OFFICE OF THE AUDITOR GENERAL THE REPUBLIC OF UGANDA OFFICE OF THE AUDITOR GENERAL UGANDA REPORT OF THE AUDITOR GENERAL ON THE FINANCIAL STATEMENTS OF KALANGALA DISTRICT LOCAL GOVERNMENT FOR THE FINANCIAL YEAR ENDED 30 TH JUNE 2021 Table of Contents List of Acronyms - iii Opinion - 1 Basis for Opinion - 1 Key Audit Matters - 1 1.0 Payroll Management - 1 2.0 Implementation of the approved budget - 9 3.0 Implementation of Uganda Inter-Governmental Fiscal Transfers Program (UgIFT) - 13 Other Information - 13 Management Responsibilities for the Financial Statements - 13 Auditor’s Responsibilities for the Audit of the Financial Statements - 14 Other Reporting Responsibilities - 15 Report on the Audit of Compliance with Legislation - 15 Appendices - 17 Appendix 1: Over payment of salary - 17 Appendix 2: Under payment of salary - 17 Appendix 3: Payment of salary using wrong scales - 18 Appendix 4 (a): Lack of letters of undertaking - 20 Appendix 4 (b): Loan deductions with variances in the IPPS, “active deduction” or the “my approval” reports - 25 Appendix 5: Delayed/non-remittance of deductions to UCLA/UBA - 27 Appendix 6:Delayed remittance of PAYE deductions to URA - 27 Appendix 7:Non-deduction of PAYE from political leaders - 28 Appendix 8: Delayed access of newly recruited or transferred staff to the payroll - 29 Appendix 9: Delayed access to the pension payroll - 31 Appendix 10: Payments of salaries off IPPS - 32 Appendix 11: Validation of employees, pensioners/beneficiaries on the IPPS against the NIRA interface - 33 Appendix 12: Use of wrong Budget and expenditure codes (Misclassification) - 34 Appendix 13: Inspection of Construction works at Kachanga Seed Secondary School - 35 List of Acronyms Acronym Meaning ACDP Agriculture Cluster Development Project AIA Appropriation in Aid CAO Chief Administrative Officer DLG District Local Government GoU Government of Uganda HR Human Resource ICT Information & Communication Technology IFMS Integrated Financial Management System INTOSAI International Organization of Supreme Audit Institutions IPF Indicative Planning Figures IPPS Intergrated Personel and Payroll System ISSAI International Strandards for Supreme Audit Institutions ISSAIs International Standards of Supreme Audit Institutions LGFAM Local Government Financial and Accounting Manual, 2007 LGFAR Local Government Financial and Accounting Manual, 2007 LLG Lower Local Governments MDAs Ministries, Departments and Agencies MoFPED Ministry of Finance, Planning and Economic Development MoGLSD Ministry of Gender, Labour and Social Development MoLG Ministry of Local Government MoPS Ministry of Public Service NAA National Audit Act NDP National Development Plan NIRA National Identification Registration Authority NPA National Planning Authority NTR Non-Tax Revenue OAG Office of the Auditor General PAYE Pay As You Earn PBS Program Budgeting System PCA Payroll Consults Africa PDMS Payroll Deduction Management System PDU Procurement & Disposal Unit PFMA Public Finance Management Act PFMR Public Finance Management Regulations PPDA Public Procurement & Disposal of Public Assets PS/ST Permanent Secretary / Secretary to the Treasury TI Treasury Instructions TSA Treasury Single Account TSSA Treasury Sub Single Account UCF Uganda Consolidated Fund UgIFT Uganda Intergovernmental Fiscal Transfers Program for Results UGX Uganda Shilling UNEB Uganda National Examination Board URA Uganda Revenue Authority URF Uganda Road Fund UWEP Uganda Women Empowerment Project VFM Value for Money YLP Youth Livelihood Program REPORT OF THE AUDITOR GENERAL ON THE FINANCIAL STATEMENTS OF KALANGALA DISTRICT LOCAL GOVERNMENT FOR THE FINANCIAL YEAR ENDED 30 TH JUNE 2021 THE RT. HON. SPEAKER OF PARLIAMENT Opinion I have audited the accompanying financial statements of the Kalangala District Local Government which comprise the Statement of Financial Position as at 30 th June 2021, the Statement of Financial Performance, Statement of Changes in Equity and Statement of Cash Flows together with other accompanying statements for the year then ended, and notes to the financial statements, including a summary of significant accounting policies. In my opinion, the financial statements of Kalangala District Local Government for the financial year ended 30 th June 2021 are prepared, in all material respects, in accordance with Section 51 of the Public Finance Management Act, 2015 and the Financial Reporting Guide, 2018. 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 District in accordance with the Constitution of the Republic of Uganda 1995 (as amended), the National Audit Act, 2008, the International Organization of Supreme Audit Institutions (INTOSAI) Code of Ethics, the International Ethics Standards Board for Accountants Code of Ethics for Professional Accountants (Parts A and B) (IESBA Code), and other independence requirements applicable to performing audits of Financial Statements in Uganda. I have fulfilled my other ethical responsibilities in accordance with the IESBA Code, and in accordance with other ethical requirements applicable to performing audits in Uganda. 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 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 as the key audit matters to be communicated in my report: As a result, I considered payroll management in LGs a Key Audit Matter and identified crosscutting risks including; unrealistic budgeting for employees and pension costs, under absorption of wage funds, delayed access to the payroll, over payment of salaries, non-payment of salary and pension arrears, among others. I analysed the approved budget and releases to Kalangala District for salary, pension and gratuity in the period under review, as shown below; Category Initial Approved budget (UGX) Revised budget (UGX) Amount released (UGX) %age funding received Salary 8,210,136,750 8,897,396,514 8,897,396,514 100 Pension 302,387,712 302,387,712 302,387,712 100 Gratuity 1,282,025,584 1,282,025,584 1,282,025,584 100 Pension Arrears - - - - Salary Arrears - - - - Total 9,794,550,046 10,481,809,810 10,481,809,810 The wage and Pension Pay roll of UGX.10,481,809,810 constituted 52.1% of the District’s budget for 2020/2021 of UGX.20,128,919,532. I am aware that the Covid-19 Pandemic continues to significantly affect the implementation of payroll management activities. A number of Districts did not carry out planned recruitments resulting into huge unspent balances. Based on the audit procedures performed, I made the following significant audit findings; No Observations Recommendati ons 1.1 Payment of Salaries, Pension and Gratuity i) Absorption of Funds I reviewed funds absorption and noted that UGX.9.40 billion (89.7%) was spent out of the total receipts of UGX.10.48 billion, resulting in an unabsorbed balance of UGX.1.08 billion.Billion was subsequently swept back to the consolidatedExpenditure (C)Unspent (B-C)% absorp tionGeneral staff salaries PensionGratuity(UGX ’bns) (UGX ’bns) 8.90 8.90 7.83 1.070.301.280.301.280. 291.270.010.01889799to the table below; Approv ed Estima tes (A) (UGX ’bns)Releases / Warrant (B) (UGX ’bns)fund account.UGX.1.08Refer advised the Accounting Officer to always ensure that there is adequate payroll planning and that funds are utilized for the intended purpose.I Pension Arrears - - - - - serviceintonot paid Salary Arrears - - - - - Total 10.48 10.48 9.40 1.08 absorption of released funds negatively impacts serviceAccounting Officer explained that they faced the following challenges during the course of implementation of the Approved Wage budget for the Financial Year 2020/2021 which resulted into under absorption of the released funds;Failure to attract staff who were budgeted for in the Financial year 2020/2021. Three positions were advertised but were not filled, accumulating UGX.67,774,212.  Staff under disciplinary measures especially porters were not paid a total of UGX.5,404,948 because of abandonment of duty.appointments were terminated in May 2021 leading to unspent balance which was swept back to treasury.delivery.Under TheTheir ii) Over payment of salary Section B-a (7) of the Uganda Public Standing Orders, 2010 requires salaries to be fixed at annual rates and paid in twelve (12) equal instalments. It also requires salaries to be paid correctly, promptly and as a lump sum in accordance with the approved salary structure for the Public Service.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 payments of UGX.1,265,254, contrary to Section B-a (7) of the Uganda Public Standing Orders, 2010, as shown in Appendix 1.payment of salaries leads to loss of Government funds.Accounting Officer explained that this was due to IFMS network being slow and duplicating payments.AOverThe I advised the Accounting Officer to recover the funds from the concerned officers. iii) Under payment of salary A review of the payroll data (IPPS) and IFMS payments revealed variances between amounts on the approved payroll and payments to individual an under payment of UGX.37,719,627 as shown in Appendix 2.employees, leading topayment of salary reduces staff morale and productivity.Accounting Officer responded that pursuant of section (A - n), paragraph 19 of the Uganda Public Service Standing Order (2010 edition) that gives Accounting Officers powers to stop salary of the officer who might have abandoned duty for 30 days; he Suspended salary of staff who abandoned duty until District Service CommissionUnderThe I advised the Accounting Officer to periodically review staff payrolls to eliminate errors and mistakes. directs his/her removal from the payroll. iv) Payment of salary using wrong scales A comparison of base pay in the IPPS payroll registers with the salary structure for 2020/21, revealed that 24 staff were paid using wrong salary scales, leading to under payments of UGX.1,281,833, contrary to Section B–a (6) & (7) of the Uganda Public Service Standing Orders, 2010, as shown in Appendix 3.of salary using wrong scales causes creates opportunity for misappropriation of funds and also leads to misstatements of salary expenditure in the financial statements.Accounting Officer attributed this to the following;  Interrupted IPPS internet network throughout the financial year 2020/2021 as a result of new upgrades made by MOPS  Non automatic increment of the segment whenever incremental date is reached.PaymentThe I advised the Accounting Officer to ensure that salary amounts are reconciled periodically to salary scales before effecting payments v) Delayed deletion of staff from payroll Section B-a (12) of the Uganda Public Standing Orders, 2010 requires the payment of salary to public officers to be stopped immediately they cease rendering services to Government under whatever circumstances, including death.noted that UGX.1,480,155 was paid to one staff who had retired, as detailed in table below; Employ ee NameSN. Supplier NoRetireme nt/ transfer dateMonth/dat e removed from the payrollThe total amount paid after retirement date Ssenyonjo 745107 30/01/2020 30/10/2020 1,480,155 Suleman TOTAL 1,480,155Delayed removal of staff from payroll results into payment for services that were not rendered to the entity hence resulting in financial loss to the Government.Accounting Officer explained that this was an Education Assistant II who had retired under early retirement but his recommendation for retirement was received late.IThe I advised the Accounting Officer to ensure his team verifies accuracy of information on Payroll to ensure all leavers are excluded. 1.2 Management of Payroll Deductions i) Over/Under remittance of deductions Section B-a (17) requires a public officer’s individual contractual obligations such as hire purchase, loan, and contributions to saving schemes, trade unions and staff associations to be deducted from his or her salary, in accordance with the regulations.noted that whereas UGX.2,448,664,141 was deducted from employees’ salaries to different beneficiaries, UGX.2,446,635,255 was remitted, leading to an under remittance amounting to UGX.73,649,208, as shown in the table below;to be remittedI I advised the Accounting Officer to ensure his team verifies accuracy of information on Payroll and timely reconcile the results with payment on the IFMS. SN . Beneficia ry Deduct ion code Payroll Deduction amount (UGX) Amount remitted as per IFMS (UGX) at remittance (UGX)Under 1 Uganda Revenue Authority Collections 249 1,498,987,622 1,447,620,813 51,366,809 2 Uganda National Teachers Union (Unatu) 257 15,514,560 15,339,815 174,745 3 Uganda Consumer Lenders/ Uganda Bankers Associatio n 482 317,931,647 295,823,993 22,107,654 Total 1,832,433,829 1,758,784,621 73,649,208 Under remittances could lead to misappropriations of funds not paid to the beneficiaries Additionally, Over remittance of funds could lead to loss of District funds.Accounting Officer attributed under remmittance to the following;  The challenge of the IFMS network which duplicates and at times hides payments after they are validated and then returns them at the closure of Financial year as unpaid.  A result of non remittance of deductions on suspended salary for staff under disciplinary proceedures.The ii) Un-authorized loans deductions Section 2.1.2 & 2.1.4 of the service agreement between the Government Uganda Lenders' Association/Uganda Bankers' Association letter of undertaking for each Government employee before making an employee reservation on the PDMS.Consumer requires a(MoPS) andaddition, only deductions consented to by employees, in writing, should be submitted to the MoPS for timely monthly payroll processing or as advised by the employer.Lack of letters of undertaking I noted that the District made unauthorised loan deductions totalling UGX.100,753,524 . The deductions were from 57 employees that did not have letters of undertaking, as shown in Appendix 4(a).is a risk of making deductions from staff that have no loans, which deprives them of their earnings.Accounting Officer explained that this was due to the fact that Financial Institutions offer loans to employees using phones, where management has no control, since an employee receives money before being approved on the PCA. Additionally, financial institutions offer Topup loans without signing new Letters of undertaking.In a) ThereThe I advised the Accounting Officer to ensure that all loan applications are backed by letters of undertaking as well as letters of consent by the applicants.the Accounting Officer should liaise with responsible officers to ensure that loans are approved through the PDMS.Additionally, b) Loan deductions with variances in the IPPS, “active deduction” or the “my approval” reports I noted variances amounting UGX.56,902,296 between the amounts in the IPPS payroll register and my approvals and active deductions as shown in Appendix 4(b).is a risk of making deductions from staff that have no loans, which deprives them of their salary earnings.Accounting Officer explained that this due to the fact that Financial institutions adjust loan instalment amounts whenever they wish and also the delay to remove deduction codes from employees’ salary especially those who obtained loans before single code was introduced.ThereThe iii) Delayed/non-remittance of deductions to UCLA/UBA Paragraph 4.6.1 of Establishment Notice No. 2 of 2019 requires payroll deductions to be remitted concurrently with salary payments. I noted that the District made payroll deductions of UGX.317,931,647, but did not remit UGX.22,107,654 to UCLA/UBA. I noted that the District made payroll deductions of UGX.317,931,647 and did not concurrently remitted it with the salary payments in six months with delays of up-to 56 days, as shown in Appendix 5.non remittance of deductions to UCLA/UBA could lead to litigation due to delays in payments to the lending institutions.Accounting Officer attributed this to poor IFMS network which slowed down the payment system causing a delay in remitting deductions.Delayed/The I advised the Accounting Officer to ensure that Salary payments and Deductions to respective beneficiaries are approved and paid concurrently. iv) Delayed/ non-remittance of PAYE deductions to URA Section 123(1) of the Income Tax Act, 1997 (as amended) requires withholding agents 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.  I noted that the Management made PAYE deductions of UGX.1,498,987,622, but under remitted UGX.51,366,809 to URA.  I noted delays in the remittance of PAYE deductions to URA deductions of four months with a notable delay of 45 days from April 2021 deductions, as shown in Appendix 6.remittance of PAYE attracts fines and penalties from the Revenue Authority.Accounting Officer attributed this to poor ifms network which slows down the payment system causing a delay in remitting deductions.DelayedThe putI advised the Accounting Officer to strong internal controls to ensure that officers effect payments promptly invoices created.after are v) Non-deduction of PAYE from political leaders I noted that the District did not subject political leaders’ gratuity totalling to UGX.51,416,102 to the computation of PAYE in IPPS, leading to an under deduction of UGX UGX.11,323,785 contrary to section 19(1) (a) of the Income Tax Act. Details are shown in the Appendix 7.of political leaders’ and commissioner’s gratuity from the computation of PAYE leads to financial loss to Government.Accounting Officer responded that IPPS system does not insert a formula for calculating PAYE from contract gratuity therefore they recalculate PAYE leaders and Chairperson District Service Commission and pay it off IPPS.from gratuity District PoliticalOmissionThe I advised the Accounting Officer to ensure that political leaders’ gratuity is subjected to tax by including in the gross taxable income when computing PAYE 1.3 Access to Payrolls i) Delayed access to Salary Payroll Section B-a (11) of the Uganda Public Standing Orders, 2010, requires Accounting Officers to ensure that Public Officers access the payroll within four (4) weeks from date of assumption of duty.noted that 16 newly recruited/transferred employees delayed to access payroll, with one delay of up-to 150 days (21 weeks), as shown in Appendix 8.access to payroll leads to demotivation of the affected staff and accumulation of salary arrears.Accounting Officer responded that this was due to the following;  Delay for new employees to obtain TINs due to high transport costs since it was COVID period.  Mismatch of names with NIRA and IPPS  Some transferred teachers report to their duty stations but fail to report to the district in time to affect payroll changes.IDelayedThe I advised the Accounting Officer to increase monitoring and supervision over the head of human resource to promptly include new staff on the payroll for subsequent payment on IFMS. ii) Delayed access to Pension payroll Paragraph 5.1 of establishment notice no. 1 of 2020 requires responsible officers to initiate and complete the processing of retirement benefits within six months to the mandatory retirement date. In case of death or early retirement, the process should be initiated immediately the Letters of Administration are issued and/or the early retirement has been granted.noted that that three pensioners delayed to access the pension payroll, with delays ranging from 31 to 62 days and one case who was expected to access the payroll in August 2020 but by June 2021, he had not as shown in Appendix 9.access to the pension payroll affects the wellbeing of the retirees and also leads to accumulation of pension arrears.Accounting Officer attributed this to mismatches in dates of birth and names between IPPS and NIRA which made it difficult forIDelayedThe startI advised the Accounting Officer to ensure that prospective pensioners submitting pension documentation six months before retirement to ensure timely access to pension payroll. pensioners to be verified. 1.4 Internal Control Weaknesses i) Payments of salaries, pension & gratuity off IPPS Paragraph 4.5 of Establishment Notice No. 2 of 2019 requires the responsible officer to pay for only salaries, pension and gratuity processed through IPPS.a comparison of the payroll register and IFMS payment file,noted UGX.14,222,733 off the IPPS, as shown in Appendix 10.that 9 staff were paid total salaries amountingcontrol weakness creates an opportunity for payment of salaries and pension to non-eligible persons, hence loss of funds to Government.IFromThis I advised the Accounting Officer to ensure that all salaries are paid through the IPPS. ii) Validation of employees, pensioners/beneficiaries on the IPPS against the NIRA interface I noted that the verification forms and copies of the verification cards for three (3) pensioners/beneficiaries were not on the respective personal files. Details are in the appendix 11;was therefore unable to validate, authenticate the accuracy of the payroll records (salary and pension) on the IPPS.of verification forms and cards on the staffs’ personal files was attributed to the practice of employees printing, signing and taking the verification forms and cards without keeping a copy on file.Accounting Officer promised to ensure that all verified officers will have their verification cards printed and put on their files.I LackThe await the theI outcome of Accounting Officer’s response. 1.5 System related challenges I advised the Accounting Officer to ensure that the entity IPPS payroll registers are consistent with MoPS payroll data. i) Inconsistencies between MoPS and entity payroll registers I noted that there was 1 staff were on the MoPS payroll but not on the District IPPS register as shown in the table below;IppsnoSupplier no861925 102625Employee name Nankumba SarahMoPS IPPSEntity IPPS7,498,116 NilGrand Total7,498,116above undermines the integrity of the IPPS system and there is risk of manipulation and misappropriation of salary/pension funds due to lack of reconciliatory controls between the entity information and IPPS master data at MoPS.S n1The ii) Effectiveness and reliability of the IPPS/NID interface I reviewed the effectiveness and reliability of the IPPS/NID staff/pensioner/beneficiaries’ verification interface and noted the following; await the theI outcome of Accounting Officer’s response. - In-adequate sensitization and training in the use and navigation of the system - System was not reliable and effective - Operational challenges were encountered, including;  E.g. Un-reliable network  Some information on the NIRA interface is sometimes not visible/available for instance date of birth and the photo which delays the verification exercise. The ineffectiveness of the system my affect the integrity of the IPPS payroll. The Accounting Officer promised to start documenting challenges with the system so that they can be forwarded to relevant authorities for a solution. 2.0 Implementation of the approved budget A review of the entity’s approved work plans, and budgets revealed that the Kalangala District had an approved budget of UGX.19.3Bn, out of which UGX.17.6Bn was warranted/availed by the end of the financial year. The total expenditure for the year was UGX.16.9Bn out of which UGX.4.4Bn was spent on non-service delivery activities, such as employee costs and transfers to other units (i.e. Town Councils, Sub-counties, Schools), implying that only UGX.12.5Bn was available for implementation of service delivery outputs. From the procedures undertaken, I noted the following significant observation: No Observation Recommendation 2.1 Existence of Strategic plans that are aligned to NDP- III 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.13 (6) of the PFMA requires the annual budget of all votes to be consistent with the National Development Plan (NDP). In the budget execution circular for 2020/2021, the PS/ST points out that the alignment of Government budgets with the NDP has been poor and was prioritised for improvement during financial year 2020/2021.being the first year of implementation of the NDP-III, the entity was expected to have prepared a strategic plan that is aligned to NDP III and had it approved. It is from this strategic plan that the annual plans would be based to achieve the objectives of NDP-III.noted that the entity had not prepared and approved its strategic plans.There is a risk that activities implemented during the financialISectionThis I advised the Accounting Officer to urgently prepare a strategic plan aligned to NDP-III and have to facilitate the achievement of the NDP objectives the preparation of annual budgets.it approvedand year 2020/2021 were not aligned to the NDP-III, which negatively affects the achievement of NDP-III objectives.Accounting Officer explained that the National Planning Authority (NPA) had been conducting trainings to build capacity of district planners to ensure alignment of District Development Plan (DDP) to National Development Plan (NDP) III and the district had submitted the draft DDP for review to NPA.The 2.2 Revenue Performance I advised the Accounting Officer to always come up with measures that ensure that budgeted NTR is collected. 2.2.1 Local Revenue (LR) Performance I reviewed the approved Local revenue estimates for the financial year 2020/2021 and noted that the District budgeted to collect UGX.1,379,547,000 during the year but collected UGX.512,435,984 representing (37%) performance. The of UGX.867,111,016 (63%) were recorded in Local Service Tax, Business Licences and other tax revenues.shortfalls in Local Revenue collectionsin NTR collections at the vote level result in aggregate revenue shortfalls at the treasury level, which negatively affects the implementation of planned activities at a Government-wide level.Accounting Officer explained that due to effects of Covid-19 pandemic the District was under lockdown and businesses at all landing sites collapsed, as well as all fishing activities. 2.2.2 Transfers from other Government Units/Other Government Transfers The entity budgeted to receive UGX.2,549,359,196 as transfers from other Government Units. However, only UGX.1,787,892,739 (70%) was received, as shown in the table below.Showing performance of revenue transfers from other% Perfo rman ceVaria nce”000”Revised Approved Budget” (UGX) ”000”Total Receipts (UGX) ”000”government agencies SN Revenue Source1. Uganda 1,570,359 1,541,097 29,262 98%2. 979,000 246,796 732,20 25% 4Road Fund (URF) Youth Livelihood Programme (YLP Total 2,549,359 1,787,893 Source: Financial Statementsshortfalls negatively affected the implementation of planned activities.(UGX)Shortfalls TheTableRevenue I await the outcome of the Accounting Officer’s response. The Accounting Officer explained that they had anticipated the receipt of budgeted funds but effects of Covid 19 pandemic caused budget cuts. He however, committed that in the next planning period the district would liaise with the the responsible agencies to realise the budgeted funds. 2.2.3 Performance from external financing I advised the Accounting The District budgeted to receive UGX.1,990,000,000as Officer to followup with external/donor financing, out of which UGX.781,875,946 the relevant agencies to (39%), was received as shown in the table below: Showing performance of external funding provide the funding in the subsequent financial SN Donor Revised Total Variance % years. Budget Receipts Perfo (UGX) (UGX) (UGX) rman ”000” ”000” ”000” ce 1. Rakai Health 1,060,000 724,857 335,143 68 Sciences Programme (RHSP) 2. Global Fund for 600,000 57,019 542,981 10 HIV, TB & Malaria 3. Global Alliance for 150,000 - 150,000 0 Vaccines and Immunization (GAVI) 4. United Nations 180,000 - 180,000 0 Expanded Programme on Immunisation Total 1,990,00 1,208,12 0 781,876 4 Source: Financial statement Revenue shortfalls negatively affect the implementation of planned activities and the achievement of NDPIII objectives. The Accounting Officer responded that they had anticipated the receipt of budgeted funds but effects of Covid 19 pandemic caused budget cuts. He however, committed that in the next planning period the district shall liaise with the the development partners to realise the budgeted funds. 2.3 Absorption of funds I await the out come of Out of the total Warrants/receipts for the financial year of the accounting officer’s UGX.17,559,410,157, UGX.16,884,369,560 (96%) was spent response. by the entity resulting in an unspent balance of UGX.675,040,597 (4%). The unspent balance at the end of the financial year was subsequently swept back to the consolidated fund account. science kits and chemical reagents.Accounting Officer explained that the unspent balances were for works for the SEED Schools but since the procuremet processes had not been completed the funds were swept back. Thee district had written to the MoFPED to revote the money to this current year budget.The Misclassification of expenditure I noted that the district budgted and spent UGX.357,586,292 on inappropriate budget codes. Details of cases where this was observed are attached as Appendix 12.2.4of inappropriate budget and expenditure codes not only contrary to the Public Finance and Management Act, but it negatively financial statements.impacts on the consolidation ofAccounting Officer explained that this was due to failure to align the District budget to the Chart of Accounts. He stated that he would encourage heads of departments during planning and budgeting to always involve Departmental Accountants who understand the Chart of Accounts so that transactions are put the right item codes.UseThe I await the outcome of the Accounting Officer’s response. 2.5 Submission of Quarterly Performance Reports Paragraph 8.12 (4,5,6) of the Treasury Instruction 2017, require the Accounting Officer to prepare reports for each quarter of the Financial Year in respect of the vote for which he/she is responsible. These reports shall contain financial and non-financial information on the performance of the vote and shall be submitted to Treasury not later than 15 days after the end of each quarter.noted that the entity submitted performance reports for Q1,Q2, Q3 and Q4 after the deadline given for submission of the reports as shown in the table below;-showing comparison of Actual and reported performance of quarterly performance reports. Deadline for submissionNo Details CommentQuarter One Quarter TwoQuarter Three15/10/2020 15/01/202115/04/2021 Quarter Four 15/07/2021 21/10/2021Source: OAG analysisActual date of submission 25/01/2021 05/07/202105/07/2021Delayed DelayedDelayed Delayedto submit performance reports in time affects timely tracking and evaluation of performance.I1 234TableFailure I advised the Accounting Officer to ensure that performance reports are prepared and submitted in time. 3.0 Implementation of Uganda Inter-Governmental Fiscal Transfers Program (UgIFT) During last year’s audit, it was noted that the district had commenced construction works on Kachanga seed school under the Education Sector and Site clearing of Mulabana Seed School. During my audit of 2021, I carried out audit inspectins at Kachanga Seed Secondary School under this program on 20/10/2021 and made the following observations with details in Appendix 13. - Construction Works were not yet complete for the two science laboratories, Mult- purpose hall, and class room block. - Furniture for the class rooms had not yet been supplied. - Out of the seven (7) classroom blocks only three (3) had windows fitted with glass. - There was partial supply of laboratory equipment and Computers. Delayed completion of the project denies the community the intended services. The Accounting Officer explained that some works were not yet complete due to the COVID-19 pandemic which led to the total closure of the site for the sometime. However, the contractor has been working non-stop to ensure that the construction process is completed within the shortest time possible. He also stated that, the partial supply of laboratory equipment and computers arose out the failure of the service provider to deliver items that meet the specifications of the contract and were rejected. I advised the Accounting Officer to ensure close supervision of the contractors to complete the project. 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. 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 District’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 District’s 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. 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 Districts’ 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 District’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 District 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. 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 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 criteria. Appendices Appendix 1: Over payment of salary Employee Number Supplier Number Employee Name IPPS Net Pay IFMS Net pay Over Payment Management Response Verification Remarks 861926 745089 Nakayima Stella 6,071,652 6,581,123 - 509,471 Nakayima Stella, Enrolled Midwife whose monthly net salary was UGX 509,471. In the month of May 2021 the ifms system paid her UGX 1,018,942/= as a result of failure of ifms network. Double Payment salary for the Month May 2021 955949 745084 Nabulime Proscovia 9,044,595 9,800,378 - 755,783 A recovery code is going to be inserted to recover UGX 509,471 starting December 2021 Double Payment salary for the Month May 2021 Total -1,265,254 Appendix 2: Under payment of salary S/n Employee No. Supplier No. Employee Name IPPS Net Pay IFMS Net pay Under Payment Audit remarks 1 973940 744674 Kyomuhangi Rebecca 37,335,978 26,658,579 10,677,399 Abandonment of duty 2 956254 744867 Mpanga Paul 4,063,036 337,253 3,725,783 Abandonment of duty 3 1042055 839264 Nakimera Margaret 3,884,244 322,937 3,561,307 Abandonment of duty 4 956242 745074 Nambubi Joyce 4,063,036 678,506 3,384,530 Abandonment of duty 5 455389 744990 Banduru Rose 6,569,497 3,931,767 2,637,730 Abandonment of duty 6 455542 745031 Babirye Erinah 7,728,144 5,127,596 2,600,548 Abandonment of duty 7 455838 744905 Mubiru James 7,271,318 4,833,922 2,437,396 Abandonment of duty 8 1011175 745108 Ssekyondwa Robert 5,223,721 3,096,351 2,127,370 Abandonment of duty 9 845439 744641 Nassali Harriet 5,880,285 3,908,965 1,971,320 Abandonment of duty 10 973939 744668 Luyinda Kenneth 9,677,888 8,053,240 1,624,648 Abandonment of duty 11 484499 745112 Egesa Denis 14,176,304 12,991,268 1,185,036 Abandonment of duty 12 1042088 839368 Mugisha Bob 8,685,130 7,938,524 746,606 Abandonment of duty 13 455654 744908 Mayende Joel 5,705,997 5,122,155 583,842 Abandonment of duty 14 845450 744996 Kakayi Zamu 5,575,201 5,119,089 456,112 Abandonment of duty 125,839,779 88,120,152 37,719,627 17 Appendix 3: Payment of salary using wrong scales. S N. Emplo yee No. Suppli er No. Name Base pay as per salary structure 2020/2021 Base pay as per payroll register (Pickthe latest month) Variance Remarks 1 455425 744909 Kimbugwe Bosco John 980,211 777,512 202,699 rateEmployee paid below salary structure 2 455760 745016 Bukirwa Judith 1,210,162 1,078,162 132,000 rateEmployee paid below salary structure 3 455988 744903 Muddu Museses Ignatius 980,512 866,341 114,171 rateEmployee paid below salary structure 4 455401 744896 Musenja Godfrey 980,211 866,341 113,870 rateEmployee paid below salary structure 5 456039 744940 Nakirunda Winfred 980,211 866,341 113,870 rateEmployee paid below salary structure 6 991657 745008 Katumwa Benon 933,966 832,516 101,450 rateEmployee paid below salary structure 7 456071 744973 Kenshubi Margaret 866,341 802,491 63,850 rateEmployee paid below salary structure 8 456051 744913 Namakula Juliet 834,700 777,512 57,188 rateEmployee paid below salary structure 9 455546 744988 Namabira Jolly Pertua 834,700 777,512 57,188 rateEmployee paid below salary structure 10 972479 745007 Nakeya Beatrice 1,078,162 1,039,826 38,336 rateEmployee paid below salary structure 11 972477 745114 SaadJawaaduKabagambe 1,072,808 1,039,826 32,982 rateEmployee paid below salary structure 12 100121 1 745010 DerrickKyambadde 1,242,869 1,210,213 32,656 rateEmployee paid below salary structure 13 545778 745097 JonathanMutamanya 834,700 802,491 32,209 rateEmployee paid below salary structure 14 455594 745009 CathyKabasoka 2,324,608 2,295,943 28,665 rateEmployee paid below salary structure 15 303078 745000 JulietNalunga 2,350,000 2,324,608 25,392 rateEmployee paid below salary structure 18 16 104865 6 854796 Muhanguzi Muramuzi 1,013,759 988,562 25,197 Employee paid below salary structure rate 17 455771 744644 Namanya Wilber 802,491 777,512 24,979 Employee paid below salary structure rate 18 456015 744980 Nannyondo Milly 802,491 777,512 24,979 Employee paid below salary structure rate 19 103575 1 810525 DennisLyagoba 820,036 795,804 24,232 Employee paid below salary structure rate 20 104865 0 854795 UmaruMwanje 820,036 795,804 24,232 Employee paid below salary structure rate 21 972487 745018 Ssembwayo Mathias 856,233 845,252 10,981 Employee paid below salary structure rate 22 103605 0 810526 Mugabe Shaufa 756,176 755,469 707 Employee paid below salary structure rate Total 23,375,383 22,093,550 1,281,833 19 Appendix 4 (a): Lack of letters of undertaking SN Employee Number Supplier Number Employee Name Monthly Loan Annual Loan Total 1 868160 744748 Sendi John 418,222 5,018,664 Sendi John applied for a loan from Platinum using USSD 2 973939 744668 Luyinda Kenneth 377,676 4,532,112 Luyinda Kenneth applied for a loan fro Platinum Credit using USSD on his phone 3 973932 599200 Galiwango Ronald 373,100 4,477,200 Galiwango Ronald Bukko applied for a loan from Letshego using Letters of Undertaking 4 963065 745059 Kayondo Derick 360,560 4,326,720 Kayondo Derick applied for a loan from Platinum Credit using USSD 5 868156 744688 Ssaku Vincent 359,639 4,315,668 Ssaku Vincent applied for a loan from Centenary Bank and Letters of Undertaking were signed by Ag DCAO and CFO 6 963069 744799 Bukenya Emmanuel 321,511 3,858,132 Bukenya Emmanuel applied for a loan from Platinum Credit using USSD 7 868161 744789 Muwonge Constantine 320,893 3,850,716 Muwonge Constantine applied for a loan from Platinum credit using USSD 8 869859 744956 Tuwereza Justine 296,487 3,557,844 Tuwereza Justine applied for a loan from Platinum Credit using USSD 9 1026700 776059 Mulondo Christopher 274,333 3,291,996 Mulondo Christopher applied for a loan from Platinum credit using USSD 10 455796 744653 Nakayiza Beatrice 70,000 840,000 Nakayiza Beatrice signed a life policy insurance from Sanlam 11 748979 744827 Mukwanya Honulato 70,000 840,000 Mukwanya Honulato signed a life policy insurance from Sanlam 12 1041815 839269 Namanda Proscovia 70,000 840,000 Namanda Proscovia signed a life policy insurance from Sanlam 13 956001 744841 Kizza Juliet 65,000 780,000 Kizza Juliet signed a life policy insurance from Sanlam 14 963044 744624 Nansamba Viola 65,000 780,000 Nansamba Viola signed a life policy insurance from Sanlam 15 455854 744994 Luyima Francis 56,668 680,016 Luyima Francis signed a life policy insurance from Sanlam 16 455441 745106 Nakabonge Rose 38,698 464,376 Nakabonge Rose signed a life policy insurance from Sanlam 17 455686 745035 Birungi Florence 30,300 363,600 Birungi Florence signed a life policy insurance from Sanlam 18 861897 744669 Mugeyi Aisha 29,982 359,784 Mugeyi Aisha signed a life policy insurance from Sanlam 19 455638 744976 Ntumwa Mathias 28,600 343,200 Ntumwa Mathias signed a life policy insurance from Sanlam 20 545778 745097 Mutamanya Jonathan 27,600 331,200 Mutamanya Jonathan signed a life policy insurance from Sanlam 21 748923 744924 Ssemakula Jeremiah 476,120 5,713,440 Ssemakula Jeremiah applied for a loan from Platinum credit using letters of undertaking 22 734828 321304 Kiggundu Javira 190,000 2,280,000 Kiggundu Javira applied for a loan from Stanbic Bank and letters of undertaking were signed 23 748960 744923 Nakasi Harriet 181,007 2,172,084 Nakasi Harriet applied for a loan from Bayport LTD way back in 2014 using letters of undertaking and now it is ongoing. 24 748906 745066 Mukulu Godson 179,172 2,150,064 Mukulu Godson applied for a loan from Platinum using USSD 25 861915 744922 Babirye Deborah 179,096 2,149,152 Babirye Deborah applied for a Topup loan from Bayport using USSD 26 462793 744987 Nalubega Pauline 70,000 840,000 Nalubega Pauline signed a life policy insurance from Sanlam 27 748919 744720 Katongole Julius 50,610 607,320 Katongole Julius signed a life policy insurance from Sanlam 28 455945 745013 Sendagire James 151,894 1,822,728 Ssendagire James applied for a loan from Bayport services in 2014 uptonow the code still exists 29 455830 744939 Nakiruuta Susan 127,287 1,527,444 Nakiruuta Susan applied for a loan from Bayport services in 2014 uptonow the code still exists 30 748941 744741 Katende James 127,001 1,524,012 Katende James applied for a loan from Bayport services in 2014 uptonow the code still exists 31 800790 744704 Nabasirye Barbra 58,300 699,600 Nabasirye Barbra signed a life policy insurance from Sanlam 32 455802 744914 Kalikoka Kennedy 48,980 587,760 Kalikoka Kennedy signed a life policy insurance from Sanlam 33 748999 744722 Lweera Lawrence 40,352 484,224 Lweera Lawrence signed a life policy insurance from Sanlam 34 845481 744986 Mugumya Nixon 39,200 470,400 Mugumya Nixon signed a life policy insurance from Sanlam 35 455674 745103 Nalusiba Nakuburwa 33,300 399,600 Nalusiba Nakubulwa signed a life policy insurance from Sanlam 36 849897 744786 Sabano Christine 30,555 366,660 Sabano Christine signed a life policy insurance from Sanlam 37 749001 745085 Nalaaki Robinah 29,100 349,200 Nalaaki Robina signed a life policy insurance from Sanlam 38 748915 744701 Ngabo Willington 26,985 323,820 Nagabo Willington signed a life policy insurance from Sanlam 39 455670 745024 Ssebata Deogratious 23,310 279,720 Ssebatta Deogratious signed a life policy insurance from Sanlam 40 748984 744844 Byagonza Kenneth 23,310 279,720 Byagonza Kenneth signed a life policy insurance from Sanlam 41 861927 744859 Naluwooza Miriam 23,310 279,720 Naluwooza Mariam signed a life policy insurance from Sanlam 42 797224 744636 Muwambya Patrick 22,200 266,400 Muwambya Patrick signed a life policy insurance from Sanlam 43 748936 745053 Namulwa Allen 21,735 260,820 Namulwa Allen signed a life policy insurance from Sanlam 44 455878 744900 Kyobe Gyaviira 20,000 240,000 Kyobe Gyaviira is subscribing to UNATU SACCO, signed an agreement with them 45 462762 744985 Kukundakwe Nassar 20,000 240,000 Kukundakwe Nassar signed a life policy insurance from Sanlam 46 849900 745072 Obore Job 266,000 3,192,000 Babirye Deborah applied for a Topup loan from Letshego using USSD 47 455566 745036 Dabwa Florence 113,333 1,359,996 Dabwa Florence applied for a Topup loan from Platinum credit using USSD 48 849910 745058 Wasswa David 327,996 3,935,952 Wasswa David applied for a loan from Opportunity Bank using letters of undertaking 49 861926 745089 Nakayima Stella 247,635 2,971,620 Nakayima Stella applied for a loan from Opportunity Bank using letters of undertaking 50 455668 744982 Ssekamatte Moses 213,854 2,566,248 Ssekamatte Moses applied for a new loan from Platinum credit using USSD 51 455574 745118 Walugembe Emmanuel 213,467 2,561,604 Walugembe Emmanuel applied for a loan from Platinum credit using letters of undertaking 52 455823 744977 Njawuzi Mathias 208,467 2,501,604 Njawuzi Mathias applied for a loan from JOPEG financial services using letters of undertaking 53 703163 744915 Nayiga Madinah 207,143 2,485,716 Nayiga Madinah applied for a loan from Platinum credit using letters of undertaking 54 748964 789271 Wasswa Patrick 205,787 2,469,444 Wasswa Patrick applied for a loan from Bayport using letters of undertaking way back in 2014 and a Topup loan from Letshego 55 455858 744911 Bwengye Joseph 194,917 2,339,004 Bwengye Joseph applied for a loan from Fincredit using letters of undertaking 56 455690 744646 Tusasirwe Alex 186,228 2,234,736 Tusasirwe Alex applied for a loan from Letshego using letters of undertaking 57 865205 744708 Kisakye Esther 164,207 1,970,484 Kisakye Esther applied for a loan from Platinum Credit using letters of undertaking Total 8,396,127 100,753,524 Appendix 4 (b): Loan deductions with variances in the IPPS, “active deduction” or the “my approval” reports S N Emplo yee Numbe r Supplie r Numbe r Employee Name Monthly Loan Active deductio n (PM) My appprova l (PM) Annual Loan Total Manage ment response 1 748923 744924 Ssemakula Jeremiah 476,120 - 476,120 5,713,440 2 734828 321304 Kiggundu Javira 190,000 - 190,000 2,280,000 3 748960 744923 Nakasi Harriet 181,007 - 237,787 2,172,084 4 748906 745066 Mukulu Godson 179,172 - 179,172 2,150,064 5 861915 744922 Babirye Deborah 179,096 - 179,096 2,149,152 6 462793 744987 PaulineNalubega 70,000 - 70,000 840,000 7 748919 744720 Katongole Julius 50,610 - - 607,320 8 455945 745013 Sendagire James 151,894 151,894 - 1,822,728 9 455830 744939 Nakiruuta Susan 127,287 127,287 - 1,527,444 10 748941 744741 Katende James 127,001 127,001 - 1,524,012 11 800790 744704 Nabasirye Barbra 58,300 58,300 - 699,600 12 455802 744914 Kalikoka Kennedy 48,980 28,980 - 587,760 13 748999 744722 Lweera Lawrence 40,352 40,352 - 484,224 14 845481 744986 Mugumya Nixon 39,200 39,200 - 470,400 15 455674 745103 Nalusiba Nakuburwa 33,300 33,300 - 399,600 16 849897 744786 Sabano Christine 30,555 30,555 - 366,660 17 749001 745085 Nalaaki Robinah 29,100 29,100 - 349,200 18 748915 744701 Ngabo Willington 26,985 26,985 - 323,820 19 455670 745024 Ssebata Deogratiou s 23,310 23,310 - 279,720 20 748984 744844 Byagonza Kenneth 23,310 23,310 - 279,720 21 861927 744859 Naluwooza Miriam 23,310 23,310 - 279,720 22 797224 744636 PatrickMuwambya 22,200 22,200 - 266,400 23 748936 745053 Namulwa Allen 21,735 21,735 - 260,820 24 455878 744900 Kyobe Gyaviira 20,000 20,000 - 240,000 25 462762 744985 e NassarKukundakw 20,000 20,000 - 240,000 26 849900 745072 Obore Job 266,000 363,100 363,100 3,192,000 27 455566 745036 Dabwa Florence 113,333 153,056 153,056 1,359,996 28 849910 745058 Wasswa David 327,996 296,296 296,296 3,935,952 29 861926 745089 Nakayima Stella 247,635 171,111 171,111 2,971,620 30 455668 744982 sekamatte Moses 213,854 19,058 19,058 2,566,248 31 455574 745118 Walugembe Emmanuel 213,467 78,667 134,800 2,561,604 32 455823 744977 Njawuzi Mathias 208,467 188,467 188,467 2,501,604 33 703163 744915 Nayiga Madinah 207,143 69,576 69,576 2,485,716 34 748964 789271 Wasswa Patrick 205,787 5,225 169,263 2,469,444 35 455858 744911 Bwengye Joseph 194,917 153,606 41,311 2,339,004 36 455690 744646 Tusasirwe Alex 186,228 156,528 63,400 2,234,736 37 865205 744708 Kisakye Esther 164,207 114,407 114,407 1,970,484 Total 4,741,858 2,615,916 3,116,020 56,902,296 Appendix 5: Delayed/non-remittance of deductions to UCLA/UBA S/N. Month (for which salary is paid) Salary payment date Loan (482) payment date Variance (in days) Audit Remarks 1 Jul-20 30/07/2020 12/08/2020 13 Delayed 2 Aug-20 26/08/2020 26/08/2020 0 Concurrent 3 Sep-20 24/09/2020 27/10/2020 33 Delayed 4 Oct-20 27/10/2020 02/11/2020 6 Delayed 5 Nov-20 26/11/2020 26/11/2020 0 Concurrent 6 Dec-20 17/12/2020 17/12/2020 0 Concurrent 7 Jan-21 27/01/2021 12/03/2021 44 Delayed 8 Feb-21 12/03/2021 12/03/2021 0 Concurrent 9 Mar-21 22/03/2021 09/04/2021 18 Delayed 10 Apr-21 29/04/2021 24/06/2021 56 Delayed 11 May-21 04/06/2021 04/06/2021 0 Concurrent 12 Jun-21 22/06/2021 22/06/2021 0 Concurrent Average 14 Appendix 6:Delayed remittance of PAYE deductions to URA SN (for which salary is paid)Month Salary payment date Required payment date PAYE payment date Variance (In days) Remarks 1 JUL-2020 30/07/2020 15/08/2020 21/08/2020 6 Delayed 2 AUG-2020 26/08/2020 15/09/2020 26/08/2020 0 In time 3 SEP-2020 24/09/2020 15/10/2020 27/10/2020 12 Delayed 4 OCT-2020 27/10/2020 15/11/2020 04/11/2020 0 In time 5 NOV-2020 26/11/2020 15/12/2020 26/11/2020 0 In time 6 DEC-2020 17/12/2020 15/01/2021 17/12/2020 0 In time 7 JAN-2021 27/01/2021 15/02/2021 12/03/2021 25 Delayed 8 FEB-2021 12/03/2021 15/03/2021 12/03/2021 0 In time 9 MAR-2021 22/03/2021 15/04/2021 15/04/2021 0 In time 10 APR-2021 29/04/2021 15/05/2021 29/06/2021 45 Delayed 11 MAY-2021 04/06/2021 15/06/2021 15/06/2021 0 In time 12 JUN-2021 22/06/2021 15/07/2021 29/06/2021 0 In time Average 7 Appendix 7:Non-deduction of PAYE from political leaders SN. Pay Code Employ ee No. Name Base salary DPOLGRAT Total cost items IPPS PAYE Computed PAYE PAYE variance 1 LeadersDistrict Political 849882 WillyLugoloobi 4760000 7,854,000 12,614,000 1,232,000 3,947,600 - 2,715,600 2 LeadersDistrict Political 849883 TadeoMwesigye 1240000 2,046,000 3,286,000 176,000 887,800 - 711,800 3 LeadersDistrict Political 849888 PaulKaabinga 824000 1,359,600 2,183,600 51,200 557,080 - 505,880 4 LeadersDistrict Political 849889 Kavuma Stephen 824000 1,359,600 2,183,600 51,200 557,080 - 505,880 5 LeadersDistrict Political 861904 Sande Gerald 810710 1,359,600 2,170,310 48,342 553,093 - 504,751 6 LeadersDistrict Political 861907 Semugema Elon 1240000 2,046,000 3,286,000 176,000 887,800 - 711,800 7 LeadersDistrict Political 861908 Nayiga Fausta 2380000 3,927,000 6,307,000 518,000 1,794,100 - 1,276,100 8 LeadersDistrict Political 993105 RestyNakawungu 1448000 2,389,200 3,837,200 238,400 1,053,160 - 814,760 9 LeadersDistrict Political 993137 WilberKakooza 1240000 2,046,000 3,286,000 176,000 887,800 - 711,800 10 LeadersDistrict Political 993163 PeterSsenyanja 824000 1,359,600 2,183,600 51,200 557,080 - 505,880 11 LeadersDistrict Political 993204 Munaaba Robert 824000 1,359,600 2,183,600 51,200 557,080 - 505,880 12 Chairpersons District Service Commission (DSC) 106669 9 Kavuma Ruth 1716346 6,178,846 7,895,192 416,904 2,270,558 - 1,853,654 TOTAL 51,416,102 3,186,446 14,510,231 - 11,323,785 28 Appendix 8: Delayed access of newly recruited or transferred staff to the payroll S.N o Emplo yee No Employe e Name Assumptio n/ Appointm ent date Month Expected to Access Salary Payroll (4 weeks from the date of assumptio n) Month Salary payroll was accessed Monthly Net Salary (UGX) Estimated variance in days (Assumpti on/ Appointm ent Access)Vs Audit remarks on Access Month first paid on IFMS Amount Paid for the first time (UGX) (Whether net monthly pay or arrears) Estima ted Varian ce in days (Acces s Vs Payme nt) Audit Rema rks on Paym ent Manageme nt Response 1 107714 2 Niwagira Penlope 16/12/2020 31/01/2021 30/06/2021 2,821,277 150 Delayed access 30/06/2 021 2,821,277 0 In time Mismatch in names 2 107715 2 Nabuufu Juliet 16/12/2020 31/01/2021 30/04/2021 757,106 89 Delayed access 30/04/2 021 757,106 0 In time Delay to get TIN 3 700258 Atiku Ratib Abas 10/08/2020 30/09/2020 30/11/2020 1,653,670 61 Delayed access 30/11/2 020 1,653,670 0 In time Delay to present transfer letter 4 108110 4 Kisitu Emmanuel 17/02/2021 31/03/2021 30/04/2021 517,803 30 Delayed access 30/04/2 021 517,803 0 In time Delay to report 5 108009 0 Nakachwa Ritah 15/2/2021 31/03/2021 30/04/2021 672,436 30 Delayed access 30/04/2 021 672,436 0 In time There was no position on system 6 108006 7 Naluwooza Jackline 15/2/2021 31/03/2021 30/04/2021 428,455 30 Delayed access 30/04/2 021 428,455 0 In time There was no position on system 7 108006 6 Ainomugis ha Julius 15/2/2021 31/03/2021 30/04/2021 308,254 30 Delayed access 30/04/2 021 308,254 0 In time There was no position on system 8 108006 4 Ainamaani Norman Abaasa 15/2/2021 31/03/2021 30/04/2021 209,859 30 Delayed access 30/04/2 021 209,859 0 In time There was no position on system 9 108006 5 Nambi Doreen 15/2/2021 31/03/2021 30/04/2021 357,256 30 Delayed access 30/04/2 021 357,256 0 In time There was no position on system 10 108006 3 Cenika Phillip 15/2/2021 31/03/2021 30/04/2021 187,660 30 Delayed access 30/04/2 021 187,660 0 In time There was no position on system 11 107710 4 Ogwete Ambrose 16/12/2020 31/01/2021 28/02/2021 442,782 28 Delayed access 28/02/2 021 442,782 0 In time Delay to get TIN 29 12 107710 7 Bukoma Ruhumani 16/12/2020 31/01/2021 28/02/2021 442,782 28 Delayed access 28/02/2 021 442,782 0 In time Delay to get TIN 13 107714 3 Hamala Christine 16/12/2020 31/01/2021 28/02/2021 442,782 28 Delayed access 28/02/2 021 442,782 0 In time Delay to get TIN 14 994389 Byamaiso Geofrey 16/12/2020 31/01/2021 28/02/2021 1,291,133 28 Delayed access 28/02/2 021 1,291,133 0 In time Delay to get TIN 15 107717 2 Ohuru Godfrey 16/12/2020 31/01/2021 28/02/2021 794,133 28 Delayed access 30/04/2 021 2,186,397 61 Delaye d Delay to get TIN 16 107873 7 Namutanyi Allen 16/12/2020 31/01/2021 28/02/2021 578,254 28 Delayed access 28/02/2 021 578,254 0 In time Delay to get TIN 17 107737 7 Ichana Gabriel 16/12/2020 31/01/2021 31/01/2021 308,254 0 In time 31/01/2 021 308,254 0 In time 18 107714 0 Mundu Noah Tagoola 16/12/2020 31/01/2021 31/01/2021 442,782 0 In time 31/01/2 021 442,782 0 In time 19 107714 1 Abenaitwe Moses 16/12/2020 31/01/2021 31/01/2021 442,782 0 In time 31/01/2 021 442,782 0 In time 20 107715 8 Nassuuna Juliet 16/12/2020 31/01/2021 31/01/2021 628,343 0 In time 31/01/2 021 628,343 0 In time 21 107716 1 Tendo Rhodah Deborah 16/12/2020 31/01/2021 31/01/2021 628,343 0 In time 31/01/2 021 628,343 0 In time 22 107716 4 Namusoke Zaliika 16/12/2020 31/01/2021 31/01/2021 628,343 0 In time 31/01/2 021 628,343 0 In time 23 107716 7 Kawuma Gerald 16/12/2020 31/01/2021 31/01/2021 582,144 0 In time 31/01/2 021 582,144 0 In time 24 107716 9 Kibira Jamiru 16/12/2020 31/01/2021 31/01/2021 1,039,133 0 In time 31/01/2 021 1,039,133 0 In time 25 107717 0 Acwera Jimmy 16/12/2020 31/01/2021 31/01/2021 1,039,133 0 In time 31/01/2 021 1,039,133 0 In time 26 107717 1 Gabula Andrew 16/12/2020 31/01/2021 31/01/2021 628,343 0 In time 31/01/2 021 628,343 0 In time 27 107872 8 Nakayemb a Annet 18/01/2021 28/02/2021 28/02/2021 389,632 0 In time 28/02/2 021 389,632 0 In time 28 107708 9 Majwala William 16/12/2020 31/01/2021 31/01/2021 1,190,000 0 In time 31/01/2 021 1,190,000 0 In time 29 107709 8 Kanwagi Aloysious 16/12/2020 31/01/2021 31/01/2021 518,939 0 In time 31/01/2 021 518,939 0 In time 30 107722 2 Ndagire Gorreth 16/12/2020 31/01/2021 31/01/2021 410,956 0 In time 31/01/2 021 410,956 0 In time 31 107709 Namusisi 16/12/2020 31/01/2021 31/01/2021 0 In time 31/01/2 0 In time 30 6 haron 209,859 021 209,859 32 108902 4 Ssemakula Rajab 19/5/2021 30/06/2021 30/06/2021 1,764,000 0 In time 30/06/2 021 1,764,000 0 In time 33 108902 6 Katumba Richard 19/5/2021 30/06/2021 30/06/2021 604,800 0 In time 30/06/2 021 604,800 0 In time 34 108902 7 Nakanwag i Irene 19/5/2021 30/06/2021 30/06/2021 532,000 0 In time 30/06/2 021 532,000 0 In time 35 108920 0 Giribe Harman 19/5/2021 30/06/2021 30/06/2021 532,000 0 In time 30/06/2 021 532,000 0 In time 36 108903 0 Kayima John Muzeyi 25/5/2021 30/06/2021 30/06/2021 386,400 0 In time 30/06/2 021 386,400 0 In time 37 108927 2 Kalemba Charles 25/5/2021 30/06/2021 30/06/2021 386,400 0 In time 30/06/2 021 386,400 0 In time 38 108008 6 Katungye Benard 15/2/2021 31/03/2021 N/A N/A N/A N/A N/A N/A There was no position on system 39 108918 4 Ssemayen go Godfrey 05/07/2020 31/08/2020 N/A N/A N/A N/A N/A N/A Delay to report Total Number of days 678 61 Average No daysof 18 2 Appendix 9: Delayed access to the pension payroll S n Employ ee Numbe r Employee Name Category of Exit Retireme nt date/dea th date Month expecte d on pension payroll Month Pension payroll was accesse d (as provide d by HR) Monthly Pension on Access (UGX) Estimat ed variance in days (Retire ment Vs Access) Audit remar ks on Access Month first paid on IFMS Amount Paid for the first time (UGX) inEstimat ed Varianc e days (Access Vs Paymen t) Audit Remarks on Payment 1 455496 Ssenyonjo Suleman Early retirement 09/09/202 0 30/09/20 20 31/10/20 20 146,966 31 Delayed Access 30/01/20 21 146,966 91 Delayed Payment 31 2 748890 Nalwoga Ruth Kiraza Mandatory 60 yrs of retirement 11/10/202 0 30/11/20 20 31/12/20 20 408,000 31 Delayed Access 30/01/20 21 408,000 30 Paid in time 3 849852 Kamanzi Gaston Rwatibama nya Mandatory 60 yrs of retirement 12/10/202 0 30/10/20 20 31/12/20 20 1,322,933 62 Delayed Access 31/12/20 20 1,322,933 0 Paid in time 4 870150 Musoke Francis Xavier Mandatory 60 yrs of retirement 21/06/202 1 31/07/20 21 N/A N/A NA Not accesse d 30/06/20 21 3,083,892 N/A Paid without access to payroll Total 124 152 Average 25 38 S n Employee Number Supplier Number Employee Name IPPS Net Pay IFMS Net pay Variance Audit remarks 1 861898 744617 Batuusa Florence 34,869,596 45,108,496 - 10,238,900 Payment off IPPS 2 849852 744662 KAMANZI G R. T 9,016,000 10,430,000 - 1,414,000 Payment off IPPS 3 748964 789271 Wasswa Patrick 3,708,656 4,120,230 - 411,574 Payment off IPPS 4 1088934 946250 Sekanyo Mahadi 134,124 504,843 - 370,719 Payment off IPPS 5 993137 789269 Kakooza Wilber 6,756,000 7,042,200 - 286,200 Payment off IPPS 6 456063 744958 Okeng Robert 10,991,464 11,126,564 - 135,100 Payment off IPPS 7 462758 744628 Nandugwa Florence 6,969,758 7,070,278 - 100,520 Payment off IPPS 8 870150 744699 MUSOKE XAVIER FRANCIS 870150 3,083,892 0 3,083,892 Payment off IPPS Appendix 10: Payments of salaries off IPPS 32 9 1080281 935642 ESTATE OF THE LATE TURYAJUNWA ERIC 1080281 371,146 0 371,146 Payment off IPPS Total 109,709,159 123,931,892 -14,222,733 Appendix 11: Validation of employees, pensioners/beneficiaries on the IPPS against the NIRA interface S.No Employee No Employee Name Category Audit remarks on verification Management Response 1 879101 KIKULWEBERNARDKAWEESA Leaver - pensioner No verification card and Form provided Not Verified 2 939058 LUKAMBI LAWRENCEKIZZA5043 Leaver - pensioner No verification card and Form provided names EstateNot verified due to mismatch of Vs Beneficiary 3 870150 870150MUSOKE XAVIER FRANCIS Leaver - pensioner No verification card and Form provided Not verified. His NIN attached employee.is to another 33 Appendix 12: Use of wrong Budget and expenditure codes (Misclassification) Invoice Number Invoice Date Supplier Description Amount Budget and expendi ture Code charged Discription of the budget and expenditure item Correct Budget and expendit ure Code Right Discription of the item for the budget and expenditure WKS-37- 20 12/08/2020 DESOFT CONSULTS AND Rehabilitaton of ssemaundo and kitobo solar water sys 47,457,626 312104 Other Structures 228001 Maintenance - Civil PL-2-14- 2021 14/06/2021 CONIT ENTERPRISES LTD renovation of houses at kalangala HCIV 24,988,392 312104 Other Structures 228001 Maintenance - Civil PL-3-19- 2021 18/06/2021 CONIT ENTERPRISES LTD renovation of staff houses at HCIV 10,941,072 312104 Other Structures 228001 Maintenance - Civil sfg-04- 01-2021 13/01/2021 Mmacks Investme nts Ltd construction of seed school at Bufumira 252,996,913 312102 Residential Buildings 312101 Non-residential buildings SFG-02- 6-2021(L) 16/06/2021 LUMU EDWARD 849861 FACILITATION FOR EVALUATION PROCESS FOR THE CONSTRUCTION OF A SEED SCHOOL IN MULABANA(DRIVER) 2,200,000 312102 Residential Buildings 281504 Supervision & Appraisal of capital worksMonitoring, SFG-1- 10-20 07/10/2020 ANDIKAS CONTRACTORS LTD CONSTRUCTION WORKS( KAL515/WRKS/20-21/00004 ) FOR THE RENOVATION AT JAANA PRIMARY SCHOOL 14,771,289 312101 Non-Residential Buildings 228001 Maintenance - Civil H-01-14 28/10/2020 Magumba Eriya Town running fuel for 2 qrt 2,125,000 227004 Fuel, Lubricants and Oils 227001 Travel inland ADM-12 16/09/2020 ZAWEDDE LOVINCER 748887 To carry out data capture for newly recruited staff 1,106,000 227004 Fuel, Lubricants and Oils 227001 Travel inland AUD-02 17/12/2020 WERE CHARLES 849853 AUDIT INSECTION 1,000,000 227004 Fuel, Lubricants and Oils 227001 Travel inland Total 357,586,292 34 Appendix 13: Inspection of Construction works at Kachanga Seed Secondary School Construction Picture Audit Remarks works A view of Kachanga seed school Two science laboratories ICT laboratory Mult-purpose hall - Works have not yet been completed - Furniture not yet supplied - Out of 7 classroom blocks only 3 have windows with fitted glass. - Works have not yet been completed on the two science laboratories - Some laboratory equipment were supplied. - ICT laboratory was completed. - No power supply to run computers. - Computers were not yet fully supplied - Works have not yet been completed on Mult-purpose hall. - Glasses not yet fitted