + + + + + + were not remitted to the Uganda Revenue Authority. +5 Integrated Water Management and Development Project- NWSC 2020/21Opinion Unqualified  No material findings to report. +6 National Water and Sewerage Corporation- Kampala Water Lake Victoria Water and Sanitation (KW-LV WATSAN I) PROJECT 2020/21Opinion Unqualified  I noted that NWSC delayed to pay the Contractor and as a result, the contractor claimed for interest of Euros 141,968 approximately UGX.610 Million. I also noted changes in the scope of the contract which resulted into a contract variation of Euros 612,000 (approximately UGX 1.4 Billion). +7 NATIONAL ENVIRONMENT MANAGEMENT AUTHORITYOpinion Unqualified  The Authority collected NTR of UGX.8,084,594,955 (50.2%) against the estimated UGX.16,088,769,336 as projected by Ministry of MOFPED. However, there were no NTR estimates indicated in the statement of appropriation. Out of the budgeted GoU revenue of UGX.25,555,655,669 by the Authority, only UGX 18,809,799,829 was warranted representing performance of 73.6% of the target. I noted that out of the UGX.18,809,799,829 released to the Authority, only UGX.18,494,875,926 was spent representing an absorption level of 98.3%. Subsequently, the unspent funds amounting to UGX.314,923,903 were swept back to the Consolidated Fund. The Authority received off-budget funding to the tune of UGX.1,963,413,072 and USD 2,805,651,484 which were not appropriated as required by the law. 9 (69%) of the 13 activities (against which UGX 9,707,487,720 was released) were fully implemented and 4 (31%) of the activities were partially implemented. Contrary to the directive from the Ministry of Finance, during the financial year a total of UGX 441,857,268 was deposited directly into the National Environment Fund (NEF) account as NTR and this amount was not remitted to the consolidated fund. The Authority does not have any legal provision to regulate the work of the Environment Police. In addition, the funds to facilitate the work of the force were not budgeted for in the annual work plan and budget. Financial records indicate that only UGX.21,280,000 was spent on the force during the year. I noted that all the wetlands in Uganda are not gazetted, contrary to Section 2 of the National Environment Act 2019, although they are indicated on the maps. In addition, contrary to Instrument 2 of the Nation Environment Act, 2019 (Commencement) that empowers the Authority to enforce wetland gazetting, the Authority went ahead to collect NTR from wetland user permits amounting to UGX 8,800,000 + + + + +243 + + + + + + + + + + + + during the financial year 2020/21. +8 Strategic Towns Water Supply and Sanitation Project. 2020/21OpinionUnqualified  Out of the total budget of UGX 40 Bn for the financial year, only UGX 19.24 Bn was received representing a performance level of 48%. Out of the amount received, UGX.18.88 Bn was spent during the year representing an absorption level of 98.13%. I noted that of the 12 quantified activities worth UGX.35.63Bn assessed, 8 activities representing 66.7% were partially implemented, while 4 activities representing 33.3% were not implemented at all. I noted slow progress of work for Construction of Kayunga – Busaana water supply system due to failure to access imported materials as a result of the COIVD 19 pandemic. +9 Irrigation for Climate Resilience Project 2020/21OpinionUnqualified  Out of the budgeted revenue of USD 13,641,026, only USD 6,305,937 (46.2%) was realized representing performance level of 46.2% of the target. Out of USD 6,305,917, disbursed, there was no absorption by the project as at close of the financial year. Twenty-two (22) outputs with a total of thirty three (33) activities and budget of USD 13,641,026 were fully quantified as required. Out of 22 outputs with a total of 33 activities, only 1 activity (3%) was fully achieved, 27 (82%) were partially achieved and 5 activities (15%) were not implemented at all. +10 Enhancing Resilience of Communities to Climate Change (EURECCCA) 2020/21OpinionUnqualified  At the end of the initial project completion date of 30th April 2021, all the four project components had been partially achieved and thus, the project completion date was extended to 30th April 2022. Out of the approved budget of UGX 17,768,973,403 (USD 4,670,392), UGX 7,799,443,700 (USD 2,050,000) was realized representing a performance of 43.9%. Out of the total available funds of UGX.8,690,311/616, a sum of UGX.8.541,200,193 was spent representing 98.3% absorption. All the 15 planned outputs with a total of 42 activities were fully quantified to enable assessment of performance and enhance accountability. Out of the 42 planned activities 19 (45.2%) were fully implemented, 22 (52.4%) were partially implemented and 1(2.4%) was not implemented at all. +11 Nyabyeya Forestry College (NFC)OpinionUnqualified  The College does not have an approved strategic plan for the period 2021-202 and lacks an enabling law that stipulates its mandate. There is a risk that activities implemented during the financial year 2020/2021 were not aligned to the NDP-III, which negatively affects the achievement of the National Development objectives Out of the total receipts of UGX 2,753,839,117 for the financial year, UGX 2,911,962,444 was spent resulting into an over expenditure of UGX 158,123,327 representing an absorption level of 106%. The over absorption of funds was due to the opening balances for civil works executed even during the Covid-19 lockdown. I noted a decline in students’ enrolment from 431 students in 2016/17 to 256 students in 2020/21. Continued fall in enrolment may result in the College’s failure to achieve its mandate of producing technical human resource in forestry and related natural resources through training. +12 Farm Income Enhancement and Forestry Conservation Project Phase II (FIEFOC  The Project has not fully achieved the three project subcomponents of Agriculture Infrastructure Development, Agribusiness Development and + + + + +244 + + + + + + + + + + + + II). 2020/21OpinionUnqualified Integrated Natural resources Management which had been set to be achieved by 30/06/2021. The project had an approved annual budget of UGX 111,249,503,000 out of which UGX 63,414,586,000 (57%) was received leading to a shortfall of UGX 47,834,917,000. Out of the total funds received of UGX 63,414,586,000, a total of UGX 63,250,130,000 was spent, representing an absorption level of only 99.7%. Out of the Nine (9) outputs with a total of twenty-nine (29) activities and expenditure worth UGX 51,914,542,000, six outputs with a total of twenty six (26) activities were fully quantified, while three outputs with a total of three (3) activities were not quantified at all. Of the 6 outputs with 26 fully quantified activities, 18 activities (70%) were fully implemented, 4 activities (15%) were partially implemented while 4 activities (15%) were not implemented. I noted that the Project extended loans to beneficiaries to the tune of UGX.2,315,145,994. However, out of the amounts due for collection of UGX.1,364,364,026, only UGX. 45,062,600 (3.3%) had been recovered by 30th June 2021, leaving a balance of UGX 1,319,301,426 outstanding. There is slow progress of works at Wadelai irrigation scheme with major outstanding works, such as; main canal not completed; Embankment not completed with only 0.5km out of 2.3km fully worked on; 3 secondary canals half-done leaving 2 not yet started on; 7 out of 8 tertiary canals for secondary canal 1 done and none for the other 4 secondary canals done; Farm land clearing not done; and Eco system scheme toilets not done. +13 Integrated Water Management and Development Project (IWMDP) 2020/21OpinionUnqualified  Out of the approved budget of UGX 70,327,857,900, UGX.52,949,933,856 (75.3%) was availed for spending leading to a shortfall of UGX.17,377,924,044. Out of the total funds available for the financial year of UGX.52,949,933,856, UGX.20,830,393,625 was spent representing an absorption level of only 39.3%. Fifteen (15) outputs with a total of twenty-seven (27) activities and expenditure worth UGX.14,957,387,000 were fully quantified, while one (1) outputs with one (1) activity was inadequately quantified. Of the 15 outputs with 27 fully quantified activities, 2 out puts (13%) were fully implemented, 6 out puts (40%) were partially implemented while 7 out puts (47%) were not implemented. Review of the project appraisal document, the monitoring and results framework analysis report of October 2021 together with annual progress reports revealed that the rate of achievement of project targets is slow as a result of procurement delays. +14 Northern Uganda Resilience Initiative Project 2020/21OpinionUnqualified  Out of the total rolled over funds of UGX.1,520,434,217 from the previous financial year, the project spent UGX.1,055,516,512 (69%) leaving an unspent balance of UGX.464,917,705 (31%). Out of the 17 planned activities for the financial year 2020/2021, only 2 activities were quantified as required leaving 15 activities unquantified. Of the 17 activities planned; 5 (29%) were fully implemented, 6 (35%) were partially implemented, 1 activity (6%) was not implemented while 5 activities representing 29% were not reported on in the annual performance report. + + + + +245 + + + + + + + + + + + +15 Third National Communication (TNC) 2020/21OpinionUnqualified  Out of an approved budget of USD.173,474, USD.83,000 was disbursed representing a performance level of 47.8% of the target. Out of the total available funds for the year of US$ 92,304.34, the project spent US$ 60,493.32 representing an absorption level of 65.6%. As a result some activities were not implemented. All the 16 outputs with a total budget of USD.173,474 and actual expenditure of 60,555.97 were not quantified at all. +16 Water Supply and Sanitation on Refugee Hosting Communities in Northern Uganda Funded By (Kfw) Project KfW 2020/21OpinionUnqualified  Out of the Project budget of UGX. 20,868,100,000, a sum of UGX 9,204,079,893 was disbursed by the donor, representing a performance level of 44.1% of the target. Out of the total receipts of UGX 9,204,079,893 from KfW, UGX 8,523,847,919 (92.6%) was spent by the Project, resulting into an unspent balance of UGX 680,231,973 (7.4%). Both projects outputs with 10 planned activities were fully quantified and; 1 activity (10%) was fully achieved, 8 activities (80%) were partially achieved, while 1 activity (10%) remained unimplemented. +17 Uganda National Redd - Plus Support ProjectOpinionUnqualified  The project had 2 sub components which had not been fully achieved. The project had an approved revenue budget of USD.644,500 for the year under review but only USD.250,000 (38.8%) was disbursed. Out of the total funds available for spending of USD.475,919.18, only USD.249,763.51 (52.18%) was spent leaving an unspent balance of $ 226,155.67 (48.82%). As a result certain activities were not implemented. All the 10 outputs comprising 57 activities with a total budget of USD.2,210,799 were properly quantified. The draft progress report was not detailed to enable assessment of implementation of activities against planned. +18 Ministry of Water, and Environment (MoWE) 2020/21OpinionUnqualified  I noted that the entity had not prepared a specific strategic plan as required by the NDP III and was instead utilizing an Investment plan (2030). I noted that out of the estimated NTR collection of UGX 8.97 billion, only UGX1.39 Bn was realized, representing a performance of 15.5%. Out of the approved budget of UGX. 457.52 Bn, a sum of UGX. 452.01 Bn (98.8%) was released, resulting in a shortfall of UGX. 5.52 Bn (1.2%) of the budget. Out of the total receipts for the financial year of 452.01 Bn, a sum of UGX. 453.24 Bn was spent by the entity resulting in an unspent balance of UGX 5.58 Bn, representing an absorption level of 98.7%. As a result of the under absorption, I noted that of the 72 quantified activities worth UGX.388.26Bn assessed; 15 activities representing 27.3% were fully implemented, 38 activities representing 69.1% were partially implemented,2 activities representing 3.6% were not implemented .I further noted that there was delayed submission of performance reports. The Ministry incurred penal interest of UGX.103,632,504 (USD.32,218) arising from delayed payment to the contractor. I noted that the Ministry’s Payables amount significantly increased from UGX.64.3 billion in the previous year to UGX.114.5 billion in the current + + + + +246 + + + + + + + + + + + + year due to the increasing number of multi-year projects in the ministry. I noted that the Ministry’s Receivables amount significantly increased from UGX.1.3 million in the previous year to UGX.22.4 billion in the current year. This was attributed to prepayments made to contractors (UGX.19.3 billion) and the outstanding letters of credit (UGX.3.1 billion) for on-going projects in the Ministry. From my audit and field inspection of facilities, regional centres and Umbrella Organisations, I observed several weaknesses in service delivery such as; untitled land for piped water systems and schemes; delayed execution of works; outstanding revenue arrears; unmetered water schemes, Lack and faulty bulk meters; among others. +19 Support to Priority Irrigation Investments in Uganda Grant 2020/21OpinionUnqualified  All the budgeted revenue from Government of USD.949,422.62 was realised representing a performance of 100% of the target. Out of the donar funds of USD.949,422.62 received, only USD 117,475.04 was absorbed by the project representing an absorption level of 12.4%. The Under absorption was attributed to Covid-19 effects. All the Six (6) outputs with a total of six (6) activities and expenditure of USD.117,475.04 were fully quantified. Four (4) out of six (6) outputs had not been achieved despite the fact that the initial Project completion period had been 30thJune 2020. This was later extended to 30/06/2021 and another extension to 31/3/2022. +20 The Adapting to Climate Change In Lake Victoria Basin. 2020/21OpinionUnqualified  Out of the budgeted revenue of USD.249,377, only USD.194,645.56 was received representing performance level of 78% of the target. Out of the total disbursements for the period of USD.273,590.56 (equivalent UGX.998,518,150), only USD.38,215.11 (UGX.141,282,999) was absorbed by the project representing an absorption level of 14%. All the three (3) outputs with a total of eleven (11) activities and budget of USD.249,377 were fully quantified. Out of the 3 quantified outputs with 11 activities, 5 activities (45.5%) were fully achieved, 2 activities (18.2%) were partially achieved and 4 activities (36.3%) were not implemented at all. +21 South Western Cluster Water and Sanitation Project – NWSC 2020/21Opinion Unqualified  No material issues to report on +22 National Water and Sewerage Corporation (NWSC) 2020/21OpinionUnqualified  The financial statements under Note 28 include a Financial Asset in form of Trade Receivables. Management has estimated the fair value of the net financial asset receivable to be UGX 133.7 billion as at 30th June 2021 of which, the net amount of receivables UGX38.2bn is owed from the government and its MDA (Ministries; Departments and Agencies). I noted that NWSC leased vehicles, offices and land under operating lease contracts whose terms were more than twelve (12) months, which were classified as; Right of Use asset amortization (UGX 87.8m) Right of Use Lease Assets (UGX 12.4bn) and Obligations due to Right of Use Leased Assets (UGX 8.4bn). Liabilities were not amortised annually using effective interest method in order to arrive at the amortised costs for + + + + +247 + + + + + + + + + + + + profit and loss recognition although the necessary disclosures were made in the financial statements. I noted that freehold land (UGX. 176.5bn) and leasehold land (UGX. 4bn) included some land that had expired lease periods, some titles were not yet transferred in the names of NWSC, and Katosi, which is a long term investment constructed on a short term leased land of ten (10) years. Some on-going water projects were significantly delayed by litigations and substantial amounts that are required to compensate the interested parties in note 24 of the financial statements. +23 Multinational Lakes Edward and Albert Integrated Fisheries and Water Resources Management Project (LEAF) II 2020/21OpinionUnqualified  A total of six (6) strategic outputs (50%) were fully achieved, while 6 outputs were partially achieved and still on-going (50%). Out of the approved budgeted revenue of USD 1,887,374, USD 603,588.93 was released representing performance of 32% of the target. The project had a total available balance of USD 2,767,452.2, out of which USD 2,754,945.85 (99.5%) was spent leading to an unspent balance of only USD 12,506.35. All the 10 planned outputs with 39 activities and a total budget of USD 3,119,412.9 were properly quantified to enable measurement of performance. Out of the 39 planned activities under the 3 Project components, 19 (48.7%) were fully implemented, 10 (25.6 %) were partially implemented and 10 (25.6%) were not implemented at all. I noted delays in construction of infrastructure projects resulting from the effects of the Covid pandemic and effects of the rising water level of Lakes Albert and Edward and inadequate GoU funding. The projects affected included the construction of the surveillance station, Kitebere Landing Site, Mbegu landing site, fish processing facility at Dei Landing site, and supply of a fisheries research vessel. + ENERGY SECTOR  +1 Electricity Regulatory Authority (ERA) 2020/21Opinion Unqualified  I noted that out of the budgeted revenue of UGX 28.57Bn, a sum of UGX. 27.70Bn was realized representing a performance of 98%. Out of the revenue realized of UGX. 27.70Bn for the financial year, UGX 24.55Bn was spent on recurrent expenditure and UGX.2.25Bn on capital expenditure, resulting into an unspent balance of UGX.0.9Bn, representing absorption level of 97%. Out of the forty-six (46) key activities, sixteen (16) (35%) activities had been fully achieved, and thirty (30) (65%) were partially achieved. Included in the receivables figure of UGX.7,566,003,960, under Note 7 of the Financial Statements is a sum of UGX.724, 185,509, relating to license fees and permit fees which have been outstanding for more than 90 days instead of the recommended 14 days. I noted that the target of reduction of the end user tariff was not achieved across customers’ categories, with a weighted average of UGX.485.7 per Kwh. The end user off –peak tariff for extra- large industrial customers was achieved at UGX.223.7. I noted that out of the total staff establishment of 92 positions, only 67 (73%) positions had been filled leaving a balance of 25 (27%) positions vacant. + + + + +248 + + + + + + + + + + + +  I noted Non-compliance to Quality-of-Service Standards (QoS) by Distribution Licensees, with an average of 45% compliance. Non- compliance with QoS denies customers quality and reliable electricity supply. +2 Energy for Rural Transformation III PSFU Project (ERT III). 2020/21Opinion Unqualified  Out of the total Receipts for the financial year of USD. 636,993, only USD.382,224 was spent by the Project resulting in an unspent balance of USD. 254,769 representing absorption level of 60% for the year. As a result, activities such as training of certified wiremen was partially implemented. I noted that a consortium of Ruwenzori Power Ltd (RWP) and East African Power Ltd (EAPL) had been contracted to undertake the development of two Micro Hydro schemes in Rwenzori Sub Region. However, by the time of audit (November, 2021) the development of the 2 Micro Hydro schemes had not commenced. I noted that out of the target of 850 certified wiremen, 367 wiremen were certified during the period, bringing the total number of total certified wiremen under the ERT-PSFU to 747 (88%), by June 30, 2021. +3 Uganda Rural Electricity Access Project (UREAP). 2020/21Opinion Unqualified  Out of the Budget of UGX.157.4Bn, only UGX.106Bn was disbursed representing a shortfall of 51,339,828,177, which is 32.6% of the Budget. I further noted that out of the total receipts for the financial year of UGX. 106.1Bn, UGX.105.5Bn was utilized on installation of Medium Voltage Networks and Last Mile consumer connections, leaving an unutilized balance of UGX.564,461,546 representing an absorption level of 99.5%. As 30th June 2021, the Bank had disbursed USD.44.83Million and Euros 5.89Million against the Loan credit facility of USD.100 Million and Grant of Euros 11.205 Million representing 45% and 53%, respectively. I noted delays in construction works under procurement of plants, design, supply and installation of medium voltage networks and last mile consumer connections. Notably, under Lots 6, Medium Voltage stringing, and Low Voltage (LV) stringing had not yet commenced. Under Lot 7 Medium Voltage Pole erection was at 31% and stringing at 47%. Out of 1,686 Project Affected Persons (PAPs), with an approved compensation amount of UGX.1,240,502,500, only 1,209 PAPs have been paid an amount of UGX.863,758,500, leaving an outstanding amount of UGX.376,744,000 relating to 477 PAPs. +4 Lira-Gulu-Agago 132KV transmission project 2020/21Opinion Unqualified  Out of the total Receipts for the financial Year of USD. 2,304,191, only USD.519,117 was utilized by the Project, resulting in an unspent balance of USD.1,785,074, representing an absorption rate of only 22.5%. As a result, activities such as compensation of Project Affected Persons and supervision of EPC works were not implemented. I noted that the contract for 132kv Double Circuit Transmission Lines and construction of Substations were signed on 12th April and 23rd March, 2021 respectively, however the major Project works such as Survey, Design, Supply and Installations works had not yet commenced. +5 Energy for Rural Transformation III (ERT III) –REA Project. 2020/21Opinion Unqualified  Out of the total receipts for the financial year of UGX.139.5Bn, only UGX.98.3Bn was utilized on installation of Medium Voltage Networks and Last Mile consumer connections, leaving an unutilized balance of UGX 41.2Bn representing an absorption level of 70%. As a result, activities such as Grid extensions, Line connections and Grid Intensification schemes under various Lines were partially implemented. Out of the total credit amount of USD.116.1 Million, only USD.73.7 Million + + + + +249 + + + + + + + + + + + + had been disbursed by the Bank under ERT- REA representing 64% of the Total credit. The overall Implementation of the Grid extension and associated connections is behind schedule especially under Lines 20-21 which are at 17% and 2% respectively. Progress of work under Grid Intensification, UMEME Batch 1 and 2 were at 55% and 20% respectively. Out of 34,535 Project Affected Persons (PAPs), with an approved compensation amount of UGX. 22.6Bn, only 22,180 PAPs have been compensated with an amount of UGX.14.2Bn, leaving an outstanding amount of 8.3Bn relating to 12,355 PAPs. +6 Hoima Kafu Transmission Line Project - Kafu Interconnection Project. 2020/21Opinion Unqualified  Out of the total receipts for the financial year, of USD.1,903,946, only USD.41,960 was spent by the Project, resulting in an unspent balance of USD.1,861,986, representing absorption level of only 2.2%. As a result, activities such as compensation of Project Affected Persons were not implemented. I noted that out of the 508 Project Affected Persons along the final selected route of the Project. 470 disclosures had been made representing 95%. 347(68%) agreements were obtained from disclosures, out of which 125 (25%) disputes arose, and payments to PAPs as at 30th June 2020 was 330 (65%). +7 Kampala Metropolitan Transmission System Improvement Project. 2020/21Opinion Unqualified  Out of the total receipts for the financial year of USD.9,259,009 for the financial year, only USD.2,465,150 was spent by the Project, leaving an unspent balance of USD.6,793,859, representing absorption of rate of 26.6%. As a result, I noted that Key activities such as consulting Services for Procurement of the EPC contractor was not implemented, while compensation of projected affected persons was partially implemented. I noted that out of 130 PAPs, 109 (83%) were compensated. Disclosures made were 120 (91%), agreements obtained from disclosures were 117 (89%), and PAPs not yet compensated were 22 (16.7%). +8 Petroleum Authority of Uganda (PAU). 2020/21Opinion Unqualified  I noted that the Authority budgeted to receive UGX.63.61Bn out of which only UGX.52 Bn was warranted, resulting in a shortfall of UGX11.6Bn, which is 18% of the budget. Out of the total Receipts for the financial year of UGX.52.0Bn, a sum of UGX.48.5Bn was spent by the entity resulting in an unspent balance of UGX.3.5Bn representing an absorption level of 93%. As a result, activities such as development and Implementation of the Grievance management framework and environment management system for the oil and gas sector were not implemented. I noted that of the planned output, three (3) outputs with a total of nine (9) activities and expenditure worth UGX.9.05Bn were fully quantified. Five (5) outputs with a total of sixty-seven (67) activities and expenditure worth UGX23.67Bn, was insufficiently quantified. Four (4) outputs with a total of six (6) activities and expenditure worth UGX 1.09Bn were not quantified at all. I noted that out of the total staff establishment of 283, only 189 (67%) positions had been filled, leaving 94 (33%) positions vacant. I noted that the Authority had not developed and documented a Business Continuity Plan and not ensured disaster recovery planning for continuous provision of IT services in case of a disaster. I noted that the Authority lacked an environmental regulatory framework necessary for regulating the environmental aspects in the oil and gas + + + + +250 + + + + + + + + + + + + sector. These include; the air quality standards, noise and vibration and the chemicals management standards. +9 Grid Expansion and Reinforcement Project (GERP)-UETCL. 2020/21Opinion Unqualified  Out of the total Receipts for the financial year of USD.35,395,297, only USD.6,139,307 was spent by the project leaving an unspent balance of USD.29,255,991, representing absorption of rate of 17.3%. As a result, activities such as construction of Transmission Lines and compensation of Project affected Persons were partially implemented. Out of the total amount of IDA credit for the Project of USD.100,000,000 only USD.29,457,000(29.4%) was disbursed, and out of USD.27.3M GoU counterpart funding, 7,945,423 (28.9%) was disbursed by the end of the financial Year. Out of the annual target of 59% progress, under Lot 1; -Construction of 132kv Double Circuit Transmission Lines, only 39% was achieved. Out of a target of 47% progress under Lot 2- construction of Substations, only 20% was achieved. I noted that out of 2,340 identified PAPs under Gulu-Nebbi-Arua Section, only 1,719 (73%) had been compensated. Out of 994 PAPs under Kole- Gulu Section 985 (99%) were compensated, leaving a total of 630 PAPs not compensated by the time of audit. In addition to the 3,334 PAPs with a total cash resettlement of USD. 1,463,955.41, USD.1,241,137 was paid to 2,704 PAPs resulting into an outstanding obligation of USD.222,818 relating to 630 PAPs +10 Islamic Development Bank (IDB) III Grid Rural Electrification Project. 2020/21Opinion Unqualified  Out of the total Loan credit of USD.70,730,000 Million by the Islamic Development Bank, USD 69,764,722.91 was disbursed representing a performance of 99% of the total Loan facility. I noted that as at 30th June 2021, the overall Project progress was at 99% completion, for all the 6 lots, involving construction of Rural Electrification Schemes in various parts of Uganda. +11 Uganda Petroleum Fund (UPF).Opinion Unqualified  I noted that for the year under review, the balance in the Petroleum Fund increased from UGX.87.79Bn as at 30th June 2020 to UGX. 228.79Bn as at 30th June 2021. However, there was no appropriation of UGX. UGX.87.79Bn by during the Financial Year 2020/21 to the Consolidated Fund and/or the Petroleum Revenue Investment Reserve for budget support and investment activities, respectively. +12 Uganda Electricity Generation Company Limited (UEGCL) 2020/21Opinion Unqualified  Out of the budgeted revenue of UGX.173,191,277,000, for the year 2020/21, UGX.169,743,586,000 was realized representing performance of 98% of the target. Out of the total receipts for the financial year of UGX.169,743,586,000, UGX.115,066,984,000 was spent by the entity resulting in an unspent balance of UGX.54,676,622,000 representing an absorption level of 67.7 %. I sampled 92 interventions/critical activities implemented under the 11 departments and noted that out of the ninety two (92) key interventions, twenty nine (29) (32%) critical tasks had been fully achieved, sixty one (61) (66%) were partially achieved while two(2) (2%) were not achieved. I noted long outstanding Payables of UGX 814,000,000 relating to penal interest charged by URA, resulting from late payment of WHT on consultancy services for the period 2001-2009. I noted accumulated interest of UGX 284,942,245,000, on Loan repayment + + + + +251 + + + + + + + + + + + + for Karuma Hydro Power Plant was outstanding as at 30th June, 2021. There has been delayed commissioning of Karuma Dam, whose completion date was extended to 15th June 2022, resulting in a delay of 3 years and 6 months from the initial planned completion date. Instances of non-conformances (NC) were noted in relation to electrical, mechanical and civil works components that required rectification before commissioning of the Karuma Dam. There has been continuous extension of the Isimba Dam Defects Liability Period (DLP), due to the various snags and defects that were detected after the Dam`s commissioning on March 2019. I noted delayed commencement of the Construction of Muzizi Hydro Power Project whose credit facility agreement with Agence Francaise De Development (AFD) and KFW was signed on 9th December 2016 and 25th November, 2016, respectively, to finance the construction of Muzizi Hydro Power Project with expected completion date of December 2023. I noted delayed Compensation of Project Affected Persons (PAPs) for Muzizi HPP whereby a total of UGX.1,769,227,282 (36.41%) of the total compensation value UGX.4,858,711,140 has been paid to PAPs. I also note a failure to undertake remedial works on the plants being handled under the concession between GOU and ESKOM with less than 50% of the remedial works that have been carried out currently, with a few months to end of the concession. +13 Strengthening the Management of Oil and Gas Programme (SMOGP) 2020/21OpinionUnqualified  Out of the total receipts for the financial year of USD 790,580.38, only USD. 239,221.92 was spent by the Programme resulting in an unspent balance of USD 551,358.46, representing an absorption level of 30.2%. Under absorption of released funds results in non-implementation of planned activities. I noted that the Planned Programme activities such as Development of Reservoir Modelling and Simulation, Review of the Tax Laws and the Model Production Sharing Agreement Training course for Component Managers and Program Secretariat among others were not implemented. There is a risk of failure to achieve intended Programme objectives and service delivery due to delayed implementation of activities. +14 Mutundwe-Entebbe 132kv Double Circuit Transimssion Line Project - UETCL- June 2020OpinionUnqualified  I noted delays in transfer of titles, caused by the slow land titling process. Out of the expected 463 land titles, UETCL received 264, and 70 were handed over to the RAP Consultant. Only 843 PAPs out of 1,062 had been compensated leaving 219 PAPs (20.62%) outstanding. Weakness were noted in the performance of the resettlement action plan consultant such as inclusion of forest reserves and wetlands as part of compensation to private individuals anddivergent surcey and valuation report for the same property. +15 Uganda Electricity Distribution Company- UEDCL 2020/21Opinion  Out of the total receipts for the financial year of UGX. 64.97Bn, a sum of UGX 63.38Bn was spent by the entity resulting in an unspent balance of UGX 1.52Bn representing absorption level of 97.6 %. I noted un-reconciled receivables amount of UGX.70.1Bn resulting from the withheld funds by UMEME from the Escrow Account in regard to unpaid government electricity bills by MDAs. + + + + +252 + + + + + + + + + + + + Unqualified  I noted power evacuation liability of UGX.15.29Bn, payable to UETCL. This was due to power losses attributed to absence of transmission lines to evacuate electricity from PA Technical, Siti 1 and Arpe Power Plants, as a result of wheeling power over a lower capacity and weaker distribution lines operated by UEDCL. The long outstanding receivable resulting from payment of former UEB pension costs of UGX.38.6Bn by UEDCL which has never been paid back to the Company by MoFPED. Failed to meet its targeted annual connection 37,293 of customers whereby only 6,309 (16.9%) connections were made. I noted that in the FY 2020/21, the approved energy loss target by the Electricity Regulatory Authority was at 20.1%. I however noted from the Grid Energy Reports submitted to ERA, that the Company was unable to meet its target energy losses and most of its service territories registered an average of 32.7% power losses. I noted non -compliance by the WENRECO to the terms of the Operation and Maintenance Agreement, such as provision of semi-annual reports on status of the assets, safe storage of UEDCL connection materials, participation in the physical network inspection, submission of asset modifications register among others. The 62,944 poles leased to UMEME by UEDCL were damaged and required replacement which was not done contrary to the provisions of the Lease Agreement. +16 Uganda National Oil Company 2020/21Opinion Unqualified  Out of the total receipts for the financial year of UGX.34.4bn only UGX 26.6bn was spent by the company, resulting in an unspent balance of UGX 7.8bn. This represents an absorption level of 77.3%. I noted challenges of UNOC state Participation in the Oil and Gas Industry. Whereas UNOC is drawing closer to the Final Investment Decision (FID) for each of the Projects, the Company faces challenges in financing the 15% stake in the East Africa Crude Oil Pipeline (EACOP), 15% State Commercial Interest in the Upstream, and 40% in the Refinery Project. +17 Uganda Refinery Holding Company Ltd 2020/21Opinion Unqualified  Out of a total of UGX 2.9bn received during the financial year, UGX.2.9bn was spent by the Company. This represents an absorption level of 100%. I noted delays in the development of the Kabaale Industrial Park. As at 30th June 2021, implementation of infrastructure such as roads, power supply, water supply and Information Communication Technology connection had not yet commenced. I noted delays in the implementation of the Refinery Project. As at 30th June 2021, the refinery investor had not met the targets for some Project milestones. Preliminary activities such as the Front End Engineering Design were at 97%, Environmental Social Impact Assessment Study at 70%, and procurement for the consultancy services for the Resettlement Action Plan was on-going. +18 Uganda Electricity Transmission Company Limited (UETCL) 2020/21Opinion Unqualified  I noted that UETCL developed and approved a Corporate Business Plan without certification from the National Planning Authority. There is a risk that activities implemented during the financial year 2020/2021 were not aligned to the NDP-III, which negatively affects the achievement of NDP- III objectives. UETCL budgeted to receive UGX. 1.424Tn in Tariff and Non-Tariff revenue out of which, UGX.1.338Tn was received resulting in a shortfall + + + + +253 + + + + + + + + + + + + of UGX 86Bn. Domestic energy sales were 9.5 % below budget. Both sales to Rwanda and DRC 29% below the budget, and no sales were made to South Sudan despite the anticipated revenue of UGX.824 million. UETCL budgeted to receive from Government, UGX.108.823Bn for capacity charges and deemed energy costs. However, only UGX 36.4Bn was released resulting in a shortfall of UGX 72.423Bn, which is 66% of the budget. I sampled 40 critical activities implemented under 7 sampled departments under UETCL and noted that 17(43%) tasks had been fully implemented, 13 (32%) were partially implemented, while 10 (25%) were not implemented at all. A provision for bad and doubtful debts amounting to UGX 161.4bn was made under Trade and other receivables in the financial statements. This was an increment of 25% from the financial year 2019/20. The provision relates to customers with unpaid balances in contravention of the terms and conditions of the power sales agreement. I further noted that 74.7% of the provisions were attributable to only one Company. Analysis of the trade and other payables revealed an increment of 18.7Bn from UGX.740.8Bn in 2019/20. Included in these payables were amounts of UGX.71.2Bn and USD.4.7 million which have been outstanding for over 10 years. M/s UMEME and M/s UEDCL withheld UETCL revenue of UGX 64Bn and 10.31Bn, respectively on account of evacuation losses and non-payment of electricity bills by Government MDAs. Withholding revenue constrains UETCL’s ability to pay electricity generators. The land titling process was not satisfactory on most of UETCL Projects. UETCL takes an average of 3 years to conclude the titling process in contravention of the 6 months period warranted which exposes the company to a risk of litigation and potential encroachment. UETCL incurred deemed energy costs of UGX 87.7Bn on thirteen (13) PPAs, save for me HPP were directly financed through the tariff system, hence impacting on the electricity price to the final consumer. I noted that UETCL incurred about UGX 494,150,000 in replacing vandalized tower equipment during the year under review. I further noted that the company incurred UGX. 1.6Bn in replacement costs on assorted transmission line items vandalized between 2017 and 2021. I noted delays in concluding the procurement process for a sample of procurements with a total contract sum of UGX.17.8Bn with procurements lasting an average of 3 years and some cases going up to 5 years. Prolonged procurement processes deny timely achievement of intended project objectives. +19 National Pipeline Company 2020/21Opinion Unqualified  Out of the total receipts for the financial year of UGX.3.71Bn, UGX.3.71Bn was utilized. This represents an absorption level of 100%. I noted that the Company failed to maintain National Strategic Reserves. In the period under review, the Consortium failed to meet the required National Strategic Reserve levels of 12 million litres per month. Failure to restock petroleum reserves exposes the Country to supply shocks and a risk of inflated prices in the event of disruptions in the petroleum supplies chain. I noted that as at 30th June 2021, the consortium had not developed the facilities to enable lake transport to the Jinja Storage Tanks. The construction of an oil jetty and connecting pipeline to Jinja Storage Tanks + + + + +254 + + + + + + + + + + + + had not commenced. I noted delays in implementation of Kampala Storage Terminal (KST). As at 30th June 2021, Preliminary activities such as the Power Reticulation Proposal and Environment Social Impact Assessment for the terminal were undertaken However, Construction activities under the Project had not commenced. +20 Rural Electrification Agency 2020/21Opinion Unqualified  Out of the budgeted government receipts for the financial year of UGX.155.23Bn, a sum of UGX. 149.26Bn was spent by the entity resulting in an unspent balance of UGX.5.97Bn, representing an absorption level of 96%. I noted outstanding cumulative arrears of revenue in respect to the 5% levy fees due from UETCL amounting to UGX 96.13Bn and UGX.3.69Bn arising from unpaid lease rental from various Service Territory Operators, respectively. The Rural Electrification Agency had a contingent liability of UGX 19.73Bn in relation to way leaves cases not yet disposed of during the year under review. I further noted that REA had UGX 3.29Bn as an outstanding amount in Court awards due to delayed payment of retention, non- payment for work done, unlawful dismissal and non-renewal of employment contracts The Agency had challenges in the implementation of the Electricity Connections Policy. As at 30th June 2021, out of the 97,000 annual planned connections, only 3,683 (3.7%) connections were undertaken. Such dismal performance is likely to fail the intended objectives of the policy. I noted that the entity had outstanding compensations to the landowners of Way leaves amounting to UGX 8.67Bn. This could lead to litigation. +21 Uganda Energy Credit Capitalisation Company Limited 2020/21OpinionUnqualified  No material issue reported.  +22 Grid Expansion and Reinforcement Project – MEMD 2020/21Opinion Unqualified  Out of the total receipts for the financial year of USD.1,698,907.88, only USD.1,030,144.30 was spent resulting into an unspent balance of USD.654,938.58, representing an absorption level of only 60.6%. I noted low funds disbursement over the Project Life. Out of the loan funds of USD.3,500,000 over the 5-year life of the Project. As at 30th June 2021 (4 years into implementation), only USD.1,965,000 (56%) had been released to the Project, of which USD.1,310,061.41 (67%) had been spent hence putting the overall loan absorption at 37% by 30th June 2021. The Project is expected to close on 31st October 2022. I noted that Planned Project activities such as development of a Power Sector Integrated Plan had not commenced, while development of a National Electrification Strategy and Environmental and Social monitoring and supervision were still in progress. +23 The Fuel Marking and Quality Monitoring Program, Ministry of Energy and Mineral Development  Out of the total receipts for the financial year of UGX.9.62Bn, a sum of UGX. 8.71Bn was spent representing 91% absorption level by the program. As a result activities such as Stakeholders’ awareness + + + + +255 + + + + + + + + + + + + 2020/21Opinion Unqualified workshops and Training on petroleum standard development were partially implemented. I noted non-compliance by fuel stations with the Standard that covers the siting, design and construction of service stations, installation and operation of equipment in service stations for handling, storage and dispensing of petroleum products and their derivatives. I noted that the Program does not have in place a comprehensive system of monitoring and testing the quality of lubricants and engine oils based on the standards. This poses a risk to motorists who may purchase poor quality engine oils and lubricants. +24 The Ministry of Energy and Mineral Development (MEMD) 2020/21OpinionUnqualified  I noted in the year under review, that the entity did not have an approved sector development plan (strategic plan) 2020/21. The Accounting Officer explained that a strategic Plan was prepared and is aligned to the NDP III, a however the approval of management delayed due to management transition The Ministry budgeted to collect NTR of UGX.19.9Bn during the year under review. Out of this, only UGX. 13Bn was realized, representing a performance of 65.3% of the target. This was attributed to COVID Pandemic that greatly affected businesses in the Country to extent that some companies wrote requested for either a reduction or waiving off their rent arrears. Out of the total warrants for the financial year of UGX.342.3Bn, a sum of UGX.336.9Bn was spent by the entity resulting in an unspent balance of UGX.5.4Bn representing an absorption level of 98%. As a result, I noted that of the 148 quantified activities worth UGX.99.3Bn assessed; 16 activities representing 10.8% were fully implemented, 125 activities representing 84.5% were partially implemented, while 7 activities representing 4.7% were not implemented. A trend analysis of the domestic arrears reported in Note 24 to the financial statements showed movement of domestic arrears from UGX.18.29Bn in the previous year to UGX.17.13Bn in the year under review, a decrease of 7%. This unsustainable trend poses risks of litigation and related costs inform of interest penalty. The Ministry received UGX.1.39Bn into the Mineral Royalties Sharing Fund account during the period, in addition to the closing amount of UGX.442.07Mn from the previous period. However, only UGX.1.39Bn was paid leaving an outstanding balance of UGX.433.82Mn which has been correctly disclosed as payables as at year end. The receivables amount of UGX.14,287,738,002 in the statement of financial position and under Note 19, to the financial statements includes an amount UGX.4,494,005,610 receivables (UGX 4,288,550,000 and UGX.205,455,610 relating to annual mineral rent/royalties and sale of goods and services, respectively) which has been outstanding for over four years. The RAP implementation and land acquisition for the Karuma Reservoir Area project. The contract has been extended several times with the new completion date set for 23rd June 2022. I established that a RAP survey and valuation report was submitted by the Consultant on 31st April 2021, but, as at 30th June 2021, compensation of the PAPs had not yet commenced. A review of the Department of Geological Survey and Mines staff + + + + +256 + + + + + + + + + + + + establishment revealed that out of 127 approved positions, only 85 positions were filled leaving 42 positions vacant representing a staffing gap of 33%. +25 Kilembe Mines Ltd (KML) 2020/21OpinionUnqualified  The entity budgeted to receive UGX.3.574Bn out of which, UGX.857Mn was realised, resulting in a shortfall of UGX.2.717Bn which is 76% of the budget. As a result activities such as dewatering the Copper Mines and revamping of Hima Lime Works, were not been implemented. I noted that a number of assets had been damaged / impaired due to waters that broke the banks of River Nyamwamba on 7th and 10th of May, 2020. However, no formal estimate of the recoverable amount has been conducted. This may result into an overstatement of the total assets and understatement of operating loss. I noted that the Company had an outstanding receivable of UGX.1.26Bn as at 30th June 2021, 54% of the amount relates to unpain rent from Tibet Hima Mining Co. Ltd. Delayed recovery of outstanding revenues affects the Company’s liquidity position. I noted that the Company had outstanding payables of UGX.2.28Bn. The amount increased from UGX.0.966 to UGX.2.286Bn resulting into an increase of UGX.1.321Bn (137%) as at 30th June 2021. I noted delayed divesture of Kilembe Mines. Three (3) years have elapsed without an investor/operator being identified to take over Kilembe Mines operations, following the termination of the Tibet Hima Concession Agreement. Emergency Funding of UGX 4.375bn was required to rehabilitate the damaged Company infrastructure following flooding of rivers Nyamambwa and Mubuku in May and August 2020. However, the requested funds were not availed. Mubuku Hydro-Power Plant was designed to generate 5MW. I however noted that the plant was only generating 2MW from Unit 1. Units 2 to 4 were out of service for a number of years. Review of the Annual Performance Report, 2021 revealed that the Company had a number of long outstanding court cases, relating to encroachment of Land belonging to the company. Three cases had been outstanding for over 7 years, three other cases for 5 but less than 7 years and six cases for less than 5 years. +26 Uganda Electricty Generation Company Limited Capacity Building Program-Norwegian Grant Uga-16/0010 Initial Support to UEGCL – 2019 2020/21OpinionUnqualified  Out of UGX.6,475,227,265 received for project activities UGX.5,285,679,281 was utilized representing 82% absorption. The under absorption was attributed to postponement of commissioning of Karuma Hydro power plant. +27 Atomic Energy Council 2020/21Opinion  Out of the total receipts for the financial year of UGX. 13.98bn, UGX. 9.96bn was spent by the entity resulting in an unspent balance of UGX 4bn representing an absorption level of 71.2%. As a result, Six (6) outputs with thirty nine (39) activities worth UGX. 4.2Bn were partially + + + + +257 + + + + + + + + + + + + Unqualified implemented. I noted that the Council lacked of Radiation Protection and Safety Laboratories. There were no Laboratories in place for testing radioactivity levels in food stuffs, construction materials and other consumable products that contain natural radionuclides. This puts the lives of the community at risk. I noted that the Council lacked adequate specialized inspection equipment required for various practices and activities that involved management of radiation sources. Out of Staff the Council Establishment of 90 positions, only 49 positions filled leaving 21 positions vacant, representing a staff shortfall of 30%. This affects the efficient and effective execution of the Council mandate. +28 Energy for Rural Transformation Project (ERT III)-PCU 2020/21OpinionUnqualified  Out of the total available funds for the financial year of USD 6,346,771.03, only USD 5,585,830.71 was spent by the Project, resulting in an unspent balance of USD. 760,940.32, representing absorption level of 88%. I noted low disbursements of loan funds over the Project Life. Out of the ERT III Project loan amount of USD 143.2 Million, only USD 94.5 Million had been disbursed by the Bank to the respective components representing an absorption level of 65% and yet the Project was left with six (6) months to closure on 31 December 2021. I noted that planned Project activities such as supply and installation of Solar Photovoltaic Energy Packages – in Schools under the Ministry of Education and Sports and Health Centers under Ministry of Health were not implemented. This resulted into delayed electricity power access by the selected schools and health centres. +29 Opuyo- Moroto 132kv Transmission Line Project - (UETCL) 2019OpinionUnqualified  I noted that despite the project nearing completion, out of 1,300 PAPs, only 1,222 had been compensated leaving a balance of 78 (6%) by 30th June 2019. There is a risk that the outstanding compensation of PAPs may further delay project implementation. I noted that despite the loan last disbursement date being 28th February 2021, only 21% of the total funds were disbursed to both UETCL and REA by 30th June 2019 +30 Opuyo- Moroto 132kv Transmission Line Project - (UETCL) 2020OpinionUnqualified  I noted under Note 9.13 that the project payables increased from USD.1,169,371 (2019) to USD. 2,290,568 (2020) due to non payments of service providers at the end of the financial year for the services provided. +31 The 132kv Mirama-Kabale Transmission Line and Distribution Project-2019OpinionUnqualified  No significant matters to report on. + + + + +258 + + + + + + + + + + + +32 The 132kv Mirama-Kabale Transmission Line And Distribution Project-2020OpinionUnqualified  No significant matters to report on. +33 Energy for Rural Transformation III Implemented by Uganda Energy Credit Capitalization Company Limited (ERT III- UECCCL)OpinionUnqualified  No material issue reported. +34 Energy for Rural Transformation III BOU Project (ERT III).OpinionUnqualified  No material findings to report on + EDUCATION SECTOR +1 African Centre for Agro ecology and Livelihood Systems (ACALISE) Project – UMU 2020/21Opinion Unqualified  I noted in the statement of income and expenditure that out of budgeted total revenue of USD 1,807,602 for the financial year 2020/2021, only USD 610,980 (33.8%) was realized leading to a budget shortfall of USD 1,196,622. I noted that out of the available funds amounting to USD 1,165,530 (current year receipt of USD 610,980 and the balance brought forward of USD 554,550) for the project operations for the financial year, only USD 1,054,538 was spent, leaving an unspent balance of USD 110,992. This represents approximately 90% absorption rate. +2 Soroti University. 2020/21Opinion Unqualified  I noted that the University did not indicate NTR estimates in its statement of Appropriation. How out of the budgeted NTR of UGX.706,000,000 for the financial year 2020/2021, UGX.195,985,600 was collected representing a performance of 28% of the target. The entity budgeted to receive UGX.20.229Bn out of which UGX.19.621Bn was warranted, resulting into a shortfall of UGX.0.608 Bn which is 3% of the budget. I noted the University received off-budget financing to the tune of UGX.36,710,266 which was not transferred to the consolidated fund as required by the law. Out of the total receipts (warrants) for the financial year of UGX.19.621Bn, UGX.17.484Bn was spent by the entity resulting into an under absorption of UGX.2.137Bn representing an absorption level of 89%. Ten (10) outputs with a total of ninety-nine (99) activities and + + + + +259 + + + + + + + + + + + + expenditure worth UGX 10.251Bn were fully quantified while one (1) output with a total of four (4) activities and expenditure worth UGX 1.898Bn was not quantified to enable assessment of performance as there was no output that was insufficiently quantified. Out of the ten (10) out puts that were fully quantified, one (1) output with a total of 6 (six) activities worth UGX.0.051Bn was fully implemented while 9(nine) outputs with a total of ninety-three (93) activities worth UGX.10.201Bn were partially implemented. The University closed the financial year with an accumulated payable totaling to UGX.2,604,379,429 of which UGX.559,049,780 had been outstanding for more than one year. The University paid a contractor UGX.996,389,960 in respect of outstanding debt that included UGX.188,055,690 relating to accrued interest charged by the contractor as a result of delayed payments. The interest expenditure was nugatory +3 Busitema University. 2020/21Opinion Unqualified  Out of the budgeted Non tax revenue of UGX.6,517,061,618 for the year 2020/21, only UGX.4,904,767,921 was collected representing a performance of only 75% of the target. There was a shortfall in releases amounting to UGX4.63Bn which is 9% of the budget. Furthermore, the entity remained with unspent balance of UGX.1.60Bn representing an absorption level of 97%. The University received off-budget financing to the tune of UGX.1,462,363,950 which was not transferred to the consolidated fund as required by the law. These funds were received directly from development partners for undertaking activities which were not budgeted for. Nine (9) outputs with 73 activities worth UGX.33.34Bn were insufficiently quantified. That is out of the Seventy-three (73) activities, twelve (12) activities (16%) were not clearly quantified. Two (2) outputs with a total of eight (8) activities worth UGX.8.52Bn were fully implemented while two (2) outputs with a total of fifteen (15) activities worth UGX3.46Bn were partially implemented. I noted that the University closed the financial year with outstanding payables to the tune of UGX.1,504,842,864 of which UGX.1,421,201,933 related to unpaid enhanced salaries for administrative and support staff that accrued in the financial year 2016/17. +4 Gulu University. 2020/21Opinion Unqualified  I noted that the University’s strategic plan was not certified by NPA and no feedback had been received by the time of concluding the audit. This was attributed to delays in the review and certification process by NPA. I reviewed the NTR estimates, revenue sources and rates charged at vote level for the financial year 2020/2021 and noted that the entity budgeted to collect NTR of UGX.12.75Bn during the year under review. Out of this, UGX.4.18Bn was collected, representing a performance of 32.8% of the target. The entity budgeted to receive UGX. 58.88Bn from treasury, out of which UGX.57.90Bn was warranted, resulting into a shortfall of UGX.0.98Bn which is 1.7% of the budget. Out of the total warrants of UGX 58.11Bn received during the financial year, UGX. 57.90bn was spent by the entity resulting in an unspent balance of UGX 0.21Bn, representing an absorption level of 99.6%. The unspent balance at the end of the financial year was subsequently swept back to the consolidated fund account as required by the PFMA. + + + + +260 + + + + + + + + + + + +  The University received off-budget financing to the tune of UGX.6,255,990,597 which was not declared to Treasury and, therefore, not appropriated to the entity by Parliament. These funds were received directly from development partners for undertaking activities not budgeted for. I reviewed the extent of quantification of outputs and activities for a sample of the ten (10) outputs with a total of twenty (20) activities and expenditure of UGX.45.556Bn and noted that seven (7) outputs with a total of twelve (12) activities and expenditure worth 43.284bn were fully quantified while three (3) outputs with a total of eight (8) activities and expenditure worth UGX. 2.871bn were not quantified at all. I assessed the implementation of seven (7) out puts that were fully quantified with a total of twelve (12) activities worth UGX.43.282Bn and noted that three (3) outputs with a total of six (6) activities worth UGX.37.054Bn were fully implemented. Two (2) outputs with a total of four (4) activities worth UGX,5.706Bn were partially implemented while two (2) outputs with a total of two (2) activities worth UGX. 0.522Bn were not implemented. The University had outstanding domestic arrears of UGX.5,681,315,557 dating as far back as financial year 2015/16. There is a risk that the University could face litigation from the suppliers and other beneficiaries. Gulu University is involved in several court cases and some of the cases remained pending at the financial year end. The cases are mostly between the University and its former staff, students and suppliers. The cases arose mainly from unlawful termination, breach of contracts, unfair treatment, land issues, Arrears/failure to pay suppliers. Gulu University awarded a contract for the supply and installation of Network Equipment to the Faculty of Agriculture, Biometric Equipment for Staff attendance, Laptops and Desktops for Vice Chancellor, Director ICT and Director Planning & Development at a contract price of UGX.181,794,897 on the 25th June, 2021. However, as at the time of concluding the audit, installation was not undertaken. Gulu University signed a contract for the construction of the Business and Development Centre on the 19th June, 2019 for a contract price of UGX.30,122,043,772. The construction start date was 1st August, 2019 and the expected completion date of 30th July, 2023. I noted that only UGX.2.1Bn out of UGX.6.0Bn was paid as advance for mobilization and this led to the temporary stoppage of works by the contractor which led to slow progress of the building works. At the time of concluding the audit, no major works were undergoing. I noted that the following University pieces of land were not titled; forest land measuring 28 hectares, Pajengo Latoro; Agago and Agora Pader land. There is a risk that the land in question could be lost to unscrupulous individuals. Out of the 1,606 approved positions in Gulu University; only 441 (27%) posts were filled, leaving 1,165 (73%) positions vacant. +5 The Higher Education Students' Financing Board (HESFB) 2020/21OpinionUnqualified  I noted that the University’s strategic plan was not certified by NPA and no feedback had been received by the time of concluding the audit. This was attributed to delays in the review and certification process by NPA. I reviewed the NTR estimates, revenue sources and rates charged at vote level for the financial year 2020/2021 and noted that the entity budgeted to collect NTR of UGX.12.75Bn during the year under review. Out of this, UGX.4.18Bn was collected, representing a performance of 32.8% of the + + + + +261 + + + + + + + + + + + +target. The entity budgeted to receive UGX. 58.88Bn from treasury, out of which UGX.57.90Bn was warranted, resulting into a shortfall of UGX.0.98Bn which is 1.7% of the budget. + +- Out of the total warrants of UGX 58.11Bn received during the financial year, UGX. 57.90bn was spent by the entity resulting in an unspent balance of UGX 0.21Bn, representing an absorption level of 99.6%. The unspent balance at the end of the financial year was subsequently swept back to the consolidated fund account as required by the PFMA. + + + +- The University received off-budget financing to the tune of UGX.6,255,990,597 which was not declared to Treasury and, therefore, not appropriated to the entity by Parliament. These funds were received directly from development partners for undertaking activities not budgeted for. + + + + + +- I reviewed the extent of quantification of outputs and activities for a sample of the ten (10) outputs with a total of twenty (20) activities and expenditure of UGX.45.556Bn and noted that seven (7) outputs with a total of twelve (12) activities and expenditure worth 43.284bn were fully quantified while three (3) outputs with a total of eight (8) activities and expenditure worth UGX. 2.871bn were not quantified at all. + + + +- I assessed the implementation of seven (7) out puts that were fully quantified with a total of twelve (12) activities worth UGX.43.282Bn and noted that three (3) outputs with a total of six (6) activities worth UGX.37.054Bn were fully implemented. Two (2) outputs with a total of four (4) activities worth UGX,5.706Bn were partially implemented while two (2) outputs with a total of two (2) activities worth UGX. 0.522Bn were not implemented. + + + +- The University had outstanding domestic arrears of UGX.5,681,315,557 dating as far back as financial year 2015/16. There is a risk that the University could face litigation from the suppliers and other beneficiaries. + + + +- Gulu University is involved in several court cases and some of the cases remained pending at the financial year end. The cases are mostly between the University and its former staff, students and suppliers. The cases arose mainly from unlawful termination, breach of contracts, unfair treatment, land issues, Arrears/failure to pay suppliers. + + + +- Gulu University awarded a contract for the supply and installation of Network Equipment to the Faculty of Agriculture, Biometric Equipment for Staff attendance, Laptops and Desktops for Vice Chancellor, Director ICT and Director Planning & Development at a contract price of UGX.181,794,897 on the 25th June, 2021. However, as at the time of concluding the audit, installation was not undertaken. + + + +- Gulu University signed a contract for the construction of the Business and Development Centre on the 19th June, 2019 for a contract price of UGX.30,122,043,772. The construction start date was 1st August, 2019 and the expected completion date of 30th July, 2023. I noted that only UGX.2.1Bn out of UGX.6.0Bn was paid as advance for mobilization and this led to the temporary stoppage of works by the contractor which led to slow progress of the building works. At the time of concluding the audit, no major works were undergoing. + + + +- I noted that the following University pieces of land were not titled; forest land measuring 28 hectares, Pajengo Latoro; Agago and Agora Pader land. There is a risk that the land in question could be lost to unscrupulous individuals. + +- Out of the 1,606 approved positions in Gulu University; only 441 (27%) + + + +262 + + + + + + + + + + + + posts were filled, leaving 1,165 (73%) positions vacant. +6 Kabale University. 2020/21Opinion Unqualified  I noted that the University prepared a strategic plan aligned to NDP III and the plan was approved by NPA and a certificate of approval issued. Out of budgeted NTR collections of UGX.7.6 Bn, only UGX. 5.26Bn was realized, representing a performance of 74.6 % of the target. There was a shortfall in government releases amounting to UGX.0.03Bn representing 0.08% of the budget. Out of the total receipts for the financial year of UGX.40.95 Bn a sum of UGX. 40.5 Bn was spent by the entity resulting in an unspent balance of UGX 0.45Bn representing an absorption level of 99%. I sampled 5 outputs of a total of Nine (9) outputs and expenditure worth 37.22.Bn and noted that two (2) outputs with a total of three (3) activities was fully quantified; three (3) outputs with thirteen (13) activities were partially quantified while two (2) activities were not implemented. The university accumulated receivables totalling to UGX.3,114,950,156 as at 30/6/2021. Under collection of billed revenue cripples, the University’s ability to meet its financial obligations and impacts negatively on service delivery. I noted the University had outstanding payables of UGX.1,872,390,164 as at 30/6/2021. The failure to clear payables by the closure of the financial year may attract litigation resulting into wasteful expenditure in form of legal fees. +7 Lira University. 2020/21Opinion Unqualified  The entity submitted its final copy of the strategic plan to National Planning Authority (NPA) for alignment and certification however, no feedback had been received by the entity at the time of audit (September 2021). I reviewed the NTR estimates, revenue sources and rates charged at vote level for the financial year 2020/2021 and noted that the entity budgeted to collect NTR of UGX 4.948Bn during the year. Out of this, only UGX 1.918Bn was collected, representing a performance of 38.8% of the target. In addition, the University budgeted to receive UGX 27.808Bn out of which UGX.27.118Bn was warranted/availed resulting in a shortfall of UGX.0.698Bn which is 2.5% of the budget. Out of the total warrants of UGX.27.118Bn received during the financial year, UGX 25.796Bn was spent by the entity resulting in an unspent balance of UGX.1.322Bn representing an absorption level of 95%. The unspent balance at the end of the financial year was subsequently swept back to the consolidated fund as required by the PFMA. The University received off-budget financing to the tune of UGX.836,710,490 which was not declared to the Treasury and, therefore, not appropriated to the entity by Parliament. These funds were received directly from development partners for undertaking activities not budgeted for. I reviewed the extent of quantification of outputs and activities for a sample of seven (7) outputs with a total of seventeen (17) activities and expenditure of UGX.22.003Bn and noted that five (5) outputs with a total of six (6) activities and expenditure worth UGX.5.3Bn were fully quantified while two (2) outputs with a total of eleven (11) activities and expenditure worth UGX 16.703Bn were insufficiently quantified. I assessed the implementation of five (5) outputs that were fully + + + + +263 + + + + + + + + + + + + quantified with a total of six (6) activities worth UGX.5.3Bn and noted that two (2) outputs with two (2) activities worth UGX.0.3Bn were fully implemented while three (3) outputs with four (4) activities worth UGX.5Bn were partially implemented. During the year, the University incurred nugatory expenditure totalling to UGX.25,752,041 being interest and penalties paid resulting from management’s failure to deduct and remit NSSF deductions for the period August 2016 to June 2020. I noted that Lira University signed a tenancy agreement with the Law Development Centre letting out the first floor of the faculty of Education to LDC at a consideration of UGX.15,300,000 per month inclusive of taxes implying that the University is making a monthly financial loss of UGX.2,754,000 in form of VAT payable to URA. As a result, the university did not remit VAT totalling to UGX. UGX.33,048,000 being VAT payable on rental income to URA on the annual rental income of UGX.183,600,000 (UGX.15,300,000 for 12 months) received by the University. I noted a delayed construction of the Administration Block following a contract award of UGX.16,664,107,531 to the construction contractor. Despite the expiry of the contract duration of the three years to 11th September 2021, the construction works had not been completed, and the progress of works was estimated at 32% level. However, the supervising contractor had been paid 92% on his contract of UGX.749,885,000 ending 4th February 2022. +8 MAK Holdings. 2020/21Opinion Unqualified  I noted that the Company management budgeted to receive and generate revenue of UGX.1,892,600,000 however, only UGX.809,760,761 (43%) was realized reflecting an underperformance of UGX.1,082,839,239 which is 57% of the expected revenue for the year. The Makerere University Guest house had accumulated creditors to the tune of UGX.620,024,827 from UGX.405,138,535 in the financial year ended 30th June, 2020 representing a 53% increase in liabilities. Some of the outstanding liabilities include statutory payments worth UGX.240,026,071 I noted an increase in receivables of UGX.299,307,621 from UGX.271,978,943 reported in the prior year. +9 Mapronano World Bank Project. 2020/21Opinion Unqualified  I noted that out of the released USD 1,995,561, only USD 1,357,190 was spent by the Project resulting into unspent balance of USD 638,371 representing an under absorption level of 31.98%. The unspent balance at the end of the financial year was subsequently carried forward to the next financial year. I assessed the implementation of the six (6) out puts with 24 activities that were fully quantified worth USD 2,210,000. Two (2) outputs with two (2) activities worth US$ 171,393 were fully implemented. Four (4) outputs with a total of twenty two (22) activities worth US$ 1,185,795 had 11 activities fully implemented, 9 activities partially implemented, and 4 activities were not implemented. +10 MaRCCI World bank Project. 2020/21Opinion Unqualified  I assessed the implementation of the eight (8) out puts with 42 activities that were fully quantified worth US$ $907,282.93, and noted that one (1) output with two (2) activities worth US$ 27,600 was fully implemented while seven (7) outputs with a total of forty (40) activities worth US$ 879,681.93 were partially/not-implemented. The project management implemented sixteen (16) activities fully, eighteen (18) activities partially and six (6) activities were not implemented. + + + + +264 + + + + + + + + + + + +  I noted that the project did not pay staff salaries to the tune of USD 13,596 (approximately UGX.50,305,2000. In addition, PAYE withheld from staff deductions for the months of October and November, 2020 totaling to USD. 11,764 (approximately UGX.43,526,800) was not remitted to Uganda Revenue Authority as per regulations. +11 Management Training and Advisory Centre (MTAC). 2020/21Opinion Unqualified  The MTAC had not prepared the required 5-year strategic plan that is in line with the NDPIII Out of the budgeted NTR of UGX.2.15Bn for the financial year 2020/2021, a sum of UGX.2.06Bn was collected representing performance of 96% of the target. Out of the total receipts for the financial year of UGX.5.19Bn, a sum of UGX.3.78Bn was spent by the Centre resulting into unspent balance of UGX.1.41Bn representing an absorption level of 73%. One (1) output with a total of two (2) activities worth UGX.1.25Bn was partially implemented. Out of the two (2) activities, the entity fully implemented one (1) activity (50%), the entity did not implement one (1) activity (50%). Though total liabilities decreased by 12%, a review of the age analysis of the payables revealed that a liability totalling to UGX.634,986,966 (79%) has been outstanding for more than one year I observed that MTAC has operated without the Governing Council since 2015 Out of 72 posts of the newly implemented MTAC staff establishment, only 54 (75%) were filled leaving 18 (25%) vacancies. Among the vacant posts were key positions of the Executive Director, Director Finance and Administration and Manager-Human resources and Administration. +12 Makerere University. 2020/21Opinion Unqualified  I noted that the University did not have the strategic plan annualized to indicate which outputs are expected for each year of implementation of the plan covering the period of 2021/21-2024/25. I also noted that whereas the University had prepared and submitted its strategic plan to NPA for approval, it had not yet been approved at the time of audit in October 2021. I reviewed the NTR estimates, revenue sources and rates charged at vote level for the financial year 2021/2021 and noted that the University budgeted to collect NTR of UGX.95.84Bn during the year under review. Out of this, only UGX.58.29Bn was collected, representing a performance of 60.82% of the target. I further noted that the University budgeted to receive UGX.363.74Bn out of which UGX.359.86Bn was warranted, resulting in a shortfall of UGX.3.88Bn which is 1.1% of the budget. Revenue shortfalls affect implementation of the planned activities. Out of the total warrants of UGX.359.86Bn received during the financial year, UGX.357.04Bn was spent by the entity resulting in an unspent balance of UGX.2.82Bn representing an absorption level of 99.2%. The unspent funds were swept back to the consolidated fund as required by PFMA. I noted that the University received off-budget financing to the tune of UGX.237,398,885,878 which was not declared to Treasury and, therefore, not appropriated to the entity by Parliament. These funds were received directly from both development partners and other stakeholders for undertaking activities not budgeted for. I reviewed the extent of quantification of outputs and activities for a + + + + +265 + + + + + + + + + + + +sample of ten (10) outputs with a total of forty two (42) activities and expenditure of UGX.356.85Bn and noted that two (2) outputs with a total of seven (7) activities and expenditure worth UGX.265.85Bn were fully quantified. Two (2) outputs with a total of twenty-five (25) activities and expenditure worth UGX.30.11Bn were insufficiently quantified while six (6) outputs with a total of ten (10) activities and expenditure worth UGX.60.89Bn were not quantified at all. I observed that in cases where outputs were either partially or not quantified, management reported performance in generic ways. + + + +- I assessed implementation of two (2) out puts that were fully quantified with a sample of seven (7) activities worth UGX.265.85Bn and noted that one (1) output with a total of three (3) activities worth UGX 4.06Bn was fully implemented while one (1) output with a total of four (4) activities worth UGX.261.78Bn were partially implemented. + + + +- During the financial year under review, the University lost its main administration building and other assets therein to a fire that gutted the main administration Block on the 20th day of September 2020. The fire caused substantial damage to the main building whose value was estimated at UGX.15,434,782,500 by the Chief Government Valuer. + +- The Statement of reported losses of Public moneys, stores and other assets during the year showed the reported losses of assets/property of total estimated value of UGX.16,457,577,500. + + + +- The University had a receivables balance of UGX.25,527,015,916 as at 30/6/2021 broken down as accrued income of UGX.23,372,851,776 and a prepayment of UGX.2,154,164,140 to UMEME for electricity bulk purchase. The accumulation of receivables may lead to under performance of the university on its planned activities. + + + + + +- The University has an outstanding pension liability of UGX.18,920,219,207, inclusive of interest as reported in the Statement of Financial Position for the year ended 30th June 2021 resulting from accumulation of In-House Retirement Benefits since 2010. Delayed payment of retirement benefits may result in nugatory expenditure if the retirees decide to take the University to court. + + + +- The Statement of Financial Position showed accumulation of domestic arrears of UGX.7,819,385,752 as at 30th June 2021. I noted that majority of these arrears were from the prior years. There is a risk that the University could face litigation from the suppliers and other beneficiaries. + + + +- I noted that the main University installations/buildings such as the Senate, the Library, School of Women and Gender Studies and others are not comprehensibly insured. In case of a catastrophe, the University is at risk of huge financial obligations to the tenants. + + + +- I noted that there are non-qualifying persons occupying the University buildings. These were identified to be former University staff (retirees), unknown persons and Uganda Police Officers whose services were transferred from Makerere University. + + + +- I noted that water bills for the year under review were neither read nor submitted to the finance department for deductions. I noted that staff salaries were arbitrarily deducted to clear their water consumption without following one’s monthly water consumption. + +- The University owns various pieces of land totalling to 102 Acres in prime locations around Kampala including Makerere, Mulago and Makindye. Inspection of the land revealed that the land is heavily encroached upon and a number of cases have been in court for more than five (5) years. + + + +266 + + + + + + + + + + + +  A review of the Land register revealed that the University owns land in Kibaale and Makerere Hill. It was however noted that the university had not secured certificate of titles confirming ownership of the two (2) pieces of land. A review of the staff establishment at the directorates and Colleges revealed an overall staffing gap of 915 positions, which is 44.9 % of the approved establishment. The understaffing was mainly at the Associate Professor level and Professor level. It was further noted that most of the staff at lecturer and senior lecturer level had adequate qualifications but had not been promoted. +13 Muni University. 2020/21Opinion Unqualified  I reviewed the NTR estimates, revenue sources and rates charged at vote level for the financial year 2020/2021 and noted that Muni University budgeted to collect NTR of UGX.1.18bn during the year under review. Out of this, only UGX.0.34bn was collected, representing a performance of 29% of the target. I further noted that the University budgeted to receive UGX.22.60Bn from treasury out of which UGX.21.28Bn was availed, resulting in a shortfall of UGX.1.32Bn which is 5.8% of the budget. Out of the total warrants of UGX.21.280Bn received during the financial year, UGX.19.982Bn was spent by the entity resulting in an unspent balance of UGX.1.298Bn representing an absorption level of 93.9%. The unspent funds were swept back to the consolidated fund as required by the PFMA. The University received off-budget financing to the tune of UGX.584,396,093 which was not declared to treasury and, therefore, not appropriated to the entity by Parliament. These funds were received directly from development partners for undertaking activities not budgeted for. I reviewed the extent of quantification of outputs and activities for a sample of ten (10) outputs with a total of fifty-nine (59) activities and expenditure of UGX.18.9Bn and noted that five (5) outputs with a total of twenty-two (22) activities and expenditure worth UGX.6.47Bn were fully quantified. Two (2) outputs with a total of thirty-three (33) activities and expenditure worth UGX.10.29Bn were insufficiently quantified. While three (3) outputs with a total of four (4) activities and expenditure worth UGX 2.14Bn were not quantified at all. I assessed the implementation of five (5) out puts that were fully quantified with a total of twenty-two (22) activities worth UGX6.47Bn and noted that three (3) outputs with a total of ten (10) activities worth UGX.0.640Bn were fully implemented while two (2) outputs with a total of twelve (12) activities worth UGX.5.83Bn were partially implemented. The University spent a sum of UGX.265,775,722 on payment of gratuity expenses during the year against the approved budget and release of only UGX.52,000,000. Payment of gratuity expenses beyond the appropriated and warranted funds is an indication of budget indiscipline and leads to diversion of funds. The laboratory equipment that included the PCR machine, the high- capacity Fridge for preserving the laboratory specimens, the PCR workstation and many others supplied by the ADB HEST Project last year, had not been put to use due to power challenges. This defeats the purpose for which the equipment was supplied. Muni University Capacity Building Centre (MUCBC);- Dormitory (Hostels), Dining Hall, Lecture Block, Conference Hall, Office Block, 6 Stance VIP + + + + +267 + + + + + + + + + + + + Latrine and Store have deteriorated and in dire need of renovation. The University’s land in BidiBidi measuring about 439.58 acres valued at UGX.439,580,000 did not have a land title. Muni University entered into a contract for the Completion of the Construction of Health Science Laboratory Building at a contract price of UGX.9,393,202,823 inclusive of taxes. However, works were significantly behind schedule at an estimated 36% completion. There is a risk that the Project may not be completed within the projected time frame. +14 Mbarara University of Science & Technology. 2020/21Opinion Unqualified  I noted that the University had NTR estimates of UGX.12.43Bn out of which UGX.9.28Bn was collected representing 75% of the budget. I noted that out of the total receipts for the financial year of UGX.55.4Bn, only UGX.51.4Bn was spent by the entity resulting in an unspent balance of UGX.4Bn representing an absorption level of 92.9%. I noted that the University received off-budget financing to the tune of UGX.9.2Bn which was not transferred to the consolidated fund as required by the law. I noted that nine (9) outputs with a total of twenty-two (22) activities and expenditure worth 42.9Bn were fully quantified. That is, 99% of the activities within these out-puts were clearly quantified to enable assessment of performance. I noted that one (1) output with a total of three (3) activities and expenditure worth UGX 0.47Bn was insufficiently quantified. That is, the two (2) activities of the three sampled (67%) of the output was not clearly quantified to enable assessment of performance. I noted that one (1) output with one activity worth UGX.0.05Bn was fully implemented, while eight (8) outputs with a total of twenty-one (21) activities worth UGX.42.9Bn were partially implemented. Out of the twenty-one (21) activities, the entity fully implemented nine (9) activities (43%), 9 (43%) activities were partially implemented and three (3) activities (14%) remained unimplemented I noted that the University accumulated receivables totalling to UGX.4,222,012,678 as at 30th June 2021, an increase of UGX.1,427,267,366 (51%) in the outstanding receivables of UGX.2,794,745,312 of the prior year ended 30th June 2020. I noted that the leasehold land on Plot No. 6, lower circular Road, Mbarara expired on 31st March 2017 and has not been renewed four (4) years after its expiry. I noted that MUST owns six (6) tourist camping sites (bandas) adjacent to Bwindi forest, in Kanungu district on approximately 2 acres of land which was leased to a service provider for a period of 10 years effective 12/04/2020 at contract sum of UGX.480,000,000 (UGX.48,000,000 annually). However, the service provider did not pay the first instalment of UGX.48,000,000 which was due on 12th April 2021, citing challenges of Covid-19 pandemic. +15 National Council of Sports. 2020/21Opinion Unqualified  Out of the budgeted NTR of UGX.1,185,394,990 for the financial year 2020/2021, UGX.515,782,750 was collected representing a performance of 44% of the target. The entity budgeted to receive UGX.22.9Bn from the Treasury out of which UGX.21.6Bn was received, resulting into a shortfall of UGX.1.3Bn which was 5.7% of the budget. + + + + +268 + + + + + + + + + + + +  Out of the total receipts for the financial year of UGX.22.165 Bn, UGX.22.160 Bn was spent by the entity resulting into an under absorption of UGX.0.006 Bn representing an absorption level of 99.97%. Out of the eleven (11) outputs with a total of seventy-six (76) activities and expenditure of UGX.22.059 Bn taken for assessment, six (6) outputs with a total of thirteen (13) activities and expenditure worth UGX.18.708 Bn were fully quantified. I assessed the implementation of six (6) out puts that were fully quantified with a total of thirteen (13) activities worth UGX.18.708Bn and noted that five (5) outputs with a total of twelve (12) activities worth UGX.18.708Bn were partially implemented. Out of the twelve (12) activities, the entity fully implemented five (5) activities (42%); partially implemented three (3) activities (25%) and four (4) activities (33%) remained unimplemented. A review of the strategic plan, budgets and other records revealed that Council does not have a policy in place for promoting sports. There was no evidence availed by management to show that there is any framework of relationship with Local authorities to provide sports facilities. Whereas Council approved funds transfer of UGX.1,431,284,198 to various Associations, there was no evidence to show that Council approved budgets of the individual Associations as required by NCS Regulations. I further noted that the approved funds transfers lacked a schedule supporting the allocation break down. Out of the 51 registered Associations, 49 submitted information about their other sources of funding. The remaining 2 Associations did not submit the required information for the period under review. I noted that some Associations did not deduct and remit WHT totalling to UGX.21,636,694 to the Uganda Revenue Authority. +16 Uganda Management Institute (UMI). 2020/21Opinion Unqualified  I noted that the Institute budgeted to collect NTR of UGX.25.68Bn during the year under review. Out of this, only UGX.9.11Bn was collected, representing a performance of 35.5% of the target. In addition, the Institute budgeted to receive UGX.36.33Bn however, UGX.33.89Bn was availed, resulting in a deficit of UGX.2.44 Bn which is 6.7% of the budget. Out of the total warrants of UGX.33.88Bn received during the financial year. UGX.29.25Bn was spent by the entity resulting in an unspent balance of UGX.4.63Bn, thus an absorption level of 86.33%. The unspent funds were swept back to the consolidated fund as required by the PFMA. I further noted that the entity did not seek a revision of its budget and work plan as provided for by section 17 (3) of the PFMA 2015. I noted that the University received off-budget financing to the tune of UGX.185,595,654 which was not declared to treasury and, therefore, not appropriated to the entity by Parliament. These funds were received directly from development partners for undertaking activities not budgeted for. I reviewed the extent of quantification of outputs and activities for a sample of twelve (12) outputs with a total of sixty-eight (68) activities and expenditure of UGX.35.32Bn and noted that all the twelve (12) outputs with a total of sixty-eight (68) activities and expenditure worth UGX 35.32Bn were not quantified at all. That is, all the sixty-eight (68) activities (100%) within these outputs were not clearly quantified to enable assessment of performance. I noted that PAYE tax totaling to UGX.589,262,089 was not deducted + + + + +269 + + + + + + + + + + + + from staff gratuity payments on the basis of exemption from PAYE under the Pensions Act However, I noted that the gratuity of staff under contract terms is not regulated by the Pensions Act. I noted that UMI did not transfer to the Consolidated Fund unspent balances of UGX. 555,953247 on ABSA Project Account at the end of the financial year as advised by the Accountant General. +17 Uganda National Examinations Board (UNEB). 2020/21Opinion Unqualified  Out of the budgeted NTR of UGX.56.7Bn for the financial year 2020/2021, UGX.55.5 Bn was collected representing a performance of 97.9% of the target. There was no shortfall in Government releases, UNEB budgeted to receive UGX.93.943 Bn from government which was entirely warranted. Out of the total receipts for the financial year of UGX.149.49Bn, a sum of UGX.149.49 Bn was spent by the Board representing an absorption level of 100%. UNEB received off-budget financing to the tune of UGX.900,250,000 which was not appropriated by Parliament. These funds were received directly from NAPE-UTSEP project to conduct a survey on behalf of MOES on the effect of COVID-19 on teaching and learning at primary and secondary school levels. I reviewed the extent of quantification of outputs and activities for all the nine (9) outputs with a total of forty-two (42) activities and expenditure of UGX.149.49Bn and noted the eight (8) outputs with a total of thirty three (33) activities and expenditure worth UGX.101.67Bn were fully quantified. While one (1) output with a total of nine (9) activities and expenditure worth UGX.47.81Bn, was insufficiently quantified. I assessed the implementation of five (5) outputs that were fully quantified with a total of fifteen (15) activities worth UGX.1.5Bn and noted that Five (5) outputs with fifteen (15) activities and expenditure worth UGX 18.87Bn were fully implemented. Three (3) outputs with eighteen (18) activities worth UGX.82.80Bn were partially implemented. Out of the eighteen (18) activities, the entity fully implemented fourteen (14) activities, two (2) activities partially implemented, while two (2) activities remained unimplemented. +18 BTVET SUPPORT PROJECT 2020/21Opinion Unqualified  There were no reportable issues. +19 Petroleum Geoscience Collaboration Programme (ENPE II PROJECT) 2020/21Opinion Qualified  Makerere University main Building was gutted down by fire where vital documents got lost in the inferno. Consequently, payment vouchers and supporting documents in support of payments totaling to UGX.368,361,770 which is 65% of the total expenditure were not presented for examination. I was not able to confirm the authenticity of the expenditure. +20 Makerere Institute of Social Research Beyond Criminal Justice Project Centre File 107453-001 for the Period 1 st January 2013 to 31 st December 2013  No material issues to report on + + + + +270 + + + + + + + + + + + + Opinion Unqualified +21 Makerere Institute of Social Research Beyond Criminal Justice Project Centre File 107453-001 For The Period 1 st January 2014 to 31 st December 2014Opinion Unqualified  No material issues to report on +22 Makerere Institute Of Social Research Beyond Criminal Justice Project Centre File 107453-001 For The Period 1st January 2015 To 31st December 2015Opinion Unqualified  No material issues to report on +23 Makerere Institute of Social Research Beyond Criminal Justice Project Centre File 107453-001 For The Period 1st January 2016 To 31st December 2016Opinion Unqualified  No material issues to report on +24 MAKERERE INSTITUTE OF SOCIAL RESEARCH- HARRY FRANK GUGGENHEIM FOUNDATION GRANT FOR THE PERIOD 1st JANUARY 2014 TO 31ST DECEMBER 2014Opinion Unqualified  No material issues to report on +25 MAKERERE INSTITUTE OF SOCIAL RESEARCH- HARRY FRANK GUGGENHEIM FOUNDATION GRANT FOR THE PERIOD 1 st JANUARY 2015TO 31ST DECEMBER 2015Opinion Unqualified  No material issues to report on +26 MAKERERE INSTITUTE OF SOCIAL RESEARCH- HARRY FRANK GUGGENHEIM FOUNDATION GRANT FOR THE PERIOD 1 st JANUARY 2016 TO 31ST DECEMBER  No material issues to report on + + + + +271 + + + + + + + + + + + + 2016Opinion Unqualified +27 Makerere Institute Of Social Research Internally Generated Funds For The Period 1st July 2012 To 30th June 2013Opinion Unqualified  No material issues to report on  +28 Makerere Institute of Social Research Internally Generated Funds for The Period 1st July 2013 To 30th June 2014Opinion Unqualified  No material issues to report on  +29 Makerere Institute of Social Research Internally Generated Funds for The Period 1st July 2014 to 30th June 2015Opinion Unqualified  No material issues to report on  +30 Makerere Institute of Social Research Internally Generated Funds for The Period 1st July 2015 to 30th June 2016Opinion Unqualified  No material issues to report on  +31 Makerere Institute of Social Research- Norhed Project “Building and Reflecting on Interdisciplinary Phd- Studies for Higher Education Transformation” Grant Number: Uga- 13/0023 For the Period 1st January 2014 to 31st December 2014Opinion Unqualified  No material issues to report on  +32 Makerere Institute of Social Research- Norhed Project “Building and Reflecting on Interdisciplinary Phd-  No material issues to report on  + + + + +272 + + + + + + + + + + + + Studies for Higher Education Transformation” Grant Number: Uga- 13/0023 For the Period 1st January 2015 to 31st December 2015Opinion Unqualified +33 Makerere Institute of Social Research- Norhed Project “Building and Reflecting On Interdisciplinary Phd- Studies For Higher Education Transformation” Grant Number: Uga- 13/0023 For The Period 1st January 2016 To 31st December 2016Opinion Unqualified  No material issues to report on +34 Makerere Institute of Social Research- Think Tank Initiative Phase 2 Institutional Support Centre File: 107906-001 For The Period 1st January 2014 To 31st December 2014Opinion Unqualified  No material issues to report on  +35 Makerere Institute of Social Research- Think Tank Initiative Phase 2 Institutional Support Centre File: 107906-001 For the Period 1st January 2015 to 31st December 2015Opinion Unqualified  No material issues to report on +36 Makerere Institute of Social Research- Think Tank Initiative Phase 2 Institutional Support Centre File: 107906-001 For the Period 1st January 2016 to 31st December 2016Opinion Unqualified  No material issues to report on +37 Makerere Institute of SocialResearch- Carnegie  No material issues to report on + + + + +273 + + + + + + + + + + + + Corporation Grant Number B 8741.Ro1 for the Period 1st January 2014 to 31st December 2014Opinion Unqualified  +38 Makerere Institute of Social Research Carnegie Corporation Grant Number B 8741.R01 for the Period 1 st January 2015 to 31 st December 2015Opinion Unqualified  No material issues to report on  +39 Makerere Institute of Social Research-Carnegie Corporation Grant Number B 8741.Ro1 For the Period 1st January 2016 To 31st December 2016Opinion Unqualified  No material issues to report on  +40 Kyambogo University Enable Report June 2020Opinion Unqualified  No material issues to report on  +41 KYU University ENABLE Project Report Dec 2020Opinion Unqualified  No material issues to report on  +42 KYU NORHED-MVP Project Report June 2020Opinion Unqualified  No material issues to report on  +43 KYU NORHED-MVP Project Report Dec 2020Opinion Unqualified  No material issues to report on  +44 Uganda Petroleum Institute Kigumba 2020/21Opinion Unqualified  I noted that the Institute submitted its strategic plan for the period 2021- 2025 to NPA for review and approval but at the time of audit the certificate of approval had not been received. Out of the budgeted NTR of UGX.0.67Bn for the year 2020/2021only UGX.0.073Bn was collected, representing a performance of 9% of the target. Similarly, the Institute budgeted to receive UGX.8.5bn from GOU + + + + +274 + + + + + + + + + + + + of which UGX.6.65bn was warranted, resulting in a shortfall of UGX. 1.85bn representing 21% of the budget. I noted that the Institute spent all the funds that was available amounting to UGX.6.92bn representing 100% performance. I noted that Seven (7) outputs with fifteen (15) activities and expenditure worth UGX.4Bn were fully quantified. That is, 100% of the activities within these out-puts were clearly quantified to enable assessment of performance. I further noted that Twelve (12) outputs with Twenty two (22) activities and expenditure worth UGX.2.49Bn was not quantified to enable assessment of performance. Out of the Seven (7) quantified outputs three (3) outputs with seven (7) activities and expenditure worth UGX 4.39Bn were fully implemented while two (2) outputs with four (4) activities worth UGX.0.25Bn were partially implemented as two (2) outputs with four (4) activities worth UGX0.33Bn were not implemented. That is none of the four (4) activities was implemented at all. The Institute had accumulated domestic arrears totalling to UGX. UGX.1.03Bn by the closure of the financial year under review (2020/2021) thereby being expressed to risk of litigation. The Institute had outstanding receivables totalling to UGX.0.055Bn by the closure of the financial year under review. Construction of Female hostel block, 2 Lecture halls, Library and an information Centre and Health Centre had delayed by 20months from the initial completion date of 27th March, 2020. Out of the 103 approved staff established of the Institute, only 84 posts had been filled leaving 19 (18%) positions vacancies. I further noted that in spite of the vacant positions, the Institute had recruited an additional Forty-six (46) staff on contract terms outside the approved structure. +45 Tb Preventive Therapy for Hiv-Infected Alcohol Users in Uganda: An Evaluation of Safety, Tolerability and Adherence (ADEPTT) Project 2018Opinion Unqualified  I noted that the closing balance of USD 12,178.00 was different from the balance brought forward as at 1st September 2017 of USD 9,615.58 creating a difference of USD 2,562.42. The difference could not be explained by management and was therefore disclosed in the Fund accountability statement as unaccounted for funds. +46 MUST- Public Engagement Fund Grant, ‘Unpacking Design Thinking Principles Through Biomedical Engineering Student’s Innovation Cafes’ Bmeic Project – 2020Opinion Unqualified  No Reportable issues.  +47 MUST- Serial Killers to Mosquitoes; The Spatial Targeting of Larval Habitats in Rural Uganda Using Geographic Profiling  No Material Reportable issues.  + + + + +275 + + + + + + + + + + + + (Breeding Sites) Project – 2019Opinion Unqualified +48 Epidemiology of Coronary Artery Disease Among People with Hiv In Rural Sub-Sahara Africa (CAD) Project 2019Opinion Unqualified  No Material Reportable issues.  +49 MUST- Interventions to Reduce Alcohol Use and Increase Adherence to TB Prevention Therapy Among Hiv/Tb Co-Infected Drinkers (DIPT) 2019Opinion Unqualified  No Material Reportable issues.  +50 MUST-Population Effectiveness of Dolutegravir Implementation in Sub- Saharan Africa: A Prospective Observational Cohort Study” (DISCO), 2020Opinion Unqualified  No Material Reportable issues.  +51 MUST- Mobile Technology to Extend Clinic – Based Counseling For Hiv+ In Uganda (Extend), Project – 2019Opinion Unqualified  No Material Reportable issues.  +52 MUST- Mama Namtoto: Barriers and Enablers to Gender, Equity and Scale- Up in Tanzania Project Code 108547-002, 2018Opinion Unqualified  No Material Reportable issues.  +53 Must- Research Aimed at Developing Sustainable Low Field Magnetic Resonance Imaging (MRI-NIH) Project  No Material Reportable issues.  + + + + +276 + + + + + + + + + + + + – 2019Opinion Unqualified +54 Advancing Hiv Research at MUST Through A Research Administration Training Project with the University of Virginia (RASA) -2020Opinion Unqualified  No Material Reportable issues.  +55 MUST- Resistance Testing Versus Adherence Support for Management of Patients with Virologic Failure on First-Line Antiretroviral Therapy in Sub-Saharan Africa (Revamp) Project No. 04/05-16 – 2018Opinion Unqualified  I noted that the opening bank balance of USD 58,902 was different from the balance brought forward as at 1st July 2017 of USD 49,244, thus creating unexplained difference of USD 9,658. The difference was disclosed in the Fund accountability statement as unaccounted for funds. I noted stale payments (cheques) totaling to USD 29,567.06 that were kept beyond six months in favor of government agencies and suppliers of goods and services which were never paid by the Project. This creates a risk of court fines and penalties. +56 MUST- Analysis of Past and Projected Future Land Use Change and Its Impact on Sediment Fluxes in The Rwizi Catchment (Vlir Rwizi) Project – 2018Opinion Unqualified  No Material Reportable issues.  +57 MUST- Smart Discharge to Improve Post-Discharge Health Outcomes in Children: A Prospective Stepped-Wedge Effectiveness Study (Smart Discharge) Project - 2019.Opinion Unqualified  No Material Reportable issues.  +58 Social Networks, Hiv Stigma, And the Hiv Care Cascade in Rural Uganda Project Of Mbarara Universisty Of Science and Technology- 2019Opinion Unqualified  No Material Reportable issues.  +59 MUST-The Virologic And Pharmacologic  No Material Reportable issues. + + + + +277 + + + + + + + + + + + + Determinants of Dolutegravir Failure in East Africa (Tld) Project 2019Opinion Unqualified  +60 MUST- Voices of The Indigenous People Of Uganda Project 2020Opinion Unqualified  No Material Reportable issues.  +61 Education Service Commission 2020/21Opinion Unqualified  I noted the Commission closed the year with outstanding payables/domestic Arrears worth UGX.0.255Bn. The Commission received all the budgeted amount of UGX.9.38Bn and had unspent balance of UGX. 0.82Bn, representing an absorption level of 91%. I noted that the Commission quantified all its outputs. Ten (10) outputs were fully quantified with a total of thirty five (35) activities worth UGX 8.55Bn. Seven (7) outputs with twenty four (24) activities worth UGX.8.1Bn were partially implemented, while one (1) output with one (1) activity worth UGX.0.015Bn was not implemented. +62 Multinational Statistical Capacity Building Program for Managing for Development Results - Phase 4.2 (MSCB-AFDB) Project 2017Opinion Unqualified  No Material Reportable issues.  +63 Multinational Statistical Capacity Building Program for Managing for Development Results - Phase 4.2 (MSCB-AFDB) Project 2018Opinion Unqualified  No Material Reportable issues.  +64 Multinational Statistical Capacity Building Program for Managing for Development Results - Phase 4.2 (MSCB-AFDB) Project 2019Opinion Unqualified  No Material Reportable issues.  + + + + +278 + + + + + + + + + + + + +65 Multinational Statistical Capacity Building Program for Managing for Development Results - Phase 4.2 (MSCB-AFDB) Project 2020Opinion Unqualified  No Material Reportable issues.  +66 Mandela National Stadium Limited 2020/21Opinion Unqualified  I noted that the Company had no approved strategic plan that is aligned to NDPIII at the time of audit. I noted that although the Company realized 101% of the budgeted, the original budget was revised from UGX.6.07Bn to UGX.2.63bn to match the expected revenue. Out of the total receipts for the financial year of UGX.2.66bn, UGX. 1.36 Bn was resulting into an unspent balance of UGX.1.3bn representing an absorption level of 51%. I noted that the Stadium quantified all its five (5) outputs and all the outputs were partially implemented whereby out of forty four (44) activities, the entity fully implemented seven (7) activities (16%), partially implemented five (5) activities (11%), while thirty two (32) activities (73%) remained unimplemented. I noted that MNSL liabilities remained on a higher side despite a registered decrease from UGX.5.38Bn in the F/Y 2019/2020 to UGX.3.89Bn as at the end of the financial year under review representing a reduction of UGX.1.49 (28%). I noted that Mandela National stadium closed the financial year with a receivables figure of UGX.2.42Bn, a reduction of only 7% from receivables of UGX.2.59 as at the end of the previous FYR: 2019/2020. I noted that the Company did not implement its Staffing Strategy of the current running strategic plan 2018-2023. I noted that stadium Land continues to have illegal occupants. +67 The Albertine Region Sustainable Development Project (ARSDP) - MOES Component 2020/21Opinion Unqualified  Assessment of the Project’s performance for the five year Project work plan implementation status revealed that one objective/goal had been achieved, while the remaining seven (7) were partially achieved. Out of the project donor budgeted receipts of UGX.41.3Bn only UGX.35.5Bn was released, resulting in a shortfall of 5.5Bn representing 86% performance; out of the GOU budgeted amount of UGX. 2.94Bn, only UGX.2.66Bn was released, resulting in a shortfall of 0.28Bn representing 91% performance. Out of the total receipts for the financial year of UGX. 35.5Bn, UGX.32.3Bn was spent by the Project leaving a balance of UGX.3.2Bn representing 91% performance. I noted that four (4) outputs and nine (9) activities to be implemented; Three (3) outputs with a total of eight (8) activities and expenditure worth UGX.18.79Bn were fully quantified while One (1) output with one (1) activity and expenditure worth UGX.13.48Bn was insufficiently quantified to enable the assessment of performance. I noted that three (3) out puts with a total of eight (8) activities worth + + + + +279 + + + + + + + + + + + + UGX.25.18Bn were fully quantified. I noted One (1) output with two (2) activities and expenditure worth UGX 14.53Bn was fully implemented. That is all the two (2) activities within this output were fully implemented. I further noted that One (1) output with Five (5) activities worth UGX.3.60Bn was partially implemented. I also noted that One (1) output with one (1) activity worth UGX.0.68Bn was not implemented. That is; the one (1) activity was not implemented at all. Review of the Implementation status of the aide Memoir reports by the World bank for the Project monitoring mission activity for the period 27th July -3rdAugust 2020, 2nd-10th December 2020 Mission and 16th-25th March, 2021 revealed that some of the agreed upon actions/recommendations between the World Bank and MoES Implementation status of aide Memoir reports indicated that some recommendations had either been partially implemented or not implemented. I noted that there was no internal audit review carried out on the operations of ARSDP during the period under review contrary to the requirement in Section II (B) of the ARSDP Financing agreement. +68 Kyambogo University 2020/21Opinion Unqualified  I noted that the University prepared a strategic plan and obtained a certificate of compliance on the 27th of September 2021 from National planning Authority (NPA). The University collected UGX.40.9Bn (53%) of its budgeted non-tax revenue of UGX.77.1Bn. I further noted that the university received UGX.130.07Bn (93%) out of the budgeted GOU receipts amount of UGX.140.6Bn. Out of the total warrants for the financial year of UGX.130.07Bn, only UGX.124.5 was spent by the University resulting into unspent balance of UGX.5.53Bn representing an absorption level of 96%. The University received Donor financing to the tune of UGX.3.11Bn of which only UGX.2.68Bn had been included in the budget reflecting off budget receipts of UGX.0.43Bn. I noted that out of the 14 outputs sampled, 4 out puts (29%) were fully quantified, 8 out puts (57%) were insufficiently quantified while 2 out puts (14%) were not quantified at all. I also noted that the University did not fully implement any of the 4 fully quantified out puts. The University had outstanding domestic arrears and outstanding receivables of UGX.13.6Bn and UGX.23.2Bn, respectively. Some of the University land had illegal land occupants. I further noted that there were variations between the area on the Certificate of Tittle and actual Area on the ground for plot M902 of the University land. Out of the 1,671 approved posts for the University, only 928 (55.5%) were filled leaving 743 (45.5%) posts vacant. This has a negative impact on education service delivery. The University had MOUs for only 40 of the 112 affiliated Institutions. I further noted that of the 40 MOUs availed; MOUs for 9 Institutions had expired. +69 The National Council for Higher Education  Out of budgeted NTR collections of UGX. 6.25bn, only UGX. 2.96Bn was + + + + +280 + + + + + + + + + + + + 2020/21Opinion Unqualified realized, representing a performance of 47.4%. The Council budgeted to receive UGX.5.4Bn from Government out of which UGX.5.01Bn was availed, resulting in a shortfall of UGX0.39Bn, which is 7.2% of the budget. Out of UGX.8.86 Bn available for spending during the financial year, UGX.8.75Bn was spent by the entity resulting into unspent balance of UGX 0.11 Bn, representing absorption level of 99%. I noted that out of the one hundred sixteen (116) activities, fifty three (53) activities (46%) were quantified, while the balance of sixty three (63) activities (54%) were not clearly quantified to enable the assessment of performance. I further noted that One (1) output with a total of Nine (9) activities and expenditure worth UGX 0.62 Bn were not quantified at all. +70 National Curriculum Development Centre 2020/21Opinion Unqualified  I noted that whereas NCDC had prepared a strategic plan and whereas a notification of approval had been provided by NPA, a certificate of approval was yet to be obtained. Out of the budgeted NTR of UGX.250,000,000 for the financial year under review, UGX.93,000,000 was collected representing a performance of 37.2% of the target. The entity budgeted to receive UGX.40.163Bn from Treasury out of which UGX.37.138 Bn was warranted, resulting into a budget shortfall of UGX.3.025Bn which is 7.5% of the budget. The Centre received off-budget financing to the tune of UGX.1,661,966,260 which was not transferred to the Consolidated Fund as required by the law and hence not appropriated. Out of the total receipts for the financial year of UGX 37.137bn a sum of UGX. 36.929bn was spent by the entity resulting into an under absorption of UGX.0.208bn representing absorption level of 99.4%. Out of the eleven (11) outputs with a total of seventy three (73) activities and expenditure of UGX.36.88 Bn, nine (9) outputs with a total of sixty eight (68) activities and expenditure worth UGX 35.95 Bn were fully quantified, one (1) output with a total of two (2) activities and expenditure worth UGX.0.16Bn were insufficiently quantified, and one (1) output with a total of one (1) activity and expenditure worth UGX 0.77Bn was not quantified to enable assessment of performance. I assessed the implementation of nine (9) out puts that were fully quantified with a total of sixty eight (68) activities worth UGX.35.95Bn and noted the following; Two (2) outputs with 2 (two) activities worth UGX 0.75 Bn were fully implemented. The entity implemented the two (2) activities (100%) within the outputs. Secondly; seven (7) outputs with a total of sixty six (66) activities worth UGX.35.20Bn were partially implemented. Out of the sixty six (66) activities, the entity fully implemented forty one (41) activities (62%); partially implemented seven (7) activities (11%) and eighteen (18) activities (27%) remained unimplemented. I noted that goods and services totalling to UGX.5,296,396,760 did not have corresponding WHT transactions totalling to UGX.317,783,806 on the IFMS payment file. I further noted that there was no evidence of exemptions. Payments totalling to UGX.7,616,021 were made to staff of the Centre contrary to the e-cash guidelines. Similarly, funds totalling to UGX.31,448,969 were irregularly paid to payees who were already + + + + +281 + + + + + + + + + + + + registered suppliers/vendors on IFMS. Also Funds to the tune of UGX.22,105,200, were utilized for expenses that were not provided for in the budget, to cater for COVID-19 SOPs. +71 Makerere-Sida Bilateral Research Program 2020/21Opinion Unqualified  No material Issues to report on  +72 Pharm-Biotechnology and Traditional Medicine (Pharmbiotrac) Centre Ace Ii Project 2020/21Opinion Unqualified  I noted that a sum of USD.4,754,402 (88%) was disbursed in the 4 years period to 30th June 2021 against the planned cumulative expenditure of USD 5,404,514. I noted that out of the total available financing for the financial year of USD.1,506,515 only USD.1,105,054 was spent by the Project resulting into an unspent balance of USD.401,461 representing an absorption level of 73%. I noted that all the ten (10) outputs with a total of eighty seven (87) activities and expenditure of USD.1,105,054 were clearly quantified to enable assessment of performance. I noted that all the ten (10) outputs with a total of eighty seven (87) activities worth USD. 1.1million were partially implemented. Out of eighty seven (87) activities, the entity fully implemented forty five (45) activities (52%), the entity partially implemented fifteen (15) activities (17%), while twenty seven (27) activities (31%) remained unimplemented. I noted that the Project had not obtained Patent rights over the various Products it had developed. +73 Ministry of Education and Sports (MOES) 2020/21Opinion Unqualified  I noted that the Ministry’s Strategic plan was not yet approved by National Planning Authority at the time of audit. The Ministry budgeted to collect NTR of UGX.6.3Bn during the year under review out of which, only UGX.0.13Bn was realized, representing a performance of only 2% of the target. The entity budgeted for GOU receipts of UGX.388.4bn of which UGX.369bn was warranted, resulting into a shortfall of UGX.19.4Bn which is 5% of the budget. Out of the total receipts for the financial year of UGX.369Bn, a sum of UGX.343.6Bn was spent by the Ministry resulting into an unspent balance of UGX.23.3Bn representing an absorption level of 93%. Twenty three (23) outputs with a total of sixty four (64) activities and expenditure of UGX. 274.4Bn that were sampled were fully quantified. Ten (10) outputs with a total of twenty seven (27) activities worth UGX.124.1Bn were fully implemented. Nine outputs (9) outputs with a total of twenty five (25) activities worth UGX 98.4Bn were partially implemented while Four (4) outputs with a total of twelve (12) activities worth 51.83 Bn were not implemented at all. The Ministry spent UGX.5.3Bn on Covid-19 impacted expenditure to cater for printing and distribution of home learning materials, content writing for home learning materials which was not in the approved budget and there was no evidence of a supplementary request. + + + + +282 + + + + + + + + + + + +  Out of a sum of UGX. 23.44Bn released to the ministry in respect of Covid-19 response related expenditure only UGX.9.62 (55.4%) remained unspent and was subsequently swept back to the Consolidated Fund Account. I noted under Note 18 to the financial statements and the statement of financial position that the ministry had receivables totaling to UGX.10.64Bn at the beginning of the financial year which increased to UGX.11,684,417,736 at closure of the year. The outstanding amounts relate to advances which were made to various educational institutions and District Local Government. The ministry had outstanding payables amounting to UGX.39.45 Bn at the closure of the financial year. This was a reduction of UGX.10.74Bn (21.4%) from UGX.50.19Bn in the FY 2019/20. I further noted that UGX. 29.79Bn (75.5%) of the outstanding amount has been outstanding for more than one year. I also noted that whereas the Ministry had outstanding obligations UGX.50.19Bn at the beginning of the financial year, only UGX.16.69Bn was provided for in the budget resulting into a funding gap of UGX.33.51Bn. Only UGX.18.81Bn of the appropriation for pensions of UGX.28.52Bn (66%) was absorbed leading to under absorption of funds by UGX.9.71Bn (34%). In addition, the Ministry had accumulated pension arrears totaling to UGX.1.47Bn due to delayed payment due to missing documents on pension files. Out of the total verified outstanding court awards of UGX.10.18 Bn, a sum of UGX.4.69Bn (46.1%) relates to accumulated interest costs arising from delayed settlement of court awards. I further noted that whereas the ministry had obligations to the tune of UGX. 15.98Bn and other on- going cases during the financial year, only UGX.1.66Bn was provided for court awards and compensations in the work plan for the financial year under review. Post closure audit inspection on Uganda Teacher School Effectiveness’ project (UTSEP) in the Ministry of Education revealed UGX.1.58Bn remained unutilized as at the closure of the F/Y (30th June 2021). I noted that UGX.3.9Bn of the UGX.5.55Bn advanced to UBOS before project closure date (31st July 20) to carry out data collection (enumeration) for the comprehensive Education Institutions baseline, which was expected to be completed by 30th April 2020 remained outstanding. I noted that the Ministry of Education and Sports still holds the mandate of managing Government scholarships, however information on Scholarship offered at the different Missions and other Government organizations was not available at the Secretariat. In addition, there was no scholarship Policy. I also noted that out of a total of 280 scholarships offered in the previous three years, only 162 were utilized resulting into an under absorption of 118 (42%) scholarships. +74 Opec Fund for International Development (OFID)- Vocational Education Project Phase 11 2020/21Opinion Unqualified  I noted that the 5 year project with total budget of UGX.59.43 Bn that started in June 2017 had only received a total of UGX 14.09 Bn by end of financial year 2020/2021. Out of the total amount of UGX.14.09Bn availed for financing the Project for the four and a half years covered; only UGX.12.3 Bn (87%) had been absorbed while the unspent balance of UGX.1.7bn was swept back to the Consolidated Fund. I noted that whereas the Project closing date was 31st December 2021, + + + + +283 + + + + + + + + + + + + two critical project Components 1 & 2 (civil works, supply of equipment and tools) that form 85% of the total project budget had not taken off by the time of concluding the audit (2nd December 2021. I observed that out of the absorbed funds worth UGX.12.3Bn, UGX.6.6bn (54%) was spent on other Arab funded Projects other than OFID project. I noted that a total amount of UGX. 6.6Bn of the UGX.12.3 Bn GOU component was irregularly spent on other Arab funded Projects of IDBI, IDBII, KFAED and BADEA without authority. +75 Uganda Skills Development Project (USDP)- PSFU 2020/21Opinion Unqualified  I noted that the Project has made cummulative disbursements of USD.15,345,592 against cummulative commitments of USD.17,617,457 representing 87% performance. Out of the total amounts of UGX.30.75Bn available for spending during the financial year under review, a total amount of UGX.24.6Bn was spent by the Project resulting into an unspent balance of UGX.6.14Bn, representing an absorption level of 80%. All the seven (7) outputs with a total of twenty-nine (29) activities and expenditure of 24.6Bn that is, all the twenty-nine 29 activities (100%) within these out-puts were clearly quantified. I assessed implementation of Quantified outputs and noted that; the Project fully implemented sixteen (16) activities (62%); the Project partially implemented eight (8) activities (30%), while two (2) activities (8%) remained unimplemented. +76 Uganda Skills Development Project (USDP) -MOESOpinion Unqualified  I noted that at the close of the financial year 2020/2021, out of the two (2) planned strategic targets/objectives, one objective/goal had been achieved, while the other one had been partially achieved. Out of the budgeted amount of UGX.58.82Bn budgeted to be received from World Bank during the financial year 2020/2021; a sum of UGX.46.53Bn was received indicating performance of 79% of the target. Similarly, the project budgeted to receive UGX.1.25Bn, of which UGX.1.07Bn was warranted, resulting in a shortfall of UGX. 0.18 Bn (14.4%) of the budget. I noted that all project outputs were fully quantified. I also noted that the project fully implemented one of the sampled outputs, partially implemented one and two outputs were not implemented. I noted delayed Signing of Contract for Supply of a Spray track for UTC Lira valued at Euros 205,200 had delayed for 9 months by end of November 2021, following the contracts committee’s approval on 23rd/02/2021. I noted delayed Installation and testing of Equipment: USD. 8,304,848 by 5 months at the time of audit at the end of November. I further noted that furniture supplies and civil works had also delayed with the delayed period ranging from 1-7 months. +77 Imagining Gender Futures in Uganda (IMAGENU) Project – DFC Project No. 17-07-AU- Gulu University - 2020Opinion Unqualified  There were no reportable issues.  + + + + +284 + + + + + + + + + + + +78 Makerere University Busines School. 2020/21 + +Opinion Unqualified + + + +- I noted that the University had its plan approved and certified by NPA and the plan is aligned to the national development plan. This greatly supports the achievement of NDP-III objectives. + + + +- I reviewed the NTR estimates, revenue sources and rates charged at vote level for the financial year 2020/2021 and noted that the entity budgeted to collect NTR of 56.845Bn during the year under review. Out of this, only 33.589bn was collected, representing a performance of 59.1% of the target. + +- The University budgeted to receive UGX.102.629Bn out of which UGX.97.03Bn was availed, resulting in a shortfall of UGX5.59Bn, which is 5.5% of the budget. + + + + + +- Out of the total warrants of UGX.97.03Bn received during the financial year. UGX.96.85Bn was spent by the entity resulting in an unspent balance of UGX.0.18Bn representing an absorption level of 99.8%. The unspent funds were swept back to the consolidated fund as required by the PFMA. + + + +- I noted that the School received off-budget financing to the tune of UGX. 549Bn from NOHRED/NORAD Project Support which was not declared to treasury and, therefore, not appropriated to the entity by Parliament. + + + +- I reviewed the extent of quantification of outputs and activities for a sample of twelve (12) outputs with a total of seventy three (73) activities and expenditure of UGX.91.667Bn and noted that five (5) outputs with a total of fourteen (14) activities and expenditure worth UGX.3.031Bn were fully quantified. One (1) output with a total of twenty four (24) activities and expenditure worth UGX.77.002Bn, was insufficiently quantified while six (6) outputs with a total of thirty five (35) activities and expenditure worth UGX 11.633Bn were not quantified at all. + + + +- I assessed the implementation of five (5) outputs that were fully quantified with a total of fourteen (14) activities worth UGX 3.031Bn and noted that; Three (3) outputs with eight (8) activities and expenditure worth UGX 1.694Bn were fully implemented. One (1) output with two (2) activities worth UGX.1.336Bn was partially implemented while one (1) output with four (4) activities with a budget of UGX.1.159Bn was not implemented. + +- The entity disclosed receivables to the tune of UGX.21,730,133,664. This reflected an increase in receivables by UGX.12,025,676,995 (124%) from the previous year’s balance of UGX.9,704,456,669. The accumulation of receivables impacts negatively on the operations of the University and the education service delivery. + + + +- The Statement of Financial Position showed accumulation of payables to the tune of UGX.1,215,592,931 as at 30th June 2021. I noted that these payables were accumulated in the current year and largely related to suppliers of goods and services. Accumulation of payables poses a risk of litigation and or loss of trust against the University from the suppliers of the goods and services. + + + + + +- The financial statements showed that MUBS was involved in several court cases/legal proceedings of a total value UGX.2,899,977,221 in various courts of law that remained pending as at the financial year end. There is a risk that in case of un-favourable rulings, the School may incur more financial losses. + +- A review of the statement of cash flow revealed payment of domestic arrears of UGX.9,601,334,785 against UGX.330,708,964 that was budgeted and warranted for payment of domestic arrears. Payment of + + + +285 + + + + + + + + + + + + funds to un-appropriated budget lines leads to non-implementation of budgeted for activities. I noted that the School had five (5) pieces of land recorded in the assets register that have never been valued to ascertain the monetary value. I also noted that the land in Kireka had squatters and the possibility of reclaiming it may prove to be challenging. The encroachment on the School land was attributed to failure to gazette and develop the land. +79 The Norwegian Programme for Capacity Development In Higher Education And Research For Development (Norhed) 2020Opinion Unqualified  The Project ended, and as at the end of the six-month period ended 31st December, 2020, funds to the tune of USD. 272,213 (Nok2,054,787) remained unspent, and it was refunded to the Funders. +80 Environment for Development Initiative (Efd- Mak Centre) Project Makerere University for The Period 1st January - 31st December 2020Opinion Unqualified  No material Issues reported +82 Nurture: Research Training and Mentoring Program for Career Development of Faculty in Medical Education Partnership Initiative Institutions (Mepi) At Makerere University College of Health Sciences - 2018Opinion Unqualified  No material Issues reported + SCIENCE ANDINNOVATION SECTOR +1. Kiira Motors Corporation. 2019/2020Opinion Unqualified  I noted that at the time of the audit (June 2020), out of the planned six (6) strategic targets/goals, three (3) targets had been fully achieved and three (3) were partially achieved 100 acres of land, in Kiira Town Council, Jinja District land was only disclosed as a note without value attached and neither is it recorded in the assets register. Failure to handover funds worth UGX.8,923,350,798 to Makerere University, since these funds had been specially released for Kiira Motors as a project under Makerere University. I observed that only two of the nine (9) members of the Board of Directors, the Executive Chairperson and the Chief Executive Officer were duly appointed, leading to an inadequately constituted Board. +2. Presidential Initiative on Banana Industrial Development (PIBID).  I noted that out of the 3 strategic targets, PIBID partially attained them, with the hope of fully attaining the targets by the end of the strategic + + + + +286 + + + + + + + + + + + + 2019/2020Opinion Unqualified plan period. NTR of UGX.99 Million was collected but not remitted to the consolidated fund and was instead spent at source. It was observed that the entity has not taken off full operations as it remains cash strapped with limited subventions from the Ministry of Science Technology and innovation. There was no evidence of the establishment of the Institutional Framework and Governance Board and the renewal of the appointment of the Board and Management Committee Members. During the financial year, a total of UGX.29,230,320 was paid to the Executive Director as man-day allowance for signing 12 contracts on behalf of the organization, yet this is one of her roles for which a monthly salary is paid. A total of UGX.272,694,000 was paid to various staff as allowances for working over the weekend. The internal audit department had only one draft internal audit report with no evidence that the report was submitted to the Accounting Officer and Internal Auditor General. PIBID recruited staff during the year 2019/2020 without an approved recruitment plan for the period. Audit noted that PIBID did not have an approved salary structure on which it bases to pay individual staff I noted that the entity lacked land titles for its land at Sanga (approximately 50 acres) and land where the water source is located at Kyamugambira (approximately 4 acres). Management deducted UGX.633,205,884, as PAYE, from employee’s salaries but was not remitted to Uganda Revenue Authority. It was observed that outstanding obligations to the National Security Fund at the end of the Financial Year 2019/2020 were UGX.829,409,254. +3. Uganda Institute of Communication Technology (UICT). 2019/2020Opinion Unqualified  I noted that out of the budgeted revenue of UGX.3,359,386,101 for the year 2019/2020, only UGX.1,893,012,622 was collected representing a performance of only 56% of the target. An analysis of the outputs/activities that were quantified revealed that several activities remained un implemented. I noted that there was over expenditure of UGX.34,136,741 on three budget lines. I noted that the entity had outstanding trade and other receivables amounting to UGX.384,635,852. I noted temporary staffs that have been working at the Institute for over 10 years with continuous contract renewals. A review of the staff establishment showed that only 41 positions were filled out of the established 99 positions, leaving 58 positions vacant. I noted that there was neither staff training nor an annual training plan in place. Contrary to Section 34 (1) of the VAT Act 1996, I noted that UGX.4,534,592 worth of VAT remained outstanding as at 30th June 2020. +4. Ministry of Science and  The Ministry of Science Technology and Innovation was merged with the + + + + +287 + + + + + + + + + + + + Technology and Innovation. 2020/21OpinionUnqualified President’s Office effective July 2021. I however did not obtain evidence of a proper transition plan which has led to delayed disbursement of funding for subventions and independent projects. The merger further rendered 136 technical scientist staff redundant and were not paid emoluments by the end of November, 2021. I advised management to ensure that a smooth transition process is undertaken. Out of the total budget for the financial year of UGX.150Bn, only UGX.144.6Bn was received by the Ministry resulting into a shortfall of UGX.5.737Bn (equivalent to 3.5% of the budget). Shortfalls in revenue result into non implementation of planned activities. Out of 20 quantified activities worth UGX.105.9Bn that were assessed; 13 activities representing 65% were fully implemented, 5 activities representing 25% were partially implemented, while 2 activities representing 10% were not implemented. I advised management to roll over critical activities to subsequent years and ensure that they are implemented before the end of the National Development Plan III. I noted that funds to the tune of UGX.834Mn were irregularly diverted from the activities on which they were budgeted and spent on other activities without seeking and obtaining the necessary approvals. I advised management to always ensure that proper authorization is obtained before implementing any unbudgeted activities. Most of the research projects that had received funds for COVID-19 Vaccines and Treatments had not made much progress. Delays were majorly attributed to the late disbursement of funds and delayed delivery of Equipment. I advised management to ensure thorough due diligence before funds are allocated to the projects. +5 Kiira Motors Corporation. 2020/21Opinion Unqualified  Cabinet approved the roadmap for the commercialisation of the Kiira Electric vehicle project with a seed fund of UGX.143.7Bn to be availed over a period of 4 years effective 2018/19. Only 59% of the seed fund had been released in the previous three financial years, casting doubt as to whether the balance of UGX.58.4Bn (41%) would be released in the remaining one year. Failure to promptly fund the project, may lead to high-cost overruns and delays in realising the intended objectives. In addition, it may cast doubts on its sustainability. KMC signed a Memorandum of Understanding (MOU) with National Enterprise Corporation (NEC) on the 15th January 2019 for the construction of the Kiira Vehicle Plant start-up facilities at the cost of UGX.63.64Bn. I noted that of the civil works that were to be completed by June 2021 (a period of 2 years and six (6) months), only 82% of those works had been completed due to insufficient funding. Underfunding has affected the progress of the plant construction which further delays the realisation of the intended objectives. Ministry of Science, Technology and Innovation (represented by Kiira Motors Corporation) and Makerere University were collaborating in the Development of a Low-Cost Open Design Medical Ventilator named Bulamu, that could be manufactured locally. Although UGX.74Mn was received from Resilient Africa Network Ran Ltd towards the completion of the development of the Ventilator, the development was behind schedule. The delays may affect the realisation of intended objectives. I noted that Makerere University received UGX.8.92Bn for the Kiira Motors Project between FY2012/13 and FY2015/16 for the construction of the Kiira Vehicle Plant Start-Up facilities in Jinja. However, the university had not released these funds for over eight years. I advised management + + + + +288 + + + + + + + + + + + + to follow up on the matter with all responsible stakeholders. +6 Uganda National Council for Science and Technology. 2020/21Opinion Unqualified  I noted that out of the budgeted revenue of UGX.20.53Bn for 2020/21; UGX.24.59Bn was collected, representing a performance of 120% of the target. Out of the 41 outputs assessed, 34 outputs representing 83% were fully implemented; four (4) outputs representing 10% were partially implemented, while three (3), representing 7%, were not implemented. I noted that there was no evidence that the Accounting Officer prepared or submitted the annual budget performance reports of the Council by 31st July 2021 as required by regulations. I noted that the entity did not prepare and submit the annual monitoring plans to the line Ministry for consolidation and onward transmission to the Ministry of Finance Economic and Economic Planning. I established that UGX.94Mn was directly paid to staff’s personal bank accounts, yet this money could have been directly paid to the intended final recipients. Out of the 85 planned activities assessed, 69 outputs/activities representing 81% were fully implemented; 9 outputs/activities representing 11% were partially implemented, while seven (7) outputs/activities representing 8% were not implemented at all. I noted that the Council did not produce the annual report as required by the UNCST Act. A review of the procurement file for the Supply of ICT Equipment under EDCTP-SCRECU Project revealed no evidence of any public bid opening session, which creates doubts as to whether the bidders attended the bid opening session. Audit noted that the Council had outstanding Pay As You Earn (PAYE) payments relating to July 2019 and June 2020 amounting to UGX.45,457,013 as of 30th June 2021, which had not been remitted to Uganda Revenue Authority +7 Uganda Industrial Research Institute (UIRI). 2020/21OpinionUnqualified  I noted that 3.2 million masks were tested, treated and packaged, but the contract for the distribution of the reusable face masks was terminated after only 1.5 million masks had been consumed. The stock of over 1.7 million face masks has remained unutilised at the time of reporting. Government is likely to incur nugatory expenditure of almost UGX.4.08Bn in the event no market is obtained for the masks. I noted that a number of machinery at the UIRI Namanve campus had been procured ahead of the proposed contract on mask production in the textile section. I noted that some equipment has remained unused/idle or has not been put to use due to lack of technical support from the supplier to operationalize the equipment. Management attributed the failure to the restrictions on international travel for the supplier’s technical staff to come. The absence of a Board Chairperson has resulted in the failure of the Board to be constituted to meet and handle its mandate as provided for under Section 7 of the UIRI Act 2003. There is no evidence that the Board has ever met. There is a risk that the entity will lose strategic focus, since there is no supervisory oversight over its operations. I observed that the Institute signed MoUs with the different incubatees in which funds have been spent to support the projects. However, the Institute has not signed any binding contracts with the participants, which + + + + +289 + + + + + + + + + + + + makes dispute resolution difficult in case it arises. In addition, I noted that 50 of the 95 incubatees reviewed had expired MoUs at the time of reporting, while others were not paying NTR to the Institute as per agreement. It was observed that UIRI paid a total of UGX.1.286Bn in gratuity, for which PAYE was wrongly computed, resulting into an overpayment of UGX.100,778,201 to staff. The staff over payments can lead to financial loss to government, in the event the Institute is unable to recover from the concerned staff. + GENDER AND SOCIAL DEVELOPMENT SECTOR  +1 Equal Opportunities Commission. 2020/21OpinionUnqualified  Out of the approved budget of UGX.12,071,754,441, a sum of UGX.12,016,602,345 was realized resulting into a shortfall of UGX. 55,152,096.00, representing 0.46%. Out of the warrants of UGX.12,016,602,345, a sum of UGX.11,874,386,080 was spent indicating an absorption rate of 98.8 %. In addition, the Commission received off-budget financing to a tune of UGX.3.723 Bn which was not transferred to the consolidated fund. I sampled 9 outputs with 95 activities worth UGX.10,990,686,400, representing 91% of the total budget, and noted that 1 output (11%) with 04 activities and expenditure worth UGX. 1.05Bn were fully quantified. In addition, Four (4) outputs with twenty-five 25) activities worth UGX.9.47 Bn were partially implemented. Out of the twenty-five (25) activities, the entity fully implemented sixteen (16) activities, two (2) activities were partially implemented, while seven (7) activities remained unimplemented. I noted long outstanding receivables of UGX.211,105,359 from interdicted staff, and management has not yet instituted recovery measures due to the ongoing court cases. I noted that funds to the tune of UGX.63,568,761 were irregularly re- allocated from the activities on which they were budgeted and spent on other activities without seeking and obtaining the necessary approvals. I noted that 244 accumulated cases from 2017/18 are still pending as at 30th June 2021. Over the last three years 48% of the registered cases have remained un-concluded during the year of registration. In addition, the legal department that handles petitions is at a 50% staffing level. I noted that the Commission has 81 approved staff positions, but only 50 (62%) positions were filled leaving 31 (31%) posts vacant. I noted that the land and building on plot 7c, Luthuli close, Bugolobi where the EOC offices are located was transferred to the Commission by the Ministry of Gender, labour and Social Development. However, there was no trace of the original title, and there was no documentary evidence of handover of the title to EOC management. I noted that the report on gender and equity compliance of the budget framework papers was produced in December 2020, eleven (11) months later than the Parliamentary submission of the required certification and responsive measures of February 2020, contrary to the PFMA. I noted that the Commission lacked an independent Audit Committee, however, the functions of the Committee were being undertaken by the Commissioners who are part of the Commission management, thus posing serious challenges of conflict of interest. + + + + +290 + + + + + + + + + + + +2 Ministry of Gender, Labour and Social Development (MoGLSD) 2020/21 + +Opinion + +Unqualified + +- Out of the approved budget of UGX. 153.01Bn, a sum of UGX.148.47Bn was warranted resulting into a shortfall of UGX.4.54Bn, representing 2.97% of the budget. + + + +- Out UGX.148.47Bn warranted, a sum of UGX.147.63Bn was spent indicating an absorption rate of 99.4%. + + + + + +- The Ministry received off-budget financing of UGX.11.598 Bn that was not appropriated by Parliament. + + + +- I sampled fifteen (15) outputs with a total of thirty (30) activities and expenditure worth UGX.105.44Bn, representing 87.76% of the total budget, and noted that 9 outputs (36%) with 11 activities worth UGX.79.33Bn were not quantified at all. In addition, out of the 16 quantified outputs with 20 activities assessed, 12 outputs (75%) were achieved, 15 activities (75%) were fully achieved/implemented, while 4 out puts with 5 activities representing 25% were partially achieved/implemented. + + + +- The Ministry had payables of UGX 37,394,048,164. Of these, a sum of UGX 36,075,485,050 (96.5%) related to funds not remitted to older persons under the Social Assistance Grant and Empowerment Programme (SAGE). + + + +- The Ministry made a cumulative total disbursement of UGX.113.22Bn to the Youth Livelihood Programme (YLP) by 30th June 2021 to 13,095 Youth groups. However, out of the expected recoverable funds of UGX.78.10Bn, only UGX.40.14Bn was recovered, leaving an outstanding amount of UGX.37.96Bn. + +- The Ministry recovered UGX.40.14Bn YLP funds from Local Governments, but only UGX.37.59Bn was transferred to the recovery account in BOU, leaving a balance of UGX.2.54Bn. + + + +- I noted that out of the total UGX. 37.59Bn received on the YLP revolving fund account in Bank of Uganda, only UGX.19.93Bn (53%) was revolved to other Youth Interest Groups, leaving a balance of UGX.17.65Bn (47%) not revolved. + + + +- Out of the budgeted UGX.188Bn for the Women Entrepreneur Programme (UWEP) for the period of five years since financial year 2015/16, only 135Bn (72%) had been released over the same period leading to a programme budget shortfall of UGX.53Bn (28%). + + + + + +- Out of UGX.27.61Bn due for recovery under UWEP by 30th June, 2021, a sum of UGX.20.19Bn was recovered leaving a balance of UGX.7.42Bn, thus indicating a recovery rate of 73%. + + + +- A sum of UGX.2.64Bn recovered under the UWEP could not be tagged to specific Local Governments and individual women groups. + + + +- The Labour advisory (LAB) Board did not function in the financial year under review to deliberate on matters affecting workers. This meant that no advisory services were extended to Government on matters of employment and industrial relations. + + + +- The Medical Arbitration Board (MAB) met only in one quarter during the entire financial year (February 2021) despite having over 150 pending cases awaiting arbitration as at 30th June 2021. I further noted that some cases have been pending for over 9 years. + + + +- I noted that Uganda has only three signed bilateral agreements in protection of migrant workers with Saudi Arabia, the Hashemite Kingdom of Jordan and the United Arab Emirates. Agreements with other + +291 + + + + + + + + + + + + destination countries such sa; Kuwaiti; Qatar; Bahrain; Afghanistan; Iraq; Somalia; Turkey and Oman are still under process. +3 National Council for People with Disabilities 2020/21OpinionUnqualified  Out of the approved budget of UGX.1,236,047,430 expected through the MOGLSD a sum of UGX.921,555,246 was realized resulting into a shortfall of UGX. 314,492,184, which is 75% of the budget. The shortfall has since led to 43% increase in payables relating to mainly unpaid gratuities to staff, totalling UGX 539,360,000 at year end. Out of the total funds available of UGX.922,507,816 a sum of UGX.896,409,230 was spent indicating an absorption level of 97.3 %. The unspent balance of UGX. 26,098,586 related to the production of the disability status report activities that were not undertaken. I sampled eleven (11) outputs with thirteen (13) activities worth UGX. 877,320,000, representing 71% of the total budget, and noted that 10 outputs (91%) with eleven (11) activities and expenditure worth UGX. 0.5899Bn were fully quantified. In addition, One (1) output with two (2) activities worth UGX.0.1221Bn was insufficiently quantified. Out of the ten (10) fully quantified outputs, three (3) outputs with three (3) activities worth UGX 0.0135Bn were fully implemented; six (6) outputs with seven (7) activities worth UGX 0.558Bnwere partially implemented and one (1) output with two (2) activities worth UGX 0.0184 were not implemented. The disability status report was not developed. To-date, council has not fully taken over the property of the Uganda Foundation for the blind, as such land located at Kireka and Mayuge has since been encroached upon by unknown persons. Council is at risk of losing these and other properties due to delays in taking possession and title. +4 National Council for Older Persons (NCOP) 2020/21OpinionUnqualified  Out of the budgeted revenue of UGX. 726,000,000 for the financial year 2020/2021, UGX. 726,606,000 was received representing over 100% availability of funds for expenditure. This resulted in excess revenue of UGX. 606,000. Out of the released funds amounting to UGX. 726,606,000 and unbudgeted Non-Tax revenue of UGX 1,198,590, only UGX.709,472,400 was spent by the entity resulting into an unspent balance of UGX. 18,332,190, representing absorption level of 97.5%. +5 Uganda National Cultural Centre 2020/21OpinionUnqualified  Out of the approved budget of UGX 15,407,572,000 a sum of UGX 13,245,324,701 was realized, resulting into a shortfall of UGX 2,162,247,299 representing 14% of the total budget. Out of the total receipts of UGX 13,245,324,701, only UGX 10,700,171020 was spent by the entity resulting in an unspent balance of UGX. 2,545,147,681 representing absorption level of 81%. For over four years, UGX 652,414,611 is still owed to a private company and this may result into litigation. Following parliament’s pronouncement to collect UGX 1.6 Bn from a private company for the use of Nommo Gallery, Recovery measures have remained futile. UNCC has since stopped charging rent from the company. + + + + +292 + + + + + + + + + + + +  Covid-19 stimulus funds amounting to UGX 6.8 Bn were paid in two batches to music/Arts promoters, without clearly documented criteria. +6 The National Children Authority (NCA) 2020/21OpinionUnqualified  Out of the approved budget of UGX. 901,908,000 a sum of UGX. 826,112,357 was realized resulting into a shortfall of 104,143,334, representing 8.7%. Out of the subvention receipts of UGX. 797,764,666 and non-tax revenue of UGX 28,347,691, a sum of UGX. 825,311,734 was spent indicating an absorption rate of 99.9%. The Authority has no governing board and this has led to absence of policy and operational guidelines, and irregular short term employment contracts. The report on the state of children under the lock down period revealed limited access of reading materials provided, increase in physical abuse, teenage pregnancies and in some instances death. This was due to inadequacies in law enforcement, capacity and resource constraints for extension works at district level and lack of community awareness on the child rights legal framework. +7 National Library of Uganda 2020/21OpinionUnqualified  Out of the approved budget of UGX.1,228,432,118 expected, a sum of UG.1,076,772,693 was realized resulting into a shortfall of UGX. 151,659,425, which is 87.6% of the budget. The shortfall has since led to increased rental and gratuity arrears. Out of the total funds available of UGX. 1,076,772,693 a sum of UGX.1,041,279,372 was spent indicating an absorption level of 96.7%. The unspent balance of UGX. 35,493,321 was meant for the clearance costs of the periodical book donations from Book Aid International I sampled eleven (11) outputs with a total of twelve (12) activities worth UGX.852,906,000, representing 69.4% of the total budget, and noted that Ten (10) outputs with a total of eleven (11) activities and expenditure worth UGX.0.801Bn were fully quantified. In addition, One (01) output with One (01) activity and expenditure worth UGX.0.012 Bn was not quantified. Out of the ten (10) fully quantified outputs, One (1) output with one (1) activity and expenditure worth UGX 0.010Bn was fully implemented. Six (06) outputs with seven (7) activities worth UGX.0.775Bn were partially implemented. Three (3) outputs with two (3) activities worth UGX.0.028Bn were not implemented. Review of the entity strategic plan 2016-2021 and production of a new one, and Sensitization of publishers on ISBN requirements were some of the activities not undertaken. NLU has outstanding rental obligations of up to UGX.145,351,824 which only attract litigation. 2 Acres of land initially allocated to the NLU has been re-allocated without compensation. +8 National Women’s Council 2020/21Opinion Unqualified  Out of the approved budget of UGX. UGX.3,589,554,501, a sum of UGX.3,644,076,229 was realized resulting into a shortfall of UGX.31,238,272, representing 99% performance. Out of the total released funds for the financial year of UGX.3,644,076,229, only UGX.3,597,158,934 was spent by the entity resulting into an unspent balance of UGX.46,917,295 representing an absorption level of 99%. I noted that NWC did not link its budget to the strategic plan with activities worth UGX.1,686,300,000 that were specified in the entity + + + + +293 + + + + + + + + + + + + strategic plan for implementation during the fourth year (20/21) of the plan not being included in the budget for FY 2020-2021. NWC strategic plan is not aligned to that of the MoGLSD and hence not aligned to the NDP III. All nineteen (19) outputs with thirty-five (35) activities and expenditure of UGX.3,597,158,934 were not quantified to enable assessment extent of output and activity implementation. No risk assessments or review of internal controls were undertaken on the council’s operational processes during the year. +9 National Youth Council 2020/21Opinion Unqualified  The entity budgeted to receive UGX.3.075Bn out of which UGX.2080Bn was received, resulting in a shortfall of UGX.0.995 Bn which is 32% of the budget. I also noted that out of the total receipts for the financial year of UGX 2.080 Bn, UGX 2.079 Bn was spent by the entity representing absorption level of 100%. I noted that Eight (08) outputs with a total of Seventeen (17) activities and expenditure worth UGX.0.901 Bn were fully quantified. Fourteen (14) outputs with a total of Seventeen (17) activities and expenditure worth UGX 1.079 Bn were not quantified at all. Two (02) output with six (6) activities and expenditure worth UGX 0.230 Bn were fully implemented. UGX.0.435 Bn were partially implemented. while two (2) outputs with six (6) activities worth UGX.0.236Bn were not implemented. The Accounting Officer stated that some of these activities were frustrated by the COVID-19 rules against public gatherings and meetings. It was noted that Council did not have a risk management policy to ensure identification of perceived or actual threats it faces in its operations. In addition, there was no internal assessment or review of the internal controls done on the entity processes during the year. +10 National Social Security Fund 2020/21Opinion Unqualified  No significant matters to report on.  +11 UNFPA Funded Programme Ref; UGA08CMH/HIV/GBV/UFP/A YP/FGM implemented by the Ministry of Education and Sports, 2020Opinion Unqualified  No significant matters to report on. +12 UNFPA Funded Programme Ref: UGA08CMH/HIV/GBV/UFP/A YP/FGM implemented by The Ministry of Health, 2020Opinion Unqualified  No significant matters to report on. + + + + +294 + + + + + + + + + + + + +13 UNFPA Funded Programme Ref; Uga08cmh/Hiv/Gbv/Ufp/Ayp /Fgm Implemented by The Ministry of Justice and Constitutional Affairs 2020Opinion Unqualified  No significant matters to report on.  +14 UNFPA Country Programme Component of Data and Populationdynamics Implemented by Ministry of Gender, Labour & Social Development (Mglsd) 2020Opinion Unqualified  No significant matters to report on. +15 Unfpa Funded Programmeme Component of Data and Population Dynamics Implemented by National Planning Authority (Npa) 2020Opinion Unqualified  No significant matters to report on. +16 Unfpa Funded Programme Component of Data and Population Dynamics Implemented by National Population Council (Npc) 2020Opinion Unqualified  No significant matters to report on. +17 Unfpa Funded Programme Component of Data and Population Dynamics Implemented by Uganda Bureau of Statistics 2020Opinion Unqualified  No significant matters to report on. + HEALTH SECTOR +1. Centre for Disease Control and Prevention (CDC)Opinion Unqualified  I noted a variance of US$.241,921 between the expenditure recorded in the accounting system and the expenditure reported in the quarterly financial reports for the year ended 30th September 2020. The expenditure reported per quarterly reports totaled US$.3,177,866 as opposed to the audited total expenditure of US$.2,935,945. A review of budget performance i.e., the budget for the Cooperative + + + + +295 + + + + + + + + + + + + Agreement Grant/ Notice of Award vs actual expenditures showed that management of CDC – UPS had executed most of the budgeted activities for the year ended 30th September 2020. The overall budget performance was 97%. I further noted instances of budget over runs to a tune of US$.198,986 on three budget lines, a practise not permitted under the Cooperative Agreement. From the tests conducted on a sample of non-payroll disbursements (i.e. supplies contract costs, Fringe Benefits, travel and other direct costs), I noted that cost totalling to US $ 54,135 were inadequately supported. I noted that monthly financial returns are supposed to be submitted by the 15th day of the subsequent month, but this was not complied +2 Centre for Disease Control Project (PEPFAR Grant No: 6NU2GGH002221-01-01) 30 th September 2020Opinion Unqualified  I noted that there was low absorption of project funds. I noted that out of the total receipts; only USD 1,864,527 (UGX. 6,884,001,756) was utilized leaving a balance of USD. 868,756 (UGX. 3,207,525,075); representing an absorption level of 68.2%. I observed that the Project Chart of Accounts was not aligned with the IFMS Accounting codes. I noted significant delays in the approval and payment for most activities whereby the average lead time for processing a payment was over three (3) months +3. The Italian Support to the Ugandan Health Sector Strategic Plan III (HSSP III) and the Peace, Recovery and Development Plan (PRDP) for Northern Uganda - Karamoja Region Staff Housing Project (KRSHP) – Ministry of Health Project. 2019/20Opinion Unqualified  The entire budgeted revenue of UGX.10,543,205,000 in respect of external financing by the Government of the Italian Republic was not received during the year. As a result, no planned activity was implemented. The project had a total of EUR.1,442,629.81 available for spending during the year represented by the opening balance. However, the entire amount remained un-absorbed by the close of the year. The Project had UGX.120,000,000 for spending under Counterpart funding during the year which was all spent. However, out of the amount, UGX.100,000,000 was spent on non-project activities. +4. The Rehabilitation and Expansion of Kayunga and Yumbe Hospitals Project (KAYUP) -BADEA No. 0761, OFID No. 1628P and SFD No. 6/620 - Ministry of Health Project. 2019/20  The project experienced significant revenue shortfalls. Out of the expected receipts of USD 19,064,124.79, the project received funding totalling USD.8,252,401.61 constituting USD. 6,240,515.26 from external sources and USD.2,011,886.35 (UGX. 7,505,000,000) from GoU counterpart contribution. This translated into a budget shortfall of USD 10,811,723.18 (representing 56.71% of the approved budget). There were delays in Project implementation. The project became effective on 16th April 2015 and was initially expected to be completed on 28th February 2020 which was later extended to 31st December 2021. However, the cumulative project progress was at 99.5% as at 30th June 2020. Major delays were identified in the procurement and installation of Medical equipment, Ambulances, mini-buses and Pick-ups. +5. Uganda National Health Research Organization (UNHRO).  UNHRO did not have an approved strategic plan for the period 2015/16 - 2019/20. The organization implemented a draft strategic plan for five years 2015/2016-2019/2020. I observed that the entity did not fully + + + + +296 + + + + + + + + + + + + 2019/20Opinion Unqualified achieve any of the 6 strategic objectives in its expired draft strategic plan it has been implementing for the last five years. I noted that the Organization did not have a governing Board during the year under review, after the term of office for all former members of the Board expired in 2016. The Sessional Parliamentary Committee on Social services recommended the granting of a vote status to the Organization. This was followed by issuance of statutory instruments and the gazetting and commencement of the Uganda National Health Research Organisation Act, 2011 on the 22nd day of January 2016. However, it was noted that the Organization had not been granted a vote status by the time of audit. No regulations were put in place to operationalize the UNHRO Act 2011. There were no regulations to guide UNHRO staff and stakeholders on matters such as regulation of the operations of the constituent research institutions, human resources, finance and administration, the general operations of the Organization. The employment contract on file for the Director General expired in April 2018 and had not been renewed by the time of audit. Only 12 out of the approved 26 positions in the Organizational Structure had been filled resulting into a staffing gap of 14 positions. UNHRO had an annual work plan of UGX 2,080,000,000 for the financial year 2019/2020. However, I noted that the Organization was financed by a subvention of only UGX 240,000,000, through the Ministry of Health thereby resulting into a funding gap of UGX. 1,840,000,000. A review of the Organization’s Scheme of service and staff contracts revealed that most of the institution staff were only paid their Basic salary leaving out the other packages that form part of their consolidated pay such as housing, transport and medical allowances. +6. Uganda Nurses and Midwives Council (UNMC). 2019/20Opinion Qualified  The Council made payments worth UGX 1,465,751,440 in the year ended 30th June 2019 which did not have supporting documents such as invoices, payment request forms and payment vouchers. I noted that no action had been taken by Management to account for the funds in the year ended 30th June 2020. Management reported a financial loss of UGX.444,400,000 during the year. The amount was transferred from UNMC’s Stanbic Bank Account No. 9030005852950 to M/S RAM Engineering (U) Ltd under fraudulent circumstances. Council failed to collect budgeted revenue amounting to UGX 557,669,951 during the year. Council had a total of UGX. 7.77bn available for implementation of planned activities. The total receipts for the financial year under review were UGX 2.71 bn. However, only UGX 1.84bn was absorbed (representing 23.7%) leaving a balance of UGX. 5.93bn. I observed that the Council partially implemented six (6) of its planned outputs with a total of Nineteen (19) activities worth UGX 268.41M. I also observed that seven (7) outputs with a total of twenty (20) activities were not implemented at all. The entity did not prepare and submit the annual monitoring plans to MoFPED and NPA as required. Further, the entity did not prepare and submit quarterly monitoring reports to the MoFPED as required. A review of the Organization’s Annual cumulative performance report and + + + + +297 + + + + + + + + + + + + the entity work plan revealed cases where the reported set targets were not consistent with the set targets in the entity work plans. I observed conflicting in the Council governing laws. Section 51(2) of the Public Finance Management Act, 2015 requires the Accounting Officer of a public corporation, within two months after the end of each financial year, to prepare and submit to the Accountant-General, a summary statement of financial performance of the public corporation and give a copy of the summary statement to the Secretary to the Treasury. On the contrary, Section 18 (1) Part IV of the Nurses and Midwives Act, 1996 requires the Council to keep proper books of accounts and prepare the annual financial statements of accounts for the immediately preceding financial year not later than three months in the following year. Conflict in the governing laws hampers effective execution of UNMC mandate. Section 4 of the UNMC Act 1996, requires each Council member to be a seconded representative of a particular institution or body and must be appointed by the Minister. However, a review of Council Members records revealed that out of the seventeen (17) members, none of them were seconded representatives of their respective bodies. Good Corporate Governance practices require separation of duties of board members to ensure their independence in the discharge of duties. On the contrary, a review of the composition of the Audit Committee revealed that Chairperson of the full council is also a member of the committee. I noted that the Council had not been managed by a substantive Registrar since 2017. The current Registrar’s initial appointment ran from November 2018 to March 2019. However, management did not provide a valid appointment letter to confirm her appointment after March 2019. A review of the Governing council minute ref FC/08/14/06/2020 revealed that council members were concerned about the significant delays in issuing of Practicing Certificates that hindered the recruitment of nurses in the industry. Furthermore, Management did not avail status reports on certificates that were produced. Payment files and PPDA monthly reports revealed that supplies and service worth UGX 46,183,800 were procured and paid without going through the procurement process given that there were no LPOs or procurement documents availed to confirm that the supplier went through the procurement process. UNMC has three (3) operational vehicles. However, a detailed review of the fleet management revealed that there were no log books maintained to track the vehicle movements as required by the regulations. Further, there were no records being maintained to keep track of vehicle history, performance, servicing, overheads, repairs and maintenance. +7. Uganda Sanitation Fund (USF) – Ministry of Health Project. 2019/20Opinion Unqualified  A review of the annual work plan and the performance reports for the Uganda Sanitation Fund revealed that there were inconsistencies in planned targets and those reported upon. Furthermore, the planned targets/outputs in the work plan lacked sufficient detail (description of outputs) to facilitate a meaningful comparison with the targets in the performance reports. I observed that the Project did not implement twenty-seven (27) planned outputs with a total budget of UGX 1.506Bn, and Five (5) outputs with a total budget of UGX 0.476bn could not be verified in regard to implementation due to unclear targets. There were delays in disbursement of funds to sub grantees. A review of + + + + +298 + + + + + + + + + + + + the quarterly district performance work plans and reports submitted to the Ministry, revealed that, the quarterly release of funds from MOFPED was not done on time. As a result, Quarter 1 funds were disbursed in quarter 2, quarter 2 funds were disbursed in quarter 3, and quarter 3 funds disbursed in quarter 4. Since the project’s inception, only a total of UGX.1.3bn (USD 386,259) out of the agreed GOU counterpart funding commitment of USD 2,000,000 had been disbursed to the districts resulting into a funding shortfall of USD 1,613,741. The program’s average national progress on Open Defecation Free (ODF) target stood at 60.9% yet the project is in its last year of implementation. An Assessment of the 9-year targets (July 2011 to June 2020) revealed that out of the targeted 11,354 villages, only 9,632 achieved ODF targets, representing 84.8%; a total of 140 of the 400 targeted parishes representing 35% achieved ODF; and only 27 of the targeted 360 sub counties achieved the ODF target representing 7.5% achieved ODF status. +8 Allied Health Professionals Council. 2019/20Opinion Unqualified  The Governing Council stated that a material uncertainty existed regarding the continued operation of Allied Health Professionals Council in the foreseeable future. Management’s judgement was informed by a letter from the PS - Ministry of Public Service to all Accounting Officers in which guidance was provided on the modalities for management of Public Institutions during the implementation of recommendations on the rationalization of Agencies and Public Expenditure. I noted that out of the ten (10) sampled outputs with a total of ten (10) activities and expenditure of UGX. 3.127bn, only five (5) outputs with five (5) activities and expenditure worth UGX 3.017Bn were fully quantified. The balance of five (5) outputs with five (5) activities and expenditure worth UGX.011Bn were insufficiently quantified which made it difficult to assess extent of their delivery. I observed that out of the five (5) outputs that were fully quantified, three (3) outputs with three (3) activities worth UGX. 1.918Bn were fully implemented. However, the remaining two (2) outputs with two (2) activities worth UGX.1.099Bn were partially implemented. The Council fleet of six (6) sampled vehicles was not annually inspected during the three (3) year period under review to assess their mechanical condition and road worthiness. Whereas the Council designated a Transport Officer responsible for transport matters, fuel registers were not maintained for all the six (6) motor vehicles sampled out of nine (9) vehicles held by the Council. I noted that nine (9) out of the ten (10) Regional Offices were not allocated vehicles to facilitate their operations. +9 Joint Clinical Research Centre. 2019/20Opinion Unqualified  The entity budgeted to receive UGX 20,906,339,925 from development partners out of which UGX 19,707,530,000 was received resulting in a shortfall of UGX 1,198,809,925. In addition, out of budgeted local revenue of UGX 4,366,651,934, only UGX 2,693,800,000 was generated resulting into a shortfall of UGX 1,672,851,934. I noted that all the seven (7) sampled outputs with a total of one hundred fifty-five (155) activities worth UGX 18.304Bn were partially implemented. Out of the one hundred fifty-five (155) activities, the entity fully implemented ninety-three (93) activities (60%), eighteen (18) + + + + +299 + + + + + + + + + + + + activities (12%) were partially implemented while forty-four (44) activities (28%), were not implemented by the time of audit. I reviewed the balance of ‘payables falling within one year’ reported in the Statement of Financial Position and Note 21 and noted an increase of UGX 121,010,000 from UGX 1,138,910,000 (30th June 2019) to UGX 1,259,920,000 (30th June 2020). I further reviewed the ageing of the payables and noted that included in the outstanding balance of UGX 1,259,920,000 are payables worth UGX 357,139,495 that had remained outstanding for over 90 days. Seventeen (17) running motor vehicles which were fully depreciated according to the JCRC Fleet Management Policy and had zero net book value in the schedule of fixed assets were still in use. The entity did not revalue or make annual reviews of its expectations with regard to the residual values and useful lives of the vehicles in question resulting into under valuation/understatement of non-current assets in use in the statement of financial position. The Principal Private Secretary to His Excellency the President’s letter ref: PO/1 dated 12th February 2019 directed the Hon. Minister of Finance, Planning & Economic Development to increase Government funding to the Centre from UGX.240 million to UGX.5 billion annually in the subsequent years, that is, with effect from the Financial Year 2019/20. According to the various communications by the Centre’s Executive Director, the increment in funding was necessitated by the declining donor support. However, the no-objection for the implementation of the directive was only granted to the PS/ST by the PS MOH through letter ref: 45/415/01 dated 4th February 2020. This was when the financial year 2019/20 budget was in the third quarter of implementation. Contrary to the PPDA requirements, the entity delayed to submit ten (10) out of twelve (12) monthly procurement and disposal reports to the Authority for the financial year under review. The Centre had a procurement plan worth for the year under review. I noted that out of the planned procurements worth UGX 6,956,028,077, procurements worth UGX 5,434,128,077 (78%) were implemented while those worth UGX 1,521,900,000 (22%) were not conducted. +10 Uganda Medical and Dental Practitioners Council. 2019/20Opinion Unqualified  The Governing Council stated that a material uncertainty existed regarding the continued operation of Allied Health Professionals Council in the foreseeable future. Management’s judgement was informed by a letter from the PS - Ministry of Public Service to all Accounting Officers in which guidance was provided on the modalities for management of Public Institutions during the implementation of recommendations on the rationalization of Agencies and Public Expenditure. I noted that out of the budgeted Non-Tax revenue UGX.2,891,430,000, only UGX.1,650,811,279 was realized during the year under review (representing 57% performance). This hampered effective service delivery. Contrary to the statutory deadline of 31st day of March for the publication all up-to-date registers in the gazette, registers for 2020 had not been published in the gazette by the time of audit in November 2020. +11 The Rehabilitation and Expansion of Kayunga and  The project experienced significant revenue shortfalls. Out of the expected receipts of USD 19,064,124.79, the project received funding + + + + +300 + + + + + + + + + + + + Yumbe Hospitals Project (KAYUP) -BADEA No. 0761, OFID No. 1628P and SFD No. 6/620 – Ministry of Health Project. 2019/20Opinion Unqualified totalling USD.8,252,401.61 constituting USD. 6,240,515.26 from external sources and USD.2,011,886.35 (UGX. 7,505,000,000) from GoU counterpart contribution. This translated into a budget shortfall of USD 10,811,723.18 (representing 56.71% of the approved budget). There were delays in Project implementation. The project became effective on 16th April 2015 and was initially expected to be completed on 28th February 2020 which was later extended to 31st December 2021. However, the cumulative project progress was at 99.5% as at 30th June 2020. Major delays were identified in the procurement and installation of Medical equipment, Ambulances, mini-buses and Pick-ups. +12 Uganda-Spain Debt Swap Project. 2019/20Opinion Unqualified  I noted that out of the two (2) planned project outputs for the year, one (1) output was fully implemented while one (1) output was partially implemented. Management attributed the level of performance to delayed commencement of the preparation of the detailed designs for the refurbishment and equipping of Busolwe General Hospital which involved approval of extra charges for the consultant to revise the site survey report. According to management, the COVID-19 pandemic further affected the operations of the Consultant. During the year under review, the Project received a sum of UGX 15.69Bn of which UGX.10.63Bn was spent resulting in an unspent balance of UGX.5.06Bn (representing an absorption level of 67.8%). +13 Uganda Reproductive Health Voucher Project (URHVP) GPOBA Grant Number TF015995. 2019/20Opinion Unqualified  A review of the project financial statements as at 30th June 2020 (Note 2 & Annex 6.0) together with underlying financial records revealed that the project had bank balances of USD 49.85 and UGX.792 in Bank of Uganda at the time of closure. However, Management did not avail documentary proof of closure of these Accounts at the end of the project when sought. A review of the agent records revealed that by end of project closure, various assets acquired under the project had not been handed over to the client as per the agreement. +14 Butabika National Mental Referral Hospital.Opinion Unqualified  The entity budgeted to collect NTR of UGX 1.24bn during the year under review. However, the hospital collected UGX. 1.15bn thereby resulting into a shortfall of UGX 0.09bn. The Hospital received the entire revised annual budget of UGX 17.023bn out of which UGX 16.551bn was spent resulting in unutilized funds of UGX 0.472bn. The unspent balance at the end of the financial year was subsequently swept back to the consolidated fund account. I noted that the entity submitted all the quarterly performance reports after the prescribed deadline. The Accounting Officer explained that due to COVID-19 restrictions, the support offices were operating at 10% which led to delays in preparation and submission of the quarterly performance reports. According to the patient admission schedule and the strategic plan, the Hospital currently handles between 750 and 780 in-patients per month compared to its bed capacity of 550 patients. This implies that 200 to 230 admitted patients either share beds or sleep on the floor. I noted that UGX.93,717,182 was utilized for repairs and service for vehicles during the year under review. However, there were no repair and service analysis registers for the 13 vehicles that were maintained. Furthermore, it was observed that the Hospital Transport Officer did not maintain service charts for all the 13 vehicles. +15 Kawempe National Referral  The entity budgeted to collect NTR of UGX. 449m during the year under + + + + +301 + + + + + + + + + + + + Hospital.Opinion Unqualified review, and UGX. 451m was realized, representing a performance of 100.4% of the target. Out of the total receipts for the financial year of UGX 11.723 bn, UGX. 11.385Bn was spent by the entity resulting in an unspent balance of UGX.0.337Bn (representing an absorption level of 97.1%). The unspent balance at the end of the financial year was subsequently swept back to the consolidated fund account. I noted that all the eight (8) outputs selected for budget performance assessment with a total of eleven (11) activities and actual expenditure of UGX 4.6bn were fully quantified. This therefore enabled me to assess the Hospital’s performance during the year under review. Out of the eight (8) sampled outputs, two (2) outputs were fully implemented while six (6) were partially implemented. I further noted that out of the planned eleven (11) activities under the sampled outputs, two (2) activities were fully achieved while nine (9) were partially achieved. A total of UGX 36,870,179 worth of expenditure was charged on other than the budget lines on which the funds were appropriated without seeking the necessary approval from the relevant authorities. I noted that the Hospital submitted all the quarterly performance reports beyond the prescribed deadlines. From my review of the annual performance reports and physical inspections/verification of outputs reported, I did not observe inconsistencies in the reported performance. I noted that the Hospital accumulated payables/domestic arrears to tune of UGX. 799,186,746 up from UGX. 365,151,250 as at 30th June 2020. I noted that whereas the Board of Survey Report for the year ended 30th June 2021 established that the Hospital had a closing inventory of various items; this state of affairs was not disclosed as part of the Financial Statements under Annex (ii)-Schedule of Inventory, thereby rendering the financial statements incomplete. It was noted that the Hospital stored expired medicines without disposing them as required by the law. Out of the seventy four (74) items of expired drugs, I observed that thirty six (36) had expired by end of December 2020 (representing 49%). Under the circumstances, lives of patients are threatened by the existence of expired medicines at the hospital premises. I noted that the Referral Hospital was heavily congested with patients crowded in the wards and some sleeping on the floors. This was further evidenced by the data collected on Bed Occupancy Rates which showed an average BOR of 113% for the year under review. Congestion was also observed in the stores where some items were placed directly on the floor exposing them to damage. From a review of payments and procurements made during the year, I noted that procurements of goods worth UGX 187,406,417 were not supported with ledgers in the stores to track delivery and utilization of the accountable inventories procured. +16 Kiruddu National Referral Hospital.Opinion Unqualified  I noted that the Hospital’s 5-Year Strategic Plan (FY 2020/21-2024/25) had been approved by National Planning Authority (NPA) by the time of audit. The entity budgeted to collect NTR of UGX. 1,520,000,000 during the + + + + +302 + + + + + + + + + + + + year under review, and UGX. 719,423,137 was realized, representing a performance of 46.9% of the target. Out of the total warrants of UGX.18.8Bn received during the financial year, UGX. 18.3Bn was spent by the entity resulting in an unspent balance of UGX. 0.5Bn (representing an absorption level of 97.3%). The unspent funds were swept back to the consolidated fund as required by the PFMA. Out of the ten (10) outputs selected for budget performance assessment with a total of twenty four (24) activities and expenditure of UGX 12.16bn, I noted that seven (7) outputs with a total of fourteen (14) activities and expenditure worth UGX 9.99bn were fully quantified. Two (2) outputs with a total of eight (8) activities and expenditure worth UGX 1.9Bn, was insufficiently quantified. One (1) output with a total of two (2) activities and expenditure worth UGX 0.27bn were not quantified at all to enable performance assessment. Out of the seven (7) outputs that were fully quantified with a total of fourteen (14) activities, four (4) outputs with a total of six (6) activities were fully implemented. Three (3) outputs with a total of eight (8) activities worth UGX 8.45bn were partially implemented. Out of the eight (08) activities, the entity fully implemented two (02) activities (25%) while six (06) activities (75%) remained partially implemented. I noted that the Hospital submitted three (3) out of four (4) quarterly performance reports to Treasury within the prescribed deadlines. However, there was no documentary proof of preparation and submission of annual monitoring plans and reports to MoFPED and NPA as required. I further noted inconsistences in the financial information reported in the performance reports when compared with the financial statements. A review of drugs supply chain management revealed that on several occasions there were drug stock-outs which left Kiruddu Hospital without several essential, vital and necessary drugs. Inspection of the hospital drug stores revealed that some drugs/chemicals had expired in the Hospital stores. This could have been due to low utilization rates, receipt of drugs with short shelf life or placement of orders that do not match the usage patterns. I noted that 55 new recruits were not cleared by Ministry of Public Service as required. The Accounting Officer attributed the anomaly to the need to fill critical vacant positions in the hospital. +17 National Drug Authority.Opinion Unqualified  NDA had an approved five-year strategic plan FY 2020/21-2024/25 which was well aligned to the National Development Plan in terms of timelines. The financial statements indicated that NTR amounting to UGX 70.73bn was collected during the year against a budget of UGX.68.75bn representing 103% performance. Out of the total revenue of UGX.70.73bn realized during the financial year, UGX.58.43bn was spent by the entity resulting in balance of UGX.12.3bn representing an absorption level of 83%. The Authority did not implement some of its key planned activities during the year which included; herbal inspections, collection of microbiology samples and articles on veterinary drug regulation. The Authority had receivables and prepayments to the tune UGX 42,607,112,126 at the end of the financial year, out of which UGX 37,748,567,840 (88.6%) was due from the Ministry of Health. The presence of significant balances of outstanding receivables poses the risk + + + + +303 + + + + + + + + + + + + of non-recoverability, thus denying the Authority realization of revenue for achievement of its objectives. Seventeen (17) running motor vehicles were fully depreciated during the previous year, reflected at zero book value and removed from the Statement of Financial Position. Removal from the statement of financial position of assets still in use and with no evidence that future economic benefits will not be expected from disposal of the same, misrepresents the entity’s financial position. There was slow progress on the civil works NDA laboratory Tower. Further, works for the amended building plans for the NDA laboratory Tower had commenced by the time of audit in August 2021 prior to approval by the Metropolitan Physical Planning Authority contrary to Section 22 (1f) of the KCCA Act 2010. The Authority fully paid UGX.343,694,683 in advance to providers awarded contracts for the supply of analytical equipment without obtaining appropriate advance payment security. I also noted that the Authority signed contracts to a tune of USD 14,872.8 with two domestic suppliers in foreign currency. +18 Uganda National Health Research Organization.Opinion Unqualified  The Sessional Parliamentary Committee on Social services recommended the granting of a vote status to the Organization. This was followed by issuance of statutory instruments and the gazetting and commencement of the Uganda National Health Research Organisation Act, 2011 on the 22nd day of January 2016. However, I noted that the Organization had not been granted a vote status by the time of audit. I noted that the Organization did not have a governing Board during the year under review, after the term of office for all former members of the Board expired in 2016. The employment contract on file for the Director General expired in April 2018 and had not been renewed by the time of audit. Only 12 out of the approved 26 positions in the Organizational Structure had been filled resulting into a staffing gap of 14 positions. The Organization was financed by a subvention of only UGX.240m out of which 94% was earmarked for wage leaving only 6% for operational costs. +19 Uganda National Health Research Organization.Opinion Unqualified  The Sessional Parliamentary Committee on Social services recommended the granting of a vote status to the Organization. This was followed by issuance of statutory instruments and the gazetting and commencement of the Uganda National Health Research Organisation Act, 2011 on the 22nd day of January 2016. However, I noted that the Organization had not been granted a vote status by the time of audit. I noted that the Organization did not have a governing Board during the year under review, after the term of office for all former members of the Board expired in 2016. The employment contract on file for the Director General expired in April 2018 and had not been renewed by the time of audit. Only 12 out of the approved 26 positions in the Organizational Structure had been filled resulting into a staffing gap of 14 positions. The Organization was financed by a subvention of only UGX.240m out of which 94% was earmarked for wage leaving only 6% for operational cos + + + + +304 + + + + + + + + + + + +20 Joint Clinical Research Centre (JCRC).Opinion Unqualified  JCRC reported trade and other receivables of UGX.4,210,400,000. Out of this UGX.95,254,972 related to the previous financial year. I noted that JCRC did not make any provision for bad debts as required by IFRS 9 and its Manual. Failure to make provisions may result into overstating reported receivables due to unaccounted for risks of non-recoverability. In addition, there was no evidence from the Finance Committee that a review of the bad debts position was annually done. Management explained that in addition to sending out constant reminders to the listed debtors, Management would review the list further for presentation to the Finance Committee of the Board. I advised the Accounting officer to make the required provisions for bad debts in accordance with Standards and the Manual I noted that JCRC signed contracts with local service providers in foreign currency to a tune of USD 32,258.7. The contracts were for supply of Bone density kits (USD 25,515); supply of Hematology reagents (USD 2,060), and; for internet services (USD 4,683). I advised the Accounting Officer to take heed of the PS/ST recommendation and ensure that all local contracts are awarded in Uganda Shillings. +21 Uganda Blood Transfusion Services (UBTS).Opinion Unqualified  I noted that the entity had prepared and approved its plan. However, approval and certification had not yet been obtained from the National Planning Authority. Whereas the entity did not budget for collection of NTR, UGX.8,550,000 was collected and remitted to the Treasury during the year under review. Out of the total receipts from Treasury of UGX.17.43Bn, only UGX.17.20Bn was spent by the entity resulting in an unspent balance of UGX.0.23Bn (representing an absorption level of 98.68%). The unspent balance at the end of the financial year was subsequently swept back to the consolidated fund account. Only one (1) output with a total of two (2) activities and expenditure of UGX 7.65bn was fully quantified out of the seven (7) outputs with a total of sixteen (16) activities and expenditure of UGX 11.99bn sampled for assessment. All the two (2) quantified activities under this output were partially implemented. I noted that funds to the tune of UGX 20,829,692 were irregularly reallocated from the activities on which they were budgeted and spent on other activities without seeking and obtaining the necessary approvals. I noted that the entity submitted performance reports for Q1, Q2, Q3, Q4 after the prescribed deadline. The entity registered an upward trend in accumulation of domestic arrears between the FYs 2016/2017 (UGX.76,296,521), 2019/2020 (UGX.430,885,758) and 2020/21 9 (UGX.512,086,423). Only UGX.97,730,535 was provided in the annual budget to settle domestic arrears. A review of the staff structure of Uganda Blood Transfusion Services revealed that out of the approved structure of 424, only 299 positions are filled leaving a variance of 125 staff positions vacant. I noted that apart from Nakasero (Freehold Tenure), Gulu (Leasehold) and Mbarara (Freehold Tenure) Blood Banks, there were no title deeds, memoranda of understanding or lease agreements for the land currently occupied by the four (4) Regional Blood Banks of Arua, Mbale, Kitovu and Fort Portal. In addition, there were inconsistencies with the plot number wrongly + + + + +305 + + + + + + + + + + + + reflected as Plot 27 instead of 2F on the cover page of the title deed for the land currently occupied by Nakasero Blood Bank. Management wrote to the Secretary Uganda Land Commission about the anomaly in a letter dated 5/4/2012 Reference number UBTS/ADM/LT/01, no response had been received to date. Furthermore, 0.079 hectares of Nakasero Blood Bank were reported to have been encroached on by the fence of Pearl of Africa Hotel on plots 2E and 7A1-9A1 as per the boundary opening reports of 23rd November 2009 (S.M Geoteam ltd) and 2nd August 2013 (Terrain Consult) who had been appointed by UBTS. I noted a one year’s delayed execution of works for the completion of the remodelling of a store at Nakasero Blood Bank. A sum of UGX 2.86bn had so far been paid against the contract sum of UGX.3.77bn. I noted that a total of UGX.0.968Bn was spent on the Blood Safety Information System during the year. Whereas there was information on blood collected, stored and issued during the year, there was no information on how the 224,303 units of blood that had been issued to the different health facilities had been utilized. +22 Uganda Virus Research Institute.Opinion Unqualified  I noted that the entity had prepared and approved its plan. However, approval and certification had not yet been obtained from the National Planning Authority. I noted that the entity did not budget or collect NTR during the year under review. This was attributed to the breakdown of the Nitrogen plant three years ago which was the main source of revenue. However, the Institute received funds from GoU and was in the process of procuring a new Nitrogen plant. The Institute received the entire budget of UGX.8.97bn out of which UGX.8.95bn was spent by the entity resulting in an unspent balance of UGX.20.76m (representing an absorption level of 98.8%). The unspent balance at the end of the financial year was subsequently swept back to the consolidated fund account. Two (2) outputs with a total of two (2) activities and expenditure of UGX 2.23bn were fully quantified out of the eight (8) outputs with a total of twenty-two (22) activities and expenditure of UGX 8.20bn sampled for assessment. None of the two (2) quantified activities under the two (2) outputs was implemented at all. Two (2) outputs with a total of seven (7) activities and expenditure worth UGX.4.99Bn were insufficiently quantified. Out of the seven (7) activities, two (2) activities (29%) was quantified, while the balance of five (5) activities (71%) were not clearly quantified to enable the assessment of performance. Four (4) outputs with a total of thirteen (13) activities and expenditure worth UGX 980m were not quantified at all. That is none of the thirteen (13) activities within these outputs was quantified at all. I noted that funds to the tune of UGX 53,300,000 were irregularly reallocated from the activities on which they were budgeted and spent on other activities without seeking and obtaining the necessary approvals. I noted that the entity submitted performance reports for Q1, Q2, Q3, Q4 after the prescribed deadline. + + + + +306 + + + + + + + + + + + +  Payables worth UGX 0.409bn remained outstanding from financial year ended 30th June 2019 to-date. I noted that management did not provide for the settlement of domestic arears in the approved budget estimates for the year under review. A review of the staff structure of Uganda Virus Research Institute revealed that out of the approved structure of 237, only 75 positions were filled leaving 162 staff positions vacant. A review of a sample of 19 procurement files with a total value of UGX.1.61Bn revealed that the Institute did not require suppliers to provide any form of an acceptable performance guarantee for procurements worth UGX.1.42Bn. Analysis of payment records and review of staff files revealed that 5 staff of the Institution had retired but had not yet accessed the pension payroll although the six months pensions processing period had elapsed. +23 National Medical Stores.Opinion Unqualified  I noted that the Corporation budgeted to collect NTR of UGX.56.37Bn during the year under review. Out of this, only UGX.39.80Bn was collected thereby resulting into a shortfall of UGX.16.57bn. The Corporation budgeted to receive UGX.470,314,151,130 from treasury. However, UGX.456,568,068,061 was warranted resulting into a budget shortfall of UGX.13,746,083,069 (representing 2.9% of the revised approved budget). Out of the nine (9) outputs with a total of nine (9) activities and expenditure of UGX.312.5Bn sampled for assessment, I noted that all the nine (9) outputs with a total of nine (9) activities were fully quantified. That is, all the nine (9) activities (100%) within these outputs were clearly quantified to enable assessment of performance. All the nine (9) outputs with a total of nine (9) activities (100%) were fully implemented. I noted that the Corporation submitted performance reports for Q1, Q2, Q3, Q4 within the prescribed deadlines. From my review of the annual cumulative performance reports and physical inspections/verification of performance, I did not observe any inconsistencies with the results of my verification. No justification was provided by management for the significant reduction in the value of Freehold land (UGX 3.91bn; representing 56%) and Stores Equipment (UGX. 5.3bn; representing 135%) within a period of 3 years. The value of Non-viable medical commodities stood at UGX.5.8bn as at 30th June 2021. I noted that management continued to keep these stocks in the stores. The Corporation’s receivables stood at UGX.17,537,847,000 as at 30th June 2021. A review of the debtor’s movement schedule revealed that the Ministry of Health was the biggest debtor at UGX.17,325,064,059 (MOH, IDI, LLINs, World Bank and Global Fund), followed by Centre for Disease Control (CDC) project at UGX.8,091,650,000 and container deposits of UGX.408,000,000. This resulted into an accumulated provision for bad and doubtful debts of UGX.25,824,715,000 which according to management was awaiting clearance by MoFPED to be written off. +24 Uganda Heart Institute.Opinion Unqualified  I noted that the Hospital’s 5-Year Strategic Plan (FY 2020/21 -2024/25) was approved by National Planning Authority (NPA) on 27th September 2021 vide certificate no. 26(3). Out of eight (8) outputs with a total of forty eight (48) activities and expenditure of UGX.11.50Bn sampled for assessment, I noted that four + + + + +307 + + + + + + + + + + + + (4) outputs with a total of seventeen (17) activities and expenditure worth UGX 7.196Bn were fully quantified; four (4) outputs with a total of thirty one (31) activities and expenditure worth UGX 4.306Bn were insufficiently quantified. I assessed the extent of delivery of the 4 outputs that were fully quantified and noted that one (1) output with a total of two (2) activities worth UGX 0.439Bn was fully implemented. Two (2) outputs with a total of fourteen (14) activities worth UGX 6.606Bn were partially implemented. Out of the fourteen (14) activities, the entity fully implemented four (4) (29%) activities; seven (7) activities (50%) were partially implemented while three (3) (21%) activities remained unimplemented. One (1) output with only one (1) activity worth 0.15Bn was not implemented at all. I noted that funds to the tune of UGX. 24.13m were irregularly re- allocated from the activities on which they were budgeted and spent on other activities without seeking and obtaining the necessary approvals. The entity submitted performance reports for Q1, Q2, Q3, and Q4 after the prescribed deadline. In addition, I did not obtain evidence to confirm that the Accounting Officer Prepared Monitoring Plans and reports which are important in ensuring that the budget performs as expected. From my review of the annual cumulative performance reports and physical inspections/verification of performance, I did not observe any inconsistencies with the results of my verification. I noted that insufficient budget provisions (UGX.73,885,634) were made towards settlement of domestic arrears yet the arrears brought forward from the previous year were UGX.1,429,802,685. The Institute had NTR debtors to the tune of UGX. 282.97m at the end of the financial year under review. These were receivables from various insurance companies, MDAs and institutions for services rendered by the Institute. The Land Commission received a presidential directive to allocate Uganda Heart Institute 10 acres of land in Nakawa Naguru to facilitate the setting up of a Cardiac Centre of Excellence with a 250 bed hospital. However, I noted that during the year there were encumbrances on part of the allocated land which resulted in the loss of 3 acres after consensual withdrawal of a law suit. Whereas the total contract sum of UGX. 3.5bn had been paid out for the renovation of the Intensive Care Unit on Block 1C, the works remained incomplete at the time of writing this report. A review of the staff structure of Uganda Heart Institute revealed that out of the approved structure of 189, only 160 positions were filled leaving 29 staff positions vacant. +25 Mulago Specialized Women & Neonatal Hospital.Opinion Unqualified  The entity budgeted to collect NTR of UGX. 7bn during the year under review, and UGX. 3.64bn was realized, representing a performance of 52% of the target. Out of the total receipts for the financial year of UGX 21.93 bn, UGX. 20.93Bn was spent by the entity resulting in an unspent balance of UGX.0.997Bn (representing an absorption level of 95.5%). The unspent balance at the end of the financial year was subsequently swept back to the consolidated fund account. I noted that out of the sampled twelve (12) outputs with a total of twenty + + + + +308 + + + + + + + + + + + + five (25) activities and expenditure of UGX 17.7bn, only eight (8) outputs with a total of fourteen (14) activities worth UGX 9.1bn were fully quantified. Two (2) outputs with a total of nine (9) activities and expenditure worth UGX.8Bn, was insufficiently quantified. I observed that out of the nine (9) activities, six (6) activities (66.7%) were quantified, while the balance of three (3) activities (33.3%) were not clearly quantified to enable the assessment of performance. Two (2) outputs with a total of two (2) activities and expenditure worth UGX 0.550Bn were not quantified at all. That is none of the two (2) activities within these outputs was quantified at all. Out of the eight (8) fully quantified outputs with a total of fourteen (14) activities and expenditure worth UGX.9.1Bn, seven (7) outputs with ten (10) activities and expenditure worth UGX 4.8Bn were fully implemented. One (1) output with four (4) activities worth UGX.4.4Bn was partially implemented. Out of the four (4) activities, the entity fully implemented three (3) activities; one (1) activity was partially implemented, while no activity remained unimplemented. A well equipped kitchen with boilers, fridges, gas cookers, cabinets, a chimney and a full outer gas tank was constructed at the Hospital. However, it was not yet in use at the time of audit. I noted that the Hospital submitted all the quarterly performance reports beyond the prescribed deadlines. From my review of the annual performance reports and physical inspections/verification of outputs reported, I did not observe inconsistencies in the reported performance. I noted that the hospital reported a payables figure of UGX.2,180,857,756 of which UGX. 427,844,778 related to PAYE which was deducted but remained unremitted by close of the year under review. +26 Mulago National Referral Hospital. 2020/21Opinion Qualified  Transfers of UGX.3,867,161,000 received from the Ministry of Health were not recognized in the Statement of Financial Performance. The receipts were also not reported in Note 5 to the Financial Statements. It was further noted that the funds which were received on the Hospital’s Infrastructure Development Account were transfers from Ministry of Health meant for intern allowances. The Hospital had liabilities of UGX 2,952,608,319 from the previous year (FY 2019/20) in respect of payables (UGX 2,304,366,476) and deposits (UGX 648,241,843). However, payments totalling to UGX3,775,748,845 in respect of the liabilities were made. The Hospital therefore made payments for non-existent liabilities amounting to UGX 1,471,382,369. Management made an adjustment to the opening balance of payables amounting to UGX 2,097,368,767 (statement of outstanding commitments on Page 33 of the financial statements). However, there was no explanation provided on the cause of the adjustment or the composition of this figure. The Hospital misstated transfers to the Treasury during the year by UGX 1,296,483,686 in its financial statements. The entity did not have a strategic plan approved by NPA during the year. The Hospital did not budget to collect NTR during the year under review. However, the financial statements indicated that NTR amounting to UGX. 1,808,626,491 was collected during the year. Out of the total warrants of UGX.63,573,318,357 received during the financial year, UGX.59,379,356,427 was spent by the entity resulting in + + + + +309 + + + + + + + + + + + + an unspent balance of UGX.4,193,961,930 representing an absorption level of 93.4%. The Hospital spent UGX. 474,479,100 on refurbishment of the MRI machine. It was noted that the MRI machine was delivered and installed in 2018 and has since never been put to use. Works under the construction contract for 150 units of staff houses at the Hospital of UGX. 30,228,600,856 have been delayed. I noted that vital medical equipment was in poor working condition, while others were fully not functional and required replacement. The equipment included: autoclaves in the central sterile service department; patient monitors in the accident and emergency surgical unit; blood coagulation machine in the clinical laboratory unit; ICU beds in the intensive care unit, and CT machine in the Radiology department. +27 Allied Health Professionals Council (AHPC). 2020/21  The Council did not have a strategic plan approved by NPA during the year. The entity budgeted to collect internal revenue of UGX.4.771Bn during the year under review. Out of this, only UGX.3.783Bn was realized, representing a performance of 79% of the target. The Council did not implement some of its planned activities during the year. Examples include: Verification and publication of Allied Health Professionals in the Gazette; Licensing of private Allied Health units and training institutions, and; ICT support supervision in regions. The Governing Council stated that a material uncertainty existed regarding the continued operation of Allied Health Professionals Council in the foreseeable future. This was based on the communication by the Permanent Secretary Ministry of Public Service (PS/MoPS) to the Permanent Secretary Ministry of Health among others in which the PS/MoPS communicated a Cabinet decision of 22nd February 2021 that required the commencement of merging, rationalization and mainstreaming of Government Agencies between financial years 2021/2022 and 2022/2023. I noted that it takes an average of 3 months for the Council to process registration certificates which seemed to be too long. Delayed processing of registration certificates frustrates applicants and may make some to lose opportunities. The Council did not make any publication in the Gazette during the year under review, contrary to The Allied Health Professionals’ Act (cap 268). The unsuspecting public was not protected from public from quack practitioners. +28 Health Service Commission. 2020/21Opinion Unqualified  I noted that the entity had prepared a strategic plan. However, this had not been approved by the end of the year under review. The Commission did not budget to collect NTR during the year under review. However, the financial statements indicated that NTR amounting to UGX.21,850,000 was collected during the year. There was no evidence to show that the procurement method and the Evaluation Committee were approved by the Contracts Committee for six sampled procurements worth UGX48,310,800. Lack of approval contravenes the PPDA Regulations. In the circumstances, the Evaluation Committees executed the assignment without authority. +29 Uganda AIDS Commission. 2020/21  I noted that the entity had prepared a strategic plan. However, this had + + + + +310 + + + + + + + + + + + + Opinion Unqualified not been approved by the end of the year under review. The Commission did not budget to collect NTR during the year under review. However, the financial statements indicated that NTR amounting to UGX. 37,800,000 was collected during the year. UAC received off-budget financing to a tune of UGX.1,465,747,761. Although Management explained that a total of UGX.2.8Bn was budgeted for and appropriated by Parliament as off-budget funding for the Financial Year 2020/2021 as the total grant disbursement of all grants in the year, I could not trace this figure in the Commission’s approved budget for the year. The Commission failed to implement two planned activities during the year; Data quality control and validation strategy, and Quarterly meetings for adolescents and young people. The reported domestic arrears of UGX. 76,162,182. These arrears relate to as far back as the FY 2016/2017. It was noted that the arrears are not supported. I absence of supporting documents, there seemed to be no basis for these payables standing in the Commission’s financial statements. The Commission had a dispute over ownership of Land and Buildings on 0.1 Hectare of Leasehold land comprised in Freehold Register Volume 56 Folio 16 Plot Number 213, Sentema Road at Namirembe with Namirembe Diocese Church of Uganda which disabled the Commission from valuation, renovating and collecting revenue from tenants since 2016. Although the Diocese later confirmed that the Commission’s lease expires in 2026, it asked the Commission to justify why it wants to renew the lease because the Diocese had taken a decision not to renew leases for areas near the Cathedral which the Commission has failed to secure from the Office of the President where it falls. +30 Allied Health Professionals Council (AHPC). 2020/21Opinion Unqualified  The Council did not have a strategic plan approved by NPA during the year. The entity budgeted to collect internal revenue of UGX.4.771Bn during the year under review. Out of this, only UGX.3.783Bn was realized, representing a performance of 79% of the target. AHPC planned to implement five (5) outputs in the year under review. I assessed the implementation of three (3) outputs which had 16 activities and noted that all the 3 outputs with their 16 activities were fully quantified. with a total of sixteen (16) activities worth UGX.1.380Bn and noted that; Out of the sampled 3 outputs with a total of 16 activities, I noted that one (1) output with four (4) activities and expenditure worth UGX 0.515Bn was fully implemented that is all the four (4) activities within this output were fully implemented. Two (2) outputs with twelve (12) activities worth UGX.0.865Bn were partially implemented. Out of the twelve (12) activities, the entity fully implemented one (1) activity; seven (7) activities were partially implemented while four (4) activities were not implemented. The Council did not implement some of its planned activities during the year. Examples include: Verification and publication of Allied Health Professionals in the Gazette; Licensing of private Allied Health units and training institutions, and; ICT support supervision in regions. The Governing Council stated that a material uncertainty existed regarding the continued operation of Allied Health Professionals Council in + + + + +311 + + + + + + + + + + + + the foreseeable future. This was based on the communication by the Permanent Secretary Ministry of Public Service (PS/MoPS) to the Permanent Secretary Ministry of Health among others in which the PS/MoPS communicated a Cabinet decision of 22nd February 2021 that required the commencement of merging, rationalization and mainstreaming of Government Agencies between financial years 2021/2022 and 2022/2023. There is a high possibility that the Council may not remain a going concern beyond the stated period. The Council did not make any publication in the Gazette during the year under review, contrary to The Allied Health Professionals’ Act (cap 268). In the absence of such a publication, the unsuspecting public may not be protected from quack practitioners. +31 Uganda Global Fund To Fight Aids, Tuberculosis And Malaria Project – HIV COMPONENT. 2020.Opinion Unqualified  No significant findings +32 Uganda Global Fund to Fight Aids, Tuberculosis And Malaria Project – HIV Component. 2020Opinion Unqualified  No significant findings +33 Uganda Global Fund to Fight Aids, Tuberculosis and Malaria Project-Tuberculosis Component. 2020.Opinion Unqualified  No significant findings +34 Ministry of Health. 2020/21Opinion Unqualified  I noted that whereas the Ministry submitted a draft 5-Year Strategic plan (FYs 2020/21-2024/25) to National Planning Authority for approval on 29th July 2021, a certificate had not been issued by the Authority by the time of audit. The entity did not budget for NTR during the year under review. However, UGX 7.205Bn was collected. The Ministry budgeted to receive UGX 147.112Bn. This budget was later revised to UGX 376.884Bn, out of which UGX 376.837Bn was warranted, resulting into a shortfall of UGX 47m (representing 0.012% of the approved budget). Out of the total UGX 1,029.646Bn received during the year under review, UGX 852.099Bn was spent by the entity resulting in an unspent balance of UGX. 177.547Bn (representing an absorption level of 82.8%). The unspent funds included; UGX 0.61Bn of NTR which was swept back to the Consolidated Fund as required by the PFMA, while UGX 5Bn remained on the MoH Contingency Fund and the balance of UGX 171.937Bn remained on project Accounts. Out of a sample of forty nine (49) outputs with a total of one hundred ninety seven (197) activities and expenditure of UGX 777.8Bn, twenty + + + + +312 + + + + + + + + + + + +four (24) 48.9% outputs with a total of fifty nine (59) activities and expenditure worth UGX 140.4Bn were fully quantified. Fifteen (15) 30.6% outputs with a total of one hundred twenty one (121) activities and expenditure worth UGX 373.5Bn were insufficiently quantified. I observed that out of the one hundred twenty one (121) activities, sixty nine(69) activities (57%) were quantified, while the balance of fifty two (52) activities (43%) were not clearly quantified to enable the assessment of performance. Ten (10) 20.4% outputs with a total of seventeen (17) activities and expenditure worth UGX 263.9Bn were not quantified at all. + +- Out of twenty four (24) outputs that were fully quantified with a total of fifty nine (59) activities worth UGX 140.4Bn, eight (8) (33.3%) outputs with eleven (11) activities and expenditure worth UGX 101.8Bn were fully implemented; ten (10) (41.7%) outputs with forty two (42) activities worth UGX 32.5Bn were partially implemented. Out of the forty two (42) activities, eleven (11) activities were fully implemented; thirteen (13) activities were partially implemented, while eighteen (18) activities remained unimplemented. Six (6) (25% )outputs with six (6) activities worth UGX 6.1Bn could not be assessed to establish their level of implementation because four (4) of these outputs were not reported on, while two (2) outputs were inaccurately reported on i.e. different activities were planned for but different activities were reported on. + + + +- Ministry of Health received off-budget financing from Development Partners to a tune of UGX 8.44Bn, which was not declared to Treasury and, therefore, not appropriated to the entity by Parliament. + + + +- The entity submitted performance reports for Q1, Q2, and Q3, Q4 after the prescribed deadlines. In addition, I did not obtain documentary proof of in the form of monitoring plans and reports which are important in ensuring that the budget performs as expected. + + + +- The task force reporting functionality planned to produce bi-weekly, monthly, quarterly, bi-annual and annual COVID-19 performance reports. However, these were not prepared and discussed in a timely manner. + + + + + +- I noted that the Ministry of Health did not prepare a COVID-19 activity work plan upon receipt of UGX 253,596,115,200 meant for management of COVID-19. + + + +- Out of the Supplementary release of UGX 223.596Bn, the Contingency Fund allocation of UGX 30Bn, and the unutilized balance from FY 2019/2020 of UGX 0.5Bn, a total of UGX.249.025bn (Supplementary UGX 223.596Bn, and Contingency Funding of UGX 25.429Bn) was spent leaving a balance of UGX 5.071Bn unspent as at 30th June 2021 (representing an absorption level of 98% of the total available funds) + + + +- I noted that the entity conducted COVID-19 related procurements worth UGX 105,937,028,042 in the FY 2019/20 out of which UGX 92,960,878,888 had been paid by 30th June 2021. During the year under review (FY 2020/21), procurements worth UGX 191,254,414,946 were conducted out of which UGX 184,690,133,663 was paid by 30th June 2021. + + + +- I noted that 37,501,136 masks that were delivered by various suppliers at a cost of UGX 90.2bn were not supported with documentary proof of certification by UNBS to ensure conformance with the desired technical quality specifications. + + + +- Whereas the first GoU allocation for procurement of vaccines amounting to UGX 18.5bn was transferred to National Medical Stores on 29th March 2021, vaccination doses procured by the Government of Uganda were yet to be delivered to NMS by 30th June 2021. Delayed delivery of the + +313 + + + + + + + + + + + + vaccines is likely to hamper the timely attainment of the vaccination targets set by government. The Ministry did not comply with PPDA Regulatory Framework with respect to COVID-19 related procurements valued at UGX. 13.7bn. Whereas Mulago National Referral Hospital had running contracts for cleaning, waste disposal and security services with 3 suppliers prior to the COVID-19 pandemic, the Ministry of Health directly paid these suppliers a total of UGX 1,071,968,797 in respect of Cleaning & waste disposal Services (UGX 794,999,997) and Security services (UGX 276,968,800) rendered at Mulago COVID-19 Treatment Centre. Under the circumstances, there is a risk of double payment. I noted that Pay As You Earn (PAYE) amounting to UGX 626,630,608 was not deducted from hardship allowances paid to various officials. Failure to deduct taxes may attract interest and penalties from the Tax Body. + LEGISLATURE +1. Parliamentary Pension Scheme. 2020/21Opinion Unqualified  A total of UGX.5,557,452,584 was utilized during the year against the approved budgeted t of UGX.6,601,744,660. The Under absorption of resources implies that the scheme did not carry out all the year’s intended activities, hence not meeting its intended objectives. Some of the activities that were not or partially implemented were; Recruitment of staff  IT Annual Maintenance Plans  Strategic Partnership Meetings As observed last financial year 2019/2020, some members on the Board of Trustees are still signatories to the Bank Accounts of the Scheme. The Board’s involvement in the day-to-day operations of the scheme erodes its oversight role. For instance, the Board cannot hold management to account for failure, to implement. agreed activities when the Board is actively participating in the daily operations of the scheme. +2. Parliamentary Commission. 2020/21Opinion Unqualified  I noted that the Authority’s strategic plan had not been certified by NPA by the time of audit, contrary to the Planning Regulations. The Authority received 99% of its budget from Government, and NTR performed above expectation by 21%. The Authority had unspent balances of UGX.7.64Bn, which was returned to the consolidated fund. I noted that the Authority had unremitted off-budget financing of UGX.18.97Bn, which Parliament never appropriated. I noted that out of the thirty-nine (39) outputs sampled for review, two (2) outputs (5%) were fully quantified, two (2) outputs (5%) were partially quantified, and thirty-five (35) outputs (90%) were not quantified at all which made it impossible to measure performance. The two (2) outputs that were fully quantified were all fully implemented. All performance reports were submitted after the deadline. I noted that the Authority had not developed regulations to guide the collection of outdoor advertising fees, which hindered the collection of NTR. I further noted that the Authority did not undertake regular updates of the valuation rolls. The Authority has an unserviceable long-term liability of UGX.42,570,448,999 in addition to accumulated domestic arrears of + + + + +314 + + + + + + + + + + + +UGX.62,477,592,377 as at 30th June 2021. + + + +- The Authority did not remit statutory deductions to URA and NSSF amounting to UGX.1.86Bn. + + + +- The Authority incurred avoidable expenditure of UGX.7.8Bn as interest due to delayed site handover for civil works constructions. + + + +- I noted that the Authority had not adopted the Computerized Government Financial Management Information Systems (GFMIS) for management of its inventories as required by the Treasury Instructions. + +315 + + + + + + + + + + + +ANNEXURE II: SUMMARY OF ENTITY FINDINGS AND OPINIONS FOR LOCAL GOVERNMENTS + +S/N Fort Portal Branch Summary of Key Findings +01. Bundibugyo DLGOpinion Unqualified  I noted a number of anomalies during review of the district payroll such as; Failure to submit wage estimates to MoPs, over payment of salaries worth UGX.29, 467,392, Underpayment of salaries of UGX.2, 160,338; payment of salaries worth UGX.45, 977,978 to sixteen (16) staffs who were no longer in service, delayed access to payroll by sixty (60) new employees and failure to prepare monthly wage, pension and gratuity performance analysis on payroll to MoPS. The district did not have an approved strategic plan that is aligned to the NDP-III at the time of audit. I noted a number of issues in the implementation of the approved budget such as; under absorption of funds worth UGX. 2,978,972,164; under performance of the donor & government releases worth UGX.1,536,961,363; partial submission of quarterly monitoring reports to OPM & MoFPED The district received off-budget financing to a tune of UGX. UGX.7, 989,897 directly from UNFPA for undertaking activities which was never declared to the PSST and as such no supplementary appropriation was issued as guided by the PSST. The district lost a court case (Busobozi Juma Vs Bundibugyo DLG); but failed to honour this court ruling resulting into attachment of three (3) District Motor vehicles. I further noted the district failed to absorb UGX.950, 886,390 of the UgIFT funds received and the balance was swept back to the Consolidated Fund Account at the end of the financial year. I further noted that the district had unutilized funds of UGX.336, 284,000 meant for the construction of Kabango Seed School which was swept back to the Consolidated Fund. +02. Kabarole DLGOpinion Unqualified  I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, Over payment of pension worth UGX.288, 866,531; Underpayment of pension worth UGX.271, 215,401; Wrong computation of gratuity worth net overpayment of UGX. 54,578,592; payment of salaries worth UGX. 3,051,636 to two (2) staffs that was no longer in service and irregular deduction of loan instalments worth UGX.9, 061,174. Additionally, I observed that there was delayed access to payroll by twenty three (23) new employees and nine (9) pensioners; failure to utilize wage funds of UGX.2.38Bn; un-deducted PAYE from political leaders’ gratuity resulting in unpaid tax of UGX.10,746,540 and payment of twenty two (22) staffs worth UGX.35,678,772 off the IPPS + + + + +316 + + + + + + + + + + + +  I noted a number of issues in the implementation of the approved budget such as; shoddy works in construction of classrooms; incomplete works; under absorption of funds worth UGX.5,185,210,873 that was swept back to consolidated fund account; under performance of the donor & releases from other government units worth UGX.768,125,595; delayed submission of quarterly monitoring reports to OPM & MoFPED The district mischarged expenditure worth UGX.275, 847,736 on wrong budget lines. +03. Kamwenge DLGOpinion Unqualified  I noted a number of anomalies during review of the district pension & salary payrolls such as; over payment of pension worth UGX.18,610,306; Underpayment of pension worth UGX. 20,537,350; Wrong computation of gratuity worth net overpayment of UGX. 126, 160257; payment of salaries worth UGX. 3,042,398 to six (6) staffs that was no longer in service; irregular deduction of loan instalments worth UGX.9,912,197 and failure to remit payroll deductions worth UGX.1,206,334,606 Additionally, I observed that there was delayed access to payroll by eleven (11) new employees; failure to utilize wage funds of UGX.2.32Bn; un-deducted PAYE from political leaders’ gratuity resulting in unpaid tax of UGX.9,904,129; payment of forty three (43) staffs worth UGX.73,835,431 off the IPPS and failure to prepare monthly wage, pension and gratuity performance analysis report on payroll to MoPS The district mischarged expenditure worth UGX.446,776,818 on wrong budget lines other than those prescribed for salary, pension and gratuity The district did not have an approved strategic plan that is aligned to the NDP-III at the time of audit. I noted a number of issues in the implementation of the approved budget such as; under absorption of funds worth UGX.9, 615,375,142 that was eventually swept back to consolidated fund account at end of financial year; combined under performance worth UGX. 18,033,399,211 from planned donor funds, NTR, releases from Government & other Government units ; delayed submission of quarterly monitoring reports to OPM & MoFPED I observed that a total sum of UGX.792, 482,750 due from the groups that were funded in 2014/15, 2015/16, 2016/17, 2017/18 and 2018/19 were still outstanding and therefore reported as revenue arrears at the year end. The district lacks evidence of ownership in form of titles for its land at Kabuga-Rubaba measuring 1,321 hectares. During a physical inspection of the Constructions, I noted a + + + + +317 + + + + + + + + + + + + number of shoddy works in Bwizi Seed School and upgrade Kabingo Health Centre II to Health Centre III. +04. Kasese DLGOpinion Unqualified  I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, over payment of Salary and gratuity worth UGX. UGX.3, 574,714; Underpayment of pension worth UGX. 705,886; un-deducted PAYE from political leaders’ gratuity resulting in unpaid tax of UGX.21, 251,680; payment of salaries worth UGX. 990,729 to two (2) staffs that was no longer in service and irregular deduction of loan instalments worth UGX.11, 312,968. Additionally, I observed that there was delayed access to payroll by four (04) new employees and five (5) pensioners; failure to utilize wage funds of UGX.0.01Bn; over remittance UGX.14,857,510 was made to UNATU and UBA, and an under remittance of UGX.162,609,619 to URA and LST respectively; and payment of twenty nine (29) staffs & two (2) pensioners a total of UGX.35,824,742 off the IPPS The district mischarged expenditure worth UGX.99,558,770 on wrong budget lines other than those prescribed for gratuity The district’s strategic plan was not certified by National Planning Authority. I noted that the verification forms and copies of the verification cards for 150 new employees and 8 pensioners/beneficiaries were not on the respective personal files. The district has uncollected Non Tax Revenue arrears to the tune of UGX.702, 009,983 that has remained outstanding for more than a year. I noted a number of issues in the implementation of the approved budget such as; under absorption of funds worth UGX. 6,349,941,923 that were eventually swept back to consolidated fund account at end of financial year; combined under performance worth UGX. 11,758,099,498 from planned donor funds, NTR, releases from Government & other Government units ; delayed submission of quarterly monitoring reports to OPM & MoFPED Ninety one (91) pieces of land owned by the District lacked evidence of ownership in form of titles. Out of the total funds of UGX.822, 539,506 UgIFT funds received, the district only utilized UGX.314,732,415 (38.26%) resulting into unspent balance of UGX.507,807,091. +05. Kyegegwa DLGOpinion Unqualified  I noted a number of issues during the review of the district pension and payroll such as; + + + + +318 + + + + + + + + + + + + The district delayed to submit wage estimates to MoPs by the 30 th of September of the previous year as required. This may + +lead to wage shortfalls/over provision due to lack of clarity and analysis of wage estimates by MoPS. + + Unpaid accrued gratuity worth UGX.92,701,695 by year end and Under absorption of wage funds worth UGX.1.13Bn that meant + +some employees and pensioners were unpaid + + The verification forms and copies of the verification cards for 50 + +employees were not on the respective personal files + + The District did not prepare monthly wage, pension and gratuity + +performance analysis and thus did not submit quarterly returns + +on payroll to MoPS, contrary to Paragraph 2.1 of Establishment + +Notice No. 1 of 2020. This led to under absorption of wage, pension and gratuity budgets + + 6 employees were paid a total of UGX.2,852,917 without signed + +pay change reports + +- 37 newly recruited/ transferred employees and 6 pensioners delayed to access payroll this affects staff moral and + + + +accumulation of domestic arrears and paid UGX.1,446,726 was + +paid to 2 former staff who had either retired or died + + + +- The district did not subject political leaders’ gratuity totalling to + +UGX.43,741,660 to the computation of PAYE in IPPS, leading to + +an under deduction of UGX.13,224,798, contrary to section 19(1) + +(a) of the Income Tax Act + + The district made unauthorised loan deductions totalling UGX.157,604,005. The deductions were from 84 employees that + +neither had letters of undertaking nor existed in the “active deduction” or the “my approval” reports on the PDMS-Payroll + +Deduction Management System, operated by PCA-Payroll Consults Africa + + I noted unrecovered overdue YLP and UWEP receivables worth + +541,572,633 and 196,364,405 from beneficiary groups that has affected the revolution of the funds among other groups in the queue + + I noted a number of issues in the implementation of approved + +budget such as delayed submission of quarterly reports; underperformance of revenue worth 9,414,937,826; under absorption of funds worth UGX.3,780,702,017 that affected + +implementation of Construction of Kagumba & Nabiwugulu Seed Schools, upgrading of Bubago HCII to HC III, Construction works + +319 + + + + + + + + + + + + at Kitayunjwa Seed School , ICT and science equipment for Kitayunjwa Seed School, Upgrading of Kagumba HC II to HC III and Procurement of medical equipment for Kagumba HC I and Bubago HCII I noted that the management had not prepared and approved a strategic plan that is aligned to the NDP-III at the time of audit I noted ddelayed works for Construction of Karwenyi Health Center III under UgIFT. The contract was awarded to M/s.Nicole Associates Ltd at a contact sum of UGX.529, 682,320 and should have been completed on 07.09.19 but was still having pending works I noted incomplete construction works on Rwentuuha seed school for works that should have ended by 07.04.2020 I noted funds shortfall of UGX.91, 745,203 for funds meant for road maintenance from URF that affected the implementation of planned works +06. Kyenjojo DLGOpinion Unqualified  I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, over payment of Gratuity worth UGX. UGX.4, 503,576; Underpayment of pension worth UGX. 10,233,398; payment of salaries worth UGX. 13, 121,357 to nine (9) staffs that was no longer in service and unauthorized deduction of loan instalments worth UGX. 21,809,702. Additionally, I observed that there was delayed access to payroll by ten (10) new employees and two (2) pensioners; failure to utilize wage funds of UGX.0.96Bn; unremitted payroll deductions of UGX. 6,025,083 and failure to prepare monthly wage, pension and gratuity performance analysis report on payroll to MoPS I noted a number of issues in the implementation of the approved budget such as; under absorption of funds worth UGX.3, 847,060,490 that was eventually swept back to consolidated fund account at end of financial year; combined under performance worth UGX. 22,372,196,592 from planned donor funds, NTR, releases from Government & other Government units; Out of UGX.1, 300,000,000 received for Upgrading of Kigoyera HC II to HC III only UGX.480, 191,731 was utilized and the balance was swept back to the Treasury at the end of the financial year. I noted shoddy works for M/s Build line Contractors Uganda LTD at a contract sum of UGX.2, 050,045,030. Although the end date was extended to 30th August 2020 and the contract sum revised to UGX.2, 150,170,030 to cater for variations + + + + +320 + + + + + + + + + + + +  The districts strategic plan was not certified by National Planning Authority therefore I could not confirm that it is aligned to NDP- III. +07. Ntoroko DLGOpinion Unqualified  I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs; Underpayment of in payroll worth UGX. 5,813,601; un-deducted PAYE from political leaders’ gratuity resulting in unpaid tax of UGX.8, 062,325; Loan deductions relating to all the 279 employees did not have letters of undertaking and evidence of consent on file; One hundred five (105) staffs were paid using wrong salary scales, leading to over payments of UGX.9,200,722. Additionally, I observed that there was delayed access to payroll by thirty seven (37) new employees and one (01) pensioner; failure to utilize wage funds of UGX.0.026Bn; unremitted PAYE deductions of UGX.58,118,104, to URA; failure to prepare monthly wage, pension and gratuity performance analysis report on payroll to MoPS I noted that the verification forms and copies of the verification cards for 50 employees were not on the respective personal files The district’s strategic plan was not certified by National Planning Authority therefore I could not confirm that it is aligned to NDP- III. I noted a number of issues in the implementation of the approved budget such as; under absorption of funds worth UGX.824, 523,482 that was eventually swept back to consolidated fund account at end of financial year and a combined revenue under performance worth UGX. 1,971,531,402 from planned donor funds, NTR, releases from other Government units I noted that the Upgrade of Butungama HCIII under UgiFT works had stalled and behind schedule by 14 months. +08. Fort portal MC Unqualified Opinion  I noted a number of anomalies during review of the Municipal pension & salary payrolls such as; Failure to submit wage estimates to MoPs; Overpayment of UGX.1,547,570 Underpayment of in payroll worth UGX.674,289; un-deducted PAYE from political leaders’ gratuity resulting in unpaid tax of UGX.3,015,540; failure to utilize wage funds of UGX.0.655Bn; Payment of 4 employees who were no longer in service; Under remittance of salary deductions worth UGX. UGX.68,499,107; Delayed remittance of deductions to UCLA/UBA of 5 to 90 days I noted a number of issues in the implementation of the approved budget such as; under absorption of funds worth UGX.9, 264,101,819 that was eventually swept back to consolidated fund account at end of financial year; combined under performance worth UGX. 22,372,196,592 from planned + + + + +321 + + + + + + + + + + + + donor funds, NTR, releases from Government & other Government units The Municipality mischarged expenditure worth UGX.5,244,093 on wrong budget lines other than those prescribed for salary, pension or gratuity The Municipal’s strategic plan was not approved by the National Planning Authority at the time of audit and therefore I could not confirm that it is aligned to NDP-III. The Municipality lacked certificates of title for 13 pieces of land. I noted that the MC did not have sufficient waste receptacles and solid waste collection vehicles which have led to piling of garbage on the Municipality streets resulting into a public health nuisance. + Branch Jinja Summary of Key Findings +01. Namutumba DLGOpinion Unqualified  I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, over payment of Gratuity worth UGX. 6,699,263; Underpayment of salaries worth UGX 3,970,280; payment of salaries worth UGX. 34,532,950 to eighteen (18) staffs who were no longer in service; under remittance of payroll deduction of UGX. 42,851,131; unauthorized excess loan deductions worth UGX. 336,561,515 for one hundred seventy four (174) employees Additionally, I observed that there was delayed access to payroll by ninety one (91) newly recruited/ transferred employees and nineteen (19) pensioners; eight (8) pensioners failed to access the pension payroll; failure to utilize wage funds of UGX.0.70Bn; un-deducted PAYE from political leaders’ gratuity resulting in unpaid tax of UGX.9, 275,220; failure to prepare monthly wage, pension and gratuity performance analysis report on payroll to MoPS and overpayment of pensioners due to wrong computation worth UGX. 66,739,381 and payment of 05 employees worth UGX. 3,371,913 without authorization of pay change report. I noted a number of issues in the implementation of the approved budget such as; under absorption of funds worth UGX. 1,074,919,818 that were eventually swept back to consolidated fund account at end of financial year; under performance worth UGX. 183,402,134 from planned donor funds, NTR and releases from Government.; partial implementation of planned activities The district mischarged expenditure worth UGX.41,963,816 on wrong budget lines other than those prescribed for salary, pension or gratuity From a comparison of the payroll register and IFMS payment file, I noted that 09 staff and 10 pensioners were paid a total of UGX 461,890,255 off the IPPS. + + + + +322 + + + + + + + + + + + +  I noted that the District had uncovered funds (receivables) of UGX. 1,400,354,319 that affected the budget implementation of planned activities The District’s strategic plan is in place but no evidence of approval by the National Planning Authority was availed at the time of audit. I noted that the construction works of a seed secondary school at Nabweyo did not take off in the financial year under review and the funds amounting to UGX. 344,284,000 were swept back to treasury. The district lacked land titles for 17 pieces measuring approximately 299.3 acres which exposed the land to loss and encroachment. The District received a sum of UGX. 223,381,891 for (06) secondary schools and (109) primary schools meant for the procurement of learning materials. However, the bank statements had not been availed for review at the time of audit. +02. Buyende DLG Opinion: Unqualified  I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, unpaid salaries of UGX 5,941,021 to nine (9) employees; Underpayment of salaries to staff worth UGX 205,153,235; under payment of UGX 6,386,999 to pensioners; over payment of UGX 9,607,227; payment of salaries worth UGX. 11,313,061 to six (06) staffs who were no longer in service; under remittance of payroll deduction of UGX.205,612,209; unauthorized excess loan deductions worth UGX. 17,355,601 for 168 employees Additionally, I observed that there was delayed access to payroll by twenty nine (29) newly recruited/ transferred employees and seven (07) pensioners; un-deducted PAYE from political leaders’ gratuity resulting in unpaid tax of UGX. 12,019,045; failure to prepare monthly wage, pension and gratuity performance analysis report on payroll to MoPS and overpayment of pensioners due to wrong computation worth UGX. 20,650,780 and payment of funds worth UGX. 8,205,747 off the IPPS system I noted a number of issues in the implementation of the approved budget such as; under absorption of funds worth UGX. 2,000,000,000,000 that were eventually swept back to consolidated fund account at end of financial year; under performance worth UGX. 2,097,035,126 from planned donor funds, NTR and releases from Government.; partial implementation of planned activities The district mischarged expenditure worth UGX. 71,513,039 on wrong budget lines other than those prescribed for salary, pension or gratuity + + + + +323 + + + + + + + + + + + +  I noted that the entity had prepared a strategic plan but the National Planning Authority had not yet approved it at the time of audit. Failure to quantify outputs, partial and non-implementation of planned activities, late submission of quarterly reports I noted that funds to the tune of UGX. 571,677,701 were irregularly diverted from the activities on which they were budgeted and spent on other activities without seeking and obtaining the necessary approvals. Of the 9 road equipments at the district, 03 were grounded and in need of major repairs and I also observed lack of vital road equipment such as an excavator, a backhoe, supervision double cabin pickup and 02 supervision motor cycles. Delayed construction works on Buyende Seed School and expired performance security for the contract from the contractor was also noted I note that there undelivered ICT Equipments worth UGX. 148,842,899 to Buyende Seed Secondary School; unutilized funds worth UGX. 178,400,391 meant for procurement of learning materials for (05) secondary schools and (91) primary schools. I noted that accountability amounting to UGX. 61,788,892 were not presented for verification by the time of audit. The district lacked land titles for 48 pieces measuring approximately 1,942 hectares which exposed the land to loss and encroachment. +03. Jinja DLG Opinion: Unqualified  I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, unpaid salaries and pension arrears of UGX 484,546,138; Underpayment of salaries to staff worth UGX. 40,243,749; under payment of UGX 6,386,999 to pensioners; over payment of UGX 9,607,227; payment of salaries worth UGX. 2,763,055 to six (06) staffs who were no longer in service Additionally, I observed that there was delayed access to payroll by Fifteen (15) newly recruited/ transferred employees and three (03) pensioners; un-deducted PAYE from political leaders’ gratuity resulting in unpaid tax of UGX. 10,866,949; failure to prepare monthly wage, pension and gratuity performance analysis report on payroll to MoPS and payment to 06 staff and 09 pensioners of funds worth UGX. 62,763,120 off the IPPS system I noted a number of issues in the implementation of the approved budget such as; Failure to Quantify outputs; partial & + + + + +324 + + + + + + + + + + + + non-implementation of planned activities and delayed submission of performance reports; under absorption of funds worth UGX. 1,890,511,130 that were eventually swept back to consolidated fund account at end of financial year; under performance of NTR worth UGX. 341,038,789 The district has outstanding unrecovered YLP and UWEP advances worth UGX. 1,164,605,343 +04. Jinja MC Opinion: Unqualified  I noted a number of anomalies during review of the municipal pension & salary payrolls such as; Failure to submit wage estimates to MoPs, failure to utilize wage funds of UGX.0.5Bn; unpaid salaries and pension arrears of UGX 484,546,138; Underpayment of salaries to staff worth UGX 2,179,634; under payment of UGX.54,373,901 to pensioners; over payment of gratuity worth UGX 34,302,808 to one pensioner arising from wrong computation; Underpayment of pensions worth UGX 49,155,207; nonpayment of a pensioner worth UGX 10,907,334 and payment of salaries worth UGX. 1,158,981 to two (02) staffs who were no longer in service Additionally, I observed that there was delayed access to payroll by eight (08) newly recruited/ transferred employees and thirty five (35) pensioners; failure to prepare monthly wage, pension and gratuity performance analysis report on payroll to MoPS; Net under remittance of payroll deductions worth UGX. 42,851,131; payment of a staff and a pensioner worth UGX 13,515,274 off the IPPS and payment to 03 employees worth UGX. 6,202,537 without signed pay change reports. I noted a number of issues in the implementation of the approved budget such as; Failure to Quantify outputs; delayed submission of performance reports; under absorption of funds worth UGX 2,361,255,255 that were eventually swept back to consolidated fund account at end of financial year; under performance of NTR & transfers from other Government Units worth UGX. 6,353,273,753 I noted that the entity had prepared a strategic plan but the National Planning Authority had not yet approved it at the time of audit The Municipal Council had outstanding payables of UGX 894,801,904 by the end of the year The Municipality mischarged UGX. 132,864,963 on wrong account codes other than those prescribed for salary, pension or gratuity. I noted underfunding of UGX. 41,469,000 from URF that affected the routine manual, mechanized and periodic road maintenance under force account mechanism. + + + + +325 + + + + + + + + + + + +  I noted that the Municipal Council had 12-road equipment of which two (02) were grounded and in need of major repairs. Additionally, I also observed that the Municipal lacked vital road equipment like a water bowser, a roller, chips spreader and a jet/pothole patcher. Under USMID, the Municipal Council had unspent balance of UGX 1,701,586,908, meant for road construction works and incomplete road works by the year end Under UgIFT, I noted that the construction works on Kimaka Health Centre III at a cost of UGX. 493,924,741 had stalled for over a year and the contractor had abandoned the site. The Municipal Council lacked land titles for 16 pieces measuring approximately over 34.265 hectares which exposed the land to possible loss and encroachment. I noted that Council was involved in 13 ongoing court cases which could lead to possible loss of funds. +05. Kaliro DLG Opinion: Unqualified  I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, failure to utilize wage funds of UGX.0.4Bn; Underpayment of salaries to staff worth UGX. 24,360,137; under payment of UGX. 44,242,332 to pensioners and payment of salaries worth UGX. 2,246,579 to 5 staffs who were no longer in service Additionally, I observed that there was delayed access to payroll by fifty-one (51) newly recruited/transferred employees and 03 pensioners; un-deducted PAYE from political leaders’ gratuity resulting in unpaid tax of UGX. 8,194,860. I noted a number of issues in the implementation of the approved budget such as; Failure to Quantify outputs; delayed submission of performance reports; under absorption of funds worth UGX. 1,575,930,542 that were eventually swept back to consolidated fund account at end of financial year; under performance of NTR & transfers from other Government Units worth UGX. 288,478,184. I noted that the district had outstanding receivables of UGX. 1,240,015,837 at year end that had not been collected There was delayed physical progress of the works at Buyinda health centre, Kasokwe Health Centre and Bukamba Seed Secondary School. This was attributed to effects of Covid-19 pandemic. I noted that Kaliro DLG did not have land titles for 38 pieces of land measuring approximately 283.25 acres. +06. Kamuli MC  I noted a number of anomalies during review of the Municipal + + + + +326 + + + + + + + + + + + + Opinion: Unqualified pension & salary payrolls such as; Failure to submit wage estimates to MoPs, failure to utilize wage funds of UGX.0.4Bn; Underpayment of salaries to staff worth UGX 17,301,287; overpayment to 239 staff worth UGX 12,549,285 under payment of gratuity worth UGX. 8,102,108 to pensioners; payment of salaries worth UGX. 5,528,605 to 2 staffs who were no longer in service; over and under remittance of salary deductions amounting to UGX 1,392,544 and UGX 30,126,523 Additionally, I observed that there was delayed access to payroll by 25 newly recruited/ transferred employees and 05 pensioners; un-deducted PAYE from political leaders’ gratuity resulting in unpaid tax of UGX. 2,026,660; Unauthorized payroll deductions worth UGX 156,349,689 relating to 84 without letters of undertaking; over deductions payments worth UGX. 2,876,352 and paid 03 staff and 07 politicians were worth UGX 14,156,592 off the IPPS I noted a number of issues in the implementation of the approved budget such as; Failure to Quantify outputs; delayed submission of performance reports; inaccurate reporting of performance; under absorption of funds worth UGX 9,850,625,641 that were eventually swept back to consolidated fund account at end of financial year; under performance of NTR & transfers from other Government Units worth UGX. 609,177,435 I noted that the Municipal Council had outstanding receivables of UGX 592,620,187 that had not been recovered by year end. I noted that the entity had prepared a strategic plan but the National Planning Authority had not yet approved it at the time of audit. Failure to quantify outputs, partial or non-implementation of activities not quantified late submission of quarterly reports and. The Municipal Council had unspent funds under the USMID grant worth UGX. 9,421,230,865, which was subsequently swept back to the Consolidated Fund. Additionally, that the road construction works did not take off in the financial year under review. I noted that the construction works of two classroom blocks and water borne toilet at Busoga High School at UGX. 309,872,760 were incomplete. The Municipal Council lacked land titles for 11 pieces which exposed the land to loss and encroachment. +07. Mayuge DLG Opinion: Unqualified  I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, failure to utilize wage funds of UGX.1.2Bn; I also noted that there was an under payment of salaries and + + + + +327 + + + + + + + + + + + + pensions worth UGX. 1,193,840,180; Unpaid salaries worth UGX. 14,134,729; over payments of UGX. 17,722,575 to pensioners; 71 staff were paid using wrong salary scales, leading to monthly over payments of UGX. 1,177,702 and under payments of UGX. 1,257,209 respectively; nine (09) employees and fifteen (15) pensioners failed to access the payroll during the year; under remittance of salary deductions worth UGX. 45,320,114 Additionally, I observed that there was delayed access to payroll by one hundred nine (109) newly recruited/ transferred employees and sixteen (16) pensioners; un-deducted PAYE from political leaders’ gratuity resulting in unpaid tax of UGX. 13,865,233; Unauthorized loan deductions worth UGX. 52,171,779 relating to 59 employees due to absence of Letters of undertaking; over deductions payments worth UGX. 2,876,352 and Paid 07 employees and 09 pensioners worth UGX. 89,285,252 off the IPPS I noted a number of issues in the implementation of the approved budget such as; Failure to Quantify outputs; delayed submission of performance reports; inaccurate reporting of performance; under absorption of funds worth UGX 2,017,223,134 that were eventually swept back to consolidated fund account at end of financial year; under performance of NTR & transfers from other Government Units worth UGX. 1,017,773,209 and delayed completion for the construction of Bukatube health and Nkombe Health Centre III I noted that the district had outstanding receivables of UGX. 1,559,419,200 by year end The Mayuge District had outstanding pension liabilities of UGX. 1,251,580,052 by the end of the year. I noted that Mayuge District received off-budget financing to a tune of UGX 58,291,066 directly from Ministry of Local Governments for undertaking activities which were never declared to the PS/ST. I noted that there is illegal mining of sand being carried out at the district lakeshores. The Accounting Officer explained that management had written to the prospective stakeholders in the sand mining activities giving guidance on the sustainable way of carrying out the activity including closure of some of the sand mines. I noted that Mayuge DLG did not have land titles for 33 pieces of land measuring approximately 1430.761 Ha. +08. Lugazi MCOpinion Unqualified  I noted a number of anomalies during review of the Municipal pension & salary payrolls such as; Failure to submit wage estimates to MoPs, failure to utilize wage funds of UGX.0.4Bn; I also noted that there was an under payment of salaries worth UGX. 8,183,158; Unpaid salaries worth UGX. 34,305,160; Under + + + + +328 + + + + + + + + + + + + payments of UGX. 321,560,027 to pensioners; over payments of UGX. 7,263,946 and under payments of UGX. 1,360,106 arising from use of wrong bands; over and under remittance of salary deduction worth UGX. 2,697,535 and UGX. 35,487,023 respectively Additionally, I observed that there was delayed access to payroll by 14 newly recruited/ transferred employees and thirteen (13) pensioners; un-deducted PAYE from political leaders’ gratuity resulting in unpaid tax of UGX. 3,289,681; Unauthorized loan deductions worth UGX. 565,433,218 relating to 500 employees due to absence of Letters of undertaking; over deductions payments worth UGX. 2,876,352 and paid 15 staff and 10 pensioners a total of UGX. 27,696,793 off the IPPS I noted a number of issues in the implementation of the approved budget such as; Failure to Quantify outputs; delayed submission of performance reports; under absorption of funds worth UGX 14,415,862,633 that were eventually swept back to consolidated fund account at end of financial year I noted that the Municipal Council had outstanding receivables of UGX. 1,973,054,521 by the year end that remained unrecovered Under absorption of funds worth UGX. 14,177,800,402 under the USMID program that was eventually swept back to the consolidated fund. I noted under performance of funds worth UGX 17,916,865 from Uganda Road Fund meant for road maintenance in the municipality. I noted that Council was involved in 06 ongoing court cases +09. Namayingo DLG Opinion: Unqualified  I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, failure to utilize wage funds of UGX.0.72Bn; Unpaid salaries and pensions worth UGX. 49,235,421; under payments of UGX. 129,040,476 to pensioners; over and under payment of salaries worth UGX. 14,206,136 and UGX. 4,684,855 respectively due to use of wrong salary scales Additionally, I noted there was un-deduction of PAYE from political leaders’ gratuity resulting in unpaid tax of UGX. 9,992,741; Unauthorized loan deductions worth UGX. 702,716,508 relating to 458 employees due to absence of Letters of undertaking; paid 33 staff and 16 pensioners a total of UGX. 38,434,320 off the IPPS I observed that twenty-four (24) newly recruited/transferred employees and ten (10) pensioners delayed to access payroll; four (04) employees & seventeen (17) pensioners had not yet accessed the payroll by the close of the financial year and + + + + +329 + + + + + + + + + + + + payment of 5 employees who were no longer in service I noted a number of issues in the implementation of the approved budget such as; Failure to quantify outputs; partial and non-implementation of planned activities delayed submission of performance reports; under absorption of funds worth UGX. 1,299,253,676 that were eventually swept back to consolidated fund account at end of financial year and under performance of revenues worth UGX. 896,645,767 The District mischarged funds worth UGX. 5,057,686 on account codes other than those prescribed for salary, pension and gratuity. Further, the District did not prepare monthly wage, pension and gratuity performance analysis and thus did not submit quarterly returns on payroll to MoPS, I noted that the district had outstanding receivables of UGX. 1,063,954,752 that had not been recovered. There was a delay in the physical progress of works at Bukana health centre III and Syanyonja Health centre. I noted that Namayingo DLG did not have land titles for 113 pieces of land measuring approximately 357.3 hectares and 09 pieces of land were in the process of being titled. +10. Bugweri DLGOpinion Unqualified  I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, failure to utilize wage funds of UGX.0.38Bn; Unpaid pensions worth UGX. 110,127,127; Over payments of UGX. 3,000,000 to pensioners; over and under payment of salaries worth 9,273,543 and UGX. 4,410,477 respectively due to use of wrong bands Additionally, I noted there was un-deduction of PAYE from political leaders’ gratuity resulting in unpaid tax of UGX. 1,040,880; paid 23 staff and 15 pensioners were paid a total of UGX. 33,868,147 and UGX. 190,371,130 off the IPPS; over and under remittances of pay roll deductions of UGX. 532,326,787 and UGX. 31,529,271 respectively; Payment of UGX.35,780,089 to 09 employees who were no longer in service; wrong computation of gratuity benefits of 01 pensioner (TAJJUBA STEPHEN 417573) that resulted into an over payment of gratuity by UGX. 26, 936,170. I observed that 22 newly recruited employees and 15 pensioners delayed to access the pension payroll and the district did not prepare monthly wage, pension and gratuity performance analysis and thus did not submit quarterly returns on payroll to MoPS + + + + +330 + + + + + + + + + + + +  I noted a number of issues in the implementation of the approved budget such as; Failure to quantify outputs; partial and non-implementation of planned activities delayed submission of performance reports; under absorption of funds worth UGX. 944,877,155 that were eventually swept back to consolidated fund account at end of financial year and under performance of revenues worth UGX. 6,114,158,151 I noted that the District had outstanding receivables worth UGX. 499,741,444 that was not yet recovered. I noted that the district had prepared a draft strategic plan but it had not yet been approved by the National Planning Authority. I noted that Bugweri District received off-budget financing to a tune of UGX. 860,199,000 without seeking approval. I noted that funds to the tune of UGX. 129,996,921 were misclassified. I noted that the District lacked land titles for 31 pieces of land measuring approximately 179 acres including schools, sub counties and health centers. Bugweri district received a sum of UGX. 155,136,081 for (06) secondary schools and (54) primary schools meant for the procurement of learning materials in March, 2021 but disbursed only UGX. 136,182,515 to the respective schools on 4 th June, 2021 leaving an outstanding amount of UGX. 18,953,562 which remained unaccounted for. I noted that expenditure totaling UGX. 374,878,394 lacked adequate supporting documentation at the close of the financial year +11. Bugiri Municipal CouncilOpinion Unqualified  I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, failure to utilize wage funds of UGX.0.53Bn and over payment of salaries worth UGX. 4,618,049 due to use of wrong bands Additionally, I observed that there was delayed access to payroll by 11 employees on the salary payroll and 03 pensioners on the pension pay roll; over and underpayment of salaries worth UGX. 5,020,000 UGX. 1,353,000; paid 15 staff and 03 pensioners were paid a total of UGX. 58,059,084 off the IPPS and paid five (5) employees a total of UGX. 29,073,390 without signed pay change reports I noted a number of issues in the implementation of the approved budget such as; Failure to quantify outputs; partial and non-implementation of planned activities delayed submission of performance reports; under absorption of funds worth UGX. 568,033,989 that were eventually swept back to consolidated + + + + +331 + + + + + + + + + + + + fund account at end of financial year and under performance of revenues worth UGX. 334,420,647. I noted that funds to the tune of UGX. 33,234,682 were paid on the wrong account codes. I noted that the Council had outstanding receivables of UGX. 585,573,492. That remained unrecovered by year end I noted that the entity’s NDP-III was still in draft form and had not had its Strategic plan approved by NPA at the time of audit. Road maintenance works was affected by budget shortfalls for funds worth GX 63,409,282 from URF. I noted that expenditure totaling UGX. 37,580,848 advanced to staff and various suppliers to carry out activities lacked adequate supporting documents. I noted that the Council lacked land titles for 07 pieces of its land. +12. Kamuli DLGOpinion Unqualified  I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, failure to utilize wage funds of UGX.1.3Bn; Unpaid pensions worth UGX. 129,711,499; Under payments of UGX. 789,022,349 to pensioners; under payment of salaries worth UGX. 16,604,611 and nonpayment of salaries worth UGX. 13,045,994 Additionally, I observed that there was delayed access to payroll by 25 newly recruited/ transferred employees and 14 pensioners; un-deducted PAYE from political leaders’ gratuity resulting in unpaid tax of UGX.13,801,906; Unauthorized loan deductions worth UGX. 179,141,809 due to absence of Letters of undertaking; over/ under remittance of salary deductions worth UGX. 2,758,277 and paid UGX.5, 049,620 to 13 staff who had retired, transferred, absconded or died. I noted that Kamuli District had outstanding receivables figure of UGX. 1,309,756,172 that remained unrecovered by year end. I noted, the entity did not have an approved strategic plan that is aligned to the NDP-III at the time of audit. I noted a number of issues in the implementation of the approved budget such as; Failure to quantify outputs; partial and non-implementation of planned activities delayed submission of performance reports; under absorption of funds worth UGX. 3,884,528,244 that was eventually swept back to consolidated fund account at end of financial year and under performance of revenues worth UGX. 1,734,443,308 I noted that Kamuli District received off-budget financing to a + + + + +332 + + + + + + + + + + + + tune of UGX. 185,243,153 directly from Ministry of Health (MoH) and Marie topes for undertaking activities which was never declared to the PSST and as such no supplementary appropriation was issued as guided by the PSST. I noted that the District lacked land titles for 194 pieces of land measuring approximately 546 acres including schools and health centers. I noted delays in the construction works on Kitayunjwa seed secondary school and construction works of seed secondary schools at Nabwigulu and Kagumba did not take off in the financial year under review and the funds were swept back to treasury. I noted at the time of inspection on 25th August, 2021 that science kits and chemicals that were delivered for Kitayunjwa Seed School were still in the district stores. I observed that works at Kagumba HC II were still ongoing and the works progress was behind Under URF, There was underfunding of UGX 49,538,044 under URF for road maintenance +13. Jinja RRHOpinion Unqualified  I noted a number of anomalies during review of the Hospital pension & salary payrolls such as; Failure to submit wage estimates to MoPs, failure to utilize wage funds of UGX.1.7Bn; over payment of gratuity worth UGX. 12,702,466 resulting from wrong computations; under payments of pension and gratuity of UGX. 393,563,387; under payment of salaries worth UGX. 43,160,618 and nonpayment of salaries worth UGX. 5,193,740 to eight employees; 14 pensioners were paid a total of UGX. 622,229,852 off the IPPS; twenty two (22) pensioners delayed to access the pension payroll; paid 4 employees who had retired worth UGX. 6,149,095 and under remittance of pay roll deductions amounting to UGX. 39,740,732 The Hospital had payables of UGX. 1,184,835,800 for payment of utilities, pension and gratuity. I noted that the entity did not have an approved strategic plan that was aligned to the NDP-III at the time of audit. I noted that the Referral Hospital received off-budget financing to a tune of UGX.1,482,640,867, which was not declared to treasury. Expenditure totaling UGX. 154,045,146 was misclassified through wrong coding The referral hospital received UGX. 581,089,500 as covid 19 funds. Out of which UGX. 385,881,400 was utilized but UGX.30, 585,000 lacked adequate supporting documentation at the close + + + + +333 + + + + + + + + + + + + of the financial year. Further, I observed there was unspent balance of UGX. 195,208,100 I noted that NTR totaling to UGX.74, 272,140 was spent at source contrary to regulations Jinja RRH made Payments totaling UGX.41, 914,100 for clearing domestic arrears lacked appropriate supporting documents, UGX.76, 523,500 paid to M/S Rodek Enterprises Ltd towards settlement of outstanding bills for cleaning services of the hospital had not been cleared by Ernst and Young. The hospital received off-budget financing from the Ministry of health amounting to UGX. 1,482,640,867. I noted that the hospital commenced construction of a storey staff house on 15 th /04/2019 with an intended completion date of 14 th /10/2021 at a contract price of UGX. 3,205,111,734 but was noted to be incomplete to date, with outstanding advance payment of UGX. 73,337,302 to the contractor. Expenditures worth UGX. 166,012,755 lacked adequate supporting documents The Hospital had stock outs of Essential medicines for supportive treatment of Covid-19 during the year with an average stock out period of more than a month. Several drugs that expired during the year had not yet been removed from the shelves as required. I observed that the hospital did not carry out regular maintenance of the available medical equipment. I noted that the Hospital did not have land titles for 5 pieces of land measuring approximately 46.7 acres. I noted that some of the buildings in the hospital were in a dilapidated state while other blocks accommodating nurses were not fit for accommodation due to their dilapidated state and there was lack of hygiene facilities such as latrines and bathrooms. +14. Bugiri DA Unqualified Opinion  I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, failure to utilize wage funds of UGX.0.017Bn; un-deducted PAYE from political leaders’ gratuity resulting in unpaid tax of UGX.13,100,078 Additionally, 68 newly recruited/ transferred employees and 04 pensioners delayed to access the payroll; paid 7 employees who were no longer in service worth UGX. 4,090,197; Unpaid salaries worth UGX. 6,074,121; underpayment and overpayment of pensions & gratuity worth UGX. 26,897,618 and UGX. 13,600,648 respectively and the district made unauthorized loan deductions from 49 employees worth UGX. 150,566,095 + + + + +334 + + + + + + + + + + + +  I noted that Bugiri District had outstanding receivables of UGX. 1,140,326,136 that had remained unrecovered Payables of UGX. 30,517,114 remained unsettled by year end I noted that the entity had prepared a draft Strategic plan but had not yet been approved by NPA at the time of audit. I noted a number of issues in the implementation of the approved budget such as; Failure to quantify outputs; partial and non-implementation of planned activities delayed submission of performance reports; under absorption of funds worth UGX. UGX. 422,963,116 that was eventually swept back to consolidated fund account at end of financial year and under performance of revenues worth UGX. 3,550,589,111 I noted that funds to the tune of UGX. 172,737,949 were irregularly diverted from the activities on which they were budgeted and spent on other activities without seeking and obtaining the necessary approvals. I noted that construction works for Budhaya Seed secondary school did not take off Underfunding worth UGX 24,751,000 was noted for URF meant for road maintenance I noted that the District lacked land titles for 16 pieces of land measuring approximately 106.7 acres including schools, sub counties and health centers. Bugiri district received a sum of UGX. 204,224,148 for (08) secondary schools and (140) primary schools meant for the procurement of learning materials. I noted that (47) schools had irregularly utilized the funds totaling to UGX. 50,639,930 without proper guidance, (58) schools had not utilized the funds, while bank statements as at end of October 2021 for (43) schools were not presented to enable establishment of whether the funds had been utilized without proper guidance or not. +15. Njeru MCOpinion Unqualified  I noted a number of anomalies during review of the Municipal pension & salary payrolls such as; Failure to submit wage estimates to MoPs, failure to utilize wage funds of UGX.0.31Bn; Under and overpayment of salaries worth UGX. 8,321,986 and UGX. 31,890,939 respectively; under payments of pensions worth UGX. 4,693,227; paid 12 staff a total of UGX. 13,933,412 off the IPPS; the Municipal Council did not prepare monthly wage, pension and gratuity performance analysis for submission to MoPS and Paid UGX. 6,413,424 to 05 staff who were no longer in service Additionally, I noted that 18 newly recruited/ transferred employees and 08 pensioners delayed to access the pension + + + + +335 + + + + + + + + + + + + payroll and 01 pensioner had never accessed the payroll; 15 employees were paid a total of UGX. 16,677,139 without signed pay change reports; over and under payment of thirteen (13) pensioners worth UGX. 34,733,352 and UGX. 24,197,298 respectively arising from wrong computation of gratuity benefits The municipality paid 322 employees using the wrong bands, leading to monthly over payments of UGX. 7,147,390 and under payments of UGX. 2,837,275 The Municipal Council made unauthorized loan deductions totaling UGX. 14,734,700 from 19 employees that lacked evidence of signing letters of undertaking The Municipal Council had outstanding unrecovered funds (receivables) of UGX. 891,306,154 by close of financial year I noted that the Municipal Council had prepared but had not had the strategic plan approved and aligned to the NDP-III at the time of audit I noted a number of issues in the implementation of the approved budget such as; Failure to quantify outputs; partial and non-implementation of planned activities delayed submission of performance reports; under absorption of funds worth UGX. 1,815,926,807 that was eventually swept back to consolidated fund account at end of financial year and under performance of revenues worth UGX. 2,234,326,614 URF underfunding of UGX. 86,246,400 meant for road maintenance was noted Njeru MC received a sum of UGX. 84,619,384 for (48) primary and secondary schools meant for the procurement of learning materials in March, 2021 and disbursed UGX. 84,619,384 (100%) to (48) schools on 28th June, 2021. However, the various school’s bank statements had not been availed for review at the time of audit I noted that the Municipal Council did not have land titles for 12 out of 22 pieces of land including schools and health centers +16. Iganga DLGOpinion Unqualified  I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, failure to utilize wage funds of UGX.1.07Bn; under payment of salaries worth UGX. 32,546,140; non- payments of pensioners worth UGX. 80,485,339; paid 16 staff using wrong bands, leading to monthly over payments of UGX. 287,429 and under payments of UGX. 526,840; paid UGX. 4,349,175 to 07 staff who had retired, transferred or absconded; over and under remittance of salary deductions worth UGX. 7,428,040 and UGX. 42,133,941 respectively Additionally, I noted that there was Un-deducted PAYE from + + + + +336 + + + + + + + + + + + + political leaders’ gratuity resulting in unpaid tax of UGX.10,059,827; 32 pensioners delayed to access the pension payroll and 19 pensioners had never accessed the payroll and therefore not paid; 55 employees were paid a total of UGX. 30 million without signed pay change reports and 73 employees and 34 pensioners were paid a total of UGX. 1,166,247,120 off the IPPS The district had outstanding unrecovered funds (receivables) of UGX. 1,705,945,185 by the end of the period I noted that the district was engrossed in a number of court cases estimated at UGX. 3,832,685,041 I noted a number of issues in the implementation of the approved budget such as; Failure to quantify outputs; partial and non-implementation of planned activities delayed submission of performance reports; under absorption of funds worth UGX. 2,137,465,419 that was eventually swept back to consolidated fund account at end of financial year and under performance of revenues worth UGX. 9,278,908,203 I noted that the entity had not prepared and approved a strategic plan that is aligned to the NDP-III I noted that the District had 04 pieces of land that were not titled as well as 33 pieces of land under its supervision that were also not titled There was URF underfunding of UGX 57,904,000 meant for road maintenance that affected road roads in the district. +17. Luuka DLGOpinion Unqualified  I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, failure to utilize wage funds of UGX.1.60Bn; under payment of salaries UGX. 33,624,349 The District had with payments leading to over and over payments of UGX. 188,313272 due to wrong computation; underpayments of UGX. 39,314,543 to 32 pensioners resulting from wrong computation of gratuity benefits; made over and under payments of UGX. 16,741,697 and UGX. 8,347,743 respectively due to use of wrong salary bands Paid UGX. 21,149,890 to 10 staff, who had retired, transferred, absconded or died; under remitted salary deductions worth UGX. 319,599,269; the District made unauthorized loan deductions totaling UGX. 158,654,625 from 115 employees; Un-deducted PAYE from political leaders’ gratuity resulting in unpaid tax of UGX. 2,659,020 and under payment of pensioners worth UGX. 485,724,648 Additionally, I noted that 41 newly recruited/ transferred employees and 19 pensioners delayed to access payroll; 47 + + + + +337 + + + + + + + + + + + + employees were paid a total of UGX. 215,642,700 without signed pay change reports; the District did not prepare monthly wage, pension and gratuity performance analysis and thus did not submit quarterly returns on payroll to MoPS; I noted that 21 staff and 01 pensioner were paid a total of UGX. 37,733,743 off the IPPS The district mischarged funds worth UGX. 40,695,963 on account codes other than those prescribed for salary, pension and gratuity I noted the district had outstanding unrecovered receivables of UGX. 885,992,084 by the year end. I noted that the Council was engrossed in 03 court cases with individuals which could lead to possible loss of funds I noted that the entity had prepared but not had the strategic plan approved and aligned to the NDP-III at the time of audit I noted a number of issues in the implementation of the approved budget such as; Failure to quantify outputs; partial and non-implementation of planned activities delayed submission of performance reports; under absorption of funds worth UGX. 652,127,207 that was eventually swept back to consolidated fund account at end of financial year and under performance of revenues worth UGX.673,814,209 The District commenced construction works on Ikumbya seed secondary school under the Education Sector in the FY 2018/2019. At the time of inspection on 28th October, 2021, I observed that works were still ongoing at 87% progress, with all structures yet to be properly floored, with partial painting, no glasses, no roofing of latrine and the compound yet to be cleared and set Luuka DLG budgeted for and received UGX. 344,284,000 for the initial stages of the construction of Buwanda Seed Secondary in the FY 2020/2021. However, construction works did not take off in the financial year under review and the funds were swept back to treasury Luuka DLG received a sum of UGX. 217,156,943 for 89 primary schools and 8 secondary schools meant for the procurement of learning materials on 1st April, 2021 and disbursed UGX. 136,640,827 (63%) to 53 primary schools and 5 secondary schools on 28th June, 2021. UGX. 80,516,116 was not disbursed by the district. However, the respective school bank statement and receipts had not been availed for review at the time of audit, and as such, I could not establish whether the funds were still on the accounts +18. Iganga MC  I noted a number of anomalies during review of the Municipal pension & salary payrolls such as; Failure to submit wage + + + + +338 + + + + + + + + + + + + Opinion Unqualified estimates to MoPs, failure to utilize wage funds of UGX.0.23Bn; under payment of salaries worth UGX. 119,289,474; irregularly paid one staff who had retired UGX. 1,971,915; over remittance of payroll deductions worth UGX.10,164,672 Additionally, the Municipal Council did not prepare monthly wage, pension and gratuity performance analysis and thus did not submit quarterly returns on payroll to MoPS; 22 staff were paid a total of UGX. 37,734,317 off the IPPS; 15 employees were paid a total of UGX.7.9 million without signed pay change reports; 03 newly recruited/transferred employees and 6 pensioners delayed to access payroll; Un-deducted PAYE from political leaders’ gratuity resulting in unpaid tax of UGX. 2,607,660 I noted that the verification forms and copies of the verification cards for all employees and pensioners/beneficiaries were not on the respective personal files The Municipal Council had outstanding receivables of UGX. 1,705,945,185 that had not been recovered by year end. Municipal Council had outstanding payables of UGX. 650,570,897 unsettled by year I noted that the Municipal Council had not prepared and approved a strategic plan that is aligned to the NDP-III at the time of audit I noted a number of issues in the implementation of the approved budget such as; Failure to quantify outputs; partial and non-implementation of planned activities delayed submission of performance reports; under performance of revenues worth UGX. 801,240,396 Noted URF underfunding of UGX 24,821,498 that affected road maintenance at the Municipality Iganga Municipal Council did not have land titles for 15 of the 25 pieces of land with some land files deemed missing (Bupala land). + Branch Kampala Summary of Key Findings +01. Buikwe DLGOpinion Unqualified  I noted a number of anomalies during review of the district pension & salary payrolls such as; Over payment of salary to 7 staffs worth UGX. 6,542,796; Underpayment of salaries to 24 employees worth UGX. 20,560,692; payment of salaries worth UGX 4,697,808 to two (2) staffs that was no longer in service and irregular deduction of loan instalments worth UGX. 56,120,313 for 23 employees. Additionally, I observed that there was delayed access to payroll by ten (10) new employees; un-deducted PAYE from political leaders’ gratuity resulting in unpaid tax of UGX. 10,214,875; and unpaid pension and gratuity worth UGX. 95,481,460 + + + + +339 + + + + + + + + + + + +  I noted a number of issues in the implementation of the approved budget such as; under absorption of funds worth UGX.1.11Bn that was swept back to consolidated fund account and under performance of the releases from government worth UGX.2,590,769,685; The district mischarged expenditure worth UGX. 55,352,971 on wrong budget lines The district had unrecovered funds worth UGX. 597,864,391 from YLP and UWEP groups. I noted off budget funding worth UGX.1,460,725,115 received for Result Based Financing (RBF) from the ministry of Finance. I also noted that the original copy of the title for Plot 18 Kyaggwe block 564, land at Nansagazi landing site measuring 7.06 hectares was missing from the safe. +02. Buvuma DLGOpinion Unqualified  I noted a number of anomalies during review of the district pension & salary payrolls such as; Over payment of salaries worth UGX. UGX.1,243,832; Underpayment of salaries worth UGX. UGX.1,667,474; Wrong computation of gratuity for four (4) pensioners worth UGX.2,382,045 and UGX.1,325,359 respectively; under remittance of employee’s salary deductions worth UGX.139,719,468; unpaid salaries worth UGX. 0.883 Bn and delayed remittance of deductions to UCLA/UBA worth UGX.224 million Additionally, I observed that there was delayed access to payroll by twenty (20) new employees and two (2) pensioners; un- deducted PAYE from political leaders’ gratuity resulting in unpaid tax of UGX.18,624,938 and payment of one (1) pensioner worth UGX.10,519,628 off the IPPS. I noted a number of issues in the implementation of the approved budget such as; partial implementation of planned activities; under absorption of funds worth UGX. 0.888 Bn; under performance of the releases from other government units worth UGX.1,004,434; delayed submission of quarterly monitoring reports to OPM & MoFPED and late submission of performance reports The district mischarged expenditure worth UGX.31,344,359 on wrong budget I noted unrecovered funds of YLP and UWEP worth UGX.426,197,440 and UGX.161,592,376 respectively +03. ENTEBBE MC Opinion  I noted a number of anomalies during review of the Municipal pension & salary payrolls such as; Over payment of salaries + + + + +340 + + + + + + + + + + + + Unqualified worth UGX.5,237,820; payment of salaries worth UGX.2,734,481 to three (03) staffs that were no longer in service; over and under remittance of salaries worth UGX17,579,629 and UGX,8,495,808 respectively Additionally, I observed that there was delayed access to payroll by ten (10) pensioners and un-deducted PAYE from political leaders’ gratuity resulting in unpaid tax of UGX,2,607,660 The MC had outstanding receivables totaling to UGX.1, 280,357,120 for YLP, UWEP and uncollected local revenue. Municipal Council outstanding commitments of UGX 170,801,502 by close of the financial year I noted a number of issues in the implementation of the approved budget such as; under absorption of funds worth UGX. 5,594,339,871; under performance of the donor worth UGX 80,040,000 & shortfalls in local revenue worth UGX.3,507,045,896; I noted that there was an over commitment by the Municipal council of funds worth UGX. 6,503,237,230 under the USMID project through and agreement signed with M/s China Wu Yi Co. Ltd on the 21 st April 2021. +04. Luwero DLGOpinion Unqualified  I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, Over payment of salary worth UGX.150 million; unpaid salaries worth UGX.1.254 Bn and under/over remittance of employee salaries worth UGX.165,627,734 and UGX.37,026,373 respectively The district did not have an approved strategic plan that is aligned to the NDP-III at the time of audit. Additionally, I observed that there was delayed access to payroll by thirty-eight (38) new/transferred employees and twenty- two (22) pensioners and un-deducted PAYE from political leaders’ gratuity resulting in unpaid tax of UGX.15,523,074 I noted a number of issues in the implementation of the approved budget such as; under performance worth UGX. 1,317,898,459; incomplete works at Katikamu Seed Secondary School and under absorption of funds worth UGX.1.256 Bn The district received off-budget financing worth UGX.1,002,619,377 directly from Ministry of Health under Result Based Financing Programme (RBF) The district mischarged expenditure worth UGX.8,575,441 on wrong budget lines.  + + + + +341 + + + + + + + + + + + +05. MITYANA DLGOpinion Unqualified  I noted a number of anomalies during review of the district pension & salary payrolls such as; Over payment of salaries worth UGX.2,992,554; Wrong computation of gratuity worth net overpayment of UGX. 2,271,141; payment of salaries worth UGX.4,057,892 to ten (10) staffs that were no longer in service; irregular deduction of loan instalments for three (3) staff worth UGX. 1,085,168; over and under remittance of employees’ salaries worth UGX. 9,347,419 and UGX.52,480,527 respectively and payroll deductions to UCLA/UBA worth UGX. 10,193,805 Additionally, I observed that there was delayed access to payroll by thirty (30) new employees and sixteen (16) pensioners; un- deducted PAYE from political leaders’ gratuity resulting in unpaid tax of UGX. 12,460, 278 and unremitted PAYE worth UGX.41,763,487 Failure to remit local government revenue worth UGX.49,502,388 to LLGs The district did not have an approved strategic plan that is aligned to the NDP-III at the time of audit. I noted issues such as incomplete works and under absorption of funds worth UGX.0.7 Bn in the implementation of the approved budget. The district lacked a title of land where the health Centre is being constructed. +06. Mukono DLGOpinion Unqualified  I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, Over payment of pensioners/employees worth UGX2,503,100 and UGX. 5,442,660 respectively. Underpayment worth UGX. 4,860,118; payment of salaries worth UGX.6,175,829 to nine (9) staffs that was no longer in service and irregular deduction of loan instalments for five (5) staff worth 3,165,094 Additionally, I observed that there was delayed access to payroll by fourteen (14) new employees and fourteen (14) pensioners; failure to utilize wage funds of UGX.0.1 billion; un-deducted PAYE from political leaders’ gratuity resulting in unpaid tax of UGX. 12,104,504 and payment of five (5) staffs and three (3) pensioners worth UGX.9,195,665 off the IPPS; over/ under remittance of employee’s salary deductions worth UGX. 2,345,800 and UGX. 97,808,530 respectively. I noted that 14 employees were paid a total of UGX. 2,875,407 without signed pay change reports. I noted a number of issues in the implementation of the approved budget such as; incomplete works at Mukono General + + + + +342 + + + + + + + + + + + + Hospital and Kimenyedde Seed Secondary School; under absorption of funds worth UGX.0.4bn that was swept back to consolidated fund account and under performance worth UGX.1, 909251149; +07. MUKONO MCOpinion Unqualified  I noted a number of anomalies during review of the Municipal pension & salary payrolls such as; Failure to submit wage estimates to MoPs, payment of salaries worth UGX 11.1M to nine (9) staffs that was no longer in service and unpaid pension worth UGX.106.9M Additionally, I observed that there was delayed access to payroll by four (4) new employees and seven (7) pensioners; un- deducted PAYE from political leaders’ gratuity resulting in unpaid tax of UGX 2.6M and payment of fifty-four (54) staffs and one (1) pensioner worth UGX 60.5M off the IPPS The Municipal Council did not have an approved strategic plan that is aligned to the NDP-III at the time of audit. I noted an issue of under performance of the releases from other government units worth UGX.2,529,600,000; in the implementation of the approved budget +08. Nakaseke DLGOpinion Unqualified  I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit pension and gratuity estimates to MoPs, Underpayment of pension/gratuity worth UGX.104,392,407; irregular deduction of loan instalments of seven (7) employees worth UGX.7, 853,306; unpaid pension and gratuity worth UGX.77, 373,425; over and under remittance of employee salaries deductions worth UGX.51, 659,500 and UGX.3, 303,310 respectively and unpaid pension arrears worth UGX.245,882,164 The district had outstanding Payables worth UGX.467,701,993 and Receivables worth UGX.1,660,675,633 by close of financial year Additionally, I observed that there was delayed access to payroll by twenty-two (22) employees and twenty-five (25) pensioners; un-deducted PAYE from political leaders’ gratuity resulting in unpaid tax of 14, 265,549 and payment of two (2) pensioners worth UGX.6,199,129 and 1 staff worth UGX.26,750,870 off the IPPS I noted that Butalangu HCIII lacked laboratory, théâtre and maternity ward equipment I noted a number of issues in the implementation of the approved budget such as; shoddy works on roads- Kinyogoga- Kyabalongo- Kitindo 18.0Km and Kalagala- Kyamaweno- Kinyogoga 34km; incomplete works at Kalenge HC III and under absorption of funds worth UGX.0.3 billion that was swept back to consolidated fund account. + + + + +343 + + + + + + + + + + + +09. Nakasongola DistrictOpinion Unqualified  I noted a number of anomalies during review of the district pension & salary payrolls such as; under payment of pension worth UGX. UGX.1,510,120; Underpayment of salary worth UGX.13million; Wrong computation of gratuity worth net overpayment of two (2) pensioners worth UGX.20,784,707; payment of salaries worth UGX. 23,149,880 to eighteen (18) staffs that were no longer in service and irregular deduction of loan instalments worth UGX.307,637,65. Under remittance of salary deductions worth UGX.132,371,427 I noted that the district made payroll deductions of UGX.16 million, but did not remit to UCLA/UBA. I noted outstanding UWEP and YLP advances worth UGX.665,481,500 by year end Additionally, I observed that there was delayed access to payroll by eighteen (18) new employees and thirteen (13) pensioners and un-deducted PAYE from political leaders’ gratuity resulting in unpaid tax of UGX.12,011,160 The district had outstanding pension and gratuity arrears worth UGX.234,272,456 at year end. I noted a number of issues in the implementation of the approved budget such as; un implemented works at a Seed School; under absorption of funds worth UGX.0.6 billion and under performance of the releases from other government units worth 169 Mn;  +10. Nansana MCOpinion Unqualified  I noted a number of anomalies during review of the Municipal pension & salary payrolls such as; Over payment of salaries/pension worth UGX. 2,494,859 and UGX.24,488,037 respectively; Underpayment of pension worth UGX.11,791,871; and irregular deduction of loan instalments worth UGX.18,027,312. Un recovered UWEP/YLP funds of UGX.899,208,480 The Municipal Council did not have an approved strategic plan that is aligned to the NDP-III at the time of audit. Additionally, I observed that there was delayed access to payroll by three (3) new employees and nineteen (19) pensioners; un- deducted PAYE from political leaders’ gratuity resulting in unpaid tax of UGX. 3,122,640 I noted a number of issues in the implementation of the approved budget such as; shoddy works on the road construction; under absorption of funds worth UGX.0.278 billion that was swept back to consolidated fund account and under performance of the releases from other government units worth + + + + +344 + + + + + + + + + + + + UGX.534,603,597; Failure to prepare monthly wage, pension and gratuity performance analysis The Municipal Council reported receivables balance of UGX.1,780,766,221 The Municipal Council had outstanding payables of UGX. 87,603,199 by close of the financial year I noted that UGX.1,131,374,846 (103%) was spent on 2km reflecting over expenditure of UGX.51,408,546. The cost variations in projects planned works affects implementation of other maintenance activities. +11. Wakiso DistrictOpinion Unqualified  I noted a number of anomalies during review of the district pension & salary payrolls such as Underpayment of pension worth UGX.2, 010,117,938; payment of salaries worth UGX.5, 278,315 to five (5) staffs that was no longer in service; unpaid salaries UGX.8, 379,873 and accrued pension worth UGX.265,144,965 The outstanding payables for pension and gratuity worth UGX.2, 405,604,903 Additionally, I observed that there was delayed access to payroll by seventeen (17) pensioners; failure to utilize wage funds of UGX.0.7 Bn; un-deducted PAYE from political leaders’ gratuity resulting in unpaid tax of 14, 993,898 and payment eleven (11) pensioners worth UGX.303, 639,396 off the IPPS I noted a number of issues in the implementation of the approved budget such as; shoddy works at Nakitokolo HCIII; delayed works at Kasoozo HCIII; incomplete works at Wakiso Seed School; under absorption of funds worth UGX.1,108,628,816 that was swept back to consolidated fund account; under performance of the donor & releases from other government units worth UGX.6,616,905,830; +12. KIRA MCOpinion Unqualified  I noted a number of anomalies during review of the Municipal pension & salary payrolls such as; Failure to submit wage estimates to MoPs, Over payment of salary worth UGX. 12,367,380; Underpayment of salary worth UGX. 1,513,296; Wrong computation of gratuity worth net overpayment of UGX.23,863,854 and payment of salaries worth UGX 9,760,420 to nine (09) staffs that were no longer in service I noted Over remittance of salary deductions worth UGX. 36,961,624 I noted outstanding receivables worth of UGX. 3,171,846,861 Additionally, I observed that there was delayed access to payroll + + + + +345 + + + + + + + + + + + + by three (3) new employees and sixteen (16) pensioners; un- deducted PAYE from political leaders’ gratuity resulting in unpaid tax of UGX. 3,015,540 and payment worth UGX. 435,546,906 off the IPPS failure to prepare monthly wage, pension and gratuity performance analysis I noted a number of issues in the implementation of the approved budget such as; incomplete construction works; under absorption of funds worth UGX.0.16Bn that was swept back to consolidated fund account; under performance of the donor & releases from other government units worth UGX.3,402,046,314 and failure to submit quarterly monitoring reports to OPM & MoFPED I noted that the Municipal Council received off-budget financing worth UGX135,974,720 for Result Based Financing (RBF) from the Ministry of Health The district mischarged expenditure worth UGX. 20,821,532 on wrong budget lines. +13. MAKINDYE SABAGABO MCOpinion Unqualified  I noted a number of anomalies during review of the municipal pension & salary payrolls such as, Over payment of salary worth UGX. 8,992,140; Wrong computation of gratuity worth net underpayment of UGX. 9,709,876; payment of salaries worth UGX 20,892,893 to staffs that was no longer in service and irregular deduction of loan instalments worth UGX. 29,407,510. The Municipal Council reported payables worth UGX.532,235,004 at end the financial year The Municipal Council reported receivables worth UGX.750,391,890 The Municipal Council did not have an approved strategic plan that is aligned to the NDP-III at the time of audit. Additionally, I observed that there was delayed access to payroll by four (4) new employees and four (4) pensioners and un- deducted PAYE from political leaders’ gratuity resulting in unpaid tax of UGX.3,015,540 Un recovered UWEP/YLP funds worth UGX.459,332,075 I noted issues in the implementation of the approved budget such as; incomplete works on Mutundwe-Kisugula-Bunamwaya road; under absorption of funds worth UGX. 0.421 billion. and under performance of the releases from other government units worth UGX.6,801,993,716 The district mischarged expenditure worth UGX. 304,575,692 on wrong budget lines. + + + + +346 + + + + + + + + + + + +  A total of 19.1km at an estimated cost of UGX.70, 200,000 was planned to be undertaken. The audit revealed that 19.1 km were actually undertaken at a cost of UGX.152, 254,000 leading to an over expenditure of UGX. 82,054,000. I noted unrecovered funds from groups worth UGX.459,332,075 + Masaka Branch  Summary of Key Findings +01. Bukomansimbi DLGOpinion Unqualified  I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, Underpayment of salary worth UGX.13,134,104; payment of salaries worth UGX.5,195,665 to one (1) staff that was no longer in service; unpaid salary worth UGX.20,579,078; under payments of 5 pensioners worth UGX.1,133,789; under remittance of payroll deduction worth UGX.185,012,274; Amount worth UGX.10,081,159 wasn’t remitted to UCLA/UBA and amount worth UGX.175,148,725 had not been remitted to URA Additionally, I observed that there was delayed access to payroll by Sixteen (16) newly recruited/ transferred employees and Ten (10) pensioners; un-deducted PAYE from political leaders’ gratuity worth UGX.33,045,600, leading to an under deduction worth UGX.26,510,404 and payment of twenty (20) staffs worth UGX.4, 725,034 off the IPPS. I noted that the entity had prepared a strategic plan but the National Planning Authority had not yet approved it at the time of audit. I noted a number of issues in the implementation of the approved budget such as; the shortfalls in local revenue collections of UGX 9,848,129; Donor financing worth UGX. 759,350,373; under absorption of funds worth UGX.340,000,000 that was swept back to consolidated fund account; delayed submission of quarterly monitoring reports to OPM & MoFPED and Shoddy works in construction of classroom blocks The district lacked land title for land on which Bukango Seed Secondary School is situated. +02. Kalangala DLGOpinion Unqualified  I noted a number of anomalies during review of the district payroll such as; an unabsorbed balance of UGX 1.08 billion; an Over payment of salaries worth UGX 1,265,254, Underpayment of salaries of UGX.37, 719,627; Payment of salaries worth UGX. 1,480,155 to one (1) staff who had retired; under remittance of salary deductions worth UGX. 73,649,208 from employees’ salaries; Deductions worth UGX. 100,753,524 relating to 57 employees without letters of under taking; unremitted deduction to UCLA/UBA worth UGX.2, 210, 654. Additionally, I observed that the district did not remit deductions worth UGX.51,366,809 to URA; un-deducted PAYE from political + + + + +347 + + + + + + + + + + + + leaders’ gratuity worth UGX.51,416,102, leading to an under deduction worth UGX UGX.11,323,785; Delays in accessing pay roll and pension payroll; payment of salaries worth UGX.14,222,733 to Nine (9) staffs who were off IPPS; I noted that the entity had not prepared and approved its strategic plan by NPA and thus could not confirm if the plan is aligned to NDP 111 I noted a number of issues in the implementation of the approved budget such as; Failure to quantify outputs; partial and non-implementation of planned activities delayed submission of performance reports; under performance of revenues worth UGX.867,111,016 and under absorption of funds worth UGX.675,040,597 that was swept back to consolidated fund account at the year end. Mischarged funds worth UGX.357,586,292 on inappropriate budget codes +03. Kyotera DLGOpinion Unqualified  I noted a number of anomalies during review of Kyotera district payroll such as; Failure to submit wage estimates to MoPs; unabsorbed wage fund balance of UGX. 0.32 billion; Over payment of salaries worth UGX.29, 467,392; Unauthorized loan deductions worth UGX.148 million from 100 employees with no undertaking letters; un-deducted PAYE from political leaders’ gratuity worth UGX 57,855,806, leading to an under deduction worth UGX.13, 730,838. Additionally, I observed that there were delays in accessing salary and pension payroll; Failed to prepare monthly wage, pension and gratuity performance analysis for submission to MoPS and Payment of salaries worth UGX.7, 166,620 to Three (3) staffs who were off the IPPS. The district mischarged UGX.4, 876,514 on inappropriate budget codes other than those budget for I noted that the district had prepared a draft strategic plan pending approval by NPA at the time of audit; I noted a number of issues in the implementation of the approved budget such as; Failure to quantify outputs; partial and non-implementation of planned activities delayed submission of performance reports; delay commencement of work by contractor under the UGIFT program; under performance of revenues worth UGX.725,450,031 and under absorption of UGX.993, 780,260 Received off budget financing worth UGX.319,540,631 from Ministry of Health (MOH) Not secured ownership of the land where the seed school and + + + + +348 + + + + + + + + + + + + health Center are being constructed +04. Lwengo DLGOpinion Unqualified  I noted a number of anomalies during review of the district payroll such as; Delay to submit wage estimates to MoPs; An unabsorbed wage funds worth UGX.1.5 billion; an under payment of salaries worth UGX 8,075,359; Accrued Pensions worth UGX.90,656,783 not yet paid; Over payment of gratuity worth UGX. 11,742,937 and under payment of gratuity amounting to UGX. 15,885,858; Payment of salaries worth UGX. 8,620,432 to Eighteen (18) staffs who had retired. Additionally, I noted unauthorized loan deduction worth UGX.8 million to International Medical Link (IML); un-deducted PAYE from political leaders’ gratuity worth UGX.87,948,356, leading to an under deduction worth UGX.12,070,409; Delays in accessing pay roll and pension payroll. I noted that the entity had prepared a strategic plan which had not yet been approved by NPA in respect to alignment to the NDP-III; I noted a number of issues in the implementation of the approved budget such as; Failure to quantify outputs; partial and non-implementation of planned activities delayed submission of performance reports; under performance of revenues worth UGX. UGX.541,868,161 and under absorption of UGX.1,952,031,565 Received off budget financing worth UGX.223,549,580 from Ministry of Health without informing the PSST +05. Masaka DLGOpinion Unqualified  I noted that Masaka District submitted wage estimates to MoPs on 30th March 2020, which was a delay of 182 days; an unabsorbed balance of UGX 0.85 billion; under payment of UGX of salaries worth 58,950,820; under payment pension worth UGX 198,728,097 and unpaid pension of UGX 53,041,554; The District wrongly computed the gratuity benefit of 21 pensioner/beneficiary leading to over payment of UGX 1,431,442 and under payment of UGX 37,726,688; UGX. 82,631,676 was paid to 38 staff who had retired, transferred, absconded or died; an over and under remittance amounting to UGX. 14,013,953 and UGX. 12,619,869 of payroll deduction. Additionally, the District made payroll loan deductions of UGX.1, 064,546,679, but did not remit UGX.10, 874,315 to UCLA/UBA; under deduction of PAYE worth UGX. 8,988,018 from payments to political leaders; noted that 30 newly recruited/ transferred employees and 41 pensioners delayed to access payroll; I noted that 24 employees were paid a total of UGX. 263,080,952 without signed pay change reports; 07 staffs and 19 pensioners were paid a total of UGX.20, 688,721 and UGX.85, 258,552 respectively off the IPPS. + + + + +349 + + + + + + + + + + + +  The district mischarged funds worth UGX. 15,255,772 on account codes other than those prescribed for either salary, pension or gratuity I noted that the entity had had not prepared and approved the strategic plan at the time of audit; I noted a number of issues in the implementation of the approved budget such as; Failure to quantify outputs; partial and non-implementation of planned activities delayed submission of performance reports; under performance of revenues worth UGX. 11,296,979,720 and under absorption of UGX. 1,258,107,623; Incomplete works at Bukakata seed Secondary School +06. Sembabule DLGOpinion Unqualified  I noted a number of anomalies during review of the district pension & salary payrolls such as; an unabsorbed balance of UGX.0.73billion; an under payment of salaries worth UGX.9, 696,016; Delays in accessing pension payroll; Failure to prepare monthly wage, pension and gratuity performance analysis; 72 staffs and 14 pensioners were paid a total of UGX.76,444,546 off the IPPS. I noted that the management had prepared a strategic plan which had not yet been approved by NPA to confirm its alignment with NDP-III; underperformance 275,905,089; under absorption of funds worth UGX.1,229,179,117; Partial Implantation of One (1) output with a total of two (2) activities worth UGX.0.89Bn; Late submission of performance reports; I noted underfunding from URF for road maintenance worth UGX.27,517,358 that affected implementation of planned activities +07. Lyantonde DLGOpinion Unqualified  I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, Underpayment of pension worth UGX.27,094,530; Overpayment of Salary worth UGX.29,716,471; an unabsorbed balance of UGX.0.26 billion that was subsequently swept back to the consolidated fund account and wrong computation of gratuity benefit for four (04) pensioner worth net overpayment of UGX.4,437,740 Further, the district made payment of salaries worth UGX.3,279,528 to four (4) staffs that who had either retired, transferred, absconded or died; an over and over remittance of payroll deductions worth UGX.6,685,000 and UGX.8,713,886 respectively; made unauthorized loan deductions worth UGX.736,802,204 from 400 employees that never had letters of undertaking Additionally, Tax deductions worth UGX.7,073,772 had not been + + + + +350 + + + + + + + + + + + + remitted to URA; un-deducted PAYE from political leaders’ gratuity resulting in unpaid tax of A UGX.8,109,728; Twenty- Seven (27) employees recruited did not access the payroll and delays in accessing payroll and pension payroll. The district mischarged funds worth UGX.5,870,000 on account code other than those prescribed salary, pension and gratuity; The District paid Seventeen (17) employees worth UGX.22, 846,471 without signed pay change reports; failed to prepare monthly wage, pension and gratuity performance analysis and salaries payment worth UGX.85, 678,850 was paid to Seven (7) staffs off the IPPS. I noted that the entity had prepared its strategic plan but it was not yet approved by NPA Under performance worth; under absorption worth; Late submission of Reports; I noted a number of issues in the implementation of the approved budget such as; Failure to quantify outputs; partial and non-implementation of planned activities delayed submission of performance reports; under performance of revenues worth UGX. 68,650,450 and under absorption of UGX.773,177,804 +08. Kassanda DLGOpinion Unqualified  I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, an unabsorbed balance of UGX.0.20 billion; unpaid accrued pensions worth UGX.89,374,764;Payment of salaries worth UGX.29,042,083 to Eighteen (18) staffs who had either retired, transferred, absconded or died; an over and under remittance of deductions worth UGX.80,614,103 and UGX.11,056,051 respectively; made unauthorized loan deductions worth UGX.684,121,646 from 271 employees that neither had letters of undertaking nor letters of consent. Additionally, I observed a deduction of worth UGX.31,937,764 from 26 employees who were not in approval and deduction report and a deductions of UGX.63,539,341 from 51 employees who were not in active deduction report but were in approval report; 15 employees had irregular loan end dates; Delays in accessing payroll and pension payroll; Payment of Sixteen (16) staffs and Six (06) pensioners worth UGX.205,954,862 off the IPPS; and payments worth UGX.47,984,473 off the payroll to 33 employees. I noted that the entity had not prepared and approved a strategic plan that is aligned to the NDP-III at the time of audit; I noted a number issues in the budget performance such as + + + + +351 + + + + + + + + + + + + Underperformance of funds worth UGX.243,523,703; Under absorption of funds worth UGX.744,143,791; Failure to quantify outputs; partial and non-implementation and late submission of performance reports. +09. Mubende DLGOpinion Unqualified  I noted that the District delayed to submit wage estimates to MoPs; An under absorption worth UGX.1.36 Billion and was subsequently swept back to the consolidated fund account; unpaid salaries worth UGX.9,974,064; Over payment of one (1) pensioner worth UGX.2,420,407; Unpaid salaries & pension worth UGX.163,350,521; Under payments worth UGX.765,835 to Twenty (20) staffs using wrong salary scale; Payment of salaries worth UGX.17,448,575 to Fourteen (14) staffs who had either retired, transferred, absconded or died; Additionally, I observed an under remittance of salary deduction worth UGX.246,546,709; Made unauthorized loan deductions worth UGX.123,209,904 from 30 employees that neither had letters of undertaking nor evidence of consent; Delays in accessing payroll and pension payroll; Residual Arrear payments worth UGX.380,760,596 paid to 17 staffs who were not part of MOFPED approved schedule; Unpaid pension to Six (6) pensioners worth UGX.118,064,322; Failed to prepare monthly wage, pension and gratuity performance analysis for submission to MoPS; Payment of Five (5) staffs worth UGX.4,831,538 off the IPPS; I noted that the district had prepared its strategic plan but had not had its plan approved by NPA at the time of audit; I noted a number issues in the budget performance such as Underperformance of funds worth UGX.117,978,419; Under absorption of funds worth UGX.1,625,514,838; Failure to quantify outputs; partial and non-implementation and late submission of performance reports. +10. GombaOpinion Unqualified  I noted that the District delayed to submit wage estimates to MoPS; an unabsorbed balance of UGX.0.8 billion; over payment of UGX.649, 200 to Mujabi James; an under payment of UGX.1, 764,651; Unpaid salaries worth UGX.1, 176,393; noted that the District had an outstanding Accrual worth UGX.17, 271,309 at the end of the year; the District made unauthorized loan deductions worth UGX.7, 592,724 from 4 employees that neither had letters of undertaking nor existed in the reports. Additionally, I observed delays in accessing payroll and pension payroll; I noted that five (05) ineligible persons accessed the payroll using forged Education Service Commission (ESC) minutes; Twenty Seven (27) staffs were paid worth UGX.31, 972,130 off the IPPS. I noted that the entity had not had the strategic plan approved at the time of audit I noted a number of issues in the implementation of budget such + + + + +352 + + + + + + + + + + + + as; Underperformance worth UGX.113,179,395; under absorption of funds worth UGX.1,088,912,187 that was subsequently swept back to the consolidated fund account; Late submission of reports. + Hoima Branch Summary of Key Findings +01 Buliisa DLGOpinion Unqualified  I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, Over payment of salary worth UGX.516,940 to one (1) employee; payment of salaries worth UGX.962,591 to two (2) staffs that was no longer in service; unauthorized loan deductions worth UGX.19,720,463 from 20 employees and net under payment of payroll deductions worth UGX.218,852,589 Additionally, I observed that there was delayed access to payroll by twelve (12) new employees and three (3) pensioners; failure to utilize wage funds of UGX.1.39Bn; un- deducted PAYE from political leaders’ gratuity resulting in unpaid tax of UGX.8,971,020 and payment of worth UGX.1,646,800 off the IPPS I noted a number of issues in the implementation of the approved budget such as; Failure to quantify outputs that affected measurement of performance, partial or non- implementation of planned activities, late submission of quarterly reports; under absorption of funds worth UGX.721,028,206 that was swept back to consolidated fund account; under performance of the donor & releases from the government worth UGX.1,359,130,302 I noted that the district had prepared and submitted the Strategic plan to NPA but was still pending approval. In regards to Covid-19 funds, I noted that out of the total receipts of UGX.81, 933,334, the district absorbed UGX.81, 933,334, representing absorption level of 100%. Additionally, I noted that the distribution of many of non-cash items delayed. +02. Hoima MCOpinion Unqualified  I noted a number of anomalies during review of the Municipal pension & salary payrolls such as; Failure to submit wage estimates to MoPs, Over payment of salary worth UGX UGX.7,453,884 to (3) staffs; under payment of funds worth UGX.29,604,189 and unauthorized loan deductions worth UGX.37,990,205 from 35 employees Additionally, I observed that there was delayed access to payroll by seven (7) new employees and ten (10) pensioners; failure to utilize wage funds of UGX.0.28Bn; un-deducted PAYE from political leaders’ gratuity resulting in unpaid tax of UGX.12,771,000 and payment of two (2) staffs & seven(7) pensioners a total of UGX.368,827,383 off the IPPS I noted a number of issues in the implementation of the + + + + +353 + + + + + + + + + + + + approved budget such as; Failure to quantify outputs that affected measurement of performance, partial or non- implementation of planned activities; Incomplete road works under absorption of funds worth UGX.29,660,979,614 that was swept back to consolidated fund account; under performance of the donor & releases from the government worth UGX.2,515,468,499 The district mischarged expenditure worth UGX.45, 235,346 on wrong budget lines. I noted that UGX.5,060,453 was paid as residual salary arrears to 5 employees who had not missed salaries in the previous financial year(s) Payment of funds worth UGX.33,792,884 without authorization of the pay change reports I noted that the entity’s strategic plan was still in draft form and not approved to confirm that is aligned to the NDP-III at the time of audit. UGX.19,240,000 remained unaccounted for at the close of the financial year +03. Hoima DLGOpinion Unqualified  I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, over payment of salary worth UGX. 1,380,792 to staffs; under payment of funds worth UGX.; payment of salaries worth UGX.27,668,323 were paid to twenty (20) staffs and eleven (11) pensioners were paid a total of UGX.251,898,925 off the IPPS that was no longer in service unauthorized loan deductions worth UGX.721,600,940 from 432 employees Additionally, I observed that there was delayed access to payroll by ten (10) new employees and eleven (11) pensioners; failure to utilize wage funds of UGX 16.16Bn; un- deducted PAYE from political leaders’ gratuity resulting in unpaid tax of UGX.7,763,400 The district mischarged expenditure worth UGX.180, 754,659 on wrong budget lines. I noted that the verification forms and copies of the verification cards for 126 employees and 43 pensioners were not on the respective personal files I noted a number of issues in the implementation of the approved budget such as; partial implementation of planned activities; partially implemented ; late submission of quarterly reports; under absorption of funds worth UGX.1.9Bn that was + + + + +354 + + + + + + + + + + + + swept back to consolidated fund account;  Delayed submission of regular reports I noted that the Hoima district did not have an approved strategic plan that is aligned to NDP-III and therefore lacks a certificate of compliance issued by National Planning Authority. Regarding Covid-19 funds, Out of the total receipts of UGX.111, 450,000, the District absorbed UGX.111, 450,000 representing an absorption level of 100%. +04. Hoima RRHOpinion Unqualified  I noted a number of anomalies during review of the hospital pension & salary payrolls such as; Failure to submit wage estimates by the hospital to MoPs, over payment of pension worth UGX.3, 138,332. ; Underpayment of worth 2,282,632; The deductions were from nine (9) employees’ salaries worth UGX18,438,987 Additionally, I observed that there was delayed access to payroll by twenty (20) new employees and four (4) pensioners;;un paid pensioners worth UGX 13372393.un-deducted PAYE from political leaders’ gratuity resulting in unpaid tax of UGX.13372393 Failure to quantify outputs, I noted a number of issues in the implementation of the approved budget such as; failure to quantify outputs, partial implementation or non-implementation of planned activities under absorption of funds worth UGX.1.78Bn that was swept back to consolidated fund account; under performance of the donor & releases from other government units worth UGX.0.03Bn; delayed submission of quarterly monitoring reports to OPM & MoFPED The hospital mischarged expenditure worth UGX.38 million on wrong budget lines. I noted that the entity’s strategic plan was still in draft form and not approved to confirm that is aligned to the NDP-III at the time of audit. Failure to quantify outputs, partial implementation or non- implementation of planned activities +05. Kagadi DLGOpinion Unqualified  I noted a number of anomalies during review of the district pension & salary payrolls such as; Wrong computation of gratuity worth net overpayment of UGX. 1,8273,030; payment of salaries to three(3) staffs that was no longer in service and under remittance worth UGX. 35,519,020; and payment of two (2) staffs worth UGX. 3450720 off the IPPS I noted a number of issues in the implementation of the approved budget such as; unabsorbed balance worth UGX 1.5Bn partial implementation of funds worth UGX 0.155Bn under + + + + +355 + + + + + + + + + + + + absorption of funds worth UGX. 12,314,490,181 that was swept back to consolidated fund account; under performance of the donor & releases from other government units 3,329,413,255; delayed submission of quarterly monitoring reports to OPM & MoFPED I noted that the entity’s strategic plan was still in draft form and not approved to confirm that is aligned to the NDP-III at the time of audit. I noted a delay of 9 days for the month of July in the remittance of PAYE deductions to URA +06. Kakumiro DLGOpinion Unqualified  I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs; Underpayment of salaries worth UGX. 10,643,039 to employees underpayment pension worth UGX.4, 511,350; under remittance worth UGX.146, 308,447 and payment of three (3) staffs worth UGX.8,763,215 off the IPPS I noted a number of issues in the implementation of the approved budget such as; unspent balance worth UGX 2275637090 ; under absorption of funds worth UGX.9,191,378,616 that was swept back to consolidated fund account; partial or non-implementation of planned activities worth 0.37Bn under performance of the donor & releases from other government units worth UGX.0.4Bn; delayed submission of quarterly monitoring reports to OPM & MoFPED unabsorbed funds worth UGX.138,823,634; delayed completion of construction works at St Matia Mulumba seed secondary school. I noted that the entity’s strategic plan was still in draft form and not approved to confirm that is aligned to the NDP-III at the time of audit. I noted that the District did not remit PAYE deductions for the month of May worth UGX.138, 823,634 to URA. I noted that the district had ongoing service delivery +07 Kibaale DLGOpinion Unqualified  I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, Over payment of pension worth UGX.288, 866,531; Underpayment of pension worth UGX.4,082,68 underpayment of pensioners UGX.387,086,804; payment of salaries worth UGX.20,837,768 to fifteen (15) staffs that was no longer in service I noted a number of issues in the implementation of the approved budget such as unspent balance worth UGX.1,861,400,617; underperformance of budgets worth UGX.14,350,250,339; delayed submission of quarterly monitoring reports to OPM & MoFPED; delayed completion of construction works at Nyamarwa Seed School secondary school; + + + + +356 + + + + + + + + + + + + under deduction of PAYE to URA worth 20,837,768 I noted that the entity’s strategic plan was still in draft form and not approved to confirm that is aligned to the NDP-III at the time of audit. I noted a number of issues in the implementation of the approved budget such as unspent balance worthUGX.1;861;400,617;unabsorbed funds worth UG.1.35 billion; delayed completion of construction works at Nyamarwa Seed School secondary school; under deduction of PAYE to URA worth 20,837,768 I noted that funds amounting to UGX.24, 910,982 related to gratuity expense but were charged on pension arrears code. I reviewed the effectiveness and reliability of the IPPS/NID staff/pensioner/beneficiaries’ verification interface and noted in- adequate sensitization and training in the use and navigation of the system, System was not reliable and effective and operational challenges were encountered; such as delayed update of changes in employee details by NIRA, NID interface does not show facial images for some employees and network challenges. +08 Kikuube DLGOpinion Unqualified  I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, Over payment of salaries worth UGX.4,919,860; Salaries worth UGX. 5,747,552 to six (6) staffs that was no longer in service and payment of twenty two (22) staffs worth UGX.198,611,180 off the IPPS I noted a number of issues in the implementation of the approved budget such as; under absorption of funds; under performance of the donor & releases from other government units worth UGX.9.19Bn; partial implementation of funds worth UGX. o.95 delayed submission of quarterly monitoring reports to OPM & MoFPED I noted that whereas UGX.756,788,804 was deducted from employees’ salaries to be remitted to different beneficiaries, UGX.758,906,480 was remitted leading to an over and under remittance of UGX.2,117,676 I noted that the entity’s strategic plan was still in draft form and not approved to confirm that is aligned to the NDP-III at the time of audit.  Payments to ten (10) employees worth 1457195 without signed a pay change report I noted that UGX.68, 527,000 remained unaccounted for at the close of the financial year. I noted delayed completion of Nyairongo Seed Secondary School + + + + +357 + + + + + + + + + + + +  Under Development Response to Displacement Impacts Project (DRDIP), I noted that Procurements worth UGX.2,524,177,097 were undertaken using community procurement method which were not reported in quarterly reports submitted to the Authority. Besides, they were not included in the approved integrated annual work plan of the District. +09 KyankwanziOpinion Unqualified  I noted a number of anomalies during review of the district pension & salary payrolls such as; Underpayment of pension worth UGX.2,819,483 and payment of eight (8) staffs worth UGX.8,810,706 off the IPPS I noted a number of issues in the implementation of the approved budget such as; failure to quantify outputs, partial and non-implementation of planned activities; unabsorbed wage fund balance worth UGX.0.84Bn; under deduction of PAYE worth UGX.8, 593, 471; unabsorbed balance worth UGX. 69,083,003; under absorption of funds worth UGX.198,251,670 that was swept back to consolidated fund account; under performance under performance worth UGX 1.11Bn. The district mischarged expenditure worth UGX.275, 847,736 on wrong budget lines. The district mischarged expenditure worth UGX.50, 174,102 on wrong budget lines. I noted outstanding pensioners arrears worth UGX.40,454,541 I noted that the entity did not prepare monthly wage, pension and gratuity performance analysis and did not submit quarterly returns on payroll to MoPS. I noted that the entity had prepared and approved the strategic plan but it was not certified by National Planning Authority. +10. Masindi DLGOpinion Unqualified  I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, Over and under payment of salaries; Overpayment of pension worth UG.37, 427,367 and under payment of pension worth UGX.870,105,650; payment of salaries to nine (9) staffs but were no longer in service. I noted a number of issues in the implementation of the approved budget such as; unabsorbed balance worth 1,240,110,296; under performance of the donor & releases from other government units worth UGX.164Bn that was swept back to consolidated fund account; partial and non-implementation of planned activities; delayed submission of quarterly monitoring reports to OPM & MoFPED and payment of worth 208,659,885 eleven staff(11) off the IPPS I noted that whereas UGX.3,312,092,285 was deducted from + + + + +358 + + + + + + + + + + + + employees’ salaries to be remitted to different beneficiaries, only UGX.3,309,501,072 was remitted leading to a variance amounting to UGX.19,992,521. I noted delays in the remittance of PAYE deductions to URA for 2 months the months I reviewed the effectiveness and reliability of the IPPS/NID staff/pensioner/beneficiaries’ verification interface and noted in- adequate sensitization and training in the use and navigation of the system, system was not reliable and effective and operational challenges were encountered; such as delays to capture changes on NIRA by IPPS. I noted that the District prepared a work plan to guide the utilization of funds that were received. +11. Masindi MCOpinion Qualified  I noted a number of anomalies during review of the municipal pension & salary payrolls such as; Failure to submit wage estimates to MoPs; over and underpayment of salaries worth UGX.33,863,477 to seventeen (17) staffs that was no longer in service and irregular deduction of loan instalments worth UGX.9, 061,174; under deduction of PAYE amounting to 11,411,400 and 19 staff and 13 pensioners were paid a total of UGX.315,332,447 off IPPS I noted a number of issues in the implementation of the approved budget such as; under absorption of funds worth UGX.1, 362,275,792 that was swept back to consolidated fund account; partial or non-implementation of planned activities; under performance of the donor & releases from other government units worth UGX. 282,855,823; delayed submission of quarterly monitoring reports to OPM & MoFPED; I noted that the entity had prepared and approved the strategic plan but it was not certified by National Planning Authority. I noted that whereas UGX.1,427,190,853 was deducted from employees’ salaries to be remitted to different beneficiaries, UGX.1,149,993,408 was remitted leading to an under remittance amounting to UGX.280,237,640 and over remittance of UGX.3,040,195 I noted that funds amounting to UGX.195,443,591 in relation to pension and gratuity were charged on wrong account codes I noted that 73 employees were paid a total of UGX.UGX.61, 299,481 without signed pay change reports. +12. Kiboga DLG Opinion  I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, over payment of salaries worth UGX3, + + + + +359 + + + + + + + + + + + + Unqualified 632,888; Underpayment of salaries worth UGX.6,345,609; overpayment of pension UGX.1, 338,228 and under payment of pension of UGX.3, 404,504; salaries worth UGX. 3,051,636 to two (2) staffs that was no longer in service I further noted under deduction of PAYE of UGX.5,724,180 to URA and two pensioners were paid a total of UGX.69,008,452 off the IPPS I noted a number of issues in the implementation of the approved budget such as; unabsorbed wage fund of UGX.0.41Bn; under performance of the donor & releases from other government units worth UGX.1,037,635,628; failure to quantify outputs, partial and non-implementation of planned activities; under absorption of government grants and Non submission of quarterly monitoring reports to OPM & MoFPED I noted that the entity had prepared and approved the strategic plan but it was not certified by National Planning Authority. I noted that funds amounting to UGX.40, 000,000 in relation to COVID funds returned by the area Members of Parliament had properly been accounted for. I noted that different departments at Kiboga district Hospital lacked the required personal protective gear to aid staff execute their duties during the pandemic +13. Kiryandongo DLGOpinion Unqualified  I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, Over payment of pension salaries worth UGX.1,935,272; overpayment of pension UGX.1,423,052 and under payments of pension UGX.3,591,459; payment of salaries worth UGX. 7,153,511 three (3) staffs that was no longer in service and irregular deduction of loan worth UGX.45, 559,753. I noted a number of issues in the implementation of the approved budget such as; un absorbed balance wage funds worth UGX 0.28Bn; un quantified outputs; under absorption of funds worth UGX.2,939,664,455 that was swept back to consolidated fund account; under performance of the donor & releases from other government units worth UGX.4,624,951,481; staff payment worth 4,070,605 off the IPPS ;partial and non-implementation of planned activities delayed submission of quarterly monitoring reports to OPM & MoFPED I noted that the entity had prepared and approved the strategic plan but it was not certified by National Planning Authority. Deduction Management System, operated by PCA-Payroll Consults Africa. I noted that 23 employees were paid a total of UGX.46,112,214 without signed pay change reports + + + + +360 + + + + + + + + + + + +  I noted lack of evidence of formal appointment for the contract committee members of the district + Gulu Branch Summary of Key Findings +01 Agago DLGOpinion Unqualified  I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, over payment of salaries worth UGX. 25,241,289; Underpayment of salaries worth UGX. 164,307,857; Underpayment of pension worth UGX 93,335,963; payment of salaries worth UGX. 28,901,916 to seventeen(17) staffs that was no longer in service Additionally, I observed that there was delayed access to payroll by five (05) new employees and sixteen (16) pensioners; failure to utilize wage funds of UGX.0.3Bn; un-deducted PAYE from political leaders’ gratuity resulting in unpaid tax of UGX. 13,352,540 and payment of twenty two (22) staffs worth of UGX 642,221,799 off the IPPS I noted a number of issues in the implementation of the approved budget such as; shoddy works in construction of classrooms; incomplete works; under absorption of funds worth UGX. 484,346,069 that was swept back to consolidated fund account; under performance of the donor & releases from other government units worth UGX.1.994Bn. I noted that UGX.13.7 million was paid as residual salary arrears to eleven (11) employees who had not missed salaries in the previous financial year(s). I noted that the verification forms and copies of the verification cards for 04 employees and 16 pensioners/beneficiaries were not on the respective personal files The district had outstanding unrecovered receivables of UGX. 1,376,134,925 at year end. I noted that the entity had not prepared a strategic plan at the time of audit. I noted that Agago District received off-budget financing to a tune of UGX. 90.5 million. I noted that funds to the tune of UGX .237,168,404 were irregularly diverted from the activities +02 Alebtong DLGOpinion Unqualified  I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, Over payment of salaries worth UGX.20,617,118; Underpayment of salaries worth UGX.21,081,264, payment of salaries worth UGX. 26,612,830 to twenty(20) staffs that was no longer in service + + + + +361 + + + + + + + + + + + +  Additionally, I observed that there was delayed access to payroll by thirty three (33) new employees and twenty three(23) pensioners; failure to utilize wage funds of UGX.0.8Bn; un- deducted PAYE from political leaders’ gratuity resulting in unpaid tax of UGX. 9,060,528 I noted a number of issues in the implementation of the approved budget such as;; Partial implementation, late submission of quarterly reports; Under absorption of UGX.1,493,165,616 that was swept back to consolidated fund account; under performance of the donor & releases from other government units worth UGX.1.994Bn The district mischarged UGX. 198, 594,102 charged on account codes other than those prescribed for either salary, pension or gratuity. I noted that the district paid unverified residual arrears worth UGX. 119,498,458 to 12 pensioners  I noted that the District had outstanding receivables amounting to UGX.2,175,996,458 arising from Contractor’s Prepayment YLP & UWEP I noted that the district had outstanding payables of UGX.1,732,017,300 (Deposits received UGX.1,689,530,652, Sundry creditors of UGX.25,650,000 and Pension liabilities UGX.16,836,648) amounted to UGX. 3,464,034,600. I noted that the entity had prepared a strategic plan but the National Planning Authority had not yet approved it at the time of audit. I noted that UGX.580, 701,955 was charged on items which did not reflect the nature of the expenditure. I noted during the review of expenditure that the district received UGX.183,961,496 to be transferred to schools for printing materials. These funds were never transferred to the schools. Over/ under remittance of pays amounted to UGX. 6,239,435 and UGX. 180,339,880 respectively +03 Amuru DLGOpinion Unqualified  I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, Over payment of salaries worth UGX 9,787,296, Underpayment of salaries and pensioners worth UGX 122,296,566 and UGX 157,253,083 respectively ; payment of salaries worth UGX. 129,399,583 to twenty two (22) staffs that was no longer in service. Under remittance of employees’ salaries deductions worth UGX. 11,492,067. Additionally, I observed that there was delayed access to payroll by sixty six (66) new employees and thirteen (13) pensioners; + + + + +362 + + + + + + + + + + + + failure to utilize wage funds of UGX.1,094,631,066; un-deducted PAYE from political leaders’ gratuity resulting in unpaid tax of UGX. 2,140,892 and payment of two (02) pensioners worth UGX. 45,794,020 off the IPPS. I noted a number of issues in the implementation of the approved budget such as; partial and non-implementation of outputs and activities; non-submission of quarterly wage returns to MoPS; incomplete works such as; Amuru Seed School, Otwee HC III, Giragira-Guruguru and Gotgweno-Maroawobi road and culvert installation under Periodic maintenance of Lakang- Kidimon-Atoro road; under absorption of funds worth UGX.1,854,436,151 that was swept back to consolidated fund account; under performance of the donor & releases from other government units worth UGX. 13,266,132,540; The district mischarged expenditure worth UGX. 122,058,859 on wrong budget lines. I noted that UGX. 75,499,557 was paid as residual arrears to 8 pensioners who had not been verified (and thus not part of schedule) by MoFPED I noted that the entity had not prepared and approved a strategic plan that is aligned to the NDP-III at the time of audit The district has payables worth UGX. 1,560,778,573 and receivables worth UGX. 1682,711,064 +04 APAC DLG Qualified Opinion  I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, Over payment of salaries worth UGX 170,469,321 and over payment of pension worth UGX. 764,207,203; Underpayment of salaries worth UGX. 43,539,065; Wrong computation of gratuity worth net overpayment of UGX. 7650,338, 704; payment of salaries worth UGX. 2,257,209 to two (2) staffs who were no longer in service; unpaid salaries worth UGX. 29,321,020 I noted over and/or under remittance of salary deductions worth UGX.906, 079,942 and UGX.10, 641,906 respectively. Additionally, I observed that there was delayed access to payroll by eleven (11) new employees and one (1) pensioners; failure to utilize wage funds of UGX. 364,298,971; un-deducted PAYE from political leaders’ gratuity resulting in unpaid tax of UGX. 7,747,080. and payment of staff off the IPPS I noted a number of issues in the implementation of the approved budget such as; partial implantation of out puts; incomplete works ; under absorption of funds worth UGX. 1.7 Bn that was swept back to consolidated fund account; under performance of the donor & releases from other government + + + + +363 + + + + + + + + + + + + units worth UGX.622,073,000; non submission of quarterly monitoring reports to OPM & MoFPED The district mischarged expenditure worth UGX.275, 847,736 on wrong budget lines. I noted that Apac DLG had revenue arrears worth UGX. 715,864,939 by year end Outstanding unpaid pension arrears worth UGX. 702,052,938 by year end I noted that no funds were paid as residual arrears to pensioners and staff that had not been verified and were not part of schedule provided by MoFPED for payment. The district did not have an approved strategic plan that is aligned to the NDP-III at the time of audit. +05 Gulu DistrictOpinion Unqualified  I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs; Underpayment of pension worth UGX 299,950,406; Wrong computation of gratuity worth net overpayment of UGX. 1,249,233 and under remittance of salary deductions worth UGX. 8,451,617. Additionally, I observed that there was delayed access to payroll by two (02) new employees and five (05) pensioners; failure to utilize wage funds of UGX 4.97 billion; un-deducted PAYE from political leaders’ gratuity resulting in unpaid tax of UGX. 11,003,344.and payment of sixteen (16) staffs and five (05) pensioners worth UGX 114,877,542 off the IPPS I noted a number of issues in the implementation of the approved budget such as;; incomplete works; partial implantation of outputs; under absorption of funds worth UGX 4,900,216,339 that was swept back to consolidated fund account; under performance of the donor & releases from other government units worth UGX.4,034,373,129; delayed submission of quarterly monitoring reports to OPM & MoFPED The district did not have an approved strategic plan that is aligned to the NDP-III at the time of audit I noted that the district has outstanding receivables worth UGX. 2,063,196,780 by the year end +06 Gulu RRHOpinion Unqualified  I noted a number of anomalies during review of the Hospitalpension & salary payrolls such as; Failure to submit wage estimates to MoPs; Underpayment of salaries worth UGX. UGX 8,236,293. Under remittance of salaries worth UGX.197, 476,295. + + + + +364 + + + + + + + + + + + +  Additionally, I observed that there was delayed access to payroll by thirty one (31) new employees and seven (7) pensioners; failure to utilize wage funds of UGX. 1.87 billion.; un-deducted PAYE from political leaders’ gratuity resulting in unpaid tax of UGX.10,746,540 and payment of nine (9) staffs and ten (10) pensioners worth UGX. 461,890,255 off the IPPS I noted a number of issues in the implementation of the approved budget such as; shoddy works in construction of classrooms; incomplete works, I noted there was noted delayed completion of the construction of 54 staff houses; partial implementation of actives; under absorption of funds worth UGX. 1,939,617,659 that was swept back to consolidated fund account The district mischarged expenditure worth UGX. 34,589,597 on wrong budget lines. I noted that 24 employees were paid worth UGX. 118,822,759 without signed any way. The district did not have an approved strategic plan that is aligned to the NDP-III at the time of audit I reviewed the approved Local revenue estimates for the financial year 2020/2021 and noted that the Hospital did not budget for NTR during the year but collected UGX. 206,100,000. I noted that the hospital had an off budget financing worth UGX. 1,092,948,429 during the financial year. +07 Kole DLGOpinion Qualified  I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs; Over payment of pension worth UGX.288, 866,531; Underpayment of pension worth UGX.271, 215,401; Wrong computation of gratuity worth net overpayment of UGX. 54,578,592; payment of salaries two (2) staffs who were no longer in service and irregular deduction of loan instalments worth UGX.9, 061,174. Additionally, I observed that there was delayed access to payroll by twenty three (23) new employees and fourteen (14) pensioners; failure to utilize wage funds of UGX. 0.4 Billion; un- deducted PAYE from political leaders’ gratuity resulting in unpaid tax of UGX. 6,473,220 and payment of twenty two (22) staffs worth UGX.35,678,772 off the IPPS I noted a number of issues in the implementation of the approved budget such as; Failure to quantify out puts; partial and non-implementation of planned activities, inaccurate reporting, and delayed submission of quarterly reports; under absorption of funds worth UGX. 1,095,317,475 that was swept + + + + +365 + + + + + + + + + + + +back to consolidated fund account; under performance of the donor & releases from other government units worth + +8,664,323,677 + + The district mischarged expenditure worth UGX.639, 863,720 + +on wrong budget lines. + + I noted that UGX.349,542,400 in respect of staff advances and + +fuel deposits was not accounted for + + I noted wrong recognition of deposits received figure of UGX.269, 970,000 in relation to Youth Livelihood Programme + +(YLP) and Uganda Women Entrepreneur Project (UWEP). + + I noted that UGX.43, 200,000 was paid to one (1) purported pensioner who was neither on the IPPS payroll register nor + +possessed the necessary documentation to support their existence. + + I noted that the district did not submit loan deductions worth UGX. 3,800,833 to UCLA/UBA. + + I noted that the District failed to remit tax worth UGX.407, + +791,480 to URA. + + I noted that UGX.34,062,213 was paid as residual arrears to one + +(1) staff and two (2) pensioners who had not been verified (and thus not part of schedule) by MoFPED. + +- I noted over remittance of payroll deductions worth + + + +UGX.450,413,838 + + I noted that UGX. 34,062,213 were charged on account codes + +other than those prescribed for salary, pension or gratuity. + + I noted that the District had a receivables figure of UGX.1, 072,183,415 as presented in the Statement of Financial Position + +and disclosed in note 19 to the financial statements. + + I further noted that the District had a payables worth UGX.1,244,267,887 + + I noted a number of misstatements in the financial statements of the districts such as; un-reconciling balances for PPE, treatment + +of revenue surpluses, omission of domestic arrears paid during + +the year of UGX.74,024,139, + + I noted that the entity had not had their prepared strategic plan approved as aligned to the NDP-III at the time of audit. + + I noted that Kole District received off-budget financing to a tune of UGX.27, 329,000 directly from the Development Initiative for Northern Uganda (DINU) for undertaking activities which was + +366 + + + + + + + + + + + + never declared to the PS/ST. Under UGIFT, I noted delayed completion of construction of Okwerodot Seed Secondary School, Okole HCII and Ayer HCIII upgrade. +08 Lira MunicipalOpinion Unqualified  I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, over payment of pension worth UGX.438,769,830 , underpayment of salaries worth UGX.14,238,411; Underpayment of pension worth UGX. 390,304,000; Additionally, I observed that there was delayed access to payroll by five (5) pensioners; four (04) pensionaries do not have access to payroll; failure to utilize wage funds of UGX.0.6 billion; un-deducted PAYE from political leaders’ gratuity resulting in unpaid tax of UGX.3, 734,640 and payment of nine (09) pensionaries worth UGX. 217,577,695 off the IPPS I noted a number of issues in the implementation of the approved budget such as; incomplete works; non implantation of municipal activities; under absorption of funds worth UGX. UGX.12, 094,641,795 that were swept back to consolidated fund account; under performance of the donor & releases from other government units worth UGX. 236,796,670; late submission of quarterly reports The municipal mischarged expenditure worth UGX. 63,933,741 on wrong budget lines. Under remitted payroll deductions worth UGX.4,119,401 I noted that the municipal paid unverified residual arrears worth UGX. 320,216,040 to 39 pensioners I noted that 08 employees were paid a total of UGX.20, 975,837 without signed pay change reports. I noted that the Municipal Council has an outstanding payables balance of UGX.383, 550,743 by year end as recognized in the statement of financial position on page 8 of the financial statements. I noted that municipal council has outstanding payables worth UGX. 383,550,743 and outstanding debtors worth UGX. 634,438,200 I noted that the entity had not had their prepared strategic plan approved as aligned to the NDP-III at the time of audit. +09 Lira RRH  I noted a number of anomalies during review of Lira RR Hospital pension & salary payrolls such as; Failure to submit wage + + + + +367 + + + + + + + + + + + + Opinion Unqualified estimates to MoPs, over payment of salaries worth UGX. UGX.10, 939,040; Underpayment of salaries worth UGX. UGX 19,371,873. Over payment of pension worth UGX 222,915,780. Additionally, I observed that there was delayed access to payroll by three (3) pensioners; failure to utilize wage funds of UGX.1.50 billion; un-deducted PAYE from political leaders’ gratuity resulting in unpaid tax of UGX.10,746,540 and payment of one (01) pensioner worth UGX 48,955,200 off the IPPS I noted a number of issues in the implementation of the approved budget such as; incomplete works partial and implementation of activities; under absorption of funds worth UGX.1,866,855,791 that was swept back to consolidated fund account; under performance of the donor & releases from other government units worth UGX.13,220,968,441; delayed submission of quarterly monitoring reports to OPM & MoFPED The district mischarged expenditure worth UGX. 53,750,617 on wrong budget lines. Under remittance of salary deductions worth UGX. 115,855,754 I noted that UGX. 18,767,338 was paid as residual arrears to 13 staff who had not been verified by MoFPED I observed that a sum of UGX.339,276,432 had been paid to a contractor as advance payments +10 Gulu MCOpinion Unqualified  I noted a number of anomalies during review of the municipal council pension & salary payrolls such as; Failure to submit wage estimates to MoPs, Underpayment of salaries worth UGX.26,212,810; payment of salaries worth UGX.64,323,258 to twenty nine (29) staffs that was no longer in service Additionally, I observed that there was delayed access to payroll by one (01) new employee and twenty four (24) pensioners; failure to utilize wage funds of UGX. 0.33 billion; un-deducted PAYE from political leaders’ gratuity resulting in unpaid tax of UGX. 4,415,984 and payment of seven (07) staffs and 08 pensioners worth UGX. 73,991,598 off the IPPS I noted a number of issues in the implementation of the approved budget such as; incomplete work; partial and non- implementation of activities; under absorption of funds worth UGX. 37,873,163,059 that was swept back to consolidated fund account; under performance of the donor & releases from other government units worth UGX.5,244,627,728; delayed submission of quarterly monitoring reports to OPM & MoFPED The district mischarged expenditure worth UGX.313, 804,373 on wrong budget lines. + + + + +368 + + + + + + + + + + + +  A review of the pension payroll data and IFMS payments, revealed variances between amounts on the payroll and payments to individual pensioners, leading to an over and under payment of UGX.108,837,902 and UGX.1,323,647,325 respectively. I noted that the entity had not had their prepared strategic plan approved as aligned to the NDP-III at the time of audit. I noted that 58 employees were paid a total of UGX. UGX.48,537,458 without Unauthorized pay changed reports I also noted that UGX.163, 186,521 accrued within the year and had not yet been paid to pensioners by the end of the year. Over and under payments of UGX 2,050,016 and UGX.625, 974 respectively of 59 staff arising from the use a wrong salary scale. Overpayment of pension of arrears worth UGX.48,674,235 to nine (09) pensioners I noted that Municipal Council paid out a total of UGX.6.3 million to 07 non-existent staff. I noted that UGX.75, 010,130 was paid to 08 purported pensioners that were neither on the IPPS payroll register nor possessed the necessary documentation to support their existence. I noted that the Municipal Council made PAYE deductions of UGX. 1,439,481,558, but did not remit UGX.2, 162,681 to URA. I noted that UGX.82, 533,859 was paid as residual arrears to 14 pensioners who had not been verified. I noted that the council has receivables worth U GX.3, 153,612,053 at end of the financial year. I noted that expenditure amounting to UGX.113,162,472 remained unaccounted for. +11 Lira DLGOpinion Unqualified  I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs,; payment of salaries worth UGX.14,683,834 to eight (8) staffs that was no longer in service . Additionally, I observed that there was delayed access to payroll by fourteen (14) new employees and eight (8) pensioners; failure to utilize wage funds of UGX.0.5 billion; un-deducted PAYE from political leaders’ gratuity resulting in unpaid tax of UGX.10,794,810; Over and under payment salaries worth of + + + + +369 + + + + + + + + + + + + UGX.115,309,480 and UGX.131,175,021 respectively; under payments of salaries worth UGX.530,320 of 18 staff arising from the use a wrong salary scale Over and under payment of pension worth of UGX.30, 707,444 and UGX.598, 762,255 respectively. I noted a number of issues in the implementation of the approved budget such as; shoddy works in construction of classrooms; incomplete works; the District failed to achieve the intended services from the implemented 02 outputs; under absorption of funds worth UGX. 1,005,249,173 that were swept back to consolidated fund account; over performance and under performance of the donor & releases from other government units worth UGX. 8,559,440,754 delayed submission of quarterly monitoring reports to OPM & MoFPED The district mischarged expenditure worth UGX.275, 847,736 on wrong budget lines. I noted that the entity had not had their prepared strategic plan approved as aligned to the NDP-III at the time of audit. I noted that the district had an off budget financing worth UGX.220, 983,855 during the financial year. I noted that 21 employees were paid a total of UGX. 9,941,845 without signed pay change reports. I noted that the District had outstanding receivables worth UGX. 898,553,933 and outstanding payables worth UGX.920,018,518 +12 Oyam DLG Qualified Opinion  I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, over payment of salaries worth UGX. 81,486,802; Underpayment of salaries worth UGX. 54,366,065; payment of salaries worth UGX.74, 935,902 to thirty three (33) staffs that was no longer in service .unpaid salary worth UGX.91, 771,432. Additionally, I observed that there was delayed access to payroll by thirteen (13) new employees and sixteen (16) pensioners; failure to utilize wage funds of UGX. UGX.0.58 billion; un- deducted PAYE from political leaders’ gratuity resulting in unpaid tax of UGX.12, 437,406. I noted that the entity had not had their prepared strategic plan approved as aligned to the NDP-III at the time of audit. The District did not recognize as a receivable an advance payment of UGX.414,149,184 made on 28 th June 2021 for the supply and installation of medical equipment to 64 Health Center IIIs under Uganda Intergovernmental Fiscal Transfer Program + + + + +370 + + + + + + + + + + + + (UgIFT) (LOT 3). The district mischarged expenditure worth UGX. 609,529,053 on wrong budget lines. Over payments of UGX.1, 104,810 respectively of 27 staff arising from the use of wrong salary scales. I noted a number of issues in the implementation of the approved budget such as; incomplete works; partial and non- implementation of activities; under absorption of funds worth UGX. 972,008,324 that was swept back to consolidated fund account; under performance of the donor & releases from other government units worth UGX. 1,163,405,949; delayed submission of quarterly monitoring reports to OPM & MoFPED The district mischarged expenditure worth UGX.275, 847,736 on wrong budget lines. Over and under payment of pension to pensionaries worth UGX.34, 619,402, and UGX.126, 248,570 respectively. I noted that the District has unauthorized loan deductions worth UGX.178,342,254. Payment of pension arrears worth UGX.22,125,006 to ineligible pensioners I noted 700 vacant staff position at the district that affected service delivery The district had outstanding payables worth UGX.2, 865,939,536 and Overdue receivables worth UGX.2, 865,939,536 by the end of the financial year. UGX.590, 863,502 paid to the contractor on the 28 th June 2021 was not supported by certificates of works done. I noted that expenditure amounting to UGX.31, 252,804 remained unaccounted. I noted that management irregularly paid out UGX.411, 867,050 to individual staff personal bank accounts to purportedly implement several council activities instead of directly paying the eligible suppliers and service providers. In addition, these individuals were neither imprest holders nor cashiers who are mandated to hold cash among other duties. +13 Pader DLG Un Qualified Opinion  I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, Over payment of salaries worth UGX.42,537,857payment of pension worth UGX.288, 866,531; Underpayment of pension worth UGX.910,301,025.; payment of + + + + +371 + + + + + + + + + + + + salaries worth UGX.7,410,931 to seven (07) staffs that was no longer in service Additionally, I observed that there was delayed access to payroll by twenty three (23) new employees and two (2) pensioners; failure to utilize wage funds of UGX.2.38Bn; un-deducted PAYE from political leaders’ gratuity resulting in unpaid tax of UGX.310,309,590 and payment of twenty two (22) staffs worth UGX.35,678,772 off the IPPS I noted a number of issues in the implementation of the approved budget such as; shoddy works in construction of classrooms; incomplete works; under absorption of funds that was swept back to consolidated fund account; under performance of the donor & releases from other government units worth UGX.2,942,949,626; delayed submission of quarterly monitoring reports to OPM & MoFPED Over payment of salary worth UGX.608,719 arising from use of wrong scale I noted that the District made unauthorized loan deductions worth UGX. 45,223,516. I noted that UGX.113, 671,178 was charged on account codes other than those prescribed for salary, pension and gratuity. The District had an outstanding payables balance of UGX.1,365,231,670 as reported in the statement of financial position The District had in its statement of financial position, long outstanding debtors (Advances) amounting to UGX.927, 029,154, which relate to the previous financial years. I noted that the entity had prepared a strategic plan but the National Planning Authority had not yet approved it at the time of audit. I undertook an assessment to establish if there has been service delivery from a sample of outputs that were implemented and noted that the upgrade of Lapul–Ocwida Health Center II to III had not been completed because the contractor abandoned the site. I noted that UGX.42, 534,087 was charged on items which did not reflect the nature of the expenditure. The district has an approved staff structure of 2,215 positions. Out of the approved staff structure, 1,229 (55%) are filled leaving 986 (45%) vacant. + Soroti Branch Summary of Key Findings +01 Amolatar DLG  I noted a number of anomalies during review of the district + + + + +372 + + + + + + + + + + + +pension & salary payrolls such as; Failure to submit wage Opinion estimates to MoPs, over payment of pension worth UGX. Unqualified 3,624,783; Underpayment of pension worth UGX. 5,353,736 w; payment of salaries worth UGX. 12,633,711 fourteen (14) staffs + +that was no longer in service + + + +- Un-deducted PAYE from political leaders’ gratuity resulting in unpaid tax of UGX. 13,781,047 and payment of 32 staffs and 02 + +pensioners worth UGX. 34,292,421 off the IPPS and delayed + +submission of remittances of PAYE to URA + + I noted a number of issues in the implementation of the + +approved budget such as; partial and non-implementation of + +planned activities; unabsorbed wage fund of UGX0.95 billion; under absorption of funds worth UGX.3,620,479,221 that was + +swept back to consolidated fund account; under performance of the donor & releases from other government units worth UGX.2,409,034,822; non submission of quarterly monitoring reports to OPM & MoFPED; + + I noted that whereas UGX. 2,463,002,481 was deducted from + +employees’ salaries to be remitted to different beneficiaries, + +UGX.2,451,377,682.was remitted, leading to an over and under + +remittance amounting to UGX.1,529,715 and UGX.13,154,514 respectively. + + The district mischarged UGX. 30,489,944 for pension arrears on + +account code for gratuity. + + I noted that the district had not paid pension arrears of UGX.121,391,408 by the end of the financial year and the total + +liabilities of UGX.1,794,377,044 + + + +- I noted that expenditure of UGX.10, 037,020 remained unaccounted for by the close of the financial year. + + I noted that the entity did not prepare and have an approved + +strategic plan aligned to NDP-III. + + I noted that Amolatar District received off-budget financing to a tune of UGX.29, 056,000 directly from United Nations Development Fund (UNCDF) for local revenue enhancement and + +construction of Development Initiative for Northern Uganda + +(DINU) centre which was never declared to the PS/ST and as + +such no supplementary appropriation was issued as guided by the PS/ST. + + I noted that despite recommendations by the board of survey, + +the district had not disposed of assets. + + I noted that for the financial year 2016/17 to 202021/ the district had recovered UGX. 99,542,500 out of the expected total amount + +373 + + + + + + + + + + + + due (Interest Exclusive) of UGX. 559,850,500 representing 18%, leaving an outstanding balance of UGX. 478, 531,250 under the Uganda Women Entrepreneurship Program (UWEP). +01. 0 2Bukedea DLGOpinion Unqualified  I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs,; Underpayment of pension worth UGX.4,244,574. ; Wrong computation of gratuity worth net overpayment of UGX 4,368,548; delayed remittance of payroll deductions to URA and one staff was paid a total of UGX.14.8million off the IPPS I noted a number of issues in the implementation of the approved budget such as;partial implementation of planned activities; an absorbed wage fund balance 0.6Bn; under absorption of funds worth UGX.2.93Bn that was swept back to consolidated fund account; under performance of the donor & releases from other government units worth UGX.0.6Bn; delayed submission of quarterly monitoring reports to OPM & MoFPED I noted that the entity did not prepare and have an approved strategic plan aligned to NDP-III. I noted that whereas UGX.4,007,788,020 was deducted from employees’ salaries to be remitted to different beneficiaries, UGX.3,853,954,791 was remitted, leading to an over/ under remittance of UGX.116,697,024/UGX.270,530,253 respectively   I also noted that within total liabilities are deposits of UGX.994, 994,899 regarding to YLP and UWEP. Bukedea HCIV experienced drug stock outs for several essential medicines during the year The district awarded contracts and made payment of UGX. 47,362,136 without proof of active VAT registration. As a result, VAT amounting of UGX. 7,222,726 was paid to non-registered company/deregistered due to non-compliance. The district had received unbudgeted for funding worth UGX. 254,695,138 for printing of home study materials but this was not even approved as a supplementary budget by the council. An outstanding receivables balance of UGX. 303,281,690 during the financial year that remained unrecovered +02. 0 3Dokolo DLGOpinion Unqualified  I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, Over Underpayment of salaries worth UGX.169,757,747 and several staff were paid a total of UGX.6.4million off the IPPS. I noted a number of issues in the implementation of the approved budget such as;partial implementation of planned activities; unabsorbed wage funds of UGX.0.128Bn; under + + + + +374 + + + + + + + + + + + + performance of the donor & releases from other government units worth UGX.6.258Bn; delayed submission of quarterly monitoring reports to OPM & MoFPED I noted that the entity did not prepare and have an approved strategic plan aligned to NDP-III. I noted delays in the remittance of PAYE deductions to URA in 2 out of 12 months, with an average delay. I noted that the district did not subject political leaders’ gratuity totaling to UGX.33, 217,800 to the computation of PAYE in IPPS, leading to revenue loss of UGX.10, 036,690. Outstanding payables during the year worth UGX.7,108,292 remained unsettled by year end Uncounted for funds at the close of the financial year amounted to UGX.13,212,000 It was noted that two (2) contracts worth UGX.36,371,630 were awarded to contractors VAT inclusive to a tune of UGX.5,548,214 yet the individual contractors were either not VAT registered or had been de-registered by the tax authority. An outstanding receivables balance of UGX.346,165,052 due from UWEP and YLP groups +03. 0 4Kaberamaido DLGOpinion. Unqualified  I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, over payment of salaries worth UGX.1, 255,265; Underpayment of salaries worth UGX. 1, 222,507; salaries worth UGX.1,960,136 was paid to 1 staff who had retired and Paid UGX.3,300,000 and UGX.54,988,606 to 2 employees and 2 pensioners respectively off IPPS I noted a number of issues in the implementation of the approved budget such as; unabsorbed wage funds worth UGX 0.4Bn; under payment UGX. 37,655,834 under absorption of other received funds worth UGX.26, 816,534 that was swept back to consolidated fund account; under performance of the donor & releases from other government units worth UGX.464,763,581; delayed submission of quarterly monitoring reports to OPM & MoFPED I noted that the entity did not prepare and have an approved strategic plan aligned to NDP-III.   I noted that the District made PAYE deductions of UGX.1, 260,530,351 and remitted to URA and delays in the remittance of PAYE deductions to URA ranging from 1–13 days. I noted that Kaberamaido District did not subject political leaders’ + + + + +375 + + + + + + + + + + + + gratuity totaling to UGX. 37,211,942 to the computation of PAYE in IPPS, leading to an under deduction of UGX. 11,183,595. I observed a number of issues during my inspection of Kaberamaido Hospital such as; equipment such as Ultra sound machines and Scanners were idle due to lack of specialized human resources to operate them and the hospital has (4) small oxygen concentrators which are obsolete; Poor infrastructural development of kaberamido hospital A review of the approved work plan and budget revealed that the district made budget provisions for vehicle maintenance during the period under review amounting to UGX.98, 812,000. However, almost all the district vehicles were not functional due to failure to maintain and repair them and the approximated cost amounted to UGX.298, 400,000. +04. 0 5Kalaki DLGOpinion Unqualified  I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs; Underpayment of pension worth UGX.13,901,641; payment of salaries worth UGX. 1,573,970 to five (5) staffs that was no longer in service and payment of UGX 19.29 million to five (5) employees off the IPPS I noted a number of issues in implementation of approved budget such as; under absorption of funds worth UGX.1,197,062,675 that was swept back to consolidated fund account;. un absorbed funds worth UGX.2.385Bn under performance of the donor & releases from other government units worth UGX.2,685,815,492 and non-submission of quarterly monitoring reports to OPM & MoFPED I noted that the entity did not prepare and have an approved strategic plan aligned to NDP-III. I observed that whereas UGX.1,565,039,555 was deducted from employees’ salaries to be remitted to different beneficiaries, UGX.1,487,680,407 was remitted, leading to an over/under remittance of UGX.6,339,201 and UGX.83,698,349 respectively. Disclosed in the statement of financial position on page (15) are receivables of UGX.752,701,227 as supported by Note (19) relating to UWEP and YLP funds which remained due to the revolving fund and close of the financial year +06 Katakwi DLGOpinion Unqualified  I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, over and under payment of salaries worth UGX. 1,541,478 and UGX. 24,265,506 respectively; under remittance salary deductions worth UGX. 10,723,784; Additionally, I observed failure to utilize wage funds of UGX.0.1Bn; un-deducted PAYE from political leaders’ gratuity + + + + +376 + + + + + + + + + + + + resulting in unpaid tax of UGX. 13,353,316; I noted that 4 newly recruited/ transferred employees and 24 pensioners delayed to access payroll; the Katakwi District did not prepare monthly wage, pension and gratuity performance analysis and thus did not submit quarterly returns on payroll to MoPS; paid 32 staff and 02 pensioners worth UGX. 34,292,421 off the IPPS I noted that the district had not paid salary and pension arrears of UGX.176,136,812 and UGX.210,481,886 respectively and deposits under total liabilities of UGX.1,469,427,540, comprising of YLP and UWEP amounts due to the revolving fund I noted a number of issues in the implementation of the approved budget such as; shoddy works in construction of classrooms; incomplete works; under absorption of funds worth UGX. 360,155,363 that was swept back to consolidated fund account; under performance of the donor & releases from other government units worth UGX.1,868,819,492; delayed submission of quarterly monitoring reports to OPM & MoFPED A total of 37 km at an estimated cost of UGX.220, 000,000 was worked on, however on physical inspection it was noted that some road sections were not well graded with poor road shaping, spot gravelling while others lacked access roads to the community. The district had received unbudgeted funding worth UGX.186,033,984 on 20 th January 2021 for printing of home study materials which was not approved as a supplementary budget by the council, remained un-transferred to schools until 23 rd June 2021 and had not been utilized by the beneficiary schools at the time of audit.(August 2021). An audit of Katakwi district hospital revealed instances of drug stock outs, failure to keep records of essential medicines such as oxygen and blood, expiry of drugs and staffing gaps at the district hospital. The district signed a contract with UK General Services Limited for Upgrade of Palam HC III to III funded under Transitional Development Grant (TDG) (KATA522/WRKS/20-21/00032) at a contract price of UGX.296, 838,010, UGX.265, 076,343 (89%) of the contract sum had been paid leaving only 10% retention due to the contractor but on inspection it was noted that the works were in complete and the contractor was not found on site. +07 KUMI DLGOpinion Unqualified  I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs; Underpayment of pension worth UGX 40,603,995; payment of salaries worth UGX. 41,743,339 to fourteen (14) staffs that was no longer in service Additionally, I observed that there was delayed access to payroll + + + + +377 + + + + + + + + + + + + by seventy eigth (78) new employees and six (06) pensioners and 15 pensioners did not access the pension payroll by the end of FY 2020/21; failure to utilize wage funds of UGX 0.7 billion.; un-deducted PAYE from political leaders’ gratuity resulting in unpaid tax of UGX. 8,722,103.and payment of seven (07) staffs worth UGX 8,054,219 off the IPPS I noted a number of issues in the implementation of the approved budget such as; partial implementation of activities, under absorption of funds worth UGX. 1,189,642,702 that was swept back to consolidated fund account; under performance of the donor & releases from other government units worth UGX.9,484,212,313; delayed submission of quarterly monitoring reports to OPM & MoFPED Over and under remittance amounting to UGX. 1,447,689 and UGX. 27,903,716 respectively. I noted that the District has receivables worth UGX 207,343,250. I noted that the District had payables of worth UGX. 1,061,619,255 The district did not have an approved strategic plan that is aligned to the NDP-III at the time of audit. The district lacked land titles for 58 pieces measuring 948.809 acres which exposed the land to loss and encroachment. The district received a sum of UGX 202,441,411 for primary and secondary for procurement of learning materials. I noted that the above funds were still on the schools accounts. Vacant staff position of 82 was noted at the district The district mischarged expenditure worth of UGX.23,818,896 on wrong budget lines. +08 Soroti CITYOpinion Unqualified  I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs worth 0.20Bn; Underpayment of pension worth UGX 17,693,503; payment of salaries worth UGX. 4,422,604 to two (2) staffs that was no longer in service Additionally, I observed that there was delayed access to payroll by twenty three (2) new employees and nine (2) pensioners; I noted under absorption of funds worth UGX.569,370,362 that was swept back to consolidated fund account; under performance of the donor & releases from other government units worth UGX.3,241,130,000; delayed submission of quarterly monitoring reports to OPM & MoFPED partial implementation of planned activities unquantified output 2 pensioners delayed to + + + + +378 + + + + + + + + + + + + access the pension payroll, with delays of 2 months. The district did not have an approved strategic plan that is aligned to the NDP-III at the time of audit. I noted that whereas UGX.1,672,354,754 was deducted from employees’ salaries to be remitted to different beneficiaries, UGX.1,720,244,218 was remitted, leading to an over remittance of UGX.47,889,464. I noted that the City did not subject political leaders’ gratuity totaling to UGX.10, 718,400 to the computation of PAYE in IPPS, leading to a revenue loss of UGX.3,212,520. .  I noted that UGX.16, 952,389 was charged on account codes other than those prescribed for salary, pension and gratuity.  9 staff and 1 pensioner were paid a total of UGX.9, 175,032 off the IPPS.   It was noted that the health centre experienced expiry of several essential medicines.  An audit of a sample of essential drugs revealed that there were discrepancies between quantities ordered and those actually delivered by National Medical Stores. I noted that from the financial year 2015/16 to 2018/19 the City had disbursed a total of UGX.213,350,031 out of which a sum of only UGX.48,137,000(23%) was recovered leaving an outstanding balance of UGX.173,473,68  AN outstanding balance of UGX.84,288,225 . +09 Soroti DLGOpinion Unqualified  I noted a number of anomalies during review of the district pension & salary payrolls such as; delayed to submit wage estimates to MoPs; an unabsorbed balance of UGX.0.1Bn; an over payment of UGX.2,539,634; Unpaid Salaries worth UGX.39,755,425; an under payment of UGX.40,539,361; payment of salaries worth UGX.2,618,034 to two (2) staffs that had retired and the other died; an over/under remittance of UGX.24,004,085 and UGX.70,000 respectively; loan deduction worth UGX.1,025,336,368 from 643 employees that had no letters of undertaking but exist in the reports. I further un-deducted PAYE from political leaders’ gratuity resulting to an under deduction of UGX.10,594,893; delay in accessing payroll and pension payroll; the district mischarged expenditure worth UGX.23,558,053 on wrong budget lines; Paid residual arrears worth UGX.361,354,056 to 15 pensioners who had not been verified; Failed to prepare monthly wage, pension and gratuity performance analysis; Failed also to submit quarterly returns on payroll to MoPS; Payment worth UGX.1,109,575,875 was paid to 26 pensioners off the IPPS; I noted that the entity prepared and submitted the Strategic Plan to National Planning Authority but had not been approved by the + + + + +379 + + + + + + + + + + + + time of audit; the district had an Outstanding total liabilities worth UGX.1,315,447,223; Underperformance worth UGX.1,770,722,988; Under absorption worth UGX.620,661,204 which was subsequently swept back to the consolidated fund account; Failed to prepare annual monitoring plans. The district received Amount worth UGX.51,440,000 under covid 19 response; the district had several pieces of land whose titles had not been secured; an outstanding balance worth UGX.1,028,188,380 from groups; shoddy works in construction of roads; Un utilized amount of money worth UGX.176,968,673 meant for the procurement of learning materials for primary and secondary schools +10 Kapelebyong DLGOpinion Unqualified  I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, under payment of pension worth UGX. 13,840,658; Underpayment of salaries worth UGX. 23,446,654.. Accrued payment of pension worth UGX. 1,623,473. under remittance of salaries worth UGX. 35,257,436. Additionally, I observed that there was delayed access to payroll by two (2) pensioners; failure to utilize wage funds of UGX. 1,030,154,088.; un-deducted PAYE from political leaders’ gratuity resulting in unpaid tax of UGX.6,156,000 and payment of six (06) staffs worth UGX. 19,428,658 off the IPPS I noted a number of issues in the implementation of the approved budget such as; incomplete works; partial implementation of activities, under absorption of funds worth UGX. 1,089, 751 811, that was swept back to consolidated fund account; under performance of the donor & releases from other government units worth UGX.537,701,164; delayed submission of quarterly monitoring reports to OPM & MoFPED Outstanding liabilities worth UGX.912,708,330 The district did not have an approved strategic plan that is aligned to the NDP-III at the time of audit. A total of UGX.20, 000,000 was received as COVID 19 supplementary funding I noted that the district has funds worth UGX. 589,150,272 relating to YLP and UWEP The district received unbudgeted funding worth UGX. 76,174,518 I noted that the district has outstanding payables (YLP)/ UWEP worth UGX. 331,343,011 and UGX. 251,879,775 respectively .  The district awarded contracts and made payments amounting to UGX.97, 981,512 without proof of active VAT registration, as a result, VAT amounting of UGX.14, 946,332 was paid to non- + + + + +380 + + + + + + + + + + + + registered or de-registered companies. +11 SERERE DLGOpinion Unqualified  I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, Over payment of salaries worth UGX.5,681,385; Underpayment of salaries worth UGX.7,111,988; under remittance of salaries worth UGX.32,910,176 I further noted failure to utilize wage funds of UGX.0.6 billion; un-deducted PAYE from political leaders’ gratuity resulting in unpaid tax of UGX.10,721, UGX.416million off the IPPS I noted a number of issues in the implementation of the approved budget such as;; under absorption of funds worth UGX.1.18Bn that was swept back to consolidated fund account; under performance of the donor & releases from other government units worth UGX.7.721Bn; delayed submission of quarterly monitoring reports to OPM & MoFPED Un recovered YLP and UWEP deposits worth UGX.1,086,363,675 The district did not have an approved strategic plan that is aligned to the NDP-III at the time of audit. I noted that the district had received unbudgeted for funding worth UGX. 254,695,138 Unrecovered YLP and UWEP fund worth UGX. 873,681,064 +12 Amuria DLGOpinion Un-Qualified  I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, over payment of salaries worth UGX.467,333, under payment of salaries worth UGX.607,250 Additionally, I observed that there was delayed access to payroll by seven (07) new employees and fourteen (14) pensioners; failure to utilize wage funds of UGX.1,303,509,217.; un-deducted PAYE from political leaders’ gratuity resulting in unpaid tax of UGX.12,243,797 and payment of one (01) staffs worth of UGX.5,393,465 off the IPPS I noted a number of issues in the implementation of the approved budget such as;; under absorption of funds worth UGX.1,872,205,072 that was swept back to consolidated fund account; under performance of the donor & releases from other government units worth UGX.2,531,940,210; delayed submission of quarterly monitoring reports to OPM & MoFPED I noted that the District has unauthorized loan deductions worth UGX.694,591,280. + + + + +381 + + + + + + + + + + + + at the time of audit The district received off-budget financing to a tune of UGX. .46, 449,000 directly from UNFPA for undertaking activities which was never declared to the PSST and as such no supplementary appropriation was issued as guided by the PSST. The district did not have an approved strategic plan that is aligned to the NDP-III at the time of audit. I noted that Note 19, Net Receivables, to the financial Statements, Amuria District had receivables of UGX.808,524,096 relating to UWEP and YLP funds at the beginning of the current financial year. Further review revealed that the receivables increased to UGX.1, 003,497,681. I noted that funds totaling UGX.7,747,000 were irregularly diverted from the activities on which they were budgeted and spent on other activities without seeking or obtaining the necessary approvals. I noted that that tracer medicines like Oxytocin, Coatem (Artemether + Lumefantrine) 24 Tablets 30 strips, Gloves, Determine test kit and Mama kits worth UGX.4,615,129 was not accounted for by the Hospital Management.  I noted that out of 154 pieces of land, only 8 (5%) had titles. +13 Kumi MCOpinion Un-qualified  I noted a number of anomalies during review of the Municipal pension & salary payrolls such as; Under absorption worth UGX.212,168,628; under payment worth UGX.35,246,285; Outstanding payment worth UGX.2,256,948 meant for 5 employees; an under payment of Pension, Gratuity worth UGX.33,299; Accrued payment worth UGX.13,261,366; payment of salaries worth UGX.5,189,355 to Nine (9) staffs who had either retired, transferred, absconded or died. Additionally, I observed an over remittance of UGX.13, 281,172; un-deducted PAYE from political leaders’ gratuity resulting in unpaid tax of UGX.3, 889,440; delayed in accessing payroll and pension payroll; Failed to prepare monthly wage, pension and gratuity performance analysis; Failed to submit quarterly returns on payroll to MoPS; Salary payment worth UGX.5, 582,676 was paid to 12 staffs off the IPPS. Receivables worth UGX.1, 132,227,490 relating to UWEP and YLP funds. I noted that the entity does not have an approved strategic plan that is aligned to the NDP-III at the time of audit; Underperformance worth UGX.389,604,927; under Absorption UGX.297,497,115. I noted that UGX.9, 350,000 was charged on items which did not reflect the nature of the expenditure. I noted that all the pieces of land owned by the municipality + + + + +382 + + + + + + + + + + + + lacked Titles; the entity Lacked approved Physical Development Plan and detailed Plans; Underperformance of the public Health and Hygiene Promotion worth UGX.2,996,879; an outstanding balance worth UGX.256,828,714 and UGX.148,878,891 from YLP groups and UWEP groups respectively +14 Ngora DLGOpinion Un-Qualified  I noted a number of anomalies during review of the district pension & salary payrolls such as Underpayment of salary worth UGX.39,027,007; irregular deduction of loan instalments worth UGX.834,880,411; pension and gratuity under/Non-payments of UGX.155,180,697; over remittance of salary deductions worth UGX.100,096,201 and eighty-seven (87) vacant staff positions Additionally, I observed failure to utilize wage funds of UGX.0.4 Bn; un-deducted PAYE from political leaders’ gratuity resulting in unpaid tax of UGX.10,637,490 and payment of one (1) staff worth UGX.1,776,726 off the IPPS I noted outstanding receivables of UGX.1,131,962,894 relating to UWEP and YLP I noted a number of issues in the implementation of the approved budget such as; incomplete works; under absorption of funds worth UGX.652,569,804 that was swept back to consolidated fund account; under performance of the donor & releases from other government units worth UGX 2,214,950,254; The DLG did not have an approved strategic plan that is aligned to the NDP-III at the time of audit The district mischarged expenditure worth UGX.44, 007,809 on wrong budget lines. I noted that the entity did not prepare monthly wage, pension and gratuity performance analysis and did not submit quarterly returns on payroll to MoPS. I noted that out of the total receipts/ Warrants for Covid-relief funds UGX.39,990,000 the entity did not absorb any Funds. I noted Drug Stock Outs and Expired medicines in Ngora HC. IV  I noted Lack of land titles for the district land I noted un recovered youth group funds worth UGX.930,137,986. +15 Soroti Regional Referral HospitalOpinion Un-Qualified  I noted a number of anomalies during review of the hospital pension & salary payrolls such as; Failure to submit wage estimates to MoPs, over payment of salary worth UGX 8,16,582; Underpayment of salary worth UGX.1,039,133payment of salaries worth UGX 15,516,178 to seven (7) staffs that was no longer in service and irregular deduction of loan instalments worth UGX.61,946,480. + + + + +383 + + + + + + + + + + + +  I noted an over/under payment for gratuity worth UGX8,109,089 and UGX.28,338,806 respectively I noted under/over remittance of salary deductions worth UGX.6,037,243,966 and UGX.30,277 respectively Additionally, I observed that there was delayed access to payroll by thirteen (13) new employees I noted under remittance of PAYE deductions worth5.2Mn I noted under remittance of salary deductions to UCLA/UBA worth 0.84Mn I noted issues in the implementation of the approved budget such as; under absorption of funds worth UGX.0.33 that was swept back to consolidated fund account and partially quantified and un quantified planned output The hospital did not have an approved strategic plan that is aligned to the NDP-III at the time of audit The district mischarged expenditure worth UGX.105Mn on wrong budget lines. I noted that 03 employees were paid a total of UGX.27.8 million without signed pay change reports. I noted that the Hospital did not prepare monthly wage, pension and gratuity performance analysis and thus did not submit quarterly returns on payroll to MoPS. I noted that the RRH received off-budget financing of UGX.1,652,793,876. I noted. under absorption of COVID-19 relief funds worth UGX.6,068,828 I noted that the Hospital had stock outs of Essential medicines for supportive treatment of Covid-19 during the year +16 Otuke DLGOpinion Un-Qualified  I noted a number of anomalies during review of the district pension & salary payrolls such as; delay to submit wage estimates to MoPs, accrued pension worth UGX.10,251,154; under payments of pension and gratuity of UGX.5,374,525.; an under remittance of salary deductions worth UGX.122,929,219. I noted Pension, Salary and retentions arears worth UGX.440,155,588 I noted un recovered youth group funds worth UGX.898,559,384 + + + + +384 + + + + + + + + + + + +  Additionally, I observed failure to utilize wage funds of UGX.0.97Bn; un-deducted PAYE from political leaders’ gratuity resulting in unpaid tax of UGX.9,454,537 and payment of two (2) staffs worth UGX.13,339,271 off the IPPS I noted issues in the implementation of the approved budget such as; absorption of funds worth UGX.0.58Bn that was swept back to consolidated fund account; under performance of the donor & releases from other government units worth UGX 1.452Bn The district did not have an approved strategic plan that is aligned to the NDP-III at the time of audit. I noted that the district did not prepare monthly wage, pension and gratuity performance analysis and thus did not submit quarterly returns on payroll to MoPS. I noted that one employee was paid a total of UGX.18 million without signed pay change reports. I also noted un recovered YLP and UWEP funds worth UGX.1,514,330,911 I noted that the district received off-budget financing from donors I noted that the district only recovered UGX.185,893,762 (31%) out of disbursed amount of UGX.597,983,600 (Interest Inclusive) leaving an outstanding amount of UGX.412,089,838 disbursed in financial Years 2016/2017,2017/2018, 2018/2019 and 2020/2021. + Moroto Branch  Summary of Key Findings +01 Moroto DLGOpinion Unqualified  I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs; payment of salaries worth UGX. 944,615 to two (2) staffs that was no longer in service Additionally, I observed that there was delayed access to payroll by two (02) new employees and nine (9) pensioners; failure to utilize wage funds UGX.1.9 Bn; un-deducted PAYE from political leaders’ gratuity resulting in unpaid tax of UGX. 16,712,548 and payment of one hundred twenty six (126) staffs worth UGX. 113,636,936 off the IPPS I noted Under payment of pension/ gratuity worth UGX 969,963  Over remittance of salaries worth UGX. 42,443,292. I noted that loan deductions amounting to UGX. 444 million relating to 236 employees lacked letters of undertaking. + + + + +385 + + + + + + + + + + + +  I noted a number of issues in the implementation of the approved budget such as; incomplete works; partial and non- implementation of activities worth UGX. 0.842Bn under absorption of funds worth UGX. 2.173 Bn that was swept back to consolidated fund account; under performance of the donor & releases from other government units worth UGX.4,318,906,529 delayed submission of quarterly monitoring reports to OPM & MoFPED Under performance of the URF fund worth UGX 9,622,000 I noted Failure to maintain a repayments ledger for all YIG’s (Youth Interest Groups) I noted Failure to maintain a repayments ledger for all UWEP Groups. +02 Napak DLGOpinion Unqualified  I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, Over payment of salaries worth UGX.25,677,705 Additionally, I observed that there was delayed access to payroll by fifteen (15) new employees and one (01) pensioners; failure to utilize wage funds of UGX. 0.7 Billion; un-deducted PAYE from political leaders’ gratuity resulting in unpaid tax of UGX. UGX 9,299,652. I noted a number of issues in the implementation of the approved budget such as; incomplete works; partial implementation; under absorption of funds worth UGX. 2.406 Bn that was swept back to consolidated fund account; under performance of the donor & releases from other government units worth UGX.88,076,485; delayed submission of quarterly monitoring reports to OPM & MoFPED Overpayment of salaries to 04 staff worth UGX. 263,929 arising from wrong scale. I noted Under payment of pension/ gratuity worth UGX 274,445,221 Over remittance of salaries worth 212,895,556. I noted that the entity’s strategic plan was prepared but not yet approved by NDP I noted mischarges worth UGX. 23,485,083 by the district +03 Abim DLG Qualified Opinion  I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs; Overpayments of salaries worth UGX. 2,172,750. + + + + +386 + + + + + + + + + + + + Additionally, I observed that there was delayed access to payroll + +by twenty one hundred two (102) new employees and six (06) + +pensioners; failure to utilize wage funds of UGX.0.8 billion; un- + +deducted PAYE from political leaders’ gratuity resulting in unpaid tax of UGX. 8,922,417and payment of nineteen(19) staffs worth + +UGX 46,305,014 off the IPPS + + I noted a number of issues in the implementation of the + +approved budget such as; incomplete works; partial implementation of activities under absorption of funds worth + +UGX.1.3Bn that was swept back to consolidated fund account; + +under performance of the donor & releases from other + +government units worth UGX. 5.87Bn; delayed submission of + +quarterly monitoring reports to OPM & MoFPED + + I noted that the district has an outstanding payables worth UGX. 43,702,393 by the end of the year + + Over payment of pension to 11 pensionaries worth UGX. + +2,318,376 arising from wrong scale. + + I noted Misclassification of Expenditure worth UGX.296,881,279 + + I noted that UGX 130,582,400 accrued within the year and had + +not yet been paid to pensioners by the year end. + + + +- Under remittance of salaries deduction worth to UGX. + +352,211,360. + + I noted that funds amounting to 2 million relating to pension and + +gratuity were incorrectly charged on salaries and pension codes. + + I noted that the Abim district did not have an approved strategic + +plan that is aligned to NDP-III and therefore lacks a certificate of compliance issued by National Planning Authority.. + + I noted misclassification of expenditure UGX.296,881,279 by + +Abim DLG + + I noted Lack of land title for Nyakwae Seed Secondary School. + + I noted Irregular disbursement of UGX 175,113,737 for NUSAF + +funds + + I noted Award of a VAT inclusive contract to a non-VAT registered supplier worth UGX. 610,546,414 with a VAT amount + +UGX. 109,898,354 + + + +- Unaccounted for funds worth 1,412,507,436 at year end + + + +- I noted Transfer from other Government units indicates + +warranties in the statement of appropriation of Ugx. 848,098,183, Actual in the statement of appropriation and note 5 + +387 + + + + + + + + + + + + of UGX. 1,073,044,082 more than the amount warrantied by Ugx. 224,945,899. The trial balance also indicate a figure of Ugx.1,194,065 I noted Statement of Cash Flow indicates a total amount from operating, investing and financing activities as Ugx.17,850,462,341 while the payment file indicates it as Ugx.17,808,775,851 leading to an overstatement of Ugx. 41,686,490. I noted Unsupported receivables figure in the Statement Of Financial Position of UGX. 1,683,003,314 as there is no schedule of receivables attached to the financial statement. +04 Kaboong DLGOpinion Unqualified  I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, Over payment of salaries worth UGX.12,181,796; failure to utilize wage funds of UGX. UGX.1.9billion.; un-deducted PAYE from political leaders’ gratuity resulting in unpaid tax of UGX. 9,870,780 I noted a number of issues in the implementation of the approved budget such; incomplete works; partial implementation of activities, under absorption of funds worth UGX.2.042Bn that was swept back to consolidated fund account; delayed submission of quarterly monitoring reports to OPM & MoFPED The district mischarged expenditure worth UGX.275, 847,736 on wrong budget lines. I noted under remittance of salaries worth UGX. 55,693,284 The district mischarged expenditure worth UGX. 551,346,221 on wrong budget lines. I noted 93 vacant positions at the district I noted unbudgeted Funds from Ministry of Education and Sports to Kaabong DLG UGX.42,343,319 I noted Irregular disbursement of NUSAF 3 Funds to M/S Agromax (U) Limited UGX.717,390,988 +05 Amudat DLGOpinion Unqualified  I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, irregular deduction of loan instalments worth UGX.1,036,328; failure to utilize wage funds of UGX.0.851 billion un -deducted PAYE from political leaders’ gratuity resulting in unpaid tax of UGX.6,432,420. and payment of two hundred two (222) staffs worth UGX.161,371,533 off the IPPS I noted a number of issues in the implementation of the approved budget such as; incomplete works; partial + + + + +388 + + + + + + + + + + + + implementation and quantified under absorption of funds worth UGX.4.3Bn that was swept back to consolidated fund account; under performance of the donor & releases from other government units worth UGX.1,744,210,000; delayed submission of quarterly monitoring reports to OPM & MoFPED The district mischarged expenditure worth UGX.275, 847,736 on wrong budget lines. Over remittance of salaries worth UGX. 36,510,817 I further noted that all loan deductions relating to 7 employees did not have evidence of consent by the employees  UGX.101,273,688 was paid as residual arrears to 2 pensioners who had not been verified (and thus not part of schedule) by MoFPED I noted that the entity had not prepared and approved a strategic plan that is aligned to the NDP-III at the time of audit. I noted that district failed to recover worth UGX.390,319,125 of YLP funds I noted that the district has outstanding balance worth UGX.390,319,125 from UWEP +06 Kotido DLGOpinion Unqualified  I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs; payment of salaries worth UGX.1,395,233 to two (2) staffs that was no longer in service. Additionally, I observed that there was delayed access to payroll by thirty nine (39) new employees; failure to utilize wage funds of UGX.4.127billion; un-deducted PAYE from political leaders’ gratuity resulting in unpaid tax of UGX.8, 766,597. Under remittance of salary deduction worth UGX.18, 888,478. I noted that the district has unauthorized loan deductions worth UGX.196,780,103  I noted that the Kotido district did not have an approved strategic plan that is aligned to NDP-III by the time of audit. I noted a number of issues in the implementation of the approved budget such as; incomplete works; partial implementation and no quantified activities under absorption of funds worth UGX.1,291,391,337that was swept back to consolidated fund account; under performance of the donor & releases from other government units worth UGX.1,603,270,000; delayed submission of quarterly monitoring reports to OPM & MoFPED +07 Kotido MC  I noted a number of anomalies during review of the municipal council pension & salary payrolls such as; Failure to submit wage + + + + +389 + + + + + + + + + + + + Opinion Unqualified estimates to MoPs,; payment of salaries worth UGX.1,819,248 to two (2) staffs that was no longer in service ; failure to utilize wage funds of UGX.0.8 billion.; un-deducted PAYE from political leaders’ gratuity resulting in unpaid tax of UGX.12,448,800 and payment of sixteen (16) staffs worth UGX.68,011,511 off the IPPS I noted a number of issues in the implementation of the approved budget such as;; incomplete works; partial implantation non quantified under absorption of funds worth UGX.211,565,285 873 that was swept back to consolidated fund account; under performance of the donor & releases from other government units worth UGX.1,089,757,389; delayed submission of quarterly monitoring reports to OPM & MoFPED I noted Over payment of salaries worth UGX.882,243 to 25 staff arising from wrong scale I noted under remittance of salaries worth UGX. 43,787,620 I noted that the Municipal Council has unauthorized loan deductions worth UGX.14.77 million I noted that the municipal council had not prepared and approved a strategic plan that is aligned to the NDP-III at the time of audit.  The municipal has un recovered UWEP funds worth UGX.277,734,805. +08 Karenga DLGOpinion Unqualified  I noted anomalies during review of the district pension & salary payrolls such as; seventy-three (73) vacant positions; failure to utilize wage funds of UGX.1.089Bn.; un-deducted PAYE from political leaders’ gratuity resulting in unpaid tax of UGX.5,294,160 and payment of eight (8) staffs worth UGX. 28,433,650 off the IPPS; under remittance of employee salary deductions worth UGX.361,889,043 I noted issues in the implementation of the approved budget such as; under absorption of funds worth UGX.636,616,391 that was swept back to consolidated fund account; under performance of the donor & releases from other government units worth UGX.4,959,037,208 The DLG did not have an approved strategic plan that is aligned to the NDP-III at the time of audit The district mischarged expenditure worth UGX.275, 847,736 on wrong budget lines I noted that Karenga district did not include IPPS recurrent costs in its budget. + + + + +390 + + + + + + + + + + + +  I noted that the entity did not prepare monthly wage, pension and gratuity performance analysis and thus did not submit quarterly returns on payroll to MoPS. I noted un quantified, partially implemented and un implemented planned output I noted underperformance of maintenance funds worth UGX.35,851,027 I noted that administrative advances worth UGX.36,367,220 remained unaccounted for at year end +09 Nakapiripirit DLGOpinion Unqualified  I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, Over payment of salary worth UGX.6,225,884; Underpayment of salary worth UGX. 120,957,229; pension worth UGX.102,547,496 and payment of residual arrears to 17 pensioners (not part of schedule) worth UGX.228,354,584 I noted outstanding receivables worth UGX.748,268,485 by year end  I noted outstanding payables worth UGX.204,060,122 by year end Additionally, I observed that there was delayed access to payroll by four (4) new employees and five (5) pensioners; failure to utilize wage funds of UGX.0.8 Bn, un-deducted PAYE from political leaders’ gratuity resulting in unpaid tax of UGX.11,064,133and payment of twenty-six (6) staff and two (2) pensioners worth UGX.67,526,067 off the IPPS; over/under remittance of employee salary deductions worth UGX.12,510,739 and UGX.30,390,380 respectively The DLG did not have an approved strategic plan that is aligned to the NDP-III at the time of audit  I noted partially quantified, partially implemented and un implemented planned output I noted issues in the implementation of the approved budget such as; under absorption of funds worth UGX.387,179,529 that was swept back to consolidated fund account; under performance of the donor & releases from other government units worth UGX.3,798,701,446; I noted that the district did not prepare monthly wage, pension and gratuity performance analysis and thus did not submit quarterly returns on payroll to MoPS  .  I noted that funds to the tune of UGX.37,212,320 were irregularly diverted from the activities on which they were + + + + +391 + + + + + + + + + + + + budgeted and spent on other activities without seeking and obtaining the necessary approvals. Irregularities in evaluation and award of contract to Ramiram Company Ltd for the construction of a teachers’ house in Doo Primary under procurement reference NAKP543/WRKS/20- 21/00003  The district entered into a VAT exclusive contract with Bole Engineering Ltd (TIN:) vide NAKP543/WRKS/20-21/00005 worth UGX.55,000,000 despite the company being registered for VAT +10 Moroto MCOpinion Unqualified  I noted anomalies during review of the Municipal pension & salary payrolls such as; Failure to submit wage estimates to MoPs Underpayment of salary worth UGX. 359,225; Additionally, I observed that there was delayed access to payroll by two (2) pensioners; failure to utilize wage funds of UGX.0.32 Bn; un-deducted PAYE from political leaders’ gratuity resulting in unpaid tax of UGX.3,314,340 over/under remittance of employee salary deductions worth UGX.5,297,009 and under UGX.1,329,429 respectively The MC did not have an approved strategic plan that is aligned to the NDP-III at the time of audit I noted issues in the implementation of the approved budget such as; under performance of the donor & releases from other government units worth UGX. 439,621,456; un quantified planned output I noted that the Municipal Council did not prepare monthly wage, pension and gratuity performance analysis and thus did not submit quarterly returns on payroll to MoPS .  I noted that Expenditure amounting to UGX.40,544,000 remained unsupported as at the close of the financial year +11 Nabilatuk DLGOpinion Unqualified  I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, Over payment of salary worth UGX.41,886,731; Underpayment of salary worth UGX.88,251,765 irregular deduction of loan instalments of twenty-seven (27) employees worth UGX.32,111,398 and excess loan deductions for eighteen (18) employees worth UGX.23,960,268 I noted payments to non-existent staff worth UGX.12,263,143 I noted over/under remittance of employee salary deductions worth UGX.22,136,522 and UGX.28,681,822 respectively I noted outstanding receivables worth UGX.306,557,669. Additionally, I observed that there was delayed access to payroll by twenty-seven (27) new employees; failure to utilize wage funds of UGX.0.766 Bn; un-deducted PAYE from political leaders’ + + + + +392 + + + + + + + + + + + + gratuity resulting in unpaid tax of UGX.111,240 and payment of thirty-five (35) staff pensioners worth UGX.52,863,034 off the IPPS and residual arrears to two (2) staff UGX.3,128,128 The district did not have an approved strategic plan that is aligned to the NDP-III at the time of audit I noted a number of issues in the implementation of the approved budget such as; un implemented works on construction of Nataparengan piped water system and rehabilitation of Lorukumo piped water system; under absorption of funds worth UGX.353,461,659 that was swept back to consolidated fund account; under performance of the donor & releases from other government units worth UGX.686,812,859; I noted partially quantified and partially implemented planned output I noted that the district did not prepare monthly wage, pension and gratuity performance analysis and thus did not submit quarterly returns on payroll to MoPS I noted that Nabilatuk District received off-budget financing to a tune of UGX.12,464,800 directly from the Drylands Projects + Mbale Branch Summary of Key Findings +01 Bulambuli DLGOpinion Unqualified  I noted a number of anomalies during review of the DLG pension & salary payrolls such as; delay to submit wage estimates to MoPs; Underpayment of payroll worth UGX.53, 413,352; Wrong computation of gratuity worth net overpayment of UGX. 4,908,163 and payment of salaries worth UGX.799, 094 to one (1) staff that was no longer in service. I noted that the entity had receivables worth UGX 865,908,605 and had Payables worth UGX.5,000,000 at close of financial year Additionally, I observed that there was failure to utilize wage funds of UGX.1.6Bn; un-deducted PAYE from political leaders’ gratuity resulting in unpaid tax of UGX.16,798,690and payment of nine (9) pensioners worth UGX.170,017,059 off the IPPS; partially implemented output worth UGX. 0.863Bn and un implemented output worth UGX.0.558Bn I noted that the District LG did not prepare monthly wage, pension and gratuity performance analysis report for submission to MoPS I noted a number of issues in the implementation of the approved budget such as; shoddy works at Bumugusha - Sisiyi Road, Gimayote - Malama Road, the boreholes; incomplete works on Buyaga-Muyembe road, Bulaago and Bwikhonge Health Centre IIs to IIIs; under absorption of funds worth UGX.2,653,035,652 that was swept back to consolidated fund + + + + +393 + + + + + + + + + + + + account; under performance of the donor & releases from other government units worth UGX.234,118787; non submission of quarterly monitoring reports to OPM & MoFPED; delayed submission of performance reports and unremitted lower local government revenue worth UGX 47,216,000 The District mischarged expenditure worth UGX 103,936,059 on wrong budget lines. I observed that key positions, including that of District engineer, District production officer, District education officer, and District planner had remained vacant by end of year. I noted drug stock out at Bulaago Health Centre I observed that the district lacked vital road equipment such as: Motor Grader, Wheel Loader, Bulldozer, Excavator and Cargo Truck I noted an Under-deduction of LST worth UGX 214,800,000 and PAYE worth UGX 32,139,829. +02 Manafwa DLGOpinion Unqualified  I noted a number of anomalies during review of the DLG pension & salary payrolls such as; failure to submit wage estimates to MoPs, over payment of salaries worth UGX. 14,044,594; Underpayment of salaries worth UGX. 10,735,580; Wrong computation of gratuity worth net overpayment of UGX. 14,474,704 I noted an over and under remittance of employee salary deductions worth UGX 129,973,902 I observed that there was failure to utilize wage funds worth UGX.0.890 billion I noted under deduction of PAYE from employee salary worth UGX. 20,600,350. I noted a number of issues in the implementation of the approved budget such as; under absorption of funds worth UGX. 2,423,640,138 that was swept back to consolidated fund account; under performance of the donor & releases from other government units worth UGX.2,041,524,555; delayed submission of quarterly monitoring reports to OPM & MoFPED; partial implementation of planned activities and under performance of funds meant for maintenance worth UGX. 7,252,593 The DLG mischarged expenditure worth UGX. 476,473,064 on wrong budget lines I however noted that UGX. 2,521,572 was paid as residual arrears to 10 staff and 2 pensioners who had not been verified (and thus not part of schedule) by MoFPED. + + + + +394 + + + + + + + + + + + +  I noted that 2 employees were paid a total of UGX. 7,461,459 without signed pay change reports.  I noted that the DLG did not prepare monthly wage, pension and gratuity performance analysis and thus did not submit quarterly returns on payroll to MoPS. I noted outstanding payables worth UGX. 1,239,952,064. +03 TORORO DLGOPINION: UNQUALIFIED  I noted a number of anomalies during review of the DLG pension & salary payrolls such as; Failure to submit wage estimates to MoPs, over payment of salaries worth UGX.4,068,031; Underpayment of salaries worth UGX.15,716,191 and payment of salaries worth UGX.57,446,500 to staffs that was no longer in service accrued pension worth UGX.47,240,461 I noted an over and under remittance of employee salary deductions worth UGX.6,208,787 Additionally, I observed that there was delayed access to payroll by one hundred seventeen (117) new employees; failure to utilize wage funds of UGX.2.18 Bn, un-deducted PAYE from political leaders’ gratuity resulting in unpaid tax of UGX. 11,370,060 and payment of four (4) staffs worth UGX 3,683,801 off the IPPS I noted a number of issues in the implementation of the approved budget such as; failure to quantify planned output; partial and non- implementation of planned activities; under absorption of funds worth UGX. 2,597,410,656 that was swept back to consolidated fund account; under performance of the donor & releases from other government units worth UGX. 11.87Bn. The DLG mischarged expenditure worth UGX.45,068,279 on wrong budget lines. I noted that the DLG did not prepare monthly wage, pension and gratuity performance analysis reports and did not submit quarterly returns on payroll to MoPS I noted payables worth UGX.335, 571,661 outstanding at year end. +04 MBALE CITYOPINION: Unqualified  I noted a number of anomalies during review of the city pension & salary payrolls such as; Failure to submit wage estimates to MoPs, Over payment of salary and pension worth UGX.810,144,208; Underpayment of salary and pension worth UGX.915,374,687; Wrong computation of salaries worth net overpayment of UGX.91,569,052; payment of salaries worth UGX 30,376,995 to twenty six (26) staffs that were no longer in service and irregular deduction of loan instalments of one hundred seventeen (117) worth UGX. 159,385,584. I noted receivables from other UWEP, YLP and other debtors + + + + +395 + + + + + + + + + + + + worth UGX. 2,239,688,779 by the close of the financial year under review. I noted outstanding payables worth UGX 545,408,158 at the end of the financial year. The city did not have an approved strategic plan that is aligned to the NDP-III at the time of audit Additionally, I observed failure to utilize wage funds of UGX. 1,235,588,920; un-deducted PAYE from political leaders’ gratuity resulting in unpaid tax of UGX.3,015,540and payment of staffs and pensioners worth UGX.161,000,660 off the IPPS; unpaid salaries worth UGX.161,000,660; payment of consolidated health lunch allowance to ineligible staff worth UGX.2,170,750 and a net over payment of arrears of UGX.64,535,832 I noted an over and under deduction of loans worth UGX.13,477,848 and UGX.14,453,773 respectively I noted that the city did not prepare monthly wage, pension and gratuity performance analysis and did not submit quarterly returns on payroll to MoPS. I noted a number of issues in the implementation of the approved budget such as; partial and unquantified planned output, partial and non-implemented planned output ; shoddy works on Nambozo road incomplete works on Nambozo road; under absorption of funds worth UGX.1,600,759,501 that was swept back to consolidated fund account; under performance of the donor & releases from other government units worth UGX.3.17Bn; over absorption of funds worth UGX 73,268,000 The city mischarged expenditure worth UGX 65,785,703 on wrong budget line I noted non regular maintenance of street lights +05 Bukwo DLGOpinion Unqualified  I noted a number of anomalies during review of the DLG pension & salary payrolls such as; Failure to submit wage estimates to MoPs, Over payment of salary worth UGX.4,296,996; Underpayment of salary, gratuity and pension worth UGX.16,337,404 and delayed deletion of 4 staff from the payroll worth UGX.9,328,845 I noted that the district did not prepare monthly wage, pension and gratuity performance analysis and thus did not submit quarterly returns on payroll to MoPS Additionally, I observed that there was delayed access to payroll by 0ne (1) new employee and nine (2) pensioners; failure to utilize wage funds of UGX.0.568 billion; un-deducted PAYE from political leaders’ gratuity resulting in unpaid tax of + + + + +396 + + + + + + + + + + + + UGX.11,064,570 over and under remittance of employee salary deductions worth UGX.1,789,798 and UGX.14,974,441 respectively I noted a number of issues in the implementation of the approved budget such as; delayed works at the HCIIs; under absorption of funds worth UGX.2,421,073,740 that was swept back to consolidated fund account; under performance of the donor & releases from other government units worth UGX.6,333,457,050; partial and un quantified planned output and partial and un implemented planned output The district did not prepare annual monitoring plans neither were quarterly monitoring reports prepared and submitted. I noted underperformance of budgeted funds for NUSAF-3 projects worth UGX.183,000,000 and URF funds worth UGX.10,265,009 that affected implementation of the programs I observed that the district lacked vital road equipment like an excavator, a bulldozer, a pedestrian roller and tampers/rammers. I noted an under absorption of funds worth UGX 1,005,458,204 relating to construction of the college, secondary school and upgrading of HCIIs The district lacked titles for 36 pieces of its land. +06 Sironko DLGOpinion Unqualified  I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, Over payment of salary worth UGX.3,937,076; Underpayment of salary worth UGX.9,336,463 delayed deletion of 3 staff from the payroll worth UGX.2,418,531 and 365 positions vacant I noted residual arrear payments to one (1) pensioner who was not on the schedule worth UGX.25,856,920 I noted outstanding receivables worth UGX.1, 395,021,574 and payables worth UGX.1, 271,747,912 by the end of the year. Additionally, I observed that there was delayed access to payroll by nineteen (19) new employees and two (2) pensioners; un- deducted PAYE from political leaders’ gratuity resulting in unpaid tax of UGX.13,980,570 over/under remittance of employee salary deductions worth UGX.12,620,619 and UGX.18,207,521 respectively The district did not have an approved strategic plan that is aligned to the NDP-III at the time of audit I noted partial and unquantified planned output, partial and non- implemented planned output + + + + +397 + + + + + + + + + + + +  I noted issues in the implementation of the approved budget such as; delayed works at Buyobo Health Centre, Buteeza/Bumirisa Seed Secondary School; under performance of the donor & releases from other government units worth UGX.31,073,887; The district lacked land tittles for 14 of its properties I noted that the district did not prepare monthly wage, pension and gratuity performance analysis and thus did not submit quarterly returns on payroll to MoPS I noted Un recovered YLP/Women groups funds worth UGX 1,076,861,319 +07 Namisidwa DLGOpinion UnQualified  I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage estimates to MoPs, payment of salaries worth UGX.9,737,931 to twelve (12) staffs that were no longer in service over/under remittances of employee salary deductions worth UGX.15,456,000 and UGX.9,368,000 respectively Additionally, I observed that there was delayed access to payroll by eleven (11) pensioners; failure to utilize wage funds of UGX.1.8 billion; un-deducted PAYE from political leaders’ gratuity resulting in unpaid tax of UGX.10,343,040 and payment of twenty twelve (12) staffs worth UGX.44,528,289 off the IPPS I noted a number of issues in the implementation of the approved budget such as; Failure to Construct Namboko Seed Secondary School ; delayed works of Mukoto Seed Secondary School ; under absorption of funds worth UGX.1,965,728,111 that was swept back to consolidated fund account; under performance of the donor & releases from other government units worth UGX.639,520,961; delayed submission of quarterly monitoring reports to OPM & MoFPED; Un implemented procurement plan worth UGX 2,601,160,000 and Underperformance of maintenance funds worth UGX.27,667,500. District received off-budget financing worth UGX.153,248,760 directly from Ministry of Health (MoH) I noted outstanding receivables worth UGX 1,380,786,175  The entity did not prepare and submit the annual monitoring plans to Moped, MoLG and NPA as required.  I noted Underperformance of UWEP/YLP funds worth of UGX.170,000,000  I noted district land lacked titles +08 Bududa DLG  I noted a number of anomalies during review of the district pension & salary payrolls such as; Failure to submit wage + + + + +398 + + + + + + + + + + + + Opinion Unqualified estimates to MoPs, over payment of salary worth UGX. 40,955,029 Underpayment of salary due to wrong salary scales worth UGX 1,770,196 and Wrong computation of gratuity worth net overpayment of UGX. 16,342,974; I noted payment to twelve (12) employees without signed pay change reports worth UGX. 33,563,249 Additionally, I observed that there was; failure to utilize wage funds of UGX.0.386 billion; un-deducted PAYE from political leaders’ gratuity resulting in unpaid tax of UGX. 25,271,520; over/under remittance of employee salary deductions wort UGX. 374,322,700 and UGX. 2,544,986 respectively and residual arrears to 10 staff and 5 pensioners (not part of schedule) worth UGX. 53,269,453 I noted a number of issues in the implementation of the approved budget such as; incomplete works on five Community Access Roads (CARs); under absorption of funds worth UGX. 3,358,629,901 that was swept back to consolidated fund account; under performance of the donor & releases from other government units worth UGX.12,509,500; Under performance of maintenance funds worth UGX. 2,807,020 and un implemented procurement plan worth UGX.357,489,000 I noted an under absorption of preliminary expenditures worth UGX 327,911,000 I noted partial and non-implemented planned output The district mischarged expenditure worth UGX. 53,269,453 on wrong budget lines. It was noted that the district did not conduct revenue assessment. I noted that the lacked District signed MOUs for Donor funds received during the year worth UGX. 25,203,300 from United Nations Children Fund (UNICEF) and World Health Organization (WHO). +09 KIBUKU DLGOpinion Unqualified  I noted a number of anomalies during review of the district pension & salary payrolls such as; Underpayment of pension worth UGX.97,316,845.; payment of salaries worth UGX.7,336,993 to fourteen (14) staffs that was no longer in service and over remittance of employee salary deductions UGX.430,578,979 I noted outstanding payables worth UGX 128,739,122 at year end. I observed that there was delayed access to payroll by twenty- seven (27) new employees and nineteen (19) pensioners and 420 vacant staff positions + + + + +399 + + + + + + + + + + + +  I noted a number of issues in the implementation of the approved budget such as; I noted partial and unquantified planned output, partial and non-implemented planned output; under absorption of funds worth UGX 5,639,972,053 that was swept back to consolidated fund account; under performance of the donor & releases from other government units worth UGX.789,212,932 and failed submission of quarterly monitoring reports to OPM & MoFPED The district mischarged expenditure worth UGX.47,252,328 on wrong budget lines I noted that Kibuku Health Centre IV experienced drug stock outs I noted that the entity failed to procure assorted medical equipment for upgraded HCs worth UGX.210,937,500 I noted that the entity failed to conduct pre-bid meetings for 23 contracts as provided for in the tender documents  I noted unrecovered funds from Women groups worth UGX.522,692,690 +ARUA BRANCH Summary of Key Findings +01. Obongi DLGOpinion Unqualified  I reviewed funds absorption and noted that UGX.4.6 billion (100%) was spent out of the total receipts of UGX.5.9 billion, resulting in an unabsorbed balance of UGX.1.3 billion. The unabsorbed balance was subsequently swept back to the consolidated fund account. I advised the Accounting Officer to ensure that the activities for which the un absorbed funds were meant are rolled over and implemented in subsequent financial year. I noted that the District made payroll deductions of UGX.123 million, but did not remit concurrently with the salary payments in 8 out of 12 months. On average, it delayed by 55 days. I advised the Accounting Officer to always ensure that all deductions to UCLA/UBA are remitted concurrently with salary payments. The ineffectiveness of the system may affect the integrity of the IPPS payroll. I reviewed the approved Local revenue estimates for the financial year 2020/2021 and noted that the District budgeted to collect UGX. 463,890,000 during the year but collected UGX.318,243,595 representing (69%) performance. The shortfalls in Local Revenue collections of UGX.145,646,405 (31%) were recorded in Local Service Tax, Land Fees , Business Licence, other tax revenues, administrative fees and Application Fees. I reviewed the District’s revenue performance and noted the + + + + +400 + + + + + + + + + + + + following; The Entity budgeted to receive UGX.17,548,360,000 as transfers from other Government Units. However, only UGX.14,007,769,263 (80%) was received. The Accounting Officer explained that low Local Revenue performance was due to the effects of COVID 19 lockdown that affected the performance of markets and secondly the disaster of floods impacted negatively on our major source of revenue, fisheries where most landing sites were flooded. The Entity budgeted to receive UGX.17,548,360,000 as transfers from other Government Units. However, only UGX.14,007,769,263 (80%) was received. The Accounting Officer explained that The under-performance of other government transfers was due to low performance of DRDIP. The funding for DRDIP was only for approved sub projects which were generated by the beneficiary groups. The District budgeted to receive UGX. 655,424,300 as external/donor financing out of which UGX.630,174,440 (96 %), was receivedThe Accounting Officer explained that External Financing performed very well up to 96% and all planned activities were implemented as planned. The difference of only 4% has had no impact the implementation of the planned activities Out of the total receipts for the financial year of UGX.27,315,767,447, UGX.42,423,071,166 (92%) was spent by the entity resulting in an unspent balance of UGX. 22,056,617,661 (81%). The unspent balance at the end of the financial year was subsequently swept back to the consolidated fund account. I advised the Accounting Officer to ensure that funds for these activities are in subsequent year un implemented activities rolled over and subsequently ensure the speedy implementation. I noted that the District received a total of UGX.22,103,714 as capitation grant. I reviewed the bank statements sampled schools and noted that the funds were still on the school accounts by 30th September, 2021 and had hence not been utilized. I advised the Accounting Officer to liaise with relevant authorities and ensure that these funds are put to productive usage. +02. ZOMBO DLGOpinion Unqualified  I reviewed funds absorption and noted that UGX.12.35 billion (81.78%) was spent out of the total receipts of UGX.15.1 billion, resulting in an unabsorbed balance of UGX.2.75 billion. The unabsorbed balance was subsequently swept back to the consolidated fund account. A comparison of base pay in the IPPS payroll registers with the salary structure for 2020/21, revealed that 23 staff were paid + + + + +401 + + + + + + + + + + + +using wrong salary scales, leading to under payments of UGX + +0.932 million, contrary to Section B–a (6) & (7) of the Uganda + +Public Service Standing Orders, 2010. + + I noted that UGX.20,116,483 was paid to 12 staff who had either retired, transferred, absconded or died. I advised the Accounting Officer to ensure prompt removal of staff from the + +payroll. + +- I noted that whereas UGX.3,328,551,409 was deducted from + + + +employees’ salaries to be remitted to different beneficiaries, UGX.3,319,064,736 was remitted, leading to an over and/or + +under remittance amounting to UGX.7,357,520 and UGX + +6,415,791 respectively. The Accounting Officer explained that the + +underpayment would be paid during subsequent remittances. + + I noted that the District made unauthorized loan deductions totaling UGX 680 million. The deductions were from 461 + +employees that neither had letters of undertaking nor existed in + +the “active deduction” or the “my approval” reports on the + +PDMS-Payroll Deduction Management System, operated by PCA- Payroll Consults Africa. + + I noted that 13 newly recruited/ transferred employees delayed + +to access payroll, with delays ranging between 1-2 months. + +Delayed access to payroll leads to demotivation of the affected + +staff and accumulation of salary arrears. + + I noted that one pensioner; Okenga Abedican delayed to access the pension payroll, with delays of 31 days. Delayed access to + +the pension payroll leads to poor wellbeing of the affected retirees as well as accumulation of pension arrears. + + + +- I observed that there were variances of UGX.263,261,431 + +between the figures in the MoPS IPPS and district payroll registers. I advised the Accounting Officer to ensure that the district IPPS payroll registers are consistent with MoPS payroll + +data. + + + +- Included in the Statement of Financial Position on page 7 of the Financial Statements are receivables worth UGX.485,694,634 as + +supported by Note 19 to the financial statements. The amount for the previous financial year was UGX.193,836,559. The amounts relate to advances to Youth and Women Interest groups. I advised the Accounting Officer to continue sensitizing Youth Interest Groups and women groups to recover the funds. + + I noted that the District had deposits worth UGX.396,301,510 presented in the Statement of Financial Position and disclosed in note 25 to the financial statements. The figure increased by + +UGX.4,000,000 from UGX.394,301,510 which were recoveries of + +the Youth Livelihood Programme (YLP) as recommended by + +Inspectorate of Government. + + I noted that though the district had prepared the Strategic plan, + +402 + + + + + + + + + + + +it was still in draft form at the time of audit and certification from + +NPA had not been obtained. I advised the Accounting Officer to liaise with NPA to expedite the process of reviewing and approval + +the Strategic Plan of the District. + + I reviewed the approved Local revenue estimates for the financial year 2020/2021 and noted that the District budgeted to collect + +UGX.1,040,800,000 during the year but collected UGX.296,535,563 representing (29%) performance. The + +shortfalls in Local Revenue collections of UGX.744,264,437 (71%) were recorded in Local Service Tax, Land Fees , Business Licence, other tax revenues, administrative fees and Application Fees. + +- The District budgeted to receive UGX. 1,426,989,000 as external/donor financing out of which UGX.1,304,944 (0.09%), was received. + + + + Out of the total receipts for the financial year of + +UGX.28,843,895,403, UGX.25,055,771,226 (97%) was spent by the district resulting in an unspent balance of + +UGX.3,788,124,204. The unspent balance at the end of the + +financial year was subsequently swept back to the consolidated fund account. + + I noted that the district prepared annual monitoring plans dated 02/08/2021, but had not been submitted to MoFPED, MoLG and NPA as required by the time of audit (10/09/2021). Further, the + +district had not also submitted quarterly monitoring reports to the Office of the Prime Minister and MoFPED as required by the + +time of audit (10/09/2021). This practice is not only in + +contravention of the circular instructions but also hinders efforts of timely monitoring of the implementation of the budget. + + I noted that management submitted performance reports for Q1 + +and Q2 in time while performance reports for Q3 and Q4 were submitted after deadline given for submission of the reports. + + In addition, I did not obtain evidence to confirm that the Accounting Officer Prepared Monitoring Plans and reports which + +are important in ensuring that the budget performs as expected. + + I noted delayed completion of Construction of Atyak Seed Secondary School under the UGIFT project, A joint supervision + +report dated 18/5/2021 was reviewed and put the work so far done at only 66% and cumulative total payments had been made + +of UGX 1,365,729,024 ( representing 65% of the contract sum) by end of year. By the time of the audit in September 2021, + +about 5% of the works were still incomplete yet the contract had long expired. + + I noted that the District received a total of UGX.154,269,648. I + +reviewed the bank statements for sampled schools and noted that the funds were still on the schools’ accounts by 30th + +403 + + + + + + + + + + + + September, 2021 and had hence not been utilised. +03. YUMBE DLGOpinion Unqualified  I reviewed payroll funds absorption and noted that UGX.22 billion (94%) was spent out of the total receipts of UGX.23.5 billion, resulting in an unabsorbed balance of UGX.1.44 billion. The unabsorbed balance was subsequently swept back to the consolidated fund account. Under absorption of released funds resulted into failure to recruit the required staff. A review of the pension payroll data and IFMS payments, revealed variances between amounts on the payroll and payments to individual pensioners, leading to over payments of UGX.87,774,282 contrary to article 254 (1) & (3) of the 1995 constitution (as amended). The over payment of pension and gratuity led to over statement of pension expenditure. A comparison of base pay in the IPPS payroll registers with the salary structure for the financial year 2020/21, revealed that 51 staff were paid using appropriate salary scale but wrong band contrary to Section B–a (6) & (7) of the Uganda Public Service Standing Orders, 2010. The Accounting Officer promised to address it through monthly verification of the payroll. I noted that UGX.11,772,809 was paid to 9 staff who had either retired, transferred, absconded or died. These were payment for services not rendered to the District resulting in loss of funds to Government. I advised the Accounting Officer to ensure prompt removal of ineligible staff from the payroll. I noted that whereas UGX.4,904,248,620 was deducted from employees’ salaries to be remitted to different beneficiaries, UGX.4,898,616,110 was remitted, leading to an under remittance of UGX.5,632,510. I advised the Accounting Officer always ensure that full remittances are done to the respective beneficiaries. I noted that the District made payroll deductions of UGX.1,362,978,294 million, but did not remit concurrently with the salary payments in 5 out of 12 months. On average, it delayed by 35 days. I advised the Accounting Officer to ensure that all deductions to UCLA/UBA are remitted concurrently with salary payments. I noted delays in the remittance of PAYE deductions to URA of 3 days, in the month of November where deduction was made on 15/11/2020 and the remittance was made on 18/11/2020. The Accounting took note of the observation. I noted that the District did not subject political leaders’ gratuity totaling to UGX.46,923,600 to the computation of PAYE in IPPS, leading to an under deduction of UGX.10,970,580, contrary to section 19(1) (a) of the Income Tax Act. I advised the Accounting Officer to ensure that political leaders’ gratuity is subjected to tax by including in the gross taxable income when + + + + +404 + + + + + + + + + + + +computing PAYE. + + I noted that 20 pensioners delayed to access the pension payroll, with delays ranging between 4.5 months. I advised the Accounting Officer to ensure that pensioners promptly access the + +payroll and are subsequently paid. + + I noted that 16 employees were paid a total of UGX.52 million without signed pay change reports. This affects the + +integrity/credibility of the payroll and creates an avenue for payroll abuse. + + I noted that the District did not prepare monthly wage, pension + +and gratuity performance analysis and thus did not submit + +quarterly returns on payroll to MoPS, contrary to Paragraph 2.1 + +of Establishment Notice No. 1 of 2020. The Accounting Officer took note of the observation and stated that action has been initiated during Q1 of the FY 2021/22. + + A comparison of the payroll register and IFMS payment file, I noted that 3 pensioners were paid a total of UGX.75,420,453 off the IPPS. The Accounting Officer explained that Pension and + +gratuity arrears had their schedule of payment; therefore, they would not be paid through IPPS. + + I noted that the district had not prepared and approved a strategic plan that is aligned to the NDP-III at the time of audit. I advise Management to urgently prepare and have approved a strategic plan that is aligned to NDP-III to facilitate the + +achievement of the NDP objectives. + + I reviewed the approved Local revenue estimates for the financial year 2020/2021 and noted that the District budgeted to collect + +UGX. 663,494,100 during the year but collected UGX.445,457,586 representing (67%) performance. I advised the + +Accounting Officer to always ensure that NTR is collected as + +budgeted. + + The District budgeted to receive UGX.54,077,677,212 (revised) as grants from the Treasury. I noted that, UGX.48,328,375,344 + +was warranted/ received representing 89% performance. + + The District budgeted to receive UGX.38,231,319,640 as + +transfers from other Government Units. However, only UGX.23,692,222,658 (62%) was received. + + The District budgeted to receive UGX.5,980,183,220 as + +external/donor financing out of which UGX.2,031,658,591 (34%), was received. + + Out of the total receipts for the financial year of + +UGX.74,531,220,778, UGX.57,130,020,926 (76.6%) was spent by the district resulting in an unspent balance of + +UGX.17,401,199,852 (23.4%). The unspent balance at the end of + +the financial year was subsequently swept back to the + +405 + + + + + + + + + + + + consolidated fund account. I advised the Accounting Officer to ensure that the rolled over activities are given priority during implementation. I noted that Management submitted performance reports for Q2, Q3 and Q4 after the deadline. In addition, I did not obtain evidence to confirm that the Accounting Officer Prepared Monitoring Plans and reports which are important in ensuring that the budget performs as expected. Contrary to Section 34 (1) of the Public Finance Management Act 2015, I observed the District constructed two (2) operating theaterstheatres worth UGX.666,903,480 at Ariwa Health Centre (HC) III and Baraka HC III in the financial year 2017/18 and were not functional and without operating equipment by close of audit. The unutilized operating theatre denies services to the community +04. TEREGO DLGOpinion Unqualified  Terego District Local Government (DLG), being a newly created District curved out of Arua District, I noted that the payroll for the year under review was managed by Arua DLG. As a result, the pay roll analysis for Terego District was made under the audit of Arua DLG. I, noted that although the district aligned its targets for the F/Y 2020/2021 with the DDPIII and NDPIII, the District strategic plan had not been approved. I advised the Accounting Officer to urgently prepare and approved a strategic plan that is aligned to NDP-III to facilitate the achievement of the NDP objectives I reviewed the approved Local revenue estimates for the financial year 2020/2021 and noted that the District budgeted to collect UGX. 116,717,055 during the year but collected UGX.89,153,132 representing (76%) performance. The shortfalls in Local Revenue collections of UGX. UGX.27,563,923(24%) were recorded in Local Service Tax, Land Fees , Business Licence, other tax revenues, administrative fees and Application Fees. The District budgeted to receive UGX. 23,749,241,508 (revised) as grants from the Treasury. I noted that, UGX. 1,894,332.444 was warranted/ received representing 8% performance. Revenue shortfalls affect the implementation of planned activities. The Entity budgeted to receive UGX.4,406,498,162 as transfers from other Government Units. However, only UGX.4,006,498,162 (90%) was received. Revenue shortfalls affected the implementation of planned activities. The District budgeted to receive UGX. 0.8Bn as external/donor financing out of which UGX. 0.4Bn (50%), was received. Revenue shortfalls affect the implementation of planned activities. The Accounting Officer explained that, for external financing the key donor projects funded by UNHCR and UNICEF use the calendar year for Budgeting and reporting as at the close + + + + +406 + + + + + + + + + + + + of the financial year 2020/2021 their Budget release was only for the six months thus explaining the poor performance. Out of the total receipts for the financial year of UGX. 6.5Bn, UGX. 5.9Bn (91%) was spent by the entity resulting in an unspent balance of UGX. 0.6 Bn (91%). The unspent balance at the end of the financial year was subsequently swept back to the consolidated fund account. The funds were meant for activities that were not fully implemented by the end of the financial year and these include Salaries worth UGX.475,796,820. During field Inspection carried out on service delivery areas at Yinga HC III, I observed the following;  Fridge for storage of blood donated by IRC and UNICEF was not installed consequently, cases of anaemia are referred to other facilities;  Motorised borehole that was installed by OXFAM had been disconnected for six months;  the piped water system installed at the facility had broken down for the period of six months;  As per interview of in-charge of the facility, the facility had not been supplied drugs for two quarters leading to drug stock-outs. This led to the referral of cases that would have been handled at the facility; The generator that was donated to the HC has never been installed during the two years it has been at the facility I reviewed of the governance structures of Terego DLG and noted that the district did not have a District Land Board in place. Consequently, the institutional land of the district was not titled. Further, there were reports of land disputes as seen in the Council Minutes dated 21st May 2021. I reviewed the execution of the annual procurement plan of Terego district for the year under review revealed that projects worth UGX.740,372,862 were not executed in the year, hence hindering service delivery to the intended beneficiaries. I reviewed the implementation of the DRDIP project in the district and observed that 16 beneficiary projects funded to the tune of UGX.1,620,066,939 had not yet been implemented. The Accounting Officer promised immediate action. I await the outcome of the Accounting Officers action. +05. NEBBI DLGOpinion Unqualified  I noted that the District did not submit wage estimates to MoPS, as required. I advised the Accounting Officer to always submit wage estimates to MoPs by 30th September of the preceding year. I reviewed funds absorption and noted that UGX.19,924,679,353 (92%) was spent out of the total receipts of UGX. 21,572,885,359, resulting in an unabsorbed balance of UGX. 1,648,206,006. The unabsorbed balance was subsequently swept + + + + +407 + + + + + + + + + + + +back to the consolidated fund account hence denying the use of funds for other deserving service delivery areas. + + + +- I noted that whereas UGX.4,339,048,878 was deducted from + +employees’ salaries to be remitted to different beneficiaries only, UGX.4,333,222,745 was remitted, leading to an over remittance + +of UGX.4,849,344 and under remittance of UGX.10,675,477. + + I noted that the District made unauthorized loan deductions + +totaling UGX.87,617,577. The deductions were from 78 employees that neither had letters of undertaking nor existed in + +the “active deduction” or the “my approval” reports on the + +PDMS-Payroll Deduction Management System, operated by PCA- Payroll Consults Africa. + + I compared the loan deductions in June 2021 on the IPPS payroll against the active deductions amounts on the Payroll Consults Africa (PCA) system and discovered that there were 160 instances where the amount on IPPS being deducted is either + +more or less than the amount on the active deductions implying that there is a weakness in the system of loan deductions where many employees are either over paying for loans they picked or are underpaying. + + In a sample of 14 teachers selected, I noted that the + +district/votes were not affecting annual salary increments on + +employee salaries. This may lead to demotivation of staff. + + I noted that the district had not yet prepared a strategic plan at + +the time of audit, I advised the Accounting Officer to ensure that the strategic plan is implemented upon approval. + + I advised the Accounting Officer to ensure that the strategic plan is implemented upon approval. I advised the Accounting Officer to always ensure that NTR is collected as budgeted. The district budgeted to receive UGX.6, 748,502,080 as transfers from other Government Units. However, only UGX.1,325,146,185 (20%) was + +received. Revenue shortfalls affected the implementation of planned activities. + + The district budgeted to receive UGX.2,213,127,500 as + +external/donor financing, out of which UGX.261,434,917 (12%), + +was received. Revenue shortfalls affect the implementation of + +planned activities. + + District failed spent fund balance of UGX.681, 679,315 meant for Start of construction of Ndhew Seed Secondary School, Drilling of + +boreholes, and Payment of gratuity. + + I noted that the district submitted performance reports for all the + +quarters after the deadlines given for submission of the reports, + +In addition, I did not obtain evidence to confirm that the Accounting Officer Prepared Monitoring Plans and reports which + +408 + + + + + + + + + + + + are essential in ensuring that the budget performs as expected. From my review of the annual performance report, I noted that some outputs were not captured in the performance report, these included Purchase and supply of ICT Equipment for Atego Seed Secondary, and Purchase and supply of laboratory equipment to Atego Seed Secondary School. I noted that the District received a total of UGX.48,565,353. I reviewed the bank statements sampled schools and noted that the funds were still on the school accounts by 30th September, 2021 and had hence not been utilized. +06. NEBBI MCOpinion Unqualified  I noted that the Municipal Council did not submit wage estimates to MoPs, as required. I advised the Accounting Officer to always submit wage estimates to MoPs by 30th September of the preceding year. A review of the pension payroll data and IFMS payments, revealed variances between amounts on the payroll and payments to individual pensioners, leading to over payments of UGX. 4,584,882 contrary to article 254 (1) & (3) of the 1995 constitution (as amended). I further noted that there was an under payment of UGX.32,297,600 as well. The Accounting Officer acknowledged the shortcoming and promised future action. A comparison of base pay in the Integrated Personnel and Payroll System (IPPS) payroll registers with the salary structure for 2020/21, revealed that 6 staff were paid using wrong salary scales, leading to over payments of UGX.3,190,260 contrary to Section B–a (6) & (7) of the Uganda Public Service Standing Orders, 2010. I noted that whereas UGX.722,140,725 was deducted from employees’ salaries to be remitted to different beneficiaries, UGX.703,333,159 was remitted, leading to an under remittance of UGX.18,807,566. I noted that the Municipal Council made unauthorized loan deductions totaling UGX.38,493,134. The deductions were from 24 employees that neither had letters of undertaking nor existed in the “active deduction” or the “my approval” reports on the PDMS-Payroll Deduction Management System, operated by Payroll Consults Africa (PCA). I noted that the Municipal Council did not subject political leaders’ gratuity totaling to UGX.10,962,600 to the computation of PAYE in IPPS, leading to an under deduction of UGX.3,288,780 contrary to section 19 (1) (a) of the Income Tax Act. I noted that, there was minimal movement in receivables as only + + + + +409 + + + + + + + + + + + + UGX.4,156,000 was recovered from the reported amount of UGX.528,709,420 previously, implying no significant effort was put into recovery. I noted that the Municipal Council had not prepared and approved a strategic plan that is aligned to the NDP-III. I noted budget underperformance of UGX.2,132,255,571 from government grants and local revenue which affected activity implementation The municipality failed to spent funds worth UGX.522,335,106 and the unspent balance at the end of the financial year was subsequently swept back to the consolidated fund account. I noted that UGX.20,661,647 was charged on items which did not reflect the nature of the expenditure. I advised the Accounting Officer to always ensure that the correct codes are charged and seek approvals for any virement or reallocations +07. MARACHA DLGOpinion Unqualified  I noted that the District did not submit wage estimates to MoPS, as required. I advised the Accounting Officer to always submit wage estimates to MoPs by 30th September of the preceding year. I reviewed funds absorption and noted unabsorbed balance of UGX. 1.2 billion meant for payment mostly pensioners due to slow processing of pension benefits by the beneficiaries A comparison of base pay in the IPPS payroll registers with the salary structure for 2020/21, revealed that 4 staff were paid using wrong salary scales, leading to over payments of UGX.25,197,900, and under payment of UGX.544,068 contrary to Section B–a (6) & (7) of the Uganda Public Service Standing Orders, 2010. The Accounting Officer acknowledged the audit observation and promised to follow the audit recommendation. I noted that UGX.11, 634,613 was paid to 32 staff who had either retired, transferred, absconded or died. I advised the Accounting Officer to ensure prompt removal of staff from the payroll and recover payments of salaries to staff who have left active employment. I noted that whereas UGX3,361,569,932 was deducted from employees’ salaries to be remitted to different beneficiaries, UGX3,358,721,257 was remitted, leading to an over remittance of UGX.6,609,552 and under remittance of UGX.9,458,227, I advised the Accounting Officer to reconcile IPPS deductions against IFMS remittances and recover the over remittances and pay the under remittances. I noted that the District made unauthorized loan deductions totaling UGX.100.4 million. The deductions were from 93 employees that neither had letters of undertaking nor existed in + + + + +410 + + + + + + + + + + + + the “active deduction” or the “my approval” reports on the PDMS-Payroll Deduction Management System, operated by PCA- Payroll Consults Africa. I noted that the District did not subject political leaders’ gratuity totaling to UGX.37,848,204 to the computation of PAYE in IPPS, leading to an under deduction of UGX.11,377,861, contrary to section 19(1) (a) of the Income Tax Act. I noted that the District did not prepare monthly wage, pension and gratuity performance analysis and thus did not submit quarterly returns on payroll to MoPS, contrary to Paragraph 2.1 of Establishment Notice No. 1 of 2020. I noted that 3 staff were paid a total of UGX.15 Million off the IPPS. I advised the Accounting Officer to ensure that salaries, pension and gratuity is processed and paid through the IPPS. I noted that the strategic plan of Maracha District was still not approved and therefore it was still in draft form. I reviewed the approved Local revenue estimates for the financial year 2020/2021 and noted that the District budgeted to collect UGX.215,093,000 during the year but collected UGX.143, 183,859 representing (66.6%) performance. The shortfalls in Local Revenue collections of UGX.71,909,141 (33.4%) were recorded in Land fees, business licenses, other tax revenues and Administrative fees and licenses. Revenue shortfalls affected the implementation of planned activities. The Entity budgeted to receive UGX. 8, 429,617,471 as transfers from other Government Units. However, only UGX. 139, 292,268 (1.7%) was received, Revenue shortfalls affected the implementation of planned activities. The Entity did not also submit quarterly monitoring reports to the Office of the Prime Minister and MoFPED as required. I advised the Accounting Officer to ensure that monitoring plans and reports are timely submitted accordingly. Contrary to Regulation 47 of the PPDA (Contract) Regulations, 2014, the entity on 29th June 2021 paid UGX.178, 391,142 to the contractor upgrading Odupiri HC II to HC III without an interim payment certificate. On inspection in September 2021, On physical inspection, I noted that the construction was still at ring beam stage hence severely delayed and the contractor was not on site and therefore there was no construction works. I noted that the District received a total of UGX.166,590,846 I reviewed the bank statements sampled schools and noted that the funds were still on the school accounts by 30 th September, 2021 and had hence not been utilised. +08. MADI-OKOLLO DLG  I noted that the District did not submit wage estimates to MoPs, + + + + +411 + + + + + + + + + + + +as required. The submission was made late. The Accounting Opinion Officer promised to handle this issue as per the requirement in Unqualified + +the subsequent years. + + I reviewed payroll funds absorption and noted that UGX.7.4 billion (73%) was spent out of the total receipts of UGX.10.18 billion, resulting in an unabsorbed balance of UGX.2.78 billion. I advised the Accounting Officer to consider the unimplemented + +activities in the next work plan. + + A comparison of base pay in the IPPS payroll registers with the + +salary structure for 2020/21, revealed that 17 staff were paid + +using wrong salary scales, leading to under payments of UGX. + +2.1 million, contrary to Section B–a (6) & (7) of the Uganda + +Public Service Standing Orders, 2010. + + + +- I noted that whereas UGX.1,901,582,442 was deducted from + +employees’ salaries to be remitted to different beneficiaries, UGX.1,868,292,549 was remitted, leading to an over and under + +remittance of UGX.28,854,515 and UGX.62,144,408 respectively + + I noted that the District made unauthorized loan deductions totaling UGX.108million from 55 employees that neither had + +letters of undertaking nor existed in the “active deduction” or the “my approval” reports on the PDMS-Payroll Deduction Management System, operated by PCA-Payroll Consults Africa + + I noted that the District did not subject political leaders’ gratuity + +totalling to UGX 40,202,400 to the computation of PAYE in IPPS, leading to an under deduction of UGX 12,439,426, contrary to section 19 (1) (a) of the Income Tax Act. The + + I noted that 32 newly recruited/ transferred employees and 5 + +pensioners delayed to access payroll, delayed access to payroll leads to demotivation of the affected staff and accumulation of salary arrears. + + From a comparison of the payroll register and IFMS payment file, I noted that 14 staff and were paid a total of UGX 19,228,208 off the IPPS. This control weakness creates an opportunity for + +payment of salaries and pension to non-eligible persons, hence loss of funds to Government. + + I noted that the entity had not prepared and approved a strategic plan that is aligned to the NDP-III. + + I reviewed the approved Local revenue estimates for the financial year 2020/2021 and noted that the District budgeted to collect + +UGX. 302,248,400 during the year but collected UGX.209,081,450 representing (69%) performance. The + +412 + + + + + + + + + + + + shortfalls in Local Revenue collections of UGX. UGX. 93,166,950 (31%) were recorded in Land fees, business licenses, other tax revenues and Administrative fees and licenses.  I noted that Management submitted performance reports for Q1, Q2, Q3 and Q4 after the deadline given for submission of the reports. In addition, I did not obtain evidence to confirm that the Accounting Officer Prepared Monitoring Plans and reports which are important in ensuring that the budget performs as expected. The Accounting Officer admitted the shortcoming and promised to address the matter. I noted that there was a general delay in the implementation of NUSAF 3 sub- projects without any justification. Madi-Okollo District contracted M/s TIC Lokere Enterprises Ltd for the rehabilitation of Inde mile 10 Yoro base camp feeder road under DRDIP programme at a cost of UGX.1, 238,943,750. However, I noted that there was delayed Completion of the contract, Failure to install culverts at critical points of the road and Poorly installed culverts. I noted that advances of UGX. 52,332,500 remained not accounted for, at year end. The funds were advanced to staff to carry out various activities. In the absence of the relevant accountability documents, it was not possible to confirm that the funds were used for the intended purposes. I noted that there were un-utilized Market at Rhino Camp. The Market was constructed at an estimated cost of UGX.700,000,000. The market lock ups had been turned into residential apartments instead and the market stalls have been abandoned and now only used for drying cassava.4 +09. KOBOKO MCOpinion Unqualified  I noted that the Municipal Council did not submit wage estimates to MoPs by 30th September of the preceding year as required. The Municipal did not absorb wage funds worth UGX.0.33 billion. The Council had outstanding domestic arrears worth UGX 113,354,578 that accrued within the year I noted that the Municipal Council made unauthorized loan deductions totaling UGX. 18,148,668. from 16 employees that neither had letters of undertaking nor existed in the “active deduction” or the “my approval” reports on the PDMS-Payroll Deduction Management System, operated by PCA-Payroll Consults Africa. I noted that 6 pensioners delayed to access the pension payroll I noted that 5 staff was paid a total of UGX. 6,488,549 off the IPPS. I noted that the Municipal Council did not have an approved plan + + + + +413 + + + + + + + + + + + + neither did it have certification of the plan by NPA. I noted underperformance in all revenue sources totaling UGX. 4,384,175,589 that affected implementation of planned activities at the council I further noted delayed submission of quarterly performance reports to OPM and MoFPED +10. ARUA REGIONAL REFERRAL HOSPITALOpinion Unqualified  Through re-computation of gratuity benefits, I noted that there were variances of over payments of UGX.21,706,000 and under payment of UGX.19,700,433. I also re-computed pension benefits, and I further noted that there were variances of over payment of UGX.5, 798,629 and under payments of UGX.10, 401,528. The Accounting Officer explained that gratuity payments are automatically computed through the IPPS system. Consultations with system officers in MOPS were underway to have the error rectified. I noted that UGX.6,659,448 was paid to 03 staff who had been transferred to other entities. These were payment for services not rendered to the Hospital, resulting in loss of funds to Government. I noted that deductions to UCLA/UBA were concurrently remitted as salary was paid except for the month of April, 2021 where there was no remittance at all yet UGX.16,434,444 was deducted I noted that the Hospital did not include Hospital Management Board Member’s retainer fees of UGX.33,600,000 in the computation of PAYE leading to under deduction of PAYE of UGX.10,080,000 contrary to section 19(1) (a) of the Income Tax Act. I noted that the Hospital did not prepare monthly wage, pension and gratuity performance analysis and thus did not submit quarterly returns on payroll to MoPS, contrary to Paragraph 2.1 of Establishment Notice No. 1 of 2020. The Hospital had outstanding (unsettled) domestic arrears worth UGX. 1,255,228,566 by close of financial year I noted that the Hospital had not prepared and approved a strategic plan that is aligned to the NDP-III. I noted the Hospital received off-budget financing from Ministry of Health and development partners for undertaking various activities not budgeted to a tune of UGX.1,925,620,637 which was not transferred to the consolidated fund as required by the law. The Hospital Ambulance number UG6812M had been stolen from the hospital yard. By close of the audit, the ambulance had not been recovered by management. Also the value of the ambulance had not been updated in the assets register as + + + + +414 + + + + + + + + + + + + required. I noted that the Hospital did not have a land title for Hospital land plot 43 – Hospital cell with an estimated size of 13.478 acres which it currently occupied. There was no evidence of ownership of property and there was no guarantee that the land was free from encroachment. +11. MOYO DLGOpinion Unqualified  I noted that UGX.12,035,376 was paid to 8 staff who had either retired, transferred, absconded or died. I advised the Accounting Officer to ensure prompt removal of staff from the payroll. I noted that whereas UGX.2,467,253,134 was deducted from employees’ salaries to be remitted to different beneficiaries, UGX.2,499,884,543 was remitted, leading to an under remittance amounting to UGX.519,984 and over remittance of UGX.33,151,393. I advised the Accounting Officer to ensure prompt removal of staff from the payroll. I noted that whereas UGX.2,467,253,134 was deducted from employees’ salaries to be remitted to different beneficiaries, UGX.2,499,884,543 was remitted, leading to an under remittance amounting to UGX.519,984 and over remittance of UGX.33,151,393. I noted that the District did not subject political leaders’ gratuity totalling to UGX.28,087,200 to the computation of PAYE in IPPS, leading to an under deduction of UGX.8,520,960 contrary to section 19(1) (a) of the Income Tax Act. I noted that 6 pensioners delayed to access the pension payroll, with delays ranging between 1-2 months. Delayed access to the pension payroll leads to poor wellbeing of the affected retirees as well as accumulation of pension arrears. I noted that the District/Municipal Council did not prepare monthly wage, pension and gratuity performance analysis and thus did not submit quarterly returns on payroll to MoPS, contrary to Paragraph 2.1 of Establishment Notice No. 1 of 2020. Revenue underperformance of UGX.9,484,876,432 due to shortfall in NTR, government transfers and donor funding The district did not absorb funds worth of UGX.940, 729,263 and these funds were subsequently swept back to the consolidated fund account. I further noted that funds received under USMID totaling to UGX.1,342,227,081 were not absorbed and as such swept back to the consolidated fund +12. KOBOKO DLG  I noted that there was an under payment of UGX 83,675,196 of pension and gratuity + + + + +415 + + + + + + + + + + + +Opinion Unqualified  I noted that UGX 5,703,084 was paid to 2 staff who had either + +retired or died + + I noted that whereas UGX. 2,007,415,658 was deducted from + +employees’ salaries to be remitted to different beneficiaries, UGX. + +1,866,468,850 was remitted, leading to an under remittance of + +UGX.140,946,808 + + I noted that the District made unauthorized loan deductions + +totaling UGX. 111,107,631 + + I noted that 14 newly recruited/ transferred employees and 6 + +pensioners + + From a comparison of the payroll register and IFMS payment file, I noted that 25 staff were paid a total of UGX. 27,346,176 off the IPPS + +- The district has outstanding payables worth UGX.736,710,419 in the current financial year + + + + I noted that the entity had not prepared and approved its + +strategic plan at the time of audit + + I noted a number of issues in the implementation of approved + +budget such as partial or non-implementation of planned + +activities and budget shortfall of UGX.8,706,420,377 that affected + +implementation of planned activities; late submission of quarterly + +reports to Office of the Prime Minister and MoFPED + + Construction of Multipurpose Hall, ICT, Library Block , teachers houses, pay ground and water installation at Padrombu + +SeedSchool UGX.1,234,362,772 has delayed and is incomplete + +and the Contractor was not on site + +- Nyangilia Ps briquette making sub project was advanced + + + +UGX.51,257,476 on Voucher No/EFT number 36222842 for the purpose of making fuel energy through briquettes. During field inspections undertaken on 24/11/2021, I noted that sub project + +had not yet taken off and the group members could not be traced + + I noted that Koboko District received a total of UGX. 113,097,405 for supply of additional learning materials. I reviewed the bank + +statements for sampled schools and noted that the funds were + +still on the schools’ accounts by 30 th September, 2021 and had + +hence not been utilised + + I noted that management ignored the element of competition in + +the procurement of some items worth UGX.1,236,462,077 + + I noted that although the Bamure HC III General ward facility + +416 + + + + + + + + + + + + was completed and ready for use, the building was redundant and had not yet been put to use five months after completion +13. ARUA DLGOpinions Unqualified  I was not availed with evidence that the district submitted wage estimates to MoPs as required. The district failed to absorb wage funds worth UGX.2.14 billion and the funds were swept back into the consolidated fund account at year end. The district made over payments of UGX.17, 088,304 various pensioners. I noted that UGX.10, 115,392 was paid to 15 staffs that neither appeared on the IPPS payroll register nor had the necessary documentation in their personal files to support their existence. I noted that 58 employees were paid salaries above their applicable salary band resulting in overpayments totalling UGX.37,427,696 while 6 employees were paid salaries below their applicable salary band resulting in underpayments totalling UGX.2,441,988. The District wrongly computed gratuity benefits for 01 pensioner that resulted in an overpayment of UGX.17,088,304. I noted that UGX.66,918,755 was paid to 49 staff who had either retired, transferred, absconded or died. The district over and under remitted payroll deductions worth UGX.246,912,350 and UGX.201,704,458 due to wrong coding in the system I noted that the District made unauthorized loan deductions totaling UGX.386, 522,646. The deductions were from 419 employees that neither had letters of undertaking nor existed in the “active deduction” or the “my approval” reports I further noted that loan deductions relating to 16 (sixteen) employees did not have evidence of consent by the employees. The District made PAYE deductions of UGX UGX.314, 021,935 for the month of February 2021, but did not remit to URA as required I noted that the District did not subject political leaders’ gratuity totalling to UGX.105,792,166 to the computation of PAYE in IPPS, leading to an under deduction of UGX.33,858,520, contrary to section 19(1) (a) of the Income Tax Act and also noted tha t 58 pensioners delayed to access the pension payroll during the year. I noted that unqualifying funds amounting to UGX.52, 328,174 were charged on account codes prescribed for salary, pension and gratuity. + + + + +417 + + + + + + + + + + + +  I noted that 29 employees were paid a total of UGX.51,348,377 without signed pay change reports. I noted that 1,302 staff was paid a total of UGX. 3,048,993,948 off the IPPS that arose from wrong coding of Arua DLG staff under Madi-Okollo DLG payroll arising from the separation of the payroll following the creation of Madi-Okollo district. The budget of Arua DLG was not adjusted/collapsed following the issuance of the supplementary budgets to the new local governments. Consequently, the budget of Arua DLG for the year under review is unrealistic. Further, activities meant to be undertaken by the new local governments were undertaken by Arua DLG for example the payment of general staff salaries totaling UGX.6,397,754,797 for Terego DLG staff and UGX.8,348,159,119 for Arua city staff. This distorts the budget performance measurement for the local governments involved. I noted underperformance of revenues from NTR, transfer from government units and donor funding worth UGX.30.7Bn that affected budget implementation The district failed to absorb funds worth UGX.9.3Bn and these funds were subsequently swept back to the consolidated fund account. The district mischarged funds worth UGX.373, 406,160 on various codes other those budgeted for. Further, I noted that funds to the tune of UGX.93, 269,685 were spent on other activities without seeking and obtaining the necessary approvals. I noted outstanding recoveries of funds from YLP and UWEP groups worth UGX.1, 793,009,954 by the year end. I noted that Arua District received a total of UGX.490,472,016. I reviewed the bank statements sampled schools and noted that the funds were still on the school accounts by 30th September, 2021 and had hence not been utilized. +14. ADJUMANI DLGOpinion Unqualified  I reviewed funds absorption for salary and pension payments and noted under absorption of UGX.1.2 billion which may have led to non payment of eligible employees and pensioners I noted that UGX.3,339,798 was paid to 4 staff who had retired. These were payments for services not rendered to the District, resulting in loss of funds to Government. I noted that the District made unauthorized loan deductions amounting to UGX.39,469,082 relating to 40 employees that neither existed in the “active deduction” nor the “my approval” reports on the PDMS as evidence of approval. I noted that 3 pensioners delayed to access the pension payroll + + + + +418 + + + + + + + + + + + + during the year with average delay period of 39 days to access the pension payroll. I noted that the District did not submit quarterly returns on payroll to MoPS. This led to accumulations of arrears, under absorption of wage, pension and gratuity budget and delays in granting clearance to recruit. From a comparison of the payroll register and IFMS payment file, I noted that 5 staff was paid a total of UGX.7, 145,972 off the IPPS. This control weakness created an opportunity for payment of salaries to non-eligible persons. I noted that the verification form and copies of the verification card for 6 pensioners/beneficiaries were not on their files. I was therefore unable to validate, authenticate the accuracy of the payroll records (salary and pension) on the IPPS. I noted that the District Development Plan III was still in a draft form and had not yet been approved. The district did not receive funds worth UGX.14,639,062,373 The district failed to absorb funds worth UGX. 1,621,646,255 by the end of the financial year and the funds were subsequently swept back to the consolidated fund account that affected construction of roads and bridges, Installation of streetlights; and Construction of Leisure Park among others The funds were meant for activities that were not fully implemented by the end of the financial year and these include; A review of the revenue management process revealed that there was no invoice register for the amount billed during the year in place and schedule of debtors detailing debtor’s records. I also noted that the district does not have a streamlined policy to be followed to recover the outstanding revenues/amounts. I noted outstanding YLP balance of UGX.707, 536,351 that has not been recovered by the district which is affecting the revolution of the funds to other groups in the queue The district had outstanding unrecovered the UWEP funds worth UGX.406,275,629 by close of the year I noted that the District received a total of UGX. 129,300,127. I reviewed the bank statements sampled schools and noted that the funds were still on the school accounts by 30th September, 2021 and had hence not been utilized. +15. Pakwach DLGOpinion Unqualified  I noted that the District did not submit wage estimates to MoPs by 30th September of the preceding year a required I reviewed funds absorption and noted that UGX. 10.209 Bn + + + + +419 + + + + + + + + + + + + (94%) was spent out of the total receipts of UGX.10.885 Bn, resulting in an unabsorbed balance of UGX. 0.676 Million. The unabsorbed balance was subsequently swept back to the consolidated fund account I reviewed funds absorption and noted that UGX.19.4 billion (94%) was spent out of the total receipts of UGX.20.6 billion, resulting in an under absorption of UGX.1.2 billion. I further noted an unexplained under absorption of salaries funds totaling UGX. 235,934,838 and under absorption of pension and gratuity totaling UGX.930, 294,356. I noted that UGX.3, 339,798 was paid to 4 staff who had retired. These were payments for services not rendered to the District, resulting in loss of funds to Government. I further noted that loan deductions for a sample of 10 employees lacked letters of undertaking and did not have evidence of consent. I also noted loan deductions for twenty-eight (28) staff, totaling UGX.33,119,091, were above the approved deduction amount and Loans for fifteen (15) staff totaling UGX.132,794,500 had unreasonable loan end-dates. I noted that the District did not submit quarterly returns on payroll to MoPS. This led to accumulations of arrears, under absorption of wage, pension and gratuity budget and delays in granting clearance to recruit. From a comparison of the payroll register and IFMS payment file, I noted that 5 staff were paid a total of UGX.7, 145,972 off the IPPS. This control weakness created an opportunity for payment of salaries to non-eligible persons +16. ARUA MC Opinion Unqualified  I noted that the wage and Pension Pay roll of UGX. 7,083,040,397 constituted 25% of the Municipal Council’s budget for 2020/2021 of 28.3Bn. I noted that the Municipal Council delayed to submit wage estimates to MoPs, as required. I reviewed funds absorption and noted that UGX.6.7 billion (98%) was spent out of the total receipts of UGX.6.9 billion for salaries, pension and gratuity I noted that whereas UGX.1,510,024,063 was deducted from employees’ salaries to be remitted to different beneficiaries, UGX.1,502,519,098 was remitted leading to an under remittance amounting to UGX.7,504,965 I noted that the entity did not include political leaders’ gratuity of UGX.8,939,400 in the computation of PAYE leading to under deduction of PAYE of UGX.2,681,820 + + + + +420 + + + + + + + + + + + +  I noted that the verification form and copies of the verification card for 09 pensioners/beneficiaries were not on their files I further noted that the Municipal Council Development Plan III was still in a draft form and had not yet been approved I noted that the Municipal Council had off-budget receipts totaling UGX.1, 069,848,174 during the year. I noted a number of issues in the implementation of approved budget suchas as failure to fully quantify outputs, partial and non-implementation of planned activities; over absorption of UGX.761,755,708; revenue underperformance of UGX.2,530,484,439 I noted that UGX.210,033,250 meant for surfacing of Staff Lane and Construction of Municipal Bypass was utilised for supply and installation of solar street lights on Oluko Road   I noted that the entity submitted performance report for Q4 after the deadline given for submission of the reports I noted that there were unapproved overpayments of UGX.1,427,380,000 relating to USMID works on School road and Adroa road I noted that the Municipal Council made advance payment of UGX.333,383,989 to contractors without bank guarantees I noted low bidder participation in 3 of the 11 sampled procurements I noted that the Municipal Council did not receive its approved supplementary development budget totaling UGX.14,340,000,000 under Supplementary Expenditure Estimates Supplied Addendum No.1 to Schedule No.2 for F/Y 2020/2021 I noted that the Municipal Council did not have an approved staff structure/establishment. + MBARARA BRANCH Summary of Key Findings +01. MBARARA DLG Opinion Unqualified  I analyzed the approved budget and releases to Mbarara District for salary, pension and gratuity in the period under review and noted that the wage and Pension Pay roll of UGX.20,650,503,996 constituted 68% of the District’s budget for 2020/2021 of UGX.30.38 Bn  I noted that the District delayed to submit wage estimates to MoPS, contrary to the Establishment Notice. The submission was made on 18th February 2020, which is 140 days after the required date  I reviewed funds absorption and noted that UGX.19.6 billion (95%) was spent out of the total receipts of UGX.20.7 billion, resulting in an unabsorbed balance of UGX.1.1 billion. + + + + +421 + + + + + + + + + + + +  I noted that the District made unauthorised loan deductions totalling UGX.11.8 million. The deductions were from 40 employees that neither existed in the “active deduction” nor the “my approval” reports on the Payroll Deduction Management System (PDMS), operated by Payroll Consults Africa (PCA)  I noted that the District made payroll deductions of UGX. 813,620,096, but did not remit concurrently with the salary payments in 11 out of 12 months. The delay ranged from 5 to 84 days  I noted delays in the remittance of PAYE deductions to URA for 2 months of November 2020 and January 2021 of six (06) and eighty (08) days respectively  I noted that the District did not subject political leaders’ gratuity totalling to UGX. 16,304,260 to the computation of PAYE in IPPS, leading to an under deduction of UGX.4,891,278  I noted that of the 29 newly recruited/transferred, 13 employees delayed to access payroll, with delays ranging between 6 to 12 weeks  pensioners delayed to access the pension payroll, with delays ranging between 7-10 months  Gratuity and pensions of UGX. 601,669,910 was charged on Salary account which did not reflect the nature of the expenditure  I noted that the District prepared monthly wage, pension and gratuity performance analysis but did not submit quarterly returns on payroll to MoPS  I reviewed the approved Local revenue estimates for the financial year 2020/2021 and noted that the District budgeted to collect UGX.1,293,851,871 during the year but collected UGX.974,341,070 representing (75%) performance.  The Entity budgeted to receive UGX.2,077,267,871 as transfers from other Government Units. However, only UGX.583,148,567 (28%) was received. Revenue shortfalls affected the implementation of planned activities  The District budgeted to receive UGX.693,590,000 as external/donor financing out of which UGX.53,180,000 (7.7%), was received  I noted that management did not submit quarterly monitoring reports to the Office of the Prime Minister and Mofped as required +02. RUBANDA DLG Opinion Unqualified  I analysed the approved budget and releases to Rubanda District for salary, pension and gratuity in the period under review and noted that the wage and Pension Pay roll of UGX.17,152,929,012 constituted 49% of the District’s budget for 2020/2021 of UGX.34.85 Bn I reviewed the wage funds absorption and noted that UGX.17.29 billion(96) was spent out of the total receipts of UGX18.02 billion, resulting in an unabsorbed balance of UGX.0.73 billion A review of the payroll data (IPPS) and IFMS payments revealed variances between amounts on the approved payroll and payments to individual employees, leading to over payment of + + + + +422 + + + + + + + + + + + + UGX. 12,101,332 I noted that 15 employees on the IPPS payroll did not receive salary of UGX. 37,502,687 A comparison of base pay in the IPPS payroll registers with the salary structure for 2020/21, revealed that June payments were made using wrong salary scales, leading to over payments of UGX. 3,197,252, and under payments of UGX. 978,860 I noted that whereas UGX. 4,119,399,533 was deducted from employees’ salaries to be remitted to different beneficiaries, UGX. 4,110,103,755 was remitted, leading to an over and under remittance amounting to UGX.(234,929,994) and UGX.244,225,772 respectively I noted that the District made unauthorised loan deductions totalling UGX. 41,736,635 from 22 employees that neither had letters of undertaking nor existed in the “active deduction” or the “my approval” reports on the Payroll Deduction Management System (PDMS) I noted that the District did not subject political leaders’ gratuity totalling to UGX. 30,155,400 to the computation of PAYE in IPPS, leading to an under deduction of UGX. 9,113,820 I noted that 9 pensioners delayed to access the pension payroll, with delays ranging between 6-15 months I noted that the District did not prepare monthly wage, pension and gratuity performance analysis and thus did not submit quarterly returns on payroll to MoPS I observed that there were variances of UGX. 5,667,077 and UGX.7.076,946 between the MoPS IPPS and entity payroll registers availed by the core FTP system I noted that at the time of audit October 2021 the district strategic plan was not approved by NPA. I noted that the district had planned to collect local revenue of UGX0.587Million but was only able to collect 0.351 million representing 60% performance. Of the UGX.10.13Bn budgeted as transfers from other Government Units, only UGX.0.8 Bn was received representing 8% performance The district did not receive any external/donor financing despite having a budget of UGX0.89Bn +03. KAZO DLG Opinion Unqualified  I analysed the approved budget and releases to Kazo district for salary, pension and gratuity in the period under review and noted that the wage and Pension Pay roll of UGX.10,993,531,909 constituted 64.1% of the District’s budget for 2020/2021 of UGX.17,131,504,889 A comparison of base pay in the IPPS payroll registers with the salary structure for 2020/21, revealed that 20 staff were paid using wrong salary scales, leading to over payments of + + + + +423 + + + + + + + + + + + +UGX269,392 + + I noted that UGX.1,605,867 was paid to 3 staff who had either + +absconded or died + + I noted that the District made unauthorised loan deductions + +totalling UGX.43,661,032. The deductions were from 12 employees that neither had letters of undertaking nor existed in + +the “active deduction” or the “my approval” reports on the + +PDMS-Payroll Deduction Management System, operated by PCA- Payroll Consults Africa. + + I further noted that loan deductions relating to 12 employees did + +not have evidence of consent + + I noted that the District made payroll deductions but did not + +remit concurrently with the salary payments in 7 out of 8 + +months. On average, it delayed by 7 days + + I noted that the District did not subject political leaders’ gratuity + +totalling to UGX.29,166,600 to the computation of PAYE in IPPS, + +leading to an under deduction of UGX.8,652,480 + + I noted that the District did not prepare monthly wage, pension + +and gratuity performance analysis and thus did not submit quarterly returns on payroll to MoPS + + I noted that the district was implementing a strategic plan (2020/21- 2024/25) that had not been approved by National + +Planning Authority + + I noted that the district only managed to collect local revenue of + +UGX327,102,266 of the budgeted UGX 824,355,800 representing 40% performance + + I noted that Transfers received from the consolidated fund + +performed at 90% + + I noted the district did not receive any external financing despite + +having a budget of UGX 33,504,000 + + I noted that the District received off-budget financing of UGX.552,762,500 which was never paid into the consolidated + +fund as required by the law + + Out of the total receipts for the financial year of UGX.15.12bn + +(including opening balance of UGX.367,655,139) UGX.14.46bn was spent by the entity resulting in an unspent balance of UGX.0.65 Bn representing absorption level of 96% + + I assessed the implementation of twenty two (22) outputs that + +were fully quantified with a total of twenty-one (22) activities + +worth UGX 1.83Bn and noted that Eighteen (18) outputs with total expenditure amounting to UGX 1.16 Bn were fully implemented representing 70.6% of the outputs, Four (4) outputs with total expenditure amounting to UGX.0.67 Bn were + +partially implemented representing 29.4% of the outputs. + + I noted that the entity submitted performance reports for Q1, + +Q2, Q3, Q4 after the deadline given for submission of the reports + +424 + + + + + + + + + + + +4. INSINGIRO DLG + + + +Opinion Unqualified + + I analysed the approved budget and releases to the District for + +salary, pension and gratuity in the period under review and noted that the wage and Pension Pay roll of UGX.25,700,415,566 + +constituted 29.4% of the District’s budget for 2020/2021 of + +UGX.87.35 Bn + + I noted that the District delayed to submit wage estimates to MoPs, as required. The submission was made after 30th September 2020. This may lead to wage shortfalls/over provision + +due to lack of clarity and analysis of wage estimates by MoPS + + The District paid out a total of UGX.14,568,696 to 12 non- existent staff. These were not on the IPPS payroll register and + +also lacked the necessary documentation to support their existence + + A comparison of base pay in the IPPS payroll registers with the + +salary structure for 2020/21 revealed that seventeen (17) staff were paid using wrong salary scales, leading to under payment of UGX.189,881 + + I noted that UGX.9,922,552 was paid to five (5) staff who had + +either retired, transferred, absconded or died + +- I noted that whereas UGX.5,426,888,768 was deducted from + + + +employees’ salaries to be remitted to different beneficiaries, + +UGX.4,951,234,873 was remitted, leading to an under remittance of UGX.475,653,895 + + I noted that the District did not subject political leaders’ gratuity + +totalling to UGX.42,781,000 to the computation of PAYE in IPPS, + +leading to an under deduction of UGX.12,900,150 + + I noted that one retiree who was last paid in October, 2020 had + +not yet accessed the pension payroll by the time of audit + + I noted that UGX.12,152,847 was diverted to Bangirana Josaphat M employee no 524376) as residual pension arrears from April 2015 to October 2019. However, these had not been verified and therefore not part of schedule provided by MoFPED + + I noted that 05 employees were paid a total of UGX.9,087,270 + +without signed pay change reports + + I noted that the District did not prepare monthly wage, pension + +and gratuity performance analysis and thus did not submit quarterly returns on payroll to MoPS + + I noted that twelve (12) staff and 02 pensioners were paid a + +total of UGX.32,785,938 off the IPPS + + + +- I observed that there were variances of UGX.12,355,491 + +between the figures in the MoPS IPPS and entity payroll registers + + I reviewed the approved Local revenue estimates for the financial year 2020/2021 and noted that the District budgeted to collect + +UGX.1,029,300,000 during the year but collected UGX. 778,835,482 representing (83%) performance + + + +- The entity budgeted to receive UGX.39,034,900,000 as transfers + +425 + + + + + + + + + + + +from other Government Units. However, only UGX.16,417,071,378 (42%) was received + + The District budgeted to receive UGX.3,112,206,100 as + +external/donor financing out of which UGX.1,226,592,425 + +(39.4%) + + Out of the total receipts for the financial year of + +(UGX.61,860,404,265 – 1,313,798,884), UGX.61,310,829,945 (89%) was spent by the entity resulting in an unspent balance of UGX.764,224,564 (08%). + + I assessed the implementation of thirty two (32) outputs that + +were fully quantified with a total of thirty two (32) activities worth UGX.3.505 Bn and noted the following + + Thirty (30) outputs with a total of thirty (30) activities worth + +UGX.2.771 Bn were fully implemented. + + Two (02) outputs with a total of two (02) activities worth UGX.0.734 Bn were partially implemented by the time of audit + + I noted that the entity did not prepare and submit the annual monitoring plans to MoFPED, MoLG and NPA as required. + + The entity had not also submitted quarterly monitoring reports to + +the Office of the Prime Minister and Moped as required by the + +time of audit 10th of September 2021 I noted that Management submitted performance reports for Q1, Q2, Q3 and 4 after the + +deadline given for submission of the reports + + I audited the Construction of Ruborogota seed school under UgIFT and I observed that no liquidated damages were charged + +to the contractor by management as stipulated in terms and + +conditions of the agreement. I further noted that overall physical + +progress was at 75.2% and the financial progress was at 68% as + +per monthly progress report of July 2021 implying + +UGX.667,629,755 were lying idle on the account + + I noted that taxes amounting to UGX.3,344,640 were never paid + +to URA as summarised in the table I inspected various prices of + +land owned by the District and noted that most of it lacked land + +titles and three pieces of land (6.6 acres) had been encroached on by private developers + + I noted that most of the District land did not have certificates of + +title + + I noted that as per quarter 2nd 2020/2021 Youth Livelihood Programme Performance Report by the focal person to the + +Accounting Officer, dated 30st December 2020, that + +UGX.1,599,889,519 had been disbursed to various youth groups in the district but UGX.331,883,100 had been recovered leaving + +UGX.1,367,353,783 unrecovered + +426 + + + + + + + + + + + +5. BUHWEJU DLG + + + +Opinion Unqualified + + I noted that the wage and pension pay roll of UGX.9,342,366,801 + +constituted 54% of the District’s budget for 2020/2021 of + +UGX.17,438,067,437. + + I noted that the District did not to submit wage estimates to + +MoPs, as required + + I reviewed payroll funds absorption and noted that UGX.9.34 billion (107%) was spent out of the total receipts of UGX.8.57 billion, resulting in an excess expenditure of UGX.0.64 billion + +- I noted a salary over payment of UGX.278,550,496 +- I noted a salary under payment of UGX.36,127,180 + + + + I was not availed with the pension payroll data and I was unable to compare pension and gratuity payroll amount with IFMS + +payments of UGX.608,581,426 and UGX.302,628,319 for gratuity and pension respectively + + I noted that 116 staff were paid salary using wrong salary scales, + +leading to over payments of UGX.72,081,318 + + I was not availed with information on staff departures and I + +could not ascertain the duration of the delayed deletions + +- I noted that UGX.756,742,653 was deducted from employees’ + + + +salaries to be remitted to Uganda Consumer Lenders' + +Association/Uganda Bankers' Association, and UGX.756,916,127 was remitted, leading to an over remittance of UGX.173,474 + + I noted that the District made payroll deductions of UGX.756,742,653, but did not remit concurrently with the salary payments in all the 6 months. On average, it delayed by 41 days + + I noted delays in the remittance of PAYE deductions to URA + +ranging from 2 – 46 days + + I was not availed with lists of new staff and leavers, I could + +therefore not establish the timing of accessibility to the payroll by the new staff. + + I noted that salary entries amounting to UGX.184,483,367 to + +several employees were not supported by signed pay change reports + + I noted that the District did not prepare monthly wage, pension + +and gratuity performance analysis and did not submit quarterly returns on payroll to MoPS + + I noted that 102 staff were paid a total of UGX.499,116,733 off + +the IPPS + + I noted that the verification form and copies of the verification + +card for employees and pensioners/beneficiaries on their files were not availed for audit review + + I reviewed the effectiveness and reliability of the IPPS/NID + +staff/pensioner/beneficiaries’ verification interface and noted the + +following; + +427 + + + + + + + + + + + +  In-adequate sensitization and training in the use and navigation of the system System was not reliable and effective  Operational challenges were encountered; E.g. Un-reliable network in Buhweju where HR staff had to physically travel to the neighbouring Districts to be able to download documents such as pension payroll registers. Inadequate staffing of the HR department I noted that the district budgeted to collect UGX.155,201,000 during the year but collected UGX.136,282,651 representing (88%) performance. The shortfalls in Local Revenue collections of UGX. 18,918,349 (12%) were recorded in Local Service Tax, Land Fees and Application Fees I noted that entity budgeted to receive UGX.758,657,000 as transfers from other Government Units. However, only UGX.537,760,298 (70.9%) was received I assessed the implementation of seven (7) outputs that were fully quantified with a total of seven (7) activities worth UGX 1.6 Bn and noted the following. Five (05) outputs with a total of five (05) activities worth UGX.1.03Bn were fully implemented. The entity implemented all the five (05) activities (100%) within these outputs. Two (02) outputs with a total of two (02) activities worth UGX.0.5 Bn were partially implemented. I noted that the district had commenced implementation of two (2) UgIFT projects namely; Upgrading of Engaju HC II to HC III and Upgrade of Rushambya HC II to HC III and noted the following; Upgrading of Rushambya Health Centre II to Health Centre III; The medical facility had been completed but lacked medical equipment to enable functionality and service delivery Upgrade of Engaju HC II to HC III; The project stalled but medical equipment had been procured and an advance payment of UGX. 211,119,458 was made during the year +06. BUSHENYI DLG Opinion Unqualified  I noted that the wage and Pension Pay roll of UGX.21,998,865,997 constituted 54% of the District’s budget for 2020/2021 of UGX.40,645,826,438. I reviewed payroll funds absorption and noted that UGX.20.697 billion (94%) was spent out of the total receipts of UGX.21.999 billion, resulting in an unabsorbed balance of UGX.1.302billion I noted a salary over payment of Ms Twehandikise Miria of UGX.508,439 instead of paying UGX.5,974,218, UGX.6,482,657 was paid I noted pension and gratuity underpayment of UGX.984,681,443 + + + + +428 + + + + + + + + + + + +- I noted that whereas UGX.1,504,757,075 was deducted from + + + +employees’ salaries to be remitted to different beneficiaries, UGX.1,517,190,079 was remitted, leading to an over/ under + +remittance of UGX.12,433,004 and UGX.6,100,834 + + I noted that the District made payroll deductions but did not + +remit concurrently with the salary payments in 5 out of 7 + +months. On average, it delayed by 7 days + + I noted that the district had outstanding salary arrears from + +previous years’ worth UGX.34,719,743 that remained unpaid at + +the end of the financial year + + I carried out a survey to establish the effectiveness and reliability + +of the IPPS/NID staff/pensioner/beneficiaries’ verification + +interface and noted the following; + + + +- Operational challenges were encountered; + + Mismatches of names that take long to be corrected by NIRA and + +affects ability to timely access people on payroll. + +- In some cases, the status under IPPS remain “NOT VERIFIED” + + + +even when the record is verified and approved. This again + +requires one to contact Ministry of Public service for an + +intervention. + + I noted at the time of audit (June 2020/2021) the strategic plan had not been approved by NPA for implementation + +- I noted that Bushenyi District budgeted to collect + + + +UGX.630,746,210 in the year under review however the entity + +only collected UGX.393,072,939 representing 62% performance. + +- The entity budgeted to receive UGX.29,905,844,709 from the consolidated fund out of which UGX.28,011,829,956 was received representing causing a shortfall of UGX.1,894,014,753 representing 94% performance + + + + + +- The entity budgeted to receive UGX.9,669,035,803 as transfers + +from other Government Units out of which UGX.1,522,149,995 + +were received representing 16% performance leading to a shortfall of UGX. 8,146,885,809 (84%) + + The entity budgeted to receive UGX.440,199,716 as + +external/donor financing out of which UGX.86,160,000 was received representing 6% performance + + I assessed the implementation of Twenty two (22) outputs that were fully quantified with a total of Twenty two (22) activities worth UGX 3.13 Bn and noted the following; + + Fifteen (15) outputs with a total of fifteen (15) activities worth + +UGX.2.38 Bn were fully implemented. + + Five(05) outputs with a total of Five(05) activities worth UGX 0.70 Bn were partially implemented by the time of audit. + + Two (02) outputs with a total of two(02) activities worth UGX 0.05 Bn were not implemented by the time of audit. + +429 + + + + + + + + + + + +  I noted that the entity submitted performance reports for Q1, Q2, Q3, Q4 after the deadline given for submission A total of 261.4km at an estimated cost of UGX.94,152,000 was planned to be undertaken, I noted that UGX.75,588,000 was received and all used for maintaining 209.9 Km implying a shortfall of UGX.18,564,000 which affected implementation of 51.5Km of roads +07. IBANDA DLG Opinion Unqualified  I noted the wage and Pension Pay roll of UGX.13,873,913,709 constituted 56% of the District’s budget for 2020/2021 of UGX.24,675,034,751 I reviewed payroll funds absorption and noted that UGX.11.6 billion (90.6%) was spent out of the total receipts of UGX.12.8 billion, resulting in an unabsorbed balance of UGX.1.1 billion. I noted that the District made payroll deductions but did not remit it concurrently with the salary payments in 6 months. The delays ranged from 5 to 28 days I noted that 191 newly recruited/transferred employees delayed to access payroll, with delays ranging between 1-9 months I noted that only eight (8) pensioners delayed to access the pension payroll, with delays ranging between 2-7 months I noted that the District did not prepare monthly wage, pension and gratuity performance analysis and thus did not submit quarterly returns on payroll to MoPS I noted that although the entity had prepared a strategic plan that at the time of audit, it had not yet been approved as aligned to the NDP-III I noted that the entity budgeted to receive UGX.22.11Bn as grants from the Treasury. However, only UGX.19.45Bn was received representing 88% performance leading to budget shortfall of UGX.2.66 Bn (12%). I noted that the entity budgeted to receive UGX.1.48Bn as transfers from other Government Units. However, only UGX.1.22Bn was received representing 82.4% performance leading to revenue shortfall of UGX. 0.26Bn (17.6%). I noted that the entity budgeted to receive UGX. 0.39Bn as external/donor financing out of which UGX.0.14Bn was received representing 36% performance leading to revenue shortfall of UGX.0.25Bn (63%). The entity did not prepare and submit the annual monitoring plans to MoFPED, MoLG and NPA as required. The entity also did not submit quarterly monitoring reports to the Office of the Prime Minister and MoFPED as required +08. KABALE DLG Opinion Unqualified  I noted that the wage and Pension Pay roll of UGX.23,557,107,073 constituted 49.6% of the District’s budget for 2020/2021 of UGX.47,484,993,193, + + + + +430 + + + + + + + + + + + + I noted that UGX.52,165,651 was paid to 30 staff who had either + +retired, transferred, absconded or died + + I noted that the District made unauthorised loan deductions totalling to UGX.107 million. The deductions were from 30 employees that did not have letters of undertaking. Of the 30 + +employees, 26 employees did not exist in the “active deduction” while 04 employees did not exist in the “my approval” reports on the PDMS-Payroll Deduction Management System, operated by PCA-Payroll Consults Africa + + I noted that the District made payroll deductions of UGX.4.8 Bn, + +but did not remit concurrently with the salary payments in 5 out + +of 12 months. On average, it delayed by 21 days + + I noted delays in the remittance of PAYE deductions to URA + +ranging from 16 – 15 days + + I noted that the District did not subject political leaders’ gratuity totalling to UGX.36,127,200 to the computation of PAYE in IPPS, + +leading to an under deduction of UGX.9,608,560 + + I noted that 76 newly recruited/ transferred employees delayed + +to access payroll, with delays ranging between 1-2 months, while 50 new recruits did not access the payroll during the financial + +year + + I noted that 36 pensioners delayed to access the pension payroll, + +with delays ranging between 1 - 3 months, whereas 16 pensioners did not access the payroll + + I noted that 03 staff and 26 pensioners were paid a total of UGX 81,673,064 off the IPPS + + I observed that there were variances of UGX.250 Million between the figures in the MoPS IPPS and entity payroll registers + + I noted that although the entity had prepared a strategic plan + +that at the time of audit, it had not yet been approved as aligned to the NDP-III + + I reviewed the approved Local revenue estimates for the financial year 2020/2021 and noted that the District budgeted to collect UGX.0.47Bn during the year but collected UGX.0.402 Bn + +representing (85%) performance. + + I noted that the District budgeted to receive UGX.37.08 Bn (revised) as grants from the Treasury but UGX.33.54 Bn was + +warranted/ received representing 91% performance. + + I noted that the Entity budgeted to receive UGX.9.06 Bn as transfers from other Government Units. However, only UGX.1.45 + +Bn (16%) was received + + I noted that the District budgeted to receive UGX.0.86 Bn as external/donor financing out of which UGX.0.11 Bn (12%), was + +received + + I noted that Out of the total receipts for the financial year of UGX.35.51 Bn, UGX.34.88 Bn (98.2%) was spent by the entity + +431 + + + + + + + + + + + + resulting in an unspent balance of UGX.0.63 Bn (0.8%). I noted that Management submitted performance reports for Q1, Q2, Q3 and Q4 after the deadline given for submission of the reports +09. KANUNGU DLG Opinion Unqualified  I noted that the wage and Pension Pay roll of UGX.28,863,148,598 constituted 66% of the District’s budget for 2020/2021 of UGX.43.7 Bn I noted that the District delayed to submit wage estimates to MoPs, as required I reviewed Payroll funds absorption and noted that UGX.27 billion (95%) was spent out of the total receipts of UGX.28 billion, resulting in an unabsorbed balance of UGX.1 billion I noted under payment of salary amounting to UGX 84,270,346 I noted that 116 staff were paid using wrong salary scales, leading to over payments of UGX.33,520,148, I noted that UGX.13,922,650 was paid to 11 staff who had either retired, transferred, absconded or died I noted that the District made payroll deductions of UGX.6,465,198,289, but did not remit concurrently with the salary payments in 11 out of 12 months. On average, it delayed by 11 days I noted delays in the remittance of PAYE deductions to URA for 2 months I noted that the District did not subject political leaders’ gratuity totalling to UGX.58,306,246 to the computation of PAYE in IPPS, leading to an under deduction of UGX.17,588,374 I noted that 11 newly recruited/ transferred employees delayed to access payroll, with delays ranging between 1-6 months I noted that the District did not prepare monthly wage, pension and gratuity performance analysis and thus did not submit quarterly returns on payroll to MoPS I noted that 11 staff were paid a total of UGX.6,647,285 off the IPPS I carried out a survey to establish the effectiveness and reliability of the IPPS/NID staff/pensioner/beneficiaries’ verification interface and noted the following; In-adequate sensitization and training in the use and navigation of the IPPS. As a result, the HR team was unable to obtain pension payrolls for the financial year under review and the interface files for both salary and pension for the month of October 2020. Lack/inadequate verification and ineffectiveness of the system may affect the integrity of the IPPS payroll I noted that the District budgeted to collect UGX. 969,000,605 + + + + +432 + + + + + + + + + + + + during the year but collected UGX.349,340,889 representing (36%) performance I noted that the Entity budgeted to receive UGX.2,914,268,788 as transfers from other Government Units. However, only UGX.1,346,142,527 (46%) I noted that the District budgeted to receive UGX.958,677,000 as external/donor financing out of which UGX.121,361,000(14%), was received I noted that out of the total receipts for the financial year of UGX.37,438,548,600, UGX.36,912,545,231 (99%) was spent by the entity resulting in an unspent balance of UGX.526,003,369 (1%). I noted that UGX.66,181,436 was charged on items which did not reflect the nature of the expenditure as shown in I noted an irregular payment of VAT UGX 28,258,475 to contractors for the upgrade of Ntungamo HC II to HC III in Butogata Subcounty despite aid-funded projects being VAT exempt . The irregular payment was attributed to the irregular inclusion of the VAT amount in the contract price during the procurement process. I noted that the District budgeted to receive UGX.931,475,272 from Uganda Road Fund for maintenance of 256.9 km of district roads, and UGX.900,073,304 (97%) was received and was utilised on maintenance of 242.5 km of roads, with a shortfall of UGX.31,401,970(3%) which left 14.4 km of roads not worked on. +10. KIRUHURA DLG Opinion Unqualified  I noted that the wage and Pension Pay roll of UGX.12,779,567,829 constituted 50% of the District’s budget for 2020/2021 of UGX.25.49 Bn I reviewed funds absorption and noted that UGX.11.6 billion (90.6%) was spent out of the total receipts of UGX.12.8 billion, resulting in an unabsorbed balance of UGX.1.1 billion I noted salary underpayment of UGX.7,916,200  I noted salary overpayment of UGX.38,256,602 I noted that whereas UGX.2,397,995,367 was deducted from employees’ salaries to be remitted to different beneficiaries, UGX.2,396,361,743 was remitted, leading to an over remittance of UGX.378,730 and an under remittance of UGX.2,012,354 I noted that the District made loan deductions totalling UGX.71,827,411 from 14 employees that neither had letters of undertaking nor existed in the “active deduction” or the “my approval” reports on the Payroll Deduction Management System (PDMS) operated by Payroll Consults Africa (PCA). Also noted that 08 employees were not in ‘’my approval report ’’ but were in “active deduction report”. I further noted that loan deductions relating to 13 employees did + + + + +433 + + + + + + + + + + + +not have evidence of consent by the employees + + I noted that the District made payroll deductions of UGX.919,811,264, but did not remit the deductions concurrently + +with the salary payments in 5 out of 9 months + + I noted that the District did not subject political leaders’ gratuity + +totalling to UGX 30,692,400 to the computation of PAYE in IPPS, + +leading to an under deduction of UGX.8,941,216 + + I noted that 38 newly recruited/transferred employees delayed to + +access the payroll, with delays ranging between 1-2 months + + I noted that only five(5) out a sample of 52 pensioners delayed + +to access the pension payroll, with delays ranging up to a month + + I noted that 15 staff were paid a total of UGX 12,719,746 + +respectively off the IPPS + + I noted that although the entity had prepared a strategic plan + +that at the time of audit, it had not yet been approved as aligned to the NDP-III + + I noted that Kiruhura District budgeted to collect UGX.1.19Bn during the year under review. The entity collected UGX.0.43Bn + +representing 36.16% performance + + I noted that the entity budgeted to receive UGX.2.78 Bn as + +transfers from other Government Units. However, only UGX.1.53Bn was received representing 55.14% performance + + I noted that the entity budgeted to receive UGX.0.85Bn as external/donor financing out of which UGX.0.065Bn was received + +representing 7.75% performance + + I noted that Out of the total warrants for the financial year of UGX.22.39 Bn, UGX.20.25Bn was utilized and spent by the entity resulting in an unspent balance of UGX.2.14 Bn representing an + +absorption level of 90%. + + I assessed the implementation of eight (8) outputs that were + +fully quantified with a total of twenty-one (21) activities worth UGX.2.96Bn and noted the following. + + + +- Three (3) outputs with total expenditure amounting to + +UGX.0.688Bn were fully implemented representing 37.5% of the + +outputs. + + Five (5) outputs with total expenditure amounting to UGX.2.27Bn + +were partially implemented representing 62.45% of the outputs + + I noted that the entity did not prepare and submit the annual monitoring plans to MoFPED, MoLG and NPA as required. + + I noted that the entity also did not submit quarterly monitoring reports to the Office of the Prime Minister and MoFPED as + +required + + I noted that the entity submitted performance reports for Q1, + +Q2, Q3, Q4 after the deadline given for submission of the reports + + I noted variances in performance from my review of the Annual + +434 + + + + + + + + + + + + cumulative performance reports and physical inspections/verification of performance. I reviewed the implementation of Uganda Road Fund and noted the following; A total of UGX.726,279,445 was budgeted for however the District Council received UGX.1,148,526,601 (158%) A total of 221.90 km at an estimated cost of UGX.31,213,190 was planned to be undertaken. However, audit revealed that no work was actually undertaken. Thus the entire 221.90 km were not maintained A total of 6 km at an estimated cost of UGX.17,983,012 was planned to be undertaken. Audit revealed that 34.6 km was undertaken at a cost of UGX.187,493,520. I noted that the initial plan (budget) was not revised when additional funds were received. +11. KISORO DLG Opinion Unqualified  I noted that the wage and Pension Pay roll of UGX.29,217,966,405 constituted 72% of the District’s budget for 2020/2021 of UGX.40.68 Bn I noted that the District did not submit wage estimates to MoPs, as required. I noted an over payment of Pension of UGX.5,223,859 I also noted that the District made payroll deductions of UGX2.595 billion, but did not remit concurrently with the salary payments in 6 out of 6 months sampled. On average, it delayed by 13.5 days I noted delays in the remittance of PAYE deductions to URA ranging from 3 – 32 days I noted that the District did not subject political leaders’ gratuity totalling to UGX.419,638,073 ` to the computation of PAYE in IPPS, leading to an under deduction of UGX.125,070,214 I noted that 7 pensioners delayed to access the pension payroll, with delays ranging between 1-4 months I noted that the Districts prepared monthly wage, pension and gratuity performance analysis but did not submit quarterly returns on payroll to MoPS I noted that 15 staff were paid a total of UGX.47,243,693 off the IPPS I observed that there were variances of UGX.29,495,726 between the figures in the interface files and entity payroll registers Some information on the NIRA interface is sometimes not visible/available for instance date of birth and the photo which delays the verification exercise I noted that Kisoro DLG budgeted to collect UGX.461,618,300 during the year under review. The entity collected + + + + +435 + + + + + + + + + + + + UGX.256,912,576 representing 55.7% performance. I noted that the entity budgeted to receive UGX.1.10Bn as transfers from other Government Units out of which UGX.0.73Bn was received representing 66.2% performance I noted thata the entity budgeted to receive 1.5Bn from external assistance but received 0.11Bn representing 7.6%. I assessed the implementation of fifteen (15) outputs that were fully quantified with a total of fifteen (15) activities worth UGX.3.81Bn and noted the following; Thirteen (13) outputs with Thirteen (13) activities worth UGX.3.808 Bn were fully implemented representing 58.6% of the outputs. Two (2) outputs with two activities(2) worth UGX.0.54 Bn were not implemented representing 3.6% of the outputs(included in the schedule at UGX.0 because no funds were spent) I noted that the entity submitted performance reports for Q1, Q2, Q3 and Q4 after the deadline given for submission of the reports I noted the delayed completion of Nyakinama Seed School (UGIFT project) worth 2,331,850,894 I noted that the District budgeted and received funds worth UGX.344,284,000 under UGIFT program for the construction of Mwumba Progressive SS. However, this project did not take off due to delays in the procurement process and at the time of audit in August, 2021, the project had not started with a delay of 12 months. +12. MBARARA CITY Opinion Unqualified  I noted that the wage and Pension Payroll of UGX.17,869,060,735 constituted 39.4% of the Municipal Council’s budget for 2020/2021 of UGX.45,355,732,366. I reviewed payroll funds absorption and noted that UGX.17.2 billion (96.25%) was spent out of the total receipts of UGX.17.9 billion, resulting in an unabsorbed balance of UGX.0.70 billion I noted salary underpayment of UGX.3,201,482  I noted that UGX 18,896,920 was paid to 2 staff who had died I noted that whereas UGX.3,348,734,358 was deducted from employees’ salaries to be remitted to different beneficiaries, UGX.3,346,988,823 was remitted leading to an over remittance of UGX.7,068,846 and under remittance of UGX.8,814,381 I also noted that the Municipal Council made payroll deductions of UGX.790,748,220, but did not remit concurrently with the salary payments in 12 out 12 months. On average, it delayed by 23 days I also noted delays in the remittance of PAYE deductions to URA ranging from 2 – 34 days I noted that 14 newly recruited/ transferred employees delayed + + + + +436 + + + + + + + + + + + +to access payroll, with delays ranging between 1-2 months + + I noted that 22 pensioners delayed to access the pension payroll, + +with delays ranging between 1 to 10 months + + I noted that the Municipal Council did not prepare monthly wage, + +pension and gratuity performance analysis and thus did not submit quarterly returns on payroll to MoPS + + I observed that there were variances of UGX.7,662,578 between + +the MoPS IPPS and Entity payroll registers + + The merger of both IPPS and NIRA system have not been fully + +done in that when there is a system error each entity has to clear an error in its jurisdiction thus time consuming and affecting timely service delivery. + + The system has not been fully decentralized to the extent that system errors under Employee verification system (issues) with NIRA have to be handled at the Headquarter and this contributes + +to multiple negative factors such delayed clearance of technical issues at least a period of three month or more. + + I noted that although the entity had prepared a strategic plan, at + +the time of audit, it had not yet been approved as aligned to the + +NDP-III. + + I noted that the entity collected local revenue of UGX.3.54Bn of + +6.42Bn representing 55.25% performance + + I noted that the entity budgeted to receive UGX.37.49Bn as grants from the Treasury. However, UGX.31.59 Bn was received, + +representing 84.26% performance + + I noted that the entity budgeted to receive UGX.1.45Bn as + +transfers from other Government Units. However, UGX.7.65Bn was received representing 527.59% performance + + I noted that out of the total receipts for the financial year of UGX.42.84Bn, UGX 36.68Bn was spent by the entity resulting in an unspent balance of UGX 6.15 Bn representing an absorption + +level of 85.6%. + + I noted that the management submitted performance reports for Q1, Q2, Q3, Q4 after the deadline given for submission + + I noted that the contract for the upgrade of Kyarwabuganda HCII to HCIII worth UGX.540,531,906 was completed fourteen (14) + +months after the expected/ contracted end date + + I also noted that another contract of UGX.279,324,596 was awarded to M/s Twinka Enterprises (U) Ltd to construct three units of Doctors houses with planned commencement date of 26/12/2019, and completion date by 26/06/2020. A review of the + +progress report revealed that planned works were completed on 22/08/2020, eleven (11) months outside the contract period without approval. + +437 + + + + + + + + + + + +13. MITOOMA DLG Opinion Unqualified  I noted that the wage and Pension Pay roll of UGX.18,505,405,927 constituted 63% of the District’s budget for 2020/2021 of UGX.29,350,754,495. I noted that the District did not to submit wage estimates to MoPS, as required I noted delays in the remittance of PAYE deductions to URA of up to 100 days I noted that 47 newly recruited/transferred employees delayed to access payroll, with delays ranging between 2-14 months I noted that 7 pensioners delayed to access the pension payroll, with delays ranging between 1-14 months I noted that the District did not prepare monthly wage, pension and gratuity performance analysis and thus did not submit quarterly returns on payroll to MoPS I noted that 6 pensioners were paid a total of UGX.26,607,195 off the IPPS I observed that there were variances of UGX.514,103,048 between the figures in the MoPS IPPS and entity payroll registers, Operational challenges were encountered; E.g. Un-reliable network in Mitooma where HR staff had to physically travel to the neighbouring Bushenyi District to be able to download documents such as pension payroll registers. I noted that the upgrade of Mayanga HC II to HC III contracted to Khalsa (U) Ltd was still under construction and only at roofing stage by the time of audit inspection on 13th October, 2021. However, the medical equipment had already been procured and delivered under a separate contract to M/s Rodrisa Supplies Limited who was expected to supply, deliver, instal, train and commission the medical equipment. Procurement of medical equipment for a health facility still at foundation stage may lead to obsolescence, pilferage and physical damage leading to nugatory expenditure. +14. NTUNGAMO DLG Opinion Unqualified  I noted that the wage and Pension Pay roll of UGX.35,484,605,345 constituted 56% of the District’s budget for 2020/2021 of UGX.63,733,887,733. I reviewed payroll funds absorption and noted that UGX.34,743,195,467 (98%) was spent out of the total receipts of UGX.35,484,605,345, resulting in unabsorbed balance of UGX.741,409,878 I noted that the District made payroll deductions but did not remit concurrently with the salary payments in 8 out of 8 months. On average, it delayed by 12 days I noted that all remittances of PAYE deductions were paid to URA ranged from 9 - 13 days + + + + +438 + + + + + + + + + + + +  I noted that the District did not subject political leaders’ gratuity totalling to UGX.60,526,800 to the computation of PAYE in IPPS, leading to an under deduction of UGX.14,374,090 I noted that the entity did not prepare monthly wage, pension and gratuity performance analysis, and did not submit quarterly returns on payroll to MoPS I noted that 29 staff were paid a total of UGX.91,713,882 off the IPPS I carried out a survey to establish the effectiveness and reliability of the IPPS/NID staff/pensioner/beneficiaries’ verification interface and noted the following; I noted that the entity had no approved a strategic plan at the time of audit I noted that the District budgeted to collect UGX.1,554,984,179 during the year but collected UGX.1,127,109,918 representing (72%) performance I noted that the entity budgeted to receive UGX.8,698,586,134 as transfers from other Government Units out of which UGX.1,307,013,923 was received representing 15% performance leading to a shortfall of UGX.7,391,572,211(85%) I noted that the entity budgeted to receive UGX.1,901,504,814 as external/donor financing out of which UGX.267,332,705 was received representing 14% performance Out of the total receipts for the financial year of UGX. 53.52, UGX. 51.85 (97%) was spent by the entity resulting in an unspent balance of UGX. 1.67 (3%). I carried out an audit inspection of the Construction of Kihanga seed Secondary school (UGX.718,168,225) in September 2021, and noted that the project had been abandoned and behind schedule by 20 months I noted that most of the District land did not have certificates of land titles +15. RUKIGA DLG Opinion Unqualified  I noted that the wage and Pension Pay roll of UGX.15,291,042,432 constituted 50.4% of the District’s budget for 2020/2021 of UGX.30,313,124,744 I noted that the District did not submit wage estimates to MoPS, as required I reviewed payroll funds absorption and noted that UGX.13.167 billion (86%) was spent out of the total receipts of UGX.15.29 billion, resulting in an unabsorbed balance of UGX 2.12 billion I noted that whereas UGX.909,840,551 was deducted from employees’ salaries to be remitted to different beneficiaries, UGX.909,338,143 was remitted, leading to an over/under remittance of UGX.153,842 and UGX.656,250 respectively I noted that the District made payroll deductions of UGX 0.844 + + + + +439 + + + + + + + + + + + + billion, but did not remit concurrently with the salary payments in 11 out of 12 months. On average, it delayed by 6.5 days I noted that the District did not subject political leaders’ gratuity totalling to UGX.34,918,061 to the computation of PAYE in IPPS, leading to an under deduction of UGX.10,880,299 I noted that 6 newly recruited/transferred employees delayed to access payroll, with delays ranging between 1- 3.5 months I noted that the District did not prepare monthly wage, pension and gratuity performance analysis nor submitted quarterly returns on payroll to MoPS I noted that UGX.24,681,002 was paid to 16 staffs that were off the IPPS payroll register I observed that there were variances of UGX30,377,765 between the figures in the interface files and entity payroll registers I noted that the entity prepared a strategic plan but was not yet approved. I noted that Rukiga DLG budgeted to collect UGX. 285,061,188 during the year under review. The entity collected UGX.155,082,884 representing 54% performance. I noted that the entity budgeted to receive UGX.8.77Bn as transfers from other Government Units out of which UGX.0.68Bn was received representing 11% performance I noted that the entity budgeted to receive 1.02Bn from external assistance but received 0.05Bn representing 5%. I noted that out of UGX.21,252,068,152 warrants to finance the council’s budget, only UGX.18,677,785,569 (88%) was spent leaving a balance of UGX.2,574,282,583 (14%) un utilized I noted that the entity did not also submit quarterly monitoring reports to the Office of the Prime Minister and MoFPED as required. I noted that the entity submitted performance reports for Q3, and Q4 after the deadline given for submission of the reports I noted that the District Council budgeted to receive UGX.467,373,000 (Excluding funds to be transferred to LLGs) from Uganda Road Fund for maintenance of 80.9kms of District roads, and UGX.252,363,000 (54%%) was received and was utilised on maintenance of 74.7kms of roads, installation of culverts, equipment repairs and supervision with a shortfall of UGX.215,010,000 (46%) As a result of revenue shortage, 6.2KMs of roads were not maintained under periodic maintenance as planned +16. RUKUNGIRI DLG Opinion Unqualified  I noted that the wage and Pension Pay roll of UGX.30,042,268,241 constituted 66.8% of the District’s budget for 2020/2021 of UGX.44.95 Bn. I noted that the District did not submit wage estimates to MoPS, + + + + +440 + + + + + + + + + + + +as required + + I noted that two Education Officers (Twinomuhwezi Julius IPPS no.328279 and Abaho Besigye Gerald IPPS no. 326667) under U4 who were erroneously captured as Assistant Education Officers and paid under U5 thus an over payment of UGX 304,295 + + I noted that UGX.28,077,304 was paid to 19 staff who had either + +retired, transferred, absconded or died + + + +- I noted that whereas UGX.6,307,960,826 was deducted from + +employees’ salaries to be remitted to different beneficiaries, UGX + +6,304,814,535 was remitted, leading to an over/ under remittance of UGX.5,128,867 and UGX.8,275,158 respectively + + I noted that the District made payroll deductions of UGX.2.259 + +billion, but did not remit concurrently with the salary payments in 10 out of 12 months. On average, it delayed by 6.5 days + + I noted delays in the remittance of PAYE deductions to URA + +ranging from 2 – 22 days + + I noted that the District did not subject political leaders’ gratuity + +totalling to UGX.11,718,959 to the computation of PAYE in IPPS, + +leading to an under deduction of UGX.3,715,200 + + I noted that 7 newly recruited/ transferred employees delayed to + +access payroll, with delays ranging between 1-5 months + + I noted that 1 pensioner delayed to access the pension payroll, + +with delays of over of 6 months + + I noted that the Districts prepared monthly wage, pension and + +gratuity performance analysis but did not submit quarterly returns on payroll to MoPS + + I observed that there were variances of UGX 190,771,973 + +between the figures in the interface files and entity payroll registers + + I noted that the entity had not approved a strategic plan that is aligned to the NDP-III at the time of audit + + + +- I noted Rukungiri DLG budgeted to collect UGX.776,944,000 + +during the year under review. However the entity collected + +UGX.625,618,740 representing 81% performance. + + I noted that the entity budgeted to receive UGX.1,411,248,710 as transfers from other Government Units out of which + +UGX.888,876,678 was received representing 63% performance + + I noted that the entity budgeted to receive 1.05Bn from external + +assistance but received 0.116 Bn representing 11%. + + I noted that out of UGX.42,031,304,808 warrants to finance the + +council’s budget, only UGX.40,435,316,368 (96%) was spent + +leaving a balance of UGX.1,595,988,440 (4%) un utilized + + I noted that the entity submitted performance reports for Q2, + +Q3, and Q4 after the deadline + + I noted the delayed completion of Kebisoni Seed School (UGIFT + +441 + + + + + + + + + + + + project). Project behind schedule by four(04) months I noted that The District received UGX.499,963,986 (96.3%) of its Uganda Road fund and as a result was not able to maintain 14.2 Km of roads as planned +17. RWAMPARA DLG Opinion Unqualified  I noted that the wage and Pension Pay roll of UGX.12,530,332,963 constituted 62% of the District’s budget for 2020/2021 of UGX.20,291,699,406. I noted that the District did not to submit wage estimates to MoPS, as required I noted salary overpayment of UGX 6,766,726 I further noted that there was an under payment of UGX.30,357,501 I noted pension and gratuity overpayment of UGX 2,144,892 I noted that UGX.4,580,492 was paid to 4 staff who had either retired or died I noted that whereas UGX.2,342,683,197 was deducted from employees’ salaries to be remitted to different beneficiaries, UGX.2,336,599,219 was remitted, leading to an over remittance of UGX.1,549,064 and under remittance of UGX.7,633,042 I noted that the District made unauthorized loan deductions totalling UGX.48 million. The deductions were from 28 employees that had no letters of undertaking however existed in the “active deduction” and the “my approval” reports on the PDMS-Payroll Deduction Management System, operated by PCA-Payroll Consults Africa I noted that deductions to UCLA/UBA were not remitted concurrently with salary payments for 12 out 12 months. I also noted that there was an average delay to remit deductions to UCLA/UBA of 21.3 days I noted delays in the remittance of PAYE deductions to URA for 2 months. I also noted that there was an average delay to remit deductions to URA of 0.5 days I noted that the District did not subject political leaders’ gratuity totalling to UGX.3,114,720 to the computation of PAYE in IPPS, leading to an under deduction of UGX.934,416 I noted that 51 newly recruited/ transferred employees delayed to access payroll, with delays ranging between 9 weeks I noted that 15 pensioners delayed to access the pension payroll, with delays ranging between 3-4 months noted that the District did not prepare monthly wage, pension and gratuity performance analysis and thus did not submit quarterly returns on payroll to MoPS, I noted that although the district had prepared a strategic plan that at the time of audit, it had not yet been approved as aligned + + + + +442 + + + + + + + + + + + + to the NDP-III I noted that Rwampara District budgeted to collect UGX.0.392bn during the year under review. The entity collected UGX.0.379bn representing 96.68% performance. I noted that the entity budgeted to receive UGX.1.51 Bn as transfers from other Government Units. However, only UGX.0.68 Bn was received representing 45% performance leading to revenue shortfall of UGX. 0.83Bn (55%). +18. SHEEMA DLG Opinion Unqualified  I noted that the wage and Pension Pay roll of UGX.18,356,082,529 constituted 65% of the District’s budget for 2020/2021 of UGX.27,950,550,703 I reviewed payroll funds absorption and noted that UGX.17.61 billion (95%) was spent out of the total receipts of UGX.18.52 billion, resulting in an unabsorbed balance of UGX.0.91 billion. I noted that whereas UGX.3,758,132,718 was deducted from employees’ salaries to be remitted to different beneficiaries, UGX.3,749,366,009 was remitted, leading to an over/ under remittance of UGX.73,581,127 and UGX.82,347,836 I noted that the District made unauthorized loan deductions to 663 employees totalling UGX.1,146,130,412. The deductions neither had letters of undertaking nor existed in the “active deduction” or the “my approval” reports on the PDMS-Payroll Deduction Management System. I noted that 3 pensioners delayed to access the pension payroll, with delays ranging between 12-22 months I noted that UGX.5,912,486 was charged on account codes other than those prescribed for salary, pension and gratuity I noted that the District did not prepare monthly wage, pension and gratuity performance analysis and thus did not submit quarterly returns on payroll to MoPS, I noted that 272 staff were paid a total of UGX. 309, 147,845 off IPPS Mismatches of names that take long to be corrected by NIRA and affects ability to timely access people on payroll. In some cases, the statuses under IPPS remain “NOT VERIFIED” even when the record is verified and approved. This again requires one to contact Ministry of Public service for an intervention. It was noted that at the time of audit (June 2020/21) out of 5 strategic targets, Sheema district fully attained 1 target, and partially completed 4 I noted that the District budgeted to collect UGX.0.587million during the year under review. The entity collected UGX.0.351million representing 60% performances I noted that he entity budgeted to receive UGX.960,458,000 as + + + + +443 + + + + + + + + + + + +transfers from other Government Units out of which + +UGX.892,442,495 was received representing 93% performance. + + I noted that the district budgeted to receive UGX.279,500,000 as + +external/donor financing out of which UGX.130,287,709 million was received representing 47% performance + + I noted that out of the total receipts for the financial year of UGX.26.95Bn,) UGX.25,32Bn was spent by the entity resulting in an unspent balance of UGX.1.63 Bn representing an absorption + +level of 94%. + + I noted that the entity submitted performance reports for Q1, + +Q2, Q3, Q4 after the deadline given for submission of the reports + +444 + + + + + + + + + + + +ANNEXURE III: REPORTS AND CONSOLIDATED GOVERNMENT OF UGANDA FINANCIAL STATEMENTS + +445 + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + +