{"paragraphs": [{"content": "THE REPUBLIC OF UGANDA \nREPORT OF THE AUDITOR GENERAL TO PARLIAMENT FOR THE FINANCIAL YEAR ENDED 30TH JUNE 2019 \nOFFICE OF THE AUDITOR GENERAL UGANDA \nDECEMBER, 2019 \nii \niii \nv \nvi \nvii \nLIST OF TABLES \nviii \nABBREVIATIONS AND ACRONYMS", "metadata": {"headings": [{"headings_0": {"content": "THE REPUBLIC OF UGANDA", "page": 1, "level": 3}}, [{"headings_0": {"content": "REPORT OF THE AUDITOR GENERAL TO PARLIAMENT FOR THE FINANCIAL YEAR ENDED 30TH JUNE 2019", "page": 1, "level": 3}}], [{"headings_0": {"content": "OFFICE OF THE AUDITOR GENERAL UGANDA", "page": 1, "level": 3}}], [{"headings_0": {"content": "DECEMBER, 2019", "page": 1, "level": 3}}], [{"headings_0": {"content": "ii", "page": 2, "level": 2}}], [{"headings_0": {"content": "iii", "page": 3, "level": 2}}], [{"headings_0": {"content": "iii", "page": 3, "level": 2}}], [{"headings_0": {"content": "vi", "page": 6, "level": 2}}], [{"headings_0": {"content": "vii", "page": 7, "level": 2}}], [{"headings_0": {"content": "LIST OF TABLES", "page": 8, "level": 3}}], [{"headings_0": {"content": "viii", "page": 8, "level": 2}}], [{"headings_0": {"content": "ABBREVIATIONS AND ACRONYMS", "page": 9, "level": 3}}]], "page": 1, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "heading"}}, {"content": [["**AG**", "Auditor General"], ["**AO**", "Accounting Officer"], ["**Bn**", "Billion"], ["**Tn**", "Trillion"], ["**BoU**", "Bank of Uganda"], ["**CAs**", "Contracting Authorities"], ["**DLB**", "District Land Board"], ["**FY**", "Financial Year"], ["**GoU**", "Government of Uganda"], ["**IESBA**", "International Ethics Standards Board for Accountants"], ["**IMF**", "International Monetary Fund"], ["**KIS**", "Kalangala Infrastructure Services"], ["**LGs**", "Local Governments"], ["**MDAs**", "Ministries, Departments and Agencies"], ["**MDALGs**", "Ministries, Departments, Agencies & Local Governments"], ["**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"], ["**NEMA**", "National Environment Management Authority"], ["**NGO**", "Non-Governmental Organisation"], ["**NIN**", "National Identification Number"], ["**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"], ["**PSAs**", "Production Sharing Agreements"], ["**PS/ST**", "Permanent Secretary/Secretary to the Treasury"], ["**PSST**", "Permanent Secretary and Secretary to Treasury"], ["**SORA**", "Shared Over All Risk Assessment"], ["**TI**", "Treasury Instructions, 2017"], ["**TIN**", "Tax Identification Number"], ["**TWGs**", "Technical Working Groups"], ["**UCF**", "Uganda Consolidated Fund"]], "metadata": {"headings": [{"headings_0": {"content": "ABBREVIATIONS AND ACRONYMS", "page": 9, "level": 3}}], "page": 9, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["ACRONYM", "DESCRIPTION"], "type": "table"}}, {"content": "ix", "metadata": {"headings": [{"headings_0": {"content": "ix", "page": 9, "level": 2}}], "page": 9, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "heading"}}, {"content": [["**UGX**", "Uganda Shillings"], ["**USD**", "United States of America Dollars"], ["**USMID**", "Uganda Support for Municipal Infrastructure Development"], ["**WMD**", "Wetlands Management Department"], ["**YIGs**", "Youth Interest Groups"], ["**YLP**", "Youth Livelihood Programme"]], "metadata": {"headings": [{"headings_0": {"content": "ix", "page": 9, "level": 2}}], "page": 10, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["ACRONYM", "DESCRIPTION"], "type": "table"}}, {"content": "x \nGLOSSARY OF TERMS", "metadata": {"headings": [{"headings_0": {"content": "ix", "page": 9, "level": 2}}, [{"headings_0": {"content": "GLOSSARY OF TERMS", "page": 11, "level": 3}}]], "page": 10, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["**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."], ["**Garnish**", "Serve notice on (a third party) for the purpose of legally seizing money belonging to a debtor or defendant."], ["**Impact Evaluation/ Analysis**", "This is an assessment of a project, program, or policy which looks for changes in outcome that are directly attributable to that program/ project/ policy."], ["**Nugatory Expenditure**", "Expenditure that does not achieve any result"], ["**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."]], "metadata": {"headings": [{"headings_0": {"content": "GLOSSARY OF TERMS", "page": 11, "level": 3}}], "page": 11, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Term", "Meaning"], "type": "table"}}, {"content": "- Government of Uganda Consolidated Financial Statements for the year ended 30th June 2019\n- Annual Consolidated Financial Statements of District Local Governments for the year ended 30th June 2019\n- Annual Consolidated Financial Statements of Municipal Councils for the year ended 30th June 2019\n- Performance highlights of the Auditor General on the Consolidated Summary Statement of Financial Performance of Public Corporations and State Enterprises. (iii)  \nSummary of Audit results from audit of specific thematic and focus areas", "metadata": {"headings": [{"headings_0": {"content": "(ii)", "page": 13, "level": 2}}], "page": 13, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "list"}}, {"content": "(iv) \nKey findings, implications and recommendations from Value for Money audits. \n(v) Key findings, implications and recommendations from the Engineering Audits. (vi) \nSectoral and cross cutting issues/findings, implications and recommendations from the \naudit of Ministries, Departments, Agencies, Commissions, Statutory Corporations and \nLocal Governments.  \n(vii)  \nSummary of Audit findings of specific entities which include opinions from the audit of \nMinistries, Departments, Agencies, Commissions, Statutory Corporations and Local \nGovernments (Annexure II). \n1 \n1.3 \nSummary of Audit Results \n1.3.1 General Performance \nContained in this report, are the results of a total of 4,274 audits, which I conducted and completed during the year against a plan of 5,431 audits. The audits include 4,207 financial audits comprising of 108 MDAs, 114 Commissions, Statutory Authorities and State Enterprises, 97 projects, 4 Production Sharing Agreements and 3,888 Local Governments and Tertiary Institutions. I have also included 11 Value for Money reports, 36 Forensic Investigations and Special Audits, 5 IT audits, 7 Specialised/Engineering audits and 4 Compliance/themes. \nThe Engineering Audit reports have been included in the individual entity reports, while the Forensic/Special reports have been issued to the respective stakeholders who requested them. Details of the general performance are provided in Table below. \nTable 1: Status of Audit performance for audit year 2019", "metadata": {"headings": [{"headings_0": {"content": "(iv)", "page": 13, "level": 2}}, [{"headings_0": {"content": "(iv)", "page": 13, "level": 2}}], [{"headings_0": {"content": "(v) Key findings, implications and recommendations from the Engineering Audits. (vi)", "page": 13, "level": 4}}], [{"headings_0": {"content": "(v) Key findings, implications and recommendations from the Engineering Audits. (vi)", "page": 13, "level": 4}}], [{"headings_0": {"content": "audit of Ministries, Departments, Agencies, Commissions, Statutory Corporations and", "page": 13, "level": 2}}], [{"headings_0": {"content": "audit of Ministries, Departments, Agencies, Commissions, Statutory Corporations and", "page": 13, "level": 2}}], [{"headings_0": {"content": "Ministries, Departments, Agencies, Commissions, Statutory Corporations and Local", "page": 13, "level": 2}}], [{"headings_0": {"content": "Ministries, Departments, Agencies, Commissions, Statutory Corporations and Local", "page": 13, "level": 2}}], [{"headings_0": {"content": "Ministries, Departments, Agencies, Commissions, Statutory Corporations and Local", "page": 13, "level": 2}}], [{"headings_0": {"content": "Ministries, Departments, Agencies, Commissions, Statutory Corporations and Local", "page": 13, "level": 2}}], [{"headings_0": {"content": "Summary of Audit Results", "page": 14, "level": 3}}], [{"headings_0": {"content": "1.3.1 General Performance", "page": 14, "level": 3}}], [{"headings_0": {"content": "1.3.1 General Performance", "page": 14, "level": 3}}], [{"headings_0": {"content": "1.3.1 General Performance", "page": 14, "level": 3}}], [{"headings_0": {"content": "Table 1: Status of Audit performance for audit year 2019", "page": 14, "level": 1}}]], "page": 13, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "heading"}}, {"content": [["**Financial Audits**", "MDAs", "114", "108", "6\\*"], [null, "Commissions, Statutory Authorities and State Enterprises", "120", "114", "6\\*"], [null, "Projects", "196", "97", "99\\*"], [null, "Districts", "127", "127", "0"], [null, "Municipal Councils", "41", "41", "0"], [null, "Town Councils 2016/2017 and 2017/2018", "459", "459", "0"], [null, "Divisions 2016/2017 and 2017/2018", "248", "248", "0"], [null, "Sub Counties 2015/2016, 2016/2017 and 2017/2018", "3,681", "2,922", "759"], [null, "Schools/Tertiary institutions", "355", "91", "264"], ["**Compliance Audit**", "Various entities (Themes)", "4", "4", "0"], [null, "PSAs", "4", "4", "0"], ["**Forensics/Special Audits**", "Various entities", "56", "36", "20"], ["**VFM Studies**", "Various entities", "10", "11", "(1)"], ["**Engineering Audits**", "Various entities", "10", "7", "3\\*\\*"], ["**IT Audits**", "Various entities", "6", "5", "1"], ["", "", "5,431", "4,274", "1,157"]], "metadata": {"headings": [{"headings_0": {"content": "Table 1: Status of Audit performance for audit year 2019", "page": 14, "level": 1}}], "page": 14, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Type of Audit", "Type of Entity", "Planned Audits for the audit year 2019", "Actual Performance as at 31st December, 2019", "Variance"], "type": "table"}}, {"content": "\\* 4 missions (Ankara, Canberra, Kuala Lumpur, Abuja), Contingency Fund, Soroti University, UHPC, UNHRO, ULI, ACF, Uganda Seeds, Enterprise Uganda, 75 MUK projects, 17 MUST projects, ARSDP works, Kaphcorwa-Swam road, QUISP, DICOSS, Opuyo- Moroto Interconnection, Mirama-Kabale Transmission, ADB V HEST.  \n\\*\\*the 7 engineering audits undertaken covered 228 projects \n2 \n1.3.2 Summary of Opinions \nOf the 487 financial audits concluded for MDAs, Commissions, Statutory Authorities and State Enterprises, Projects, Districts and Municipalities, 433 (89%) entities had unqualified opinions and 54 (11%) entities had qualified opinions. The tables and figure 1 below provide the summary of the Opinions; \nTable 2: Summary of Opinions", "metadata": {"headings": [{"headings_0": {"content": "Table 1: Status of Audit performance for audit year 2019", "page": 14, "level": 1}}, [{"headings_0": {"content": "Table 1: Status of Audit performance for audit year 2019", "page": 14, "level": 1}}], [{"headings_0": {"content": "1.3.2 Summary of Opinions", "page": 15, "level": 3}}], [{"headings_0": {"content": "1.3.2 Summary of Opinions", "page": 15, "level": 3}}], [{"headings_0": {"content": "Table 2: Summary of Opinions", "page": 15, "level": 1}}]], "page": 14, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["**Category of Audited entities**", "**Type of Opinions**", null, null, null, "**Total**"], ["", "Unqualified", "Qualified", "Adverse", "Disclaimer", ""], ["Ministries, Departments and Agencies", "90", "18", "0", "0", "108"], ["Commissions, Statutory Authorities and State Enterprises", "96", "18", "0", "0", "114"], ["Projects", "95", "2", "0", "0", "97"], ["Districts Local Governments", "115", "12", "0", "0", "127"], ["Municipal Councils", "37", "4", "0", "0", "41"], ["TOTAL", "433", "54", "0", "0", "487"]], "metadata": {"headings": [{"headings_0": {"content": "Table 2: Summary of Opinions", "page": 15, "level": 1}}], "page": 15, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["column_0", "column_1", "column_2", "column_3", "column_4", "column_5"], "type": "table"}}, {"content": "\\*\\*the opinions included in this table relate to financial audits for the financial year 2018/19 \nTable 3: Trend of Opinions for the last three years", "metadata": {"headings": [{"headings_0": {"content": "Table 2: Summary of Opinions", "page": 15, "level": 1}}, [{"headings_0": {"content": "Table 3: Trend of Opinions for the last three years", "page": 15, "level": 1}}]], "page": 15, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["Unqualified", "433", "428", "501"], ["Qualified", "54", "37", "50"], ["Adverse", "0", "1", "0"], ["Disclaimer", "0", "0", "2"], ["Total", "487", "466", "553"]], "metadata": {"headings": [{"headings_0": {"content": "Table 3: Trend of Opinions for the last three years", "page": 15, "level": 1}}], "page": 15, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Type of Opinion", "2018/19", "2017/18", "2016/17"], "type": "table"}}, {"content": "Figure 1: Showing summary of opinions for the last 3 years \nTrend of Opinions \n501  \n428 \n433 \n50 37 54 \n2 0 1 0 0 \n2016/17 2017/18 2018/19 \nUnqualified Qualified Adverse Disclaimer \nThe details of Opinions for each entity are given in the individual parts of the report relating to financial audits. \n3 \nPART 2: CONSOLIDATED FINANCIAL STATEMENTS \n2.0 REPORT OF THE AUDITOR GENERAL ON THE CONSOLIDATED FINANCIAL STATEMENTS \n2.1 \nREPORT AND OPINION OF THE AUDITOR GENERAL ON THE GOVERNMENT OF UGANDA CONSOLIDATED FINANCIAL STATEMENTS \nTHE RT. HON. SPEAKER OF PARLIAMENT \nQualified Opinion \nI have audited the accompanying consolidated financial statements of the Government of the Republic of Uganda for the year ended 30th June 2019. These financial statements comprise of the consolidated Statement of Financial Position as at 30th June 2019, the consolidated Statement of Financial Performance, and consolidated cash flow statement together with other accompanying statements, notes, and accounting policies. \nIn my opinion, except for the possible effects of the matters described in the Basis for Qualified Opinion paragraph, the consolidated financial statements of the Government of Uganda for the year ended 30th June 2019 are prepared, in all material respects, in accordance with Section 51 of the Public Finance Management Act, 2015 (as amended), and the Financial Reporting Guide, 2018. \nBasis of Qualified Opinion \n2.1.1 Mischarge of Expenditure \u2013 UGX.384,756,648,951 \nA review of the expenditures revealed that various entities charged wrong expenditure codes to the tune of UGX.384,756,648,951. This practice leads to financial misreporting. Besides, this practice undermines the budgeting process and the intentions of the appropriating authority as funds are not fully utilised for the intended purposes. \n2.1.2 Unaccounted for Advances \u2013 UGX.19,522,744,433 \nExpenditure by various entities amounting to UGX.19,522,744,433 was not accounted for by the time of the audit contrary to the Public Finance and Accounting Regulations. In the absence of proper accountability, I could not provide assurance as to whether the funds involved were utilised for the intended purposes. Such delays in accounting for funds encourage misuse.", "metadata": {"headings": [{"headings_0": {"content": "Figure 1: Showing summary of opinions for the last 3 years", "page": 15, "level": 1}}, [{"headings_0": {"content": "Trend of Opinions", "page": 15, "level": 4}}], [{"headings_0": {"content": "Trend of Opinions", "page": 15, "level": 4}}], [{"headings_0": {"content": "Trend of Opinions", "page": 15, "level": 4}}], [{"headings_0": {"content": "50 37 54", "page": 15, "level": 4}}], [{"headings_0": {"content": "50 37 54", "page": 15, "level": 4}}], [{"headings_0": {"content": "2016/17 2017/18 2018/19", "page": 15, "level": 4}}], [{"headings_0": {"content": "2016/17 2017/18 2018/19", "page": 15, "level": 4}}], [{"headings_0": {"content": "2016/17 2017/18 2018/19", "page": 15, "level": 4}}], [{"headings_0": {"content": "2016/17 2017/18 2018/19", "page": 15, "level": 4}}], [{"headings_0": {"content": "PART 2: CONSOLIDATED FINANCIAL STATEMENTS", "page": 16, "level": 3}}], [{"headings_0": {"content": "2.0 REPORT OF THE AUDITOR GENERAL ON THE CONSOLIDATED FINANCIAL STATEMENTS", "page": 16, "level": 3}}], [{"headings_0": {"content": "2.0 REPORT OF THE AUDITOR GENERAL ON THE CONSOLIDATED FINANCIAL STATEMENTS", "page": 16, "level": 3}}], [{"headings_0": {"content": "REPORT AND OPINION OF THE AUDITOR GENERAL ON THE GOVERNMENT OF UGANDA CONSOLIDATED FINANCIAL STATEMENTS", "page": 16, "level": 3}}], [{"headings_0": {"content": "REPORT AND OPINION OF THE AUDITOR GENERAL ON THE GOVERNMENT OF UGANDA CONSOLIDATED FINANCIAL STATEMENTS", "page": 16, "level": 3}}], [{"headings_0": {"content": "Qualified Opinion", "page": 16, "level": 3}}], [{"headings_0": {"content": "Qualified Opinion", "page": 16, "level": 3}}], [{"headings_0": {"content": "Qualified Opinion", "page": 16, "level": 3}}], [{"headings_0": {"content": "Basis of Qualified Opinion", "page": 16, "level": 3}}], [{"headings_0": {"content": "Basis of Qualified Opinion", "page": 16, "level": 3}}], [{"headings_0": {"content": "Basis of Qualified Opinion", "page": 16, "level": 3}}], [{"headings_0": {"content": "Basis of Qualified Opinion", "page": 16, "level": 3}}], [{"headings_0": {"content": "Basis of Qualified Opinion", "page": 16, "level": 3}}]], "page": 15, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "heading"}}, {"content": "I conducted my audit in accordance with International Standards of Supreme Audit Institutions (ISSAIs). My responsibilities under those standards are further described in the Auditor\u2019s Responsibilities for the Audit of the Financial Statement\u2019s 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 \n4 \nperforming audits in Uganda. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my qualified opinion. \nKey Audit Matter \nKey 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. \n2.1.3 Implementation of the approved budget", "metadata": {"headings": [{"headings_0": {"content": "Basis of Qualified Opinion", "page": 16, "level": 3}}, [{"headings_0": {"content": "Basis of Qualified Opinion", "page": 16, "level": 3}}], [{"headings_0": {"content": "Basis of Qualified Opinion", "page": 16, "level": 3}}], [{"headings_0": {"content": "Key Audit Matter", "page": 17, "level": 3}}], [{"headings_0": {"content": "Key Audit Matter", "page": 17, "level": 3}}], [{"headings_0": {"content": "2.1.3 Implementation of the approved budget", "page": 17, "level": 3}}]], "page": 16, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": "Section 45 of the Public Finance and Management Act, 2015 (as amended), requires the Accounting Officer to control the regularity and proper use of the money appropriated to the vote. According to Section 45 (3) of the same Act, the Accounting Officer shall enter into an annual performance contract with the Secretary to Treasury which shall bind the Accounting Officer to deliver on the activities in the work plan for the vote for the financial year. Work plans are based on outputs to be achieved for the financial year, and during implementation, effort is required to achieve the agreed objectives/targets for the entity within the available resources. \nIt has been observed over the years that planned and budgeted for activities of a number of Government entities are not implemented thereby affecting service delivery. In the overall office-wide planning, I assessed risks like the inadequate release of funds and failure to undertake budget monitoring and supervision that are likely to be the causes of failure to implement planned activities. The focus was put on the planned outputs of the Ministries, Departments, Agencies and Local Governments which greatly impact on the wellbeing of communities. \nConsequently, I developed procedures in order to address the performance of the budget of the Government; \ni. \nAscertaining the amount received by the entities and the source of the funding \nii. \nInquiring from management of off-budget financing received and ascertaining the basis for the off-budget financing, if any. \niii. Comparing the approved budget against the actual releases \niv. Comparing the planned vote function outputs against the actuals and determining the variances  \nv. Reviewing utilisation of the funds. \nIn order to achieve its objectives, the Government of Uganda planned to implement and achieve a number of both recurrent and development deliverables under various programmes in the various sectors. In addition to the findings detailed in the individual entity reports, the following overall findings were identified: \n5 \nTable 4: Showing budget performance findings", "metadata": {"headings": [{"headings_0": {"content": "2.1.3 Implementation of the approved budget", "page": 17, "level": 3}}, [{"headings_0": {"content": "2.1.3 Implementation of the approved budget", "page": 17, "level": 3}}], [{"headings_0": {"content": "2.1.3 Implementation of the approved budget", "page": 17, "level": 3}}], [{"headings_0": {"content": "i.", "page": 17, "level": 2}}], [{"headings_0": {"content": "i.", "page": 17, "level": 2}}], [{"headings_0": {"content": "ii.", "page": 17, "level": 2}}], [{"headings_0": {"content": "ii.", "page": 17, "level": 2}}], [{"headings_0": {"content": "iii. Comparing the approved budget against the actual releases", "page": 17, "level": 2}}], [{"headings_0": {"content": "iii. Comparing the approved budget against the actual releases", "page": 17, "level": 2}}], [{"headings_0": {"content": "iii. Comparing the approved budget against the actual releases", "page": 17, "level": 2}}], [{"headings_0": {"content": "iii. Comparing the approved budget against the actual releases", "page": 17, "level": 2}}], [{"headings_0": {"content": "Table 4: Showing budget performance findings", "page": 18, "level": 1}}]], "page": 17, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["**SN**", "**Finding**", "**Recommendation**"], ["**3.1**", "**Overall Revenue performance** In the financial year ended 30th June 2019, Government set to collect a total of UGX.16,358 billion from tax and Non-tax revenue and also receive external grants to support the budget amounting to UGX.1.262 billion. Analysis of the revenue performance revealed that a total of UGX.17,856 billion was realised as detailed below; **Table Showing revenue performance for the financial year** **2018/19**  **Item**  **Budget** (UGX\u2019 billion)** **Actual (UGX\u2019 billion)** **Shortfall (UGX\u2019 billion) Taxes 15,938 16,146 Nil NTR 420 983 Nil Grants 1,261 720 792** **HPIC** relief** **7** NIL** **Total 17,619 17,856** I noted that the performance for Tax and Non-tax revenue collections was satisfactory, given that for both sources, the actual collections exceeded the budgeted/planned collections. It was however noted, that a number of entities did not budget for Non-tax Revenue hence the 168% performance. Failure to have budgets implies that the performance by the concerned entities could not be assessed, since there were no targets on which to base. I further noted that Receipts from grants posted a deficit of UGX.792 billion (62%), which was attributed to failure to secure all the grants from which the revenue was anticipated. Management explained that grants are unpredictable. Often what is projected differs from what is realised. However, Government always takes corrective measures to ensure that the affected items of the budget are either funded through other means or suppressed.", "The Secretary to the Treasury should ensure that NTR budgets  are incorporated in all entities that do collect  such revenue to enable assessment of their performance  at year end. Besides, there is need to establish the causes of shortfalls in grants to enable meaningful solutions to be implemented going forward"], ["**3.2**", "**Unspent warrants/under absorption of funds - UGX.548 billion** It was observed that warrants worth **UGX.31,194 billion** were approved in respect of various entities for which only **UGX.30,646 billion** was paid out leaving **UGX.548 billion** unspent. The details are indicated in the table below; It was noted that 56% of the unspent funds related to non-wage expenditure while wage and development expenditure accounted for 24% and 20% respectively. Most of the unspent funds under wage related to pension payments implying that several planned pension payments were not made. The under absorption on development expenditure could also be as a result of weaknesses in the procurement planning in which the procurement processes are started late. A number of Accounting Officers stated that the current procurement law does not allow them to initiate a procurement before receiving funds", "I advised the PS/ST to only release Pension funds for verified pensioners. In addition, the procurement law can be revisited to move  the requirement  to confirm  funds availability  just before committing Government."]], "metadata": {"headings": [{"headings_0": {"content": "Table 4: Showing budget performance findings", "page": 18, "level": 1}}], "page": 18, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["column_0", "column_1", "column_7"], "type": "table"}}, {"content": [["**SN**", "**Finding**", "**Recommendation**"], ["**3.1**", "**Overall Revenue performance** In the financial year ended 30th June 2019, Government set to collect a total of UGX.16,358 billion from tax and Non-tax revenue and also receive external grants to support the budget amounting to UGX.1.262 billion. Analysis of the revenue performance revealed that a total of UGX.17,856 billion was realised as detailed below; **Table Showing revenue performance for the financial year** **2018/19**  **Item**  **Budget** (UGX\u2019 billion)** **Actual (UGX\u2019 billion)** **Shortfall (UGX\u2019 billion) Taxes 15,938 16,146 Nil NTR 420 983 Nil Grants 1,261 720 792** **HPIC** relief** **7** NIL** **Total 17,619 17,856** I noted that the performance for Tax and Non-tax revenue collections was satisfactory, given that for both sources, the actual collections exceeded the budgeted/planned collections. It was however noted, that a number of entities did not budget for Non-tax Revenue hence the 168% performance. Failure to have budgets implies that the performance by the concerned entities could not be assessed, since there were no targets on which to base. I further noted that Receipts from grants posted a deficit of UGX.792 billion (62%), which was attributed to failure to secure all the grants from which the revenue was anticipated. Management explained that grants are unpredictable. Often what is projected differs from what is realised. However, Government always takes corrective measures to ensure that the affected items of the budget are either funded through other means or suppressed.", "The Secretary to the Treasury should ensure that NTR budgets  are incorporated in all entities that do collect  such revenue to enable assessment of their performance  at year end. Besides, there is need to establish the causes of shortfalls in grants to enable meaningful solutions to be implemented going forward"], ["**3.2**", "**Unspent warrants/under absorption of funds - UGX.548 billion** It was observed that warrants worth **UGX.31,194 billion** were approved in respect of various entities for which only **UGX.30,646 billion** was paid out leaving **UGX.548 billion** unspent. The details are indicated in the table below; It was noted that 56% of the unspent funds related to non-wage expenditure while wage and development expenditure accounted for 24% and 20% respectively. Most of the unspent funds under wage related to pension payments implying that several planned pension payments were not made. The under absorption on development expenditure could also be as a result of weaknesses in the procurement planning in which the procurement processes are started late. A number of Accounting Officers stated that the current procurement law does not allow them to initiate a procurement before receiving funds", "I advised the PS/ST to only release Pension funds for verified pensioners. In addition, the procurement law can be revisited to move  the requirement  to confirm  funds availability  just before committing Government."]], "metadata": {"headings": [{"headings_0": {"content": "Table 4: Showing budget performance findings", "page": 18, "level": 1}}], "page": 18, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["column_0", "column_1", "column_7"], "type": "table"}}, {"content": "6 \nSN Finding Recommendation \nbecause there is a need to confirm funds availability at the very start of \nthe process. \nUnder absorption negatively affects service delivery since some of the planned projects and activities are not undertaken. \nManagement explained that there is still a stock of unverified pensioners whose funds are released but are not paid until the verification process confirms their existence. \n3.3 Transfers from Treasury \nAlthough releases During the year under review, Government budgeted to spend a total of  \nare in response to UGX.32.7 trillion which was later revised to UGX.35.04 trillion. An available \ncash analysis of releases revealed that a total of UGX.31.6 trillion was resources, there is \nreleased against the budgeted amounts, thus representing 96% a need to provide \nperformance. A sum of UGX.3.8 trillion was not released. See table guidance to MDAs \nbelow; \nin regard to \nEntity Total Revised Total \nprioritization of \nUnder release activities to the Budget (UGX) Warrants (UGX) levels of availed \n(UGX) \nresources in cases Central Govt 31,669bn 27,959bn 3,709bn of shortfalls. Local Govt 3,377bn 3,236bn 141bn \nTotal 35,046bn 31,195bn 3,850bn \nFailure to fully release the budgeted funds to the entities affected the implementation of the planned activities which were intended to contribute to the achievement of the NDPII and Vision 2040. The detailed impact of this shortfall on the entity activities has been reported in the individual entity reports. It was observed that whereas the \nperformance contracts with Accounting Officers are premised on availing \nthe appropriated budgets during the year, such contracts are not revised in situations of shortfalls in budgets.  \n3.4 \nAdvance of funds to entities with Appropriation in Aid The Permanent \nIt was established that Government entities were advanced funds for Secretary/Secretary \nthe first quarter based on estimates they had projected to collect as AIA. is advised to Analysis of the performance of AIA revealed that 27 entities were address the risks \nadvanced UGX.287,018,895,231 as AIA but only managed to collect emerging from this UGX.247,515,584,719 resulting in a shortfall of reform. \nUGX.39,503,310,512. \nIt should be noted that the advance was based on 1st quarter collections \nonly, but the entities failed to collect the same over the entire year. \nThe unrecovered amount remains a receivable to Government from the \naffected entities. \nThe occurrence poses a risk of the entities taking advantage of this window to overstate their expected NTR collections to justify the advances being requested. \n7", "metadata": {"headings": [{"headings_0": {"content": "Table 4: Showing budget performance findings", "page": 18, "level": 1}}, [{"headings_0": {"content": "SN Finding Recommendation", "page": 19, "level": 1}}], [{"headings_0": {"content": "SN Finding Recommendation", "page": 19, "level": 1}}], [{"headings_0": {"content": "the process.", "page": 19, "level": 6}}], [{"headings_0": {"content": "the process.", "page": 19, "level": 6}}], [{"headings_0": {"content": "the process.", "page": 19, "level": 6}}], [{"headings_0": {"content": "3.3 Transfers from Treasury", "page": 19, "level": 1}}], [{"headings_0": {"content": "3.3 Transfers from Treasury", "page": 19, "level": 1}}], [{"headings_0": {"content": "cash analysis of releases revealed that a total of UGX.31.6 trillion was resources, there is", "page": 19, "level": 6}}], [{"headings_0": {"content": "cash analysis of releases revealed that a total of UGX.31.6 trillion was resources, there is", "page": 19, "level": 6}}], [{"headings_0": {"content": "performance. A sum of UGX.3.8 trillion was not released. See table guidance to MDAs", "page": 19, "level": 6}}], [{"headings_0": {"content": "below;", "page": 19, "level": 6}}], [{"headings_0": {"content": "below;", "page": 19, "level": 6}}], [{"headings_0": {"content": "Entity Total Revised Total", "page": 19, "level": 1}}], [{"headings_0": {"content": "prioritization of", "page": 19, "level": 6}}], [{"headings_0": {"content": "prioritization of", "page": 19, "level": 6}}], [{"headings_0": {"content": "(UGX)", "page": 19, "level": 6}}], [{"headings_0": {"content": "(UGX)", "page": 19, "level": 6}}], [{"headings_0": {"content": "Total 35,046bn 31,195bn 3,850bn", "page": 19, "level": 1}}], [{"headings_0": {"content": "Total 35,046bn 31,195bn 3,850bn", "page": 19, "level": 1}}], [{"headings_0": {"content": "performance contracts with Accounting Officers are premised on availing", "page": 19, "level": 6}}], [{"headings_0": {"content": "performance contracts with Accounting Officers are premised on availing", "page": 19, "level": 6}}], [{"headings_0": {"content": "Advance of funds to entities with Appropriation in Aid The Permanent", "page": 19, "level": 1}}], [{"headings_0": {"content": "Advance of funds to entities with Appropriation in Aid The Permanent", "page": 19, "level": 1}}], [{"headings_0": {"content": "the first quarter based on estimates they had projected to collect as AIA. is advised to Analysis of the performance of AIA revealed that 27 entities were address the risks", "page": 19, "level": 6}}], [{"headings_0": {"content": "the first quarter based on estimates they had projected to collect as AIA. is advised to Analysis of the performance of AIA revealed that 27 entities were address the risks", "page": 19, "level": 6}}], [{"headings_0": {"content": "UGX.39,503,310,512.", "page": 19, "level": 1}}], [{"headings_0": {"content": "It should be noted that the advance was based on 1st quarter collections", "page": 19, "level": 6}}], [{"headings_0": {"content": "It should be noted that the advance was based on 1st quarter collections", "page": 19, "level": 6}}], [{"headings_0": {"content": "It should be noted that the advance was based on 1st quarter collections", "page": 19, "level": 6}}], [{"headings_0": {"content": "affected entities.", "page": 19, "level": 6}}], [{"headings_0": {"content": "affected entities.", "page": 19, "level": 6}}], [{"headings_0": {"content": "affected entities.", "page": 19, "level": 6}}]], "page": 18, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["Management explained that the receivable for 2018/19 is being recovered from the collections of entities in the current FY 2019/20. This reform is being evaluated for the 2020/2021 budget to address the revenue leakages and budgeting will be based on average actual AIA collections of the Votes from previous financial years.", "", null], ["**3.5**", "**Un approved supplementary expenditure -** **UGX.1,156,476,963,925**  The public Finance management Regulations 2016 provide in Regulation 18(7) that any expenditure which is in excess of the appropriated budget of a vote and which is not in accordance with this section shall be treated as loss of public funds as provided for under section 79 (1) of the Act. I noted that in the FY 2018/19 the Minister approved a supplementary budget of **UGX.1,772,222,007,231** in accordance with Regulation 18(3) of the PFMR 2016. In compliance with Section 25(1), the Minister sought approval of the said supplementary expenditure from Parliament. Parliament however approved and appropriated a total of **UGX.615,745,043,306** leaving a variance of **UGX.1,156,476,963,925** unapproved. In light of Regulation 18 (7), a loss of **UGX.1,156,476,963,925** was occasioned owing to expenditures without an appropriation of Parliament. Management explained that the Ministry has since sought advice from the Attorney General who has advised that since the Minister\u2019s approval was in line with the law, the supplementary should be submitted as part of the Supplementary Appropriation Bill.", "Government  is advised  to streamline  the process  for approval  of supplementary funding to avoid a reoccurrence  of such instances"]], "metadata": {"headings": [{"headings_0": {"content": "affected entities.", "page": 19, "level": 6}}], "page": 20, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["SN", "Finding", "Recommendation"], "type": "table"}}, {"content": "Audit observed that judgment debtors are increasingly resorting to the use of Garnishee orders against Government accounts as a means of enforcing because of the absence of a clear and proper procedure and policy for the effective settlement of decisions and orders entered against the GOU. It was also noted that Government officials neglect the 1st stage of the Garnishees by not applying to court for an explanation as to why they are unable to pay; subsequently, this results into a garnishee order absolute where funds are recovered automatically. The effect is that Government activities are impaired by the injunction of spending on said accounts by the judgment creditors. \nIn response, management explained that the Permanent Secretary/Secretary to the Treasury commenced negotiations with judgement creditors. The negotiations among others will involve agreement on the payment plan of the creditors. This is expected to minimize the garnishee of Government accounts. I advised the PS/ST should devise a strategy of managing the payment of debts arising out of court awards as a means of limiting recourse to garnishee of Government accounts. \n2.1.10Non-recapitalization of the Uganda Communications Employees\u2019 Pension Scheme \nUCEPS was founded by Government of Uganda (Founder) on 15th March 1998, and established under an irrevocable trust in accordance with section 90 of the Uganda Communications Act, 1997. \nA review of Scheme records revealed that an Actuarial valuation of the Scheme was commissioned in 2016 and an Actuarial Report was issued by the Consultant dated February", "metadata": {"headings": [{"headings_0": {"content": "b)", "page": 22, "level": 2}}, [{"headings_0": {"content": "b)", "page": 22, "level": 2}}], [{"headings_0": {"content": "b)", "page": 22, "level": 2}}], [{"headings_0": {"content": "b)", "page": 22, "level": 2}}], [{"headings_0": {"content": "b)", "page": 22, "level": 2}}]], "page": 22, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": "2019. The Actuarial Report revealed that total funding by the Founder (Government) to the tune of UGX.102.7 Billion is needed to clear the schemes arrears.", "metadata": {"headings": [{"headings_0": {"content": "b)", "page": 22, "level": 2}}], "page": 22, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "list"}}, {"content": "A detailed review of the Scheme\u2019s financial records revealed that GOU has over the years been \ncontributing an average of UGX.2bn to meet the monthly pension requirements; however, huge arrears due to retired employees exist. Given the fact that the beneficiaries are of advanced age, there is a risk that they may not access funds due to them in their lifetime. \nIn response, I was informed by Management that the scheme had been transferred to the Ministry of ICT for proper budgeting and management. I await the outcome of this initiative. \n10 \n2.1.11Duplication of investments in ICT infrastructure \nSection 4(b) of the NITAU Act 2009 stipulates that the authority should promote standardization in the planning, acquisition, implementation, delivery, support and maintenance of information technology equipment and services, to ensure uniformity in quality, adequacy and reliability of information technology usage throughout Uganda. \nThe following observations were noted during the year under review; \na) Optical Fibre Investment by UETCL \nI noted that Government of Uganda has invested heavily in the extension of optical fibre network across different parts of the country under the NBI/EGI project using funds from external borrowing (Approximately USD.106M) for Phases I, II and III and (USD.85M) on phase IV. I further noted that UETCL (another Government agency) had also invested heavily in the ICT infrastructure.", "metadata": {"headings": [{"headings_0": {"content": "A detailed review of the Scheme\u2019s financial records revealed that GOU has over the years been", "page": 22, "level": 2}}, [{"headings_0": {"content": "A detailed review of the Scheme\u2019s financial records revealed that GOU has over the years been", "page": 22, "level": 2}}], [{"headings_0": {"content": "A detailed review of the Scheme\u2019s financial records revealed that GOU has over the years been", "page": 22, "level": 2}}], [{"headings_0": {"content": "A detailed review of the Scheme\u2019s financial records revealed that GOU has over the years been", "page": 22, "level": 2}}], [{"headings_0": {"content": "2.1.11Duplication of investments in ICT infrastructure", "page": 23, "level": 3}}], [{"headings_0": {"content": "2.1.11Duplication of investments in ICT infrastructure", "page": 23, "level": 3}}], [{"headings_0": {"content": "2.1.11Duplication of investments in ICT infrastructure", "page": 23, "level": 3}}], [{"headings_0": {"content": "a) Optical Fibre Investment by UETCL", "page": 23, "level": 3}}], [{"headings_0": {"content": "a) Optical Fibre Investment by UETCL", "page": 23, "level": 3}}]], "page": 22, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "heading"}}, {"content": "A review of the harmonization map of the optical fibre network in the country revealed that NITA and UETCL were building identical infrastructure on the same routes, such as in Kampala, Malaba, Mbarara, Kasese, Tororo and Karuma. Whereas the two companies are serving different mandates for the use of the infrastructure, there was a need for the two Government agencies to cooperate to avoid duplication of the infrastructure, double funding for the same actives and further increasing the debt burden of the Country. I noted that UETCL has since secured a license from UCC to allow them to sell data services. \nMultiple Government agencies investing in the OFC network will lead to underutilization, increased borrowing by the agencies to fund the infrastructure, increase in maintenance costs borne by the Government of the network. \nThe above duplications within the ICT sector, especially amongst MDAs, would have been avoided if a deliberate policy to have telecommunication players share infrastructure or sub- let from the existing NBI/EGI network was implemented. This would not only raise additional revenue but also lower costs to users. \nb) Procurement of an Enterprise Resource Planning (ERP) system by Uganda \nRevenue Authority \u2013 UGX.32,079,727,632 \nSection 5 of the National Information Technology Authority NITA (U) Act 2009 mandates NITA(U) to identify and advise Government on all matters of information technology development, utilization, usability, accessibility and deployment including networking, systems development, information technology security, training and support. Section 32(3) of the same act makes it the duty of any organisation implementing Information Technology (IT) solutions to cooperate with NITA (U). \nIn developing the ERP system, management of Uganda Revenue Authority (URA) considered a number of options which included: \n11 \ni. \nDo nothing \u2013 where URA would maintain the status quo regarding corporate support systems, \nii. \nDevelop and integrate a solution in-house, \niii. \nProcurement of cocktail of solutions, and iv. Enterprise resource planning system. \nHowever, I did not obtain any evidence that management consulted NITA (U) while developing this system. Inquiry from NITA (U) revealed that the system acquired by URA is already available under the IFMS and IPPS and any missing modules could have been procured at a much cheaper price.", "metadata": {"headings": [{"headings_0": {"content": "a) Optical Fibre Investment by UETCL", "page": 23, "level": 3}}, [{"headings_0": {"content": "a) Optical Fibre Investment by UETCL", "page": 23, "level": 3}}], [{"headings_0": {"content": "a) Optical Fibre Investment by UETCL", "page": 23, "level": 3}}], [{"headings_0": {"content": "b) Procurement of an Enterprise Resource Planning (ERP) system by Uganda", "page": 23, "level": 8}}], [{"headings_0": {"content": "b) Procurement of an Enterprise Resource Planning (ERP) system by Uganda", "page": 23, "level": 8}}], [{"headings_0": {"content": "b) Procurement of an Enterprise Resource Planning (ERP) system by Uganda", "page": 23, "level": 8}}], [{"headings_0": {"content": "b) Procurement of an Enterprise Resource Planning (ERP) system by Uganda", "page": 23, "level": 8}}], [{"headings_0": {"content": "b) Procurement of an Enterprise Resource Planning (ERP) system by Uganda", "page": 23, "level": 8}}], [{"headings_0": {"content": "i.", "page": 24, "level": 2}}], [{"headings_0": {"content": "i.", "page": 24, "level": 2}}], [{"headings_0": {"content": "ii.", "page": 24, "level": 2}}], [{"headings_0": {"content": "ii.", "page": 24, "level": 2}}], [{"headings_0": {"content": "iii.", "page": 24, "level": 2}}], [{"headings_0": {"content": "iii.", "page": 24, "level": 2}}], [{"headings_0": {"content": "iii.", "page": 24, "level": 2}}]], "page": 23, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": "- 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.\n- 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\u2019s internal control.\n- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.", "metadata": {"headings": [{"headings_0": {"content": "issue an auditor\u2019s report that includes my opinion. Reasonable assurance is a high level of assurance,", "page": 29, "level": 2}}], "page": 29, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "list"}}, {"content": " \n\u2022 Conclude on the appropriateness of management\u2019s use of the going concern basis of accounting \nand, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Government\u2019s ability to deliver its mandate. If I conclude that a material uncertainty exists, I am required to draw attention in my auditor\u2019s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify my opinion. My conclusions are based on the audit evidence obtained up to the date of my auditor\u2019s report. However, future events or conditions may cause the Government to fail to deliver its mandate.", "metadata": {"headings": [{"headings_0": {"content": "issue an auditor\u2019s report that includes my opinion. Reasonable assurance is a high level of assurance,", "page": 29, "level": 2}}, [{"headings_0": {"content": "\u2022 Conclude on the appropriateness of management\u2019s use of the going concern basis of accounting", "page": 29, "level": 2}}], [{"headings_0": {"content": "\u2022 Conclude on the appropriateness of management\u2019s use of the going concern basis of accounting", "page": 29, "level": 2}}]], "page": 29, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": "- Evaluate the overall presentation, structure, and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves a fair presentation.", "metadata": {"headings": [{"headings_0": {"content": "\u2022 Conclude on the appropriateness of management\u2019s use of the going concern basis of accounting", "page": 29, "level": 2}}], "page": 29, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "list"}}, {"content": [["**Revenue**", "2,756,044,761,260", "3,271,716,281,980", "2,741,786,749,768"], ["**Expenditure**", "3,236,853,082,750", "3,224,076,127,666", "3,151,673,782,346"], ["**Approved estimates**", "3,545,357,933,930", "", "3,425,934,945,393"]], "metadata": {"headings": [{"headings_0": {"content": "Table 5: Showing Inconsistencies in reported figures", "page": 32, "level": 1}}], "page": 32, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Component", "Consolidated Trial Balance - UGX", "Consolidated Statement of financial performance - UGX", "Consolidated Statement of Revenues and expenditures - UGX"], "type": "table"}}, {"content": "I re-performed consolidation procedures for a sample of 55 District Local Governments (DLGs) and noted that the figures captured in the consolidated financial statements are different from \nthose reported in the Districts\u2019 separate financial statements for the same votes. The total \nvariances amounted to debit variances and credit variances of UGX.13,685,441,700 and UGX.5,851,129,656 respectively. Furthermore, it was noted that various account items were affected. \nThe budgeted figures reported in the consolidated statement of revenues and expenditures by votes are materially different from the budgeted figures of the same votes in the separate financial statement. The performance analysis presented in the same statement thereof is misrepresented as shown in the table below; \nTable 6: Showing differences in budget figures reported", "metadata": {"headings": [{"headings_0": {"content": "Table 5: Showing Inconsistencies in reported figures", "page": 32, "level": 1}}, [{"headings_0": {"content": "those reported in the Districts\u2019 separate financial statements for the same votes. The total", "page": 32, "level": 2}}], [{"headings_0": {"content": "those reported in the Districts\u2019 separate financial statements for the same votes. The total", "page": 32, "level": 2}}], [{"headings_0": {"content": "those reported in the Districts\u2019 separate financial statements for the same votes. The total", "page": 32, "level": 2}}], [{"headings_0": {"content": "Table 6: Showing differences in budget figures reported", "page": 32, "level": 1}}]], "page": 32, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["**Yumbe**", "58,606,874,146", "33,900,994,925", "24,705,879,221"], ["**Pallisa**", "32,025,074,730", "31,624,272,347", "400,802,383"], ["**Hoima**", "26,223,578,523", "25,835,055,445", "388,523,078"], ["**Nakapiripirit**", "19,065,094,620", "13,076,041,000", "5,989,053,620"], ["**Total**", "**135,920,622,019**", "**104,436,363,717**", "**31,484,258,302**"]], "metadata": {"headings": [{"headings_0": {"content": "Table 6: Showing differences in budget figures reported", "page": 32, "level": 1}}], "page": 32, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["District", "Revised Approved Estimates as per Separate Financial Statements - UGX", "Approved Estimates as per Consolidated Financial Statements - UGX", "Variance - UGX"], "type": "table"}}, {"content": [["**S/N**", "**Issue/Observation**", "**Recommendation(s)**"], ["**2.2.4.1**", "**Revenue Performance** Section 3.3(1) of the LGFAM, 2007, under budget principles guides that estimates must reflect revenue, which can be realized from anticipated conditions. Section 3.4.1(4) further requires realistic revenue forecasting as a precondition for successful budgeting. I reviewed the consolidated statements of revenues and expenditure by vote on pages 15 to 18 of the financial statements and noted that out of the budgeted total revenue of UGX.3,425,934,945,393 for the year 2018/19, a sum of UGX.2,741,786,749,768 was realized representing a performance level of 80% of the target. **Approved/Revise**  **d Estimates** (UGX Billions)** **Releases (UGX Billions)** **Variance (UGX Billions)** **Percentage performance** 3,425 2,741 684 80% The above analysis shows that there was a general shortfall in funding in the consolidated revenue sources for the districts by UGX.684,148,195,625. The shortfall affected implementation of planned activities which in turn negatively impacts on service delivery.", "I advised the Local Governments  to engage the relevant authorities to honor their obligations."]], "metadata": {"headings": [{"headings_0": {"content": "Table 7: Showing Budget performance findings in districts", "page": 33, "level": 1}}], "page": 33, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["column_0", "column_1", "column_6"], "type": "table"}}, {"content": "21", "metadata": {"headings": [{"headings_0": {"content": "Table 7: Showing Budget performance findings in districts", "page": 33, "level": 1}}], "page": 33, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["This was mainly attributed to local revenue shortfall arising from the creation of new administrative units and shortfalls in donor funding due to unrealistic budgeting. However, as noted in the Basis for opinion section above, the inconsistences in the budgeted and revenue figures reported in the various statements could affect the accuracy of the performance reported above.  The issue was brought to the attention of the Secretary to Treasury.", ""], ["**2.2.4.2 Absorption of Released Funds** Section 15 (1) of the Public Finance and Management Act, 2007 states that after approval of the annual budget by Parliament, the Secretary to Treasury shall issue the annual cash flow plan of Government, based on the procurement plans, work plans and recruitment plans approved by Parliament. Section 15 (2) states that the annual cash flow plan issued under subsection (1) shall be the basis for release of funds by the Accountant General to the Accounting Officers. Further to this, section 15 (3) requires an Accounting Officer to commit the budget of a vote, based on the annual cash flow plan issued under this section. I noted that out of the total releases to the District Local Governments of UGX.3,271,716,281,980, a sum of UGX.3,224,076,127,666 was spent representing an absorption level of 98% as shown in the **Table below;**  **Released Funds** [A]** **Expenditure [B]** **Under absorption [A-B]** Trillion(UGX) Trillion(UGX) Trillion(UGX) 3.271 3.224 0.047 The above analysis implies that, generally, the Districts absorbed all the funds warranted to implement the District activities.  However, it was further observed that there was excess expenditure over the amounts warranted of UGX.47 billion.  I brought the above issue to the attention of the Secretary to Treasury.", "I commend the Accounting Officers for the efforts to fully absorb all released funds and advised them to seek council authority in case of any excess funding."], ["**2.2.4.3 Mischarge of Expenditure** A review of the Payment files revealed that a total of UGX.1,512,771,829 was mischarged to different account codes as per the Table below.  **S/N Local Government Amount Mischarged (UGX)** **1** Apac DLG 102,869,260  **2** Kasese DLG 198,979,678  **3** Bundibugyo DLG 228,327,849  **4** Luwero DLG 478,762,310  **5** Kapchorwa DLG 503,832,732 **TOTAL** 1,512,771,829** Mischarge of expenditure impacts on the credibility of the financial statements since the figures reported therein do not reflect the true amounts expended on the respective items. In addition, it negatively", "I advised the Local Governments  to engage the Ministry of Finance during the budgeting  process and ensure strict adherence to the legal framework regarding reallocation of funds."]], "metadata": {"headings": [{"headings_0": {"content": "Table 7: Showing Budget performance findings in districts", "page": 33, "level": 1}}], "page": 34, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["S/N", "Recommendation(s)"], "type": "table"}}, {"content": [["This was mainly attributed to local revenue shortfall arising from the creation of new administrative units and shortfalls in donor funding due to unrealistic budgeting. However, as noted in the Basis for opinion section above, the inconsistences in the budgeted and revenue figures reported in the various statements could affect the accuracy of the performance reported above.  The issue was brought to the attention of the Secretary to Treasury.", ""], ["**2.2.4.2 Absorption of Released Funds** Section 15 (1) of the Public Finance and Management Act, 2007 states that after approval of the annual budget by Parliament, the Secretary to Treasury shall issue the annual cash flow plan of Government, based on the procurement plans, work plans and recruitment plans approved by Parliament. Section 15 (2) states that the annual cash flow plan issued under subsection (1) shall be the basis for release of funds by the Accountant General to the Accounting Officers. Further to this, section 15 (3) requires an Accounting Officer to commit the budget of a vote, based on the annual cash flow plan issued under this section. I noted that out of the total releases to the District Local Governments of UGX.3,271,716,281,980, a sum of UGX.3,224,076,127,666 was spent representing an absorption level of 98% as shown in the **Table below;**  **Released Funds** [A]** **Expenditure [B]** **Under absorption [A-B]** Trillion(UGX) Trillion(UGX) Trillion(UGX) 3.271 3.224 0.047 The above analysis implies that, generally, the Districts absorbed all the funds warranted to implement the District activities.  However, it was further observed that there was excess expenditure over the amounts warranted of UGX.47 billion.  I brought the above issue to the attention of the Secretary to Treasury.", "I commend the Accounting Officers for the efforts to fully absorb all released funds and advised them to seek council authority in case of any excess funding."], ["**2.2.4.3 Mischarge of Expenditure** A review of the Payment files revealed that a total of UGX.1,512,771,829 was mischarged to different account codes as per the Table below.  **S/N Local Government Amount Mischarged (UGX)** **1** Apac DLG 102,869,260  **2** Kasese DLG 198,979,678  **3** Bundibugyo DLG 228,327,849  **4** Luwero DLG 478,762,310  **5** Kapchorwa DLG 503,832,732 **TOTAL** 1,512,771,829** Mischarge of expenditure impacts on the credibility of the financial statements since the figures reported therein do not reflect the true amounts expended on the respective items. In addition, it negatively", "I advised the Local Governments  to engage the Ministry of Finance during the budgeting  process and ensure strict adherence to the legal framework regarding reallocation of funds."]], "metadata": {"headings": [{"headings_0": {"content": "Table 7: Showing Budget performance findings in districts", "page": 33, "level": 1}}], "page": 34, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["S/N", "Recommendation(s)"], "type": "table"}}, {"content": "22 \naffects the implementation of activities from which the funds were \nreallocated. \nAccounting Officers mainly attributed this to constraints during budget uploading on the IFMS and inadequacies of the inbuilt Chart of Accounts under the Programme Based Budgeting System (PBS). \nEmphasis of Matter \nWithout qualifying my opinion further, I draw attention to the following matters presented in the financial statements. \n2.2.5 Inadequate controls surrounding management of payables \nI observed that payables increased from UGX.104,061,463,566 to UGX.148,056,101,815 as disclosed in the consolidated statement of financial position on page 12 for District Local Governments. The accumulation of payables may lead to litigation and payment of fines and penalties. \nI advised the local Governments to observe the commitment control system and to settle the outstanding payables. \n2.2.6 Unpaid Pension and Gratuity Arrears \nDistricts had not paid pension and gratuity arrears totalling to UGX.28,689,443,061 by the end of the financial year as disclosed in note 24 of the consolidated Financial Statements. The unpaid pension and gratuity negatively impact on the well-being of the retired civil servants. \nThis was mainly attributed to delayed access to the pension payroll. \nI advised the Local Governments to follow-up the matter with the MoFPED and Ministry of Public Service to have the pension and gratuity areas payments effected in a timely manner. \nOther Matters \nIn addition to the matters raised above, I consider it necessary to communicate the following matters other than those presented or disclosed in the financial statements; \n2.2.7 Funds not accounted for \nSection 43 (2) of the Local Governments Financial and Accounting Regulations, 2007, requires the administrative advances to be accounted for within one month. Section 2.2.1 (6) of the same regulations requires the Head of Finance to ensure that all payment vouchers are supported by relevant documents. \n23 \nAn amount of UGX.342,077,239 included in the expenditure figures of the consolidated financial statements lacked supporting documents at the time of audit as shown below; \nTable 8: Showing unaccounted for funds in districts", "metadata": {"headings": [{"headings_0": {"content": "Table 7: Showing Budget performance findings in districts", "page": 33, "level": 1}}, [{"headings_0": {"content": "Table 7: Showing Budget performance findings in districts", "page": 33, "level": 1}}], [{"headings_0": {"content": "reallocated.", "page": 35, "level": 6}}], [{"headings_0": {"content": "reallocated.", "page": 35, "level": 6}}], [{"headings_0": {"content": "Emphasis of Matter", "page": 35, "level": 3}}], [{"headings_0": {"content": "Emphasis of Matter", "page": 35, "level": 3}}], [{"headings_0": {"content": "2.2.5 Inadequate controls surrounding management of payables", "page": 35, "level": 3}}], [{"headings_0": {"content": "2.2.5 Inadequate controls surrounding management of payables", "page": 35, "level": 3}}], [{"headings_0": {"content": "2.2.5 Inadequate controls surrounding management of payables", "page": 35, "level": 3}}], [{"headings_0": {"content": "2.2.5 Inadequate controls surrounding management of payables", "page": 35, "level": 3}}], [{"headings_0": {"content": "2.2.5 Inadequate controls surrounding management of payables", "page": 35, "level": 3}}], [{"headings_0": {"content": "2.2.5 Inadequate controls surrounding management of payables", "page": 35, "level": 3}}], [{"headings_0": {"content": "2.2.5 Inadequate controls surrounding management of payables", "page": 35, "level": 3}}], [{"headings_0": {"content": "Other Matters", "page": 35, "level": 3}}], [{"headings_0": {"content": "Other Matters", "page": 35, "level": 3}}], [{"headings_0": {"content": "2.2.7 Funds not accounted for", "page": 35, "level": 3}}], [{"headings_0": {"content": "2.2.7 Funds not accounted for", "page": 35, "level": 3}}], [{"headings_0": {"content": "2.2.7 Funds not accounted for", "page": 35, "level": 3}}], [{"headings_0": {"content": "2.2.7 Funds not accounted for", "page": 35, "level": 3}}], [{"headings_0": {"content": "Table 8: Showing unaccounted for funds in districts", "page": 36, "level": 1}}]], "page": 34, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [[null, null, "**(UGX)**"], ["**1**", "Aleptong DA", "56,514,200"], ["**2**", "Amuru DA", "51,358,200"], ["**3**", "Apac DA", "144,930,601"], ["**4**", "Bugiri DA", "45,595,600"], ["**5**", "Bukedea DA", "9,713,000"], ["**6**", "Katakwi DA", "6,910,638"], ["**7**", "Oyam DA", "27,055,000"], ["", "**Total**", "**342,077,239**"]], "metadata": {"headings": [{"headings_0": {"content": "Table 8: Showing unaccounted for funds in districts", "page": 36, "level": 1}}], "page": 36, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["S/N", "Local Government", "Incompletely vouched Expenditure"], "type": "table"}}, {"content": [["**Revenue (Understatement)**", "08", "78,930,558,848", "75,354,525,393", "0", "3,576,033,455"], ["**Revenue (Overstatement)**", "05", "49,314,657,042", "50,119,650,527", "804,993,485", "0"], ["**Expenditure (Understatement)**", "09", "96,282,163,770", "79,641,509,077", "0", "16,640,654,693"], ["**Expenditure (Overstatement)**", "11", "126,078,995,857", "152,692,102,04 2", "26,613,106,185", "0"], ["**Cash and cash equivalents**", "01", "4,057,992,257", "4,047,751,013", "0", "28,547,633"], ["**Receivables**", "04", "16,626,999,255", "15,407,719,099", "0", "1,219,280,156"], ["**PPE (Understatement)**", "03", "58,774,857,742", "57,913,574,503", "0", "861,283,239"], ["**PPE (Overstatement)**", "01", "82,873,874,209", "87,178,572,949", "4,304,698,740", "0"], ["**Payables (Understatement)**", "04", "3,271,835,280", "2,781,932,767", "0", "489,902,513"]], "metadata": {"headings": [{"headings_0": {"content": "Table 9: Showing Misstatements in the consolidated financial statements of Municipal councils", "page": 38, "level": 1}}], "page": 38, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Component", "No. of MC s", "Individual Audited FS - UGX", "Consolidated FS - UGX", "Over statements - UGX", "Under statements - UGX"], "type": "table"}}, {"content": "26", "metadata": {"headings": [{"headings_0": {"content": "Table 9: Showing Misstatements in the consolidated financial statements of Municipal councils", "page": 38, "level": 1}}], "page": 38, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["**Payables (Overstatement)**", "01", "342,068,960", "2,668,383,034", "2,326,314,074", "0"], ["**Pension Liability**", "01", "283,603,749", "212,045,432", "0", "71,558,317"], ["**Contingent Liabilities**", "01", "1,240,772,497", "1,261,758,497", "20,986,000", "0"], ["**Total Misstatements**", null, null, "", "**34,070,098,484**", "**22,887,260,006**"]], "metadata": {"headings": [{"headings_0": {"content": "Table 9: Showing Misstatements in the consolidated financial statements of Municipal councils", "page": 38, "level": 1}}], "page": 39, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Component", "No. of MC s", "Individual Audited FS - UGX", "Consolidated FS - UGX", "Over statements - UGX", "Under statements - UGX"], "type": "table"}}, {"content": "This affected the accuracy and reliability of the consolidated financial statements of the Municipal Councils. \nI advised the Secretary to Treasury to ensure that proper reconciliations are done with Local Governments for correct amounts to be reflected in the consolidation statements. \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", "metadata": {"headings": [{"headings_0": {"content": "Table 9: Showing Misstatements in the consolidated financial statements of Municipal councils", "page": 38, "level": 1}}, [{"headings_0": {"content": "Table 9: Showing Misstatements in the consolidated financial statements of Municipal councils", "page": 38, "level": 1}}], [{"headings_0": {"content": "Table 9: Showing Misstatements in the consolidated financial statements of Municipal councils", "page": 38, "level": 1}}], [{"headings_0": {"content": "(ISSAIs). My responsibilities under those standards are further described in the Auditor\u2019s", "page": 39, "level": 2}}]], "page": 39, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["**SN**", "**Issue/Observation**", "**Recommendation**"], ["**2.3.2.1**", "**Revenue Performance** Section 3.3(1) of the LGFAM, 2007, relating to budget principles, guides that estimates must reflect revenue, which can be realized from anticipated conditions. Section 3.4.1(4) further requires realistic revenue forecasting as a precondition for successful budgeting. I reviewed the Appropriation Schedules of the financial statements for 38 Municipal Councils and noted that out of the budgeted revenue of UGX.545,068,542,082 for the year 2018/19, UGX.405,324,682,731 (74%) was realised leading to shortfall of UGX.139,743,859,351 (26%) of the target.", "I advised the Local Governments  to initiate strategies to ensure  that budgeted revenue is realised."], ["**2.3.2.2**", "**Absorption of funds** Section 15 (1) of the Public Finance Management Act, 2015 states that after approval of the annual budget by Parliament, the Secretary to Treasury shall issue the annual cash flow plan of Government, based on the procurement plans, work plans and recruitment plans approved by Parliament. Section 15 (2) states that the annual cash flow plan issued under subsection (1) shall be the basis for release of funds by the Accountant General to the Accounting Officers. Further to this, section 15 (3) requires an Accounting Officer to commit the budget of a vote, based on the annual cash flow plan issued under this section. I noted the following; Out of the total revenue realised of UGX.405,324,682,731, UGX.451,805,040,858 was spent by the entities representing an absorption level of 111% as shown in the table below: **Revenue Realised [A]** **Expenditure [B]** **Overspent** **[A-B]**  bn bn bn 405.324 451.805 (46,480) The above implies that the Municipal Councils absorbed all the available funds in excess of the realised amount to implement the Council activities.", "I advised the Local Governments  to ensure that proper budgeting is done based on realistic forecasts and that warranting is based on such estimates. The  Local Governments were also advised to always  seek supplementary approval for the excess funds."], ["**2.3.2.3**", "**Mischarge of Expenditure**", ""]], "metadata": {"headings": [{"headings_0": {"content": "Table 10: Showing budget performance findings in Municipalities", "page": 40, "level": 1}}], "page": 40, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["column_0", "column_1", "column_6"], "type": "table"}}, {"content": "28", "metadata": {"headings": [{"headings_0": {"content": "Table 10: Showing budget performance findings in Municipalities", "page": 40, "level": 1}}], "page": 40, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["**SN** Issue/Observation**", "**Recommendation**"], ["Paragraph 10.4.1 of the Treasury Instructions, 2017 requires that in reviewing payment requests, an Accounting Officer shall have a primary responsibility of ensuring that there is no mischarge and diversion of funds through wrong coding of transactions. An Accounting Officer shall be held personally liable for any wrong charge accounts used for expenditure incurred by his or her vote. A review of the sample of 21 Municipal Council\u2019s payment files revealed that a total of UGX.1,478,412,806 was mischarged to different account codes as per the table below. **S/N Local Government Amount (UGX)** **1.** Fort Portal MC  1,025,896,407 **2.** Jinja MC 306,513,100 **3.** Kamuli MC 146,003,299 **TOTAL** 1,478,412,806** Mischarge of expenditure impacts on the credibility of the financial statements since the figures reported therein do not reflect the true amounts expended on the respective items. In addition, it negatively affects the implementation of activities from which the funds were reallocated.  This was majorly attributed to poor uploading of the budgets on to IFMS.", "I advised the Local Governments  to streamline  the budgeting  processes  and ensure that proper charging  of accounts is done."]], "metadata": {"headings": [{"headings_0": {"content": "Table 10: Showing budget performance findings in Municipalities", "page": 40, "level": 1}}], "page": 41, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["column_0", "column_5"], "type": "table"}}, {"content": "Emphasis of Matter \nWithout qualifying my opinion further, I draw attention to the following matters presented and disclosed in the Consolidated Financial Statements. \n2.3.3 Payables, Borrowings and Pension Liabilities \nA review of the consolidated statement of financial position for Municipal Councils and note 22-24 of the consolidated financial statements revealed that although payables reduced by \nUGX.4,701,398,056 (15%), from UGX.31,347,679,251 to UGX.26,646,281,195, the outstanding payables remain a financial burden to the Municipalities. \nI further noted that the short- and long-term borrowings increased by 45% and 249% respectively as shown in the table below. The accumulation of payables may lead to litigation and payment of fines and penalties. \n29 \nTable 11: Showing Payables, Borrowings and Pension Liabilities in Municipalities", "metadata": {"headings": [{"headings_0": {"content": "Emphasis of Matter", "page": 41, "level": 3}}, [{"headings_0": {"content": "Emphasis of Matter", "page": 41, "level": 3}}], [{"headings_0": {"content": "Emphasis of Matter", "page": 41, "level": 3}}], [{"headings_0": {"content": "Emphasis of Matter", "page": 41, "level": 3}}], [{"headings_0": {"content": "UGX.4,701,398,056 (15%), from UGX.31,347,679,251 to UGX.26,646,281,195, the outstanding payables remain a financial burden to the Municipalities.", "page": 41, "level": 4}}], [{"headings_0": {"content": "UGX.4,701,398,056 (15%), from UGX.31,347,679,251 to UGX.26,646,281,195, the outstanding payables remain a financial burden to the Municipalities.", "page": 41, "level": 4}}], [{"headings_0": {"content": "UGX.4,701,398,056 (15%), from UGX.31,347,679,251 to UGX.26,646,281,195, the outstanding payables remain a financial burden to the Municipalities.", "page": 41, "level": 4}}], [{"headings_0": {"content": "Table 11: Showing Payables, Borrowings and Pension Liabilities in Municipalities", "page": 42, "level": 1}}]], "page": 41, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "heading"}}, {"content": [["**Current Liabilities**", "", "", "", ""], ["Borrowings (Short term)", "309,951,664", "217,655,963", "92,295,701", "42%"], ["Payables", "24,075,228,782", "28,514,331,251", "(4,439,102,469)", "-16%"], ["Pension Liability", "1,066,735,090", "2,273,928,574", "(1,207,193,484)", "-53%"], ["**Total Current liability**", "**25,451,915,536**", "**31,005,915,788**", "**(5,554,000,252)**", "**-18%**"], ["**Non-current Liabilities**", "", "", "0", ""], ["Long-term borrowings", "1,194,365,659", "341,763,463", "852,602,196", "249%"], ["Payables", "-", "-", "", ""], ["Pension liability", "-", "-", "", ""], ["**Total non- current liability**", "**1,194,365,659**", "**341,763,463**", "**852,602,196**", "**249%**"], ["**Total Liabilities**", "**26,646,281,195**", "**31,347,679,251**", "**(4,701,398,056)**", "**-15%**"]], "metadata": {"headings": [{"headings_0": {"content": "Table 11: Showing Payables, Borrowings and Pension Liabilities in Municipalities", "page": 42, "level": 1}}], "page": 42, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Details", "2019 (UGX)", "2018 (UGX)", "Decrease/ Increase - UGX", "Percentage Change"], "type": "table"}}, {"content": "I advised the Local Governments to adhere to the commitment control system and also settle the outstanding obligations. \n2.3.4 Receivables \nA review of the consolidated statement of financial position of Municipal Councils and note 18 of the consolidated financial statements revealed that receivables increased by UGX.8,252,586,423 (44%); from UGX.18,906,454,489 to UGX.27,159,040,912. There is a risk \nthat the Local Governments may not recover these funds. \nMoney owed to Councils represents an idle asset as it denies them the opportunity of using the money to provide services promptly. \nI advised the Local Governments to initiate measures to recover the outstanding amounts. \n2.3.5 Unspent Salary balances \nA review of consolidated statement of financial performance for Municipal Councils and note 16 revealed that UGX.4,310,090,037 (64%) out of UGX.6,759,826,897 transferred to treasury, related to unspent salary balances which could have affected recruitment and staffing levels in the Local Governments thereby affecting service delivery. \nI advised the Local Governments to liaise with Ministry of public service to ensure staff are recruited in time for the efficient delivery of services in their Local Governments. \n30 \nOther Matters \nIn addition to the matters raised above, I consider it necessary to communicate the following matters other than those presented or disclosed in the Consolidated Financial Statements. \n2.3.6 Under Staffing \nA comparison of a sample of Municipal Council staff establishments against the available staff revealed under staffing. Out of the available establishment of 6 Municipalities, out of the expected 1176 positions, only 596 positions had been filled, leaving a staffing gap of 580, representing 49%. \nThe Municipal Councils with the biggest percentage of unfilled positions were Kapchorwa MC and Kitgum MC with percentages of 68% and 57 % respectively as shown in the table below. \nTable 12: Showing Staffing Levels", "metadata": {"headings": [{"headings_0": {"content": "Table 11: Showing Payables, Borrowings and Pension Liabilities in Municipalities", "page": 42, "level": 1}}, [{"headings_0": {"content": "2.3.4 Receivables", "page": 42, "level": 3}}], [{"headings_0": {"content": "2.3.4 Receivables", "page": 42, "level": 3}}], [{"headings_0": {"content": "that the Local Governments may not recover these funds.", "page": 42, "level": 2}}], [{"headings_0": {"content": "that the Local Governments may not recover these funds.", "page": 42, "level": 2}}], [{"headings_0": {"content": "that the Local Governments may not recover these funds.", "page": 42, "level": 2}}], [{"headings_0": {"content": "2.3.5 Unspent Salary balances", "page": 42, "level": 3}}], [{"headings_0": {"content": "2.3.5 Unspent Salary balances", "page": 42, "level": 3}}], [{"headings_0": {"content": "2.3.5 Unspent Salary balances", "page": 42, "level": 3}}], [{"headings_0": {"content": "2.3.5 Unspent Salary balances", "page": 42, "level": 3}}], [{"headings_0": {"content": "Other Matters", "page": 43, "level": 3}}], [{"headings_0": {"content": "Other Matters", "page": 43, "level": 3}}], [{"headings_0": {"content": "2.3.6 Under Staffing", "page": 43, "level": 3}}], [{"headings_0": {"content": "2.3.6 Under Staffing", "page": 43, "level": 3}}], [{"headings_0": {"content": "2.3.6 Under Staffing", "page": 43, "level": 3}}], [{"headings_0": {"content": "Table 12: Showing Staffing Levels", "page": 43, "level": 2}}]], "page": 42, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["**1.**", "Kapchorwa MC", "166", "53", "113", "68%"], ["**2.**", "Kitgum MC", "167", "71", "96", "57%"], ["**3.**", "Nansana MC", "92", "45", "47", "51%"], ["**4.**", "Tororo MC", "385", "187", "198", "51%"], ["**5.**", "Iganga MC", "131", "89", "42", "32%"], ["**6.**", "Lugazi MC", "235", "151", "84", "36%"], ["**Total**", null, "**1176**", "**596**", "**580**", "**49%**"]], "metadata": {"headings": [{"headings_0": {"content": "Table 12: Showing Staffing Levels", "page": 43, "level": 2}}], "page": 43, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["S/N", "Local Government", "Establishment", "Filled Positions", "Vacancies", "% Vacancies"], "type": "table"}}, {"content": "As a result, a number of staff were either in acting capacity or assignment basis. The failure to fill the vacant posts leads to underperformance, inefficiency and stress arising from work overload. \nThis was mainly attributed to the banned on fresh recruits by the Ministry of public service \nI advised the Local Governments to continue engaging the responsible authorities to address the matter. \n2.3.7 Failure to consolidate all the Municipal Councils \nA review of the consolidated financial statements of local Governments revealed that three (3) Municipal Councils of Arua, Mubende and Ntungamo with total budget and actual expenditure of over UGX.18 billion were not consolidated as shown below; \nTable 13: Showing Un-consolidated Municipalities", "metadata": {"headings": [{"headings_0": {"content": "Table 12: Showing Staffing Levels", "page": 43, "level": 2}}, [{"headings_0": {"content": "Table 12: Showing Staffing Levels", "page": 43, "level": 2}}], [{"headings_0": {"content": "Table 12: Showing Staffing Levels", "page": 43, "level": 2}}], [{"headings_0": {"content": "2.3.7 Failure to consolidate all the Municipal Councils", "page": 43, "level": 3}}], [{"headings_0": {"content": "2.3.7 Failure to consolidate all the Municipal Councils", "page": 43, "level": 3}}], [{"headings_0": {"content": "Table 13: Showing Un-consolidated Municipalities", "page": 43, "level": 1}}]], "page": 43, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["Arua Municipal Council", "8,938,115,260", "8,378,526,033"], ["Mubende Municipal Council", "7,044,556,795", "6,683,920,226"], ["Ntungamo Municipal Council", "3,775,541,705", "3,338,906,042"], ["**Total**", "**19,758,213,760**", "**18,401,352,301**"]], "metadata": {"headings": [{"headings_0": {"content": "Table 13: Showing Un-consolidated Municipalities", "page": 43, "level": 1}}], "page": 43, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Entity", "Approved/revised Budget - UGX", "Actual Expenditure - UGX"], "type": "table"}}, {"content": [["1", "Allied Health Professionals Council"], ["2", "Hotel and Tourism Training Institute"], ["3", "Nakivubo War Memorial Stadium"], ["6", "National Council for Children"], ["5", "National Council for Disability"], ["6", "National Council of Sports"], ["7", "Uganda Airlines Limited"], ["8", "National Women Council"], ["9", "National Youth Council"], ["10", "Uganda Air Cargo Corporation"]], "metadata": {"headings": [{"headings_0": {"content": "Table 14: Showing entities not Consolidated, but Disclosed in the consolidated summary statement", "page": 45, "level": 1}}], "page": 45, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["S/N", "Enterprise"], "type": "table"}}, {"content": "33", "metadata": {"headings": [{"headings_0": {"content": "Table 14: Showing entities not Consolidated, but Disclosed in the consolidated summary statement", "page": 45, "level": 1}}], "page": 45, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["11", "Uganda Livestock Industries"], ["12", "Uganda Medical & Dental Practitioners Council"], ["13", "Uganda Nurses and Midwives Council"], ["14", "Uganda Seeds Ltd"], ["15", "Uganda Railways Corporation"], ["16", "The Microfinance Support Centre Ltd"]], "metadata": {"headings": [{"headings_0": {"content": "Table 14: Showing entities not Consolidated, but Disclosed in the consolidated summary statement", "page": 45, "level": 1}}], "page": 46, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["S/N", "Enterprise"], "type": "table"}}, {"content": "I further noted that 16 entities which qualify for consolidation as statutory corporations and state enterprises were neither reported nor disclosed in the consolidated summary statement of performance contrary to the provisions in the PFMA as indicated in the table below; \nTable 15: Showing entities not reported or disclosed in the consolidated summary statement", "metadata": {"headings": [{"headings_0": {"content": "Table 14: Showing entities not Consolidated, but Disclosed in the consolidated summary statement", "page": 45, "level": 1}}, [{"headings_0": {"content": "Table 14: Showing entities not Consolidated, but Disclosed in the consolidated summary statement", "page": 45, "level": 1}}]], "page": 46, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["1", "Nakawa Vocational Training Institute"], ["2", "Uganda Crane Industries Ltd."], ["3", "Amber House"], ["4", "Uganda Energy Credit Capitalization Co. Ltd"], ["5", "Micro Finance Support Centre Uganda LTD"], ["6", "National Social Security Fund"], ["7", "Capital Markets Authority"], ["8", "Civil Aviation Authority"], ["9", "National Lotteries Board"], ["10", "Enterprise Uganda"], ["11", "Tax Appeals Tribunal"], ["12", "National Council for Science and Technology"], ["13", "National Populations Council"], ["14", "Insurance Regulatory Authority"], ["15", "National Council for Older Persons"], ["16", "National Library of Uganda"]], "metadata": {"headings": [{"headings_0": {"content": "Table 14: Showing entities not Consolidated, but Disclosed in the consolidated summary statement", "page": 45, "level": 1}}], "page": 46, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["S/N", "Enterprise"], "type": "table"}}, {"content": [[null, null, "2018/19", "2017/18"], ["1", "National Water and Sewerage Corporation", "85,700,275,000", "51,188,903,000"], ["2", "Uganda Electricity Transmission Company Limited", "64,639,000,000", "(75,526,000,000)"], ["3", "Civil Aviation Authority (June 2019)", "45,508,158,000", "3,718,584,000"], ["4", "Uganda Electricity Generation Company", "24,783,518,000", "(10,856,159,000)"], ["5", "Pride Micro Finance (Dec 2018)", "15,111,855,000", "16,496,928,000"], ["6", "Uganda Development Bank (Dec 2018)", "9,486,394,000", "8,306,247,000"], ["7", "New Vision Printing and Publishing Company Limited", "3,909,242,000", "4,620,769,000"], ["8", "Post Bank Uganda Limited (Dec 2018)", "3,498,702,610", "6,204,064,468"], ["9", "Nile Hotel International Limited", "1,228,312,941", "1,521,712,660"], ["10", "Uganda Property Holding", "1,223,239,694", "125,315,766"], ["11", "NEC Construction Works & Engineering Limited", "1,187,509,276", "795,920,408"], ["12", "NEC Tractor Hire Scheme Limited", "1,052,806,406", "752,282,106"], ["13", "NEC Luwero Industries Limited", "367,940,424", "230,073,329"], ["14", "Uganda Wildlife Conservation education Centre", "285,709,550", "65,550,176"], ["15", "Uganda Post Limited", "188,856,000", "100,495,000"], ["16", "Mandela National Stadium", "137,505,004", "238,902,339"], ["17", "NEC Uzima Limited", "57,922,292", "(385,744,000)"], ["18", "NEC Farm Katonga Limited", "29,730,502", "(359,026,879)"], ["19", "Capital markets Authority", "(43,833,000)", "1,330,205,000"], ["20", "NEC Tractor Project", "(389,305,722)", "(70,636,203)"], ["21", "Kilembe Mines Limited", "(2,321,001,684)", "(1,624,302,143)"]], "metadata": {"headings": [{"headings_0": {"content": "Table 16: Showing Profitability of Enterprises", "page": 48, "level": 1}}], "page": 48, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["No.", "Enterprise", "Profit After Tax (UGX)", "None"], "type": "table"}}, {"content": "36", "metadata": {"headings": [{"headings_0": {"content": "Table 16: Showing Profitability of Enterprises", "page": 48, "level": 1}}], "page": 48, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [[null, null, "2018/19", "2017/18"], ["22", "Uganda Air Cargo Corporation", "(3,726,108,262)", "1,511,953,454"], ["23", "Uganda Broadcasting Corporation", "(6,790,341,186)", "(379,729,597)"], ["24", "Uganda Electricity Distribution Company Limited", "(9,596,178,000)", "(6,305,106,000)"], ["25", "Uganda Development Corporation (Group)", "(17,571,299,000)", "383,820,000"], ["26", "Bank of Uganda", "(855,582,000,000)", "424,113,000,000"]], "metadata": {"headings": [{"headings_0": {"content": "Table 16: Showing Profitability of Enterprises", "page": 48, "level": 1}}], "page": 49, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["No.", "Enterprise", "Profit After Tax (UGX)", "None"], "type": "table"}}, {"content": "The worst performing State Enterprises were Bank of Uganda (BoU), Uganda \nDevelopment Corporation (UDC) and Uganda Electricity Distribution Company Limited (UEDCL) with losses of UGX.855.6bn, UGX.17.6bn and UGX.9.6bn, respectively. \nIn comparison to the previous year, 13 enterprises posted improved (increased profits or \nreduced loss) performance, with Uganda Electricity Generation Company, Uganda \nProperty Holding and Civil Aviation Authority registering over 300% percentage increase. On the other hand, Uganda Development Corporation, Uganda Air Cargo Corporation and Bank of Uganda posted losses for the year from profit positions in the previous year with reduction in performance of over 300%. \nb) Return on Assets \nThe Return on Assets (ROA) shows the percentage of how profitable a company\u2019s assets are generating revenue. It measures management\u2019s efficiency in using the enterprise\u2019s assets to generate earnings. NEC Tractor Hire Scheme Limited, NEC Construction Works & Engineering Limited and Pride Micro Finance have persistently recorded impressive performance posting Return on Assets of 40.5%, 9.5% and 5.7%, respectively. \nMajority of the enterprises are suboptimal and inefficient in utilising their assets. The worst performing Enterprises were NEC Tractor Project, Uganda Development Corporation \nand Kilembe Mines Limited. \nTable 17: Showing Return on Assets", "metadata": {"headings": [{"headings_0": {"content": "Table 16: Showing Profitability of Enterprises", "page": 48, "level": 1}}, [{"headings_0": {"content": "Development Corporation (UDC) and Uganda Electricity Distribution Company Limited (UEDCL) with losses of UGX.855.6bn, UGX.17.6bn and UGX.9.6bn, respectively.", "page": 49, "level": 4}}], [{"headings_0": {"content": "Development Corporation (UDC) and Uganda Electricity Distribution Company Limited (UEDCL) with losses of UGX.855.6bn, UGX.17.6bn and UGX.9.6bn, respectively.", "page": 49, "level": 4}}], [{"headings_0": {"content": "reduced loss) performance, with Uganda Electricity Generation Company, Uganda", "page": 49, "level": 2}}], [{"headings_0": {"content": "reduced loss) performance, with Uganda Electricity Generation Company, Uganda", "page": 49, "level": 2}}], [{"headings_0": {"content": "b) Return on Assets", "page": 49, "level": 3}}], [{"headings_0": {"content": "b) Return on Assets", "page": 49, "level": 3}}], [{"headings_0": {"content": "b) Return on Assets", "page": 49, "level": 3}}], [{"headings_0": {"content": "and Kilembe Mines Limited.", "page": 49, "level": 2}}], [{"headings_0": {"content": "Table 17: Showing Return on Assets", "page": 49, "level": 1}}]], "page": 49, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["", "", "2018/19", "2017/18"], ["1", "NEC Tractor Hire Scheme Limited", "40.53", "43.3"], ["2", "NEC Construction Works & Engineering Limited", "9.48", "26.8"], ["3", "Pride Micro Finance (Dec 2018)", "5.67", "6.7"], ["4", "New Vision Printing and Publishing Company Limited", "4.42", "2.7"], ["5", "Civil Aviation Authority June 2019", "3.79", "0.32"], ["6", "National Water and Sewerage Corporation", "3.53", "3.2"], ["7", "Uganda Development Bank (Dec 2018)", "2.84", "2.79"], ["8", "NEC Uzima Limited", "2.78", "(20.1)"], ["9", "Uganda Wildlife Conservation education Centre", "2.07", "0.5"], ["10", "Uganda Electricity Transmission Company Limited", "1.94", "(2.9)"], ["11", "NEC Luwero Industries Limited", "1.83", "1.3"], ["12", "Post Bank Uganda Limited (Dec 2018)", "0.92", "1.8"]], "metadata": {"headings": [{"headings_0": {"content": "Table 17: Showing Return on Assets", "page": 49, "level": 1}}], "page": 49, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["No.", "Entity", "Return on Assets (%)", "None"], "type": "table"}}, {"content": "37", "metadata": {"headings": [{"headings_0": {"content": "Table 17: Showing Return on Assets", "page": 49, "level": 1}}], "page": 49, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["13", "Nile Hotel International Limited", "0.58", "0.8"], ["14", "NEC Farm Katonga Limited", "0.57", "(6.2)"], ["15", "Uganda Property Holding", "0.49", "0.1"], ["16", "Uganda Electricity Generation Company", "0.40", "(0.2)"], ["17", "Uganda Post Limited", "0.20", "(4.6)"], ["18", "Mandela National Stadium", "0.08", "(0.1)"], ["19", "Capital markets Authority", "(0.57)", "17.05"], ["20", "Uganda Electricity Distribution Company Limited", "(0.58)", "0.4"], ["21", "Uganda Broadcasting Corporation", "(2.30)", "(0.13)"], ["22", "Uganda Air Cargo Corporation", "(4.21)", "1.7"], ["23", "Bank of Uganda", "(5.26)", "3.2"], ["24", "Kilembe Mines Limited", "(5.81)", "(4.3)"], ["25", "Uganda Development Corporation (Group)", "(14.54)", "(4.9)"], ["26", "NEC Tractor Project", "(18.99)", "3.2"]], "metadata": {"headings": [{"headings_0": {"content": "Table 17: Showing Return on Assets", "page": 49, "level": 1}}], "page": 50, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["No.", "Entity", "Return on Assets (%)", "None"], "type": "table"}}, {"content": "c) Dividends \nI observed that, out of the 18 profit making enterprises, only Uganda Property Holding proposed a dividend pay-out of UGX.100,000,000. In the year under review, New Vision Printing and Publishing Company Limited paid out dividends declared for the previous year totalling UGX.870,659,000. \nI advised Government to ensure that profit making enterprises provide a share of Government dividend. \nd) Liquidity Assessment \nI analysed the ability of state enterprises\u2019 to meet their short-term financial obligations by comparing the current assets and current liabilities. The ratio of Current Assets to Current Liabilities exceeding 2 is desirable, although acceptable current ratios vary between industrial sectors. \nI noted that 12 entities were above the ideal threshold, implying that they are able to meet their liabilities as they fall due although 7 of these enterprises had very high ratios exceeding 10. 7 entities had ratios below 1.5 and may have a challenge of paying their liabilities. \nThe liquidity assessment of four state enterprises namely Bank of Uganda, Pride Micro Finance, Post Bank Uganda Limited and Uganda Development Bank was not made because the financial institutions have mandatory liquidity thresholds. \n38 \nTable 18: Showing Enterprise Liquidity", "metadata": {"headings": [{"headings_0": {"content": "c) Dividends", "page": 50, "level": 3}}, [{"headings_0": {"content": "c) Dividends", "page": 50, "level": 3}}], [{"headings_0": {"content": "c) Dividends", "page": 50, "level": 3}}], [{"headings_0": {"content": "d) Liquidity Assessment", "page": 50, "level": 3}}], [{"headings_0": {"content": "d) Liquidity Assessment", "page": 50, "level": 3}}], [{"headings_0": {"content": "d) Liquidity Assessment", "page": 50, "level": 3}}], [{"headings_0": {"content": "d) Liquidity Assessment", "page": 50, "level": 3}}], [{"headings_0": {"content": "d) Liquidity Assessment", "page": 50, "level": 3}}], [{"headings_0": {"content": "Table 18: Showing Enterprise Liquidity", "page": 51, "level": 1}}]], "page": 50, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "heading"}}, {"content": [[null, null, "**2018/19**", "**2017/18**"], ["1", "NEC Farm Katonga Limited", "938.09", "305.92"], ["2", "NEC Tractor Hire Scheme Limited", "15.86", "4.96"], ["3", "Uganda Development Corporation (Group)", "14.68", "62.07"], ["4", "NEC Tractor Project", "14.16", "8.32"], ["5", "Uganda Electricity Generation Company", "12.74", "7.62"], ["6", "Capital markets Authority", "11.58", "11.91"], ["7", "Nile Hotel International Limited", "10.60", "7.82"], ["8", "Uganda Electricity Distribution Company Limited", "9.37", "4.65"], ["9", "NEC Luwero Industries Limited", "5.04", "5.07"], ["10", "New Vision Printing and Publishing Company Limited", "4.21", "3.60"], ["11", "Uganda Property Holding", "3.34", "4.05"], ["12", "Civil Aviation Authority June 2019", "3.09", "1.89"], ["13", "Uganda Electricity Transmission Company Limited", "1.80", "1.47"], ["14", "National Water and Sewerage Corporation", "1.80", "1.31"], ["15", "Kilembe Mines Limited", "1.66", "2.00"], ["16", "Uganda Air Cargo Corporation", "1.29", "1.76"], ["17", "NEC Construction Works & Engineering Limited", "1.15", "3.85"], ["18", "Uganda Post Limited", "1.13", "1.09"], ["19", "Uganda Broadcasting Corporation", "0.54", "0.54"], ["20", "Mandela National Stadium", "0.54", "0.43"], ["21", "Uganda Wildlife Conservation education Centre", "0.41", "0.49"], ["22", "NEC Uzima Limited", "0.33", "2.04"]], "metadata": {"headings": [{"headings_0": {"content": "Table 18: Showing Enterprise Liquidity", "page": 51, "level": 1}}], "page": 51, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["No.", "Entity", "Current Ratio", "None"], "type": "table"}}, {"content": "I advised Government to ensure management of these entities strengthen their Treasury/working capital management strategies to ensure speedy collection of debts and reduction of liabilities. \ne) Long-term Debt \nEntities should be able to meet their long-term debt obligations. Gearing (debt) ratios measure the proportion of the enterprises\u2019 assets that are financed by debt. Although the risk levels vary from industry to industry, a debt ratio of more than 50% is considered undesirable. I noted that 8 State enterprises had debt ratios of more than 50% implying that their total assets were insufficient to cover their total debt. These included; UEDCL, UETCL, UEGCL, NEC Construction Works, Post Bank Uganda, Bank of Uganda, Pride Micro Finance and NWSC. \n18 enterprises had debt ratios of less than 50% implying that owners\u2019 equity was sufficient to cover total debt. Further analysis noted that 9 enterprises had very low gearing levels below 10% indicating availability of untapped source of financing for growth. \n39 \nTable 19: Showing Enterprise Gearing", "metadata": {"headings": [{"headings_0": {"content": "Table 18: Showing Enterprise Liquidity", "page": 51, "level": 1}}, [{"headings_0": {"content": "e) Long-term Debt", "page": 51, "level": 3}}], [{"headings_0": {"content": "e) Long-term Debt", "page": 51, "level": 3}}], [{"headings_0": {"content": "e) Long-term Debt", "page": 51, "level": 3}}], [{"headings_0": {"content": "e) Long-term Debt", "page": 51, "level": 3}}], [{"headings_0": {"content": "Table 19: Showing Enterprise Gearing", "page": 52, "level": 1}}]], "page": 51, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [[null, null, "**2018/19**", "**2017/18**"], ["1", "Uganda Electricity Distribution Company Limited", "88.12", "86.97"], ["2", "Uganda Electricity Transmission Company Limited", "87.79", "87.48"], ["3", "Uganda Electricity Generation Company", "87.28", "85.44"], ["4", "NEC Construction Works & Engineering Limited", "86.73", "25.83"], ["5", "Post Bank Uganda Limited (Dec 2018)", "81.33", "82.40"], ["6", "Bank of Uganda", "80.97", "75.50"], ["7", "Pride Micro Finance (Dec 2018)", "58.55", "58.70"], ["8", "National Water and Sewerage Corporation", "58.30", "68.20"], ["9", "Civil Aviation Authority June 2019", "48.88", "49.51"], ["10", "NEC Uzima Limited", "44.21", "9.83"], ["11", "Uganda Development Bank (Dec 2018)", "31.48", "31.27"], ["12", "Uganda Post Limited", "21.12", "19.69"], ["13", "Uganda Development Corporation (Group)", "20.38", "29.43"], ["14", "New Vision Printing and Publishing Company Limited", "19.89", "20.05"], ["15", "Uganda Broadcasting Corporation", "17.81", "17.72"], ["16", "Uganda Air Cargo Corporation", "16.70", "15.17"], ["17", "Kilembe Mines Limited", "13.71", "15.61"], ["18", "Capital markets Authority", "8.44", "8.24"], ["19", "NEC Tractor Project", "7.04", "11.98"], ["20", "NEC Luwero Industries Limited", "6.74", "10.67"], ["21", "NEC Tractor Hire Scheme Limited", "5.42", "16.78"], ["22", "Uganda Wildlife Conservation education Centre", "2.81", "3.61"], ["23", "Mandela National Stadium", "2.53", "2.28"], ["24", "Uganda Property Holding", "0.63", "0.62"], ["25", "Nile Hotel International Limited", "0.25", "0.37"], ["26", "NEC Farm Katonga Limited", "0.02", "0.04"]], "metadata": {"headings": [{"headings_0": {"content": "Table 19: Showing Enterprise Gearing", "page": 52, "level": 1}}], "page": 52, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["No.", "Entity", "Debt Ratio (%)", "None"], "type": "table"}}, {"content": "In comparison to the previous year, NEC construction works increased its gearing from 25.8% to 86.7%, NEC Uzima also increased from 9.8% to 44.2% while NEC Tractor project, NEC Luwero industries and NEC Tractor hire scheme had reduced gearing by over 30% from the previous year. The rest of the entities had no notable change in the gearing levels. \nf) Interest cover \nI analysed the interest cover of enterprises that had taken on loans to establish their ability to service the loans through payment of interest. Interest cover looks at how many \ntimes a Company\u2019s operating profits exceed its interest payable. A cover of four (4) times \nand 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. \nI noted that 8 State enterprises were better placed to meet their interest obligations, while 7 were not. The three worst performing State enterprises in this aspect were Bank \n40 \nof Uganda, Uganda Broadcasting Corporation and NEC Tractor Project, which may have challenges meeting their interest obligations. \nTable 20: Showing Enterprises' ability to service loan obligations", "metadata": {"headings": [{"headings_0": {"content": "Table 19: Showing Enterprise Gearing", "page": 52, "level": 1}}, [{"headings_0": {"content": "f) Interest cover", "page": 52, "level": 3}}], [{"headings_0": {"content": "f) Interest cover", "page": 52, "level": 3}}], [{"headings_0": {"content": "times a Company\u2019s operating profits exceed its interest payable. A cover of four (4) times", "page": 52, "level": 2}}], [{"headings_0": {"content": "times a Company\u2019s operating profits exceed its interest payable. A cover of four (4) times", "page": 52, "level": 2}}], [{"headings_0": {"content": "times a Company\u2019s operating profits exceed its interest payable. A cover of four (4) times", "page": 52, "level": 2}}], [{"headings_0": {"content": "times a Company\u2019s operating profits exceed its interest payable. A cover of four (4) times", "page": 52, "level": 2}}], [{"headings_0": {"content": "times a Company\u2019s operating profits exceed its interest payable. A cover of four (4) times", "page": 52, "level": 2}}], [{"headings_0": {"content": "Table 20: Showing Enterprises' ability to service loan obligations", "page": 53, "level": 1}}]], "page": 52, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["1", "NEC Luwero Industries Limited", "1,605,446,322", "2,898,800", "553.8"], ["2", "Uganda Property Holding", "2,295,266,559", "18,139,200", "126.5"], ["3", "NEC Construction Works & Engineering Limited", "1,174,872,802", "12,636,474", "93.0"], ["4", "NEC Tractor Hire Scheme Limited", "1,031,670,365", "21,136,041", "48.8"], ["5", "NEC Farm Katonga Limited", "28,230,596", "1,499,906", "18.8"], ["6", "National Water and Sewerage Corporation", "55,246,011,000", "5,993,271,000", "9.2"], ["7", "Uganda Development Bank (Dec 2018)", "15,810,821,000", "2,217,024,000", "7.1"], ["8", "Uganda Post Limited", "307,786,000", "54,711,000", "5.6"], ["9", "Pride Micro Finance (Dec 2018)", "28,944,865,000", "7,666,079,000", "3.8"], ["10", "Uganda  Electricity Generation Company", "23,922,515,000", "8,256,418,000", "2.9"], ["11", "Civil Aviation Authority June 2019", "48,737,266,000", "20,574,758,000", "2.4"], ["12", "Post Bank Uganda Limited (Dec 2018)", "14,004,100,319", "8,465,096,709", "1.7"], ["13", "Bank of Uganda", "(727,747,000,000)", "127,835,000,000", "-5.7"], ["14", "Uganda  Broadcasting Corporation", "(6,790,341,186)", "34,468,397", "-197.0"], ["15", "NEC Tractor Project", "(390,592,922)", "1,287,200", "-303.4"]], "metadata": {"headings": [{"headings_0": {"content": "Table 20: Showing Enterprises' ability to service loan obligations", "page": 53, "level": 1}}], "page": 53, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["", "N o . Entity", "Profit before Interest - UGX", "Interest (Financing cost) - UGX", "Interest Cover (No. of times)"], "type": "table"}}, {"content": [["**1**", "Transfers received from the consolidated fund", "2,163,167,916,562", "2,137,213,915,252", "99%"], ["**2**", "Local revenue", "112,458,420,725", "85,219,652,840", "76%"], ["**3**", "Transfers received from other Government units", "374,774,295,347", "304,433,083,584", "81%"], ["**4**", "Grants (Donors funding) received", "131,084,401,244", "84,666,243,311", "65%"], ["", "**Total**", "**2,781,485,033,878**", "**2,611,532,894,987**", "**94%**"]], "metadata": {"headings": [{"headings_0": {"content": "Table 21: Showing revenue performance of local governments", "page": 57, "level": 1}}], "page": 57, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["No", "Revenue Source", "Approved Budget - UGX", "Warrants/Releases - UGX", "%age performance"], "type": "table"}}, {"content": [["2,611,532,894,987", "2,498,855,842,038", "112,677,052,949"]], "metadata": {"headings": [{"headings_0": {"content": "Table 22: Showing Levels of absorption of funds by Local governments", "page": 58, "level": 1}}], "page": 58, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Warrants (Released Funds) (UGX)", "Expenditure (UGX)", "Unspent (UGX)"], "type": "table"}}, {"content": [["1", "30th June 2017", "2,284,964,328,329", "0"], ["2", "30th June 2018", "2,567,489,551,939", "12.4%"], ["3", "30th June 2019", "3,334,699,967,995", "29.9%"]], "metadata": {"headings": [{"headings_0": {"content": "Table 23: Showing trend of domestic arrears", "page": 65, "level": 1}}], "page": 65, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["No", "Year End", "Amount (UGX)", "% Increase/decrease"], "type": "table"}}, {"content": [["**Routine Manual Maintenance**", "17,215", "15,967", "93"], ["**Routine Mechanised Maintenance**", "6,760", "6,852", "101"], ["**Periodic Maintenance**", "1,090", "1,068", "98"], ["**Total**", "**25,065**", "**23,887**", ""]], "metadata": {"headings": [{"headings_0": {"content": "Table 24: Showing performance per category of works", "page": 66, "level": 1}}], "page": 66, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Nature of planned activities", "Planned (KM)", "Achieved (KM)", "%ge achievement"], "type": "table"}}, {"content": "54 \ni. \nFrom the above summary, I noted that Routine Mechanised Maintenance achieved the best results at 101% while Routine Manual Maintenance and Periodic Maintenance performed at 93% and 98% respectively. \nii. \nField inspections on 50 of the sampled Local Governments revealed that despite of the URF intervention, the road network was not in a very good state characterised by; Incomplete works on roads, culverts lacking head walls, poor drainage, potholes and gullies on several roads, roads in immotorable state and narrowed carriage way. \nThe Accounting Officers attributed the shortcoming to budgetary constraints to carry out emergency works fully, heavy rains experienced during the year, poor terrain and nature of the soils. \nI advised the Local Governments to engage relevant authorities to ensure increased funding and ensure that all planned works are implemented. \n3.8 \nManagement of the Youth Livelihood Program (YLP) \n3.8.1 YLP at Ministry Level", "metadata": {"headings": [{"headings_0": {"content": "Table 24: Showing performance per category of works", "page": 66, "level": 1}}, [{"headings_0": {"content": "i.", "page": 67, "level": 2}}], [{"headings_0": {"content": "i.", "page": 67, "level": 2}}], [{"headings_0": {"content": "ii.", "page": 67, "level": 2}}], [{"headings_0": {"content": "ii.", "page": 67, "level": 2}}], [{"headings_0": {"content": "ii.", "page": 67, "level": 2}}], [{"headings_0": {"content": "ii.", "page": 67, "level": 2}}], [{"headings_0": {"content": "ii.", "page": 67, "level": 2}}], [{"headings_0": {"content": "Management of the Youth Livelihood Program (YLP)", "page": 67, "level": 3}}], [{"headings_0": {"content": "3.8.1 YLP at Ministry Level", "page": 67, "level": 3}}]], "page": 66, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["**1**", "Group Disintegration", "30", "65"], ["**2**", "Enterprise Failure", "5", "11"], ["**3**", "Inadequate M&E", "5", "11"], ["**4**", "Lack/limited markets for produce", "2", "4"], ["**5**", "Non availability of produce", "2", "4"], ["**6**", "Poor choice of enterprise", "2", "4"], ["**Total**", null, "**46**", "**100**"]], "metadata": {"headings": [{"headings_0": {"content": "Table 25: Showing unrecovered YLP funds", "page": 68, "level": 1}}], "page": 68, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["S/N", "Causes of non-recovery of Funds", "Frequency", "%age Frequency"], "type": "table"}}, {"content": "The failure by Government to recover the funds implies that other eligible youth groups fail to access the would-be revolving funds which curtail participation in the program. \nGovernment should reinvigorate the program by ensuring that youth groups are adequately sensitized on enterprise management and group dynamics before accessing funding. In addition, technical support, monitoring and supervision of youth enterprises should be mainstreamed into the routine community development activities of the \nDistricts and Municipal Councils. \nc) Transfer of funds to the National Revolving Fund Account \nDistricts and Municipal Councils are supposed to transfer recovered funds to the National Revolving Fund Collection Account in Bank of Uganda (BoU) to be revolved to new Youth Interest Groups. \n56 \nI noted that out of the recovered funds of UGX.10,487,010,800, funds amounting to UGX.10,276,978,717 was transferred to the National Revolving Fund Account in Bank of Uganda leaving a balance of UGX.210,032,083 as un-transferred by close of the year. \nAccounting Officers of the affected votes attributed the short coming to the slow rate of repayments by the groups hence the wait for funds to accumulate before transfer. \nThe Accounting Officers should timely transfer all recovered funds to the National Revolving Fund Account so that other Youth groups can have access to funding leading to increased participation in income generating activities. \nd) Performance of YLP Groups \nSixty-eight (68) Youth Groups in the Districts and Municipal Councils were visited with a view of ascertaining group existence, participation and status of the enterprises. I noted that 10 (15%) of the groups were generally okay, given that the groups existed, maintained some records and the youth were earning income from the enterprises.", "metadata": {"headings": [{"headings_0": {"content": "Table 25: Showing unrecovered YLP funds", "page": 68, "level": 1}}, [{"headings_0": {"content": "Table 25: Showing unrecovered YLP funds", "page": 68, "level": 1}}], [{"headings_0": {"content": "Districts and Municipal Councils.", "page": 68, "level": 2}}], [{"headings_0": {"content": "c) Transfer of funds to the National Revolving Fund Account", "page": 68, "level": 3}}], [{"headings_0": {"content": "c) Transfer of funds to the National Revolving Fund Account", "page": 68, "level": 3}}], [{"headings_0": {"content": "c) Transfer of funds to the National Revolving Fund Account", "page": 68, "level": 3}}], [{"headings_0": {"content": "c) Transfer of funds to the National Revolving Fund Account", "page": 68, "level": 3}}], [{"headings_0": {"content": "c) Transfer of funds to the National Revolving Fund Account", "page": 68, "level": 3}}], [{"headings_0": {"content": "c) Transfer of funds to the National Revolving Fund Account", "page": 68, "level": 3}}], [{"headings_0": {"content": "d) Performance of YLP Groups", "page": 69, "level": 3}}], [{"headings_0": {"content": "d) Performance of YLP Groups", "page": 69, "level": 3}}]], "page": 68, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": "\u27a2 There was no evidence that PPDA approved the hybrid procurement guidelines.  \n\u27a2  \nTask and Guidance No.5 of the above procedures require that procurement of contractors be made in clusters of 5 LGs to attract competent, experienced contractors to enable the benefits of economies of scale. However, clusters of ten were instead noted. As a result, the contractors seemed to concentrate their efforts on some projects and left others to lag behind. They were overwhelmed with work.  \n\u27a2 I observed that, although the Ministry of Education had guided that the construction of the seed school would be phased in 3 financial years; they did not set the minimum expected coverage for each phase and scope of works to be done, therefore making it difficult to measure the impact of each release of funds. \n3.9.2 VFM report on UgIFT for the financial year 2017/18", "metadata": {"headings": [{"headings_0": {"content": "iv. The hybrid procurement process", "page": 71, "level": 3}}, [{"headings_0": {"content": "3.9.2 VFM report on UgIFT for the financial year 2017/18", "page": 71, "level": 3}}]], "page": 71, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": "As part of this program, the Office of the Auditor General undertook a Baseline Value for money Audit for the 2017/2018 Financial Year expenditures in both Health and Education sectors for a sample of selected primary schools and health Units together with the infrastructure projects implemented by 30 Local Governments. The purpose of the Value for money audit was to provide a baseline that will facilitate monitoring and assessment of the programme outcomes during the process of implementation of the programme. 30 Local Governments (LGs) comprising 22 districts and 8 Municipalities were selected for the assessment and assessed along three thematic areas namely; Utilisation of funds, Delivery of Infrastructure and Delivery of services. The detailed findings of the VFM study are in part 4 of this report. \nIn summary, the following were observed: \na) Utilisation of funds \nI noted that out of sampled schools, 93.6% was utilised and absorbed as intended. However, outliers of non-utilisation and absence of financial records was observed in some entities. Further there were time overruns, non-adherence to procurement and the standard allocation of UPE funds per pupil per annum of UGX.10,000 was not adhered to with the minimum allocated amount of all LGs was UGX.3,770, the maximum was UGX.36,222. \n59 \nb) Delivery of Infrastructure \nI noted that the detailed engineer\u2019s estimates were prepared for only 31 (19%) of the 165 construction projects in 8 LGs Assessed and certified works in most LGs were not supported with measurement sheets. Further, gaps in supervision arrangements were observed, quality control was not being emphasized, facilities constructed were not being utilised for the intended purposes in most of the LGs and maintenance and repair of facilities was not being prioritized. \nc) Delivery of services in education and health", "metadata": {"headings": [{"headings_0": {"content": "3.9.2 VFM report on UgIFT for the financial year 2017/18", "page": 71, "level": 3}}, [{"headings_0": {"content": "3.9.2 VFM report on UgIFT for the financial year 2017/18", "page": 71, "level": 3}}], [{"headings_0": {"content": "a) Utilisation of funds", "page": 71, "level": 3}}], [{"headings_0": {"content": "a) Utilisation of funds", "page": 71, "level": 3}}], [{"headings_0": {"content": "a) Utilisation of funds", "page": 71, "level": 3}}], [{"headings_0": {"content": "b) Delivery of Infrastructure", "page": 72, "level": 3}}], [{"headings_0": {"content": "b) Delivery of Infrastructure", "page": 72, "level": 3}}], [{"headings_0": {"content": "c) Delivery of services in education and health", "page": 72, "level": 8}}]], "page": 71, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["**Water for Use (Rural water facilities)**", "No.  of protected springs", "4,362", "3,625", "737", "17%"], ["**Water for Use (Rural water facilities)**", "No. of shallow wells  with pumps", "4,923", "3,413", "1,510", "31%"], ["**Water for Use** **(Rural** water facilities)**", "Number  of deep  boreholes with hand pump", "9,914", "8,345", "1,569", "16%"]], "metadata": {"headings": [{"headings_0": {"content": "Table 26: Showing Non-Functional water facilities", "page": 74, "level": 1}}], "page": 74, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["", "Item Description", "Total in the 29 sampled District", "Functional", "Non- functional", "% of Non- functional"], "type": "table"}}, {"content": "I also noted slow disbursement of funds by the project whereby out of UGX.33 Billion contracted as at 30th June 2019, only UGX.16.2 Billion (49%) had been disbursed. In addition, UGX.8.9 Billion of the disbursed funds remained un-accounted for as at 30th June 2019.  \ne) Although trainings were conducted by grantees, there were inadequacies in the development, assessment and review of the skills needs gaps by the grantees and the due diligence consultants. There were no assessments of the individual trainers and training material by a relevant body. In the circumstances there is a risk that these inadequacies affected the conduct of the skills initiatives. \nI advised Government to ensure proper project preparations and ensure projects commence as planned with limited bottlenecks. In addition, the project management should consider reviewing the grant award processes and cut out inefficiencies identified during initial project implementation. \n67 \n4.4 \nValue for Money Audit on licensing and enforcement of standards in downstream petroleum operations by Ministry of Energy and Mineral Development \nThe Department of Petroleum Supply (DPS) together with the Technical Petroleum Committee (TPC), under the Ministry of Energy and Mineral Development supervises and monitors the importation, exportation, transportation, processing, supply, storage, distribution and marketing of petroleum products. There has been an increase in the volume of trade of petroleum products with Import expenditure on petroleum products rising from US$775 million (UGX.2.87 Trillion) in 2016 to US$ 1,017.1 million (UGX.3.77 Trillion) in 2017 3 . \nThere has been a public outcry on adulteration of fuel, mislabeling of products, and short weighting of petroleum products at some fuel stations, as well as the escalating number of fuel stations in un-gazetted places. \nI carried out a VFM audit to assess licensing and enforcement of standards in downstream petroleum operations by Ministry of Energy and Mineral Development, and noted the following key matters: \na) Compliance with the set facility standards, regulations and guidelines", "metadata": {"headings": [{"headings_0": {"content": "d)", "page": 79, "level": 2}}, [{"headings_0": {"content": "d)", "page": 79, "level": 2}}], [{"headings_0": {"content": "d)", "page": 79, "level": 2}}], [{"headings_0": {"content": "d)", "page": 79, "level": 2}}], [{"headings_0": {"content": "Value for Money Audit on licensing and enforcement of standards in downstream petroleum operations by Ministry of Energy and Mineral Development", "page": 80, "level": 8}}], [{"headings_0": {"content": "Value for Money Audit on licensing and enforcement of standards in downstream petroleum operations by Ministry of Energy and Mineral Development", "page": 80, "level": 8}}], [{"headings_0": {"content": "Value for Money Audit on licensing and enforcement of standards in downstream petroleum operations by Ministry of Energy and Mineral Development", "page": 80, "level": 8}}], [{"headings_0": {"content": "Value for Money Audit on licensing and enforcement of standards in downstream petroleum operations by Ministry of Energy and Mineral Development", "page": 80, "level": 8}}], [{"headings_0": {"content": "a) Compliance with the set facility standards, regulations and guidelines", "page": 80, "level": 8}}]], "page": 79, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": "The project was initially expected to support 132,400 (revised to 156,400) pregnant women to deliver under skilled attendance through a subsidized voucher scheme offering a package of safe delivery services consisting of: four antenatal visits, safe delivery, one postnatal visit, treatment and management of selected pregnancy-related medical conditions and complications (including caesarean sections), and emergency transport.  \nChallenges were identified at the midterm and throughout the lifetime of the project. I undertook a study with the main objective of assessing the impact of using a health voucher by beneficiaries on the survival of their babies during pregnancy and at birth and observed the following; \na) \n97% of the babies of beneficiary women survived compared to 93% of similar non- beneficiary women all the users of the voucher services were satisfied. \nb) \nAlthough the project was supposed to have focused on poor women, only 32% of the beneficiary mothers were classified as poor while the remaining 68% were classified as medium or rich. The Eastern region was more affected as only 29% of selected beneficiary were poor compared to 33% in Western region. This reduced the impact of the project. \nc) \nAlthough the Ministry of Health (MoH) recommends that mothers should attend their first ANC within the first 3 months of pregnancy, cases of delayed attendance of the first ANC were noted with more mothers in the Eastern region attending their first ANC very late in their pregnancy compared to the Western region. \nd) \nAlthough beneficiaries were to access all maternal services free of charge from the Voucher Service Provider (VSP), 7.2% of them on average paid UGX.20,050 extra money at the VSP. \ne) \n4.5% of the beneficiary mothers paid more than the prescribed price for the voucher (UGX 4,000) with payments stretching up to UGX.100,000 which demonstrates a lack of awareness of the costs of the voucher and the type of services that beneficiaries were entitled to. 32% of the non-beneficiary women did not acquire the voucher because they did not know about it. \nf) \nThe project operations manual did not provide guidance on the membership of the \nInter-agency Coordination Committee (ICC) and mechanisms for the implementation \nof their activities. MoH did not formally or otherwise appoint members to form/constitute this committee and had no evidence of work done by the ICC in terms of meetings held, reviews undertaken and approvals made. \ng)", "metadata": {"headings": [{"headings_0": {"content": "Uganda who face challenges with accessing safe delivery services.", "page": 86, "level": 2}}, [{"headings_0": {"content": "a)", "page": 87, "level": 2}}], [{"headings_0": {"content": "a)", "page": 87, "level": 2}}], [{"headings_0": {"content": "b)", "page": 87, "level": 2}}], [{"headings_0": {"content": "b)", "page": 87, "level": 2}}], [{"headings_0": {"content": "c)", "page": 87, "level": 2}}], [{"headings_0": {"content": "c)", "page": 87, "level": 2}}], [{"headings_0": {"content": "d)", "page": 87, "level": 2}}], [{"headings_0": {"content": "d)", "page": 87, "level": 2}}], [{"headings_0": {"content": "e)", "page": 87, "level": 2}}], [{"headings_0": {"content": "e)", "page": 87, "level": 2}}], [{"headings_0": {"content": "f)", "page": 87, "level": 2}}], [{"headings_0": {"content": "f)", "page": 87, "level": 2}}], [{"headings_0": {"content": "Inter-agency Coordination Committee (ICC) and mechanisms for the implementation", "page": 87, "level": 2}}], [{"headings_0": {"content": "Inter-agency Coordination Committee (ICC) and mechanisms for the implementation", "page": 87, "level": 2}}], [{"headings_0": {"content": "g)", "page": 87, "level": 2}}]], "page": 87, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": "The company had constructed a power plant with a capacity of 1.6MW (per hour) which was operational in Bukuzindu, Kalangala district, with transmission and distribution lines serving the major settlements on Bugala Island. At the time of the visit in September 2018, the extended grid length stood at approximately 140 km with 67 transformers installed. The power performance reports for KIS revealed that the company had attained the customer connection target set at three thousand (3,000) customers by year 4 (2018) as set out in the power license agreement. It was observed that KIS faces a challenge of low utilization as the maximum load attained during the period under review was 0.4 MW per hour putting average utilization capacity below 25% of installed capacity. \nv. Monitoring and Supervision \nThe oversight committee had not been operationalized as required under the Implementation Agreement. There was no evidence that the various agencies had \nnominated representatives to constitute the oversight committee. Whereas Mott", "metadata": {"headings": [{"headings_0": {"content": "iv. Power Component", "page": 91, "level": 3}}, [{"headings_0": {"content": "v. Monitoring and Supervision", "page": 91, "level": 3}}], [{"headings_0": {"content": "v. Monitoring and Supervision", "page": 91, "level": 3}}], [{"headings_0": {"content": "nominated representatives to constitute the oversight committee. Whereas Mott", "page": 91, "level": 2}}]], "page": 91, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["**1.**", "Health", "Ministry of Health", "Rehabilitation and Expansion of Kayunga Hospital under KAYUP project", "1"], [null, null, null, "Rehabilitation and Expansion of Yumbe Hospital Under KAYUP project", "1"], [null, null, null, "Construction of Staff Houses in Selected Health Facilities In Seven Districts Of Karamoja Region i.e Kaabong, Kotido, Abim, Moroto, Napak, Amudat And Nakapiripirit Under The Karamoja Region Staff Housing Project (KRSHP)", "1"], ["**2.**", "Works", "Ministry of Works and Transport", "14 selected road and bridge projects.", "14"], [null, null, "Uganda  National Roads Authority", "13 selected road and bridge projects.", "13"], [null, null, "Civil Aviation Authority", "Design and Build Of Entebbe International Airport Upgrading And Expansion Project", "1"], [null, null, null, "Modification of The Passenger Terminal Building At Entebbe International Airport.", "1"], ["**3**", "Lands", "Ministry of Lands and Urban Development", "USMID-AF audit of infrastructure implemented by 22 Municipalities for the Financial year, 2016/17 (92 projects) and 2018/19 (100 projects). The report has been presented in the VFM section", "192"], [null, null, null, "USMID- AF Selected infrastructure projects in Four (4) municipalities for FY 2017/18 Ntungamo, Apac, Busia and Lugazi Municipalities. The report has been presented in the VFM section", "4"], ["Total", null, null, "", "**228**"]], "metadata": {"headings": [{"headings_0": {"content": "Table 27: Showing Summary of Engineering Audits undertaken", "page": 96, "level": 1}}], "page": 96, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["S/No", "Sector", "Entity", "Projects assessed", "No of Projects"], "type": "table"}}, {"content": "5.1 \nTechnical/Engineering Audit of the rehabilitation and expansion of Kayunga and Yumbe hospitals \nIn the financial year 2018/19, Ministry of Health implemented infrastructure projects worth USD.16,670,711 for Kayunga Hospital and USD.18,601,958 for Yumbe Hospital. \n84 \nAs part of the annual audit of the financial statements for the year ended 30th June 2019, these projects were selected for a technical /engineering audit. \nKey audit findings resulting from the engineering audit and corresponding recommendations resulting from the engineering audit for the Kayunga and Yumbe Hospital rehabilitation projects are presented below, detailed findings, quality results, quantity verification and pictures of defective works are presented in a separate report which has been issued on infrastructure component. \n5.1.1 Kayunga hospital \nThe rehabilitation and construction works of Kayunga hospital were contracted to Arab Contractors Osman Ahmed Osman at a contract price of USD.16,670,711 and supervised by Dar Engineering in association with Joadah Consult Ltd at a supervision cost of USD.1,433,803. At the time of audit in August 2019, the physical progress of the works was at 78.9% while the financial progress was at 39%. I observed the following: \na) Delayed handover of land for lagoon construction \nHandover of the land for rehabilitation and expansion of the lagoon was delayed causing delay in the commencement of works in this area of the project. By August 2018, only 35% of the required land had been handed over to the contractor to commence works. \nb) Inspection of works", "metadata": {"headings": [{"headings_0": {"content": "Table 27: Showing Summary of Engineering Audits undertaken", "page": 96, "level": 1}}, [{"headings_0": {"content": "Technical/Engineering Audit of the rehabilitation and expansion of Kayunga and Yumbe hospitals", "page": 96, "level": 8}}], [{"headings_0": {"content": "Technical/Engineering Audit of the rehabilitation and expansion of Kayunga and Yumbe hospitals", "page": 96, "level": 8}}], [{"headings_0": {"content": "Technical/Engineering Audit of the rehabilitation and expansion of Kayunga and Yumbe hospitals", "page": 96, "level": 8}}], [{"headings_0": {"content": "Technical/Engineering Audit of the rehabilitation and expansion of Kayunga and Yumbe hospitals", "page": 96, "level": 8}}], [{"headings_0": {"content": "Technical/Engineering Audit of the rehabilitation and expansion of Kayunga and Yumbe hospitals", "page": 96, "level": 8}}], [{"headings_0": {"content": "5.1.1 Kayunga hospital", "page": 97, "level": 3}}], [{"headings_0": {"content": "5.1.1 Kayunga hospital", "page": 97, "level": 3}}], [{"headings_0": {"content": "a) Delayed handover of land for lagoon construction", "page": 97, "level": 8}}], [{"headings_0": {"content": "a) Delayed handover of land for lagoon construction", "page": 97, "level": 8}}], [{"headings_0": {"content": "b) Inspection of works", "page": 97, "level": 3}}]], "page": 96, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["S/No", "Project", "Item", "% Increase"], ["**1**", "Rehabilitation/Upgrading of the Access Road(3.1km) to Busoga College Mwiri in Jinja and Paving the Parking Area at Central Materials Laboratory in Kireka Kampala", "Cut to Spoil", "561%"], [null, null, "Imported Subgrade Fill", "163.2%"], [null, null, "Stone Pitching", "31.2%"], ["**2**", "Rehabilitation of Bulucheke-Muchomo- Nyende Road", "Common excavation or cut to spoil of soft material", "161%"], [null, null, "Rock excavation or cut to spoil in rock", "2,456%"], [null, null, "Fill as instructed by the engineer", "197%"]], "metadata": {"headings": [{"headings_0": {"content": "Table 28: Showing Projects without adequate feasibility studies", "page": 99, "level": 1}}], "page": 99, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["column_0", "column_1", "column_2", "column_3"], "type": "table"}}, {"content": "During the physical site inspection of the works, I further observed poor adherence to road safety, environmental and social safeguards for some projects such as Kasaigi Bridge that had been opened to traffic despite the fact that guard/hand rails had not yet been installed, constructed diversion washed away at Kabindula swamp necessitating use of broken timber pieces for crossing, lack of traffic signage or diversions despite damping of gravel in different sections of Nyaruzigati-Kyapa-Kitabu Road in Kasese District, failure to undertake restoration of borrow pits for two projects, poor disposal of equipment fuel/oil at the yard of the contractor responsible for the construction of Kasaigi Bridge and construction of a sanitary facility beside the river at Kabindula swamp crossing. \nI advised the Accounting Officer to ensure that road safety, environmental and social safeguard measures are enforced on all projects. \n89 \ni) Physical Inspection of Works \nDuring the physical inspection of works, a number of observations were made that if not corrected could lead to the faster deterioration of the works and as such, would require corrective action prior to completion of the works. These are summarized below: \nTable 29: Showing findings from inspection of road works", "metadata": {"headings": [{"headings_0": {"content": "h) Implementation of Road Safety, Environmental and Social Safeguards", "page": 101, "level": 3}}, [{"headings_0": {"content": "h) Implementation of Road Safety, Environmental and Social Safeguards", "page": 101, "level": 3}}], [{"headings_0": {"content": "h) Implementation of Road Safety, Environmental and Social Safeguards", "page": 101, "level": 3}}], [{"headings_0": {"content": "i) Physical Inspection of Works", "page": 102, "level": 3}}], [{"headings_0": {"content": "i) Physical Inspection of Works", "page": 102, "level": 3}}], [{"headings_0": {"content": "Table 29: Showing findings from inspection of road works", "page": 102, "level": 1}}]], "page": 101, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["**1**", "Rehabilitation/Upgrading of the Access Road(3.1km) to Busoga College Mwiri in Jinja", "Bleeding, stripping, cracked access culvert, damaged stone pitching and end structures, pothole development"], ["**2**", "Rehabilitation of Runga-Waaki- Butiaba road in Hoima District (19.2km)", "Silted culverts, under scoured culvert apron, unconstructed end structures, washed off culvert backfill"], ["**3**", "Rehabilitation of Bulucheke- Muchomo-Nyende Road in Bududa District", "Gullies on carriageway, uninstalled culverts at water crossing points"], ["**4**", "Rehabilitation of Roads in Rubanda District", "Gullies, road edge breaks, washed off culvert backfill, unconstructed end structures, uninstalled culverts at water crossing points"], ["**5**", "Rehabilitation of Roads in Kasese Municipality", "Cracked culverts, washed off culvert backfill, poorly constructed end structures"], ["**6**", "Rehabilitation of Roads in Alebtong District", "Cracked culverts, broken end structures, washed off culvert backfill, silted culverts"], ["**7**", "Rehabilitation of Roads in Lira South", "Silted culverts, broken/cracked end structures,"], ["**8**", "Low Cost Sealing of Selected District Roads; Lot 1: in Kasese District", "Cracked culverts, culvert with exposed mesh, broken end structures"], ["**9**", "Low Cost Sealing of Selected District Roads; Lot 2: in Kasese District", "Broken culverts, damaged sub-base, silted culverts"], ["**10**", "Low Cost Sealing of Selected District Roads; Lot 6: In Kamuli District.", "Bleeding, broken end structures, broken and scoured aprons, Stripped capping layer along road carriageway, silted culverts"], ["**11**", "Low Cost Sealing of Selected District Roads; Lot 6: in Kamuli District", "Silted culverts, damaged culvert bases, washed off culvert backfill, damaged road base, damaged end structures"], ["**12**", "Construction of Gem Farm Bailey Bridge in Atiak, Amuru District", "Collapsed gabion at Abutment 2 RHS , Inadequate backfill at approach to the bridge (LHS) in the corner, Need for river training"], ["**13**", "Construction of Kisaigi Bridge in Kakumiro District Lot 1", "Honey combs, collapsing backfill, Crack at Abutment wall, Formwork left within the bridge structure at different locations"], ["**14**", "Construction of Kabindula Swamp Crossing in Kyankwanzi District Lot 20", "Extensive Honey combing, poor workmanship on concrete works"]], "metadata": {"headings": [{"headings_0": {"content": "Table 29: Showing findings from inspection of road works", "page": 102, "level": 1}}], "page": 102, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["S/No", "Road Project", "Observations"], "type": "table"}}, {"content": "The Accounting Officer indicated that contractors had been instructed to address the identified defects prior to issue of the practical completion certificate. \n90 \nI advised the Accounting Officer to ensure that all defects observed are rectified and in addition, the supervising team should thoroughly inspect the works prior to completion and ensure that all defects identified are rectified. \nj) Assessment of Quality of Works \nDuring the physical inspection, in-situ tests were undertaken to assess the quality of the works. The results obtained indicated that on some of the projects, some elements of the works did not meet the required specifications. \nTable 30: Showing results of assessment of quality of works", "metadata": {"headings": [{"headings_0": {"content": "Table 29: Showing findings from inspection of road works", "page": 102, "level": 1}}, [{"headings_0": {"content": "Table 29: Showing findings from inspection of road works", "page": 102, "level": 1}}], [{"headings_0": {"content": "Table 29: Showing findings from inspection of road works", "page": 102, "level": 1}}], [{"headings_0": {"content": "j) Assessment of Quality of Works", "page": 103, "level": 3}}], [{"headings_0": {"content": "j) Assessment of Quality of Works", "page": 103, "level": 3}}], [{"headings_0": {"content": "Table 30: Showing results of assessment of quality of works", "page": 103, "level": 1}}]], "page": 102, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["**1**", "Upgrading of Busoga College Mwiri Road", "DCP", "CBR - there are some weak points in the base layer on the right-hand side of the road"], ["**2**", "Construction of Kasaigi Bridge", "Rebound Hammer Test", "Concrete Compressive Strength of Wing Walls Kagadi Side LHS & RHS"], ["**3**", "Construction of Kabindula Swamp crossing", "", "Concrete compressive strength of Headwall (RHS), Headwall (LHS), Headwall (LHS), Wing wall (LHS), Headwall (RHS), Headwall (RHS), Headwall (LHS) at 0+170, 0+170, 0+255, 0+255, 0+215, 0+200, 0+200 respectively"]], "metadata": {"headings": [{"headings_0": {"content": "Table 30: Showing results of assessment of quality of works", "page": 103, "level": 1}}], "page": 103, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["S/No", "Road Project", "Test", "Failed Parameters"], "type": "table"}}, {"content": "2021. The progress report for June 2019 shows that the works had achieved only 43.01% physical progress against an elapsed project time of 60.14% which translates into 10 months of delay. It was also noted that 100% completion of the New Cargo complex was to be achieved by 2nd Dec 2018 (according baseline program - which has never been updated). However by June 2019 progress of works achieved was only 80.45%. This is however is on the critical path of commencement of construction of the Passenger Terminal Building (PTB) which was expected to start on 3rd Dec 2018 with the demolition of existing cargo building; this activity had not started at the time of audit and may affect the completion time of the project.", "metadata": {"headings": [{"headings_0": {"content": "e) Delayed implementation of works", "page": 104, "level": 8}}], "page": 105, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "list"}}, {"content": [["**1**", "Soroti - Katakwi - Akisim road", "CCCC", "304,000,000,000", ""], ["**2**", "Bumbobi - Lwakhakha road", "China  State Engineering  Ltd", "140,724,000,000", ""], ["**3**", "Nakalama - Tirinyi - Mbale road", "Dott Services", "135,370,000,000", ""], ["**4**", "Musita - Lumino / Busia - Majanji road", "China Railway 18th Bureau (Group) Co. Ltd", "206,784,423,053", ""], ["**5**", "Kampala  Northern bypass - Phase 2", "M/s Mota Engil Engeharia E Construcao", "0", "106,480,753.07"], ["**6**", "Ishaka - Katunguru road", "M/s Mota Engil Engeharia E Construcao Africa, S.A", "103,852,641,242", ""], ["**7**", "Kyenjojo - Fort Portal road/ China Wu Yi Co ltd", "", "71,435,766,901", ""], ["**8**", "Hoima - Butiaba - Wanseko road", "Chongqing International Construction Corporation", "337,440,000,000", ""], ["**9**", "Kabong bridge", "Terrain Services", "13,321,891,188", ""], ["**10**", "Lopei bridge", "Terrain Services", "12,468,2.82,364", ""], ["**11**", "Waiga bridge, Ruzairwe bridge, Nsongi bridge, Mpondwe bridge", "Armpass", "46,000,000,000", ""], ["", "**TOTAL**", "", "**1,358,928,735,218.8**", "**106,480,753.07**"]], "metadata": {"headings": [{"headings_0": {"content": "Table 31: Development and rehabilitation of projects", "page": 108, "level": 1}}], "page": 108, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["S/No", "Contract road name/Contractor", "Contractor", "Contract Price (UGX)", "Euro"], "type": "table"}}, {"content": "The sample also included two maintenance projects are shown in tables below: \n96 \nTable 32: Showing maintenance projects at Jinja Station", "metadata": {"headings": [{"headings_0": {"content": "Table 31: Development and rehabilitation of projects", "page": 108, "level": 1}}, [{"headings_0": {"content": "Table 31: Development and rehabilitation of projects", "page": 108, "level": 1}}], [{"headings_0": {"content": "Table 32: Showing maintenance projects at Jinja Station", "page": 109, "level": 1}}]], "page": 108, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["**1**", "Mechanized Maintenance of Selected Unpaved Roads under Framework Contracts for 3 Years Totaling to 487.2Km. Call off order 3: Kaitabawala- Kisozi-Busota (58.2Km).", "Rock trust contractors (U) Limited", "33,860,159,881"], ["", "**Total**", "", "**33,860,159,88 1**"]], "metadata": {"headings": [{"headings_0": {"content": "Table 32: Showing maintenance projects at Jinja Station", "page": 109, "level": 1}}], "page": 109, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["S/N", "Project name", "Contractor", "Contract Price (UGX)"], "type": "table"}}, {"content": "Table 33: Showing Maintenance projects at Hoima station", "metadata": {"headings": [{"headings_0": {"content": "Table 33: Showing Maintenance projects at Hoima station", "page": 109, "level": 1}}], "page": 109, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "heading"}}, {"content": [["**1**", "Bukomero-Dwaniro-Kyankwanzi (68.2Km), Kabwoya-Kituti (42Km), Kiziranfumbi-Kabaale  (25.7Km) ,Buseruka-Tonya (29.5Km)", "Lusa Construction & Engineering Co. Ltd", "3,987,851,201"], ["", "**Total**", "", "**3,987,851,201**"]], "metadata": {"headings": [{"headings_0": {"content": "Table 33: Showing Maintenance projects at Hoima station", "page": 109, "level": 1}}], "page": 109, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["S/N", "Contract name", "Contractor", "Contract Price (UGX)"], "type": "table"}}, {"content": "Below is a summary of key findings and observations resulting from the engineering audit. I have also issued a separate technical report containing the detailed results of the Engineering audit. \nKey Audit Findings a) Inadequate designs and planning \nSeveral omissions in completed designs were noted on the sampled projects which, if not addressed, will compromise the safety during use and reduce the design life of the facilities. For Bumbobi-Lwakhakha project, the design left out checks on serviceability requirements of the box culverts; while Waiga and Waaki Bridges along Hoima-Butiaba- wanseko, the design initially had inadequate openings for the design flow rates. For Ishaka-Katunguru and Kyenjojo-Fort Portal rehabilitation projects, pavement evaluations and feasibility studies were done after the Contractor had commenced. The design and build bridges were also initiated without concept designs. \nb) Underestimation of quantities \nUnderestimation of quantities was noted in the following projects; \ni. Hoima-Butiaba-Wanseko contract amount rose by USD 12,095,257.87 for increase \nin quantities (over 800% for excavating in soft material, 138% for rock excavation, 338% for excavation in swamps and 1300% for top soiling among others)  \nii. Soroti-Katakwi-Akisim had several quantities rose by over 1000% (for example removal of trees of girth between 1-2m, common excavation to spoil for earthworks, excavations to spoil for structures, rock fill for structures and new box culverts) even though the contract sum was not exceeded. \n97 \niii. Musiita-Lumino-Majanji had quantities rise by over 200% for stone pitching, vehicular kerbs, removal of top soil and 1200mm diameter pipe culverts among others even though the contract sum was not exceeded.  \niv. Bumbobi-Lwakhakha had several quantities rise by over 200% (for example excavation in soft material for drainage, concrete kerbs, fill using rock among others), though the contract sum was not exceeded. \nc) Inclusion of unnecessary items in contracts leading to increase in contract amounts \nUnnecessary items were included in contracts for 5 projects which led to increased the contract prices by UGX.6,710,431,291 (VAT exclusive) as shown in below; This was attributed to failure to undertake due diligence on the procurement (bid preparation) and contracting process. \nTable 34: Showing Unnecessary items in BOQs", "metadata": {"headings": [{"headings_0": {"content": "Table 33: Showing Maintenance projects at Hoima station", "page": 109, "level": 1}}, [{"headings_0": {"content": "Key Audit Findings a) Inadequate designs and planning", "page": 109, "level": 8}}], [{"headings_0": {"content": "Key Audit Findings a) Inadequate designs and planning", "page": 109, "level": 8}}], [{"headings_0": {"content": "b) Underestimation of quantities", "page": 109, "level": 3}}], [{"headings_0": {"content": "Underestimation of quantities was noted in the following projects;", "page": 109, "level": 2}}], [{"headings_0": {"content": "i. Hoima-Butiaba-Wanseko contract amount rose by USD 12,095,257.87 for increase", "page": 109, "level": 4}}], [{"headings_0": {"content": "i. Hoima-Butiaba-Wanseko contract amount rose by USD 12,095,257.87 for increase", "page": 109, "level": 4}}], [{"headings_0": {"content": "i. Hoima-Butiaba-Wanseko contract amount rose by USD 12,095,257.87 for increase", "page": 109, "level": 4}}], [{"headings_0": {"content": "i. Hoima-Butiaba-Wanseko contract amount rose by USD 12,095,257.87 for increase", "page": 109, "level": 4}}], [{"headings_0": {"content": "c) Inclusion of unnecessary items in contracts leading to increase in contract amounts", "page": 110, "level": 8}}], [{"headings_0": {"content": "c) Inclusion of unnecessary items in contracts leading to increase in contract amounts", "page": 110, "level": 8}}], [{"headings_0": {"content": "Table 34: Showing Unnecessary items in BOQs", "page": 110, "level": 1}}]], "page": 109, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["**1**", "Lopei bridge", "Contingency, relocation of services, special tests by Engineer, excess material", "1,255,802,100"], ["**2**", "Lopei Bridge", "Guardrails (higher rate)", "779,200,000"], ["**3**", "Kaabong bridge", "Contingency", "1,077,123,580"], ["**4**", "Mpondwe, Nsongi, Ruzairwe and Mpanga 6", "Contingency", "3,373,105,611"], ["**5**", "Mpondwe, Nsongi, Ruzairwe and Mpanga 6", "Seismic restraints", "225,200,000"], ["**Total**", null, null, "**6,710,431,291**"]], "metadata": {"headings": [{"headings_0": {"content": "Table 34: Showing Unnecessary items in BOQs", "page": 110, "level": 1}}], "page": 110, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["SN", "Project name", "Unnecessary items", "Cost (UGX)"], "type": "table"}}, {"content": "d) Delayed handover of the sites to the contractor \nSeveral sites were not handed over to the Contractor in time which led to failure to deliver on project milestones as contractually agreed at contract signing. Generally, the Contractors failed to handover 30% of completed continuous project lengths at the agreed time (60% of project time). Delayed hand over of sites resulted into extension of time leading to additional time-related costs for example Bumbobi-Lwakhakha where the time related costs have exceeded the initial budget by over UGX.500 million. \ne) \nAvoidable interest on advance payment \nSeveral project contracts had provisions for advance payments to Contractors which were also categorized as (\u201cinterest free loans\u201d) to assist them with cash flow support and mobilization. The same contracts allow the contractor to charge interest for delayed payment of the advance payment by the client (UNRA). In my opinion, this contractual requirement is unfair to the client given that it is meant to support the Contractor. The \n98 \ntwo projects shown in Table below had an interest claim of UGX.424,035,008 and USD 188,969.9 certified. \nTable 35: Showing Avoidable Interest on advance payments", "metadata": {"headings": [{"headings_0": {"content": "d) Delayed handover of the sites to the contractor", "page": 110, "level": 8}}, [{"headings_0": {"content": "d) Delayed handover of the sites to the contractor", "page": 110, "level": 8}}], [{"headings_0": {"content": "e)", "page": 110, "level": 3}}], [{"headings_0": {"content": "Avoidable interest on advance payment", "page": 110, "level": 3}}], [{"headings_0": {"content": "Avoidable interest on advance payment", "page": 110, "level": 3}}], [{"headings_0": {"content": "Avoidable interest on advance payment", "page": 110, "level": 3}}], [{"headings_0": {"content": "Avoidable interest on advance payment", "page": 110, "level": 3}}], [{"headings_0": {"content": "Table 35: Showing Avoidable Interest on advance payments", "page": 111, "level": 1}}]], "page": 110, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "heading"}}, {"content": [["**1**", "Bumbobi- Lwakhakha", "178,504,035", "172,534.16"], ["**2**", "Kyenjojo- FortPortal", "245,530,973", "16,435.74"], ["Total", null, "**424,035,008**", "**188,969.9**"]], "metadata": {"headings": [{"headings_0": {"content": "Table 35: Showing Avoidable Interest on advance payments", "page": 111, "level": 1}}], "page": 111, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["SN", "Project", "Interest (UGX)", "Interest (USD)"], "type": "table"}}, {"content": "f) Delayed payments to the contractors \nIt was observed that the contractors\u2019 payments were delayed in all cases resulting in \ninterest claims on the delayed payments. For the two projects shown in table below, a total of UGX.2,157,730,017.39 and USD 691,479.07 had been claimed and will be paid as interest on delayed payments. \nTable 36: Showing delayed Payments to contractors", "metadata": {"headings": [{"headings_0": {"content": "f) Delayed payments to the contractors", "page": 111, "level": 8}}, [{"headings_0": {"content": "It was observed that the contractors\u2019 payments were delayed in all cases resulting in", "page": 111, "level": 2}}], [{"headings_0": {"content": "It was observed that the contractors\u2019 payments were delayed in all cases resulting in", "page": 111, "level": 2}}], [{"headings_0": {"content": "Table 36: Showing delayed Payments to contractors", "page": 111, "level": 1}}]], "page": 111, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "heading"}}, {"content": [["**1**", "Soroti- Katakwi- Akisim", "407,287,185", "64,255.07"], ["**2**", "Musiita- Lumino- Majanji", "1,750,442,832.39", "627,224"], ["Total", null, "**2,157,730,017.39**", "**691,479.07**"]], "metadata": {"headings": [{"headings_0": {"content": "Table 36: Showing delayed Payments to contractors", "page": 111, "level": 1}}], "page": 111, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["SN", "Project", "Interest (UGX)", "Interest (USD)"], "type": "table"}}, {"content": "g) Increase in project costs due to payments in foreign currencies \nIt was observed that the fluctuation of the Ugandan shilling against the foreign currencies resulted in an increase of the project cost by over UGX 10 billion on only four projects (Table as shown below). Such increase in project costs impact on overall project implementation as it is sometimes not budgeted for. \nTable 37: Showing increase in project costs due to payments in foreign currencies", "metadata": {"headings": [{"headings_0": {"content": "g) Increase in project costs due to payments in foreign currencies", "page": 111, "level": 8}}, [{"headings_0": {"content": "g) Increase in project costs due to payments in foreign currencies", "page": 111, "level": 8}}], [{"headings_0": {"content": "Table 37: Showing increase in project costs due to payments in foreign currencies", "page": 111, "level": 1}}]], "page": 111, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "heading"}}, {"content": [["**1**", "Bumbobi - Lwakhakha road", "1,554,429,739.13"], ["**2**", "Kyenjojo-FortPortal", "8,270,932,974.582"], ["**3**", "Lopei Bridge", "157,278,932.41"], ["**4**", "Kaabong bridge", "94,585,172"], ["**Total**", null, "**10,077,226,818.122**"]], "metadata": {"headings": [{"headings_0": {"content": "Table 37: Showing increase in project costs due to payments in foreign currencies", "page": 111, "level": 1}}], "page": 111, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["SN", "Project name", "Net increase due to FX"], "type": "table"}}, {"content": "h) Overpayments on excess quantities \nSeveral overpayments were noted on 4 projects resulting from certification of more quantities than had been executed by the Contractors. This led to an overpayment of UGX.144,809,402.26 as summarized in Table 12 below: \n99 \nTable 38: Showing overpayments on excess quantities", "metadata": {"headings": [{"headings_0": {"content": "h) Overpayments on excess quantities", "page": 111, "level": 3}}, [{"headings_0": {"content": "h) Overpayments on excess quantities", "page": 111, "level": 3}}], [{"headings_0": {"content": "h) Overpayments on excess quantities", "page": 111, "level": 3}}], [{"headings_0": {"content": "Table 38: Showing overpayments on excess quantities", "page": 112, "level": 1}}]], "page": 111, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "heading"}}, {"content": [["**1**", "Musiita-Lumino-Majanji", "44,353,281"], ["**2**", "Bumbobi - Lwakhakha road", "3,072,021.26"], ["**3**", "Kaabong bridge", "8,521,500"], ["**4**", "Waiga bridge, Ruzairwe bridge, Nsongi bridge, Mpondwe bridge", "88,862,600"], ["Total", null, "**144,809,402.26**"]], "metadata": {"headings": [{"headings_0": {"content": "Table 38: Showing overpayments on excess quantities", "page": 112, "level": 1}}], "page": 112, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["SN", "Project name", "Overpayment - UGX"], "type": "table"}}, {"content": "i) Site inspections \nThe sites were inspected between 28th October 2019 and 30th November 2019 and were found at different levels of progress. Mostly, the Contractors were active on site on the development and rehabilitation projects. The Contractors working on Kaabong, Lopei and Ruzairwe bridge locations had demobilized. They however had outstanding snags to be rectified as detailed in the report and summarized in table below; \nTable 39: Showing Outstanding defects", "metadata": {"headings": [{"headings_0": {"content": "i) Site inspections", "page": 112, "level": 3}}, [{"headings_0": {"content": "i) Site inspections", "page": 112, "level": 3}}], [{"headings_0": {"content": "Table 39: Showing Outstanding defects", "page": 112, "level": 1}}]], "page": 112, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "heading"}}, {"content": [["**1**", "Soroti - Katakwi \\- Akisim road", "Stripping at various sections, scouring of embankment, no rounding on terminal end of walkways, eroded and silted stone pitching works, spot honey combs at box and culvert wing walls, full flow for culverts, vandalism of reflectors and hazard signs, missing bolts on guard rails and omission anti-theft protection on bolts and nuts on some guard rails."], ["**2**", "Bumbobi  - Lwakhakha road", "Damage to the road, bleeding, stripping, cracks in box culverts, honey combing in box culverts, different levels between invert of access culverts and side drains, siltation of culverts, and damage at stone pitched sections"], ["**3**", "Hoima - Butiaba \\- Wanseko road", "Dirty and untidy surface and surrounding waiting to receive apron concrete, Honeycombs on the box culvert wall"], ["**4**", "Musita - Lumino / Busia - Majanji road", "Bleeding, eroded access edge, scouring and failed stone pitching works, silted channels, eroded embankment, uneven spacing of U cover drains, honey combs on culvert walls, blocked culverts, irregular alignment of guard rails and poor overlap of road marking"], ["**5**", "Kyenjojo - Fort Portal road", "Vandalism of reflector plates on guard rails, Honey combing at the bottom of concrete lined drains, vegetation overgrowth on some sections of stone pitched sections, heavy siltation at some locations for temporary access by residents"], ["**6**", "Ishaka  - Katunguru road", "Spot locations of silting in the stone pitched drains and culverts, Erosion of slopes at some locations, Vegetation growth at some stone pitching and culvert locations, Damaged stone pitching works in some sections."], ["**7**", "Lopei bridge", "Camber loss on the road surface, spot pot holes, missing bolts, rusting of some bolts, The lower end of the embankment that is lower than the flood level"], ["**8**", "Kaabong bridge", "Failed gabion/protection works- U/S of Kapedo side, Cracks in stone pitching mortar, Eroded approach Embankment on Kapedo side, Pothole on the approach slab area"]], "metadata": {"headings": [{"headings_0": {"content": "Table 39: Showing Outstanding defects", "page": 112, "level": 1}}], "page": 112, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["S/No", "Contract road name", "Defects noted"], "type": "table"}}, {"content": "100", "metadata": {"headings": [{"headings_0": {"content": "Table 39: Showing Outstanding defects", "page": 112, "level": 1}}], "page": 112, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["**9**", "Waiga bridge, Ruzairwe bridge, Nsongi bridge, Mpondwe bridge", "**Ruzairwe;** Guardrail end details not as per drawing, Rusted guardrail posts and bolts, Missing hazard sign plate on Pacwa side, Hazard sign installed in wrong location; **Mpondwe;** Hairline cracks on walkway slab, Short and inadequate gabion works on both downstream of Uganda and DR Congo side: **Nsongi;** Hairline cracks on walkway slab, Eroded banks at mitre drain location;"], ["**10**", "Kaitabawala- Kisozi-Busota (58.2Km).", "Slippery sections, damaged sections, deep potholes, need for culverts at some low locations"], ["**11**", "Bukomero- Dwaniro- Kyankwanzi (68.2Km), Kabwoya-Kituti (42Km), Kiziranfumbi- Kabaale (25.7Km) ,Buseruka- Tonya (29.5Km)", "**Buseruka-Tonya:** Eroded road sections, vegetation overgrowth in side drains"]], "metadata": {"headings": [{"headings_0": {"content": "Table 39: Showing Outstanding defects", "page": 112, "level": 1}}], "page": 113, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["S/No", "Contract road name", "Defects noted"], "type": "table"}}, {"content": "I advised the Accounting Officer to pursue the recommendations as indicated in the individual reports. \n5.5 \nTechnical/Engineering Audit of the construction of staff houses in selected health facilities in seven districts of Karamoja Region I.E Kaabong, Kotido, Abim, Moroto, Napak, Amudat and Nakapiripirit under the Karamoja Region Staff Housing Project (KRSHP) \nIn the financial year 2018/19, Ministry of Health implemented the above infrastructure project worth USD.5,592,885.18 (18% VAT Inclusive). \nKey audit findings resulting from the engineering audit and corresponding recommendations are presented below; \na) Delayed Grant disbursements before project completion period \nThe Government of Uganda signed a Grant Financing Agreement amounting to Euro.4,200,200 with the Government of the Italian Republic on 23rd December 2010, to be disbursed in three instalments over a three-year period with a purpose of giving financial support to the Health systems strengthening for Karamoja Region. \nI noted that that the financing agreement subsequently expired and resulted in delay to dispatch the second and third instalments of Euro.1,400,000 each from Government of Italy impacting on execution of the works. A second financing agreement was agreed and subsequently the second instalment was disbursed and received on 22nd December 2017, after expiry of the contract. The third instalment was disbursed from Italy on \n101 \nMay 2019 and credited on the accounts of the project on 6th June 2019. However, by that time, the contractor had long abandoned works which were to have been completed by 19th December 2017. \nb) Delayed Commencement of works by the contractor \nAs a result of delayed grant disbursements, there was delayed commencement of works by the contractor by over 119 days (over 3months). \nc) Delayed procurement of the Consultant \nThe contractor for the civil works was procured on 8th February 2016 while the commencement date of the project was 20th June 2016. However, the consultancy contract was signed on 14th September 2016 implying that the consultant had been procured after works had commenced (delay of 86 days (over 2.8 months) and so the consultant was on site without a legal contract. \nd) Delayed Implementation of works \nThe works commenced on 20th June 2016 and were to be completed by 19th December", "metadata": {"headings": [{"headings_0": {"content": "Table 39: Showing Outstanding defects", "page": 112, "level": 1}}, [{"headings_0": {"content": "Table 39: Showing Outstanding defects", "page": 112, "level": 1}}], [{"headings_0": {"content": "Technical/Engineering Audit of the construction of staff houses in selected health facilities in seven districts of Karamoja Region I.E Kaabong, Kotido, Abim, Moroto, Napak, Amudat and Nakapiripirit under the Karamoja Region Staff Housing Project (KRSHP)", "page": 113, "level": 8}}], [{"headings_0": {"content": "Technical/Engineering Audit of the construction of staff houses in selected health facilities in seven districts of Karamoja Region I.E Kaabong, Kotido, Abim, Moroto, Napak, Amudat and Nakapiripirit under the Karamoja Region Staff Housing Project (KRSHP)", "page": 113, "level": 8}}], [{"headings_0": {"content": "Technical/Engineering Audit of the construction of staff houses in selected health facilities in seven districts of Karamoja Region I.E Kaabong, Kotido, Abim, Moroto, Napak, Amudat and Nakapiripirit under the Karamoja Region Staff Housing Project (KRSHP)", "page": 113, "level": 8}}], [{"headings_0": {"content": "a) Delayed Grant disbursements before project completion period", "page": 113, "level": 8}}], [{"headings_0": {"content": "a) Delayed Grant disbursements before project completion period", "page": 113, "level": 8}}], [{"headings_0": {"content": "a) Delayed Grant disbursements before project completion period", "page": 113, "level": 8}}], [{"headings_0": {"content": "a) Delayed Grant disbursements before project completion period", "page": 113, "level": 8}}], [{"headings_0": {"content": "a) Delayed Grant disbursements before project completion period", "page": 113, "level": 8}}], [{"headings_0": {"content": "b) Delayed Commencement of works by the contractor", "page": 114, "level": 8}}], [{"headings_0": {"content": "b) Delayed Commencement of works by the contractor", "page": 114, "level": 8}}], [{"headings_0": {"content": "c) Delayed procurement of the Consultant", "page": 114, "level": 8}}], [{"headings_0": {"content": "c) Delayed procurement of the Consultant", "page": 114, "level": 8}}], [{"headings_0": {"content": "d) Delayed Implementation of works", "page": 114, "level": 3}}], [{"headings_0": {"content": "d) Delayed Implementation of works", "page": 114, "level": 3}}]], "page": 113, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": "2017. The review of the annual report - progress of works (2017/2018) showed that the works had achieved 61.60% physical progress by the time the contract expired. A Letter dated 27th November,2017 indicated that the progress of works was affected by delay in payments to the contractor which led to two stoppages with the second stoppage starting on 6th November, 2017 till the contract expired. At the time of audit in August and September 2019, works had been abandoned as neither the contractor nor supervising consultant was at site because their contracts had all expired.", "metadata": {"headings": [{"headings_0": {"content": "d) Delayed Implementation of works", "page": 114, "level": 3}}], "page": 114, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "list"}}, {"content": "e) Expired guarantees and all risk policies \nAll the contractor\u2019s guarantees and insurance policies expired and there was no evidence at the time of audit that they had been renewed. The contract of the contractor expired on 19th December 2017 and by the time of contract expiry; only USD.268,330.75 of the USD.1,118,577.03 advanced to the contractor had been recovered in IPC No.6. Since the advance payment guarantee also expired, this puts \nthe Government at a risk of losing USD.850,246 if the contractor doesn\u2019t get a new \ncontract to execute the remaining works. \nf) Delays in release of Government Counterpart financing \nGoU did not provide counterpart funding of UGX.4,596,698,646. Details of previous payments indicate that all payments to the contractor have been made using the grant funds, yet part of the GOU funding was to cater for the project VAT component. The GoU has provided only UGX.280,000,000 as per the performance report. \ng) Delayed payment of IPCs \nA review of the payment certificates revealed that all the IPCs were not paid within the stipulated time period as provided for in the contract with h IPC No 7 submitted on 10th November 2017 yet to be paid, \n102 \nDelays in payments to the contractor lead to disruptions of contractor cash flow and affects ability of the contractor to execute works efficiently. \nh) Quantity verification \nSample items of executed works were measured at Kotido, Napak, Amudat, Abim and Moroto Health facilities in the presence of the District Health Officers (DHOs) and compared with certified quantities in interim payment certificates for which payment was made. It was noted that there was an overpayment for unexecuted works worth \nUSD.92,146. \nTable 40: Showing Overpayments on the project for construction of staff houses in selected health facilities", "metadata": {"headings": [{"headings_0": {"content": "e) Expired guarantees and all risk policies", "page": 114, "level": 8}}, [{"headings_0": {"content": "e) Expired guarantees and all risk policies", "page": 114, "level": 8}}], [{"headings_0": {"content": "the Government at a risk of losing USD.850,246 if the contractor doesn\u2019t get a new", "page": 114, "level": 2}}], [{"headings_0": {"content": "the Government at a risk of losing USD.850,246 if the contractor doesn\u2019t get a new", "page": 114, "level": 2}}], [{"headings_0": {"content": "f) Delays in release of Government Counterpart financing", "page": 114, "level": 8}}], [{"headings_0": {"content": "f) Delays in release of Government Counterpart financing", "page": 114, "level": 8}}], [{"headings_0": {"content": "g) Delayed payment of IPCs", "page": 114, "level": 3}}], [{"headings_0": {"content": "g) Delayed payment of IPCs", "page": 114, "level": 3}}], [{"headings_0": {"content": "g) Delayed payment of IPCs", "page": 114, "level": 3}}], [{"headings_0": {"content": "g) Delayed payment of IPCs", "page": 114, "level": 3}}], [{"headings_0": {"content": "h) Quantity verification", "page": 115, "level": 3}}], [{"headings_0": {"content": "h) Quantity verification", "page": 115, "level": 3}}], [{"headings_0": {"content": "USD.92,146.", "page": 115, "level": 3}}], [{"headings_0": {"content": "Table 40: Showing Overpayments on the project for construction of staff houses in selected health facilities", "page": 115, "level": 1}}]], "page": 114, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "heading"}}, {"content": [["**1**", "Amudat and Moroto", "11,408.38"], ["**2**", "Kotido", "32,430.53"], ["**3**", "Napak", "28,038.30"], ["**4**", "Abim", "20,268.80"], ["", "**Total**", "**92,146.01**"]], "metadata": {"headings": [{"headings_0": {"content": "Table 40: Showing Overpayments on the project for construction of staff houses in selected health facilities", "page": 115, "level": 1}}], "page": 115, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["S No", "District", "Amount Overpaid (USD)"], "type": "table"}}, {"content": "2019. Of these, 94.3% were made by UMEME and UEDCL. The SPs accounted for only", "metadata": {"headings": [{"headings_0": {"content": "ii.", "page": 121, "level": 2}}], "page": 121, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "list"}}, {"content": [["**1**", "**Buvuma DLG**", "**64,557,081**", "**64,557,081**", "**-**", "**8,452,682,816**", "**8,452,682,816**", "**-**", "**1,437,885,439**", "**1,157,058,269**", "**(280,827,170)**", "**10,262,302,270**", "**10,262,302,270**", "**-**", "**19,524,305**", "**19,524,305**", "**-**", "**749,134,835**", "**1,004,697,239**", "**255,562,404**", "**749,134,835**", "**1,004,697,239**", "**255,562,404**", "**(170,269,584)**", "", "**-**", "**-**", "**-**"], ["**2**", "**Kapchorwa DLG(HI)**", "**252,903,737**", "**252,903,737**", "**-**", "**13,143,950,303**", "**13,143,950,303**", "**-**", "**1,283,441,411**", "**1,283,441,411**", "**-**", "**14,678,002,743**", "**14,737,217,587**", "**(59,214,844)**", "**97,376,816**", "**97,376,816**", "**-**", "**742,197,008**", "**742,197,008**", "**-**", "**695,621,729**", "**695,621,729**", "**-**", "**-**", "", "**311,816,647**", "**311,816,647**", "**-**"], ["**3**", "**Bukomansimbi DLG**", "**145,092,353**", "**145,092,353**", "**-**", "**13,175,303,103**", "**13,175,303,103**", "**-**", "**1,592,115,707**", "**1,592,115,707**", "**-**", "**15,022,441,276**", "**16,161,636,323**", "**(1,139,195,047)**", "**593,588,707**", "**593,588,707**", "**-**", "**845,663,073**", "**839,163,073**", "**6,500,000**", "**1,031,926,837**", "**1,025,426,837**", "**6,500,000**", "**-**", "**-**", "**413,134,531**", "**413,134,531**", "**-**"]], "metadata": {"headings": [{"headings_0": {"content": "iv. Accumulation of Payables v. Accumulation of Receivables", "page": 126, "level": 4}}], "page": 127, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Ref.", "DISTRICT", "Local Revenue per Separate AFS", "Local Revenue Per Consolidated FS", "Variance", "Government Grants per Separate AFS", "Government Grants Per Consolidated FS", "variance", "transfers from other govt units SAFS", "transfers from other govt units CS", "Variance", "Expenditure as per separate AFS", "Expenditure Per Consolidated FS", "Variance", "Cash & Cash equivalents per separate AFS", "Cash & Cash equivalents per Consolidation schedule", "Cash & Cash equivalents - Variance", "Receivables -SAFS", "Receivables -CS", "Variance", "Payables - SAFS", "Payables -CS", "Payables - Variance", "SOCE (Adjustments to opening balances - SAFS", "SOCE (Adjustments to opening balances - Variance", "Pensions& gratuity SFAS", "Pensions& gratuity CS", "Variance"], "type": "table"}}, {"content": [["**1**", "**Buvuma DLG**", "**64,557,081**", "**64,557,081**", "**-**", "**8,452,682,816**", "**8,452,682,816**", "**-**", "**1,437,885,439**", "**1,157,058,269**", "**(280,827,170)**", "**10,262,302,270**", "**10,262,302,270**", "**-**", "**19,524,305**", "**19,524,305**", "**-**", "**749,134,835**", "**1,004,697,239**", "**255,562,404**", "**749,134,835**", "**1,004,697,239**", "**255,562,404**", "**(170,269,584)**", "", "**-**", "**-**", "**-**"], ["**2**", "**Kapchorwa DLG(HI)**", "**252,903,737**", "**252,903,737**", "**-**", "**13,143,950,303**", "**13,143,950,303**", "**-**", "**1,283,441,411**", "**1,283,441,411**", "**-**", "**14,678,002,743**", "**14,737,217,587**", "**(59,214,844)**", "**97,376,816**", "**97,376,816**", "**-**", "**742,197,008**", "**742,197,008**", "**-**", "**695,621,729**", "**695,621,729**", "**-**", "**-**", "", "**311,816,647**", "**311,816,647**", "**-**"], ["**3**", "**Bukomansimbi DLG**", "**145,092,353**", "**145,092,353**", "**-**", "**13,175,303,103**", "**13,175,303,103**", "**-**", "**1,592,115,707**", "**1,592,115,707**", "**-**", "**15,022,441,276**", "**16,161,636,323**", "**(1,139,195,047)**", "**593,588,707**", "**593,588,707**", "**-**", "**845,663,073**", "**839,163,073**", "**6,500,000**", "**1,031,926,837**", "**1,025,426,837**", "**6,500,000**", "**-**", "**-**", "**413,134,531**", "**413,134,531**", "**-**"]], "metadata": {"headings": [{"headings_0": {"content": "iv. Accumulation of Payables v. Accumulation of Receivables", "page": 126, "level": 4}}], "page": 127, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Ref.", "DISTRICT", "Local Revenue per Separate AFS", "Local Revenue Per Consolidated FS", "Variance", "Government Grants per Separate AFS", "Government Grants Per Consolidated FS", "variance", "transfers from other govt units SAFS", "transfers from other govt units CS", "Variance", "Expenditure as per separate AFS", "Expenditure Per Consolidated FS", "Variance", "Cash & Cash equivalents per separate AFS", "Cash & Cash equivalents per Consolidation schedule", "Cash & Cash equivalents - Variance", "Receivables -SAFS", "Receivables -CS", "Variance", "Payables - SAFS", "Payables -CS", "Payables - Variance", "SOCE (Adjustments to opening balances - SAFS", "SOCE (Adjustments to opening balances - Variance", "Pensions& gratuity SFAS", "Pensions& gratuity CS", "Variance"], "type": "table"}}, {"content": [["**1**", "**Buvuma DLG**", "**64,557,081**", "**64,557,081**", "**-**", "**8,452,682,816**", "**8,452,682,816**", "**-**", "**1,437,885,439**", "**1,157,058,269**", "**(280,827,170)**", "**10,262,302,270**", "**10,262,302,270**", "**-**", "**19,524,305**", "**19,524,305**", "**-**", "**749,134,835**", "**1,004,697,239**", "**255,562,404**", "**749,134,835**", "**1,004,697,239**", "**255,562,404**", "**(170,269,584)**", "", "**-**", "**-**", "**-**"], ["**2**", "**Kapchorwa DLG(HI)**", "**252,903,737**", "**252,903,737**", "**-**", "**13,143,950,303**", "**13,143,950,303**", "**-**", "**1,283,441,411**", "**1,283,441,411**", "**-**", "**14,678,002,743**", "**14,737,217,587**", "**(59,214,844)**", "**97,376,816**", "**97,376,816**", "**-**", "**742,197,008**", "**742,197,008**", "**-**", "**695,621,729**", "**695,621,729**", "**-**", "**-**", "", "**311,816,647**", "**311,816,647**", "**-**"], ["**3**", "**Bukomansimbi DLG**", "**145,092,353**", "**145,092,353**", "**-**", "**13,175,303,103**", "**13,175,303,103**", "**-**", "**1,592,115,707**", "**1,592,115,707**", "**-**", "**15,022,441,276**", "**16,161,636,323**", "**(1,139,195,047)**", "**593,588,707**", "**593,588,707**", "**-**", "**845,663,073**", "**839,163,073**", "**6,500,000**", "**1,031,926,837**", "**1,025,426,837**", "**6,500,000**", "**-**", "**-**", "**413,134,531**", "**413,134,531**", "**-**"]], "metadata": {"headings": [{"headings_0": {"content": "iv. Accumulation of Payables v. Accumulation of Receivables", "page": 126, "level": 4}}], "page": 127, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Ref.", "DISTRICT", "Local Revenue per Separate AFS", "Local Revenue Per Consolidated FS", "Variance", "Government Grants per Separate AFS", "Government Grants Per Consolidated FS", "variance", "transfers from other govt units SAFS", "transfers from other govt units CS", "Variance", "Expenditure as per separate AFS", "Expenditure Per Consolidated FS", "Variance", "Cash & Cash equivalents per separate AFS", "Cash & Cash equivalents per Consolidation schedule", "Cash & Cash equivalents - Variance", "Receivables -SAFS", "Receivables -CS", "Variance", "Payables - SAFS", "Payables -CS", "Payables - Variance", "SOCE (Adjustments to opening balances - SAFS", "SOCE (Adjustments to opening balances - Variance", "Pensions& gratuity SFAS", "Pensions& gratuity CS", "Variance"], "type": "table"}}, {"content": [["**1**", "**Buvuma DLG**", "**64,557,081**", "**64,557,081**", "**-**", "**8,452,682,816**", "**8,452,682,816**", "**-**", "**1,437,885,439**", "**1,157,058,269**", "**(280,827,170)**", "**10,262,302,270**", "**10,262,302,270**", "**-**", "**19,524,305**", "**19,524,305**", "**-**", "**749,134,835**", "**1,004,697,239**", "**255,562,404**", "**749,134,835**", "**1,004,697,239**", "**255,562,404**", "**(170,269,584)**", "", "**-**", "**-**", "**-**"], ["**2**", "**Kapchorwa DLG(HI)**", "**252,903,737**", "**252,903,737**", "**-**", "**13,143,950,303**", "**13,143,950,303**", "**-**", "**1,283,441,411**", "**1,283,441,411**", "**-**", "**14,678,002,743**", "**14,737,217,587**", "**(59,214,844)**", "**97,376,816**", "**97,376,816**", "**-**", "**742,197,008**", "**742,197,008**", "**-**", "**695,621,729**", "**695,621,729**", "**-**", "**-**", "", "**311,816,647**", "**311,816,647**", "**-**"], ["**3**", "**Bukomansimbi DLG**", "**145,092,353**", "**145,092,353**", "**-**", "**13,175,303,103**", "**13,175,303,103**", "**-**", 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["**32**", "**Mpigi DLG(HI)**", "**289,482,854**", "**289,482,854**", "**-**", "**23,268,537,108**", "**23,268,537,108**", "**-**", "**1,528,705,344**", "**1,528,705,344**", "**-**", "**24,837,221,572**", "**25,228,774,867**", "**391,553,295**", "**119,514,840**", "**119,514,840**", "**-**", "**1,300,788,348**", "**906,358,478**", "**(394,429,870)**", "**1,030,217,775**", "**1,030,217,775**", "**-**", "**1,459,019,414**", "", "**1,803,228,028**", "**1,803,228,028**", "**-**"], ["**33**", "**Kabarole DLG**", "**779,145,327**", "**769,923,410**", "**9,221,917**", "**23,683,384,377**", "**22,024,083,837**", "**1,659,300,540**", "**2,025,843,178**", "**2,654,144,948**", "**(628,301,770)**", "**25,314,872,707**", "**25,548,314,906**", "**(233,442,199)**", "**256,666,513**", "**221,092,639**", "**35,573,874**", "**1,491,530,675**", "**1,491,530,675**", "**-**", "**1,529,418,809**", "**1,529,418,809**", "**-**", "**928,048,741**", "", "**27,591,708**", "**27,591,708**", "**-**"], ["**34**", "**Serere**", "**249,248,474**", "**249,248,474**", "**-**", "**24,779,540,821**", "**24,779,540,821**", "**-**", "**3,704,045,740**", "**3,704,045,740**", "**-**", "**28,857,198,059**", "**28,857,198,059**", "**-**", "**133,363,354**", "**133,363,354**", "**-**", "**1,191,385,181**", "**1,191,385,181**", "**-**", "**1,765,265,068**", "**1,765,265,068**", "**-**", "", "", "**1,116,461,718**", "**1,116,461,718**", "**-**"], ["**35**", "**Pallisa DLG**", "**240,384,491**", "**240,384,491**", "**-**", "**25,846,533,497**", "**25,846,533,497**", "**-**", "**2,978,943,962**", "**2,978,943,962**", "**-**", "**28,933,572,578**", "**29,148,414,781**", "**(214,842,203)**", "**52,679,768**", "**52,679,768**", "**-**", "**1,964,844,345**", "**1,964,844,345**", "**-**", "**1,987,166,245**", "**1,987,166,245**", "**-**", "**330,889,786**", "", "**91,096,301**", "**91,096,301**", "**-**"], ["**36**", "**Busia DLG**", "**249,585,319**", "**249,585,319**", "**-**", "**26,540,638,988**", "**26,540,638,988**", "**-**", "**2,730,039,577**", "**2,730,039,577**", "**-**", "**30,762,342,045**", "**30,846,015,597**", "**(83,673,552)**", "**91,274,000**", "**91,274,000**", "**-**", "**1,272,148,099**", "**1,272,148,099**", "**-**", "**1,025,435,201**", "**1,025,435,201**", "**-**", "**-**", "", "**933,124,615**", "**933,124,615**", "**-**"], ["**37**", "**Mityana DLG(HI)**", "**303,086,906**", "**303,086,906**", "**-**", "**26,897,269,417**", "**26,897,269,417**", "**-**", "**599,651,479**", "**599,651,479**", "**-**", "**28,462,658,397**", "**28,462,658,397**", "**-**", "**33,625,941**", "**33,625,941**", "**-**", "**480,846,335**", "**480,846,335**", "**-**", "**543,170,782**", "**543,170,782**", "**-**", "**-**", "", "**-**", "**-**", "**-**"], ["**38**", "**Bundibugyo DLG(HI)**", "**65,018,264**", "**64,349,811**", "**668,453**", "**28,346,231,985**", "**28,036,571,985**", "**309,660,000**", "**190,997,285**", "**190,997,285**", "**-**", "**28,422,062,540**", "**28,599,508,160**", "**(177,445,620)**", "**587,717,003**", "**277,388,550**", "**310,328,453**", "**824,738,220**", "**824,738,220**", "**-**", "**816,044,188**", "**816,044,188**", "**-**", "**217,391,070**", "", "**49,879,941**", "**49,879,941**", "**-**"], ["**39**", "**Kyenjojo DLG**", "**356,129,220**", "**356,129,220**", "**-**", "**28,626,263,946**", "**28,626,263,946**", "**-**", "**2,190,758,430**", "**2,190,758,430**", "**-**", "**28,938,412,071**", "**29,001,048,844**", "**(62,636,773)**", "**239,936,977**", "**177,300,204**", "**62,636,773**", "**2,595,712,930**", "**1,647,290,187**", "**948,422,743**", "**2,562,160,283**", "**1,613,737,540**", "**948,422,743**", "**2,490,911**", "", "**-**", "", ""], ["**40**", "**Kamuli DLG**", "**244,695,038**", "**244,795,083**", "**(100,045)**", "**29,451,009,600**", "**33,071,600,711**", "**(3,620,591,111)**", "**38,780,948,164**", "**38,753,026,036**", "**27,922,128**", "**34,044,948**", "**34,044,948**", "**-**", "**1,467,239,983**", "**1,467,239,983**", "**-**", "**1,514,331,570**", "**1,471,187,228**", "**43,144,342**", "**(208,580)**", "", "", "", "", "", "", ""], ["**41**", "**Mbarara DLG**", "**830,912,389**", "**830,912,389**", "**-**", "**31,318,903,308**", "**31,318,903,308**", "**-**", "**1,082,638,053**", "**1,082,638,053**", "**-**", "**33,382,783,038**", "**33,382,783,038**", "**-**", "**170,373,464**", "**170,373,464**", "**-**", "**594,757,712**", "**594,757,712**", "**-**", "**711,035,947**", "**711,035,947**", "**-**", "**(71,511,141)**", "**(71,511,141)**", "**-**", "**-**", "**-**"], ["**42**", "**Rukungiri DLG(HI)**", "**296,632,143**", "**296,632,143**", "**-**", "**32,971,334,029**", "**32,971,334,029**", "**-**", "**1,895,447,388**", "**1,895,447,388**", "**-**", "**35,224,487,101**", "**35,274,195,331**", "**(49,708,230)**", "**94,002,535**", "**94,002,535**", "**-**", "**1,348,930,276**", "**1,348,930,276**", "**-**", "**1,469,645,072**", "**1,469,645,072**", "**-**", "**-**", "**-**", "**-**", "**-**", "**-**"], ["**43**", "**Mayuge DLG**", "**460,948,765**", "**460,948,765**", "**-**", "**33,355,800,793**", "**33,355,800,793**", "**-**", "**33,464,564,730**", "**33,476,118,630**", "**(11,553,900)**", "**90,807,456**", "**90,807,456**", "**-**", "**1,676,039,713**", "**1,676,039,713**", "**-**", "**1,088,823,521**", "**1,088,823,521**", "**-**", "**(95,506,072)**", "", "", "", "", "", "", ""], ["**44**", "**Yumbe DLG**", "**203,002,588**", "**-**", "**203,002,588**", "**33,759,576,931**", "**-**", "**33,759,576,931**", "**15,309,900,154**", "**-**", "**15,309,900,154**", "**52,072,052,793**", "**31,893,051,397**", "**20,179,001,396**", "**203,341,113**", "**-**", "**203,341,113**", "**3,732,040,374**", "**-**", "**3,732,040,374**", "**2,107,948,392**", "**-**", "**2,107,948,392**", "**(1,947,783,870)**", "**(1,947,783,870)**", "**342,488,601**", "**-**", "**342,488,601**"], ["**45**", "**Isingiro DLG**", "**471,076,668**", "**470,973,729**", "**102,939**", "**35,118,729,507**", "**35,118,832,446**", "**(102,939)**", "**140,000**", "**140,000**", "**-**", "**45,498,636,524**", "**45,798,548,709**", "**(299,912,185)**", "**268,103,807**", "**268,103,807**", "**-**", "**1,129,724,083**", "**1,129,724,083**", "**-**", "**2,796,726,008**", "**2,796,726,008**", "**-**", "**-**", "**-**", "**-**", "**-**", "**-**"], ["**46**", "**Ntungamo DLG(HI)**", "**314,537,913**", "**314,537,913**", "**-**", "**40,194,744,441**", "**40,194,744,441**", "**-**", "**2,657,032,930**", "**2,657,032,930**", "**-**", "**42,543,111,432**", "**44,003,923,479**", "**(1,460,812,047)**", "**748,246,237**", "**748,246,237**", "**-**", "**723,828,675**", "**723,828,675**", "**-**", "**1,901,471,853**", "**1,901,471,853**", "**-**", "**(53,341,724)**", "**(53,341,724)**", "**16,068,903**", "**16,068,903**", "**-**"], ["**47**", "**MBALE DLG**", "**615,870,040**", "**615,870,040**", "**-**", "**41,081,827,059**", "**41,081,827,059**", "**-**", "**4,027,349,863**", "**-**", "**4,027,349,863**", "**45,282,019,388**", "**45,789,684,342**", "**(507,664,954)**", "**283,224,480**", "**283,224,480**", "**-**", "**1,392,314,040**", "**1,392,314,040**", "**-**", "**1,412,325,812**", "**1,412,325,812**", "**-**", "", "", "**484,665,774**", "**484,665,774**", "**-**"], ["**48**", "**Tororo DLG**", "**499,956,848**", "**499,956,848**", "**-**", "**42,132,218,306**", "**42,132,218,306**", "**-**", "**5,237,244,214**", "**5,237,244,214**", "**-**", "**48,109,490,337**", "**48,573,865,452**", "**(464,375,115)**", "**85,959,391**", "**85,959,391**", "**-**", "**1,712,751,201**", "**1,712,751,201**", "**-**", "**1,804,373,655**", "**1,804,373,655**", "**-**", "**337,935,718**", "", "**-**", "**-**", "**-**"], ["**49**", "**Kasese DLG**", "**1,004,418,753**", "**1,430,879,451**", "**(426,460,698)**", "**56,359,771,577**", "**59,021,389,287**", "**(2,661,617,710)**", "**5,061,917,862**", "**4,369,886,508**", "**692,031,354**", "**63,248,262,016**", "**66,716,722,144**", "**(3,468,460,128)**", "**570,741,294**", "**227,586,748**", "**343,154,546**", "**346,075,678**", "**2,884,489,003**", "**(2,538,413,325)**", "**1,220,859,157**", "**3,130,989,676**", "**(1,910,130,519)**", "**-**", "**-**", "**-**", "**-**", "**-**"], ["**50**", "**Kasese DLG**", "**1,440,879,451**", "**1,430,879,451**", "**10,000,000**", "**59,021,389,287**", "**59,021,389,287**", "**-**", "**4,369,886,508**", "**4,369,886,508**", "**-**", "**65,946,631,717**", "**66,716,722,144**", "**(770,090,427)**", "**772,621,702**", "**227,586,748**", "**545,034,954**", "**2,884,489,003**", "**2,884,489,003**", "**-**", "**4,575,657,371**", "**3,130,989,676**", "**1,444,667,695**", "**344,574,580**", "", "**-**", "**-**", "**-**"], ["**Total**", "**17,744,124,541**", "**17,861,653,276**", "**(117,528,735)**", "**1,198,197,596,047**", "**1,133,097,931,541**", "**50,098,196,399**", "**280,157,271,805**", "**257,922,204,042**", "**22,235,067,763**", "**1,215,680,108,298**", "**1,208,436,896,640**", "**8,315,317,954**", "**23,634,560,872**", "**20,974,058,722**", "**2,660,502,150**", "**59,978,667,165**", "**56,113,928,439**", "**2,454,059,192**", "**59,336,149,581**", "**58,054,427,394**", "**1,631,416,839**", "**(2,440,071,938)**", "**(6,262,321,110)**", "**14,559,420,791**", "**16,169,661,126**", "**(1,610,240,335)**", null]], "metadata": {"headings": [{"headings_0": {"content": "iv. Accumulation of Payables v. Accumulation of Receivables", "page": 126, "level": 4}}], "page": 127, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Ref.", "DISTRICT", "Local Revenue per Separate AFS", "Local Revenue Per Consolidated FS", "Variance", "Government Grants per Separate AFS", "Government Grants Per Consolidated FS", "variance", "transfers from other govt units SAFS", "transfers from other govt units CS", "Variance", "Expenditure as per separate AFS", "Expenditure Per Consolidated FS", "Variance", "Cash & Cash equivalents per separate AFS", "Cash & Cash equivalents per Consolidation schedule", "Cash & Cash equivalents - Variance", "Receivables -SAFS", "Receivables -CS", "Variance", "Payables - SAFS", "Payables -CS", "Payables - Variance", "SOCE (Adjustments to opening balances - SAFS", "SOCE (Adjustments to opening balances - Variance", "Pensions& gratuity SFAS", "Pensions& gratuity CS", "Variance"], "type": "table"}}, {"content": "Alebtong DLG : Adjustment for recoverable advance in the SOCE. \nKole DLG: Donor funds worth 359,134,985 not captured by our template. Difference in expenditure of UGX 63,986,225 relates to payables incurred \nduring the  \nyear but the schedule for the same is not on the Kole accounts. \nPader DLG: Donor funds worth 273,183,808 not captured by our template. Difference of expenditure of UGX 767,661,160 relates to cash at hand of UGX 617,661,160 for activities that are yet to be done and \nUGX 150,000,000 advanced to a contractor for upgrade of Lapul Cwida HC II to HC III.", "metadata": {"headings": [{"headings_0": {"content": "iv. Accumulation of Payables v. Accumulation of Receivables", "page": 126, "level": 4}}, [{"headings_0": {"content": "Kole DLG: Donor funds worth 359,134,985 not captured by our template. Difference in expenditure of UGX 63,986,225 relates to payables incurred", "page": 127, "level": 6}}], [{"headings_0": {"content": "Kole DLG: Donor funds worth 359,134,985 not captured by our template. Difference in expenditure of UGX 63,986,225 relates to payables incurred", "page": 127, "level": 6}}], [{"headings_0": {"content": "Pader DLG: Donor funds worth 273,183,808 not captured by our template. Difference of expenditure of UGX 767,661,160 relates to cash at hand of UGX 617,661,160 for activities that are yet to be done and", "page": 127, "level": 6}}], [{"headings_0": {"content": "Pader DLG: Donor funds worth 273,183,808 not captured by our template. Difference of expenditure of UGX 767,661,160 relates to cash at hand of UGX 617,661,160 for activities that are yet to be done and", "page": 127, "level": 6}}]], "page": 127, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["**Cr**", "**15,876,394,422**"]], "metadata": {"headings": [{"headings_0": {"content": "Pader DLG: Donor funds worth 273,183,808 not captured by our template. Difference of expenditure of UGX 767,661,160 relates to cash at hand of UGX 617,661,160 for activities that are yet to be done and", "page": 127, "level": 6}}], "page": 127, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Dr", "13,429,879,296"], "type": "table"}}, {"content": [["1", "National Agriculture Advisory Services (NAADS) **Opinion** Unqualified", "\u2022 Out of the budgeted revenue of UGX.130.09 million for the year 2018/19, only UGX 47.227 million was collected representing a revenue performance of 36% of the target. \u2022 There was a shortfall in releases amounting to UGX0.324bn representing 0.2%. Further, the entity remained with unspent balance of UGX.39.905bn representing an absorption level of 85%. \u2022 I sampled 80 out-puts worth UGX.238.72bn representing 92% of the total budget and noted that 36 (45%) of the total outputs were not quantified to enable measurement of performance. Further, of the 44 quantified outputs/activities assessed, 9 outputs/activities representing 20% were fully implemented; 17 outputs/activities representing 39% were partially implemented while 18 outputs/activities representing 41% were not implemented at all. \u2022 UGX.303,308,545 was charged to wrong expenditure codes resulting into mischarges. \u2022 Domestic arrears increased by 6.9% from UGX.37.368bn in the previous year to UGX.39.951bn in the year under review. \u2022 A paltry UGX.11,436,056 (0.03%) was provided for settlement of domestic arrears despite having UGX.37.368bn as outstanding commitments from the previous year. UGX.37.368bn was used to settle the arrears. \u2022 Receivables of UGX.2.384bn have been outstanding for a long period and remain uncollected \u2022 LCs to the tune of UGX.3.2bn relating to supplies of milk coolers, generator sets and equipment failed to perform over 2 financial periods. \u2022 NAADS had 18 legal claims resulting from lack of control over distribution of agricultural inputs. \u2022 The Secretariat provided UGX.7.357bn for the construction of the Yumbe fruit factory without a financing agreement detailing the rights and obligations of both parties. \u2022 WHT of UGX.11,408,250 was not deducted for onward remittance to URA. \u2022 The approved structure provides for 73 proposed positions out of which only 56 have been filled, leaving a gap of 17 positions representing 23% inadequate staffing. \u2022 Shortcomings were noted in the implementation of the provisions in Section 3.2.2(a) of the NAADS Human Resource Manual on staff performance management. The gaps identified include non-completion/preparation of bi-annual Performance appraisals, appraisals, performance reviews, failure to implement a framework on rewards and disciplinary system and development of a client\u2019s charter. \u2022 NAADS has no mechanism of informing possible beneficiaries of the support available on value addition facilities intervention. Besides, there were delays in procurement of the facilities averaging 360 days. \u2022 Procurements worth UGX.151.306bn lacked performance securities contrary to PPDA regulations."], ["2", "National Animal Genetic resource centre and Data Bank (NAGRIC &DB) **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX5.224Bn representing 29%. Further, the entity remained with unspent balance of UGX.0.053bn representing an absorption level of 99.6%. \u2022 I sampled 47 outputs/activities worth UGX.17.443bn representing 96.6% of the total budget and noted that 1 output/activity representing 2% of the total outputs/activities was not quantified to enable measurement of performance. Furthermore, of the 46 quantified outputs/activities assessed, 21 outputs/activities representing 46% were fully implemented; 18 outputs/activities representing 39% were partially implemented while 7 outputs/activities representing 15% were not implemented at all. \u2022 Out of the projected revenue of UGX.7.064bn for the year 2018/19, only UGX.2.006bn was collected representing a revenue performance of 28.4% of the target."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 130, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY AGRICULTURE SECTOR", "SUMMARY OF KEY FINDINGS"], "type": "table"}}, {"content": [["1", "National Agriculture Advisory Services (NAADS) **Opinion** Unqualified", "\u2022 Out of the budgeted revenue of UGX.130.09 million for the year 2018/19, only UGX 47.227 million was collected representing a revenue performance of 36% of the target. \u2022 There was a shortfall in releases amounting to UGX0.324bn representing 0.2%. Further, the entity remained with unspent balance of UGX.39.905bn representing an absorption level of 85%. \u2022 I sampled 80 out-puts worth UGX.238.72bn representing 92% of the total budget and noted that 36 (45%) of the total outputs were not quantified to enable measurement of performance. Further, of the 44 quantified outputs/activities assessed, 9 outputs/activities representing 20% were fully implemented; 17 outputs/activities representing 39% were partially implemented while 18 outputs/activities representing 41% were not implemented at all. \u2022 UGX.303,308,545 was charged to wrong expenditure codes resulting into mischarges. \u2022 Domestic arrears increased by 6.9% from UGX.37.368bn in the previous year to UGX.39.951bn in the year under review. \u2022 A paltry UGX.11,436,056 (0.03%) was provided for settlement of domestic arrears despite having UGX.37.368bn as outstanding commitments from the previous year. UGX.37.368bn was used to settle the arrears. \u2022 Receivables of UGX.2.384bn have been outstanding for a long period and remain uncollected \u2022 LCs to the tune of UGX.3.2bn relating to supplies of milk coolers, generator sets and equipment failed to perform over 2 financial periods. \u2022 NAADS had 18 legal claims resulting from lack of control over distribution of agricultural inputs. \u2022 The Secretariat provided UGX.7.357bn for the construction of the Yumbe fruit factory without a financing agreement detailing the rights and obligations of both parties. \u2022 WHT of UGX.11,408,250 was not deducted for onward remittance to URA. \u2022 The approved structure provides for 73 proposed positions out of which only 56 have been filled, leaving a gap of 17 positions representing 23% inadequate staffing. \u2022 Shortcomings were noted in the implementation of the provisions in Section 3.2.2(a) of the NAADS Human Resource Manual on staff performance management. The gaps identified include non-completion/preparation of bi-annual Performance appraisals, appraisals, performance reviews, failure to implement a framework on rewards and disciplinary system and development of a client\u2019s charter. \u2022 NAADS has no mechanism of informing possible beneficiaries of the support available on value addition facilities intervention. Besides, there were delays in procurement of the facilities averaging 360 days. \u2022 Procurements worth UGX.151.306bn lacked performance securities contrary to PPDA regulations."], ["2", "National Animal Genetic resource centre and Data Bank (NAGRIC &DB) **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX5.224Bn representing 29%. Further, the entity remained with unspent balance of UGX.0.053bn representing an absorption level of 99.6%. \u2022 I sampled 47 outputs/activities worth UGX.17.443bn representing 96.6% of the total budget and noted that 1 output/activity representing 2% of the total outputs/activities was not quantified to enable measurement of performance. Furthermore, of the 46 quantified outputs/activities assessed, 21 outputs/activities representing 46% were fully implemented; 18 outputs/activities representing 39% were partially implemented while 7 outputs/activities representing 15% were not implemented at all. \u2022 Out of the projected revenue of UGX.7.064bn for the year 2018/19, only UGX.2.006bn was collected representing a revenue performance of 28.4% of the target."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 130, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY AGRICULTURE SECTOR", "SUMMARY OF KEY FINDINGS"], "type": "table"}}, {"content": "117", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 130, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["3", "National Agricultural Research Organization (NARO) **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.564bn representing 8.1%. Furthermore, the entity remained with unspent balance of UGX.0.004bn representing an absorption level of 99.95%. \u2022 I sampled 111 out-puts and noted that 29 (26%) of the total outputs/activities were not quantified to enable measurement of performance. Furthermore, of the 82 quantified outputs/activities assessed, 42 outputs/activities representing 51% were fully implemented; 21 outputs/activities representing 26% were partially implemented while 19 outputs/activities representing 23% were not implemented at all. \u2022 Out of the budgeted revenue of UGX.7.142bn for the year 2018/19, only UGX .3.611bn was collected representing a revenue performance of 51% of the target. \u2022 The entity received off-budget financing to a tune of UGX.44.9936 bn which was not paid into the consolidated fund contrary to the law. \u2022 UGX.0.129bn was charged on wrong expenditure codes resulting into mischarges. \u2022 Arrears totaling to UGX.1.303bn remained unsettled at close of the year contrary to Section 21(2) of the Public Finance management Act, 2015. \u2022 UGX.0.113bn was provided for settlement of domestic arrears despite having UGX.630,364,872 as outstanding commitments from the previous year contrary to Section 13(10) (a) (iv) of the Public Finance Management Act, 2015. \u2022 I observed that ownership of NARO land is faced with many challenges such as land encroachment, land taken away illegally, lack of land titles, expired leases, titled under individuals and titled under Uganda Land Commission and East African Commission Services. \u2022 Shortcomings were noted in the implementation of the provisions in the NARO Human Resource Manual, 2009 on staff performance management. The gaps identified include non-completion of"]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 131, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY", "SUMMARY OF KEY FINDINGS \u2022 There were expenditures of UGX.0.018bn on one off budget account though the entity did not budget nor receive any off-budget financing during the year. \u2022 UGX.0.039bn was charged to wrong expenditure codes resulting onto mischarges. \u2022 A trend analysis of the domestic arrears showed a movement of arrears from UGX.0.149bn in the previous year to UGX.0.335bn in the year under review, an increase of 124%. The arrears remained unsettled at the close of the year. \u2022 NAGRIC & DB had outstanding arrears to the tune of UGX.149,453,658 from the prior year (2017/2018) however, no budget provision was made towards settlement of these arrears in 2018/19. \u2022 UGX.126,300,000 was lost in anticipated sales value of 532 cattle, 232 goats and 75 pigs through death and theft during the year from several NAGRIC & DB farms. \u2022 The entity management is faced with many challenges regarding land, such as land encroachment, land occupied by CAA but not fully compensated, occupied by illegal claimants, lack of land titles, structures illegally demolished, instances of vandalism, titled under individuals and titled under Uganda Land Commission and Uganda Livestock Industries Ltd. \u2022 LCs for construction works from the previous year (2017/18) with outstanding balances of UGX.445,813,837 failed to perform within the contractual timelines. At the time of inspection, a number of projects were ongoing. \u2022 Shortcomings were noted in the implementation of the provisions in the NAGRIC & DB Human Resource Manual, 2013 on staff performance management. The gaps identified include non- completion of performance plans, failure to undertake performance appraisals, failure to undertake quarterly performance reviews, non functioning reward and sanctions committee and lack of client\u2019s charter. \u2022 The entity carried out its operations without a constituted board appointed by the Minister contrary to section 17(1) of the Animal Breeding Act 2001. \u2022 NAGRIC & DB has an approved staff structure of 175 positions but only 86 (49%) positions are filled leaving 90 (51%) vacant."], "type": "table"}}, {"content": "118", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 131, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["4", "Ministry of Agriculture Animal Industry and Fisheries (MAAIF) **Opinion** Unqualified", "\u2022 Out of the budgeted revenue of UGX.2.682bn for the year 2018/19, UGX.3.444bn was collected resulting into over collection of UGX.762 million representing performance of 128% of the target. \u2022 The Ministry received off-budget financing directly from development partners to a tune of UGX 3.578bn which was never paid into the consolidated fund. \u2022 There was a shortfall in releases amounting to UGX.19.848bn representing 13.4%. Further, the entity remained with unspent balances of UGX.1.021bn representing an absorption level of 99.2%. \u2022 I sampled 275 out-puts worth UGX.91.948 representing 62% of the total budget and noted that 11 (4%) of the total outputs were not quantified to enable measurement of performance. Further, of the 264 quantified outputs assessed, 218 outputs representing 82.6% were fully implemented; 45 output representing 17% was partially implemented while 1 output representing 0.4% was not implemented at all. \u2022 UGX.415 million was irregularly diverted from the activities on which it was budgeted and spent on other activities without seeking and obtaining the necessary approvals. \u2022 Domestic arrears decreased by 10% from 27.064bn in the previous year to UGX. 24.190bn in the year under review. The arrears remained unsettled at the close of the year. \u2022 The entity had domestic arrears to the tune of UGX.27,064,751,206 from the previous year but UGX.3,082,051,060 (11.4%) was provided for settlement. \u2022 Challenges were noted in regarding certification of Ugandan Agriculture exports that included: lack of enabling laws and regulations, separation of activities, under staffing, lack of necessarily skills, failure to appoint Technical Committee, lack of equipment to detect defective products, lack of space to store products before testing and use of blank copies to certify cleared products. These could have resulted in a number of interceptions at the International market which stood at 89 in 2019. \u2022 Land measuring 299.9 acres lacked titles and there were no records to support property measuring 98 acres. Besides, several plots, 359,360,361,362,363,364, 368 and 366 were identified as having been curved out of the Bukalasa College land without any formal authorization and in complete disregard of the existing land titles. \u2022 Out of 875 approved staff positions, only 580 (66%) had been filled leaving 295 (34%) vacant. \u2022 Shortcomings were noted in the implementation of staff performance management initiatives. The gaps identified include: non-completion of Performance Agreements and performance plans, low staff numbers completing and signing off performance appraisals, lack of quarterly performance reviews, failure to prepare performance improvement plans, non-submission of reports on Performance Agreements, Performance Appraisals and Performance Improvement Plans to MoPS, non-maintenance of the official staff attendance register, weak internal controls in the management of staff attendance record system, non-functional rewards and sanctions framework and failure to have an approved client charter. \u2022 There were significant delays in procurements ranging from 60 days (2 months) to 335 days (11 months)."], ["5", "Enhancing National Food Security Through Increased Rice Production **Opinion**", "\u2022 The ENRP did not include the National extension framework while designing the project. \u2022 The project has no information backup for system and neither does it have a policy on IT. \u2022 There was a shortfall in releases amounting to UGX.23.1Bn representing 98%.  \u2022 The ministry had delayed to conduct environmental social impact assessment (ESIA)."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 132, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY", "SUMMARY OF KEY FINDINGS performance plans, failure to undertake performance appraisals, lack of mechanism to monitor staff attendance and lack of a Clients charter. \u2022 Out of the approved 995 staff positions, 873 (87%) positions had been filled leaving 112 (12%) positions vacant. \u2022 28 staff had voluntarily resigned from NARO within the year 2018/19 due to payment of low salaries to NARO scientists compared with salaries paid by GOU to scientists in other government organizations."], "type": "table"}}, {"content": "119", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 132, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["6", "Agriculture Cluster Development Program (ACDP) **Opinion** Unqualified", "\u2022 The project had a budget shortfall of UGX.11.5Bn representing 10% underfunding. Furthermore, UGX.64.2Bn was unutilized which represents low absorption capacity of 38%. \u2022 USD.155,850 (UGX.0.577Bn) was incurred as annual interest charge on withdrawn unwithdrawn financing balances of USD.31.17million (UGX.11,532,900,000). \u2022 I sampled 31 out-puts and noted that 24 (77%) of the total outputs were not quantified to enable measurement of performance. Further, of the 7 quantified outputs assessed, 3 outputs representing 14% were fully implemented, 1 output representing 83% was partially implemented while 3 outputs representing 3% were not implemented at all. \u2022 I noted that the approval of budget for the financial year 2018/19 was delayed by 3 months. \u2022 There was a shortfall in GoU counterpart funding of UGX.41,000,000 (10%). \u2022 Performance of project key activities was faced with challenges of delays in procurement of the Electronic Voucher Management System (EVMS)EVMS, lack of installation certificates for the EVMS, lack of operational testing certificate for the EVMS and lack of technical assistance on EVMS pilot projects. \u2022 Anticipated enrolment of beneficiaries to the e-voucher of 240,500 farmers was not achieved thus hindering the attainment of the project objective. \u2022 EVMS processes faced significant challenges of low Registration and enrolment of beneficiaries and regional Agro dealers, lack of guidelines for verification of prices and quality of inputs and services, information overload, lack of needed distribution agent networks or local agro input dealers, failure to promptly disburse payments to agro input dealers. These hampered monitoring and supervision of the project. \u2022 I noted significant delays in procurements ranging from 50 days to 360 days. \u2022 There was delayed Supply and Installation Works for Solar powered Irrigation Equipment which exposed the Project to a risk of abandoned works and delayed service delivery to the beneficiary communities. \u2022 I observed delays in the implementation of some activities and unimplemented activities such as low number of beneficiaries trained by the electronic voucher management agency (EVMA) in financial literacy, input use and system use, low number of direct project beneficiaries, low number of farmers enrolled into the system and inadequate effectiveness in the implementation of the project activities."], ["7", "Regional Pastoral Livelihoods Resilience Project (RPLRP) **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX. 27,906,095,054 representing (31%) % of the budget. Further, the Project remained with unspent balance of UGX. 56,739,841,520 representing absorption level of 38%. \u2022 I reviewed all 180 out-puts worth UGX.89.638bn representing 100% of the total budget and noted that all outputs were quantified to enable measurement of performance. Out of the 180 quantified outputs assessed, 120 outputs representing 67% were fully implemented; 19 outputs representing 11% were partially implemented while 41 output representing 22% were not implemented at all. \u2022 I noted that project funds to the tune of UGX.24,750,000 was transferred to the District TSA account and duly utilized from the account contrary to Paragraph 35 of the PAD 2014. \u2022 Significant delays were noted with some procurements taking more than a year to be concluded and delays from planned contract signing dates ranging from 68 days (2 months) to 376 days (1 year). \u2022 5 contractors signed contracts for livestock marketing and production infrastructure and watering infrastructure worth UGX.37.42bn however; none of the construction works in 6 of the implementing districts sampled was complete (more than 2 months after contract expiry period). \u2022 Watering infrastructure (valley tanks) contractor did not have the minimum equipment on site contrary to what was approved during evaluation. This has slowed down the progress of the construction."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 133, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY Unqualified", "SUMMARY OF KEY FINDINGS \u2022 I noted that MAIIF-ENRP was still using the manual system of accounting for recording its transactions as opposed to IFMS."], "type": "table"}}, {"content": [["6", "Agriculture Cluster Development Program (ACDP) **Opinion** Unqualified", "\u2022 The project had a budget shortfall of UGX.11.5Bn representing 10% underfunding. Furthermore, UGX.64.2Bn was unutilized which represents low absorption capacity of 38%. \u2022 USD.155,850 (UGX.0.577Bn) was incurred as annual interest charge on withdrawn unwithdrawn financing balances of USD.31.17million (UGX.11,532,900,000). \u2022 I sampled 31 out-puts and noted that 24 (77%) of the total outputs were not quantified to enable measurement of performance. Further, of the 7 quantified outputs assessed, 3 outputs representing 14% were fully implemented, 1 output representing 83% was partially implemented while 3 outputs representing 3% were not implemented at all. \u2022 I noted that the approval of budget for the financial year 2018/19 was delayed by 3 months. \u2022 There was a shortfall in GoU counterpart funding of UGX.41,000,000 (10%). \u2022 Performance of project key activities was faced with challenges of delays in procurement of the Electronic Voucher Management System (EVMS)EVMS, lack of installation certificates for the EVMS, lack of operational testing certificate for the EVMS and lack of technical assistance on EVMS pilot projects. \u2022 Anticipated enrolment of beneficiaries to the e-voucher of 240,500 farmers was not achieved thus hindering the attainment of the project objective. \u2022 EVMS processes faced significant challenges of low Registration and enrolment of beneficiaries and regional Agro dealers, lack of guidelines for verification of prices and quality of inputs and services, information overload, lack of needed distribution agent networks or local agro input dealers, failure to promptly disburse payments to agro input dealers. These hampered monitoring and supervision of the project. \u2022 I noted significant delays in procurements ranging from 50 days to 360 days. \u2022 There was delayed Supply and Installation Works for Solar powered Irrigation Equipment which exposed the Project to a risk of abandoned works and delayed service delivery to the beneficiary communities. \u2022 I observed delays in the implementation of some activities and unimplemented activities such as low number of beneficiaries trained by the electronic voucher management agency (EVMA) in financial literacy, input use and system use, low number of direct project beneficiaries, low number of farmers enrolled into the system and inadequate effectiveness in the implementation of the project activities."], ["7", "Regional Pastoral Livelihoods Resilience Project (RPLRP) **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX. 27,906,095,054 representing (31%) % of the budget. Further, the Project remained with unspent balance of UGX. 56,739,841,520 representing absorption level of 38%. \u2022 I reviewed all 180 out-puts worth UGX.89.638bn representing 100% of the total budget and noted that all outputs were quantified to enable measurement of performance. Out of the 180 quantified outputs assessed, 120 outputs representing 67% were fully implemented; 19 outputs representing 11% were partially implemented while 41 output representing 22% were not implemented at all. \u2022 I noted that project funds to the tune of UGX.24,750,000 was transferred to the District TSA account and duly utilized from the account contrary to Paragraph 35 of the PAD 2014. \u2022 Significant delays were noted with some procurements taking more than a year to be concluded and delays from planned contract signing dates ranging from 68 days (2 months) to 376 days (1 year). \u2022 5 contractors signed contracts for livestock marketing and production infrastructure and watering infrastructure worth UGX.37.42bn however; none of the construction works in 6 of the implementing districts sampled was complete (more than 2 months after contract expiry period). \u2022 Watering infrastructure (valley tanks) contractor did not have the minimum equipment on site contrary to what was approved during evaluation. This has slowed down the progress of the construction."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 133, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY Unqualified", "SUMMARY OF KEY FINDINGS \u2022 I noted that MAIIF-ENRP was still using the manual system of accounting for recording its transactions as opposed to IFMS."], "type": "table"}}, {"content": "120", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 133, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["8", "Multi-sectoral Food Security & Nutrition Project **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.5.574bn representing 24% of the budget. Further, the entity remained with unspent balance of UGX.13.635bn representing an absorption level of 45%. \u2022 I sampled 67 out-puts worth UGX.22.839bn representing 100% of the total budget and noted that 42 (63%) of the total outputs were not quantified to enable measurement of performance. Further, of the 25 quantified outputs/activities assessed, 11 outputs/activities representing 63% were fully implemented; 9 outputs/activities representing 36% were partially implemented while 5 outputs/activities representing 20% were not implemented at all. \u2022 An evaluation of the logical framework revealed two project activities (seed/planting materials of selected micronutrient rich crops multiplied or produced by lead farmers in project areas and cooking demonstrations carried out at community level) that were lagging far behind and their implementation is estimated at below 50% with only one and half years left to project closure. \u2022 UGX.437,586,015 were transferred and spent from the District Revenue Collection Accounts contrary to World Bank Regulations. \u2022 Four years into project implementation, the District Nutrition Action Plan for Bushenyi District was not yet in place contrary to the Project Appraisal Document (PAD) guideline."], ["9", "Uganda Strategic Analysis and Knowledge Support System (USAKSS) **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.259,000,000 (USD.70,000) representing 47%. Further, the entity remained with unspent balance of UGX.185,282 representing an absorption level of 99.9%. \u2022 I reviewed all 12 out-puts worth UGX. 555,000,000 representing 100% of the total budget and noted that 2 (17%) of the total outputs were not quantified to enable measurement of performance. Further, of the 10 quantified outputs/activities assessed, 4 outputs/activities representing 40% were fully implemented; 4 outputs/activities representing 40% were partially implemented while 2 outputs/activities representing 20% were not implemented at all."], ["10", "Agricultural Technology and Agri-business Advisory Services (ATAAS) Closure Project **Opinion** Unqualified", "\u2022 Delayed Project implementation ,some planned activities had not been implemented, hence project implementation was extended yet again by another six months to 31st December, 2018, to allow for completion of activities. \u2022 Undelivered Vehicles \u2013UGX.246, 592,539.36, the contract was made for 115 vehicles and funds fully advanced; only 113 vehicles were delivered as per the receipt documents. Two (2) vehicles worth UGX.246,592,539.36 (USD.66,823.44) were not received by the time of this audit in June 2019. \u2022 Vehicles Not Delivered to Districts but retained at the Ministry, I noted that of the delivered 113 vehicles, 7 were retained at the Centre at the expense of the target Local Governments."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 134, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY", "SUMMARY OF KEY FINDINGS \u2022 3 companies were contracted to supply 30 Sahiwal breeding bulls, 75 pure bred Galla goats and 75 pure boar goats to Amudat District for distribution by district officials. However, I was unable to confirm that the intended beneficiaries. \u2022 I observed that project equipment was abused where the project vehicle was taken over by the area LC V Chairman; the project motor cycle was parked and keys withheld by the former District project coordinator and the generator and the ultra-low temperature solar vaccine freezer were still under storage since delivery in 2018."], "type": "table"}}, {"content": [["8", "Multi-sectoral Food Security & Nutrition Project **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.5.574bn representing 24% of the budget. Further, the entity remained with unspent balance of UGX.13.635bn representing an absorption level of 45%. \u2022 I sampled 67 out-puts worth UGX.22.839bn representing 100% of the total budget and noted that 42 (63%) of the total outputs were not quantified to enable measurement of performance. Further, of the 25 quantified outputs/activities assessed, 11 outputs/activities representing 63% were fully implemented; 9 outputs/activities representing 36% were partially implemented while 5 outputs/activities representing 20% were not implemented at all. \u2022 An evaluation of the logical framework revealed two project activities (seed/planting materials of selected micronutrient rich crops multiplied or produced by lead farmers in project areas and cooking demonstrations carried out at community level) that were lagging far behind and their implementation is estimated at below 50% with only one and half years left to project closure. \u2022 UGX.437,586,015 were transferred and spent from the District Revenue Collection Accounts contrary to World Bank Regulations. \u2022 Four years into project implementation, the District Nutrition Action Plan for Bushenyi District was not yet in place contrary to the Project Appraisal Document (PAD) guideline."], ["9", "Uganda Strategic Analysis and Knowledge Support System (USAKSS) **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.259,000,000 (USD.70,000) representing 47%. Further, the entity remained with unspent balance of UGX.185,282 representing an absorption level of 99.9%. \u2022 I reviewed all 12 out-puts worth UGX. 555,000,000 representing 100% of the total budget and noted that 2 (17%) of the total outputs were not quantified to enable measurement of performance. Further, of the 10 quantified outputs/activities assessed, 4 outputs/activities representing 40% were fully implemented; 4 outputs/activities representing 40% were partially implemented while 2 outputs/activities representing 20% were not implemented at all."], ["10", "Agricultural Technology and Agri-business Advisory Services (ATAAS) Closure Project **Opinion** Unqualified", "\u2022 Delayed Project implementation ,some planned activities had not been implemented, hence project implementation was extended yet again by another six months to 31st December, 2018, to allow for completion of activities. \u2022 Undelivered Vehicles \u2013UGX.246, 592,539.36, the contract was made for 115 vehicles and funds fully advanced; only 113 vehicles were delivered as per the receipt documents. Two (2) vehicles worth UGX.246,592,539.36 (USD.66,823.44) were not received by the time of this audit in June 2019. \u2022 Vehicles Not Delivered to Districts but retained at the Ministry, I noted that of the delivered 113 vehicles, 7 were retained at the Centre at the expense of the target Local Governments."], ["11", "Coordinating Office for the control of trypanosomiasis in Uganda (COCTU) **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.0.296bn representing 3.6%. Furthermore, the entity remained with unspent balance of UGX.0.036bn representing absorption level of 99.5%. \u2022 I sampled 26 out-puts worth UGX.5.185bn representing 100% of the total budget and noted that 1 output/activity representing 3.8% of the total outputs/activities was not quantified to enable measurement of performance. Furthermore, of the 25 quantified outputs/activities assessed, 21 outputs/activities representing 84% were fully implemented; one (1) output/activity representing 4% was partially implemented while 3 outputs/activities representing 12% were not implemented at all. \u2022 Off-budget financing to a tune of UGX.3.114bn was never paid into the consolidated fund contrary to the law."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 134, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY", "SUMMARY OF KEY FINDINGS \u2022 3 companies were contracted to supply 30 Sahiwal breeding bulls, 75 pure bred Galla goats and 75 pure boar goats to Amudat District for distribution by district officials. However, I was unable to confirm that the intended beneficiaries. \u2022 I observed that project equipment was abused where the project vehicle was taken over by the area LC V Chairman; the project motor cycle was parked and keys withheld by the former District project coordinator and the generator and the ultra-low temperature solar vaccine freezer were still under storage since delivery in 2018."], "type": "table"}}, {"content": "121", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 134, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["12", "Uganda Coffee Development Authority (UCDA) **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX6.027bn representing 6%. Furthermore, the entity remained with unspent balance of UGX.1.991bn representing an absorption level of 98%. \u2022 I sampled 93 outputs/activities worth UGX.80,004,450,000 representing 79% of the total budget and noted that 38 (41%) of the total outputs were not quantified to enable measurement of performance. Furthermore, of the 55 quantified outputs/activities assessed, 27 output/activities representing 49% were fully implemented, 17 outputs/activities representing 31% were partially implemented while 11 outputs/activities representing 20% were not implemented at all. \u2022 The entity charged wrong expenditure codes resulting into mischarges to a tune of UGX.169,708,864. \u2022 UCDA designed a coffee road map to implement a Presidential directive for the achievement of the 20million bags target by 2020 but this is not in tandem with the strategic plan and thus not aligned to the National Development Plan. \u2022 Arrears totalling to UGX.141,249,416,869 remained unsettled at close of the year. \u2022 UGX.2,829,112,000 (2.7%) was provided for settlement of domestic arrears despite having UGX.106,002,772,000 as outstanding commitments from the previous year. \u2022 Shortcomings were noted in the implementation of the provisions in the UCDA Human Resource Manual requirements on staff performance management initiatives. The gaps identified included: non completion of staff performance appraisals, lack of a rewards and sanctions committee and lack of a client\u2019s charter. \u2022 Out of the 224 approved staff positions, only 130 (58%) positions were filled leaving 94 (42%) positions vacant."], ["13", "Vegetable Oil Development Project (VODP) **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.8.587 bn representing 13.7%. Further, the entity remained with unspent balance of UGX.2.104 bn representing an absorption level of 96%. \u2022 I sampled 49 out-puts worth UGX.59.805 bn representing 94.2% of the total budget and noted that 32 outputs/activities representing 65% were fully implemented; 13 output/activity representing 27% was partially implemented while 4 output/activity representing 8% was not implemented at all. \u2022 The plan for the project was to acquire a total of 45,200 hectares. However, only 8,166 plantable hectares were acquired implying 44% achievement. \u2022 3 construction projects worth UGX.1.281 bn undertaken during the financial year were not handed over because they were incomplete and were six months beyond their completion dates."], ["14", "Cotton Development Organisation (CDO) **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.1.115bn representing 11%. Furthermore, the entity remained with unspent balance of UGX.0.004bn representing an absorption level of 99.95%. \u2022 I sampled 22 out-puts worth UGX.5.4bn representing 85% of the total budget and noted that 18 (81%) of the total outputs were not quantified to enable measurement of performance. Furthermore, of the 4 quantified outputs/activities assessed, 1 output/activity representing 25% was fully implemented and 3 outputs/activities representing 75% were partially implemented. \u2022 Arrears totaling to UGX.317,468,006 remained unsettled at close of the year contrary to Section 21(2) of the Public Finance management Act, 2015. \u2022 CDO procured 8 gin stands at UGX.533,661,905 on 17th April, 2019 to be delivered within six months. However, the stands had not been delivered at the time of the audit (5/11/2019). \u2022 Shortcomings were noted in the implementation of the provisions in the implementation of staff performance management programmes. The gaps identified include non-completion of performance appraisals, failure to undertake performance appraisals, no quarterly reviews undertaken and lack of mechanism to monitor staff attendance."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 135, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY", "SUMMARY OF KEY FINDINGS \u2022 Shortcomings were noted in the implementation of the provisions in the implementation of staff performance management system of the entity. The gaps identified include non-completion of performance plans, failure to undertake performance appraisals and lack of a client\u2019s charter. \u2022 Out of the approved 37 staff positions of the entity, 17 (46%) positions have been filled leaving 20 (54%) positions vacant."], "type": "table"}}, {"content": [["12", "Uganda Coffee Development Authority (UCDA) **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX6.027bn representing 6%. Furthermore, the entity remained with unspent balance of UGX.1.991bn representing an absorption level of 98%. \u2022 I sampled 93 outputs/activities worth UGX.80,004,450,000 representing 79% of the total budget and noted that 38 (41%) of the total outputs were not quantified to enable measurement of performance. Furthermore, of the 55 quantified outputs/activities assessed, 27 output/activities representing 49% were fully implemented, 17 outputs/activities representing 31% were partially implemented while 11 outputs/activities representing 20% were not implemented at all. \u2022 The entity charged wrong expenditure codes resulting into mischarges to a tune of UGX.169,708,864. \u2022 UCDA designed a coffee road map to implement a Presidential directive for the achievement of the 20million bags target by 2020 but this is not in tandem with the strategic plan and thus not aligned to the National Development Plan. \u2022 Arrears totalling to UGX.141,249,416,869 remained unsettled at close of the year. \u2022 UGX.2,829,112,000 (2.7%) was provided for settlement of domestic arrears despite having UGX.106,002,772,000 as outstanding commitments from the previous year. \u2022 Shortcomings were noted in the implementation of the provisions in the UCDA Human Resource Manual requirements on staff performance management initiatives. The gaps identified included: non completion of staff performance appraisals, lack of a rewards and sanctions committee and lack of a client\u2019s charter. \u2022 Out of the 224 approved staff positions, only 130 (58%) positions were filled leaving 94 (42%) positions vacant."], ["13", "Vegetable Oil Development Project (VODP) **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.8.587 bn representing 13.7%. Further, the entity remained with unspent balance of UGX.2.104 bn representing an absorption level of 96%. \u2022 I sampled 49 out-puts worth UGX.59.805 bn representing 94.2% of the total budget and noted that 32 outputs/activities representing 65% were fully implemented; 13 output/activity representing 27% was partially implemented while 4 output/activity representing 8% was not implemented at all. \u2022 The plan for the project was to acquire a total of 45,200 hectares. However, only 8,166 plantable hectares were acquired implying 44% achievement. \u2022 3 construction projects worth UGX.1.281 bn undertaken during the financial year were not handed over because they were incomplete and were six months beyond their completion dates."], ["14", "Cotton Development Organisation (CDO) **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.1.115bn representing 11%. Furthermore, the entity remained with unspent balance of UGX.0.004bn representing an absorption level of 99.95%. \u2022 I sampled 22 out-puts worth UGX.5.4bn representing 85% of the total budget and noted that 18 (81%) of the total outputs were not quantified to enable measurement of performance. Furthermore, of the 4 quantified outputs/activities assessed, 1 output/activity representing 25% was fully implemented and 3 outputs/activities representing 75% were partially implemented. \u2022 Arrears totaling to UGX.317,468,006 remained unsettled at close of the year contrary to Section 21(2) of the Public Finance management Act, 2015. \u2022 CDO procured 8 gin stands at UGX.533,661,905 on 17th April, 2019 to be delivered within six months. However, the stands had not been delivered at the time of the audit (5/11/2019). \u2022 Shortcomings were noted in the implementation of the provisions in the implementation of staff performance management programmes. The gaps identified include non-completion of performance appraisals, failure to undertake performance appraisals, no quarterly reviews undertaken and lack of mechanism to monitor staff attendance."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 135, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY", "SUMMARY OF KEY FINDINGS \u2022 Shortcomings were noted in the implementation of the provisions in the implementation of staff performance management system of the entity. The gaps identified include non-completion of performance plans, failure to undertake performance appraisals and lack of a client\u2019s charter. \u2022 Out of the approved 37 staff positions of the entity, 17 (46%) positions have been filled leaving 20 (54%) positions vacant."], "type": "table"}}, {"content": "122", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 135, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["15", "Dairy Development Authority (DDA) **Opinion** Unqualified", "\u2022 There was a budget shortfall in releases amounting to UGX.0.985bn representing 14.6%. Further, the entity remained with unspent balance of UGX.0.022bn representing an absorption level of 99.6%. \u2022 I sampled 31 out-puts/activities worth UGX.6.735bn representing 100% of the total budget and noted that 24 (77%) of the total outputs/activities were not quantified to enable measurement of performance. Further, of the 7 quantified outputs/activities assessed, 6 outputs/activities representing 83% were fully implemented while 1 output/activity representing 17% was partially implemented. \u2022 UGX.50,014,417 was charged to wrong expenditure codes resulting into mischarges. \u2022 Domestic arrears decreased from UGX.309,523,054 in the previous year to UGX.19,129,932 in the year under review, a decrease of 94%. The arrears remained unsettled at the close of the year. \u2022 UGX.309,523,054 remained outstanding from the prior year (2017/2018) however, no budget provision was made towards settlement of these arrears in 2018/19. \u2022 Settlement of arrears amounting to UGX.290,393,122 was undertaken without allocated budget. \u2022 Ministry of Finance has not compensated DDA CESS amounting to UGX.8bn despite a presidential directive. \u2022 36 DDA Milk collection centres (MCC\u2019s) and properties across the country which are vital in achievement of the primary DDA objective were not functioning due to the poor state of the properties. \u2022 Shortcomings were noted in the implementation of the provisions in the circular standing instructions on staff performance management. The gaps identified include failure to fill annual performance plans, failure to appraise staff, no quarterly reviews undertaken, no reports on staff attendance and lack of a Rewards and Sanctions Committee. \u2022 Out of the 140 approved staffing positions, only 65 (45%) positions were filled leaving 75 (55%) positions vacant. \u2022 32 DDA properties had no land titles while some titles had expired."], ["", "**JUSTICE LAW AND ORDER SECTOR**", ""], ["1", "Judiciary Department **Opinion** Qualified", "\u2022 Judiciary had a shortfall in releases amounting to UGX. 440,828,691 representing 0.34%. Further, the entity remained with an unspent balance of UGX. 1,192,990,307 representing an absorption level of 99%. \u2022 I sampled 55 outputs worth UGX.122.3bn representing 82.7% of the total budget and noted that 6 (15%) of the total outputs were not quantified to enable measurement of performance. Further, of the 49 quantified outputs/activities assessed,32 outputs/activities representing 65% were fully implemented; 8 outputs/activities representing 16% were partially implemented while 9 outputs/activities representing 18% was not implemented at all. \u2022 Funds amounting to UGX.565,963,983 were irregularly diverted and spent on other activities without seeking the necessary approvals. \u2022 Domestic arrears increased by 1.82 billion from UGX. 8,792,728,659 in the previous year to UGX. 10,616,977,572 in the year under review. The arrears remained unsettled at the close of the year. \u2022 Insufficient budget provision of UGX.297,569,059 (3.4%) was made towards the settlement of the domestic arrears totaling to UGX. 8,792,728,659."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 136, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY", "SUMMARY OF KEY FINDINGS \u2022 Out of the approved staff structure of 36 positions, 31 (86%) positions were filled leaving 5 (14%) positions vacant. \u2022 10 staff had accumulated leave days and were carried forward from year to year contrary to Chapter 10(iii) of the Staff Regulations & Terms & Conditions of Service"], "type": "table"}}, {"content": [["15", "Dairy Development Authority (DDA) **Opinion** Unqualified", "\u2022 There was a budget shortfall in releases amounting to UGX.0.985bn representing 14.6%. Further, the entity remained with unspent balance of UGX.0.022bn representing an absorption level of 99.6%. \u2022 I sampled 31 out-puts/activities worth UGX.6.735bn representing 100% of the total budget and noted that 24 (77%) of the total outputs/activities were not quantified to enable measurement of performance. Further, of the 7 quantified outputs/activities assessed, 6 outputs/activities representing 83% were fully implemented while 1 output/activity representing 17% was partially implemented. \u2022 UGX.50,014,417 was charged to wrong expenditure codes resulting into mischarges. \u2022 Domestic arrears decreased from UGX.309,523,054 in the previous year to UGX.19,129,932 in the year under review, a decrease of 94%. The arrears remained unsettled at the close of the year. \u2022 UGX.309,523,054 remained outstanding from the prior year (2017/2018) however, no budget provision was made towards settlement of these arrears in 2018/19. \u2022 Settlement of arrears amounting to UGX.290,393,122 was undertaken without allocated budget. \u2022 Ministry of Finance has not compensated DDA CESS amounting to UGX.8bn despite a presidential directive. \u2022 36 DDA Milk collection centres (MCC\u2019s) and properties across the country which are vital in achievement of the primary DDA objective were not functioning due to the poor state of the properties. \u2022 Shortcomings were noted in the implementation of the provisions in the circular standing instructions on staff performance management. The gaps identified include failure to fill annual performance plans, failure to appraise staff, no quarterly reviews undertaken, no reports on staff attendance and lack of a Rewards and Sanctions Committee. \u2022 Out of the 140 approved staffing positions, only 65 (45%) positions were filled leaving 75 (55%) positions vacant. \u2022 32 DDA properties had no land titles while some titles had expired."], ["", "**JUSTICE LAW AND ORDER SECTOR**", ""], ["1", "Judiciary Department **Opinion** Qualified", "\u2022 Judiciary had a shortfall in releases amounting to UGX. 440,828,691 representing 0.34%. Further, the entity remained with an unspent balance of UGX. 1,192,990,307 representing an absorption level of 99%. \u2022 I sampled 55 outputs worth UGX.122.3bn representing 82.7% of the total budget and noted that 6 (15%) of the total outputs were not quantified to enable measurement of performance. Further, of the 49 quantified outputs/activities assessed,32 outputs/activities representing 65% were fully implemented; 8 outputs/activities representing 16% were partially implemented while 9 outputs/activities representing 18% was not implemented at all. \u2022 Funds amounting to UGX.565,963,983 were irregularly diverted and spent on other activities without seeking the necessary approvals. \u2022 Domestic arrears increased by 1.82 billion from UGX. 8,792,728,659 in the previous year to UGX. 10,616,977,572 in the year under review. The arrears remained unsettled at the close of the year. \u2022 Insufficient budget provision of UGX.297,569,059 (3.4%) was made towards the settlement of the domestic arrears totaling to UGX. 8,792,728,659."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 136, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY", "SUMMARY OF KEY FINDINGS \u2022 Out of the approved staff structure of 36 positions, 31 (86%) positions were filled leaving 5 (14%) positions vacant. \u2022 10 staff had accumulated leave days and were carried forward from year to year contrary to Chapter 10(iii) of the Staff Regulations & Terms & Conditions of Service"], "type": "table"}}, {"content": "123", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 136, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["2", "Uganda Police Force **Opinion** Unqualified", "\u2022 I sampled 126 out-puts worth UGX.518.9bn representing 68% of the total budget and noted that 10 (8%) of the total outputs were not quantified to enable measurement of performance. Further, of the 116 quantified outputs/activities assessed,42 outputs/activities representing 36.2% were fully implemented; 27 outputs/activities representing 23.3% was partially implemented while 47 outputs/activities representing 40.5% was not implemented at all. \u2022 Funds amounting to UGX.24,454,146,061 were irregularly diverted and spent on other activities without seeking the necessary approvals. \u2022 Domestic arrears increased (by 5.45Bn from UGX. 161,047,166,761 in the previous year to UGX.166,502,750,728 in the year under review. The arrears remained unsettled at the close of the year. \u2022 Shortcomings were noted in the implementation of the provisions in the circular standing instructions on staff performance management. The gaps identified include non-completion of Performance Agreements, no quarterly reviews undertaken, no performance improvement plans prepared, non-submission of reports on Performance Agreements, Performance Appraisals, Performance Improvement Plans to MoPS and lack of mechanism to monitor staff attendance. \u2022 Court Awards Arrears stood at UGX.890,624,226. A budget provision of only UGX.300,000,000 was made towards settlement of the outstanding arrears. UPF does not recognize accrued interest. Also, no budget provision was made for the settlement of any accrued interest. \u2022 Uganda Police lacks a rental management policy. Thus, procurement of up to 440 rental premises during the year were not guided by the rent policy. Neither were the places included in the procurement plan for the year."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 137, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY", "SUMMARY OF KEY FINDINGS \u2022 Payments totalling to UGX.1,255,590,187 lacked supported documents such as funds activity reports, payees acknowledging receipt and accountability receipts thus remaining unaccounted for. \u2022 UGX.103,484,926 was diverted from GoU and JLOS SWAP funds to refund bail claimant\u2019s lost money and no evidence was provided to show that the funds been refunded or recovered from the responsible officers. \u2022 A sum of UGX. 237,067,539 was ineligibly expensed on the Registrar High Court Account to cater for activities like Rent for Magistrate Court, inspection of various courts by the accounts section, burial expenses, IFMS and BBS connect activities, allowances for board of survey, operation funds for other courts and purchase of a carpet for Anti-corruption Court. \u2022 A sum of UGX. 84,035,500 paid to officers for various activities from Registrar High Court lacked necessary support documents such as activity reports and accountability receipts. \u2022 Payment vouchers worth UGX. 320,947,170 paid to various officers and Companies, from the Registrar High Court account during the financial year under review were missing \u2022 Shortcomings were noted in the implementation of the provisions in the circular standing instructions on staff performance management. The gaps identified include non-completion of Performance Agreements and performance plans, no quarterly reviews undertaken, no performance improvement plans prepared, non-submission of reports on Performance Agreements, Performance Appraisals, Performance Improvement Plans to MoPS and lack of charter. \u2022 A sum of UGX.19,339,717,779 incurred on allowances to staff, fuel, stationery, inland travels, facilitating of court operations and sessions was inappropriately budgeted and charged under code 221006 for commissions and related charges. \u2022 A trend analysis of the case backlogs showed an upward movement from 155,185 cases in the previous year to UGX. 171,743 cases in the year under review representing 10.6 % increment. \u2022 A sum of UGX.237,067,539 was ineligibly expensed on the Registrar High Court Account to cater for activities not related to the operations of Registrar High Court Kampala such as Rent for Magistrate Court, inspection of various courts by the accounts section, burial expenses, IFMS and BBS connect activities, allowances for board of survey, operation funds for other courts and purchase of a carpet for Anti-corruption Court."], "type": "table"}}, {"content": "124", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 137, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["3", "Ministry of Justice & Constitutional Affairs **Opinion** Unqualified", "\u2022 Out of the projected NTR collections of UGX.2,658,490,000, only UGX.662,462,293 was collected representing underperformance of 75%. \u2022 MoJCA remained with unspent balance of UGX.1,339,363,412 representing an absorption level of 99%. \u2022 I reviewed 19 out-puts worth UGX.138.95 billion representing 100% of the total budget and noted that 5 outputs (21.7%) of the total outputs were not quantified to enable measurement of performance. Further, of the 14 quantified outputs/activities assessed,11 outputs/activities representing 79% were fully implemented; 3 (three) outputs/activities representing 21% was partially implemented. \u2022 Funds amounting to UGX.109,352,240 were irregularly diverted and spent on other activities without seeking the necessary approvals. \u2022 Domestic arrears decreased by 106.6 billion from UGX.663,992,322,002 in the previous year to UGX.557,388,423,406 in the year under review. The arrears amounting UGX.557,388,423,406 remained unsettled at the close of the year. \u2022 Court Awards and Compensation arrears stood at UGX.655,134,362,209 and a budget provision of only UGX.178,960,025,475 was made towards settlement of the outstanding arrears. \u2022 Court awards and compensation interest totalling to UGX.183,732,740,689 with interest rates ranging from 6% to 30% per annum has accumulated over the years. \u2022 Shortcomings were noted in the implementation of the provisions in the circular standing instructions on staff performance management. The gaps identified include non-completion of Performance plans, no quarterly reviews undertaken, no performance improvement plans prepared, non-submission of reports on Performance Agreements, Performance Appraisals, Performance Improvement Plans to MoPS and Absenteeism."], ["4", "Uganda Human Rights Commission **Opinion** Unqualified", "\u2022 UHRC budgeted to collect revenue of UGX.54,760,000 however, only UGX.5,750,000 was collected representing an underperformance of 90% of the target. \u2022 UHRC received off-budget financing from development partners to a tune of UGX.6,161,458,988 which was never paid into the consolidated fund as required by the law. \u2022 The entity remained with unspent balance of UGX.1.679 billion representing an absorption level of 92%. \u2022 I reviewed all the 12 out-puts worth UGX.20.225 billion representing 100% of the total budget and noted that 6 (six) outputs/activities representing 50% were fully implemented, and 6(six) outputs representing 50% were partially implemented. \u2022 Out of 11 outputs analysed, 8 outputs were inaccurately reported. \u2022 Funds amounting to UGX.98,926,293 were irregularly diverted and spent on other activities without seeking the necessary approvals."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 138, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY", "SUMMARY OF KEY FINDINGS \u2022 Over the last four years, the UPF fleet size has grown by 56.2% to 2,190 while the fuel budget has reduced by 56.1%. Over the same period the vehicle maintenance budget has reduced by 21.8%. As a result the number of inefficient and broken down vehicles has increased. In addition, the police does not have an approved policy for managing the fleet. \u2022 On investigations of crime, over a five year period UPF has only managed to investigate 60% or 755,342 reported cases out of a total number reported cases over the same period of 1,251,344. This is because the case load per investigator at 1:45 is above the recommended case load of 1:12 \u2022 Part of the police land was given to the United Nations African Institute (UNAFRI), a UN agency for crime prevention and the Treatment of Offenders. UNAFRI has had limited impact and provided no support to the Uganda Police in the areas of crime prevention or the treatment of offender. In addition, the land in question has now been leased to third party tenants. \u2022 UPF owns a total 825 parcels of land of different sizes in the different parts of the country. Of these only 230 (28%) pieces were titled, 187 (23%) pieces were surveyed while 408 (49%) pieces were not surveyed or titled. In FY2018/2019, UPF constructed on 7 parcels of land in the year, which did not have titles, thus risking the loss of such land in case of disputes."], "type": "table"}}, {"content": "125", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 138, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["5", "Uganda Registrations Services Bureau (URSB) \u2013 OPERATIONS **Opinion** Unqualified", "\u2022 The URSB -Operations remained with unspent balance of UGX.953,278,449 representing an absorption level of 96.4%. \u2022 I reviewed the 26 outputs with a total budget of UGX.26,530,312,307 implemented by the entity representing 100% of the total budget and noted that 6 (23.1%) of the total outputs were not quantified to enable measurement of performance. Further, of the 20 quantified outputs assessed, 9 outputs representing 34.6% were fully implemented; 2 outputs representing 7.7% was partially implemented while 2 outputs representing 7.7% was not implemented at all while 7 outputs representing 27% were implemented on non-key deliverables. \u2022 Domestic arrears decreased by 66.5% from UGX.1,941,423,697 in the previous year to UGX.650,085,882 in the year under review. Payables, worth UGX.479,457,486 were incurred without Parliamentary approval. \u2022 A budget provision of only UGX.174,520,348 was made towards the settlement of domestic arrears reported as UGX.1,941,423,697 as at the close of the prior year. \u2022 URSB has done much to ensure that the staff performance management programmes are implemented. However, the entity does not have a substantive reward and sanctions committee in place. \u2022 Out of total number of 332 staff required, only 149 positions (45%) had been filled leaving a balance of 183 positions (55%) vacant."], ["6", "Uganda Registration Services Bureau (URSB) \u2013 LIQUIDATION **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.552,004,536 representing 24%. Further, the entity remained with an unspent balance of UGX.714,656,131 representing an absorption level of 59%. \u2022 I reviewed 9 outputs worth UGX.2,284,200,400 representing 100% of the total budget and noted that 6 outputs representing 67% of the total outputs were not quantified to enable measurement of performance. Furthermore, of the 3 quantified outputs assessed, no output was fully implemented, 1 output representing 33% was partially implemented while 2 outputs representing 67% were not implemented at all. \u2022 URSB reported receivables amounting to UGX.6,252,764,629 brought forward from 2016/17 financial year and their recoveries appear remote."], ["7", "Directorate of Citizenship and Immigration Control (DCIC) **Opinion** Unqualified", "\u2022 DCIC did not budget for all revenue sources although the entity collected 116% of the target. Management regretted the omission. \u2022 DCIC had a shortfall in releases amounting to UGX.1,432,847,759 representing 1.3%. Further, the entity remained with unspent balance of UGX.5,516,448,137 representing an absorption level of 94.54%. \u2022 I sampled 160 outputs worth UGX.107.98bn representing 100% of the total budget and noted that 59 (36.9%) of the total outputs were not quantified to enable measurement of performance. Further, of the 101 quantified outputs/activities assessed, 62 outputs/activities representing 61% were fully implemented; 20 output/activity representing 20% was partially implemented while 19 output/activity representing 19% was not implemented at all."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 139, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY", "SUMMARY OF KEY FINDINGS \u2022 Domestic arrears decreased by 58% from UGX UGX. 3,910,443,177 in the previous year to UGX.1,650,152,463 in the year under review. The arrears remained unsettled at the close of the year. \u2022 Settlement of arrears amounting to UGX.1,621,318,592 outstanding from prior year (2017/18) were undertaken without allocated budget. \u2022 Out of 1736 cases, only 63 (3.6%) were fully investigated and disposed off during the year translated in underperformance of 96.4%. \u2022 Shortcomings were noted in the implementation of the provisions in the circular standing instructions on staff performance management. The gaps identified include non-completion of Performance Agreements, no quarterly reviews undertaken, no performance improvement plans prepared, non-submission of reports on Performance Agreements, Performance Appraisals, Performance Improvement Plans to MoPS and delayed handling of disciplinary cases."], "type": "table"}}, {"content": [["5", "Uganda Registrations Services Bureau (URSB) \u2013 OPERATIONS **Opinion** Unqualified", "\u2022 The URSB -Operations remained with unspent balance of UGX.953,278,449 representing an absorption level of 96.4%. \u2022 I reviewed the 26 outputs with a total budget of UGX.26,530,312,307 implemented by the entity representing 100% of the total budget and noted that 6 (23.1%) of the total outputs were not quantified to enable measurement of performance. Further, of the 20 quantified outputs assessed, 9 outputs representing 34.6% were fully implemented; 2 outputs representing 7.7% was partially implemented while 2 outputs representing 7.7% was not implemented at all while 7 outputs representing 27% were implemented on non-key deliverables. \u2022 Domestic arrears decreased by 66.5% from UGX.1,941,423,697 in the previous year to UGX.650,085,882 in the year under review. Payables, worth UGX.479,457,486 were incurred without Parliamentary approval. \u2022 A budget provision of only UGX.174,520,348 was made towards the settlement of domestic arrears reported as UGX.1,941,423,697 as at the close of the prior year. \u2022 URSB has done much to ensure that the staff performance management programmes are implemented. However, the entity does not have a substantive reward and sanctions committee in place. \u2022 Out of total number of 332 staff required, only 149 positions (45%) had been filled leaving a balance of 183 positions (55%) vacant."], ["6", "Uganda Registration Services Bureau (URSB) \u2013 LIQUIDATION **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.552,004,536 representing 24%. Further, the entity remained with an unspent balance of UGX.714,656,131 representing an absorption level of 59%. \u2022 I reviewed 9 outputs worth UGX.2,284,200,400 representing 100% of the total budget and noted that 6 outputs representing 67% of the total outputs were not quantified to enable measurement of performance. Furthermore, of the 3 quantified outputs assessed, no output was fully implemented, 1 output representing 33% was partially implemented while 2 outputs representing 67% were not implemented at all. \u2022 URSB reported receivables amounting to UGX.6,252,764,629 brought forward from 2016/17 financial year and their recoveries appear remote."], ["7", "Directorate of Citizenship and Immigration Control (DCIC) **Opinion** Unqualified", "\u2022 DCIC did not budget for all revenue sources although the entity collected 116% of the target. Management regretted the omission. \u2022 DCIC had a shortfall in releases amounting to UGX.1,432,847,759 representing 1.3%. Further, the entity remained with unspent balance of UGX.5,516,448,137 representing an absorption level of 94.54%. \u2022 I sampled 160 outputs worth UGX.107.98bn representing 100% of the total budget and noted that 59 (36.9%) of the total outputs were not quantified to enable measurement of performance. Further, of the 101 quantified outputs/activities assessed, 62 outputs/activities representing 61% were fully implemented; 20 output/activity representing 20% was partially implemented while 19 output/activity representing 19% was not implemented at all."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 139, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY", "SUMMARY OF KEY FINDINGS \u2022 Domestic arrears decreased by 58% from UGX UGX. 3,910,443,177 in the previous year to UGX.1,650,152,463 in the year under review. The arrears remained unsettled at the close of the year. \u2022 Settlement of arrears amounting to UGX.1,621,318,592 outstanding from prior year (2017/18) were undertaken without allocated budget. \u2022 Out of 1736 cases, only 63 (3.6%) were fully investigated and disposed off during the year translated in underperformance of 96.4%. \u2022 Shortcomings were noted in the implementation of the provisions in the circular standing instructions on staff performance management. The gaps identified include non-completion of Performance Agreements, no quarterly reviews undertaken, no performance improvement plans prepared, non-submission of reports on Performance Agreements, Performance Appraisals, Performance Improvement Plans to MoPS and delayed handling of disciplinary cases."], "type": "table"}}, {"content": "126", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 139, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["8", "Uganda Prisons Service **Opinion** Unqualified", "\u2022 Uganda Prison Service under collected Non-Tax Revenue by UGX.10.977bn. Out of the budgeted revenue of UGX.26,860bn, only UGX.15.882bn, was collected representing the performance of only 59.1% of the target. \u2022 There was a shortfall in releases amounting to UGX. 24.468bn representing 9.4%. Further, the entity remained with an unspent balance of UGX. 64.151bn representing an absorption level of 99.9%. \u2022 I assessed 104 outputs with a total budget of UGX. 261.613bn and noted that 18 (17.3%) of the total outputs were not quantified to enable measurement of performance. Further, of the 86 quantified outputs/activities assessed, 57 outputs/activities representing 66% were fully implemented; 26 outputs/activities representing 30% were partially implemented while 3 outputs/activities representing 4% were not implemented at all. \u2022 Domestic arrears decreased by UGX.10.261bn from UGX. 76.889bn in the previous year to UGX. 66.627bn in the year under review. The arrears remained unsettled at the close of the year. \u2022 Settlement of arrears amounting to UGX.46.922bn outstanding from the prior year (2017/18) were undertaken outside the allocated budget. \u2022 UPS did not budget for court awards amounting to UGX.99,000,000 whose judgements were made in the FY 2017/18. \u2022 Shortcomings were noted in the implementation of the provisions in the circular standing instructions on staff performance management. The gaps identified include non-completion of Performance Agreements, no performance plans prepared, no performance appraisals completed, no quarterly performance reviews undertaken, no performance improvement plans"]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 140, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY", "SUMMARY OF KEY FINDINGS \u2022 Funds amounting to UGX151,644,173 were irregularly diverted and spent on other activities without seeking the necessary approvals. \u2022 Domestic arrears increased (by 14.9% from UGX. 8.858bn in the previous year to UGX. 10.182bn in the year under review. The arrears remained unsettled at the close of the year. \u2022 Shortcomings were noted in the implementation of the provisions in the circular standing instructions on staff performance management. The gaps identified include non-completion of Performance Agreements, no quarterly reviews undertaken, no performance improvement plans prepared, non-submission of reports on Performance Agreements, Performance Appraisals, Performance Improvement Plans to MoPS and lack of mechanism to monitor staff attendance. \u2022 DCIC owns several parcels situated in Ntoroko, Afogi, Oraba, Ngomoromo and Sabagoro which are not surveyed, and thus risk being encroached on by squatters. DCIC land in areas such as Opot pot, Kizinga and Mpondwe is surveyed but not titled. \u2022 Out of 673 approved staff positions, only 562 positions are filled leaving 111 positions vacant representing 16% vacancy rate. A number of officers are in acting position. \u2022 DCIC approved Organization structure lacks critical functions such as the Human resource management and development function, Finance and Administration function, Internal Audit function, and departments of ICT and Fleet management which support the functions of the Office of the Director. \u2022 A contract signed in Euros by DCIC lacked a waiver from the Minister to enter into a foreign currency designated contract. \u2022 There is no provision for payment of withholding tax in the above contract. \u2022 UGX.647,638,049, was incurred as incidental charges by Government instead of the company and are therefore considered nugatory. \u2022 UGX.197,520,700 were not adequately supported and are therefore recoverable. \u2022 3 IT systems to manage the immigration function (entry and exit of migrants) were not interconnected to enable seamless sharing of information. This may result into revenue leakages and entry of illegal immigrants. \u2022 Despite having a number of ICT systems, DCIC is affected by lack of an IT management policy, designated IT Department, shortage of staff with technical IT skills, the use of several standalone/non-integrated databases, and the outsourcing of critical IT management functions such as the management of the IT databases holding immigration information."], "type": "table"}}, {"content": "127", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 140, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["9", "Centres for Disease Control and Prevention (CDC) **Opinion** Unqualified", "\u2022 There was inaccurate financial reporting in expenditure recorded in the Accounting system and expenditure reported in the quarterly financial reports. \u2022 I noted overall budget performance of 81% for the eighteen months.  \u2022 I noted late submission of quarterly reports apart from the first quarter. \u2022 Follow up of prior year audit matters indicted that issues such as ineligible costs on VAT returns, inaccurate financial reporting, late submission of reports, realized foreign exchange was partially implemented."], ["10", "National Identification and Registration Authority (NIRA) **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.8.4 billion representing 15.8%. Further, the entity remained with an unspent balance of UGX.0.75 billion representing an absorption level of 98.3%. \u2022 I reviewed 54 outputs worth UGX.53 billion, representing 100% of the total budget and noted that 15 (27.8%) of the total outputs were not quantified to enable measurement of performance. Further, of the 39 quantified outputs/activities assessed, 23 outputs/activities representing 59% were fully implemented; 11 outputs/activities representing 28% were partially implemented while 5 outputs/activities representing 13% were not implemented at all. \u2022 Funds amounting to UGX.1.55 billion were irregularly diverted and spent on other activities without seeking the necessary approvals. \u2022 Domestic arrears increased by 103% from UGX.1.43 billion in the previous year to UGX.2.92 billion in the year under review. The arrears remained unsettled at the close of the year. \u2022 Settlement of arrears amounting to UGX.1.43 billion outstanding from the prior year (2017/18) was undertaken without an allocated budget. \u2022 Shortcomings were noted in the implementation of the provisions in the NIRA Human Resources Policy Manual and policy on staff performance management. The gaps identified include failure to develop performance plans for all staff, delays in completion of staff performance appraisals, failure to properly document staff performance improvement plans, failure to consolidate and report information on staff attendance and failure to report various aspects of staff performance management to the board in a timely manner. \u2022 NIRA paid various suppliers without recovering with or remitting WHT amounting to UGX.100,400,801. \u2022 The process of transition from a project under DCIC to NIRA is not yet complete due to delays in registering and valuing assets transferred during the transition, failure to regularise the appointment of project staff, and the failure to settle outstanding liabilities incurred under the project. \u2022 NIRA has a significant backlog of over 600,000 applications yet to be processed, with some applications taking as long as six months before processing."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 141, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY", "SUMMARY OF KEY FINDINGS prepared, no mechanism for monitoring staff attendance, non-submission of reports on absenteeism, no clear timelines for conclusion of disciplinary cases, no clear and independent rewards and sanctions committee and non-submission of reports on discipline to ministry of public service. \u2022 A number of service delivery gaps were noted such as overcrowding in prisons stations, poor sanitation in stations using the bucket system in stations with uniports and overstay on remand. \u2022 A number of weaknesses in management of Prisons land were noted including failure survey and title all prison land, disputes regarding ownership of Prison land, as well as land encroachment. \u2022 Uganda Prisons has been implementing a Human Resources Management Information system since FY2016/17. However, it is noted that todate the upload of staff information and records is yet to be completed. Also the majority of systems users are unable to use the system because user-roles have not yet been assigned. In addition, a number of critical modules such as document storage that support the upload of attachments and documents, timesheet/attendance management, performance management, discipline and transfers are not yet operational."], "type": "table"}}, {"content": [["9", "Centres for Disease Control and Prevention (CDC) **Opinion** Unqualified", "\u2022 There was inaccurate financial reporting in expenditure recorded in the Accounting system and expenditure reported in the quarterly financial reports. \u2022 I noted overall budget performance of 81% for the eighteen months.  \u2022 I noted late submission of quarterly reports apart from the first quarter. \u2022 Follow up of prior year audit matters indicted that issues such as ineligible costs on VAT returns, inaccurate financial reporting, late submission of reports, realized foreign exchange was partially implemented."], ["10", "National Identification and Registration Authority (NIRA) **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.8.4 billion representing 15.8%. Further, the entity remained with an unspent balance of UGX.0.75 billion representing an absorption level of 98.3%. \u2022 I reviewed 54 outputs worth UGX.53 billion, representing 100% of the total budget and noted that 15 (27.8%) of the total outputs were not quantified to enable measurement of performance. Further, of the 39 quantified outputs/activities assessed, 23 outputs/activities representing 59% were fully implemented; 11 outputs/activities representing 28% were partially implemented while 5 outputs/activities representing 13% were not implemented at all. \u2022 Funds amounting to UGX.1.55 billion were irregularly diverted and spent on other activities without seeking the necessary approvals. \u2022 Domestic arrears increased by 103% from UGX.1.43 billion in the previous year to UGX.2.92 billion in the year under review. The arrears remained unsettled at the close of the year. \u2022 Settlement of arrears amounting to UGX.1.43 billion outstanding from the prior year (2017/18) was undertaken without an allocated budget. \u2022 Shortcomings were noted in the implementation of the provisions in the NIRA Human Resources Policy Manual and policy on staff performance management. The gaps identified include failure to develop performance plans for all staff, delays in completion of staff performance appraisals, failure to properly document staff performance improvement plans, failure to consolidate and report information on staff attendance and failure to report various aspects of staff performance management to the board in a timely manner. \u2022 NIRA paid various suppliers without recovering with or remitting WHT amounting to UGX.100,400,801. \u2022 The process of transition from a project under DCIC to NIRA is not yet complete due to delays in registering and valuing assets transferred during the transition, failure to regularise the appointment of project staff, and the failure to settle outstanding liabilities incurred under the project. \u2022 NIRA has a significant backlog of over 600,000 applications yet to be processed, with some applications taking as long as six months before processing."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 141, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY", "SUMMARY OF KEY FINDINGS prepared, no mechanism for monitoring staff attendance, non-submission of reports on absenteeism, no clear timelines for conclusion of disciplinary cases, no clear and independent rewards and sanctions committee and non-submission of reports on discipline to ministry of public service. \u2022 A number of service delivery gaps were noted such as overcrowding in prisons stations, poor sanitation in stations using the bucket system in stations with uniports and overstay on remand. \u2022 A number of weaknesses in management of Prisons land were noted including failure survey and title all prison land, disputes regarding ownership of Prison land, as well as land encroachment. \u2022 Uganda Prisons has been implementing a Human Resources Management Information system since FY2016/17. However, it is noted that todate the upload of staff information and records is yet to be completed. Also the majority of systems users are unable to use the system because user-roles have not yet been assigned. In addition, a number of critical modules such as document storage that support the upload of attachments and documents, timesheet/attendance management, performance management, discipline and transfers are not yet operational."], "type": "table"}}, {"content": "128", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 141, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["11", "Uganda Law Reform Commission (ULRC) **Opinion** Qualified", "\u2022 ULRC had a shortfall in releases amounting to UGX. 1,500,000,000 representing 10%. Further, the entity remained with unspent balance of UGX. 3,716,923,811 representing an absorption level of 72%. \u2022 I sampled 24 outputs worth UGX.13.9 billion representing 93.8% of the total budget and noted that 18 (75%) of the total outputs were not quantified to enable measurement of performance. Further, of the 6 quantified outputs/activities assessed, 1 output representing 16.7% was fully implemented; 2 outputs/activities representing 33.3% was partially implemented while 3 outputs/activities representing 50% were not implemented at all. \u2022 The Commission\u2019s annual performance reports were incorrect and inaccurate. Out of a total of 9 outputs analysed, the completion status reported for 6 outputs were inaccurate. \u2022 Funds amounting to UGX.59,603,199 were irregularly diverted and spent on other activities at code level without seeking the necessary approvals and UGX.1,103,837,000 was diverted from the programs on which it was budgeted and spent on other programs without seeking and obtaining the necessary approvals. \u2022 Shortcomings were noted in the implementation of the provisions in the circular standing instructions on staff performance management. The gaps identified include partial completion of Performance appraisals and no quarterly reviews undertaken, no performance improvement plans prepared, non-submission of reports on Performance Appraisals and Quarterly Performance Review reports and Improvement Plans to MoPS. \u2022 The commission has an approved structure of 82 positions with 58 (71%) positions filled leaving a gap of 24 (29%) positions vacant. The critical vacant positions include; Accountant, Senior Legal Officer, Legal Officer, Senior Human Resource Officer among others."], ["12", "Office of the Director of Public Prosecutions (ODPP) **Opinion** Unqualified", "\u2022 ODPP did not set target against which the NTR performance could be measured despite collecting UGX.12,350,000 during the financial year 2018/2019. \u2022 The entity remained with unspent balance of UGX.884,297,282 representing absorption level of 97.4%. \u2022 I reviewed the 19 outputs with a total budget of UGX.34,549,244,997 implemented by the entity during the financial year, representing 100% of the total budget and noted that 9 (47%) of the total outputs were not quantified to enable measurement of performance. Further, of the 10 quantified outputs/activities assessed, 4 outputs/activities representing 40% were fully implemented; 6 output/activity representing 60% was partially implemented. \u2022 Funds amounting to UGX.84,659,759 were irregularly diverted and spent on other activities without seeking the necessary approvals. \u2022 Domestic arrears decreased (by 54.4% from UGX. 332,526,489 in the previous year to UGX.151,366,693 in the year under review. The arrears remained unsettled at the close of the year. \u2022 Settlement of arrears amounting to UGX.21,999,632 outstanding from prior year (2017/18) were undertaken without allocated budget. \u2022 Shortcomings were noted in the implementation of the provisions in the circular standing instructions on staff performance management. The gaps identified include non-completion of Performance Agreements, no quarterly reviews undertaken, no performance improvement plans prepared, non-submission of reports on Performance Agreements, Performance Appraisals,"]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 142, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY", "SUMMARY OF KEY FINDINGS \u2022 Processing time for a single application between application and printing of IT is on average six months (180 days), which is higher than the 60 days provided for under the registration of persons regulations 2015. \u2022 There has been slow progress in registering all citizens. Only 15 million Ugandans have been issued with national IDs out of the national population of over 40 million citizens. \u2022 The entity is faced with significant IT challenges. For example, NIRA does not have an approved IT continuity or disaster recovery plan, or disaster recovery site, has not documented procedures to be followed in case of emergencies regarding the IT , has no clear maintenance guidelines for IT equipment and does not have a risk management strategy for IT."], "type": "table"}}, {"content": [["11", "Uganda Law Reform Commission (ULRC) **Opinion** Qualified", "\u2022 ULRC had a shortfall in releases amounting to UGX. 1,500,000,000 representing 10%. Further, the entity remained with unspent balance of UGX. 3,716,923,811 representing an absorption level of 72%. \u2022 I sampled 24 outputs worth UGX.13.9 billion representing 93.8% of the total budget and noted that 18 (75%) of the total outputs were not quantified to enable measurement of performance. Further, of the 6 quantified outputs/activities assessed, 1 output representing 16.7% was fully implemented; 2 outputs/activities representing 33.3% was partially implemented while 3 outputs/activities representing 50% were not implemented at all. \u2022 The Commission\u2019s annual performance reports were incorrect and inaccurate. Out of a total of 9 outputs analysed, the completion status reported for 6 outputs were inaccurate. \u2022 Funds amounting to UGX.59,603,199 were irregularly diverted and spent on other activities at code level without seeking the necessary approvals and UGX.1,103,837,000 was diverted from the programs on which it was budgeted and spent on other programs without seeking and obtaining the necessary approvals. \u2022 Shortcomings were noted in the implementation of the provisions in the circular standing instructions on staff performance management. The gaps identified include partial completion of Performance appraisals and no quarterly reviews undertaken, no performance improvement plans prepared, non-submission of reports on Performance Appraisals and Quarterly Performance Review reports and Improvement Plans to MoPS. \u2022 The commission has an approved structure of 82 positions with 58 (71%) positions filled leaving a gap of 24 (29%) positions vacant. The critical vacant positions include; Accountant, Senior Legal Officer, Legal Officer, Senior Human Resource Officer among others."], ["12", "Office of the Director of Public Prosecutions (ODPP) **Opinion** Unqualified", "\u2022 ODPP did not set target against which the NTR performance could be measured despite collecting UGX.12,350,000 during the financial year 2018/2019. \u2022 The entity remained with unspent balance of UGX.884,297,282 representing absorption level of 97.4%. \u2022 I reviewed the 19 outputs with a total budget of UGX.34,549,244,997 implemented by the entity during the financial year, representing 100% of the total budget and noted that 9 (47%) of the total outputs were not quantified to enable measurement of performance. Further, of the 10 quantified outputs/activities assessed, 4 outputs/activities representing 40% were fully implemented; 6 output/activity representing 60% was partially implemented. \u2022 Funds amounting to UGX.84,659,759 were irregularly diverted and spent on other activities without seeking the necessary approvals. \u2022 Domestic arrears decreased (by 54.4% from UGX. 332,526,489 in the previous year to UGX.151,366,693 in the year under review. The arrears remained unsettled at the close of the year. \u2022 Settlement of arrears amounting to UGX.21,999,632 outstanding from prior year (2017/18) were undertaken without allocated budget. \u2022 Shortcomings were noted in the implementation of the provisions in the circular standing instructions on staff performance management. The gaps identified include non-completion of Performance Agreements, no quarterly reviews undertaken, no performance improvement plans prepared, non-submission of reports on Performance Agreements, Performance Appraisals,"]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 142, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY", "SUMMARY OF KEY FINDINGS \u2022 Processing time for a single application between application and printing of IT is on average six months (180 days), which is higher than the 60 days provided for under the registration of persons regulations 2015. \u2022 There has been slow progress in registering all citizens. Only 15 million Ugandans have been issued with national IDs out of the national population of over 40 million citizens. \u2022 The entity is faced with significant IT challenges. For example, NIRA does not have an approved IT continuity or disaster recovery plan, or disaster recovery site, has not documented procedures to be followed in case of emergencies regarding the IT , has no clear maintenance guidelines for IT equipment and does not have a risk management strategy for IT."], "type": "table"}}, {"content": "129", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 142, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["13", "Law Development Centre (LDC) **Opinion** Unqualified", "\u2022 LDC budgeted to collect NTR of UGX.8.300bn but only UGX.7.820bn was collected. The entity did not remit UGX.0.427bn of the collected funds to the consolidated fund. \u2022 There was a shortfall in releases amounting to UGX.136,279,456 representing 0.8%. Further, the entity remained with unspent balance of UGX.64,234,414 representing absorption level of 99.6%. \u2022 LDC received off-budget financing from development partners to a tune of UGX.135,704,323 which was never paid into the consolidated fund as required by the law. \u2022 I reviewed 16 out-puts worth UGX.16.8bn representing 100% of the total budget and noted that 1 (6%) of the total outputs were not quantified to enable measurement of performance. Further, of the 15 quantified outputs/activities assessed, 10 outputs/activities representing 67% were fully implemented; 4 output/activity representing 27% were partially implemented while 1 output/activity representing 7% was not implemented at all. \u2022 Funds amounting to UGX.141,466,716 were irregularly diverted and spent on other activities without seeking the necessary approvals. \u2022 Domestic arrears decreased (by 31%) from UGX.1,295,479,416 in the previous year to UGX. 893,498,165 in the year under review. The arrears remained unsettled at the close of the year. \u2022 Shortcomings were noted in the implementation of the provisions in the circular standing instructions on staff performance management. The gaps identified include non-completion of Performance Appraisals on time, no quarterly reviews undertaken, non-submission of Performance Appraisals reports to MoPS, lack of mechanism to monitor staff attendance and a client charter without a period limit to enable review of its relevance."], ["14", "Judicial Service Commission (JSC) **Opinion** Unqualified", "\u2022 The entity remained with an unspent balance of UGX. 29,183,427 representing an absorption level of 99.7%. \u2022 I reviewed 12 planned outputs with a budget of UGX.10.3bn, representing 100% of the total budget and noted that 3 outputs (25%) of the total outputs were not quantified to enable measurement of performance. Further, from the 9 quantified outputs assessed, 6 outputs representing 66.7% were fully implemented and 3 output representing 33.3% was partially implemented. \u2022 A sum of UGX.88,191,239 was irregularly diverted and spent on other activities without seeking the necessary approvals. \u2022 Shortcomings were noted in the implementation of the provisions in the circular standing instructions on staff performance management. The gaps identified include non-completion of Performance Agreements, lack of performance improvement plans and Performance Appraisals. \u2022 JSC had an approved structure of 115 staff out of which only 92 positions (80%) was filled leaving a balance of 23 positions (20%)."], ["15", "Directorate of Government Analytical Laboratories (DGAL) **Opinion** Unqualified", "\u2022 DGAL had shortfall in releases amounting to UGX.4,392,771,545 representing 19% shortfall. Further, the entity remained with unspent balance of UGX. 433,975,535 representing an absorption level of 98%. \u2022 I sampled 71 outputs worth UGX. 23.1billion representing 100% of the total budget and noted that 39(54.9%) of the total outputs were not quantified to enable measurement of performance. Further, of the 32 quantified outputs/activities assessed, 21 outputs/activities representing 66.0% were fully implemented; 6 (six) outputs/activities representing 19% were partially implemented while 5 (five) outputs/activities representing 16% were not implemented at all. \u2022 Funds amounting to UGX.68,450,611 were irregularly diverted and spent on other activities without seeking the necessary approvals."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 143, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY", "SUMMARY OF KEY FINDINGS Performance Improvement Plans to MoPS, delayed handling of disciplinary cases and expired client charter. \u2022 Out of total number of 1334 staff required, only 518 positions (39% of the approved structure) had been filled as at 30th June 2019 and 816 positions (61% of the approved structure) remained vacant."], "type": "table"}}, {"content": [["13", "Law Development Centre (LDC) **Opinion** Unqualified", "\u2022 LDC budgeted to collect NTR of UGX.8.300bn but only UGX.7.820bn was collected. The entity did not remit UGX.0.427bn of the collected funds to the consolidated fund. \u2022 There was a shortfall in releases amounting to UGX.136,279,456 representing 0.8%. Further, the entity remained with unspent balance of UGX.64,234,414 representing absorption level of 99.6%. \u2022 LDC received off-budget financing from development partners to a tune of UGX.135,704,323 which was never paid into the consolidated fund as required by the law. \u2022 I reviewed 16 out-puts worth UGX.16.8bn representing 100% of the total budget and noted that 1 (6%) of the total outputs were not quantified to enable measurement of performance. Further, of the 15 quantified outputs/activities assessed, 10 outputs/activities representing 67% were fully implemented; 4 output/activity representing 27% were partially implemented while 1 output/activity representing 7% was not implemented at all. \u2022 Funds amounting to UGX.141,466,716 were irregularly diverted and spent on other activities without seeking the necessary approvals. \u2022 Domestic arrears decreased (by 31%) from UGX.1,295,479,416 in the previous year to UGX. 893,498,165 in the year under review. The arrears remained unsettled at the close of the year. \u2022 Shortcomings were noted in the implementation of the provisions in the circular standing instructions on staff performance management. The gaps identified include non-completion of Performance Appraisals on time, no quarterly reviews undertaken, non-submission of Performance Appraisals reports to MoPS, lack of mechanism to monitor staff attendance and a client charter without a period limit to enable review of its relevance."], ["14", "Judicial Service Commission (JSC) **Opinion** Unqualified", "\u2022 The entity remained with an unspent balance of UGX. 29,183,427 representing an absorption level of 99.7%. \u2022 I reviewed 12 planned outputs with a budget of UGX.10.3bn, representing 100% of the total budget and noted that 3 outputs (25%) of the total outputs were not quantified to enable measurement of performance. Further, from the 9 quantified outputs assessed, 6 outputs representing 66.7% were fully implemented and 3 output representing 33.3% was partially implemented. \u2022 A sum of UGX.88,191,239 was irregularly diverted and spent on other activities without seeking the necessary approvals. \u2022 Shortcomings were noted in the implementation of the provisions in the circular standing instructions on staff performance management. The gaps identified include non-completion of Performance Agreements, lack of performance improvement plans and Performance Appraisals. \u2022 JSC had an approved structure of 115 staff out of which only 92 positions (80%) was filled leaving a balance of 23 positions (20%)."], ["15", "Directorate of Government Analytical Laboratories (DGAL) **Opinion** Unqualified", "\u2022 DGAL had shortfall in releases amounting to UGX.4,392,771,545 representing 19% shortfall. Further, the entity remained with unspent balance of UGX. 433,975,535 representing an absorption level of 98%. \u2022 I sampled 71 outputs worth UGX. 23.1billion representing 100% of the total budget and noted that 39(54.9%) of the total outputs were not quantified to enable measurement of performance. Further, of the 32 quantified outputs/activities assessed, 21 outputs/activities representing 66.0% were fully implemented; 6 (six) outputs/activities representing 19% were partially implemented while 5 (five) outputs/activities representing 16% were not implemented at all. \u2022 Funds amounting to UGX.68,450,611 were irregularly diverted and spent on other activities without seeking the necessary approvals."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 143, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY", "SUMMARY OF KEY FINDINGS Performance Improvement Plans to MoPS, delayed handling of disciplinary cases and expired client charter. \u2022 Out of total number of 1334 staff required, only 518 positions (39% of the approved structure) had been filled as at 30th June 2019 and 816 positions (61% of the approved structure) remained vacant."], "type": "table"}}, {"content": "130", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 143, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["16", "Ministry of Internal Affairs (MIA) **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.0.964 billion representing 3.3%. Further, the entity remained with unspent balance of UGX.0.584 billion representing an absorption level of 98%.  \u2022 I sampled 131 outputs worth UGX.22.6 billion representing 79% of the total budget and noted that 34 (26%) of the total outputs were not quantified to enable measurement of performance. Further, of the 97 quantified outputs/activities assessed, 63 outputs/activities representing 65% were fully implemented; 28 outputs/activities representing 29% were partially implemented while 6 outputs/activities representing 6% were not implemented at all.  \u2022 A sum of UGX.219,380,189 paid out as honoraria and retainer to members of the police council was inappropriately budgeted for and charged under code 221006 for commissions and related charges.  \u2022 The Ministry made payments of UGX.375,691,638 into staff personal accounts for undertaking various activities and in some instances to pay suppliers contrary to the provisions in the Treasury Accounting Instructions.  \u2022 The Ministry procured stationery items and motor-vehicle repairs and services and other related supplies from different suppliers worth UGX.539,289,212 without framework contracts.  \u2022 Shortcomings were noted in the implementation of the provisions in the circular standing instructions on staff performance management. The gaps identified include non-completion of Performance Agreements by some staff, no quarterly reviews undertaken, no performance improvement plans prepared by some staff, non-submission of reports on Performance Agreements, Performance Appraisals, and Performance Improvement Plans to MoPS.  \u2022 311 positions out of which 120 are filled resulting in a shortfall of 191 (representing 61%). Audit noted that critical positions such as Assistant Commissioner Community Service, Procurement Officer, Principal Internal Auditor and a number of probation officers were vacant at the year-end."], ["17", "Amnesty Commission **Opinion** Unqualified", "\u2022 Amnesty commission had a shortfall in releases amounting to UGX.738,741,155 representing 11%. \u2022 I sampled 24 out-puts worth UGX.6.6 billion representing 100% of the total budget and noted that 8 (33%) of the total outputs were not quantified to enable measurement of performance. Further, of the 16 quantified outputs/activities assessed, 10 outputs/activities representing 63% were fully implemented; 6 output/activity representing 37% was partially implemented."], ["18", "Justice, Law & Order Sector Project **Opinion** Unqualified", "\u2022 Out of the budgeted revenue of UGX 110,115,668,626, only UGX. 93,185,801,198 was disbursed to the respective beneficiary institutions representing underperformance of 15.4%. \u2022 The Sector remained with an unspent balance of UGX. 27,371,501,905 representing an absorption level of 71.2%. \u2022 I reviewed 582 outputs worth UGX.101.45 billion, representing 99.1% of the available funds and noted that 26 outputs (4.46%) of the total outputs were not quantified to enable measurement of performance. Further, of the 556 quantified outputs/activities assessed, 298 outputs/activities representing 53.6% were fully implemented; 147 outputs/activities representing 26.44% were partially implemented, and 111 outputs/activities representing 19.96% were not implemented at all."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 144, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY", "SUMMARY OF KEY FINDINGS \u2022 During the year, I noted that DGAL analyzed 87.3% or 2247 cases out of 2573 applications received. The backlog cases yet to be investigated, which stands at 3,492 has reduced by 37% from the previous year. \u2022 Shortcomings were noted in the implementation of the provisions in the circular standing instructions on staff performance management. The gaps identified include non-completion of Performance plans, no quarterly reviews undertaken, no performance improvement plans prepared, non-submission of reports on Performance Agreements, Performance Appraisals, Performance Improvement Plans to MoPS, Absenteeism. \u2022 DGAL structure provides for 124 positions out of which 58 are filled resulting in a shortfall of 66 (representing 53% of the establishment). Key positions of Commissioner, Assistant Commissioner, Principal and Senior Government Analysists were vacant at the year end."], "type": "table"}}, {"content": [["16", "Ministry of Internal Affairs (MIA) **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.0.964 billion representing 3.3%. Further, the entity remained with unspent balance of UGX.0.584 billion representing an absorption level of 98%.  \u2022 I sampled 131 outputs worth UGX.22.6 billion representing 79% of the total budget and noted that 34 (26%) of the total outputs were not quantified to enable measurement of performance. Further, of the 97 quantified outputs/activities assessed, 63 outputs/activities representing 65% were fully implemented; 28 outputs/activities representing 29% were partially implemented while 6 outputs/activities representing 6% were not implemented at all.  \u2022 A sum of UGX.219,380,189 paid out as honoraria and retainer to members of the police council was inappropriately budgeted for and charged under code 221006 for commissions and related charges.  \u2022 The Ministry made payments of UGX.375,691,638 into staff personal accounts for undertaking various activities and in some instances to pay suppliers contrary to the provisions in the Treasury Accounting Instructions.  \u2022 The Ministry procured stationery items and motor-vehicle repairs and services and other related supplies from different suppliers worth UGX.539,289,212 without framework contracts.  \u2022 Shortcomings were noted in the implementation of the provisions in the circular standing instructions on staff performance management. The gaps identified include non-completion of Performance Agreements by some staff, no quarterly reviews undertaken, no performance improvement plans prepared by some staff, non-submission of reports on Performance Agreements, Performance Appraisals, and Performance Improvement Plans to MoPS.  \u2022 311 positions out of which 120 are filled resulting in a shortfall of 191 (representing 61%). Audit noted that critical positions such as Assistant Commissioner Community Service, Procurement Officer, Principal Internal Auditor and a number of probation officers were vacant at the year-end."], ["17", "Amnesty Commission **Opinion** Unqualified", "\u2022 Amnesty commission had a shortfall in releases amounting to UGX.738,741,155 representing 11%. \u2022 I sampled 24 out-puts worth UGX.6.6 billion representing 100% of the total budget and noted that 8 (33%) of the total outputs were not quantified to enable measurement of performance. Further, of the 16 quantified outputs/activities assessed, 10 outputs/activities representing 63% were fully implemented; 6 output/activity representing 37% was partially implemented."], ["18", "Justice, Law & Order Sector Project **Opinion** Unqualified", "\u2022 Out of the budgeted revenue of UGX 110,115,668,626, only UGX. 93,185,801,198 was disbursed to the respective beneficiary institutions representing underperformance of 15.4%. \u2022 The Sector remained with an unspent balance of UGX. 27,371,501,905 representing an absorption level of 71.2%. \u2022 I reviewed 582 outputs worth UGX.101.45 billion, representing 99.1% of the available funds and noted that 26 outputs (4.46%) of the total outputs were not quantified to enable measurement of performance. Further, of the 556 quantified outputs/activities assessed, 298 outputs/activities representing 53.6% were fully implemented; 147 outputs/activities representing 26.44% were partially implemented, and 111 outputs/activities representing 19.96% were not implemented at all."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 144, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY", "SUMMARY OF KEY FINDINGS \u2022 During the year, I noted that DGAL analyzed 87.3% or 2247 cases out of 2573 applications received. The backlog cases yet to be investigated, which stands at 3,492 has reduced by 37% from the previous year. \u2022 Shortcomings were noted in the implementation of the provisions in the circular standing instructions on staff performance management. The gaps identified include non-completion of Performance plans, no quarterly reviews undertaken, no performance improvement plans prepared, non-submission of reports on Performance Agreements, Performance Appraisals, Performance Improvement Plans to MoPS, Absenteeism. \u2022 DGAL structure provides for 124 positions out of which 58 are filled resulting in a shortfall of 66 (representing 53% of the establishment). Key positions of Commissioner, Assistant Commissioner, Principal and Senior Government Analysists were vacant at the year end."], "type": "table"}}, {"content": "131", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 144, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["", "**PUBLIC ADMINISTRATIO N SECTOR**", ""], ["1", "Uganda Embassy in Rome **Opinion** Unqualified", "\u2022 Out of the budgeted NTR of UGX.672,371,000 for the year 2018/19, only UGX.131,992,133 was collected representing performance of only 19% of the target. \u2022 Domestic arrears of UGX.444,530,836 from the previous year remained unsettled at the close of the year. \u2022 Settlement of arrears amounting to UGX.206,862,019 from the prior year (2017/18) was undertaken without allocated budget. \u2022 The Embassy is involved in four court cases with a contingent liability of UGX.1,189,468,070. \u2022 Euros.5,336.81 (UGX.22,554,639) remained unaccounted for at the time of audit. \u2022 The Embassy lacks budgetary allocations for furniture and security at the Chancery and Official residence. \u2022 Euro.18,181.81 (UGX.76,840,693) in respect of Education Allowances was paid directly to beneficiaries instead of Education Institutions contrary to Public Service Standing Orders. \u2022 Euros.114,904.59 (UGX.485,614,374) was allegedly transferred to the Embassy in error over and above its 2nd quarter release of the financial year 2018/2019. The Mission subsequently remitted the funds to a Treasury Holding Account number 003300328000012 for Missions abroad but the funds were never acknowledged by the Ministry of Finance, Planning and Economic Development. \u2022 Euros.116,990.00 (UGX.494,427,818) was paid as rent during the year under without consultation and authorization from the Permanent Secretary Ministry of Foreign Affairs. \u2022 Shortcomings were noted in the implementation of the provisions in the circular standing instructions on staff performance management. The gaps identified include non-completion of Performance Agreements, no quarterly reviews undertaken, no performance improvement plans prepared, non-submission of reports on Performance Agreements, Performance Appraisals, Performance Improvement Plans to MoPS and lack of mechanism to monitor staff attendance."], ["2", "Uganda Embassy in Riyadh **Opinion** Qualified", "\u2022 Funds to a tune of UGX.305,007,954 that was misappropriated has been outstanding and has been kept in the Embassy records since 2012 despite Auditor General\u2019s recommendation to have it written off in line with PFMA. The figure distorts the Embassy\u2019s reporting mechanism. \u2022 The Embassy remained with unspent balance of UGX.0.044bn representing an absorption level of 99.8%. \u2022 Out of the 3 quantified outputs assessed, 1 output representing 33% was fully implemented while 2 outputs representing 67% were partially implemented. \u2022 Shortcomings were noted in the implementation of the provisions in the circular standing instructions on staff performance management. The gaps identified include non-completion of Performance Agreements by 1 staff member, failure to develop performance plans, non- completion of performance appraisals, no quarterly reviews undertaken, non-completion of performance improvement plans, and non-submission of reports on Performance Agreements, Performance Appraisals and Performance Improvement Plans to MoPS. \u2022 The embassy paid UGX.64,869,991 in respect of educational allowances direct to its officials instead of their respective educational institutions or schools contrary to PSSO."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 145, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY", "SUMMARY OF KEY FINDINGS \u2022 Funds amounting to UGX. 120,000,000 were irregularly diverted by DCIC and spent on another activity without seeking the necessary approvals. \u2022 Payments amounting to UGX. 964,565,970 made to various beneficiaries for the execution of sector activities still lacked necessary support documents. \u2022 Uganda Prisons Services entered into multi-year contracts totaling to UGX. 24,126,064,939 without Parliamentary approval. Besides, the contracts may not have been included in the Medium Term Expenditure Framework."], "type": "table"}}, {"content": [["", "**PUBLIC ADMINISTRATIO N SECTOR**", ""], ["1", "Uganda Embassy in Rome **Opinion** Unqualified", "\u2022 Out of the budgeted NTR of UGX.672,371,000 for the year 2018/19, only UGX.131,992,133 was collected representing performance of only 19% of the target. \u2022 Domestic arrears of UGX.444,530,836 from the previous year remained unsettled at the close of the year. \u2022 Settlement of arrears amounting to UGX.206,862,019 from the prior year (2017/18) was undertaken without allocated budget. \u2022 The Embassy is involved in four court cases with a contingent liability of UGX.1,189,468,070. \u2022 Euros.5,336.81 (UGX.22,554,639) remained unaccounted for at the time of audit. \u2022 The Embassy lacks budgetary allocations for furniture and security at the Chancery and Official residence. \u2022 Euro.18,181.81 (UGX.76,840,693) in respect of Education Allowances was paid directly to beneficiaries instead of Education Institutions contrary to Public Service Standing Orders. \u2022 Euros.114,904.59 (UGX.485,614,374) was allegedly transferred to the Embassy in error over and above its 2nd quarter release of the financial year 2018/2019. The Mission subsequently remitted the funds to a Treasury Holding Account number 003300328000012 for Missions abroad but the funds were never acknowledged by the Ministry of Finance, Planning and Economic Development. \u2022 Euros.116,990.00 (UGX.494,427,818) was paid as rent during the year under without consultation and authorization from the Permanent Secretary Ministry of Foreign Affairs. \u2022 Shortcomings were noted in the implementation of the provisions in the circular standing instructions on staff performance management. The gaps identified include non-completion of Performance Agreements, no quarterly reviews undertaken, no performance improvement plans prepared, non-submission of reports on Performance Agreements, Performance Appraisals, Performance Improvement Plans to MoPS and lack of mechanism to monitor staff attendance."], ["2", "Uganda Embassy in Riyadh **Opinion** Qualified", "\u2022 Funds to a tune of UGX.305,007,954 that was misappropriated has been outstanding and has been kept in the Embassy records since 2012 despite Auditor General\u2019s recommendation to have it written off in line with PFMA. The figure distorts the Embassy\u2019s reporting mechanism. \u2022 The Embassy remained with unspent balance of UGX.0.044bn representing an absorption level of 99.8%. \u2022 Out of the 3 quantified outputs assessed, 1 output representing 33% was fully implemented while 2 outputs representing 67% were partially implemented. \u2022 Shortcomings were noted in the implementation of the provisions in the circular standing instructions on staff performance management. The gaps identified include non-completion of Performance Agreements by 1 staff member, failure to develop performance plans, non- completion of performance appraisals, no quarterly reviews undertaken, non-completion of performance improvement plans, and non-submission of reports on Performance Agreements, Performance Appraisals and Performance Improvement Plans to MoPS. \u2022 The embassy paid UGX.64,869,991 in respect of educational allowances direct to its officials instead of their respective educational institutions or schools contrary to PSSO."], ["3", "Uganda Embassy in Berlin", "\u2022 Funds to a tune of Euro.30,111.52 (approximately UGX.126,573,473) were diverted and charged wrong expenditure codes."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 145, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY", "SUMMARY OF KEY FINDINGS \u2022 Funds amounting to UGX. 120,000,000 were irregularly diverted by DCIC and spent on another activity without seeking the necessary approvals. \u2022 Payments amounting to UGX. 964,565,970 made to various beneficiaries for the execution of sector activities still lacked necessary support documents. \u2022 Uganda Prisons Services entered into multi-year contracts totaling to UGX. 24,126,064,939 without Parliamentary approval. Besides, the contracts may not have been included in the Medium Term Expenditure Framework."], "type": "table"}}, {"content": "132", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 145, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["4", "Uganda Embassy in Abu Dhabi **Opinion** Unqualified", "\u2022 Out of the budgeted NTR of UGX.60,000,000 for the year 2018/19, only UGX.48,153,854 was collected leaving a balance of UGX.11,846,146. The unrealized balance constituted 20% of the budgeted revenue. \u2022 UGX.22,239,757 in NTR collected during the year under review was not remitted to the Consolidated Fund contrary to the law. \u2022 Items worth UGX.3.399bn that were regarded as critical for the operations of the Embassy in achieving its mandate remain unfunded priorities. \u2022 UGX.11,127,880 reported in cash and cash equivalents as at 30th June, 2019. This amount was not repaid to the Consolidated Fund contrary to the law. \u2022 UGX.5,424,243 was used to settle part of outstanding domestic arrears during the year without a budget allocation. \u2022 Embassy established a rescue accommodation centre for Ugandans in distress and rescued 200 Ugandans during the year under review. The Embassy has been engaging the parents, the church in UAE and Ugandan Community to return the girls which appears unsustainable. \u2022 UGX.114,616,450 in respect of Education Allowances was paid direct to its officials instead of their respective educational institutions or schools contrary to Public Service Standing Orders. \u2022 UGX.1,740,945,600 was as rent during the year without consultation and authorisation of the Responsible Permanent Secretary. \u2022 11 local staff were appointed without following the guidelines for appointment of local staff in Missions. \u2022 The Mission lacks one Foreign Service officer grade one, one foreign service officer grade IV and a personal secretary. \u2022 Shortcomings were noted in the implementation of the provisions in the Circular Standing Instructions on staff performance management initiatives. The gaps identified include non- completion of Performance Agreements, failure to develop performance plans, non-completion of performance appraisals, no quarterly reviews undertaken, non-completion of performance improvement plans, and non-submission of reports on Performance Agreements, Performance Appraisals and Performance Improvement Plans to MoPS."], ["5", "Uganda Mission in Algiers **Opinion** Unqualified", "\u2022 The Embassy did not budget to collect revenue during the financial year 2018/19 despite collecting UGX.10,657,356 during the year. \u2022 Out of the warrants of UGX3.517bn, UGX.3,502bn was spent by the embassy resulting in an unspent balance of UGX.14,562,771 representing an absorption level of 99.6 %. \u2022 I sampled 3 out-puts worth UGX.3.517bn representing 100% of the total budget and noted that 1 (33%) of the total outputs were not quantified to enable measurement of performance. Further, of the 2 quantified outputs/activities assessed, 2 output/activity representing 100% was partially implemented."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 146, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY Opinion Unqualified", "SUMMARY OF KEY FINDINGS \u2022 Out of the warrants of UGX.5.187bn, UGX.5.102bn was spent by the Embassy resulting into unspent balance of UGX.0.084bn representing an absorption level of 98%. The Embassy planned to achieve its deliverables through the implementation of 9 outputs. I sampled all the outputs/activities and noted that out of the 9 quantified outputs/activities assessed, 5 outputs/activities representing 56% were fully implemented while 4 outputs/activities representing 44% were partially implemented. At end of the financial year, the Embassy had a sum of UGX. 80,830,255 on the expenditure account due to the consolidated fund. \u2022 Shortcomings were noted in the implementation of the provisions in the circular standing instructions on staff performance management. Some of the gaps identified include non- completion of Performance Agreements, all staff had not developed performance plans, non- completion of performance appraisals by 5 staff. \u2022 Contrary to Section (E - e) Paragraphs 19 and 20 of the PSSO, the embassy paid Euro.21,412.54 (approximately UGX.89,932,668) in respect of educational allowances direct to its officials instead of their respective educational institutions or schools."], "type": "table"}}, {"content": [["4", "Uganda Embassy in Abu Dhabi **Opinion** Unqualified", "\u2022 Out of the budgeted NTR of UGX.60,000,000 for the year 2018/19, only UGX.48,153,854 was collected leaving a balance of UGX.11,846,146. The unrealized balance constituted 20% of the budgeted revenue. \u2022 UGX.22,239,757 in NTR collected during the year under review was not remitted to the Consolidated Fund contrary to the law. \u2022 Items worth UGX.3.399bn that were regarded as critical for the operations of the Embassy in achieving its mandate remain unfunded priorities. \u2022 UGX.11,127,880 reported in cash and cash equivalents as at 30th June, 2019. This amount was not repaid to the Consolidated Fund contrary to the law. \u2022 UGX.5,424,243 was used to settle part of outstanding domestic arrears during the year without a budget allocation. \u2022 Embassy established a rescue accommodation centre for Ugandans in distress and rescued 200 Ugandans during the year under review. The Embassy has been engaging the parents, the church in UAE and Ugandan Community to return the girls which appears unsustainable. \u2022 UGX.114,616,450 in respect of Education Allowances was paid direct to its officials instead of their respective educational institutions or schools contrary to Public Service Standing Orders. \u2022 UGX.1,740,945,600 was as rent during the year without consultation and authorisation of the Responsible Permanent Secretary. \u2022 11 local staff were appointed without following the guidelines for appointment of local staff in Missions. \u2022 The Mission lacks one Foreign Service officer grade one, one foreign service officer grade IV and a personal secretary. \u2022 Shortcomings were noted in the implementation of the provisions in the Circular Standing Instructions on staff performance management initiatives. The gaps identified include non- completion of Performance Agreements, failure to develop performance plans, non-completion of performance appraisals, no quarterly reviews undertaken, non-completion of performance improvement plans, and non-submission of reports on Performance Agreements, Performance Appraisals and Performance Improvement Plans to MoPS."], ["5", "Uganda Mission in Algiers **Opinion** Unqualified", "\u2022 The Embassy did not budget to collect revenue during the financial year 2018/19 despite collecting UGX.10,657,356 during the year. \u2022 Out of the warrants of UGX3.517bn, UGX.3,502bn was spent by the embassy resulting in an unspent balance of UGX.14,562,771 representing an absorption level of 99.6 %. \u2022 I sampled 3 out-puts worth UGX.3.517bn representing 100% of the total budget and noted that 1 (33%) of the total outputs were not quantified to enable measurement of performance. Further, of the 2 quantified outputs/activities assessed, 2 output/activity representing 100% was partially implemented."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 146, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY Opinion Unqualified", "SUMMARY OF KEY FINDINGS \u2022 Out of the warrants of UGX.5.187bn, UGX.5.102bn was spent by the Embassy resulting into unspent balance of UGX.0.084bn representing an absorption level of 98%. The Embassy planned to achieve its deliverables through the implementation of 9 outputs. I sampled all the outputs/activities and noted that out of the 9 quantified outputs/activities assessed, 5 outputs/activities representing 56% were fully implemented while 4 outputs/activities representing 44% were partially implemented. At end of the financial year, the Embassy had a sum of UGX. 80,830,255 on the expenditure account due to the consolidated fund. \u2022 Shortcomings were noted in the implementation of the provisions in the circular standing instructions on staff performance management. Some of the gaps identified include non- completion of Performance Agreements, all staff had not developed performance plans, non- completion of performance appraisals by 5 staff. \u2022 Contrary to Section (E - e) Paragraphs 19 and 20 of the PSSO, the embassy paid Euro.21,412.54 (approximately UGX.89,932,668) in respect of educational allowances direct to its officials instead of their respective educational institutions or schools."], "type": "table"}}, {"content": "133", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 146, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["6", "Uganda Embassy in Cairo **Opinion** Qualified", "\u2022 The Embassy had domestic arrears of UGX.160,886,215 from the previous year of which UGX.81,383,976 was paid leaving a balance of UGX.79,022,891. \u2022 The outstanding domestic arrears presented lacked supporting documentation. \u2022 The Embassy remained with unspent balance of UGX.125,336,976 representing an absorption level of 98.2%. \u2022 Inspection of assets owned by the embassy revealed that some are in poor condition and are in need of urgent renovation and/or replacement. \u2022 The Mission was operating without a charter to guide its operations. \u2022 Shortcomings were noted in the implementation of the provisions in the Circular Standing Instructions on staff performance management initiatives. The gaps identifies included: non completion of performance agreements, failure to develop performance plans, failure to conduct staff appraisals, lack of quarterly performance reviews and failure to submit reports on staff performance management initiatives."], ["7", "Uganda Embassy in Brussels **Opinion** Unqualified", "\u2022 Out of the warrants of UGX.12.803bn, UGX.12.363bn was spent by the Embassy resulting into unspent balance of UGX.0.440bn representing an absorption level of 96%. \u2022 Out of the 17 quantified outputs/activities assessed, 8 outputs/activities representing 47% were fully implemented while 9 outputs/activities representing 53% were partially implemented. \u2022 During the period under review, a sum of Euro.1,643,904.53 was released MoFPED to undertake consultancy services and renovation of the Uganda Chancery building. However, at the time of inspection, construction works had not started. \u2022 Payables amounting to UGX.36,954,243 were disclosed. Included in this figure is an amount of UGX.14,791,840 that has been outstanding for a long period of time. \u2022 A loss of UGX.23,138,762 relating to visa stickers has been outstanding and has been kept in the Embassy records since 2010/2011 despite Auditor General\u2019s recommendation to have this loss written off in line with PFMA. \u2022 Shortcomings were noted in the implementation of the provisions in the circular standing instructions on staff performance management. Some of the gaps identified include non- completion of Performance Agreements, failure to develop performance plans, non-completion of performance appraisals, and non-submission of reports on Performance Agreements, Performance Appraisals and Performance Improvement Plans to MoPS. \u2022 Contrary to Section (E - e) Paragraphs 19 and 20 of the PSSO, the embassy paid Euro.22,011.56 (approximately UGX.93,020,852) in respect of educational allowances direct to its officials instead of their respective educational institutions or schools. \u2022 The Embassy has 3 old vehicles that have been running for a period of over 10 years and have reached zero value and are costing the Embassy an average Euro.9,000 per annum on repairs and maintenance. Euro.3,206.44 was paid as insurance to cover these which is not in line with vehicle maintenance standards Belgium and is costly."], ["8", "Uganda High Commission New Delhi **Opinion** Unqualified", "\u2022 Domestic arrears increased by 16% from UGX491,339,828 in the previous year to UGX. 585,531,516 in the year under review. The arrears remained unsettled at the close of the year. \u2022 Settlement of the arrears amounting to UGX.184,886,497 outstanding from prior year (2017/18) were undertaken without allocated budget. \u2022 The entity remained with unspent balance of UGX. 255,841,776 representing an absorption level of 95%."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 147, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY", "SUMMARY OF KEY FINDINGS \u2022 The embassy paid UGX.81,583,745 in respect of educational allowances direct to its officials instead of their respective educational institutions or schools contrary to PSSO. \u2022 Shortcomings were noted in the implementation of the provisions in the Circular Standing Instructions on staff performance management initiatives. The gaps identified include non- completion of Performance Agreements, failure to develop performance plans, non-completion of performance appraisals, no quarterly reviews undertaken, non-completion of performance improvement plans, and non-submission of reports on Performance Agreements, Performance Appraisals and Performance Improvement Plans to MoPS."], "type": "table"}}, {"content": [["6", "Uganda Embassy in Cairo **Opinion** Qualified", "\u2022 The Embassy had domestic arrears of UGX.160,886,215 from the previous year of which UGX.81,383,976 was paid leaving a balance of UGX.79,022,891. \u2022 The outstanding domestic arrears presented lacked supporting documentation. \u2022 The Embassy remained with unspent balance of UGX.125,336,976 representing an absorption level of 98.2%. \u2022 Inspection of assets owned by the embassy revealed that some are in poor condition and are in need of urgent renovation and/or replacement. \u2022 The Mission was operating without a charter to guide its operations. \u2022 Shortcomings were noted in the implementation of the provisions in the Circular Standing Instructions on staff performance management initiatives. The gaps identifies included: non completion of performance agreements, failure to develop performance plans, failure to conduct staff appraisals, lack of quarterly performance reviews and failure to submit reports on staff performance management initiatives."], ["7", "Uganda Embassy in Brussels **Opinion** Unqualified", "\u2022 Out of the warrants of UGX.12.803bn, UGX.12.363bn was spent by the Embassy resulting into unspent balance of UGX.0.440bn representing an absorption level of 96%. \u2022 Out of the 17 quantified outputs/activities assessed, 8 outputs/activities representing 47% were fully implemented while 9 outputs/activities representing 53% were partially implemented. \u2022 During the period under review, a sum of Euro.1,643,904.53 was released MoFPED to undertake consultancy services and renovation of the Uganda Chancery building. However, at the time of inspection, construction works had not started. \u2022 Payables amounting to UGX.36,954,243 were disclosed. Included in this figure is an amount of UGX.14,791,840 that has been outstanding for a long period of time. \u2022 A loss of UGX.23,138,762 relating to visa stickers has been outstanding and has been kept in the Embassy records since 2010/2011 despite Auditor General\u2019s recommendation to have this loss written off in line with PFMA. \u2022 Shortcomings were noted in the implementation of the provisions in the circular standing instructions on staff performance management. Some of the gaps identified include non- completion of Performance Agreements, failure to develop performance plans, non-completion of performance appraisals, and non-submission of reports on Performance Agreements, Performance Appraisals and Performance Improvement Plans to MoPS. \u2022 Contrary to Section (E - e) Paragraphs 19 and 20 of the PSSO, the embassy paid Euro.22,011.56 (approximately UGX.93,020,852) in respect of educational allowances direct to its officials instead of their respective educational institutions or schools. \u2022 The Embassy has 3 old vehicles that have been running for a period of over 10 years and have reached zero value and are costing the Embassy an average Euro.9,000 per annum on repairs and maintenance. Euro.3,206.44 was paid as insurance to cover these which is not in line with vehicle maintenance standards Belgium and is costly."], ["8", "Uganda High Commission New Delhi **Opinion** Unqualified", "\u2022 Domestic arrears increased by 16% from UGX491,339,828 in the previous year to UGX. 585,531,516 in the year under review. The arrears remained unsettled at the close of the year. \u2022 Settlement of the arrears amounting to UGX.184,886,497 outstanding from prior year (2017/18) were undertaken without allocated budget. \u2022 The entity remained with unspent balance of UGX. 255,841,776 representing an absorption level of 95%."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 147, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY", "SUMMARY OF KEY FINDINGS \u2022 The embassy paid UGX.81,583,745 in respect of educational allowances direct to its officials instead of their respective educational institutions or schools contrary to PSSO. \u2022 Shortcomings were noted in the implementation of the provisions in the Circular Standing Instructions on staff performance management initiatives. The gaps identified include non- completion of Performance Agreements, failure to develop performance plans, non-completion of performance appraisals, no quarterly reviews undertaken, non-completion of performance improvement plans, and non-submission of reports on Performance Agreements, Performance Appraisals and Performance Improvement Plans to MoPS."], "type": "table"}}, {"content": "134", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 147, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["9", "Uganda Embassy in Moscow **Opinion** Unqualified", "\u2022 Out of the projected revenue of UGX.263,570,000 for the year 2018/19, only UGX.58,492,096 was collected representing a performance of 22%% of the target. \u2022 Domestic arrears decreased (by 47%) from UGX.246,010,870 in the previous year to UGX.127,990,675 in the year under review. The arrears remained unsettled at the close of the year. \u2022 Settlement of arrears amounting to UGX.118,453,209 outstanding from prior year (2017/18) were undertaken without allocated budget. \u2022 The Head of Mission did not presented credentials to 5 countries (Georgia, Ukraine, Kazakhstan, Mongolia and Uzbekistan) due to budgetary constraints and therefore cannot participate in the promotion of trade, tourism and investment. \u2022 Shortcomings were noted in the implementation of the provisions in the Circular Standing Instructions on staff performance management initiatives. The gaps identifies included: staff did not develop performance plans, performance appraisals, quarterly performance reviews and the Embassy lacks a charter. Besides, the respective reports were not submitted to MOPS contrary to the requirement."], ["10", "Uganda Embassy in Geneva **Opinion** Unqualified", "\u2022 The mission received all budgeted funds amounting to UGX.7.608bn representing 100%. Further, the entity overspent its budget by UGX.7,582,229. \u2022 I sampled 16 out-puts worth UGX.7.216bn representing 95% of the total budget and noted that 1 (6%) output was not quantified to enable measurement of performance. Further, of the 5 quantified outputs/activities assessed, 2 outputs/activities representing 40% were fully implemented and 3 outputs/activities representing 60% were partially implemented. \u2022 Funds amounting to UGX.47,268,000 were irregularly diverted and spent on other activities without seeking the necessary approvals. \u2022 Shortcomings were noted in the implementation of the provisions in the circular standing instructions on staff performance management. The gaps identified include non-completion of Performance Agreements, no quarterly reviews undertaken, non-completion of performance plans and appraisals and non-submission of reports on Performance Agreements, Performance Appraisals, Performance Improvement Plans to MoPS. \u2022 I noted that management had not taken action on the previous year\u2019s recommendations from the annual Board of Survey to dispose of some equipment."], ["11", "Uganda Embassy in Paris **Opinion** Unqualified", "\u2022 UGX.447,314,902 NTR collections including balance brought forward from previous year had not been remitted to MOFPED at the time of inspection in September. \u2022 The mission received all budgeted funds amounting to UGX.6.35bn representing 100%. Further, the entity remained with unspent balance of UGX.0.065bn representing an absorption level of 99%. \u2022 I sampled 12 out-puts worth UGX.5.666bn representing 89% of the total budget and noted that 5 (42%) output were not quantified to enable measurement of performance. Further, of the 7 quantified outputs/activities assessed, 3 outputs/activities representing 43% were fully implemented and 1 output/activity representing 14% was partially implemented while 3 outputs/activities representing 43% were not implemented at all. \u2022 Domestic arrears decreased by 29% from UGX.13,381,739 in the previous year to UGX.9,553,986 in the year under review. The arrears remained unsettled at the close of the year"]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 148, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY", "SUMMARY OF KEY FINDINGS \u2022 UGX. 24,198,324 in NTR collected during the year under review was not remitted to the Consolidated Fund contrary to the law. \u2022 Shortcomings were noted in the implementation of the provisions in the Circular Standing Instructions on staff performance management initiatives. The gaps identified include non- completion of Performance Agreements, failure to develop performance plans, non-completion of performance appraisals, no quarterly reviews undertaken, non-completion of performance improvement plans, and non-submission of reports on Performance Agreements, Performance Appraisals and Performance Improvement Plans to MoPS."], "type": "table"}}, {"content": [["9", "Uganda Embassy in Moscow **Opinion** Unqualified", "\u2022 Out of the projected revenue of UGX.263,570,000 for the year 2018/19, only UGX.58,492,096 was collected representing a performance of 22%% of the target. \u2022 Domestic arrears decreased (by 47%) from UGX.246,010,870 in the previous year to UGX.127,990,675 in the year under review. The arrears remained unsettled at the close of the year. \u2022 Settlement of arrears amounting to UGX.118,453,209 outstanding from prior year (2017/18) were undertaken without allocated budget. \u2022 The Head of Mission did not presented credentials to 5 countries (Georgia, Ukraine, Kazakhstan, Mongolia and Uzbekistan) due to budgetary constraints and therefore cannot participate in the promotion of trade, tourism and investment. \u2022 Shortcomings were noted in the implementation of the provisions in the Circular Standing Instructions on staff performance management initiatives. The gaps identifies included: staff did not develop performance plans, performance appraisals, quarterly performance reviews and the Embassy lacks a charter. Besides, the respective reports were not submitted to MOPS contrary to the requirement."], ["10", "Uganda Embassy in Geneva **Opinion** Unqualified", "\u2022 The mission received all budgeted funds amounting to UGX.7.608bn representing 100%. Further, the entity overspent its budget by UGX.7,582,229. \u2022 I sampled 16 out-puts worth UGX.7.216bn representing 95% of the total budget and noted that 1 (6%) output was not quantified to enable measurement of performance. Further, of the 5 quantified outputs/activities assessed, 2 outputs/activities representing 40% were fully implemented and 3 outputs/activities representing 60% were partially implemented. \u2022 Funds amounting to UGX.47,268,000 were irregularly diverted and spent on other activities without seeking the necessary approvals. \u2022 Shortcomings were noted in the implementation of the provisions in the circular standing instructions on staff performance management. The gaps identified include non-completion of Performance Agreements, no quarterly reviews undertaken, non-completion of performance plans and appraisals and non-submission of reports on Performance Agreements, Performance Appraisals, Performance Improvement Plans to MoPS. \u2022 I noted that management had not taken action on the previous year\u2019s recommendations from the annual Board of Survey to dispose of some equipment."], ["11", "Uganda Embassy in Paris **Opinion** Unqualified", "\u2022 UGX.447,314,902 NTR collections including balance brought forward from previous year had not been remitted to MOFPED at the time of inspection in September. \u2022 The mission received all budgeted funds amounting to UGX.6.35bn representing 100%. Further, the entity remained with unspent balance of UGX.0.065bn representing an absorption level of 99%. \u2022 I sampled 12 out-puts worth UGX.5.666bn representing 89% of the total budget and noted that 5 (42%) output were not quantified to enable measurement of performance. Further, of the 7 quantified outputs/activities assessed, 3 outputs/activities representing 43% were fully implemented and 1 output/activity representing 14% was partially implemented while 3 outputs/activities representing 43% were not implemented at all. \u2022 Domestic arrears decreased by 29% from UGX.13,381,739 in the previous year to UGX.9,553,986 in the year under review. The arrears remained unsettled at the close of the year"]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 148, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY", "SUMMARY OF KEY FINDINGS \u2022 UGX. 24,198,324 in NTR collected during the year under review was not remitted to the Consolidated Fund contrary to the law. \u2022 Shortcomings were noted in the implementation of the provisions in the Circular Standing Instructions on staff performance management initiatives. The gaps identified include non- completion of Performance Agreements, failure to develop performance plans, non-completion of performance appraisals, no quarterly reviews undertaken, non-completion of performance improvement plans, and non-submission of reports on Performance Agreements, Performance Appraisals and Performance Improvement Plans to MoPS."], "type": "table"}}, {"content": "135", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 148, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["12", "Uganda Mission in Mombasa **Opinion** Unqualified", "\u2022 Shortcomings were noted in the implementation of the provisions in the circular standing instructions on staff performance management. The gaps identified include non- completion/prepared of Performance Agreements, quarterly reviews, performance improvement plans, non-submission of reports on Performance Agreements, Performance Appraisals and Performance Improvement Plans to MoPS. \u2022 I noted that the Mission has not had an approved Charter since 2016."], ["13", "Guangzhou Consulate in China **Opinion** Unqualified", "\u2022 UGX.1,216,126,611 reported as Cash and Cash equivalents at the end of the financial year were not transferred to the Consolidated Fund contrary to the law. \u2022 The Consulate received UGX.4,849,125,817 but spent UGX.4,319,750,750 resulting into under absorption of UGX.529,375,067 representing 89% hence affecting planned activities. \u2022 The Consulate\u2019s approved work plans and budgets revealed that a number of the planned activities were not implemented such as purchase of utility van, holding of investment conferences, and construction of chancery. \u2022 Shortcomings were noted in the implementation of the provisions in the Circular Standing Instructions on staff performance management initiatives. The gaps identifies included: non- completion of performance agreements, lack of performance plans and limited appraisals conducted. \u2022 UGX.87,817,726 was paid to various staff as education allowance instead of paying directly to schools contrary to PSSO (E-e) (12 & 19)."], ["14", "Uganda Embassy in China, Beijing **Opinion** Qualified", "\u2022 Revenue amounting to UGX.0.654Bn was reported as funds utilised at source whose permission of utilisation has never been obtained from the Accountant General. \u2022 UGX.33,957,114 reported as outstanding advances have taken a long period without recovery from the concerned officials. I could not establish the details of this receivable and how long it has been outstanding. \u2022 UGX.209,401,265 (RMB.389,329) remained unaccounted for at the time of audit. \u2022 The Embassy received UGX.4.920Bn but spent UGX.4.834Bn resulting into under absorption of UGX.86,116,794 representing 99.7%. \u2022 Domestic arrears decreased by 83% from UGX.0.133Bn in the previous year to UGX.23,034,405 in the year under review. The arrears remained unsettled at the close of the year. \u2022 Settlement of arrears amounting to UGX.0.110Bn outstanding from prior year (2017/18) was undertaken without allocated budget. \u2022 Shortcomings were noted in the implementation of the provisions in the Circular Standing Instructions on staff performance management initiatives. The gaps identifies included: non completion of performance agreements, failure to develop performance plans, failure to conduct staff appraisals, lack of quarterly performance reviews and failure to submit reports on staff performance management initiatives."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 149, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY", "SUMMARY OF KEY FINDINGS \u2022 UGX.60,590,634 was paid during the year as domestic arrears and yet these were not disclosed in the previous audit year and no budget provision for the same had been availed. \u2022 Shortcomings were noted in the implementation of the provisions in the circular standing instructions on staff performance management. The gaps identified include non-completion of Performance Agreements, no quarterly reviews undertaken, non-completion of performance plans and appraisals and non-submission of reports on Performance Agreements, Performance Appraisals, Performance Improvement Plans to MoPS. \u2022 I noted that management had not taken action on the previous year\u2019s recommendations from the annual Board of Survey to dispose of some equipment."], "type": "table"}}, {"content": [["12", "Uganda Mission in Mombasa **Opinion** Unqualified", "\u2022 Shortcomings were noted in the implementation of the provisions in the circular standing instructions on staff performance management. The gaps identified include non- completion/prepared of Performance Agreements, quarterly reviews, performance improvement plans, non-submission of reports on Performance Agreements, Performance Appraisals and Performance Improvement Plans to MoPS. \u2022 I noted that the Mission has not had an approved Charter since 2016."], ["13", "Guangzhou Consulate in China **Opinion** Unqualified", "\u2022 UGX.1,216,126,611 reported as Cash and Cash equivalents at the end of the financial year were not transferred to the Consolidated Fund contrary to the law. \u2022 The Consulate received UGX.4,849,125,817 but spent UGX.4,319,750,750 resulting into under absorption of UGX.529,375,067 representing 89% hence affecting planned activities. \u2022 The Consulate\u2019s approved work plans and budgets revealed that a number of the planned activities were not implemented such as purchase of utility van, holding of investment conferences, and construction of chancery. \u2022 Shortcomings were noted in the implementation of the provisions in the Circular Standing Instructions on staff performance management initiatives. The gaps identifies included: non- completion of performance agreements, lack of performance plans and limited appraisals conducted. \u2022 UGX.87,817,726 was paid to various staff as education allowance instead of paying directly to schools contrary to PSSO (E-e) (12 & 19)."], ["14", "Uganda Embassy in China, Beijing **Opinion** Qualified", "\u2022 Revenue amounting to UGX.0.654Bn was reported as funds utilised at source whose permission of utilisation has never been obtained from the Accountant General. \u2022 UGX.33,957,114 reported as outstanding advances have taken a long period without recovery from the concerned officials. I could not establish the details of this receivable and how long it has been outstanding. \u2022 UGX.209,401,265 (RMB.389,329) remained unaccounted for at the time of audit. \u2022 The Embassy received UGX.4.920Bn but spent UGX.4.834Bn resulting into under absorption of UGX.86,116,794 representing 99.7%. \u2022 Domestic arrears decreased by 83% from UGX.0.133Bn in the previous year to UGX.23,034,405 in the year under review. The arrears remained unsettled at the close of the year. \u2022 Settlement of arrears amounting to UGX.0.110Bn outstanding from prior year (2017/18) was undertaken without allocated budget. \u2022 Shortcomings were noted in the implementation of the provisions in the Circular Standing Instructions on staff performance management initiatives. The gaps identifies included: non completion of performance agreements, failure to develop performance plans, failure to conduct staff appraisals, lack of quarterly performance reviews and failure to submit reports on staff performance management initiatives."], ["15", "Uganda Embassy in Khartoum **Opinion** Unqualified", "\u2022 The financial statements of the Mission were submitted late in October instead of August. \u2022 Out of UGX.3,207,018,770 received, UGX.3,087,222,550 was expended resulting into under absorption of UGX.119,796,220 representing a 96.3% performance. \u2022 UGX.50,502,968 in NTR and UGX.106,318,863 in cash at the end of the year were not remitted to the Consolidated Fund contrary to the law."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 149, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY", "SUMMARY OF KEY FINDINGS \u2022 UGX.60,590,634 was paid during the year as domestic arrears and yet these were not disclosed in the previous audit year and no budget provision for the same had been availed. \u2022 Shortcomings were noted in the implementation of the provisions in the circular standing instructions on staff performance management. The gaps identified include non-completion of Performance Agreements, no quarterly reviews undertaken, non-completion of performance plans and appraisals and non-submission of reports on Performance Agreements, Performance Appraisals, Performance Improvement Plans to MoPS. \u2022 I noted that management had not taken action on the previous year\u2019s recommendations from the annual Board of Survey to dispose of some equipment."], "type": "table"}}, {"content": "136", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 149, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["16", "Uganda Embassy in Teheran **Opinion** Unqualified", "\u2022 Teheran reported cash balances of UGX.126,137,744 comprised of UGX.99,027,755 as revenue account balance and UGX.27,109,989 as expenditure account balance at the year end. The amount was not transferred to the Consolidated Fund contrary to the law. \u2022 The Embassy received a total of UGX.3,548,004,447 out of which a total of UGX.3,538,742,619 was spent resulting into unspent balance of UGX.9,261,828. \u2022 UGX.99,027,755 was collected as NTR including balance brought forward from previous year but the funds were not remitted to Consolidated Fund contrary to the law. \u2022 USD.14,000.00 (UGX.52,640,000) was paid to various staff as Education Allowance instead of paying directly to schools contrary to the Public Service Standing Orders. \u2022 Shortcomings were noted in the implementation of the provisions in the circular standing instructions on staff performance management. The gaps identified include non-completion of Performance Agreements, no quarterly reviews undertaken, no performance improvement plans prepared, non-submission of reports on Performance Agreements, Performance Appraisals, Performance Improvement Plans to MoPS and lack of mechanism to monitor staff attendance."], ["17", "Uganda Embassy in DRC, Kinshasa **Opinion** Unqualified", "\u2022 Unspent balance of UGX.28,583,436 on the expenditure account and NTR total collections totaling UGX.10,148,481 were not transferred to the Consolidated Fund contrary to the law. \u2022 USD.15,000.00 (equivalent to UGX.56,400,000) was paid to various staff as education allowance instead of paying directly to schools in violation of the Public Service Standing Orders. \u2022 The mission paid out rent amounting to US$.51,000 for a period of six months at this rate during the year without authorization from the Permanent Secretary, MoFA. \u2022 Shortcomings were noted in the implementation of the provisions in the Circular Standing Instructions on staff performance management initiatives. The gaps identifies included: 1 out of 2 senior management staff did not complete performance agreements, staff did not develop performance plans and 3 of the 5 staff did not conduct staff appraisals. Besides, the respective reports were not submitted to MOPS contrary to the requirement."], ["18", "Uganda Embassy in Juba **Opinion** Qualified", "\u2022 A sum of UGX.327,572,944 claimed to have been remitted to the Bank of Uganda has been in transit for more than one financial year and has not been received by Bank of Uganda. \u2022 An adjustment of UGX.1,779,216 made in to cash and cash equivalents was not supported by a Journal Voucher (JV). \u2022 I noted that out of the budgeted revenue of UGX.485,660,000, UGX.648,823,885 was collected representing over-performance of 33.6% of the target because of the country\u2019s improved environment. \u2022 NTR amounting to UGX.16,796,357 was not remitted to the consolidated fund contrary to the PFMA/R 2015. \u2022 UGX.3,799,366,063 meant for the construction of the Chancery has been lying idle on the Embassy project expenditure accounts since 2012. \u2022 Shortcomings were noted in the implementation of the provisions in the circular standing instructions on staff performance management. The gaps identified include non- completion/preparation of performance agreements, performance plans, appraisals, quarterly reviews, performance improvement plans and non-submission of reports on Performance Agreements, Performance Appraisals and Performance Improvement Plans to MoPS."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 150, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY", "SUMMARY OF KEY FINDINGS \u2022 UGX.84,600,000 in respect of Education Allowances was paid direct to its officials instead of their respective educational institutions or schools contrary to Public Service Standing Orders. \u2022 Shortcomings were noted in the implementation of the provisions in the Circular Standing Instructions on staff performance management initiatives. The gaps identified include non- completion of Performance Agreements, failure to develop performance plans, non-completion of performance appraisals, no quarterly reviews undertaken, non-completion of performance improvement plans, and non-submission of reports on Performance Agreements, Performance Appraisals and Performance Improvement Plans to MoPS."], "type": "table"}}, {"content": [["16", "Uganda Embassy in Teheran **Opinion** Unqualified", "\u2022 Teheran reported cash balances of UGX.126,137,744 comprised of UGX.99,027,755 as revenue account balance and UGX.27,109,989 as expenditure account balance at the year end. The amount was not transferred to the Consolidated Fund contrary to the law. \u2022 The Embassy received a total of UGX.3,548,004,447 out of which a total of UGX.3,538,742,619 was spent resulting into unspent balance of UGX.9,261,828. \u2022 UGX.99,027,755 was collected as NTR including balance brought forward from previous year but the funds were not remitted to Consolidated Fund contrary to the law. \u2022 USD.14,000.00 (UGX.52,640,000) was paid to various staff as Education Allowance instead of paying directly to schools contrary to the Public Service Standing Orders. \u2022 Shortcomings were noted in the implementation of the provisions in the circular standing instructions on staff performance management. The gaps identified include non-completion of Performance Agreements, no quarterly reviews undertaken, no performance improvement plans prepared, non-submission of reports on Performance Agreements, Performance Appraisals, Performance Improvement Plans to MoPS and lack of mechanism to monitor staff attendance."], ["17", "Uganda Embassy in DRC, Kinshasa **Opinion** Unqualified", "\u2022 Unspent balance of UGX.28,583,436 on the expenditure account and NTR total collections totaling UGX.10,148,481 were not transferred to the Consolidated Fund contrary to the law. \u2022 USD.15,000.00 (equivalent to UGX.56,400,000) was paid to various staff as education allowance instead of paying directly to schools in violation of the Public Service Standing Orders. \u2022 The mission paid out rent amounting to US$.51,000 for a period of six months at this rate during the year without authorization from the Permanent Secretary, MoFA. \u2022 Shortcomings were noted in the implementation of the provisions in the Circular Standing Instructions on staff performance management initiatives. The gaps identifies included: 1 out of 2 senior management staff did not complete performance agreements, staff did not develop performance plans and 3 of the 5 staff did not conduct staff appraisals. Besides, the respective reports were not submitted to MOPS contrary to the requirement."], ["18", "Uganda Embassy in Juba **Opinion** Qualified", "\u2022 A sum of UGX.327,572,944 claimed to have been remitted to the Bank of Uganda has been in transit for more than one financial year and has not been received by Bank of Uganda. \u2022 An adjustment of UGX.1,779,216 made in to cash and cash equivalents was not supported by a Journal Voucher (JV). \u2022 I noted that out of the budgeted revenue of UGX.485,660,000, UGX.648,823,885 was collected representing over-performance of 33.6% of the target because of the country\u2019s improved environment. \u2022 NTR amounting to UGX.16,796,357 was not remitted to the consolidated fund contrary to the PFMA/R 2015. \u2022 UGX.3,799,366,063 meant for the construction of the Chancery has been lying idle on the Embassy project expenditure accounts since 2012. \u2022 Shortcomings were noted in the implementation of the provisions in the circular standing instructions on staff performance management. The gaps identified include non- completion/preparation of performance agreements, performance plans, appraisals, quarterly reviews, performance improvement plans and non-submission of reports on Performance Agreements, Performance Appraisals and Performance Improvement Plans to MoPS."], ["19", "Uganda Mission in Mogadishu", "\u2022 Shortcomings were noted in the implementation of the provisions in the Circular Standing Instructions on staff performance management initiatives. The gaps identified include: Staff did"]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 150, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY", "SUMMARY OF KEY FINDINGS \u2022 UGX.84,600,000 in respect of Education Allowances was paid direct to its officials instead of their respective educational institutions or schools contrary to Public Service Standing Orders. \u2022 Shortcomings were noted in the implementation of the provisions in the Circular Standing Instructions on staff performance management initiatives. The gaps identified include non- completion of Performance Agreements, failure to develop performance plans, non-completion of performance appraisals, no quarterly reviews undertaken, non-completion of performance improvement plans, and non-submission of reports on Performance Agreements, Performance Appraisals and Performance Improvement Plans to MoPS."], "type": "table"}}, {"content": "137", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 150, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["20", "Uganda Embassy in Washington **Opinion** Unqualified", "\u2022 I noted that, although the Mission received over 98% of its budgeted funds, many outputs were not achieved during the year. For example only 63,518 tourists out of the targeted 100,000 were received and only USD.1,530,640 of investment was attracted to Uganda out of the targeted USD.500m \u2022 When an officer is recalled, all the furniture, beddings and kitchen utensils previously used by the staff is removed from the rented house and either damaged or transferred to the Embassy stores where it eventually gets broken through wear and tear. The costs incurred for transport and destruction are borne by the Mission. In addition, the Mission then procures new furnishings for the incoming staff. This is wasteful. \u2022 Contrary to procurement regulations, I noted that the Embassy undertook procurements, throughout the year, without a procurement plan. This is an indication of laxity on the part of management. Moreover no procurement reports were being prepared and submitted to PPDA as required by the procurement regulations."], ["21", "Uganda Embassy in Addis Ababa **Opinion** Unqualified", "\u2022 Cash balances were overstated by UGX.234,479,182 due to balances carried forward from the previous years that remained unaccounted for. \u2022 UGX.344,691,717 was spent over and above the mission approved budget mainly on employee costs and on goods and services. \u2022 I noted that some of the planned activities were implemented but with borrowed funds while other activities were not implemented at all despite Government releasing all the funds for the planned outputs. \u2022 Receivables of UGX.26,719,027 and UGX.2,179,893 paid to one Micheal Abooki Karugaba and consular services extended to State house respectively remained outstanding for more than two years. \u2022 UGX.350,957,796 was spent at source contrary Section 29(2)(a) of the Public Finance Management Act, 2015. \u2022 The mission had unspent balances of USD$.3,818.9 equivalent to UGX.14,549,206 that was not remitted back to the consolidated fund. \u2022 I noted shortcomings in the management of assets such as failure to dispose off household items in the chancery stores that would fetched some revenue, inadequate security at both the Chancery and the Official Residence and failure to renovate official residence especially the roof \u2022 Shortcomings were noted in the implementation of the provisions in the circular standing instructions on staff performance management. The gaps identified include non-completion of Performance Agreements, no quarterly reviews undertaken, no performance improvement plans prepared, non-submission of reports on Performance Agreements, Performance Appraisals and Performance Improvement Plans to MoPS."], ["22", "Uganda Embassy in Copenhagen **Opinion** Unqualified", "\u2022 For the financial year under review (2018/19), a total of UGX.4,830,223,161 was released against an approved budget of UGX.4,830,223,161. This indicates a budget performance of 100%. I however observed that although the Mission received all the budgeted funds, not all planned activities were fully implemented. \u2022 During the audit, I established that the Mission operated with a draft mission charter that guided the Mission activities during the year under review and that there was no strategic plan for the Mission. The continued implementation of activities in the absence of an approved strategic plan and mission charter may lead to implementation of activities that may not be aligned to the NDPII. \u2022 An inspection of the embassy buildings housing the Chancery and official residence revealed that both buildings were in a sorry state and in need of urgent renovation. The chancery building has developed major cracks internally and externally including the basement, thus posing a health risk to the lives of staff. Its plumbing and electrical systems have given way needing urgent"]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 151, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY Opinion Unqualified", "SUMMARY OF KEY FINDINGS not develop/prepare performance agreements, performance plans and appraisals. Besides, the respective reports were not submitted to MOPS contrary to the requirement. \u2022 A total of UGX.65,800,000 was paid to various staff as education allowance instead of paying directly to schools contrary to PSSO."], "type": "table"}}, {"content": [["20", "Uganda Embassy in Washington **Opinion** Unqualified", "\u2022 I noted that, although the Mission received over 98% of its budgeted funds, many outputs were not achieved during the year. For example only 63,518 tourists out of the targeted 100,000 were received and only USD.1,530,640 of investment was attracted to Uganda out of the targeted USD.500m \u2022 When an officer is recalled, all the furniture, beddings and kitchen utensils previously used by the staff is removed from the rented house and either damaged or transferred to the Embassy stores where it eventually gets broken through wear and tear. The costs incurred for transport and destruction are borne by the Mission. In addition, the Mission then procures new furnishings for the incoming staff. This is wasteful. \u2022 Contrary to procurement regulations, I noted that the Embassy undertook procurements, throughout the year, without a procurement plan. This is an indication of laxity on the part of management. Moreover no procurement reports were being prepared and submitted to PPDA as required by the procurement regulations."], ["21", "Uganda Embassy in Addis Ababa **Opinion** Unqualified", "\u2022 Cash balances were overstated by UGX.234,479,182 due to balances carried forward from the previous years that remained unaccounted for. \u2022 UGX.344,691,717 was spent over and above the mission approved budget mainly on employee costs and on goods and services. \u2022 I noted that some of the planned activities were implemented but with borrowed funds while other activities were not implemented at all despite Government releasing all the funds for the planned outputs. \u2022 Receivables of UGX.26,719,027 and UGX.2,179,893 paid to one Micheal Abooki Karugaba and consular services extended to State house respectively remained outstanding for more than two years. \u2022 UGX.350,957,796 was spent at source contrary Section 29(2)(a) of the Public Finance Management Act, 2015. \u2022 The mission had unspent balances of USD$.3,818.9 equivalent to UGX.14,549,206 that was not remitted back to the consolidated fund. \u2022 I noted shortcomings in the management of assets such as failure to dispose off household items in the chancery stores that would fetched some revenue, inadequate security at both the Chancery and the Official Residence and failure to renovate official residence especially the roof \u2022 Shortcomings were noted in the implementation of the provisions in the circular standing instructions on staff performance management. The gaps identified include non-completion of Performance Agreements, no quarterly reviews undertaken, no performance improvement plans prepared, non-submission of reports on Performance Agreements, Performance Appraisals and Performance Improvement Plans to MoPS."], ["22", "Uganda Embassy in Copenhagen **Opinion** Unqualified", "\u2022 For the financial year under review (2018/19), a total of UGX.4,830,223,161 was released against an approved budget of UGX.4,830,223,161. This indicates a budget performance of 100%. I however observed that although the Mission received all the budgeted funds, not all planned activities were fully implemented. \u2022 During the audit, I established that the Mission operated with a draft mission charter that guided the Mission activities during the year under review and that there was no strategic plan for the Mission. The continued implementation of activities in the absence of an approved strategic plan and mission charter may lead to implementation of activities that may not be aligned to the NDPII. \u2022 An inspection of the embassy buildings housing the Chancery and official residence revealed that both buildings were in a sorry state and in need of urgent renovation. The chancery building has developed major cracks internally and externally including the basement, thus posing a health risk to the lives of staff. Its plumbing and electrical systems have given way needing urgent"]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 151, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY Opinion Unqualified", "SUMMARY OF KEY FINDINGS not develop/prepare performance agreements, performance plans and appraisals. Besides, the respective reports were not submitted to MOPS contrary to the requirement. \u2022 A total of UGX.65,800,000 was paid to various staff as education allowance instead of paying directly to schools contrary to PSSO."], "type": "table"}}, {"content": [["20", "Uganda Embassy in Washington **Opinion** Unqualified", "\u2022 I noted that, although the Mission received over 98% of its budgeted funds, many outputs were not achieved during the year. For example only 63,518 tourists out of the targeted 100,000 were received and only USD.1,530,640 of investment was attracted to Uganda out of the targeted USD.500m \u2022 When an officer is recalled, all the furniture, beddings and kitchen utensils previously used by the staff is removed from the rented house and either damaged or transferred to the Embassy stores where it eventually gets broken through wear and tear. The costs incurred for transport and destruction are borne by the Mission. In addition, the Mission then procures new furnishings for the incoming staff. This is wasteful. \u2022 Contrary to procurement regulations, I noted that the Embassy undertook procurements, throughout the year, without a procurement plan. This is an indication of laxity on the part of management. Moreover no procurement reports were being prepared and submitted to PPDA as required by the procurement regulations."], ["21", "Uganda Embassy in Addis Ababa **Opinion** Unqualified", "\u2022 Cash balances were overstated by UGX.234,479,182 due to balances carried forward from the previous years that remained unaccounted for. \u2022 UGX.344,691,717 was spent over and above the mission approved budget mainly on employee costs and on goods and services. \u2022 I noted that some of the planned activities were implemented but with borrowed funds while other activities were not implemented at all despite Government releasing all the funds for the planned outputs. \u2022 Receivables of UGX.26,719,027 and UGX.2,179,893 paid to one Micheal Abooki Karugaba and consular services extended to State house respectively remained outstanding for more than two years. \u2022 UGX.350,957,796 was spent at source contrary Section 29(2)(a) of the Public Finance Management Act, 2015. \u2022 The mission had unspent balances of USD$.3,818.9 equivalent to UGX.14,549,206 that was not remitted back to the consolidated fund. \u2022 I noted shortcomings in the management of assets such as failure to dispose off household items in the chancery stores that would fetched some revenue, inadequate security at both the Chancery and the Official Residence and failure to renovate official residence especially the roof \u2022 Shortcomings were noted in the implementation of the provisions in the circular standing instructions on staff performance management. The gaps identified include non-completion of Performance Agreements, no quarterly reviews undertaken, no performance improvement plans prepared, non-submission of reports on Performance Agreements, Performance Appraisals and Performance Improvement Plans to MoPS."], ["22", "Uganda Embassy in Copenhagen **Opinion** Unqualified", "\u2022 For the financial year under review (2018/19), a total of UGX.4,830,223,161 was released against an approved budget of UGX.4,830,223,161. This indicates a budget performance of 100%. I however observed that although the Mission received all the budgeted funds, not all planned activities were fully implemented. \u2022 During the audit, I established that the Mission operated with a draft mission charter that guided the Mission activities during the year under review and that there was no strategic plan for the Mission. The continued implementation of activities in the absence of an approved strategic plan and mission charter may lead to implementation of activities that may not be aligned to the NDPII. \u2022 An inspection of the embassy buildings housing the Chancery and official residence revealed that both buildings were in a sorry state and in need of urgent renovation. The chancery building has developed major cracks internally and externally including the basement, thus posing a health risk to the lives of staff. Its plumbing and electrical systems have given way needing urgent"]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 151, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY Opinion Unqualified", "SUMMARY OF KEY FINDINGS not develop/prepare performance agreements, performance plans and appraisals. Besides, the respective reports were not submitted to MOPS contrary to the requirement. \u2022 A total of UGX.65,800,000 was paid to various staff as education allowance instead of paying directly to schools contrary to PSSO."], "type": "table"}}, {"content": "138", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 151, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["23", "Uganda High Commission, Dar es Salaam **Opinion** Unqualified", "\u2022 I noted excess expenditure of UGX.215,444,078 without the Minister\u2019s authority \u2022 I noted huge funding gaps to effectively cover the mandate of the mission as laid down in the strategic plan given that the mission is accredited to Tanzania and six other countries in addition to two regional organizations of EAC and COMESA. Another challenge is the high rental cost for home based staff. \u2022 Shortcomings were noted in the implementation of the provisions in the circular standing instructions on staff performance management. The gaps identified include non-completion of Performance Appraisals, non-submission of reports on Performance Agreements, and Performance Appraisals to MoPS."], ["24", "Uganda High Commission, Kigali **Opinion** Unqualified", "\u2022 UGX.17,216,846 was spent over and above the mission approved budget despite receiving a supplementary budget \u2022 I noted four outputs that were not implemented i.e. failure to have an MOU arising out of the Joint Permanent Commission between Uganda and Rwanda, failure to organize tourism and cultural expo, holding meetings of Northern Corridor Integration Projects and Meetings/summits of East African Community \u2022 The Mission did not have an up to date approved Mission Charter and they were using a charter developed and approved in 2014 \u2022 The Mission did not develop an annual training plan during the year under review despite receiving training funds worth UGX 56,445,874. \u2022 Shortcomings were noted in the implementation of the provisions in the circular standing instructions on staff performance management. The gaps identified include non-completion of Performance Agreements, no quarterly reviews undertaken, no performance improvement plans prepared, non-submission of reports on Performance Agreements, Performance Appraisals and Performance Improvement Plans to MoPS."], ["25", "Uganda High Commission, London **Opinion** Unqualified", "\u2022 Review of the statement of financial position revealed long outstanding account receivables of Ugx.301,553,047 (\u00a359,117.50) relating to rental income of which \u00a326,000 had since been recovered leaving a balance of \u00a333,117.50.  \u2022 Review of financial records revealed that six local staff were irregularly paid \u00a310,780 for purposes of meeting their social security contributions. The practice exposes the mission to the risk of penalties for non- compliance with the local social security laws and regulations.  \u2022 An inspection of the High Commission properties revealed need for major renovations as follows; Chancery (plumbing pipes , electrical equipment and the central heating facility) and Official residence (CCTV cameras ,Pavement of the runway and fencing)  \u2022 The High commission was required to promote exports of at least US$ 35m and achieved $ 29.2 million indicating a shortfall of US$5.8 million.  \u2022 Whereas the mission was charged with lobbying for investments worth US$500m during the year, management indicated that investments worth \u00a3 325 million had been attained. However documentary evidence to this effect was not readily availed.  \u2022 Out of the target of 100 UK scholarships, only 35 were secured implying a shortfall of 65 scholarships."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 152, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY", "SUMMARY OF KEY FINDINGS replacement. The basement for the official residence had developed moulds which are a health risk to the occupants. It also had dangling electrical cables, which, the HoM explained, were no longer acceptable as per the European Union (EU) Building code/guidelines. Under the circumstances, the buildings do not portray a good image of the country and that there is a risk that these structures might become condemned by the city authorities. Besides, the delayed renovation of the buildings will increase the eventual costs needed to renovate them to the current EU building code. \u2022 It was noted that the Mission paid DKK.130,350 (UGX.73,397,869) in lieu of education allowances directly to staff contrary to the regulation that requires payment to education institutions. Besides, I did not obtain any evidence that the said allowances had been approved by the responsible officer (i.e. the Permanent Secretary)."], "type": "table"}}, {"content": [["23", "Uganda High Commission, Dar es Salaam **Opinion** Unqualified", "\u2022 I noted excess expenditure of UGX.215,444,078 without the Minister\u2019s authority \u2022 I noted huge funding gaps to effectively cover the mandate of the mission as laid down in the strategic plan given that the mission is accredited to Tanzania and six other countries in addition to two regional organizations of EAC and COMESA. Another challenge is the high rental cost for home based staff. \u2022 Shortcomings were noted in the implementation of the provisions in the circular standing instructions on staff performance management. The gaps identified include non-completion of Performance Appraisals, non-submission of reports on Performance Agreements, and Performance Appraisals to MoPS."], ["24", "Uganda High Commission, Kigali **Opinion** Unqualified", "\u2022 UGX.17,216,846 was spent over and above the mission approved budget despite receiving a supplementary budget \u2022 I noted four outputs that were not implemented i.e. failure to have an MOU arising out of the Joint Permanent Commission between Uganda and Rwanda, failure to organize tourism and cultural expo, holding meetings of Northern Corridor Integration Projects and Meetings/summits of East African Community \u2022 The Mission did not have an up to date approved Mission Charter and they were using a charter developed and approved in 2014 \u2022 The Mission did not develop an annual training plan during the year under review despite receiving training funds worth UGX 56,445,874. \u2022 Shortcomings were noted in the implementation of the provisions in the circular standing instructions on staff performance management. The gaps identified include non-completion of Performance Agreements, no quarterly reviews undertaken, no performance improvement plans prepared, non-submission of reports on Performance Agreements, Performance Appraisals and Performance Improvement Plans to MoPS."], ["25", "Uganda High Commission, London **Opinion** Unqualified", "\u2022 Review of the statement of financial position revealed long outstanding account receivables of Ugx.301,553,047 (\u00a359,117.50) relating to rental income of which \u00a326,000 had since been recovered leaving a balance of \u00a333,117.50.  \u2022 Review of financial records revealed that six local staff were irregularly paid \u00a310,780 for purposes of meeting their social security contributions. The practice exposes the mission to the risk of penalties for non- compliance with the local social security laws and regulations.  \u2022 An inspection of the High Commission properties revealed need for major renovations as follows; Chancery (plumbing pipes , electrical equipment and the central heating facility) and Official residence (CCTV cameras ,Pavement of the runway and fencing)  \u2022 The High commission was required to promote exports of at least US$ 35m and achieved $ 29.2 million indicating a shortfall of US$5.8 million.  \u2022 Whereas the mission was charged with lobbying for investments worth US$500m during the year, management indicated that investments worth \u00a3 325 million had been attained. However documentary evidence to this effect was not readily availed.  \u2022 Out of the target of 100 UK scholarships, only 35 were secured implying a shortfall of 65 scholarships."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 152, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY", "SUMMARY OF KEY FINDINGS replacement. The basement for the official residence had developed moulds which are a health risk to the occupants. It also had dangling electrical cables, which, the HoM explained, were no longer acceptable as per the European Union (EU) Building code/guidelines. Under the circumstances, the buildings do not portray a good image of the country and that there is a risk that these structures might become condemned by the city authorities. Besides, the delayed renovation of the buildings will increase the eventual costs needed to renovate them to the current EU building code. \u2022 It was noted that the Mission paid DKK.130,350 (UGX.73,397,869) in lieu of education allowances directly to staff contrary to the regulation that requires payment to education institutions. Besides, I did not obtain any evidence that the said allowances had been approved by the responsible officer (i.e. the Permanent Secretary)."], "type": "table"}}, {"content": "139", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 152, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["27", "Uganda Embassy New York **Opinion** Unqualified", "\u2022 Although the Mission received UGX.19,802,924,753 (100%) of the budget, they only utilized UGX.18,771,230,819 (95%) leaving an amount of UGX.1,031,693,934 unabsorbed.  \u2022 The Mission has not transferred Cash balances amounting to UGX.3,158,358,927 on revenue accounts and Expenditure accounts to the Consolidated Fund by the end of the financial year.  \u2022 I noted that 8 tenants of the Uganda House had not paid amounts due for rent totaling USD.661,700.53 as at the end of the financial year. Delays in collecting debts affects the Mission\u2019s cash flows since expenses for utilities and cleaning services for the defaulting tenants have to be paid by the Mission.  \u2022 I noted delays, of almost five months, in re-modelling of the 9th floor of Uganda House by a contractor whose contract price was USD.345,450."], ["28", "Uganda High commission, Ottawa **Opinion** Qualified", "\u2022 A review of the expenditures revealed that the High Commission charged wrong expenditure codes to the tune of UGX.746,316,521, contrary to the requirements under Section 10.4.1 of the Treasury Instructions 2017. \u2022 From a sample of expenditure vouchers examined, I observed that the Mission spent a total of USD.56,226 (equivalent to UGX.207,771,376) for travels that were not properly accounted for. I also observed incidences of staff being paid allowances to attend overlapping activities at the same time. \u2022 Presented in the statement of financial position and also under note 24 (payables) are outstanding payables as at 30th June 2019, amounting to UGX.893,322,179 (2018: UGX.943,357,259). It was explained that these relate to outstanding medical bills for a deceased staff. Such long outstanding payables not only reflect badly on the image of the Mission, but can lead to costly legal disputes. \u2022 It was noted that the Mission entered into contracts with the spouses of two staff to provide rental accommodation to them. There is no evidence of any procurement process undertaken to identify the landlords in question, which is contrary to the procurement regulations. Besides there was also no evidence provided, to show that the houses were indeed owned by the identified landlords. \u2022 The Mission paid local taxes worth CAD.4,224.07 (equivalent to UGX.11,889,067) that were not reclaimed by management since diplomatic missions are exempted from paying local taxes. This led to financial loss to government. \u2022 A review of the NTR collections revealed that there were stale cheques/money orders that were received by the Mission, that were not promptly banked on the Mission revenue collection account amounting to CAD.660 and USD.400 (equivalent to a total of UGX.3,335,752). Failure to bank the above cheques implies that the Mission incurred a financial loss to government. \u2022 During the year under review, the positions of Accounting Officer and that of the Financial Attachee/Mission Accountant, exchanged hands. However, there was no evidence that proper handover procedures were followed as laid down by the standing orders. \u2022 A total of UGX.2,882,004,410 that remained unspent at the close of 2017/18 was neither returned to Treasury nor included in the budget for the 2018/2019 financial year. \u2022 A review of the Appropriation Statements for the year revealed that actual expenditure during the year under review exceeded the actual revenue by UGX.605,548,130. The excess expenditure was irregularly incurred."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 153, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn 26", "SECTOR AND ENTITY Uganda High Commission, Nairobi Opinion Unqualified", "SUMMARY OF KEY FINDINGS \u2022 The cash and cash equivalents balance in the statement of financial position is over stated by UGX.23.7M as the amount lacks necessary supporting documents.  \u2022 The payables balance of UGX.6.5m lacked relevant schedules and/ or notes.  \u2022 The arrears of revenue of UGX.229 was not supported with an aging schedule rendering its collectability doubtful.  \u2022 Non tax revenue declined from UGX.477m (2017/180 to UGX.276m (2018/19) implying reduction of UGX.201M (42%) as a result of vacation of Uganda House by tenants owing to its poor physical state.  \u2022 The mission properties comprising; Uganda House, official residence and chancery lack land titles. In addition all the three properties are in a poor physical state."], "type": "table"}}, {"content": [["27", "Uganda Embassy New York **Opinion** Unqualified", "\u2022 Although the Mission received UGX.19,802,924,753 (100%) of the budget, they only utilized UGX.18,771,230,819 (95%) leaving an amount of UGX.1,031,693,934 unabsorbed.  \u2022 The Mission has not transferred Cash balances amounting to UGX.3,158,358,927 on revenue accounts and Expenditure accounts to the Consolidated Fund by the end of the financial year.  \u2022 I noted that 8 tenants of the Uganda House had not paid amounts due for rent totaling USD.661,700.53 as at the end of the financial year. Delays in collecting debts affects the Mission\u2019s cash flows since expenses for utilities and cleaning services for the defaulting tenants have to be paid by the Mission.  \u2022 I noted delays, of almost five months, in re-modelling of the 9th floor of Uganda House by a contractor whose contract price was USD.345,450."], ["28", "Uganda High commission, Ottawa **Opinion** Qualified", "\u2022 A review of the expenditures revealed that the High Commission charged wrong expenditure codes to the tune of UGX.746,316,521, contrary to the requirements under Section 10.4.1 of the Treasury Instructions 2017. \u2022 From a sample of expenditure vouchers examined, I observed that the Mission spent a total of USD.56,226 (equivalent to UGX.207,771,376) for travels that were not properly accounted for. I also observed incidences of staff being paid allowances to attend overlapping activities at the same time. \u2022 Presented in the statement of financial position and also under note 24 (payables) are outstanding payables as at 30th June 2019, amounting to UGX.893,322,179 (2018: UGX.943,357,259). It was explained that these relate to outstanding medical bills for a deceased staff. Such long outstanding payables not only reflect badly on the image of the Mission, but can lead to costly legal disputes. \u2022 It was noted that the Mission entered into contracts with the spouses of two staff to provide rental accommodation to them. There is no evidence of any procurement process undertaken to identify the landlords in question, which is contrary to the procurement regulations. Besides there was also no evidence provided, to show that the houses were indeed owned by the identified landlords. \u2022 The Mission paid local taxes worth CAD.4,224.07 (equivalent to UGX.11,889,067) that were not reclaimed by management since diplomatic missions are exempted from paying local taxes. This led to financial loss to government. \u2022 A review of the NTR collections revealed that there were stale cheques/money orders that were received by the Mission, that were not promptly banked on the Mission revenue collection account amounting to CAD.660 and USD.400 (equivalent to a total of UGX.3,335,752). Failure to bank the above cheques implies that the Mission incurred a financial loss to government. \u2022 During the year under review, the positions of Accounting Officer and that of the Financial Attachee/Mission Accountant, exchanged hands. However, there was no evidence that proper handover procedures were followed as laid down by the standing orders. \u2022 A total of UGX.2,882,004,410 that remained unspent at the close of 2017/18 was neither returned to Treasury nor included in the budget for the 2018/2019 financial year. \u2022 A review of the Appropriation Statements for the year revealed that actual expenditure during the year under review exceeded the actual revenue by UGX.605,548,130. The excess expenditure was irregularly incurred."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 153, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn 26", "SECTOR AND ENTITY Uganda High Commission, Nairobi Opinion Unqualified", "SUMMARY OF KEY FINDINGS \u2022 The cash and cash equivalents balance in the statement of financial position is over stated by UGX.23.7M as the amount lacks necessary supporting documents.  \u2022 The payables balance of UGX.6.5m lacked relevant schedules and/ or notes.  \u2022 The arrears of revenue of UGX.229 was not supported with an aging schedule rendering its collectability doubtful.  \u2022 Non tax revenue declined from UGX.477m (2017/180 to UGX.276m (2018/19) implying reduction of UGX.201M (42%) as a result of vacation of Uganda House by tenants owing to its poor physical state.  \u2022 The mission properties comprising; Uganda House, official residence and chancery lack land titles. In addition all the three properties are in a poor physical state."], "type": "table"}}, {"content": "140", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 153, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["29", "Uganda High commission, Pretoria **Opinion** Unqualified", "\u2022 I noted excess expenditure of UGX.131,435,586 on employee costs without the Minister\u2019s authority \u2022 Shortcomings were noted in the implementation of the provisions in the circular standing instructions on staff performance management. The gaps identified include non-completion of Performance Agreements, failure to develop performance plans, lack of performance improvement plans, non-submission of reports on Performance Agreements, Performance Appraisals, and Performance Improvement Plans to MoPS."], ["30", "Uganda Embassy in Tokyo **Opinion** Unqualified", "\u2022 I noted that all funds for the approved budget of UGX. UGX.4,978,767,000, was released and warranted representing 100% performance. \u2022 Out of the released/warranted amount, the Embassy spent a total of UGX.4,774,861,469 representing 96% absorption rate leaving a balance of UGX.203,905,531 unspent which was not returned to the Consolidated Fund at the closure of the financial year as required by PFMA, 2015. \u2022 I noted that the Embassy had 4 key result areas/outputs which included: Cooperation framework; Consular Services; Promotion of trade, tourism, education and investment; and strengthening the Mission. However, they were no measurable targets that were set against which performance would be assessed. \u2022 A review of the financial statements revealed an outstanding payable of UGX. 19,809,575 in regard to deposits received in respect of the 60% EATV visas issued by the Embassy. The amount was transferred to Treasury, but was appearing in the Embassy\u2019s accounts as payables."], ["31", "Uganda Embassy in Bujumbura **Opinion** Qualified", "\u2022 I noted that all funds for the approved budget of UGX.9,075,807,738, was released and warranted representing 100% performance. Out of the warranted amount, UGX.8,981,992,482 was spent by the Embassy leaving a balance of only UGX.93,815,256 unspent, thus representing an absorption level of 99%. \u2022 Out of 11 quantifiable output/activities of the Embassy, only 4 representing 36.4% were fully implemented, 4 representing 36.4% were partially implemented while 3 representing 27.2% were not implemented. \u2022 The NTR amount was overstated by UGX. 337,108, 742 resulting from misclassification of the VAT tax refunds of the same amount received from the host government. \u2022 The value of Consumption of Property, Plant & Equipment was overstated a sum of USD.587,315 (Approximately UGX.2,173,899,487 ) advanced to the constructing contractor (USD.533,506.74) and the supervising consultant (USD.53,808) at the end of the financial year for construction works which had not yet been undertaken. \u2022 A review of the financial statements revealed an outstanding payable of UGX.10,696,008 in regard to received deposits in the previous years of UGX.11,731,991 of which only UGX.1,035,983 was remitted in the current year. The progress of works for the construction of the Chancery was slow, and the contract was extended up to 21st March, 2019, and management was again negotiating for further extension to end of December, 2019, at the time the audit time visited the Embassy (18th September, 2019)."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 154, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY", "SUMMARY OF KEY FINDINGS \u2022 A review of the Appropriation Statement based on nature of expenditure revealed that the Mission incurred an over expenditure of UGX.1,607,128,850 on employee costs. I did not obtain any evidence to show that the Accounting officer obtained the required approvals to reallocate any funds, as stipulated by the Public Finance Management Act 2015. \u2022 The Mission paid monthly communication allowances to staff amounting to UGX.149,142,000 that are not provided for by the standing orders and were also not budgeted for during the year under review."], "type": "table"}}, {"content": [["29", "Uganda High commission, Pretoria **Opinion** Unqualified", "\u2022 I noted excess expenditure of UGX.131,435,586 on employee costs without the Minister\u2019s authority \u2022 Shortcomings were noted in the implementation of the provisions in the circular standing instructions on staff performance management. The gaps identified include non-completion of Performance Agreements, failure to develop performance plans, lack of performance improvement plans, non-submission of reports on Performance Agreements, Performance Appraisals, and Performance Improvement Plans to MoPS."], ["30", "Uganda Embassy in Tokyo **Opinion** Unqualified", "\u2022 I noted that all funds for the approved budget of UGX. UGX.4,978,767,000, was released and warranted representing 100% performance. \u2022 Out of the released/warranted amount, the Embassy spent a total of UGX.4,774,861,469 representing 96% absorption rate leaving a balance of UGX.203,905,531 unspent which was not returned to the Consolidated Fund at the closure of the financial year as required by PFMA, 2015. \u2022 I noted that the Embassy had 4 key result areas/outputs which included: Cooperation framework; Consular Services; Promotion of trade, tourism, education and investment; and strengthening the Mission. However, they were no measurable targets that were set against which performance would be assessed. \u2022 A review of the financial statements revealed an outstanding payable of UGX. 19,809,575 in regard to deposits received in respect of the 60% EATV visas issued by the Embassy. The amount was transferred to Treasury, but was appearing in the Embassy\u2019s accounts as payables."], ["31", "Uganda Embassy in Bujumbura **Opinion** Qualified", "\u2022 I noted that all funds for the approved budget of UGX.9,075,807,738, was released and warranted representing 100% performance. Out of the warranted amount, UGX.8,981,992,482 was spent by the Embassy leaving a balance of only UGX.93,815,256 unspent, thus representing an absorption level of 99%. \u2022 Out of 11 quantifiable output/activities of the Embassy, only 4 representing 36.4% were fully implemented, 4 representing 36.4% were partially implemented while 3 representing 27.2% were not implemented. \u2022 The NTR amount was overstated by UGX. 337,108, 742 resulting from misclassification of the VAT tax refunds of the same amount received from the host government. \u2022 The value of Consumption of Property, Plant & Equipment was overstated a sum of USD.587,315 (Approximately UGX.2,173,899,487 ) advanced to the constructing contractor (USD.533,506.74) and the supervising consultant (USD.53,808) at the end of the financial year for construction works which had not yet been undertaken. \u2022 A review of the financial statements revealed an outstanding payable of UGX.10,696,008 in regard to received deposits in the previous years of UGX.11,731,991 of which only UGX.1,035,983 was remitted in the current year. The progress of works for the construction of the Chancery was slow, and the contract was extended up to 21st March, 2019, and management was again negotiating for further extension to end of December, 2019, at the time the audit time visited the Embassy (18th September, 2019)."], ["32", "Ministry of Foreign Affairs **Opinion** Unqualified", "\u2022 Out of the budgeted revenue of UGX.95.1 million for the year 2018/19, UGX.105.589 million was collected representing performance of 111% of the target. \u2022 The entity budgeted to receive UGX.51,307,044,981 however UGX.48,475,836,777 was warranted resulting into a budget shortfall of UGX.2,831,208,204 representing 0.05%."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 154, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY", "SUMMARY OF KEY FINDINGS \u2022 A review of the Appropriation Statement based on nature of expenditure revealed that the Mission incurred an over expenditure of UGX.1,607,128,850 on employee costs. I did not obtain any evidence to show that the Accounting officer obtained the required approvals to reallocate any funds, as stipulated by the Public Finance Management Act 2015. \u2022 The Mission paid monthly communication allowances to staff amounting to UGX.149,142,000 that are not provided for by the standing orders and were also not budgeted for during the year under review."], "type": "table"}}, {"content": "141", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 154, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["33", "The Electoral Commission **Opinion** Unqualified", "\u2022 Out of the budgeted revenue of UGX.0.486Bn for the financial year 2018/19, UGX.74,152,840 was collected representing performance of 16%. \u2022 I sampled 27 out-puts worth UGX.88.5bn representing 100% of the total budget and noted that 21 (78%) of the total outputs were not quantified to enable measurement of performance. Further, of the 6 quantified outputs/activities assessed, 3 outputs/activities representing 50% were fully implemented, 1 output/activity representing 17% was partially implemented, while 2 outputs/activities representing 33% were not implemented at all. \u2022 Out of a total of 27 outputs/activities analysed, the actual amounts reported in the annual reports was found inaccurate for 6 outputs/activities. \u2022 Domestic arrears decreased by 89% from UGX.8,767,437,020 in the previous year to UGX.16,652,843,119 in the year under review. The arrears remained unsettled at the close of the year. \u2022 Out of the domestic arrears of UGX.8.767Bn from the previous year UGX.40,619,467 (0.46%) was provided for settlement of domestic arrears in the current budget. \u2022 UGX.155.32Bn was planned towards Presidential and General Parliamentary and Local Government council elections for the financial year 2018/2019 but only UGX.0.986Bn (0.63%) was budgeted and received in the financial year. \u2022 The Commission headquarters continues to be located in inhabitable conditions and are threatened by demolition by Kampala Flyover Construction and Road Upgrading Project (KFCRUP) which will result in payment of rent estimated at UGX.1.7Bn per year. \u2022 Shortcomings were noted in the implementation of the provisions in the circular standing instructions on staff performance management. The gaps identified include non-completion of Performance Agreements, no quarterly reviews undertaken, no performance improvement plans prepared and lack of a clients\u2019 charter."], ["34", "Ministry of East African Community Affairs (MEACA) **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to budget shortfall of UGX.0.154Bn representing 0.4%. Furthermore, the entity remained with unspent balance of UGX.835,361,682 representing an under-absorption level of 2.4%. \u2022 I sampled 57 out-puts worth UGX.34.772Bn representing 100% of the total budget and noted that 21 (37%) of the total outputs were not quantified to enable measurement of performance. Furthermore, of the 36 quantified outputs/activities assessed, 30 outputs/activities representing"]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 155, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY", "SUMMARY OF KEY FINDINGS \u2022 A review of the entity performance reports for the financial year 2018/2019 revealed that all 140 outputs were not quantified to enable measurement of performance. \u2022 A trend analysis of the domestic arrears reported in the financial statements showed a movement of arrears from UGX.67,230,639,091 in the previous year to UGX.64,237,474,182 in the year under review, an increase of 124%. The arrears remained unsettled. \u2022 The Ministry had outstanding commitments to a tune of UGX.67,230,639,091 from the previous year but only UGX.6,751,779,781 was provided for their settlement. \u2022 I noted unresolved court case of UGX.3,343,140,720 against the Ministry of Foreign Affairs. \u2022 The Ministry has guidelines that should be followed in appointing the local staff in foreign missions which are not adhered to. \u2022 It was observed that from a sample of 4 embassies, out of 339 scholarships secured 91 scholarships were utilised while 248 scholarships were not taken up. \u2022 Shortcomings were noted in the implementation of the provisions in the Circular Standing Instructions on staff performance management initiatives. The gaps identified included: non completion of performance agreements, failure to conduct staff appraisals, lack of quarterly performance reviews and failure to submit reports on staff performance management initiatives. \u2022 I noted that a sample of 15 Missions paid USD.354,791.63 (approximately UGX.1,312,729,031) in respect of education allowances direct to its officials instead of their children\u2019s respective educational institutions or schools as required by Standing Orders."], "type": "table"}}, {"content": "142", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 155, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["", "**PUBLIC SECTOR MANAGEMENT SECTOR**", ""], ["1", "Office of the Prime Minister (OPM) **Opinion** Unqualified", "\u2022 I noted that OPM budgeted to collect NTR of UGX 83.7 million out of which only UGX 32.4 was collected representing 61.3% underperformance. \u2022 The OPM had unremitted off budget receipts amounting to UGX 45,113,000,000 which was spent without appropriation. \u2022 There was a shortfall in releases amounting to UGX.8,496,262,506 representing an under release of 6.4% of the budget. Further, the Entity remained with unspent balance of UGX. 1,648,860,903 representing an absorption level of 98%. \u2022 The OPM planned to achieve its deliverables through implementation of 445 activities. I sampled 118 activities worth UGX. 109 billion representing 82% of the total budget and noted that 16 outputs (14%) of the total outputs were not quantified to enable measurement of performance. Further, of the 102 quantified outputs assessed, 64 outputs representing 63% were fully implemented; 29 outputs representing 28% were partially implemented while 9 outputs representing 9% were not implemented at all. \u2022 Funds worth UGX.257,996,068 were irregularly diverted and spent on other activities without seeking necessary approvals. \u2022 The Entity did not budget for settlement of domestic arrears despite having outstanding unpaid arrears of UGX 1,182,160,936 from 2017/18. Further to this the Entity had unpaid domestic arrears amounting to UGX 284,970,563 by June 2019 contrary to the treasury instructions. \u2022 Shortcomings were noted in the implementation of the staff performance management initiatives by the Ministry of Public service. The gaps identified include absence performance agreements for senior members of staff, failure to undertake performance appraisals, failure to undertake quarterly performance reviews, lack of performance improvement plans, weaknesses in the mechanism for monitoring staff attendance, non-functional rewards and sanctions committee and failure to submit reports about staff performance to Ministry of Public Service in time."], ["2", "German Refugee Response Fund (Consolidated) **Opinion** Unqualified", "\u2022 No material issue."], ["3", "German Refugee Response Fund Education Infrastructure Enhancement", "\u2022 No material issue."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 156, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY", "SUMMARY OF KEY FINDINGS 83% was fully implemented, 5 outputs/activities representing 14% were partially implemented while 1 output/activity representing 3% was not implemented at all. \u2022 Out of the budgeted revenue of UGX. 3,720,000 for the financial year 2018/19, UGX.18,400,000 was collected representing performance of 494%. \u2022 Arrears totaling to UGX. 41.721Bn remained unsettled at close of the year contrary to Section 21(2) of the Public Finance Management Act, 2015. \u2022 Settlement of arrears amounting to UGX. 808,268,518from the prior year (2017/18) was undertaken without allocated budget. \u2022 Out of the approved staff structure of 133 positions 69 positions have been filled, leaving 64 positions vacant. \u2022 Shortcomings were noted in the implementation of the provisions in the implementation of staff performance management programmes. The gaps identified include non-completion of performance appraisals, failure to undertake performance appraisals, no quarterly reviews undertaken, performance improvement plans were not developed, reports on implementation of staff performance management initiatives not submitted to MoPS and lack of client charter."], "type": "table"}}, {"content": "143", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 156, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["4", "German Refugee Response Fund The Scaled Up Sustainable Domestic Water Supply and Sanitation Service Infrastructure in Rhino Camp Refugee Settlement, Arua District, Northern Uganda **Opinion** Unqualified", "\u2022 No material issue."], ["5", "Northern Uganda Social Action Fund (NUSAF III) **Opinion** Unqualified", "\u2022 The project remained with unspent balance of UGX.0.77 billion representing an absorption level of 99.4%. \u2022 The project planned to achieve its deliverables through the implementation of 10 activities. I reviewed the performance of all the 10 activities and noted that 9 activities representing 90% were fully implemented, while 1 activity representing 10% was partially implemented. \u2022 I noted that local governments faced a number of challenges in the implementation of the project. These included late disbursement and receipt of funds, funding shortfalls, failure to keep records by some subprojects, and incomplete works which affect service delivery. \u2022 I noted that the project did not utilise grant funds with a number of subgroups totalling to UGX 1.2 billion."], ["6", "Development response to displacement Impact Project (DRDIP) **Opinion** Unqualified", "\u2022 The project budgeted UGX.126.2 billion and received UGX.117.9Bn to implement its activities was received leaving UGX.8.272Bn representing 93.4% release. Out of UGX.117Bn that was received UGX.85.2 billion was spent resulting in an unspent balance of UGX.32, 735,075,142 representing an absorption level of 72%. \u2022 The project planned to achieve its deliverables through the implementation of nine (9) outputs/activities. I reviewed all the nine (9) outputs/activities and noted that (7) outputs/ activities representing 78% were fully implemented, while two (2) output/activity was partially implemented. \u2022 I noted unutilized grant funds of UGX.1.6 billion with a number of subgroups."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 157, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY Opinion Unqualified", "SUMMARY OF KEY FINDINGS"], "type": "table"}}, {"content": [["4", "German Refugee Response Fund The Scaled Up Sustainable Domestic Water Supply and Sanitation Service Infrastructure in Rhino Camp Refugee Settlement, Arua District, Northern Uganda **Opinion** Unqualified", "\u2022 No material issue."], ["5", "Northern Uganda Social Action Fund (NUSAF III) **Opinion** Unqualified", "\u2022 The project remained with unspent balance of UGX.0.77 billion representing an absorption level of 99.4%. \u2022 The project planned to achieve its deliverables through the implementation of 10 activities. I reviewed the performance of all the 10 activities and noted that 9 activities representing 90% were fully implemented, while 1 activity representing 10% was partially implemented. \u2022 I noted that local governments faced a number of challenges in the implementation of the project. These included late disbursement and receipt of funds, funding shortfalls, failure to keep records by some subprojects, and incomplete works which affect service delivery. \u2022 I noted that the project did not utilise grant funds with a number of subgroups totalling to UGX 1.2 billion."], ["6", "Development response to displacement Impact Project (DRDIP) **Opinion** Unqualified", "\u2022 The project budgeted UGX.126.2 billion and received UGX.117.9Bn to implement its activities was received leaving UGX.8.272Bn representing 93.4% release. Out of UGX.117Bn that was received UGX.85.2 billion was spent resulting in an unspent balance of UGX.32, 735,075,142 representing an absorption level of 72%. \u2022 The project planned to achieve its deliverables through the implementation of nine (9) outputs/activities. I reviewed all the nine (9) outputs/activities and noted that (7) outputs/ activities representing 78% were fully implemented, while two (2) output/activity was partially implemented. \u2022 I noted unutilized grant funds of UGX.1.6 billion with a number of subgroups."], ["7", "Ministry of Local Government (MoLG) **Opinion** Unqualified", "\u2022 I noted that MoLG had an NTR budget of UGX.143.7 million out of which only UGX.104.9 million was collected representing 72% performance. \u2022 MoLG had a shortfall in releases amounting to UGX.28.2 billion representing an under release of 32% of the budget. Further, the MoLG remained with an unspent balance of UGX.2.7 bn representing an absorption level of 95%. \u2022 The outputs planned to achieve its deliverables through the implementation of 131 outputs. I sampled 25 outputs worth UGX.33.4 bn representing 60% of the total budget and noted that 8 (eight) outputs (32%) of the total outputs were not quantified to enable measurement of performance. Further, of the 17 quantified outputs assessed, 8 outputs representing 47% were fully implemented; 6 outputs representing 35% were partially implemented while 3 (three) outputs representing 18% were not implemented at all. \u2022 Funds amounting to UGX.273,755,945 were irregularly diverted and spent on other activities without seeking necessary approvals. \u2022 Funds worth UGX.3.6 billion meant for capital development expenditure for development of Busega market was spent to honour Ganesh orders."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 157, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY Opinion Unqualified", "SUMMARY OF KEY FINDINGS"], "type": "table"}}, {"content": "144", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 157, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["8", "Uganda Good Governance Project (UGOGO) **Opinion** Unqualified", "\u2022 The program management did not prepare a completion report for submission to the Danish embassy, yet the program ended on 31st December 2016."], ["9", "Markets and Infrastructure Trade Improvement Project (MATIP II) **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.16.3 billion representing an under release of 16% of the budget. Further, the Project remained with unspent balance of UGX. 1.42 billion representing an absorption level of 98%. \u2022 The project planned to achieve its deliverables through implementation of six (6) outputs/activities. I reviewed these 6 outputs and noted that, four (4) outputs representing 67% were fully implemented; two (2) outputs representing 33% were partially implemented. \u2022 Funds worth UGX.118,247,828 were irregularly diverted and spent on other activities without seeking necessary approvals. \u2022 There was a shortfall in government counterpart funding of UGX 298,197,943 which was contrary to the programme financing agreement."], ["10", "Urban markets and market development of Agricultural products project (UMMDAP) **Opinion** Unqualified", "\u2022 Domestic arrears increased by 16% from UGX491,339,828 in the previous year to UGX. 585,531,516 in the year under review. The arrears remained unsettled at the close of the year. \u2022 Settlement of the arrears amounting to UGX.184,886,497 outstanding from prior year (2017/18) were undertaken without allocated budget. \u2022 The entity remained with unspent balance of UGX. 255,841,776 representing an absorption level of 95%. \u2022 UGX. 24,198,324 in NTR collected during the year under review was not remitted to the Consolidated Fund contrary to the law. \u2022 Shortcomings were noted in the implementation of the provisions in the Circular Standing Instructions on staff performance management initiatives. The gaps identified include non- completion of Performance Agreements, failure to develop performance plans, non-completion of performance appraisals, no quarterly reviews undertaken, non-completion of performance improvement plans, and non-submission of reports on Performance Agreements, Performance Appraisals and Performance Improvement Plans to MoPS."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 158, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY", "SUMMARY OF KEY FINDINGS \u2022 The MoLG budgeted for only UGX.4.6 billion for settlement of domestic arrears despite having outstanding unpaid arrears of UGX.33.6 billion from 2017/18. Further, the MoLG had unpaid domestic arrears amounting to UGX.39.9 billion by June 2019 contrary to the treasury instructions. \u2022 Shortcomings were noted in the implementation of the staff performance management initiatives by the Ministry of Public service. The gaps identified include failure to develop performance plans, failure to complete performance appraisals, failure to prepare performance improvement plans, weaknesses in the mechanism for monitoring staff attendance and absence to develop a client charter. \u2022 I noted that the Ministry entered in an MoU with UPPC for the supply of stamps for LC1 stamps worth UGX.2.3 billion. By the time of the audit, the stamps had not been supplied despite the expiry of the delivery timelines. \u2022 I noted that there was insufficient funding for start-up costs for newly created Local Government."], "type": "table"}}, {"content": [["8", "Uganda Good Governance Project (UGOGO) **Opinion** Unqualified", "\u2022 The program management did not prepare a completion report for submission to the Danish embassy, yet the program ended on 31st December 2016."], ["9", "Markets and Infrastructure Trade Improvement Project (MATIP II) **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.16.3 billion representing an under release of 16% of the budget. Further, the Project remained with unspent balance of UGX. 1.42 billion representing an absorption level of 98%. \u2022 The project planned to achieve its deliverables through implementation of six (6) outputs/activities. I reviewed these 6 outputs and noted that, four (4) outputs representing 67% were fully implemented; two (2) outputs representing 33% were partially implemented. \u2022 Funds worth UGX.118,247,828 were irregularly diverted and spent on other activities without seeking necessary approvals. \u2022 There was a shortfall in government counterpart funding of UGX 298,197,943 which was contrary to the programme financing agreement."], ["10", "Urban markets and market development of Agricultural products project (UMMDAP) **Opinion** Unqualified", "\u2022 Domestic arrears increased by 16% from UGX491,339,828 in the previous year to UGX. 585,531,516 in the year under review. The arrears remained unsettled at the close of the year. \u2022 Settlement of the arrears amounting to UGX.184,886,497 outstanding from prior year (2017/18) were undertaken without allocated budget. \u2022 The entity remained with unspent balance of UGX. 255,841,776 representing an absorption level of 95%. \u2022 UGX. 24,198,324 in NTR collected during the year under review was not remitted to the Consolidated Fund contrary to the law. \u2022 Shortcomings were noted in the implementation of the provisions in the Circular Standing Instructions on staff performance management initiatives. The gaps identified include non- completion of Performance Agreements, failure to develop performance plans, non-completion of performance appraisals, no quarterly reviews undertaken, non-completion of performance improvement plans, and non-submission of reports on Performance Agreements, Performance Appraisals and Performance Improvement Plans to MoPS."], ["11", "Project for restoration of Livelihoods in the Northern Region (PRELNOR) **Opinion** Unqualified", "\u2022 There was a shortfall in receipts amounting to UGX.9.9 billion representing an under release of 24% of the budget. Additionally, UGX.0.309bn was not spent representing an absorption level of 99%. \u2022 The project planned to achieve its deliverables through implementation of (39) outputs/activities. I reviewed these 37 outputs and noted that, 26 outputs representing 70% were fully implemented; 6 outputs representing 16% were partially implemented while 5 out-puts representing 14% were not implemented. \u2022 I noted delays of more than two years in the procurement of 50 walking tractors and construction of selected markets."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 158, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY", "SUMMARY OF KEY FINDINGS \u2022 The MoLG budgeted for only UGX.4.6 billion for settlement of domestic arrears despite having outstanding unpaid arrears of UGX.33.6 billion from 2017/18. Further, the MoLG had unpaid domestic arrears amounting to UGX.39.9 billion by June 2019 contrary to the treasury instructions. \u2022 Shortcomings were noted in the implementation of the staff performance management initiatives by the Ministry of Public service. The gaps identified include failure to develop performance plans, failure to complete performance appraisals, failure to prepare performance improvement plans, weaknesses in the mechanism for monitoring staff attendance and absence to develop a client charter. \u2022 I noted that the Ministry entered in an MoU with UPPC for the supply of stamps for LC1 stamps worth UGX.2.3 billion. By the time of the audit, the stamps had not been supplied despite the expiry of the delivery timelines. \u2022 I noted that there was insufficient funding for start-up costs for newly created Local Government."], "type": "table"}}, {"content": "145", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 158, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["12", "National Planning Authority (NPA) **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.43,755,691 representing an under release of 0.1% of the budget. Further, the NPA remained with unspent balance of UGX.19,470,762 representing an absorption level of 99.7%. \u2022 The Authority received UGX.1,022,917,391 as off-budget financing from development partners and these were not paid into the consolidated fund contrary to the PFMA. \u2022 The Authority planned to achieve its deliverables through implementation of 31 outputs. I sampled 21 outputs worth UGX.16.7 bn representing 65% of the total budget and noted that 8 outputs (31%) of the total outputs were not quantified to enable measurement of performance. Further, of the 13 quantified outputs assessed, six (6) outputs representing 46% were fully implemented; three (3) outputs representing 24% were partially implemented while four (4) outputs representing 30% were not implemented at all. \u2022 Funds worth UGX.53,882,358 were irregularly diverted and spent on other activities without seeking necessary approvals. \u2022 Settlement of arrears amounting to UGX.812,874,533 outstanding from prior year (2017/18) was undertaken without allocated budget. \u2022 Shortcomings were noted in the implementation of the provisions of the NPA Human resources manual in relation to staff performance management. The gaps identified include lack of mechanism to monitor staff attendance, lack of rewards and sanction committee and failure to develop and operationalize a client\u2019s charter. \u2022 Shortcomings were noted in the implementation of various sections of the NPA act and regulations. The gaps identified include; failure to liaise with private sector and civil society to assess government performance; failure to provide support in local capacity development for national planning; failure by the different sectors and entities to prepare sector strategic plans that were aligned to the NDP III; and lack of service delivery standards for the different sectors."], ["13", "Local Government Finance Commission (LGFC) **Opinion** Unqualified", "\u2022 The Commission did not budget for NTR despite collecting UGX.47.496 million. The Commission remained with unspent balance of UGX.3,401,714 representing an absorption level of 99%. \u2022 I sampled 31 out-puts worth UGX.4.7 bn representing 90% of the total budget and noted that out of 31 outputs assessed, 13 outputs representing 42% of the total outputs were not quantified to enable measurement of performance. Out of the 18 quantified outputs/activities assessed, 10 outputs/activities representing 56% were fully implemented; 8 output/activity representing 44% was partially implemented while no output/activity was not implemented at all. \u2022 Funds worth UGX.88,954,931 were irregularly diverted from the activities on which they were budgeted and spent on other activities without seeking and obtaining the necessary approvals. \u2022 Shortcomings were noted in the implementation of the provisions sections of the approved human resource manual on staff performance management. The gaps identified include non- preparation of performance plans, failure to complete performance appraisals, non-preparation of performance improvement plans, and lack of client charter. \u2022 LGFC had not developed a framework for setting Local Government Tax, fees and rates to be levied by Local Governments resulting in unguided revenue planning and collection by Local Government. \u2022 The Commission had governance challenges which affected the operations of the Commission. By the time of audit, the Commission had not implemented a number of activities because of this disharmony amongst the members of the Commission. Examples of these activities include implementing top management resolutions, implementation of the Kalangala declaration and approval of the framework for LED initiatives."], ["14", "Public Service Commission (PSC) **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.31,500,597 representing 0.36%. Further, the entity remained with unspent balance of UGX.9,427,928 representing an absorption level of 99.8%. \u2022 I sampled 26 out-puts worth UGX.5.4bn representing 63% of the total budget and noted that 8 (31%) of the total outputs were not quantified to enable measurement of performance. Further,"]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 159, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY", "SUMMARY OF KEY FINDINGS \u2022 I noted non adherence/ non delivery of equipment for 15 weather stations which was contrary to the terms of contract."], "type": "table"}}, {"content": [["12", "National Planning Authority (NPA) **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.43,755,691 representing an under release of 0.1% of the budget. Further, the NPA remained with unspent balance of UGX.19,470,762 representing an absorption level of 99.7%. \u2022 The Authority received UGX.1,022,917,391 as off-budget financing from development partners and these were not paid into the consolidated fund contrary to the PFMA. \u2022 The Authority planned to achieve its deliverables through implementation of 31 outputs. I sampled 21 outputs worth UGX.16.7 bn representing 65% of the total budget and noted that 8 outputs (31%) of the total outputs were not quantified to enable measurement of performance. Further, of the 13 quantified outputs assessed, six (6) outputs representing 46% were fully implemented; three (3) outputs representing 24% were partially implemented while four (4) outputs representing 30% were not implemented at all. \u2022 Funds worth UGX.53,882,358 were irregularly diverted and spent on other activities without seeking necessary approvals. \u2022 Settlement of arrears amounting to UGX.812,874,533 outstanding from prior year (2017/18) was undertaken without allocated budget. \u2022 Shortcomings were noted in the implementation of the provisions of the NPA Human resources manual in relation to staff performance management. The gaps identified include lack of mechanism to monitor staff attendance, lack of rewards and sanction committee and failure to develop and operationalize a client\u2019s charter. \u2022 Shortcomings were noted in the implementation of various sections of the NPA act and regulations. The gaps identified include; failure to liaise with private sector and civil society to assess government performance; failure to provide support in local capacity development for national planning; failure by the different sectors and entities to prepare sector strategic plans that were aligned to the NDP III; and lack of service delivery standards for the different sectors."], ["13", "Local Government Finance Commission (LGFC) **Opinion** Unqualified", "\u2022 The Commission did not budget for NTR despite collecting UGX.47.496 million. The Commission remained with unspent balance of UGX.3,401,714 representing an absorption level of 99%. \u2022 I sampled 31 out-puts worth UGX.4.7 bn representing 90% of the total budget and noted that out of 31 outputs assessed, 13 outputs representing 42% of the total outputs were not quantified to enable measurement of performance. Out of the 18 quantified outputs/activities assessed, 10 outputs/activities representing 56% were fully implemented; 8 output/activity representing 44% was partially implemented while no output/activity was not implemented at all. \u2022 Funds worth UGX.88,954,931 were irregularly diverted from the activities on which they were budgeted and spent on other activities without seeking and obtaining the necessary approvals. \u2022 Shortcomings were noted in the implementation of the provisions sections of the approved human resource manual on staff performance management. The gaps identified include non- preparation of performance plans, failure to complete performance appraisals, non-preparation of performance improvement plans, and lack of client charter. \u2022 LGFC had not developed a framework for setting Local Government Tax, fees and rates to be levied by Local Governments resulting in unguided revenue planning and collection by Local Government. \u2022 The Commission had governance challenges which affected the operations of the Commission. By the time of audit, the Commission had not implemented a number of activities because of this disharmony amongst the members of the Commission. Examples of these activities include implementing top management resolutions, implementation of the Kalangala declaration and approval of the framework for LED initiatives."], ["14", "Public Service Commission (PSC) **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.31,500,597 representing 0.36%. Further, the entity remained with unspent balance of UGX.9,427,928 representing an absorption level of 99.8%. \u2022 I sampled 26 out-puts worth UGX.5.4bn representing 63% of the total budget and noted that 8 (31%) of the total outputs were not quantified to enable measurement of performance. Further,"]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 159, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY", "SUMMARY OF KEY FINDINGS \u2022 I noted non adherence/ non delivery of equipment for 15 weather stations which was contrary to the terms of contract."], "type": "table"}}, {"content": "146", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 159, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["15", "Ministry of Public Service **Opinion** Unqualified", "\u2022 I noted that MoPS budgeted to collect NTR of UGX 1billion out of which only UGX 0.29billion was collected representing 29.2% performance. \u2022 There was a shortfall in releases amounting to UGX. 2.8bn representing an under release of 9% of the budget. Further, the MoPS remained with unspent balance of UGX. 2.7 billion representing an absorption level of 90%. \u2022 The MoPS planned to achieve its deliverables through implementation of 138 activities. I sampled 44 activities worth UGX. 23 billion representing 75% of the total budget and noted that 8 outputs (19%) of the total outputs/activities were not quantified to enable measurement of performance. Further, of the 36 quantified outputs assessed, 23 outputs representing 63% were fully implemented; 9 outputs representing 25% were partially implemented while 4 outputs representing 11% were not implemented at all. \u2022 Funds worth UGX.91,932,094 were irregularly diverted and spent on other activities without seeking necessary approvals. \u2022 The MoPS budgeted and allocated UGX 0.26billion for settlement of domestic arrears UGX 1.8billion from 2017/18. Further to this the MoPS had unpaid domestic arrears amounting to UGX 1.1bn by June 2019 contrary to the treasury instructions. \u2022 I noted under utilisation of the civil service college for training public servants. \u2022 I noted that a total of 19 votes had not decentralised the management of pension as envisaged by government. \u2022 I noted a delay to operationalise the pensions fund as one of the reforms proposed to the current public service pensions scheme. \u2022 Shortcomings were noted in the implementation of the staff performance management initiatives by the Ministry of Public service. The gaps identified include failure to develop performance plans, failure to complete performance appraisals, failure to prepare performance improvement plans, weaknesses in the mechanism for monitoring staff attendance and absence to develop a client charter among others."], ["16", "Kampala Capital City Authority (KCCA) **Opinion** Unqualified", "\u2022 There was a shortfall in revenue collection of UGX.36,345,770,707. From a revenue budget of UGX.126,899,636,512, only UGX.90,553,865,805 was collected, representing a performance of 71% of the target. \u2022 Off-budget financing to a tune of UGX.14,401,147,891 which was not paid into the consolidated fund as required by the law. \u2022 There was a shortfall in releases amounting to UGX.26,365,573,913 representing 8.3%. Further, the entity remained with an unspent balance of UGX.10,456,269,889 representing an absorption level of 96.%."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 160, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY", "SUMMARY OF KEY FINDINGS of the 18 quantified outputs/activities assessed, 16 outputs/activities representing 88% were fully implemented; 1 output/activity representing 6% was partially implemented while 1 output/activity representing 6% was not implemented at all. \u2022 Funds amounting to UGX.47,268,000 were irregularly diverted and spent on other activities without seeking the necessary approvals. \u2022 Domestic arrears decreased (by 77.650 from UGX UGX.237,458,957 in the previous year to UGX.53,259,160 in the year under review. The arrears remained unsettled at the close of the year. \u2022 Settlement of arrears amounting to UGX.184,886,497 outstanding from prior year (2017/18) were undertaken without allocated budget. \u2022 PSC did not disclose outstanding contingent liabilities due to on-going court cases contrary to accounting policy. \u2022 Shortcomings were noted in the implementation of the provisions in the circular standing instructions on staff performance management. Some of the gaps identified include non- completion of Performance Agreements, lack of performance improvement plans and lack of mechanism to monitor staff attendance."], "type": "table"}}, {"content": "147", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 160, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["17", "Kampala Infrastructure Improvement Project (KIIDP) **Opinion** Unqualified", "\u2022 The project budgeted to receive UGX 166.9 billion out of which UGX 140.7 billion was received/available for utilisation. Out of this UGX, 103.29 billion was absorbed leaving an unspent balance of UGX 0.37 billion which represents 73% absorption. \u2022 The project planned to achieve its deliverables through the implementation of (18) activities. I reviewed the performance of 8 activities and noted that; (1) activity representing 53% was not quantified, while all the seven (7) quantified outputs were partially implemented. \u2022 I noted that the project paid UGX.0.55 billion as interest for delayed payments which would have been avoided if payments were to be made timely. \u2022 I noted that the contract for the installation of house number plates expired (25th October 2019) before 1,128 plates had been installed, installation of road signage has only been done in Makindye and work has not started in Nakawa and Kawempe divisions, yet the contract is due to expire in the middle of December 2019 and installation of road signage by M/s Corporate Gifts has been done in only Lubaga division. The contract is due to expire in mid-December 2019. \u2022 I observed that project activities indicated in the table that are lagging behind schedule when referenced to the original project timelines i.e. a) Drainage works of Lot 1 Lubigi Primary Channel, and Nakamiro Secondary - Procurement not yet concluded, the contract for Lubigi still with the funders for no-objection and the contract for Nakamiro still with solicitor General and b) Compensation of PAPs- for drainage works - Out of the 329 PAPs identified only 106 have been so far paid."], ["18", "Kampala Faecal Sludge (KFS) **Opinion** Unqualified", "\u2022 I noted that the project failed to absorb USD 0.359 million which represented 18.2% under absorption. \u2022 The project had outstanding payables amounting to USD 112,061 by December 31st 2018. \u2022 I noted that there was delated set up of service level agreements with private emptiers which made it difficult for KCCA to ensure that all service providers were complying with the waste disposal guidelines."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 161, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY", "SUMMARY OF KEY FINDINGS \u2022 I sampled 45 out-puts worth UGX.206.9bn representing 65% of the total budget and noted that 26 (58%) of the total outputs were not quantified to enable measurement of performance. Further, of the 19 quantified outputs/activities assessed, 5 outputs/activities representing 26.3% were fully implemented; 11 output/activity representing 57.9% was partially implemented while 3 output/activity representing 15.8% was not implemented at all. \u2022 I noted insufficient budget allocations for the settlement of domestic arrears. UGX 825 million was provided in 2018/19 to settle outstanding arrears which stood at UGC 36,433,402,250 by the close of 2017/18. \u2022 Domestic arrears decreased (by 9% from UGX UGX.36,433,402,250 in the previous year to UGX.33,251,156,514 in the year under review. These remained unsettled at the close of the year. \u2022 Authority lost funds amounting to UGX.24,931,764,593 in the form of garnishee order to several cases. \u2022 Authority has an outstanding long-term liability amounting to UGX.42,570,488,999 for which it has no capacity to repay or service. \u2022 NSSF contribution totaling UGX.2,946,934,125 was not remitted as required by law and remained payable as at 30th June 2019. \u2022 Pay As You Earn (PAYE) for the Authority amounting to UGX.27,809,236,591 remained unpaid by the close of the year 30th June 2019. \u2022 Shortcomings were noted in the implementation of the provisions in the circular standing instructions on staff performance management. The gaps identified include non-completion of Performance Agreements, non-completion of performance improvement plans, failure to document semi-annual performance reviews, lack of a proper mechanism to monitor staff attendance, absence of rewards committee and absence of client\u2019s charter. \u2022 The Authority has not transferred land titles for properties of land it had acquired and did not transfer land titles for some leases."], "type": "table"}}, {"content": "148", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 161, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["20", "New Vision Printing and Publishing Company Limited **Opinion** Unqualified", "\u2022 No material issues to be reported on."], ["21", "Uganda Printing and Publishing Corporation (UPPC) **Opinion** Qualified", "\u2022 The Corporation owns two plots of land in Entebbe Municipality measuring 0.399 hectares with an estimated value between UGX.800 million to UGX.1 billion whose values are not disclosed in the financial statements. \u2022 The carrying value of trade receivables as at 30th June 2019 stood at UGX.2,766,650,958. I noted that these debts have been outstanding for over 10 years and are majorly owed by Government of Uganda Ministries, Departments and Agencies as well as private institutions. \u2022 The Corporation had long outstanding tax liabilities amounting to UGX.5,603,341,739. \u2022 UPPC, GoU represented by the MoFPED signed an agreement with a consortium of German companies to form a company Uganda Security Printing Company (USPC) for purposes of rehabilitating and revamping UPPC by redesigning, developing, constructing, completing, testing and commissioning an e-passport factory and ID factory. I however noted that the procurement of the private party in the partnership (the consortium of German companies) was not done in accordance with the requirements of Uganda\u2019s Public-Private Partnership Act."], ["22", "Millennium Villages Project - 2016 **Opinion** Unqualified", "\u2022 Underfunding of MVPII by GoU counterpart funding of UGX 0.853Bn \u2022 Performance against logical framework (contract Management) I.e. contracts amounting to UGX.2.2Bn had not been awarded due to cash flow challenges."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 162, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn 19", "SECTOR AND ENTITY Drylands Integrated Development Project Opinion Unqualified", "SUMMARY OF KEY FINDINGS \u2022 I noted slow implementation of project activities that has led to project extension from March 2019 to December 2020. \u2022 Medical equipment purchased at a cost of UGX.84,090,606 in February 2019 had not been put to use due to lack of running water, standby power and sundries."], "type": "table"}}, {"content": [["20", "New Vision Printing and Publishing Company Limited **Opinion** Unqualified", "\u2022 No material issues to be reported on."], ["21", "Uganda Printing and Publishing Corporation (UPPC) **Opinion** Qualified", "\u2022 The Corporation owns two plots of land in Entebbe Municipality measuring 0.399 hectares with an estimated value between UGX.800 million to UGX.1 billion whose values are not disclosed in the financial statements. \u2022 The carrying value of trade receivables as at 30th June 2019 stood at UGX.2,766,650,958. I noted that these debts have been outstanding for over 10 years and are majorly owed by Government of Uganda Ministries, Departments and Agencies as well as private institutions. \u2022 The Corporation had long outstanding tax liabilities amounting to UGX.5,603,341,739. \u2022 UPPC, GoU represented by the MoFPED signed an agreement with a consortium of German companies to form a company Uganda Security Printing Company (USPC) for purposes of rehabilitating and revamping UPPC by redesigning, developing, constructing, completing, testing and commissioning an e-passport factory and ID factory. I however noted that the procurement of the private party in the partnership (the consortium of German companies) was not done in accordance with the requirements of Uganda\u2019s Public-Private Partnership Act."], ["22", "Millennium Villages Project - 2016 **Opinion** Unqualified", "\u2022 Underfunding of MVPII by GoU counterpart funding of UGX 0.853Bn \u2022 Performance against logical framework (contract Management) I.e. contracts amounting to UGX.2.2Bn had not been awarded due to cash flow challenges."], ["23", "Millennium Villages Project \u2013 2017 **Opinion** Unqualified", "\u2022 Underfunding of MVPII by GoU counterpart funding of UGX. 0.872Bn \u2022 Delays in completing key project activities in time. I.e. four key project activities involving contacts worth UGX.0.674Bn were not completed in time."], ["24", "Millennium Villages Project \u2013 2018 **Opinion** Unqualified", "\u2022 Underfunding of MVPII by GoU counterpart funding of UGX.1Bn \u2022 Irregular borrowing from project account UGX.27, 753,550 from MVPII Project Account to fund Ministry Activities."], ["", "**LEGISLATURE**", ""], ["1", "Parliamentary Commission **Opinion** Unqualified", "\u2022 Out of a total NTR budget of UGX.100 billion, the Commission collected UGX.862 billion resulting into a performance of 862%. \u2022 There was a shortfall in releases amounting to UGX.0.305Bn representing an under release of 0.05% of the budget. Further, the Commission remained with unspent balance of UGX.26.947Bn representing an absorption level of 95%. \u2022 The Commission planned to achieve its deliverables through the implementation of 225 activities. I sampled 37 activities worth UGX.443.7Bn representing 75% of the total budget and noted that nine outputs (24%) of the total outputs were not quantified to enable measurement of performance. Further, of the 28 quantified outputs assessed, 13 outputs representing 46% were fully implemented; 9 outputs representing 32% were partially implemented while six outputs representing 21% were not implemented at all."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 162, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn 19", "SECTOR AND ENTITY Drylands Integrated Development Project Opinion Unqualified", "SUMMARY OF KEY FINDINGS \u2022 I noted slow implementation of project activities that has led to project extension from March 2019 to December 2020. \u2022 Medical equipment purchased at a cost of UGX.84,090,606 in February 2019 had not been put to use due to lack of running water, standby power and sundries."], "type": "table"}}, {"content": "149", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 162, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["2", "Parliamentary Pension Scheme **Opinion** Unqualified", "\u2022 No material issues."], ["", "**SECURITY SECTOR**", ""], ["1", "Office of the President **Opinion** Unqualified", "\u2022 Out of the released amount of UGX.182.072Bn, the entity spent UGX.181.007Bn representing 99.4% absorption level resulting into unspent balance of UGX.1.066Bn. \u2022 I sampled 48 out-puts worth UGX. 46.625bn representing 26% of the total budget and noted that 9 (19%) of the total outputs were not quantified to enable measurement of performance. Further, of the 39 quantified outputs/activities assessed, 36 outputs/activities representing 92% were fully implemented; 3 outputs/activities representing 8% were partially implemented. \u2022 Domestic arrears increased by 20% from UGX.49.055Bn in the previous year to UGX.58.982Bn in the year under review. The arrears remained unsettled at the close of the year. \u2022 Out of the domestic arrears of UGX.49.055Bn from the previous year, I noted that UGX.35.293Bn (71%) was provided for their settlement in the current budget. \u2022 The Ministry acquired a building complex on Plot 4 Mackenzie Vale Kololo at a total cost of UGX.1,995,000,000 with the purpose of setting up a recreation facility for senior government officers which has remained idle for 10 years. \u2022 Shortcomings were noted in the implementation of the provisions in the Circular Standing Instructions on staff performance management initiatives. The gaps identified include non- completion of Performance Agreements, failure to develop performance plans, non-completion of performance appraisals, no quarterly reviews undertaken, non-completion of performance improvement plans, and non-submission of reports on Performance Agreements, Performance Appraisals and Performance Improvement Plans to MoPS."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 163, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY", "SUMMARY OF KEY FINDINGS \u2022 Funds worth UGX.1,633,411,048 were irregularly diverted and spent on other activities without seeking necessary approvals. \u2022 Shortcomings were noted in the implementation of the provisions of the Commission\u2019s Human resources manual in relation to staff performance management. The gaps identified include lack of staff performance plans, failure to undertake staff appraisals, failure to undertake midterm performance reviews, lack of performance improvement plans, and absence of a mechanism to monitor staff attendance. \u2022 The Commission procured air tickets worth UGX.2 billion through agents contrary to the guidance given by the PS/ST for all entities to procure air tickets directly from airlines. \u2022 I noted delays in the progress of works on the construction of the new parliamentary chambers of up to 56 days. These days had also resulted in underperformance of the LC meant to cover this construction works."], "type": "table"}}, {"content": [["2", "Parliamentary Pension Scheme **Opinion** Unqualified", "\u2022 No material issues."], ["", "**SECURITY SECTOR**", ""], ["1", "Office of the President **Opinion** Unqualified", "\u2022 Out of the released amount of UGX.182.072Bn, the entity spent UGX.181.007Bn representing 99.4% absorption level resulting into unspent balance of UGX.1.066Bn. \u2022 I sampled 48 out-puts worth UGX. 46.625bn representing 26% of the total budget and noted that 9 (19%) of the total outputs were not quantified to enable measurement of performance. Further, of the 39 quantified outputs/activities assessed, 36 outputs/activities representing 92% were fully implemented; 3 outputs/activities representing 8% were partially implemented. \u2022 Domestic arrears increased by 20% from UGX.49.055Bn in the previous year to UGX.58.982Bn in the year under review. The arrears remained unsettled at the close of the year. \u2022 Out of the domestic arrears of UGX.49.055Bn from the previous year, I noted that UGX.35.293Bn (71%) was provided for their settlement in the current budget. \u2022 The Ministry acquired a building complex on Plot 4 Mackenzie Vale Kololo at a total cost of UGX.1,995,000,000 with the purpose of setting up a recreation facility for senior government officers which has remained idle for 10 years. \u2022 Shortcomings were noted in the implementation of the provisions in the Circular Standing Instructions on staff performance management initiatives. The gaps identified include non- completion of Performance Agreements, failure to develop performance plans, non-completion of performance appraisals, no quarterly reviews undertaken, non-completion of performance improvement plans, and non-submission of reports on Performance Agreements, Performance Appraisals and Performance Improvement Plans to MoPS."], ["2", "State House **Opinion** Unqualified", "\u2022 State House had an under collection of NTR worth UGX.82,685,560 out of the total projections of UGX.0.238Bn representing an under performance of 35% of the target. \u2022 I sampled 41 out-puts worth UGX.466bn representing 100% of the total budget and noted that 22 (53.7%) of the total outputs were not quantified to enable measurement of performance. Further, of the 19 quantified outputs/activities assessed, 17 outputs/activities representing 89.5% were fully implemented; 2 output/activity representing 10.5% was partially implemented. \u2022 Domestic arrears decreased by 89% from the previous year (from UGX.6.162Bn to UGX.0.649Bn). \u2022 I noted that UGX.6.162Bn paid to settle domestic arrears lacked a budget allocation. \u2022 Shortcomings were noted in the implementation of the provisions in the circular standing instructions on staff performance management. The gaps identified include: No development of performance agreements and plans, no completion of performance appraisal, no completion of quarterly performance reviews, no completion of performance improvement plans, no submission of reports to Ministry of Public Service (MoPS), no mechanism for monitoring of staff"]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 163, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY", "SUMMARY OF KEY FINDINGS \u2022 Funds worth UGX.1,633,411,048 were irregularly diverted and spent on other activities without seeking necessary approvals. \u2022 Shortcomings were noted in the implementation of the provisions of the Commission\u2019s Human resources manual in relation to staff performance management. The gaps identified include lack of staff performance plans, failure to undertake staff appraisals, failure to undertake midterm performance reviews, lack of performance improvement plans, and absence of a mechanism to monitor staff attendance. \u2022 The Commission procured air tickets worth UGX.2 billion through agents contrary to the guidance given by the PS/ST for all entities to procure air tickets directly from airlines. \u2022 I noted delays in the progress of works on the construction of the new parliamentary chambers of up to 56 days. These days had also resulted in underperformance of the LC meant to cover this construction works."], "type": "table"}}, {"content": "150", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 163, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["3", "Ministry of Defence & UVAB **Opinion** Unqualified", "\u2022 Out of the total NTR projections of UGX.1,500,000,000, UGX.56,710,000 was realised representing an under performance of 3.8% of the target. \u2022 I sampled 41 out-puts worth UGX.1.993Tn representing 98% of the total budget and noted that all outputs were not quantified to enable measurement of performance. \u2022 I noted all activities relating to project 1178-AMISOM, were not captured and reported on in the performance reports despite the Ministry receiving all the funds to implement them. \u2022 Domestic arrears decreased by 0.74% from UGX.654,154,670,615 in the previous year to UGX.649,318,551,765 in the year under review. \u2022 Settlement of arrears amounting to UGX.31,981,575,912 outstanding from prior year (2017/18) were undertaken without allocated budget. \u2022 UGX.12 bn is budgeted annually as capitalization to the Defense Shop and UGX.3bn was paid during the year. I was not availed with a MOU and necessary records to indicate the basis for the annual capitalisation. A ledger to indicate projected capitalisation amount paid todate was also lacking. Further, an advance tax of UGX.9bn was paid without tax returns. \u2022 I noted that MODVA paid an excess compensation of UGX.4. 209bn for a leasehold interest on land in Kabamba without legal advice from the Attorney General. \u2022 I noted that Land in Lugazi measuring approximately 10 acres had been encroached. \u2022 An extra cost of UGX.49,150,350 was paid on polythene paper rolls which could have been saved if MoDVA had followed the PPDA procedures. \u2022 Shortcomings were noted in the implementation of the provisions in the circular standing instructions on staff performance management. The gaps identified include: No development of performance agreements and plans, no completion of performance appraisal, no completion of quarterly performance reviews, no completion of performance improvement plans, no submission of reports to Ministry of Public Service (MoPS), no mechanism for monitoring of staff attendance, no submission of reports on absenteeism, no existence of rewards and sanctions committee, no timelines on conclusion of disciplinary cases and no client charter."], ["4", "National Enterprise Corporation (NEC) \\_ Headquarter **Opinion** Unqualified", "\u2022 Debtors totaling to UGX.248,954,060 have been outstanding for a number of years. \u2022 Out of the total revenue projections UGX.203,930,594, UGX.2,665,000,000 was realised representing a performance of 108% of the target. \u2022 I sampled 7 out-puts worth UGX.1,433,179,002 representing 54% of the total budget and noted that all outputs were quantified to enable measurement of performance. Further, of the 7 quantified outputs/activities assessed, 6 outputs/activities representing 86% were fully implemented; 1 output/activity representing 14% was partially implemented. \u2022 NEC owns Plot No. 1018 which is about 10 acres of land at Kampala Industrial and Business Park in Namanve which has been idle for about 14 years. \u2022 Shortcomings were noted in the implementation of the provisions in NEC Staff Terms and Conditions of Service 2013 Regulation 36(c) for purposes of staff appraisals. The gaps identified include: non-development of performance agreements and plans, non-completion of performance appraisal, non-completion of quarterly performance reviews, non-completion of performance improvement plans, no mechanism for monitoring of staff attendance and no existence of rewards and sanctions committee."], ["5", "National Enterprise Corporation (NEC) \u2013 Tractor Project Limited **Opinion** Unqualified", "\u2022 I noted that the entity had outstanding trade debtors amounting to UGX.1,056,677,120 at the close of the financial year 2018/2019 and some of which have been outstanding for over the past three financial years. \u2022 Out of the budgeted revenue of UGX.2,559,855,313, UGX.543,222,600 was collected representing performance of 21.2% of the target. \u2022 All 8 activities assessed/reviewed, representing 100% of the total assessed activities were not quantified to enable measurement of performance."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 164, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY", "SUMMARY OF KEY FINDINGS attendance, no submission of reports on absenteeism, no existence of rewards and sanctions committee, no timelines on conclusion of disciplinary cases and no client charter."], "type": "table"}}, {"content": [["3", "Ministry of Defence & UVAB **Opinion** Unqualified", "\u2022 Out of the total NTR projections of UGX.1,500,000,000, UGX.56,710,000 was realised representing an under performance of 3.8% of the target. \u2022 I sampled 41 out-puts worth UGX.1.993Tn representing 98% of the total budget and noted that all outputs were not quantified to enable measurement of performance. \u2022 I noted all activities relating to project 1178-AMISOM, were not captured and reported on in the performance reports despite the Ministry receiving all the funds to implement them. \u2022 Domestic arrears decreased by 0.74% from UGX.654,154,670,615 in the previous year to UGX.649,318,551,765 in the year under review. \u2022 Settlement of arrears amounting to UGX.31,981,575,912 outstanding from prior year (2017/18) were undertaken without allocated budget. \u2022 UGX.12 bn is budgeted annually as capitalization to the Defense Shop and UGX.3bn was paid during the year. I was not availed with a MOU and necessary records to indicate the basis for the annual capitalisation. A ledger to indicate projected capitalisation amount paid todate was also lacking. Further, an advance tax of UGX.9bn was paid without tax returns. \u2022 I noted that MODVA paid an excess compensation of UGX.4. 209bn for a leasehold interest on land in Kabamba without legal advice from the Attorney General. \u2022 I noted that Land in Lugazi measuring approximately 10 acres had been encroached. \u2022 An extra cost of UGX.49,150,350 was paid on polythene paper rolls which could have been saved if MoDVA had followed the PPDA procedures. \u2022 Shortcomings were noted in the implementation of the provisions in the circular standing instructions on staff performance management. The gaps identified include: No development of performance agreements and plans, no completion of performance appraisal, no completion of quarterly performance reviews, no completion of performance improvement plans, no submission of reports to Ministry of Public Service (MoPS), no mechanism for monitoring of staff attendance, no submission of reports on absenteeism, no existence of rewards and sanctions committee, no timelines on conclusion of disciplinary cases and no client charter."], ["4", "National Enterprise Corporation (NEC) \\_ Headquarter **Opinion** Unqualified", "\u2022 Debtors totaling to UGX.248,954,060 have been outstanding for a number of years. \u2022 Out of the total revenue projections UGX.203,930,594, UGX.2,665,000,000 was realised representing a performance of 108% of the target. \u2022 I sampled 7 out-puts worth UGX.1,433,179,002 representing 54% of the total budget and noted that all outputs were quantified to enable measurement of performance. Further, of the 7 quantified outputs/activities assessed, 6 outputs/activities representing 86% were fully implemented; 1 output/activity representing 14% was partially implemented. \u2022 NEC owns Plot No. 1018 which is about 10 acres of land at Kampala Industrial and Business Park in Namanve which has been idle for about 14 years. \u2022 Shortcomings were noted in the implementation of the provisions in NEC Staff Terms and Conditions of Service 2013 Regulation 36(c) for purposes of staff appraisals. The gaps identified include: non-development of performance agreements and plans, non-completion of performance appraisal, non-completion of quarterly performance reviews, non-completion of performance improvement plans, no mechanism for monitoring of staff attendance and no existence of rewards and sanctions committee."], ["5", "National Enterprise Corporation (NEC) \u2013 Tractor Project Limited **Opinion** Unqualified", "\u2022 I noted that the entity had outstanding trade debtors amounting to UGX.1,056,677,120 at the close of the financial year 2018/2019 and some of which have been outstanding for over the past three financial years. \u2022 Out of the budgeted revenue of UGX.2,559,855,313, UGX.543,222,600 was collected representing performance of 21.2% of the target. \u2022 All 8 activities assessed/reviewed, representing 100% of the total assessed activities were not quantified to enable measurement of performance."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 164, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY", "SUMMARY OF KEY FINDINGS attendance, no submission of reports on absenteeism, no existence of rewards and sanctions committee, no timelines on conclusion of disciplinary cases and no client charter."], "type": "table"}}, {"content": "151", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 164, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["6", "National Enterprise Corporation (NEC) \u2013 Tractor Hire Scheme Limited **Opinion** Unqualified", "\u2022 Trade debtors decreased by 22% from UGX.797,388,281 in FY 2017/2018 to UGX.623,442,200 (excluding withholding tax) in FY 2018/19. \u2022 Out of the total projected revenue of UGX.17,606,430,860 UGX. 2,678,563,220 was realised representing a performance of 115% of the target. \u2022 I sampled 8 outputs/activities with a total budget of UGX.16,512,877,555 representing 94% of the total budget. I noted that 3 activities representing 38% of the total outputs/activities were not quantified to enable measurement of performance. Of the 5 assessed outputs/activities assessed, 3 outputs/activities representing 60% were fully implemented; 2 outputs/activities representing 40% was partially implemented. \u2022 The scheme had 7 tractors out of which only 2 were functioning while the 5 tractors were grounded. \u2022 Shortcomings were noted in the implementation of the provisions in NEC Staff Terms and Conditions of Service 2013 Regulation 36(c) for purposes of staff appraisals. The gaps identified include: none development of performance agreements and plans, none completion of performance appraisal and quarterly performance reviews, none completion of performance improvement plans, lack mechanism for monitoring of staff attendance and none existence of rewards and sanctions committee."], ["7", "National Enterprise Corporation (NEC) \u2013 Luwero Industries Limited **Opinion** Unqualified", "\u2022 Trade debtors of UGX.954,036,947 have been outstanding for several years despite the Auditor General\u2019s earlier recommendations to management to devise a recovery plan or have some of them written off. \u2022 Trade creditors of UGX.1,132,790,229 have been outstanding for over three financial years. \u2022 Out of the total projections of UGX.8,452,124,416, UGX.7,506,352,614 was realised representing performance of 89% of the target. \u2022 I sampled 11 out-puts worth UGX.4,688,841,055 representing 55% of the total budget and noted that all outputs were quantified to enable measurement of performance. Further, of the 8 quantified outputs/activities assessed, 5 outputs/activities representing 63% were fully implemented; 2 output/activity representing 25% was partially implemented while 1 output representing 12%. \u2022 Shortcomings were noted in the implementation of the provisions in NEC Staff Terms and Conditions of Service 2013 Regulation 36(c) for purposes of staff appraisals. The gaps identified include: non-development of performance agreements and plans, non-completion of performance appraisals, non-completion of quarterly performance reviews, non- completion of performance improvement plans, no mechanism for monitoring of staff attendance and no existence of rewards and sanctions committee."], ["8", "National Enterprise Corporation (NEC) \u2013 Construction Works and Engineering Limited **Opinion** Unqualified", "\u2022 A debt of UGX.309,131,860 by MOD CMI has been outstanding for a period of more than a year. \u2022 Out of the budgeted revenue of UGX.5,200,000,000 for the year 2018/19, UGX.10,337,334,454 was collected representing performance of 199% of the target. \u2022 I sampled 7 out-puts worth UGX.4,722,081,060 representing 93% of the total budget and noted that 2 outputs/activities representing 29% of the total outputs/ activities were not quantified to enable measurement of performance. Further, of the 5 quantified outputs/activities assessed, no outputs/activities were fully implemented; 3 activities representing 60% were partially implemented while 2 activities representing 40% were not implemented at all. \u2022 Shortcomings were noted in the implementation of the provisions in NEC Staff Terms and Conditions of Service 2013 Regulation 36(c) for purposes of staff appraisals. The gaps identified include: none development of performance agreements and plans, none completion of performance appraisal and quarterly performance reviews, none completion of performance"]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 165, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY", "SUMMARY OF KEY FINDINGS \u2022 Shortcomings were noted in the implementation of the provisions in NEC Staff Terms and Conditions of Service 2013 Regulation 36(c) for purposes of staff appraisals. The gaps identified include: non-development of performance agreements and plans, non-completion of performance appraisal, non-completion of quarterly performance reviews, non-completion of performance improvement plans, no mechanism for monitoring of staff attendance and no existence of rewards and sanctions committee."], "type": "table"}}, {"content": [["6", "National Enterprise Corporation (NEC) \u2013 Tractor Hire Scheme Limited **Opinion** Unqualified", "\u2022 Trade debtors decreased by 22% from UGX.797,388,281 in FY 2017/2018 to UGX.623,442,200 (excluding withholding tax) in FY 2018/19. \u2022 Out of the total projected revenue of UGX.17,606,430,860 UGX. 2,678,563,220 was realised representing a performance of 115% of the target. \u2022 I sampled 8 outputs/activities with a total budget of UGX.16,512,877,555 representing 94% of the total budget. I noted that 3 activities representing 38% of the total outputs/activities were not quantified to enable measurement of performance. Of the 5 assessed outputs/activities assessed, 3 outputs/activities representing 60% were fully implemented; 2 outputs/activities representing 40% was partially implemented. \u2022 The scheme had 7 tractors out of which only 2 were functioning while the 5 tractors were grounded. \u2022 Shortcomings were noted in the implementation of the provisions in NEC Staff Terms and Conditions of Service 2013 Regulation 36(c) for purposes of staff appraisals. The gaps identified include: none development of performance agreements and plans, none completion of performance appraisal and quarterly performance reviews, none completion of performance improvement plans, lack mechanism for monitoring of staff attendance and none existence of rewards and sanctions committee."], ["7", "National Enterprise Corporation (NEC) \u2013 Luwero Industries Limited **Opinion** Unqualified", "\u2022 Trade debtors of UGX.954,036,947 have been outstanding for several years despite the Auditor General\u2019s earlier recommendations to management to devise a recovery plan or have some of them written off. \u2022 Trade creditors of UGX.1,132,790,229 have been outstanding for over three financial years. \u2022 Out of the total projections of UGX.8,452,124,416, UGX.7,506,352,614 was realised representing performance of 89% of the target. \u2022 I sampled 11 out-puts worth UGX.4,688,841,055 representing 55% of the total budget and noted that all outputs were quantified to enable measurement of performance. Further, of the 8 quantified outputs/activities assessed, 5 outputs/activities representing 63% were fully implemented; 2 output/activity representing 25% was partially implemented while 1 output representing 12%. \u2022 Shortcomings were noted in the implementation of the provisions in NEC Staff Terms and Conditions of Service 2013 Regulation 36(c) for purposes of staff appraisals. The gaps identified include: non-development of performance agreements and plans, non-completion of performance appraisals, non-completion of quarterly performance reviews, non- completion of performance improvement plans, no mechanism for monitoring of staff attendance and no existence of rewards and sanctions committee."], ["8", "National Enterprise Corporation (NEC) \u2013 Construction Works and Engineering Limited **Opinion** Unqualified", "\u2022 A debt of UGX.309,131,860 by MOD CMI has been outstanding for a period of more than a year. \u2022 Out of the budgeted revenue of UGX.5,200,000,000 for the year 2018/19, UGX.10,337,334,454 was collected representing performance of 199% of the target. \u2022 I sampled 7 out-puts worth UGX.4,722,081,060 representing 93% of the total budget and noted that 2 outputs/activities representing 29% of the total outputs/ activities were not quantified to enable measurement of performance. Further, of the 5 quantified outputs/activities assessed, no outputs/activities were fully implemented; 3 activities representing 60% were partially implemented while 2 activities representing 40% were not implemented at all. \u2022 Shortcomings were noted in the implementation of the provisions in NEC Staff Terms and Conditions of Service 2013 Regulation 36(c) for purposes of staff appraisals. The gaps identified include: none development of performance agreements and plans, none completion of performance appraisal and quarterly performance reviews, none completion of performance"]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 165, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY", "SUMMARY OF KEY FINDINGS \u2022 Shortcomings were noted in the implementation of the provisions in NEC Staff Terms and Conditions of Service 2013 Regulation 36(c) for purposes of staff appraisals. The gaps identified include: non-development of performance agreements and plans, non-completion of performance appraisal, non-completion of quarterly performance reviews, non-completion of performance improvement plans, no mechanism for monitoring of staff attendance and no existence of rewards and sanctions committee."], "type": "table"}}, {"content": "152", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 165, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["9", "National Enterprise Corporation (NEC) \u2013 UZIMA Limited **Opinion** Unqualified", "\u2022 Trade payables increased by 569% from UGX.164,354,000 in the previous financial year to UGX.1,100,044,856 in the year under review. \u2022 Out of the budgeted revenue of UGX.5,412,853,613 for the year 2018/19, UGX.4,627,269,210 was collected representing under performance of 14.5% of the target. \u2022 I sampled 9 outputs worth UGX.4,380,286,900 representing 81% of the total budget and noted that all outputs were not quantified to enable measurement of performance. \u2022 I noted that the factory fire escape route was blocked and employees lacked protective gear exposing them to possible factory accidents. \u2022 Shortcomings were noted in the implementation of the provisions in NEC Staff Terms and Conditions of Service 2013 Regulation 36(c) for purposes of staff appraisals. The gaps identified include: none development of performance agreements and plans, none completion of performance appraisal and quarterly performance reviews, none completion of performance improvement plans, lack mechanism for monitoring of staff attendance and none existence of rewards and sanctions committee."], ["10", "National Enterprise Corporation (NEC) \u2013 Farm Katonga Limited **Opinion** Unqualified", "\u2022 UGX.4,226,554,679 was spent by NEC for infrastructure development in Kyankwanzi-NALI with the aim of extending the export grade beef project without legal ownership of the land. \u2022 Out of the budgeted revenue of UGX.150,000,000 for the year 2018/19, UGX.667 250,000 was collected representing performance of 445% of the target. \u2022 I sampled 7 out-puts worth UGX.935,791,800 representing 80% of the total budget and noted that 4 outputs/activities representing 57% of the total outputs/ activities were not quantified to enable measurement of performance. Further, of the 3 quantified outputs/activities assessed, no activity was fully implemented; 2 activities representing 67% were partially implemented while 1 activity representing 33% was not implemented at all. \u2022 Shortcomings were noted in the implementation of the provisions in NEC Staff Terms and Conditions of Service 2013 Regulation 36(c) for purposes of staff appraisals. The gaps identified include: non development of performance agreements and plans, non-completion of performance appraisals, non-completion of quarterly performance reviews, no completion of performance improvement plans, no mechanism for monitoring of staff attendance and no existence of rewards and sanctions committee."], ["11", "Uganda Air Cargo **Opinion** Unqualified", "\u2022 The Corporation has outstanding trade receivables of UGX.1,633,873,518 as at 30th June 2019. Of these, debtors totaling to UGX.8,340,893,520 representing 72% had been outstanding for a period of more than two years. \u2022 The Corporation has outstanding trade payables amounting to UGX.14,566,675,168 with over UGX.13 bn that has been outstanding for over three financial years. \u2022 Salaries to the tune of UGX.5,247,458,218 have remained outstanding for a period of over 2 years. \u2022 Three aircrafts have remained grounded i.e. 5X-UDF, 5X-UYX and C130 requiring major overhaul and at the time of grounding the aircrafts, the restoration costs were US$8m compared to US$11m now. \u2022 Out of the budgeted revenue of UGX.41,937,497,120 for the year 2018/19, UGX.15,313,216,618 was collected representing performance of 37% of the target. \u2022 I sampled 5 out-puts worth UGX.37.9bn representing 90% of the total budget and noted that 1 output was not quantified to enable measurement of performance. Further, of the 4 quantified outputs/activities assessed, 1 output/activity representing 20% was fully implemented; 3 outputs/activities representing 80% were partially implemented. \u2022 Shortcomings were noted in the implementation of the provisions in regarding Staff Terms and Conditions for purposes of staff appraisals. The gaps identified include: non-development of performance agreements and plans, non-completion of performance appraisal, non-completion of quarterly performance reviews, non-completion of performance improvement plans, no"]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 166, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY", "SUMMARY OF KEY FINDINGS improvement plans, lack mechanism for monitoring of staff attendance and none existence of rewards and sanctions committee."], "type": "table"}}, {"content": [["9", "National Enterprise Corporation (NEC) \u2013 UZIMA Limited **Opinion** Unqualified", "\u2022 Trade payables increased by 569% from UGX.164,354,000 in the previous financial year to UGX.1,100,044,856 in the year under review. \u2022 Out of the budgeted revenue of UGX.5,412,853,613 for the year 2018/19, UGX.4,627,269,210 was collected representing under performance of 14.5% of the target. \u2022 I sampled 9 outputs worth UGX.4,380,286,900 representing 81% of the total budget and noted that all outputs were not quantified to enable measurement of performance. \u2022 I noted that the factory fire escape route was blocked and employees lacked protective gear exposing them to possible factory accidents. \u2022 Shortcomings were noted in the implementation of the provisions in NEC Staff Terms and Conditions of Service 2013 Regulation 36(c) for purposes of staff appraisals. The gaps identified include: none development of performance agreements and plans, none completion of performance appraisal and quarterly performance reviews, none completion of performance improvement plans, lack mechanism for monitoring of staff attendance and none existence of rewards and sanctions committee."], ["10", "National Enterprise Corporation (NEC) \u2013 Farm Katonga Limited **Opinion** Unqualified", "\u2022 UGX.4,226,554,679 was spent by NEC for infrastructure development in Kyankwanzi-NALI with the aim of extending the export grade beef project without legal ownership of the land. \u2022 Out of the budgeted revenue of UGX.150,000,000 for the year 2018/19, UGX.667 250,000 was collected representing performance of 445% of the target. \u2022 I sampled 7 out-puts worth UGX.935,791,800 representing 80% of the total budget and noted that 4 outputs/activities representing 57% of the total outputs/ activities were not quantified to enable measurement of performance. Further, of the 3 quantified outputs/activities assessed, no activity was fully implemented; 2 activities representing 67% were partially implemented while 1 activity representing 33% was not implemented at all. \u2022 Shortcomings were noted in the implementation of the provisions in NEC Staff Terms and Conditions of Service 2013 Regulation 36(c) for purposes of staff appraisals. The gaps identified include: non development of performance agreements and plans, non-completion of performance appraisals, non-completion of quarterly performance reviews, no completion of performance improvement plans, no mechanism for monitoring of staff attendance and no existence of rewards and sanctions committee."], ["11", "Uganda Air Cargo **Opinion** Unqualified", "\u2022 The Corporation has outstanding trade receivables of UGX.1,633,873,518 as at 30th June 2019. Of these, debtors totaling to UGX.8,340,893,520 representing 72% had been outstanding for a period of more than two years. \u2022 The Corporation has outstanding trade payables amounting to UGX.14,566,675,168 with over UGX.13 bn that has been outstanding for over three financial years. \u2022 Salaries to the tune of UGX.5,247,458,218 have remained outstanding for a period of over 2 years. \u2022 Three aircrafts have remained grounded i.e. 5X-UDF, 5X-UYX and C130 requiring major overhaul and at the time of grounding the aircrafts, the restoration costs were US$8m compared to US$11m now. \u2022 Out of the budgeted revenue of UGX.41,937,497,120 for the year 2018/19, UGX.15,313,216,618 was collected representing performance of 37% of the target. \u2022 I sampled 5 out-puts worth UGX.37.9bn representing 90% of the total budget and noted that 1 output was not quantified to enable measurement of performance. Further, of the 4 quantified outputs/activities assessed, 1 output/activity representing 20% was fully implemented; 3 outputs/activities representing 80% were partially implemented. \u2022 Shortcomings were noted in the implementation of the provisions in regarding Staff Terms and Conditions for purposes of staff appraisals. The gaps identified include: non-development of performance agreements and plans, non-completion of performance appraisal, non-completion of quarterly performance reviews, non-completion of performance improvement plans, no"]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 166, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY", "SUMMARY OF KEY FINDINGS improvement plans, lack mechanism for monitoring of staff attendance and none existence of rewards and sanctions committee."], "type": "table"}}, {"content": "153", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 166, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["", "**HEALTH SECTOR**", ""], ["1", "Mulago National Referral Hospital **Opinion** Qualified", "\u2022 The Cumulative outstanding commitment in respect of \u2018Goods and services consumed\u2019 under the Memorandum Statement of Outstanding Commitments was wrongly cast as UGX 3,869,983,881 instead of UGX 4,077,770,677. In addition, outstanding commitments of UGX 5,752,772,100 were not supported. \u2022 A sum of UGX.3, 268,349,770 was charged on items which do not reflect the nature of the expenditure as defined per Government Chart of Accounts. \u2022 The entity wrongly reported excess Appropriation-In-Aid (AIA) expenditure of UGX 1,797,788,219 as an adjustment in the Statement of Changes in Equity (Net Worth). \u2022 Out of the Fourteen (14) sampled outputs with twenty five (25) activities in the annual work plan, thirteen (13) activities (representing 52%) were fully implemented; Six (6) activities (representing 24%) were partially implemented; One (1) activity (representing 4%) was not implemented and Five (5) activities (representing 20%) did not have performance targets and indicators to facilitate performance measurement (extent of delivery of the planned outputs). \u2022 I noted that out of the budgeted revenue of UGX.13,000,000,000 for the year 2018/19, only UGX.3,948,263,830 was collected (representing under performance of 69.6% of the target). \u2022 The entity budgeted to receive UGX.79,178,004,894. However, UGX 69,979,373,406 was warranted resulting into a budget shortfall of UGX 9,198,631,381 representing 11.6%. \u2022 Out of the warrants, UGX 64,463,706,286 was spent by the entity resulting into unspent balance of UGX 5,515,667,120 representing an under-absorption level of 7.9%. \u2022 I noted cases where the information reported in the annual performance report by the Hospital management was not accurate. Quantification of expected outputs and actual result output was not done in some cases. \u2022 The entity reported domestic arrears totalling UGX.5,752,772,100. This figure increased from UGX.4,261,691,744 in the year ended 30th June 2018. \u2022 I noted that the Hospital did not have an approved strategic plan to guide the planning activities for the period under review contrary to the requirements of the standing instructions. \u2022 I noted that the Hospital Administration had 41 registered business ventures operating on the Hospital land. On the contrary, a physical count during inspection of the premises revealed that there were 145 ventures operating on Mulago Hospital premises. \u2022 I noted that 10 housing blocks with a total of 30 house units in the Mulago quarters occupied by senior members of staff, and 5 housing blocks along Owen road occupied by senior Doctors still had houses roofed with asbestos sheets. \u2022 I noted that some of vehicles earmarked for disposal were not recorded in the register and according to the administration such vehicles were to be disposed of. \u2022 The hospital experienced stock outs of various medicines and I noted cases of expired drugs. \u2022 Shortcomings were noted in the implementation of performance management initiatives. The gaps identified include; Understaffing, failure to develop performance agreements/targets, failure to develop performance Plans, late completion of Performance Appraisals, failure to undertake quarterly Performance Reviews, none completion of Performance Improvement Plans, lack of mechanism in place to monitor staff attendance and failure to publish a client charter."], ["2", "Butabika National Mental Referral Hospital **Opinion** Unqualified", "\u2022 I noted that out of the budgeted revenue of UGX. 1,700,000,000, UGX. 1,124,181,541 was collected representing an under performance of 33.9% of the target. \u2022 I also noted that UGX. 1,111,206,838 collected, was remitted to the consolidated fund resulting in the difference of UGX. 10,537,503 (after accounting for bank charges of UGX.2,437,200) due to the consolidated fund by the close of the year. \u2022 The entity budgeted to receive UGX.14,799,156,269 however UGX.14,393,526,297 was warranted resulting in a budget shortfall of UGX.405,629,972 representing 2.74%."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 167, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY", "SUMMARY OF KEY FINDINGS mechanism for monitoring of staff attendance and no existence of rewards and sanctions committee."], "type": "table"}}, {"content": [["", "**HEALTH SECTOR**", ""], ["1", "Mulago National Referral Hospital **Opinion** Qualified", "\u2022 The Cumulative outstanding commitment in respect of \u2018Goods and services consumed\u2019 under the Memorandum Statement of Outstanding Commitments was wrongly cast as UGX 3,869,983,881 instead of UGX 4,077,770,677. In addition, outstanding commitments of UGX 5,752,772,100 were not supported. \u2022 A sum of UGX.3, 268,349,770 was charged on items which do not reflect the nature of the expenditure as defined per Government Chart of Accounts. \u2022 The entity wrongly reported excess Appropriation-In-Aid (AIA) expenditure of UGX 1,797,788,219 as an adjustment in the Statement of Changes in Equity (Net Worth). \u2022 Out of the Fourteen (14) sampled outputs with twenty five (25) activities in the annual work plan, thirteen (13) activities (representing 52%) were fully implemented; Six (6) activities (representing 24%) were partially implemented; One (1) activity (representing 4%) was not implemented and Five (5) activities (representing 20%) did not have performance targets and indicators to facilitate performance measurement (extent of delivery of the planned outputs). \u2022 I noted that out of the budgeted revenue of UGX.13,000,000,000 for the year 2018/19, only UGX.3,948,263,830 was collected (representing under performance of 69.6% of the target). \u2022 The entity budgeted to receive UGX.79,178,004,894. However, UGX 69,979,373,406 was warranted resulting into a budget shortfall of UGX 9,198,631,381 representing 11.6%. \u2022 Out of the warrants, UGX 64,463,706,286 was spent by the entity resulting into unspent balance of UGX 5,515,667,120 representing an under-absorption level of 7.9%. \u2022 I noted cases where the information reported in the annual performance report by the Hospital management was not accurate. Quantification of expected outputs and actual result output was not done in some cases. \u2022 The entity reported domestic arrears totalling UGX.5,752,772,100. This figure increased from UGX.4,261,691,744 in the year ended 30th June 2018. \u2022 I noted that the Hospital did not have an approved strategic plan to guide the planning activities for the period under review contrary to the requirements of the standing instructions. \u2022 I noted that the Hospital Administration had 41 registered business ventures operating on the Hospital land. On the contrary, a physical count during inspection of the premises revealed that there were 145 ventures operating on Mulago Hospital premises. \u2022 I noted that 10 housing blocks with a total of 30 house units in the Mulago quarters occupied by senior members of staff, and 5 housing blocks along Owen road occupied by senior Doctors still had houses roofed with asbestos sheets. \u2022 I noted that some of vehicles earmarked for disposal were not recorded in the register and according to the administration such vehicles were to be disposed of. \u2022 The hospital experienced stock outs of various medicines and I noted cases of expired drugs. \u2022 Shortcomings were noted in the implementation of performance management initiatives. The gaps identified include; Understaffing, failure to develop performance agreements/targets, failure to develop performance Plans, late completion of Performance Appraisals, failure to undertake quarterly Performance Reviews, none completion of Performance Improvement Plans, lack of mechanism in place to monitor staff attendance and failure to publish a client charter."], ["2", "Butabika National Mental Referral Hospital **Opinion** Unqualified", "\u2022 I noted that out of the budgeted revenue of UGX. 1,700,000,000, UGX. 1,124,181,541 was collected representing an under performance of 33.9% of the target. \u2022 I also noted that UGX. 1,111,206,838 collected, was remitted to the consolidated fund resulting in the difference of UGX. 10,537,503 (after accounting for bank charges of UGX.2,437,200) due to the consolidated fund by the close of the year. \u2022 The entity budgeted to receive UGX.14,799,156,269 however UGX.14,393,526,297 was warranted resulting in a budget shortfall of UGX.405,629,972 representing 2.74%."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 167, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY", "SUMMARY OF KEY FINDINGS mechanism for monitoring of staff attendance and no existence of rewards and sanctions committee."], "type": "table"}}, {"content": "154", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 167, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["3", "Uganda Aids Commission (UAC) **Opinion** Unqualified", "\u2022 Out of the warrants of UGX.6,867,449,905, UGX.6,813,469,870 was spent by the entity resulting in unspent balance of UGX.53,980,035 (representing an absorption level of 99.21%). \u2022 The Commission planned to achieve its deliverables through implementation of 82 outputs. I reviewed all the 82 outputs budgeted for during the year and noted that 10 outputs representing 12% of the total outputs were not quantified to enable measurement of performance. \u2022 Further, out of the 72 quantified outputs assessed, 55 outputs representing 76% were fully implemented; four (4) outputs representing 6% were partially implemented while 13 outputs representing 18% were not reported on. \u2022 Funds worth UGX 15,820,901 were irregularly diverted and spent on other activities without seeking necessary approvals. \u2022 The Commission received off-budget financing to a tune of UGX 3,372,895,662 which was not included in its budget estimate/appropriation. \u2022 The Commission returned unspent donor funds worth UGX 47,421,315 to the respective donors due to failure to utilise the funds. \u2022 Domestic arrears worth UGX 76,162,402 remained unsettled at the close of the financial year. \u2022 The Commission has a dispute over property ownership and has therefore not been able to collect revenue from the properties on the land since October 2016. \u2022 Shortcomings were noted in the implementation of the provisions of the UAC Human resources manual in relation to staff performance management. The gaps identified include failure to prepare the Commission annual performance plan; failure to prepare an annual performance report; failure to hold Quarterly Performance reviews and failure to review staff attendance."], ["4", "Uganda Blood Transfusion Services (UBTS) **Opinion** Unqualified", "\u2022 Parliament appropriated a total of UGX.19.18Bn to UBTS, however the entity only received UGX.19.17Bn resulting in a budget shortfall of UGX.9,674,726 representing a funding level of 99.95% of the approved budget. \u2022 Out of the warranted amount of (UGX.19,172,423,897 ), UGX.19,131,289,991 was spent by the entity resulting in unspent balance of UGX.41,133,906 representing an absorption level of 99.79%. \u2022 I noted that funds amounting to UGX 35,735,999 were diverted. \u2022 I noted that out of 6 outputs assessed, 3 outputs representing 50% of the total outputs were not quantified to enable measurement of performance. \u2022 I noted that out of the 6 quantified outputs assessed, no output was fully implemented; one (1) output representing 16.7% was partially implemented while two (2) outputs representing 33.3% were not implemented at all and three (3) outputs representing 50% did not have clear performance indicators and targets to facilitate performance measurement."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 168, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY", "SUMMARY OF KEY FINDINGS \u2022 Out of the warrants, only UGX.13,914,233,527 was spent by the Entity resulting in an unspent balance of UGX.479,292,770 representing an absorption level of 96.67%. \u2022 I noted out of the 19 quantified activities assessed, only 6 activities representing 32% were fully implemented; 3 (16%) activities had no targets and indicator metric set to determine the extent of delivery of the output, 2 (11%) were not implemented while 8(42%) were not implemented. \u2022 A sum of UGX. 36,111,290 was diverted to other activities contrary to the financial regulations. \u2022 I noted that domestic arrears worth UGX 111,930,566 were incurred by the entity during the year under review. \u2022 The Hospital\u2019s Approved Structure has 533 positions. However, the staff list as at 30/06/2019 showed that only 388 posts were filled leaving 145 (27%) positions vacant. \u2022 I noted that the hospital had medicines that expired as far back as 2015/2016 financial year in its medical stores. \u2022 Shortcomings were noted in the implementation of performance management initiatives. The gaps identified include; failure to develop performance agreements/targets, non-submission of performance Agreement Report, non-Submission of performance appraisal reports and non- completion of quarterly performance reviews."], "type": "table"}}, {"content": [["3", "Uganda Aids Commission (UAC) **Opinion** Unqualified", "\u2022 Out of the warrants of UGX.6,867,449,905, UGX.6,813,469,870 was spent by the entity resulting in unspent balance of UGX.53,980,035 (representing an absorption level of 99.21%). \u2022 The Commission planned to achieve its deliverables through implementation of 82 outputs. I reviewed all the 82 outputs budgeted for during the year and noted that 10 outputs representing 12% of the total outputs were not quantified to enable measurement of performance. \u2022 Further, out of the 72 quantified outputs assessed, 55 outputs representing 76% were fully implemented; four (4) outputs representing 6% were partially implemented while 13 outputs representing 18% were not reported on. \u2022 Funds worth UGX 15,820,901 were irregularly diverted and spent on other activities without seeking necessary approvals. \u2022 The Commission received off-budget financing to a tune of UGX 3,372,895,662 which was not included in its budget estimate/appropriation. \u2022 The Commission returned unspent donor funds worth UGX 47,421,315 to the respective donors due to failure to utilise the funds. \u2022 Domestic arrears worth UGX 76,162,402 remained unsettled at the close of the financial year. \u2022 The Commission has a dispute over property ownership and has therefore not been able to collect revenue from the properties on the land since October 2016. \u2022 Shortcomings were noted in the implementation of the provisions of the UAC Human resources manual in relation to staff performance management. The gaps identified include failure to prepare the Commission annual performance plan; failure to prepare an annual performance report; failure to hold Quarterly Performance reviews and failure to review staff attendance."], ["4", "Uganda Blood Transfusion Services (UBTS) **Opinion** Unqualified", "\u2022 Parliament appropriated a total of UGX.19.18Bn to UBTS, however the entity only received UGX.19.17Bn resulting in a budget shortfall of UGX.9,674,726 representing a funding level of 99.95% of the approved budget. \u2022 Out of the warranted amount of (UGX.19,172,423,897 ), UGX.19,131,289,991 was spent by the entity resulting in unspent balance of UGX.41,133,906 representing an absorption level of 99.79%. \u2022 I noted that funds amounting to UGX 35,735,999 were diverted. \u2022 I noted that out of 6 outputs assessed, 3 outputs representing 50% of the total outputs were not quantified to enable measurement of performance. \u2022 I noted that out of the 6 quantified outputs assessed, no output was fully implemented; one (1) output representing 16.7% was partially implemented while two (2) outputs representing 33.3% were not implemented at all and three (3) outputs representing 50% did not have clear performance indicators and targets to facilitate performance measurement."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 168, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY", "SUMMARY OF KEY FINDINGS \u2022 Out of the warrants, only UGX.13,914,233,527 was spent by the Entity resulting in an unspent balance of UGX.479,292,770 representing an absorption level of 96.67%. \u2022 I noted out of the 19 quantified activities assessed, only 6 activities representing 32% were fully implemented; 3 (16%) activities had no targets and indicator metric set to determine the extent of delivery of the output, 2 (11%) were not implemented while 8(42%) were not implemented. \u2022 A sum of UGX. 36,111,290 was diverted to other activities contrary to the financial regulations. \u2022 I noted that domestic arrears worth UGX 111,930,566 were incurred by the entity during the year under review. \u2022 The Hospital\u2019s Approved Structure has 533 positions. However, the staff list as at 30/06/2019 showed that only 388 posts were filled leaving 145 (27%) positions vacant. \u2022 I noted that the hospital had medicines that expired as far back as 2015/2016 financial year in its medical stores. \u2022 Shortcomings were noted in the implementation of performance management initiatives. The gaps identified include; failure to develop performance agreements/targets, non-submission of performance Agreement Report, non-Submission of performance appraisal reports and non- completion of quarterly performance reviews."], "type": "table"}}, {"content": "155", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 168, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["5", "China Uganda Friendship Hospital \u2013 Naguru **Opinion** Unqualified", "\u2022 I noted that out of the budgeted revenue of UGX.280,000,000 for the year 2018/19, only UGX.136,972,203 was collected representing a performance of 51.08% of the target, and underperformance of 48.92%. \u2022 The entity budgeted to receive UGX.8,675,295,804 however UGX.8,401,895,801 was warranted resulting in a budget shortfall of UGX. 273,400,003 representing 3%. \u2022 Out of the warrants, UGX 8,002,044,677 was spent by the entity resulting in unspent balance of UGX.399,851,124 representing an absorption level of 95.24%. \u2022 I noted that out of the 23 outputs planned to be implemented with a total budget of UGX. 8,675,295,804, I reviewed all the 23 outputs budgeted at UGX. 8,675,295,804 representing 100% of the total budget. \u2022 A sum of UGX 32,978,594 was irregularly diverted from the rightful activities towards others without seeking and obtaining the necessary approvals. \u2022 I noted that the hospital does not have a management Board. \u2022 I noted that a total of UGX.344,556,616 was paid to a number of suppliers without deduction of withholding tax worth UGX 20,673,397. \u2022 I noted that out of 349 approved positions, only 290 (83%) positions were filled and 59 (17%) positions were vacant by the end of the year under review. \u2022 Shortcomings were noted in the implementation of performance management initiatives. The gaps identified include; failure to develop performance agreements/targets, non-submission of performance Agreement Report, non-completion of performance improvement plans, non- Submission of progress report on performance improvement plans, non-submission of Submission of reports on discipline and lack of a clients\u2019 charter. \u2022 I noted that the hospital lacked medical stationary and had a challenge of drugs stock outs."], ["6", "National Medical Stores (NMS) **Opinion** Unqualified", "\u2022 I noted that NMS payables increased from UGX 77,905,926,000 for the financial year 2017/18 to UGX 121,475,919,000 for the financial year 2018/19 representing an increase of UGX 43,569,993,000 (representing 55.9%). \u2022 On the other hand, a review of the IFMS financial reports revealed that NMS was indebted to the tune of UGX 110,726,211,404. No reconciliation was provided to harmonize the two figures. \u2022 The entity reported a balance of receivables amounting to UGX 38,223,536,000 in the statement of financial position of which four (4) debtors valued at UGX 17,325,064,059 were all more than three years old. \u2022 I noted that no guidance was provided on the depreciation methods and rates applicable to the different classes of assets. As a result UGX 3,182,002,000 reported as the value of depreciation charge for the year lacked a proper base for its computation. \u2022 National Medical Stores Finance and Accounting Policy and Procedure Manual 2018 does not provide guidance on Inventory valuation although NMS values its inventory every financial year."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 169, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY", "SUMMARY OF KEY FINDINGS \u2022 I noted significant inconsistencies between the figures in the vote performance report and the statement of financial performance as of 30th June, 2019. \u2022 I noted that collected blood is transported together with staff using the entity non refrigerated vehicles. \u2022 UBTS operates without accreditation by the African Society for Blood Transfusion (AFSBT). This means that its (UBTS) operations are only limited to local standards. \u2022 Shortcomings were noted in the implementation of performance management initiatives. The gaps identified include; lack of performance agreements, non-submission of Performance Agreement Reports, late completion of performance appraisals, non-submission of Performance Appraisal Reports, failure to undertake quarterly performance reviews, non-completion of performance plans, non-submission of Progress Reports on Performance Improvement Plans, lack of mechanism to monitor staff attendance, non- submission of reports on absenteeism, late Conclusion of Disciplinary Cases, non- submission of Reports on Discipline and lack of a client\u2019s charter."], "type": "table"}}, {"content": [["5", "China Uganda Friendship Hospital \u2013 Naguru **Opinion** Unqualified", "\u2022 I noted that out of the budgeted revenue of UGX.280,000,000 for the year 2018/19, only UGX.136,972,203 was collected representing a performance of 51.08% of the target, and underperformance of 48.92%. \u2022 The entity budgeted to receive UGX.8,675,295,804 however UGX.8,401,895,801 was warranted resulting in a budget shortfall of UGX. 273,400,003 representing 3%. \u2022 Out of the warrants, UGX 8,002,044,677 was spent by the entity resulting in unspent balance of UGX.399,851,124 representing an absorption level of 95.24%. \u2022 I noted that out of the 23 outputs planned to be implemented with a total budget of UGX. 8,675,295,804, I reviewed all the 23 outputs budgeted at UGX. 8,675,295,804 representing 100% of the total budget. \u2022 A sum of UGX 32,978,594 was irregularly diverted from the rightful activities towards others without seeking and obtaining the necessary approvals. \u2022 I noted that the hospital does not have a management Board. \u2022 I noted that a total of UGX.344,556,616 was paid to a number of suppliers without deduction of withholding tax worth UGX 20,673,397. \u2022 I noted that out of 349 approved positions, only 290 (83%) positions were filled and 59 (17%) positions were vacant by the end of the year under review. \u2022 Shortcomings were noted in the implementation of performance management initiatives. The gaps identified include; failure to develop performance agreements/targets, non-submission of performance Agreement Report, non-completion of performance improvement plans, non- Submission of progress report on performance improvement plans, non-submission of Submission of reports on discipline and lack of a clients\u2019 charter. \u2022 I noted that the hospital lacked medical stationary and had a challenge of drugs stock outs."], ["6", "National Medical Stores (NMS) **Opinion** Unqualified", "\u2022 I noted that NMS payables increased from UGX 77,905,926,000 for the financial year 2017/18 to UGX 121,475,919,000 for the financial year 2018/19 representing an increase of UGX 43,569,993,000 (representing 55.9%). \u2022 On the other hand, a review of the IFMS financial reports revealed that NMS was indebted to the tune of UGX 110,726,211,404. No reconciliation was provided to harmonize the two figures. \u2022 The entity reported a balance of receivables amounting to UGX 38,223,536,000 in the statement of financial position of which four (4) debtors valued at UGX 17,325,064,059 were all more than three years old. \u2022 I noted that no guidance was provided on the depreciation methods and rates applicable to the different classes of assets. As a result UGX 3,182,002,000 reported as the value of depreciation charge for the year lacked a proper base for its computation. \u2022 National Medical Stores Finance and Accounting Policy and Procedure Manual 2018 does not provide guidance on Inventory valuation although NMS values its inventory every financial year."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 169, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY", "SUMMARY OF KEY FINDINGS \u2022 I noted significant inconsistencies between the figures in the vote performance report and the statement of financial performance as of 30th June, 2019. \u2022 I noted that collected blood is transported together with staff using the entity non refrigerated vehicles. \u2022 UBTS operates without accreditation by the African Society for Blood Transfusion (AFSBT). This means that its (UBTS) operations are only limited to local standards. \u2022 Shortcomings were noted in the implementation of performance management initiatives. The gaps identified include; lack of performance agreements, non-submission of Performance Agreement Reports, late completion of performance appraisals, non-submission of Performance Appraisal Reports, failure to undertake quarterly performance reviews, non-completion of performance plans, non-submission of Progress Reports on Performance Improvement Plans, lack of mechanism to monitor staff attendance, non- submission of reports on absenteeism, late Conclusion of Disciplinary Cases, non- submission of Reports on Discipline and lack of a client\u2019s charter."], "type": "table"}}, {"content": "156", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 169, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["7", "Uganda Virus Research Institute (UVRI) **Opinion** Unqualified", "\u2022 I noted that out of the budgeted revenue of UGX.260,000,000 for the year 2018/19, only UGX.107,120,835 was collected representing 41.2% of the target. \u2022 The entity budgeted to receive UGX 7,377,120,461. However, UGX 6,720,335,064 was warranted and released resulting in a budget shortfall of UGX 656,785,397 representing 8.9%. Out of the amount released (UGX 6,720,335,064), UGX 6,378,913,118 was spent by the entity resulting in unspent balance of UGX 341,421,946 representing an under-absorption level of 5%. \u2022 Out of the 7 quantified outputs/activities assessed, 1 output/activity representing 14% was fully implemented and 6 outputs/activities representing 86% were partially implemented. \u2022 The error of UGX.374,275,610 was not corrected and reflected in the Reconciliation between total expenditure per Appropriation Accounts and per Statement of Financial Performance. \u2022 I noted that the Institute\u2019s Nitrogen Plant broke down in 2017 and had not been repaired or replaced by the time of audit. \u2022 UVRI has an approved structure of 237 positions. Out of the 237 approved positions, only 88 (37.1%) were filled and 149 positions remained vacant as at the time of the audit (Nov 2019). Among the unfilled positions, are key positions of Assistant Director of Research in Zoology/Ecology, Public Relations Officer, Principal Economist and Bio Medical Engineer. \u2022 Shortcomings were noted in the implementation of performance management initiatives. The gaps identified include; late completion of Performance Appraisals, non-Submission of performance appraisal reports, non-completion of Performance Improvement Plans, non- Submission of progress report on performance improvement plans, Non- submission of reports on absenteeism  and lack of a client\u2019s charter."], ["8", "Health Service Commission (HSC) **Opinion** Unqualified", "\u2022 I noted that the entity did not budget for NTR yet UGX.13,243,700 was collected. \u2022 The entity budgeted to receive UGX.6,404,808,971 out of which r UGX.6,404,399,754 was warranted representing almost 100% of the budget. \u2022 Out of the amount released of UGX.6,404,399,754, UGX. 6,260,564,779 was spent by the entity resulting in unspent balance of UGX.143,834,975 representing an absorption level of 97.75%. \u2022 I noted that out of the 6 quantified outputs/activities assessed, 1 output/activity representing 17% was fully implemented; 1 output/activity representing 17% was partially implemented while the level of implementation for 4 outputs/activities representing 66% could not be assessed due to lack of indicators/ targets. \u2022 I noted that funds to the tune of UGX.15,820,901 were irregularly diverted towards other activities without seeking and obtaining the necessary approvals. \u2022 A trend analysis of the domestic arrears showed a limited movement of arrears from UGX. 82,918,252 in the previous year to UGX.82,798,153 in the year under review, a decrease of 0.15 %. \u2022 It was noted that out of the 79 approved posts for the Commission, only 46 (58%) were filled leaving 33 (42%) posts vacant. \u2022 I noted that the Commission launched an Electronic Recruitment System (ERS) and has established recruitment hubs in eight Regional Referral Hospitals without a proper IT governance structure. The commission did not have an IT policy, IT Strategic Committee, IT Strategic Plan and an IT Unit to drive the strategy. \u2022 Shortcomings were noted in the implementation of performance management initiatives. The gaps identified include; failure to develop performance agreements/targets, delayed development of performance plans, delayed completion of performance appraisals, Failure to hold quarterly performance reviews and Non-submission of a summary report on performance appraisal. \u2022 Shortcomings were noted in the recruitment of Staff for the Health Service. The gaps identified include; Non-submission of HSC performance reports by District Service Commissions, Non-"]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 170, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY", "SUMMARY OF KEY FINDINGS \u2022 I noted that \u201ccall off orders\u201d and supplier delivery notes for Medical supplies amounting to UGX. 8,857,994,346 were delivered outside the agreed upon delivery dates."], "type": "table"}}, {"content": [["7", "Uganda Virus Research Institute (UVRI) **Opinion** Unqualified", "\u2022 I noted that out of the budgeted revenue of UGX.260,000,000 for the year 2018/19, only UGX.107,120,835 was collected representing 41.2% of the target. \u2022 The entity budgeted to receive UGX 7,377,120,461. However, UGX 6,720,335,064 was warranted and released resulting in a budget shortfall of UGX 656,785,397 representing 8.9%. Out of the amount released (UGX 6,720,335,064), UGX 6,378,913,118 was spent by the entity resulting in unspent balance of UGX 341,421,946 representing an under-absorption level of 5%. \u2022 Out of the 7 quantified outputs/activities assessed, 1 output/activity representing 14% was fully implemented and 6 outputs/activities representing 86% were partially implemented. \u2022 The error of UGX.374,275,610 was not corrected and reflected in the Reconciliation between total expenditure per Appropriation Accounts and per Statement of Financial Performance. \u2022 I noted that the Institute\u2019s Nitrogen Plant broke down in 2017 and had not been repaired or replaced by the time of audit. \u2022 UVRI has an approved structure of 237 positions. Out of the 237 approved positions, only 88 (37.1%) were filled and 149 positions remained vacant as at the time of the audit (Nov 2019). Among the unfilled positions, are key positions of Assistant Director of Research in Zoology/Ecology, Public Relations Officer, Principal Economist and Bio Medical Engineer. \u2022 Shortcomings were noted in the implementation of performance management initiatives. The gaps identified include; late completion of Performance Appraisals, non-Submission of performance appraisal reports, non-completion of Performance Improvement Plans, non- Submission of progress report on performance improvement plans, Non- submission of reports on absenteeism  and lack of a client\u2019s charter."], ["8", "Health Service Commission (HSC) **Opinion** Unqualified", "\u2022 I noted that the entity did not budget for NTR yet UGX.13,243,700 was collected. \u2022 The entity budgeted to receive UGX.6,404,808,971 out of which r UGX.6,404,399,754 was warranted representing almost 100% of the budget. \u2022 Out of the amount released of UGX.6,404,399,754, UGX. 6,260,564,779 was spent by the entity resulting in unspent balance of UGX.143,834,975 representing an absorption level of 97.75%. \u2022 I noted that out of the 6 quantified outputs/activities assessed, 1 output/activity representing 17% was fully implemented; 1 output/activity representing 17% was partially implemented while the level of implementation for 4 outputs/activities representing 66% could not be assessed due to lack of indicators/ targets. \u2022 I noted that funds to the tune of UGX.15,820,901 were irregularly diverted towards other activities without seeking and obtaining the necessary approvals. \u2022 A trend analysis of the domestic arrears showed a limited movement of arrears from UGX. 82,918,252 in the previous year to UGX.82,798,153 in the year under review, a decrease of 0.15 %. \u2022 It was noted that out of the 79 approved posts for the Commission, only 46 (58%) were filled leaving 33 (42%) posts vacant. \u2022 I noted that the Commission launched an Electronic Recruitment System (ERS) and has established recruitment hubs in eight Regional Referral Hospitals without a proper IT governance structure. The commission did not have an IT policy, IT Strategic Committee, IT Strategic Plan and an IT Unit to drive the strategy. \u2022 Shortcomings were noted in the implementation of performance management initiatives. The gaps identified include; failure to develop performance agreements/targets, delayed development of performance plans, delayed completion of performance appraisals, Failure to hold quarterly performance reviews and Non-submission of a summary report on performance appraisal. \u2022 Shortcomings were noted in the recruitment of Staff for the Health Service. The gaps identified include; Non-submission of HSC performance reports by District Service Commissions, Non-"]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 170, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY", "SUMMARY OF KEY FINDINGS \u2022 I noted that \u201ccall off orders\u201d and supplier delivery notes for Medical supplies amounting to UGX. 8,857,994,346 were delivered outside the agreed upon delivery dates."], "type": "table"}}, {"content": "157", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 170, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["9", "Ministry of Health **Opinion** Qualified", "\u2022 Unsupported adjustments relating to domestic arrears (UGX. 1,655,638,328), overdraft (UGX. 1,037,888,831) and bounced EFTs (UGX. 313,653,500) which as a whole have a material effect on the presentation of the financial statements. \u2022 Mischarge/ Diversion of funds amounting to UGX. 3,089,769,035. \u2022 There was a shortfall in releases amounting to UGX. 12,204,467,716 representing an under- release of 7.5% of the budget. Ministry of Health had unspent balance of UGX. 3,257,075 (out of UGX. 150,334,054,569 released), representing an absorption level of almost 100%. \u2022 The Ministry planned to achieve its deliverables through implementation of 41 outputs. I sampled 28 out-puts budgeted at UGX. 1,022,297,782,000 (including external funding) representing 87.71% of the total budget for review and noted that of these, 1 (3.57%) was fully implemented, 5 (17.86%) partially implemented, and 11 (39.28%) not implemented at all. The remaining 11 (39.28%) could not be assessed as no targets had been set by the Ministry. \u2022 MoH did not budget for NTR. However, UGX 134,218,800 was collected. Failure to budget for revenue misleads the users of the financial statements. \u2022 Off-budget financing received by MoH to a tune of USD. 6,202,468.79 and UGX. 4,678,591,035 was not paid into the Consolidated Fund contrary to the PFMA, 2015. \u2022 MoH did not budget adequately for domestic arrears. With domestic arrears amounting to UGX. 46,522,711,341, only UGX 197,440,913 was budgeted for settlement of domestic arrears, and only UGX 20,258,934,225 of this was actually paid. \u2022 MoH had contingent liabilities amounting to UGX 46,206,660,072 due to two on-going court cases. \u2022 The Ministry of Health has an approved organisation structure comprising of 853 staff out of which 481 posts have been filled, leaving a balance of 372 posts vacant. \u2022 Serious shortcomings were noted in the area of staff performance management, including delays to complete and submit to MoPS Performance Agreements, Plans, Appraisals, Improvement Plans and reports on discipline; absence of a rewards and sanctions committee; and delayed conclusion of disciplinary cases. \u2022 UGX. 2,742,205,914 was paid out as pension without the Responsible Officers verifying the salary, gratuity and pension payment files sent to the IPPS/IFMS; pensioners aged 75 years and above were being paid pension without availability of life certificates on their files; and gratuity payments worth UGX. 495,906,691 were uploaded to the IFMS without having been processed through the IPPS, presenting a risk of making duplicate payments."], ["10", "National Drug Authority **Opinion** Qualified", "\u2022 Amounts totalling UGX 32,305,937,813 that related to contract sums for the construction of a Laboratory Tower (UGX 31,310,160,593) and Supervising Consultant (UGX 995,777,220) were erroneously recognized as payables and Capital Work In Progress before commencement of works. \u2022 Although National Drug Authority had a revenue performance of 106%, there were shortfalls in certain revenues streams amounting to UGX 1,016,669,274. \u2022 National Drug Authority had a capital expenditure budget of UGX 41,310,730,100 of which only UGX 1,579,441,546 (3.28%) was utilized thereby leaving unspent funds worth UGX 39,731,288,554. \u2022 Even though the Authority set expenditure targets per quarter for the capital expenditure, no clear targets and performance indicators were set some of the outputs. \u2022 The Authority planned to achieve its deliverables through implementation of 71 outputs. I sampled 28 outputs worth UGX 9,209,511,000 representing 17.9% of the total budget and noted that nine (9) outputs were fully implemented, 16 partially implemented, two (2) outputs were not implemented at all and one (1) planned output could not be assessed."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 171, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY", "SUMMARY OF KEY FINDINGS monitoring of the implementation of the Commission\u2019s decisions, Failure to attract staff in key positions."], "type": "table"}}, {"content": [["9", "Ministry of Health **Opinion** Qualified", "\u2022 Unsupported adjustments relating to domestic arrears (UGX. 1,655,638,328), overdraft (UGX. 1,037,888,831) and bounced EFTs (UGX. 313,653,500) which as a whole have a material effect on the presentation of the financial statements. \u2022 Mischarge/ Diversion of funds amounting to UGX. 3,089,769,035. \u2022 There was a shortfall in releases amounting to UGX. 12,204,467,716 representing an under- release of 7.5% of the budget. Ministry of Health had unspent balance of UGX. 3,257,075 (out of UGX. 150,334,054,569 released), representing an absorption level of almost 100%. \u2022 The Ministry planned to achieve its deliverables through implementation of 41 outputs. I sampled 28 out-puts budgeted at UGX. 1,022,297,782,000 (including external funding) representing 87.71% of the total budget for review and noted that of these, 1 (3.57%) was fully implemented, 5 (17.86%) partially implemented, and 11 (39.28%) not implemented at all. The remaining 11 (39.28%) could not be assessed as no targets had been set by the Ministry. \u2022 MoH did not budget for NTR. However, UGX 134,218,800 was collected. Failure to budget for revenue misleads the users of the financial statements. \u2022 Off-budget financing received by MoH to a tune of USD. 6,202,468.79 and UGX. 4,678,591,035 was not paid into the Consolidated Fund contrary to the PFMA, 2015. \u2022 MoH did not budget adequately for domestic arrears. With domestic arrears amounting to UGX. 46,522,711,341, only UGX 197,440,913 was budgeted for settlement of domestic arrears, and only UGX 20,258,934,225 of this was actually paid. \u2022 MoH had contingent liabilities amounting to UGX 46,206,660,072 due to two on-going court cases. \u2022 The Ministry of Health has an approved organisation structure comprising of 853 staff out of which 481 posts have been filled, leaving a balance of 372 posts vacant. \u2022 Serious shortcomings were noted in the area of staff performance management, including delays to complete and submit to MoPS Performance Agreements, Plans, Appraisals, Improvement Plans and reports on discipline; absence of a rewards and sanctions committee; and delayed conclusion of disciplinary cases. \u2022 UGX. 2,742,205,914 was paid out as pension without the Responsible Officers verifying the salary, gratuity and pension payment files sent to the IPPS/IFMS; pensioners aged 75 years and above were being paid pension without availability of life certificates on their files; and gratuity payments worth UGX. 495,906,691 were uploaded to the IFMS without having been processed through the IPPS, presenting a risk of making duplicate payments."], ["10", "National Drug Authority **Opinion** Qualified", "\u2022 Amounts totalling UGX 32,305,937,813 that related to contract sums for the construction of a Laboratory Tower (UGX 31,310,160,593) and Supervising Consultant (UGX 995,777,220) were erroneously recognized as payables and Capital Work In Progress before commencement of works. \u2022 Although National Drug Authority had a revenue performance of 106%, there were shortfalls in certain revenues streams amounting to UGX 1,016,669,274. \u2022 National Drug Authority had a capital expenditure budget of UGX 41,310,730,100 of which only UGX 1,579,441,546 (3.28%) was utilized thereby leaving unspent funds worth UGX 39,731,288,554. \u2022 Even though the Authority set expenditure targets per quarter for the capital expenditure, no clear targets and performance indicators were set some of the outputs. \u2022 The Authority planned to achieve its deliverables through implementation of 71 outputs. I sampled 28 outputs worth UGX 9,209,511,000 representing 17.9% of the total budget and noted that nine (9) outputs were fully implemented, 16 partially implemented, two (2) outputs were not implemented at all and one (1) planned output could not be assessed."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 171, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY", "SUMMARY OF KEY FINDINGS monitoring of the implementation of the Commission\u2019s decisions, Failure to attract staff in key positions."], "type": "table"}}, {"content": "158", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 171, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["11", "Uganda Nurses and Midwives Council \u2013 FY 2017/2018 **Opinion** Unqualified", "\u2022 Contrary to best practice corporate governance requirements for separation of operational and oversight responsibilities, it was observed that the Chairperson of the Council signed the financial statements submitted to this Office for audit instead of the Accounting Officer (Registrar). \u2022 There was a shortfall in releases amounting to UGX 43,500,000 representing an under release of 58% of the budget. \u2022 The Council received a grant of UGX 48,750,000 from the United Nations Population Fund (UNFPA) and I observed that only UGX 11,500,000 (24%) had been utilised while the balance of UGX. 37,250,000 was refunded back to UNFPA because of failure by the institute to absorb it within the year. \u2022 Funds worth UGX 38,088,650 were spent in excess of the approved budget without the approval of the Minister. \u2022 I observed that the key positions of the Registrar and Deputy Registrar have not yet been substantively filled. Further, I noted that two staff have been acting in these positions for more than the mandatory period of 6 months and are being paid acting allowances, without evidence on their personal files that their acting appointments were renewed or extended by the Health Service Commission. \u2022 The Council lacks an internal audit function. \u2022 I noted that the Council awarded a contract for the construction of a water borne toilet at UNMC at UGX.43,770,330, while the approved budget was UGX.32,000,000 and there was no approved supplementary budget to support the additional allocation of UGX 11,770,330. \u2022 The Council undertook procurement of the Supply of assorted stationery at UGX 9,202,000, without any procurement requisition (Form 5) from the user department. \u2022 I reviewed procurements totalling to UGX 147,667,220 and noted a number of irregularities such as: payments worth UGX 93,052,720 made to suppliers other than those named in the LPOs; incomplete deliveries; deliveries made before initiation of procurements; deliveries made before evaluation of bidders and instances of lack of contracts. \u2022 The Council procured 6000 certificates and 7000 identity cards. I noted that only 2,065 certificates and 7,000 identity cards were delivered and the supplier was paid UGX. 20,123,500 in excess of the invoiced amount. Furthermore the procurement records were not availed for audit."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 172, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY", "SUMMARY OF KEY FINDINGS \u2022 Funds worth UGX 27,160,098,065 had not been collected by the close of the financial year. Of this amount, UGX 23,959,154,964 was due from Ministry of Health while UGX 1,537,194,483 was owed from Global Fund and both remained outstanding for more than 2 years.  \u2022 A total of 15 assets were missing as result of staff leaving without handing them over to the Authority.  \u2022 Out of the 14 cases against the National Drug Authority, it was noted that seven (7) cases arose due to the Authority\u2019s failure to conduct the contract terminations of the parties involved in a fair and lawful manner, resulting in financial loss amounting to UGX 118,791,119 in addition to an outstanding obligation of UGX 800,000,000.  \u2022 I reviewed four (4) concluded cases against the National Drug Authority and noted that they arose out of unfair and unlawful action on the part of the Authority staff while undertaking their ordinary business, resulting in a financial loss of UGX 358,982,513.  \u2022 Delayed integration of the NDA Management Information System (NDAMIS) and Navision System resulting in manual reconciliation and posting of revenue transactions from NDAMIS to Navision.  \u2022 Shortcomings were noted in the implementation of the provisions of the NDA Human resources manual in relation to staff performance management. The gaps identified include absence of a rewards and sanctions committee and failure to complete and submit performance appraisals."], "type": "table"}}, {"content": "159", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 172, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["12", "Uganda Nurses and Midwives Council \u2013 FY 2018/2019 **Opinion** Qualified", "\u2022 An expenditure item was reported in the Statement of Financial Performance as cost of sales worth UGX 201,100,020 while the corresponding Note 14 disclosed \u2018printing costs\u2019 at UGX 191,435,720. No supporting documentation was provided for this amount. \u2022 The Council made payments totalling to UGX 1,274,315,720 as direct debits to the council bank accounts without any supporting documentation and they were also not captured in the cashbook. \u2022 Most of the sections of the UNMC Financial and Accounting Policies and Procedures Manual 2012 are outdated and need updating. \u2022 The Nurses and Midwives Act requires the Council to prepare the annual financial statements of accounts for the immediately preceding financial year not later than three months in the following year, which contradicts the PFMA, 2015. \u2022 There were no log books maintained to track the vehicle movements as required by the regulations and no records were maintained to keep track of vehicle history, performance, servicing, overheads, and repairs. \u2022 The Council appointed a contract manager who was not a staff of the Council contrary to PPDA regulations."], ["13", "Uganda Medical and Dental Practitioners Council **Opinion** Unqualified", "\u2022 UMDPC had an approved budget of UGX 1,953,040,000 out of which UGX 1,667,255,072 (87.1%) was realized, resulting into a shortfall of UGX 285,784,928 (12.9%). \u2022 UMDPC only received UGX 32,750,000 from MoH as subventions out of the budgeted UGX 75,000,000, translating into a shortfall of UGX 42,250,000. \u2022 UMDPC\u2019s domestic arrears shot up from UGX 9,003,367 in the previous year to UGX 51,546,557 in the year under review, an increase of 472.5 %. The arrears, which remained unsettled at the close of the year, were in respect of statutory deductions of PAYE (UGX 36,351,201) and NSSF (UGX 15,195,356). \u2022 No budget provisions were made by UMDPC towards settlement of outstanding domestic arrears from the prior year amounting to UGX 9,003,367. \u2022 There were only two signatories to UMDPC\u2019s bank account, namely the Registrar and his Deputy, contrary to the requirement to have the Registrar (Accounting Officer) plus any other two heads of department as signatories. This means that Council business comes to a standstill if one of the signatories is away. \u2022 UMDPC has an approved organisation structure comprising of 26 staff out of which 16 posts have been filled, leaving a balance of 10 posts vacant. \u2022 No staff performance appraisals were done in the year under review. \u2022 No report on procurement activities undertaken by the Council was submitted to PPDA., despite the fact that UMDPC undertook procurements worth UGX 497,000,000 during the year under review."], ["14", "Joint Clinical Research Centre (JCRC) **Opinion** Qualified", "\u2022 I noted that the net book value of land and buildings was understated to the extent of the difference between its carrying amount and the market value. \u2022 I noted that donated assets were not valued and recognized in the financial statements. Hence, understating the net book value of Property, Plant Equipment. \u2022 I noted that the entity had an approved revenue budget of UGX 24,247,302,851, out of which UGX 19,140,030,000 was realized resulting in a shortfall of UGX.5,107.272,851 (21%). \u2022 I observed that out of the 204 quantified outputs assessed, 159 outputs/activities representing 78% were fully implemented, 5 outputs/activities representing 2% were partially implemented while 40 outputs/activities representing 20% were not implemented at all. \u2022 I noted that during the year, the Centre operated without stocks for key essential medicines and health supplies."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 173, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY", "SUMMARY OF KEY FINDINGS \u2022 I noted that the council has no designated transport officer and as a result, log books and fuel registers were not being maintained. In addition there were no monthly fuel reconciliations being undertaken or operating records on maintenance and repairs."], "type": "table"}}, {"content": [["12", "Uganda Nurses and Midwives Council \u2013 FY 2018/2019 **Opinion** Qualified", "\u2022 An expenditure item was reported in the Statement of Financial Performance as cost of sales worth UGX 201,100,020 while the corresponding Note 14 disclosed \u2018printing costs\u2019 at UGX 191,435,720. No supporting documentation was provided for this amount. \u2022 The Council made payments totalling to UGX 1,274,315,720 as direct debits to the council bank accounts without any supporting documentation and they were also not captured in the cashbook. \u2022 Most of the sections of the UNMC Financial and Accounting Policies and Procedures Manual 2012 are outdated and need updating. \u2022 The Nurses and Midwives Act requires the Council to prepare the annual financial statements of accounts for the immediately preceding financial year not later than three months in the following year, which contradicts the PFMA, 2015. \u2022 There were no log books maintained to track the vehicle movements as required by the regulations and no records were maintained to keep track of vehicle history, performance, servicing, overheads, and repairs. \u2022 The Council appointed a contract manager who was not a staff of the Council contrary to PPDA regulations."], ["13", "Uganda Medical and Dental Practitioners Council **Opinion** Unqualified", "\u2022 UMDPC had an approved budget of UGX 1,953,040,000 out of which UGX 1,667,255,072 (87.1%) was realized, resulting into a shortfall of UGX 285,784,928 (12.9%). \u2022 UMDPC only received UGX 32,750,000 from MoH as subventions out of the budgeted UGX 75,000,000, translating into a shortfall of UGX 42,250,000. \u2022 UMDPC\u2019s domestic arrears shot up from UGX 9,003,367 in the previous year to UGX 51,546,557 in the year under review, an increase of 472.5 %. The arrears, which remained unsettled at the close of the year, were in respect of statutory deductions of PAYE (UGX 36,351,201) and NSSF (UGX 15,195,356). \u2022 No budget provisions were made by UMDPC towards settlement of outstanding domestic arrears from the prior year amounting to UGX 9,003,367. \u2022 There were only two signatories to UMDPC\u2019s bank account, namely the Registrar and his Deputy, contrary to the requirement to have the Registrar (Accounting Officer) plus any other two heads of department as signatories. This means that Council business comes to a standstill if one of the signatories is away. \u2022 UMDPC has an approved organisation structure comprising of 26 staff out of which 16 posts have been filled, leaving a balance of 10 posts vacant. \u2022 No staff performance appraisals were done in the year under review. \u2022 No report on procurement activities undertaken by the Council was submitted to PPDA., despite the fact that UMDPC undertook procurements worth UGX 497,000,000 during the year under review."], ["14", "Joint Clinical Research Centre (JCRC) **Opinion** Qualified", "\u2022 I noted that the net book value of land and buildings was understated to the extent of the difference between its carrying amount and the market value. \u2022 I noted that donated assets were not valued and recognized in the financial statements. Hence, understating the net book value of Property, Plant Equipment. \u2022 I noted that the entity had an approved revenue budget of UGX 24,247,302,851, out of which UGX 19,140,030,000 was realized resulting in a shortfall of UGX.5,107.272,851 (21%). \u2022 I observed that out of the 204 quantified outputs assessed, 159 outputs/activities representing 78% were fully implemented, 5 outputs/activities representing 2% were partially implemented while 40 outputs/activities representing 20% were not implemented at all. \u2022 I noted that during the year, the Centre operated without stocks for key essential medicines and health supplies."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 173, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY", "SUMMARY OF KEY FINDINGS \u2022 I noted that the council has no designated transport officer and as a result, log books and fuel registers were not being maintained. In addition there were no monthly fuel reconciliations being undertaken or operating records on maintenance and repairs."], "type": "table"}}, {"content": "160", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 173, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["15", "Uganda Cancer Institute **Opinion** Qualified", "\u2022 I observed that out of the UGX 7,419,908,090 funds allocated under program 02 -medical services to deliver cancer care services, UGX 497,155,495 representing 6.70% of the funds program allocation was diverted to other activities. \u2022 Parliament appropriated a total of UGX 93.072 billion to Uganda Cancer Institute; however the entity only received UGX 48.831 billion (representing a release of 52.5%) of the approved budget. \u2022 Of the amount of UGX 48.831 billion released UGX 48.808 billion was spent by the entity resulting in unsent balance of UGX 23 million representing 99.9% absorption level. The unspent balance at the end of the financial year was subsequently swept back to the consolidated fund account. \u2022 I noted that out of the 110 quantified activities assessed, only 63 outputs/activities representing 57% were fully implemented; 23 outputs/activities representing 21% were partially implemented, 14 outputs/activities representing 13% were not implemented while 10 outputs/activities representing (9%) had no targets and indicator metric set to determine the extent of delivery of the output. \u2022 I noted that staff salaries worth UGX.162,708,400 incurred during the year under review were not paid. \u2022 I noted that UGX.5,267,717 was paid to individuals who were not on the pension payroll that is included as part of the financial statements hence rendering the payment doubtful. \u2022 I noted that the entity lacked adequate space for offices, stores and patients. \u2022 Shortcomings were noted in the implementation of performance management initiatives. The gaps identified include; non-submission of progress report on performance improvement plans, late conclusion of disciplinary cases and non- submission of reports on disciplinary cases."], ["16", "Uganda Reproductive Maternal and Child Health Services Improvement Project (URMCHSIP) **Opinion** Unqualified", "\u2022 I noted some gaps relating to training of RMNCAH cadres in short supply; there were several training institutions that lack training aids and text books especially schools training the Diploma in Anesthesia, tutors of training schools (midwifery and anesthesia) had skill gaps and there were courses that were started with support of the Project specifically the Bachelor of Anesthesia for which schemes of service has not yet been developed. \u2022 I noted that a total ofUSD 31,627,057.95 was available for spending during the year. However, by close of the year under review, only USD.6,909,837.98 (22%) had been utilized. I further noted that out of the cumulative receipts for the two years of project implementation amounting USD 35,087,020, only USD.10,369,800.03(30%) had been spent by close of the year under review. \u2022 I noted that whereas funds amounting to USD 11,220,000 were available to the project for purchase of essential drugs, no procurements were conducted for the last two years of implementation. In addition, out of USD 10,100,000 available for purchase of health facilities equipment, only USD 2,296,209.08 had been spent (representing 22.7% absorption). Also noted was that USD 20,416,820 available for construction of maternity units had not yet been utilized."], ["17", "East African Public Health Laboratory Networking Project (EAPHLNP2)", "\u2022 I noted that the project had USD.9,683,037.18 available for spending during the year. However, only USD.4,191,998.54 was spent resulting in a total of USD.5,491,038.64 not utilized by year end."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 174, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY", "SUMMARY OF KEY FINDINGS \u2022 I observed that the annual summary statement of financial performance was submitted in November 2019 beyond the statutory deadline. \u2022 I noted that during the financial year 2017/18, five (5) firms bided to construct the Tuberculosis Clinic. However, the contracts committee made a decision that the quoted bid amount by the Best Evaluated Bidder of UGX 435,554,927 was so high and the Contracts Committee recommended the use of Force Account Mechanism without adhering to PPDA guidelines. \u2022 I noted that advance payments worth UGX. 165,627,079.29 were made to various suppliers without advance payment guarantees. \u2022 For procurements worth UGX 95,297,800 there was no evidence that market price assessment was conducted by the Accounting Officer prior to either initiation of the procurement or contracting."], "type": "table"}}, {"content": [["15", "Uganda Cancer Institute **Opinion** Qualified", "\u2022 I observed that out of the UGX 7,419,908,090 funds allocated under program 02 -medical services to deliver cancer care services, UGX 497,155,495 representing 6.70% of the funds program allocation was diverted to other activities. \u2022 Parliament appropriated a total of UGX 93.072 billion to Uganda Cancer Institute; however the entity only received UGX 48.831 billion (representing a release of 52.5%) of the approved budget. \u2022 Of the amount of UGX 48.831 billion released UGX 48.808 billion was spent by the entity resulting in unsent balance of UGX 23 million representing 99.9% absorption level. The unspent balance at the end of the financial year was subsequently swept back to the consolidated fund account. \u2022 I noted that out of the 110 quantified activities assessed, only 63 outputs/activities representing 57% were fully implemented; 23 outputs/activities representing 21% were partially implemented, 14 outputs/activities representing 13% were not implemented while 10 outputs/activities representing (9%) had no targets and indicator metric set to determine the extent of delivery of the output. \u2022 I noted that staff salaries worth UGX.162,708,400 incurred during the year under review were not paid. \u2022 I noted that UGX.5,267,717 was paid to individuals who were not on the pension payroll that is included as part of the financial statements hence rendering the payment doubtful. \u2022 I noted that the entity lacked adequate space for offices, stores and patients. \u2022 Shortcomings were noted in the implementation of performance management initiatives. The gaps identified include; non-submission of progress report on performance improvement plans, late conclusion of disciplinary cases and non- submission of reports on disciplinary cases."], ["16", "Uganda Reproductive Maternal and Child Health Services Improvement Project (URMCHSIP) **Opinion** Unqualified", "\u2022 I noted some gaps relating to training of RMNCAH cadres in short supply; there were several training institutions that lack training aids and text books especially schools training the Diploma in Anesthesia, tutors of training schools (midwifery and anesthesia) had skill gaps and there were courses that were started with support of the Project specifically the Bachelor of Anesthesia for which schemes of service has not yet been developed. \u2022 I noted that a total ofUSD 31,627,057.95 was available for spending during the year. However, by close of the year under review, only USD.6,909,837.98 (22%) had been utilized. I further noted that out of the cumulative receipts for the two years of project implementation amounting USD 35,087,020, only USD.10,369,800.03(30%) had been spent by close of the year under review. \u2022 I noted that whereas funds amounting to USD 11,220,000 were available to the project for purchase of essential drugs, no procurements were conducted for the last two years of implementation. In addition, out of USD 10,100,000 available for purchase of health facilities equipment, only USD 2,296,209.08 had been spent (representing 22.7% absorption). Also noted was that USD 20,416,820 available for construction of maternity units had not yet been utilized."], ["17", "East African Public Health Laboratory Networking Project (EAPHLNP2)", "\u2022 I noted that the project had USD.9,683,037.18 available for spending during the year. However, only USD.4,191,998.54 was spent resulting in a total of USD.5,491,038.64 not utilized by year end."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 174, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY", "SUMMARY OF KEY FINDINGS \u2022 I observed that the annual summary statement of financial performance was submitted in November 2019 beyond the statutory deadline. \u2022 I noted that during the financial year 2017/18, five (5) firms bided to construct the Tuberculosis Clinic. However, the contracts committee made a decision that the quoted bid amount by the Best Evaluated Bidder of UGX 435,554,927 was so high and the Contracts Committee recommended the use of Force Account Mechanism without adhering to PPDA guidelines. \u2022 I noted that advance payments worth UGX. 165,627,079.29 were made to various suppliers without advance payment guarantees. \u2022 For procurements worth UGX 95,297,800 there was no evidence that market price assessment was conducted by the Accounting Officer prior to either initiation of the procurement or contracting."], "type": "table"}}, {"content": "161", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 174, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["18", "Spain Uganda Debt Swap for Renovating Kawolo and Busolwe General Hospital (SUDS) **Opinion** Unqualified", "\u2022 No material issues to be reported on."], ["19", "East African Centre of excellence for skills and tertiary education in bio medical science (ADB support to UCI) **Opinion** Unqualified", "\u2022 I noted that out of UGX.64,262,869,000 the project expected from the Bank and UGX.1,989,265,000 from the GoU, a total of UGX.23,987,910,999 (37.3%) was received from the Bank and UGX.1,989,265,000 (100%) from the GoU resulting in a budget shortfall of UGX.40,274,958,001 (62.7%) in respect of external financing by the Bank. \u2022 I noted that of the UGX.27,478,553,587 available funds, a total of only UGX.23,463,995,356 was spent resulting in UGX.4,014,558,231 representing 16.7% of the funds available not absorbed. On the other hand, of amount (UGX.1,989,265,000) available for spending under Counterpart funding during the year, UGX.1,989,000,000 was spent representing an absorption level of 99.9%."], ["20", "Allied Health Professionals Council (AHPC) **Opinion** Unqualified", "\u2022 AHPC projected to collect a total of UGX 2,923,938,396 from all its revenue sources but collected an overall total of UGX 3,232,922,862, a performance of 110.57%. However, some of the revenue streams, namely Registration of Business, Sale of Council documents, Recovery \u2013 Debtors Health Units and Inspection fees, registered revenue shortfalls which totalled to UGX 401,036,683. \u2022 It was noted that AHPC fully implemented all planned activities. However, there was excess expenditure of UGX 295.091,302 above the approved budget of UGX 2,923,938,396, implying that the deliverables were achieved at higher than planned costs. \u2022 I noted unauthorised expenditure by AHPC on 15 expenditure lines, amounting to UGX 523,939,754. Whereas the budget for these activities was UGX 626,666,392, AHPC spent UGX 1,150,606,146 (45.5% extra) without seeking due authorisation."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 175, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY Opinion Unqualified", "SUMMARY OF KEY FINDINGS \u2022 I noted that the MoH did not conduct the semi-annual audits of the project. \u2022 I noted that 10 studies were not undertaken inspite of the availability of funding. The Ministry is missing a great opportunity to carry out studies to inform implementation of its core programs. \u2022 I noted that although the Project closure date is 30th March 2020, the ministry signed a one- year contract of UGX.8,913,336,496 for the construction of an Isolation Centre at Mulago with M/s Zhongmei on 3rd Oct 2019."], "type": "table"}}, {"content": [["18", "Spain Uganda Debt Swap for Renovating Kawolo and Busolwe General Hospital (SUDS) **Opinion** Unqualified", "\u2022 No material issues to be reported on."], ["19", "East African Centre of excellence for skills and tertiary education in bio medical science (ADB support to UCI) **Opinion** Unqualified", "\u2022 I noted that out of UGX.64,262,869,000 the project expected from the Bank and UGX.1,989,265,000 from the GoU, a total of UGX.23,987,910,999 (37.3%) was received from the Bank and UGX.1,989,265,000 (100%) from the GoU resulting in a budget shortfall of UGX.40,274,958,001 (62.7%) in respect of external financing by the Bank. \u2022 I noted that of the UGX.27,478,553,587 available funds, a total of only UGX.23,463,995,356 was spent resulting in UGX.4,014,558,231 representing 16.7% of the funds available not absorbed. On the other hand, of amount (UGX.1,989,265,000) available for spending under Counterpart funding during the year, UGX.1,989,000,000 was spent representing an absorption level of 99.9%."], ["20", "Allied Health Professionals Council (AHPC) **Opinion** Unqualified", "\u2022 AHPC projected to collect a total of UGX 2,923,938,396 from all its revenue sources but collected an overall total of UGX 3,232,922,862, a performance of 110.57%. However, some of the revenue streams, namely Registration of Business, Sale of Council documents, Recovery \u2013 Debtors Health Units and Inspection fees, registered revenue shortfalls which totalled to UGX 401,036,683. \u2022 It was noted that AHPC fully implemented all planned activities. However, there was excess expenditure of UGX 295.091,302 above the approved budget of UGX 2,923,938,396, implying that the deliverables were achieved at higher than planned costs. \u2022 I noted unauthorised expenditure by AHPC on 15 expenditure lines, amounting to UGX 523,939,754. Whereas the budget for these activities was UGX 626,666,392, AHPC spent UGX 1,150,606,146 (45.5% extra) without seeking due authorisation."], ["21", "Uganda Reproductive Health Voucher Project (URHVP) **Opinion** Unqualified", "\u2022 There was under-absorption of funds by URHVP. The project had an opening balance of USD 72,468.79 and receipts of USD 6,130,000 resulting in a total of USD 6,202,469 available during the year under review. However, out of the funds available, a total of only USD 4,757,264.39 was spent resulting in USD 1,445,204.40 (30.4%) unutilized by close of the year. In the above circumstances, not all planned activities were implemented."], ["22", "Uganda Global Fund to fight AIDS, Tuberculosis and Malaria Project \u2013 HIV Component **Opinion** Unqualified", "\u2022 No material issues to be reported on."], ["23", "Uganda Global Fund to fight AIDS, Tuberculosis and", "\u2022 No material issues to be reported on."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 175, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY Opinion Unqualified", "SUMMARY OF KEY FINDINGS \u2022 I noted that the MoH did not conduct the semi-annual audits of the project. \u2022 I noted that 10 studies were not undertaken inspite of the availability of funding. The Ministry is missing a great opportunity to carry out studies to inform implementation of its core programs. \u2022 I noted that although the Project closure date is 30th March 2020, the ministry signed a one- year contract of UGX.8,913,336,496 for the construction of an Isolation Centre at Mulago with M/s Zhongmei on 3rd Oct 2019."], "type": "table"}}, {"content": "162", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 175, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["24", "Uganda Global Fund to fight AIDS, Tuberculosis and Malaria Project \u2013 TB Component **Opinion** Unqualified", "\u2022 No material issues to be reported on."], ["25", "GAVI, The Vaccine Alliance cash grants to Uganda **Opinion** Unqualified", "\u2022 I noted that the project did not complete the fund accountability statement."], ["26", "Uganda Heart Institute (UHI) **Opinion** Qualified", "\u2022 Funds worth UGX 579,492,626 representing 3.2% of the funds earmarked to be spent on the planned outputs was diverted towards other activities without authority. \u2022 There was a shortfall in releases amounting to UGX 933 million representing an under release of 4.8% of the budget. Further, the UHI remained with unspent balance of UGX 472 million representing an absorption level of 97.5%. \u2022 The UHI planned to achieve a number of deliverables. I sampled 38 quantified activities worth UGX 12,057,209,000 representing 61.6% of the total budget and noted that seventeen (17) outputs representing 44.8% were fully implemented; six (6) outputs representing 15.8% were partially implemented; fourteen (14) outputs representing 36.8% were not implemented at all; and 1 output/activity representing 2.6% was not assessed due to lack of targets/indicators. \u2022 Domestic arrears worth UGX 535,857,001 remained unsettled at the close of the year. In addition, although the Institute had arrears worth UGX 1,127,458,497 from the prior year, only UGX 76,478,559 was budgeted towards settlement of domestic arrears. \u2022 From the pending surgery cases list, I observed that the Heart Institute had over 270 clients waiting for surgery. Patients take an average of two years to get operated upon by the institute. \u2022 There were gaps in the management of patient refunds for services paid for but not provided, such as: no refunds policy in place; there was no budget item for patients\u2019 refunds in the Chart of Accounts; refunds are made out of cash collection at the discretion of the responsible officer. \u2022 The Institute makes fee waivers to patients for various reasons especially financial incapacity. However, there was no waivers\u2019 policy in place to provide guidance on this matter. \u2022 There were anomalies in the Institute\u2019s Hospital Management Information System some of which include: there are no Quality assurance and control reports from the contract management; there were no change request documents and approved user systems access forms; Loss of patients data or information due to poor configurations; delays in review of patients and ECHO procedures; High downtime for the system; delays in retrieval and processing of patients data leading to increase in waiting time; poor systems maintenance due to having only one IT officer managing all systems. \u2022 Shortcomings were noted in the implementation of the provisions of the Public Service Standing Orders in relation to staff performance management which include among others: the failure to develop performance agreements and performance plans; failure to prepare and submit performance agreement reports; non-completion of performance appraisals; failure to prepare and submit performance appraisal reports and failure to develop and operationalize a patient\u2019s charter."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 176, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY  Malaria Project \u2013 Malaria Component Opinion Unqualified", "SUMMARY OF KEY FINDINGS"], "type": "table"}}, {"content": [["24", "Uganda Global Fund to fight AIDS, Tuberculosis and Malaria Project \u2013 TB Component **Opinion** Unqualified", "\u2022 No material issues to be reported on."], ["25", "GAVI, The Vaccine Alliance cash grants to Uganda **Opinion** Unqualified", "\u2022 I noted that the project did not complete the fund accountability statement."], ["26", "Uganda Heart Institute (UHI) **Opinion** Qualified", "\u2022 Funds worth UGX 579,492,626 representing 3.2% of the funds earmarked to be spent on the planned outputs was diverted towards other activities without authority. \u2022 There was a shortfall in releases amounting to UGX 933 million representing an under release of 4.8% of the budget. Further, the UHI remained with unspent balance of UGX 472 million representing an absorption level of 97.5%. \u2022 The UHI planned to achieve a number of deliverables. I sampled 38 quantified activities worth UGX 12,057,209,000 representing 61.6% of the total budget and noted that seventeen (17) outputs representing 44.8% were fully implemented; six (6) outputs representing 15.8% were partially implemented; fourteen (14) outputs representing 36.8% were not implemented at all; and 1 output/activity representing 2.6% was not assessed due to lack of targets/indicators. \u2022 Domestic arrears worth UGX 535,857,001 remained unsettled at the close of the year. In addition, although the Institute had arrears worth UGX 1,127,458,497 from the prior year, only UGX 76,478,559 was budgeted towards settlement of domestic arrears. \u2022 From the pending surgery cases list, I observed that the Heart Institute had over 270 clients waiting for surgery. Patients take an average of two years to get operated upon by the institute. \u2022 There were gaps in the management of patient refunds for services paid for but not provided, such as: no refunds policy in place; there was no budget item for patients\u2019 refunds in the Chart of Accounts; refunds are made out of cash collection at the discretion of the responsible officer. \u2022 The Institute makes fee waivers to patients for various reasons especially financial incapacity. However, there was no waivers\u2019 policy in place to provide guidance on this matter. \u2022 There were anomalies in the Institute\u2019s Hospital Management Information System some of which include: there are no Quality assurance and control reports from the contract management; there were no change request documents and approved user systems access forms; Loss of patients data or information due to poor configurations; delays in review of patients and ECHO procedures; High downtime for the system; delays in retrieval and processing of patients data leading to increase in waiting time; poor systems maintenance due to having only one IT officer managing all systems. \u2022 Shortcomings were noted in the implementation of the provisions of the Public Service Standing Orders in relation to staff performance management which include among others: the failure to develop performance agreements and performance plans; failure to prepare and submit performance agreement reports; non-completion of performance appraisals; failure to prepare and submit performance appraisal reports and failure to develop and operationalize a patient\u2019s charter."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 176, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY  Malaria Project \u2013 Malaria Component Opinion Unqualified", "SUMMARY OF KEY FINDINGS"], "type": "table"}}, {"content": "163", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 176, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["28", "Rehabilitation and Expansion of Kayunga and Yumbe Hospital (KAYUP) **Opinion** Unqualified", "\u2022 Out of the approved budget of USD 13,421,012.32, USD 8,942,539.76 was released, representing an under release of USD 4,478,472.56 (33.37% of the budget). Further, the project remained with unspent balance of USD 16,549.66 representing an absorption level of 99.8%."], ["29", "Karamoja Region Staff Housing Project (KRSHP) **Opinion** Unqualified", "\u2022 The third and final instalment for the project, amounting to Euros 1,399,850 was received on 06/06/2019 just before expiry of the Project on 19/06/2019. As a result, the contracts for the contractor and the supervising consultant could not be renewed in time. \u2022 Ministry of Health risks suffering a financial loss of USD 387,723.69 relating to advance payment made to M/S Zhonghao Overseas Construction Engineering Co. Ltd if the contractor does not renew the contract which expired on 19th December 2017."], ["", "**WORKS AND TRANSPORT SECTOR**", ""]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 177, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn 27", "SECTOR AND ENTITY  Uganda Sanitation Fund 2 (USF) Opinion Unqualified", "SUMMARY OF KEY FINDINGS \u2022 There was late disbursement of funds to sub-grantees (districts) with quarter one funds for FY 2018/2019 being released in quarter two. \u2022 The Government of Uganda failed to honour its commitment to disburse counterpart funding of USD 2 million. Consequently, the Global Sanitation Fund disbursements to the USF program were suspended as it was conditioned upon the release of the counterpart funds by the Government of Uganda. This affected all the eight (8) newly rolled out districts in addition to 32 old Districts leading to failure to secure funding for quarter 3 and 4 in FY 2018/2019."], "type": "table"}}, {"content": [["28", "Rehabilitation and Expansion of Kayunga and Yumbe Hospital (KAYUP) **Opinion** Unqualified", "\u2022 Out of the approved budget of USD 13,421,012.32, USD 8,942,539.76 was released, representing an under release of USD 4,478,472.56 (33.37% of the budget). Further, the project remained with unspent balance of USD 16,549.66 representing an absorption level of 99.8%."], ["29", "Karamoja Region Staff Housing Project (KRSHP) **Opinion** Unqualified", "\u2022 The third and final instalment for the project, amounting to Euros 1,399,850 was received on 06/06/2019 just before expiry of the Project on 19/06/2019. As a result, the contracts for the contractor and the supervising consultant could not be renewed in time. \u2022 Ministry of Health risks suffering a financial loss of USD 387,723.69 relating to advance payment made to M/S Zhonghao Overseas Construction Engineering Co. Ltd if the contractor does not renew the contract which expired on 19th December 2017."], ["", "**WORKS AND TRANSPORT SECTOR**", ""], ["1", "Ministry of Works and Transport (MoWT) **Opinion** Unqualified", "\u2022 The Ministry planned to achieve its deliverables through implementation of 30 outputs. I sampled 18 outputs representing 60% of the planned outputs and noted that only 1 output representing 5.56% was fully achieved, 16 outputs (88.88%) were partially achieved, while 1 output (5.56%) was not achieved or implemented at all. \u2022 The MoWT performance indicators and targets in the MPS vary from those in NDPII. For a number of indicators, the targets are much lower or higher than the NDPII targets. Furthermore, a number of interventions that were prioritized in the NDPII by the Ministry have not been budgeted for. \u2022 Funds worth UGX. 1,050,532,082 were irregularly diverted and spent on other activities without seeking necessary approvals. \u2022 There were delays in procurements which negatively impacted on implementation of planned activities. \u2022 Although the Ministry had developed the Monitoring and Evaluation Policy, there were no work plans developed to enable implementation of the policy. Furthermore, the different Directorates had a budget amount allocated for monitoring activities, but the funds were not applied to monitoring activities. \u2022 There is lack of standardized indicators for assessment of performance by the Ministry and as a result, the indicators are stated and described differently in the various reports and planning documents. \u2022 Domestic arrears worth UGX.27,450,457,680 remained unsettled at the close of the financial year. \u2022 At the close of the financial year 2018/19, the Ministry received a court order to pay URC pensioners arrears amounting to UGX. 14.42 billion. These had not been budgeted for and have been accrued in the financial statements. \u2022 Shortcomings were noted in the implementation of the Public Service Standing Orders in relation to staff performance management. The gaps identified include non-completion of staff performance agreements; non-completion of development plans; non-completion of performance appraisals by 459 out of 549 staff; delayed submission of performance appraisal reports; non-completion of quarterly performance reviews for 594 staff; non-completion of"]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 177, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn 27", "SECTOR AND ENTITY  Uganda Sanitation Fund 2 (USF) Opinion Unqualified", "SUMMARY OF KEY FINDINGS \u2022 There was late disbursement of funds to sub-grantees (districts) with quarter one funds for FY 2018/2019 being released in quarter two. \u2022 The Government of Uganda failed to honour its commitment to disburse counterpart funding of USD 2 million. Consequently, the Global Sanitation Fund disbursements to the USF program were suspended as it was conditioned upon the release of the counterpart funds by the Government of Uganda. This affected all the eight (8) newly rolled out districts in addition to 32 old Districts leading to failure to secure funding for quarter 3 and 4 in FY 2018/2019."], "type": "table"}}, {"content": "164", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 177, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["2", "Uganda Railways Corporation (URC) **Opinion** Qualified", "\u2022 URC disclosed a receivable of 69.56bn but reported in the statement of cash flows recognized proceeds of disposal of property, plant and equipment of UGX 69,515,419,176.65, creating an impression that GoU had paid URC. \u2022 Management applied the straight-line method of depreciation as stipulated by the manual. However; different rates were applied contrary to those stipulated in the URC Board manual. As a consequence, there was an understatement of UGX 11,333,914,142 in the year\u2019s depreciation charge. \u2022 The prior year depreciations charge and the variation in the annual depreciation were not properly supported hence limiting the scope of my audit. \u2022 The Corporation reported loans from foreign Governments amounting to UGX 22,067,482,000 in the financial years 2017/18 and 2018/19. However these loans were not supported by loan agreements and the benefit of the below-market rate of interest has not been measured. \u2022 The Corporation held stock worth UGX 7,435,065,506 which belonged to RVR (UGX 5,351,848,888) and URC (UGX 2,083,216,618). However, the adjusted final statements reflected UGX 12,701,656,000 resulting in an overstatement of inventory balance by UGX 5,266,590,494. \u2022 I noted material uncertainty relating to the going concern of an entity where creditors/liabilities were increasing at a hyper rate while revenue reducing and entity incurred huge losses for the past two financial years. \u2022 I noted that out of the budgeted revenue of UGX 125,380,029,000 for the year 2018/2019, UGX 26,875,699,000 was collected representing performance of only 21.4% of the target. \u2022 I established that there were no progress reports to support the performance achieved by the entity. \u2022 I noted that the Corporation revenue budget over the year 2018/2019 was unrealistic for its revenue sources. \u2022 I noted that the annual budget had been prepared and approved by the URC Board. However, URC only prepared work plans for the GoU Institutional support funding. \u2022 I established that some targets set in the annual budget were not in line with the targets reported on. \u2022 I noted that UGX 3,623,350,483,000 was disclosed as value for non-current assets at the close of the financial year under review. However, evidence shows that the non-current assets were last revalued during the financial year 2017/18. \u2022 In the financial year ended 30th June 2019, URC had trade and other payables amounting to UGX 10,379,117,000. However, I noted a 50% increase in payables and that there was no budgetary allocation made towards domestic arrears. \u2022 URC expected rental income of UGX 1,651,674,233 of which, only UGX 853,969,000 was realized resulting in a shortfall of, UGX 797,705,533 (48.3%). Additionally the expected income was not support with tenancy agreements. \u2022 Shortcomings were noted in the implementation of performance management initiatives. The gaps identified include; lack of performance agreements, non-completion of performance plans, late completion of performance appraisals, failure to undertake quarterly performance reviews,"]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 178, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY", "SUMMARY OF KEY FINDINGS performance improvement plans; non-submission of reports on performance agreements, performance appraisals and performance improvement plans to Ministry of Public Service; and non-submission of reports on absenteeism. \u2022 There were delays in valuation of PAPs. \u2022 Out of a total of UGX 39.2 billion appropriated by Parliament to enable the Ministry implement its activities on compensation of PAPs under the SGR project, only UGX.25 billion (64%) was released representing a shortfall of UGX. 14.2 billion (36%). \u2022 Out of the total approved 4,772 PAPs along the districts of Tororo, Iganga, Butaleja, Namutumba and Luuka with land and properties valued at UGX 137 billion, only 3,556 PAPs with claims of UGX 62 billion have been fully compensated."], "type": "table"}}, {"content": "165", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 178, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["3", "Civil Aviation Authority 2018 **Opinion** Unqualified", "\u2022 The debtors\u2019 balance in the financial statements of the Authority includes UGX 23,947,552,341.95 which relates to the rehabilitation of Nakasongola Airport by the Authority on behalf of Government (Ministry of Defence). However, there is no evidence that Government had made a commitment to reimburse the amount. \u2022 There are thirty (30) MDAs owing the Authority a total of UGX.46,095,507,627 in unremitted rental fees representing 90% of the total debtors position. UCAA did not have tenancy agreements with some of the government bodies and did not have a recovery plan for the Government debtors. \u2022 The Authority submitted the financial statements for the year ended 30th June 2018 on 20th December 2019 which was 415 days beyond the stipulated deadline of 31st October 2018. \u2022 There were a number of contraventions to the Government Concession Loan Agreement between GoU and EXIM Bank of China for the upgrading and expansion of the Entebbe International Airport. These include: failure to open the Repayment Reserve Account; failure to bank revenue collections on Escrow accounts; failure to comply with the budgeting requirements for funds on Escrow accounts; and delays in project implementation leading to increase in commitment fees. \u2022 Shortcomings were observed in the certification and licensing of local aerodromes under UCAA jurisdiction such as: aerodromes registered by CAA but not issued with construction permits; aerodromes operating with expired licenses; and aerodromes operating without approved aerodrome manuals and environmental impact assessment reports. \u2022 The authority did not have any concession agreements with its jet fuel suppliers as required. Further, the price of USD 5 charged for each gallon had never been revised since inception of throughput fuel supplies (over 10 years ago). \u2022 There were weaknesses observed in governance and staffing such as: the over-stay of board members and non-specification of their term limits; staffing gap of 20% and overstaffing of certain directorates."], ["4", "Civil Aviation Authority 2019 **Opinion** Qualified", "\u2022 The Authority yielded a surplus of UGX 14.061Bn representing 6% in excess of the approved budget, indicating a possibility of setting unrealistically low targets for revenue collection. \u2022 The authority planned to achieve its deliverables through implementation of 43 outputs. I sampled 18 outputs representing 42% of the total budget and noted that only one (1) output was fully achieved; three (3) outputs were partially achieved while fourteen (14) outputs representing 78% were not implemented at all. There were delays in the procurement process ranging from 12 months to almost 4 years."], ["5", "Uganda National Roads Authority (UNRA) **Opinion** Qualified", "\u2022 Expenditure totalling to UGX 341.2Bn was diverted without authority from planned activities to finance other activities. \u2022 The entity made payments for Un-budgeted for domestic arrears amounting to UGX.224.5Bn. \u2022 There was a shortfall in releases amounting to UGX.556.61Bn representing 17.8%. Further, the entity remained with unspent balance of UGX.382.999Bn representing an absorption level of 85.12%. \u2022 I sampled 18 out-puts representing 32% of the total outputs and noted that 2 outputs/activities representing 11% were fully implemented; 14 output/activity representing 78% was partially implemented while 2 output/activity representing 11% was not implemented at all. \u2022 Delayed compensation for acquisition of land for right of way affects implementation of approved projects. \u2022 Domestic arrears increased (by 110.4% from UGX UGX.224,723,792,116 in the previous year to UGX.472,844,113,257 in the year under review. The arrears remained unsettled at the close of the year."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 179, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY", "SUMMARY OF KEY FINDINGS non-completion of performance improvement plans, lack of mechanism to monitor staff attendance and lack of a client\u2019s charter. \u2022 I noted various weaknesses in the performance of RVR, leading to the termination of the concession. However, by the time of termination, URC was demanding a total of $ 15,437,460 as stated in the approved budget for the financial year 2018/2019."], "type": "table"}}, {"content": [["3", "Civil Aviation Authority 2018 **Opinion** Unqualified", "\u2022 The debtors\u2019 balance in the financial statements of the Authority includes UGX 23,947,552,341.95 which relates to the rehabilitation of Nakasongola Airport by the Authority on behalf of Government (Ministry of Defence). However, there is no evidence that Government had made a commitment to reimburse the amount. \u2022 There are thirty (30) MDAs owing the Authority a total of UGX.46,095,507,627 in unremitted rental fees representing 90% of the total debtors position. UCAA did not have tenancy agreements with some of the government bodies and did not have a recovery plan for the Government debtors. \u2022 The Authority submitted the financial statements for the year ended 30th June 2018 on 20th December 2019 which was 415 days beyond the stipulated deadline of 31st October 2018. \u2022 There were a number of contraventions to the Government Concession Loan Agreement between GoU and EXIM Bank of China for the upgrading and expansion of the Entebbe International Airport. These include: failure to open the Repayment Reserve Account; failure to bank revenue collections on Escrow accounts; failure to comply with the budgeting requirements for funds on Escrow accounts; and delays in project implementation leading to increase in commitment fees. \u2022 Shortcomings were observed in the certification and licensing of local aerodromes under UCAA jurisdiction such as: aerodromes registered by CAA but not issued with construction permits; aerodromes operating with expired licenses; and aerodromes operating without approved aerodrome manuals and environmental impact assessment reports. \u2022 The authority did not have any concession agreements with its jet fuel suppliers as required. Further, the price of USD 5 charged for each gallon had never been revised since inception of throughput fuel supplies (over 10 years ago). \u2022 There were weaknesses observed in governance and staffing such as: the over-stay of board members and non-specification of their term limits; staffing gap of 20% and overstaffing of certain directorates."], ["4", "Civil Aviation Authority 2019 **Opinion** Qualified", "\u2022 The Authority yielded a surplus of UGX 14.061Bn representing 6% in excess of the approved budget, indicating a possibility of setting unrealistically low targets for revenue collection. \u2022 The authority planned to achieve its deliverables through implementation of 43 outputs. I sampled 18 outputs representing 42% of the total budget and noted that only one (1) output was fully achieved; three (3) outputs were partially achieved while fourteen (14) outputs representing 78% were not implemented at all. There were delays in the procurement process ranging from 12 months to almost 4 years."], ["5", "Uganda National Roads Authority (UNRA) **Opinion** Qualified", "\u2022 Expenditure totalling to UGX 341.2Bn was diverted without authority from planned activities to finance other activities. \u2022 The entity made payments for Un-budgeted for domestic arrears amounting to UGX.224.5Bn. \u2022 There was a shortfall in releases amounting to UGX.556.61Bn representing 17.8%. Further, the entity remained with unspent balance of UGX.382.999Bn representing an absorption level of 85.12%. \u2022 I sampled 18 out-puts representing 32% of the total outputs and noted that 2 outputs/activities representing 11% were fully implemented; 14 output/activity representing 78% was partially implemented while 2 output/activity representing 11% was not implemented at all. \u2022 Delayed compensation for acquisition of land for right of way affects implementation of approved projects. \u2022 Domestic arrears increased (by 110.4% from UGX UGX.224,723,792,116 in the previous year to UGX.472,844,113,257 in the year under review. The arrears remained unsettled at the close of the year."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 179, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY", "SUMMARY OF KEY FINDINGS non-completion of performance improvement plans, lack of mechanism to monitor staff attendance and lack of a client\u2019s charter. \u2022 I noted various weaknesses in the performance of RVR, leading to the termination of the concession. However, by the time of termination, URC was demanding a total of $ 15,437,460 as stated in the approved budget for the financial year 2018/2019."], "type": "table"}}, {"content": "166", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 179, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["6", "North Eastern Road Corridor Asset Management Project (NERAMP) **Opinion** Unqualified", "\u2022 No material issues to be reported on."], ["7", "Busega-Mpigi Road **Opinion** Unqualified", "\u2022 During the financial year ended June 30, 2019, no disbursements were made towards the Project activities. Cumulative disbursements represent 0.69% of the Project approved loan amount of UA 42,500,000. \u2022 Delayed project implementation which has led to continued accumulation of both Commitment and Service Charges that amounted to UGX 2,428,651,381 and UGX 4,189,238,814 respectively."], ["8", "Road Sector Support Project V **Opinion** Unqualified", "\u2022 Delays were observed in the implementation of the Project. The cumulative physical progress of the Rukungiri\u2013Kihihi road as of end of June 2019 was 0.87% against a plan of 5.36% while that of the Bumbobi\u2013Lwakhakha road was 55.51% against a plan of 63.32%. \u2022 RSSP-5 Project Surplus funds worth UGX 2,138,494,119 were utilized on other UNRA projects without authorization."], ["9", "Uganda Road Fund (URF) **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX 1,550,818,598 representing an under release of 0.3% of the budget. Further, the URF remained with unspent balance of UGX 9,505,000 representing an absorption level of 99.9%. \u2022 URF planned to implement and achieve a number of outputs. However, most of the major outputs relating to road maintenance that were reported as achieved were not supported with adequate evidence. I further observed that some of the planned activities were not achieved, for example; out of the 10 fixed and 10 mobile weigh bridges that were to be operated, only 8 fixed and 4 mobile weigh bridges were operated."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 180, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY", "SUMMARY OF KEY FINDINGS \u2022 I noted that there was a decrease in contingent liabilities of UGX 129,521,195,012 from UGX 430,013,722,276 reported in the previous year 2017/2018 to UGX 300,492,527,264 reported in 2018/2019, this amount is still substantial. \u2022 Receivables due to UNRA as reported in the statement of Financial Position amounted to UGX 566,847,145,236. \u2022 UNRA made incurred nugatory expenditure amounting to UGX 8,099,940,759 and USD 880,448.97 that arose out of penalties for the court cases and interest on delayed payments of advances and IPCs invoices from various contractors. \u2022 Engineering Audit of a selected sample of Road Development, Bridge, Rehabilitation and maintenance Projects revealed issues such as inadequate designs and planning, underestimation of quantities, inclusion of unnecessary items in contracts, delayed handover of the sites to the contractor, gaps in contract administration, avoidable interest on advance payment, delayed payments to the contractors, improper choice of contract methodology, increase in project costs due to payments in foreign currencies among others \u2022 I noted delays in effecting payments for certified works with payments being made after 56 days, while some stretching to over 6 months. \u2022 Shortcomings were noted in the implementation of the provisions in the circular standing instructions on staff performance management. The gaps identified include Performance Appraisals and lack of mechanism to monitor staff attendance. \u2022 I reviewed land compensation activities on a sample of roads and noted issues such as failure to publish legal notification and gazette of land for public use, failure to set a cut-off date on Kampala Northern bypass project phase 2, delays in payment for valued land and properties, payment of PAPs (at non-reviewed rates ) and delays in transfer of titles to Government \u2022 In noted delays in delivery of procurement supplies worth UGX 24,018,395,488 occasioned by the lengthy processes of opening up and amending letters of credit with Bank of Uganda."], "type": "table"}}, {"content": "167", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 180, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["", "**LANDS SECTOR**", ""], ["1", "Ministry Lands, Housing and Urban Development **Opinion** Unqualified", "\u2022 The Ministry paid UGX.11,210,372,950 as compensation for land earmarked for Amuru Sugar Project. The clauses in the deed of settlement require harmonisation to clarify whether it was acquisition of land or compensation. \u2022 I sampled 40 out-puts worth UGX.39,920,085,800 representing 67% of the total budget for review and noted that of the quantified outputs/activities assessed, 16 outputs/activities representing 40% were fully Implemented and 10 outputs/activities representing 25% were partially implemented. Further, 14 outputs/ activities representing 35% contained some activities that were quantified and others not quantified. \u2022 The ministry had a total of 85 claimants, with a debt of UGX.30,885,958,764 as at 30th June 2018\\. After revaluation of earlier settled claims, total claims in the year amounted to a sum of UGX.53,447,591,764, out of which only 7 persons were paid a total of UGX.22,437,135,000 during the year leaving a balance of UGX 31,010,456,764. \u2022 The Ministry had several disciplinary cases that have taken longer than the required period to be resolved. I noted that 4 cases took two years to be resolved leading to dismissal of the officers concerned."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 181, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY", "SUMMARY OF KEY FINDINGS \u2022 Funds worth UGX 320,570,436 were charged on items that do not reflect the nature of the expenditure as defined under Government Chart of Accounts without seeking the necessary approval. \u2022 I noted cases where the information reported in the annual performance reports by the Fund Management was either incomplete or inconsistent with the disclosures made in the financial statements. \u2022 The Fund did not prepare a summary of its ongoing court cases that could potentially result in contingent liabilities. \u2022 Corporate governance issues that negatively affected the operations of the URF were observed. These included: inharmonious relationship between the Board Chairperson and the Executive Director; the Audit Committee did not sit for the whole year; existence of a hostile environment and disharmony amongst Board members; inharmonious relationship between the Board and staff; failure to appraise the Board as an organ, its members and the various committees and; lack of regulations for operationalization of the URF Act. \u2022 Allocation of funds to other organizations (agencies) to cater for road maintenance activities without following the criteria specified in the URF Act. \u2022 Out of UGX 35,620,000,000 requested for by the District/ Municipal Councils as emergency funding for road maintenance, only UGX 3,565,833,979 was remitted to the various districts and urban councils. It was also observed that the releases are not timely. \u2022 With regard to emergency/special interventions, the Board is involved only in the approval of the annual budget of URF but is not involved in the approval process of the monthly/quarterly allocations of emergency funds to local Governments. \u2022 URF does not have an updated Public road network database that would form the basis of all road fund activities across the country. \u2022 There is inadequate monitoring and evaluation of emergency fund activities by URF Management. The monitoring by the Councils and District Committees was also observed to be inadequate. \u2022 Shortcomings were noted in the implementation of the URF Human Resource Policy 2018 in relation to staff performance management. The gaps identified include non-completion of the performance improvement plans and lack of a rewards and sanction committee. \u2022 URF and Public Procurement and Disposal of Public Assets Authority (PPDA) jointly entered into a contract for the construction of PPDA-URF office building and the parties agreed to contribute funds in equal proportion to finance the project. However, this was not the case as URF had contributed only UGX 6,951,244,883 while PPDA had contributed a total of UGX 11,399,139,233 by 08/10/2019."], "type": "table"}}, {"content": "168", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 181, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["2", "Albertine Region Sustainable Project (ARSDP) - Lands **Opinion** Unqualified", "\u2022 No material issue reported."], ["3", "Uganda Land Commission \u2013 ULC (FY 17/18) **Opinion** Qualified", "\u2022 The payables position remained at UGX.7,162,227,073 in both the current and previous years implying that no settlement of the commitments was made during the year. \u2022 The outstanding claims for land compensation stood at UGX.144,890,491,798. However, this was not reflected in the financial statements as payables or in the statement of outstanding commitments. \u2022 Expenditure analysis revealed that a total of UGX 397,979,311 was charged on items which do not reflect the nature of the expenditure. \u2022 Audit noted that whereas MoFPED had opened the Land Fund Account, it was found dormant; the compensation funds are still budgeted for and received under the development component of \u201csupport to Uganda Land Commission\u201d on the ULC Budget. \u2022 A review of the Commission performance for the year revealed that the finalization of the ULC bill was delayed despite issuance of the certificate of implication by MOFPED on 10th October 2018. \u2022 The Commission issued new leases over existing leaseholds resulting in lawsuits and subsequent awards of over UGX.26,012,937,524 by courts which was much higher than the lease premiums paid to the Commission of UGX. 1,064,367,000. \u2022 The Commission liabilities accumulated to UGX 14,812,935,000 during the financial year 2017/18 without committed funds. \u2022 The Commission does not have a complete land inventory for all its land and properties that are occupied by tenants, vacant, acquired under compensation (but not yet re-distributed to the bona fide occupants), and acquired and owned by other government institutions and missions abroad."], ["4", "Uganda Land Commission \u2013 ULC (FY 18/19) **Opinion** Qualified", "\u2022 Out of the approved budget of UGX.43,457,802,009, only UGX.42,673,802,021 was warranted/released resulting into a budget shortfall of UGX.783,999,988 representing 2.5%. \u2022 The payables balance was adjusted by UGX.187,522,407,261, from UGX.7,162,227,073 as at 30th June, 2018 to UGX.194,684,634,334, as indicated in the statement of changes in equity. However, the relevant supporting journals and documents were not availed for review, rendering the genuineness of the liabilities doubtful. \u2022 ULC allocated land on block LRV 4407 Folio 12, Plot 5 measuring 1.528 hectares in Entebbe Municipality, to Masindi Hotel Limited vide minute 40/2009(a)(37) which paid a premium of UGX.101,667,000. This was done without prior verification and without consent (no objection) from the user of the land (Fisheries Training Institute) and there was no evidence of physical inspection of the same land by the Commissioners. This resulted into a dispute, and Masindi Hotel Limited was paid damages totalling to UGX 1,965,520,000. \u2022 A total of UGX.708,096,021 was mischarged on items which do not reflect the nature of the expenditure of the Commission. \u2022 Payments worth UGX. 9,961,368,946 lacked supporting documents in form of offer letters, acceptance letters, valuation reports, survey reports; copies of titles, survey reports, invoices, delivery notes, goods received notes and local purchasing orders."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 182, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY", "SUMMARY OF KEY FINDINGS \u2022 The ministry has only filled 512 positions out of the 839 leaving 327 positions vacant. Out of the 327 vacancies, 160 vacancies are for senior positions. \u2022 Shortcomings were noted in the implementation of the provisions in the circular standing instructions on staff performance management. The gaps identified include non-completion of Performance Agreements, no quarterly reviews undertaken, no performance improvement plans prepared, non-submission of reports on Performance Agreements, Performance Appraisals, Performance Improvement Plans to MoPS and lack of mechanism to monitor staff attendance."], "type": "table"}}, {"content": [["2", "Albertine Region Sustainable Project (ARSDP) - Lands **Opinion** Unqualified", "\u2022 No material issue reported."], ["3", "Uganda Land Commission \u2013 ULC (FY 17/18) **Opinion** Qualified", "\u2022 The payables position remained at UGX.7,162,227,073 in both the current and previous years implying that no settlement of the commitments was made during the year. \u2022 The outstanding claims for land compensation stood at UGX.144,890,491,798. However, this was not reflected in the financial statements as payables or in the statement of outstanding commitments. \u2022 Expenditure analysis revealed that a total of UGX 397,979,311 was charged on items which do not reflect the nature of the expenditure. \u2022 Audit noted that whereas MoFPED had opened the Land Fund Account, it was found dormant; the compensation funds are still budgeted for and received under the development component of \u201csupport to Uganda Land Commission\u201d on the ULC Budget. \u2022 A review of the Commission performance for the year revealed that the finalization of the ULC bill was delayed despite issuance of the certificate of implication by MOFPED on 10th October 2018. \u2022 The Commission issued new leases over existing leaseholds resulting in lawsuits and subsequent awards of over UGX.26,012,937,524 by courts which was much higher than the lease premiums paid to the Commission of UGX. 1,064,367,000. \u2022 The Commission liabilities accumulated to UGX 14,812,935,000 during the financial year 2017/18 without committed funds. \u2022 The Commission does not have a complete land inventory for all its land and properties that are occupied by tenants, vacant, acquired under compensation (but not yet re-distributed to the bona fide occupants), and acquired and owned by other government institutions and missions abroad."], ["4", "Uganda Land Commission \u2013 ULC (FY 18/19) **Opinion** Qualified", "\u2022 Out of the approved budget of UGX.43,457,802,009, only UGX.42,673,802,021 was warranted/released resulting into a budget shortfall of UGX.783,999,988 representing 2.5%. \u2022 The payables balance was adjusted by UGX.187,522,407,261, from UGX.7,162,227,073 as at 30th June, 2018 to UGX.194,684,634,334, as indicated in the statement of changes in equity. However, the relevant supporting journals and documents were not availed for review, rendering the genuineness of the liabilities doubtful. \u2022 ULC allocated land on block LRV 4407 Folio 12, Plot 5 measuring 1.528 hectares in Entebbe Municipality, to Masindi Hotel Limited vide minute 40/2009(a)(37) which paid a premium of UGX.101,667,000. This was done without prior verification and without consent (no objection) from the user of the land (Fisheries Training Institute) and there was no evidence of physical inspection of the same land by the Commissioners. This resulted into a dispute, and Masindi Hotel Limited was paid damages totalling to UGX 1,965,520,000. \u2022 A total of UGX.708,096,021 was mischarged on items which do not reflect the nature of the expenditure of the Commission. \u2022 Payments worth UGX. 9,961,368,946 lacked supporting documents in form of offer letters, acceptance letters, valuation reports, survey reports; copies of titles, survey reports, invoices, delivery notes, goods received notes and local purchasing orders."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 182, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY", "SUMMARY OF KEY FINDINGS \u2022 The ministry has only filled 512 positions out of the 839 leaving 327 positions vacant. Out of the 327 vacancies, 160 vacancies are for senior positions. \u2022 Shortcomings were noted in the implementation of the provisions in the circular standing instructions on staff performance management. The gaps identified include non-completion of Performance Agreements, no quarterly reviews undertaken, no performance improvement plans prepared, non-submission of reports on Performance Agreements, Performance Appraisals, Performance Improvement Plans to MoPS and lack of mechanism to monitor staff attendance."], "type": "table"}}, {"content": "169", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 182, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["5", "Uganda Support to Municipal Infrastructure Development Programme (USMID) \u2013 1 **Opinion** Unqualified", "\u2022 It was noted that the project fell short of some measurable indicators as targeted outputs for infrastructure completed by participating municipalities, Roads, street lights and drainage rehabilitated and Garbage collected and disposed (tonnes) were not fully achieved \u2022 I noted that some MLGs did not meet the desired Disbursement Linked Indicator as one entity did not fully adhere to eligible expenditures requirement for the use of funds and Four (4) MLGs did not meet some of the minimum conditions."], ["6", "Uganda Support to Municipal Infrastructure Development Programme \u2013 Additional Funding (USMID \u2013 AF) **Opinion** Unqualified", "\u2022 Out of the approved budget of UGX 239,525,034,000 (US$ 64,100,000), a sum of UGX 207,238,720,570 (US$ 55,459,764.5) was realized resulting into a shortfall of UGX.32, 286,313,430 (US$8,640,235.5) representing 13.5 %. \u2022 Out of the receipts of UGX 207,238,720,570 (US$55,459,764.5), a sum of UGX 3,759,622,196 (US$ 1,006,123.5) was spent indicating an absorption rate of only 1.8%. However, UGX 203,479,098,374 (US$ 54,453,640.9) was not absorbed because of late receipt of funds which was on 28th June, 2019, two days to the closure of the financial year. \u2022 The effective date for the commencement of the Project was 1st October, 2018 and it is expected to close on 31st December, 2023. However, the project was declared effective on 11th April, 2019, hence a delay of nearly six months."], ["", "**ACCOUNTABILIT Y SECTOR**", ""]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 183, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY", "SUMMARY OF KEY FINDINGS \u2022 The Commission does not have a land inventory 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."], "type": "table"}}, {"content": [["5", "Uganda Support to Municipal Infrastructure Development Programme (USMID) \u2013 1 **Opinion** Unqualified", "\u2022 It was noted that the project fell short of some measurable indicators as targeted outputs for infrastructure completed by participating municipalities, Roads, street lights and drainage rehabilitated and Garbage collected and disposed (tonnes) were not fully achieved \u2022 I noted that some MLGs did not meet the desired Disbursement Linked Indicator as one entity did not fully adhere to eligible expenditures requirement for the use of funds and Four (4) MLGs did not meet some of the minimum conditions."], ["6", "Uganda Support to Municipal Infrastructure Development Programme \u2013 Additional Funding (USMID \u2013 AF) **Opinion** Unqualified", "\u2022 Out of the approved budget of UGX 239,525,034,000 (US$ 64,100,000), a sum of UGX 207,238,720,570 (US$ 55,459,764.5) was realized resulting into a shortfall of UGX.32, 286,313,430 (US$8,640,235.5) representing 13.5 %. \u2022 Out of the receipts of UGX 207,238,720,570 (US$55,459,764.5), a sum of UGX 3,759,622,196 (US$ 1,006,123.5) was spent indicating an absorption rate of only 1.8%. However, UGX 203,479,098,374 (US$ 54,453,640.9) was not absorbed because of late receipt of funds which was on 28th June, 2019, two days to the closure of the financial year. \u2022 The effective date for the commencement of the Project was 1st October, 2018 and it is expected to close on 31st December, 2023. However, the project was declared effective on 11th April, 2019, hence a delay of nearly six months."], ["", "**ACCOUNTABILIT Y SECTOR**", ""], ["1", "Ministry of Finance, Planning and Economic Development (MoFPED) **Opinion** Unqualified", "\u2022 In 2014/15, a private company incurred UGX.556,611,600 in demurrage charges in respect of raw materials warehoused at a customs bond because of government\u2019s failure to perform its timely obligation. The raw materials were housed pending processing of taxes under the government of Uganda intervention in the textile sector for financial year 2014/15. The payment effected by the company was later refunded by Ministry of Finance in the financial year ended June 2019. \u2022 A review of the statement of revenue collected during the year revealed that management did not budget for the NTR collections for the year despite the entity collecting a sum of UGX.13,661,442,500. The Ministry should have based on the prior year collections that related to recurring collections to budget for the NTR. \u2022 I noted that, contrary to section 45 of the PFMA, funds to a tune of UGX.21,009,555,095 that were appropriated for subventions were not transferred to the subventions but rather requisitions were being sent to the Ministry for processing and Expenditure. The subventions could not easily track expenditure and were thus unable to prepare financial statements as required by their respective Acts. \u2022 The Accounting Officer did not make sufficient budget provisions towards the settlement of domestic arrears despite the accumulation of a total of UGX.200,749,583,393 in un-paid obligations. The amount provided in the budget for 2018/19 was only UGX.16 bn which is 8% of the reported arrears for the previous financial year. Notably, the ministry owes UGX. 376,863,312,911 in tax refunds and incentives due to the Uganda Revenue Authority. \u2022 By the close of the financial year, the unsettled obligation in relation to subscriptions to international organisations stood at UGX.63,231,892,784 and some were dating as far back as financial year 2014/15. \u2022 I established that the Ministry recognized in its financial statements outstanding obligation to pay tax incentives worth UGX.368,422,413,913 on behalf of selected tax payers. The reported figure includes penal interest of UGX.69,162,909,731 due to delayed payment. This is wasteful."], ["2", "National Population Council", "\u2022 Despite the Council receiving more than 100% of its budget, a number of the planned activities were not fully implemented during the year these included; establishing a functional population"]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 183, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY", "SUMMARY OF KEY FINDINGS \u2022 The Commission does not have a land inventory 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."], "type": "table"}}, {"content": "170", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 183, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["3", "Project for Financial Inclusion in Rural Areas (PROFIRA) **Opinion** Unqualified", "\u2022 Field visits revealed that four mature Community Saving and Credit Groups (CSCGs) from Northern Uganda were still not linked to formal Financial Institutions for credit and savings services, implying that funds are still kept at home. This exposes the funds to theft and denies the groups the much needed financial services ranging from saving, credit and financial advice. Interaction with some CSCGs revealed that they are not yet linked to financial services for fear of having their savings taxed by Government. \u2022 It was observed that contrary to the terms of the Funding Agreement, loan funds worth UGX.29,494,239 were used to pay for taxes without approval from the funder. This contravenes the project agreement terms and may attract penalties from the funder. \u2022 Management explained that the transactions related to payments made to suppliers between 14th and 30th June 2019 and preparations to have these moneys refunded were underway."], ["4", "The Third Financial Management and Accountability Programme (FINMAP III) **Opinion** Unqualified", "\u2022 The statement of Basket Holding and Operation Accounts is prepared to assist the Programme in complying with the MoU requirements and the accounting policies specified under note 1 which describes the basis of accounting. As a result, the financial statements may not be suitable for another purpose."], ["5", "Uganda Revenue Authority (URA) \u2013 Revenue **Opinion** Unqualified", "\u2022 I noted that during the year under audit, URA did not collect Gaming and Pool Betting Taxes and the related Withholding taxes amounting to UGX.57,566,203,552 comprised of UGX.4,175,154,095 as Gaming Tax from 20% of total sales less total pay-outs and UGX.53,375,795,109 being 15% Withholding Taxes from payments to winners. \u2022 URA did not collect taxes in form of VAT and corporation tax from Government suppliers to the tune of UGX.34bn. Some suppliers received VAT from Government and never remitted it while others under declared their sales to URA. \u2022 Contrary to the law, UGX.2,085,861,790,860 was refunded to taxpayers who had other outstanding tax obligations. This not only contravenes the law but also denies the government the much-needed revenue. \u2022 A review and an analysis of the High-Risk Goods Customs Report revealed that high-risk goods worth UGX.73,365,043,278.70 were not tracked until their final destination as there was no evidence in the form of serial numbers for the e-seals used to track them. \u2022 Under the circumstances, there is a risk that some of the goods could have been dumped into the market without payment of taxes. \u2022 A sum of UGX.473,830,810,372 was realized from tax heads which had no budget figures. \u2022 UGX.479,636,211,818 received by BOU from Government Ministries, Departments and Agencies and Local Governments on behalf of URA as Taxes remained un-receipted due to failure to identify the tax head to which it belongs."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 184, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY Opinion Unqualified", "SUMMARY OF KEY FINDINGS Management Information System (MIS) for the Council; conducting consultative meetings of Stakeholders on the Population MIS; Disseminate and popularize the revised NPP among others. \u2022 Contrary to the National Planning Authority (NPA) guidance on alignment of the entity strategic plans with the National Development Plan III, the council\u2019s strategic plan runs one year ahead of NDPIII. \u2022 Contrary to Section 7 (3) (b) of the NPC Act, 2014, the Council had delayed in the operationalization of the National Population Databank, by close of audit only a prototype had been developed. \u2022 Out of 86 (Eight Six) approved positions by the Ministry of Public Service, only Fifty-Nine (59) positions are filled leaving 27 (Twenty seven) positions vacant greatly affecting the performance and overall achievement of the Council\u2019s goals and objectives. \u2022 Contrary to Section 27 of the Public Service Standing Orders the Council is yet to develop and operationalize a client\u2019s charter as required by the Standing Orders."], "type": "table"}}, {"content": [["3", "Project for Financial Inclusion in Rural Areas (PROFIRA) **Opinion** Unqualified", "\u2022 Field visits revealed that four mature Community Saving and Credit Groups (CSCGs) from Northern Uganda were still not linked to formal Financial Institutions for credit and savings services, implying that funds are still kept at home. This exposes the funds to theft and denies the groups the much needed financial services ranging from saving, credit and financial advice. Interaction with some CSCGs revealed that they are not yet linked to financial services for fear of having their savings taxed by Government. \u2022 It was observed that contrary to the terms of the Funding Agreement, loan funds worth UGX.29,494,239 were used to pay for taxes without approval from the funder. This contravenes the project agreement terms and may attract penalties from the funder. \u2022 Management explained that the transactions related to payments made to suppliers between 14th and 30th June 2019 and preparations to have these moneys refunded were underway."], ["4", "The Third Financial Management and Accountability Programme (FINMAP III) **Opinion** Unqualified", "\u2022 The statement of Basket Holding and Operation Accounts is prepared to assist the Programme in complying with the MoU requirements and the accounting policies specified under note 1 which describes the basis of accounting. As a result, the financial statements may not be suitable for another purpose."], ["5", "Uganda Revenue Authority (URA) \u2013 Revenue **Opinion** Unqualified", "\u2022 I noted that during the year under audit, URA did not collect Gaming and Pool Betting Taxes and the related Withholding taxes amounting to UGX.57,566,203,552 comprised of UGX.4,175,154,095 as Gaming Tax from 20% of total sales less total pay-outs and UGX.53,375,795,109 being 15% Withholding Taxes from payments to winners. \u2022 URA did not collect taxes in form of VAT and corporation tax from Government suppliers to the tune of UGX.34bn. Some suppliers received VAT from Government and never remitted it while others under declared their sales to URA. \u2022 Contrary to the law, UGX.2,085,861,790,860 was refunded to taxpayers who had other outstanding tax obligations. This not only contravenes the law but also denies the government the much-needed revenue. \u2022 A review and an analysis of the High-Risk Goods Customs Report revealed that high-risk goods worth UGX.73,365,043,278.70 were not tracked until their final destination as there was no evidence in the form of serial numbers for the e-seals used to track them. \u2022 Under the circumstances, there is a risk that some of the goods could have been dumped into the market without payment of taxes. \u2022 A sum of UGX.473,830,810,372 was realized from tax heads which had no budget figures. \u2022 UGX.479,636,211,818 received by BOU from Government Ministries, Departments and Agencies and Local Governments on behalf of URA as Taxes remained un-receipted due to failure to identify the tax head to which it belongs."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 184, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY Opinion Unqualified", "SUMMARY OF KEY FINDINGS Management Information System (MIS) for the Council; conducting consultative meetings of Stakeholders on the Population MIS; Disseminate and popularize the revised NPP among others. \u2022 Contrary to the National Planning Authority (NPA) guidance on alignment of the entity strategic plans with the National Development Plan III, the council\u2019s strategic plan runs one year ahead of NDPIII. \u2022 Contrary to Section 7 (3) (b) of the NPC Act, 2014, the Council had delayed in the operationalization of the National Population Databank, by close of audit only a prototype had been developed. \u2022 Out of 86 (Eight Six) approved positions by the Ministry of Public Service, only Fifty-Nine (59) positions are filled leaving 27 (Twenty seven) positions vacant greatly affecting the performance and overall achievement of the Council\u2019s goals and objectives. \u2022 Contrary to Section 27 of the Public Service Standing Orders the Council is yet to develop and operationalize a client\u2019s charter as required by the Standing Orders."], "type": "table"}}, {"content": "171", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 184, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["6", "Uganda Revenue Authority (URA) \u2013 Corporate Services **Opinion** Unqualified", "\u2022 URA irregularly used the direct procurement method to procure furniture for the new building at UGX.4,461,861,429. The same procurement had earlier been competitively procured at UGX.2,271,537,719; however, change of method led to price escalation by 70%. In addition, URA irregularly used the direct procurement method for the procurement of a Digital Stamps-IT Solution at a price of UGX.2,698,888,960. \u2022 Contrary to Section 11 of PFMA 2015, URA made cash withdrawals to the tune of UGX.15,859,047,868 to pay air tickets, car hire, staff salary advances and allowances among others all of which can be avoided. This issue was raised in the previous years\u2019 audit reports and management pledged to curb cash payments; it was, however, noted that cash withdrawals have instead increased from UGX.4,576,395,689 in 2016/17 to UGX.12,985,802,703 in 2017/2018 and currently at UGX.15,859,047,868. \u2022 I noted that although UGX.1.2 billion was provided to cater for legal fees and expenses in the approved budget FY 2018/19, UGX.1,826,030,667 was spent on legal fees and expenses without authority leading to an over-expenditure of UGX.626,030,667."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 185, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY", "SUMMARY OF KEY FINDINGS \u2022 URA does not seek information from a number of Government agencies yet it would be vital for tax assessment and collection. On the other hand, some Government agencies are also not cooperating with URA to foster the collection of revenue. The continued operation in silos is costing the nation a lot in form of taxes lost. \u2022 Several taxpayers with VAT offsets totalling to UGX.816,112,710,512 were not subjected to a VAT monthly return verification process by the respective URA officers to establish why they are declaring more input tax (purchases) than output tax (sales) for the period under review. \u2022 A review of Turnover Vs VAT sales declaration report revealed that 395 taxpayers had their total sales as per the Income-tax returns (UGX.550,828,894,035) higher than the total sales in their VAT tax return (UGX.24,512,744,422) resulting into an under declaration of sales by UGX.375,747,916,326. There was no evidence to show that URA officers examined the returns and that the variances were reconciled. \u2022 A review of financial statements, revealed an increase in Customs and Domestic taxes arrears for the last seven years from UGX.228,883,764,700 in 2012/2013 to UGX.4,502,668,531,544 in the financial year 2018/2019. Customs tax arrears registered a growth of 148% while Domestic tax arrears registered a growth of 2,233% from UGX.188,680,811,140 during 2012/2013 to UGX.4,403,109,345,590 in 2018/2019. \u2022 Government has accumulated tax arrears from as far back as 2005 and whereas the principal tax is UGX.569,437,538,931 this has accrued interest to the tune of UGX.293,801,215,737. I noted that since committing to settle the taxes, the government has not paid. \u2022 URA Management had planned to grow the rental taxpayer register to at least 4,000 taxpayers but only 2,758 (68%) taxpayers have been added on to the Rental Register in the year under review. In addition, URA did not examine Landlord declarations (returns) on 970 taxpayers for accuracy and completeness to curb gross under-declaration of rental income. \u2022 During the year ended 30th June 2019, the URA compliance Improvement plan had targeted to carry out audits on 527 taxpayers. It was however noted that only 73 audits were undertaken representing 14% performance level. The Audits managed to raise assessments worth UGX.158,814,818,470 with cash collections of UGX.15,241,911,313 representing 10% of the amount assessed. The Audits were deferred because of staff resource constraints. \u2022 A review of the refunds portfolio indicated that URA had a balance brought forward of tax refund claims worth UGX.475,945,431,903 and new cases in the FY 18/19 totalled to UGX.704,568,896,011 making a total tax refund claims in the FY of UGX.1,180,514,327,914. However, a provision of UGX.338bn was made against a claim of UGX.1.2 trillion pointing to underfunding. \u2022 URA invested heavily in the E-tax system with a major focus of easing tax administration and having accurate tax figures for all taxpayers. Review of a sample of corporation tax ledgers revealed wide variances with figures reported in the accounts implying the tax ledger are inaccurate."], "type": "table"}}, {"content": "172", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 185, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["7", "Treasury Operations **Opinion** Unqualified", "\u2022 Review of the receivables revealed that Treasury Operations had accumulated receivables to a tune of UGX.6,883,829,522,145. Included in the receivables is UGX.10,437,202,971 that was lent by government to private enterprises for which no recovery has been effected since 2013. \u2022 Included in the reported investments is UGX.2,100,000,000 relating to the government\u2019s investment in J and M Airport Hotel. There was however no share certificate in place to support the shareholding of government in the said company. It was also established that the property in issue had been purchased by the National Social Security Fund for which no sale proceeds were remitted to the consolidated fund on account of GOU\u2019s shareholding. \u2022 Although government owns 25% shareholding in this company, audit could not confirm the value of the shares as at the close of the year as these were not disclosed in the financial statements. There is also no evidence of oversight and supervision of the company by the Ministry of Finance, Planning and Economic Development. Under the circumstances, there is a risk that Government could be losing revenue from these investments. \u2022 The Government of South Sudan (GOSS) and the Government of Uganda (GOU) on 22nd December 2016 entered into a Bilateral agreement in which GOU agreed to pay USD.41,623,559.95 to Ugandan Traders within 12 months and seek reimbursement from the GOSS. Following the agreement, the GOU paid a total of USD.10,872,519 in 2019 to the account of the Uganda traders and suppliers association Ltd. Whereas the agreement required the Government of Uganda to pay all the compensation within 12 months period of signing the agreement, only 27% had been paid as at the date of the audit due to lack of funds. \u2022 The reported total public debt as at 30th June, 2019 stood at UGX.46,057 Billion of which Domestic Debt Stock was UGX.15,221 Billion and the External Debt Stock was valued at UGX.30,385 Billion. This is an increase of UGX.4,611 Billion equivalent to 11.1% compared to the debt stock of UGX.41,446.11 Billion reported as at 30th June 2018. \u2022 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. \u2022 A critical analysis of the domestic debt payments suggests that the burden of servicing maturing obligations and interest accounts for 97% of the new money borrowed. In essence, we borrow to pay debts; this is likely to raise the dependence of Government on the domestic market which may lead to an increase in interest rates. \u2022 A review of interest movements on the LIBOR revealed that government has not yet benefited from the SWAP agreements it entered with the two banks. I noted that since the commencement of the arrangement, the LIBOR has been lower than 2.58% and as a result, government has incurred an additional cost of UGX.18,454,082,769 in interest to the commercial banks. It is not clear whether the decision was made after a comprehensive cost-benefit analysis was undertaken. \u2022 A trend analysis of commitment fees paid over a three year period revealed a 148% increase between 2017/18 and 2018/19 from UGX.36bn to UGX.90.6bn. The increase in commitment fees is as a result of unfavourable loan terms and the failure by GoU to draw down and absorb contracted government debt. \u2022 Some Loan agreements require GOU to open escrow accounts where the government was expected to make advance deposit of funds over the tenure of the loan required for the repayment of the loan. It was observed that the total balances in the escrow accounts opened as part of loan agreements stood at UGX.263,337,725,737 as of 30th June 2019 up from UGX.150,430,774,884 at the close of last year. The practice causes financial strain to the cash flows of the country. \u2022 13 out of 15 MDA\u2019s which were on lent have never made any attempt to repay the loans. The outstanding amount is UGX.6,873,369,390,073. There were no criteria/policy in place to assess"]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 186, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY", "SUMMARY OF KEY FINDINGS \u2022 I observed that URA opted to procure an Enterprise Resource Planning System at a cost of UGX.32,079,727,632 without approval from NITA-U. Inquiry from NITA(U) revealed that the system acquired by URA is already available under the IFMS and IPPS and any missing modules could have been procured at a much cheaper price."], "type": "table"}}, {"content": "173", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 186, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["8", "Public Procurement and Disposal of Public assets Authority (PPDA) **Opinion** Unqualified", "\u2022 I observed that out of the budgeted revenue of UGX.24,851,777,620, the entity received UGX.22,822,513,121 representing about 91.8% of the approved budget. This resulted into a shortfall of UGX.2,029,264,499 (representing about 8.2% of the approved budget). \u2022 Out of the warrants amounting to UGX.22,822,513,121, a total of UGX.22,703,512,878 was actually spent by the entity resulting into unspent balance of UGX.119,000,243, which was swept back to the consolidated fund account at year end. Unspent funds point to inability to fully implement all planned activities. \u2022 I observed that as at 30th June 2019, payables had increased to UGX.229,000,860 up from UGX.55,820,379 as at 30th June 2018. Accumulation of domestic arrears contravenes the commitment control system. \u2022 I reviewed the Internal Audit Quarterly Report for October to December 2018 and observed that PPDA Human Resource Manual 2015 had not been updated with current practice and decisions and was not aligned to the Employment Act 2006."], ["9", "PPDA Appeals Tribunal **Opinion** Unqualified", "\u2022 The PPDA Tribunal uses the Procurement Unit of the Ministry of Finance Planning and Economic Development (MoFPED) to undertake its procurements. The practise presents a risk of conflict of interest in the event that bidders were to file cases against MoFPED to the same Tribunal. \u2022 No internal audit function was performed at the Tribunal for the year ended 30th June 2019. \u2022 Analysis of the staffing position of the Tribunal revealed that out of 15 approved positions, the Tribunal has filled 10 positions. Of the vacant 5 positions, 3 are critical to the running of the Tribunal. These are the Deputy Registrar, Senior legal Officer and a Human Resource Officer."], ["10", "Directorate of Ethics and Integrity (DEI) **Opinion** Unqualified", "\u2022 Audit noted that a number of planned activities were not implemented. Some of the key unimplemented activities include; Mainstreaming of National Ethical Values in Cultural Institutions, Popularization of Information Education and Communication Materials on National Ethical Values in 25 Local Governments, Conducting gender and equity responsive meetings of the IAF Technical Working Groups, Preparation of Internal Audit Reports and Apprehension and Prosecution of Pornography Offenders. \u2022 Non-implementation of planned activities affects the Directorates\u2019 level of service delivery and negatively impacts on the achievement of its overall objectives. \u2022 It was noted that the Directorate Budgeted to receive revenue amounting to UGX.5,152,098,953 for the year ended 30th June 2019, but onlyUGX.5,001,165,477 was released representing performance of 97.07 % of the target. The observed performance was attributed to budget cuts. Failure to receive all the appropriated funds affects implementation of planned activities. \u2022 It was observed that from a total budget of UGX.5,152,098,953, UGX.5,001,165,477 was warranted. Out of these warrants, only UGX.4,827,981,679 was spent hence UGX.172,183,798 was not absorbed by the entity. The absorption level was at 96.53% \u2022 Failure to absorb funds defeats denies citizens timely access to services. \u2022 It was observed that although the Directorate holds a huge mandate of national importance, it is devoid of the financial ability and the human capital to handle the mandate. As a result, the Institution is said to be un-attractive to the workforce and whenever jobs are advertised, there is little or no response to the advertisement."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 187, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY", "SUMMARY OF KEY FINDINGS which MDAs to on-lend and there was no mechanism, conditions set by Government to the Accounting Officers to do what is necessary to repay the borrowed funds or penalize those that do not comply with the contracts of on lending."], "type": "table"}}, {"content": [["8", "Public Procurement and Disposal of Public assets Authority (PPDA) **Opinion** Unqualified", "\u2022 I observed that out of the budgeted revenue of UGX.24,851,777,620, the entity received UGX.22,822,513,121 representing about 91.8% of the approved budget. This resulted into a shortfall of UGX.2,029,264,499 (representing about 8.2% of the approved budget). \u2022 Out of the warrants amounting to UGX.22,822,513,121, a total of UGX.22,703,512,878 was actually spent by the entity resulting into unspent balance of UGX.119,000,243, which was swept back to the consolidated fund account at year end. Unspent funds point to inability to fully implement all planned activities. \u2022 I observed that as at 30th June 2019, payables had increased to UGX.229,000,860 up from UGX.55,820,379 as at 30th June 2018. Accumulation of domestic arrears contravenes the commitment control system. \u2022 I reviewed the Internal Audit Quarterly Report for October to December 2018 and observed that PPDA Human Resource Manual 2015 had not been updated with current practice and decisions and was not aligned to the Employment Act 2006."], ["9", "PPDA Appeals Tribunal **Opinion** Unqualified", "\u2022 The PPDA Tribunal uses the Procurement Unit of the Ministry of Finance Planning and Economic Development (MoFPED) to undertake its procurements. The practise presents a risk of conflict of interest in the event that bidders were to file cases against MoFPED to the same Tribunal. \u2022 No internal audit function was performed at the Tribunal for the year ended 30th June 2019. \u2022 Analysis of the staffing position of the Tribunal revealed that out of 15 approved positions, the Tribunal has filled 10 positions. Of the vacant 5 positions, 3 are critical to the running of the Tribunal. These are the Deputy Registrar, Senior legal Officer and a Human Resource Officer."], ["10", "Directorate of Ethics and Integrity (DEI) **Opinion** Unqualified", "\u2022 Audit noted that a number of planned activities were not implemented. Some of the key unimplemented activities include; Mainstreaming of National Ethical Values in Cultural Institutions, Popularization of Information Education and Communication Materials on National Ethical Values in 25 Local Governments, Conducting gender and equity responsive meetings of the IAF Technical Working Groups, Preparation of Internal Audit Reports and Apprehension and Prosecution of Pornography Offenders. \u2022 Non-implementation of planned activities affects the Directorates\u2019 level of service delivery and negatively impacts on the achievement of its overall objectives. \u2022 It was noted that the Directorate Budgeted to receive revenue amounting to UGX.5,152,098,953 for the year ended 30th June 2019, but onlyUGX.5,001,165,477 was released representing performance of 97.07 % of the target. The observed performance was attributed to budget cuts. Failure to receive all the appropriated funds affects implementation of planned activities. \u2022 It was observed that from a total budget of UGX.5,152,098,953, UGX.5,001,165,477 was warranted. Out of these warrants, only UGX.4,827,981,679 was spent hence UGX.172,183,798 was not absorbed by the entity. The absorption level was at 96.53% \u2022 Failure to absorb funds defeats denies citizens timely access to services. \u2022 It was observed that although the Directorate holds a huge mandate of national importance, it is devoid of the financial ability and the human capital to handle the mandate. As a result, the Institution is said to be un-attractive to the workforce and whenever jobs are advertised, there is little or no response to the advertisement."], ["11", "Insurance Regulatory Authority (IRA) **Opinion** Unqualified", "\u2022 Inconsistences were observed between the Insurance Act and PFMA 2015 Act regarding financial management of the Authority necessitating further guidance on how semi-autonomous institutions like IRA will implement such contradicting provisions. \u2022 I observed that the Authority has accumulated outstanding payables amounting to UGX.3,335,741,881 which contravenes Section 5.0 of the Insurance Regulatory Authority Accounting Manual. \u2022 The Authority failed to undertake all the planned activities in relation to the construction of the IRA Office building. The Authority was only able to absorb UGX.8,786,196,874 out of the planned"]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 187, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY", "SUMMARY OF KEY FINDINGS which MDAs to on-lend and there was no mechanism, conditions set by Government to the Accounting Officers to do what is necessary to repay the borrowed funds or penalize those that do not comply with the contracts of on lending."], "type": "table"}}, {"content": "174", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 187, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["12", "Financial Intelligence Authority (FIA) **Opinion** Unqualified", "\u2022 It was noted that 25 posts out of the approved 64, remained vacant including the key posts of; Director Legal, Inspection and Compliance; Director Audit; Director Finance & Administration among others. \u2022 The Authority has not developed a client charter as required by the Public Service Standing Orders. \u2022 The Authority does not have a formal policy in place to recognize and reward exemplary performance by its staff as required by the Public Service Standing Orders. \u2022 Whereas dealers in precious metals are licensed by Ministry of Energy, the sector is not regulated. The Authority has no policy guidelines to the unregulated sectors and given the staffing issues it currently has, it is impractical that FIA can be the regulator of a sector with over 2,500 agencies. \u2022 A review of the Anti-Money Laundering Act 2013 (as amended) and its accompanying regulations however showed that the Authority does not have in place administrative sanctions in case of breach of the law by accountable persons."], ["13", "Uganda Investment Authority (UIA) **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.3,184,389,944 representing 22.8%. This limited the Authority\u2019s capacity to fully implement all the planned activities. \u2022 Further, the entity remained with unspent balance of UGX. 648,019,201representing an absorption level of 94%. Failure to fully utilize available funds points to inability to effectively implement all planned activities. \u2022 I noted a number of positions that were vacant. Out of 124 established positions, only 66 were filled leaving 58 vacant. Vacant posts limit the Authority\u2019s capacity to effectively implement its mandate."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 188, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY", "SUMMARY OF KEY FINDINGS UGX.18,000,000,000 for the construction of the IRA office building. The construction works were behind schedule by almost 6 months. \u2022 A review of the Authority\u2019s expenditure revealed that a total of UGX.66,488,136 was charged on different expenditure codes without approval of the Finance Committee of the Board. \u2022 On the 17th of May 2019 the Insurance Regulatory Authority awarded and signed a contract for the supply and Installation of a Finance and Accounting Management Module Software valued at UGX.146,172,500 with a service provider who had been suspended by PPDA for two (2) years effective 13th May 2019 over forgery of a performance security. \u2022 Irregular cancellation of the Best Evaluated Bidder Notice for procurement of Catering services worth UGX.200,438,340 was observed despite the complainant not being a bidder in that procurement. \u2022 I observed that whereas, the Human Resource Manual stipulates that staff shall not incur internal loans/advances requiring monthly recovery exceeding 40% of their net salary, the Staff Loan Policy 2015, stipulates that the take home of staff shall not fall below 40% of net pay. That is a contradiction which needs to be addressed. \u2022 The Authority disbursed funds amounting to UGX.220,656,300 from the operations account, as loans to staff, instead of maintaining a separate loan account for a fund from which such loans would be administered on a revolving basis. \u2022 A review of the IRA staffing position indicated that the Authority had only filled 32 staff positions out of the approved 63 positions leaving a total of 31 (49%) positions vacant. \u2022 The Authority had not established a policyholder\u2019s compensation fund that is meant to build a reserve fund. \u2022 The Authority has no Ombudsman to arbitrate complaints and disputes concerning licensees and the general public. \u2022 I observed that no effort had been taken by the Authority to sensitize, partners, insurance firms and the public on what third party insurance is, its benefits, claims, rights and obligations thereof leading to unclaimed third party insurance funds and denial of benefit to the community, specifically accident victims."], "type": "table"}}, {"content": "175", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 188, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["15", "Deposit Protection Fund **Opinion** Unqualified", "\u2022 No material issues to be reported on."], ["16", "Uganda Microfinance Regulatory Authority (UMRA) **Opinion** Unqualified", "\u2022 A review of the statement of revenue collected during the year revealed that management did not budget for the NTR collections for the year despite the entity collecting a sum of UGX.502,410,000. \u2022 Comparison of the budget with the actual expenditure incurred indicated that the entity violated the approved budget and overspent on various items to the tune of UGX.944,283,498. There was no evidence that prior authority was sought from a relevant organ to incur over expenditures on the above budget lines. This was therefore irregular and was attributed to weaknesses in budgetary control and under budgeting. \u2022 A review of the annual work plan for the period ended 30th June, 2019 revealed that a number of the planned activities budgeted at UGX.605,906,940 were not implemented during the year. \u2022 It was noted that management disregarded a Board resolution to pay salary increments effective November 2018 and effected increments from July 2018. As a result, management irregularly paid UGX.116,700,000 in relation to salary arrears. \u2022 Contrary to section 11 of the NSSF Act, I noted that UGX.247,950,000 was paid to staff in lieu of gratuity but the Authority did not deduct the 5% Individual National Social Security Fund contribution totalling to UGX.12,397,500. Also noted was that the entity did not recover the 10% Employer contribution amounting UGX.24,795,000."], ["17", "Privatization and Utility Sector Reform Project (Divestiture & Redundancy Accounts) **Opinion** Unqualified", "\u2022 Review of the payables figure revealed that taxes in respect of PAYE and Withholding Tax worth UGX.1,670,807,206 and UGX.13,271,794 respectively were deducted but not remitted to URA in the year under review. As a result, the Payables figure in relation to taxes increased from UGX.6,431,654,000 in 2017/18 to UGX.8,115,733,000 in 2018/19. \u2022 Analysis of receivables due from outstanding sales proceeds of Government companies amounting to UGX.124.9 billion revealed that some of these receivables had been outstanding for long periods of up to 23 years and there was no movement in the debtors' figures. Notable examples include sales proceeds from African Textile Mills, Uganda Hotels Limited Lira and Hilltop Hotel, and receivables from Government in regard to URC Nsambya land and Uganda Consolidated Properties. \u2022 Section 26(1) of the PERD Act 2003 vests the responsibility of withdrawal of funds from the Divestiture Account with the Minister responsible for finance. I was however, noted that a total of UGX.2,864,280, 593 was withdrawn from the divestiture Account to finance operations of the Privatization Unit without the Minister's approval. \u2022 Contrary to section Section 5(1) of the PERD Act, the Privatisation Unit offered a 50-year lease of Maruzi ranch to a private company at a lease premium of UGX.872,700,000 without the approval of the Divestiture and Reform Implementation Committee (DRIC)."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 189, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn 14", "SECTOR AND ENTITY  Uganda Retirement Benefits Regulatory Authority (URBRA) Opinion Unqualified", "SUMMARY OF KEY FINDINGS \u2022 A total UGX.623,022,841 which remained unspent in FY 17/18 was spent in the year under review without authority. Management again failed to spend a total of UGX.1,275,864,068 appropriated in the year under review (FY 18/19) and has not returned it to the Consolidated Fund. \u2022 Three (3) Retirement Benefit Schemes did not submit their audited financial statements as required and the Authority has no mechanism to promptly enforce compliance other than through the tedious court process. \u2022 The Authority failed to develop Informal sector regulations by the end of FY 2018/19 as planned, despite having two schemes already operating."], "type": "table"}}, {"content": [["15", "Deposit Protection Fund **Opinion** Unqualified", "\u2022 No material issues to be reported on."], ["16", "Uganda Microfinance Regulatory Authority (UMRA) **Opinion** Unqualified", "\u2022 A review of the statement of revenue collected during the year revealed that management did not budget for the NTR collections for the year despite the entity collecting a sum of UGX.502,410,000. \u2022 Comparison of the budget with the actual expenditure incurred indicated that the entity violated the approved budget and overspent on various items to the tune of UGX.944,283,498. There was no evidence that prior authority was sought from a relevant organ to incur over expenditures on the above budget lines. This was therefore irregular and was attributed to weaknesses in budgetary control and under budgeting. \u2022 A review of the annual work plan for the period ended 30th June, 2019 revealed that a number of the planned activities budgeted at UGX.605,906,940 were not implemented during the year. \u2022 It was noted that management disregarded a Board resolution to pay salary increments effective November 2018 and effected increments from July 2018. As a result, management irregularly paid UGX.116,700,000 in relation to salary arrears. \u2022 Contrary to section 11 of the NSSF Act, I noted that UGX.247,950,000 was paid to staff in lieu of gratuity but the Authority did not deduct the 5% Individual National Social Security Fund contribution totalling to UGX.12,397,500. Also noted was that the entity did not recover the 10% Employer contribution amounting UGX.24,795,000."], ["17", "Privatization and Utility Sector Reform Project (Divestiture & Redundancy Accounts) **Opinion** Unqualified", "\u2022 Review of the payables figure revealed that taxes in respect of PAYE and Withholding Tax worth UGX.1,670,807,206 and UGX.13,271,794 respectively were deducted but not remitted to URA in the year under review. As a result, the Payables figure in relation to taxes increased from UGX.6,431,654,000 in 2017/18 to UGX.8,115,733,000 in 2018/19. \u2022 Analysis of receivables due from outstanding sales proceeds of Government companies amounting to UGX.124.9 billion revealed that some of these receivables had been outstanding for long periods of up to 23 years and there was no movement in the debtors' figures. Notable examples include sales proceeds from African Textile Mills, Uganda Hotels Limited Lira and Hilltop Hotel, and receivables from Government in regard to URC Nsambya land and Uganda Consolidated Properties. \u2022 Section 26(1) of the PERD Act 2003 vests the responsibility of withdrawal of funds from the Divestiture Account with the Minister responsible for finance. I was however, noted that a total of UGX.2,864,280, 593 was withdrawn from the divestiture Account to finance operations of the Privatization Unit without the Minister's approval. \u2022 Contrary to section Section 5(1) of the PERD Act, the Privatisation Unit offered a 50-year lease of Maruzi ranch to a private company at a lease premium of UGX.872,700,000 without the approval of the Divestiture and Reform Implementation Committee (DRIC)."], ["18", "Uganda Bureau of Statistics (UBOS) **Opinion** Unqualified", "\u2022 Though UBOS received UGX.49,419,626,847 (100%) only UGX.46,460,740,491 was actually absorbed (performance of about 94.01%), leading to unimplemented activities worth UGX.2,958,886,356."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 189, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn 14", "SECTOR AND ENTITY  Uganda Retirement Benefits Regulatory Authority (URBRA) Opinion Unqualified", "SUMMARY OF KEY FINDINGS \u2022 A total UGX.623,022,841 which remained unspent in FY 17/18 was spent in the year under review without authority. Management again failed to spend a total of UGX.1,275,864,068 appropriated in the year under review (FY 18/19) and has not returned it to the Consolidated Fund. \u2022 Three (3) Retirement Benefit Schemes did not submit their audited financial statements as required and the Authority has no mechanism to promptly enforce compliance other than through the tedious court process. \u2022 The Authority failed to develop Informal sector regulations by the end of FY 2018/19 as planned, despite having two schemes already operating."], "type": "table"}}, {"content": "176", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 189, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["19", "Uganda Property Holdings Limited (UPHL) **Opinion** Unqualified", "\u2022 The company\u2019s trade and other receivables increased from UGX.1,890,499,800 in 2017/18 to UGX.3,178,262,050 in 2018-19 registering an overall increase of 68%, which is an indication of poor debt recovery by the Company. \u2022 I noted that the Company does not possess a certificate of land title for land located on JJA 191 Folio 8 Plot 3 (M82) Industrial Estate Link in Masese, Jinja measuring 8.588 hectares. \u2022 A number of the Company Ware house roofs have been renovated but some need to be urgently replaced with iron sheets, while other properties require urgent renovations and continuous repainting because of salty environment that causes paint to peel off the walls and metals to rust. In addition, there is need to transform and/or redevelop some of the properties to maximize value derived from them given their prime locations and the size of the plots."], ["20", "Custodian Board **Opinion** Qualified", "\u2022 During the financial year 2018/19, the Board collected UGX.493,988,036 but incurred expenditure totalling UGX.1,813,885,978 with the extra funds (i.e. UGX.1,319,897,942) being obtained from the proceeds of the previous years\u2019 sale of properties. Spending on operational costs is likely to wipe out accumulated proceeds from the sale of properties. \u2022 I observed that there were outstanding balances of rent from government departments and partially paid-up properties since 2005, amounting to UGX.3,667,277,383. \u2022 It was observed that the present tenants of the Board are paying rent according to the rates prescribed over ten years ago. For example, properties in prime areas of Kampala are paying rent as low as UGX.300,000 per month. \u2022 I noted that the Minister declined to sign and issue certificates of purchase for 10 (ten) properties based on the fact that the properties were in prime areas and the values quoted by the Chief Government Valuer were not in consonance with the market price at the time. \u2022 115 properties whose owners were compensated through the British High Commission and 87 properties whose owners were compensated through the UNHCR way back in 1999 are yet to be valued and offered for sale. \u2022 Eighty (80) properties that were redeemed by the Board from financial institutions were not yet sold by the time of the audit awaiting verification and valuation despite cabinet\u2019s recommendation that the properties be valued and offered for sale. \u2022 It was noted that some properties whose owners were compensated decades ago were irregularly repossessed by new owners."], ["21", "Uganda Free Zones Authority (UFZA) **Opinion** Unqualified", "\u2022 UFZA procured 109 acres of land located on Busiro block 535-540 Wakiso district at a sum of UGX.7,412,000,000, but two years after payment, UFZA has not gained access to the land and has no certificate of title due to encumbrances on the land. A litigation process towards the recovery of the funds through the Attorney General has been initiated. \u2022 UFZA signed a contract for the Construction of the Entebbe Free zone with NEC Construction Works and Engineering Ltd six days to the close of the financial year and transferred"]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 190, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY", "SUMMARY OF KEY FINDINGS \u2022 UBOS had arrears to the tune of UGX.80,717,284 in respect to property rates outstanding from prior year and no budget provisions had been made towards settlement of domestic arrears. These arrears were paid during the financial year by diverting of funds for other planned activities. \u2022 I observed that total deductions on the gross salaries exceeded the 50% limit of deductions for majority of the staff of the Bureau. Some staff had deductions of between 80% and 100% of their salaries. \u2022 I noted that the Bureau has not developed a client charter as required by the Public Service Standing Orders. Further noted was that UBOS lacks a rewards and sanctions committee. \u2022 The DFID Project estimated to cost UGX.4,684,073,022 with activity on data collection which was planned to end in April 2019 and report concluded at end of June 2019 had not yet started by the time of audit in July 2019. \u2022 I observed that the project implementation started in August 2019, after 17 months delay. This was attributed to delayed implementation of the project which may negatively affect subsequent release of the funds for project completion."], "type": "table"}}, {"content": [["19", "Uganda Property Holdings Limited (UPHL) **Opinion** Unqualified", "\u2022 The company\u2019s trade and other receivables increased from UGX.1,890,499,800 in 2017/18 to UGX.3,178,262,050 in 2018-19 registering an overall increase of 68%, which is an indication of poor debt recovery by the Company. \u2022 I noted that the Company does not possess a certificate of land title for land located on JJA 191 Folio 8 Plot 3 (M82) Industrial Estate Link in Masese, Jinja measuring 8.588 hectares. \u2022 A number of the Company Ware house roofs have been renovated but some need to be urgently replaced with iron sheets, while other properties require urgent renovations and continuous repainting because of salty environment that causes paint to peel off the walls and metals to rust. In addition, there is need to transform and/or redevelop some of the properties to maximize value derived from them given their prime locations and the size of the plots."], ["20", "Custodian Board **Opinion** Qualified", "\u2022 During the financial year 2018/19, the Board collected UGX.493,988,036 but incurred expenditure totalling UGX.1,813,885,978 with the extra funds (i.e. UGX.1,319,897,942) being obtained from the proceeds of the previous years\u2019 sale of properties. Spending on operational costs is likely to wipe out accumulated proceeds from the sale of properties. \u2022 I observed that there were outstanding balances of rent from government departments and partially paid-up properties since 2005, amounting to UGX.3,667,277,383. \u2022 It was observed that the present tenants of the Board are paying rent according to the rates prescribed over ten years ago. For example, properties in prime areas of Kampala are paying rent as low as UGX.300,000 per month. \u2022 I noted that the Minister declined to sign and issue certificates of purchase for 10 (ten) properties based on the fact that the properties were in prime areas and the values quoted by the Chief Government Valuer were not in consonance with the market price at the time. \u2022 115 properties whose owners were compensated through the British High Commission and 87 properties whose owners were compensated through the UNHCR way back in 1999 are yet to be valued and offered for sale. \u2022 Eighty (80) properties that were redeemed by the Board from financial institutions were not yet sold by the time of the audit awaiting verification and valuation despite cabinet\u2019s recommendation that the properties be valued and offered for sale. \u2022 It was noted that some properties whose owners were compensated decades ago were irregularly repossessed by new owners."], ["21", "Uganda Free Zones Authority (UFZA) **Opinion** Unqualified", "\u2022 UFZA procured 109 acres of land located on Busiro block 535-540 Wakiso district at a sum of UGX.7,412,000,000, but two years after payment, UFZA has not gained access to the land and has no certificate of title due to encumbrances on the land. A litigation process towards the recovery of the funds through the Attorney General has been initiated. \u2022 UFZA signed a contract for the Construction of the Entebbe Free zone with NEC Construction Works and Engineering Ltd six days to the close of the financial year and transferred"]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 190, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY", "SUMMARY OF KEY FINDINGS \u2022 UBOS had arrears to the tune of UGX.80,717,284 in respect to property rates outstanding from prior year and no budget provisions had been made towards settlement of domestic arrears. These arrears were paid during the financial year by diverting of funds for other planned activities. \u2022 I observed that total deductions on the gross salaries exceeded the 50% limit of deductions for majority of the staff of the Bureau. Some staff had deductions of between 80% and 100% of their salaries. \u2022 I noted that the Bureau has not developed a client charter as required by the Public Service Standing Orders. Further noted was that UBOS lacks a rewards and sanctions committee. \u2022 The DFID Project estimated to cost UGX.4,684,073,022 with activity on data collection which was planned to end in April 2019 and report concluded at end of June 2019 had not yet started by the time of audit in July 2019. \u2022 I observed that the project implementation started in August 2019, after 17 months delay. This was attributed to delayed implementation of the project which may negatively affect subsequent release of the funds for project completion."], "type": "table"}}, {"content": "177", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 190, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["22", "Tax Appeals tribunal (TAT) **Opinion** Unqualified", "\u2022 Contrary to section 48 (1) of the Public Finance Management Act (PFMA) 2015, no provision was made in the structure of the Tribunal for an internal audit function and indeed this role has not been assigned to any staff. \u2022 Contrary to Section 2.6 (e) of the Circular Standing Instruction No. 1 of 2016, Tribunal staff were last appraised in 2016. There was no evidence of appraisals undertaken for the period after 2016."], ["23", "Bank of Uganda (BoU) **Opinion** Unqualified", "\u2022 No material issues to be reported."], ["24", "Post Bank Limited - 2018 **Opinion** Unqualified", "\u2022 There were impairment of loans and advances to customers. As at 31st December 2018, loans and advances amounted to UGX.265.7 billion, and the impairment losses amounted to UGX.7.13 billion."], ["25", "Pride Microfinance Limited (MDI) \u2013 2018 **Opinion** Unqualified", "\u2022 There were impairment of loans and advances to customers. As at 31st December 2018, gross loans and advances amounted to UGX.152 billion, and the impairment losses amounted to UGX3,810 million, with UGX.1,645 million, UGX.288 million and UGX.1,877 million reported under Stages 1, 2 and 3, respectively."], ["26", "Uganda Development Bank Limited (UDBL) **Opinion** Unqualified", "\u2022 There were impairment of loans and advances to customers. Loan provisions increased from UGX.19.6 Billion as at 31st December 2017 to UGX.34 Billion as at 31st December 2018 and the impairment losses amounted to UGX.14.4 billion."], ["27", "Competitiveness and Enterprise Development Project (CEDP) Component 2-5 IDA **Opinion** Unqualified", "\u2022 There were no material issues to report on."], ["28", "Competitiveness and Enterprise Development Project (CEDP) Component 1 Land Administration IDA **Opinion** Unqualified", "\u2022 The entity remained with unspent balance of UGX.39,691,929,747 (USD.9,812,360) representing an absorption level of only 41%. \u2022 Failure to undertake quarterly internal reviews."], ["29", "Capital Markets Authority (CMA) **Opinion** Unqualified", "\u2022 No material issues to be reported on."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 191, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY", "SUMMARY OF KEY FINDINGS UGX.7,021,627,146 to NEC; However, no works have been implemented due to a number of reasons."], "type": "table"}}, {"content": "178", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 191, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["31", "East African Association of Anti- corruption Authorities (EAAACA) \u2013 2018 **Opinion** Unqualified", "\u2022 Failure by members to meet their annual contributions."], ["", "**INFORMATION COMMUNICATIO N SECTOR**", ""], ["1", "Ministry of ICT **Opinion** Unqualified", "\u2022 Out of the budgeted revenue of UGX.41,795,794,452 for the year 2018/19, only UGX.35,787,545,518 was received representing a performance of only 85.6% of the target. \u2022 I noted that the entity received off-budget financing to a tune of UGX.110,538,800 which was not channelled through the consolidated fund as required by the law. \u2022 Out of the warrants of UGX.36,593,191,518, only UGX.35,749,057,573 was actually spent by the entity resulting into an unspent balance of UGX.844,133,945 representing an absorption level of 97.7%. The unspent balances at the end of the financial year were subsequently swept back to the consolidated fund account. \u2022 An analysis of the outputs/activities that were quantified revealed that, although the entity absorbed 95.3% of the funds that were released for quantified outputs, some of the activities remained either partially or not implemented at all. Out of the 20 quantified activities reviewed, 8 activities representing 40% were fully implemented while 12 activities representing 60% were partially implemented implying a diversion of funds to other activities. \u2022 I noted that the National ICT Initiatives Support Programme (NIISP) Program does not have a policy to safe guard government\u2019s financial interest in companies that have succeeded in developing and commercialising software as a result of receiving funding from government through the innovation fund. This was attributed to failure by government (through PUSATI) to cater for government interest on all the innovations funded by government. \u2022 Shortcomings were noted in the implementation of the provisions in the circular standing instructions on staff performance management. The gaps identified include non-completion of Performance Agreements, no quarterly reviews undertaken, no performance improvement plans prepared, non-submission of reports on Performance Agreements and progress reports on performance improvement plans to MoPS and existence of an expired Ministry Client\u2019s charter."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 192, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn 30", "SECTOR AND ENTITY Microfinance Support Centre Opinion Unqualified", "SUMMARY OF KEY FINDINGS \u2022 The Company credit and risk manual is silent about the classification of the loans for purpose of impairment; the aging analysis extracted from the system and used in the computation of impairment does not show the accrued interest. \u2022 The Company faces a key challenge in identifying and implementing a suitably relevant and intelligible accounting and business risk management framework that is comparable with conventional finance without failing to comply with Sharia laws; there were no guidelines developed on how to account for the Islamic finance Assets."], "type": "table"}}, {"content": [["31", "East African Association of Anti- corruption Authorities (EAAACA) \u2013 2018 **Opinion** Unqualified", "\u2022 Failure by members to meet their annual contributions."], ["", "**INFORMATION COMMUNICATIO N SECTOR**", ""], ["1", "Ministry of ICT **Opinion** Unqualified", "\u2022 Out of the budgeted revenue of UGX.41,795,794,452 for the year 2018/19, only UGX.35,787,545,518 was received representing a performance of only 85.6% of the target. \u2022 I noted that the entity received off-budget financing to a tune of UGX.110,538,800 which was not channelled through the consolidated fund as required by the law. \u2022 Out of the warrants of UGX.36,593,191,518, only UGX.35,749,057,573 was actually spent by the entity resulting into an unspent balance of UGX.844,133,945 representing an absorption level of 97.7%. The unspent balances at the end of the financial year were subsequently swept back to the consolidated fund account. \u2022 An analysis of the outputs/activities that were quantified revealed that, although the entity absorbed 95.3% of the funds that were released for quantified outputs, some of the activities remained either partially or not implemented at all. Out of the 20 quantified activities reviewed, 8 activities representing 40% were fully implemented while 12 activities representing 60% were partially implemented implying a diversion of funds to other activities. \u2022 I noted that the National ICT Initiatives Support Programme (NIISP) Program does not have a policy to safe guard government\u2019s financial interest in companies that have succeeded in developing and commercialising software as a result of receiving funding from government through the innovation fund. This was attributed to failure by government (through PUSATI) to cater for government interest on all the innovations funded by government. \u2022 Shortcomings were noted in the implementation of the provisions in the circular standing instructions on staff performance management. The gaps identified include non-completion of Performance Agreements, no quarterly reviews undertaken, no performance improvement plans prepared, non-submission of reports on Performance Agreements and progress reports on performance improvement plans to MoPS and existence of an expired Ministry Client\u2019s charter."], ["2", "Uganda Communications Commission (UCC) **Opinion** Unqualified", "\u2022 The Commission collected, UGX.121,461,302,600 against budgeted revenue of UGX.112,695,862,406 for the year 2018/19 representing performance of 108%. However, some revenue sources like Broadcasting, Postal license and rental income had budget shortfalls ranging between 15% to 35%. \u2022 Funds amounting to UGX.11,256,377,342 remained committed by the close of the year, while UGX.1,418,895,762 remained unutilized, an indication of under absorption. \u2022 Out of the outputs worth UGX.27,381,662,430 assessed, outputs for UGX.4,756,528,378 representing 17.3% were fully implemented, UGX.19,457,311,179 representing 70% were partially implemented while UGX.500,000,000 worth of outputs were not implemented at all. \u2022 I noted that the two major telecom operators in the country have operated their telecom services without licenses for the period of one year since November 2018 to-date, which is contrary to the UCC Act. The Commission therefore has not collected any licensing revenue from the two"]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 192, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn 30", "SECTOR AND ENTITY Microfinance Support Centre Opinion Unqualified", "SUMMARY OF KEY FINDINGS \u2022 The Company credit and risk manual is silent about the classification of the loans for purpose of impairment; the aging analysis extracted from the system and used in the computation of impairment does not show the accrued interest. \u2022 The Company faces a key challenge in identifying and implementing a suitably relevant and intelligible accounting and business risk management framework that is comparable with conventional finance without failing to comply with Sharia laws; there were no guidelines developed on how to account for the Islamic finance Assets."], "type": "table"}}, {"content": "179", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 192, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["3", "Rural Communications Development Fund (RCDF) **Opinion** Unqualified", "\u2022 The Fund had committed and unabsorbed funds amounting to UGX.6.579 billion as at the close of the financial year under review. It was noted that some of the unabsorbed funds were for activities meant to be implemented in the financial year 2017/18 whose budget was rolled over to 2018/19. Unspent funds imply delayed or non-implementation of planned activities for service delivery. \u2022 In the last five years, RCDF has invested UGX.41.8 billion in the provision of school computer laboratories and public access centers to schools. However, there was no plan and budget provided for the sustainability of the School ICT Program in terms of developing capacity in schools to handle basic ICT trouble shooting when problems arise and technical capacity to perform basic maintenance of the computer laboratories. \u2022 Procurements worth UGX.81,200,000 were undertaken using the direct method of procurement without proper justification."], ["4", "Uganda Posts Limited **Opinion** Unqualified", "\u2022 There was a shortfall in revenue collections amounting to UGX.1,478,485,511 representing 7% of the projected estimate of UGX.20,454,671,505. \u2022 Out of the 23 outputs of UPL that I assessed for FY 2018/19, 11 outputs representing 48% were fully implemented; 6 outputs/activities representing 26% were partially implemented while 6 outputs/activities representing 26% were not implemented at all. \u2022 Despite entering an agreement with The International Fund for Agricultural Development (IFAD) and Post Bank to Scale up remittances and financial inclusion in Uganda worth EUR.465,000 for 2 years, UPL was entitled to EUR.59,900 but this amount was not included in the budget of the Financial Year 2018/19. \u2022 Uganda Posts Limited has unpaid up shares totaling 220,513 out of 779,487 issued at value of UGX.25,000 per share in 1998. The unpaid shares of 220,513 is valued at UGX.5,512,825,000. The shares are owned by the Ministry of Finance, Planning and Economic Development, while Ministry of Information and Communications Technology, and National Guidance owns one share. \u2022 Uganda Posts Limited has been operating without a Strategic Plan since the expiry of the company\u2019s 2013-2018 strategic plan. \u2022 I noted that legal fees worth UGX.133,876,000 were paid to law firms representing the entity without any contracts with the firms. The arrangements between the company and the law firms are unclear and expose the entity to liability in case of any future disagreements. \u2022 The entity has not recovered funds worth UGX.46,300,000 that was erroneously paid to its external lawyer. \u2022 UPL contracted a private firm to manage its fleet of 10 buses for 3 years. A total of UGX.767,280,000 remained uncollected from the private firm as at 22nd August 2018 when the contract was terminated. \u2022 UPL has outstanding Pay As You Earn (PAYE) and Local Service Tax (LST) payments amounting to UGX.1,606,158,262 as at 30th June 2019 which had not been remitted to Uganda Revenue and/or Local Governments. \u2022 UPL has unpaid VAT worth UGX.3,341,412,272 which remained outstanding as at 30th June 2019."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 193, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY", "SUMMARY OF KEY FINDINGS operators for the said period. Failure to renew licenses deprives the Commission of earning revenue and poses a legal risk to the operators, government and the users of the telecom services. \u2022 UCC had not invoiced Uganda Telecom Limited for the different resources since 2015 amounting to UGX.70.3 billion (UGX.38.9 billion being before UTL Ltd went into administration and UGX.31.3 billion post administration). UCC management resolved to discontinue raising invoices to UTL as all invoices raised were not being honoured and yet UCC gets taxed by URA. UCC continues to render additional resources to UTL. \u2022 Shortcomings were noted in the management of procurements that include doubtful bidding process, awarding contracts above the assessed market value and award of contracts in foreign currency."], "type": "table"}}, {"content": [["3", "Rural Communications Development Fund (RCDF) **Opinion** Unqualified", "\u2022 The Fund had committed and unabsorbed funds amounting to UGX.6.579 billion as at the close of the financial year under review. It was noted that some of the unabsorbed funds were for activities meant to be implemented in the financial year 2017/18 whose budget was rolled over to 2018/19. Unspent funds imply delayed or non-implementation of planned activities for service delivery. \u2022 In the last five years, RCDF has invested UGX.41.8 billion in the provision of school computer laboratories and public access centers to schools. However, there was no plan and budget provided for the sustainability of the School ICT Program in terms of developing capacity in schools to handle basic ICT trouble shooting when problems arise and technical capacity to perform basic maintenance of the computer laboratories. \u2022 Procurements worth UGX.81,200,000 were undertaken using the direct method of procurement without proper justification."], ["4", "Uganda Posts Limited **Opinion** Unqualified", "\u2022 There was a shortfall in revenue collections amounting to UGX.1,478,485,511 representing 7% of the projected estimate of UGX.20,454,671,505. \u2022 Out of the 23 outputs of UPL that I assessed for FY 2018/19, 11 outputs representing 48% were fully implemented; 6 outputs/activities representing 26% were partially implemented while 6 outputs/activities representing 26% were not implemented at all. \u2022 Despite entering an agreement with The International Fund for Agricultural Development (IFAD) and Post Bank to Scale up remittances and financial inclusion in Uganda worth EUR.465,000 for 2 years, UPL was entitled to EUR.59,900 but this amount was not included in the budget of the Financial Year 2018/19. \u2022 Uganda Posts Limited has unpaid up shares totaling 220,513 out of 779,487 issued at value of UGX.25,000 per share in 1998. The unpaid shares of 220,513 is valued at UGX.5,512,825,000. The shares are owned by the Ministry of Finance, Planning and Economic Development, while Ministry of Information and Communications Technology, and National Guidance owns one share. \u2022 Uganda Posts Limited has been operating without a Strategic Plan since the expiry of the company\u2019s 2013-2018 strategic plan. \u2022 I noted that legal fees worth UGX.133,876,000 were paid to law firms representing the entity without any contracts with the firms. The arrangements between the company and the law firms are unclear and expose the entity to liability in case of any future disagreements. \u2022 The entity has not recovered funds worth UGX.46,300,000 that was erroneously paid to its external lawyer. \u2022 UPL contracted a private firm to manage its fleet of 10 buses for 3 years. A total of UGX.767,280,000 remained uncollected from the private firm as at 22nd August 2018 when the contract was terminated. \u2022 UPL has outstanding Pay As You Earn (PAYE) and Local Service Tax (LST) payments amounting to UGX.1,606,158,262 as at 30th June 2019 which had not been remitted to Uganda Revenue and/or Local Governments. \u2022 UPL has unpaid VAT worth UGX.3,341,412,272 which remained outstanding as at 30th June 2019."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 193, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY", "SUMMARY OF KEY FINDINGS operators for the said period. Failure to renew licenses deprives the Commission of earning revenue and poses a legal risk to the operators, government and the users of the telecom services. \u2022 UCC had not invoiced Uganda Telecom Limited for the different resources since 2015 amounting to UGX.70.3 billion (UGX.38.9 billion being before UTL Ltd went into administration and UGX.31.3 billion post administration). UCC management resolved to discontinue raising invoices to UTL as all invoices raised were not being honoured and yet UCC gets taxed by URA. UCC continues to render additional resources to UTL. \u2022 Shortcomings were noted in the management of procurements that include doubtful bidding process, awarding contracts above the assessed market value and award of contracts in foreign currency."], "type": "table"}}, {"content": "180", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 193, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["5", "Uganda Institute of Communications Technology (UICT) **Opinion** Unqualified", "\u2022 I noted that out of the budgeted revenue of UGX.4,345,390,419 for the year 2018/19, only UGX.1,938,006,094 was collected representing a performance of only 45% of the target. \u2022 The Institute planned to achieve deliverables through the implementation of 30 outputs. I reviewed all the 30 outputs out of which, 9 outputs representing 30% were fully implemented, 2 outputs representing 7% were partially implemented while 19 outputs representing 63% were not implemented. \u2022 I reviewed the staffing structure of the Institute and found that out of the approved staffing structure of 107, only 42 (39%) were filled, leaving 65 (61%) positions vacant. \u2022 I noted that a number of staff are in acting positions and some have been acting for three to four years, contrary with the requirements under the Human Resource Manual. \u2022 In my earlier reports to Parliament, I noted that the Institute faced challenges of being governed by multiple agencies and observed ambiguity in the interpretation of several provisions in the law which directly affects its operations. This position has not yet been addressed to date."], ["6", "Uganda Broadcasting Corporation (UBC) **Opinion** Qualified", "\u2022 In the Statement of financial position Plant, Property and Equipment was stated at UGX.265,192,130,135 as at 30th June 2019; however, these were last revalued 10 years ago. Failure to revalue implies that assets are not carried at fair value as stated in the financial statements. Property, Plant and Equipment are not fairly stated in the financial statements and are thus misleading. \u2022 I noted that the Corporation has not yet recovered the land title for land along Bugolobi \u2013 Faraday Rd. valued at UGX.70,545,000,000. The continued failure to retrieve the title exposes the land to a risk of other unscrupulous deals. \u2022 I noted that, although Mega FM acquired an Antenna system with its accessories worth UGX.48,958,174, this was not reported in the schedule of plant, property and equipment under note 6. Therefore the entity understated its value of Property, Plant and Equipment by the amount not recognized. \u2022 Note 14 of the financial statements shows trade & other receivables as UGX.26,516,683,955. However, I noted that management assigned two companies to undertake debt recovery during the year under review. However, three months after the award, only UGX.44,000,000 of the outstanding amount had been recovered and UGX.10,187,320,000 was rejected by the debtors. As such, the uncertainty surrounding the recoverability of the debts implies that the reported receivables figure may be over-stated. \u2022 Contrary to Section 10.21.12 of the Treasury Instructions 2017 advances totalling to UGX.62,246,400 lacked accountability documents. As such, I was unable to confirm that the funds were properly utilized or expended for lawful purposes. \u2022 Contrary to IAS 1, I observed that management did not recognize intangible assets as a separate line on the face of the financial statements despite having new software like the broadcasting and accounting software in use."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 194, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY", "SUMMARY OF KEY FINDINGS \u2022 UPL has outstanding payables worth UGX.762,997,478 (2% of its Gross Annual Revenue) not remitted to Uganda Communications Commission as operator\u2019s license. \u2022 There was an increase in Posta Uganda Limited\u2019s receivables of UGX.3,191,559,290 representing and 29% increase to UGX.11,047,099,610 from UGX.7,855,540,320 in the FY 2017/18. \u2022 UPL has Stamp Stock Inventory worth UGX.4,360,104,970 which are slow moving items, of which some stamps were purchased thirty (30) years ago. There is evidence of impairment of this amount, given the current technological developments extinguishing usage of stamps. \u2022 The entity spent UGX.2,224,343,116 on Insurance, professional and legal costs which was above the approved budget of UGX.705, 815,212 leading to an over expenditure of UGX.1,718,183,984, without proper approval. \u2022 During my inspection of the Company properties at its Head Office and Postel building on 30th June 2019, I noted that rentable space totalling to 1,189 square metres at the two properties remained vacant for over twelve (12) months during which time, the company could have earned UGX.1,012,140,000."], "type": "table"}}, {"content": [["5", "Uganda Institute of Communications Technology (UICT) **Opinion** Unqualified", "\u2022 I noted that out of the budgeted revenue of UGX.4,345,390,419 for the year 2018/19, only UGX.1,938,006,094 was collected representing a performance of only 45% of the target. \u2022 The Institute planned to achieve deliverables through the implementation of 30 outputs. I reviewed all the 30 outputs out of which, 9 outputs representing 30% were fully implemented, 2 outputs representing 7% were partially implemented while 19 outputs representing 63% were not implemented. \u2022 I reviewed the staffing structure of the Institute and found that out of the approved staffing structure of 107, only 42 (39%) were filled, leaving 65 (61%) positions vacant. \u2022 I noted that a number of staff are in acting positions and some have been acting for three to four years, contrary with the requirements under the Human Resource Manual. \u2022 In my earlier reports to Parliament, I noted that the Institute faced challenges of being governed by multiple agencies and observed ambiguity in the interpretation of several provisions in the law which directly affects its operations. This position has not yet been addressed to date."], ["6", "Uganda Broadcasting Corporation (UBC) **Opinion** Qualified", "\u2022 In the Statement of financial position Plant, Property and Equipment was stated at UGX.265,192,130,135 as at 30th June 2019; however, these were last revalued 10 years ago. Failure to revalue implies that assets are not carried at fair value as stated in the financial statements. Property, Plant and Equipment are not fairly stated in the financial statements and are thus misleading. \u2022 I noted that the Corporation has not yet recovered the land title for land along Bugolobi \u2013 Faraday Rd. valued at UGX.70,545,000,000. The continued failure to retrieve the title exposes the land to a risk of other unscrupulous deals. \u2022 I noted that, although Mega FM acquired an Antenna system with its accessories worth UGX.48,958,174, this was not reported in the schedule of plant, property and equipment under note 6. Therefore the entity understated its value of Property, Plant and Equipment by the amount not recognized. \u2022 Note 14 of the financial statements shows trade & other receivables as UGX.26,516,683,955. However, I noted that management assigned two companies to undertake debt recovery during the year under review. However, three months after the award, only UGX.44,000,000 of the outstanding amount had been recovered and UGX.10,187,320,000 was rejected by the debtors. As such, the uncertainty surrounding the recoverability of the debts implies that the reported receivables figure may be over-stated. \u2022 Contrary to Section 10.21.12 of the Treasury Instructions 2017 advances totalling to UGX.62,246,400 lacked accountability documents. As such, I was unable to confirm that the funds were properly utilized or expended for lawful purposes. \u2022 Contrary to IAS 1, I observed that management did not recognize intangible assets as a separate line on the face of the financial statements despite having new software like the broadcasting and accounting software in use."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 194, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY", "SUMMARY OF KEY FINDINGS \u2022 UPL has outstanding payables worth UGX.762,997,478 (2% of its Gross Annual Revenue) not remitted to Uganda Communications Commission as operator\u2019s license. \u2022 There was an increase in Posta Uganda Limited\u2019s receivables of UGX.3,191,559,290 representing and 29% increase to UGX.11,047,099,610 from UGX.7,855,540,320 in the FY 2017/18. \u2022 UPL has Stamp Stock Inventory worth UGX.4,360,104,970 which are slow moving items, of which some stamps were purchased thirty (30) years ago. There is evidence of impairment of this amount, given the current technological developments extinguishing usage of stamps. \u2022 The entity spent UGX.2,224,343,116 on Insurance, professional and legal costs which was above the approved budget of UGX.705, 815,212 leading to an over expenditure of UGX.1,718,183,984, without proper approval. \u2022 During my inspection of the Company properties at its Head Office and Postel building on 30th June 2019, I noted that rentable space totalling to 1,189 square metres at the two properties remained vacant for over twelve (12) months during which time, the company could have earned UGX.1,012,140,000."], "type": "table"}}, {"content": "181", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 194, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["7", "Regional Communications Development Project (RCIP) **Opinion** Unqualified", "\u2022 Whereas an amount of UGX.97,710,306,720 was budgeted to be received as revenue during the year under review, only UGX.75,312,215,910 was actually received during the year, resulting into a funding gap of UGX.22,398,090,810 (23%). The funding gap presents a risk of the project failing to be completed on time and a possible increase in project implementation costs as a result of low absorption of funds. \u2022 However, out of the total funds amounting to UGX.107,869,359,797, which was available for expenditure, only UGX.64,917,348,749 was spent leaving a balance of UGX.44,324,275,595 unspent as at the end of the financial year (i.e. 41% utilization). Further analysis of project implementation revealed that there has been a slow pace of implementation of the project activities given the level of absorption. \u2022 I noted that a total of UGX.915,676,018 was charged on the GOU counterpart funding for RCIP code and spent towards the settlement of relocation works on the NBI/EGI done in the previous year. The NBI/EGI is a stand-alone project that deals with the extension of the optic fibre network countrywide. Besides, these payables were not disclosed in the financial statements of NITA (U) for the previous financial year, which would provide a basis for such payments."], ["8", "National Information Technology Authority (NITA-U) **Opinion** Unqualified", "\u2022 Out of the approved warrants of UGX.41,527,986,626, the entity utilized only UGX.39,621,565,081 or 40,931,800,767 resulting in UGX.1,754,770,027 remaining utilized. Budget shortfalls and failure to spend funds resulted in partial or non-implementation of planned activities; \u2022 Review of the planned outputs and actual outputs achieved in the financial year revealed that a number of outputs were not fully implemented despite the fact the all funds budgeted had been realised. These planned outputs included; a rationalized and integrated national IT infrastructure and systems, IT Research, Development and Innovations Supported and Promoted and Strengthened and aligned NITA-U to deliver its mandate; \u2022 The Authority is responsible for the implementation of the Business Process Outsourcing (BPO) and Information Technology Enabled Services (ITES) strategy. However, the BPO/ITES adopted by the government had not been integrated into the current strategic plan of the Authority. \u2022 I also noted that the Authority has only supported 4 private BPOs through the provision of ICT equipment, furniture, and subsidized internet bandwidth for 3 of the 4 BPOs. However, the performance of these BPOs has been unsatisfactory considering the fact that these BPOs have only created a limited number of jobs for the youth most of which is on a short term basis and also failed to attract a reasonable number of clientele both within and outside the country. \u2022 Contrary to Section 13(10) (a) (iv) of the Public Finance Management Act, 2015, the Authority did not make sufficient budgetary provisions for domestic arrears. The Authority was provided with UGX.985,195,195 for payment of domestic arrears despite reported outstanding liabilities at the end of FY2017/18 stood at UGX.7,920,511,819. Instead the Authority diverted funds"]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 195, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY", "SUMMARY OF KEY FINDINGS \u2022 It was noted that trade and other payables increased by 1.7% from UGX.51,679,775,416 in 2018 to UGX.52,605,641,714 in the current year 2019. The Corporation is potentially faced with a risk of litigation over nonpayment. Further analysis revealed that the bulk of the payables relate to unremitted taxes and statutory deductions. \u2022 Although the Corporation had budgeted to receive UGX.1 billion as budget support from the Ministry of Finance, Planning and Economic Development to cater for both recurrent and capital expenditure, the entity did not receive any funding from government during the financial year under review. \u2022 UBC does not have a mechanism to monitor which adverts were run and for how long, making reconciliations and audit difficult. This can lead to revenue leakages as some adverts may be aired but not billed. \u2022 The Digital Terrestrial television equipment on the SIGNET network is four years old and has almost exhausted its product life cycle, and UBC management does not have a well-laid down plan to replace the equipment. Current installations limited the network coverage to less than 60% of the country. Users in rural and semi-rural areas are completely un-served or have very weak signals."], "type": "table"}}, {"content": [["7", "Regional Communications Development Project (RCIP) **Opinion** Unqualified", "\u2022 Whereas an amount of UGX.97,710,306,720 was budgeted to be received as revenue during the year under review, only UGX.75,312,215,910 was actually received during the year, resulting into a funding gap of UGX.22,398,090,810 (23%). The funding gap presents a risk of the project failing to be completed on time and a possible increase in project implementation costs as a result of low absorption of funds. \u2022 However, out of the total funds amounting to UGX.107,869,359,797, which was available for expenditure, only UGX.64,917,348,749 was spent leaving a balance of UGX.44,324,275,595 unspent as at the end of the financial year (i.e. 41% utilization). Further analysis of project implementation revealed that there has been a slow pace of implementation of the project activities given the level of absorption. \u2022 I noted that a total of UGX.915,676,018 was charged on the GOU counterpart funding for RCIP code and spent towards the settlement of relocation works on the NBI/EGI done in the previous year. The NBI/EGI is a stand-alone project that deals with the extension of the optic fibre network countrywide. Besides, these payables were not disclosed in the financial statements of NITA (U) for the previous financial year, which would provide a basis for such payments."], ["8", "National Information Technology Authority (NITA-U) **Opinion** Unqualified", "\u2022 Out of the approved warrants of UGX.41,527,986,626, the entity utilized only UGX.39,621,565,081 or 40,931,800,767 resulting in UGX.1,754,770,027 remaining utilized. Budget shortfalls and failure to spend funds resulted in partial or non-implementation of planned activities; \u2022 Review of the planned outputs and actual outputs achieved in the financial year revealed that a number of outputs were not fully implemented despite the fact the all funds budgeted had been realised. These planned outputs included; a rationalized and integrated national IT infrastructure and systems, IT Research, Development and Innovations Supported and Promoted and Strengthened and aligned NITA-U to deliver its mandate; \u2022 The Authority is responsible for the implementation of the Business Process Outsourcing (BPO) and Information Technology Enabled Services (ITES) strategy. However, the BPO/ITES adopted by the government had not been integrated into the current strategic plan of the Authority. \u2022 I also noted that the Authority has only supported 4 private BPOs through the provision of ICT equipment, furniture, and subsidized internet bandwidth for 3 of the 4 BPOs. However, the performance of these BPOs has been unsatisfactory considering the fact that these BPOs have only created a limited number of jobs for the youth most of which is on a short term basis and also failed to attract a reasonable number of clientele both within and outside the country. \u2022 Contrary to Section 13(10) (a) (iv) of the Public Finance Management Act, 2015, the Authority did not make sufficient budgetary provisions for domestic arrears. The Authority was provided with UGX.985,195,195 for payment of domestic arrears despite reported outstanding liabilities at the end of FY2017/18 stood at UGX.7,920,511,819. Instead the Authority diverted funds"]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 195, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY", "SUMMARY OF KEY FINDINGS \u2022 It was noted that trade and other payables increased by 1.7% from UGX.51,679,775,416 in 2018 to UGX.52,605,641,714 in the current year 2019. The Corporation is potentially faced with a risk of litigation over nonpayment. Further analysis revealed that the bulk of the payables relate to unremitted taxes and statutory deductions. \u2022 Although the Corporation had budgeted to receive UGX.1 billion as budget support from the Ministry of Finance, Planning and Economic Development to cater for both recurrent and capital expenditure, the entity did not receive any funding from government during the financial year under review. \u2022 UBC does not have a mechanism to monitor which adverts were run and for how long, making reconciliations and audit difficult. This can lead to revenue leakages as some adverts may be aired but not billed. \u2022 The Digital Terrestrial television equipment on the SIGNET network is four years old and has almost exhausted its product life cycle, and UBC management does not have a well-laid down plan to replace the equipment. Current installations limited the network coverage to less than 60% of the country. Users in rural and semi-rural areas are completely un-served or have very weak signals."], "type": "table"}}, {"content": "182", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 195, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["9", "Uganda Communication Employees Contributory Pension Scheme (UCECPS) **Opinion** Qualified", "\u2022 Sundry payables of UGX.4,083,866,000 mainly comprising of administrative fees and monthly pensions were not supported rendering them doubtful. The figure increased by UGX.3,476,332,000 from UGX.607,534,000 reported on 31st December, 2017 representing a 672% increase. \u2022 There was an unreconciled variance UGX.3,049,947,551 between the figure reported in the financial statements as receivables. Whereas UCECPS puts the figure at UGX.15,256,523,000 the corresponding reported payables figure in the financial records of UTL is UGX.12,206,575,449. \u2022 Property debtors amounting to UGX.42,377,000 arising from the sale of properties to sitting tenants remains outstanding from as far back as 2005. \u2022 A detailed review of the Scheme\u2019s financial records revealed that Government of Uganda (GoU) as the founder has not funded the scheme to sustainable levels. Over the years Government has been contributing an average of UGX.2bn to meet the monthly pension requirements; however, huge arrears due to retired employees exist. \u2022 Contrary to section 46(d) of the Uganda Retirement Benefits Regulatory Act (URBRA) 2011, I noted that the Scheme administration failed to maintain complete records of the beneficiaries to the scheme as some of the required information was missing."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 196, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY", "SUMMARY OF KEY FINDINGS amounting to UGX.4,789,899,855 from other activities and paid for domestic arrears amounting to UGX.5,775,095,049. \u2022 I conducted a thematic audit on the National Backbone Infrastructure/Electronic Government Infrastructure (NBI/EGI) project where I reviewed the operations of the NBI/EGI. The following are the key findings; \u2022 It was noted that a total of 445 sites out of the envisaged 20,000 are connected to the NBI, Of the connected sites, 369 are using the related services while 76 sites which are connected to the NBI are not utilising the available services. \u2022 NITA-U spent UGX.1,047,480,000 on last-mile connection infrastructure to 76 sites. However, by the time of the audit these sites were not utilizing the NBI services. Relatedly a total of UGX.25,019,756,118 was in the FY 17/18 and 18/19 used by MDAs connected to the NBI to pay for alternative internet bandwidth service providers, a cost which could have been saved. \u2022 Government of Uganda has so far invested USD.12,410,794 on setting up a national data centre. Currently, 82 out of 342 government online applications are using the data centre services. It should be noted that running parallel data centres is costly for the Government due to the duplication of costs. Currently, only 40% of the available data centre capacity is being utilized. \u2022 NITA-U has so far laid 2,324 Km of optic fibre cable under phase I-III. Currently, Phase IV expected to extend the network to West-Nile and three border towns is underway. However, a number of last-mile connections have not been done hence the low numbers in connectivity. Most parts of the North and North East have not been covered due to lack of financing and will be covered under phase V. \u2022 NITA-U procured 10Gbps upstream internet bandwidth under an indefeasible right to use arrangement. Currently, 50% of this capacity is commercially utilised with the rest offered as free WiFi. This has contributed to the high cost of the internet bandwidth as the sites which use the 50% subsidise the WiFi offered for free. \u2022 NITA-U buys upstream internet bandwidth at a cost of USD.2.6 Mbps per month and sells to users at a cost of USD.70 Mbps per month. The cost is still high partly due to the underutilisation referred to above, maintenance costs and the high cost for the upstream bandwidth. However, it should also be noted that 50% of this cost is transferred to the UCF as Non-Tax Revenue. \u2022 NITA-U agreed to provide connectivity at 99.8% availability to users. Review of the availability status revealed that 38 sites out of a total of 101 sites reviewed were below the Service Level Agreement (SLA) of 99.8%. The causes of the non-availability of services were attributed to power outages which contributed to 86.84% and fibre breaks which contributed to 31.16%."], "type": "table"}}, {"content": "183", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 196, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["", "**TRADE SECTOR**", ""], ["1", "Ministry of Trade, Industries and Cooperatives (MoTIC) **Opinion** Unqualified", "\u2022 The entity budgeted to receive UGX. 108,257,632,666 however UGX. 98,876,992,658 was warranted resulting into a budget shortfall of UGX.9,380,640,008 representing 9%. \u2022 Out of the warrants of UGX. 98,876,992,658, a total of UGX98,029,255,348 was spent by the entity resulting into unspent balance of UGX.847,737,310 representing an absorption level of 99%. \u2022 I sampled 32 out-puts worth UGX.31.03 billion representing 93% of the total budget and noted that 40 (15%) of the total outputs were not quantified to enable measurement of performance. Furthermore, of the 21 quantified outputs/activities assessed, 10 outputs/activities representing 48% were fully implemented; 12 output/activity representing 52% was partially implemented. \u2022 Funds amounting to UGX.76,472,123 were irregularly diverted and spent on other activities without seeking the necessary approvals. \u2022 Domestic arrears decreased by 14.2% from UGX.12,182,787,099 in the previous year to UGX.10,672,156,193 in the year under review. The arrears remained unsettled at the close of the year. \u2022 Settlement of arrears amounting to UGX.254,824,538 outstanding from prior year (2017/18) were undertaken without allocated budget. \u2022 I noted inflated claims verified for payment to two (2) Cooperatives amounting to UGX.14,772,514,880. Although the two cooperatives claimed UGX.16,613,290,400 as compensation for losses incurred during the liberation war, a verification committee instead verified and approved an amount of UGX.31,385,805,280. A number of irregularities were noted in the verified claims, like values not supported with Chief Government valuer\u2019s and Chief mechanical engineer\u2019s values. Cattle claims were also not supported with evidence in form of stock counts, financial statements, sales ledgers and a report from the Directorate of Animal Resources in the Ministry of Agriculture as required by the verification guidelines. \u2022 Shortcomings were noted in the implementation of the provisions in the Circular Standing Instructions on Staff Performance Management. The gaps identified include non-completion of Performance Agreements, no quarterly reviews undertaken, no performance improvement plans prepared, non-submission of reports on Performance Agreements, Performance Appraisals, Performance Improvement Plans to MoPS and lack of mechanism to monitor staff attendance. \u2022 Tobacco Companies owed growers over UGX.9billions which is likely to affect the livelihoods of the farmers and demoralizes them from growing the crop in subsequent seasons."], ["2", "Switch Africa Green project (SAG) **Opinion** Unqualified", "\u2022 The project had a shortfall in funding of USD 40,000 which arose as a result because failure the ministry of trade, industries and cooperatives failed to fund the requisite activities of milestone 3 agreed upon in the grant agreement. \u2022 The project management spent a total amount of UGX 266,725,428 on administrative expenses which was over and above the set limit of 7% of the total eligible cost of action (UGX .46,564,000) by UGX 210,161,328."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 197, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY", "SUMMARY OF KEY FINDINGS \u2022 I noted that eleven (11) properties disclosed as part of the non-core assets were are not valued. This implies that the non-current assets of the Scheme are understated and failure to value them will make the sale of these properties difficult."], "type": "table"}}, {"content": [["", "**TRADE SECTOR**", ""], ["1", "Ministry of Trade, Industries and Cooperatives (MoTIC) **Opinion** Unqualified", "\u2022 The entity budgeted to receive UGX. 108,257,632,666 however UGX. 98,876,992,658 was warranted resulting into a budget shortfall of UGX.9,380,640,008 representing 9%. \u2022 Out of the warrants of UGX. 98,876,992,658, a total of UGX98,029,255,348 was spent by the entity resulting into unspent balance of UGX.847,737,310 representing an absorption level of 99%. \u2022 I sampled 32 out-puts worth UGX.31.03 billion representing 93% of the total budget and noted that 40 (15%) of the total outputs were not quantified to enable measurement of performance. Furthermore, of the 21 quantified outputs/activities assessed, 10 outputs/activities representing 48% were fully implemented; 12 output/activity representing 52% was partially implemented. \u2022 Funds amounting to UGX.76,472,123 were irregularly diverted and spent on other activities without seeking the necessary approvals. \u2022 Domestic arrears decreased by 14.2% from UGX.12,182,787,099 in the previous year to UGX.10,672,156,193 in the year under review. The arrears remained unsettled at the close of the year. \u2022 Settlement of arrears amounting to UGX.254,824,538 outstanding from prior year (2017/18) were undertaken without allocated budget. \u2022 I noted inflated claims verified for payment to two (2) Cooperatives amounting to UGX.14,772,514,880. Although the two cooperatives claimed UGX.16,613,290,400 as compensation for losses incurred during the liberation war, a verification committee instead verified and approved an amount of UGX.31,385,805,280. A number of irregularities were noted in the verified claims, like values not supported with Chief Government valuer\u2019s and Chief mechanical engineer\u2019s values. Cattle claims were also not supported with evidence in form of stock counts, financial statements, sales ledgers and a report from the Directorate of Animal Resources in the Ministry of Agriculture as required by the verification guidelines. \u2022 Shortcomings were noted in the implementation of the provisions in the Circular Standing Instructions on Staff Performance Management. The gaps identified include non-completion of Performance Agreements, no quarterly reviews undertaken, no performance improvement plans prepared, non-submission of reports on Performance Agreements, Performance Appraisals, Performance Improvement Plans to MoPS and lack of mechanism to monitor staff attendance. \u2022 Tobacco Companies owed growers over UGX.9billions which is likely to affect the livelihoods of the farmers and demoralizes them from growing the crop in subsequent seasons."], ["2", "Switch Africa Green project (SAG) **Opinion** Unqualified", "\u2022 The project had a shortfall in funding of USD 40,000 which arose as a result because failure the ministry of trade, industries and cooperatives failed to fund the requisite activities of milestone 3 agreed upon in the grant agreement. \u2022 The project management spent a total amount of UGX 266,725,428 on administrative expenses which was over and above the set limit of 7% of the total eligible cost of action (UGX .46,564,000) by UGX 210,161,328."], ["3", "Great Lakes Trade Facilitation (GLTF) Project **Opinion** Unqualified", "\u2022 I noted that out of the USD.1,650,252.93 (approximately UGX.6,062,070,722) that was available for spending by the project, only USD.819,070.35 was utilized representing 49.6% absorption and as a result, some activities were not implemented. \u2022 Records indicate that although some outputs and activities were undertaken, I noted slow progress in the implementation of these activities. It was evident that the project is far from accomplishing the proposed work plan and the implementation timeframe. \u2022 Section 3.1 of the Project Implementation Manual states that counterpart financing of an estimated USD.3 Million shall be provided by the Government of Uganda for compensations and management of environmental mitigation measures. It was however noted that GOU had not contributed towards the implementation of the project activities."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 197, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY", "SUMMARY OF KEY FINDINGS \u2022 I noted that eleven (11) properties disclosed as part of the non-core assets were are not valued. This implies that the non-current assets of the Scheme are understated and failure to value them will make the sale of these properties difficult."], "type": "table"}}, {"content": "184", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 197, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["5", "Uganda Export Promotions Board (UEPB) **Opinion** Unqualified", "\u2022 Uganda Export Promotion Board risks losing 1.622 hectares located on Plot 4, Mpanga link Kampala which was sub-leased to a private investor for 49 years for construction of an export development centre and an administration building. The investor failed to construct the Centre, has denied UEPB access to the land and refused to hand over the land title 7 years after terminating the sub-lease offer. \u2022 Promotion and Development of export is a key function of the UEPB. However, reports indicate that there is deterioration in exports leading to a widening export deficit of USD.437m in 2015/16, USD.1.55bn in 2016/17 and USD.1.95bn in 2017/18. \u2022 Contrary to the provisions of the PFMA 2015, the UEPB received and utilized a grant of USD.249,823 from African Development Bank for the Korea Market Linked project without appropriation by Parliament. \u2022 Contrary to Section 7 of the UEPB Act, the Board of UEPB is currently made up of eight (8) instead of the eleven (11) members provided for in the Act. \u2022 The Boards staffing level stands at 17 staff out of the approved 40 indicating a 57.5% staffing gap. Included in the unfilled posts are key positions of the Director Export Markets Development & Promotions and the Director Finance and Administration."], ["6", "Uganda National Bureau of Standards (UNBS) **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.2,484,092,280 representing 5.2% of the budget. This limited the Bureaus capacity to fully implement all the planned activities. \u2022 I sampled 11 out-puts worth UGX.47.8bn representing 100% of the total budget and noted that 2 (18%) of the total outputs were not quantified to enable measurement of performance. Furthermore, of the 9 quantified outputs/activities assessed, 5 outputs/activities representing 55% were fully implemented; 4 outputs/activities representing 45% were partially implemented. \u2022 I noted that the entity received off-budget financing to the tune of UGX.366,860,012 which was never paid into the consolidated fund as required by the law. \u2022 Funds amounting to UGX.296,065,498 was disclosed as the domestic arrears of the Bureau as at 30th June 2018. However, these domestic arrears were not budgeted for in the financial year 2018/19. \u2022 Domestic arrears increased by 1368% from, UGX.296,065,498 in the previous year to UGX.4,347,000,575 in the year under review. The arrears remained unsettled at the close of the year. \u2022 I noted that UGX.1,283,000,000 was not collected by the Bureau while conducting its surveillance audits after issuing permits to use the \u2018Q\u2019 mark when management reduced the audit fees from UGX.1,000,000 within Kampala and UGX.1,500,000 upcountry to UGX.250,000 for both within Kampala and upcountry due to BUBU policy. \u2022 I noted that some commodities were released by the Bureau due to absence of mandatory standards yet they actually existed in the approved list of mandatory standards issued by the Bureau as at 31st March 2019."], ["7", "Uganda Development Corporation (UDC) **Opinion** Unqualified", "\u2022 Contrary section 17 of the PFMA 2015, UGX.13,323,008,856 that remained unspent at the close of 2017/18 and UGX.12,178,595,290 that remained unspent at the close of FY 18/19 was not returned to Treasury. \u2022 In the FY 2018/2019 UGX.58,704,737,488 was released to UDC. The entity had a cash balance brought forward of UGX.13,323,008,856 from FY 2017/2018 making total cash available for spending in FY 18/19 UGX.72,027,746,344. Of the total cash available to spend, UGX.59,849,151,054 was actually spent leaving a balance of UGX.12,178,595,290 (19.3%) as"]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 198, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn 4", "SECTOR AND ENTITY  The Second Trade Capacity Enhancement Project (TRACE II) Opinion Unqualified", "SUMMARY OF KEY FINDINGS \u2022 Inadequate utilisation of the Consultancy Report.  \u2022 Unsupported Government Contribution in-kind - UGX.260,352,000  \u2022 Delayed implementation of Some Project Activities like printing of Sale of Goods Act, purchase of equipment and computer as well as printing of the annual trade report were not implemented."], "type": "table"}}, {"content": [["5", "Uganda Export Promotions Board (UEPB) **Opinion** Unqualified", "\u2022 Uganda Export Promotion Board risks losing 1.622 hectares located on Plot 4, Mpanga link Kampala which was sub-leased to a private investor for 49 years for construction of an export development centre and an administration building. The investor failed to construct the Centre, has denied UEPB access to the land and refused to hand over the land title 7 years after terminating the sub-lease offer. \u2022 Promotion and Development of export is a key function of the UEPB. However, reports indicate that there is deterioration in exports leading to a widening export deficit of USD.437m in 2015/16, USD.1.55bn in 2016/17 and USD.1.95bn in 2017/18. \u2022 Contrary to the provisions of the PFMA 2015, the UEPB received and utilized a grant of USD.249,823 from African Development Bank for the Korea Market Linked project without appropriation by Parliament. \u2022 Contrary to Section 7 of the UEPB Act, the Board of UEPB is currently made up of eight (8) instead of the eleven (11) members provided for in the Act. \u2022 The Boards staffing level stands at 17 staff out of the approved 40 indicating a 57.5% staffing gap. Included in the unfilled posts are key positions of the Director Export Markets Development & Promotions and the Director Finance and Administration."], ["6", "Uganda National Bureau of Standards (UNBS) **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.2,484,092,280 representing 5.2% of the budget. This limited the Bureaus capacity to fully implement all the planned activities. \u2022 I sampled 11 out-puts worth UGX.47.8bn representing 100% of the total budget and noted that 2 (18%) of the total outputs were not quantified to enable measurement of performance. Furthermore, of the 9 quantified outputs/activities assessed, 5 outputs/activities representing 55% were fully implemented; 4 outputs/activities representing 45% were partially implemented. \u2022 I noted that the entity received off-budget financing to the tune of UGX.366,860,012 which was never paid into the consolidated fund as required by the law. \u2022 Funds amounting to UGX.296,065,498 was disclosed as the domestic arrears of the Bureau as at 30th June 2018. However, these domestic arrears were not budgeted for in the financial year 2018/19. \u2022 Domestic arrears increased by 1368% from, UGX.296,065,498 in the previous year to UGX.4,347,000,575 in the year under review. The arrears remained unsettled at the close of the year. \u2022 I noted that UGX.1,283,000,000 was not collected by the Bureau while conducting its surveillance audits after issuing permits to use the \u2018Q\u2019 mark when management reduced the audit fees from UGX.1,000,000 within Kampala and UGX.1,500,000 upcountry to UGX.250,000 for both within Kampala and upcountry due to BUBU policy. \u2022 I noted that some commodities were released by the Bureau due to absence of mandatory standards yet they actually existed in the approved list of mandatory standards issued by the Bureau as at 31st March 2019."], ["7", "Uganda Development Corporation (UDC) **Opinion** Unqualified", "\u2022 Contrary section 17 of the PFMA 2015, UGX.13,323,008,856 that remained unspent at the close of 2017/18 and UGX.12,178,595,290 that remained unspent at the close of FY 18/19 was not returned to Treasury. \u2022 In the FY 2018/2019 UGX.58,704,737,488 was released to UDC. The entity had a cash balance brought forward of UGX.13,323,008,856 from FY 2017/2018 making total cash available for spending in FY 18/19 UGX.72,027,746,344. Of the total cash available to spend, UGX.59,849,151,054 was actually spent leaving a balance of UGX.12,178,595,290 (19.3%) as"]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 198, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn 4", "SECTOR AND ENTITY  The Second Trade Capacity Enhancement Project (TRACE II) Opinion Unqualified", "SUMMARY OF KEY FINDINGS \u2022 Inadequate utilisation of the Consultancy Report.  \u2022 Unsupported Government Contribution in-kind - UGX.260,352,000  \u2022 Delayed implementation of Some Project Activities like printing of Sale of Goods Act, purchase of equipment and computer as well as printing of the annual trade report were not implemented."], "type": "table"}}, {"content": "185", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 198, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["", "**TOURISM SECTOR**", ""], ["1", "Ministry of Tourism, Wildlife and Antiquities (MoTWA) **Opinion** Unqualified", "\u2022 I noted that during the year, the Ministry received total budgeted salaries of UGX. 2,085,603,788 but actual payments were UGX. 1,987,160,730 leaving unspent balances of UGX.98,443,058 on the salary account. \u2022 I assessed 30 out-puts and noted that 24 outputs/activities representing 80% were fully implemented; 3 outputs/activities representing 10% were partially implemented while 3 outputs/activities representing 10% were not implemented at all. \u2022 Review of the Ministry\u2019s procurement plan revealed that several planned procurements to the tune of UGX.280,125,000 were not implemented. \u2022 Domestic arrears decreased by UGX. 364,040,484 from UGX. 3,270,386,921 in the previous year to UGX. 2,906,346,437 in the year under review. The arrears remained unsettled at the close of the year. \u2022 I observed that, although disclosed as expenditure in the statement of financial performance, funds for activities relating to workshops and conferences, fuel and purchase of goods and services totalling to UGX.55,460,000 were not accounted for. \u2022 Shortcomings were noted in the implementation of the provisions in the circular standing instructions on staff performance management. The gaps identified include non-submission of Performance Agreement reports, no quarterly reviews undertaken, no performance improvement plans prepared and no performance Improvement Plans prepared."], ["2", "Nile Hotel Limited (NHL) **Opinion** Unqualified", "\u2022 Evaluation of the implementation of planned activities for the FY 18/19 revealed that over 80% of the planned activities were not undertaken exposing the company to the risk of failing to achieve the strategic goals set for the five years\u2019 period. All the funds earmarked for the activities were invested in short term instruments to earn interest."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 199, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY", "SUMMARY OF KEY FINDINGS unspent funds. The Corporation continues to have implementation challenges that have led to the poor absorption of funds. \u2022 Despite government spending over UGX.130bn on several projects since 2012, none is fully operational as a result of various bottlenecks hindering full operations. There is a need to rethink the financing, implementation and future management strategies of these investments."], "type": "table"}}, {"content": [["", "**TOURISM SECTOR**", ""], ["1", "Ministry of Tourism, Wildlife and Antiquities (MoTWA) **Opinion** Unqualified", "\u2022 I noted that during the year, the Ministry received total budgeted salaries of UGX. 2,085,603,788 but actual payments were UGX. 1,987,160,730 leaving unspent balances of UGX.98,443,058 on the salary account. \u2022 I assessed 30 out-puts and noted that 24 outputs/activities representing 80% were fully implemented; 3 outputs/activities representing 10% were partially implemented while 3 outputs/activities representing 10% were not implemented at all. \u2022 Review of the Ministry\u2019s procurement plan revealed that several planned procurements to the tune of UGX.280,125,000 were not implemented. \u2022 Domestic arrears decreased by UGX. 364,040,484 from UGX. 3,270,386,921 in the previous year to UGX. 2,906,346,437 in the year under review. The arrears remained unsettled at the close of the year. \u2022 I observed that, although disclosed as expenditure in the statement of financial performance, funds for activities relating to workshops and conferences, fuel and purchase of goods and services totalling to UGX.55,460,000 were not accounted for. \u2022 Shortcomings were noted in the implementation of the provisions in the circular standing instructions on staff performance management. The gaps identified include non-submission of Performance Agreement reports, no quarterly reviews undertaken, no performance improvement plans prepared and no performance Improvement Plans prepared."], ["2", "Nile Hotel Limited (NHL) **Opinion** Unqualified", "\u2022 Evaluation of the implementation of planned activities for the FY 18/19 revealed that over 80% of the planned activities were not undertaken exposing the company to the risk of failing to achieve the strategic goals set for the five years\u2019 period. All the funds earmarked for the activities were invested in short term instruments to earn interest."], ["3", "Uganda Wildlife Research and Training Institute (UWRTI) **Opinion** Unqualified", "\u2022 The Institute received an extra subvention of UGX.113,835,000 that was not approved by parliament. \u2022 I sampled all 17 out-puts worth UGX.1.1bn representing 100% of the total budget and noted that of the 17 quantified outputs/activities assessed, 7 outputs/activities representing 41% were fully implemented; 5 outputs/activities representing 29.5% were partially implemented while 5 outputs/activities representing 29.5% were not implemented at all. \u2022 Shortcomings were noted in the implementation of the provisions in the circular standing instructions on staff performance management. The gaps identified include non-completion of Performance Agreements, no quarterly reviews undertaken, no performance improvement plans prepared and no performance appraisals. \u2022 Inspections of the Institute infrastructure were carried out and audit noted several dilapidated dormitories, inadequate dormitories as well as classrooms. \u2022 I also noted several procurement irregularities that manifest in direct procurements that resulted from lack of a procurement unit as well as lack of a contracts committee at the Institute."], ["4", "Uganda Wildlife Education Centre (UWEC) **Opinion** Unqualified", "\u2022 I observed that contract of UGX.196,000,000 to provide Consultancy Services for undertaking feasibility studies for establishment of Satellite Wild life Conservation Education Centres in Fort Portal, Mbale and Mbarara had been signed. However, I established that all the Regional Satellite Wildlife Conservation Education Centers have not been established for the reason of insufficient development funds from government. \u2022 I noted that during the financial year 2018/19, a contract worth UGX.196,030,000 was signed with an Engineering firm to complete the external features of the First floor of the floating"]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 199, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY", "SUMMARY OF KEY FINDINGS unspent funds. The Corporation continues to have implementation challenges that have led to the poor absorption of funds. \u2022 Despite government spending over UGX.130bn on several projects since 2012, none is fully operational as a result of various bottlenecks hindering full operations. There is a need to rethink the financing, implementation and future management strategies of these investments."], "type": "table"}}, {"content": "186", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 199, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["5", "Uganda Hotel Tourism and Training Institute (UHTTI) **Opinion** Unqualified", "\u2022 Uganda Hotel and Tourism Training Institute last updated its fixed asset register in 2016. This exposes the Institute assets to misappropriation without notice. \u2022 I noted that out of the budgeted revenue of UGX.2,706,485,996 for the year 2018/19, only UGX.2,596,094,380 was collected representing performance of 92% of the target. \u2022 I noted that that the entity did not implement activities as planned. Out of the 13 outputs assessed, 8 of them, representing 62%, were fully implemented, 2, representing 15%, were partially implemented while 3, representing 23%, were not implemented at all. \u2022 The Institute had outstanding local service tax (LST) amounting to UGX.71,279,520 as at 30th June 2019, which had not been remitted to the Local Governments. \u2022 The Institute made NSSF deductions amounting to UGX.77,315,112 which was not remitted to NSSF during the financial year. \u2022 Weaknesses were noted in performance management such as; lack of performance appraisal; absence of performance plans and lack of performance reviews by the Institute. \u2022 Audit inspection revealed poor maintenance of the Institute\u2019s infrastructure and facilities, lack of office, student and staff accommodation and insufficient classrooms."], ["6", "Uganda Tourism Board (UTB) **Opinion** Qualified", "\u2022 An analysis of the outputs/activities that were quantified revealed that although the entity absorbed (99%) of the funds that were released, some of the activities remained either partially or not implemented at all. Out of the twelve (12) quantified activities assessed, six (6) outputs/activities representing 50% were fully Implemented, five(5) outputs/ activities representing 42% were partially implemented while one(1) output/activities representing 8% were not implemented at all. \u2022 Contrary to the Section 85 of the PPDA Act, Uganda Tourism Board procured the services of two Market Destination Representatives to market Uganda as a tourist destination in North America using direct procurement without justification at a total cost of UGX.2,570,760,835. \u2022 Review of the Board\u2019s expenditure revealed that Contrary section 10.4 of the Treasury Instructions, in the year under review, the entity charged wrong expenditure codes to a tune of UGX.599,333,001. Mischarges undermine the importance of the budgeting process as well as the intentions of the appropriating authority, consequently leading to unauthorized spending and exposure of funds to misuse. \u2022 It was noted that a sum of UGX.248,029,240 was advanced to staff through their personal bank accounts to undertake direct procurements, purchase of goods and services and other activities of the entity. The practice of depositing public funds on personal accounts is irregular and exposes government funds to the risk of loss and misuse. \u2022 I noted that funds for activities relating to administrative expenses, travel abroad and purchase of goods and services including fuel totalling to UGX.0.339Bn were not accounted for by the close of the year. Under the circumstances, I was unable to provide assurance that the funds were put to proper use. \u2022 Contrary to section 13 of the Uganda Tourism Act, the Uganda Tourism Board failed to collect application and license fees from 52 registered tourist accommodation facilities as at 30th June 2019, leaving uncollected fees to the tune of UGX.15,600,000."], ["7", "Uganda Wildlife Authority (UWA) **Opinion** Unqualified", "\u2022 During the financial year, although the budgeted revenue for 2018/19, was UGX.78Bn the Authority realized UGX.120bn representing performance of 154% which was quite commendable. The Authority should ensure sustainability and enhance its revenue targets in future periods. \u2022 Imprest to staff totalling to UGX.213,222,896 was not supported by documents like field reports, acknowledgement receipts, and workshop participant\u2019s lists. In the circumstances, I could not confirm whether funds were put to the intended use. \u2022 The Authority pays fixed internet costs for data provided irrespective of whether or not the data has been consumed."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 200, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY", "SUMMARY OF KEY FINDINGS restaurant. It was however, noted that the construction of the second and third floors of the floating restaurant has stalled."], "type": "table"}}, {"content": [["5", "Uganda Hotel Tourism and Training Institute (UHTTI) **Opinion** Unqualified", "\u2022 Uganda Hotel and Tourism Training Institute last updated its fixed asset register in 2016. This exposes the Institute assets to misappropriation without notice. \u2022 I noted that out of the budgeted revenue of UGX.2,706,485,996 for the year 2018/19, only UGX.2,596,094,380 was collected representing performance of 92% of the target. \u2022 I noted that that the entity did not implement activities as planned. Out of the 13 outputs assessed, 8 of them, representing 62%, were fully implemented, 2, representing 15%, were partially implemented while 3, representing 23%, were not implemented at all. \u2022 The Institute had outstanding local service tax (LST) amounting to UGX.71,279,520 as at 30th June 2019, which had not been remitted to the Local Governments. \u2022 The Institute made NSSF deductions amounting to UGX.77,315,112 which was not remitted to NSSF during the financial year. \u2022 Weaknesses were noted in performance management such as; lack of performance appraisal; absence of performance plans and lack of performance reviews by the Institute. \u2022 Audit inspection revealed poor maintenance of the Institute\u2019s infrastructure and facilities, lack of office, student and staff accommodation and insufficient classrooms."], ["6", "Uganda Tourism Board (UTB) **Opinion** Qualified", "\u2022 An analysis of the outputs/activities that were quantified revealed that although the entity absorbed (99%) of the funds that were released, some of the activities remained either partially or not implemented at all. Out of the twelve (12) quantified activities assessed, six (6) outputs/activities representing 50% were fully Implemented, five(5) outputs/ activities representing 42% were partially implemented while one(1) output/activities representing 8% were not implemented at all. \u2022 Contrary to the Section 85 of the PPDA Act, Uganda Tourism Board procured the services of two Market Destination Representatives to market Uganda as a tourist destination in North America using direct procurement without justification at a total cost of UGX.2,570,760,835. \u2022 Review of the Board\u2019s expenditure revealed that Contrary section 10.4 of the Treasury Instructions, in the year under review, the entity charged wrong expenditure codes to a tune of UGX.599,333,001. Mischarges undermine the importance of the budgeting process as well as the intentions of the appropriating authority, consequently leading to unauthorized spending and exposure of funds to misuse. \u2022 It was noted that a sum of UGX.248,029,240 was advanced to staff through their personal bank accounts to undertake direct procurements, purchase of goods and services and other activities of the entity. The practice of depositing public funds on personal accounts is irregular and exposes government funds to the risk of loss and misuse. \u2022 I noted that funds for activities relating to administrative expenses, travel abroad and purchase of goods and services including fuel totalling to UGX.0.339Bn were not accounted for by the close of the year. Under the circumstances, I was unable to provide assurance that the funds were put to proper use. \u2022 Contrary to section 13 of the Uganda Tourism Act, the Uganda Tourism Board failed to collect application and license fees from 52 registered tourist accommodation facilities as at 30th June 2019, leaving uncollected fees to the tune of UGX.15,600,000."], ["7", "Uganda Wildlife Authority (UWA) **Opinion** Unqualified", "\u2022 During the financial year, although the budgeted revenue for 2018/19, was UGX.78Bn the Authority realized UGX.120bn representing performance of 154% which was quite commendable. The Authority should ensure sustainability and enhance its revenue targets in future periods. \u2022 Imprest to staff totalling to UGX.213,222,896 was not supported by documents like field reports, acknowledgement receipts, and workshop participant\u2019s lists. In the circumstances, I could not confirm whether funds were put to the intended use. \u2022 The Authority pays fixed internet costs for data provided irrespective of whether or not the data has been consumed."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 200, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY", "SUMMARY OF KEY FINDINGS restaurant. It was however, noted that the construction of the second and third floors of the floating restaurant has stalled."], "type": "table"}}, {"content": [["5", "Uganda Hotel Tourism and Training Institute (UHTTI) **Opinion** Unqualified", "\u2022 Uganda Hotel and Tourism Training Institute last updated its fixed asset register in 2016. This exposes the Institute assets to misappropriation without notice. \u2022 I noted that out of the budgeted revenue of UGX.2,706,485,996 for the year 2018/19, only UGX.2,596,094,380 was collected representing performance of 92% of the target. \u2022 I noted that that the entity did not implement activities as planned. Out of the 13 outputs assessed, 8 of them, representing 62%, were fully implemented, 2, representing 15%, were partially implemented while 3, representing 23%, were not implemented at all. \u2022 The Institute had outstanding local service tax (LST) amounting to UGX.71,279,520 as at 30th June 2019, which had not been remitted to the Local Governments. \u2022 The Institute made NSSF deductions amounting to UGX.77,315,112 which was not remitted to NSSF during the financial year. \u2022 Weaknesses were noted in performance management such as; lack of performance appraisal; absence of performance plans and lack of performance reviews by the Institute. \u2022 Audit inspection revealed poor maintenance of the Institute\u2019s infrastructure and facilities, lack of office, student and staff accommodation and insufficient classrooms."], ["6", "Uganda Tourism Board (UTB) **Opinion** Qualified", "\u2022 An analysis of the outputs/activities that were quantified revealed that although the entity absorbed (99%) of the funds that were released, some of the activities remained either partially or not implemented at all. Out of the twelve (12) quantified activities assessed, six (6) outputs/activities representing 50% were fully Implemented, five(5) outputs/ activities representing 42% were partially implemented while one(1) output/activities representing 8% were not implemented at all. \u2022 Contrary to the Section 85 of the PPDA Act, Uganda Tourism Board procured the services of two Market Destination Representatives to market Uganda as a tourist destination in North America using direct procurement without justification at a total cost of UGX.2,570,760,835. \u2022 Review of the Board\u2019s expenditure revealed that Contrary section 10.4 of the Treasury Instructions, in the year under review, the entity charged wrong expenditure codes to a tune of UGX.599,333,001. Mischarges undermine the importance of the budgeting process as well as the intentions of the appropriating authority, consequently leading to unauthorized spending and exposure of funds to misuse. \u2022 It was noted that a sum of UGX.248,029,240 was advanced to staff through their personal bank accounts to undertake direct procurements, purchase of goods and services and other activities of the entity. The practice of depositing public funds on personal accounts is irregular and exposes government funds to the risk of loss and misuse. \u2022 I noted that funds for activities relating to administrative expenses, travel abroad and purchase of goods and services including fuel totalling to UGX.0.339Bn were not accounted for by the close of the year. Under the circumstances, I was unable to provide assurance that the funds were put to proper use. \u2022 Contrary to section 13 of the Uganda Tourism Act, the Uganda Tourism Board failed to collect application and license fees from 52 registered tourist accommodation facilities as at 30th June 2019, leaving uncollected fees to the tune of UGX.15,600,000."], ["7", "Uganda Wildlife Authority (UWA) **Opinion** Unqualified", "\u2022 During the financial year, although the budgeted revenue for 2018/19, was UGX.78Bn the Authority realized UGX.120bn representing performance of 154% which was quite commendable. The Authority should ensure sustainability and enhance its revenue targets in future periods. \u2022 Imprest to staff totalling to UGX.213,222,896 was not supported by documents like field reports, acknowledgement receipts, and workshop participant\u2019s lists. In the circumstances, I could not confirm whether funds were put to the intended use. \u2022 The Authority pays fixed internet costs for data provided irrespective of whether or not the data has been consumed."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 200, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY", "SUMMARY OF KEY FINDINGS restaurant. It was however, noted that the construction of the second and third floors of the floating restaurant has stalled."], "type": "table"}}, {"content": "187", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 200, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["", "**WATER AND ENVIRONMENT SECTOR**", ""], ["1", "Ministry of Water and Environment (MWE) **Opinion** Unqualified", "\u2022 The total NTR collected for the financial year 2018/2019 amounting to UGX.1,040,014,136 was not budgeted for by the entity. \u2022 Out of the budgeted revenue of UGX.331,478,905,718 for the year 2018/19, only UGX.321,942,878,309 (97%) was warranted representing performance of 97% of the target. \u2022 Out of the total warrants of UGX.321,942,878,309, only UGX.320,751,299,475 was utilised by the ministry resulting into unspent balance of UGX.1,191,758,834 representing an absorption level of 99.63%."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 201, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY", "SUMMARY OF KEY FINDINGS \u2022 The Authority contracted a firm, on the 5th February 2019, to develop animal sculptures for the wildlife street within four (4) months at a cost of UGX.181,330,600, but this has not been done by 30th June 2019. \u2022 UWA awarded a contract for re-development of visitor information Centre at Sheraton Kampala Hotel to a company at a cost of UGX.348, 288,376. The works were scheduled to start on 24th July, 2018 and end on 24th January 2019. However despite a further 3 months extension to 24th April 2019, works had not been completed as at 30th June 2019. \u2022 Uganda Wildlife Authority awarded a contract for the supply and installation of signage along Entebbe \u2013 Kampala road to a company at a cost of UGX.74,635,000 on 18th June 2019. The signage was to be installed on strategic locations along the Kampala \u2013 Entebbe highway so as to promote tourism. This was not complete as at time of audit. \u2022 I observed that a number of Concessionaires had failed to develop the sites within the stipulated time and also failed to make the requisite payments worth UGX.1,097,787,944 as required in the concession agreements. \u2022 Physical inspections of operations in selected major National Parks namely Lake Mburo National Park, Bwindi impenetrable Forest, Queen Elizabeth, Kibale Conservation Area, Murchision Falls National Park, Mt. Elgon Conservation Area and Kidepo Valley National Park revealed a number of challenges faced by the Authority in execution of its mandate such as; \u2022 Lack of Utilities: There is lack of both electricity and Water supply which are critical for most of the parks. There is a very high cost of treatment for water utilized by the staff. Machines and Computers become expensive to use while running generators on a continuous basis, as the cost of fuel used on daily basis is high. \u2022 Poor Telephone Network: Poor telephone network not only affects communication but also has an impact on the Revenue collection systems as internet is intermittent for the use of Visa machines when collecting revenues. \u2022 Inadequate Staff Accommodation: Staff accommodation is a challenge in most of the National Parks and Conservation areas. Management has attempted to undertake construction in selected parks, but the challenge is still high given the increasing number of staff. \u2022 Poor Road Network: Road network around and within the park, is quite challenging. Most of the roads are in very bad shape throughout the conservation areas. This discourages tourists from making other visits due to difficulty in accessing the areas of interest at the National Parks and conservation areas. \u2022 Absence of Stores Function: All the Parks do not have well-developed stores function to manage stores. Accountants and clerks handle this responsibility, which may also create a conflict of interest due to lack of segregation of duties. \u2022 Absence of Human Resource Function: There is no human resource function in all the National Parks and Conservation areas and yet each of the National Parks has big numbers of staff. \u2022 Low Level Marketing and Publicity of Tourism Activity: I observed that the level of marketing and publicity of tourism activities in the country remains minimal. Increased publicity could attract both international and local tourism to the Conservation areas and national Parks."], "type": "table"}}, {"content": "188", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 201, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["2", "Water & Sanitation Development Facility \u2013 Eastern (WSDF-E) **Opinion** Unqualified", "\u2022 Out of the budgeted revenue of UGX.8,029,000,000, a sum of UGX.7,611,750,000 was realized leaving a shortfall of UGX.417,250,000. \u2022 Out of the 12 costed outputs assessed, 7 outputs were not fully implemented representing 58%. For example Construction of Acowa & Idudi Water Supply Systems were not implemented at all. \u2022 The Facility planned to procure consultants to carry out feasibility studies and designs for various projects, construct town water supply systems, and also procure providers for goods and services, but only 56% of these procurements were implemented leaving 44% of the procurements un-implemented. \u2022 The facility undertook various infrastructural projects which are at different stages of completion. However, no land agreements/titles were availed for audit verification."], ["3", "Water & Sanitation Development Facility - South West Branch (WSDF - SWB) \u2013 MWE **Opinion** Unqualified", "\u2022 Out of budgeted amount of UGX 13,640,000,000 a total of UGX 8397, 228,219 resulting into a shortfall of UGX 5,242,771,781 (40%). \u2022 The facility failed to implement planned activities including construction of water systems. \u2022 There were noticeable delays in completion of major infrastructural projects with some that commenced as far as December 2012 with the stipulated completion dates of 30th November 2017, still ongoing. \u2022 The facility undertook various infrastructural projects which are at different stages of completion. However, no land agreements/titles were availed for audit verification."], ["4", "REDD+ -MWE **Opinion** Unqualified", "\u2022 I observed that during the financial year (2018/2019), the project had approved budget of USD.1,849,700 from external funding and USD.804,054 from GOU, however, only USD.1,092,855 from external financing and USD.601,583 from GOU had been disbursed for project implementation representing an overall revenue performance of 63.8%. \u2022 Out of the total disbursement of USD.1,693,324, the project was able to absorb USD.1,669,382 resulting into unspent balance of USD.23, 942 representing absorption level of 98.5%. \u2022 I noted that despite receiving funds for activity implementation, activities under component 4: REDD+ implementation framework estimated at USD.570,000 remained un-implemented. \u2022 The Ministry on behalf of the REDD+ project signed two contracts for provision of consultancy services as part of execution of the planned activities for the year under, however I noted that the consultants had breached contract terms and had not yet completed the assignments."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 202, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY", "SUMMARY OF KEY FINDINGS \u2022 Out of the 16 quantified outputs/activities assessed, 7 outputs/activities representing 43.75% were partially implemented and one output representing 6.25% was not implemented at all. \u2022 Expenditures totalling to UGX.367,942,369 were mischarged on different account codes. \u2022 The Ministry delayed to settle invoices for various contractors leading to civil suits and award of interest totalling to UGX.164,949,978. \u2022 Funds amounting to UGX.136,244,476 paid to various staff remained unaccounted for. \u2022 Out of 706 approved staff positions, only 305 are filled representing 57% shortfall in the required staff. \u2022 In central water facility, interest income earned amounting to UGX.35,879,354 was not remitted to the consolidated fund while there was a delay in implementation of planned activities in the water facility of North and Karamoja small towns. \u2022 Shortcomings were noted in the implementation of the provisions in the circular standing instructions on staff performance management. The gaps identified include non-completion of Performance Agreements, no quarterly reviews undertaken, no performance improvement plans prepared, non-submission of reports on Performance Agreements, Performance Appraisals, Performance Improvement Plans to MoPS, lack of mechanism to monitor staff attendance, no mechanism of monitoring field staff and no register for staff when leaving office, non-submission of report on absenteeism and non-functionality of the sanctions and rewards committee."], "type": "table"}}, {"content": [["2", "Water & Sanitation Development Facility \u2013 Eastern (WSDF-E) **Opinion** Unqualified", "\u2022 Out of the budgeted revenue of UGX.8,029,000,000, a sum of UGX.7,611,750,000 was realized leaving a shortfall of UGX.417,250,000. \u2022 Out of the 12 costed outputs assessed, 7 outputs were not fully implemented representing 58%. For example Construction of Acowa & Idudi Water Supply Systems were not implemented at all. \u2022 The Facility planned to procure consultants to carry out feasibility studies and designs for various projects, construct town water supply systems, and also procure providers for goods and services, but only 56% of these procurements were implemented leaving 44% of the procurements un-implemented. \u2022 The facility undertook various infrastructural projects which are at different stages of completion. However, no land agreements/titles were availed for audit verification."], ["3", "Water & Sanitation Development Facility - South West Branch (WSDF - SWB) \u2013 MWE **Opinion** Unqualified", "\u2022 Out of budgeted amount of UGX 13,640,000,000 a total of UGX 8397, 228,219 resulting into a shortfall of UGX 5,242,771,781 (40%). \u2022 The facility failed to implement planned activities including construction of water systems. \u2022 There were noticeable delays in completion of major infrastructural projects with some that commenced as far as December 2012 with the stipulated completion dates of 30th November 2017, still ongoing. \u2022 The facility undertook various infrastructural projects which are at different stages of completion. However, no land agreements/titles were availed for audit verification."], ["4", "REDD+ -MWE **Opinion** Unqualified", "\u2022 I observed that during the financial year (2018/2019), the project had approved budget of USD.1,849,700 from external funding and USD.804,054 from GOU, however, only USD.1,092,855 from external financing and USD.601,583 from GOU had been disbursed for project implementation representing an overall revenue performance of 63.8%. \u2022 Out of the total disbursement of USD.1,693,324, the project was able to absorb USD.1,669,382 resulting into unspent balance of USD.23, 942 representing absorption level of 98.5%. \u2022 I noted that despite receiving funds for activity implementation, activities under component 4: REDD+ implementation framework estimated at USD.570,000 remained un-implemented. \u2022 The Ministry on behalf of the REDD+ project signed two contracts for provision of consultancy services as part of execution of the planned activities for the year under, however I noted that the consultants had breached contract terms and had not yet completed the assignments."], ["5", "Water Management and Development", "\u2022 There was an under absorption of project funds of USD 720,840.28 representing absorption level of 97.8%."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 202, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY", "SUMMARY OF KEY FINDINGS \u2022 Out of the 16 quantified outputs/activities assessed, 7 outputs/activities representing 43.75% were partially implemented and one output representing 6.25% was not implemented at all. \u2022 Expenditures totalling to UGX.367,942,369 were mischarged on different account codes. \u2022 The Ministry delayed to settle invoices for various contractors leading to civil suits and award of interest totalling to UGX.164,949,978. \u2022 Funds amounting to UGX.136,244,476 paid to various staff remained unaccounted for. \u2022 Out of 706 approved staff positions, only 305 are filled representing 57% shortfall in the required staff. \u2022 In central water facility, interest income earned amounting to UGX.35,879,354 was not remitted to the consolidated fund while there was a delay in implementation of planned activities in the water facility of North and Karamoja small towns. \u2022 Shortcomings were noted in the implementation of the provisions in the circular standing instructions on staff performance management. The gaps identified include non-completion of Performance Agreements, no quarterly reviews undertaken, no performance improvement plans prepared, non-submission of reports on Performance Agreements, Performance Appraisals, Performance Improvement Plans to MoPS, lack of mechanism to monitor staff attendance, no mechanism of monitoring field staff and no register for staff when leaving office, non-submission of report on absenteeism and non-functionality of the sanctions and rewards committee."], "type": "table"}}, {"content": "189", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 202, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["6", "Joint Partnership Fund (JPF) **Opinion** Unqualified", "\u2022 Out of the budgeted revenue of UGX.7,815,341,828 for the year 2018/19, UGX.8,333,470,000 was realized representing 105.5%. This was attributed to the batch method of disbursement of funds.  \u2022 Out of the total disbursements and opening balances of UGX.11,855,262,988, only UGX.8,877,403,022 was utilised by the ministry resulting into unspent balance of UGX.2,977,859,966 representing an absorption level of 74%.  \u2022 I also noted that some of the planned activities like, construction of water systems were not implemented such as Kambuga Phase II, Karago Phase I, Lwemiyaga RGC, Karago Phase II, Igorora TC, Kanungu District regional Feacal sludge treatment plant and Hydrogeological investigations \u2013siting & drilling of wells (20No).  \u2022 I noted procurement irregularities in relation to unjustified direct procurements worth UGX.57,587,165."], ["7", "National Environment Management Authority (NEMA) **Opinion** Unqualified", "\u2022 Out of the budget of UGX.26,335,755,264 a sum of UGX.25,677,094,606 was realized resulting into a shortfall of UGX.668,970,608 (5.29%).  \u2022 I sampled 36 (87.8%) out of the total of 41 outputs with a budget of UGX.10,912,755,000 and noted that they were all quantified thereby enabling measurement.  \u2022 Although outstanding receivables decreased by UGX.2.3 billion from UGX.15,307,218,000 in the previous year to UGX.12,975,611,000 in the year under review, the receivables remained unsettled at the close of the year and constrained the liquidity position of the authority.  \u2022 Expenditure on Legal costs of UGX.387,000,000 was incurred as a result of court award against the authority.  \u2022 The National Environment Action Plan was last prepared in 1995 and it has never been reviewed contrary to the regulations which require reviews every two years.  \u2022 The Authority lacks a client service charter.  \u2022 Out of 121 staff of the Authority only 30 employees were appraised by 31st July, 2019.  \u2022 Shortcomings were noted in the review of the Regional Project on the Development of National Action Plans for the Artisanal and Small Scale Gold Mining in Africa.  Some of the project components/ activities such as; Development of a documentary on Artisanal and Small scale Gold Mining (ASGM) Sector including sources of mercury emissions and release in Uganda, Development of a National Overview of the Artisanal and Small scale Gold Mining (ASGM) Sector including baseline estimates of mercury use and practices and Development of an Artisanal and Small Scale Gold Mining National Action Plan (NAP) were not completed within the timeframe of the project work plan."], ["8", "National Forestry Authority (NFA) **Opinion** Unqualified", "\u2022 Out of the budgeted Non Tax Revenue of UGX.24,184,422,000 for the year 2018/19, only UGX.10,795,921 was realized resulting into a shortfall of UGX.13,388,503,048 representing a performance of only 44.6% of the target. The entity budgeted to receive UGX.40,958,038,043 however, only UGX.27,405,150,994 was warranted resulting into an overall budget shortfall of UGX.13,552,887,049 representing 33%. Out of UGX.27,405,150,994 warranted, UGX.27,106,017,597 was spent by the authority resulting into unspent balance of UGX.299,133,397 representing an absorption level of 98.9%.  \u2022 The Authority failed to establish a tree fund which would comprise of monies appropriated by Parliament, loans obtained by Government, grants, gifts and monies from any other approved sources.  \u2022 Receivables increased from UGX.11,758,293,000 to UGX.12, 284,276,000; and payables increased from UGX.10,446,677,000 to UGX.12,103,161,000 from the previous year to the current year respectively. The outstanding payables are equivalent to 89% of the internally generated revenue (NTR) collections for the year.  \u2022 The Authority\u2019s funds worth UGX 1,571,350,000 were garnished following a court order."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 203, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY  Project (WMDP) \u2013 MWE Opinion Unqualified", "SUMMARY OF KEY FINDINGS \u2022 I analyzed of the outputs/activities that were planned and noted that although the project received 100% of the budgeted funds and was able to absorb 97.8% of the, some of the activities remained partially implemented, such as purchase of furniture and IT equipment. \u2022 I noted that payments for works were made to contractors without sufficient supporting documentation for general items in the bills of quantities. A total of UGX 374,071,520 was paid to that effect. \u2022 I noted that the project does not have title deeds for the land on which the Water Supply Systems are constructed."], "type": "table"}}, {"content": [["6", "Joint Partnership Fund (JPF) **Opinion** Unqualified", "\u2022 Out of the budgeted revenue of UGX.7,815,341,828 for the year 2018/19, UGX.8,333,470,000 was realized representing 105.5%. This was attributed to the batch method of disbursement of funds.  \u2022 Out of the total disbursements and opening balances of UGX.11,855,262,988, only UGX.8,877,403,022 was utilised by the ministry resulting into unspent balance of UGX.2,977,859,966 representing an absorption level of 74%.  \u2022 I also noted that some of the planned activities like, construction of water systems were not implemented such as Kambuga Phase II, Karago Phase I, Lwemiyaga RGC, Karago Phase II, Igorora TC, Kanungu District regional Feacal sludge treatment plant and Hydrogeological investigations \u2013siting & drilling of wells (20No).  \u2022 I noted procurement irregularities in relation to unjustified direct procurements worth UGX.57,587,165."], ["7", "National Environment Management Authority (NEMA) **Opinion** Unqualified", "\u2022 Out of the budget of UGX.26,335,755,264 a sum of UGX.25,677,094,606 was realized resulting into a shortfall of UGX.668,970,608 (5.29%).  \u2022 I sampled 36 (87.8%) out of the total of 41 outputs with a budget of UGX.10,912,755,000 and noted that they were all quantified thereby enabling measurement.  \u2022 Although outstanding receivables decreased by UGX.2.3 billion from UGX.15,307,218,000 in the previous year to UGX.12,975,611,000 in the year under review, the receivables remained unsettled at the close of the year and constrained the liquidity position of the authority.  \u2022 Expenditure on Legal costs of UGX.387,000,000 was incurred as a result of court award against the authority.  \u2022 The National Environment Action Plan was last prepared in 1995 and it has never been reviewed contrary to the regulations which require reviews every two years.  \u2022 The Authority lacks a client service charter.  \u2022 Out of 121 staff of the Authority only 30 employees were appraised by 31st July, 2019.  \u2022 Shortcomings were noted in the review of the Regional Project on the Development of National Action Plans for the Artisanal and Small Scale Gold Mining in Africa.  Some of the project components/ activities such as; Development of a documentary on Artisanal and Small scale Gold Mining (ASGM) Sector including sources of mercury emissions and release in Uganda, Development of a National Overview of the Artisanal and Small scale Gold Mining (ASGM) Sector including baseline estimates of mercury use and practices and Development of an Artisanal and Small Scale Gold Mining National Action Plan (NAP) were not completed within the timeframe of the project work plan."], ["8", "National Forestry Authority (NFA) **Opinion** Unqualified", "\u2022 Out of the budgeted Non Tax Revenue of UGX.24,184,422,000 for the year 2018/19, only UGX.10,795,921 was realized resulting into a shortfall of UGX.13,388,503,048 representing a performance of only 44.6% of the target. The entity budgeted to receive UGX.40,958,038,043 however, only UGX.27,405,150,994 was warranted resulting into an overall budget shortfall of UGX.13,552,887,049 representing 33%. Out of UGX.27,405,150,994 warranted, UGX.27,106,017,597 was spent by the authority resulting into unspent balance of UGX.299,133,397 representing an absorption level of 98.9%.  \u2022 The Authority failed to establish a tree fund which would comprise of monies appropriated by Parliament, loans obtained by Government, grants, gifts and monies from any other approved sources.  \u2022 Receivables increased from UGX.11,758,293,000 to UGX.12, 284,276,000; and payables increased from UGX.10,446,677,000 to UGX.12,103,161,000 from the previous year to the current year respectively. The outstanding payables are equivalent to 89% of the internally generated revenue (NTR) collections for the year.  \u2022 The Authority\u2019s funds worth UGX 1,571,350,000 were garnished following a court order."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 203, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY  Project (WMDP) \u2013 MWE Opinion Unqualified", "SUMMARY OF KEY FINDINGS \u2022 I analyzed of the outputs/activities that were planned and noted that although the project received 100% of the budgeted funds and was able to absorb 97.8% of the, some of the activities remained partially implemented, such as purchase of furniture and IT equipment. \u2022 I noted that payments for works were made to contractors without sufficient supporting documentation for general items in the bills of quantities. A total of UGX 374,071,520 was paid to that effect. \u2022 I noted that the project does not have title deeds for the land on which the Water Supply Systems are constructed."], "type": "table"}}, {"content": "190", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 203, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["9", "Nyabyeya Forestry College **Opinion** Unqualified", "\u2022 Out of the budgeted amount of UGX.3,753,353,600 a sum of UGX.3,157,413,370 was realized resulting into a shortfall of UGX.640,940,230 (15.7%).I sampled 7 (28.5%) out of the total of 8 outputs and noted that 5 outputs (71.42) were not quantified. \u2022 The College faced challenges of being governed by different agencies and ambiguity in the interpretation of several provisions in the law which directly affect service delivery. \u2022 There were no policies on private businesses operating within the college, allowances to college staff and allocation of staff houses. \u2022 Out of 107 approved positions, only 19 positions were filled leaving 88 positions vacant representing a staffing gap of 82%. In addition the college heavily relies on contract and casual labourers. \u2022 There was a declining trend in the enrolment in the last 3 years."], ["10", "Farm Income Enhancement and Forest  Conservation Project II (FIEFOC) **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX 34,758,300,000; (USD 10,655,810) representing a budget under performance of 27%. \u2022 UGX 2,746,719,303 of project funds remained unspent at the close of the financial year owing to late receipt of funds from the development partners and procurement challenges."], ["11", "Water Supply and Sanitation Programme Support (WSSP II) under Joint Water and Environment Sector Support Programme (JWESSP) **Opinion** Unqualified", "\u2022 Out of the planned disbursements of UGX.116,619,434,000 for the year, UGX.145,598,059,072 was realized representing performance of 124.8% of the target. \u2022 Out of UGX.145,598,059,072 disbursed, only UGX.108,977,586,091 (74.84%) had been absorbed by 30th June 2019 leaving a balance UGX.40,214,847,282 (25.16%) un-utilized. \u2022 A review of the 2018/19 annual work plan and the project\u2019s quarterly activity reports, budgets and field inspections revealed that some activities were substantially delayed\u2019. Some of the water schemes were not implemented at all. \u2022 The Project incurred new payables amounting to UGX.2,376,759,268 before clearing the previous outstanding commitments of UGX.8,060,971,350 despite the availability of funding."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 204, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY", "SUMMARY OF KEY FINDINGS \u2022 The Authority failed to demarcate and zone land for tree planting for example; Mpive, Nonve, Zirimiti Central Forest Reserves (CFRs)  \u2022 There was noted encroachment on NFA forests for example; Bugoma CFR was encroached on by a private developer and titles for Plots 4 and 5 for NFA headquarters were processed into free hold.  \u2022 The Authority did not license masts in the Central forest reserves for several broadcasting stations and this may result into revenue loss.  \u2022 There was inadequate supervision and verification of variable fees payable in various eco-tourism sites. \u2022 Shortcomings were noted in the implementation of the provisions in the circular standing instructions on staff performance management. The gaps identified include non-completion of Performance Agreements, no quarterly reviews undertaken, no performance improvement plans prepared, non-submission of reports on Performance Agreements, Performance appraisals, Performance improvement plans to MoPS and lack of mechanism to monitor staff attendance."], "type": "table"}}, {"content": [["9", "Nyabyeya Forestry College **Opinion** Unqualified", "\u2022 Out of the budgeted amount of UGX.3,753,353,600 a sum of UGX.3,157,413,370 was realized resulting into a shortfall of UGX.640,940,230 (15.7%).I sampled 7 (28.5%) out of the total of 8 outputs and noted that 5 outputs (71.42) were not quantified. \u2022 The College faced challenges of being governed by different agencies and ambiguity in the interpretation of several provisions in the law which directly affect service delivery. \u2022 There were no policies on private businesses operating within the college, allowances to college staff and allocation of staff houses. \u2022 Out of 107 approved positions, only 19 positions were filled leaving 88 positions vacant representing a staffing gap of 82%. In addition the college heavily relies on contract and casual labourers. \u2022 There was a declining trend in the enrolment in the last 3 years."], ["10", "Farm Income Enhancement and Forest  Conservation Project II (FIEFOC) **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX 34,758,300,000; (USD 10,655,810) representing a budget under performance of 27%. \u2022 UGX 2,746,719,303 of project funds remained unspent at the close of the financial year owing to late receipt of funds from the development partners and procurement challenges."], ["11", "Water Supply and Sanitation Programme Support (WSSP II) under Joint Water and Environment Sector Support Programme (JWESSP) **Opinion** Unqualified", "\u2022 Out of the planned disbursements of UGX.116,619,434,000 for the year, UGX.145,598,059,072 was realized representing performance of 124.8% of the target. \u2022 Out of UGX.145,598,059,072 disbursed, only UGX.108,977,586,091 (74.84%) had been absorbed by 30th June 2019 leaving a balance UGX.40,214,847,282 (25.16%) un-utilized. \u2022 A review of the 2018/19 annual work plan and the project\u2019s quarterly activity reports, budgets and field inspections revealed that some activities were substantially delayed\u2019. Some of the water schemes were not implemented at all. \u2022 The Project incurred new payables amounting to UGX.2,376,759,268 before clearing the previous outstanding commitments of UGX.8,060,971,350 despite the availability of funding."], ["12", "Uganda National Meteorological Authority (UNMA) **Opinion** Unqualified", "\u2022 Out of budgeted revenue of UGX 28,010,268,814 only UGX 23,513,091,137 was realized representing performance level of 84% of the target. \u2022 Out of UGX 23,513,091,137 warranted, UGX 22,170,981346 was absorbed by the authority leaving unspent balance of UGX 1,342,109,791 representing an absorption level of 94.3%. \u2022 Expenditure totaling to UGX. 254,698,380 was mischarged on different account codes. \u2022 The installed meteorological weather stations in various parts of the country lack relevant land acquisition and ownership documents, while 23 out of the 52 established historical weather stations are non-functional."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 204, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY", "SUMMARY OF KEY FINDINGS \u2022 The Authority failed to demarcate and zone land for tree planting for example; Mpive, Nonve, Zirimiti Central Forest Reserves (CFRs)  \u2022 There was noted encroachment on NFA forests for example; Bugoma CFR was encroached on by a private developer and titles for Plots 4 and 5 for NFA headquarters were processed into free hold.  \u2022 The Authority did not license masts in the Central forest reserves for several broadcasting stations and this may result into revenue loss.  \u2022 There was inadequate supervision and verification of variable fees payable in various eco-tourism sites. \u2022 Shortcomings were noted in the implementation of the provisions in the circular standing instructions on staff performance management. The gaps identified include non-completion of Performance Agreements, no quarterly reviews undertaken, no performance improvement plans prepared, non-submission of reports on Performance Agreements, Performance appraisals, Performance improvement plans to MoPS and lack of mechanism to monitor staff attendance."], "type": "table"}}, {"content": "191", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 204, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["13", "Investment Plan Preparation Grant for the Strategic Plan for Climate Resilience **Opinion** Qualified", "\u2022 UGX.163,163,965 reported as the closing net worth of the project in the statement of changes of equity differed from UGX.80,258,811 as disclosed in the statement of financial position. \u2022 Out of UGX.2,071,977,173 available for spending during the year, only UGX.1,915,463,208 was spent, leaving a balance of UGX.156,513,965 un-utilized by the year end. \u2022 A review of the Grant Support Agreement, the approved project budget, work plans and the activity progress reports, revealed that some of the project\u2019s planned activities were partially implemented. \u2022 A review of various payments records revealed that UGX.29,012,784 and USD 64,595.58 (equivalent to UGX.240,241,943) in respect of VAT remained outstanding and payable to the URA by the year end, and formed part of closing payables of UGX 85,905,154 as at the year end. \u2022 A review of various payment records revealed that UGX.9,119,588 and USD.20,772.39 (equivalent to UGX.77,256,050) were deducted from various service providers in respect of 6% Withholding Tax which was not remitted to the tax body by the year \u2013end."], ["14", "Global Environment Facility Project - MWE (Additional Funds to WSSP I) **Opinion** Unqualified", "\u2022 Out of the budget of Ugx. 10,011,772,028, the entity received Ugx. 9,579,827,490 leaving a balance of Ugx. 431,944,538 implying a performance of 96%. As a result, out of the planned 500 hectares of trees, only 430 were restored. \u2022 Valley tanks valued at Ugx. 8,392,247,017 were completed in various districts without obtaining land titles of the sites."], ["15", "Multi - Lateral Lakes Edward & Albert Integrated Fisheries & Water Resources Management (LEAF II) **Opinion** Unqualified", "\u2022 Despite the revenue performance of 107.4% there were delays in completion of various landing sites. \u2022 The communities lacked market and storage facilities for their finished products within the riparian lakes George, Edward and Albert. Such challenges, affect the attainment of the main project objectives of creation of alternative income opportunities and food security for the fishing community. \u2022 The project still operates a manual financial management system contrary to the Accountant General\u2019s directive to all accounting officers of donor projects."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 205, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY", "SUMMARY OF KEY FINDINGS \u2022 UGX.30,000,000 was paid to M/S Uganda Post Limited as penalty for delay in vacating the office premises which were previously occupied by the Authority. \u2022 The Authority lacks the requisite staffing and tools to build capacity at local government levels, with some stations having none or only one staff while some staff in critical positions had acted in excess of the stipulated period of six to twelve months."], "type": "table"}}, {"content": [["13", "Investment Plan Preparation Grant for the Strategic Plan for Climate Resilience **Opinion** Qualified", "\u2022 UGX.163,163,965 reported as the closing net worth of the project in the statement of changes of equity differed from UGX.80,258,811 as disclosed in the statement of financial position. \u2022 Out of UGX.2,071,977,173 available for spending during the year, only UGX.1,915,463,208 was spent, leaving a balance of UGX.156,513,965 un-utilized by the year end. \u2022 A review of the Grant Support Agreement, the approved project budget, work plans and the activity progress reports, revealed that some of the project\u2019s planned activities were partially implemented. \u2022 A review of various payments records revealed that UGX.29,012,784 and USD 64,595.58 (equivalent to UGX.240,241,943) in respect of VAT remained outstanding and payable to the URA by the year end, and formed part of closing payables of UGX 85,905,154 as at the year end. \u2022 A review of various payment records revealed that UGX.9,119,588 and USD.20,772.39 (equivalent to UGX.77,256,050) were deducted from various service providers in respect of 6% Withholding Tax which was not remitted to the tax body by the year \u2013end."], ["14", "Global Environment Facility Project - MWE (Additional Funds to WSSP I) **Opinion** Unqualified", "\u2022 Out of the budget of Ugx. 10,011,772,028, the entity received Ugx. 9,579,827,490 leaving a balance of Ugx. 431,944,538 implying a performance of 96%. As a result, out of the planned 500 hectares of trees, only 430 were restored. \u2022 Valley tanks valued at Ugx. 8,392,247,017 were completed in various districts without obtaining land titles of the sites."], ["15", "Multi - Lateral Lakes Edward & Albert Integrated Fisheries & Water Resources Management (LEAF II) **Opinion** Unqualified", "\u2022 Despite the revenue performance of 107.4% there were delays in completion of various landing sites. \u2022 The communities lacked market and storage facilities for their finished products within the riparian lakes George, Edward and Albert. Such challenges, affect the attainment of the main project objectives of creation of alternative income opportunities and food security for the fishing community. \u2022 The project still operates a manual financial management system contrary to the Accountant General\u2019s directive to all accounting officers of donor projects."], ["16", "Technical Assistance Under JWESSP **Opinion** Unqualified", "\u2022 There were unspent balances amounting to \u20ac 61,852 which had not yet been refunded to the Austrian Development Agency (ADA)."], ["17", "Second National Communication Project \u2013 FY 2017/2018 **Opinion** Unqualified", "\u2022 I noted that UGX. 4,682,834 deducted from the service providers in form of VAT but not remitted to the Uganda Revenue Authority (URA) by the year end."], ["18", "Preparation of Initial Biennial Report to the United Nations Framework", "\u2022 It was noted that according to the project financing agreement UNEP was meant to l provide all cash advances in US dollars up to a maximum of $352,000 however, as at 31st December, 2018 the project had received $ 155,575 (56%) out of the agreed $279,775 and failed to absorb $ 124,200 (44%)."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 205, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY", "SUMMARY OF KEY FINDINGS \u2022 UGX.30,000,000 was paid to M/S Uganda Post Limited as penalty for delay in vacating the office premises which were previously occupied by the Authority. \u2022 The Authority lacks the requisite staffing and tools to build capacity at local government levels, with some stations having none or only one staff while some staff in critical positions had acted in excess of the stipulated period of six to twelve months."], "type": "table"}}, {"content": "192", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 205, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["19", "Enhancing Resilience of Communities against Climate Change (EURECCCA) **Opinion** Unqualified", "\u2022 I noted that the entity\u2019s approved budget in year 2 was USD.3,189,580, however, no funds were disbursed in the year. As a result, the outputs of the three (3) project components were implemented using the balance of year 1."], ["20", "National Water and Sewerage Corporation (NWSC) **Opinion** Unqualified", "\u2022 No material issue to report on."], ["21", "Water Management and Development Project (WMDP) \u2013 NWSC **Opinion** Unqualified", "\u2022 I was not availed with proof that the Performance Certificate was issued to the contractor (El Nasr and DOTT Services Limited) to prove expiry of defects notification period and as a basis of accepting works delivered by the contractor."], ["22", "Protection of lake Victoria Kampala Sanitation Project (WATSAN) \u2013 NWSC **Opinion** Unqualified", "\u2022 No material issue to report on."], ["23", "Kampala Sanitation Programme (KSP) \u2013 Phase I, Lake Victoria Protection Project \u2013 Phase II **Opinion** Unqualified", "\u2022 No material issues to be reported on."], ["", "**ENERGY SECTOR**", ""], ["1", "Ministry of Energy and Mineral Development (MEMD) **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.41,369,579,524 representing 8%. Further, the entity remained with unspent balance of UGX.9,693,960,034 representing an absorption level of 98%. \u2022 I sampled 46 out-puts worth UGX.74,637,547,000 representing 66% of the expenditure, and noted 7 (15%) of the total outputs were not quantified to enable measurement of performance. Further, of the 46 outputs assessed, 12 representing 26% were fully implemented, 21 representing 46% were partially implemented, while 13 representing 28% were not implemented at all. \u2022 Funds amounting to UGX.156,903,495 were charged on inappropriate codes."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 206, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY Convention on Climate Change (UNFCCC) Opinion Unqualified", "SUMMARY OF KEY FINDINGS \u2022 It was also established that the project\u2019s approved budget was $ 352,000 and at the time of audit, $236,000(67%) had been advanced leaving a balance of $116,000(33%). However, a number of outputs totaling to $236,000 were still outstanding by the time of the Audit \u2022 A review of the project\u2019s receivables position revealed an outstanding balance of USD 2,720.93 comprising staff advances for official activities."], "type": "table"}}, {"content": "193", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 206, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["2", "Grid Extension Reinforcement Project (GERP) **Opinion** Unqualified", "\u2022 Whereas the project received USD.515,000 (99%) of the budgeted donor funds (USD.520,000) and UGX 914,350,000 (91%) of the budgeted GoU counterpart funding (UGX.1,000,000,000), USD 404,562.28 (76.4%) and UGX.567,150,000 (62%) remained unutilized as at 30th June 2019 for the donor and GoU component respectively. This was attributed to procurement delays."], ["3", "Rural Electrification Agency (REA) **Opinion** Unqualified", "\u2022 Out of the budget of UGX.728,999,419,607, the Agency realized UGX. 652,999,488,205 representing 89% performance resulting into non-implementation of some planned activities such as last mile electricity connections and grid extensions. \u2022 The Agency has paid to Post bank (U) Ltd a cumulative sum of UGX.24,700,199,541 for onward disbursement to Project affected persons (PAPs) as compensation. At the close of the year UGX.11,172,513,361 was reported as a receivable. However reconciliation of the payments to the PAPs is constrained by lack of a dedicated Bank Account for the deposits. \u2022 Contingent Liabilities of UGX.6,071,073,253 relating to compensations for way leaves of power lines constructed by the agency as at 30th June 2019, may result into cash outflow from the Agency if they crystallize. \u2022 Among the Agency inventories were 89 transformers which were not valued. There is possibility of undervaluation of inventories. \u2022 Whereas the Agency contracted UEDCL in 2014 to manage some service territories on temporary basis, to date it has not developed a sustainable strategy. \u2022 The Agency has failed to utilize electricity connection materials worth USD.1.2M. The usage rate for the materials was noted to be only 15% since 2015 when they were procured."], ["4", "Energy for Rural Transformation ERT (REA) III **Opinion** Unqualified", "\u2022 Out of the available project funds of UGX 37,006,878,358, a sum of UGX 17,015,243,781 was utilized, representing 46%. \u2022 Where as the project funding was USD 143.2 Million and commenced on 31st March, 2016 with the closure scheduled for 31st December 2020, only 11% of the funds amounting to USD 15.3 Million have been utilized. There is a risk that the overall objective of increasing access to electricity in rural areas may not be achieved."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 207, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY", "SUMMARY OF KEY FINDINGS \u2022 Domestic arrears decreased by 24% from UGX.24,695,568,448 in the previous year to UGX.18,698,882,927 in the year under review. The arrears remained unsettled at the close of the year. \u2022 The Ministry failed to collect royalties worth UGX.428,273,970 and UGX.70,193,258,898, from exports of gold, tantalum and tungsten in the financial years 2017/18 and 2018/19 respectively. The Ministry further failed to collect royalties worth UGX.14,184,105,306 from imports of gold and tungsten in the Financial Year 2018/19. \u2022 There were inadequate measures to verify the accuracy and legitimacy of the quantities of minerals declared by the mining companies as the Directorate of Geological Survey and Mines relies on declarations from the mining companies in form of monthly production returns without independent verification. \u2022 There are numerous properties held by the MEMD that do not have titles. This exposes the Ministry to the risk of losing valuable properties to private individuals. \u2022 Shortcomings were noted in the implementation of the provisions in the circular standing instructions on staff performance management. The gaps identified include non-completion of Performance Agreements, no quarterly reviews undertaken, no performance improvement plans prepared, non-submission of reports on Performance Agreements, Performance Appraisals, Performance Improvement Plans to MoPS and lack of mechanism to monitor staff attendance. \u2022 There was delayed Implementation of the Resettlement Action Plan, whereby some community projects such as the church and mosque have been outstanding since 2016. \u2022 Physical inspections revealed harmful gold mining practices by artisanal miners in the districts of Moroto and Busia. Such as; use of toxic chemicals which contaminate the environment. \u2022 There are no weighbridges installed along Karamonja Roads to measure the Tonnage of heavy minerals (Limestone, Marble) transported out of Moroto region."], "type": "table"}}, {"content": "194", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 207, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["6", "Petroleum Authority Uganda (PAU) **Opinion** Unqualified", "\u2022 Whereas the Petroleum Authority of Uganda was warranted UGX 47,601,384,605, only UGX 29,969,910,242 (63%) was spent leaving a balance of UGX 16,736,448,645 un-utilized and subsequently swept back to the Consolidated Fund. This resulted in unimplemented activities such as staff recruitment, monitoring field activities and maintenance of IT software. \u2022 As at 30th June, 2019, the Authority had not approved work programmes and budgets for the Joint Venture Partners (Total E&P, CNOOC Uganda and Tullow Uganda Operations Ltd) for the calendar year 2019, contrary to Section 35 of the Petroleum Exploration, Development and Production Regulations, 2016. This resulted from the delays in submission of the respective work programmes and budgets by the Oil Companies."], ["7", "Electricity Regulatory Authority (ERA) **Opinion** Unqualified", "\u2022 The Entity budgeted for UGX 41,715,587,701 and realized UGX.43,685,419,937 representing 105% performance. \u2022 Analysis of power schedules for distribution companies (mini grids) revealed a number of outages and the associated energy and revenue losses by the Licensees. Total revenue lost ranged between UGX 32.7 million and 5.44 billion depending on the size of the utility and area of operation whereas the total energy lost by UMEME and UETCL was between 30.8 MWh and 7513.9 MWh, and between 24.7 MWh and 1378.7 MWh, respectively. \u2022 There was non-compliance to the Quality of Service Standards 1 and 2 by UMEME whereby 90% and 89% of customers were delayed to be connected within 10 and 15 days of standard connection period, respectively. \u2022 A number of projects licensed by ERA are facing power evacuation challenges. In addition, the Commercial Operations dates (COD) of the Power Plants and Evacuation lines were not aligned. This has caused scenarios where generated power is delayed to be evacuated due to the absence of the power evacuation lines."], ["8", "Uganda Electricity Distribution Company Ltd (UEDCL) **Opinion** Unqualified", "\u2022 There was uncollected revenue of UGX. 19,509,385,000 majorly relating to sale of poles and energy sales from service territories, these funds were accrued and remained as a receivable at the end of the financial year. \u2022 There were payables of UGX.9,594,268,000 relating to Uganda Electricity Transmission Company Limited for Bulk power purchases. Of this amount, UGX.5,023,579,255 is due to power evacuation losses on the evacuation lines from Nkusi and Siti mini hydro power plants. \u2022 Receivables of UGX.38 Billion from GOU relate to pension claims of former UEB employees. The Ministry of Finance, Planning and Economic Development (MoFPED) committed to refund this money to UEDCL. This amount has however not been refunded to-date. \u2022 Shortcomings were noted in staff performance management. The gaps identified include non- preparation of Performance Agreements and failure to undertake performance Appraisals."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 208, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn 5", "SECTOR AND ENTITY  Uganda Petroleum Fund (UPF) Opinion Unqualified", "SUMMARY OF KEY FINDINGS \u2022 There was a drawdown of funds from the Petroleum Fund amounting to UGX.200 Billion, representing 64.29% of the value of Fund from Uganda Petroleum Fund account to the Consolidated Fund in support of the Annual Budget without explicit declaration of the specific infrastructural projects. \u2022 I noted absence of a Fiscal Rule in the Management of the Petroleum Fund, whereby the process of transfer of funds out of Uganda Petroleum Fund is left at the discretion of the Ministry of Finance without adequate guidelines. \u2022 The Petroleum Fund lacks an approved Petroleum Investment Framework and therefore USD.74,815,250.71 and UGX.28,216,311,498 remained unutilized on the Petroleum Fund account as at 30th June 2019. In addition, the prescribed operational agreement between the Ministry of Finance and Bank of Uganda regarding the Fund is not yet in place. \u2022 There was delay in remittance of oil revenue collections by the Uganda Revenue Authority (URA) of UGX.6,451,964,160, to the Petroleum Fund as at 30th June, 2019 and this was attributed to reconciliation challenges of revenue collection between Uganda Revenue Authority and the Accountant General\u2019s Office."], "type": "table"}}, {"content": [["6", "Petroleum Authority Uganda (PAU) **Opinion** Unqualified", "\u2022 Whereas the Petroleum Authority of Uganda was warranted UGX 47,601,384,605, only UGX 29,969,910,242 (63%) was spent leaving a balance of UGX 16,736,448,645 un-utilized and subsequently swept back to the Consolidated Fund. This resulted in unimplemented activities such as staff recruitment, monitoring field activities and maintenance of IT software. \u2022 As at 30th June, 2019, the Authority had not approved work programmes and budgets for the Joint Venture Partners (Total E&P, CNOOC Uganda and Tullow Uganda Operations Ltd) for the calendar year 2019, contrary to Section 35 of the Petroleum Exploration, Development and Production Regulations, 2016. This resulted from the delays in submission of the respective work programmes and budgets by the Oil Companies."], ["7", "Electricity Regulatory Authority (ERA) **Opinion** Unqualified", "\u2022 The Entity budgeted for UGX 41,715,587,701 and realized UGX.43,685,419,937 representing 105% performance. \u2022 Analysis of power schedules for distribution companies (mini grids) revealed a number of outages and the associated energy and revenue losses by the Licensees. Total revenue lost ranged between UGX 32.7 million and 5.44 billion depending on the size of the utility and area of operation whereas the total energy lost by UMEME and UETCL was between 30.8 MWh and 7513.9 MWh, and between 24.7 MWh and 1378.7 MWh, respectively. \u2022 There was non-compliance to the Quality of Service Standards 1 and 2 by UMEME whereby 90% and 89% of customers were delayed to be connected within 10 and 15 days of standard connection period, respectively. \u2022 A number of projects licensed by ERA are facing power evacuation challenges. In addition, the Commercial Operations dates (COD) of the Power Plants and Evacuation lines were not aligned. This has caused scenarios where generated power is delayed to be evacuated due to the absence of the power evacuation lines."], ["8", "Uganda Electricity Distribution Company Ltd (UEDCL) **Opinion** Unqualified", "\u2022 There was uncollected revenue of UGX. 19,509,385,000 majorly relating to sale of poles and energy sales from service territories, these funds were accrued and remained as a receivable at the end of the financial year. \u2022 There were payables of UGX.9,594,268,000 relating to Uganda Electricity Transmission Company Limited for Bulk power purchases. Of this amount, UGX.5,023,579,255 is due to power evacuation losses on the evacuation lines from Nkusi and Siti mini hydro power plants. \u2022 Receivables of UGX.38 Billion from GOU relate to pension claims of former UEB employees. The Ministry of Finance, Planning and Economic Development (MoFPED) committed to refund this money to UEDCL. This amount has however not been refunded to-date. \u2022 Shortcomings were noted in staff performance management. The gaps identified include non- preparation of Performance Agreements and failure to undertake performance Appraisals."], ["9", "Uganda Electricity Generation", "\u2022 An analysis of the budget against the actual concession revenue collected in the period under review revealed a shortfall of UGX 3,397,978,381 which was contested by ERA."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 208, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn 5", "SECTOR AND ENTITY  Uganda Petroleum Fund (UPF) Opinion Unqualified", "SUMMARY OF KEY FINDINGS \u2022 There was a drawdown of funds from the Petroleum Fund amounting to UGX.200 Billion, representing 64.29% of the value of Fund from Uganda Petroleum Fund account to the Consolidated Fund in support of the Annual Budget without explicit declaration of the specific infrastructural projects. \u2022 I noted absence of a Fiscal Rule in the Management of the Petroleum Fund, whereby the process of transfer of funds out of Uganda Petroleum Fund is left at the discretion of the Ministry of Finance without adequate guidelines. \u2022 The Petroleum Fund lacks an approved Petroleum Investment Framework and therefore USD.74,815,250.71 and UGX.28,216,311,498 remained unutilized on the Petroleum Fund account as at 30th June 2019. In addition, the prescribed operational agreement between the Ministry of Finance and Bank of Uganda regarding the Fund is not yet in place. \u2022 There was delay in remittance of oil revenue collections by the Uganda Revenue Authority (URA) of UGX.6,451,964,160, to the Petroleum Fund as at 30th June, 2019 and this was attributed to reconciliation challenges of revenue collection between Uganda Revenue Authority and the Accountant General\u2019s Office."], "type": "table"}}, {"content": "195", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 208, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["10", "Uganda Electricity Transmission Company Limited (UETCL) **Opinion** Unqualified", "\u2022 UETCL runs 7 current bank accounts (5 for corporate and 2 for projects) which earn the company daily interest on closing balances computed at a rate agreed upon by UETCL and the respective Banks. Analysis of the daily interest earned on outstanding balances on the respective accounts revealed a 3.5% variance between interest rates earned on two accounts in the same bank UETCL therefore missed interest of 3.5% during the financial year. \u2022 Whereas UETCL continued to engage with UMEME and UEDCL to address the issue of withheld income, uncollected revenue continued to increase leading to an increase in doubtful debt from 88bn as at 30th June 2018 to 135.6bn as at 30th June 2019. As a result, the provision has increase to UGX 135.5bn (54%) from the previous financial year. \u2022 UETCL procured goods, works and services amounting to UGX 7,453,066,691 outside the procurement plan."], ["11", "Uganda National Oil Company (UNOC) **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.17.4 billion representing 36.8% of the budgeted amount of UGX.47.32 billion. \u2022 The company faces long term financing challenges to cater for state participation in key infrastructural projects like the East Africa Crude Oil Pipeline (EACOP), refinery, Kampala storage"]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 209, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY Company Ltd. (UEGCL) Opinion Unqualified", "SUMMARY OF KEY FINDINGS \u2022 I noted that out of the UGX.886,836,000 relating to withholding tax recoverable only UGX 784,106,945 was supported with withholding tax credit certificates hence leaving a balance of UGX.102,729,055 unsupported. \u2022 UEGCL reported an outstanding amount of UGX 172,348,993 in trade and other payables as at 30th June 2019. This amount relates to interest penalty arising from the failure to pay VAT incurred on Isimba energy sales to UETCL. \u2022 Out of 25 planned activities 21 were partially implemented while 4 were not implemented comprising; follow up of non-conformances by the Karuma EPC contractor; monitoring and follow up of Karuma and Isimba CDAP activities; tracking compliance on regulatory requirements by the contractor, UEGCL and Owner Engineer for Muzizi and Nyagak power plants. \u2022 A review of Karuma and Isimba credit loan agreements signed in 2014 and 2015 respectively, the Power Purchase Agreements signed in 2015, and the Generation and Sales Licenses issued by ERA to UEGCL in 2017, revealed conflicting clauses in regard to the tariff methodology implemented in the supply of power generated by UEGCL to UETCL, that is, capacity based (take or pay) versus energy sold tariff methodology. Although, the Solicitor General in his letter dated 14th September 2018 provided legal guidance to have the licenses amended in line with the PPAs and the loan agreements, the guidance had not been effected. \u2022 I noted that Land acquisition and resettlement activities for Karuma Reservoir area scheduled to be completed by 30th August 2019 had not commenced. Furthermore, delays in land acquisition and construction works for the transmission lines under Karuma interconnection had hampered project progress. As a result, the EPC contractor delayed to implement certain key activities and the project completion date has been extended up to 31st December 2019. \u2022 I noted that Community Development Action Plan Activities (CDAP) under Karuma which included construction of schools, health centers, and sanitation facilities had not commenced due to lack of funding despite the limited period five (5) months) to project completion. \u2022 I noted that Eskom had submitted to UEGCL a claim for the implemented investments in regard to the concession for the management of Nalubaale HPP amounting to USD 10,235,000 for the period 2003 to-date. Furthermore, the claim is likely to increase to USD 18,255,000 once verification of additional work is completed. This amount is further projected to increase to USD.28,000,000 by the end of the concession contract in April 2023. \u2022 Audit inspection and review of Independent Engineer\u2019s report revealed that Nalubaale HPP was in a poor physical state. The plant had concrete cracks within the Powerhouse Structure, water Seepage and presence of vegetation at main dam, corroded equipment, leakage at Sluice Gates, absence of floating boom upstream of the source of the Nile to retain the water hyacinths, presence of oil in the Turbine Pits, non-Functionality of Generating Unit 10, not fit-for-purpose vibration monitoring system, frequent Cable Failure at Unit 3 and 4, and lacked critical spare parts."], "type": "table"}}, {"content": "196", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 209, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["12", "Energy for Rural Transformation (ERT) (PCU) **Opinion** Unqualified", "\u2022 Out of the available project funds of USD 3,761,555, a sum of USD 1,908,511.82 was utilized, representing 50%. Under GOU funding, out of a budget of UGX 1,000,000,000 only UGX 732,840,000 (73.2%) was received while only, UGX 508,250,000 (69%) was spent. The under absorption was attributed to procurement delays.  \u2022 Procurement for the contract for the installation and maintenance of solar PV systems for schools, was not undertaken as planned by 16th August 2019. There is a risk of failure to achieve the overall project objective and service delivery to the intended beneficiaries."], ["13", "Energy for Rural Transformation (ERT) (PSFU) **Opinion** Unqualified", "\u2022 There was under absorption of Funds, whereby out of the budget of USD.738,566, the Project received only USD.450,942 (61%), resulting into a shortfall of USD.287,624 (39%). It was further noted that out of the USD.450,942 received, USD.31,495 remained unspent at the year end. \u2022 There was a delay of 21 months by the Consultant for the development of 6 Pico/micro hydro power schemes, while implementation of the Contract for the supply, Installation and commissioning of electro-mechanical equipment for the power plants was behind schedule by 12 months."], ["14", "Energy for Rural Transformation III Implemented by Uganda Energy Credit Capitalization Company Limited (ERT III- UECCCL) **Opinion** Unqualified", "\u2022 No material issue reported."], ["15", "Energy for Rural Transformation (ERT) (BoU) **Opinion** Unqualified", "\u2022 No material issue reported."], ["16", "Clean Cooking Project **Opinion** Unqualified", "\u2022 No material issue reported."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 210, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY", "SUMMARY OF KEY FINDINGS terminal and Jinja strategic fuel reserves for which it requires a sum of USD.795.4 million over a period of four (4) years to cater for government\u2019s share in the projects. \u2022 The national strategic fuel reserves are operating below the minimum, with capacity to only meet the country\u2019s fuel demands up to 2 days. The company faces a significant funding challenge of over UGX.40 billion to maintain tradable stock/volumes and for restocking the strategic reserves hence making it difficult for the country to hedge itself against supply disruptions. \u2022 UNOC was granted a vote status effective Financial Year 2018/19 which requires the company to comply with the government Public Finance Management Framework with its attendant Public Finance Management Act, 2015. However, this has posed operational challenges to the company given that it is a registered Company with Share Capital and embracing International Financial Reporting (IFRS) Framework which is a fundamental requirement given that it is expected to participate in Joint Venture partnerships with International Oil Companies (IOCs) along the petroleum value chain. \u2022 There has been a delay in implementation of key infrastructural projects such as; the refinery, East Africa Crude Oil Pipeline (EACOP), Kampala storage terminal, mainly attributed to lengthy negotiations and uncertainties regarding funding Government\u2019s equity interest."], "type": "table"}}, {"content": "197", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 210, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["18", "Kilembe Mines Company Ltd (KML) **Opinion** Unqualified", "\u2022 There was a revenue shortfall of UGX.549,598,292 (22%) with only UGX.1,957,998,708 (78%) received, out of the approved budget of UGX 2,507,597,000. Consequently, the planned activities such as repair of generators at Mubuku Power station; repair of Kampala offices; and purchase of cleaning and water treatment chemicals were not fully implemented. \u2022 KML has a long outstanding payable since 2013 of UGX.4.7 Billion in favour of MoFPED arising from a loan granted by the latter to enable the Company settle debt obligations. The company currently has an accumulated loss in its financial statements of UGX.2.3 Billion and is unlikely to meet this liability in the near future. \u2022 Disclosed under payables are trade payables, unpaid taxes, NSSF and UMEME arrears amounting to UGX.831,748,179, posing a risk of interest, penalties and litigation to the company for the long outstanding amounts. \u2022 I noted that although an impairment loss of UGX.11.08 Billion was reported in the financial statements of KML in 2015, which saw its investment in Kasese Cobalt Company Limited (KCCL) fall to UGX.6,340,543,500, KCCL\u2019s going concern is uncertain since it ceased operations of Cobalt processing therefore it is unlikely that KML will recover this investment."], ["19", "Electricity Sector Development Project (ESDP) - MEMD **Opinion** Unqualified", "\u2022 The project realized 102% donor funding of USD.3,750,000 against the budget of USD. 3,655,013. Similarly, it received 100% of Government of Uganda funding of Ugx. 2,853,000,000. Despite the funding electricity connections attained were only 5,449 (68%) of the target of 8000. \u2022 There was no implementation plan and tracking mechanism to address recommendations of the consultancy under Power Sector Reforms Project. \u2022 The Power Sector Information Centre (PSIC) set up under the ESDP lacked key sector information as well as procedures for information acquisitions, verification, update and retrieval."], ["20", "Fuel Marking and Quality Monitoring Program (FMQP) **Opinion** Unqualified", "\u2022 Out of the approved annual budget of UGX 8,028,000,000, the Program received a total of UGX.8,378,466,303 representing performance of 105%, but planned activities such as regional customer sensitization and stakeholder workshops, setting up, containerized laboratories at the border points of Busia, Malaba and Mutukula, and setting up a Local Area Network at the central laboratory were not undertaken as planned. \u2022 There was inadequate verification and reconciliation of revenues remitted by Global Fluids International (GFI). Hence a risk of understatement of the revenue declared to the Program by GFI."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 211, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn 17", "SECTOR AND ENTITY Uganda Rural Electrification Access Project (UREAP) IDB I Opinion Unqualified", "SUMMARY OF KEY FINDINGS \u2022 On 4th November 2015, Government of Uganda signed a loan agreement of USD 100 million and a grant of Euro 11,205,000 with African Development Bank for the implementation of UREAP. The project main objective is to provide reliable and affordable electricity to Rural Ugandan households and public infrastructure services. It was noted that only 11.66% of the loan amount (USD 100 million with African Development Bank) and 5.4% of the grant (Euro 11,205,000) has been disbursed to date, for the implementation of the Uganda Rural Electricity Access Project. \u2022 There was delayed implementation of projects, whereby a number of procurements for meters, circuit breakers and read boards were more than five months late."], "type": "table"}}, {"content": [["18", "Kilembe Mines Company Ltd (KML) **Opinion** Unqualified", "\u2022 There was a revenue shortfall of UGX.549,598,292 (22%) with only UGX.1,957,998,708 (78%) received, out of the approved budget of UGX 2,507,597,000. Consequently, the planned activities such as repair of generators at Mubuku Power station; repair of Kampala offices; and purchase of cleaning and water treatment chemicals were not fully implemented. \u2022 KML has a long outstanding payable since 2013 of UGX.4.7 Billion in favour of MoFPED arising from a loan granted by the latter to enable the Company settle debt obligations. The company currently has an accumulated loss in its financial statements of UGX.2.3 Billion and is unlikely to meet this liability in the near future. \u2022 Disclosed under payables are trade payables, unpaid taxes, NSSF and UMEME arrears amounting to UGX.831,748,179, posing a risk of interest, penalties and litigation to the company for the long outstanding amounts. \u2022 I noted that although an impairment loss of UGX.11.08 Billion was reported in the financial statements of KML in 2015, which saw its investment in Kasese Cobalt Company Limited (KCCL) fall to UGX.6,340,543,500, KCCL\u2019s going concern is uncertain since it ceased operations of Cobalt processing therefore it is unlikely that KML will recover this investment."], ["19", "Electricity Sector Development Project (ESDP) - MEMD **Opinion** Unqualified", "\u2022 The project realized 102% donor funding of USD.3,750,000 against the budget of USD. 3,655,013. Similarly, it received 100% of Government of Uganda funding of Ugx. 2,853,000,000. Despite the funding electricity connections attained were only 5,449 (68%) of the target of 8000. \u2022 There was no implementation plan and tracking mechanism to address recommendations of the consultancy under Power Sector Reforms Project. \u2022 The Power Sector Information Centre (PSIC) set up under the ESDP lacked key sector information as well as procedures for information acquisitions, verification, update and retrieval."], ["20", "Fuel Marking and Quality Monitoring Program (FMQP) **Opinion** Unqualified", "\u2022 Out of the approved annual budget of UGX 8,028,000,000, the Program received a total of UGX.8,378,466,303 representing performance of 105%, but planned activities such as regional customer sensitization and stakeholder workshops, setting up, containerized laboratories at the border points of Busia, Malaba and Mutukula, and setting up a Local Area Network at the central laboratory were not undertaken as planned. \u2022 There was inadequate verification and reconciliation of revenues remitted by Global Fluids International (GFI). Hence a risk of understatement of the revenue declared to the Program by GFI."], ["21", "Atomic Energy Council (AEC) **Opinion** Unqualified", "\u2022 The Atomic Energy Council had an approved budget of UGX. 23,141,000,000, which was later revised downwards to UGX. 8,065,000,000. Out of the revised budget only UGX 6,774,600,000 was released giving a performance of 84% of the revised budget. \u2022 A number of activities were not implemented, such as; construction of laboratories, recruitment of staff, conduct of public awareness campaigns, establishing Uganda Network for Nuclear Education Science and Technology, Construction and equipping the centralized radioactive sources storage facility, inspection & licensing of facilities, among others were not implemented, thus exposing the public to the dangers of radiation."], ["22", "Strengthening the management of Oil and Gas project in Uganda (SMOGPU) Phase 3", "\u2022 Out of an approved budget of USD. 440,968, the project received USD 442,502 (a performance of (100.3%), however funds were received on 24th June 2019. It was noted that planned activities such as, development of compliance checklist for EIA, workshop on the Fiscal Rule Options, Revision of ICT strategy and development of CRANE database were not implemented."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 211, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn 17", "SECTOR AND ENTITY Uganda Rural Electrification Access Project (UREAP) IDB I Opinion Unqualified", "SUMMARY OF KEY FINDINGS \u2022 On 4th November 2015, Government of Uganda signed a loan agreement of USD 100 million and a grant of Euro 11,205,000 with African Development Bank for the implementation of UREAP. The project main objective is to provide reliable and affordable electricity to Rural Ugandan households and public infrastructure services. It was noted that only 11.66% of the loan amount (USD 100 million with African Development Bank) and 5.4% of the grant (Euro 11,205,000) has been disbursed to date, for the implementation of the Uganda Rural Electricity Access Project. \u2022 There was delayed implementation of projects, whereby a number of procurements for meters, circuit breakers and read boards were more than five months late."], "type": "table"}}, {"content": "198", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 211, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["23", "Mbarara - Nkenda; Tororo - Lira Transmission Lines **Opinion** Unqualified", "\u2022 There are standing time costs resulting from a claim by a contractor due to delayed acquisition of right of way amounting to USD.9,769,837 and UGX.4,548,082,000 and interest amounting to USD.166,378.10 and UGX.528,618,788. \u2022 There are commitment charges of UGX. 815,833,937 on the undisbursed loan from the African Development Fund. The commitment charges are attributed to inadequate absorption of the loan. \u2022 There were significant delays and challenges in the land titling transfer process whereby out of the expected 18 titles on the Tororo-Lira Line, none has been processed while out of the 53 titles expected on the Mbarara-Nkenda line only 18% have been transferred to the project. \u2022 There were significant delays in project implementation for the Tororo-Lira transmission line since 2010 with stringing of conductor and earth wire at only 40%. \u2022 There are outstanding compensations whereby out of 4,701 PAPs on the Tororo-Lira line, 358 (7.6%) are still pending while on the Mbarara-Nkenda line, out of 1689 PAPs, 227 (12%) are pending."], ["24", "Nile Equatorial lakes subsidiary Action Plan (NELSAP) **Opinion** Unqualified", "\u2022 The project lost funding of USD 12,216,194 as a result of failure to absorb the money disbursed within the disbursement period. \u2022 There were delays in execution of the project, which was started in 2012 and scheduled to end by January 2015 but had not been completed by the end of the financial year. This was attributed to delays in acquisition of right of way, delays in procurement processes and approval of drawings, change orders and shifting the scope of works. \u2022 The project has not recovered an outstanding receivable of USD 492,515 relating to advance payments made to terminated contractors of Jyoti structures limited and Insolux Ingenieria S.A. \u2022 Due to delays in the execution of the project, project costs such as supervision, material prices, site administrative costs, land value, and insurance escalated leading to requests for supplementary funding. \u2022 There was noted vandalism of project property under Lot A Bujagali \u2013Tororo \u2013 Lessos 220kV Transmission line which affected the progress of work. \u2022 There was direct procurement of some non-assigned sub-contractors initially engaged by the terminated contractor to complete works, some of whom had sued UETCL over issues concerning the termination of the main contractor. \u2022 Contrary to the financing agreement, no new engineer was appointed to monitor and provide independent review of progress of works of the project on the expiry of the Supervising engineer\u2019s contract. \u2022 The performance securities submitted by terminated contractors expired before the end of the project, which exposed UETCL to uncovered risks of project non-performance by the contractor."], ["25", "Hoima - Nkenda Transmission Lines **Opinion** Unqualified", "\u2022 A sum of UGX.12,662,000,172 meant to fund Resettlement Action Plan activities (way leaves and easement), remained un-disbursed to the Project Affected Persons as at 30th June 2019 despite the project completion on 31st July 2018. By the end of June 2019, 54 Project Affected Persons out of 2,119 PAPs remained uncompensated. \u2022 A sum of UGX.1,929,367,113 relating to unpaid taxes and penalties on imported services by the Nkenda-Hoima transmission line contractor during the financial year 2016/2017 remained unsettled with URA and continues to attract interest and penalties."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 212, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY Opinion Unqualified", "SUMMARY OF KEY FINDINGS"], "type": "table"}}, {"content": [["23", "Mbarara - Nkenda; Tororo - Lira Transmission Lines **Opinion** Unqualified", "\u2022 There are standing time costs resulting from a claim by a contractor due to delayed acquisition of right of way amounting to USD.9,769,837 and UGX.4,548,082,000 and interest amounting to USD.166,378.10 and UGX.528,618,788. \u2022 There are commitment charges of UGX. 815,833,937 on the undisbursed loan from the African Development Fund. The commitment charges are attributed to inadequate absorption of the loan. \u2022 There were significant delays and challenges in the land titling transfer process whereby out of the expected 18 titles on the Tororo-Lira Line, none has been processed while out of the 53 titles expected on the Mbarara-Nkenda line only 18% have been transferred to the project. \u2022 There were significant delays in project implementation for the Tororo-Lira transmission line since 2010 with stringing of conductor and earth wire at only 40%. \u2022 There are outstanding compensations whereby out of 4,701 PAPs on the Tororo-Lira line, 358 (7.6%) are still pending while on the Mbarara-Nkenda line, out of 1689 PAPs, 227 (12%) are pending."], ["24", "Nile Equatorial lakes subsidiary Action Plan (NELSAP) **Opinion** Unqualified", "\u2022 The project lost funding of USD 12,216,194 as a result of failure to absorb the money disbursed within the disbursement period. \u2022 There were delays in execution of the project, which was started in 2012 and scheduled to end by January 2015 but had not been completed by the end of the financial year. This was attributed to delays in acquisition of right of way, delays in procurement processes and approval of drawings, change orders and shifting the scope of works. \u2022 The project has not recovered an outstanding receivable of USD 492,515 relating to advance payments made to terminated contractors of Jyoti structures limited and Insolux Ingenieria S.A. \u2022 Due to delays in the execution of the project, project costs such as supervision, material prices, site administrative costs, land value, and insurance escalated leading to requests for supplementary funding. \u2022 There was noted vandalism of project property under Lot A Bujagali \u2013Tororo \u2013 Lessos 220kV Transmission line which affected the progress of work. \u2022 There was direct procurement of some non-assigned sub-contractors initially engaged by the terminated contractor to complete works, some of whom had sued UETCL over issues concerning the termination of the main contractor. \u2022 Contrary to the financing agreement, no new engineer was appointed to monitor and provide independent review of progress of works of the project on the expiry of the Supervising engineer\u2019s contract. \u2022 The performance securities submitted by terminated contractors expired before the end of the project, which exposed UETCL to uncovered risks of project non-performance by the contractor."], ["25", "Hoima - Nkenda Transmission Lines **Opinion** Unqualified", "\u2022 A sum of UGX.12,662,000,172 meant to fund Resettlement Action Plan activities (way leaves and easement), remained un-disbursed to the Project Affected Persons as at 30th June 2019 despite the project completion on 31st July 2018. By the end of June 2019, 54 Project Affected Persons out of 2,119 PAPs remained uncompensated. \u2022 A sum of UGX.1,929,367,113 relating to unpaid taxes and penalties on imported services by the Nkenda-Hoima transmission line contractor during the financial year 2016/2017 remained unsettled with URA and continues to attract interest and penalties."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 212, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY Opinion Unqualified", "SUMMARY OF KEY FINDINGS"], "type": "table"}}, {"content": [["23", "Mbarara - Nkenda; Tororo - Lira Transmission Lines **Opinion** Unqualified", "\u2022 There are standing time costs resulting from a claim by a contractor due to delayed acquisition of right of way amounting to USD.9,769,837 and UGX.4,548,082,000 and interest amounting to USD.166,378.10 and UGX.528,618,788. \u2022 There are commitment charges of UGX. 815,833,937 on the undisbursed loan from the African Development Fund. The commitment charges are attributed to inadequate absorption of the loan. \u2022 There were significant delays and challenges in the land titling transfer process whereby out of the expected 18 titles on the Tororo-Lira Line, none has been processed while out of the 53 titles expected on the Mbarara-Nkenda line only 18% have been transferred to the project. \u2022 There were significant delays in project implementation for the Tororo-Lira transmission line since 2010 with stringing of conductor and earth wire at only 40%. \u2022 There are outstanding compensations whereby out of 4,701 PAPs on the Tororo-Lira line, 358 (7.6%) are still pending while on the Mbarara-Nkenda line, out of 1689 PAPs, 227 (12%) are pending."], ["24", "Nile Equatorial lakes subsidiary Action Plan (NELSAP) **Opinion** Unqualified", "\u2022 The project lost funding of USD 12,216,194 as a result of failure to absorb the money disbursed within the disbursement period. \u2022 There were delays in execution of the project, which was started in 2012 and scheduled to end by January 2015 but had not been completed by the end of the financial year. This was attributed to delays in acquisition of right of way, delays in procurement processes and approval of drawings, change orders and shifting the scope of works. \u2022 The project has not recovered an outstanding receivable of USD 492,515 relating to advance payments made to terminated contractors of Jyoti structures limited and Insolux Ingenieria S.A. \u2022 Due to delays in the execution of the project, project costs such as supervision, material prices, site administrative costs, land value, and insurance escalated leading to requests for supplementary funding. \u2022 There was noted vandalism of project property under Lot A Bujagali \u2013Tororo \u2013 Lessos 220kV Transmission line which affected the progress of work. \u2022 There was direct procurement of some non-assigned sub-contractors initially engaged by the terminated contractor to complete works, some of whom had sued UETCL over issues concerning the termination of the main contractor. \u2022 Contrary to the financing agreement, no new engineer was appointed to monitor and provide independent review of progress of works of the project on the expiry of the Supervising engineer\u2019s contract. \u2022 The performance securities submitted by terminated contractors expired before the end of the project, which exposed UETCL to uncovered risks of project non-performance by the contractor."], ["25", "Hoima - Nkenda Transmission Lines **Opinion** Unqualified", "\u2022 A sum of UGX.12,662,000,172 meant to fund Resettlement Action Plan activities (way leaves and easement), remained un-disbursed to the Project Affected Persons as at 30th June 2019 despite the project completion on 31st July 2018. By the end of June 2019, 54 Project Affected Persons out of 2,119 PAPs remained uncompensated. \u2022 A sum of UGX.1,929,367,113 relating to unpaid taxes and penalties on imported services by the Nkenda-Hoima transmission line contractor during the financial year 2016/2017 remained unsettled with URA and continues to attract interest and penalties."], ["26", "Hoima \u2013 Kinyara \u2013 Kafu  Transmission Line **Opinion** Unqualified", "\u2022 The Hoima-Kafu transmission line faces funding challenges resulting from failure to realise a saving from the ESDP project on Hoima-Kinyara transmission line (TL) as had been anticipated and arranged. \u2022 There was an unspent balance of USD.1,893,414 (UGX.6,996,712,036) out of the total release of USD.3,413,551 (UGX.11,022,478,333) on the GOU counterpart funding meant for compensation of Project Affected Persons. \u2022 There was a delay in compensation of PAPs with only 293 (57.7%) of the 508 identified PAPs paid, leaving a balance of 215 PAPs unpaid."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 212, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY Opinion Unqualified", "SUMMARY OF KEY FINDINGS"], "type": "table"}}, {"content": "199", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 212, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["27", "Uganda Electricity Credit Capitalization Company Limited (UECCCL) **Opinion** Unqualified", "\u2022 No material issues to be reported on."], ["", "**EDUCATION SECTOR**", ""], ["1", "Ministry of Education and sports (MoES) **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.5,745,128,815 representing 2%. Further, the entity remained with unspent balance of UGX. 13,126,982,181 representing absorption level of 95%. \u2022 I sampled and reviewed 59 outputs/activities with a budget of UGX123b representing 43% of the total budget and noted that out of 59 outputs/ activities assessed/reviewed, 2 outputs/ activities representing 0.1% of the total outputs/ activities were not quantified to enable measurement of performance. \u2022 Funds amounting to UGX.412,532,900 were irregularly diverted and spent on other activities without seeking the necessary approvals. \u2022 Domestic arrears increased by 28% from UGX.20,743,534,855 in the previous year to UGX.26,560,530,061 in the year under review. These arrears remained unsettled at the close of the year. \u2022 Notes to the financial statements revealed that funds totalling to UGX.2,186,383,892, advanced to various schools for construction and rehabilitation of institutional structures and purchase of machinery and equipment remained outstanding at the end of the financial year under review. \u2022 Management of the Ministry breached the terms of the agreement by delaying to pay a supplier and this resulted into accumulated interest of UGX.524, 078,842. The payment was nugatory. \u2022 I noted that the ministry budgeted for only UGX.12, 924,912,876 in respect of domestic arrears despite having arrears of UGX.20, 743,534,855 at the beginning of the F/Y. I further noted that the Ministry settled arrears totalling to UGX.10, 919,497,325 during the year despite the under budgeting. \u2022 I noted a number of issues during the audit of Ministry subventions including; Outstanding domestic arrears, under collection of NTR and weaknesses in human resources management. \u2022 I noted that the Ministry had Shortcomings in the implementation of the provisions in the Ministry of Public Service circular standing instructions on staff performance management. The gaps identified include; non-completion of Performance Agreements, no quarterly reviews undertaken, no performance improvement plans prepared, non-submission of reports on Performance Agreements, Performance Appraisals, Performance Improvement Plans to MoPS and lack of mechanism to monitor staff attendance."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 213, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY", "SUMMARY OF KEY FINDINGS \u2022 There were delays in land title processing, with only one land title out of the compensations made being submitted to UETCL."], "type": "table"}}, {"content": [["27", "Uganda Electricity Credit Capitalization Company Limited (UECCCL) **Opinion** Unqualified", "\u2022 No material issues to be reported on."], ["", "**EDUCATION SECTOR**", ""], ["1", "Ministry of Education and sports (MoES) **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.5,745,128,815 representing 2%. Further, the entity remained with unspent balance of UGX. 13,126,982,181 representing absorption level of 95%. \u2022 I sampled and reviewed 59 outputs/activities with a budget of UGX123b representing 43% of the total budget and noted that out of 59 outputs/ activities assessed/reviewed, 2 outputs/ activities representing 0.1% of the total outputs/ activities were not quantified to enable measurement of performance. \u2022 Funds amounting to UGX.412,532,900 were irregularly diverted and spent on other activities without seeking the necessary approvals. \u2022 Domestic arrears increased by 28% from UGX.20,743,534,855 in the previous year to UGX.26,560,530,061 in the year under review. These arrears remained unsettled at the close of the year. \u2022 Notes to the financial statements revealed that funds totalling to UGX.2,186,383,892, advanced to various schools for construction and rehabilitation of institutional structures and purchase of machinery and equipment remained outstanding at the end of the financial year under review. \u2022 Management of the Ministry breached the terms of the agreement by delaying to pay a supplier and this resulted into accumulated interest of UGX.524, 078,842. The payment was nugatory. \u2022 I noted that the ministry budgeted for only UGX.12, 924,912,876 in respect of domestic arrears despite having arrears of UGX.20, 743,534,855 at the beginning of the F/Y. I further noted that the Ministry settled arrears totalling to UGX.10, 919,497,325 during the year despite the under budgeting. \u2022 I noted a number of issues during the audit of Ministry subventions including; Outstanding domestic arrears, under collection of NTR and weaknesses in human resources management. \u2022 I noted that the Ministry had Shortcomings in the implementation of the provisions in the Ministry of Public Service circular standing instructions on staff performance management. The gaps identified include; non-completion of Performance Agreements, no quarterly reviews undertaken, no performance improvement plans prepared, non-submission of reports on Performance Agreements, Performance Appraisals, Performance Improvement Plans to MoPS and lack of mechanism to monitor staff attendance."], ["2", "Uganda Skills Development Project-1338-IDA \u2013 MOES Component **Opinion** Unqualified", "\u2022 I noted that UGX.27.641bn (USD.7.521million) (36.6%) was received from World Bank during the financial year against a budget of UGX.75.603bn resulting into Underperformance of UGX.49.413bn (63.4%). The low disbursement was attributed to absorption challenges. \u2022 Out of UGX.27.641bn (USD.7.521million) received from the IDA during the financial year under review, only UGX.14.569bn (USD.3.786million) was spent by the project resulting into unspent balance of UGX.13.072bn representing an absorption level of only 52.7%. The absorption challenges were attributed to procurement delays. \u2022 A review of the loan disbursement schedules revealed that a sum of only USD.13,249,327 (16.9%) out of the total project funding of USD.78,200,000 had been disbursed and received by the Project despite having only 14 months (23%) project life remaining as of June 2019."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 213, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY", "SUMMARY OF KEY FINDINGS \u2022 There were delays in land title processing, with only one land title out of the compensations made being submitted to UETCL."], "type": "table"}}, {"content": "200", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 213, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["3", "Kyambogo University **Opinion** Unqualified", "\u2022 I noted that out of the budgeted NTR of UGX.89,588,010,633 for the year 2018/19, only UGX.72,783,569,307 was collected representing performance of only 81.2% of the target. \u2022 I noted that the University received off-budget financing to a tune of UGX.3,289,577,154 which was not paid into the consolidated fund and not appropriated by Parliament as required by the law. \u2022 The entity budgeted to receive UGX.146,057,584,540 however UGX.134,909,819,105 was warranted resulting into a budget shortfall of UGX.11,147,765,435 representing 92% performance. \u2022 Funds totalling to UGX.335,231,828 remained unspent at the end of the financial year representing an absorption level of 99.9%. \u2022 I noted that seven (7) activities representing 27% of the assessed activities were not quantified to enable measurement of performance. \u2022 Out of the 19 quantified activities assessed, 14 outputs/activities representing 74% were fully implemented while 5 outputs/activities representing 26% were partially implemented. \u2022 I noted accumulation of Receivables to the tune of UGX.7,540,876,110 as at 30th June 2019. \u2022 A trend analysis of the domestic arrears showed a movement of arrears from UGX.11,050,752,481 in the previous year to UGX.12,468,723,877 at the close of the year under review, an increase of 12.8%. \u2022 I observed that only UGX.1,100,309,563 (10%) was provided for domestic arrears for the FYR:2018/19 despite the accumulated bills of UGX.11,050,752,481 that remained un-paid in the previous FYR:2017/18 resulting into a funding gap of UGX.9,950,442,918 (90%). \u2022 Payments totalling to UGX.463,645,863 were made for arrears that were not disclosed in the prior year\u2019s financial statements. \u2022 Losses of public assets including computers, an ox-plough and other machinery through theft were noted. \u2022 Wasteful expenditure in Court awards totalling to UGX.2,198,708,917 and un-paid court awards amounting to UGX.652,753,428 were noted. There was also excess payment of court awards by UGX.244,468,789. \u2022 Funds totalling UGX.296,603,084 remained unaccounted for.  \u2022 There was under Remittance of Statutory deductions to the tune of UGX.1,331,242,776. \u2022 I noted that out of the teaching staff establishment of 736 positions, the University only had 427 (58%) permanent academic staff creating a variance of 309 (42%) staff. \u2022 Shortcomings were noted in the implementation of the provisions in the Kyambogo Human Resource manual on staff performance management. The gaps identified include non-completion of Performance Agreements, no quarterly reviews undertaken, no performance improvement plans prepared, Performance Appraisals and lack of mechanism to monitor staff attendance. \u2022 There was lack of Annual Report on the affiliated Institutions and evidence of supervision of affiliated institutions."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 214, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY", "SUMMARY OF KEY FINDINGS \u2022 I further noted that only USD.5,368,424.25 (40.5%) of the total grant received by the Ministry had been absorbed leaving a balance of USD.7,880,902.75 on project and colleges bank accounts. \u2022 A review of the 20 activities implemented by the project during the FY revealed that seven (7) activities representing 35% of the assessed activities were not quantified in the Annual work plan to enable measurement of performance. Further, Out of the 13 quantified outputs/activities assessed, only 1 output/activity representing 7.7% was fully implemented, 3 outputs/activities representing 23% were partially implemented while 9 outputs/activities representing 69.2% were not implemented at all. \u2022 I noted that a total of UGX.2,629,647,579 still existed on Institutions accounts unutilized as at year end. \u2022 Audit noted that a total amount of USD.5,368,424.25 which relates to the Project donor component (from project inception) was paid outside IFMS."], "type": "table"}}, {"content": "201", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 214, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["5", "NOHRED Project Makerere **Opinion** Unqualified", "\u2022 No material issues to report on."], ["6", "Petroleum Geoscience Collaboration Programme (ENPE II Project) Makerere **Opinion** Unqualified", "\u2022 No material issues noted."], ["7", "Makerere University Holding Company Limited **Opinion** Unqualified", "\u2022 Included in the statement of financial position on page 8 of the financial statements are accumulated payables of UGX.386,748,722. \u2022 Included in the statement of financial position on page 8 and note 12 of the accounts are accumulated receivables of UGX.317, 854,018. \u2022 It was noted that out of the 5 commercial entities meant to be managed by Makerere University Holdings Limited except for the Guest House all the other business units have never been transferred to the company and no new investments have been set up to-date."], ["8", "Makerere \u2013 SIDA Bilateral Research Program", "\u2022 No material Issues to report on."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 215, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn 4", "SECTOR AND ENTITY  Makerere  University Kampala Opinion Unqualified", "SUMMARY OF KEY FINDINGS \u2022 The entity budgeted to receive UGX. 307,913,199,459 however UGX.302,743,273,917 was warranted resulting into a budget shortfall of UGX. 5,169,925,542 representing 1.68%%. It was also noted that out of the budgeted revenue of UGX.91.27 billion only UGX.88.32 billion was collected representing performance of 96.8% of the target. \u2022 Out of the warrants of UGX.302,743,273,917 only UGX.300,903,846,288 was spent by the entity resulting into unspent balance of UGX.1,839,427,692 representing an absorption level of 99.4%. The unspent balance at the end of the financial year was subsequently swept back to the consolidated fund account. \u2022 Out of 97 activities assessed, 65 activities representing 67% of the total activities were not quantified to enable adequate measurement of performance. Management reported in generic ways, i.e. Procurement of assorted general and specialized laboratory equipment across the colleges, Delivery and installation of laboratory and teaching equipment for the department of Dentistry, Furniture of colleges and non- teaching units among others. \u2022 Out of the 32 quantified activities assessed, 2 activities representing 6% were fully implemented; 13 activities representing 41% was partially implemented while 17 activities representing 53% was not implemented at all. \u2022 The Pension Liabilities of the University has increased to UGX.23,920,219,207 resulting from accumulation of In-House Retirement Benefits. The pension liabilities were originally UGX.12,807,880,678 as at 31st March 2009. \u2022 The entity payables have increased to UGX 22,108,111,071 mainly due to non-payment of withheld PAYE (UGX6,525,834,601), NSSF contribution (UGX.872,408,282), Accumulated salary arrears (UGX976,318,137), and other creditors for goods and services (UGX.14,505,652,462). \u2022 It was noted that NTR of UGX2,729,269,204 and US$696,784.16 collected from short courses and rental income was not remitted to the Consolidated Fund. \u2022 Staff management initiatives as directed by Ministry of Public Service were not fully implemented. The University 142 Senior Management staff did not sign performance agreements; 0nly 218 out of 1,441 staff were appraised; the university did not hold mid-term performance reviews, and the entity had not developed and operationalized a client\u2019s charter."], "type": "table"}}, {"content": "202", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 215, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["9", "Makerere University Africa Centre of Excellence in Materials, Product Development and Nano-Technology Project (MAPRONANO) **Opinion** Unqualified", "\u2022 It was noted that out of the budgeted USD.1,237,000 in the year under review, only USD960,562 was received by MAPRONANO Project reflecting underfunding of USD.276,438. Under funding led to partial implementation of activities and non-implementation of some activities. \u2022 It was noted that a sum of USD.115,885 was spent over and above the approved budget lines contrary to schedule 2, section B, (3) of the financing agreement which requires prior written approval from the International Development Association to spend on activities not included in the annual work plan. \u2022 It was noted that all the regional, International and short courses offered by MAPRONANO Project management were not yet accredited."], ["10", "Makerere  University Regional center for crop Improvement (MARCCI) Project **Opinion** Unqualified", "\u2022 It was noted that out of the budgeted amount of USD.2,114,670 in the year under review, only USD.917,572 was received by MaRCCI Project reflecting underfunding of USD 1,197,098 (57%). As a result, out of the 70 planned activities, 25 were partially implemented while 45 were not implemented at all. \u2022 It was noted that MaRCCI offers the following courses; PhD in Plant breeding and Biotechnology, and MSc in Plant breeding and Seeds system and other short courses but these were not internationally and regionally accredited as required under the grant agreement."], ["11", "Gulu University **Opinion** Qualified", "\u2022 The accounts of the University were marred with material inconsistences, which included; un- explained variances in revenue collected (Ugx. 4,293,751,811) misstatement in statement of Appropriation Account (Ugx. 1,541,544,931) and overstatement of assets (Ugx. 1,384,634,896) among other things which led to qualification of the Accounts. \u2022 The university budgeted to receive UGX.44,703,868,323, but actually received UGX.44,842,503,357, indicating 103% performance. However, UGX.48,017,930,393 was spent by the entity representing an absorption level of 100.7%. This implies that the University spent above the amount released to it by UGX.3,175,427,036. I was not given an explanation on the source of additional funding. \u2022 Out of the 20 quantified activities assessed, 7 activities representing 35% were fully implemented, 6 activities representing 30% were partially implemented while 7 activities representing 35% were not implemented at all. \u2022 I noted that funds to the tune of UGX.2,134,892,736 were irregularly diverted from the activities on which they were budgeted and spent on other activities without seeking or obtaining the necessary approvals. \u2022 I noted that expenditure worth UGX.424,704,250 lacked payment vouchers and other supporting documentation. \u2022 Revenue collected to the tune of UGX.3,985,002,759 was spent at source without remitting it to the consolidated fund. \u2022 The University has an approved organization structure of 1341 staff out of which only 446 posts have been filled, leaving a balance of 895 posts vacant. \u2022 It was noted that the university did not comply with Public Service staff management initiatives. For example, six (6) top managers did not sign performance agreements, 446 did not undergo individual performance reviews, and appraisal reports for the 446 staff in post were not submitted to the University secretary by the due date, and only staff developed performance plans."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 216, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY Opinion Unqualified", "SUMMARY OF KEY FINDINGS"], "type": "table"}}, {"content": [["9", "Makerere University Africa Centre of Excellence in Materials, Product Development and Nano-Technology Project (MAPRONANO) **Opinion** Unqualified", "\u2022 It was noted that out of the budgeted USD.1,237,000 in the year under review, only USD960,562 was received by MAPRONANO Project reflecting underfunding of USD.276,438. Under funding led to partial implementation of activities and non-implementation of some activities. \u2022 It was noted that a sum of USD.115,885 was spent over and above the approved budget lines contrary to schedule 2, section B, (3) of the financing agreement which requires prior written approval from the International Development Association to spend on activities not included in the annual work plan. \u2022 It was noted that all the regional, International and short courses offered by MAPRONANO Project management were not yet accredited."], ["10", "Makerere  University Regional center for crop Improvement (MARCCI) Project **Opinion** Unqualified", "\u2022 It was noted that out of the budgeted amount of USD.2,114,670 in the year under review, only USD.917,572 was received by MaRCCI Project reflecting underfunding of USD 1,197,098 (57%). As a result, out of the 70 planned activities, 25 were partially implemented while 45 were not implemented at all. \u2022 It was noted that MaRCCI offers the following courses; PhD in Plant breeding and Biotechnology, and MSc in Plant breeding and Seeds system and other short courses but these were not internationally and regionally accredited as required under the grant agreement."], ["11", "Gulu University **Opinion** Qualified", "\u2022 The accounts of the University were marred with material inconsistences, which included; un- explained variances in revenue collected (Ugx. 4,293,751,811) misstatement in statement of Appropriation Account (Ugx. 1,541,544,931) and overstatement of assets (Ugx. 1,384,634,896) among other things which led to qualification of the Accounts. \u2022 The university budgeted to receive UGX.44,703,868,323, but actually received UGX.44,842,503,357, indicating 103% performance. However, UGX.48,017,930,393 was spent by the entity representing an absorption level of 100.7%. This implies that the University spent above the amount released to it by UGX.3,175,427,036. I was not given an explanation on the source of additional funding. \u2022 Out of the 20 quantified activities assessed, 7 activities representing 35% were fully implemented, 6 activities representing 30% were partially implemented while 7 activities representing 35% were not implemented at all. \u2022 I noted that funds to the tune of UGX.2,134,892,736 were irregularly diverted from the activities on which they were budgeted and spent on other activities without seeking or obtaining the necessary approvals. \u2022 I noted that expenditure worth UGX.424,704,250 lacked payment vouchers and other supporting documentation. \u2022 Revenue collected to the tune of UGX.3,985,002,759 was spent at source without remitting it to the consolidated fund. \u2022 The University has an approved organization structure of 1341 staff out of which only 446 posts have been filled, leaving a balance of 895 posts vacant. \u2022 It was noted that the university did not comply with Public Service staff management initiatives. For example, six (6) top managers did not sign performance agreements, 446 did not undergo individual performance reviews, and appraisal reports for the 446 staff in post were not submitted to the University secretary by the due date, and only staff developed performance plans."], ["12", "Nakivubo War Memorial Stadium **Opinion** Qualified", "\u2022 I noted some inconsistencies in the amounts presented in the financial statements. The inconsistencies imply that the financial statements are misstated. \u2022 There was a shortfall in revenue amounting to UGX.206,000,000 representing representing 56% of the approved budget amount of UGX.368,954,337."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 216, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY Opinion Unqualified", "SUMMARY OF KEY FINDINGS"], "type": "table"}}, {"content": "203", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 216, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["13", "Higher Education Students Financing Board (HESFB) **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.1,401,004,211 representing 95% performance. \u2022 There was no evidence that the Accounting Officer submitted the annual budget performance reports to the Ministry by 31st July 2019 as required by the Regulations. \u2022 I noted cases where the information reported in the Quarterly performance reports by the Board was inadequate. \u2022 I reviewed 26 activities implemented under 8 program outputs/Budget items worth UGX.25.89bn representing 88% of the total budget and noted that 18 activities representing 69% were fully implemented, 3 activities representing 12% were partially implemented while 5 activities representing 19% were not implemented at all. \u2022 Audit noted that the approved 2018/19 budget and work plans of the Board were inconsistent with the overall Sector Budget in relation to the budgeted number of students to be given loans in the FYR:2018/19. \u2022 A review of the Strategic plan 2017/18-2019/20 revealed that a number of activities that should have been implemented by the financial year 2018/19, the second year of the three (3) year Strategic Plan had not been implemented. \u2022 Failure to amortize the Loan amount due of UGX.15,417,740,798 over the expected recovery period. \u2022 Low Students\u2019 Financing Rate. The Board has on average managed to finance only 43% of the total applicants. \u2022 Low Loan Recovery Rates. The amount recovered is only UGX.40,424,432 (3%) of the expected amount to be recovered of UGX.1,541,774,080 in the financial year 2018/19. \u2022 I noted that the mandate of management of the scholarships by the Government of Uganda has not been handed over to the Board."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 217, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY", "SUMMARY OF KEY FINDINGS \u2022 I noted that Out of the total revenue UGX.162,565,000, a sum of UGX.157,600,306 was spent by the entity resulting into unspent balance of UGX.4,964,694 representing an absorption level of 97%.  \u2022 The stadium had outstanding debts totalling to UGX.516,676,784 which relate to prior year periods. I further observed that management had not developed a policy on provisions and write off of bad debts.  \u2022 The stadium had outstanding creditors totaling to UGX.398,792,494 at the closure of the financial year. It was noted that the liability had grown from UGX.345,509,041 an increase of UGX.53,283,453(15%).  \u2022 I noted that management signed PPP agreement with a private developer without considering proposed amendments by the Attorney General.  \u2022 I noted that the tenure of the PPP agreement between NWMS and a private developer was never specified. This undermines the efficiency and effectiveness of implementation of obligations of each party.  \u2022 The Board of Trustees of the NWMS (contracting authority) failed to prepare and submit to the minister project monitoring reports for the period under review. I was not able to verify the performance of the PPP arrangement and the progress so far made under the project.  \u2022 Contrary to Section 28 (2) of the PPP Act 2015, the private party (Ham Enterprises) neither submitted any annual report nor audited financial statements to the contracting authority. This creates a risk of significant challenges in confirming and certifying the total amount invested by the private party.  \u2022 I noted that some provisions in the Act governing NWMS were outdated and can no longer efficiently serve the needs of the day. I further noted that the trust operates without a strategic plan."], "type": "table"}}, {"content": "204", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 217, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["14", "Uganda Teacher and School Effectiveness Project-1296 IDA (UTSEP) **Opinion** Unqualified", "\u2022 I noted that the project had an opening balance of USD11,680,694, received a total amount of USD22,483,675 resulting into a total amount of USD34,163,869 available for spending during the year under review. However, only USD25,709,058 was spent resulting into unspent balance of USD8,454,810 representing an absorption level of 75%. \u2022 There was an off budget financing of USD8, 714,252 contrary to Paragraph 24.6.2 of Treasury instructions which requires an Accounting Officer to ensure that all planned development partner disbursements under his or her vote are appropriated by Parliament. the project received a total amount of USD22,483,675 against the appropriated amount of USD13,769,423. \u2022 I observed that out of the 53 quantified outputs/activities assessed, 38 outputs/activities representing 72% were fully implemented, 7 outputs/activities representing 13% were partially implemented while 8 outputs/activities representing 15% were not implemented at all by the end of the financial year under review. \u2022 There was delayed commencement of construction projects. I noted that all the site possession for construction works under centralized modality was done beyond 30 days from the date of signing. \u2022 I noted that payments amounting to UGX.7,551,661,934 to contractors were made beyond the stipulated maximum of 30 days from the date of certification which was specified in paragraph 41 of the General Condition of Contracts. for Construction of Facilities at selected Primary Schools which requires the Employer (UTSEP/MoES) to pay the Contractors within 28-30 days from the date of each certification."], ["15", "Skills Development Project-1338-IDA - PSFU Component **Opinion** Unqualified", "\u2022 The Project budgeted to receive UGX.27.361bn (USD.7.6mn) from IDA during the financial year, however UGX.16.479bn (USD.4.427mn) was availed resulting into a budget shortfall of UGX.10.882bn (USD.3.173mn) representing 60% revenue performance. \u2022 Out of a total amount of UGX.19.823bn (USD.5.345mn) comprising of opening cash balance of UGX.3.344bn (USD.0.918mn) and UGX.16.479bn (USD.4.427mn) received from IDA during the financial year, only UGX.14.338bn (USD.3.862mn) was spent by the project resulting into unspent balance of UGX.5.484bn (USD.1.484mn). This represents an absorption level of 72%. \u2022 Out of the 31 activities assessed, 16 activities representing 51.6% were fully implemented, 8 activities representing 25.8% were partially implemented while 7 activities representing 22.6% were not implemented at all. \u2022 Despite the positive progress in achievement of project target results, audit noted that the project has made no disbursements so far under Window 4 which relate to prior learning, despite the project having only 14 months to closure as of June 2019."], ["16", "Uganda National Examinations Board (UNEB) **Opinion** Unqualified", "\u2022 Out of the revenue budget of UGX.115,481,707,578 a sum of UGX.115,480,679,108 representing 99.9% was realized representing 99.9% performance. \u2022 Out of the total revenue; UGX.115,479,364,702 was spent by the Board resulting into unspent balance of UGX.1,314,406 representing an absorption level of 99.9%. However; there was no evidence that the Accounting Officer submitted the annual budget performance reports to the Ministry by 31st July 2019 as required by the Regulations. \u2022 Review of the 4th Quarter Performance report indicated that out of a total of 37 activities analyzed, the implementation for 5 (13.5%) activities was not adequately reported in the Performance report. \u2022 Out of the 29 quantified activities assessed, 23 outputs/activities representing 79% were fully implemented while 6 outputs/activities representing 21% were partially implemented. \u2022 A review of the board\u2019s three (3) year strategic plan of 2017/2018 to 2019/2020 revealed that a number of outputs that had been planned for delivery by the end"]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 218, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY", "SUMMARY OF KEY FINDINGS \u2022 Absence of Key Governing Policies including; the Risk Management policy, ICT policy and Loans recovery policy. \u2022 Shortcomings were noted in the implementation of the Staff Performance Management Initiatives. The gaps identified include; Non development of Performance Agreements and Performance Plans, Non-Completion of Quarterly Performance Reviews and lack of a Client Charter."], "type": "table"}}, {"content": [["14", "Uganda Teacher and School Effectiveness Project-1296 IDA (UTSEP) **Opinion** Unqualified", "\u2022 I noted that the project had an opening balance of USD11,680,694, received a total amount of USD22,483,675 resulting into a total amount of USD34,163,869 available for spending during the year under review. However, only USD25,709,058 was spent resulting into unspent balance of USD8,454,810 representing an absorption level of 75%. \u2022 There was an off budget financing of USD8, 714,252 contrary to Paragraph 24.6.2 of Treasury instructions which requires an Accounting Officer to ensure that all planned development partner disbursements under his or her vote are appropriated by Parliament. the project received a total amount of USD22,483,675 against the appropriated amount of USD13,769,423. \u2022 I observed that out of the 53 quantified outputs/activities assessed, 38 outputs/activities representing 72% were fully implemented, 7 outputs/activities representing 13% were partially implemented while 8 outputs/activities representing 15% were not implemented at all by the end of the financial year under review. \u2022 There was delayed commencement of construction projects. I noted that all the site possession for construction works under centralized modality was done beyond 30 days from the date of signing. \u2022 I noted that payments amounting to UGX.7,551,661,934 to contractors were made beyond the stipulated maximum of 30 days from the date of certification which was specified in paragraph 41 of the General Condition of Contracts. for Construction of Facilities at selected Primary Schools which requires the Employer (UTSEP/MoES) to pay the Contractors within 28-30 days from the date of each certification."], ["15", "Skills Development Project-1338-IDA - PSFU Component **Opinion** Unqualified", "\u2022 The Project budgeted to receive UGX.27.361bn (USD.7.6mn) from IDA during the financial year, however UGX.16.479bn (USD.4.427mn) was availed resulting into a budget shortfall of UGX.10.882bn (USD.3.173mn) representing 60% revenue performance. \u2022 Out of a total amount of UGX.19.823bn (USD.5.345mn) comprising of opening cash balance of UGX.3.344bn (USD.0.918mn) and UGX.16.479bn (USD.4.427mn) received from IDA during the financial year, only UGX.14.338bn (USD.3.862mn) was spent by the project resulting into unspent balance of UGX.5.484bn (USD.1.484mn). This represents an absorption level of 72%. \u2022 Out of the 31 activities assessed, 16 activities representing 51.6% were fully implemented, 8 activities representing 25.8% were partially implemented while 7 activities representing 22.6% were not implemented at all. \u2022 Despite the positive progress in achievement of project target results, audit noted that the project has made no disbursements so far under Window 4 which relate to prior learning, despite the project having only 14 months to closure as of June 2019."], ["16", "Uganda National Examinations Board (UNEB) **Opinion** Unqualified", "\u2022 Out of the revenue budget of UGX.115,481,707,578 a sum of UGX.115,480,679,108 representing 99.9% was realized representing 99.9% performance. \u2022 Out of the total revenue; UGX.115,479,364,702 was spent by the Board resulting into unspent balance of UGX.1,314,406 representing an absorption level of 99.9%. However; there was no evidence that the Accounting Officer submitted the annual budget performance reports to the Ministry by 31st July 2019 as required by the Regulations. \u2022 Review of the 4th Quarter Performance report indicated that out of a total of 37 activities analyzed, the implementation for 5 (13.5%) activities was not adequately reported in the Performance report. \u2022 Out of the 29 quantified activities assessed, 23 outputs/activities representing 79% were fully implemented while 6 outputs/activities representing 21% were partially implemented. \u2022 A review of the board\u2019s three (3) year strategic plan of 2017/2018 to 2019/2020 revealed that a number of outputs that had been planned for delivery by the end"]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}], "page": 218, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY", "SUMMARY OF KEY FINDINGS \u2022 Absence of Key Governing Policies including; the Risk Management policy, ICT policy and Loans recovery policy. \u2022 Shortcomings were noted in the implementation of the Staff Performance Management Initiatives. The gaps identified include; Non development of Performance Agreements and Performance Plans, Non-Completion of Quarterly Performance Reviews and lack of a Client Charter."], "type": "table"}}, {"content": "205 \nSn SECTOR AND ENTITY \n17  \nMakerere  \nUniversity Business School (MUBS) \nOpinion \nUnqualified \n18 Lira University \nOpinion \nUnqualified \nSUMMARY OF KEY FINDINGS \nof the financial year 2018/2019 remained either unimplemented or partially implemented.", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS", "page": 130, "level": 3}}, [{"headings_0": {"content": "Sn SECTOR AND ENTITY", "page": 219, "level": 5}}], [{"headings_0": {"content": "Sn SECTOR AND ENTITY", "page": 219, "level": 5}}], [{"headings_0": {"content": "Opinion", "page": 219, "level": 2}}], [{"headings_0": {"content": "Opinion", "page": 219, "level": 2}}], [{"headings_0": {"content": "Opinion", "page": 219, "level": 2}}], [{"headings_0": {"content": "Opinion", "page": 219, "level": 2}}], [{"headings_0": {"content": "Opinion", "page": 219, "level": 2}}], [{"headings_0": {"content": "SUMMARY OF KEY FINDINGS", "page": 219, "level": 2}}], [{"headings_0": {"content": "SUMMARY OF KEY FINDINGS", "page": 219, "level": 2}}]], "page": 218, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": "- Assessment of staff performance management revealed; failure to develop Performance Agreements, performance plans and the performance improvement plans.", "metadata": {"headings": [{"headings_0": {"content": "SUMMARY OF KEY FINDINGS", "page": 219, "level": 2}}], "page": 219, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "list"}}, {"content": " \n", "metadata": {"headings": [{"headings_0": {"content": "SUMMARY OF KEY FINDINGS", "page": 219, "level": 2}}, [{"headings_0": {"content": "SUMMARY OF KEY FINDINGS", "page": 219, "level": 2}}]], "page": 219, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": "- The current UNEB Act has clauses which financially constrain the board from holding of prescribed meetings due to the large membership of over fifty. An amendment bill approved by Cabinet to address the weaknesses is still under process.", "metadata": {"headings": [{"headings_0": {"content": "SUMMARY OF KEY FINDINGS", "page": 219, "level": 2}}], "page": 219, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "list"}}, {"content": "", "metadata": {"headings": [{"headings_0": {"content": "SUMMARY OF KEY FINDINGS", "page": 219, "level": 2}}], "page": 219, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": "- It was noted that out of the budgeted revenue of UGX.51.892Bn only UGX.38.181Bn was realized representing performance of 73.6 % of the target.", "metadata": {"headings": [{"headings_0": {"content": "SUMMARY OF KEY FINDINGS", "page": 219, "level": 2}}], "page": 219, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "list"}}, {"content": "- 21 out of the 37 activities assessed representing 57% of the total activities were not quantified to enable measurement of performance. Management reported in generic ways such as carrying out field attachment activities and supervision of students, providing reading materials by increasing book ratio through e - books, facilitating students with disabilities with helpers and gadgets.", "metadata": {"headings": [{"headings_0": {"content": "SUMMARY OF KEY FINDINGS", "page": 219, "level": 2}}], "page": 219, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "list"}}, {"content": " \n", "metadata": {"headings": [{"headings_0": {"content": "SUMMARY OF KEY FINDINGS", "page": 219, "level": 2}}, [{"headings_0": {"content": "SUMMARY OF KEY FINDINGS", "page": 219, "level": 2}}]], "page": 219, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": "- Although the entity absorbed (100%) of the funds that were released, some of the activities remained either partially or not implemented at all. Out of the 16 quantified activities assessed, five (5) activities representing 31% were fully implemented, 9 activities representing 56% were partially implemented while two (2) activities representing 13% were not implemented at all.", "metadata": {"headings": [{"headings_0": {"content": "SUMMARY OF KEY FINDINGS", "page": 219, "level": 2}}], "page": 219, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "list"}}, {"content": "", "metadata": {"headings": [{"headings_0": {"content": "SUMMARY OF KEY FINDINGS", "page": 219, "level": 2}}], "page": 219, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": "- I noted that funds amounting to UGX.141,363,732 were irregularly diverted from the activities on which they were budgeted for, without seeking the necessary approvals.", "metadata": {"headings": [{"headings_0": {"content": "SUMMARY OF KEY FINDINGS", "page": 219, "level": 2}}], "page": 219, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "list"}}, {"content": "- The School accumulated domestic arrears of UGX.19,084,373,665 by the end of the financial year under review. This rose by 177% from the previous year\u2019s arrears of UGX.10,793,305,009. Also, included in the arrears total balance is UGX.8,610,930,762 payable to Uganda Consolidated Fund which resulted from the School\u2019s failure to transfer back some of money advanced from UCF and functional fees of UGX.975,461,400 due to Makerere University for the financial year 2018/ 2019 not paid.", "metadata": {"headings": [{"headings_0": {"content": "SUMMARY OF KEY FINDINGS", "page": 219, "level": 2}}], "page": 219, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "list"}}, {"content": "", "metadata": {"headings": [{"headings_0": {"content": "SUMMARY OF KEY FINDINGS", "page": 219, "level": 2}}], "page": 219, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": "- The entity paid domestic arrears of UGX.1,227,876,796 during the year, without budget provision. Out of the paid amount, UGX.1,186,885,042 related to unremitted functional fees to Makerere University.", "metadata": {"headings": [{"headings_0": {"content": "SUMMARY OF KEY FINDINGS", "page": 219, "level": 2}}], "page": 219, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "list"}}, {"content": "", "metadata": {"headings": [{"headings_0": {"content": "SUMMARY OF KEY FINDINGS", "page": 219, "level": 2}}], "page": 219, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": "- A number of staff members were found to be in acting positions for a period of more than six (6) months with no evidence that extensions were expressly authorized by the appointing authority.", "metadata": {"headings": [{"headings_0": {"content": "SUMMARY OF KEY FINDINGS", "page": 219, "level": 2}}], "page": 219, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "list"}}, {"content": "", "metadata": {"headings": [{"headings_0": {"content": "SUMMARY OF KEY FINDINGS", "page": 219, "level": 2}}], "page": 219, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": "- MUBS Arua campus has not obtained accreditation from NCHE and yet is admitting students and conducting lectures.", "metadata": {"headings": [{"headings_0": {"content": "SUMMARY OF KEY FINDINGS", "page": 219, "level": 2}}], "page": 219, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "list"}}, {"content": " \n", "metadata": {"headings": [{"headings_0": {"content": "SUMMARY OF KEY FINDINGS", "page": 219, "level": 2}}, [{"headings_0": {"content": "SUMMARY OF KEY FINDINGS", "page": 219, "level": 2}}]], "page": 219, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": "- All the 24 members of Senior Management had not signed Performance Agreements.", "metadata": {"headings": [{"headings_0": {"content": "SUMMARY OF KEY FINDINGS", "page": 219, "level": 2}}], "page": 219, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "list"}}, {"content": "", "metadata": {"headings": [{"headings_0": {"content": "SUMMARY OF KEY FINDINGS", "page": 219, "level": 2}}], "page": 219, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": "- A total of 1,027 staff in post at the beginning of the financial year 2018/19, had not filled in the annual performance plans.", "metadata": {"headings": [{"headings_0": {"content": "SUMMARY OF KEY FINDINGS", "page": 219, "level": 2}}], "page": 219, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "list"}}, {"content": "", "metadata": {"headings": [{"headings_0": {"content": "SUMMARY OF KEY FINDINGS", "page": 219, "level": 2}}], "page": 219, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": "- There were no quarterly performance reviews undertaken by the staff during the year under review.", "metadata": {"headings": [{"headings_0": {"content": "SUMMARY OF KEY FINDINGS", "page": 219, "level": 2}}], "page": 219, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "list"}}, {"content": "- I noted that cases that require administrative investigation took averagely 5 months to be concluded and those that required police investigations took averagely 15 months.", "metadata": {"headings": [{"headings_0": {"content": "SUMMARY OF KEY FINDINGS", "page": 219, "level": 2}}], "page": 219, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "list"}}, {"content": "", "metadata": {"headings": [{"headings_0": {"content": "SUMMARY OF KEY FINDINGS", "page": 219, "level": 2}}], "page": 219, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": "- The entity had not developed and operationalized a client\u2019s charter as required by the standing orders.", "metadata": {"headings": [{"headings_0": {"content": "SUMMARY OF KEY FINDINGS", "page": 219, "level": 2}}], "page": 219, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "list"}}, {"content": "", "metadata": {"headings": [{"headings_0": {"content": "SUMMARY OF KEY FINDINGS", "page": 219, "level": 2}}], "page": 219, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": "- A number of contracts lacked performance securities as required by the law.", "metadata": {"headings": [{"headings_0": {"content": "SUMMARY OF KEY FINDINGS", "page": 219, "level": 2}}], "page": 219, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "list"}}, {"content": "", "metadata": {"headings": [{"headings_0": {"content": "SUMMARY OF KEY FINDINGS", "page": 219, "level": 2}}], "page": 219, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": "- Local service tax of UGX.92,715,000 deducted from the University employees was not remitted to the respective local councils.", "metadata": {"headings": [{"headings_0": {"content": "SUMMARY OF KEY FINDINGS", "page": 219, "level": 2}}], "page": 219, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "list"}}, {"content": "", "metadata": {"headings": [{"headings_0": {"content": "SUMMARY OF KEY FINDINGS", "page": 219, "level": 2}}], "page": 219, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": "- There was a shortfall in Non-Tax Revenue (NTR) of UGX.1.415Bn representing 36% of the budgeted NTR.", "metadata": {"headings": [{"headings_0": {"content": "SUMMARY OF KEY FINDINGS", "page": 219, "level": 2}}], "page": 219, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "list"}}, {"content": " \n", "metadata": {"headings": [{"headings_0": {"content": "SUMMARY OF KEY FINDINGS", "page": 219, "level": 2}}, [{"headings_0": {"content": "SUMMARY OF KEY FINDINGS", "page": 219, "level": 2}}]], "page": 219, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": "- The university anticipated to receive UGX.18.544Bn as per its revised and approved budget, however a total UGX.16.917Bn (91.2%) was warranted resulting into a budget under performance of UGX.1.626Bn representing 8.8 %.", "metadata": {"headings": [{"headings_0": {"content": "SUMMARY OF KEY FINDINGS", "page": 219, "level": 2}}], "page": 219, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "list"}}, {"content": "", "metadata": {"headings": [{"headings_0": {"content": "SUMMARY OF KEY FINDINGS", "page": 219, "level": 2}}], "page": 219, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": "- Out of the warranted amount of UGX. 16.917Bn, a sum of UGX.16.886Bn was spent by the university resulting into unspent balance of UGX.30,709,890, thus leading to an absorption level of 99.8%.", "metadata": {"headings": [{"headings_0": {"content": "SUMMARY OF KEY FINDINGS", "page": 219, "level": 2}}], "page": 219, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "list"}}, {"content": "206", "metadata": {"headings": [{"headings_0": {"content": "SUMMARY OF KEY FINDINGS", "page": 219, "level": 2}}], "page": 219, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["19", "Kabale University **Opinion** Unqualified", "\u2022 I noted that there was inadequate forecasting of NTR as UGX.5,877,567,374 was collected out of the budgeted revenue collection of UGX.5,188,388,140 for the financial year 2018/19 representing a performance of 113% of the target. \u2022 Funds totalling to UGX.93,884,245 remained unspent at the end of the financial year representing an absorption level of 99.6%. \u2022 I sampled 9 out-puts worth UGX.15.74billion representing 62.5% of the total budget and noted that 4 outputs/activities representing 50% were fully implemented, 4 outputs/activities representing 50% were partially implemented, while 1 output/activity representing 11.2% could not be assessed due to non-quantification of outputs. \u2022 Review of the 4th Quarter performance report noted that the reported amounts spent on different voted outputs were at variance with the amounts spent as per IFMS detailed budget analysis report. \u2022 I noted existence of long outstanding arrears totalling to UGX.1,872,390,164. \u2022 I noted that out of the revised teaching staff establishment of 1062 positions, the University only had 184 (17%) permanent academic staff creating a variance of 878 (83%) staff. \u2022 I noted that Kabale University does not have a rewards and sanctions committee as required by the guidelines. \u2022 Management has not yet developed a client\u2019s charter as required by the standing orders."], ["20", "Mbarara University of Science and Technology (MUST) **Opinion** Unqualified", "\u2022 Out of the budget of UGX.52,186,292,240 the University received UGX.52,184,241,959 (99.9%) resulting into a shortfall of only UGX.2,050,281. \u2022 Out of the warrants of UGX.52,184,241,959 a sum of UGX.51,838,890,797 (99.3%) was spent by the entity resulting into unspent balance of UGX.345,351,162. \u2022 I noted that the University received off-budget financing of UGX.9,230,134,027. \u2022 Out of the budgeted revenue of UGX.11,587,693,658 for the year 2018/19, only UGX.11,412,179,867 was collected representing a performance of 98% of the target. \u2022 Review of the implementation of planned activities revealed that out of the 18 outputs assessed, 11 outputs representing 61% were fully implemented, 5 outputs representing 28% were partially implemented while 2 outputs/activities representing 11% were not implemented at all. \u2022 The financial statements revealed that the University had outstanding payables totalling to UGX.286,121,044 at the closure of the financial year under review. The failure to pay teaching allowances in time affects morale of staff. \u2022 The University had outstanding receivables in uncollected student fees of UGX.220,535,081. \u2022 The University lost three (3) cases and made payments totaling to UGX.123,350,280 in court awards and legal costs. \u2022 The University used direct sourcing on procurement of repair and servicing of Motor vehicles totalling to UGX.239,066,000 without adequate justification. \u2022 Shortcomings were noted in the implementation of the provisions in the circular standing instructions on staff performance management. The gaps identified include non-completion of Performance Agreements, no performance improvement plans prepared, no Performance"]], "metadata": {"headings": [{"headings_0": {"content": "SUMMARY OF KEY FINDINGS", "page": 219, "level": 2}}], "page": 220, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY", "SUMMARY OF KEY FINDINGS \u2022 The university had an outstanding liability of UGX.1.056Bn which accrued during the financial year under review. \u2022 The University had outstanding receivables totaling to UGX.213,124,187 at the closure of the financial year. The receivables relate to funds borrowed by Gulu University, which have remained outstanding since the financial year 2013/2014. \u2022 Out of the 498 approved posts for the University, only 214 (43%) were filled leaving 284 (57%) posts vacant. \u2022 Shortcomings were noted in the implementation of the provisions in the ministry of public service circular standing instructions on staff performance management such as non-completion of Performance Plans, lack of performance improvement plans, Performance Appraisals, client charter and absence of rewards and sanctions committee."], "type": "table"}}, {"content": [["19", "Kabale University **Opinion** Unqualified", "\u2022 I noted that there was inadequate forecasting of NTR as UGX.5,877,567,374 was collected out of the budgeted revenue collection of UGX.5,188,388,140 for the financial year 2018/19 representing a performance of 113% of the target. \u2022 Funds totalling to UGX.93,884,245 remained unspent at the end of the financial year representing an absorption level of 99.6%. \u2022 I sampled 9 out-puts worth UGX.15.74billion representing 62.5% of the total budget and noted that 4 outputs/activities representing 50% were fully implemented, 4 outputs/activities representing 50% were partially implemented, while 1 output/activity representing 11.2% could not be assessed due to non-quantification of outputs. \u2022 Review of the 4th Quarter performance report noted that the reported amounts spent on different voted outputs were at variance with the amounts spent as per IFMS detailed budget analysis report. \u2022 I noted existence of long outstanding arrears totalling to UGX.1,872,390,164. \u2022 I noted that out of the revised teaching staff establishment of 1062 positions, the University only had 184 (17%) permanent academic staff creating a variance of 878 (83%) staff. \u2022 I noted that Kabale University does not have a rewards and sanctions committee as required by the guidelines. \u2022 Management has not yet developed a client\u2019s charter as required by the standing orders."], ["20", "Mbarara University of Science and Technology (MUST) **Opinion** Unqualified", "\u2022 Out of the budget of UGX.52,186,292,240 the University received UGX.52,184,241,959 (99.9%) resulting into a shortfall of only UGX.2,050,281. \u2022 Out of the warrants of UGX.52,184,241,959 a sum of UGX.51,838,890,797 (99.3%) was spent by the entity resulting into unspent balance of UGX.345,351,162. \u2022 I noted that the University received off-budget financing of UGX.9,230,134,027. \u2022 Out of the budgeted revenue of UGX.11,587,693,658 for the year 2018/19, only UGX.11,412,179,867 was collected representing a performance of 98% of the target. \u2022 Review of the implementation of planned activities revealed that out of the 18 outputs assessed, 11 outputs representing 61% were fully implemented, 5 outputs representing 28% were partially implemented while 2 outputs/activities representing 11% were not implemented at all. \u2022 The financial statements revealed that the University had outstanding payables totalling to UGX.286,121,044 at the closure of the financial year under review. The failure to pay teaching allowances in time affects morale of staff. \u2022 The University had outstanding receivables in uncollected student fees of UGX.220,535,081. \u2022 The University lost three (3) cases and made payments totaling to UGX.123,350,280 in court awards and legal costs. \u2022 The University used direct sourcing on procurement of repair and servicing of Motor vehicles totalling to UGX.239,066,000 without adequate justification. \u2022 Shortcomings were noted in the implementation of the provisions in the circular standing instructions on staff performance management. The gaps identified include non-completion of Performance Agreements, no performance improvement plans prepared, no Performance"]], "metadata": {"headings": [{"headings_0": {"content": "SUMMARY OF KEY FINDINGS", "page": 219, "level": 2}}], "page": 220, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY", "SUMMARY OF KEY FINDINGS \u2022 The university had an outstanding liability of UGX.1.056Bn which accrued during the financial year under review. \u2022 The University had outstanding receivables totaling to UGX.213,124,187 at the closure of the financial year. The receivables relate to funds borrowed by Gulu University, which have remained outstanding since the financial year 2013/2014. \u2022 Out of the 498 approved posts for the University, only 214 (43%) were filled leaving 284 (57%) posts vacant. \u2022 Shortcomings were noted in the implementation of the provisions in the ministry of public service circular standing instructions on staff performance management such as non-completion of Performance Plans, lack of performance improvement plans, Performance Appraisals, client charter and absence of rewards and sanctions committee."], "type": "table"}}, {"content": "207", "metadata": {"headings": [{"headings_0": {"content": "SUMMARY OF KEY FINDINGS", "page": 219, "level": 2}}], "page": 220, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["21", "Pharm-Bio Technology and Traditional Medicine Centre (PHARMBIOTRAC) **Opinion** Unqualified", "\u2022 I noted that a sum of only USD.1,795,000 (60.3%) was received in the 2 years of project implementation out of the expected amount of USD.2,978,587 resulting into a shortfall of USD.1,183,587. \u2022 The project lacks strategies and patents to market and protect its innovated products respectively. \u2022 The new laboratory equipment procured on 26th July 2018 had not been fully installed. Besides, the equipment lack insurance. \u2022 I noted delayed Payment of Tuition for new Scholarship Students."], ["22", "Muni University **Opinion** Unqualified", "\u2022 There was a budget shortfall of UGX.48,199,999 representing 0.29%. Further, the entity remained with unspent balance of UGX.187,342,624 representing an absorption level of 98.8%. \u2022 Out of the 17 quantified outputs/activities assessed, 8 outputs/activities representing 47% were fully implemented; 8 outputs/activities representing 47% were partially implemented while 1 output/activity representing 6% was not implemented at all.  \u2022 Domestic arrears of UGX.124,198,505 were incurred in the year under review. The arrears remained unsettled at the close of the year.  \u2022 A review of the University staff establishment against the accredited and taught courses revealed that out of the approved 136 academic staff posts, only 42(31%) positions were filled leaving 94 (69%) vacancies.  \u2022 The University\u2019s land in Bidibidi measuring about 439.58 acres does not have a land title. There is a possibility of land encroachment that may result into loss of the land.  \u2022 Shortcomings were noted in the implementation of the provisions in the circular standing instructions on staff performance management. The gaps identified include non-submission of reports on Performance Appraisals, Performance Improvement Plans to MoPS, lack of mechanism to monitor staff attendance, non-existence of a rewards and sanctions committee and client charter."], ["23", "Uganda Management Institute (UMI) **Opinion** Unqualified", "\u2022 I noted that out of the budgeted revenue of UGX.30,130,073,000, only UGX.19,794,182,141 was collected representing performance of only 65.7% of the target. \u2022 The entity budgeted to receive a total of UGX.38,274,325,314 however UGX.32,214,692,527 was warranted resulting into a budget shortfall of UGX.6,059,632,787 representing 84% performance. \u2022 Funds totalling to UGX.2,368,781,787 remained unspent at the end of the financial year representing an absorption level of 92.6%. \u2022 I noted that eight (8) activities representing 44.4% of the total activities were either not quantified or not reported to enable measurement of performance. \u2022 Out of the 10 quantified activities assessed, 6 outputs/activities representing 60% were fully implemented while 4 outputs/activities representing 40% were partially implemented. \u2022 I noted that 8 outputs achieved as per management performance reports were not reported on in the PBS quarterly performance reports. \u2022 I noted accumulation of Receivables to the tune of UGX.5,755,237,792 as at 30th June 2019 which was attributed to defaulting in fees payments by students. \u2022 Domestic arrears reduced from UGX.3.6bn to 1.38bn. The amount is still significant and was attributed to revenue shortfalls. \u2022 A total amount of UGX.451,230,072 was paid in relation to contract staff salaries and allowances for the previous financial year which had not been disclosed as arrears in the prior year financial statements."]], "metadata": {"headings": [{"headings_0": {"content": "SUMMARY OF KEY FINDINGS", "page": 219, "level": 2}}], "page": 221, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY", "SUMMARY OF KEY FINDINGS Appraisals, Performance Improvement plans, lack of mechanism to monitor staff attendance and Failure to develop a Client Charter. \u2022 One new academic program offered was not yet accredited while accreditation for 22 programs had expired. Teaching of unaccredited and un-reviewed programs may result into nullification of university awards."], "type": "table"}}, {"content": [["21", "Pharm-Bio Technology and Traditional Medicine Centre (PHARMBIOTRAC) **Opinion** Unqualified", "\u2022 I noted that a sum of only USD.1,795,000 (60.3%) was received in the 2 years of project implementation out of the expected amount of USD.2,978,587 resulting into a shortfall of USD.1,183,587. \u2022 The project lacks strategies and patents to market and protect its innovated products respectively. \u2022 The new laboratory equipment procured on 26th July 2018 had not been fully installed. Besides, the equipment lack insurance. \u2022 I noted delayed Payment of Tuition for new Scholarship Students."], ["22", "Muni University **Opinion** Unqualified", "\u2022 There was a budget shortfall of UGX.48,199,999 representing 0.29%. Further, the entity remained with unspent balance of UGX.187,342,624 representing an absorption level of 98.8%. \u2022 Out of the 17 quantified outputs/activities assessed, 8 outputs/activities representing 47% were fully implemented; 8 outputs/activities representing 47% were partially implemented while 1 output/activity representing 6% was not implemented at all.  \u2022 Domestic arrears of UGX.124,198,505 were incurred in the year under review. The arrears remained unsettled at the close of the year.  \u2022 A review of the University staff establishment against the accredited and taught courses revealed that out of the approved 136 academic staff posts, only 42(31%) positions were filled leaving 94 (69%) vacancies.  \u2022 The University\u2019s land in Bidibidi measuring about 439.58 acres does not have a land title. There is a possibility of land encroachment that may result into loss of the land.  \u2022 Shortcomings were noted in the implementation of the provisions in the circular standing instructions on staff performance management. The gaps identified include non-submission of reports on Performance Appraisals, Performance Improvement Plans to MoPS, lack of mechanism to monitor staff attendance, non-existence of a rewards and sanctions committee and client charter."], ["23", "Uganda Management Institute (UMI) **Opinion** Unqualified", "\u2022 I noted that out of the budgeted revenue of UGX.30,130,073,000, only UGX.19,794,182,141 was collected representing performance of only 65.7% of the target. \u2022 The entity budgeted to receive a total of UGX.38,274,325,314 however UGX.32,214,692,527 was warranted resulting into a budget shortfall of UGX.6,059,632,787 representing 84% performance. \u2022 Funds totalling to UGX.2,368,781,787 remained unspent at the end of the financial year representing an absorption level of 92.6%. \u2022 I noted that eight (8) activities representing 44.4% of the total activities were either not quantified or not reported to enable measurement of performance. \u2022 Out of the 10 quantified activities assessed, 6 outputs/activities representing 60% were fully implemented while 4 outputs/activities representing 40% were partially implemented. \u2022 I noted that 8 outputs achieved as per management performance reports were not reported on in the PBS quarterly performance reports. \u2022 I noted accumulation of Receivables to the tune of UGX.5,755,237,792 as at 30th June 2019 which was attributed to defaulting in fees payments by students. \u2022 Domestic arrears reduced from UGX.3.6bn to 1.38bn. The amount is still significant and was attributed to revenue shortfalls. \u2022 A total amount of UGX.451,230,072 was paid in relation to contract staff salaries and allowances for the previous financial year which had not been disclosed as arrears in the prior year financial statements."]], "metadata": {"headings": [{"headings_0": {"content": "SUMMARY OF KEY FINDINGS", "page": 219, "level": 2}}], "page": 221, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY", "SUMMARY OF KEY FINDINGS Appraisals, Performance Improvement plans, lack of mechanism to monitor staff attendance and Failure to develop a Client Charter. \u2022 One new academic program offered was not yet accredited while accreditation for 22 programs had expired. Teaching of unaccredited and un-reviewed programs may result into nullification of university awards."], "type": "table"}}, {"content": "208", "metadata": {"headings": [{"headings_0": {"content": "SUMMARY OF KEY FINDINGS", "page": 219, "level": 2}}], "page": 221, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["24", "Busitema University **Opinion** Unqualified", "\u2022 Out of the budgeted NTR of UGX.6,787,386,284, the University collected a sum of UGX.6,689,346,000 representing performance of 98.6%. \u2022 The University anticipated to receive UGX.40, 315,771,719 as per its revised and approved budget, however a total of UGX 39,997,969,042 (99.2%) was warranted resulting into a budget under performance of UGX.317, 802,677 representing 0.8 %. \u2022 Of the total amount warranted of UGX.39,997,969,042, an amount of UGX.39, 43,510,241 was spent by the University resulting into unspent balance of UGX.254,458,801, leading to an absorption level of 99.4%. \u2022 Out of the 9 quantified outputs/activities assessed, 5 outputs/activities representing 55.6% were fully implemented, and 4 outputs/activities representing 44.4% were partially implemented. \u2022 A trend analysis of the domestic arrears showed a movement of arrears from UGX.80,000,000 in the previous year to UGX. 321,192,777 in the year under review an increase of ugx.241, 192,277(301%). \u2022 The University received grants totaling to UGX.646,512,713. A total amount of UGX.463,172,959 was spent leaving a balance of UGX.183,339,754 at the close of the financials year. However, these grants were not appropriated by Parliament. \u2022 Shortcomings were noted in the implementation of the provisions in the circular standing instructions on staff performance management such as non-completion of Performance Agreements, lack of quarterly performance reviews, lack of performance improvement plans, non- submission of reports on Performance Agreements, Performance Appraisals, Performance Improvement Plans to MoPS and lack of mechanism to monitor staff attendance, and absence of the rewards and sanctions committee. \u2022 The University lacks a client\u2019s charter contrary to the standing orders."], ["25", "Mandela National Stadium \u2013 Namboole **Opinion** Unqualified", "\u2022 There was a revenue shortfall of UGX.945,395,000 (33%). I noted that out of the budgeted revenue of UGX.2,850,946,000 for the year 2018/19, only UGX.1,905,551,000 was realised with actual collections of UGX.1,148,000,000 representing 59.7% of the budgeted revenue. \u2022 I noted that Stadium had only three outputs all of which were quantified. Out of the three quantified outputs/activities assessed, 2 outputs/activities representing 66.7% were fully implemented and 1 output/activity representing 33.3% was partially implemented. There was no output/activity that was not implemented at all. \u2022 Mandela National stadium closed the financial year with a payables figure of UGX.4,598,118,967 of which UGX.194,651,993 was incurred during the financial year under review. I noted that 70% (UGX.3,196,935,617) of the payables belong to URA in form of arrears and penalties which have been outstanding for over 10 years. \u2022 The Stadium management entered into a management contract of the Mandela Sports Hotel in February 2016 with M/s Fortune Energy Limited.  I however noted that M/s Fortune Energy Limited had breached contract with accumulated arrears totalling to UGX.1,375,569,240 and Mandela National Stadium (MNSL) has since not taken any legal step to have the arrears recovered but instead M/s Fortune Energy Limited had taken the Stadium to court. \u2022 I noted that out of the five (5) Performance improvement initiatives identified during the financial year 2017/18 for the 5 staff appraised, none was included in the performance plan/training plan of the year under review. \u2022 I noted that the stadium management does not have a mechanism to reward to performing and extemporary staff contrary paragraph 15.4.1 of the MNSL-Human Resource manual."]], "metadata": {"headings": [{"headings_0": {"content": "SUMMARY OF KEY FINDINGS", "page": 219, "level": 2}}], "page": 222, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY", "SUMMARY OF KEY FINDINGS \u2022 I observed that only UGX.136,884,544 (3.2%) was provided for domestic arrears for the FYR:2018/19 despite the accumulated bills of UGX.4,279,801,852 that remained un-paid in the previous FYR:2017/18 resulting into a funding gap of UGX.4,142,917,308 (96.8%). \u2022 Whereas the target for PHD graduation was 20%, the institute attained 7% implying a variance of 13%. \u2022 I observed that out of the approved establishment of 272 positions, UMI had only 197 filled positions leaving 75 (28%) positions Vacant."], "type": "table"}}, {"content": [["24", "Busitema University **Opinion** Unqualified", "\u2022 Out of the budgeted NTR of UGX.6,787,386,284, the University collected a sum of UGX.6,689,346,000 representing performance of 98.6%. \u2022 The University anticipated to receive UGX.40, 315,771,719 as per its revised and approved budget, however a total of UGX 39,997,969,042 (99.2%) was warranted resulting into a budget under performance of UGX.317, 802,677 representing 0.8 %. \u2022 Of the total amount warranted of UGX.39,997,969,042, an amount of UGX.39, 43,510,241 was spent by the University resulting into unspent balance of UGX.254,458,801, leading to an absorption level of 99.4%. \u2022 Out of the 9 quantified outputs/activities assessed, 5 outputs/activities representing 55.6% were fully implemented, and 4 outputs/activities representing 44.4% were partially implemented. \u2022 A trend analysis of the domestic arrears showed a movement of arrears from UGX.80,000,000 in the previous year to UGX. 321,192,777 in the year under review an increase of ugx.241, 192,277(301%). \u2022 The University received grants totaling to UGX.646,512,713. A total amount of UGX.463,172,959 was spent leaving a balance of UGX.183,339,754 at the close of the financials year. However, these grants were not appropriated by Parliament. \u2022 Shortcomings were noted in the implementation of the provisions in the circular standing instructions on staff performance management such as non-completion of Performance Agreements, lack of quarterly performance reviews, lack of performance improvement plans, non- submission of reports on Performance Agreements, Performance Appraisals, Performance Improvement Plans to MoPS and lack of mechanism to monitor staff attendance, and absence of the rewards and sanctions committee. \u2022 The University lacks a client\u2019s charter contrary to the standing orders."], ["25", "Mandela National Stadium \u2013 Namboole **Opinion** Unqualified", "\u2022 There was a revenue shortfall of UGX.945,395,000 (33%). I noted that out of the budgeted revenue of UGX.2,850,946,000 for the year 2018/19, only UGX.1,905,551,000 was realised with actual collections of UGX.1,148,000,000 representing 59.7% of the budgeted revenue. \u2022 I noted that Stadium had only three outputs all of which were quantified. Out of the three quantified outputs/activities assessed, 2 outputs/activities representing 66.7% were fully implemented and 1 output/activity representing 33.3% was partially implemented. There was no output/activity that was not implemented at all. \u2022 Mandela National stadium closed the financial year with a payables figure of UGX.4,598,118,967 of which UGX.194,651,993 was incurred during the financial year under review. I noted that 70% (UGX.3,196,935,617) of the payables belong to URA in form of arrears and penalties which have been outstanding for over 10 years. \u2022 The Stadium management entered into a management contract of the Mandela Sports Hotel in February 2016 with M/s Fortune Energy Limited.  I however noted that M/s Fortune Energy Limited had breached contract with accumulated arrears totalling to UGX.1,375,569,240 and Mandela National Stadium (MNSL) has since not taken any legal step to have the arrears recovered but instead M/s Fortune Energy Limited had taken the Stadium to court. \u2022 I noted that out of the five (5) Performance improvement initiatives identified during the financial year 2017/18 for the 5 staff appraised, none was included in the performance plan/training plan of the year under review. \u2022 I noted that the stadium management does not have a mechanism to reward to performing and extemporary staff contrary paragraph 15.4.1 of the MNSL-Human Resource manual."]], "metadata": {"headings": [{"headings_0": {"content": "SUMMARY OF KEY FINDINGS", "page": 219, "level": 2}}], "page": 222, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY", "SUMMARY OF KEY FINDINGS \u2022 I observed that only UGX.136,884,544 (3.2%) was provided for domestic arrears for the FYR:2018/19 despite the accumulated bills of UGX.4,279,801,852 that remained un-paid in the previous FYR:2017/18 resulting into a funding gap of UGX.4,142,917,308 (96.8%). \u2022 Whereas the target for PHD graduation was 20%, the institute attained 7% implying a variance of 13%. \u2022 I observed that out of the approved establishment of 272 positions, UMI had only 197 filled positions leaving 75 (28%) positions Vacant."], "type": "table"}}, {"content": "209", "metadata": {"headings": [{"headings_0": {"content": "SUMMARY OF KEY FINDINGS", "page": 219, "level": 2}}], "page": 222, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["27", "National Council of Sports (NCS) **Opinion** Unqualified", "\u2022 There was a budget shortfall amounting to UGX.2,313,955,229 representing 12%. Further, the entity spent more than the available funds by UGX.440,745,024 representing an absorption level of 105% and this resulted into accumulation of domestic arrears of Ugx.499,410,805 during the year. \u2022 I reviewed all the 18 outputs/activities with a total budget of UGX.18,891,348,600 representing 100% of the total budget and noted that 12 (85%) of the total outputs were not quantified to enable measurement of performance. Further, of the 10 quantified outputs/activities assessed, 2 outputs/activities representing 20% were fully implemented; 2 output/activity representing 20% was partially implemented while 6 output/activity representing 60% were not implemented at all. \u2022 I noted that NCS contracted and paid out UGX.335,582,000 to External lawyers as legal fees for handling various cases without following the due procurement process. \u2022 Shortcomings were noted in the implementation of the provisions in the circular standing instructions on staff performance management. The gaps identified include irregular meetings of the rewards and sanctions committee, absence of a client charter and lack of standard departure registers."], ["28", "Uganda Petroleum Institute Kigumba **Opinion** Unqualified", "\u2022 I observed slow implementation of a contract for construction of selected infrastructure at the Institute. \u2022 I noted absence of an internal audit function at the institute. \u2022 Out of the institute budget of Ugx. 9,028,880,004, only Ugx. 7,720,000,000 was realized representing 85.5% performance. As a result, planned procurements such as medical insurance scheme and furniture were not carried out."], ["29", "Albertine Region Sustainable Development Project-1310 (ARSDP \u2013MOES Component) **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.27,018,152,000 representing 51%. Further, the entity remained with unspent balance of UGX. 11,882,875,062 representing absorption level of 53.3%. \u2022 Out of a total of 21 out puts analyzed, 12 out puts were found inaccurate upon verification. \u2022 From the sampled 21 activities, 6 activities were not quantified to enable measurement of performance but reported in generic ways. \u2022 Out of the 15 quantified outputs/activities assessed, only 1 output/activity representing 7% was fully implemented 5 outputs/activities representing 33% were partially implemented while 9 outputs/activities representing 60% were not implemented at all. \u2022 Payments made outside IFMS contrary to IDA requirements."]], "metadata": {"headings": [{"headings_0": {"content": "SUMMARY OF KEY FINDINGS", "page": 219, "level": 2}}], "page": 223, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn 26", "SECTOR AND ENTITY  National Council for Higher Education (NCHE) Opinion Unqualified", "SUMMARY OF KEY FINDINGS \u2022 I noted that out of the budgeted revenue of UGX.10,987,346,000 for the year 2018/19, only UGX.8,728,280,498 was realized representing performance of only 79.4 % of the target. \u2022 Out of a total of UGX.9,047,757,166 comprising of opening cash balance of UGX.319,476,668 and UGX.8,728,280,498 received by the Council during the financial year, only UGX.8,278,250,861 was spent by the entity resulting into unspent balance of UGX.769,506,305, thus representing an absorption level of 91.5%. \u2022 I reviewed 98 activities implemented under the 10 program outputs indicated in the entity annual work plan for the financial year 2018/2019 and established that 53 activities representing 54% of the assessed activities were not quantified to enable adequate measurement of entity performance. \u2022 Out of the 1,206 programmes received for accreditation during the financial year 2018/2019, only 1,141 (94.6%) were assessed of which and only 335 (29%) were accredited. \u2022 It was noted that whereas Council reported cash contributions of UGX.3,514,411,933 from students during the FYR: 2018/2019 against a budget of UGX.4 Billion, Universities and Tertiary institutions did not submit enrolled Students Registers to NCHE to verify Student Contributions. \u2022 A review of the NCHE human resource establishment revealed that out of the 100 approved positions for the Council, only 48 (48%) positions were filled leaving 62 (62%) positions vacant."], "type": "table"}}, {"content": "210", "metadata": {"headings": [{"headings_0": {"content": "SUMMARY OF KEY FINDINGS", "page": 219, "level": 2}}], "page": 223, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["30", "Education Service Commission (ESC) **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.64, 448,958 representing 0.67%. of the budget. Further, the entity remained with unspent balance of UGX.978, 141,383 representing an absorption level of 89.74%. \u2022 I reviewed all the 47 outputs with a budget of UGX.9,599,744,708 representing 100% of the total budget and noted that 34 outputs representing 70.2% of the total outputs were not quantified to enable measurement of performance. Further, out of the 13 quantified outputs/activities assessed, 8 outputs/activities representing 17.2% were fully Implemented, 3 outputs/activities representing 6.38% were partially implemented while 1 output/activity representing 2.13% was not implemented at all. \u2022 I noted that the approved budget and work plans for the financial year under review (2018/19) and other prior years had consistently excluded strategic objective No 5.1(vi) of the overall ESC strategic plan about the construction of an office block for the Commission. \u2022 Shortcomings were noted in the implementation of the provisions in the circular standing instructions on staff performance management. The gaps identified include non-completion of Performance Plans, no quarterly reviews undertaken, no performance improvement plans prepared, and non-submission of reports on Performance Agreements, Performance Appraisals, and Performance Improvement Plans to MoPS, inadequate mechanism to monitor staff attendance, failure to submit reports on absenteeism, Delays in conclusion of disciplinary cases and failure to development of Performance Agreements/targets."], ["31", "National Curriculum Development Centre (NCDC) **Opinion** Unqualified", "\u2022 The entity budgeted to receive UGX.7,434,201,458 however UGX.7,024,630,682 was warranted resulting into a budget shortfall of UGX.409,570,776 representing 94.5% performance. \u2022 Out of the warrants (UGX.7,024,630,682), UGX.7,006,057,362 was spent by the entity resulting into unspent balance of UGX.18,573,320 representing an absorption level of 99.7%. \u2022 I noted that out of the 26 activities assessed, seven (7) activities representing 27% of the total activities were either not quantified or not reported on to enable measurement of performance. \u2022 Out of the 19 quantified activities assessed, 11 activities representing 58% were fully implemented; seven (7) activities representing 37% were partially implemented while one (1) activity representing 5% was not implemented at all. \u2022 Outstanding domestic arrears of UGX.311,656,336 as at 30th June 2019. \u2022 I observed that out of the 173 approved posts for the Centre, only 89 were filled leaving 84 (49%) posts vacant. \u2022 Shortcomings were noted in the implementation of the provisions in the circular standing instructions on staff performance management. The gaps identified include non-completion of Performance Agreements/Plans, no quarterly reviews undertaken, no performance improvement plans prepared and lack of mechanism to monitor staff attendance."], ["32", "Management Training and Advisory Centre (MTAC) **Opinion** Unqualified", "\u2022 I noted that the Centre budgeted for UGX.6,094,033,000 and received only UGX.5,324,204,000, thus resulting into a budget shortfall of UGX.769,829,000. \u2022 I noted that Accounting Officer did not prepare the annual budget performance reports as required by regulations. This curtailed effective monitoring and analysis of the MTAC\u2019s performance. \u2022 I noted that MTAC had student debtors whose accounts totaling to UGX.557, 553,708 have been outstanding as far back as F/Y 2011/2012 contrary to the MTAC Credit and Debt Management Policy, 2015. \u2022 I noted that URA erroneously garnished a sum of UGX.266, 518,689 from MTAC\u2019s Barclays Bank account No.0341395879. According to management, the agency notice was erroneously issued and funds taken by URA. This amount remained outstanding at the closure of the F/Y under review. \u2022 I noted that only 53 (73.6%) out of 72 posts of the MTAC established structure were filled leaving 19 (26.4%) posts vacant. I further noted that key administrative positions such as Executive"]], "metadata": {"headings": [{"headings_0": {"content": "SUMMARY OF KEY FINDINGS", "page": 219, "level": 2}}], "page": 224, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY", "SUMMARY OF KEY FINDINGS  \u2022 Lack of regular audit reviews contrary to the requirement of the IDA requirements."], "type": "table"}}, {"content": [["30", "Education Service Commission (ESC) **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.64, 448,958 representing 0.67%. of the budget. Further, the entity remained with unspent balance of UGX.978, 141,383 representing an absorption level of 89.74%. \u2022 I reviewed all the 47 outputs with a budget of UGX.9,599,744,708 representing 100% of the total budget and noted that 34 outputs representing 70.2% of the total outputs were not quantified to enable measurement of performance. Further, out of the 13 quantified outputs/activities assessed, 8 outputs/activities representing 17.2% were fully Implemented, 3 outputs/activities representing 6.38% were partially implemented while 1 output/activity representing 2.13% was not implemented at all. \u2022 I noted that the approved budget and work plans for the financial year under review (2018/19) and other prior years had consistently excluded strategic objective No 5.1(vi) of the overall ESC strategic plan about the construction of an office block for the Commission. \u2022 Shortcomings were noted in the implementation of the provisions in the circular standing instructions on staff performance management. The gaps identified include non-completion of Performance Plans, no quarterly reviews undertaken, no performance improvement plans prepared, and non-submission of reports on Performance Agreements, Performance Appraisals, and Performance Improvement Plans to MoPS, inadequate mechanism to monitor staff attendance, failure to submit reports on absenteeism, Delays in conclusion of disciplinary cases and failure to development of Performance Agreements/targets."], ["31", "National Curriculum Development Centre (NCDC) **Opinion** Unqualified", "\u2022 The entity budgeted to receive UGX.7,434,201,458 however UGX.7,024,630,682 was warranted resulting into a budget shortfall of UGX.409,570,776 representing 94.5% performance. \u2022 Out of the warrants (UGX.7,024,630,682), UGX.7,006,057,362 was spent by the entity resulting into unspent balance of UGX.18,573,320 representing an absorption level of 99.7%. \u2022 I noted that out of the 26 activities assessed, seven (7) activities representing 27% of the total activities were either not quantified or not reported on to enable measurement of performance. \u2022 Out of the 19 quantified activities assessed, 11 activities representing 58% were fully implemented; seven (7) activities representing 37% were partially implemented while one (1) activity representing 5% was not implemented at all. \u2022 Outstanding domestic arrears of UGX.311,656,336 as at 30th June 2019. \u2022 I observed that out of the 173 approved posts for the Centre, only 89 were filled leaving 84 (49%) posts vacant. \u2022 Shortcomings were noted in the implementation of the provisions in the circular standing instructions on staff performance management. The gaps identified include non-completion of Performance Agreements/Plans, no quarterly reviews undertaken, no performance improvement plans prepared and lack of mechanism to monitor staff attendance."], ["32", "Management Training and Advisory Centre (MTAC) **Opinion** Unqualified", "\u2022 I noted that the Centre budgeted for UGX.6,094,033,000 and received only UGX.5,324,204,000, thus resulting into a budget shortfall of UGX.769,829,000. \u2022 I noted that Accounting Officer did not prepare the annual budget performance reports as required by regulations. This curtailed effective monitoring and analysis of the MTAC\u2019s performance. \u2022 I noted that MTAC had student debtors whose accounts totaling to UGX.557, 553,708 have been outstanding as far back as F/Y 2011/2012 contrary to the MTAC Credit and Debt Management Policy, 2015. \u2022 I noted that URA erroneously garnished a sum of UGX.266, 518,689 from MTAC\u2019s Barclays Bank account No.0341395879. According to management, the agency notice was erroneously issued and funds taken by URA. This amount remained outstanding at the closure of the F/Y under review. \u2022 I noted that only 53 (73.6%) out of 72 posts of the MTAC established structure were filled leaving 19 (26.4%) posts vacant. I further noted that key administrative positions such as Executive"]], "metadata": {"headings": [{"headings_0": {"content": "SUMMARY OF KEY FINDINGS", "page": 219, "level": 2}}], "page": 224, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY", "SUMMARY OF KEY FINDINGS  \u2022 Lack of regular audit reviews contrary to the requirement of the IDA requirements."], "type": "table"}}, {"content": "211", "metadata": {"headings": [{"headings_0": {"content": "SUMMARY OF KEY FINDINGS", "page": 219, "level": 2}}], "page": 224, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["33", "Economic Policy Research centre (EPRC) **Opinion** Unqualified", "\u2022 No material Issues to report on."], ["34", "African Centre for Agroecology and Livelihood Systems (ACALISE) implemented by Uganda Martyrs University under Africa Higher Education centres of Excellence (ACE III Project) Project No. 126974, Loan No. 5797-UG **Opinion** Unqualified", "\u2022 No material Issues to report on."], ["35", "UNFPA Kotido **Opinion** Qualified", "\u2022 Expenditure totalling to UGX.53,770,000 was not supported by third party documentation. This included UGX.51,535,000 relating to ineligible expenses, and UGX.2,235,000 in regard to facilitation expenditure incurred during UNFPA annual review meeting that was reimbursed by the National Population Council. \u2022 UNFPA stopped funding the \u201c8th GOU/UNFPA Country Programme\u201d which was being implemented by Kotido District local government by 31st December, 2017. Therefore, despite the fact that the programme was supposed to run upto 2020 as per the signed Implementing Partner Agreement, its activities are no longer operational since UNFPA suspended its funding."], ["", "**SCIENCE AND INNOVATION**", ""], ["1", "Ministry of Science, Technology and Innovation  (MoSTI) **Opinion** Unqualified", "\u2022 The Ministry had an approved budget of UGX.59,420,335,258, out of which UGX.47,070,818,373 was released resulting into a shortfall of UGX.12,349,516,885, which was equivalent to 21% of the budget. This affected implementation of some of the planned activities. \u2022 The Ministry remained with unspent balance of UGX.619,862,781 representing an absorption level of 99%. Unspent balances imply that planned activities were not fully implemented. \u2022 Out of the seventeen out puts/activities with a total budget of UGX.55.87billion implemented by the entity during the financial year, I sampled and reviewed twelve outputs/activities with a budget of UGX.55.82billion representing 99% of the total budget and I established that the annual planned outputs/ activities assessed/reviewed were not quantified to enable measurement of performance. \u2022 Funds amounting to UGX.73,473,857 were irregularly diverted and spent on other activities without seeking the necessary approvals. \u2022 A total of UGX.518,120,389 was advanced to Ministry staff through their personal bank accounts to undertake various activities contrary to Paragraph 31 of the Public Finance Management Regulations, 2016. \u2022 Procurements valued at UGX.212,363,820 lacked evidence of sending notice to all bidders who participated in the Procurements, and acknowledgements thereof, and there was no evidence of display on the Website of MoSTI. This points to lack of transparency in the said procurements, contrary to the procurement law."]], "metadata": {"headings": [{"headings_0": {"content": "SUMMARY OF KEY FINDINGS", "page": 219, "level": 2}}], "page": 225, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY", "SUMMARY OF KEY FINDINGS Director, Director Finance and Administration, Manager Human resource and Administration, Accountant and Internal Auditor have remained in acting status/position for over 2 years."], "type": "table"}}, {"content": "212", "metadata": {"headings": [{"headings_0": {"content": "SUMMARY OF KEY FINDINGS", "page": 219, "level": 2}}], "page": 225, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["2", "Uganda National Council for Science and Technology (UNCST) **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.6,866,779,000 representing 47% of the budget. \u2022 I reviewed 63 out-puts and noted that 27 outputs/activities representing 43% were fully implemented; 19 outputs/activities representing 30% was partially implemented while 17 outputs/activities representing 27% were not implemented at all. \u2022 Several unimplemented activities/outputs were noted upon review of the Innovation Fund Operations. These majorly resulted from shortfalls in funding over previous two financial years. \u2022 Shortcomings were noted in the implementation of the provisions in the Circular Standing Instructions on staff performance management. The gaps identified include non-completion of performance agreements, non-completion of performance appraisals, lack of performance plans and lack of client charter."], ["3", "Presidential Initiative For Banana Industrial Development (PIBID) **Opinion** Unqualified", "\u2022 I noted that the term of Presidential Initiative on Banana Industrial Development (PIBID) Board and Management Committee expired in October 2015 and has not been renewed since then. \u2022 I established that PIBID had an opening balance of UGX.1,201,640,014, as at 1st July, 2018, yet these funds were not returned to the Consolidated Fund as per Section 17 of the Public Finance and Management Act, 2015. \u2022 I established that the entity\u2019s management collected and used at source a total of UGX.119,935,450 obtained from promotional sales without authority and appropriation by Parliament. \u2022 It was noted that during the Financial Year 2018/2019, the Domestic arrears brought forward were UGX.2,288,020,035 while the domestic arrears as at the close of the Financial Year were UGX.6,616,077,104, resulting into a 35% increase. \u2022 During the financial year, management deducted UGX.633,205,884, as PAYE, from employee\u2019s salaries but did not remit it to Uganda Revenue Authority. \u2022 It was observed that outstanding obligations to National Security Fund at the end of the Financial Year 2018/2019 were UGX.829,409,254. \u2022 I noted that the entity lacked land titles for its land at Sanga (approximately 50 acres) and at Kyamugambira (approximately 4 acres) where the water source is located."], ["4", "Kiira Motors Corporation **Opinion** Unqualified", "\u2022 The Memorandum and Articles of the Association of Kiira Motors Corporation prescribes a nine (9) Member Board of Directors providing for Majority (5) independent Directors, but noted that only two members have been appointed. The Corporation lacks a fully constituted Board of Directors that provides policy guidance, oversight for the implementation of the Corporation\u2019s projects, and establishes and oversees the projects governance and management structures. \u2022 I established that Kiira Motors Corporation received UGX.23,298,588,923 and spent only UGX.22,481,205,856 resulting into under absorption of UGX.817,383,067. \u2022 Funding balance on UDC Bank Account not incorporated in the Budget UGX.1,712,157,836 \u2022 I noted staffing gaps; Out of the 35 approved positions, only 31 positions were filled leaving 4 positions vacant. \u2022 Audit Inspection revealed advance payment of UGX.17,320,349,251 to the Contractor for constructing the factory, warehouse and circular roads. However, no certificate of completion has been issued for work so far done."]], "metadata": {"headings": [{"headings_0": {"content": "SUMMARY OF KEY FINDINGS", "page": 219, "level": 2}}], "page": 226, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY", "SUMMARY OF KEY FINDINGS \u2022 By the end of the financial year 2018/2019, out of the 142 established positions at the Ministry, only 115 were filled leaving 27 positions still vacant. This impacts negatively on the Ministry\u2019s capacity to deliver its mandate. \u2022 The Ministry received UGX.30bn during the Financial 2017/18 as Innovation Funds and distributed the Funds to Uganda National Council of Science and Technology (UGX.8,802,340,000), Uganda Industrial Research Institute (UGX.5,927,660,000), Presidential Initiative on Banana Industrial Development (UGX.8,470,000,000) and Ministry of Science, Technology and Innovation (UGX.6,800,000,000). It was established that there was no legal framework to guide the budget and distribution of the Innovation Funds."], "type": "table"}}, {"content": [["2", "Uganda National Council for Science and Technology (UNCST) **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.6,866,779,000 representing 47% of the budget. \u2022 I reviewed 63 out-puts and noted that 27 outputs/activities representing 43% were fully implemented; 19 outputs/activities representing 30% was partially implemented while 17 outputs/activities representing 27% were not implemented at all. \u2022 Several unimplemented activities/outputs were noted upon review of the Innovation Fund Operations. These majorly resulted from shortfalls in funding over previous two financial years. \u2022 Shortcomings were noted in the implementation of the provisions in the Circular Standing Instructions on staff performance management. The gaps identified include non-completion of performance agreements, non-completion of performance appraisals, lack of performance plans and lack of client charter."], ["3", "Presidential Initiative For Banana Industrial Development (PIBID) **Opinion** Unqualified", "\u2022 I noted that the term of Presidential Initiative on Banana Industrial Development (PIBID) Board and Management Committee expired in October 2015 and has not been renewed since then. \u2022 I established that PIBID had an opening balance of UGX.1,201,640,014, as at 1st July, 2018, yet these funds were not returned to the Consolidated Fund as per Section 17 of the Public Finance and Management Act, 2015. \u2022 I established that the entity\u2019s management collected and used at source a total of UGX.119,935,450 obtained from promotional sales without authority and appropriation by Parliament. \u2022 It was noted that during the Financial Year 2018/2019, the Domestic arrears brought forward were UGX.2,288,020,035 while the domestic arrears as at the close of the Financial Year were UGX.6,616,077,104, resulting into a 35% increase. \u2022 During the financial year, management deducted UGX.633,205,884, as PAYE, from employee\u2019s salaries but did not remit it to Uganda Revenue Authority. \u2022 It was observed that outstanding obligations to National Security Fund at the end of the Financial Year 2018/2019 were UGX.829,409,254. \u2022 I noted that the entity lacked land titles for its land at Sanga (approximately 50 acres) and at Kyamugambira (approximately 4 acres) where the water source is located."], ["4", "Kiira Motors Corporation **Opinion** Unqualified", "\u2022 The Memorandum and Articles of the Association of Kiira Motors Corporation prescribes a nine (9) Member Board of Directors providing for Majority (5) independent Directors, but noted that only two members have been appointed. The Corporation lacks a fully constituted Board of Directors that provides policy guidance, oversight for the implementation of the Corporation\u2019s projects, and establishes and oversees the projects governance and management structures. \u2022 I established that Kiira Motors Corporation received UGX.23,298,588,923 and spent only UGX.22,481,205,856 resulting into under absorption of UGX.817,383,067. \u2022 Funding balance on UDC Bank Account not incorporated in the Budget UGX.1,712,157,836 \u2022 I noted staffing gaps; Out of the 35 approved positions, only 31 positions were filled leaving 4 positions vacant. \u2022 Audit Inspection revealed advance payment of UGX.17,320,349,251 to the Contractor for constructing the factory, warehouse and circular roads. However, no certificate of completion has been issued for work so far done."]], "metadata": {"headings": [{"headings_0": {"content": "SUMMARY OF KEY FINDINGS", "page": 219, "level": 2}}], "page": 226, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY", "SUMMARY OF KEY FINDINGS \u2022 By the end of the financial year 2018/2019, out of the 142 established positions at the Ministry, only 115 were filled leaving 27 positions still vacant. This impacts negatively on the Ministry\u2019s capacity to deliver its mandate. \u2022 The Ministry received UGX.30bn during the Financial 2017/18 as Innovation Funds and distributed the Funds to Uganda National Council of Science and Technology (UGX.8,802,340,000), Uganda Industrial Research Institute (UGX.5,927,660,000), Presidential Initiative on Banana Industrial Development (UGX.8,470,000,000) and Ministry of Science, Technology and Innovation (UGX.6,800,000,000). It was established that there was no legal framework to guide the budget and distribution of the Innovation Funds."], "type": "table"}}, {"content": "213", "metadata": {"headings": [{"headings_0": {"content": "SUMMARY OF KEY FINDINGS", "page": 219, "level": 2}}], "page": 226, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["", "**GENDER AND SOCIAL DEVELOPMENT**", ""], ["1", "Ministry of Gender, Labour and Social Development (MoGLSD) **Opinion** Unqualified", "\u2022 Out of the approved budget of UGX.179,611,242,998, a sum of UGX.164,877,651,311 was realized resulting into a shortfall of UGX.14, 733,591,687 representing 8.2 %. \u2022 Out of the warrants of UGX.164,877,651,311, a sum of UGX.163,991,951,115 was spent indicating an absorption rat of 99.46%. However, UGX.885,700,196 was unspent and it related to salary and gratuity. \u2022 I sampled 52 out-puts with a budget of UGX. 171,251,594,698, representing 99.43% of the total budget, and noted that 6 (11.5%) of the total sampled outputs were not quantified to enable measurement of performance. Further, Out of the 46 quantified outputs/activities assessed, 34 outputs/activities representing 73.91% were fully implemented, 3 outputs/activities representing 6.52% were partially implemented while 9 outputs/activities representing 19.56% were not implemented at all. \u2022 Funds amounting to UGX. 23,513,667 were irregularly diverted resulting into mischarge of expenditure. \u2022 UGX.325,350,674 was paid as interest charges relating to the delay in payment of rent on time by the Ministry. \u2022 There was a delay to make payments of the total outstanding workers compensation worth UGX.1, 662,044,951. \u2022 During the year 73.9% of budgeted YLP funds were realized indicating a shortfall of 26.3%. it was however noted that UGX.2,915,173,000 recovered from the YLP activities was not remitted to the Bank of Uganda recovery account. In addition, UGX.5,691,812,289 recovered could not be linked to any district/group due to lack of reconciliations. \u2022 There was a shortfall of UGX.33,522,287,839 (27%) in budgeted UWEP funding. UGX.1,159,952,130 (68%) constituting recoverable funds remained outstanding. Receipts amounting to UGX.595, 982,801 could not be tagged to any District Local Governments and individual women groups due to lack of reconciliation. \u2022 A variance of UGX 55,898,743 was noted between reported recoveries and actual account balances for the UWEP funds."]], "metadata": {"headings": [{"headings_0": {"content": "SUMMARY OF KEY FINDINGS", "page": 219, "level": 2}}], "page": 227, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn 5", "SECTOR AND ENTITY  Uganda Industrial Research Institute (UIRI) Opinion Unqualified", "SUMMARY OF KEY FINDINGS \u2022 The Accounting Officer did not make sufficient budget provisions towards the settlement of domestic arrears despite the accumulation of a total of UGX.1,290,513,798 in un-paid obligations the previous year. The amount provided in the budget for 2018/19 was only UGX.44,579,000 which is 3.4% of the reported arrears for the previous financial year. Notably, by the close of FY 2018/19, the Institute owed UGX.1,188,492,840. \u2022 It was noted that the Institute irregularly accumulated domestic arrears worth UGX.1,030,805,995 without due regard to Section 21(2) of the Public Finance Management Act. Failure to adhere to the PFMA provisions poses a risk of rejection of budget requests for settlement of such domestic arrears by Treasury and exposes the entity to reputational risk due to delayed payment. \u2022 I noted that the Accounting Officer paid UGX.1,571,898,856 for outstanding liabilities relating to previous financial years without a budget provision. Consequently, a total of UGX.1,571,898,856 was diverted by the Accounting Officer from the current year budget activities and used to settle domestic arrears for the past year.  \u2022 From reviews of Human resource personal files, I noted that a total of 85 employees (also on the payroll) had expired contracts which was contrary to the Institute\u2019s Human Resource Policy. Failure to enter into written contracts with employees in service exposes the Institute to a risk of litigation. \u2022 A review of employee personnel files revealed that annual employee performance appraisals were not conducted for all staff. Performance appraisals of staff were only conducted at the point of renewal of individual contracts. Failure to conduct periodic appraisals of employees may lead to staff failing to meet their expected targets which in turn negatively impacts the overall performance of the organization."], "type": "table"}}, {"content": "214", "metadata": {"headings": [{"headings_0": {"content": "SUMMARY OF KEY FINDINGS", "page": 219, "level": 2}}], "page": 227, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["2", "Supporting Children\u2019s Opportunity Through Protection and Empowerment (SCOPE) Project **Opinion** Unqualified", "\u2022 A review of the Project Manual, approved work plans and performance/progress reports revealed that whereas the Project received all the budgeted for funds for its entire life span of USD.673,000, some activities according to the final Project report were not fully implemented as planned. Activities such as orientation of leaders, training of health workers were achieved up to 88%, whereas newspaper supplements attained only 50%. \u2022 A review of the end of project report dated January 2019 revealed that the International Justice Mission (IJM) changed one staff without seeking approval of the Ministry on replacement, thus contravening the terms and conditions in the contract."], ["3", "National Council for Disability **Opinion** Unqualified", "\u2022 Out of the approved budget of UGX 1,236,000,000 a sum of UGX 1,066,759,701 was realized, representing 86.3% and resulting in a shortfall of UGX169,240,299 (13.7%). \u2022 Out of the released amount of UGX 1,066, 759, 701, and earned interest of UGX.2,403,539, management spent only UGX.1,022,882,244, resulting into an unspent balance ofUGX.46,280,996 representing an absorption level of 95.7%. \u2022 Management did not deduct and remit Local Service Tax of UGX 670,000 from its employees to the respective local governments. \u2022 I noted continued land encroachment, inadequate enrollment, curriculum and certification development, inadequate staffing and equipment were challenges noted in a sample of rehabilitation and shelter centres for persons with disabilities. \u2022 I noted shortfalls in the achievement of the UN convention rules for states in regard to persons with disabilities, which include inadequate specialized attentions to refugees with disabilities, awareness-raising for government programmes, provision of medical care, lack of a personal assistance program and access to the physical environment."], ["4", "National Council of Older Persons **Opinion** Unqualified", "\u2022 Out of the approved budget of UGX.225,000,000 a sum of UGX.225,000,000 was realized, representing 100 %. \u2022 Out of the warrants of UGX.225,000,000, only UGX.218,084,721 was available for the new Secretariat, resulting into a shortfall of UGX 6,915,279. \u2022 The stakeholders failed to meet for purposes of reviewing the Council\u2019s performance for the entire period and hence areas of improvement could not be assessed. \u2022 Districts and Municipal Councils failed to submit annual reports for older persons and hence the health and psychological conditions of older persons could not be ascertained. \u2022 District Secretariats were found to be under resourced in terms of staffing and funding, meaning the activities relating to older persons may not be adequately addressed. \u2022 Municipality and sub county council secretariats were found to be understaffed and insufficiently facilitated."]], "metadata": {"headings": [{"headings_0": {"content": "SUMMARY OF KEY FINDINGS", "page": 219, "level": 2}}], "page": 228, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY", "SUMMARY OF KEY FINDINGS \u2022 out of an estimated one million workplaces in the country only three thousand one hundred fifty- six (3,156) workplaces were registered (0.3%) and a total 690 workplaces had not renewed their OSH certificates. \u2022 The approved budget for the Green Jobs programme for the FY2018/19 was UGX.0.2Bn out of the planned annual budget of UGX 100Bn leaving a funding gap of UGX 98.8 Bn. \u2022 Shortcomings were noted in the implementation of the provisions in the circular standing instructions on staff performance management. The gaps identified include non-completion of Performance Agreements, no quarterly reviews undertaken, no performance improvement plans prepared, non-submission of reports on Performance Agreements, Performance Appraisals, Performance Improvement Plans to MoPS and lack of mechanism to monitor staff attendance. \u2022 Further analysis revealed that out of UGX.26,564,839,997 recovered funds, only UGX.9,439,752,580 had been revolved to other youth groups leaving a balance of UGX.17,125,087,417."], "type": "table"}}, {"content": [["2", "Supporting Children\u2019s Opportunity Through Protection and Empowerment (SCOPE) Project **Opinion** Unqualified", "\u2022 A review of the Project Manual, approved work plans and performance/progress reports revealed that whereas the Project received all the budgeted for funds for its entire life span of USD.673,000, some activities according to the final Project report were not fully implemented as planned. Activities such as orientation of leaders, training of health workers were achieved up to 88%, whereas newspaper supplements attained only 50%. \u2022 A review of the end of project report dated January 2019 revealed that the International Justice Mission (IJM) changed one staff without seeking approval of the Ministry on replacement, thus contravening the terms and conditions in the contract."], ["3", "National Council for Disability **Opinion** Unqualified", "\u2022 Out of the approved budget of UGX 1,236,000,000 a sum of UGX 1,066,759,701 was realized, representing 86.3% and resulting in a shortfall of UGX169,240,299 (13.7%). \u2022 Out of the released amount of UGX 1,066, 759, 701, and earned interest of UGX.2,403,539, management spent only UGX.1,022,882,244, resulting into an unspent balance ofUGX.46,280,996 representing an absorption level of 95.7%. \u2022 Management did not deduct and remit Local Service Tax of UGX 670,000 from its employees to the respective local governments. \u2022 I noted continued land encroachment, inadequate enrollment, curriculum and certification development, inadequate staffing and equipment were challenges noted in a sample of rehabilitation and shelter centres for persons with disabilities. \u2022 I noted shortfalls in the achievement of the UN convention rules for states in regard to persons with disabilities, which include inadequate specialized attentions to refugees with disabilities, awareness-raising for government programmes, provision of medical care, lack of a personal assistance program and access to the physical environment."], ["4", "National Council of Older Persons **Opinion** Unqualified", "\u2022 Out of the approved budget of UGX.225,000,000 a sum of UGX.225,000,000 was realized, representing 100 %. \u2022 Out of the warrants of UGX.225,000,000, only UGX.218,084,721 was available for the new Secretariat, resulting into a shortfall of UGX 6,915,279. \u2022 The stakeholders failed to meet for purposes of reviewing the Council\u2019s performance for the entire period and hence areas of improvement could not be assessed. \u2022 Districts and Municipal Councils failed to submit annual reports for older persons and hence the health and psychological conditions of older persons could not be ascertained. \u2022 District Secretariats were found to be under resourced in terms of staffing and funding, meaning the activities relating to older persons may not be adequately addressed. \u2022 Municipality and sub county council secretariats were found to be understaffed and insufficiently facilitated."], ["5", "Uganda National Cultural Centre (UNCC)", "\u2022 The centre had an approved budget of UGX 3,465,342,000, out of which UGX.2,775,562,172 (80.09%) was released resulting into a shortfall of UGX 689,779,828 (19.9%)."]], "metadata": {"headings": [{"headings_0": {"content": "SUMMARY OF KEY FINDINGS", "page": 219, "level": 2}}], "page": 228, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY", "SUMMARY OF KEY FINDINGS \u2022 out of an estimated one million workplaces in the country only three thousand one hundred fifty- six (3,156) workplaces were registered (0.3%) and a total 690 workplaces had not renewed their OSH certificates. \u2022 The approved budget for the Green Jobs programme for the FY2018/19 was UGX.0.2Bn out of the planned annual budget of UGX 100Bn leaving a funding gap of UGX 98.8 Bn. \u2022 Shortcomings were noted in the implementation of the provisions in the circular standing instructions on staff performance management. The gaps identified include non-completion of Performance Agreements, no quarterly reviews undertaken, no performance improvement plans prepared, non-submission of reports on Performance Agreements, Performance Appraisals, Performance Improvement Plans to MoPS and lack of mechanism to monitor staff attendance. \u2022 Further analysis revealed that out of UGX.26,564,839,997 recovered funds, only UGX.9,439,752,580 had been revolved to other youth groups leaving a balance of UGX.17,125,087,417."], "type": "table"}}, {"content": "215", "metadata": {"headings": [{"headings_0": {"content": "SUMMARY OF KEY FINDINGS", "page": 219, "level": 2}}], "page": 228, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["6", "Equal Opportunities Commission (EOC) **Opinion** Qualified", "\u2022 Despite 100% release of the budget of UGX 13,171,882,296, the entity remained with unspent balance of UGX.1,251,072,414 representing an absorption level of 90.6%. \u2022 I noted the entity received off-budget financing to a tune of UGX 5,461,863,043 which was not paid into the Consolidated Fund as required by the law. \u2022 Out of the total operating expenditure of UGX.10,654,415,226, payment records for UGX.5,655,856,395 (53%) expended during the entire financial year were missing. \u2022 Out of the 10 quantified outputs/activities assessed, 01 outputs/activities representing 10% of the outputs and UGX 20 Million (0.16%) of the expenditure of UG remained un-implemented by the end of the financial year. \u2022 Funds amounting to UGX.783,380,204 were irregularly diverted and spent on other activities without seeking the necessary approvals. \u2022 Long outstanding salary advances worth UGX 211,105,359 (94%) not supported by a ledger indicating how much is outstanding from individuals and for how long. \u2022 Gratuity over payment of UGX 218,926,523 made during the year and 6 staffs were not paid gratuity worth UGX 66,552,595, and the latter payable was not recognised in the Financial Statements. \u2022 Management paid out gratuity amounting to UGX 1,064,077,266 without deducting PAYE worth UGX 319,223,179. \u2022 Management irregularly paid out UGX 668,119,060 and UGX 322,677,265 towards duty and consultancy allowances, respectively. \u2022 UGX 144,318,908 of employer contribution was not remitted to the NSSF. \u2022 Shortcomings were noted in the implementation of staff performance management initiatives. The gaps identified included; non-completion of Performance Agreements, no quarterly reviews undertaken, no performance improvement plans prepared, non-submission of reports on Performance Agreements, Performance Appraisals not undertaken, Performance Improvement Plans not submitted to MoPS, and lack of mechanism to monitor staff attendance."], ["7", "National Youth Council (NYC) **Opinion** Unqualified", "\u2022 Management did not make statutory remittances of both PAYE and NSSF amounting to UGX.65,800,617 and UGX.113,580,367 in relation to the FY 2017/18 and FY 2018/19 respectively. \u2022 Un budgeted for payments totaling UGX.20,759,500 relating to previous year (2017/18) were effected in FY 2018/19, neither were they verified by the internal auditor as arrears. \u2022 Whereas the National Youth Council Amendment Act of 2003 provides for the District Local Government to support District Youth Council programmes under locally generated revenues, this requirement has not been met by many districts. \u2022 The National Youth Council Act requires the Council to be an autonomous entity with a separate Vote but since its inception in 1993 this has never been implemented. \u2022 Most of the enabling provisions in the National Youth Council (NYC) Act have never been implemented. For example, the District Youth Councils are supposed to have Secretariats and be independent but this is not the case."], ["8", "Uganda National Children\u2019s Authority (UNCA) **Opinion** Qualified", "\u2022 Out of an approved budget of UGX 1,024,033,420, UGX 821,864,323 (80.3%) was received, resulting into a shortfall of UGX 202,169,097 (19.7%). Of the released amount, UGX 820,220,594 (99.8%) was utilized. \u2022 A sum of UGX. 52,300,000 remained unaccounted for due to lack of supporting documentation. \u2022 The Authority does not have a board nor supporting board committees, is understaffed, and current staff members operate under short-term six-month contracts."]], "metadata": {"headings": [{"headings_0": {"content": "SUMMARY OF KEY FINDINGS", "page": 219, "level": 2}}], "page": 229, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY Opinion Unqualified", "SUMMARY OF KEY FINDINGS \u2022 Management accumulated VAT payable of UGX.1,377,348,266 as at the end of the year and did not remit the same to the Uganda Revenue Authority. \u2022 Statutory deductions of PAYE (UGX.664,680,679) and NSSF (UGX.469,795,653) remained un- remitted at the close of the financial year."], "type": "table"}}, {"content": [["6", "Equal Opportunities Commission (EOC) **Opinion** Qualified", "\u2022 Despite 100% release of the budget of UGX 13,171,882,296, the entity remained with unspent balance of UGX.1,251,072,414 representing an absorption level of 90.6%. \u2022 I noted the entity received off-budget financing to a tune of UGX 5,461,863,043 which was not paid into the Consolidated Fund as required by the law. \u2022 Out of the total operating expenditure of UGX.10,654,415,226, payment records for UGX.5,655,856,395 (53%) expended during the entire financial year were missing. \u2022 Out of the 10 quantified outputs/activities assessed, 01 outputs/activities representing 10% of the outputs and UGX 20 Million (0.16%) of the expenditure of UG remained un-implemented by the end of the financial year. \u2022 Funds amounting to UGX.783,380,204 were irregularly diverted and spent on other activities without seeking the necessary approvals. \u2022 Long outstanding salary advances worth UGX 211,105,359 (94%) not supported by a ledger indicating how much is outstanding from individuals and for how long. \u2022 Gratuity over payment of UGX 218,926,523 made during the year and 6 staffs were not paid gratuity worth UGX 66,552,595, and the latter payable was not recognised in the Financial Statements. \u2022 Management paid out gratuity amounting to UGX 1,064,077,266 without deducting PAYE worth UGX 319,223,179. \u2022 Management irregularly paid out UGX 668,119,060 and UGX 322,677,265 towards duty and consultancy allowances, respectively. \u2022 UGX 144,318,908 of employer contribution was not remitted to the NSSF. \u2022 Shortcomings were noted in the implementation of staff performance management initiatives. The gaps identified included; non-completion of Performance Agreements, no quarterly reviews undertaken, no performance improvement plans prepared, non-submission of reports on Performance Agreements, Performance Appraisals not undertaken, Performance Improvement Plans not submitted to MoPS, and lack of mechanism to monitor staff attendance."], ["7", "National Youth Council (NYC) **Opinion** Unqualified", "\u2022 Management did not make statutory remittances of both PAYE and NSSF amounting to UGX.65,800,617 and UGX.113,580,367 in relation to the FY 2017/18 and FY 2018/19 respectively. \u2022 Un budgeted for payments totaling UGX.20,759,500 relating to previous year (2017/18) were effected in FY 2018/19, neither were they verified by the internal auditor as arrears. \u2022 Whereas the National Youth Council Amendment Act of 2003 provides for the District Local Government to support District Youth Council programmes under locally generated revenues, this requirement has not been met by many districts. \u2022 The National Youth Council Act requires the Council to be an autonomous entity with a separate Vote but since its inception in 1993 this has never been implemented. \u2022 Most of the enabling provisions in the National Youth Council (NYC) Act have never been implemented. For example, the District Youth Councils are supposed to have Secretariats and be independent but this is not the case."], ["8", "Uganda National Children\u2019s Authority (UNCA) **Opinion** Qualified", "\u2022 Out of an approved budget of UGX 1,024,033,420, UGX 821,864,323 (80.3%) was received, resulting into a shortfall of UGX 202,169,097 (19.7%). Of the released amount, UGX 820,220,594 (99.8%) was utilized. \u2022 A sum of UGX. 52,300,000 remained unaccounted for due to lack of supporting documentation. \u2022 The Authority does not have a board nor supporting board committees, is understaffed, and current staff members operate under short-term six-month contracts."]], "metadata": {"headings": [{"headings_0": {"content": "SUMMARY OF KEY FINDINGS", "page": 219, "level": 2}}], "page": 229, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn", "SECTOR AND ENTITY Opinion Unqualified", "SUMMARY OF KEY FINDINGS \u2022 Management accumulated VAT payable of UGX.1,377,348,266 as at the end of the year and did not remit the same to the Uganda Revenue Authority. \u2022 Statutory deductions of PAYE (UGX.664,680,679) and NSSF (UGX.469,795,653) remained un- remitted at the close of the financial year."], "type": "table"}}, {"content": "216", "metadata": {"headings": [{"headings_0": {"content": "SUMMARY OF KEY FINDINGS", "page": 219, "level": 2}}], "page": 229, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["10", "National Library of Uganda (NLU) **Opinion** Unqualified", "\u2022 Out of the approved budget of UGX 931,330,000 for the year, only UGX 894,330,596 was released giving a shortfall of UGX 36,990,404. \u2022 Expenditure of UGX 25,634,624 was not supported with complete supporting documents. \u2022 PAYE of UGX 9,186,973 was not deducted and remitted to URA, which exposed the entity to the risk of penalties and fines. \u2022 The entity is operating without a Board, since the expiry of the tenure of the previous Board, impacting on decision making and leadership on strategic entity issues. \u2022 The entity is operating rented premises whose tenancy agreement expired in 2015 and is yet to be renewed. In the event of a disagreement the entity is exposed to the risk associated with litigation and disruption of its operations."]], "metadata": {"headings": [{"headings_0": {"content": "SUMMARY OF KEY FINDINGS", "page": 219, "level": 2}}], "page": 230, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["Sn 9", "SECTOR AND ENTITY  National Women\u2019s Council (NWC) Opinion Unqualified", "SUMMARY OF KEY FINDINGS \u2022 The entity budgeted to receive UGX.885,000,000. However, only UGX.804,875,702 was released resulting into a budget shortfall of UGX.80,124,298 representing 9.05 % shortfall in available funds for expenditure during the year. \u2022 Out of the released funds only UGX.796,006,342 was spent by the entity resulting into an unspent balance of UGX.8,869,360, representing an absorption level of 98.9%. \u2022 There were outstanding payables of UGX.1,697,500 relating to the previous year, while UGX.8,956,000 arose in the period under review. \u2022 The Council did not have representation by the non-governmental organizations and female students. As a result, the Council\u2019s main objective of ensuring the unity of Ugandan women may be defeated. \u2022 The lower women\u2019s Councils were not being funded to implement their planned activities, consequently, the objectives of the formation of the women\u2019s Act may not be achieved in a timely and effective manner."], "type": "table"}}, {"content": "217 \nANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "metadata": {"headings": [{"headings_0": {"content": "SUMMARY OF KEY FINDINGS", "page": 219, "level": 2}}, [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}]], "page": 230, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["1", "Zombo DLG **Opinion** Qualified", "\u2022 Non-produced assets (land and cultivated assets) worth UGX.0.56Bn which were purchased during the year lacked supporting documents. \u2022 Prior year commitments totalling to UGX.1.27Bn paid during the year were omitted in the statement of appropriation account based on nature of expenditure. \u2022 Funds worth UGX.0.11Bn were withdrawn from the bank account number 6712100029 and 6712100028 for production and statutory bodies departments respectively, without the CAO and CFO authority \u2022 Funds worth UGX.0.12Bn were unaccounted for. \u2022 There was a shortfall in releases amounting to UGX. 1.9Bn representing 9% under release. Further, there was under collection of local revenue amounting to UGX 0.037Bn representing (14%) performance. \u2022 I noted that out of the total warrants of UGX.23 Bn, the entity spent UGX.23.27Bn was representing an absorption level of 101%. \u2022 Majority of key outputs were achieved except for activities under UgIFT involving construction of a seed school and upgrade of the Health Centre from HCII to HCIII. \u2022 Two motor cycles with registration numbers LG0045-111 and UG 4455M were stolen and the loss report not availed. \u2022 Under UgIFT, field inspection revealed incomplete works on some of the sampled outputs \u2022 Under NUSAF-3, two groups received the money and this was shared amongst themselves. \u2022 Under URF, field Inspection revealed that some roads had large potholes while the drainage and culverts were blocked. \u2022 Under YLP, it was observed that the district had recovered only UGX.0.19Bn (49%) out of the expected total amount due (Interest inclusive) of UGX.0.39Bn leaving an outstanding balance of UGX.0.20Bn."], ["2", "Arua DLG **Opinion** Qualified", "\u2022 Employees above the retirement age were paid salaries totalling UGX.339,861,704 during the year. \u2022 Pension and gratuity arrears totalling UGX.790,817,887 had not been accounted for at the time of writing this report. \u2022 In the employee/ Staff list I noted that the length of service for some pensioners and active staff was not correct. \u2022 I noted that salaries and gratuity totalling UGX 43,284,636 was paid to staff not on the staff list during the year. \u2022 There was a shortfall in releases amounting to UGX.26.759Bn representing 17%. Further, the entity overspent UGX.0.0126Bn. \u2022 Under NUSAF-3 UGX 1,728,000,000 was used to support 96 beneficiary sub-groups for FY 2017/2018 however, UGX 401,250,000 was misappropriated from the groups. In addition, I noted override of the Procurement function of the CPMCs and lack of contracts for Community Facilitators \u2022 Under URF I noted that UGX 188,301,000 reallocated was not accounted for. Field inspection revealed improper drainage especially at points that required installation of culverts and one contract had expired with incomplete works while there were no signposts warning roader users from using the bridge. \u2022 I noted under YLP that Arua District budgeted for a total amount of UGX 929,917,778 for the Financial Years 2014/2015 and 2015/2016 but only UGX 764,166,650 was released resulting in a shortfall of UGX 165,751,128 (18%). I noted a recovery rate of only 25% of the funds disbursed in FY 2014/2015 and 2015/2016. Further, inspection revealed that one project which started"]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 231, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["SN", "LOCAL GOVERNMENTS ARUA BRANCH", "SUMMARY OF KEY FINDINGS"], "type": "table"}}, {"content": [["1", "Zombo DLG **Opinion** Qualified", "\u2022 Non-produced assets (land and cultivated assets) worth UGX.0.56Bn which were purchased during the year lacked supporting documents. \u2022 Prior year commitments totalling to UGX.1.27Bn paid during the year were omitted in the statement of appropriation account based on nature of expenditure. \u2022 Funds worth UGX.0.11Bn were withdrawn from the bank account number 6712100029 and 6712100028 for production and statutory bodies departments respectively, without the CAO and CFO authority \u2022 Funds worth UGX.0.12Bn were unaccounted for. \u2022 There was a shortfall in releases amounting to UGX. 1.9Bn representing 9% under release. Further, there was under collection of local revenue amounting to UGX 0.037Bn representing (14%) performance. \u2022 I noted that out of the total warrants of UGX.23 Bn, the entity spent UGX.23.27Bn was representing an absorption level of 101%. \u2022 Majority of key outputs were achieved except for activities under UgIFT involving construction of a seed school and upgrade of the Health Centre from HCII to HCIII. \u2022 Two motor cycles with registration numbers LG0045-111 and UG 4455M were stolen and the loss report not availed. \u2022 Under UgIFT, field inspection revealed incomplete works on some of the sampled outputs \u2022 Under NUSAF-3, two groups received the money and this was shared amongst themselves. \u2022 Under URF, field Inspection revealed that some roads had large potholes while the drainage and culverts were blocked. \u2022 Under YLP, it was observed that the district had recovered only UGX.0.19Bn (49%) out of the expected total amount due (Interest inclusive) of UGX.0.39Bn leaving an outstanding balance of UGX.0.20Bn."], ["2", "Arua DLG **Opinion** Qualified", "\u2022 Employees above the retirement age were paid salaries totalling UGX.339,861,704 during the year. \u2022 Pension and gratuity arrears totalling UGX.790,817,887 had not been accounted for at the time of writing this report. \u2022 In the employee/ Staff list I noted that the length of service for some pensioners and active staff was not correct. \u2022 I noted that salaries and gratuity totalling UGX 43,284,636 was paid to staff not on the staff list during the year. \u2022 There was a shortfall in releases amounting to UGX.26.759Bn representing 17%. Further, the entity overspent UGX.0.0126Bn. \u2022 Under NUSAF-3 UGX 1,728,000,000 was used to support 96 beneficiary sub-groups for FY 2017/2018 however, UGX 401,250,000 was misappropriated from the groups. In addition, I noted override of the Procurement function of the CPMCs and lack of contracts for Community Facilitators \u2022 Under URF I noted that UGX 188,301,000 reallocated was not accounted for. Field inspection revealed improper drainage especially at points that required installation of culverts and one contract had expired with incomplete works while there were no signposts warning roader users from using the bridge. \u2022 I noted under YLP that Arua District budgeted for a total amount of UGX 929,917,778 for the Financial Years 2014/2015 and 2015/2016 but only UGX 764,166,650 was released resulting in a shortfall of UGX 165,751,128 (18%). I noted a recovery rate of only 25% of the funds disbursed in FY 2014/2015 and 2015/2016. Further, inspection revealed that one project which started"]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 231, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["SN", "LOCAL GOVERNMENTS ARUA BRANCH", "SUMMARY OF KEY FINDINGS"], "type": "table"}}, {"content": "218", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 231, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["3", "Nebbi DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX. 6.49Bn representing 18% under release.  \u2022 5 out of 14 boreholes were not constructed and 4.5 Km out of 168 km were not maintained.  \u2022 Under UgIFT, construction of Atego Seed School and upgrade of Pamaka Health Centre II to HC III were delayed.  \u2022 Under NUSAF 3, out of the UGX. 4.1Bn disbursed to the subprojects; only UGX.3.87Bn had been utilised leaving a balance of UGX.0.25Bn unutilized.  \u2022 Under URF, Inspection of 13 km of Kucwiny\u2013Orango road revealed that 5 kilometres had not been worked on.  \u2022 Under YLP, the District had recovered 19% out of the expected total amount due of UGX.0.43Bn leaving an outstanding balance of UGX.0.36Bn."], ["4", "Adjumani DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.3.754Bn representing 9%. Further, the entity remained with unspent balance of UGX. 1.463bn representing an absorption level of 96%. \u2022 I inspected one project (UgIFT) and noted that out of the elven (11) outputs, (7) were fully achieved, (2) were partially implemented and three (3) were not implemented. \u2022 Pension and gratuity of UGX 158,046,992 remained outstanding at year end. \u2022 UGX.5,798,400 allocated as contingency was not accounted for in the certificates presented for payment \u2022 Under UgIFT, I noted irregularities in hybrid procurement, irregular award of tender to a higher Bidder for seed school construction while inspection revealed delayed works for the projects. \u2022 Under NUSAF-3, I noted that there were no internal audits conducted as well as gaps in monitoring and evaluation. Out of the 3 subprojects inspected I noted insufficient quantity supplied at Robidire Ox-traction and Arra West Ox-traction. \u2022 Under URF, I noted that only 357kms were actually undertaken at a cost of UGX 471,381,000 leading to an under performance of 137km and under-absorption of funds worth UGX 7,338,000. Field inspection revealed incomplete culvert works, unconstructed headwalls and failure to gravel. \u2022 Under YLP, I noted a recovery rate of only 24% of the funds disbursed in FY 2015/2016 to 2017/2018. Besides two youth groups received project funds which were shared amongst group members. \u2022 I noted that the principle of competition in procurement was not adhered to as most of the procurements attracted less than three bidders. \u2022 80 out of the 140 District pieces of land were not titled. \u2022 I noted failure to dispose of assets recommended by the 2016/17 Board of Survey which were still at the Districts premises at the time of writing this report."], ["5", "Yumbe DLG **Opinion** Qualified", "\u2022 I could not confirm Cash and cash equivalent of UGX 0.203Bn reported in the statement of financial position. \u2022 Review of the reconciliation statements, statement of cash flow and the statement of outstanding commitments revealed that domestic arrears paid figure is wrong. \u2022 Adjustments of UGX 0.464Bn to the outstanding commitments at the beginning of the year in the statement of outstanding commitments lacked supporting documents"]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 232, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["SN", "LOCAL GOVERNMENTS", "SUMMARY OF KEY FINDINGS with 15 members had disintegrated to only 3 active members and no records kept by the project were availed. \u2022 Under UgIFT, I noted delayed procurements and filed inspection revealed incomplete structures that had only been roofed and plastered. \u2022 Under UWEP, I noted that out of 20 Deep Borehole Drilling (Hand Pump), only 19 were drilled and out of 2878 water sources only 2,579 were functional. \u2022 I noted that the district failed to utilise UGX.1,923,399,319 for salaries, pensions and gratuity during the year."], "type": "table"}}, {"content": [["3", "Nebbi DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX. 6.49Bn representing 18% under release.  \u2022 5 out of 14 boreholes were not constructed and 4.5 Km out of 168 km were not maintained.  \u2022 Under UgIFT, construction of Atego Seed School and upgrade of Pamaka Health Centre II to HC III were delayed.  \u2022 Under NUSAF 3, out of the UGX. 4.1Bn disbursed to the subprojects; only UGX.3.87Bn had been utilised leaving a balance of UGX.0.25Bn unutilized.  \u2022 Under URF, Inspection of 13 km of Kucwiny\u2013Orango road revealed that 5 kilometres had not been worked on.  \u2022 Under YLP, the District had recovered 19% out of the expected total amount due of UGX.0.43Bn leaving an outstanding balance of UGX.0.36Bn."], ["4", "Adjumani DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.3.754Bn representing 9%. Further, the entity remained with unspent balance of UGX. 1.463bn representing an absorption level of 96%. \u2022 I inspected one project (UgIFT) and noted that out of the elven (11) outputs, (7) were fully achieved, (2) were partially implemented and three (3) were not implemented. \u2022 Pension and gratuity of UGX 158,046,992 remained outstanding at year end. \u2022 UGX.5,798,400 allocated as contingency was not accounted for in the certificates presented for payment \u2022 Under UgIFT, I noted irregularities in hybrid procurement, irregular award of tender to a higher Bidder for seed school construction while inspection revealed delayed works for the projects. \u2022 Under NUSAF-3, I noted that there were no internal audits conducted as well as gaps in monitoring and evaluation. Out of the 3 subprojects inspected I noted insufficient quantity supplied at Robidire Ox-traction and Arra West Ox-traction. \u2022 Under URF, I noted that only 357kms were actually undertaken at a cost of UGX 471,381,000 leading to an under performance of 137km and under-absorption of funds worth UGX 7,338,000. Field inspection revealed incomplete culvert works, unconstructed headwalls and failure to gravel. \u2022 Under YLP, I noted a recovery rate of only 24% of the funds disbursed in FY 2015/2016 to 2017/2018. Besides two youth groups received project funds which were shared amongst group members. \u2022 I noted that the principle of competition in procurement was not adhered to as most of the procurements attracted less than three bidders. \u2022 80 out of the 140 District pieces of land were not titled. \u2022 I noted failure to dispose of assets recommended by the 2016/17 Board of Survey which were still at the Districts premises at the time of writing this report."], ["5", "Yumbe DLG **Opinion** Qualified", "\u2022 I could not confirm Cash and cash equivalent of UGX 0.203Bn reported in the statement of financial position. \u2022 Review of the reconciliation statements, statement of cash flow and the statement of outstanding commitments revealed that domestic arrears paid figure is wrong. \u2022 Adjustments of UGX 0.464Bn to the outstanding commitments at the beginning of the year in the statement of outstanding commitments lacked supporting documents"]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 232, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["SN", "LOCAL GOVERNMENTS", "SUMMARY OF KEY FINDINGS with 15 members had disintegrated to only 3 active members and no records kept by the project were availed. \u2022 Under UgIFT, I noted delayed procurements and filed inspection revealed incomplete structures that had only been roofed and plastered. \u2022 Under UWEP, I noted that out of 20 Deep Borehole Drilling (Hand Pump), only 19 were drilled and out of 2878 water sources only 2,579 were functional. \u2022 I noted that the district failed to utilise UGX.1,923,399,319 for salaries, pensions and gratuity during the year."], "type": "table"}}, {"content": "219", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 232, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["6", "Pakwach DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX. 1.39 representing 8.2% under release. Further, the entity remained with unspent balance of UGX. 0.534Bn representing an absorption level of 96.5%. \u2022 Under UgIFT, construction of Alwi Seed School was delayed with no contractor at the site. \u2022 Under NUSAF 3, I noted that implementation of Tyend-Andria Community Access Road had delayed, untimely delivery of fish feeds, the fish feeds delivered by the supplier were expired and some were close to the expiry date, the company did not provide technical support to the groups contrary to the MOU. \u2022 Direct Procurement worth UGX 0.2Bn was made for the supplies for fish farming for 19 sub projects contrary to the procedures. \u2022 Under URF, UGX. 0.032 Bn was over spent on routine mechanized maintenance of 80 Km and gullies were developing in some sections of the roads due to heavy rains. \u2022 Under YLP, 15.2% had been recovered out of the expected total of UGX.0.107Bn leaving an outstanding amount of UGX.0.197Bn. Tiendmandir West Youth Carpentry project and Wanglei B Improved Goats rearing had disintegrated and collapsed. \u2022 A review of staffing levels at the district revealed that out of the approved structure of 1,630 staff, only 906 staff (33.6%) positions were filled leaving 939 positions (66.3%) vacant."], ["7", "Maracha DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX. 0.98Bn representing 4% under release. \u2022 Out of Eight key deliverables sampled (6) were fully achieved while (2) were partially implemented."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 233, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["SN", "LOCAL GOVERNMENTS", "SUMMARY OF KEY FINDINGS \u2022 Supporting documents for adjustments of UGX 0.473Bn to payables were not availed for verification \u2022 Receivables of UGX 3bn lacked supporting schedules  \u2022 There was a shortfall in releases amounting to UGX.7bn representing 12%. \u2022 Some planned key deliverables were partially implemented for example the construction of Technical and Works Administrative block and construction of the Market in Kuru Sub County. \u2022 Expenditure totalling UGX 0.204bn was mischarge of expenditure. \u2022 Under NUSAF 3, I noted several challenges such as delays in release of funds to the district, inadequate record keeping, cash payments above UGX.500,000, delayed/non-implementation of planned activities, irregular transfer of UGX 0.108Bn meant for 6 groups to the NDO\u2019s personal account without evidence of transfer to the beneficiaries\u2019 group accounts, failure to quarterly reports and failure by internal Audit to examine the submitted sub-project accountabilities. \u2022 Under UgIFT, I noted utilisation of only UGX.0.965 out of the released UGX.2.1bn and remittance of balance to the consolidated fund. Further, I noted delayed implementation of the projects both in the Health and Education sector. \u2022 Under URF, I noted delayed works in Lodonga-Tara Road, Yumbe-Lobe Road and Installation of culverts \u2022 Under YLP, I noted recovery of UGX. 0.144Bn out of the due amount of UGX. 0.631Bn leaving an outstanding balance of UGX. 0.511Bn. further inspections of two groups revealed that funds received were insufficient for the scale of operations, Stiff competition from mushrooming businesses and High costs of operation. One of the groups had closed at the time of inspection. \u2022 Under UWEP, I noted that only UGX.29million was recovered out of the expected total amount of UGX. 405million, leaving a balance of UGX. 377million \u2022 Under capitation grant, I noted a shortfall of UGX. 35million in remittances for the total reported enrolment of 89,652 pupils. \u2022 Under payroll management, UGX0. 138Bn was paid to deceased and employees above the retirement age. Further, i noted anomalies in the system length of years of service for both pensioners and active staff. \u2022 A review of Development Response to Displacement Impact Project (DRDIP) project files revealed failure to undertake any projects despite budget provision of UGX.8bn."], "type": "table"}}, {"content": "220", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 233, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["8", "Nebbi MC **Opinion** Qualified", "\u2022 I noted inconsistences amounting to UGX 0.911Bn of the trial balance against the financial statements. \u2022 There was a shortfall in releases amounting to UGX.2.5 Bn representing 35%. Further, the entity remained with unspent balance of UGX.52million representing an absorption level of 99%. \u2022 Under implementation of key outputs, I noted that out of 13 outputs, 7 were not implemented, 3 were partially implemented and 3 outputs were fully implemented. \u2022 Under URF, I noted a total of 50kms at cost of UGX 0.116Bn was planned. However, 53kms were done at a cost of UGX 0.118Bn leading to excess expenditure of UGX 2 million further inspections revealed bushes alongside many of the Municipal roads were overgrown and in some cases significantly reduced the road width. \u2022 Under Environmental Impact Assessment, interviews and a review of documents revealed that no environment impact assessment was done for any of the road works \u2022 Under procurement I noted Low bidder participation which defeats the objective of public procurement of promoting competitiveness and quality services. This was caused by poor offers and weak budgeting process by the Municipal Council management."], ["9", "Moyo DLG **Opinion** Unqualified", "\u2022 There was a surplus in releases amounting to UGX.0.124Bn representing 0.37%. . \u2022 I noted partial implementation of one planned key deliverable (construction of Dufile Seed Secondary School under UgIFT). \u2022 I noted pending and on-going court cases not disposed off. \u2022 Under NUSAF 3, there were instances of delays in release of funds to the district operation account. I also noted delayed implementation of some planned activities like like Kocia Woodlot Project, Pabolo Afforestation etc. \u2022 Under URF, I noted high maintenance costs during routine manual maintenance of roads. \u2022 Under UgIFT, I noted failure to include the construction of seed secondary school in the consolidated procurement plan. Further 2 classrooms blocks were at gable wall level, the contractor had abandoned the site and no materials were in the store. \u2022 Under YLP, I noted recovery of only UGX.0.131Bn out of UGX. 0.627Bn leaving a balance of UGX.0.495Bn. Further, inspection of one group revealed that only 8 members were active instead of the original 15. \u2022 Under UWEP, I observed that whereas the groups funded are expected to have repaid a total of UGX 0.164Bn only UGX 0.103Bn has been repaid leaving UGX 60 million outstanding. Further, out of the recoveries of UGX 0.117Bn the District transferred only UGX 95million to"]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 234, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["SN", "LOCAL GOVERNMENTS", "SUMMARY OF KEY FINDINGS \u2022 Under UgIFT, physical inspection revealed that works in the Kololo public Seed School were not completed. \u2022 Under NUSAF 3, out of the UGX.2.59Bn disbursed to the subprojects; only UGX.2.32Bn had been utilized UGX.0.27Bn un-utilised. \u2022 Physical inspection of Azima ox- traction for Chili revealed that no activity was found as Chili production, whereas at Ayima Passion fruit production, farmers had fewer seedlings compared to what was given due to shortage of land. \u2022 Under URF, 62km (25%) out of 274km were not undertaken leading to under-absorption of UGX.0.031Bn (15%). \u2022 Excess expenditure worth UGX.0.06Bn (32%) was incurred on Routine Mechanized Maintenance of 51kms estimated at a cost of UGX.0.19. \u2022 Inspections revealed that Rinyi Culvert Bridge which was rehabilitated at cost of UGX 0.018Bn.had collapsed. \u2022 Under YLP, 28% had been recovered out of the expected total of UGX.0.39Bn leaving an outstanding amount of UGX.0.25Bn (Tax Inclusive) (72%). \u2022 A review of the land inventory revealed that 73 out the 98 pieces of land owned by council lacked titles."], "type": "table"}}, {"content": [["8", "Nebbi MC **Opinion** Qualified", "\u2022 I noted inconsistences amounting to UGX 0.911Bn of the trial balance against the financial statements. \u2022 There was a shortfall in releases amounting to UGX.2.5 Bn representing 35%. Further, the entity remained with unspent balance of UGX.52million representing an absorption level of 99%. \u2022 Under implementation of key outputs, I noted that out of 13 outputs, 7 were not implemented, 3 were partially implemented and 3 outputs were fully implemented. \u2022 Under URF, I noted a total of 50kms at cost of UGX 0.116Bn was planned. However, 53kms were done at a cost of UGX 0.118Bn leading to excess expenditure of UGX 2 million further inspections revealed bushes alongside many of the Municipal roads were overgrown and in some cases significantly reduced the road width. \u2022 Under Environmental Impact Assessment, interviews and a review of documents revealed that no environment impact assessment was done for any of the road works \u2022 Under procurement I noted Low bidder participation which defeats the objective of public procurement of promoting competitiveness and quality services. This was caused by poor offers and weak budgeting process by the Municipal Council management."], ["9", "Moyo DLG **Opinion** Unqualified", "\u2022 There was a surplus in releases amounting to UGX.0.124Bn representing 0.37%. . \u2022 I noted partial implementation of one planned key deliverable (construction of Dufile Seed Secondary School under UgIFT). \u2022 I noted pending and on-going court cases not disposed off. \u2022 Under NUSAF 3, there were instances of delays in release of funds to the district operation account. I also noted delayed implementation of some planned activities like like Kocia Woodlot Project, Pabolo Afforestation etc. \u2022 Under URF, I noted high maintenance costs during routine manual maintenance of roads. \u2022 Under UgIFT, I noted failure to include the construction of seed secondary school in the consolidated procurement plan. Further 2 classrooms blocks were at gable wall level, the contractor had abandoned the site and no materials were in the store. \u2022 Under YLP, I noted recovery of only UGX.0.131Bn out of UGX. 0.627Bn leaving a balance of UGX.0.495Bn. Further, inspection of one group revealed that only 8 members were active instead of the original 15. \u2022 Under UWEP, I observed that whereas the groups funded are expected to have repaid a total of UGX 0.164Bn only UGX 0.103Bn has been repaid leaving UGX 60 million outstanding. Further, out of the recoveries of UGX 0.117Bn the District transferred only UGX 95million to"]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 234, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["SN", "LOCAL GOVERNMENTS", "SUMMARY OF KEY FINDINGS \u2022 Under UgIFT, physical inspection revealed that works in the Kololo public Seed School were not completed. \u2022 Under NUSAF 3, out of the UGX.2.59Bn disbursed to the subprojects; only UGX.2.32Bn had been utilized UGX.0.27Bn un-utilised. \u2022 Physical inspection of Azima ox- traction for Chili revealed that no activity was found as Chili production, whereas at Ayima Passion fruit production, farmers had fewer seedlings compared to what was given due to shortage of land. \u2022 Under URF, 62km (25%) out of 274km were not undertaken leading to under-absorption of UGX.0.031Bn (15%). \u2022 Excess expenditure worth UGX.0.06Bn (32%) was incurred on Routine Mechanized Maintenance of 51kms estimated at a cost of UGX.0.19. \u2022 Inspections revealed that Rinyi Culvert Bridge which was rehabilitated at cost of UGX 0.018Bn.had collapsed. \u2022 Under YLP, 28% had been recovered out of the expected total of UGX.0.39Bn leaving an outstanding amount of UGX.0.25Bn (Tax Inclusive) (72%). \u2022 A review of the land inventory revealed that 73 out the 98 pieces of land owned by council lacked titles."], "type": "table"}}, {"content": "221", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 234, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["10", "Arua MC **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX. 10.384Bn representing 49%. Further, the entity overspent UGX.6.978Bn. \u2022 Out of the 6 key outputs, (5) were fully achieved while (1) was partially implemented. \u2022 Under URF, I noted that the Municipality received UGX.1,165,791,000 (100%) but spent UGX.1,291,000,000 on the roads thus over expenditure of UGX125,209,000. Further, field inspection revealed delayed supply and installation of 13 solar lighting systems on Mango Road and changes in the design of the road from a single carriage way to a two way carriage. \u2022 I noted a recovery rate of only 24% of the UGX.160million funds disbursed in FY 2014/2015 to 2015/2016. \u2022 Under UWEP, I noted that no funds were released to the entity in relation to UWEP despite budget provision of UGX.126m. \u2022 Under capitation grant I noted under-remittance of UGX.172,278,906 with enrolment of 83,860 pupils that would have required UGX.1,064,050,000 but only UGX.891,771,094 was disbursed."], ["11", "Koboko DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX. 4.6Bn representing 16.7% under release. \u2022 It was however noted that salaries amounting to UGX 0.26Bn were charged to wrong codes (Mischarged). \u2022 Out of 21 outputs sampled, the entity only achieved 5 outputs. \u2022 Under UgIFT, the District received UGX.0.97Bn but only UGX.0.57Bn (59%) was utilised for the construction of Padrombu seed Secondary School and Chakulia Health centre leaving UGX. 0.39Bn (41%) un-utilised. \u2022 Physical inspection on the upgrading of Chakulia Health Center II to Health Center III revealed that the project was behind schedule. \u2022 Under URF, Inspection revealed that tree planting and gravelling were not done on Dranya-DRC border road. \u2022 Under YLP, 26% had been recovered out of the expected total of UGX.0.4Bn leaving an outstanding. In addition inspection of Mugonga Youth Grinding Mill in Ludara Sub County revealed a bushy structure containing grinding mill, group had disintegrated, Machinery not functioning, no records for renew and. An Interview with the CDO revealed that the Chairman was in jail over misappropriation of group funds. \u2022 Still under YLP, inspection of Ripindi Youth Sheep Rearing project revealed that all 70 sheep died after vaccination and the group disintegrated. \u2022 Under UWEP, only 56% of the funds was recovered. \u2022 Under NUSAF 3, Lurujo rice growing sub-project and Opasio B Cassava Production revealed remarkable success, while works still on-going with Ibanga Culvert Installation sub-project. \u2022 Inspection of Kindra-Lokajo road revealed that a section of the road with a stream need a bridge, there was no sign post and no records of community procurement and project management. \u2022 Under RWSSD, 99 water sources representing 14% were not functional."], ["12", "Koboko MC **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX. 1.07Bn representing 13% under release. Further, the entity overspent by UGX.0.364Bn representing an absorption level of 103.2%. \u2022 Out of the eight activities assessed (6) were fully implemented while 2 were partially implemented."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 235, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["SN", "LOCAL GOVERNMENTS", "SUMMARY OF KEY FINDINGS the Revolving Fund Account in Bank of Uganda leaving UGX 22million on the district UWEP recovery account. \u2022 Review of the water department performance revealed that all planned outputs were not achieved. \u2022 Under Payroll Management, I noted there was a budget shortfall of UGX.45 million on salaries, pensions and gratuity while UGX. 25million was paid to employees above the retirement age. Further, 23 staff who retired had not been paid their retirement benefits totalling UGX 0.845Bn."], "type": "table"}}, {"content": [["10", "Arua MC **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX. 10.384Bn representing 49%. Further, the entity overspent UGX.6.978Bn. \u2022 Out of the 6 key outputs, (5) were fully achieved while (1) was partially implemented. \u2022 Under URF, I noted that the Municipality received UGX.1,165,791,000 (100%) but spent UGX.1,291,000,000 on the roads thus over expenditure of UGX125,209,000. Further, field inspection revealed delayed supply and installation of 13 solar lighting systems on Mango Road and changes in the design of the road from a single carriage way to a two way carriage. \u2022 I noted a recovery rate of only 24% of the UGX.160million funds disbursed in FY 2014/2015 to 2015/2016. \u2022 Under UWEP, I noted that no funds were released to the entity in relation to UWEP despite budget provision of UGX.126m. \u2022 Under capitation grant I noted under-remittance of UGX.172,278,906 with enrolment of 83,860 pupils that would have required UGX.1,064,050,000 but only UGX.891,771,094 was disbursed."], ["11", "Koboko DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX. 4.6Bn representing 16.7% under release. \u2022 It was however noted that salaries amounting to UGX 0.26Bn were charged to wrong codes (Mischarged). \u2022 Out of 21 outputs sampled, the entity only achieved 5 outputs. \u2022 Under UgIFT, the District received UGX.0.97Bn but only UGX.0.57Bn (59%) was utilised for the construction of Padrombu seed Secondary School and Chakulia Health centre leaving UGX. 0.39Bn (41%) un-utilised. \u2022 Physical inspection on the upgrading of Chakulia Health Center II to Health Center III revealed that the project was behind schedule. \u2022 Under URF, Inspection revealed that tree planting and gravelling were not done on Dranya-DRC border road. \u2022 Under YLP, 26% had been recovered out of the expected total of UGX.0.4Bn leaving an outstanding. In addition inspection of Mugonga Youth Grinding Mill in Ludara Sub County revealed a bushy structure containing grinding mill, group had disintegrated, Machinery not functioning, no records for renew and. An Interview with the CDO revealed that the Chairman was in jail over misappropriation of group funds. \u2022 Still under YLP, inspection of Ripindi Youth Sheep Rearing project revealed that all 70 sheep died after vaccination and the group disintegrated. \u2022 Under UWEP, only 56% of the funds was recovered. \u2022 Under NUSAF 3, Lurujo rice growing sub-project and Opasio B Cassava Production revealed remarkable success, while works still on-going with Ibanga Culvert Installation sub-project. \u2022 Inspection of Kindra-Lokajo road revealed that a section of the road with a stream need a bridge, there was no sign post and no records of community procurement and project management. \u2022 Under RWSSD, 99 water sources representing 14% were not functional."], ["12", "Koboko MC **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX. 1.07Bn representing 13% under release. Further, the entity overspent by UGX.0.364Bn representing an absorption level of 103.2%. \u2022 Out of the eight activities assessed (6) were fully implemented while 2 were partially implemented."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 235, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["SN", "LOCAL GOVERNMENTS", "SUMMARY OF KEY FINDINGS the Revolving Fund Account in Bank of Uganda leaving UGX 22million on the district UWEP recovery account. \u2022 Review of the water department performance revealed that all planned outputs were not achieved. \u2022 Under Payroll Management, I noted there was a budget shortfall of UGX.45 million on salaries, pensions and gratuity while UGX. 25million was paid to employees above the retirement age. Further, 23 staff who retired had not been paid their retirement benefits totalling UGX 0.845Bn."], "type": "table"}}, {"content": "222", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 235, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["13", "Arua RRH **Opinion** Qualified", "\u2022 A total of UGX. 1.024Bn was collected during the period but was neither included in the hospital budget nor recognised in the financial statements. \u2022 A review of the payroll revealed overpayments of gratuity totalling UGX 0.137Bn made to pensioners. \u2022 A review of the payroll revealed overpayment/ double payment of salaries to staff totalling UGX 0.012Bn. \u2022 There was a shortfall in releases amounting to UGX.0.043 representing 0.48% under release. Further, the entity remained with unspent balance of UGX.0.097Bn representing an absorption level of 99%. \u2022 Gratuity and pension arrears totalling UGX 0.98Bn was paid during the period under review but were not disclosed in the previous year\u2019s financial statements. \u2022 The hospital received UGX. 1.024Bn and spent UGX.0.923Bn through Account Number 90300063930262 held in Stanbic bank, however this was not reflected on IFMS. \u2022 The hospital contracted M/S Wap Engineering Ltd into multiyear contracts worth UGX. 8.503Bn without approval from Parliament. Physical inspection revealed that works were behind schedule. \u2022 Arua Regional Referral Hospital paid M/S Maways Construction and Engineering Works UGX. 0.113Bn for works not done. \u2022 Deliveries of drugs worth UGX.0.032Bn were not made by National Medical Stores in accordance with the submissions made by the Hospital Management. \u2022 Out of 61 established positions, only 19 (31.1%) positions were filled leaving 42 positions (68.9%) vacant. \u2022 A review of the payroll revealed that employees above the retirement age were paid salaries worth UGX 0.007Bn during the year under review. \u2022 It was observed that the hospital did not have an Internal Auditor during the period under review. \u2022 Physical inspection revealed that the Dental Clinic had inadequate equipment for extraction of teeth, lacked sterilization unit (Autoclave), had no x-ray equipment and only one dental chair was functional out of the three available. \u2022 03 Senior Management members did not sign Performance Agreements as at 31st July 2019. \u2022 Management did not submit signed performance agreement reports to the Ministry of Public Service by 15th September 2018. \u2022 277 staff out of 283 staff filled in their annual performance plans at the beginning of the financial year 2018/19. \u2022 Arua Regional Referral Hospital did not submit a report on absenteeism as required by the guidelines. \u2022 No report on discipline was submitted to the Ministry Of Public Service as required. \u2022 The Hospital had no client charter."], ["", "**FORT PORTAL BRANCH**", ""], ["1", "Kasese DLG **Opinion**", "\u2022 There was a shortfall in releases amounting to UGX.1.3bn representing 2%. Further analysis revealed that the District utilised prior year unspent balance of UGX.1.1Bn that were not warranted in the current year."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 236, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["SN", "LOCAL GOVERNMENTS", "SUMMARY OF KEY FINDINGS \u2022 Under YLP, out of UGX.0.118Bn (interest exclusive) the Municipal Council had recovered UGX0.021Bn leaving an outstanding balance of UGX. 0.097Bn. \u2022 Physical inspection of Sinyani Youth Metal Fabrication project revealed that the group had no sign post and had changed from metal fabrication to Piggery without approval of the CDO and MoGLSD whereas Kulubu B Youth Boda Boda Project had no group sign post and two group motorcycles were involved in fatal accidents. \u2022 Under UWEP, Godia Women Second Hand Cloth Buying and Selling Women\u2019s Group was under funded and the training got was not relevant to their business."], "type": "table"}}, {"content": [["13", "Arua RRH **Opinion** Qualified", "\u2022 A total of UGX. 1.024Bn was collected during the period but was neither included in the hospital budget nor recognised in the financial statements. \u2022 A review of the payroll revealed overpayments of gratuity totalling UGX 0.137Bn made to pensioners. \u2022 A review of the payroll revealed overpayment/ double payment of salaries to staff totalling UGX 0.012Bn. \u2022 There was a shortfall in releases amounting to UGX.0.043 representing 0.48% under release. Further, the entity remained with unspent balance of UGX.0.097Bn representing an absorption level of 99%. \u2022 Gratuity and pension arrears totalling UGX 0.98Bn was paid during the period under review but were not disclosed in the previous year\u2019s financial statements. \u2022 The hospital received UGX. 1.024Bn and spent UGX.0.923Bn through Account Number 90300063930262 held in Stanbic bank, however this was not reflected on IFMS. \u2022 The hospital contracted M/S Wap Engineering Ltd into multiyear contracts worth UGX. 8.503Bn without approval from Parliament. Physical inspection revealed that works were behind schedule. \u2022 Arua Regional Referral Hospital paid M/S Maways Construction and Engineering Works UGX. 0.113Bn for works not done. \u2022 Deliveries of drugs worth UGX.0.032Bn were not made by National Medical Stores in accordance with the submissions made by the Hospital Management. \u2022 Out of 61 established positions, only 19 (31.1%) positions were filled leaving 42 positions (68.9%) vacant. \u2022 A review of the payroll revealed that employees above the retirement age were paid salaries worth UGX 0.007Bn during the year under review. \u2022 It was observed that the hospital did not have an Internal Auditor during the period under review. \u2022 Physical inspection revealed that the Dental Clinic had inadequate equipment for extraction of teeth, lacked sterilization unit (Autoclave), had no x-ray equipment and only one dental chair was functional out of the three available. \u2022 03 Senior Management members did not sign Performance Agreements as at 31st July 2019. \u2022 Management did not submit signed performance agreement reports to the Ministry of Public Service by 15th September 2018. \u2022 277 staff out of 283 staff filled in their annual performance plans at the beginning of the financial year 2018/19. \u2022 Arua Regional Referral Hospital did not submit a report on absenteeism as required by the guidelines. \u2022 No report on discipline was submitted to the Ministry Of Public Service as required. \u2022 The Hospital had no client charter."], ["", "**FORT PORTAL BRANCH**", ""], ["1", "Kasese DLG **Opinion**", "\u2022 There was a shortfall in releases amounting to UGX.1.3bn representing 2%. Further analysis revealed that the District utilised prior year unspent balance of UGX.1.1Bn that were not warranted in the current year."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 236, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["SN", "LOCAL GOVERNMENTS", "SUMMARY OF KEY FINDINGS \u2022 Under YLP, out of UGX.0.118Bn (interest exclusive) the Municipal Council had recovered UGX0.021Bn leaving an outstanding balance of UGX. 0.097Bn. \u2022 Physical inspection of Sinyani Youth Metal Fabrication project revealed that the group had no sign post and had changed from metal fabrication to Piggery without approval of the CDO and MoGLSD whereas Kulubu B Youth Boda Boda Project had no group sign post and two group motorcycles were involved in fatal accidents. \u2022 Under UWEP, Godia Women Second Hand Cloth Buying and Selling Women\u2019s Group was under funded and the training got was not relevant to their business."], "type": "table"}}, {"content": "223", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 236, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["2", "Kabarole DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.0.277bn representing 1%. Further, the entity remained with unspent balance of UGX. 1.043bn representing an absorption level of 96%. \u2022 The District did not implement all activities as planned for example while the water sector and URF performed well, UgIFT projects and recruitment of staff were partially implemented. \u2022 Payables of UGX.1.5bn remained outstanding at year end. \u2022 Under UgIFT, I noted delayed construction of Nyantaboma Health Centre III and St. Paul Nyabweya Seed School with expiry of contract periods despite payment of UGX. 0.5Bn and UGX.0.618Bn respectively. \u2022 Under YLP Program, I noted that groups received UGX 1.01Bn in the five financial years (2013/14-2017/18) but only UGX 0.246Bn had been recovered by the time of audit leaving a balance of UGX. 0.812Bn (Interest inclusive)."], ["3", "Ntoroko DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.90 million representing 1%. Further, the entity remained with unspent balance of UGX. 0.157Bn representing an absorption level of 99%. \u2022 Under UgIFT, I noted delayed construction works at Nombe seed school and some works to upgrade Bweramule HC II to Health Centre III had not yet started. \u2022 Under URF, I noted that only 18.6 km on mechanised maintenance were undertaken instead of 50.1km. Further on routine manual maintenance I noted an excess expenditure of UGX 8 million to maintain 120.1km. I also noted poor workmanship on Rwebisengo- Rwangara Road and Rehabilitation of Rwensenene and Kakogha Bridges \u2022 A review of the cumulative water situation analysis of the 4 different types of water sources in the district, revealed 35% of the water facilities were non-functional \u2022 Deductions of UGX 1.49Bn were noted in respect of statutory and other bodies but only UGX 1.41Bn was remitted resulting into under payment of UGX 82 million \u2022 Under UWEP, i noted that out of UGX 33 million collected; only UGX 15 million was transferred to the Ministry of Gender leaving a balance of UGX 18 million. Further UGX 18million remained outstanding from beneficiaries. \u2022 Under YLP, I noted that UGX 10.9 million was not paid to the beneficiary group and these funds have been on the account since August 2018. \u2022 Contrary to regulations all Heads of Departments have been in acting capacity beyond the mandatory maximum period of one year."], ["4", "Kyegegwa DLG", "\u2022 There was a shortfall in releases amounting to UGX.0.919bn representing 3%. Further, the entity remained with unspent balance of UGX.1.194bn representing an absorption level of 95%."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 237, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["SN", "LOCAL GOVERNMENTS Unqualified", "SUMMARY OF KEY FINDINGS \u2022 The district received off-budget financing to a tune of UGX 100,000,000 from Ministry of Local Government which was never paid into the Consolidated Fund, as required by the law \u2022 Thee was inadequate implementation of all activities example the water sector and URF performed well whereas UgIFT projects were partially implemented \u2022 Payables of UGX.4.57Bn remained outstanding at year end. \u2022 UGX 0.19Bn was charged on expenditure item codes which do not reflect the nature of the expenditure. \u2022 Under UgIFT, I noted delayed works under the Contract to upgrade Kyampala HC II and Nyakimasa HC II despite payment of UGX0.29Bn and the contract ending on 14th September 2019. \u2022 Inspections revealed that the Kyarumba-Kitabona Road (5.1km) maintained at a cost of UGX.41million had developed pot holes. Further I noted that 25 % out of 1,099 water infrastructures were not functional. \u2022 I noted excess expenditure of UGX.0.19bn on the construction of Kyoho Bridge due to a decision to change from force Account to irregular contracting of the unfinished works to a private contractor. \u2022 The Administration Block being constructed at kasese District revealed that max pans costing UGX 96 million had not yet been installed and were wasting away."], "type": "table"}}, {"content": [["2", "Kabarole DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.0.277bn representing 1%. Further, the entity remained with unspent balance of UGX. 1.043bn representing an absorption level of 96%. \u2022 The District did not implement all activities as planned for example while the water sector and URF performed well, UgIFT projects and recruitment of staff were partially implemented. \u2022 Payables of UGX.1.5bn remained outstanding at year end. \u2022 Under UgIFT, I noted delayed construction of Nyantaboma Health Centre III and St. Paul Nyabweya Seed School with expiry of contract periods despite payment of UGX. 0.5Bn and UGX.0.618Bn respectively. \u2022 Under YLP Program, I noted that groups received UGX 1.01Bn in the five financial years (2013/14-2017/18) but only UGX 0.246Bn had been recovered by the time of audit leaving a balance of UGX. 0.812Bn (Interest inclusive)."], ["3", "Ntoroko DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.90 million representing 1%. Further, the entity remained with unspent balance of UGX. 0.157Bn representing an absorption level of 99%. \u2022 Under UgIFT, I noted delayed construction works at Nombe seed school and some works to upgrade Bweramule HC II to Health Centre III had not yet started. \u2022 Under URF, I noted that only 18.6 km on mechanised maintenance were undertaken instead of 50.1km. Further on routine manual maintenance I noted an excess expenditure of UGX 8 million to maintain 120.1km. I also noted poor workmanship on Rwebisengo- Rwangara Road and Rehabilitation of Rwensenene and Kakogha Bridges \u2022 A review of the cumulative water situation analysis of the 4 different types of water sources in the district, revealed 35% of the water facilities were non-functional \u2022 Deductions of UGX 1.49Bn were noted in respect of statutory and other bodies but only UGX 1.41Bn was remitted resulting into under payment of UGX 82 million \u2022 Under UWEP, i noted that out of UGX 33 million collected; only UGX 15 million was transferred to the Ministry of Gender leaving a balance of UGX 18 million. Further UGX 18million remained outstanding from beneficiaries. \u2022 Under YLP, I noted that UGX 10.9 million was not paid to the beneficiary group and these funds have been on the account since August 2018. \u2022 Contrary to regulations all Heads of Departments have been in acting capacity beyond the mandatory maximum period of one year."], ["4", "Kyegegwa DLG", "\u2022 There was a shortfall in releases amounting to UGX.0.919bn representing 3%. Further, the entity remained with unspent balance of UGX.1.194bn representing an absorption level of 95%."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 237, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["SN", "LOCAL GOVERNMENTS Unqualified", "SUMMARY OF KEY FINDINGS \u2022 The district received off-budget financing to a tune of UGX 100,000,000 from Ministry of Local Government which was never paid into the Consolidated Fund, as required by the law \u2022 Thee was inadequate implementation of all activities example the water sector and URF performed well whereas UgIFT projects were partially implemented \u2022 Payables of UGX.4.57Bn remained outstanding at year end. \u2022 UGX 0.19Bn was charged on expenditure item codes which do not reflect the nature of the expenditure. \u2022 Under UgIFT, I noted delayed works under the Contract to upgrade Kyampala HC II and Nyakimasa HC II despite payment of UGX0.29Bn and the contract ending on 14th September 2019. \u2022 Inspections revealed that the Kyarumba-Kitabona Road (5.1km) maintained at a cost of UGX.41million had developed pot holes. Further I noted that 25 % out of 1,099 water infrastructures were not functional. \u2022 I noted excess expenditure of UGX.0.19bn on the construction of Kyoho Bridge due to a decision to change from force Account to irregular contracting of the unfinished works to a private contractor. \u2022 The Administration Block being constructed at kasese District revealed that max pans costing UGX 96 million had not yet been installed and were wasting away."], "type": "table"}}, {"content": "224", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 237, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["5", "Fort-Portal Regional Referral Hospital **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.0.327Bn representing 3%. Further, the entity remained with unspent balance of UGX.1.4bn representing an absorption level of 85%. \u2022 I noted activities amounting to UGX 0.450Bn were implemented using funds that were not part of the budget appropriated by parliament (off budget financing). \u2022 UGX 0.100Bn was mischarged expenditure during the year. \u2022 UGX.0.159Bn was spent for procurement of Washing Machine with the additional top up of UGX. 39 million being diverted from procurement of surgical instruments. Further the UGX 0.159Bn paid was based on an expired bank guarantee and the machine had not been delivered by the time of the audit. \u2022 Out of 433 approved positions; 123 (28%) positions were vacant. \u2022 Hospital Inspections revealed congestion in the wards, failure to dispose off assets and inadequate storage space."], ["6", "Kamwenge DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.2.05Bn representing 5%. Further, the entity remained with unspent balance of UGX.0.148Bn representing an absorption level of 99.6%. \u2022 I noted that some of the District\u2019s planned outputs of the key deliverables were not quantified as required. \u2022 Under UgIFT, I noted delayed works on Bwizi Seed Secondary school despite receipt of UGX. 0.476bn and expenditure of only UGX.0.017bn. Further works on Upgrade of Kanara and Kabambiro HC II\u2019s TO HC III\u2019s were still ongoing despite receipt of UGX.0.65bn and expenditure of UGX.0.299bn. \u2022 Under YLP Program, I noted that whereas the groups funded in 2015/2016 were expected to have repaid a total amount of UGX.0.247bn (Interest inclusive) by close of the financial year 2018/2019, only 32 % was recovered. I also noted that two youth goat rearing groups did not avail any records for review and they had disintegrated. \u2022 The District did not have titles to its various parcels of land in different parts of the Council."], ["7", "Kyenjojo DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX1.9Bn representing 6% of the budget. Further, the entity remained with unspent balance of UGX.3.078Bn representing an absorption level of 90%. \u2022 I noted that the District did not implement all the activities as planned. Further the UgIFT projects were partially implemented. \u2022 Under UgIFT, I noted delayed construction works at Mparo Seed Secondary School and on works to upgrade Myeri and Kyankaramata Health Centre IIs to Health centre IIIs despite availability of funds."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 238, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["SN", "LOCAL GOVERNMENTS Opinion Unqualified", "SUMMARY OF KEY FINDINGS \u2022 I noted that the District had payables of UGX.0.918bn arising from mainly failure to repay deposits received. \u2022 I noted that the district deducted UGX.47million from teaching staff due to UNATU, However, UGX.93million was actually remitted resulting into an over remittance of UGX.46million. \u2022 I noted that the district made statutory deductions of UGX.2.07Bn in respect of PAYE and Uganda bankers, However only UGX.1.9Bn was remitted resulting into an under-remittance of UGX.0.148bn. \u2022 Under UgIFT, I noted delayed works and lack of a project Manager to compile progress reports on Rwentuuha Seed Secondary despite a payment of UGX 0.405bn. Further works on Karwenyi HC II were still ongoing, despite the contract end period of 30/09/2019 and payment of UGX.0.158bn. \u2022 Under URF I noted poor works on 4 sampled roads i.e. water crossing over the road due to inadequate drainage, inadequate culvert installations and poor manual maintenance. \u2022 Under YLP Program, I noted that a total of UGX.0.411bn remained outstanding as arrears by the year end. \u2022 Under UWEP Program, I noted that a total of UGX. 0.189bn remained outstanding as arrears by the year end."], "type": "table"}}, {"content": [["5", "Fort-Portal Regional Referral Hospital **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.0.327Bn representing 3%. Further, the entity remained with unspent balance of UGX.1.4bn representing an absorption level of 85%. \u2022 I noted activities amounting to UGX 0.450Bn were implemented using funds that were not part of the budget appropriated by parliament (off budget financing). \u2022 UGX 0.100Bn was mischarged expenditure during the year. \u2022 UGX.0.159Bn was spent for procurement of Washing Machine with the additional top up of UGX. 39 million being diverted from procurement of surgical instruments. Further the UGX 0.159Bn paid was based on an expired bank guarantee and the machine had not been delivered by the time of the audit. \u2022 Out of 433 approved positions; 123 (28%) positions were vacant. \u2022 Hospital Inspections revealed congestion in the wards, failure to dispose off assets and inadequate storage space."], ["6", "Kamwenge DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.2.05Bn representing 5%. Further, the entity remained with unspent balance of UGX.0.148Bn representing an absorption level of 99.6%. \u2022 I noted that some of the District\u2019s planned outputs of the key deliverables were not quantified as required. \u2022 Under UgIFT, I noted delayed works on Bwizi Seed Secondary school despite receipt of UGX. 0.476bn and expenditure of only UGX.0.017bn. Further works on Upgrade of Kanara and Kabambiro HC II\u2019s TO HC III\u2019s were still ongoing despite receipt of UGX.0.65bn and expenditure of UGX.0.299bn. \u2022 Under YLP Program, I noted that whereas the groups funded in 2015/2016 were expected to have repaid a total amount of UGX.0.247bn (Interest inclusive) by close of the financial year 2018/2019, only 32 % was recovered. I also noted that two youth goat rearing groups did not avail any records for review and they had disintegrated. \u2022 The District did not have titles to its various parcels of land in different parts of the Council."], ["7", "Kyenjojo DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX1.9Bn representing 6% of the budget. Further, the entity remained with unspent balance of UGX.3.078Bn representing an absorption level of 90%. \u2022 I noted that the District did not implement all the activities as planned. Further the UgIFT projects were partially implemented. \u2022 Under UgIFT, I noted delayed construction works at Mparo Seed Secondary School and on works to upgrade Myeri and Kyankaramata Health Centre IIs to Health centre IIIs despite availability of funds."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 238, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["SN", "LOCAL GOVERNMENTS Opinion Unqualified", "SUMMARY OF KEY FINDINGS \u2022 I noted that the District had payables of UGX.0.918bn arising from mainly failure to repay deposits received. \u2022 I noted that the district deducted UGX.47million from teaching staff due to UNATU, However, UGX.93million was actually remitted resulting into an over remittance of UGX.46million. \u2022 I noted that the district made statutory deductions of UGX.2.07Bn in respect of PAYE and Uganda bankers, However only UGX.1.9Bn was remitted resulting into an under-remittance of UGX.0.148bn. \u2022 Under UgIFT, I noted delayed works and lack of a project Manager to compile progress reports on Rwentuuha Seed Secondary despite a payment of UGX 0.405bn. Further works on Karwenyi HC II were still ongoing, despite the contract end period of 30/09/2019 and payment of UGX.0.158bn. \u2022 Under URF I noted poor works on 4 sampled roads i.e. water crossing over the road due to inadequate drainage, inadequate culvert installations and poor manual maintenance. \u2022 Under YLP Program, I noted that a total of UGX.0.411bn remained outstanding as arrears by the year end. \u2022 Under UWEP Program, I noted that a total of UGX. 0.189bn remained outstanding as arrears by the year end."], "type": "table"}}, {"content": "225", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 238, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["8", "Bundibugyo DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.0.468Bn representing 2%. Further, the entity remained with unspent balance of UGX. 1.496Bn representing absorption level of 95%.  \u2022 I noted some planned key deliverables were implemented while others were partially implemented for example UgIFT projects were partially implemented.  \u2022 Adjustment of UGX0.136Bn in the outstanding commitments lacked supporting documents.  \u2022 UGX0.228Bn was charged on expenditure item codes which do not reflect the nature of the expenditure.  \u2022 Under UgIFT, I noted delayed construction works at Kisubba Seed School, Bupomboli and Burondo health Centre.  \u2022 District paid a sum of UGX 52million to two pensioners without supporting personal files.  \u2022 Under YLP, I noted that Out of UGX.0.694bn disbursed to the groups, only UGX0.111bn had been recovered leaving a balance of UGX.612million outstanding."], ["9", "Kasese MC **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.49 million representing 1%. Further, the entity remained with unspent balance of UGX.1.069Bn representing an absorption level of 82.8%. \u2022 I noted that out of the (6) sampled projects under URF, YLP and SFG programme, (4) were fully achieved while (2) were partially implemented. \u2022 Under URF, I noted poor workmanship on Cathedral and Mugurusi Road. \u2022 Under YLP, I noted that out of UGX.61million disbursed to youth interest groups only UGX.30 million was repaid leaving UGX.31 million outstanding. Further inspections of two selected projects revealed that the chairpersons had disappeared with some of the records, funds, group motorcycles and chairs. \u2022 The Municipality did not dispose of 2 vehicles which were deteriorating in council\u2019s yard."], ["10", "Fort Portal MC **Opinion** Qualified", "\u2022 UGX.1bn expenditure was mischarged by Council during the year. \u2022 I noted the Council received UGX.14.717Bn out of UGX.13.413Bn that was budgeted for representing an increment of10%. Further, the entity remained with unspent balance of UGX. 2.521bn representing an absorption level of 83%. \u2022 UGX. 0.123bn were long outstanding debtors as at year end  \u2022 UGX 0.216bn deducted as Withholding tax was not remitted to URA by year end. \u2022 Under URF, drainage works were still in progress on MT kasenyi road, the project had no sign posts, humps and the road had not yet been marked off. Further, the Council made direct procurements of goods worth UGX.0.457bn without following procurement guidelines for the supply and installation of solar street lights. Also UGX.22million was utilized on Routine Mechanized Maintenance instead of periodic Maintenance which was contrary to the work plan. \u2022 Under YLP, I noted UGX.42million was due from beneficiaries and had not been recovered."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 239, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["SN", "LOCAL GOVERNMENTS", "SUMMARY OF KEY FINDINGS \u2022 Under YLP, I noted that out of UGX 1.084Bn disbursed; only UGX.0.457Bn has been recovered leaving UGX.0.769Bn outstanding. Inspections of two selected groups revealed that out of the 10, only three members were active and they lacked project sign posts."], "type": "table"}}, {"content": [["8", "Bundibugyo DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.0.468Bn representing 2%. Further, the entity remained with unspent balance of UGX. 1.496Bn representing absorption level of 95%.  \u2022 I noted some planned key deliverables were implemented while others were partially implemented for example UgIFT projects were partially implemented.  \u2022 Adjustment of UGX0.136Bn in the outstanding commitments lacked supporting documents.  \u2022 UGX0.228Bn was charged on expenditure item codes which do not reflect the nature of the expenditure.  \u2022 Under UgIFT, I noted delayed construction works at Kisubba Seed School, Bupomboli and Burondo health Centre.  \u2022 District paid a sum of UGX 52million to two pensioners without supporting personal files.  \u2022 Under YLP, I noted that Out of UGX.0.694bn disbursed to the groups, only UGX0.111bn had been recovered leaving a balance of UGX.612million outstanding."], ["9", "Kasese MC **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.49 million representing 1%. Further, the entity remained with unspent balance of UGX.1.069Bn representing an absorption level of 82.8%. \u2022 I noted that out of the (6) sampled projects under URF, YLP and SFG programme, (4) were fully achieved while (2) were partially implemented. \u2022 Under URF, I noted poor workmanship on Cathedral and Mugurusi Road. \u2022 Under YLP, I noted that out of UGX.61million disbursed to youth interest groups only UGX.30 million was repaid leaving UGX.31 million outstanding. Further inspections of two selected projects revealed that the chairpersons had disappeared with some of the records, funds, group motorcycles and chairs. \u2022 The Municipality did not dispose of 2 vehicles which were deteriorating in council\u2019s yard."], ["10", "Fort Portal MC **Opinion** Qualified", "\u2022 UGX.1bn expenditure was mischarged by Council during the year. \u2022 I noted the Council received UGX.14.717Bn out of UGX.13.413Bn that was budgeted for representing an increment of10%. Further, the entity remained with unspent balance of UGX. 2.521bn representing an absorption level of 83%. \u2022 UGX. 0.123bn were long outstanding debtors as at year end  \u2022 UGX 0.216bn deducted as Withholding tax was not remitted to URA by year end. \u2022 Under URF, drainage works were still in progress on MT kasenyi road, the project had no sign posts, humps and the road had not yet been marked off. Further, the Council made direct procurements of goods worth UGX.0.457bn without following procurement guidelines for the supply and installation of solar street lights. Also UGX.22million was utilized on Routine Mechanized Maintenance instead of periodic Maintenance which was contrary to the work plan. \u2022 Under YLP, I noted UGX.42million was due from beneficiaries and had not been recovered."], ["11", "Bunyangabu DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.0.4Bn representing 2%. Further, the entity remained with unspent balance of UGX.0.466Bn representing an absorption level of 97%. \u2022 I noted some planned key deliverables were partially implemented while others were implemented. For example the upgrading of HCII to III, construction of a seed school, and the incomplete construction of the maternity ward were all partially implemented. \u2022 The District did not have land titles for its land including the district Headquarters, sub county land and all the Health Centres. \u2022 Under UgIFT, I noted delayed construction works to upgrade Kabahango HC II to Health Centre III and to build Kiyombya Seed Secondary school; further Kabahango HC III is being constructed on land whose ownership is being contested between Bunyangabu District and the title holders."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 239, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["SN", "LOCAL GOVERNMENTS", "SUMMARY OF KEY FINDINGS \u2022 Under YLP, I noted that out of UGX 1.084Bn disbursed; only UGX.0.457Bn has been recovered leaving UGX.0.769Bn outstanding. Inspections of two selected groups revealed that out of the 10, only three members were active and they lacked project sign posts."], "type": "table"}}, {"content": "226", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 239, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["", "**GULU BRANCH**", ""], ["1", "Agago DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.0.413bn representing 1.4%. Further, the entity remained with unspent balance of UGX.0.15Bn representing an absorption level of 99.5%. \u2022 Of the sampled key outputs implemented (UgIFT, URF, Building and Water works programmes) I noted that out of the 11 outputs/activities, 8 were fully implemented while 3 were partially implemented.  \u2022 I observed that UGX.189million was spent on activities that had not been budgeted for.  \u2022 Staff advances worth UGX.23million remained unaccounted for.  \u2022 There was understaffing of 46% of the approved staff structure of 2,536 positions.  \u2022 Construction works at Lapono Seed Secondary School and Lapirin Health Centre II under UgIFT programme were behind.  \u2022 The district failed to plan for NUSAF3 project funds thus the noted delayed fund disbursements and implementation of sub-projects.  \u2022 URF field inspection revealed incomplete works on Kabala-Kaket road.  \u2022 YLP group members did not comply with repayment schedules as 58% was unrecovered out of the expected UGX.512million.  \u2022 There was delayed release of UWEP funds and recovery challenges with 72% outstanding of the expected UGX.0.520bn."], ["2", "Lamwo DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.0.787bn representing 2.7%. Further, the entity remained with unspent balance of UGX.0.445bn representing an absorption level of 98.4%. \u2022 Of the Key outputs implemented I sample UgIFT, URF, NUSAF3, YLP and UWEP programme and noted that out of the 6 projects, 4 were fully implemented while 2 were partially implemented. \u2022 NUSAF3 was affected by delayed implementation of projects and project assets were not properly managed. \u2022 Under UgFIT, construction of Paloga Seed Secondary School had not commenced while Upgrade of Katum Health Centre II had works at foundation level and the performance security for the project had expired. \u2022 YLP had low recovery with 93% of the expected amount of UGX.0.397bn outstanding and there was delayed transfer of funds to YLP groups. \u2022 UWEP had recovery challenges with 86% of the expected UGX.0.228bn outstanding for funds issued in FY 2016/17 and there was no disbursement of funds to 54 women groups approved in FY 2018/2019. \u2022 I noted non-functioning water sources with low coverage of household latrine and hand washing facilities under water for production programme. \u2022 The district is understaffed at 57.5% of the approved structure of 149 positions."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 240, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["SN", "LOCAL GOVERNMENTS", "SUMMARY OF KEY FINDINGS \u2022 Under YLP, I noted a total of UGX 0.140Bn remained outstanding as arrears as at 30.06.19 for the groups financed in 2016/17 & 2017/18 with 33 groups paying less than 50% of amount received. Further I noted that the district did not remit to BoU a sum of UGX.35 million recovered from youth and UWEP groups respectively."], "type": "table"}}, {"content": [["", "**GULU BRANCH**", ""], ["1", "Agago DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.0.413bn representing 1.4%. Further, the entity remained with unspent balance of UGX.0.15Bn representing an absorption level of 99.5%. \u2022 Of the sampled key outputs implemented (UgIFT, URF, Building and Water works programmes) I noted that out of the 11 outputs/activities, 8 were fully implemented while 3 were partially implemented.  \u2022 I observed that UGX.189million was spent on activities that had not been budgeted for.  \u2022 Staff advances worth UGX.23million remained unaccounted for.  \u2022 There was understaffing of 46% of the approved staff structure of 2,536 positions.  \u2022 Construction works at Lapono Seed Secondary School and Lapirin Health Centre II under UgIFT programme were behind.  \u2022 The district failed to plan for NUSAF3 project funds thus the noted delayed fund disbursements and implementation of sub-projects.  \u2022 URF field inspection revealed incomplete works on Kabala-Kaket road.  \u2022 YLP group members did not comply with repayment schedules as 58% was unrecovered out of the expected UGX.512million.  \u2022 There was delayed release of UWEP funds and recovery challenges with 72% outstanding of the expected UGX.0.520bn."], ["2", "Lamwo DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.0.787bn representing 2.7%. Further, the entity remained with unspent balance of UGX.0.445bn representing an absorption level of 98.4%. \u2022 Of the Key outputs implemented I sample UgIFT, URF, NUSAF3, YLP and UWEP programme and noted that out of the 6 projects, 4 were fully implemented while 2 were partially implemented. \u2022 NUSAF3 was affected by delayed implementation of projects and project assets were not properly managed. \u2022 Under UgFIT, construction of Paloga Seed Secondary School had not commenced while Upgrade of Katum Health Centre II had works at foundation level and the performance security for the project had expired. \u2022 YLP had low recovery with 93% of the expected amount of UGX.0.397bn outstanding and there was delayed transfer of funds to YLP groups. \u2022 UWEP had recovery challenges with 86% of the expected UGX.0.228bn outstanding for funds issued in FY 2016/17 and there was no disbursement of funds to 54 women groups approved in FY 2018/2019. \u2022 I noted non-functioning water sources with low coverage of household latrine and hand washing facilities under water for production programme. \u2022 The district is understaffed at 57.5% of the approved structure of 149 positions."], ["3", "Amuru DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.4.143bn representing 16.3%. Further, the entity over spent by UGX.0.921Bn.  \u2022 I noted mischarge of expenditure amounting to UGX.1.396bn.  \u2022 I noted that the Districts key deliverables for implementation were not reported on in the statement of performance such as UgIFT Programme, NUSAF3 project, URF out puts among others.  \u2022 Administrative advances worth UGX.0.991bn were paid into Staff personal bank accounts.  \u2022 Staff advances worth UGX.51million remained unaccounted for."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 240, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["SN", "LOCAL GOVERNMENTS", "SUMMARY OF KEY FINDINGS \u2022 Under YLP, I noted a total of UGX 0.140Bn remained outstanding as arrears as at 30.06.19 for the groups financed in 2016/17 & 2017/18 with 33 groups paying less than 50% of amount received. Further I noted that the district did not remit to BoU a sum of UGX.35 million recovered from youth and UWEP groups respectively."], "type": "table"}}, {"content": "227", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 240, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["4", "Gulu DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.0.856Bn representing 3.3%. Further, the entity remained with unspent balance of UGX.5.086Bn representing an absorption level of 84.73%. \u2022 The budgeted donor funding of UGX 0.711bn was unrealistic due to lack of any memorandum of understanding with any donor. \u2022 Payables of UGX.3.105bn relating to sundry creditors/court awards remained outstanding at year end. \u2022 Under UgIFT, I noted that civil works on Palaro Seed Secondary School had not commenced despite payment of UGX.301,700,578 to the contractor and the land title was not yet secured. Further, UGX.162,932,021 was diverted to the construction of staff house and pit latrines at two Primary Schools. \u2022 URF field inspection revealed sections of some roads were poorly maintained with insufficient gravel compaction, potholes, silted culverts while some burrow pits were not filled. In addition I observed incomplete works on projects. \u2022 Under YLP, I noted low recovery of 22% of advanced funds to the tune of UGX.0.576bn. 16 youth groups had nil deposits from 2015-2018 and some of the supported projects were no longer in existence. \u2022 UWEP had recovery challenges with 53% outstanding of the expected UGX.0.230bn. No records were held by the group members for the project being implemented. \u2022 Under water program, I noted low levels of safe water coverage, low functionality of water sources and absence of water user committees."], ["5", "Kwania DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.2.038bn representing 9.3%. Further, the entity remained with unspent balance of UGX.2.664bn representing an absorption level of 87%. \u2022 Out of the 6 sampled outputs from undertaken projects (UgIFT, URF, YLP and UWEP programmes) i noted that 4 were fully implemented, 1 was partially implemented and 1 was not implemented at all. \u2022 Under UgIFT, I noted that Aduku Seed Secondary School had no land title and construction works were behind schedule with all structures at ring beam level. \u2022 URF field inspection revealed some poorly maintained and bushy roads while emergency works of UGX.21million on Wicere to Akali health centre II had not commenced. \u2022 YLP had low recovery of disbursed funds with 91% outstanding of the expected amount of UGX.23million and noted one group that was no longer operational. \u2022 UWEP had low recovery challenges with 29% outstanding of the expected UGX.17.9million. \u2022 Water for use and production program had nonfunctional water sources and accessibility was below the district target. \u2022 The district was understaffed at 54% of the approved staff structure of 237 positions."], ["6", "Kole DLG **Opinion**", "\u2022 Out of the 100% release of UGX.26.027bn, the entity remained with unspent balance of UGX.0.310Bn representing an absorption level of 98.8%. \u2022 UGX.0.294bn was paid from various accounts for activities not provided for in the budget."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 241, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["SN", "LOCAL GOVERNMENTS", "SUMMARY OF KEY FINDINGS \u2022 Construction works under UgIFT at Amuru Seed Secondary School and Otwee Health Centre II were behind schedule. \u2022 There was late disbursement of NUSAF3 project funds hence delayed project implementation. I also noted unacknowledged transfers to groups amounting to UGX.138million and lack of proper book keeping. \u2022 URF field inspection revealed poorly maintained roads with bushy road edges, silted culverts and failure to undertake gravel compaction. \u2022 YLP had low recovery with 86% outstanding funds of the expected UGX.0.920bn. I noted delayed transfer of funds to YLP groups and irregular transfer of funds to groups with no proper identity and business plans. \u2022 UWEP funds to the tune of UGX.11million were not transferred to 2 women groups."], "type": "table"}}, {"content": [["4", "Gulu DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.0.856Bn representing 3.3%. Further, the entity remained with unspent balance of UGX.5.086Bn representing an absorption level of 84.73%. \u2022 The budgeted donor funding of UGX 0.711bn was unrealistic due to lack of any memorandum of understanding with any donor. \u2022 Payables of UGX.3.105bn relating to sundry creditors/court awards remained outstanding at year end. \u2022 Under UgIFT, I noted that civil works on Palaro Seed Secondary School had not commenced despite payment of UGX.301,700,578 to the contractor and the land title was not yet secured. Further, UGX.162,932,021 was diverted to the construction of staff house and pit latrines at two Primary Schools. \u2022 URF field inspection revealed sections of some roads were poorly maintained with insufficient gravel compaction, potholes, silted culverts while some burrow pits were not filled. In addition I observed incomplete works on projects. \u2022 Under YLP, I noted low recovery of 22% of advanced funds to the tune of UGX.0.576bn. 16 youth groups had nil deposits from 2015-2018 and some of the supported projects were no longer in existence. \u2022 UWEP had recovery challenges with 53% outstanding of the expected UGX.0.230bn. No records were held by the group members for the project being implemented. \u2022 Under water program, I noted low levels of safe water coverage, low functionality of water sources and absence of water user committees."], ["5", "Kwania DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.2.038bn representing 9.3%. Further, the entity remained with unspent balance of UGX.2.664bn representing an absorption level of 87%. \u2022 Out of the 6 sampled outputs from undertaken projects (UgIFT, URF, YLP and UWEP programmes) i noted that 4 were fully implemented, 1 was partially implemented and 1 was not implemented at all. \u2022 Under UgIFT, I noted that Aduku Seed Secondary School had no land title and construction works were behind schedule with all structures at ring beam level. \u2022 URF field inspection revealed some poorly maintained and bushy roads while emergency works of UGX.21million on Wicere to Akali health centre II had not commenced. \u2022 YLP had low recovery of disbursed funds with 91% outstanding of the expected amount of UGX.23million and noted one group that was no longer operational. \u2022 UWEP had low recovery challenges with 29% outstanding of the expected UGX.17.9million. \u2022 Water for use and production program had nonfunctional water sources and accessibility was below the district target. \u2022 The district was understaffed at 54% of the approved staff structure of 237 positions."], ["6", "Kole DLG **Opinion**", "\u2022 Out of the 100% release of UGX.26.027bn, the entity remained with unspent balance of UGX.0.310Bn representing an absorption level of 98.8%. \u2022 UGX.0.294bn was paid from various accounts for activities not provided for in the budget."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 241, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["SN", "LOCAL GOVERNMENTS", "SUMMARY OF KEY FINDINGS \u2022 Construction works under UgIFT at Amuru Seed Secondary School and Otwee Health Centre II were behind schedule. \u2022 There was late disbursement of NUSAF3 project funds hence delayed project implementation. I also noted unacknowledged transfers to groups amounting to UGX.138million and lack of proper book keeping. \u2022 URF field inspection revealed poorly maintained roads with bushy road edges, silted culverts and failure to undertake gravel compaction. \u2022 YLP had low recovery with 86% outstanding funds of the expected UGX.0.920bn. I noted delayed transfer of funds to YLP groups and irregular transfer of funds to groups with no proper identity and business plans. \u2022 UWEP funds to the tune of UGX.11million were not transferred to 2 women groups."], "type": "table"}}, {"content": "228", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 241, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["7", "Oyam DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.0.994Bn representing 2.5%. Further, the entity remained with unspent balance of UGX.0.857Bn representing an absorption level of 97.8%.  \u2022 Payables of UGX.3.256bn comprising of creditors at UGX.1.118bn and pension liability of UGX.0.793bn remained outstanding at year end.  \u2022 Staff advances worth UGX.32M had duplicated accountabilities and Staff advances worth UGX.27M remained unaccounted for.  \u2022 A 4WD Ambulance procured at UGX.240M was not delivered.  \u2022 UGX.25M in form of withholding tax was not deducted for remittance to URA  \u2022 27% of DDEG funds were spent on purchase of 2 double cabin pickups above the approved rate of 15%.  \u2022 I noted irregular cash payments worth UGX.114M out of which UGX.6.8M withholding tax was not deducted.  \u2022 There was delayed construction works at Aribu HC II with works stalling at ring beam level under UgIFT.  \u2022 NUSAF3 was affected by delayed fund disbursements and some projects were incomplete despite release of all the funds and no proper records were maintained on site.  \u2022 URF field inspection revealed sections of some roads poorly maintained with potholes and bushy sides. In addition, I observed incomplete works on projects.  \u2022 YLP had low recovery with 75% outstanding of the expected amount of UGX.0.542bn. I further noted that the district had not transferred UGX.3.4M to the National Revolving fund A/C in BOU. \u2022 UWEP had recovery challenges with 74% of funds disbursed outstanding out of the expected UGX.0.544bn.  \u2022 I noted non-functional water points and lack of maintenance for the water facilities.  \u2022 Some staff were in acting capacity in excess of 12 months without renewal of appointments.  \u2022 The district did not have certificates of title for some of its land and noted grounded vehicles with no disposal plan."], ["8", "Lira DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX. 1.1836Bn representing 3.1%. Further, the entity remained with unspent balance of UGX.1.709Bn representing an absorption level of 95.45%."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 242, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["SN", "LOCAL GOVERNMENTS Unqualified", "SUMMARY OF KEY FINDINGS \u2022 Under UgIFT, I noted several anomalies i.e. delays in completion of contracts, failure to enforce contracts management, advance payments without bank guarantee and unsupported payments without engineers\u2019 measurement sheets and certificates. \u2022 URF field inspections revealed that some road sections were poorly maintained with silted culverts and no headwalls, poor drainage, broken culverts and incomplete shoddy works. \u2022 NUSAF3 funds of UGX.0.922bn were not adequately budgeted for and project implementations contravened procurement guidelines while no proper books were maintained. Inspected construction works were poorly done and incomplete. \u2022 Under UWEP, the district did not make any disbursements to the 45 projects and groups failed to make repayments worth UGX.92M while no proper books of accounts were maintained. \u2022 YLP records were not availed for audit for period 2013-2018 hence could not confirm extent of repayment. \u2022 SAGE lacked a payroll update since its inception while beneficiaries don\u2019t access funds on time. I further observed inconsistencies in payments that led to over payments. \u2022 I noted non-functional wells while boreholes and valley dams were not properly maintained. \u2022 Some procurements were done contrary to the regulations by diverting from evaluation criteria and improper use of negotiations. \u2022 Local revenue collection of UGX.0.245 was not supported with an updated revenue register and unexplained variance of UGX.0.247bn was also noted."], "type": "table"}}, {"content": "229", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 242, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["9", "Kitgum DLG **Opinion** Qualified", "\u2022 UGX.315million in staff advances was unaccounted for.  \u2022 There was a shortfall in releases amounting to UGX.2.854bn representing 9.2%. Further, the entity over spent by UGX.0.185Bn.  \u2022 UGX.450million was mischarges of expenditure during the year.  \u2022 Out of the 17 sampled outputs from the various departments (Health, Education, Water and works sectors) i noted that 11 were fully implemented, 4 were partially implemented and 2 were not implemented at all  \u2022 I noted payment for activities worth UGX.202million that were not in the work plan.  \u2022 There was irregular direct procurement of food items worth UGX.57million for nodding disease patients.  \u2022 Under UgIFT projects, I noted Amida Seed Secondary School had no land title and construction works had not commenced.  \u2022 NUSAF3 had late disbursement of funds while Internal Audit did not audit project accounts.  \u2022 URF field inspection revealed that some roads were poorly maintained with over grown bushes and some works remained incomplete.  \u2022 YLP had late disbursement of funds to groups while UGX.47million was not disbursed. I was not availed repayment schedules and bank statements for the district revolving fund account for funds disbursed in 2014-2018.  \u2022 UGX.16million for UWEP funds was not disbursed and repayment schedules for FYs 2014-15 and 2017-18 were not availed.  \u2022 Water for use and production project had non-functional water sources and accessibility was below the district target."], ["10", "Apac DLG **Opinion**", "\u2022 There was lack of an explanation and approval from the Accountant general for an opening balance of UGX.1.724bn in the statement of changes in equity as a result of a prior year adjustment in receivables."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 243, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["SN", "LOCAL GOVERNMENTS", "SUMMARY OF KEY FINDINGS \u2022 I noted mischarges of expenditure worth UGX.0.144bn.  \u2022 Of the Key outputs implemented, I noted that some of the Districts key deliverables were not reported on in the statement of performance such as UgIFT, NUSAF3 project and URF out puts among others.  \u2022 UGX.0.257bn were diverted and paid to consolidated fund as a refund for excess releases erroneously paid to the district in FY 2017/18.  \u2022 Arrears of UGX.4.266bn for salary (UGX.0.265bn) and pension and gratuity (UGX.4bn) remained outstanding at year end.  \u2022 The council utilised 47% of the total local revenue collections towards payment of allowances contrary to the legal provision of 20%.  \u2022 Fuel deposits worth UGX.50M remained unaccounted for.  \u2022 A number of district vehicles were grounded and unserviceable hence due for disposal  \u2022 There was delayed implementation of UgIFT projects as construction works were still on foundation stage.  \u2022 NUSAF3 had inadequate project implementation with 2 of the project vehicles in poor conditions and one vehicle grounded.  \u2022 URF field inspection revealed poorly maintained road sections with culvert installation and incomplete works on projects.  \u2022 YLP had low recovery of 23% of the expected amount of UGX.0.520bn.  \u2022 UWEP had recovery challenges with 69% outstanding of the expected UGX.0.227bn and no records were held by the group members for the project being implemented.  \u2022 The district had non-functional water points and water user committees.  \u2022 There were irregularities in the use of force on account in remodeling and refurbishment of district cash office."], "type": "table"}}, {"content": "230", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 243, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["11", "Apac MC **Opinion** Unqualified", "\u2022 UGX.196.8million was unaccounted for by year end.  \u2022 There was a shortfall in releases amounting to UGX.1.75bn representing 12%. \u2022 Status review of implementation of planned outputs revealed that UgIFT, URF (Routine mechanized maintenance), NUSAF 3, YLP and UWEP were ongoing, 100%, 100%, 74.4% and 0% respectively. \u2022 Pension liability of UGX.33.8million was outstanding at year end. \u2022 Under UgIFT, the district made an over commitment of UGX.0.414bn in the contract for construction of Pokot Girls Seed Secondary School and the contractor did not execute a performance security while the school lacks a land title. \u2022 Under NUSAF-3, there was delayed disbursement of UGX.2.3Bn to the district and hence there were no funds transferred to the groups. \u2022 Under URF, field inspection revealed some impassable sections of the road. \u2022 Under YLP, I noted a recovery rate of only 32.6% of the funds disbursed in FY 2016/2017 and 2018/2019 and the District failed to transfer UGX.10.7M of the recovered funds to BOU. In addition, there was no repayment ledger."], ["12", "Pader DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.2.851Bn representing 10.3%. Further, the entity remained with unspent balance of UGX.0.722Bn representing an absorption level of 97%. \u2022 Under UgIFT, construction of Ogom Seed Secondary School was not undertaken and works at Lapu HC II had stalled at beam level despite receipt of funds that were swept back at year end. \u2022 NUSAF3 experienced delayed implementation of two projects oit of the sampled five.  \u2022 URF field inspection revealed pending works of swamp filling and culvert installations on Atanga- Bolo-Lagile road.  \u2022 Under RTI, there were incomplete works on Ogonyo- Odum of swamp filling and culvert installations four months after project expected completion date.  \u2022 YLP had low recovery with 93% of disbursed funds outstanding out of the expected collection of UGX.574M while group members did not maintain proper books of accounts.  \u2022 Under UWEP, I noted that 79.6% of UGX.173M advanced remained unrecovered.  \u2022 The district was affected by low functionality of water sources while safe water coverage for sub-counties of Awere, Laguti and Atanga was below the district average."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 244, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["SN", "LOCAL GOVERNMENTS Qualified", "SUMMARY OF KEY FINDINGS \u2022 UgFIT programme funds amounting to UGX.389million were diverted to pay rolled over projects for FY 2017/18 and expenditure amounting to UGX.145million remained unaccounted for.  \u2022 I noted mischarge of expenditure amounting to UGX.103million  \u2022 There was a shortfall in releases amounting to UGX.1.696Bn representing 6%. Further, the entity remained with unspent balance of UGX.0.03bn representing an absorption level of 99.89%.  \u2022 Of the Key outputs implemented I sampled UgIFT, URF, NUSAF 3 and Water works, and noted that out of the 12 projects, 7 were fully implemented while 5 were partially implemented.  \u2022 UGX.2.990bn accumulated Payables remained outstanding at year end.  \u2022 The district is understaffed at 18% of the approved staff structure of 1,477 positions.  \u2022 UgFIT programme released UGX.530M in excess of the UGX.500M budget for upgrade of Olepek HC II to III out of which UGX.389M remained unaccounted for and the site had been abandoned without completion.  \u2022 NUSAF3 released UGX.3.732bn in excess of the budget of UGX.3.4bn with no supplementary approvals and I observed delays in implementation of projects.  \u2022 URF field inspection observed that some roads were poorly maintained with muddy sections.  \u2022 YLP had low recovery rate with 91% outstanding of the expected amount of UGX.0.784bn between 2014 to 2017."], "type": "table"}}, {"content": "231", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 244, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["14", "Gulu MC **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.21.686bn representing 37.3%. Further, the entity remained with unspent balance of UGX.0.474bn representing an absorption level of 98.6%. \u2022 I noted mischarge of expenditure amounting to UGX.49million \u2022 Of the Key outputs implemented under the three projects (URF, YLP and UWEP), i noted that 1 was fully implemented while 2 were partially implemented. \u2022 Staff advances to the tune of UGX.6.9million were unaccounted for. \u2022 URF field inspection revealed that some roads were poorly maintained with potholes, had un finished drainage and were unmarked."], ["15", "Gulu RRH **Opinion** Qualified", "\u2022 Adjustments to the opening net worth in the statement of changes in equity worth UGX.31million, UGX.283million and UGX.84million relating to cash and cash equivalents, payables and receivables respectively were not supported with proper explanations and justification. \u2022 There was a shortfall in releases amounting to UGX.0.457bn representing 4.8%. Further, the entity remained with unspent balance of UGX.0.381bn representing an absorption level of 95.8%. \u2022 I noted mischarges of expenditure worth UGX.20million  \u2022 UGX.624million gratuity arrears were outstanding at year end. \u2022 NTR of UGX.188million was irregularly utilised at source.  \u2022 UGX.42million remained unaccounted for at year end. \u2022 The hospital is understaffed with 33% of the positions not filled out of 447 on the structure and 28 staff had overstayed on probation. \u2022 There was lack of a functional hospital board hence no meetings were held. \u2022 Challenges faced included drug stock outs for essential medicine experienced during the year, failure to maintain temperature records, inadequate air conditioning and non-functional incinerator. \u2022 There was delayed completion on construction of 2 storied 54 staff unit houses as construction works were still at wall plate."], ["16", "Kitgum MC", "\u2022 There was a shortfall in releases amounting to UGX.0.514Bn representing 6%. Further, the entity remained with unspent balance of UGX.1.527Bn representing an absorption level of 86.6%."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 245, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["SN 13", "LOCAL GOVERNMENTS Nwoya DLG Opinion Unqualified", "SUMMARY OF KEY FINDINGS \u2022 There was a shortfall in releases amounting to UGX.0.067Bn representing 0.3%. Further, the entity remained with unspent balance of UGX.0.477Bn representing an absorption level of 97.69%. \u2022 Of the sampled key outputs implemented under 4 projects (UgIFT, URF, NUSAF3 and UWEP programme) i noted that 2 were fully implemented and 2 were partially implemented. \u2022 The District had court cases some dating as far back as 2016 and none were disposed in the year under review. \u2022 Local revenue collections amounting to UGX.21million was neither disclosed in Financial Statements nor banked to the General Fund Collection Account. \u2022 I noted delayed implementation of UgIFT projects at Lungulu Seed Secondary School and Kochi Lii Health Centre II. \u2022 NUSAF3 was affected by delayed fund disbursements and there was poor implementation of some projects while project assets were poorly managed. \u2022 YLP had low recovery of only 39% of the expected amount of UGX.0.460bn and the district had not transferred recovered funds amounting to UGX.99M to the National Revolving fund A/C in BOU. \u2022 UWEP had recovery challenges with 77% outstanding of the expected UGX.0.203bn. \u2022 I noted non-functional water sources and lack of maintenance due to non-active water source committees."], "type": "table"}}, {"content": "232", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 245, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["17", "Omoro DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.1.974Bn representing 8%. Further, the entity remained with unspent balance of UGX.0.689Bn representing an absorption level of 89.5%. \u2022 I noted that the district did not fully disclose major programmes key outputs implemented in the statements of performance during the year. \u2022 UgIFT was affected by delayed implementation of projects while Lakwana Seed School lacked a land title. \u2022 NUSAF3 was affected by delayed fund disbursements, delayed project implementation and poor management of project assets. \u2022 URF field inspection revealed some road sections with uninstalled culverts, no headwalls and broken culverts. In addition, I observed incomplete works on projects. \u2022 YLP group members did not comply with repayment schedules and no proper books of accounts were maintained. \u2022 Of the 6 sub-counties, I noted that Bobi at 49.14% and Odek at 45.45% were below the sector target of 57.65% in implementing Water for production project."], ["18", "Alebtong DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.0.370Bn representing 2%. Further, the entity remained with unspent balance of UGX.1.472Bn representing an absorption level of 94%.  \u2022 Of the Key outputs implemented, I noted that out of 11 projects sampled, 8 were fully implemented, 1 was partially implemented while 2 were not implemented at all.  \u2022 Staff advances worth UGX.56million remained unaccounted for.  \u2022 Payments worth UGX.28million were not in the budget/work plan for the year.  \u2022 I observed non functionality of Internal Audit as no audit reports were produced during the year under review.  \u2022 NUSAF3 was affected by delayed fund disbursements.  \u2022 Construction works were still ongoing on most of the inspected sites under the UgIFT project and Abia Seed Secondary School had untitled land.  \u2022 On YLP, I noted that monitoring of activities of the youth groups and repayments was not done by the District and bank statements for the revolving fund account were not availed.  \u2022 I was not availed with annual situation analysis report for water sources."], ["19", "Lira MC **Opinion** Qualified", "\u2022 There was an unauthorised (by Accountant General) write off of excess depreciation on machinery and equipment of UGX.0.296bn presented in the statement of changes in equity of the financial statements. \u2022 I noted mischarge of expenditure amounting to UGX.128million. \u2022 There was a shortfall in releases amounting to UGX.20.636bn representing 63%. Further, the entity overspent UGX.8.823bn with excess funds being USMID balances from the prior year. \u2022 I sampled key outputs under URF (roads maintained). Out of the 12 roads inspected, 11 were fully implemented and 1 was partially implemented."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 246, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["SN", "LOCAL GOVERNMENTS Opinion Unqualified", "SUMMARY OF KEY FINDINGS \u2022 I noted mischarge of expenditure amounting to UGX.173million  \u2022 I noted that Council did not report on some of the key deliverables in the statement of performance.  \u2022 There was delayed implementation of upgrading Pandwong HCII to HCIII with works at walling level and abandoned under UgIFT project.  \u2022 UWEP had low recovery of disbursed funds with 61% of the expected amount of UGX.115M outstanding while some groups were nonexistent.  \u2022 YLP had low recovery with 88.1% of the expected amount of UGX.0.253bn outstanding while some groups were nonexistent.  \u2022 I noted excess disbursement of capitation Grants amounting to UGX.17million  \u2022 I noted staffing gaps of 57.5% out of the approved staff structure of 167 positions."], "type": "table"}}, {"content": [["17", "Omoro DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.1.974Bn representing 8%. Further, the entity remained with unspent balance of UGX.0.689Bn representing an absorption level of 89.5%. \u2022 I noted that the district did not fully disclose major programmes key outputs implemented in the statements of performance during the year. \u2022 UgIFT was affected by delayed implementation of projects while Lakwana Seed School lacked a land title. \u2022 NUSAF3 was affected by delayed fund disbursements, delayed project implementation and poor management of project assets. \u2022 URF field inspection revealed some road sections with uninstalled culverts, no headwalls and broken culverts. In addition, I observed incomplete works on projects. \u2022 YLP group members did not comply with repayment schedules and no proper books of accounts were maintained. \u2022 Of the 6 sub-counties, I noted that Bobi at 49.14% and Odek at 45.45% were below the sector target of 57.65% in implementing Water for production project."], ["18", "Alebtong DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.0.370Bn representing 2%. Further, the entity remained with unspent balance of UGX.1.472Bn representing an absorption level of 94%.  \u2022 Of the Key outputs implemented, I noted that out of 11 projects sampled, 8 were fully implemented, 1 was partially implemented while 2 were not implemented at all.  \u2022 Staff advances worth UGX.56million remained unaccounted for.  \u2022 Payments worth UGX.28million were not in the budget/work plan for the year.  \u2022 I observed non functionality of Internal Audit as no audit reports were produced during the year under review.  \u2022 NUSAF3 was affected by delayed fund disbursements.  \u2022 Construction works were still ongoing on most of the inspected sites under the UgIFT project and Abia Seed Secondary School had untitled land.  \u2022 On YLP, I noted that monitoring of activities of the youth groups and repayments was not done by the District and bank statements for the revolving fund account were not availed.  \u2022 I was not availed with annual situation analysis report for water sources."], ["19", "Lira MC **Opinion** Qualified", "\u2022 There was an unauthorised (by Accountant General) write off of excess depreciation on machinery and equipment of UGX.0.296bn presented in the statement of changes in equity of the financial statements. \u2022 I noted mischarge of expenditure amounting to UGX.128million. \u2022 There was a shortfall in releases amounting to UGX.20.636bn representing 63%. Further, the entity overspent UGX.8.823bn with excess funds being USMID balances from the prior year. \u2022 I sampled key outputs under URF (roads maintained). Out of the 12 roads inspected, 11 were fully implemented and 1 was partially implemented."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 246, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["SN", "LOCAL GOVERNMENTS Opinion Unqualified", "SUMMARY OF KEY FINDINGS \u2022 I noted mischarge of expenditure amounting to UGX.173million  \u2022 I noted that Council did not report on some of the key deliverables in the statement of performance.  \u2022 There was delayed implementation of upgrading Pandwong HCII to HCIII with works at walling level and abandoned under UgIFT project.  \u2022 UWEP had low recovery of disbursed funds with 61% of the expected amount of UGX.115M outstanding while some groups were nonexistent.  \u2022 YLP had low recovery with 88.1% of the expected amount of UGX.0.253bn outstanding while some groups were nonexistent.  \u2022 I noted excess disbursement of capitation Grants amounting to UGX.17million  \u2022 I noted staffing gaps of 57.5% out of the approved staff structure of 167 positions."], "type": "table"}}, {"content": "233", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 246, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["20", "Lira RRH **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.0.665bn representing 7.5%. Further, the entity remained with unspent balance of UGX.0.05bn representing an absorption level of 99.4%. \u2022 I noted that the project for construction of 16-unit staff houses was behind schedule.  \u2022 The hospital is understaffed by 32% out of the 428 approved positions on the staff structure. \u2022 Shortcomings were noted in the implementation of the provisions in the circular standing instructions on staff performance management. The gaps identified include: No development of performance agreements/targets, no submission of performance appraisal reports, no completion of Quarterly Performance Reviews and no submission of progress report on performance improvement plans."], ["", "**HOIMA BRANCH**", ""], ["1", "Buliisa DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX. 0.61Bn representing 3.9% of the budget. Further, the entity remained with unspent balance of UGX. 1.09Bn representing an absorption level of 93%. \u2022 Most of the districts key activities were partially implemented. \u2022 I noted that Kirama Vocational Institute was none functional as at October 2019 receipt of UGX 163,386,515 from Uganda Wildlife Authority in 2014/15. \u2022 Out of the 140 approved staff positions; only 54 (39%) posts were filled, leaving 86 (61%) positions vacant. \u2022 Under UgFIT UGX 0.62Bn representing 51% remained unutilised under the upgrade of health centres and works had halted. No contract was awarded and no work was done at the construction of the seed school despite receiving 100% of the funds. \u2022 Under NUSAF 3 I observed that there were no District Technical Planning Committee (DTPC) and District Executive Committee (DEC) meeting minutes approving the 56 district sub projects groups submitted to OPM for funding. Inspection revealed that there were challenges in the implementation of the projects. I also noted that the Community Water Shed community did not maintain proper records. \u2022 Under URF, I noted that under mechanized maintenance, the district implemented 22.7km more than planned leading to an over expenditure. Field inspection revealed that there was poor side drainage, washed away culverts, severe potholes, and narrow roads on a number of roads inspected. \u2022 Under YLP, I noted that for the financial year 2014/2015 and 2015/2016 the district had recovered only UGX.85,104,700 out of the expected total amount due of UGX 339,046,000 leaving a balance of UGX.266,638,365. \u2022 Under UWEP, I noted that from the financial year 2015/2016 to date, the district had recovered only UGX 45,499,000 (12%) out of the expected total amount due (Interest Exclusive) of UGX 328,000,000, leaving an outstanding balance of UGX 328,000,000 (Interest Inclusive). Physical inspection revealed that there was diversion of funds, poor record keeping. \u2022 Under water for use and production UGX 382,819,836 was received for service delivery leading to a shortfall of UGX. 127,504,164 which management attributed to budget cuts. \u2022 Under capitation grant, I noted that the sampled school received grants from government but never prepared financial statements."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 247, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["SN", "LOCAL GOVERNMENTS", "SUMMARY OF KEY FINDINGS \u2022 In statement of appropriation account (expenditure by nature) I noted an unapproved expenditure amounting to UGX.2.707bn.  \u2022 Staff advances worth UGX.62million remained unaccounted for.  \u2022 The municipality is understaffed by 47% out of the 260 approved positions.  \u2022 During inspection of URF projects, I observed a section on Okot Ogong Road which was poorly drained due to absence of off shoots.  \u2022 YLP had low recovery with 95% disbursed funds outstanding of the expected UGX.0.131bn.  \u2022 I noted delayed implementation of activities on garbage management as per the Council\u2019s 5- year Development Plan."], "type": "table"}}, {"content": [["20", "Lira RRH **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.0.665bn representing 7.5%. Further, the entity remained with unspent balance of UGX.0.05bn representing an absorption level of 99.4%. \u2022 I noted that the project for construction of 16-unit staff houses was behind schedule.  \u2022 The hospital is understaffed by 32% out of the 428 approved positions on the staff structure. \u2022 Shortcomings were noted in the implementation of the provisions in the circular standing instructions on staff performance management. The gaps identified include: No development of performance agreements/targets, no submission of performance appraisal reports, no completion of Quarterly Performance Reviews and no submission of progress report on performance improvement plans."], ["", "**HOIMA BRANCH**", ""], ["1", "Buliisa DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX. 0.61Bn representing 3.9% of the budget. Further, the entity remained with unspent balance of UGX. 1.09Bn representing an absorption level of 93%. \u2022 Most of the districts key activities were partially implemented. \u2022 I noted that Kirama Vocational Institute was none functional as at October 2019 receipt of UGX 163,386,515 from Uganda Wildlife Authority in 2014/15. \u2022 Out of the 140 approved staff positions; only 54 (39%) posts were filled, leaving 86 (61%) positions vacant. \u2022 Under UgFIT UGX 0.62Bn representing 51% remained unutilised under the upgrade of health centres and works had halted. No contract was awarded and no work was done at the construction of the seed school despite receiving 100% of the funds. \u2022 Under NUSAF 3 I observed that there were no District Technical Planning Committee (DTPC) and District Executive Committee (DEC) meeting minutes approving the 56 district sub projects groups submitted to OPM for funding. Inspection revealed that there were challenges in the implementation of the projects. I also noted that the Community Water Shed community did not maintain proper records. \u2022 Under URF, I noted that under mechanized maintenance, the district implemented 22.7km more than planned leading to an over expenditure. Field inspection revealed that there was poor side drainage, washed away culverts, severe potholes, and narrow roads on a number of roads inspected. \u2022 Under YLP, I noted that for the financial year 2014/2015 and 2015/2016 the district had recovered only UGX.85,104,700 out of the expected total amount due of UGX 339,046,000 leaving a balance of UGX.266,638,365. \u2022 Under UWEP, I noted that from the financial year 2015/2016 to date, the district had recovered only UGX 45,499,000 (12%) out of the expected total amount due (Interest Exclusive) of UGX 328,000,000, leaving an outstanding balance of UGX 328,000,000 (Interest Inclusive). Physical inspection revealed that there was diversion of funds, poor record keeping. \u2022 Under water for use and production UGX 382,819,836 was received for service delivery leading to a shortfall of UGX. 127,504,164 which management attributed to budget cuts. \u2022 Under capitation grant, I noted that the sampled school received grants from government but never prepared financial statements."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 247, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["SN", "LOCAL GOVERNMENTS", "SUMMARY OF KEY FINDINGS \u2022 In statement of appropriation account (expenditure by nature) I noted an unapproved expenditure amounting to UGX.2.707bn.  \u2022 Staff advances worth UGX.62million remained unaccounted for.  \u2022 The municipality is understaffed by 47% out of the 260 approved positions.  \u2022 During inspection of URF projects, I observed a section on Okot Ogong Road which was poorly drained due to absence of off shoots.  \u2022 YLP had low recovery with 95% disbursed funds outstanding of the expected UGX.0.131bn.  \u2022 I noted delayed implementation of activities on garbage management as per the Council\u2019s 5- year Development Plan."], "type": "table"}}, {"content": "234", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 247, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["3", "Kiryandongo DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX. 0.63Bn representing 1.95% of the budget. Further, the entity remained with unspent balance of UGX. 1.108Bn representing an absorption level of 97%. \u2022 It was observed that some of the planned outputs were not achieved. \u2022 Under UgIFT education component I noted that there was no activity implemented during the year following an application for administrative review \u2022 Under NUSAF-3 I noted late release of funds to the district and delays by the district to disburse the funds to sub-projects by an average of 71days from the time of receipt of funds. Inspection revealed that the sampled roads were not gravelled, and there were no sign posts. \u2022 Under URF I noted incomplete road works on the sampled road. \u2022 Under YLP I noted that from the financial year 2014/2015 to date, the district had recovered only UGX.136,481,800 out of the expected total amount due (Interest Exclusive) of UGX.517,672,726, leaving an outstanding balance of UGX.376,717,872 (Interest Inclusive). Additionally, the District had not transferred funds amounting to UGX.50,942,679 to the National Revolving Fund Account in BoU by 30th June 2019. Inspections revealed that the projects lacked signposts and basic financial management records. \u2022 Under capitation grant, I noted that the sampled schools did not prepare financial statements for the grants received totalling to UGX.63,678,150 \u2022 Under water for use and consumption I noted that two out of the four contracted bore holes were successfully installed representing 50% performance."], ["4", "Hoima DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX. 3.68 Bn representing 14%. Further, the entity remained with unspent balance of UGX. 2.083 representing absorption level of 90.8 %. \u2022 Out of a sample of planned 11 key outputs including UgIFT, URF, Water, Education, Human resource, YLP and UWEP programme, the findings indicate that out of the 11 projects, 6 were fully achieved while 3 partially implemented and 2 not implemented"]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 248, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["SN  2", "LOCAL GOVERNMENTS Kagadi DLG Opinion Unqualified", "SUMMARY OF KEY FINDINGS \u2022 There was a shortfall in releases amounting to UGX. 1.54Bn representing 5.12% under release. Further, the entity remained with unspent balance of UGX. 2.907Bn representing an absorption level of 89.7%. \u2022 I noted that while some of the district\u2019s key programmes were fully implemented, others were not fully implemented \u2022 I noted that domestic arrears to a tune of UGX.18,026,430 was paid out without evidence of Council approval \u2022 Under URF, for routine manual maintenance i noted that road gangs did not work during quarter 4 but were paid UGX. 46,542,000. I also noted excess expenditure of UGX 30,932,000 as a result of routine mechanical maintenance of 4km over and above the budgeted for amount. \u2022 Under YLP, I noted that there was no evidence of training of the group before project implementation and there were no basic financial management records. Additionally, one of the sampled group\u2019s location could not be traced. \u2022 Under UWEP, I noted that one of the sampled groups did not maintain basic financial management information and lacked a signpost clearly identifying them. \u2022 I noted that Micro procurements worth UGX 10,994,000 of various items were not reported to the Contract Committee contrary to the regulation \u2022 The cumulative water situation analysis revealed that on average 30.31% of the water facilities were non-functional. \u2022 I noted that spares supplied were not recorded in the stores ledgers and no requisition / issue vouchers were prepared by the user department to confirm authorization contrary to stores regulations \u2022 I noted the district had staffing gaps of 46% of the approved structure."], "type": "table"}}, {"content": "235", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 248, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["5", "Masindi MC **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX. 1.34Bn representing 12% under release. Further, the entity remained with unspent balance of UGX. 0.012Bn representing an absorption level of 99.9%. \u2022 I noted that some of council\u2019s key deliverables were not fully implemented during the year under review \u2022 A total of UGX.69,490,402 paid to various officers for implementation of activities remained unaccounted for while salary arrears worth UGX 51,664,937 were paid for without supporting documents. \u2022 Under UgIFT inspections revealed that works were incomplete at the health centre while funds meant for the construction of a seed secondary school were diverted to the construction of a staff house and 2 stance VIP latrine \u2022 Under URF, Inspections revealed poor side drainage, lack of sign posts and gullies on sampled roads. I also noted that no tarmac was done on some roads under mechanised maintenance. \u2022 Under YLP, I noted that from the financial year 2013/2014 to FY 2015/2016, the Municipality disbursed UGX.145,447,318 to YLGs out of which UGX.60,323,900 only had been recovered leaving an outstanding balance of UGX.85,123,418 (Interest Inclusive). Additionally, by 30th June, 2019, the Municipality had not transferred funds amounting to UGX 15,087,595 to the National Revolving Fund Account in BoU. Inspections revealed that some groups had disintegrated and delayed re-payment by the groups. \u2022 Under UWEP, I noted that from the financial year 2016/2017 to 2017/18, the Council had recovered only UGX 43,103,300 (31%) out of the expected total amount due of UGX. 99,407,340 (Interest Inclusive). In addition, I noted that by 30th June, 2019, the Municipality had not transferred funds amounting to UGX 28,666,800 to the National Revolving Fund Account in BoU. \u2022 I noted an overpayment of salary and pension to the tune of UGX 43,499,760 and UGX 27,567,245 respectively. \u2022 Under capitation grant, I noted under funding compared to the enrolment. I also noted that detailed budgets for capitation grant and financial statements are not prepared as required."], ["6", "Kakumiro DLG **Opinion** Unqualified", "\u2022 The entity remained with unspent balance of UGX. 0.391bn representing an absorption level of 97.8%. \u2022 I noted that UGX.11,202,000 was paid to settle domestic arrears which were not provided for in the approved budget for the year under review. \u2022 I noted issues in the implementation of the UGIFT health component. These included incomplete works on the maternity wards and medical waste pit, no provision for 4 stance VIP latrine and"]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 249, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["SN", "LOCAL GOVERNMENTS", "SUMMARY OF KEY FINDINGS \u2022 Under UgIFT, UGX.304,827,034 representing 39% was unutilised in the construction of a seed school. Inspection revealed that the contractor had not constructed hoarding, installed a signpost or done engraving. \u2022 Under URF, I noted that under routine manual maintenance, 99 Km road network at an estimated cost of UGX.13,891,000 was not achieved. Inspections revealed that the road was in a poor condition with over grown vegetation and potholes. Under routine mechanised maintenance, I noted an excess performance of 42 Km at UGX.77,230,000 and inspection revealed that drainage works had been damaged by the road. \u2022 Under YLP, I noted that for the financial years 2014/2015 and 2015/16 to date, the district had recovered only UGX.98,471,661 out of the expected total amount due (Interest Exclusive) of UGX.370,077,000, leaving an outstanding balance of UGX.271,605,339 (Interest Inclusive). Field inspections revealed that the projects lacked sign posts casting doubt on the projects existence and lacked basic financial management records relating to community procurement procedures, income and expenditure records. \u2022 Under capitation grant, I noted that the sampled school did not prepare financial statements for the grants received totaling to UGX.13,005,260. Additionally, a shortfall of UGX 3,274,740 was realized due to releases that are not dependent on verified enrolment. \u2022 I noted that DRDIP procurements amounting to UGX.1,601,970,699 were not reported in the quarterly reports submitted to the Authority."], "type": "table"}}, {"content": [["5", "Masindi MC **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX. 1.34Bn representing 12% under release. Further, the entity remained with unspent balance of UGX. 0.012Bn representing an absorption level of 99.9%. \u2022 I noted that some of council\u2019s key deliverables were not fully implemented during the year under review \u2022 A total of UGX.69,490,402 paid to various officers for implementation of activities remained unaccounted for while salary arrears worth UGX 51,664,937 were paid for without supporting documents. \u2022 Under UgIFT inspections revealed that works were incomplete at the health centre while funds meant for the construction of a seed secondary school were diverted to the construction of a staff house and 2 stance VIP latrine \u2022 Under URF, Inspections revealed poor side drainage, lack of sign posts and gullies on sampled roads. I also noted that no tarmac was done on some roads under mechanised maintenance. \u2022 Under YLP, I noted that from the financial year 2013/2014 to FY 2015/2016, the Municipality disbursed UGX.145,447,318 to YLGs out of which UGX.60,323,900 only had been recovered leaving an outstanding balance of UGX.85,123,418 (Interest Inclusive). Additionally, by 30th June, 2019, the Municipality had not transferred funds amounting to UGX 15,087,595 to the National Revolving Fund Account in BoU. Inspections revealed that some groups had disintegrated and delayed re-payment by the groups. \u2022 Under UWEP, I noted that from the financial year 2016/2017 to 2017/18, the Council had recovered only UGX 43,103,300 (31%) out of the expected total amount due of UGX. 99,407,340 (Interest Inclusive). In addition, I noted that by 30th June, 2019, the Municipality had not transferred funds amounting to UGX 28,666,800 to the National Revolving Fund Account in BoU. \u2022 I noted an overpayment of salary and pension to the tune of UGX 43,499,760 and UGX 27,567,245 respectively. \u2022 Under capitation grant, I noted under funding compared to the enrolment. I also noted that detailed budgets for capitation grant and financial statements are not prepared as required."], ["6", "Kakumiro DLG **Opinion** Unqualified", "\u2022 The entity remained with unspent balance of UGX. 0.391bn representing an absorption level of 97.8%. \u2022 I noted that UGX.11,202,000 was paid to settle domestic arrears which were not provided for in the approved budget for the year under review. \u2022 I noted issues in the implementation of the UGIFT health component. These included incomplete works on the maternity wards and medical waste pit, no provision for 4 stance VIP latrine and"]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 249, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["SN", "LOCAL GOVERNMENTS", "SUMMARY OF KEY FINDINGS \u2022 Under UgIFT, UGX.304,827,034 representing 39% was unutilised in the construction of a seed school. Inspection revealed that the contractor had not constructed hoarding, installed a signpost or done engraving. \u2022 Under URF, I noted that under routine manual maintenance, 99 Km road network at an estimated cost of UGX.13,891,000 was not achieved. Inspections revealed that the road was in a poor condition with over grown vegetation and potholes. Under routine mechanised maintenance, I noted an excess performance of 42 Km at UGX.77,230,000 and inspection revealed that drainage works had been damaged by the road. \u2022 Under YLP, I noted that for the financial years 2014/2015 and 2015/16 to date, the district had recovered only UGX.98,471,661 out of the expected total amount due (Interest Exclusive) of UGX.370,077,000, leaving an outstanding balance of UGX.271,605,339 (Interest Inclusive). Field inspections revealed that the projects lacked sign posts casting doubt on the projects existence and lacked basic financial management records relating to community procurement procedures, income and expenditure records. \u2022 Under capitation grant, I noted that the sampled school did not prepare financial statements for the grants received totaling to UGX.13,005,260. Additionally, a shortfall of UGX 3,274,740 was realized due to releases that are not dependent on verified enrolment. \u2022 I noted that DRDIP procurements amounting to UGX.1,601,970,699 were not reported in the quarterly reports submitted to the Authority."], "type": "table"}}, {"content": "236", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 249, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["7", "Kyankwanzi DLG **Opinion** Unqualified", "\u2022 The entity remained with unspent balance of UGX. 1.025 representing an absorption level of 95%. \u2022 Under UgIFT I noted incomplete works on the construction of a seed school at Banamywa Sub County while the site for construction of MuJunza health centre appeared abandoned. There were also delays in the progress of these projects. \u2022 Under URF I noted that section that had been rehabilitated had developed potholes while others lacked gravel. \u2022 Under YLP, I noted that the district had recovered only UGX UGX.132,943,350 (33%) of the total funds amounting to UGX UGX.400,583,000 that had been disbursed from the financial year 2013/2014 to 2015/16. Inspections revealed delays in the disbursement of funds and the groups lacked basic financial management records. \u2022 Under UWEP I noted that the entity did not realise any funding and consequently 34 women groups did not receive funding. \u2022 Under the capitation grant, I noted that the sampled school did not prepare financial reports for the grants received totalling to UGX.7,589,262. Additionally, the school was underfunded by UGX.1,740,738."], ["8", "Kibaale DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX. 4.39Bn representing 20.7% under release. Further, the entity remained with unspent balance of UGX. 0.066Bn representing an absorption level of 99.6%. \u2022 I noted that the activities under UgFIT were partially implemented. \u2022 Under UgIFT Inspections revealed that there were incomplete works \u2022 Under URF Inspections revealed that there was no provision for drainage channels, culverts and gullies and overgrown vegetation \u2022 Under Capitation grant, I noted that sampled school did not prepare financial statements for the year under review. \u2022 Under YLP I noted that for the financial year 2014/2015 and 2015/2016, the district had recovered UGX.102,084,400 out of the expected total amount due (Interest Exclusive) of UGX.222,236,500, leaving an outstanding balance of UGX.128,021,600. \u2022 Under UWEP, UGX. 114,242,418 disbursed to the women groups in financial years 2015/2016 and 2016/2017, only 62.7% was recovered by the close of financial year 2018/2019."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 250, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["SN", "LOCAL GOVERNMENTS", "SUMMARY OF KEY FINDINGS shower, and no provision of placenta pits. Under the education component, I noted incomplete works on all structures. \u2022 Under URF routine mechanised maintenance, I noted that poor state of the road with poor drainage which created gullies and overgrown vegetation making the road impassable. \u2022 Under capitation grant, I noted that the sampled school did not prepare financial statements for the year under review. \u2022 Under YLP, I noted that whereas groups were funded UGX.325,213,000 in FY 2016/17 and FY 2017/18 , only UGX.92,987,500 (28.6%) had been repaid by end of FY 2018/2019 leaving a balance of UGX.232,243,500 (71.4%) outstanding, while the district had not transferred UGX 14,282,160 to the National Revolving Fund Collection Account by the end of the financial year. Out of the two projects inspected, I noted that there were no book keeping records, no sign post, for ease of location of the projects. \u2022 Under UWEP I observed that out of UGX. 220,104,402(includes the 5% surcharge) disbursed to the women groups in financial years 2016/2017 and 2017/2018, only UGX. 86,318,700 (39.2%) was recovered by the close of financial year 2018/2019 leaving a balance of UGX. 133,785,702 (60.8%) outstanding. Inspection revealed that some had no records and there were no sign posts. \u2022 Under water for use and consumption, I noted a number of cases where the water facilities inspected were Non-functional."], "type": "table"}}, {"content": "237", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 250, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["10", "Hoima RRH **Opinion** Qualified", "\u2022 I noted that a negative adjustment of UGX 79,840,152 was made to the opening balances of 2018/2019 in the reconciliation of movement of cash on page 11, as well as an asset write off in the statement of financial position which was not supported. \u2022 There was a shortfall in releases amounting to UGX. 0.37Bn representing 3.95% under release. Further, the entity remained with unspent balance of UGX. 1.032Bn representing an absorption level of 89%. \u2022 Whereas some planned activities were fully completed, I noted some key outputs which were not fully achieved. \u2022 I noted that the entity received off budget financing worth UGX.671,005,085 which was not recognised as revenue for the year under review. \u2022 I noted that domestic arrears worth UGX 85,501,167 were rejected due to lack of supporting documents. \u2022 I noted that under budgeting for domestic arrears to a tune of UGX 195,080,167 \u2022 The hospital has an approved staff structure of 421 staff but only 338 are filled leaving a staffing gap of 83 positions (20%). \u2022 I noted that a consultant was appointed by the contracts committee after the date of contract award. \u2022 I noted that the hospital did not appoint contract managers for all the contracts awarded during the year. There were also a number of missing procurement documents on the various files."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 251, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["SN  9", "LOCAL GOVERNMENTS Kiboga DLG Opinion Unqualified", "SUMMARY OF KEY FINDINGS \u2022 There was a shortfall in releases amounting to UGX. 0.13Bn. Further, the entity remained with unspent balance of UGX. 1.282Bn representing an absorption level of 94%. \u2022 Under UgIFT, I noted that the district did not participate in stages of procurement of some contractors since this was done MoH. There was also no evidence of monitoring of progress of works by the Ministry of health or education. An inspection of the site for upgrading Bulaga health centre revealed that the site had been abandoned which resulted in delayed completion of works. I also noted a delay in the construction of Katoma seed school. \u2022 Under URF Inspection on selected roads revealed that there was poor contract management characterised by absence of headwalls, culverts, unprotected culverts, gullies and over grown bushes. \u2022 I noted some procurements worth UGX. 37,810,600 where the user departments specified the required brands on the procurement requisition form and the tender document contrary to PPDA regulations \u2022 Under YLP, I noted that whereas the groups which were funded in 2016/2017 FY were expected to have repaid a total amount of UGX. 171,300,000 (Interest exclusive) by close of the financial year 2018/2019, only UGX. 8,795,000 (5%) was repaid leaving a balance of UGX.162, 505,000 (95%) outstanding. Inspection revealed that a number of project lacked a signposts, and basic financial records \u2022 Under UWEP, I noted that there were no copies of receipts or BOU acknowledgements and Bank statements to support a total of UGX. 50,540,500 purportedly recovered from the women groups since 2016/17 financial year. \u2022 Under capitation grant, two sampled schools did not prepare financial statements for the grants received totalling to UGX. 10,654,684 as required. Inspections revealed that the school had insufficient facilities. \u2022 Under water for use and consumption, I noted that on average 35% of the water facilities were non-functional based on water situation analysis. \u2022 I noted that the water pump under Kambugu solar powered piped water system was installed in a road reserve, in addition to absence of a defined demarcated path to the tank \u2022 I noted a number of weaknesses in the implementation staff performance management initiatives which ranged from failure to submit performance agreement reports in time, absence of quarterly performance reviews, failure to develop performance improvement plans."], "type": "table"}}, {"content": "238", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 251, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["11", "Masindi DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX. 2.51Bn representing 8.9% under release. Further, the entity remained with unspent balance of UGX 0.107representing an absorption level of 99.6%. \u2022 I noted that some of the District\u2019s key outputs were not fully implemented. \u2022 Under NUSAF 3 I noted that the project was not audited by Internal Audit during the year. I also noted that the District didn\u2019t maintain an excel-based Project Tracker to capture and track project transactions \u2022 Under URF, I noted that there was an excess expenditure under mechanised maintenance. Inspections on sampled roads revealed that only 17km out of the planned 24 km were maintained, \u2022 Under YLP I noted that from for the financial year 2014/2015 to 2015/2016, the District had recovered only UGX.189,212,100 out of the expected total amount due. \u2022 Under capitation grant, based on the enrolment, the sampled school received only UGX. 16,401,455, during the year instead of UGX 20,880,000 leading to a shortfall of UGX. 4,478,545. These schools did not prepare financial statements as required."], ["12", "Kikuube DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX. 0.39Bn representing 1.97% under release. Further, the entity remained with unspent balance of UGX. 2.987Bn representing an absorption level of 85%. \u2022 I noted that out of the 13 projects inspected, eight (8) were fully achieved, while five (5) were partially implemented. \u2022 I noted that there was a no evidence of council approval of a revision on the budget. \u2022 Under UgIFT Inspections revealed that the works were not complete on some of the projects undertaken. \u2022 Under YLP I noted that the sampled groups lacked signposts and basic financial management records. The groups also did not have copies of the financing agreement to guide them on repayment. \u2022 Under capitation grant I noted that the sampled school did not prepare financial statements for the grants received totalling to UGX.15, 068,001. I also noted a funding shortfall of UGX 8,001,259 based on the current enrolment. \u2022 I noted that the procurement process for contracts worth UGX.660,733,841 were not undertaken in strict compliance with the PPDA laws."], ["13", "Hoima MC **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX. 0.52Bn representing 2.27% under lease. Further, the entity overspent by UGX.10.317Bn representing an absorption level of 146%. \u2022 I noted that out of the planned 10 projects, 6 were fully implemented, 3 were partially implemented and 1 not implemented. \u2022 Under UgIFT, I noted that the Municipality failed to spend UGX.283,840,290 and this was returned to the UCF. Inspections revealed that the project implementation was not only behind schedule but lacked signposts, and works were incomplete. \u2022 Under URF, I noted through inspections that sections of some roads were, impassable and some works were not yet complete. \u2022 Under YLP, I noted that whereas the groups funded in 2016/2017 FY were expected to have repaid a total of UGX. 113,087,612 (Interest exclusive) by close of the financial year 2018/2019, only UGX. 40,553,000 (36%) was repaid leaving a balance of UGX. 76,161,343 (64%) outstanding. Inspection also revealed that the sampled groups did not maintain basic financial management records, no register of assets and one group had changed business from what it had originally applied for. \u2022 Under UWEP, I noted the municipality neither maintained copies of receipts nor BOU acknowledgements and Bank statements to reconcile with a total of UGX. 1,000,000 purportedly recovered from the women groups since 2016/17 financial year. Inspections revealed that there"]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 252, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["SN", "LOCAL GOVERNMENTS", "SUMMARY OF KEY FINDINGS \u2022 I noted that there was a delay in the contract for the construction of the perimeter fence of the hospital."], "type": "table"}}, {"content": [["11", "Masindi DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX. 2.51Bn representing 8.9% under release. Further, the entity remained with unspent balance of UGX 0.107representing an absorption level of 99.6%. \u2022 I noted that some of the District\u2019s key outputs were not fully implemented. \u2022 Under NUSAF 3 I noted that the project was not audited by Internal Audit during the year. I also noted that the District didn\u2019t maintain an excel-based Project Tracker to capture and track project transactions \u2022 Under URF, I noted that there was an excess expenditure under mechanised maintenance. Inspections on sampled roads revealed that only 17km out of the planned 24 km were maintained, \u2022 Under YLP I noted that from for the financial year 2014/2015 to 2015/2016, the District had recovered only UGX.189,212,100 out of the expected total amount due. \u2022 Under capitation grant, based on the enrolment, the sampled school received only UGX. 16,401,455, during the year instead of UGX 20,880,000 leading to a shortfall of UGX. 4,478,545. These schools did not prepare financial statements as required."], ["12", "Kikuube DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX. 0.39Bn representing 1.97% under release. Further, the entity remained with unspent balance of UGX. 2.987Bn representing an absorption level of 85%. \u2022 I noted that out of the 13 projects inspected, eight (8) were fully achieved, while five (5) were partially implemented. \u2022 I noted that there was a no evidence of council approval of a revision on the budget. \u2022 Under UgIFT Inspections revealed that the works were not complete on some of the projects undertaken. \u2022 Under YLP I noted that the sampled groups lacked signposts and basic financial management records. The groups also did not have copies of the financing agreement to guide them on repayment. \u2022 Under capitation grant I noted that the sampled school did not prepare financial statements for the grants received totalling to UGX.15, 068,001. I also noted a funding shortfall of UGX 8,001,259 based on the current enrolment. \u2022 I noted that the procurement process for contracts worth UGX.660,733,841 were not undertaken in strict compliance with the PPDA laws."], ["13", "Hoima MC **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX. 0.52Bn representing 2.27% under lease. Further, the entity overspent by UGX.10.317Bn representing an absorption level of 146%. \u2022 I noted that out of the planned 10 projects, 6 were fully implemented, 3 were partially implemented and 1 not implemented. \u2022 Under UgIFT, I noted that the Municipality failed to spend UGX.283,840,290 and this was returned to the UCF. Inspections revealed that the project implementation was not only behind schedule but lacked signposts, and works were incomplete. \u2022 Under URF, I noted through inspections that sections of some roads were, impassable and some works were not yet complete. \u2022 Under YLP, I noted that whereas the groups funded in 2016/2017 FY were expected to have repaid a total of UGX. 113,087,612 (Interest exclusive) by close of the financial year 2018/2019, only UGX. 40,553,000 (36%) was repaid leaving a balance of UGX. 76,161,343 (64%) outstanding. Inspection also revealed that the sampled groups did not maintain basic financial management records, no register of assets and one group had changed business from what it had originally applied for. \u2022 Under UWEP, I noted the municipality neither maintained copies of receipts nor BOU acknowledgements and Bank statements to reconcile with a total of UGX. 1,000,000 purportedly recovered from the women groups since 2016/17 financial year. Inspections revealed that there"]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 252, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["SN", "LOCAL GOVERNMENTS", "SUMMARY OF KEY FINDINGS \u2022 I noted that there was a delay in the contract for the construction of the perimeter fence of the hospital."], "type": "table"}}, {"content": "239", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 252, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["", "**JINJA BRANCH**", ""], ["1", "Bugiri DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.2.08bn representing 6%, further analysis revealed that UGX.0.255bn remained unspent by the entity representing an absorption level of 99%. \u2022 Out of the 9 District\u2019s major outputs, 8 (89%) were implemented and 1 (11%) output was partially implemented. \u2022 UGX. 0.045bn was claimed to have been stolen from an Accounts Assistant/Cahier. \u2022 I noted eight (8) pending court cases against the District being handled by the solicitor general based in Jinja. \u2022 Under URF, the District unrealistically budgeted for undertaking works on 72km of roads using UGX.0.655bn instead of UGX.1.944bn as per the URF guidelines. Consequently, I noted that only 15km out of 24km of Naluwerere-Muwayo road was shaped and only 1 culvert had been installed instead of the 9. Further, only swamp filling had been done for a distance of 0.5km out of the planned 6.2km Bufunda-Kayago. \u2022 Under UgIFT, I noted delayed execution on Iwemba Seed Secondary School construction works despite receipt of UGX 1.1bn during the F/Y 2018/19 for the programme. \u2022 Under YLP, I noted a recovery rate of only 21% of the funds disbursed in FY 2013/2014 to 2017/2018. Besides one youth groups received project funds which were shared amongst group members and another group of 12 members had remained with only seven active members without any financial records in place. \u2022 Under UWEP fund, I noted that from the financial year 2016/2017 to date, the district had not recovered a balance of UGX. 0.63bn (64%) out of UGX 0.098bn due for recovery."], ["2", "Jinja RRH **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX. 0.255bn representing 2% of budgeted revenue. Further analysis revealed that UGX.1.324bn remained unspent representing 89% absorption rate. \u2022 Funds to the tune of UGX.0.299bn were diverted from the activities on which they were budgeted and spent on other activities without obtaining the necessary approvals. \u2022 UGX. 0.134bn local revenue funds were spent at source without approval after withdrawal from the Collection Account. \u2022 The entity failed to remit local service tax amounting to UGX.19,629,630. Analysis revealed that these funds were spent and not accounted for. \u2022 The Hospital lacked land titles for the land it occupies on Nile Avenue, Nalufenya Road Gabula Land and Nile Garden. \u2022 Out of 421 approved positions on the staff structure, 69 (16%) posts were vacant and these included key positions of senior consultant surgery; consultant pathology, consultant physician, consultant psychiatry, consultant anaesthesiologist, public clinical officer, laboratory technologist, senior principal nursing officer, and dental technologist. \u2022 The entity failed to remit tax in form of PAYE deducted from staff amounting to UGX. 20,446,280. \u2022 I noted that the entity undertook unplanned procurements contracts worth UGX.0.115bn which were not in the consolidated annual procurement work plan. \u2022 Shortcomings were noted in the implementation of the provisions in the circular standing instructions on staff performance management. The gaps identified include non-completion of Performance Agreements, no quarterly reviews undertaken, failure to fill annual performance plans, lack of mechanism to monitor staff attendance and failure to undertake administrative investigations."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 253, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["SN", "LOCAL GOVERNMENTS", "SUMMARY OF KEY FINDINGS was no signpost for the groups and no evidence was availed for remittance of collections to the revolving fund account. \u2022 Under capitation grant, I noted that the two schools sampled did not prepare financial statements for the grants received totalling to UGX.20,902,548 \u2022 I noted that procurements worth UGX. 95,549,911 were awarded to non-compliant firms contrary to the PPDA regulatory framework."], "type": "table"}}, {"content": [["", "**JINJA BRANCH**", ""], ["1", "Bugiri DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.2.08bn representing 6%, further analysis revealed that UGX.0.255bn remained unspent by the entity representing an absorption level of 99%. \u2022 Out of the 9 District\u2019s major outputs, 8 (89%) were implemented and 1 (11%) output was partially implemented. \u2022 UGX. 0.045bn was claimed to have been stolen from an Accounts Assistant/Cahier. \u2022 I noted eight (8) pending court cases against the District being handled by the solicitor general based in Jinja. \u2022 Under URF, the District unrealistically budgeted for undertaking works on 72km of roads using UGX.0.655bn instead of UGX.1.944bn as per the URF guidelines. Consequently, I noted that only 15km out of 24km of Naluwerere-Muwayo road was shaped and only 1 culvert had been installed instead of the 9. Further, only swamp filling had been done for a distance of 0.5km out of the planned 6.2km Bufunda-Kayago. \u2022 Under UgIFT, I noted delayed execution on Iwemba Seed Secondary School construction works despite receipt of UGX 1.1bn during the F/Y 2018/19 for the programme. \u2022 Under YLP, I noted a recovery rate of only 21% of the funds disbursed in FY 2013/2014 to 2017/2018. Besides one youth groups received project funds which were shared amongst group members and another group of 12 members had remained with only seven active members without any financial records in place. \u2022 Under UWEP fund, I noted that from the financial year 2016/2017 to date, the district had not recovered a balance of UGX. 0.63bn (64%) out of UGX 0.098bn due for recovery."], ["2", "Jinja RRH **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX. 0.255bn representing 2% of budgeted revenue. Further analysis revealed that UGX.1.324bn remained unspent representing 89% absorption rate. \u2022 Funds to the tune of UGX.0.299bn were diverted from the activities on which they were budgeted and spent on other activities without obtaining the necessary approvals. \u2022 UGX. 0.134bn local revenue funds were spent at source without approval after withdrawal from the Collection Account. \u2022 The entity failed to remit local service tax amounting to UGX.19,629,630. Analysis revealed that these funds were spent and not accounted for. \u2022 The Hospital lacked land titles for the land it occupies on Nile Avenue, Nalufenya Road Gabula Land and Nile Garden. \u2022 Out of 421 approved positions on the staff structure, 69 (16%) posts were vacant and these included key positions of senior consultant surgery; consultant pathology, consultant physician, consultant psychiatry, consultant anaesthesiologist, public clinical officer, laboratory technologist, senior principal nursing officer, and dental technologist. \u2022 The entity failed to remit tax in form of PAYE deducted from staff amounting to UGX. 20,446,280. \u2022 I noted that the entity undertook unplanned procurements contracts worth UGX.0.115bn which were not in the consolidated annual procurement work plan. \u2022 Shortcomings were noted in the implementation of the provisions in the circular standing instructions on staff performance management. The gaps identified include non-completion of Performance Agreements, no quarterly reviews undertaken, failure to fill annual performance plans, lack of mechanism to monitor staff attendance and failure to undertake administrative investigations."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 253, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["SN", "LOCAL GOVERNMENTS", "SUMMARY OF KEY FINDINGS was no signpost for the groups and no evidence was availed for remittance of collections to the revolving fund account. \u2022 Under capitation grant, I noted that the two schools sampled did not prepare financial statements for the grants received totalling to UGX.20,902,548 \u2022 I noted that procurements worth UGX. 95,549,911 were awarded to non-compliant firms contrary to the PPDA regulatory framework."], "type": "table"}}, {"content": "240", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 253, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["4", "Kamuli DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX. 3.648bn representing (0.9%). \u2022 Out of the 15 major District\u2019s outputs, 12 outputs representing 80% were fully implemented, 2 outputs representing 7% were partially implemented and one output representing 3% was not implemented. \u2022 Accumulated verified payables of UGX. 1.514bn remained outstanding at year end. \u2022 Out of 4,147 approved staff positions in the structure, 1,038 (25%) posts were vacant and the District Engineer had been holding the position on assignment of duty for 10 years. \u2022 I noted that the terms of the four members of the LGPAC had expired on 8th September, 2018 and no replacement had been made 14 months after the expiry. \u2022 The District had a shortage of 144kms worked on from the planned 645km of roads in financial 2017/2018 in the different categories at a cost of UGX. 0.906 leading to an under performance of 22%. \u2022 I noted over payment of UGX 1,078,406 in salaries. \u2022 Under UgIFT, The District received UGX. 1.601bn but only utilised 42% for the construction of Kitayunjwa Seed School and Kagumba Health centre. \u2022 Under URF, I noted that the roads committee only sat twice in the year under review out of the required 4 sittings in a year. \u2022 Under YLP, the district failed to recover an outstanding balance of UGX. 0.726bn and out of the 188 groups that were funded, 22 (12%) groups that had received UGX.0.129bn over the years, had collapsed. \u2022 Under UWEP, the District failed to recover UGX. 37,266,400 (62%) of the amounts due. \u2022 Under the Implementation of Water for Production and Use, I noted that 2 (20%) of the valley dams were non-functional. I further noted that although most of the valley tanks were functional, they were heavily silted, bushy, had either dilapidated or had no water troughs and other accessories. \u2022 Under UPE Capitation Grant, I noted that UGX 1.004bn was required for 100,455 pupils at a rate of UGX 10,000 per pupil, however, only UGX. 0.802bn was budgeted and disbursed resulting in a variance of UGX. 0.202bn. \u2022 I noted Shortage of Medical equipment at Kamuli Hospital."], ["5", "Iganga DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.0.259bn representing (7%), Further analysis revealed that UGX.1.674bn remained unspent by the entity representing an absorption level of 95%."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 254, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["SN  3", "LOCAL GOVERNMENTS Bugiri MC Opinion Unqualified", "SUMMARY OF KEY FINDINGS \u2022 There was a shortfall in releases amounting to UGX. 0.435bn representing 8%. Further analysis revealed that UGX. 0.073bn remained unspent by the entity representing an absorption level of 99%. \u2022 The Municipal Council has accumulated payables amounting to UGX. 0.686bn. \u2022 Under UgIFT implementation; Council partially implemented the upgrade of Bugiri Town Council Health Centre II to HC III due to un-utilised funds worth UGX.68,470,000. \u2022 Under the implementation of URF; I noted challenges of high volume of water coupled with poor garbage disposal leading to silting of drainage channels, inadequate funds, Staffing constraints in the department leading and roads slipping out of maintenance realm thus need for rehabilitation. \u2022 Under YLP implementation; I noted that from the financial year 2016/2017 to date, Council had recovered only UGX.0.149bn leaving an unrecovered amount of UGX. 0.110bn representing (74.2%). \u2022 Under UWEP; I noted that from the financial year 2016/2017 to date, the Municipal Council had recovered UGX39,863,100 (52.5%) out of the expected total amount due of UGX. 75,968,667 leaving an unrecovered balance amount of UGX 36,105,567 (47.5%)."], "type": "table"}}, {"content": "241", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 254, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["6", "Jinja DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.0.303bn representing 0.7%. Further analysis revealed that UGX.2.427bn remained unspent by the entity representing an absorption level of 94.4 %. \u2022 Out of the 9 major District\u2019s outputs, 7 outputs representing 78% were fully implemented and 2 outputs representing 22% outputs were partially implemented. \u2022 Accumulated verified payables amounting to UGX.1.140bn remained unsettled at year end. \u2022 Out of 2,599 posts in staff structure, 299(12%) posts were vacant and officers in key positions including that of District Engineer were all in acting positions. \u2022 I noted unrealistic budgeting to undertake periodic maintenance of six (06) roads measuring 30.6 km at UGX. 0.135bn instead of UGX. 0.826bn. I also noted late release of 1st quarter funds in the month of September resulting to delayed implementation. \u2022 Under UgIFT, there was delayed procurement of the contractor for the construction of the School leading to delays in start of works for 1 month and failure to absorb all available funds worth UGX. 0.800bn. \u2022 Under the YLP, the District failed to recover funds amounting to UGX. 0.968bn representing (84%) of amount due. Further, two sampled groups of Butiki Matala piggery and Kagoma central piggery were no longer existent. \u2022 Under UWEP, the District failed to recover funds amounting to UGX. 0.174bn representing (63%). \u2022 Under water for production and use, the entity planned to construct 12 boreholes but only managed to construct 10."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 255, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["SN", "LOCAL GOVERNMENTS", "SUMMARY OF KEY FINDINGS \u2022 The District fully implemented all planned outputs save for the renovation of adult learning centre. Out of the 6 learning centres planned, only one was renovated and one partial construction. \u2022 I noted that out of 6 sampled recommendations on District projects by the monitoring and supervision teams, 3 (50%) recommendations aimed at achieving the planned outputs were not implemented, 2 (33%) were partially implemented and only one was fully implemented. \u2022 Accumulated receivables to a tune of UGX.1.82bn were not collected at year end. \u2022 The entity has five (5) pending and on-going court cases with contingent awards against it totalling to a tune of UGX 3.832bn. \u2022 Out of the 2,357 approved staff structure, 243 (10%) posts were vacant and officers in key positions including that of District Engineer were all in acting positions. \u2022 The entity did not dispose of assets including old pick-ups, motor cycles among others as per the Board of Survey recommendation of 2017. \u2022 I noted that out of 1,525 teachers in the 99 primary schools, only 154 (10%) were accommodated at the schools leaving 1,371 (90%) teachers without accommodation. \u2022 I noted lack of wards in all 5 health-centre III\u2019s sampled. I also noted that out of the 511 staff in the various Health Centres across the district only 15% staff members were accommodated leaving 85% staff without accommodation. \u2022 Under the UgIFT implementation, I noted delayed construction of Nawanyingi Seed Secondary which was still at the foundation level despite receipt of UGX. 0.535bn during the year for the construction. \u2022 Under YLP implementation, I noted low recovery of funds at 19% with an outstanding balance of UGX. 223,204,300. \u2022 Under UWEP implementation, I noted low recovery rate of 9% funds disbursed out of the expected UGX. 0.237bn. \u2022 Under Implementation of Water for Production and Use, I noted that 22 (3%) out of 763 waters sources were not functional due to lack of proper maintenance."], "type": "table"}}, {"content": "242", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 255, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["8", "Bugweri DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.0.589bn representing 3%, Further analysis revealed that UGX.2.159bn remained unspent by the entity representing an absorption level of 86%. \u2022 I noted that out of the 11 major District outputs, 8 (62%) were fully implemented and 3 (38%) outputs were partially implemented. \u2022 The entity has accumulated payables to a tune of UGX.1.133bn. \u2022 Under UgIFT, there was delayed execution for the construction of Naigomba Seed Secondary School and the upgrade of Nawangisa Health Centre II to a Health Centre III due to failure to utilise available funds. \u2022 Under the URF, there were shoddy works i.e. lack of water galleys, no offshoots, over grown grass and developed water gulley on road sections. I also noted that the district road committee only met twice out of the required 4 sittings in a year and entity lacks proper road equipment. \u2022 Under YLP the entity failed to recover funds amounting to UGX.0.190bn representing 74% of total funds due for recovery. \u2022 Under UWEP, the entity has a low recovery rate of 5% out of the expected total amount due of UGX. 46,907,000. \u2022 Under Implementation of Water for Production and Use, 30 water sources representing (6.9%) out of 434 were not functional due to lack of proper maintenance. \u2022 The District did not have land titles for most of its land including schools and health centres. I further noted that 9 acres of the district land was given to Kaziba family when the District was still under Iganga district local government. \u2022 I noted that natural resources especially wetland and forests in the District had been encroached on by un-licensed people who are carrying out illegal activities. \u2022 I noted shortcomings in the performance of the District physical planning committee i.e. the Accounting Officer appointed ten (10) members instead of the required thirteen (13) members, three (3) of the ten (10) members appointed were not meant to be part of the committee, with the exception of holding one meeting, Committee did not perform the rest of its functions and the activities of the committee were neither budgeted for nor funded."], ["9", "Kaliro DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.2.166bn representing 8% of budgeted revenue. Further analysis revealed that UGX.0.319bn remained unspent representing 98.7% absorption rate."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 256, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["SN  7", "LOCAL GOVERNMENTS Mayuge DLG Opinion Unqualified", "SUMMARY OF KEY FINDINGS \u2022 There was a shortfall in releases amounting to UGX.2.664bn representing 0.7%, Further analysis revealed that UGX.2.002bn remained unspent by the entity representing an absorption level of 94%. \u2022 I noted that out of the 7 major District outputs, 5 outputs representing 71% were implemented and 2 outputs representing 29% were partially implemented. \u2022 Accumulated payables amounting to UGX. 1.088bn remained outstanding at year end. \u2022 out of 473 positions in the staff structure, 88 positions were vacant and these included key positions like Principal Human resource, Principal Finance Officer, Senior Planner, Civil Engineering (Water), and primary Head teachers. \u2022 Under UgIFT, there was delayed implementation for upgrading of Jagusi and Busaala Health Centre II\u2019s and construction of Mpungwe seed school due to underutilization of funds received \u2022 Under URF, there was delayed release of funds with warrants always coming in the second month of every quarter and the District lacked the vital equipment like excavator, low bed, bull dozer and back hoe. \u2022 Under YLP, the entity failed to recover funds to a tune of UGX.0.9bn representing 75% of advanced funds. Out of 236 groups funded, 68 groups that had received UGX 0.528bn over the years had collapsed. \u2022 Under UWEP, 11 approved groups were not funded in FY 2018/19 due to shortfall in funding."], "type": "table"}}, {"content": "243", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 256, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["10", "Jinja MC **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX. 0.0096bn representing (0.05%), Further analysis revealed that UGX. 0.599bn remained unspent by the entity representing an absorption level of (94%). \u2022 Out of the 13 major council outputs, 11 outputs representing 85% were fully implemented and 2 outputs representing 15% were partially implemented. \u2022 Expenditure totalling UGX. 0.306bn was mischarged through wrong coding.  \u2022 Accumulated payables amounting to UGX. 1.198bn remained outstanding at year end. \u2022 Under UgIFT, the entity delayed the upgrading of Kimaka H/C II at a cost of UGX. 0.5bn despite availability of all funds. \u2022 There were delays at evaluation stage in three (3) procurements i.e. Construction of a 4 classroom block, Completion of a 2- science room block and electrical installation works, and Supply and delivery of approved road lime. \u2022 Under YLP, the District failed to recover funds due amounting to UGX. 182,944,017 (71%)."], ["11", "Namayingo DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.0.636bn representing 9% of budgeted revenue. Further analysis revealed that UGX. 0.376bn remained unspent representing 98% absorption rate. \u2022 I noted that out of 11 outputs, 7 outputs representing 64% were fully implemented and 4 (36%) were partially implemented. \u2022 UGX.1.204bn accumulated payables remained outstanding at year end. \u2022 Out of 1,626 approved positions in the staff structure, 267 posts were vacant representing 16% and key positions including that of District Engineer were all in acting capacity. \u2022 Under UgIFT, I noted delayed execution of upgrading of Lolwe Health Centre II whose works were still on-going three (3) months after the expected completion date. \u2022 Under URF implementation, I noted poor state of roads worked on during the period. \u2022 Under YLP, I sampled two groups and both projects were abandoned and were no longer in existence. \u2022 Under UWEP, I inspected two projects and noted that one Group had repaid only UGX.600,000 out of UGX.4,770,000 and the project was failing. Another Group Project had repaid only UGX.2,341,100 out of UGX. 5,000,000 for Goat rearing and were faced with theft threats. \u2022 Under the Implementation of Water for Production and Use, I noted that 125 (16%) water sources out of 784 were not functional due to lack of proper maintenance."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 257, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["SN", "LOCAL GOVERNMENTS", "SUMMARY OF KEY FINDINGS \u2022 I noted that out of the 8 major District outputs, 7 outputs representing 87.5% were fully implemented and 1 (12.5%) output was partially implemented. \u2022 Payables amounting to UGX1.264bn were outstanding at year end.  \u2022 Out of 1,609 approved positions in the staff structure, 257 (16%) posts were vacant. \u2022 Under UgIFT, I noted delayed upgrading of Budomero and Nawampiti Health Centre IIs as evidenced by the incomplete on inspection one month beyond the expected completion date. \u2022 Under URF, I noted deteriorating state of roads worked on during the period i.e. broken down installed culvert line, installed culvert lines without headwalls, dumped culverts of 900mm lying idle in the bush, narrow carriage way with bushy shoulders and poor road compaction. \u2022 Under the implementation of YLP, the entity failed to recover funds amounting to UGX. 0.353bn representing (80%) of total amount due for recovery. I noted that two projects had been abandoned in the first year of operation were no longer in existence. \u2022 Under UWEP, I noted that the entity failed to recover funds amounting to UGX. 65,174,250 representing (76%) of total amount due for recovery. \u2022 Under Water for Production and Use, Out of the 603 villages in the District, only 466 (77%) had access to safe drinking water leaving 137 (23%) without access to deep boreholes with hand pumps, Shallow wells with pumps, protected springs and rain water tanks."], "type": "table"}}, {"content": "244", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 257, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["13", "Namutumba DLG **Opinion** Unqualified", "\u2022 I noted that out of the 8 major District outputs, 4 outputs representing 50% were fully implemented while the other 4 (50%) outputs were partially implemented. \u2022 The entity has (08) pending and on-going court cases, some dating as far back as 2012. \u2022 Under UgIFT, there was delayed execution for upgrading of Kagulu Health Centre II and construction of Namutumba seed school. The works were just on walling for both projects due to underutilisation of funds. \u2022 Under YLP, the entity failed to recover funds amounting to UGX. 0.389bn representing 96.5% of the amount due for recovery from the groups. Out of the 205 groups funded 110 54% groups that had received UGX. 0.595bn over the years collapsed and are no longer existent. \u2022 Under Implementation Of Water For Production I noted that out of 676 water infrastructure in the district, 131(19%) water points were not functional due to lack of proper maintenance."], ["14", "Buyende DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.0.539bn representing (3%), Further analysis revealed that UGX.0.82bn remained unspent by the entity representing an absorption level of 96%. \u2022 Out of the 7 District\u2019s major outputs, 2 outputs representing (29%) were fully implemented, 2 outputs representing (29%) were partially implemented and 3 representing (43%) were not implemented at all. \u2022 The entity\u2019s receivables increased by 88% from UGX.1.041bn to UGX.1.955bn by end of June 2019. \u2022 The entity failed to collect UGX.0.027bn of tendered revenue sources from contractors resulting into a (30%) shortfall. \u2022 Out of 629 staff posts of the structure, 277 (44%) were vacant and key positions including the Deputy Chief Administrative Officer and District Engineer were all in acting positions. \u2022 65 pieces land under the District jurisdiction in Sub Counties and health centres did not have titles and all the land where educational institutions are located was not included in the register of land. Further, I noted that management did not dispose off motorcycles recommended for disposal by Board of Survey in the previous year. \u2022 Under UPE performance ,I noted that 38% of 12,626 pupils that sat for PLE in the previous three years (2016,2017 & 2018) did not qualify to join either secondary or tertiary institutions. Inspections at Butaaswa and Kigweri Primary Schools revealed inadequate desk pupil ratio, latrine Pupil ratio and 18 teachers without accommodation. \u2022 Under UgIFT, UGX 0.019bn was erroneously paid to a VAT exempted contractor as VAT and the works execution had delayed. \u2022 Under URF, the entity did not maintain sideways on Bulondo\u2013Mango road measuring 20.5 km and the roads and works committee only sat twice in the year under review out of the required 4 sittings."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 258, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["SN 12", "LOCAL GOVERNMENTS Luuka DLG Opinion Unqualified", "SUMMARY OF KEY FINDINGS \u2022 I noted that out of the sampled 8 major Council outputs, 7 (87%) were fully implemented and 1 (13%) output was partially implemented. \u2022 The District had accumulated payables of UGX.0.974bn.  \u2022 Out of 1,542 approved position in staff structure, 364 (24%) posts were vacant. \u2022 Under UgIFT, I noted incomplete execution of works for the upgrade of Bukedi Health Centre II to Health Centre III despite extension of three months. \u2022 Under URF Implementation; I noted that the works undertaken under routine manual maintenance and routine mechanised maintenance were shoddy with road deterioration and developed potholes. \u2022 Under YLP; I noted that the entity failed to recover funds amounting to UGX.0.344bn representing (88%) of amount due for recovery. I noted that one group received UGX.7,000,000 and only UGX.150,000 had been recovered but the project was no longer in existence. \u2022 Under UWEP; I noted low recovery rate of funds disbursed with an outstanding amount of UGX.0.124bn."], "type": "table"}}, {"content": [["13", "Namutumba DLG **Opinion** Unqualified", "\u2022 I noted that out of the 8 major District outputs, 4 outputs representing 50% were fully implemented while the other 4 (50%) outputs were partially implemented. \u2022 The entity has (08) pending and on-going court cases, some dating as far back as 2012. \u2022 Under UgIFT, there was delayed execution for upgrading of Kagulu Health Centre II and construction of Namutumba seed school. The works were just on walling for both projects due to underutilisation of funds. \u2022 Under YLP, the entity failed to recover funds amounting to UGX. 0.389bn representing 96.5% of the amount due for recovery from the groups. Out of the 205 groups funded 110 54% groups that had received UGX. 0.595bn over the years collapsed and are no longer existent. \u2022 Under Implementation Of Water For Production I noted that out of 676 water infrastructure in the district, 131(19%) water points were not functional due to lack of proper maintenance."], ["14", "Buyende DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.0.539bn representing (3%), Further analysis revealed that UGX.0.82bn remained unspent by the entity representing an absorption level of 96%. \u2022 Out of the 7 District\u2019s major outputs, 2 outputs representing (29%) were fully implemented, 2 outputs representing (29%) were partially implemented and 3 representing (43%) were not implemented at all. \u2022 The entity\u2019s receivables increased by 88% from UGX.1.041bn to UGX.1.955bn by end of June 2019. \u2022 The entity failed to collect UGX.0.027bn of tendered revenue sources from contractors resulting into a (30%) shortfall. \u2022 Out of 629 staff posts of the structure, 277 (44%) were vacant and key positions including the Deputy Chief Administrative Officer and District Engineer were all in acting positions. \u2022 65 pieces land under the District jurisdiction in Sub Counties and health centres did not have titles and all the land where educational institutions are located was not included in the register of land. Further, I noted that management did not dispose off motorcycles recommended for disposal by Board of Survey in the previous year. \u2022 Under UPE performance ,I noted that 38% of 12,626 pupils that sat for PLE in the previous three years (2016,2017 & 2018) did not qualify to join either secondary or tertiary institutions. Inspections at Butaaswa and Kigweri Primary Schools revealed inadequate desk pupil ratio, latrine Pupil ratio and 18 teachers without accommodation. \u2022 Under UgIFT, UGX 0.019bn was erroneously paid to a VAT exempted contractor as VAT and the works execution had delayed. \u2022 Under URF, the entity did not maintain sideways on Bulondo\u2013Mango road measuring 20.5 km and the roads and works committee only sat twice in the year under review out of the required 4 sittings."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 258, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["SN 12", "LOCAL GOVERNMENTS Luuka DLG Opinion Unqualified", "SUMMARY OF KEY FINDINGS \u2022 I noted that out of the sampled 8 major Council outputs, 7 (87%) were fully implemented and 1 (13%) output was partially implemented. \u2022 The District had accumulated payables of UGX.0.974bn.  \u2022 Out of 1,542 approved position in staff structure, 364 (24%) posts were vacant. \u2022 Under UgIFT, I noted incomplete execution of works for the upgrade of Bukedi Health Centre II to Health Centre III despite extension of three months. \u2022 Under URF Implementation; I noted that the works undertaken under routine manual maintenance and routine mechanised maintenance were shoddy with road deterioration and developed potholes. \u2022 Under YLP; I noted that the entity failed to recover funds amounting to UGX.0.344bn representing (88%) of amount due for recovery. I noted that one group received UGX.7,000,000 and only UGX.150,000 had been recovered but the project was no longer in existence. \u2022 Under UWEP; I noted low recovery rate of funds disbursed with an outstanding amount of UGX.0.124bn."], "type": "table"}}, {"content": "245", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 258, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["15", "Iganga MC **Opinion** Unqualified", "\u2022 UGX. 0.473bn remained unspent by the entity representing an absorption level of 93%. \u2022 I noted that out of the 23 major Council outputs, 16 (70%) were implemented and 7 (30%) outputs were not implemented. \u2022 The Municipal Council had accumulated verified payables amounting to UGX.0.713bn. \u2022 Out of 131 approved positions in the staff structure, 42 (32%) posts were vacant and as a result key positions including that of Municipal Council Engineer were in acting positions. \u2022 Under URF, I noted that the entity has deteriorating roads including those worked on during the period due to poor drainage and broken culvert lines. \u2022 Under the YLP, I noted that from the financial year 2014/2015 to 2015/16, Council had recovered only UGX. 21,262,666 (15%) out of the expected total amount due (Interest Exclusive) of UGX.0.141bn leaving an outstanding balance of UGX.0.130bn (85%). I noted that one group disintegrated and the project was no longer in existence."], ["16", "Njeru MC **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.3.018bn representing 22.4% of budgeted revenue. \u2022 I noted that out of the 8 major Council outputs, 7 representing 87.5% were implemented and 01 (12.5%) output road works was partially implemented. \u2022 Under URF, there was poor workmanship as with poor drainage systems, potholes and large gullies. I also noted that the road committee only sat two times in the year under review out of the required 4 sittings. \u2022 Under YLP, I noted failure to recover UGX.0.140bn representing 49% of disbursed funds to groups."], ["17", "Lugazi MC **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.3.648bn representing (9%) of budgeted revenue. Further analysis revealed that UGX.0.929bn remained unspent representing a (90.3%) absorption rate. \u2022 Out of the 20 major Municipal Council outputs, I sampled 6 outputs including URF and noted that 4 (67%) were fully implemented while 2 (33%) outputs were partially implemented. \u2022 I noted that the Municipal Council had failed to collect funds amounting to UGX.0.933bn in revenue. \u2022 UGX. 0.410bn accumulated payables remained outstanding at year end. \u2022 Out of 235 approved positions in the staff structure, 84 (56%) posts were vacant and these included key positions such as Deputy Town Clerk, Internal Auditors, Municipal Engineer, Senior Environment Officer, Senior Physical Unit, Principal Community Development Officer and Medical Officer of Health services. \u2022 Out of 340 teachers in the 44 primary schools, 274 (81%) teachers did not have accommodation."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 259, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["SN", "LOCAL GOVERNMENTS", "SUMMARY OF KEY FINDINGS \u2022 Under YLP, the District failed to recover 78% of funds from groups amounting to UGX.0.436bn representing. Inspection of two sampled groups revealed lack of group file and change of project without approval from the District Technical Committee. \u2022 Under UWEP, the District failed to recover 94% of funds worth UGX. 0.384bn from the expected UGX. 0.378bn (interest exclusive). \u2022 Under Water for Production, I noted that 153 water sources/water points out of the 1,275 in different parts of the district were non-functional representing 2.6% and the water coverage was inadequate at 44.3%. \u2022 I noted inconsistences in IPPS and IFMS payment files with over payments of UGX. 0.049bn and underpayment of UGX. 0.197bn. I also noted under and over remittance of statutory and other deductions including local service tax, PAYE, Uganda Consumers and Lenders Association and Uganda National Teachers Union. \u2022 I noted an average delay of 10 weeks in release of UPE funds to schools contrary to the one week requirement by guidelines."], "type": "table"}}, {"content": [["15", "Iganga MC **Opinion** Unqualified", "\u2022 UGX. 0.473bn remained unspent by the entity representing an absorption level of 93%. \u2022 I noted that out of the 23 major Council outputs, 16 (70%) were implemented and 7 (30%) outputs were not implemented. \u2022 The Municipal Council had accumulated verified payables amounting to UGX.0.713bn. \u2022 Out of 131 approved positions in the staff structure, 42 (32%) posts were vacant and as a result key positions including that of Municipal Council Engineer were in acting positions. \u2022 Under URF, I noted that the entity has deteriorating roads including those worked on during the period due to poor drainage and broken culvert lines. \u2022 Under the YLP, I noted that from the financial year 2014/2015 to 2015/16, Council had recovered only UGX. 21,262,666 (15%) out of the expected total amount due (Interest Exclusive) of UGX.0.141bn leaving an outstanding balance of UGX.0.130bn (85%). I noted that one group disintegrated and the project was no longer in existence."], ["16", "Njeru MC **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.3.018bn representing 22.4% of budgeted revenue. \u2022 I noted that out of the 8 major Council outputs, 7 representing 87.5% were implemented and 01 (12.5%) output road works was partially implemented. \u2022 Under URF, there was poor workmanship as with poor drainage systems, potholes and large gullies. I also noted that the road committee only sat two times in the year under review out of the required 4 sittings. \u2022 Under YLP, I noted failure to recover UGX.0.140bn representing 49% of disbursed funds to groups."], ["17", "Lugazi MC **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.3.648bn representing (9%) of budgeted revenue. Further analysis revealed that UGX.0.929bn remained unspent representing a (90.3%) absorption rate. \u2022 Out of the 20 major Municipal Council outputs, I sampled 6 outputs including URF and noted that 4 (67%) were fully implemented while 2 (33%) outputs were partially implemented. \u2022 I noted that the Municipal Council had failed to collect funds amounting to UGX.0.933bn in revenue. \u2022 UGX. 0.410bn accumulated payables remained outstanding at year end. \u2022 Out of 235 approved positions in the staff structure, 84 (56%) posts were vacant and these included key positions such as Deputy Town Clerk, Internal Auditors, Municipal Engineer, Senior Environment Officer, Senior Physical Unit, Principal Community Development Officer and Medical Officer of Health services. \u2022 Out of 340 teachers in the 44 primary schools, 274 (81%) teachers did not have accommodation."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 259, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["SN", "LOCAL GOVERNMENTS", "SUMMARY OF KEY FINDINGS \u2022 Under YLP, the District failed to recover 78% of funds from groups amounting to UGX.0.436bn representing. Inspection of two sampled groups revealed lack of group file and change of project without approval from the District Technical Committee. \u2022 Under UWEP, the District failed to recover 94% of funds worth UGX. 0.384bn from the expected UGX. 0.378bn (interest exclusive). \u2022 Under Water for Production, I noted that 153 water sources/water points out of the 1,275 in different parts of the district were non-functional representing 2.6% and the water coverage was inadequate at 44.3%. \u2022 I noted inconsistences in IPPS and IFMS payment files with over payments of UGX. 0.049bn and underpayment of UGX. 0.197bn. I also noted under and over remittance of statutory and other deductions including local service tax, PAYE, Uganda Consumers and Lenders Association and Uganda National Teachers Union. \u2022 I noted an average delay of 10 weeks in release of UPE funds to schools contrary to the one week requirement by guidelines."], "type": "table"}}, {"content": "246", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 259, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["18", "Kamuli MC **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX. 0.088bn representing 1% of budgeted revenue. Further analysis revealed that UGX.0.286bn remained unspent representing a 96% absorption rate. \u2022 I noted that out of the 12 major Municipal Council outputs, 10 (83%) were fully implemented and 2 (17%) outputs were partially implemented. \u2022 I noted that expenditure totalling UGX.0.146bn was mischarged during the year. \u2022 The entity has accumulated payables amounting to UGX.0.247bn. \u2022 Under a special audit request undertaken I noted that recruitment was undertaken in line with regulations, there was an untraceable payment of UGX 6,157,457 paid as part of the cost of architectural design and could not confirm failure to account for funds from MAAIF since IGG had commenced investigations. \u2022 Under UgIFT; I noted delayed execution and completion of works for the upgrade of Busota Health centre valued at UGX UGX.0.494bn for which the entity received all funds. \u2022 Under URF; I noted shoddy works i.e. road sections had poorly spread murram and incomplete parts of the road. The entity lacked road equipment and the available machines break down constantly while the tipper truck and pick up are being used for garbage collection and council activities. \u2022 Under YLP; I noted that the entity had failed to recover UGX.43,579,724 from groups, representing 86% of amount due for recovery. \u2022 Under UPE capitation Grant, I noted that the entity had a shortfall of UGX.42,618,744 for 13,024 pupils enrolled in the Council under UPE at a rate of UGX 10,000 per pupil but however received only UGX. 87,621,256."], ["", "**KAMPALA BRANCH**", ""], ["Wakiso DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.4.979bn representing 16%. Further, the entity remained with unspent balance of UGX.7.304bn representing an absorption level of 90%. \u2022 Out of the 9 major programs, 5 were fully implemented, 3 were partially implemented while 1 was not implemented under the 5 projects (UgFIT, URF, YLP, UWEP and GPE). \u2022 I noted outstanding pension and gratuity of UGX.0.205bn at year end. \u2022 Under UgFIT, inspections revealed stalled works for Nakitokolo Health Centre II and Seed Secondary School with both lacking land titles. \u2022 Under URF, i noted the District had only 10 equipments out of the required 32. Further, only 2 Direct Road Committee meetings had been held out the required 4 and inspections revealed deterioration and incomplete works on three roads. \u2022 Under YLP, i noted the district had recovered only UGX.0.175bn out of the expected amount UGX.1.262bn as at 30th June 2019. \u2022 Under UWEP, i noted the district had recovered only UGX.0.057bn out of the expected amount UGX.0.159bn. \u2022 Under Water for use and production, i noted 177 non-functional water facilities. \u2022 Inspections revealed overcrowding and poor state of facilities at St. Theresa Primary School Nampunge and Kikandwa C/U Primary School.", null]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 260, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["SN", "LOCAL GOVERNMENTS", "SUMMARY OF KEY FINDINGS \u2022 Under URF, I noted shoddy works on roads including failure to apply gravel and poorly maintained side drains. The entity lacked road equipment to implement works efficiently. \u2022 Under YLP, I noted that from the financial year 2017/2018 to 2018/2019, the Municipal Council had not recovered UGX.0.169bn representing (90%) of amount due for recovery from the groups. I inspected one group that received UGX. 7,000,000 and found it had not repaid anything out of the advanced funds and from the 10 members registered only 4 were active while the group changed names without authority."], "type": "table"}}, {"content": [["18", "Kamuli MC **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX. 0.088bn representing 1% of budgeted revenue. Further analysis revealed that UGX.0.286bn remained unspent representing a 96% absorption rate. \u2022 I noted that out of the 12 major Municipal Council outputs, 10 (83%) were fully implemented and 2 (17%) outputs were partially implemented. \u2022 I noted that expenditure totalling UGX.0.146bn was mischarged during the year. \u2022 The entity has accumulated payables amounting to UGX.0.247bn. \u2022 Under a special audit request undertaken I noted that recruitment was undertaken in line with regulations, there was an untraceable payment of UGX 6,157,457 paid as part of the cost of architectural design and could not confirm failure to account for funds from MAAIF since IGG had commenced investigations. \u2022 Under UgIFT; I noted delayed execution and completion of works for the upgrade of Busota Health centre valued at UGX UGX.0.494bn for which the entity received all funds. \u2022 Under URF; I noted shoddy works i.e. road sections had poorly spread murram and incomplete parts of the road. The entity lacked road equipment and the available machines break down constantly while the tipper truck and pick up are being used for garbage collection and council activities. \u2022 Under YLP; I noted that the entity had failed to recover UGX.43,579,724 from groups, representing 86% of amount due for recovery. \u2022 Under UPE capitation Grant, I noted that the entity had a shortfall of UGX.42,618,744 for 13,024 pupils enrolled in the Council under UPE at a rate of UGX 10,000 per pupil but however received only UGX. 87,621,256."], ["", "**KAMPALA BRANCH**", ""], ["Wakiso DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.4.979bn representing 16%. Further, the entity remained with unspent balance of UGX.7.304bn representing an absorption level of 90%. \u2022 Out of the 9 major programs, 5 were fully implemented, 3 were partially implemented while 1 was not implemented under the 5 projects (UgFIT, URF, YLP, UWEP and GPE). \u2022 I noted outstanding pension and gratuity of UGX.0.205bn at year end. \u2022 Under UgFIT, inspections revealed stalled works for Nakitokolo Health Centre II and Seed Secondary School with both lacking land titles. \u2022 Under URF, i noted the District had only 10 equipments out of the required 32. Further, only 2 Direct Road Committee meetings had been held out the required 4 and inspections revealed deterioration and incomplete works on three roads. \u2022 Under YLP, i noted the district had recovered only UGX.0.175bn out of the expected amount UGX.1.262bn as at 30th June 2019. \u2022 Under UWEP, i noted the district had recovered only UGX.0.057bn out of the expected amount UGX.0.159bn. \u2022 Under Water for use and production, i noted 177 non-functional water facilities. \u2022 Inspections revealed overcrowding and poor state of facilities at St. Theresa Primary School Nampunge and Kikandwa C/U Primary School.", null]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 260, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["SN", "LOCAL GOVERNMENTS", "SUMMARY OF KEY FINDINGS \u2022 Under URF, I noted shoddy works on roads including failure to apply gravel and poorly maintained side drains. The entity lacked road equipment to implement works efficiently. \u2022 Under YLP, I noted that from the financial year 2017/2018 to 2018/2019, the Municipal Council had not recovered UGX.0.169bn representing (90%) of amount due for recovery from the groups. I inspected one group that received UGX. 7,000,000 and found it had not repaid anything out of the advanced funds and from the 10 members registered only 4 were active while the group changed names without authority."], "type": "table"}}, {"content": "1 \n247", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}, [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}]], "page": 260, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["2", "Buikwe DLG **Opinion** Unqualified", "\u2022 The budgeted total revenue of UGX. 32bn for the year 2018/19 was fully realised representing a performance of 100% and all expenditure warrants amounting to UGX.35bn were spent by the entity representing 100% absorption.  \u2022 Accumulated payables of UGX.0.811bn remained outstanding at year end.  \u2022 Under UgIFT the construction works for the seed school constructed at Sugu Village in Buikwe Sub County were at foundation level signifying a delay in the progress of works.  \u2022 Under URF, there was an under funding of UGX 0.075bn resulting into shortage of 4kms to be undertaken under emergency works.  \u2022 Under YLP, i noted a recovery rate of only 23% of the funds disbursed in FY 2013/2014 to 2018/2019.  \u2022 Under UWEP, i noted a recovery rate of only 25% of the funds advanced since the inception of the programme.  \u2022 Water Situation analysis revealed that some facilities were not functional.  \u2022 The district management continued to share and remitted UGX 0.89bn to Njeru Municipality which was against the District council resolution.  \u2022 Kawolo Hospital had unsettled Umeme bills amounting to UGX.0.96bn and lacked a land title."], ["3", "Kayunga DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.1.551bn representing 4%. \u2022 Further, the entity remained with unspent balance of UGX.2.892bn representing an absorption level of 92%. \u2022 Under UgIFT, construction works of Bukamba Health Centre worth UGX.0.488bn had stalled after payment of UGX.0.292bn and the district did not have a land title for the land. Further, the contract for the construction of Musitwa Seed Secondary School in Nazigo was not signed despite receipt of UGX.0.704bn for the project during the year. \u2022 Under YLP, I noted a recovery rate of only 39% of the funds disbursed from FY 2013/2014 to date. \u2022 Under UWEP, I noted a recovery rate of only 29.4% of the expected amount of UGX. 0.271bn from FY 2015/2016 to date. \u2022 Under water for use and production, 19.8% of the 1,099 water infrastructure were not functional."], ["4", "Nakasongola DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.0.908bn representing 3.6%. Further, the entity over spent by UGX.0.265bn.  \u2022 Out of 36 outputs reported, 33 were fully implemented and 3 were partially implemented under the projects of UgFIT and Education.  \u2022 I noted outstanding payables of UGX.0.918bn at year end.  \u2022 Pension and gratuity Arrears of UGX.0.218bn remained outstanding at year end.  \u2022 Under UgFIT, inspections revealed incomplete and stalled project works.  \u2022 Under YLP, I noted a recovery rate of only 33% (UGX.0.153bn) out of expected amount of UGX.0.463bn from FYs 2014/2015 to 2018/2019.  \u2022 Under UWEP, I noted a low recovery rate of 47.2% (0.021bn) out of the expected UGX.0.045bn. \u2022 Under water for use and production, I noted 255 non-functional water infrastructures."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 261, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["SN", "LOCAL GOVERNMENTS", "SUMMARY OF KEY FINDINGS \u2022 Three (3) health facilities did not receive drugs from National Medical stores during FY 2018/2019. \u2022 Inspections at Entebbe Hospital revealed outstanding Utility bills of UGX.0.589bn, non-functional hospital x-ray machine and x-ray generator, lack of authorisation for possession and use of radiation sources and old dilapidated staff accommodation structures."], "type": "table"}}, {"content": [["2", "Buikwe DLG **Opinion** Unqualified", "\u2022 The budgeted total revenue of UGX. 32bn for the year 2018/19 was fully realised representing a performance of 100% and all expenditure warrants amounting to UGX.35bn were spent by the entity representing 100% absorption.  \u2022 Accumulated payables of UGX.0.811bn remained outstanding at year end.  \u2022 Under UgIFT the construction works for the seed school constructed at Sugu Village in Buikwe Sub County were at foundation level signifying a delay in the progress of works.  \u2022 Under URF, there was an under funding of UGX 0.075bn resulting into shortage of 4kms to be undertaken under emergency works.  \u2022 Under YLP, i noted a recovery rate of only 23% of the funds disbursed in FY 2013/2014 to 2018/2019.  \u2022 Under UWEP, i noted a recovery rate of only 25% of the funds advanced since the inception of the programme.  \u2022 Water Situation analysis revealed that some facilities were not functional.  \u2022 The district management continued to share and remitted UGX 0.89bn to Njeru Municipality which was against the District council resolution.  \u2022 Kawolo Hospital had unsettled Umeme bills amounting to UGX.0.96bn and lacked a land title."], ["3", "Kayunga DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.1.551bn representing 4%. \u2022 Further, the entity remained with unspent balance of UGX.2.892bn representing an absorption level of 92%. \u2022 Under UgIFT, construction works of Bukamba Health Centre worth UGX.0.488bn had stalled after payment of UGX.0.292bn and the district did not have a land title for the land. Further, the contract for the construction of Musitwa Seed Secondary School in Nazigo was not signed despite receipt of UGX.0.704bn for the project during the year. \u2022 Under YLP, I noted a recovery rate of only 39% of the funds disbursed from FY 2013/2014 to date. \u2022 Under UWEP, I noted a recovery rate of only 29.4% of the expected amount of UGX. 0.271bn from FY 2015/2016 to date. \u2022 Under water for use and production, 19.8% of the 1,099 water infrastructure were not functional."], ["4", "Nakasongola DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.0.908bn representing 3.6%. Further, the entity over spent by UGX.0.265bn.  \u2022 Out of 36 outputs reported, 33 were fully implemented and 3 were partially implemented under the projects of UgFIT and Education.  \u2022 I noted outstanding payables of UGX.0.918bn at year end.  \u2022 Pension and gratuity Arrears of UGX.0.218bn remained outstanding at year end.  \u2022 Under UgFIT, inspections revealed incomplete and stalled project works.  \u2022 Under YLP, I noted a recovery rate of only 33% (UGX.0.153bn) out of expected amount of UGX.0.463bn from FYs 2014/2015 to 2018/2019.  \u2022 Under UWEP, I noted a low recovery rate of 47.2% (0.021bn) out of the expected UGX.0.045bn. \u2022 Under water for use and production, I noted 255 non-functional water infrastructures."], ["5", "Nakaseke DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.2.753bn representing 9% of the budget. Further, the entity remained with unspent balance of UGX.0.088bn representing an absorption level of 99.7%."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 261, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["SN", "LOCAL GOVERNMENTS", "SUMMARY OF KEY FINDINGS \u2022 Three (3) health facilities did not receive drugs from National Medical stores during FY 2018/2019. \u2022 Inspections at Entebbe Hospital revealed outstanding Utility bills of UGX.0.589bn, non-functional hospital x-ray machine and x-ray generator, lack of authorisation for possession and use of radiation sources and old dilapidated staff accommodation structures."], "type": "table"}}, {"content": "248", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 261, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["6", "Mukono DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.2.163bn representing 5.1% of the budget. Further, the entity remained with unspent balance of UGX.0.921bn representing an absorption level of 97.7%. \u2022 Out of the 15 inspected projects related to UgIFT, YLP, Water, Health and Education 8 were fully implemented, 4 were partially implemented and 3 were not implemented. \u2022 Revisions in the budget under the Education department towards the construction of the seed school were not communicated to MoFPED. \u2022 UGX.0.181bn was mischarge of expenditure for the year.  \u2022 Under UgIFT, i noted delays in the construction of seed school in Kimenyedde. \u2022 Under URF, inspections revealed that out of the 14.4km only 13.9km were worked on and the 2 culverts installed had developed cracks. \u2022 Under YLP, i noted a recovery rate of only 14.8% (UGX.0.063bn) of the total disbursed amount of UGX.0.410bn from FYs 2014/2015 to 2018/2019. Further, some YLP groups had not commenced. \u2022 Under water for use, 195 water sources were no longer functioning and there was delay in completion of Mayangayanga Water Supply Project."], ["7", "Luweero DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.3.370bn representing 6.5%. Further, the entity remained with unspent balance of UGX.0.134bn representing an absorption level of 99.7%. \u2022 Out of 8 planned major outputs, 5 (63%) were fully achieved, 2 (25%) were partially achieved and 1(12%) was not achieved in the four sampled projects (UgIFT, URF, YLP and UWEP programme). \u2022 Funds totalling to UGX.0.478bn were charged to wrong account codes in the year under review. \u2022 There was no significant progress on construction of the District Administration block Phase III and the Luwero HCIV, Kasana, Phase VI with constructions having started in FY 2016/2017. \u2022 Under UgIFT, works for upgrade of Katuugo Health Centre II had stalled and funds for the construction of a Seed secondary school in Katikamu Sub County were not utilized. \u2022 Under YLP, i noted a low recovery rate of only 28% of the funds disbursed by close of the FY 2018/2019. \u2022 Under UWEP, 3 groups that had requested Ugx.17,500,000 instead received Ugx.20,580,000 with no justification and i noted a recovery rate of only 31% of the total funds disbursed by FY 2018/2019. \u2022 Inspection of a sample of four government aided schools revealed poor state of Infrastructure, lack of staff accommodation, insufficient facilities and insufficient works on construction of classroom blocks."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 262, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["SN", "LOCAL GOVERNMENTS", "SUMMARY OF KEY FINDINGS \u2022 Out of the 29 major outputs reported, 20 were fully implemented, 6 outputs were partially implemented and 3 were not implemented. \u2022 Under UgIFT, Inspections revealed construction works of the Health Centre had stalled and construction of Nakaseke Seed Secondary School had not commenced. There was no land title for the school. \u2022 Under URF, I noted delayed works on Kyambala-Natigi-Nakabimba. \u2022 Under YLP, I noted a low recovery rate of 38.2% (UGX.0.156bn) out of the expected total amount of UGX.0.564bn. \u2022 Under UWEP, I noted a low recovery rate of 50.8% (UGX.0.022bn) out of the expected total amount of UGX.0.043bn. \u2022 Under water for use and production, 253 water facilities were non-functional. \u2022 Inspection of Nakaseke Hospital facilities revealed lack of all the necessary medical equipment and some non- functional equipment. The Atomic energy council had closed the dental X-ray machine and the only digital x-ray machine had broken down for over a year while the Hospital does not have a land title."], "type": "table"}}, {"content": [["6", "Mukono DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.2.163bn representing 5.1% of the budget. Further, the entity remained with unspent balance of UGX.0.921bn representing an absorption level of 97.7%. \u2022 Out of the 15 inspected projects related to UgIFT, YLP, Water, Health and Education 8 were fully implemented, 4 were partially implemented and 3 were not implemented. \u2022 Revisions in the budget under the Education department towards the construction of the seed school were not communicated to MoFPED. \u2022 UGX.0.181bn was mischarge of expenditure for the year.  \u2022 Under UgIFT, i noted delays in the construction of seed school in Kimenyedde. \u2022 Under URF, inspections revealed that out of the 14.4km only 13.9km were worked on and the 2 culverts installed had developed cracks. \u2022 Under YLP, i noted a recovery rate of only 14.8% (UGX.0.063bn) of the total disbursed amount of UGX.0.410bn from FYs 2014/2015 to 2018/2019. Further, some YLP groups had not commenced. \u2022 Under water for use, 195 water sources were no longer functioning and there was delay in completion of Mayangayanga Water Supply Project."], ["7", "Luweero DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.3.370bn representing 6.5%. Further, the entity remained with unspent balance of UGX.0.134bn representing an absorption level of 99.7%. \u2022 Out of 8 planned major outputs, 5 (63%) were fully achieved, 2 (25%) were partially achieved and 1(12%) was not achieved in the four sampled projects (UgIFT, URF, YLP and UWEP programme). \u2022 Funds totalling to UGX.0.478bn were charged to wrong account codes in the year under review. \u2022 There was no significant progress on construction of the District Administration block Phase III and the Luwero HCIV, Kasana, Phase VI with constructions having started in FY 2016/2017. \u2022 Under UgIFT, works for upgrade of Katuugo Health Centre II had stalled and funds for the construction of a Seed secondary school in Katikamu Sub County were not utilized. \u2022 Under YLP, i noted a low recovery rate of only 28% of the funds disbursed by close of the FY 2018/2019. \u2022 Under UWEP, 3 groups that had requested Ugx.17,500,000 instead received Ugx.20,580,000 with no justification and i noted a recovery rate of only 31% of the total funds disbursed by FY 2018/2019. \u2022 Inspection of a sample of four government aided schools revealed poor state of Infrastructure, lack of staff accommodation, insufficient facilities and insufficient works on construction of classroom blocks."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 262, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["SN", "LOCAL GOVERNMENTS", "SUMMARY OF KEY FINDINGS \u2022 Out of the 29 major outputs reported, 20 were fully implemented, 6 outputs were partially implemented and 3 were not implemented. \u2022 Under UgIFT, Inspections revealed construction works of the Health Centre had stalled and construction of Nakaseke Seed Secondary School had not commenced. There was no land title for the school. \u2022 Under URF, I noted delayed works on Kyambala-Natigi-Nakabimba. \u2022 Under YLP, I noted a low recovery rate of 38.2% (UGX.0.156bn) out of the expected total amount of UGX.0.564bn. \u2022 Under UWEP, I noted a low recovery rate of 50.8% (UGX.0.022bn) out of the expected total amount of UGX.0.043bn. \u2022 Under water for use and production, 253 water facilities were non-functional. \u2022 Inspection of Nakaseke Hospital facilities revealed lack of all the necessary medical equipment and some non- functional equipment. The Atomic energy council had closed the dental X-ray machine and the only digital x-ray machine had broken down for over a year while the Hospital does not have a land title."], "type": "table"}}, {"content": "249", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 262, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["9", "Mpigi DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.0.898bn representing 3.2%. Further, the entity remained with unspent balance of UGX. 1.18bn representing an absorption level of 95.6%. \u2022 Inspections of 6 projects (UgIFT, URF, YLP, Water, Health, and Education) revealed that out of the 23 inspected projects, 18 (78.3%) were fully implemented while 5 (21.7%) under the Education department were not implemented. \u2022 Under URF Routine Mechanized Maintenance, inspection on the 55.5km works revealed instances of cracked headwall on installed culvert lines and potholes on roads. \u2022 Under YLP, the district had recovered only UGX.0.094bn (16.2%) from FYs 2014/2015 to 2018/2019 leaving an outstanding balance of UGX.490,517,265. \u2022 Under UWEP, I noted low recovery of only 34.1% out of the expected total amount due (Interest Exclusive) of UGX.33,274,051. \u2022 that from the financial year 2016/17 to 30th June 2019, the district had recovered \u2022 Under water for use, some of the water sources like bore holes and springs were no longer functioning and the water quality test revealed that some water sources had e-coli present. \u2022 The operating theatre at Mpigi HC IV lacked medical equipment and hence was not in use."], ["10", "Mityana DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.1.231bn representing 4% of the budget. Further, the entity remained with unspent balance of UGX.0.476bn representing an absorption level of 98.3%. \u2022 Out of 18 major outputs, 7 were fully implemented, 4 were partially implemented and 7 were not implemented. \u2022 Under UgFIT, incomplete civil works were noted at Namugongo Health centre and Namugongo Seed Secondary School. \u2022 Under URF, inspections revealed some sections of the roads under mechanized maintenance had deteriorated and the road equipments were either not in proper working condition or non- existence. \u2022 Under YLP, i noted a recovery rate of only 39.8% (UGX.0.125bn) of the expected amount UGX. 0.313bn from FYs 2013/2014 to date."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 263, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["SN  8", "LOCAL GOVERNMENTS Butambala DLG Opinion Unqualified", "SUMMARY OF KEY FINDINGS \u2022 There was a shortfall in releases amounting to UGX.0.12bn representing 0.1% of the budget. Further, the entity remained with unspent balance of UGX.0.017bn representing an absorption level of 99.7%. \u2022 Out of 7 Planned major outputs, (5) were fully achieved, (1) was partially achieved while (1) was not achieved from the sampled 3 projects (SFG, URF and UgIFT). \u2022 UGX.1.117bn pension and gratuity arrears for 39 pensioners remained outstanding at year end. \u2022 Under URF, I noted a stream crossing the road in the boundary of Butambala and Mpigi districts hence unusable by small vehicles and pedestrians. Also the district did not have a provision for stores, workshops and garages for its roads equipment and supplies. \u2022 Under UgIFT, there was unspent balance of 0.125bn on the contract for the upgrade of Butaaka Health Centre II and inspections revealed incomplete and shoddy works at the facility. Further, the district was yet to transfer 8 acres of land to Seed secondary school \u2022 Under YLP, i noted a recovery rate of only 13% (0.082bn) of the funds to be repaid (0.658bn) by close of FY 2018/2019. \u2022 Under UWEP, i noted a recovery rate of only 15% (0.018bn) of the funds to be repaid (0.122bn) by close of FY 2018/2019. \u2022 Audit of Education services revealed that an average of 2799 (58%) pupils dropped out over the seven years of primary education. Further, 63 government aided primary schools had shortages in infrastructure and limited access to safe water supply. \u2022 Out of 580 water sources, the district had 93 non-functional. \u2022 Houses of 74 staff at Gombe Hospital were in bad shape and some of the equipment at the hospital was nonfunctional."], "type": "table"}}, {"content": "250", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 263, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["11", "Buvuma DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX. 0.534bn representing 5% of the budget. Further, the entity remained overspent by UGX.1.81bn.  \u2022 The entire 8 district\u2019s key deliverables for the financial year under review were implemented.  \u2022 I noted the district had only 12 health facilities giving coverage of only 15.4%. Only 8 parishes out of 38 have Health Centre IIs while only 4 sub counties out of 9 have Health Centre IIIs.  \u2022 Under UgIFT, I noted that Nairambi seed secondary school had no land title despite investing UGX.0.853bn.  \u2022 Under URF, three sub-counties of Lwajje, Lyabaana and Lubya had no District road network.  \u2022 Under YLP, I noted a recovery rate of only 19.1% (0.084bn) out of the total expected amount of UGX.0.440bn from FYs 2013/2014 to 2018/2019.  \u2022 Under UWEP, I noted a recovery rate of only 26.6% (0.018bn) out of the total expected amount of UGX.0.071bn by 30th June 2019.  \u2022 Under water for use and production, 56% out of the 140 water infrastructure were not functional. \u2022 The district did not have land titles for its Health Centres, Sub-counties and Primary Schools."], ["12", "Kira MC **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.3.482bn representing 17% of approved budget. All warrants issued totalling to UGX. 16.600bn were spent representing an absorption level of 100%. \u2022 Out of the 29 outputs assessed, 38% were fully Implemented, 24% were partially implemented while 38% were not implemented at all. \u2022 I noted outstanding payables of UGX. 1.003bn as at 30th June 2019. \u2022 Under URF, out of the planned 32.35km for routine manual maintenance, only 23.64km were maintained. Out of 2.1km at a cost of UGX. 0.960bn planned for upgrade from murram to tarmac only 2.05km at a cost of UGX.1.015bn were upgraded. \u2022 Under YLP, i noted a recovery rate of only 22% (UGX. 0.055bn) by 30th June 2019. \u2022 Under UWEP, I noted a recovery rate of only 43% (0.066bn) by 30th June 2019."], ["13", "Nansana MC **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.2.933bn representing 14%. Further, the entity remained with unspent balance of UGX.0.246bn representing an absorption level of 99%. \u2022 Out of the five projects inspected (UgIFT, URF, NUSAF 3, YLP and UWEP programme) (2) were fully achieved while (3) were partially implemented. \u2022 Out of the planned 40 major outputs, 25 did not have clear outputs and performance indicators and 2 were partially implemented. \u2022 Payables of UGX.0.874bn remained outstanding at year end.  \u2022 Receivables of UGX.1.181bn remained outstanding at year end. \u2022 Out of an approved staff structure of 92, 47 posts were vacant. \u2022 Under URF, there was no road equipment for maintenance of roads and inspection of 3 roads revealed a very bad state and lack of maintenance in 3 years. Roads had inadequate drainage, overgrown grass and roads under periodic maintenance revealed use of low cost 1ST sealing bitumen. \u2022 Under YLP, only UGX.0.059bn (19.6%) of due funds had been recovered by close of FY 2018/2019."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 264, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["SN", "LOCAL GOVERNMENTS", "SUMMARY OF KEY FINDINGS \u2022 Under UWEP, i noted a recovery rate of 73% (UGX.0.056bn) of the expected amount UGX. 0.077bn from FYs 2016/2017 to date.  \u2022 I noted death of a patient at Mityana Hospital under the care of an Intern Doctor who had forged dental Practitioners certificate and he has never on the list of trained doctors in Uganda.  \u2022 Inspection indicated that 719 out of 2,182 water infrastructure were not functional.  \u2022 Inspections revealed that some key medical equipment at Mityana Hospital were not functional."], "type": "table"}}, {"content": [["11", "Buvuma DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX. 0.534bn representing 5% of the budget. Further, the entity remained overspent by UGX.1.81bn.  \u2022 The entire 8 district\u2019s key deliverables for the financial year under review were implemented.  \u2022 I noted the district had only 12 health facilities giving coverage of only 15.4%. Only 8 parishes out of 38 have Health Centre IIs while only 4 sub counties out of 9 have Health Centre IIIs.  \u2022 Under UgIFT, I noted that Nairambi seed secondary school had no land title despite investing UGX.0.853bn.  \u2022 Under URF, three sub-counties of Lwajje, Lyabaana and Lubya had no District road network.  \u2022 Under YLP, I noted a recovery rate of only 19.1% (0.084bn) out of the total expected amount of UGX.0.440bn from FYs 2013/2014 to 2018/2019.  \u2022 Under UWEP, I noted a recovery rate of only 26.6% (0.018bn) out of the total expected amount of UGX.0.071bn by 30th June 2019.  \u2022 Under water for use and production, 56% out of the 140 water infrastructure were not functional. \u2022 The district did not have land titles for its Health Centres, Sub-counties and Primary Schools."], ["12", "Kira MC **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.3.482bn representing 17% of approved budget. All warrants issued totalling to UGX. 16.600bn were spent representing an absorption level of 100%. \u2022 Out of the 29 outputs assessed, 38% were fully Implemented, 24% were partially implemented while 38% were not implemented at all. \u2022 I noted outstanding payables of UGX. 1.003bn as at 30th June 2019. \u2022 Under URF, out of the planned 32.35km for routine manual maintenance, only 23.64km were maintained. Out of 2.1km at a cost of UGX. 0.960bn planned for upgrade from murram to tarmac only 2.05km at a cost of UGX.1.015bn were upgraded. \u2022 Under YLP, i noted a recovery rate of only 22% (UGX. 0.055bn) by 30th June 2019. \u2022 Under UWEP, I noted a recovery rate of only 43% (0.066bn) by 30th June 2019."], ["13", "Nansana MC **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.2.933bn representing 14%. Further, the entity remained with unspent balance of UGX.0.246bn representing an absorption level of 99%. \u2022 Out of the five projects inspected (UgIFT, URF, NUSAF 3, YLP and UWEP programme) (2) were fully achieved while (3) were partially implemented. \u2022 Out of the planned 40 major outputs, 25 did not have clear outputs and performance indicators and 2 were partially implemented. \u2022 Payables of UGX.0.874bn remained outstanding at year end.  \u2022 Receivables of UGX.1.181bn remained outstanding at year end. \u2022 Out of an approved staff structure of 92, 47 posts were vacant. \u2022 Under URF, there was no road equipment for maintenance of roads and inspection of 3 roads revealed a very bad state and lack of maintenance in 3 years. Roads had inadequate drainage, overgrown grass and roads under periodic maintenance revealed use of low cost 1ST sealing bitumen. \u2022 Under YLP, only UGX.0.059bn (19.6%) of due funds had been recovered by close of FY 2018/2019."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 264, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["SN", "LOCAL GOVERNMENTS", "SUMMARY OF KEY FINDINGS \u2022 Under UWEP, i noted a recovery rate of 73% (UGX.0.056bn) of the expected amount UGX. 0.077bn from FYs 2016/2017 to date.  \u2022 I noted death of a patient at Mityana Hospital under the care of an Intern Doctor who had forged dental Practitioners certificate and he has never on the list of trained doctors in Uganda.  \u2022 Inspection indicated that 719 out of 2,182 water infrastructure were not functional.  \u2022 Inspections revealed that some key medical equipment at Mityana Hospital were not functional."], "type": "table"}}, {"content": "251", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 264, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["14", "Makindye \u2013 Ssabagabo MC **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.0.047bn representing 0.4% of the budget. Further, the Municipality Council over spent by UGX.0.147bn. \u2022 I noted that one planned output of Upgrading St. Noah Nfuufu (UGX.0.500bn) was not implemented. \u2022 I noted accumulated receivables of UGX.0.836bn at year end. \u2022 UGX.1.238bn arrears remained outstanding at year end. \u2022 Under URF, out of the planned output of 28.8 km only 74.3% was achieved under routine manual maintenance and incomplete road works were noted during inspection. Also there is only one road equipment to maintain 380kms road network. \u2022 Under YLP, I noted a recovery rate of 38.1% (UGX. 0.077bn) of the total expected amount (UGX.0.204bn) by year end. \u2022 Under UWEP, I noted a recovery rate of only 32.2% (UGX.0.046bn) of the expected amount (UGX.0.144bn). \u2022 I noted procurement of two double cabin pick- ups at a cost of UGX. 0.313bn above the budgeted cost of UGX. 0.280bn."], ["15", "Mukono MC **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.0.136bn representing 0.9%. Further, the entity remained with unspent balance of UGX.0.115bn representing an absorption level of 99.2%. \u2022 Payables of UGX.0.357bn remained outstanding at close of FY 2018/2019. Further, Council had not paid pension and gratuity of UGX.0.444bn at year end. \u2022 Under URF, the Municipality has only a motor grader, dump truck and tractor which are inadequate to maintain a road network of 350 kms under its jurisdiction. \u2022 Under UgIFT, 2 stance VIP latrine had not been erected yet UGX.31,031,000 had already been paid for it and there were incomplete works with one of the structures at walling level while the other was at foundation slab. \u2022 Under YLP, I noted a recovery rate of only 45% of the funds disbursed from FY 2013/2014 to 2018/2019. \u2022 Under UWEP, I noted that the municipal council had recovered only 50.7% of the total of disbursement in the FYs 2016/17 to 2018/19. \u2022 The Municipal Council lacks land titles for its Health Centres, markets and Primary schools. \u2022 Inspections of council waste management revealed non-functional equipment for garbage collection, transportation and deposit i.e. tractor, skip loader and compressor, filthy accumulated trash and refuse whose disposal appeared to be beyond the capability of the authorities, plastics and polythene not covered with murrum at compositing plant, low rate of turning in coming garbage into manure, rusty water gutters, non-functional solar system and leachate pump and inadequate human labour without protective gear."], ["16", "Mityana MC **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX. 0.723bn representing 8.4% of the budget. Further, the entity remained with unspent balance of UGX.0.839bn representing an absorption level of 89.3%. \u2022 Out of the 8 major outputs reported, (7) were fully implemented and (1) was partially implemented."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 265, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["SN", "LOCAL GOVERNMENTS", "SUMMARY OF KEY FINDINGS \u2022 Unauthorized activities were noted in wetlands located in 4 divisions (Busukuma, Nansana, Nabweru and Gombe). Further, the wetlands were not demarcated, measured and did not have titles. \u2022 Under physical planning, I noted that development plans of Block 203 stretching from Namungoona to Kasubi under Wakiso land office are not approved thus impacting on development control and the environment. \u2022 Inspection of 2 primary schools revealed inadequate toilet facilities, poor state of staff quarters, kitchen and classroom facilities."], "type": "table"}}, {"content": [["14", "Makindye \u2013 Ssabagabo MC **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.0.047bn representing 0.4% of the budget. Further, the Municipality Council over spent by UGX.0.147bn. \u2022 I noted that one planned output of Upgrading St. Noah Nfuufu (UGX.0.500bn) was not implemented. \u2022 I noted accumulated receivables of UGX.0.836bn at year end. \u2022 UGX.1.238bn arrears remained outstanding at year end. \u2022 Under URF, out of the planned output of 28.8 km only 74.3% was achieved under routine manual maintenance and incomplete road works were noted during inspection. Also there is only one road equipment to maintain 380kms road network. \u2022 Under YLP, I noted a recovery rate of 38.1% (UGX. 0.077bn) of the total expected amount (UGX.0.204bn) by year end. \u2022 Under UWEP, I noted a recovery rate of only 32.2% (UGX.0.046bn) of the expected amount (UGX.0.144bn). \u2022 I noted procurement of two double cabin pick- ups at a cost of UGX. 0.313bn above the budgeted cost of UGX. 0.280bn."], ["15", "Mukono MC **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.0.136bn representing 0.9%. Further, the entity remained with unspent balance of UGX.0.115bn representing an absorption level of 99.2%. \u2022 Payables of UGX.0.357bn remained outstanding at close of FY 2018/2019. Further, Council had not paid pension and gratuity of UGX.0.444bn at year end. \u2022 Under URF, the Municipality has only a motor grader, dump truck and tractor which are inadequate to maintain a road network of 350 kms under its jurisdiction. \u2022 Under UgIFT, 2 stance VIP latrine had not been erected yet UGX.31,031,000 had already been paid for it and there were incomplete works with one of the structures at walling level while the other was at foundation slab. \u2022 Under YLP, I noted a recovery rate of only 45% of the funds disbursed from FY 2013/2014 to 2018/2019. \u2022 Under UWEP, I noted that the municipal council had recovered only 50.7% of the total of disbursement in the FYs 2016/17 to 2018/19. \u2022 The Municipal Council lacks land titles for its Health Centres, markets and Primary schools. \u2022 Inspections of council waste management revealed non-functional equipment for garbage collection, transportation and deposit i.e. tractor, skip loader and compressor, filthy accumulated trash and refuse whose disposal appeared to be beyond the capability of the authorities, plastics and polythene not covered with murrum at compositing plant, low rate of turning in coming garbage into manure, rusty water gutters, non-functional solar system and leachate pump and inadequate human labour without protective gear."], ["16", "Mityana MC **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX. 0.723bn representing 8.4% of the budget. Further, the entity remained with unspent balance of UGX.0.839bn representing an absorption level of 89.3%. \u2022 Out of the 8 major outputs reported, (7) were fully implemented and (1) was partially implemented."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 265, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["SN", "LOCAL GOVERNMENTS", "SUMMARY OF KEY FINDINGS \u2022 Unauthorized activities were noted in wetlands located in 4 divisions (Busukuma, Nansana, Nabweru and Gombe). Further, the wetlands were not demarcated, measured and did not have titles. \u2022 Under physical planning, I noted that development plans of Block 203 stretching from Namungoona to Kasubi under Wakiso land office are not approved thus impacting on development control and the environment. \u2022 Inspection of 2 primary schools revealed inadequate toilet facilities, poor state of staff quarters, kitchen and classroom facilities."], "type": "table"}}, {"content": "252", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 265, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["17", "Entebbe MC **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.2.343bn representing 12% and all UGX.17.092bn warranted was spent fully absorbed. \u2022 Out of (7) planned outputs, (6) were fully achieved whereas (1) was partially achieved in the sampled four projects (URF, YLP, UWEP and education institutions). \u2022 Under YLP, i noted a recovery rate of only UGX.0.013bn (40%) of the funds due. Besides two youth groups received project funds which were shared amongst group members. \u2022 Out of an approved staff structure of 125, 57 (46%) posts were vacant. \u2022 Under UPE capitation, I noted a shortfall in funding of one sampled school. Further Inspections of 15 schools indicated shortages in infrastructure i.e. inadequate latrine stances, desks and asbestos roofing."], ["", "**MASAKA BRANCH**", ""], ["1", "Kalangala DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.4.172bn representing 21%. Further, the entity remained with an unspent balance of UGX.0.084bn representing an absorption level of 99.5%. \u2022 Out of the 16 projects inspected, 7 were partially implemented while 9 were not implemented. \u2022 Under the UgIFT program, funds were disbursed for the construction of Kachanga seed school but no works had been undertaken. \u2022 I noted two District trucks had not been repaired for over one year despite release of funds under the URF. Inspection of the Kibale \u2013 Kasekulo \u2013 Ttubi road revealed poor workmanship on some road sections. \u2022 The District had recovered only 21% of the recoverable amount from the YLP groups for funds disbursed in the 2014/2015 and 2015/2016 financial years. Inspection of some of the youth groups revealed that some had seized operation while others were not operating at the desirable level."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 266, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["SN", "LOCAL GOVERNMENTS", "SUMMARY OF KEY FINDINGS \u2022 Under URF, the Municipality had 2 equipment out of the required 11. Inspections revealed some sections of the roads did not appear to have been worked on frequently by the road Gangs.  \u2022 Under YLP, I noted a recovery rate of only 10.4%(0.012bn) of the funds disbursed in FY 2014/2015 to date.  \u2022 Inspections in Mityana Public Primary School revealed that the school structures were dilapidated.  \u2022 The Municipal Council has not made any bye laws in relation to garbage management. Further, out of the 17 equipment available for collection and disposal of garbage, only 12 are functional. \u2022 The municipal did not have physical development plans for development activities.  \u2022 There was lack of land titles for 9 plots of land."], "type": "table"}}, {"content": [["17", "Entebbe MC **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.2.343bn representing 12% and all UGX.17.092bn warranted was spent fully absorbed. \u2022 Out of (7) planned outputs, (6) were fully achieved whereas (1) was partially achieved in the sampled four projects (URF, YLP, UWEP and education institutions). \u2022 Under YLP, i noted a recovery rate of only UGX.0.013bn (40%) of the funds due. Besides two youth groups received project funds which were shared amongst group members. \u2022 Out of an approved staff structure of 125, 57 (46%) posts were vacant. \u2022 Under UPE capitation, I noted a shortfall in funding of one sampled school. Further Inspections of 15 schools indicated shortages in infrastructure i.e. inadequate latrine stances, desks and asbestos roofing."], ["", "**MASAKA BRANCH**", ""], ["1", "Kalangala DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.4.172bn representing 21%. Further, the entity remained with an unspent balance of UGX.0.084bn representing an absorption level of 99.5%. \u2022 Out of the 16 projects inspected, 7 were partially implemented while 9 were not implemented. \u2022 Under the UgIFT program, funds were disbursed for the construction of Kachanga seed school but no works had been undertaken. \u2022 I noted two District trucks had not been repaired for over one year despite release of funds under the URF. Inspection of the Kibale \u2013 Kasekulo \u2013 Ttubi road revealed poor workmanship on some road sections. \u2022 The District had recovered only 21% of the recoverable amount from the YLP groups for funds disbursed in the 2014/2015 and 2015/2016 financial years. Inspection of some of the youth groups revealed that some had seized operation while others were not operating at the desirable level."], ["2", "Mubende DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.0.874bn representing 3.3%. Further, the entity remained with unspent balance of UGX.2.822bn representing an absorption level of 89.04%. \u2022 I noted that out of the ten projects inspected; six were fully implemented, one was partially implemented while three were not implemented. \u2022 The District had outstanding arrears of 1.020bn but only budgeted for UGX.0.255Bn for the financial year 2019/2020. \u2022 Under the UgIFT program, I noted that constructions of Kigando seed school and the works on upgrades of Butawata and Butoloogo health centre IIs were incomplete. \u2022 The District had recovered only 37% of the recoverable amount from the YLP groups for funds disbursed in the 2014/2015 and 2015/2016 financial years."], ["3", "Sembabule DLG **Opinion**", "\u2022 There was a shortfall in releases amounting to UGX.0.466Bn representing 1.7%. Further, the entity remained with unspent balance of UGX.1.950Bn representing an absorption level of 92.2%."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 266, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["SN", "LOCAL GOVERNMENTS", "SUMMARY OF KEY FINDINGS \u2022 Under URF, the Municipality had 2 equipment out of the required 11. Inspections revealed some sections of the roads did not appear to have been worked on frequently by the road Gangs.  \u2022 Under YLP, I noted a recovery rate of only 10.4%(0.012bn) of the funds disbursed in FY 2014/2015 to date.  \u2022 Inspections in Mityana Public Primary School revealed that the school structures were dilapidated.  \u2022 The Municipal Council has not made any bye laws in relation to garbage management. Further, out of the 17 equipment available for collection and disposal of garbage, only 12 are functional. \u2022 The municipal did not have physical development plans for development activities.  \u2022 There was lack of land titles for 9 plots of land."], "type": "table"}}, {"content": "253", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 266, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["4", "Lwengo DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.1.883Bn representing 6.5% of the budget. Further, the entity remained with unspent balance of UGX.0.108Bn representing an absorption level of 99.6%. \u2022 I noted that the district implemented most of the planned activities, with the exception of two outputs which were partially implemented. \u2022 I noted that the district had outstanding obligations to the tune of UGX.1.151Bn as at 30th June 2019. \u2022 Under the UgIFT program, I noted that the construction of Mbirizi Seed Secondary School and the upgrade of Kakoma HC II to HC III were delayed and the projects were incomplete. \u2022 The District has recovered only 34% of the recoverable amount from the YLP groups for funds disbursed in the 2014/2015 and 2015/2016 financial years."], ["5", "Bukomansimbi DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.1.133Bn representing 6.6%. Further, the entity remained with unspent balance of UGX.0.154Bn representing an absorption level of 99%. \u2022 Out of the sampled ten projects under the Health, Education and Works sectors, 8 were fully achieved, 1 was partially implemented while 1 was not implemented. \u2022 Under UgIFT, I noted that funds to the tune of UGX.0.354Bn planned and disbursed for construction of Bukango seed school in the financial year 2018/19 were swept back to the consolidated fund due to failure to undertake timely procurement. \u2022 The District diverted URF funds worth UGX.29,331,790 meant for routine mechanized maintenance towards operational and mechanical imprest. \u2022 Under YLP, The District has recovered only 35.7% of the recoverable amount from the beneficiary groups. I further noted that one of the groups had diverted funds towards an unapproved venture while another group had disintegrated and relocated to Wakiso District with only a few individuals executing the business venture."], ["6", "Kyotera DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.1.045Bn representing 4%. Further, the entity remained with unspent balance of UGX.0.274Bn representing an absorption level of 99%. \u2022 Under URF field inspections, I observed poor workmanship on the 10 km stretch of Kikondo \u2013 Kawule \u2013 Busowe\u2013 Abonera/Kabuwoko road. \u2022 I inspected three UWEP groups and noted that two of the group\u2019s members were not aware of funds to the tune of UGX.12,257,000 transferred to them despite disbursement by the district. In the other group, all 30 goats procured had died. \u2022 The District has recovered only 18% of the recoverable amount from the youth groups for funds disbursed in the 2014/2015 and 2015/2016 financial years. \u2022 I noted that leases to 89.26 hectares of district land in five locations had expired and they faced risks of encroachment and disputes."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 267, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["SN", "LOCAL GOVERNMENTS Unqualified", "SUMMARY OF KEY FINDINGS \u2022 I noted that out of the 7 projects inspected, 5 were fully achieved, 1 was partially implemented and 1 was not implemented. \u2022 Under the UgIFT, I noted that the construction of Lwebitakuli Seed Secondary School at UGX.723,781,660 had not yet commenced and the upgrade of Busheka HC II to HC III was delayed despite release of adequate funds. \u2022 Under YLP, the District had recovered only 32% of the recoverable amount from the youth groups for funds disbursed in the 2014/2015 and 2015/2016 financial years. Inspection of Dispensary youth milk vendors and Dispensary zone tailoring youth groups revealed that the groups had disintegrated and the latter had changed from tailoring to bar and butchery. \u2022 I noted that the UWEP project did not receive funding in the financial year despite budgeting for UGX.207,186,000. \u2022 I noted that the several swamps within the district had been encroached for unlicensed activities like farming."], "type": "table"}}, {"content": [["4", "Lwengo DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.1.883Bn representing 6.5% of the budget. Further, the entity remained with unspent balance of UGX.0.108Bn representing an absorption level of 99.6%. \u2022 I noted that the district implemented most of the planned activities, with the exception of two outputs which were partially implemented. \u2022 I noted that the district had outstanding obligations to the tune of UGX.1.151Bn as at 30th June 2019. \u2022 Under the UgIFT program, I noted that the construction of Mbirizi Seed Secondary School and the upgrade of Kakoma HC II to HC III were delayed and the projects were incomplete. \u2022 The District has recovered only 34% of the recoverable amount from the YLP groups for funds disbursed in the 2014/2015 and 2015/2016 financial years."], ["5", "Bukomansimbi DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.1.133Bn representing 6.6%. Further, the entity remained with unspent balance of UGX.0.154Bn representing an absorption level of 99%. \u2022 Out of the sampled ten projects under the Health, Education and Works sectors, 8 were fully achieved, 1 was partially implemented while 1 was not implemented. \u2022 Under UgIFT, I noted that funds to the tune of UGX.0.354Bn planned and disbursed for construction of Bukango seed school in the financial year 2018/19 were swept back to the consolidated fund due to failure to undertake timely procurement. \u2022 The District diverted URF funds worth UGX.29,331,790 meant for routine mechanized maintenance towards operational and mechanical imprest. \u2022 Under YLP, The District has recovered only 35.7% of the recoverable amount from the beneficiary groups. I further noted that one of the groups had diverted funds towards an unapproved venture while another group had disintegrated and relocated to Wakiso District with only a few individuals executing the business venture."], ["6", "Kyotera DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.1.045Bn representing 4%. Further, the entity remained with unspent balance of UGX.0.274Bn representing an absorption level of 99%. \u2022 Under URF field inspections, I observed poor workmanship on the 10 km stretch of Kikondo \u2013 Kawule \u2013 Busowe\u2013 Abonera/Kabuwoko road. \u2022 I inspected three UWEP groups and noted that two of the group\u2019s members were not aware of funds to the tune of UGX.12,257,000 transferred to them despite disbursement by the district. In the other group, all 30 goats procured had died. \u2022 The District has recovered only 18% of the recoverable amount from the youth groups for funds disbursed in the 2014/2015 and 2015/2016 financial years. \u2022 I noted that leases to 89.26 hectares of district land in five locations had expired and they faced risks of encroachment and disputes."], ["7", "Gomba DLG", "\u2022 There was a shortfall in releases amounting to UGX.0.025bn representing 0.2%. Further, the entity remained with unspent balance of UGX.0.492bn representing an absorption level of 99%."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 267, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["SN", "LOCAL GOVERNMENTS Unqualified", "SUMMARY OF KEY FINDINGS \u2022 I noted that out of the 7 projects inspected, 5 were fully achieved, 1 was partially implemented and 1 was not implemented. \u2022 Under the UgIFT, I noted that the construction of Lwebitakuli Seed Secondary School at UGX.723,781,660 had not yet commenced and the upgrade of Busheka HC II to HC III was delayed despite release of adequate funds. \u2022 Under YLP, the District had recovered only 32% of the recoverable amount from the youth groups for funds disbursed in the 2014/2015 and 2015/2016 financial years. Inspection of Dispensary youth milk vendors and Dispensary zone tailoring youth groups revealed that the groups had disintegrated and the latter had changed from tailoring to bar and butchery. \u2022 I noted that the UWEP project did not receive funding in the financial year despite budgeting for UGX.207,186,000. \u2022 I noted that the several swamps within the district had been encroached for unlicensed activities like farming."], "type": "table"}}, {"content": "254", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 267, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["8", "Masaka DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.2.076Bn representing 9%. Further, the entity remained with unspent balance of UGX.0.079Bn representing an absorption level of 99.6%. \u2022 I noted that payables of UGX.52,443,542 relating to utilities and other goods consumed have remained outstanding for more than three years. \u2022 Under UgIFT, I noted that UGX.0.325bn was diverted. I further noted a delay of 10 months in the signing of the contract for the construction of the seed Secondary School at Bunadu Village Bukakkata Sub-county. \u2022 Under YLP, the District has recovered only 37% of the recoverable amount from the youth groups for funds disbursed in the 2014/2015 and 2015/2016 financial years. Inspection of two Youth groups revealed that group members had dispersed and funds advanced to them amounting to UGX.17,860,000 had not been recovered."], ["9", "Masaka MC **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.1.031bn representing 6.2%. Further, the Municipal remained with unspent balance of UGX.0.4bn representing an absorption level of 97%. \u2022 Out of the ten major activities inspected, four were fully implemented; five were partially implemented while one was not implemented. \u2022 Under the UgIFT program, I noted a delay in the upgrade of Nyendo health centre II to III of five months and incomplete works despite payment of all the contract funds to the contractor. \u2022 Under the URF, I noted that the Municipal council failed to implement road works and other activities under works to the tune of 0.397bn and inspection of some of the roads revealed poor workmanship and partial implementation. \u2022 The Municipal council has recovered only 27% of the recoverable amount from the YLP groups for funds disbursed in the 2014/2015 and 2015/2016 financial years. Inspection of two group revealed that one group was no longer in existence after the group leader defrauded all the funds and the second had membership drop from 15 members to 4. \u2022 Under the UWEP program, I inspected two and all the projects had closed. \u2022 Management did not maintain a land register for the municipal land and most land had no tittles. I also noted that structures on Plot 9 Edward Avenue were leased but there was no revenue being realized. \u2022 Inspection of Hill road primary school revealed the school does not meet the basic minimum requirements for a primary school and it has a teacher to pupil ratio of 1:80 compared to the standard ratio of 1:50."], ["10", "Kasanda DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.0.434bn representing 2.2%. Further, the entity remained with unspent balance of UGX.0.998bn representing an absorption level of 94.9%. \u2022 Under the UgIFT program, I noted delays in execution and poor workmanship for the upgrade of Kikandwa and Buserengenyu Health centres IIs. Construction of the Manyogaseka seed secondary school was also incomplete despite the contractor receiving all the funds for the project."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 268, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["SN", "LOCAL GOVERNMENTS Opinion Unqualified", "SUMMARY OF KEY FINDINGS \u2022 It was noted that out of the 12 projects inspected, 9 were fully implemented and 3 were partially implemented. \u2022 Under the UgIFT Program, I noted incomplete works for the upgrade of Ngomanene and Mamba health centres IIs to IIIs whilst works on the construction of Kyayi seed school had not yet began by 1/08/2019. \u2022 Under the URF, I noted that there were no bills of quantities prepared for four of the seven planned roads covering 45.6Kms. \u2022 The District had recovered only 22.5% of the recoverable amount from the YLP groups for funds disbursed in the 2014/2015 and 2015/2016 financial years. Inspection of two projects revealed that only three and four members were active in each of the groups. \u2022 Under the UWEP program, the District had only recovered 49% of the amount outstanding from the 2016/2017 and 2017/2018 financial years."], "type": "table"}}, {"content": [["8", "Masaka DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.2.076Bn representing 9%. Further, the entity remained with unspent balance of UGX.0.079Bn representing an absorption level of 99.6%. \u2022 I noted that payables of UGX.52,443,542 relating to utilities and other goods consumed have remained outstanding for more than three years. \u2022 Under UgIFT, I noted that UGX.0.325bn was diverted. I further noted a delay of 10 months in the signing of the contract for the construction of the seed Secondary School at Bunadu Village Bukakkata Sub-county. \u2022 Under YLP, the District has recovered only 37% of the recoverable amount from the youth groups for funds disbursed in the 2014/2015 and 2015/2016 financial years. Inspection of two Youth groups revealed that group members had dispersed and funds advanced to them amounting to UGX.17,860,000 had not been recovered."], ["9", "Masaka MC **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.1.031bn representing 6.2%. Further, the Municipal remained with unspent balance of UGX.0.4bn representing an absorption level of 97%. \u2022 Out of the ten major activities inspected, four were fully implemented; five were partially implemented while one was not implemented. \u2022 Under the UgIFT program, I noted a delay in the upgrade of Nyendo health centre II to III of five months and incomplete works despite payment of all the contract funds to the contractor. \u2022 Under the URF, I noted that the Municipal council failed to implement road works and other activities under works to the tune of 0.397bn and inspection of some of the roads revealed poor workmanship and partial implementation. \u2022 The Municipal council has recovered only 27% of the recoverable amount from the YLP groups for funds disbursed in the 2014/2015 and 2015/2016 financial years. Inspection of two group revealed that one group was no longer in existence after the group leader defrauded all the funds and the second had membership drop from 15 members to 4. \u2022 Under the UWEP program, I inspected two and all the projects had closed. \u2022 Management did not maintain a land register for the municipal land and most land had no tittles. I also noted that structures on Plot 9 Edward Avenue were leased but there was no revenue being realized. \u2022 Inspection of Hill road primary school revealed the school does not meet the basic minimum requirements for a primary school and it has a teacher to pupil ratio of 1:80 compared to the standard ratio of 1:50."], ["10", "Kasanda DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.0.434bn representing 2.2%. Further, the entity remained with unspent balance of UGX.0.998bn representing an absorption level of 94.9%. \u2022 Under the UgIFT program, I noted delays in execution and poor workmanship for the upgrade of Kikandwa and Buserengenyu Health centres IIs. Construction of the Manyogaseka seed secondary school was also incomplete despite the contractor receiving all the funds for the project."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 268, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["SN", "LOCAL GOVERNMENTS Opinion Unqualified", "SUMMARY OF KEY FINDINGS \u2022 It was noted that out of the 12 projects inspected, 9 were fully implemented and 3 were partially implemented. \u2022 Under the UgIFT Program, I noted incomplete works for the upgrade of Ngomanene and Mamba health centres IIs to IIIs whilst works on the construction of Kyayi seed school had not yet began by 1/08/2019. \u2022 Under the URF, I noted that there were no bills of quantities prepared for four of the seven planned roads covering 45.6Kms. \u2022 The District had recovered only 22.5% of the recoverable amount from the YLP groups for funds disbursed in the 2014/2015 and 2015/2016 financial years. Inspection of two projects revealed that only three and four members were active in each of the groups. \u2022 Under the UWEP program, the District had only recovered 49% of the amount outstanding from the 2016/2017 and 2017/2018 financial years."], "type": "table"}}, {"content": "255", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 268, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["11", "Rakai DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.1.262Bn representing 3.5%. Further, the entity remained with unspent balance of UGX.0.945Bn representing an absorption level of 97%. \u2022 I noted that the District fully implemented all its planned outputs save for the partial completion of the upgrade of Kiziba HC II to HC III and construction of Samson Kalibala Kamya Memorial Seed Secondary school. \u2022 I noted procurement delays of 7 and 10 months in the signing of contracts for upgrading Kiziba HC II to HC III and construction of Samson Kalibala Kamya Memorial Seed Secondary school respectively. \u2022 Under YLP, the District has recovered only 26% of the recoverable amount from the beneficiary groups for funds disbursed in the 2014/2015 and 2015/2016 financial years."], ["12", "Lyantonde DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.0.932bn representing 5.8%. Further, the entity remained with unspent balance of UGX.0.199bn representing an absorption level of 98.3%. \u2022 I noted that out of ten key deliverables; seven were fully implemented, one was partially implemented and two were not implemented. \u2022 Under the UgIFT, upgrading of Lyakjura H/C II had been delayed and the works were incomplete. Furthermore, the District failed to recover VAT worth UGX. 0.052bn on the payments to the contractor. \u2022 The District had recovered 71% of the recoverable amount from the YLP groups for funds disbursed in the 2014/2015 and 2015/2016 financial years. Inspection of Kagara youth bull fattening group revealed that out of the ten bulls bought, five had died and the number of the group members had dropped to six from ten. \u2022 Under the UWEP program, the District had recovered 77% of the amount outstanding from the 2016/2017 and 2017/2018 financial years. Inspection of the Kooki \u2018C\u2019 women poultry group revealed that only four members were still in the group out of the initial ten and had also changed the investment plan without the district approval. \u2022 I noted that the district has 98 non-functional water sources representing 59% of all the water sources in the district. \u2022 I noted that there were 13 vacant positions for key staff within the District."], ["13", "Masaka Regional Referral Hospital **Opinion** Unqualified", "\u2022 I noted that the hospital collected UGX 0.319bn in Non-Tax Revenue representing only 53% of the planned amount. Furthermore, the hospital remained with an unspent balance of UGX.0.17bn representing an absorption level of 98%. \u2022 I noted that out of the 13 quantified outputs assessed, only one output was fully implemented; four outputs were partially implemented while eight outputs were not implemented. \u2022 I observed that the hospital has outstanding pension liabilities to the tune of UGX.0.939bn. \u2022 I noted delays in the completion of the maternity and children\u2019s health complex at the hospital with the works valued at UGX.10.612bn and an initial completion date of 2017. Furthermore, I noted poor workmanship in renovation works of the hospital mortuary. \u2022 The hospital lacked 9 key medical equipment expected in a hospital by minimum standards. \u2022 There were challenges of drug stock outs of vital medicines like Coartem, Oxytocin, Insulin, Atenolol among others. \u2022 None of the senior management staff had signed Performance Agreements as at 31st July 2018 and management had not submitted reports on performance appraisals to the Ministry of Public Service by 15th September 2018. \u2022 The hospital has 136 vacant positions representing 36% of the total approved staff establishment."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 269, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["SN", "LOCAL GOVERNMENTS", "SUMMARY OF KEY FINDINGS \u2022 Under the YLP program, I inspected Kassanda stationery group and observed that the group had disbanded and only one member was available while Kyedikyo Youth craft makers had only 8 active members in the operations out of ten."], "type": "table"}}, {"content": [["11", "Rakai DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.1.262Bn representing 3.5%. Further, the entity remained with unspent balance of UGX.0.945Bn representing an absorption level of 97%. \u2022 I noted that the District fully implemented all its planned outputs save for the partial completion of the upgrade of Kiziba HC II to HC III and construction of Samson Kalibala Kamya Memorial Seed Secondary school. \u2022 I noted procurement delays of 7 and 10 months in the signing of contracts for upgrading Kiziba HC II to HC III and construction of Samson Kalibala Kamya Memorial Seed Secondary school respectively. \u2022 Under YLP, the District has recovered only 26% of the recoverable amount from the beneficiary groups for funds disbursed in the 2014/2015 and 2015/2016 financial years."], ["12", "Lyantonde DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.0.932bn representing 5.8%. Further, the entity remained with unspent balance of UGX.0.199bn representing an absorption level of 98.3%. \u2022 I noted that out of ten key deliverables; seven were fully implemented, one was partially implemented and two were not implemented. \u2022 Under the UgIFT, upgrading of Lyakjura H/C II had been delayed and the works were incomplete. Furthermore, the District failed to recover VAT worth UGX. 0.052bn on the payments to the contractor. \u2022 The District had recovered 71% of the recoverable amount from the YLP groups for funds disbursed in the 2014/2015 and 2015/2016 financial years. Inspection of Kagara youth bull fattening group revealed that out of the ten bulls bought, five had died and the number of the group members had dropped to six from ten. \u2022 Under the UWEP program, the District had recovered 77% of the amount outstanding from the 2016/2017 and 2017/2018 financial years. Inspection of the Kooki \u2018C\u2019 women poultry group revealed that only four members were still in the group out of the initial ten and had also changed the investment plan without the district approval. \u2022 I noted that the district has 98 non-functional water sources representing 59% of all the water sources in the district. \u2022 I noted that there were 13 vacant positions for key staff within the District."], ["13", "Masaka Regional Referral Hospital **Opinion** Unqualified", "\u2022 I noted that the hospital collected UGX 0.319bn in Non-Tax Revenue representing only 53% of the planned amount. Furthermore, the hospital remained with an unspent balance of UGX.0.17bn representing an absorption level of 98%. \u2022 I noted that out of the 13 quantified outputs assessed, only one output was fully implemented; four outputs were partially implemented while eight outputs were not implemented. \u2022 I observed that the hospital has outstanding pension liabilities to the tune of UGX.0.939bn. \u2022 I noted delays in the completion of the maternity and children\u2019s health complex at the hospital with the works valued at UGX.10.612bn and an initial completion date of 2017. Furthermore, I noted poor workmanship in renovation works of the hospital mortuary. \u2022 The hospital lacked 9 key medical equipment expected in a hospital by minimum standards. \u2022 There were challenges of drug stock outs of vital medicines like Coartem, Oxytocin, Insulin, Atenolol among others. \u2022 None of the senior management staff had signed Performance Agreements as at 31st July 2018 and management had not submitted reports on performance appraisals to the Ministry of Public Service by 15th September 2018. \u2022 The hospital has 136 vacant positions representing 36% of the total approved staff establishment."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 269, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["SN", "LOCAL GOVERNMENTS", "SUMMARY OF KEY FINDINGS \u2022 Under the YLP program, I inspected Kassanda stationery group and observed that the group had disbanded and only one member was available while Kyedikyo Youth craft makers had only 8 active members in the operations out of ten."], "type": "table"}}, {"content": "256", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 269, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["15", "Kalungu DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.0.66bn representing 3%. Further, the District remained with an unspent balance of UGX.0.616bn representing an absorption level of 97%. \u2022 I noted that out of the 16 key deliverables inspected; ten were fully implemented, two were partially implemented while four were not implemented. \u2022 Under the UgIFT, I noted there were procurement delays of up to four months in the contract for the upgrade of Kabaale health centre II. Furthermore, I noted delays of 17 months in the contract for the construction of the seed school at Lukaya and the works were incomplete. \u2022 Under the UWEP program, the District had recovered only 31% of the amount outstanding from disbursements from the 2016/2017 and 2017/2018 financial years. \u2022 The District had recovered only 36% of the recoverable amount from the YLP groups for funds disbursed in the 2014/2015 and 2015/2016 financial years and two groups inspected had seized operation with UGX.19,161,000 not yet recovered. \u2022 The district has 159 non-functional water sources representing 21% of all the water sources in the District. \u2022 I noted unlicensed activities of brick-laying in a wetland at Kitosi Parish \u2013 Kyamulibwa Sub County."], ["16", "Mubende MC **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.0.307bn representing 3.5%. Further, the Municipal remained with unspent balance of UGX.0.182bn representing an absorption level of 98%. \u2022 I noted that two outputs i.e. installation of toilet facilities in the administration block and renovation of library were not implemented. \u2022 Under the UgIFT program, I noted delays in contract execution of up to three months for the upgrade of Lwemikomago health centre II and incomplete works. \u2022 Under the URF, I noted that the Municipal council failed to implement road works on 24Kms worth UGX.79,750,000 due to underfunding and diversions. Furthermore, the Municipal executed road works of UGX.7,000,500 that were not in the Municipal council work plan. \u2022 Under the YLP program, I inspected two Piggery projects and observed that none of the groups had paid back any funds and that both groups had lost some animals to disease. \u2022 Under the UWEP program, I inspected Kisa kyamukama women\u2019s group and observed inadequate farm practices."], ["", "", ""]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 270, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["SN 14", "LOCAL GOVERNMENTS Mubende Regional Referral Hospital Opinion Unqualified", "SUMMARY OF KEY FINDINGS \u2022 The hospital remained with an unspent balance of UGX.0.926bn representing an absorption level of 88.3%. \u2022 I noted that out of the five outputs assessed, three outputs were fully implemented; one output was partially implemented while the other output was not implemented. \u2022 I observed delays in the construction of the paediatric ward, surgical ward and mortuary for works valued at UGX.7.483bn with an expired contract date of 2017. \u2022 The hospital lacked 72 key medical equipment expected in a hospital by minimum standards. \u2022 There were noted challenges of drug stock outs of vital medicines like Oxytocin, Gentamicin, Ceftriaxone, Paracetamol among others and shortfalls in drug deliveries of up to UGX.40,368,149 during the financial year. \u2022 The hospital has 11 vacant positions for medical consultants. \u2022 Shortcomings were noted in the implementation of the provisions in the circular standing instructions on staff performance management. The gaps identified include non-completion of Performance Agreements and performance plans, no quarterly reviews undertaken, no appraisals, no performance improvement plans prepared, non-submission of reports on Performance Agreements, Performance Appraisals, Performance Improvement Plans to MoPS, lack of mechanism to monitor staff attendance and lack of client charter."], "type": "table"}}, {"content": "257", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 270, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["1", "Pallisa DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX. 1.26Bn representing 4% of the budget. Further, the entity remained with unspent balance of UGX.1.62Bn representing an absorption level of 95%. \u2022 298 acres of district land on seven locations had not been secured by titling hence the risk of encroachment and disputes. \u2022 Works under UgIFT were ongoing with work at the health centre nearing completion. Four- stance pit latrine was still under construction and not yet roofed. I further noted delay in the procurement process and late release of funds for one seed school. \u2022 Under NUSAF-3 UGX.1.99bn was used to support 63 beneficiary sub-groups. I noted that UGX.106,776,706 had not been withdrawn from the bank accounts, which negatively affects project implementation. Furthermore I noted delay in project Implementation of some sub projects such as the construction of the access roads, planting of trees and fish caging. \u2022 Under URF field inspection revealed sections of some roads were poorly maintained, silted culverts affecting the flow of rainwater. In addition, I observed emergency works were undertaken at a cost of UGX.61,227,380 of the budget leading to an excess funding by UGX.20,228,380. \u2022 I noted that out of UGX.405,900,870 of YLP expected to have been repaid by close of the 2018/2019 financial year, only UGX.51,451,000 had been recovered, leaving an outstanding balance of UGX.372,172,364 \u2022 Under UWEP, projects funds worth UGX.220m meant for F/Y 2017/2018, were released to the district in the third quarter of the F/Y 2018/2019 resulting into delayed implementation of the projects. Further, I noted that groups repaid only 12.5% of the total of disbursement in the FYs 2016/17 to 2018/19."], ["2", "Manafwa DLG **Opinion** Qualified", "\u2022 I noted Unsupported cash and cash equivalents UGX.339,041,288  \u2022 I also noted that UGX.79,981,474 in respect of payables compensations was not supported. \u2022 Statement did not disclose the contingent liabilities in relation to ongoing legal proceedings amounting to UGX.117m. \u2022 There was a shortfall in releases amounting to UGX. 1.49Bn representing 5.5% under release. Further, the entity remained with unspent balance of UGX.0.17Bn representing an absorption level of 99.19%. \u2022 Works under UgIFT were ongoing however pending works included roofing and ceiling works, fixing of doors and windows, plastering, electrical installations, plumbing, Septic tank, soak pit, placenta pit, and finishing works, among others. Further, I noted absence of performance security and Failure to test materials used in the construction work. \u2022 Under NUSAF-3 UGX 523,000,000 to cater for 20 sub-projects for the period 2018/2019. Out of the 5 subprojects inspected I noted that biometric machines for finger print reading sometimes failed and members did not maintain proper records of expenditure and no internal audit was done. \u2022 Under URF field inspection revealed sections of some roads the road lacked side drains; leading to flooding roadsides, Bushy road sides, and road surface was slippery due to a lack of gravel. \u2022 I noted a recovery rate of only 20% of the funds disbursed in FY 2014/2015 to 2015/2016."], ["3", "Mbale MC **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.0.205Bn representing 1% under release. Further, the entity overspent UGX.5.53bn representing absorption level of 129%. \u2022 UGX.436,770,000 was lost due to failure by Council to award contracts on time, while UGX.126,770,000 was lost as a result of awarding contracts below assessed market prices. \u2022 Out of the three projects inspected (UgIFT, UWEP and USMID programme) 5 outputs were partially implemented and 2 were fully implemented. \u2022 The entity had financial loss of UGX.136 million through loan penalties due to late payments"]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 271, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["SN", "LOCAL GOVERNMENTS MBALE BRANCH", "SUMMARY OF KEY FINDINGS"], "type": "table"}}, {"content": [["1", "Pallisa DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX. 1.26Bn representing 4% of the budget. Further, the entity remained with unspent balance of UGX.1.62Bn representing an absorption level of 95%. \u2022 298 acres of district land on seven locations had not been secured by titling hence the risk of encroachment and disputes. \u2022 Works under UgIFT were ongoing with work at the health centre nearing completion. Four- stance pit latrine was still under construction and not yet roofed. I further noted delay in the procurement process and late release of funds for one seed school. \u2022 Under NUSAF-3 UGX.1.99bn was used to support 63 beneficiary sub-groups. I noted that UGX.106,776,706 had not been withdrawn from the bank accounts, which negatively affects project implementation. Furthermore I noted delay in project Implementation of some sub projects such as the construction of the access roads, planting of trees and fish caging. \u2022 Under URF field inspection revealed sections of some roads were poorly maintained, silted culverts affecting the flow of rainwater. In addition, I observed emergency works were undertaken at a cost of UGX.61,227,380 of the budget leading to an excess funding by UGX.20,228,380. \u2022 I noted that out of UGX.405,900,870 of YLP expected to have been repaid by close of the 2018/2019 financial year, only UGX.51,451,000 had been recovered, leaving an outstanding balance of UGX.372,172,364 \u2022 Under UWEP, projects funds worth UGX.220m meant for F/Y 2017/2018, were released to the district in the third quarter of the F/Y 2018/2019 resulting into delayed implementation of the projects. Further, I noted that groups repaid only 12.5% of the total of disbursement in the FYs 2016/17 to 2018/19."], ["2", "Manafwa DLG **Opinion** Qualified", "\u2022 I noted Unsupported cash and cash equivalents UGX.339,041,288  \u2022 I also noted that UGX.79,981,474 in respect of payables compensations was not supported. \u2022 Statement did not disclose the contingent liabilities in relation to ongoing legal proceedings amounting to UGX.117m. \u2022 There was a shortfall in releases amounting to UGX. 1.49Bn representing 5.5% under release. Further, the entity remained with unspent balance of UGX.0.17Bn representing an absorption level of 99.19%. \u2022 Works under UgIFT were ongoing however pending works included roofing and ceiling works, fixing of doors and windows, plastering, electrical installations, plumbing, Septic tank, soak pit, placenta pit, and finishing works, among others. Further, I noted absence of performance security and Failure to test materials used in the construction work. \u2022 Under NUSAF-3 UGX 523,000,000 to cater for 20 sub-projects for the period 2018/2019. Out of the 5 subprojects inspected I noted that biometric machines for finger print reading sometimes failed and members did not maintain proper records of expenditure and no internal audit was done. \u2022 Under URF field inspection revealed sections of some roads the road lacked side drains; leading to flooding roadsides, Bushy road sides, and road surface was slippery due to a lack of gravel. \u2022 I noted a recovery rate of only 20% of the funds disbursed in FY 2014/2015 to 2015/2016."], ["3", "Mbale MC **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.0.205Bn representing 1% under release. Further, the entity overspent UGX.5.53bn representing absorption level of 129%. \u2022 UGX.436,770,000 was lost due to failure by Council to award contracts on time, while UGX.126,770,000 was lost as a result of awarding contracts below assessed market prices. \u2022 Out of the three projects inspected (UgIFT, UWEP and USMID programme) 5 outputs were partially implemented and 2 were fully implemented. \u2022 The entity had financial loss of UGX.136 million through loan penalties due to late payments"]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 271, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["SN", "LOCAL GOVERNMENTS MBALE BRANCH", "SUMMARY OF KEY FINDINGS"], "type": "table"}}, {"content": "258", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 271, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["4", "Butebo DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.0.343Bn representing 2.3% under release. Further, the entity remained with unspent balance of UGX.1.452Bn representing an absorption level of 89.9%. \u2022 Out of the five projects inspected (UgIFT, Water, NUSAF 3, YLP and UWEP programme) (4) were fully achieved while (3) were partially implemented and 2 were not implemented. \u2022 Works under UgIFT were ongoing however there was delayed construction works at Kanginima Seed Secondary School and delay in procurement process which resulted in delay of 7 months from the plan. \u2022 Out of the 2 subprojects inspected I noted that most of the ground nuts supplied and planted had been affected by the dry weather, late release of funds could not enable some projects to take off like the Raraka tree planting project and one member disappeared with the group funds. \u2022 Under URF field inspection revealed sections of the road required offshoots. \u2022 I noted a recovery rate of only 6.3% of the funds disbursed in FY 2015/2016 to 2017/2018. One of the youth group inspected did not keep books of accounts. \u2022 Under UWEP, projects I noted that groups repaid only 19% of the total of disbursement in the FYs 2016/17."], ["5", "Bulambuli DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.0.38Bn representing 1.7% under release. Further, I noted that supplementary funds of UGX. 85,406,257 (54%) relating to local revenue had not been approved by council and the entity remained with unspent balance of UGX.0.047Bn representing an absorption level of 100.2%. \u2022 Under URF field inspection revealed some incomplete works such as Drainage works, culvert cleaning, failure to test road construction materials and late transfer of funds to lower local governments \u2022 Works under UgIFT were ongoing with however there was delayed Completion of the upgrade of Bunambutye Health centre II to health centre III and no evidence of materials testing was availed \u2022 Under NUSAF-3 UGX.0.907Bn was used to support beneficiary sub-groups. I noted that there was delayed transfer of funds to the district, poorly implemented projects, Non-Functional Project Assets and project had not been audited by the internal audit department \u2022 I noted a recovery rate of only 39% of the funds disbursed in FY 2015/2016 to 2017/2018. In addition one youth group could not be traced. \u2022 Under UWEP, projects I noted that groups repaid 72% of the total of disbursement in the FYs 2016/17 to 2018/19. One of the women groups received project funds which were shared amongst group members."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 272, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["SN", "LOCAL GOVERNMENTS", "SUMMARY OF KEY FINDINGS \u2022 Under URF field inspection revealed that sections of Nkoma Drive were already developing trenches/gullies.. \u2022 Under USMID I noted shoddy works yet the contractors had been paid 80% of works. Further, the drainage works were incomplete; street lights, road marks and sign posts had not been done on all the roads. \u2022 I observed that UGX.113,920,000 was disbursed to 12 groups under YLP without signing any financing agreements, repayment schedules and project files \u2022 I noted a recovery rate of only 9.3% of the funds disbursed in FY 2014/2015 and 2015/2016. In one group the chairman disappeared with the funds, two youth groups could not be traced while one bought poor breads of poultry birds which died. \u2022 Under UWEP, projects funds worth UGX.166m were disbursed for F/Y 2017/2018, however, only 17% had been recovered leaving a balance of UGX.138,356,200 outstanding. \u2022 I noted that the vehicle LG 0144-30 Fortuner attached to the Office of the Mayor that got involved in an accident has not been repaired. \u2022 UGX.22,975,648 has been paid to irregular to two staff that absconded from duty."], "type": "table"}}, {"content": [["4", "Butebo DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.0.343Bn representing 2.3% under release. Further, the entity remained with unspent balance of UGX.1.452Bn representing an absorption level of 89.9%. \u2022 Out of the five projects inspected (UgIFT, Water, NUSAF 3, YLP and UWEP programme) (4) were fully achieved while (3) were partially implemented and 2 were not implemented. \u2022 Works under UgIFT were ongoing however there was delayed construction works at Kanginima Seed Secondary School and delay in procurement process which resulted in delay of 7 months from the plan. \u2022 Out of the 2 subprojects inspected I noted that most of the ground nuts supplied and planted had been affected by the dry weather, late release of funds could not enable some projects to take off like the Raraka tree planting project and one member disappeared with the group funds. \u2022 Under URF field inspection revealed sections of the road required offshoots. \u2022 I noted a recovery rate of only 6.3% of the funds disbursed in FY 2015/2016 to 2017/2018. One of the youth group inspected did not keep books of accounts. \u2022 Under UWEP, projects I noted that groups repaid only 19% of the total of disbursement in the FYs 2016/17."], ["5", "Bulambuli DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.0.38Bn representing 1.7% under release. Further, I noted that supplementary funds of UGX. 85,406,257 (54%) relating to local revenue had not been approved by council and the entity remained with unspent balance of UGX.0.047Bn representing an absorption level of 100.2%. \u2022 Under URF field inspection revealed some incomplete works such as Drainage works, culvert cleaning, failure to test road construction materials and late transfer of funds to lower local governments \u2022 Works under UgIFT were ongoing with however there was delayed Completion of the upgrade of Bunambutye Health centre II to health centre III and no evidence of materials testing was availed \u2022 Under NUSAF-3 UGX.0.907Bn was used to support beneficiary sub-groups. I noted that there was delayed transfer of funds to the district, poorly implemented projects, Non-Functional Project Assets and project had not been audited by the internal audit department \u2022 I noted a recovery rate of only 39% of the funds disbursed in FY 2015/2016 to 2017/2018. In addition one youth group could not be traced. \u2022 Under UWEP, projects I noted that groups repaid 72% of the total of disbursement in the FYs 2016/17 to 2018/19. One of the women groups received project funds which were shared amongst group members."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 272, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["SN", "LOCAL GOVERNMENTS", "SUMMARY OF KEY FINDINGS \u2022 Under URF field inspection revealed that sections of Nkoma Drive were already developing trenches/gullies.. \u2022 Under USMID I noted shoddy works yet the contractors had been paid 80% of works. Further, the drainage works were incomplete; street lights, road marks and sign posts had not been done on all the roads. \u2022 I observed that UGX.113,920,000 was disbursed to 12 groups under YLP without signing any financing agreements, repayment schedules and project files \u2022 I noted a recovery rate of only 9.3% of the funds disbursed in FY 2014/2015 and 2015/2016. In one group the chairman disappeared with the funds, two youth groups could not be traced while one bought poor breads of poultry birds which died. \u2022 Under UWEP, projects funds worth UGX.166m were disbursed for F/Y 2017/2018, however, only 17% had been recovered leaving a balance of UGX.138,356,200 outstanding. \u2022 I noted that the vehicle LG 0144-30 Fortuner attached to the Office of the Mayor that got involved in an accident has not been repaired. \u2022 UGX.22,975,648 has been paid to irregular to two staff that absconded from duty."], "type": "table"}}, {"content": "259", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 272, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["6", "Kween DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.0.767Bn representing 5% under release. \u2022 Out of the four projects inspected (UgIFT, URF, NUSAF 3, and YLP) (2) were fully achieved while (3) were partially implemented. \u2022 Under NUSAF-3, the entity budgeted for 29 sub-projects requiring UGX.927m however only 18 subprojects with a budget of UGX.518m were funded resulting in a funding gap of UGX.409m for 11 projects. Further, I noted that Community Watershed Committees maintained inadequate records \u2022 Under URF, field inspection revealed that some sections of the road shoulders had been washed away by floods. \u2022 I noted a recovery rate of only 5% of the funds disbursed in FY 2016/2017 under YLP. \u2022 Under water for production inspection revealed that 5% of the water sources were non- functional \u2022 It was observed that out of 1907 approved positions, only 1,528 positions were filled leaving 376 vacant representing 19.98% staff gaps."], ["7", "Tororo DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.4.626Bn representing 8% under release. Further, the entity remained with unspent balance of UGX.3.733Bn representing an absorption level of 92.9%. \u2022 Out of the five projects inspected (UgIFT, URF, NUSAF 3, YLP and UWEP programme) (2) were fully achieved while (3) were partially implemented. \u2022 I observed that the DEC was not fully constituted. \u2022 Works under UgIFT were ongoing however there were delayed works in education and health component and use of expired performance security. \u2022 Under URF field inspection revealed bridge had already broken and gravel washed away by floods and some sections of the roads that had been worked on were already in a bad state. \u2022 The district budgeted for UGX.707,480,965 for YLP, out of which UGX.543,724,000 (77%) was received, leading to an underfunding of UGX.163,756,965 (23%). I also noted a recovery rate of only 30% of the funds disbursed in FY 2014/2015 to 2016/2017. \u2022 I noted shoddy works in the construction of administration block at Molo Sub-county. \u2022 Five staff and heads of departments had exceeded the duration of their acting appointments."], ["8", "Sironko DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX. 2.087bn representing 7% of the budget. Further, the entity remained with unspent balance of UGX.1.051bn representing an absorption level of 96.4%. \u2022 The entity did not quantity its outputs therefore making it difficult to analyse the extent of attainment of planned outputs. Furthermore, key outputs such as the construction of Beteeza Seed Secondary School, upgrading of Bundenge Health Centre II and drilling of boreholes had not been implemented. \u2022 Under NUSAF-3 UGX.1.354bn was used to support 45 beneficiary sub-groups. Out of the 6 subprojects inspected I noted incomplete works on CARs, absence of project documents/information, inadequate sensitization, Loss of heifers due to east coast fever, faulire to utilise project assets as per giudelines and failure to audit quarter four of ghe project. \u2022 Under URF I noted failure to implement planned projects and failure to conduct material testing. In addition field inspection revealed that projects were behind schedule and some works were incomplete. \u2022 Works under UgIFT were ongoing however some works were behind schedule. I also noted failure by contractor to follow the work plan by plastering of walls before roofing, failure to undertake materials testing and absence of Personal Protective Equipment/Gear"]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 273, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["SN", "LOCAL GOVERNMENTS", "SUMMARY OF KEY FINDINGS \u2022 Inspection of Muyembe health centre IV in Muyembe Sub-County revealed that there was lack of essential equipment and oxygen equipment in the wards \u2022 Under water for production the district planned to drill 9 boreholes however only two boreholes were successful."], "type": "table"}}, {"content": [["6", "Kween DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.0.767Bn representing 5% under release. \u2022 Out of the four projects inspected (UgIFT, URF, NUSAF 3, and YLP) (2) were fully achieved while (3) were partially implemented. \u2022 Under NUSAF-3, the entity budgeted for 29 sub-projects requiring UGX.927m however only 18 subprojects with a budget of UGX.518m were funded resulting in a funding gap of UGX.409m for 11 projects. Further, I noted that Community Watershed Committees maintained inadequate records \u2022 Under URF, field inspection revealed that some sections of the road shoulders had been washed away by floods. \u2022 I noted a recovery rate of only 5% of the funds disbursed in FY 2016/2017 under YLP. \u2022 Under water for production inspection revealed that 5% of the water sources were non- functional \u2022 It was observed that out of 1907 approved positions, only 1,528 positions were filled leaving 376 vacant representing 19.98% staff gaps."], ["7", "Tororo DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.4.626Bn representing 8% under release. Further, the entity remained with unspent balance of UGX.3.733Bn representing an absorption level of 92.9%. \u2022 Out of the five projects inspected (UgIFT, URF, NUSAF 3, YLP and UWEP programme) (2) were fully achieved while (3) were partially implemented. \u2022 I observed that the DEC was not fully constituted. \u2022 Works under UgIFT were ongoing however there were delayed works in education and health component and use of expired performance security. \u2022 Under URF field inspection revealed bridge had already broken and gravel washed away by floods and some sections of the roads that had been worked on were already in a bad state. \u2022 The district budgeted for UGX.707,480,965 for YLP, out of which UGX.543,724,000 (77%) was received, leading to an underfunding of UGX.163,756,965 (23%). I also noted a recovery rate of only 30% of the funds disbursed in FY 2014/2015 to 2016/2017. \u2022 I noted shoddy works in the construction of administration block at Molo Sub-county. \u2022 Five staff and heads of departments had exceeded the duration of their acting appointments."], ["8", "Sironko DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX. 2.087bn representing 7% of the budget. Further, the entity remained with unspent balance of UGX.1.051bn representing an absorption level of 96.4%. \u2022 The entity did not quantity its outputs therefore making it difficult to analyse the extent of attainment of planned outputs. Furthermore, key outputs such as the construction of Beteeza Seed Secondary School, upgrading of Bundenge Health Centre II and drilling of boreholes had not been implemented. \u2022 Under NUSAF-3 UGX.1.354bn was used to support 45 beneficiary sub-groups. Out of the 6 subprojects inspected I noted incomplete works on CARs, absence of project documents/information, inadequate sensitization, Loss of heifers due to east coast fever, faulire to utilise project assets as per giudelines and failure to audit quarter four of ghe project. \u2022 Under URF I noted failure to implement planned projects and failure to conduct material testing. In addition field inspection revealed that projects were behind schedule and some works were incomplete. \u2022 Works under UgIFT were ongoing however some works were behind schedule. I also noted failure by contractor to follow the work plan by plastering of walls before roofing, failure to undertake materials testing and absence of Personal Protective Equipment/Gear"]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 273, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["SN", "LOCAL GOVERNMENTS", "SUMMARY OF KEY FINDINGS \u2022 Inspection of Muyembe health centre IV in Muyembe Sub-County revealed that there was lack of essential equipment and oxygen equipment in the wards \u2022 Under water for production the district planned to drill 9 boreholes however only two boreholes were successful."], "type": "table"}}, {"content": "260", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 273, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["9", "Bukwo DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.0.156Bn representing 0.3% under release. Further, the entity remained with unspent balance of UGX.0.365Bn representing an absorption level of 98%. \u2022 I observed that pension arrears worth UGX.150,590,857 were settled during the year, against an appropriation of UGX.67,722,000. \u2022 The district continued paying salaries and allowances to persons who had retired from district service and also continued to pay full salaries and allowances to employees who had been interdicted and should have been paid half of their salary. \u2022 Out of the budgeted local revenue of UGX.221,066,000, the district collected only UGX.114,960,639 (52%) resulting into a shortfall of UGX.106,105,361 (48%). \u2022 Works under UgIFT were ongoing however, I noted delayed implementation of activities, payment for unimplemented works, expired performance securities, failure to test materials used in the construction work and irregular certification of works. \u2022 Under NUSAF-3 UGX.417,771,275 was used to cater for 14 sub projects however no internal audit was done for the project during the year. \u2022 Under URF field inspection revealed failure to carry out road works as planned. In addition I observed the roads lacked side drains, were overgrown/bushy, slippery road surface due to lack of gravel and spot gravelling was carried out."], ["10", "Butaleja DLG **Opinion** Qualified", "\u2022 I noted accumulated unsupported pension liabilities worth UGX.1,597,077,917, in the financial statements.  \u2022 I also noted YLP and UWEP receivables and payables figures of UGX.856,043,904 and UGX.875,544,255 respectively were not supported by schedules.  \u2022 There was a shortfall in releases amounting to UGX.2.779Bn representing 9% under release. Further, the entity over spent UGX.0.542Bn representing an absorption level of 101.9%.  \u2022 Out of the five projects inspected (UgIFT, URF, NUSAF 3, YLP and UWEP programme) (3) were fully achieved while (2) were partially implemented.  \u2022 Out of the budgeted donor funding of UGX 0.09bn only UGX 0.015bn representing 16.93% was received.  \u2022 Seven pieces of land of district had not been secured by titling hence the risk of encroachment and disputes.  \u2022 I noted that the Construction of administration block had stalled  \u2022 Under NUSAF, I noted delayed implementation of projects, and absence of internal audit  \u2022 I noted during inspection YLP that youth groups received project funds however no records on group management, group management and selection, repayment schedule were availed.  \u2022 Under UWEP, projects out of UGX.150m released in 2016/2017, I noted that groups repaid only 13% of the total of disbursement in the FYs 2016/17 to 2018/19."], ["11", "Namisindwa DLG **Opinion**", "\u2022 There was a shortfall in releases amounting to UGX. 1.832Bn representing 8% under release. \u2022 Out of the five projects inspected (UgIFT, URF, NUSAF 3,) (1) was fully achieved while (3) were partially implemented."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 274, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["SN", "LOCAL GOVERNMENTS", "SUMMARY OF KEY FINDINGS \u2022 I noted YLP budgeted to receive UGX.414,490,000 for 35 projects however, only UGX.413,840,000 was received leaving a balance of UGX.650,000. \u2022 Out of an approved structure of 597 staff, the district had 205 (34%) positions filled, leaving a staffing gap of 392 (66%). \u2022 The entity did not operationalize Mutufu market area and slaughter slab, did not operationalize the district medical stores facility, lost two hydra form machines donated by OPM and failed to avail lease agreements or copies of the sale agreements for most of the Council land sold or leased to private developers. \u2022 The entity did not implement the planned gravity flow schemes. In addition, I noted during inspection that borehole was non-functioning and stagnant water in the spring due to clogging of the trenches."], "type": "table"}}, {"content": [["9", "Bukwo DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.0.156Bn representing 0.3% under release. Further, the entity remained with unspent balance of UGX.0.365Bn representing an absorption level of 98%. \u2022 I observed that pension arrears worth UGX.150,590,857 were settled during the year, against an appropriation of UGX.67,722,000. \u2022 The district continued paying salaries and allowances to persons who had retired from district service and also continued to pay full salaries and allowances to employees who had been interdicted and should have been paid half of their salary. \u2022 Out of the budgeted local revenue of UGX.221,066,000, the district collected only UGX.114,960,639 (52%) resulting into a shortfall of UGX.106,105,361 (48%). \u2022 Works under UgIFT were ongoing however, I noted delayed implementation of activities, payment for unimplemented works, expired performance securities, failure to test materials used in the construction work and irregular certification of works. \u2022 Under NUSAF-3 UGX.417,771,275 was used to cater for 14 sub projects however no internal audit was done for the project during the year. \u2022 Under URF field inspection revealed failure to carry out road works as planned. In addition I observed the roads lacked side drains, were overgrown/bushy, slippery road surface due to lack of gravel and spot gravelling was carried out."], ["10", "Butaleja DLG **Opinion** Qualified", "\u2022 I noted accumulated unsupported pension liabilities worth UGX.1,597,077,917, in the financial statements.  \u2022 I also noted YLP and UWEP receivables and payables figures of UGX.856,043,904 and UGX.875,544,255 respectively were not supported by schedules.  \u2022 There was a shortfall in releases amounting to UGX.2.779Bn representing 9% under release. Further, the entity over spent UGX.0.542Bn representing an absorption level of 101.9%.  \u2022 Out of the five projects inspected (UgIFT, URF, NUSAF 3, YLP and UWEP programme) (3) were fully achieved while (2) were partially implemented.  \u2022 Out of the budgeted donor funding of UGX 0.09bn only UGX 0.015bn representing 16.93% was received.  \u2022 Seven pieces of land of district had not been secured by titling hence the risk of encroachment and disputes.  \u2022 I noted that the Construction of administration block had stalled  \u2022 Under NUSAF, I noted delayed implementation of projects, and absence of internal audit  \u2022 I noted during inspection YLP that youth groups received project funds however no records on group management, group management and selection, repayment schedule were availed.  \u2022 Under UWEP, projects out of UGX.150m released in 2016/2017, I noted that groups repaid only 13% of the total of disbursement in the FYs 2016/17 to 2018/19."], ["11", "Namisindwa DLG **Opinion**", "\u2022 There was a shortfall in releases amounting to UGX. 1.832Bn representing 8% under release. \u2022 Out of the five projects inspected (UgIFT, URF, NUSAF 3,) (1) was fully achieved while (3) were partially implemented."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 274, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["SN", "LOCAL GOVERNMENTS", "SUMMARY OF KEY FINDINGS \u2022 I noted YLP budgeted to receive UGX.414,490,000 for 35 projects however, only UGX.413,840,000 was received leaving a balance of UGX.650,000. \u2022 Out of an approved structure of 597 staff, the district had 205 (34%) positions filled, leaving a staffing gap of 392 (66%). \u2022 The entity did not operationalize Mutufu market area and slaughter slab, did not operationalize the district medical stores facility, lost two hydra form machines donated by OPM and failed to avail lease agreements or copies of the sale agreements for most of the Council land sold or leased to private developers. \u2022 The entity did not implement the planned gravity flow schemes. In addition, I noted during inspection that borehole was non-functioning and stagnant water in the spring due to clogging of the trenches."], "type": "table"}}, {"content": "261", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 274, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["12", "Mbale RRH **Opinion** Qualified", "\u2022 I noted Prior year adjustment of UGX 319,505,451 in the financial statements that were not adequately supported. \u2022 There was a shortfall in releases amounting to UGX. 0.158Bn representing 1% under release. Further, the entity remained with unspent balance of UGX.2.526Bn representing an absorption level of 81%. \u2022 I noted that the Hospital received off-budget financing to a tune of UGX.586, 957,355 contrary to the PFMA. \u2022 Out of the 12 members of Senior Management, only 5 had signed Performance Agreements as at 31st July, 2019 contrary to the standing instruction issued by the Ministry of Public service. \u2022 Management did not submit signed performance agreement reports to the Ministry of Public Service by 15th September 2019 contrary to the standing instruction issued by the Ministry of Public service. \u2022 I observed that out of 352 staff in post at the beginning of the financial year 2018/19, only 250 staff filled in their annual performance plans implying that 102 Staff did not undertake the activity. \u2022 Out of 352 staff in post at the beginning of the financial year, only 155 staff completed the performance appraisals and 197 staff did not undertake the activity. \u2022 Management did not submit a report on performance appraisals to the Ministry of Public Service by 15th September 2018 as required by the guidelines. \u2022 Stores documents revealed that the Hospital had stock outs of tracer medicines during the year with stock out days ranging from a month to more than six months \u2022 Under infrastructure and Equipment status I noted that the hospital had three x-ray machines but only one was functioning and did not have a CT scan. \u2022 Inspection of the hospital mortuary revealed that the there are no Trollies for use in the mortuary, no beds on which dead bodies are placed, no fridge for storage of dead bodies and no formalin used to treat dead bodies."], ["13", "Kapchorwa DLG **Opinion** Qualified", "\u2022 There was a shortfall in releases amounting to UGX.3.05Bn representing 13% under release. Further, the entity remained with unspent balance of UGX.0.023Bn representing an absorption level of 99.8%. \u2022 UGX.503,832,732 was mischarged by the entity. \u2022 Out of the five projects inspected (UgIFT, URF, NUSAF 3, YLP and UWEP programme) (3) were fully achieved while (2) were partially implemented. \u2022 Works under UgIFT were incomplete with roofing and rain water disposal, Plastering, external and internal finishes, joinery fittings, electrical and mechanical installations, VIP 4 stance pit latrine and improvements on existing OPD not yet done. Further, I noted failure by contractor to; follow the work programme, undertake material tests and failure to provide Personal Protective Equipment/Gear (PPE). \u2022 Under NUSAF-3 UGX.682,448,000 was used to support 32 beneficiary sub-groups. I noted that some of the project assets were non-functioning."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 275, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["SN", "LOCAL GOVERNMENTS Unqualified", "SUMMARY OF KEY FINDINGS \u2022 Works under UgIFT had been abandoned and the excavated foundation was filled with soil. Further I noted delayed implementation of some projects, lack of work programs/works implementation schedule and lack of material tests results. \u2022 Under NUSAF-3 UGX.1,072,186,000 was used to support beneficiary sub-groups. I noted that the district intermingled the project funds with other programmes, procurements undertaken without approved procurement plan and the project was not audited by internal audit. I also noted low attendance during weekly meetings, Poor saving culture. \u2022 Under UWEP, projects funds worth UGX.107m meant for F/Y 2017/2018, three months later on 12th February, 2019 resulting into delayed implementation of the projects. Further, I noted that groups repaid only 5% of the total of disbursement in the FYs 2016/17 to 2018/19. \u2022 The District has an approved staffing structure of 135 staff only 64 (47%) were filled leaving 71 vacant."], "type": "table"}}, {"content": [["12", "Mbale RRH **Opinion** Qualified", "\u2022 I noted Prior year adjustment of UGX 319,505,451 in the financial statements that were not adequately supported. \u2022 There was a shortfall in releases amounting to UGX. 0.158Bn representing 1% under release. Further, the entity remained with unspent balance of UGX.2.526Bn representing an absorption level of 81%. \u2022 I noted that the Hospital received off-budget financing to a tune of UGX.586, 957,355 contrary to the PFMA. \u2022 Out of the 12 members of Senior Management, only 5 had signed Performance Agreements as at 31st July, 2019 contrary to the standing instruction issued by the Ministry of Public service. \u2022 Management did not submit signed performance agreement reports to the Ministry of Public Service by 15th September 2019 contrary to the standing instruction issued by the Ministry of Public service. \u2022 I observed that out of 352 staff in post at the beginning of the financial year 2018/19, only 250 staff filled in their annual performance plans implying that 102 Staff did not undertake the activity. \u2022 Out of 352 staff in post at the beginning of the financial year, only 155 staff completed the performance appraisals and 197 staff did not undertake the activity. \u2022 Management did not submit a report on performance appraisals to the Ministry of Public Service by 15th September 2018 as required by the guidelines. \u2022 Stores documents revealed that the Hospital had stock outs of tracer medicines during the year with stock out days ranging from a month to more than six months \u2022 Under infrastructure and Equipment status I noted that the hospital had three x-ray machines but only one was functioning and did not have a CT scan. \u2022 Inspection of the hospital mortuary revealed that the there are no Trollies for use in the mortuary, no beds on which dead bodies are placed, no fridge for storage of dead bodies and no formalin used to treat dead bodies."], ["13", "Kapchorwa DLG **Opinion** Qualified", "\u2022 There was a shortfall in releases amounting to UGX.3.05Bn representing 13% under release. Further, the entity remained with unspent balance of UGX.0.023Bn representing an absorption level of 99.8%. \u2022 UGX.503,832,732 was mischarged by the entity. \u2022 Out of the five projects inspected (UgIFT, URF, NUSAF 3, YLP and UWEP programme) (3) were fully achieved while (2) were partially implemented. \u2022 Works under UgIFT were incomplete with roofing and rain water disposal, Plastering, external and internal finishes, joinery fittings, electrical and mechanical installations, VIP 4 stance pit latrine and improvements on existing OPD not yet done. Further, I noted failure by contractor to; follow the work programme, undertake material tests and failure to provide Personal Protective Equipment/Gear (PPE). \u2022 Under NUSAF-3 UGX.682,448,000 was used to support 32 beneficiary sub-groups. I noted that some of the project assets were non-functioning."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 275, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["SN", "LOCAL GOVERNMENTS Unqualified", "SUMMARY OF KEY FINDINGS \u2022 Works under UgIFT had been abandoned and the excavated foundation was filled with soil. Further I noted delayed implementation of some projects, lack of work programs/works implementation schedule and lack of material tests results. \u2022 Under NUSAF-3 UGX.1,072,186,000 was used to support beneficiary sub-groups. I noted that the district intermingled the project funds with other programmes, procurements undertaken without approved procurement plan and the project was not audited by internal audit. I also noted low attendance during weekly meetings, Poor saving culture. \u2022 Under UWEP, projects funds worth UGX.107m meant for F/Y 2017/2018, three months later on 12th February, 2019 resulting into delayed implementation of the projects. Further, I noted that groups repaid only 5% of the total of disbursement in the FYs 2016/17 to 2018/19. \u2022 The District has an approved staffing structure of 135 staff only 64 (47%) were filled leaving 71 vacant."], "type": "table"}}, {"content": "262", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 275, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["14", "Mbale DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.2.868Bn representing 6% under release. Further, the entity remained with unspent balance of UGX.0.517Bn representing an absorption level of 98.9%. \u2022 Out of the five projects inspected (UgIFT, URF, NUSAF 3, YLP and UWEP programme) (2) were fully achieved while (3) were partially implemented. \u2022 I noted that the district had rent arrears of UGX.1,440,564,935 at the closure of the year under review. \u2022 Works under UgIFT were ongoing with casting of the staff houses and the multipurpose hall complete. 2 stance VIP latrine had not been erected yet funds of UGX.31,031,000 had already been paid for it. \u2022 Under URF, field inspection revealed sections of some roads required mechanized maintenance and some sections of the road were narrow. \u2022 I noted that under YLP there was a recovery rate of only 11% of the funds disbursed in FY 2014/2015 to 2015/2016. Besides review of the program document revealed no business plans and consequently, project planning and execution was haphazard. \u2022 Under UWEP, I noted that groups repaid only 26.5% of the total of disbursement of FY 2017/18."], ["15", "Budaka DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX. 0.69Bn representing 3% under release. Further, the entity remained with unspent balance of UGX.0.752bn representing an absorption level of 96.6%. \u2022 Under UgIFT, I noted that although works were ongoing, works at one site had been abandoned. \u2022 Under NUSAF-3 UGX.0.681bn was disbursed late, the project was not audited and some project assets were non-functional. Further, I noted that the NUSAF Community facilitators shared one motorcycle for 7 watersheds, which may hamper the Community Facilitators from undertaking their roles properly. \u2022 I noted a recovery rate of only 13% of the funds disbursed since the start of programme. \u2022 Under UWEP, projects funds, the district had budgeted for a total amount of UGX.178,387,000 for the financial year 2018/2019 and only received UGX.91,312,684, leading to a shortfall of UGX.87,074,316. Further, I noted that groups repaid only 16% of the total of disbursement in the FYs 2016/17 to 2018/19. \u2022 Under capitation grant I noted Sapiri Primary School did not prepare financial statements. \u2022 Out of 95 pieces of land, 57 entities representing 60% of the district lacked land titles for the land where council properties are located."], ["16", "Tororo MC **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX. 1.293Bn representing 9% under release. Further, the entity remained with unspent balance of UGX.0.350Bn representing an absorption level of 97%. \u2022 Out of the three projects inspected (UgIFT, URF, YLP), (1) was fully achieved while (2) were partially implemented. \u2022 Under URF field inspection of Kyamwinula road, revealed that the road was already in bad shape and part of Jowedi road was developing cracks."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 276, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["SN", "LOCAL GOVERNMENTS", "SUMMARY OF KEY FINDINGS \u2022 Under URF field inspection revealed some points lacked off shoots to drain away running water and some works had been spoilt by the heavy rains making some sections almost impassable. \u2022 I noted under YLP a recovery rate of only 26% of the funds disbursed in FY 2015/2016 to 2017/2018. In addition to this some of the 2014/15 YLP groups that received UGX.76,923,000 were no longer in existence \u2022 Under UWEP, I noted that groups repaid only 39% of the total of disbursement in the FYs 2016/17 to 2018/19. \u2022 The District council had an approved structure of 1034 staff (excluding secondary school teachers) but only 807(78%) positions were filled, leaving 227 vacant."], "type": "table"}}, {"content": [["14", "Mbale DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.2.868Bn representing 6% under release. Further, the entity remained with unspent balance of UGX.0.517Bn representing an absorption level of 98.9%. \u2022 Out of the five projects inspected (UgIFT, URF, NUSAF 3, YLP and UWEP programme) (2) were fully achieved while (3) were partially implemented. \u2022 I noted that the district had rent arrears of UGX.1,440,564,935 at the closure of the year under review. \u2022 Works under UgIFT were ongoing with casting of the staff houses and the multipurpose hall complete. 2 stance VIP latrine had not been erected yet funds of UGX.31,031,000 had already been paid for it. \u2022 Under URF, field inspection revealed sections of some roads required mechanized maintenance and some sections of the road were narrow. \u2022 I noted that under YLP there was a recovery rate of only 11% of the funds disbursed in FY 2014/2015 to 2015/2016. Besides review of the program document revealed no business plans and consequently, project planning and execution was haphazard. \u2022 Under UWEP, I noted that groups repaid only 26.5% of the total of disbursement of FY 2017/18."], ["15", "Budaka DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX. 0.69Bn representing 3% under release. Further, the entity remained with unspent balance of UGX.0.752bn representing an absorption level of 96.6%. \u2022 Under UgIFT, I noted that although works were ongoing, works at one site had been abandoned. \u2022 Under NUSAF-3 UGX.0.681bn was disbursed late, the project was not audited and some project assets were non-functional. Further, I noted that the NUSAF Community facilitators shared one motorcycle for 7 watersheds, which may hamper the Community Facilitators from undertaking their roles properly. \u2022 I noted a recovery rate of only 13% of the funds disbursed since the start of programme. \u2022 Under UWEP, projects funds, the district had budgeted for a total amount of UGX.178,387,000 for the financial year 2018/2019 and only received UGX.91,312,684, leading to a shortfall of UGX.87,074,316. Further, I noted that groups repaid only 16% of the total of disbursement in the FYs 2016/17 to 2018/19. \u2022 Under capitation grant I noted Sapiri Primary School did not prepare financial statements. \u2022 Out of 95 pieces of land, 57 entities representing 60% of the district lacked land titles for the land where council properties are located."], ["16", "Tororo MC **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX. 1.293Bn representing 9% under release. Further, the entity remained with unspent balance of UGX.0.350Bn representing an absorption level of 97%. \u2022 Out of the three projects inspected (UgIFT, URF, YLP), (1) was fully achieved while (2) were partially implemented. \u2022 Under URF field inspection of Kyamwinula road, revealed that the road was already in bad shape and part of Jowedi road was developing cracks."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 276, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["SN", "LOCAL GOVERNMENTS", "SUMMARY OF KEY FINDINGS \u2022 Under URF field inspection revealed some points lacked off shoots to drain away running water and some works had been spoilt by the heavy rains making some sections almost impassable. \u2022 I noted under YLP a recovery rate of only 26% of the funds disbursed in FY 2015/2016 to 2017/2018. In addition to this some of the 2014/15 YLP groups that received UGX.76,923,000 were no longer in existence \u2022 Under UWEP, I noted that groups repaid only 39% of the total of disbursement in the FYs 2016/17 to 2018/19. \u2022 The District council had an approved structure of 1034 staff (excluding secondary school teachers) but only 807(78%) positions were filled, leaving 227 vacant."], "type": "table"}}, {"content": "263", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 276, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["17", "Bududa DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.0.730Bn representing 3.2% under release. Further, the entity remained with unspent balance of UGX.0.21Bn representing an absorption level of 96%. \u2022 Out of the five (5) projects inspected (UgIFT, URF, NUSAF 3, YLP and UWEP programme) (3) were fully achieved while (2) were partially implemented. \u2022 Under UgIFT I noted delayed works on the Upgrade of Bubungi Health Centre II to Health Centre III, and Construction of Bubita Seed School where works were 95% substantially completed. \u2022 Under NUSAF-3 UGX.864,400,000 was received to cater for 39 projects sub-groups. I noted that financial records for the inspected groups were not availed and these were not audited by internal audit. \u2022 Out of an approved structure of 1,824 staff only 1,351 (73.73%) were filled leaving 479 (26.27%) vacancies \u2022 I noted poor recovery of YLP funds from the districts beneficiaries with 41%, 46% and 54% recovery rate for financial years 2014/2015, 2015/2016 and 2016/2017 respectively. \u2022 Under UWEP, projects funds worth UGX.133m meant for F/Y 2018/2019, were released to the district in the third quarter of the F/Y 2018/2019 resulting into delayed implementation of the projects. Further, I noted that groups repaid only 50% of the total of disbursement in the FYs 2016/17 and 5% recovery for FY 2017/2018."], ["18", "Busia DLG **Opinion** Qualified", "\u2022 There was a shortfall in releases amounting to UGX. 0.374Bn representing 1% under release. Further, the entity remained with unspent balance of UGX.1.192Bn representing an absorption level of 95.6%. \u2022 I noted partial implementation of NUSAF3, UWEP and UgIFT project outputs \u2022 A total of UGX.3,252,311,940 was mischarged by the entity. \u2022 Works under UgIFT were ongoing but were incomplete by the time of audit. Electrical, plumbing and landscaping were not yet done, while modifications on the existing structure not completed. \u2022 Under NUSAF-3 UGX.1,910,202,466 was used to support 53 beneficiary sub-groups. I noted that UGX.75,974,550 had not been withdrawn from the bank accounts, which negatively affects project implementation. \u2022 Under URF, Inspection revealed some sections had over grown grass on sections of the road. \u2022 I noted a recovery rate of only 11% of the funds disbursed in FY 2014/2015 to 2016/2017 and 2017/2018 under YLP. \u2022 Under UWEP, I noted that groups repaid only 7.5% of the total of disbursement in the FYs 2016/17 to 2018/19. \u2022 Out of an approved structure of 2,396 staff, the district has filled only 2,073 leaving 323 vacancies. \u2022 I noted during physical inspection that some motor vehicles including; a grader and a fairly new motor cycle developed mechanical problems and had since been abandoned. I also noted that the district generator, tractor and 5 motor cycles were missing at the district by the time of audit."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 277, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["SN", "LOCAL GOVERNMENTS", "SUMMARY OF KEY FINDINGS \u2022 I noted a recovery rate of only 6.8% of the funds disbursed in FY 2015/2016 for YLP. There was delayed transfer of recovered funds to the collection account in bank of Uganda and members of one group could not be traced. \u2022 Under UWEP, projects funds worth UGX.54m were released in F/Y 2017/2018, however I noted that groups repaid only 31% of the total of disbursement. Out of two women groups inspected, one group sold off all the stock, disintegrated. \u2022 Evaluation committee awarded contracts worth UGX.43,722,800 to various companies which had not qualified past the preliminary stage. \u2022 Out of an approved structure of 385 staff for the Municipality, Council had filled only 187 (49%) leaving 198 (51%) vacancies."], "type": "table"}}, {"content": [["17", "Bududa DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.0.730Bn representing 3.2% under release. Further, the entity remained with unspent balance of UGX.0.21Bn representing an absorption level of 96%. \u2022 Out of the five (5) projects inspected (UgIFT, URF, NUSAF 3, YLP and UWEP programme) (3) were fully achieved while (2) were partially implemented. \u2022 Under UgIFT I noted delayed works on the Upgrade of Bubungi Health Centre II to Health Centre III, and Construction of Bubita Seed School where works were 95% substantially completed. \u2022 Under NUSAF-3 UGX.864,400,000 was received to cater for 39 projects sub-groups. I noted that financial records for the inspected groups were not availed and these were not audited by internal audit. \u2022 Out of an approved structure of 1,824 staff only 1,351 (73.73%) were filled leaving 479 (26.27%) vacancies \u2022 I noted poor recovery of YLP funds from the districts beneficiaries with 41%, 46% and 54% recovery rate for financial years 2014/2015, 2015/2016 and 2016/2017 respectively. \u2022 Under UWEP, projects funds worth UGX.133m meant for F/Y 2018/2019, were released to the district in the third quarter of the F/Y 2018/2019 resulting into delayed implementation of the projects. Further, I noted that groups repaid only 50% of the total of disbursement in the FYs 2016/17 and 5% recovery for FY 2017/2018."], ["18", "Busia DLG **Opinion** Qualified", "\u2022 There was a shortfall in releases amounting to UGX. 0.374Bn representing 1% under release. Further, the entity remained with unspent balance of UGX.1.192Bn representing an absorption level of 95.6%. \u2022 I noted partial implementation of NUSAF3, UWEP and UgIFT project outputs \u2022 A total of UGX.3,252,311,940 was mischarged by the entity. \u2022 Works under UgIFT were ongoing but were incomplete by the time of audit. Electrical, plumbing and landscaping were not yet done, while modifications on the existing structure not completed. \u2022 Under NUSAF-3 UGX.1,910,202,466 was used to support 53 beneficiary sub-groups. I noted that UGX.75,974,550 had not been withdrawn from the bank accounts, which negatively affects project implementation. \u2022 Under URF, Inspection revealed some sections had over grown grass on sections of the road. \u2022 I noted a recovery rate of only 11% of the funds disbursed in FY 2014/2015 to 2016/2017 and 2017/2018 under YLP. \u2022 Under UWEP, I noted that groups repaid only 7.5% of the total of disbursement in the FYs 2016/17 to 2018/19. \u2022 Out of an approved structure of 2,396 staff, the district has filled only 2,073 leaving 323 vacancies. \u2022 I noted during physical inspection that some motor vehicles including; a grader and a fairly new motor cycle developed mechanical problems and had since been abandoned. I also noted that the district generator, tractor and 5 motor cycles were missing at the district by the time of audit."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 277, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["SN", "LOCAL GOVERNMENTS", "SUMMARY OF KEY FINDINGS \u2022 I noted a recovery rate of only 6.8% of the funds disbursed in FY 2015/2016 for YLP. There was delayed transfer of recovered funds to the collection account in bank of Uganda and members of one group could not be traced. \u2022 Under UWEP, projects funds worth UGX.54m were released in F/Y 2017/2018, however I noted that groups repaid only 31% of the total of disbursement. Out of two women groups inspected, one group sold off all the stock, disintegrated. \u2022 Evaluation committee awarded contracts worth UGX.43,722,800 to various companies which had not qualified past the preliminary stage. \u2022 Out of an approved structure of 385 staff for the Municipality, Council had filled only 187 (49%) leaving 198 (51%) vacancies."], "type": "table"}}, {"content": "264", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 277, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["20", "Kibuku DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX. 1.03Bn representing 5% under release. Further, the entity remained with unspent balance of UGX.0.237Bn representing an absorption level of 98%. \u2022 Out of the two projects inspected (UgIFT, and UWEP programme) I noted that all outputs were partially implemented. \u2022 Under URF field inspection revealed sections of some roads were poorly maintained with overgrown bushes and silted culverts affecting the flow of rainwater. In addition, I observed incomplete works on projects. \u2022 I noted a recovery rate of only 18% of the funds disbursed in FY 2014/2015 to 2015/2016. There was also a delay to transfer funds to the National Revolving Fund Collection Account. \u2022 Under UWEP, I noted that groups repaid only 15% of the total of disbursement in the FY 2017/18. \u2022 I noted that school facility ratios in the district did not meet national ratios recommended by MoES."], ["21", "Kapchorwa MC **Opinion** Unqualified", "\u2022 The entity remained with unspent balance of UGX.1.048Bn representing an absorption level of 99.8%. \u2022 Under NUSAF-3 UGX.2.225bn was used to support 32 beneficiary sub-groups. I noted that UGX.75,974,550 had not been withdrawn from the bank accounts, which negatively affects project implementation. Out of the 3 subprojects inspected I noted poor management of projects and incomplete works on CARs \u2022 Under URF, field inspection revealed sections of the roads needed urgent attention. I noted that 10.49 kms more in length of road network were undertaken and UGX.34,175,000 excess funds were also used without approval of supplementary funding. \u2022 I noted that under YLP a recovery rate of only 19% of the funds disbursed in FY 2014/2015 to 2015/2016. \u2022 Out of the approved structure of 166, only 53 (32%) positions were filled leaving 113 (68%) posts vacant."], ["", "**MBARARA BRANCH**", ""], ["1", "Kiruhura DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.2.941Bn representing 10% under release. Further, the entity remained with unspent balance of UGX.1.456Bn representing an absorption level of 95%. \u2022 I noted that out of the 8 sampled key deliverables, 4 were fully implemented, 2 were partially implemented and 3 were not implemented."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 278, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["SN 19", "LOCAL GOVERNMENTS Busia MC Opinion Unqualified", "SUMMARY OF KEY FINDINGS \u2022 There was a shortfall in releases amounting to UGX.0.404Bn representing 6% under release. Further, the entity remained with unspent balance of UGX.0.291Bn representing an absorption level of 95%. \u2022 Out of the three projects inspected (URF, YLP and UWEP programme) (2) were fully achieved while (1) was not implemented. \u2022 I noted unsupported adjustments of UGX.10,303,608 to the statement of equity. \u2022 I noted that UGX.38,424,588 lacked supporting accountability documents \u2022 Out of the budgeted donor funding of UGX 0.09bn only UGX 0.015bn representing 16.93% was received. \u2022 I noted overflow of garbage beyond the designated area, the tractor meant for waste disposal had broken, and failure to sensitize the community on proper garbage management. \u2022 I noted a recovery rate of only 27% of the funds disbursed in FY 2014/2015 to 2015/2016. In addition, out of the two youth groups inspected, one had disintegrated after sharing the funds amongst themselves. \u2022 Municipal has an approved staff structure of 512 positions, out of which, only 297 (58%) positions were filled leaving 215 (42%) posts vacant."], "type": "table"}}, {"content": "265", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 278, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["2", "Kanungu DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX. 2.521Bn representing 7% under release. Further, the entity remained with unspent balance of UGX.2.730Bn representing an absorption level of 92%. \u2022 I noted that out of the 18 sampled key deliverables, 11 were fully implemented, 7 were partially implemented. \u2022 Under UgIFT, I noted a reduction in the scope of works planed in the upgrading of Matanda HC II to a HC III by elimination of a placenta pit due limited funding. I also noted the construction of a Seed Secondary School in Katete Sub-county did not take off due to incomplete procurement process and funds worth UGX.731,049,478 was swept back to CF. \u2022 I noted a YLP recovery rate of only 26% for the funds disbursed in FY 2013/2014 to date with full recovery expected by 2018/19. \u2022 Under UWEP, I noted that no recovery of funds of funds up to 14,940,000 from the 2 sampled groups."], ["3", "Mbarara DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX. 4.429 Bn representing 11.7% under release. Further, the entity remained with unspent balance of UGX.0.002Bn representing an absorption level of 99.9%. \u2022 I noted that out of the 33 sampled key deliverables, 26 were fully implemented, 5 were partially implemented and 2 were not implemented \u2022 I noted that the district had accumulated payables amounting to UGX.711,035,947 arising from from failure to repay the YLP and UWEP funds - UGX.663,696,412 and other creditors - UGX.47,339,535 \u2022 Under UgIFT, I noted an advance payment UGX.238,580,822 for construction of Bukiro Seed Secondary School in Bukiro Sub-county, However the site was abandoned by the contractor after excavating foundation trenched on grounds of high-water logging and requiring foundation redesign. \u2022 Under URF, I noted a 102% release of the budget of UGX.1,203,519,000. Field inspections of road works revealed installed culverts lacked head walls in some sections. \u2022 I noted a YLP recovery rate of only 45% for the funds disbursed in FY 2013/2014 and 2015/2016 with full recovery expected by 2018/19. \u2022 Under UWEP, I noted that from the financial year 2015/16 to date, the district had recovered only UGX.57,545,850 which is 48.7% of the expected total recovery."], ["4", "Ntungamo DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.2.703Bn representing 5.7% under release. Further, the entity remained with unspent balance of UGX.1.33Bn representing an absorption level of 97%. \u2022 I noted that out of the 5 sampled key deliverables, 2 were fully implemented, 2 were partially implemented and 1 was not implemented \u2022 I noted that the district had accumulated payables worth UGX.1,901,471,853 arising from failure to repay the YLP and UWEP funds - UGX.1,317,208,361 and other creditors -UGX. UGX584,263,492."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 279, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["SN", "LOCAL GOVERNMENTS", "SUMMARY OF KEY FINDINGS \u2022 Under UgIFT, I noted a 5 months delay in procurement process for upgrade of 2 HC IIs to HC IIIs at Rwenshande and Kitura. I further noted a 4 months delay in procurement for the construction of Nyakasharara Seed School. VAT of UGX.149,491,525 was irregularly paid on the contract of upgrading Rweshande and Kitura Health centers. \u2022 Under URF, Field inspections of road works revealed culverts were delivered but not install for Keitoti-Kitabu-Rwenjabu Road. \u2022 I noted a YLP recovery rate of only 45% for the funds disbursed in FY 2013/2014 and 2015/2016 with full recovery expected by 2018/19. \u2022 Under UWEP, I noted that from the financial year 2015/16 to date, the district had recovered 74% out of the expected total amount. I further noted that there was no release of funds for F/Y 2018/19 despite the budget of UGX.179,281,000."], "type": "table"}}, {"content": [["2", "Kanungu DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX. 2.521Bn representing 7% under release. Further, the entity remained with unspent balance of UGX.2.730Bn representing an absorption level of 92%. \u2022 I noted that out of the 18 sampled key deliverables, 11 were fully implemented, 7 were partially implemented. \u2022 Under UgIFT, I noted a reduction in the scope of works planed in the upgrading of Matanda HC II to a HC III by elimination of a placenta pit due limited funding. I also noted the construction of a Seed Secondary School in Katete Sub-county did not take off due to incomplete procurement process and funds worth UGX.731,049,478 was swept back to CF. \u2022 I noted a YLP recovery rate of only 26% for the funds disbursed in FY 2013/2014 to date with full recovery expected by 2018/19. \u2022 Under UWEP, I noted that no recovery of funds of funds up to 14,940,000 from the 2 sampled groups."], ["3", "Mbarara DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX. 4.429 Bn representing 11.7% under release. Further, the entity remained with unspent balance of UGX.0.002Bn representing an absorption level of 99.9%. \u2022 I noted that out of the 33 sampled key deliverables, 26 were fully implemented, 5 were partially implemented and 2 were not implemented \u2022 I noted that the district had accumulated payables amounting to UGX.711,035,947 arising from from failure to repay the YLP and UWEP funds - UGX.663,696,412 and other creditors - UGX.47,339,535 \u2022 Under UgIFT, I noted an advance payment UGX.238,580,822 for construction of Bukiro Seed Secondary School in Bukiro Sub-county, However the site was abandoned by the contractor after excavating foundation trenched on grounds of high-water logging and requiring foundation redesign. \u2022 Under URF, I noted a 102% release of the budget of UGX.1,203,519,000. Field inspections of road works revealed installed culverts lacked head walls in some sections. \u2022 I noted a YLP recovery rate of only 45% for the funds disbursed in FY 2013/2014 and 2015/2016 with full recovery expected by 2018/19. \u2022 Under UWEP, I noted that from the financial year 2015/16 to date, the district had recovered only UGX.57,545,850 which is 48.7% of the expected total recovery."], ["4", "Ntungamo DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.2.703Bn representing 5.7% under release. Further, the entity remained with unspent balance of UGX.1.33Bn representing an absorption level of 97%. \u2022 I noted that out of the 5 sampled key deliverables, 2 were fully implemented, 2 were partially implemented and 1 was not implemented \u2022 I noted that the district had accumulated payables worth UGX.1,901,471,853 arising from failure to repay the YLP and UWEP funds - UGX.1,317,208,361 and other creditors -UGX. UGX584,263,492."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 279, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["SN", "LOCAL GOVERNMENTS", "SUMMARY OF KEY FINDINGS \u2022 Under UgIFT, I noted a 5 months delay in procurement process for upgrade of 2 HC IIs to HC IIIs at Rwenshande and Kitura. I further noted a 4 months delay in procurement for the construction of Nyakasharara Seed School. VAT of UGX.149,491,525 was irregularly paid on the contract of upgrading Rweshande and Kitura Health centers. \u2022 Under URF, Field inspections of road works revealed culverts were delivered but not install for Keitoti-Kitabu-Rwenjabu Road. \u2022 I noted a YLP recovery rate of only 45% for the funds disbursed in FY 2013/2014 and 2015/2016 with full recovery expected by 2018/19. \u2022 Under UWEP, I noted that from the financial year 2015/16 to date, the district had recovered 74% out of the expected total amount. I further noted that there was no release of funds for F/Y 2018/19 despite the budget of UGX.179,281,000."], "type": "table"}}, {"content": "266", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 279, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["5", "Rukungiri DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.1.29Bn representing 3% under release. Further, the entity remained with unspent balance of UGX.1.627Bn representing an absorption level of 96%. \u2022 I noted that out of the 5 sampled key deliverables, 3 were fully implemented, 1 was partially implemented and 1 was not implemented \u2022 Under UgIFT, I noted incomplete works of upgrade Karuhembe HC II to Health Centre III which was awarded in the second quarter of the financial year. I further noted that the construction of Kebisoni Seed Secondary school was not implemented due to delayed procurement process by 11months. \u2022 I noted a YLP recovery rate of only 33% for the funds disbursed in FY 2015/2016 with full recovery expected by 2018/19. Field inspections revealed some cases of groups had disintegrated \u2022 Under UWEP, I noted that from the financial year 2015/16 to date, the district had recovered only 27% out of the expected total amount. \u2022 I noted that out of the approved structure of 2,893 staff but only 77% were filled leaving a staffing gap of 23%."], ["6", "Isingiro DLG **Opinion** Unqualified", "\u2022 I noted that the district had payables of UGX.2,796,726,008 by the close of the year. \u2022 Under UgIFT, I noted that the district received 98% of its budget of UGX.1,354,385,906 out of which UGX.497,882,551 was utilized leaving UGX 828,674,440 as unspent. \u2022 Under URF, I noted a 96% release of the budget of UGX.1,850,637,916. Field inspections of road works revealed gravelling and compacting had not done and some cases of fewer culvert than planned. \u2022 I noted a YLP recovery rate of only 25.7% for the funds disbursed from FY 2013/2014 to date with full recovery expected by 2018/19. Field inspections revealed that the money was all taken by one individual in of 3 groups. \u2022 Under UWEP, I noted no funding was received during the F/Y yet a budget of UGX.258,302,000 was approved."], ["7", "Bushenyi DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX. 0.255Bn representing 0.94% performance of the budget. Further, the entity remained with unspent balance of UGX.1.852Bn representing an absorption level of 93.1%. \u2022 Out of the six key deliverables I selected, four were fully implemented and two were partially implemented. I further noted that URF was not reported on in the statement of performance \u2022 I noted that the district had not paid pension and gratuity amounting to UGX.1,088,647,819 by the end of the financial year \u2022 Under UgIFT, there was a 5 months delay in the procurement process for Upgrade of Kibazi HC II to HC III. Field inspections revealed incomplete works for this project. I also noted a 4 months delay in the start of the construction Kabushabo Seed school. \u2022 Under YLP, I noted a recovery rate of only 57% for the funds disbursed in FY 2013/2014 and 2015/2016 with full recovery expected by 2018/19. I inspected one youth group (Ntungamo youth Boda-boda group) and discovered the all funds received were irregularly utilized by one individual. \u2022 Under UWEP, I noted that from the financial year 2017/18 to date, the district had made recoveries of only UGX.70,446,400 (24%) of the expected total amount. I inspected one group"]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 280, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["SN", "LOCAL GOVERNMENTS", "SUMMARY OF KEY FINDINGS \u2022 Under UgIFT, I noted incomplete works of upgrading of Kyamashwa and Karuruma health center II to III which was awarded in the third quarter of the financial year. I further noted that the Construction of Kihanga Seed School was not implemented due to delayed procurement process. \u2022 Under URF, I noted a 100% release of the budget however, field inspections of road works revealed some cases of incomplete works. \u2022 I noted a YLP recovery rate of only 52.5% for the funds disbursed in FY 2015/2016 with full recovery expected by 2018/19."], "type": "table"}}, {"content": [["5", "Rukungiri DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.1.29Bn representing 3% under release. Further, the entity remained with unspent balance of UGX.1.627Bn representing an absorption level of 96%. \u2022 I noted that out of the 5 sampled key deliverables, 3 were fully implemented, 1 was partially implemented and 1 was not implemented \u2022 Under UgIFT, I noted incomplete works of upgrade Karuhembe HC II to Health Centre III which was awarded in the second quarter of the financial year. I further noted that the construction of Kebisoni Seed Secondary school was not implemented due to delayed procurement process by 11months. \u2022 I noted a YLP recovery rate of only 33% for the funds disbursed in FY 2015/2016 with full recovery expected by 2018/19. Field inspections revealed some cases of groups had disintegrated \u2022 Under UWEP, I noted that from the financial year 2015/16 to date, the district had recovered only 27% out of the expected total amount. \u2022 I noted that out of the approved structure of 2,893 staff but only 77% were filled leaving a staffing gap of 23%."], ["6", "Isingiro DLG **Opinion** Unqualified", "\u2022 I noted that the district had payables of UGX.2,796,726,008 by the close of the year. \u2022 Under UgIFT, I noted that the district received 98% of its budget of UGX.1,354,385,906 out of which UGX.497,882,551 was utilized leaving UGX 828,674,440 as unspent. \u2022 Under URF, I noted a 96% release of the budget of UGX.1,850,637,916. Field inspections of road works revealed gravelling and compacting had not done and some cases of fewer culvert than planned. \u2022 I noted a YLP recovery rate of only 25.7% for the funds disbursed from FY 2013/2014 to date with full recovery expected by 2018/19. Field inspections revealed that the money was all taken by one individual in of 3 groups. \u2022 Under UWEP, I noted no funding was received during the F/Y yet a budget of UGX.258,302,000 was approved."], ["7", "Bushenyi DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX. 0.255Bn representing 0.94% performance of the budget. Further, the entity remained with unspent balance of UGX.1.852Bn representing an absorption level of 93.1%. \u2022 Out of the six key deliverables I selected, four were fully implemented and two were partially implemented. I further noted that URF was not reported on in the statement of performance \u2022 I noted that the district had not paid pension and gratuity amounting to UGX.1,088,647,819 by the end of the financial year \u2022 Under UgIFT, there was a 5 months delay in the procurement process for Upgrade of Kibazi HC II to HC III. Field inspections revealed incomplete works for this project. I also noted a 4 months delay in the start of the construction Kabushabo Seed school. \u2022 Under YLP, I noted a recovery rate of only 57% for the funds disbursed in FY 2013/2014 and 2015/2016 with full recovery expected by 2018/19. I inspected one youth group (Ntungamo youth Boda-boda group) and discovered the all funds received were irregularly utilized by one individual. \u2022 Under UWEP, I noted that from the financial year 2017/18 to date, the district had made recoveries of only UGX.70,446,400 (24%) of the expected total amount. I inspected one group"]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 280, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["SN", "LOCAL GOVERNMENTS", "SUMMARY OF KEY FINDINGS \u2022 Under UgIFT, I noted incomplete works of upgrading of Kyamashwa and Karuruma health center II to III which was awarded in the third quarter of the financial year. I further noted that the Construction of Kihanga Seed School was not implemented due to delayed procurement process. \u2022 Under URF, I noted a 100% release of the budget however, field inspections of road works revealed some cases of incomplete works. \u2022 I noted a YLP recovery rate of only 52.5% for the funds disbursed in FY 2015/2016 with full recovery expected by 2018/19."], "type": "table"}}, {"content": "267", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 280, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["8", "Kisoro DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.0.764 Bn representing 2.4% under release. Further, the entity remained with unspent balance of UGX.0.741Bn representing an absorption level of 97.9%. \u2022 I noted that out of the 5 sampled key deliverables, 2 were fully implemented, 2 were partially implemented and 1 was not implemented. \u2022 I noted that the district had accumulated payables worth UGX.1,221,387,026 arising from from failure to repay the YLP and UWEP funds - UGX.1,209,982,000 and other creditors - UGX.11,699,586. \u2022 Under UgIFT, I noted incomplete works on the Upgrade of Marega Health Centre II to III which was awarded in the third quarter of the financial year. I further noted that the construction of Nyakinama Seed School was not implemented due to delayed procurement process. \u2022 Under URF, I noted a 102% release of the budget of UGX.717,131,860. Field inspections of road works revealed inadequate off-shoots and shaping for proper water draining on some of the roads visited. \u2022 Under UWEP, I noted that the District did not receive any funds during the FY 2018/19 despite having a budget of UGX.219,603,446. \u2022 I noted a YLP recovery rate of only 49.4% for the funds disbursed in FY 2015/2016 with full recovery expected by 2018/19."], ["9", "Sheema DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.2.062 Bn representing 8.6% under release. Further, the entity remained with unspent balance of UGX.0.205Bn representing an absorption level of 99.1%. \u2022 I noted that all 7 sampled key deliverables were partially implemented \u2022 I noted that the district had accumulated pension and salary arrears of UGX 358,646,665 and UGX 15,173,396 respectively. \u2022 Under UgIFT, I noted incomplete works of up-grade Mabaare and Kyeihara Health Centers II to Health Centers III which was awarded in the third quarter of the financial year. I further noted that the construction of Kigarama Seed School was partially implemented due to delayed procurement process. \u2022 I noted a YLP recovery rate of only 51% for the funds disbursed in FY 2014/2015 and 2016/2017 with full recovery expected by 2018/19. \u2022 Under UWEP, I noted none funding for the programme despite the of approved budget UGX 175,532,000."], ["10", "Mbarara MC **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.6.229 Bn representing 14.4% under release. Further, the entity remained with unspent balance of UGX.1.384Bn representing an absorption level of 96.26%. \u2022 I noted that Out of the 9 planned projects for the year, 8 projects/activities were fully implemented and 1 was partially implemented. \u2022 Under UgIFT, I noted that the upgrading Kyarwabuganda HC II to HC III was awarded in the third quarter of the financial year. Out of UGX.500,000,000 received, the entity utilized UGX.170,264,488 leaving UGX.329,735,512 as unspent and swept back to CF. I further noted that VAT amounting to UGX.82,454,020 was irregularrly included in the contract price. \u2022 Under URF, I noted a 100.3% release of the budget of UGX. 1,363,868,116. I noted excess expenditure of UGX. 6,582,000 over budgeted amount. Field inspections of road works revealed lack of off shoot and incomplete works on some sections of the sampled roads. \u2022 I noted a YLP recovery rate of only 22.6% for the funds disbursed in FY 2015/2016 with full recovery expected by 2018/19. I further noted a short fall of releases of 18% during the FY."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 281, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["SN", "LOCAL GOVERNMENTS", "SUMMARY OF KEY FINDINGS called Ryeseera Bakyara Twebiseho Women\u2019s Group and noted diversion from initial business of goat rearing to money lending to group members."], "type": "table"}}, {"content": [["8", "Kisoro DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.0.764 Bn representing 2.4% under release. Further, the entity remained with unspent balance of UGX.0.741Bn representing an absorption level of 97.9%. \u2022 I noted that out of the 5 sampled key deliverables, 2 were fully implemented, 2 were partially implemented and 1 was not implemented. \u2022 I noted that the district had accumulated payables worth UGX.1,221,387,026 arising from from failure to repay the YLP and UWEP funds - UGX.1,209,982,000 and other creditors - UGX.11,699,586. \u2022 Under UgIFT, I noted incomplete works on the Upgrade of Marega Health Centre II to III which was awarded in the third quarter of the financial year. I further noted that the construction of Nyakinama Seed School was not implemented due to delayed procurement process. \u2022 Under URF, I noted a 102% release of the budget of UGX.717,131,860. Field inspections of road works revealed inadequate off-shoots and shaping for proper water draining on some of the roads visited. \u2022 Under UWEP, I noted that the District did not receive any funds during the FY 2018/19 despite having a budget of UGX.219,603,446. \u2022 I noted a YLP recovery rate of only 49.4% for the funds disbursed in FY 2015/2016 with full recovery expected by 2018/19."], ["9", "Sheema DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.2.062 Bn representing 8.6% under release. Further, the entity remained with unspent balance of UGX.0.205Bn representing an absorption level of 99.1%. \u2022 I noted that all 7 sampled key deliverables were partially implemented \u2022 I noted that the district had accumulated pension and salary arrears of UGX 358,646,665 and UGX 15,173,396 respectively. \u2022 Under UgIFT, I noted incomplete works of up-grade Mabaare and Kyeihara Health Centers II to Health Centers III which was awarded in the third quarter of the financial year. I further noted that the construction of Kigarama Seed School was partially implemented due to delayed procurement process. \u2022 I noted a YLP recovery rate of only 51% for the funds disbursed in FY 2014/2015 and 2016/2017 with full recovery expected by 2018/19. \u2022 Under UWEP, I noted none funding for the programme despite the of approved budget UGX 175,532,000."], ["10", "Mbarara MC **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.6.229 Bn representing 14.4% under release. Further, the entity remained with unspent balance of UGX.1.384Bn representing an absorption level of 96.26%. \u2022 I noted that Out of the 9 planned projects for the year, 8 projects/activities were fully implemented and 1 was partially implemented. \u2022 Under UgIFT, I noted that the upgrading Kyarwabuganda HC II to HC III was awarded in the third quarter of the financial year. Out of UGX.500,000,000 received, the entity utilized UGX.170,264,488 leaving UGX.329,735,512 as unspent and swept back to CF. I further noted that VAT amounting to UGX.82,454,020 was irregularrly included in the contract price. \u2022 Under URF, I noted a 100.3% release of the budget of UGX. 1,363,868,116. I noted excess expenditure of UGX. 6,582,000 over budgeted amount. Field inspections of road works revealed lack of off shoot and incomplete works on some sections of the sampled roads. \u2022 I noted a YLP recovery rate of only 22.6% for the funds disbursed in FY 2015/2016 with full recovery expected by 2018/19. I further noted a short fall of releases of 18% during the FY."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 281, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["SN", "LOCAL GOVERNMENTS", "SUMMARY OF KEY FINDINGS called Ryeseera Bakyara Twebiseho Women\u2019s Group and noted diversion from initial business of goat rearing to money lending to group members."], "type": "table"}}, {"content": "268", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 281, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["11", "Kabale DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX. 0.967Bn. \u2022 Analysis of 8 sampled key deliverables in the FY 2018/2019 revealed 4 deliverables (50%) were fully implemented while 4 deliverables (50%) were partially implemented namely; \u2022 Under UgIFT, I noted that District planned to upgrade Kasheregyenyi HC II to Health Centre III at a cost of UGX.500, 000,000. Despite receiving all the fund, and undertaking the procurement, the project delayed and started during the end of 3rd quarter. I further noted that 31% of the costs was paid during the year and balance was swept back to CF. \u2022 I noted further that construction of Buhara Seed Secondary School under UgIFT did not take off due to disagreements in the procurement process and all funds swept to CF. \u2022 Under URF, 94% of the budgeted amount of UGX.1, 709,453,736 was received. Field inspections of 7 roads revealed contact implementation challenges on two roads which included cracked culverts and no off shoots. \u2022 I noted a YLP recovery rate of only 35% for the funds disbursed in FY 2013/2014 and 2015/2016 with full recovery expected by 2018/19. \u2022 Under UWEP, I noted that no money was released to the district by MoGLSD by the close of the financial year despite the approved budget of UGX.30m. I noted a recovery of UGX.71, 466, 500 which is a rate of 72% of the due balance as at end of F/Y."], ["12", "Ibanda DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.1.406Bn representing 7% under release. Further, the entity remained with unspent balance of UGX.0.203Bn representing an absorption level of 99%. \u2022 I noted that out of the 6 sampled key deliverables, 3 were fully implemented, and 3 were partially implemented. \u2022 Under UgIFT, I noted incomplete works for the upgrading of Kashozi Health Centre II to HC III. I also noted irregular inclusion of VAT UGX.70,502,011 in the contract price. \u2022 I further noted a 10 months delay and 12% under absorption of the released funds for the construction of a Seed Secondary School at Rwenshambya. \u2022 I noted a YLP recovery rate of 64% for the funds disbursed in FY 2013/2014 and 2015/2016 with full recovery expected by 2018/19."], ["13", "Mbarara RRH **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX. 0.007Bn representing 0.1% under release. Further, the entity incurred more expenditure above its warrants by UGX.1.224 Bn representing an absorption level of 110%. \u2022 I noted that Out of the 20 key deliverables reported, 18 were fully implemented and 2 were partially implemented. \u2022 I noted that the hospital had payables and pension liabilities of UGX.2,921,479,267 by the close of the year. \u2022 I noted that out of the 384 approved positions, only 300 positions (78%) were filled leaving 84 positions (22%) unfilled."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 282, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["SN", "LOCAL GOVERNMENTS", "SUMMARY OF KEY FINDINGS \u2022 Under UWEP, I noted that from the financial year 2016/17 to date, the MC had recovered only UGX.70,505,802 (32.43%) out of the expected total amount. I noted that the MC did not receive any funds during the FY of its budget of UGX.140,630,000."], "type": "table"}}, {"content": [["11", "Kabale DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX. 0.967Bn. \u2022 Analysis of 8 sampled key deliverables in the FY 2018/2019 revealed 4 deliverables (50%) were fully implemented while 4 deliverables (50%) were partially implemented namely; \u2022 Under UgIFT, I noted that District planned to upgrade Kasheregyenyi HC II to Health Centre III at a cost of UGX.500, 000,000. Despite receiving all the fund, and undertaking the procurement, the project delayed and started during the end of 3rd quarter. I further noted that 31% of the costs was paid during the year and balance was swept back to CF. \u2022 I noted further that construction of Buhara Seed Secondary School under UgIFT did not take off due to disagreements in the procurement process and all funds swept to CF. \u2022 Under URF, 94% of the budgeted amount of UGX.1, 709,453,736 was received. Field inspections of 7 roads revealed contact implementation challenges on two roads which included cracked culverts and no off shoots. \u2022 I noted a YLP recovery rate of only 35% for the funds disbursed in FY 2013/2014 and 2015/2016 with full recovery expected by 2018/19. \u2022 Under UWEP, I noted that no money was released to the district by MoGLSD by the close of the financial year despite the approved budget of UGX.30m. I noted a recovery of UGX.71, 466, 500 which is a rate of 72% of the due balance as at end of F/Y."], ["12", "Ibanda DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.1.406Bn representing 7% under release. Further, the entity remained with unspent balance of UGX.0.203Bn representing an absorption level of 99%. \u2022 I noted that out of the 6 sampled key deliverables, 3 were fully implemented, and 3 were partially implemented. \u2022 Under UgIFT, I noted incomplete works for the upgrading of Kashozi Health Centre II to HC III. I also noted irregular inclusion of VAT UGX.70,502,011 in the contract price. \u2022 I further noted a 10 months delay and 12% under absorption of the released funds for the construction of a Seed Secondary School at Rwenshambya. \u2022 I noted a YLP recovery rate of 64% for the funds disbursed in FY 2013/2014 and 2015/2016 with full recovery expected by 2018/19."], ["13", "Mbarara RRH **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX. 0.007Bn representing 0.1% under release. Further, the entity incurred more expenditure above its warrants by UGX.1.224 Bn representing an absorption level of 110%. \u2022 I noted that Out of the 20 key deliverables reported, 18 were fully implemented and 2 were partially implemented. \u2022 I noted that the hospital had payables and pension liabilities of UGX.2,921,479,267 by the close of the year. \u2022 I noted that out of the 384 approved positions, only 300 positions (78%) were filled leaving 84 positions (22%) unfilled."], ["14", "Bushenyi MC **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.0.208Bn representing 2.3% under release. Further, the entity remained with unspent balance of UGX.0.335Bn representing an absorption level of 96.2%. \u2022 I noted that Out of the 9 key deliverables for the year, 4 deliverables were fully implemented, 2 were partially implemented and 3 were not implemented. \u2022 I noted that the Municipal Council had accumulated payables of UGX.563,251,212 at the end of the year. \u2022 Under UgIFT, I noted that the upgrading Kyarwabuganda HC II to HC III was awarded in the third quarter of the financial year. Out of UGX.500,000,000 received, the entity utilized"]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 282, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["SN", "LOCAL GOVERNMENTS", "SUMMARY OF KEY FINDINGS \u2022 Under UWEP, I noted that from the financial year 2016/17 to date, the MC had recovered only UGX.70,505,802 (32.43%) out of the expected total amount. I noted that the MC did not receive any funds during the FY of its budget of UGX.140,630,000."], "type": "table"}}, {"content": "269", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 282, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["15", "Rubirizi DLG **Opinion** Unqualified", "\u2022 There was an over release above budget amounting to UGX. 0.841Bn. Further, the entity remained with unspent balance of UGX.1.97Bn representing an absorption level of 87.1%. \u2022 I noted that out of the 15 sampled key deliverables, 10 were fully implemented, 3 were partially implemented while 2 were not implemented \u2022 Under UgIFT, I noted incomplete works of upgrading of Munyonyo and Mushumba HC IIs to HC IIIs which was awarded in the third quarter of the financial year. I further noted that the construction of Ryeru Seed Secondary School was not implemented due to delayed procurement process. All the released funds worth UGX.353,555,358 was swept back to CF. VAT amounting to UGX.142,495,313 was irregularrly included in the contract price. \u2022 Under URF, the entity received of the budget but field inspections of road works revealed lack of sign post for the roads under construction. \u2022 I noted a YLP recovery rate of only 39% for the funds disbursed in FY 2013/2014 and 2015/2016 with full recovery expected by 2018/19."], ["16", "Kabale RRH **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX. 0.153Bn representing 1.8% under release. \u2022 I noted that out of the 9 key deliverables reported, 6 were fully implemented and 3 were partially implemented. \u2022 I noted that out of the 422 established position only 258(61%) were filled leaving 164(39%) posts vacant."], ["17", "Sheema MC **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.0.133Bn representing 1.2% under release. Further, the entity remained with unspent balance of UGX.0.279Bn representing an absorption level of 98%. \u2022 I noted that out of the 8 sampled key deliverables, 7 were fully implemented and 1 was partially implemented. \u2022 Under UgIFT, I noted that the incomplete upgrading of Kitojo health centre in Central Division from HC II to H/C III was awarded in the second quarter of the financial year. I further noted that VAT amounting to UGX.74,919,521 was irregularrly included in the contract price. \u2022 I noted a YLP recovery rate of only 43% for the funds disbursed in FY 2015/2016 with full recovery expected by 2018/19. \u2022 Under UWEP, I noted that the MC did not receive any funds during the FY 2018/19 for its budget of UGX.98.650,000."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 283, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["SN", "LOCAL GOVERNMENTS", "SUMMARY OF KEY FINDINGS UGX.170,264,488 leaving UGX.329,735,512 as unspent and swept back to UCF. I further noted that VAT amounting to UGX.82,454,020 was irregularly included in the contract price. \u2022 Under URF, I noted a 99.7% release of the budget of UGX.864,874,000. Field inspections of road works revealed bushy sections and lack of off shoots on Omuruhiita \u2013 Kitabi boarder road. \u2022 I noted a YLP recovery rate of only 32.2% for the funds disbursed from 2013/2014 to 2015/2016 with full recovery expected by 2018/19. I further noted a 100% budget short fall in the fund of YLP during the FY. \u2022 Under UWEP, I noted that from the financial year 2017/18 to date, the MC had recovered only UGX.30,615,500 (42.4%) out of the expected total amount. I also noted that the MC did not receive any funds during the FY given its budget of UGX.76,754,000."], "type": "table"}}, {"content": [["15", "Rubirizi DLG **Opinion** Unqualified", "\u2022 There was an over release above budget amounting to UGX. 0.841Bn. Further, the entity remained with unspent balance of UGX.1.97Bn representing an absorption level of 87.1%. \u2022 I noted that out of the 15 sampled key deliverables, 10 were fully implemented, 3 were partially implemented while 2 were not implemented \u2022 Under UgIFT, I noted incomplete works of upgrading of Munyonyo and Mushumba HC IIs to HC IIIs which was awarded in the third quarter of the financial year. I further noted that the construction of Ryeru Seed Secondary School was not implemented due to delayed procurement process. All the released funds worth UGX.353,555,358 was swept back to CF. VAT amounting to UGX.142,495,313 was irregularrly included in the contract price. \u2022 Under URF, the entity received of the budget but field inspections of road works revealed lack of sign post for the roads under construction. \u2022 I noted a YLP recovery rate of only 39% for the funds disbursed in FY 2013/2014 and 2015/2016 with full recovery expected by 2018/19."], ["16", "Kabale RRH **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX. 0.153Bn representing 1.8% under release. \u2022 I noted that out of the 9 key deliverables reported, 6 were fully implemented and 3 were partially implemented. \u2022 I noted that out of the 422 established position only 258(61%) were filled leaving 164(39%) posts vacant."], ["17", "Sheema MC **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.0.133Bn representing 1.2% under release. Further, the entity remained with unspent balance of UGX.0.279Bn representing an absorption level of 98%. \u2022 I noted that out of the 8 sampled key deliverables, 7 were fully implemented and 1 was partially implemented. \u2022 Under UgIFT, I noted that the incomplete upgrading of Kitojo health centre in Central Division from HC II to H/C III was awarded in the second quarter of the financial year. I further noted that VAT amounting to UGX.74,919,521 was irregularrly included in the contract price. \u2022 I noted a YLP recovery rate of only 43% for the funds disbursed in FY 2015/2016 with full recovery expected by 2018/19. \u2022 Under UWEP, I noted that the MC did not receive any funds during the FY 2018/19 for its budget of UGX.98.650,000."], ["18", "Buhweju DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.0.097 Bn representing 0.8% under release. Further, the entity remained with unspent balance of UGX.0.255Bn representing an absorption level of 97.8%. \u2022 I noted that out of the 7 sampled key deliverables, 3 were fully implemented, 3 were partially implemented and 1 was not implemented. \u2022 I noted that the district had payables worth UGX.1,517,445,393 that remained outstanding at the close of the year. \u2022 Under UgIFT, I noted that UGX 354,380,000 had been paid for the construction St. Anthony Kyankanda yet only ground clearing had neen done at the time of the audit. I further noted that the Upgrade of Mushasha and Engaju HC II to Health Centre III was incomplete yet UGX"]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 283, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["SN", "LOCAL GOVERNMENTS", "SUMMARY OF KEY FINDINGS UGX.170,264,488 leaving UGX.329,735,512 as unspent and swept back to UCF. I further noted that VAT amounting to UGX.82,454,020 was irregularly included in the contract price. \u2022 Under URF, I noted a 99.7% release of the budget of UGX.864,874,000. Field inspections of road works revealed bushy sections and lack of off shoots on Omuruhiita \u2013 Kitabi boarder road. \u2022 I noted a YLP recovery rate of only 32.2% for the funds disbursed from 2013/2014 to 2015/2016 with full recovery expected by 2018/19. I further noted a 100% budget short fall in the fund of YLP during the FY. \u2022 Under UWEP, I noted that from the financial year 2017/18 to date, the MC had recovered only UGX.30,615,500 (42.4%) out of the expected total amount. I also noted that the MC did not receive any funds during the FY given its budget of UGX.76,754,000."], "type": "table"}}, {"content": "270", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 283, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["19", "Ibanda MC **Opinion** Unqualified", "\u2022 I noted that Out of the 5 Key deliverable, 4 deliverables were fully implemented and 1 was partially implemented. \u2022 I noted that the MC lacked land for the Garbage Disposal Site. \u2022 Under URF, I noted a 100% release of the budget, however 10kms of planned routine manual maintenance road works were not executed during the F/Y. \u2022 I noted YLP, recovery rate of 63.3% for the funds disbursed in FY 2016/17 and 2017/18 with full recovery expected by 2018/19. \u2022 Under UWEP, I noted that from the financial year 2015/16 to date, the MC had recovered only 37.9% out of the expected total amount."], ["20", "Rukiga DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.0.995Bn representing 5.7% under release. Further, the entity remained with unspent balance of UGX.2.476Bn representing an absorption level of 84.5%. \u2022 I noted that out of the 10 sampled key deliverables, 5 were fully implemented, 4 were partially implemented and 1 was not implemented. \u2022 Out of the approved the structure of the District of the 214 positions, only 100(46.7%) positions were filled leaving 114 (53.3%) positions vacant \u2022 Under UgIFT, I noted that the procurement process for the construction of Rwamucucu seed school was delayed by 6months and field inspections revealed that project was incomplete at foundation level. \u2022 Under URF, Field inspections of road works revealed inadequate drainage, cracked head walls, Silted culverts and Non-performance of road gangs in some roads."], ["21", "Kabale MC **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.0.351Bn representing 2.2% under release. Further, the entity remained with unspent balance of UGX.0.189Bn representing an absorption level of 99%. \u2022 Under URF, Field inspections of road works revealed instances of limited drainage improvements on graded roads. \u2022 I noted a YLP recovery rate of only 21% for the funds disbursed in FY 2015/2016 with full recovery expected by 2018/19. \u2022 I noted that various staff acted for a period of more than six month."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 284, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["SN", "LOCAL GOVERNMENTS", "SUMMARY OF KEY FINDINGS 934,235,939 was received for this Purpose. 77.4% of the receipts remained unspent and swept back to the CF. \u2022 Field inspections for works under URF revealed that road works on Kayanja-Nyarujoje-Itorero road (8 Km) was incomplete. \u2022 I noted that the YLP recovery rate of only 28.5% for the funds disbursed in FY 2013/2014 to 2016/2017 with full recovery expected by 2018/19."], "type": "table"}}, {"content": [["19", "Ibanda MC **Opinion** Unqualified", "\u2022 I noted that Out of the 5 Key deliverable, 4 deliverables were fully implemented and 1 was partially implemented. \u2022 I noted that the MC lacked land for the Garbage Disposal Site. \u2022 Under URF, I noted a 100% release of the budget, however 10kms of planned routine manual maintenance road works were not executed during the F/Y. \u2022 I noted YLP, recovery rate of 63.3% for the funds disbursed in FY 2016/17 and 2017/18 with full recovery expected by 2018/19. \u2022 Under UWEP, I noted that from the financial year 2015/16 to date, the MC had recovered only 37.9% out of the expected total amount."], ["20", "Rukiga DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.0.995Bn representing 5.7% under release. Further, the entity remained with unspent balance of UGX.2.476Bn representing an absorption level of 84.5%. \u2022 I noted that out of the 10 sampled key deliverables, 5 were fully implemented, 4 were partially implemented and 1 was not implemented. \u2022 Out of the approved the structure of the District of the 214 positions, only 100(46.7%) positions were filled leaving 114 (53.3%) positions vacant \u2022 Under UgIFT, I noted that the procurement process for the construction of Rwamucucu seed school was delayed by 6months and field inspections revealed that project was incomplete at foundation level. \u2022 Under URF, Field inspections of road works revealed inadequate drainage, cracked head walls, Silted culverts and Non-performance of road gangs in some roads."], ["21", "Kabale MC **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.0.351Bn representing 2.2% under release. Further, the entity remained with unspent balance of UGX.0.189Bn representing an absorption level of 99%. \u2022 Under URF, Field inspections of road works revealed instances of limited drainage improvements on graded roads. \u2022 I noted a YLP recovery rate of only 21% for the funds disbursed in FY 2015/2016 with full recovery expected by 2018/19. \u2022 I noted that various staff acted for a period of more than six month."], ["22", "Ntungamo MC **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.0.544 Bn representing 10% under release. Further, the entity remained with unspent balance of UGX.0.302Bn representing an absorption level of 93.9%. \u2022 I noted that Out of the 8 Key deliverable, 7 deliverables were fully implemented and 1 was partially implemented. \u2022 I Noted that out of the Municipal approved structure of 159 positions, only 76(47.8%) positions were filled, leaving 83 (55.2%) positions vacant \u2022 Under UgIFT, I noted the incomplete upgrade of Ruhooko Health Centre II to a Health Centre III. \u2022 Under URF, Field inspections of some of the road works revealed deteriorating road works and non-performance of road gangs. \u2022 I noted that management did not submit signed performance agreement reports to the Ministry of Public Service by 15th September 2018 contrary to the circular standing instructions."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 284, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["SN", "LOCAL GOVERNMENTS", "SUMMARY OF KEY FINDINGS 934,235,939 was received for this Purpose. 77.4% of the receipts remained unspent and swept back to the CF. \u2022 Field inspections for works under URF revealed that road works on Kayanja-Nyarujoje-Itorero road (8 Km) was incomplete. \u2022 I noted that the YLP recovery rate of only 28.5% for the funds disbursed in FY 2013/2014 to 2016/2017 with full recovery expected by 2018/19."], "type": "table"}}, {"content": "271", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 284, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["23", "Mitooma DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.0.053 Bn representing 0.2% under release. Further, the entity remained with unspent balance of UGX.0.644Bn representing an absorption level of 97%. \u2022 I noted that out of the 8 sampled key deliverables, 1 was fully implemented, 6 were partially implemented and 1 was not implemented at all. \u2022 Under UgIFT, I noted that the upgrading Bukuba HC II to HC III was awarded in the third quarter of the financial year and remained incomplete at F/Y end. Out of UGX.500,000,000 received, the entity utilized UGX.210,000,000 leaving UGX.240,952,947 as unspent and swept back to the Consolidated Fund. \u2022 Under YLP, I noted groups disbursed with UGX 115,018,000 from 2014/15 to 2018/19 dis- integrated after repaying 12.8%. I further noted a 45.4% recovery rate for funds disbursed from 2013/2014 - 2015/2016 expected to be recovered in 2018/19."], ["24", "Rukungiri MC **Opinion** Unqualified", "\u2022 There was an excess release above the budget amounting to UGX.0.45 Bn. Further, the entity remained with unspent balance of UGX.0.525Bn representing an absorption level of 93%. \u2022 I noted that out of the 9 Key deliverable, 5 deliverables were fully implemented and 4 were partially implemented. \u2022 Under UgIFT, I noted that the upgrading of Kitimba Health Center 11 was awarded in the third quarter of the financial year and was incomplete by year end. \u2022 I noted a YLP recovery rate of only 12% for the funds disbursed in FY 2013/2014- 2015/2016 with full recovery expected by 2018/19. I further noted dis-integration of YLP groups who had received UGX.204,541,500 and whose recovery rate was 29.6%."], ["25", "Rubanda DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.2.392 Bn representing 10% under release. Further, the entity remained with unspent balance of UGX.0.702Bn representing an absorption level of 93.1%. \u2022 I noted that out of the 4 sampled key deliverables, 2 were fully implemented and 2 were partially implemented. \u2022 Under UgIFT, I noted incomplete works on the upgrading of Mpungu HC II to HC III which was awarded in the third quarter of the financial year I further noted 1.1% partial implementation in construction of Nyamweru Seed School due to delayed procurement process. \u2022 Under URF, Field inspections of a sample of road works revealed inadequate drainage for the completed works. \u2022 Under YLP, I noted there was no recovery for the funds disbursed in FY 2014/2015 to 2016/2017 with full recovery expected by 2018/19. I also noted a 24% shortfall in budget release for F/Y 2018/19 under YLP. \u2022 Under UWEP, I noted that from the financial year 2017/18 to date, the district had recovered only 8.4% of the expected total amount. \u2022 I noted an irregular award of the rehabilitation of Nyakasazi Gravity flow scheme in Nyamweru Sub County to a non-compliant contractor."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 285, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["SN", "LOCAL GOVERNMENTS", "SUMMARY OF KEY FINDINGS \u2022 I noted that management did not submit a report on performance appraisals to the Ministry of Public Service by 15th September 2018 contrary to the circular standing instructions \u2022 I noted that there were no quarterly performance reviews undertaken by the staff during the year under review contrary to the circular standing instructions."], "type": "table"}}, {"content": [["23", "Mitooma DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.0.053 Bn representing 0.2% under release. Further, the entity remained with unspent balance of UGX.0.644Bn representing an absorption level of 97%. \u2022 I noted that out of the 8 sampled key deliverables, 1 was fully implemented, 6 were partially implemented and 1 was not implemented at all. \u2022 Under UgIFT, I noted that the upgrading Bukuba HC II to HC III was awarded in the third quarter of the financial year and remained incomplete at F/Y end. Out of UGX.500,000,000 received, the entity utilized UGX.210,000,000 leaving UGX.240,952,947 as unspent and swept back to the Consolidated Fund. \u2022 Under YLP, I noted groups disbursed with UGX 115,018,000 from 2014/15 to 2018/19 dis- integrated after repaying 12.8%. I further noted a 45.4% recovery rate for funds disbursed from 2013/2014 - 2015/2016 expected to be recovered in 2018/19."], ["24", "Rukungiri MC **Opinion** Unqualified", "\u2022 There was an excess release above the budget amounting to UGX.0.45 Bn. Further, the entity remained with unspent balance of UGX.0.525Bn representing an absorption level of 93%. \u2022 I noted that out of the 9 Key deliverable, 5 deliverables were fully implemented and 4 were partially implemented. \u2022 Under UgIFT, I noted that the upgrading of Kitimba Health Center 11 was awarded in the third quarter of the financial year and was incomplete by year end. \u2022 I noted a YLP recovery rate of only 12% for the funds disbursed in FY 2013/2014- 2015/2016 with full recovery expected by 2018/19. I further noted dis-integration of YLP groups who had received UGX.204,541,500 and whose recovery rate was 29.6%."], ["25", "Rubanda DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.2.392 Bn representing 10% under release. Further, the entity remained with unspent balance of UGX.0.702Bn representing an absorption level of 93.1%. \u2022 I noted that out of the 4 sampled key deliverables, 2 were fully implemented and 2 were partially implemented. \u2022 Under UgIFT, I noted incomplete works on the upgrading of Mpungu HC II to HC III which was awarded in the third quarter of the financial year I further noted 1.1% partial implementation in construction of Nyamweru Seed School due to delayed procurement process. \u2022 Under URF, Field inspections of a sample of road works revealed inadequate drainage for the completed works. \u2022 Under YLP, I noted there was no recovery for the funds disbursed in FY 2014/2015 to 2016/2017 with full recovery expected by 2018/19. I also noted a 24% shortfall in budget release for F/Y 2018/19 under YLP. \u2022 Under UWEP, I noted that from the financial year 2017/18 to date, the district had recovered only 8.4% of the expected total amount. \u2022 I noted an irregular award of the rehabilitation of Nyakasazi Gravity flow scheme in Nyamweru Sub County to a non-compliant contractor."], ["26", "Kisoro MC **Opinion** Unqualified", ""], ["", "**MOROTO BRANCH**", ""], ["1", "Nakapiripirit DLG **Opinion**", "\u2022 There was excess expenditure of Shs.0.872bn."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 285, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["SN", "LOCAL GOVERNMENTS", "SUMMARY OF KEY FINDINGS \u2022 I noted that management did not submit a report on performance appraisals to the Ministry of Public Service by 15th September 2018 contrary to the circular standing instructions \u2022 I noted that there were no quarterly performance reviews undertaken by the staff during the year under review contrary to the circular standing instructions."], "type": "table"}}, {"content": "272", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 285, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["2", "Abim DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.5.3Bn representing 23% of approved budget. Further, the entity remained with unspent balance of UGX.1Bn representing an absorption level of 94%. \u2022 The District planned outputs were not well analyzed as required to enable me evaluate the extent of attainment of planned outputs. Sample review of projects revealed that most of the planned outputs under URF and NUSAF 3. \u2022 Gratuity arrears of UGX. 371,764,576 remained outstanding at year end. \u2022 Under NUSAF-3, there was a delayed disbursement of UGX.2.4bn for the third quarter by 75 days and the project was not audited by Internal Audit. \u2022 Under YLP, there was a shortfall in budget release of UGX.381million due to its suspension by the Ministry. I also noted a low recovery rate of only 2% of the funds disbursed to 28 groups and there were no repayment ledgers in place hindering recovery follow up. \u2022 Under water for production, I inspected 5 boreholes constructed and noted that 3 lacked protection walls."], ["3", "Napak DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.0.473bn representing 2.3%. Further, the entity remained with unspent balance of UGX.0.784Bn representing an absorption level of 96%. \u2022 I noted full implementation of planned outputs under UgIFT, URF routine mechanized maintenance and NUSAF 3 and partially implemented outputs of URF routine manual maintenance (74%), YLP (50%) while failure to implement outputs under UWEP \u2022 Gratuity arrears of UGX.46million remained outstanding at the year end. \u2022 Under UgIFT, I noted an over commitment of UGX.0.414bn in the contract for the construction of Napak Seed Secondary School. Further, the contractor did not provide a performance security and proof of insurance cover while the school also lacks a land title. \u2022 Under NUSAF-3, there was delayed disbursement of funds by 75 days and project assets were not properly managed and maintained. \u2022 Under URF, field inspection revealed that most culvert line headwalls were poorly back filled and the roads were not graveled and compacted resulting in soils being washed away. In addition some works were incomplete despite 97.3% payment. \u2022 Under YLP, the district had a recovery rate of only 30.9% of the funds disbursed in FY 2017/2018 and 2018/2019 and two youth groups received project funds which were shared amongst group members. \u2022 5 employees are still in acting positions for over 2 years contrary to standing instructions."], ["4", "Kotido DLG **Opinion**", "\u2022 UGX.821.96 million was mischarge of expenditure for the year. \u2022 UGX.857.6million payables were undisclosed."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 286, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["SN", "LOCAL GOVERNMENTS Unqualified", "SUMMARY OF KEY FINDINGS \u2022 I noted full and partial implementation of planned outputs under the programmes inspected i.e. NUSAF 3, UgIFT and URF mechanised at 100%, URF periodic at 96% and YLP at 82.6%. \u2022 Gratuity arrears of UGX.102,547,496 remained outstanding at year end. \u2022 URF implementation inspection revealed that the entity over spent by 14million on routine mechanized maintenance with some road sections lacking culvert lines and submerged by water. \u2022 Under NUSAF-3, there was a delayed disbursement of UGX.5.4bn by 75 days received in the third quarter. \u2022 Under UgIFT, there was an over commitment on the Nakapiripirit Seed School project by 74million and the school does not have a land title. \u2022 Under YLP funds I noted a recovery rate of only 15.7% of the funds disbursed to 105 groups. Further analysis revealed that 33 groups of the 105 had not paid any amount to the district recovery account and there were no repayment ledgers \u2022 Under water for production, Out of 212 deep boreholes with hand pump, 32 (15%) were non- functional. In addition 39% and 31% of the pumped piped water for homes and valley tanks were non-functional."], "type": "table"}}, {"content": [["2", "Abim DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.5.3Bn representing 23% of approved budget. Further, the entity remained with unspent balance of UGX.1Bn representing an absorption level of 94%. \u2022 The District planned outputs were not well analyzed as required to enable me evaluate the extent of attainment of planned outputs. Sample review of projects revealed that most of the planned outputs under URF and NUSAF 3. \u2022 Gratuity arrears of UGX. 371,764,576 remained outstanding at year end. \u2022 Under NUSAF-3, there was a delayed disbursement of UGX.2.4bn for the third quarter by 75 days and the project was not audited by Internal Audit. \u2022 Under YLP, there was a shortfall in budget release of UGX.381million due to its suspension by the Ministry. I also noted a low recovery rate of only 2% of the funds disbursed to 28 groups and there were no repayment ledgers in place hindering recovery follow up. \u2022 Under water for production, I inspected 5 boreholes constructed and noted that 3 lacked protection walls."], ["3", "Napak DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.0.473bn representing 2.3%. Further, the entity remained with unspent balance of UGX.0.784Bn representing an absorption level of 96%. \u2022 I noted full implementation of planned outputs under UgIFT, URF routine mechanized maintenance and NUSAF 3 and partially implemented outputs of URF routine manual maintenance (74%), YLP (50%) while failure to implement outputs under UWEP \u2022 Gratuity arrears of UGX.46million remained outstanding at the year end. \u2022 Under UgIFT, I noted an over commitment of UGX.0.414bn in the contract for the construction of Napak Seed Secondary School. Further, the contractor did not provide a performance security and proof of insurance cover while the school also lacks a land title. \u2022 Under NUSAF-3, there was delayed disbursement of funds by 75 days and project assets were not properly managed and maintained. \u2022 Under URF, field inspection revealed that most culvert line headwalls were poorly back filled and the roads were not graveled and compacted resulting in soils being washed away. In addition some works were incomplete despite 97.3% payment. \u2022 Under YLP, the district had a recovery rate of only 30.9% of the funds disbursed in FY 2017/2018 and 2018/2019 and two youth groups received project funds which were shared amongst group members. \u2022 5 employees are still in acting positions for over 2 years contrary to standing instructions."], ["4", "Kotido DLG **Opinion**", "\u2022 UGX.821.96 million was mischarge of expenditure for the year. \u2022 UGX.857.6million payables were undisclosed."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 286, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["SN", "LOCAL GOVERNMENTS Unqualified", "SUMMARY OF KEY FINDINGS \u2022 I noted full and partial implementation of planned outputs under the programmes inspected i.e. NUSAF 3, UgIFT and URF mechanised at 100%, URF periodic at 96% and YLP at 82.6%. \u2022 Gratuity arrears of UGX.102,547,496 remained outstanding at year end. \u2022 URF implementation inspection revealed that the entity over spent by 14million on routine mechanized maintenance with some road sections lacking culvert lines and submerged by water. \u2022 Under NUSAF-3, there was a delayed disbursement of UGX.5.4bn by 75 days received in the third quarter. \u2022 Under UgIFT, there was an over commitment on the Nakapiripirit Seed School project by 74million and the school does not have a land title. \u2022 Under YLP funds I noted a recovery rate of only 15.7% of the funds disbursed to 105 groups. Further analysis revealed that 33 groups of the 105 had not paid any amount to the district recovery account and there were no repayment ledgers \u2022 Under water for production, Out of 212 deep boreholes with hand pump, 32 (15%) were non- functional. In addition 39% and 31% of the pumped piped water for homes and valley tanks were non-functional."], "type": "table"}}, {"content": "273", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 286, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["5", "Amudat DLG **Opinion** Qualified", "\u2022 UGX.196.8million was unaccounted for by year end.  \u2022 There was a shortfall in releases amounting to UGX.1.75bn representing 12%. \u2022 Status review of implementation of planned outputs revealed that UgIFT, URF (Routine mechanized maintenance), NUSAF 3, YLP and UWEP were ongoing, 100%, 100%, 74.4% and 0% respectively. \u2022 Pension liability of UGX.33.8million was outstanding at year end. \u2022 Under UgIFT, the district made an over commitment of UGX.0.414bn in the contract for construction of Pokot Girls Seed Secondary School and the contractor did not execute a performance security while the school lacks a land title. \u2022 Under NUSAF-3, there was delayed disbursement of UGX.2.3Bn to the district and hence there were no funds transferred to the groups. \u2022 Under URF, field inspection revealed some impassable sections of the road. \u2022 Under YLP, I noted a recovery rate of only 32.6% of the funds disbursed in FY 2016/2017 and 2018/2019 and the District failed to transfer UGX.10.7M of the recovered funds to BOU. In addition there was no repayment ledger."], ["6", "Moroto DLG **Opinion** Qualified", "\u2022 UGX.0.446bn was Mischarged expenditure during the year.  \u2022 Funds to the tune of UGX.0.534bn were unaccounted for.  \u2022 UGX.0.346bn payables were undisclosed  \u2022 There was a shortfall in releases amounting to UGX.5.8bn representing 25%.  \u2022 I noted full implementation of planned outputs under different two projects (URF (Routine mechanized and manual maintenance and NUSAF 3) and partial implementation of YLP and UWEP at 82.6% and 56.41% respectively.  \u2022 Under NUSAF-3, I noted delayed disbursement of funds and delayed implementation of activities worth UGX.342million by seven groups to whom funds had been disbursed.  \u2022 Under URF, field inspection revealed impassable and non-motorable road sections.  \u2022 Under YLP, I noted a recovery rate of only 43.2% of the funds disbursed from FY 2016/2017 to 2018/2019 and one of the two youth groups inspected did not have a log book for the motorbike purchased and the second group did not avail cattle for inspection."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 287, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["SN", "LOCAL GOVERNMENTS Unqualified", "SUMMARY OF KEY FINDINGS \u2022 There was a shortfall in releases amounting to UGX.7.7bn representing 37%. Further, the entity over spent by UGX.0.324bn. \u2022 I noted full and partial implementation of planned outputs under different projects i.e. UgIFT and URF at 100% while NUSAF 3 and YLP were at 61% and 94% respectively. \u2022 Under NUSAF-3, I noted undisbursed funds of UGX.1.42bn to 45 groups due to a delay by the Ministry to transfer funds. Inspection of some subprojects revealed lack of accountability of money spent, poor records and failure to adhere to procurement guidelines. Project assets inspected were not properly managed and some were not availed for audit verification. \u2022 Under URF, field inspection revealed impassable road sections due to failure to install culverts, growing bushes due to heavy rains and incomplete road sections. \u2022 Under YLP, I noted a recovery rate of only 49% of the funds disbursed from FY 2014/2015 to date. Inspection of two groups revealed lack of financing agreements in place, poor records management and selected members had not been trained on repayment terms. \u2022 The district awarded VAT amounting to UGX.153.3million to 42 companies which had not registered for VAT. \u2022 I noted incomplete works for construction of motorised pump boreholes three months after contract expected completion date and thus communities could not realise the benefits. \u2022 I noted staffing gaps of 55% out of the approved staffing level of 322 positions. \u2022 There was lack of land titles for sub-county offices and main District. \u2022 I noted irregular payment of personal expenses through the imprest bank account worth UGX.859.8million and UGX.237.1million was paid in excess of monthly imprest limit."], "type": "table"}}, {"content": "274", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 287, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["7", "Kaabong DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.4.82bn representing 16% of approved budget. \u2022 The District planned outputs were not well analyzed as required to enable me evaluate the extent of attainment of planned outputs. Sample review of projects revealed that YLP and URF (maintenance) achieved all outputs while emergency works, UWEP and NUSAF 3 performed at 48%, 82% and 82% respectively. \u2022 Under URF field inspection I noted road sections had been destroyed by cows and oxen during the rainy season for works under routine mechanized maintenance and substandard works were noted under emergency works with overgrown grass on road sections. \u2022 Under NUSAF-3, there was a delayed disbursement of UGX.6.2bn received in third quarter by 75 days and the project lacked vital records and therefore could not confirm if funds were utilized as intended. The project assets were nonfunctional due to lack of maintenance. \u2022 Under YLP, I noted a recovery rate of only 41.2% for the financial years 2013/2014 to 2015/2016. An analysis of 2 groups revealed that one group could not be traced and had not repaid any amount whereas the second group had shared the money. There were no repayments ledgers in place hindering recovery follow up. \u2022 Under UWEP, one beneficiary group could not avail a motorcycle for audit inspection while another beneficiary group had changed enterprise after withdrawing all the funds. \u2022 There were no land titles for the district land.  \u2022 UGX.0.241bn was paid as VAT to 10 companies not registered for VAT. \u2022 Inspection of Kaabong Hospital revealed payment for cleaning services without certification of daily works."], ["8", "Nabilatuk DLG **Opinion** Unqualified", "\u2022 The entity received 100% of all funds but remained with unspent balance of UGX.1bn representing an absorption level of 88.1%. \u2022 The District implementation level for UgIFT, URF, UWEP and YLP 100%, 100% for 72% and 48% respectively. \u2022 UGX.0.216bn payables were outstanding at year end. \u2022 Under UgIFT, I noted a contract price of 2.3bn that was over the cost of UGX.1.9bn provided by guidelines and the contractor for the seed school did not provide a performance security. \u2022 Under UWEP, there was a shortfall in funds by 13% and inspection of some groups revealed non implementation of activities given that the groups shared money amongst themselves and no trainings were carried out to provide technical guidance and lack of financial records. \u2022 Under YLP, inspection of some groups revealed non implementation of activities, diversion of funds to unapproved projects, disintegration of groups and retention of some funds at sub- counties. \u2022 Under URF, inspection revealed poor backfilling of culvert line headwalls poorly resulting in soils being washed away and exposing the culverts to breakage. \u2022 I noted that out of 341 approved posts for the traditional and Health staff, 168 (51%) were vacant."], ["9", "Kotido MC", "\u2022 There was a shortfall in releases amounting to UGX.0.79bn representing 12%. Further, the entity remained with unspent balance of UGX.0.617bn representing an absorption level of 89.4%."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 288, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["SN", "LOCAL GOVERNMENTS", "SUMMARY OF KEY FINDINGS \u2022 Under UWEP, the district recovered only 14% of the expected funds. \u2022 VAT amounting to UGX.0.074bn was awarded to 3 companies which had either not registered or been deregistered due to non-compliance. \u2022 I noted over commitment for the construction of Katikekile Seed School by UGX.20million and the district did not obtain a land title before commencing construction. \u2022 Under water for production, the district failed to provide post construction support for 3 boreholes which did not have protection walls. \u2022 Payroll review revealed UGX. 5.3million was paid to persons not on the payroll, UGX.7.5 was over payments of salary while UGX.35.3 were salary underpayments."], "type": "table"}}, {"content": [["7", "Kaabong DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.4.82bn representing 16% of approved budget. \u2022 The District planned outputs were not well analyzed as required to enable me evaluate the extent of attainment of planned outputs. Sample review of projects revealed that YLP and URF (maintenance) achieved all outputs while emergency works, UWEP and NUSAF 3 performed at 48%, 82% and 82% respectively. \u2022 Under URF field inspection I noted road sections had been destroyed by cows and oxen during the rainy season for works under routine mechanized maintenance and substandard works were noted under emergency works with overgrown grass on road sections. \u2022 Under NUSAF-3, there was a delayed disbursement of UGX.6.2bn received in third quarter by 75 days and the project lacked vital records and therefore could not confirm if funds were utilized as intended. The project assets were nonfunctional due to lack of maintenance. \u2022 Under YLP, I noted a recovery rate of only 41.2% for the financial years 2013/2014 to 2015/2016. An analysis of 2 groups revealed that one group could not be traced and had not repaid any amount whereas the second group had shared the money. There were no repayments ledgers in place hindering recovery follow up. \u2022 Under UWEP, one beneficiary group could not avail a motorcycle for audit inspection while another beneficiary group had changed enterprise after withdrawing all the funds. \u2022 There were no land titles for the district land.  \u2022 UGX.0.241bn was paid as VAT to 10 companies not registered for VAT. \u2022 Inspection of Kaabong Hospital revealed payment for cleaning services without certification of daily works."], ["8", "Nabilatuk DLG **Opinion** Unqualified", "\u2022 The entity received 100% of all funds but remained with unspent balance of UGX.1bn representing an absorption level of 88.1%. \u2022 The District implementation level for UgIFT, URF, UWEP and YLP 100%, 100% for 72% and 48% respectively. \u2022 UGX.0.216bn payables were outstanding at year end. \u2022 Under UgIFT, I noted a contract price of 2.3bn that was over the cost of UGX.1.9bn provided by guidelines and the contractor for the seed school did not provide a performance security. \u2022 Under UWEP, there was a shortfall in funds by 13% and inspection of some groups revealed non implementation of activities given that the groups shared money amongst themselves and no trainings were carried out to provide technical guidance and lack of financial records. \u2022 Under YLP, inspection of some groups revealed non implementation of activities, diversion of funds to unapproved projects, disintegration of groups and retention of some funds at sub- counties. \u2022 Under URF, inspection revealed poor backfilling of culvert line headwalls poorly resulting in soils being washed away and exposing the culverts to breakage. \u2022 I noted that out of 341 approved posts for the traditional and Health staff, 168 (51%) were vacant."], ["9", "Kotido MC", "\u2022 There was a shortfall in releases amounting to UGX.0.79bn representing 12%. Further, the entity remained with unspent balance of UGX.0.617bn representing an absorption level of 89.4%."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 288, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["SN", "LOCAL GOVERNMENTS", "SUMMARY OF KEY FINDINGS \u2022 Under UWEP, the district recovered only 14% of the expected funds. \u2022 VAT amounting to UGX.0.074bn was awarded to 3 companies which had either not registered or been deregistered due to non-compliance. \u2022 I noted over commitment for the construction of Katikekile Seed School by UGX.20million and the district did not obtain a land title before commencing construction. \u2022 Under water for production, the district failed to provide post construction support for 3 boreholes which did not have protection walls. \u2022 Payroll review revealed UGX. 5.3million was paid to persons not on the payroll, UGX.7.5 was over payments of salary while UGX.35.3 were salary underpayments."], "type": "table"}}, {"content": "275", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 288, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["10", "Moroto RRH **Opinion** Qualified", "\u2022 UGX.96million was unaccounted for by year end  \u2022 UGX 39M incurred on pension and gratuity payments was unsupported.  \u2022 There was a shortfall in releases amounting to UGX.0.643bn representing 9%of approved budget. Further, the entity remained with unspent balance of UGX.0.494bn representing an absorption level of 93%.  \u2022 There was non-quantification of 6 outputs hindering measurement of performance.  \u2022 UGX.0.16bn was Mischarged expenditure during the year.  \u2022 I noted that 6 outputs were not quantified to enable measurement of performance. Further, the District implemented fully 4 of the 6 quantified outputs while 2 were partially implemented.  \u2022 UGX.0.135bn payables remained outstanding at year end.  \u2022 I noted excess expenditure on goods and services worth UGX0.132bn.  \u2022 There was overpayment of salaries to the tune of UGX.0.162bn.  \u2022 UGX 72M payment of taxable arrears was unsupported  \u2022 Out of 370 staff posts, 126 posts are vacant representing of 34% staff shortage.  \u2022 I noted Irregular composition of the contracts committee by an officer who acted on behalf of the solicitor General and also participated in approval of the contract.  \u2022 I noted delayed disposal of expired drugs since 2017.  \u2022 There was shortage of medical equipment and poor working condition of available medical equipment hindering service delivery.  \u2022 I noted that 58 staff were residing under temporary Iron-sheet shelters and uniports while 21 were not assigned any house."], ["11", "Moroto MC **Opinion** Qualified", "\u2022 UGX.1bn was unaccounted for funds during the year  \u2022 UGX.1.86bn payables were unsupported.  \u2022 There was a shortfall in releases amounting to UGX.0.603bn representing 11%.  \u2022 I noted full implementation of the planned outputs under USMID, URF routine manual maintenance and SFG and partial implementation of UWEP (80%) with unimplemented outputs under URF periodic maintenance and YLP.  \u2022 UGX.162.7million was Pension liability outstanding at year end.  \u2022 UGX. 107.8million was overpaid on supervision of Moroto Bus Terminal civil works contract  \u2022 Under URF, the contractor was irregularly advanced 68% of funds for periodic maintenance and some road sections were poorly done and remained incomplete.  \u2022 Under YLP, I noted a recovery rate of only 37% of the funds disbursed from the financial year 2016/2017 to 2018/2019.  \u2022 Under UWEP, the recovery rate was low and inspection of one group revealed a change in names making it hard to confirm its existence.  \u2022 I noted direct procurements worth UGX.0.471bn which eliminated competition.  \u2022 UGX.13.6M was paid as VAT to a not registered firm for supervision of Moroto Bus terminal civil works."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 289, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["SN", "LOCAL GOVERNMENTS Opinion Unqualified", "SUMMARY OF KEY FINDINGS \u2022 The status of implementation of planned outputs under different projects was as follows; (URF (Routine mechanized maintenance 54.8%, Routine manual maintenance 68%, Periodic maintenance 0%, YLP 97% and UWEP 78%) \u2022 Under URF, the entity did not conduct quality tests on materials that were utilized on road maintenance and i observed that Council does not have capacity and equipment to undertake tarmac works on the road hence the minimal works undertaken. In addition there was no site ledger for the materials taken on site. \u2022 Under YLP, there was no repayment ledger in place. \u2022 Under UWEP, most of the approved projects failed to access funding due to budget cuts."], "type": "table"}}, {"content": [["10", "Moroto RRH **Opinion** Qualified", "\u2022 UGX.96million was unaccounted for by year end  \u2022 UGX 39M incurred on pension and gratuity payments was unsupported.  \u2022 There was a shortfall in releases amounting to UGX.0.643bn representing 9%of approved budget. Further, the entity remained with unspent balance of UGX.0.494bn representing an absorption level of 93%.  \u2022 There was non-quantification of 6 outputs hindering measurement of performance.  \u2022 UGX.0.16bn was Mischarged expenditure during the year.  \u2022 I noted that 6 outputs were not quantified to enable measurement of performance. Further, the District implemented fully 4 of the 6 quantified outputs while 2 were partially implemented.  \u2022 UGX.0.135bn payables remained outstanding at year end.  \u2022 I noted excess expenditure on goods and services worth UGX0.132bn.  \u2022 There was overpayment of salaries to the tune of UGX.0.162bn.  \u2022 UGX 72M payment of taxable arrears was unsupported  \u2022 Out of 370 staff posts, 126 posts are vacant representing of 34% staff shortage.  \u2022 I noted Irregular composition of the contracts committee by an officer who acted on behalf of the solicitor General and also participated in approval of the contract.  \u2022 I noted delayed disposal of expired drugs since 2017.  \u2022 There was shortage of medical equipment and poor working condition of available medical equipment hindering service delivery.  \u2022 I noted that 58 staff were residing under temporary Iron-sheet shelters and uniports while 21 were not assigned any house."], ["11", "Moroto MC **Opinion** Qualified", "\u2022 UGX.1bn was unaccounted for funds during the year  \u2022 UGX.1.86bn payables were unsupported.  \u2022 There was a shortfall in releases amounting to UGX.0.603bn representing 11%.  \u2022 I noted full implementation of the planned outputs under USMID, URF routine manual maintenance and SFG and partial implementation of UWEP (80%) with unimplemented outputs under URF periodic maintenance and YLP.  \u2022 UGX.162.7million was Pension liability outstanding at year end.  \u2022 UGX. 107.8million was overpaid on supervision of Moroto Bus Terminal civil works contract  \u2022 Under URF, the contractor was irregularly advanced 68% of funds for periodic maintenance and some road sections were poorly done and remained incomplete.  \u2022 Under YLP, I noted a recovery rate of only 37% of the funds disbursed from the financial year 2016/2017 to 2018/2019.  \u2022 Under UWEP, the recovery rate was low and inspection of one group revealed a change in names making it hard to confirm its existence.  \u2022 I noted direct procurements worth UGX.0.471bn which eliminated competition.  \u2022 UGX.13.6M was paid as VAT to a not registered firm for supervision of Moroto Bus terminal civil works."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 289, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["SN", "LOCAL GOVERNMENTS Opinion Unqualified", "SUMMARY OF KEY FINDINGS \u2022 The status of implementation of planned outputs under different projects was as follows; (URF (Routine mechanized maintenance 54.8%, Routine manual maintenance 68%, Periodic maintenance 0%, YLP 97% and UWEP 78%) \u2022 Under URF, the entity did not conduct quality tests on materials that were utilized on road maintenance and i observed that Council does not have capacity and equipment to undertake tarmac works on the road hence the minimal works undertaken. In addition there was no site ledger for the materials taken on site. \u2022 Under YLP, there was no repayment ledger in place. \u2022 Under UWEP, most of the approved projects failed to access funding due to budget cuts."], "type": "table"}}, {"content": "276", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 289, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["", "**SOROTI BRANCH**", ""], ["1", "Bukedea DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.0.379 Bn representing 1.42% of the budget. Further, the entity remained with unspent balance of UGX.0.298Bn. \u2022 Out of the five projects inspected (UgIFT, URF, NUSAF 3, YLP and UWEP programme) (1) were fully achieved while (4) were partially implemented. \u2022 I noted that the district did receive any donor funding despite budgeting for UGX 0.243 bn  \u2022 The district had UGX.0.399 bn as pension arrears by the end of the year under review.  \u2022 The district had UGX.9,713,000 as non-accounted for funds by the end of the year under review. \u2022 The district made overpayment of salary worth UGX.2,293,12 in the period under review. \u2022 945 hectares of district land in nine locations had not been secured by titling hence the risk of encroachment and disputes. \u2022 Works under UgIFT were ongoing with one of the structures at plastering of the walls, the other at ring beam level while the last one at foundation level. \u2022 Under NUSAF-3 UGX.1.222bn was used to support 35 beneficiary sub-groups. I noted that UGX.0.442bn had not been withdrawn from the bank accounts, which negatively affects project implementation. Out of the 5 subprojects inspected I noted poor participation and opposition of projects by some group members and non-functional project assets. \u2022 Field inspections Under URF revealed sections of some roads were poorly managed as evidenced by the failure to install culverts, failure to spread murram, nonuse of murram and low-cost sealing. \u2022 I noted a recovery rate of only 18.58% of the funds disbursed in FY 2014/2015 to 2017/2018 under the YLP project. In addition, two of the groups that received funds just shared the funds among the members. \u2022 Under UWEP, I noted that groups repaid only 44% of the total of disbursement in the FYs 2016/17 to 2017/18. Two women groups received project funds which were shared amongst group members since no approved project was carried out. \u2022 Under water for production, I noted non-functional water sources. \u2022 Inspection of Atutur hospital revealed that the hospital has shortage of medical equipment and nonfunctional medical equipment."], ["2", "Soroti DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX. 1.07Bn representing 3.82%. Further, the entity remained with unspent balance of UGX.3.68Bn representing an over absorption level of 114%. \u2022 Out of the five projects inspected (UgIFT, URF, NUSAF 3, YLP and UWEP programme) (2) were fully achieved while (3) were partially implemented. \u2022 Entity failed to pay pension to respective pensioners worth UGX.4.19bn in the year under review \u2022 Entity had 30 pending and on-going court cases, some dating as far back as 2011. None was disposed in the year under review. \u2022 175 plots of district land on seven locations had not been secured by titling hence the risk of encroachment and disputes. \u2022 Works under UgIFT were ongoing with one of the structures at ring beam level while the other was not yet started yet funds of UGX.0.551bn had already been advanced. \u2022 Under NUSAF-3 UGX.2.111bn was used to support 64 beneficiary sub-groups. I noted that UGX.0.530bn had not been withdrawn from the bank accounts, which negatively affects project implementation. I noted poor management and incomplete works on CARs. \u2022 Under URF field inspection revealed sections of some roads were poorly maintained with eroded shoulders, lack of off-shoots, water logged sections and poor compaction of murram. \u2022 Under YLP, I noted a recovery rate of only 34% of the funds disbursed in FY 2014/2015 to 2015/2016. Besides two youth groups received project funds but one group disintegrated."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 290, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["SN", "LOCAL GOVERNMENTS", "SUMMARY OF KEY FINDINGS \u2022 Under USMID-AF, the council failed to avail work plans and budget for funds spent worth UGX.0.977bn under the project."], "type": "table"}}, {"content": [["", "**SOROTI BRANCH**", ""], ["1", "Bukedea DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.0.379 Bn representing 1.42% of the budget. Further, the entity remained with unspent balance of UGX.0.298Bn. \u2022 Out of the five projects inspected (UgIFT, URF, NUSAF 3, YLP and UWEP programme) (1) were fully achieved while (4) were partially implemented. \u2022 I noted that the district did receive any donor funding despite budgeting for UGX 0.243 bn  \u2022 The district had UGX.0.399 bn as pension arrears by the end of the year under review.  \u2022 The district had UGX.9,713,000 as non-accounted for funds by the end of the year under review. \u2022 The district made overpayment of salary worth UGX.2,293,12 in the period under review. \u2022 945 hectares of district land in nine locations had not been secured by titling hence the risk of encroachment and disputes. \u2022 Works under UgIFT were ongoing with one of the structures at plastering of the walls, the other at ring beam level while the last one at foundation level. \u2022 Under NUSAF-3 UGX.1.222bn was used to support 35 beneficiary sub-groups. I noted that UGX.0.442bn had not been withdrawn from the bank accounts, which negatively affects project implementation. Out of the 5 subprojects inspected I noted poor participation and opposition of projects by some group members and non-functional project assets. \u2022 Field inspections Under URF revealed sections of some roads were poorly managed as evidenced by the failure to install culverts, failure to spread murram, nonuse of murram and low-cost sealing. \u2022 I noted a recovery rate of only 18.58% of the funds disbursed in FY 2014/2015 to 2017/2018 under the YLP project. In addition, two of the groups that received funds just shared the funds among the members. \u2022 Under UWEP, I noted that groups repaid only 44% of the total of disbursement in the FYs 2016/17 to 2017/18. Two women groups received project funds which were shared amongst group members since no approved project was carried out. \u2022 Under water for production, I noted non-functional water sources. \u2022 Inspection of Atutur hospital revealed that the hospital has shortage of medical equipment and nonfunctional medical equipment."], ["2", "Soroti DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX. 1.07Bn representing 3.82%. Further, the entity remained with unspent balance of UGX.3.68Bn representing an over absorption level of 114%. \u2022 Out of the five projects inspected (UgIFT, URF, NUSAF 3, YLP and UWEP programme) (2) were fully achieved while (3) were partially implemented. \u2022 Entity failed to pay pension to respective pensioners worth UGX.4.19bn in the year under review \u2022 Entity had 30 pending and on-going court cases, some dating as far back as 2011. None was disposed in the year under review. \u2022 175 plots of district land on seven locations had not been secured by titling hence the risk of encroachment and disputes. \u2022 Works under UgIFT were ongoing with one of the structures at ring beam level while the other was not yet started yet funds of UGX.0.551bn had already been advanced. \u2022 Under NUSAF-3 UGX.2.111bn was used to support 64 beneficiary sub-groups. I noted that UGX.0.530bn had not been withdrawn from the bank accounts, which negatively affects project implementation. I noted poor management and incomplete works on CARs. \u2022 Under URF field inspection revealed sections of some roads were poorly maintained with eroded shoulders, lack of off-shoots, water logged sections and poor compaction of murram. \u2022 Under YLP, I noted a recovery rate of only 34% of the funds disbursed in FY 2014/2015 to 2015/2016. Besides two youth groups received project funds but one group disintegrated."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 290, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["SN", "LOCAL GOVERNMENTS", "SUMMARY OF KEY FINDINGS \u2022 Under USMID-AF, the council failed to avail work plans and budget for funds spent worth UGX.0.977bn under the project."], "type": "table"}}, {"content": "277", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 290, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["3", "Kaberamaido DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX. 1.27Bn representing 5% of the budget. Further, the entity remained with unspent balance of UGX.0.956Bn representing an absorption level of 96%. I also noted diversion of funds worth UGX.32,064,904. \u2022 The entire five projects inspected (UgIFT, URF, NUSAF 3, YLP and UWEP programme) were fully implemented. \u2022 Out of the budgeted donor funding of UGX.1.097bn only UGX.0.667Bn was received representing 60.79% was received. \u2022 I noted a delay of 22 days in the procurement process under UgIFT and works at one of the structures was at foundation level. \u2022 Under NUSAF-3 UGX.1.718bn was used to support 45 beneficiary sub-groups. Out of the 8 subprojects inspected I noted implementation challenges such as failure to implement activities, underutilization of project funds, delayed implementation of projects and incomplete works on CARs \u2022 URF field inspection revealed sections of some roads worked on were poorly maintained with overgrown grass. \u2022 I noted a recovery rate of only 17% of the funds disbursed in FY 2014/2015 to 2018/2019. There were also a number of implementation challenges such as youth changing locations, misuse of funds, disintegration of some groups, failure to payback and misinterpretation of the funds received for political handouts. \u2022 Under UWEP, I noted that groups repaid only 16% of the total of disbursement in the FYs 2016/17 to 2018/19. Out of the total recoveries of UGX.32,868,400 only UGX26,300,000 was transferred to revolving fund account."], ["4", "Dokolo DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.3.340Bn representing 14.37% of the budget. Further, the entity had unspent balance of UGX.0.145Bn representing an absorption level of 100.7%. \u2022 Out of the five projects inspected (UgIFT, URF, NUSAF 3, YLP and UWEP programme) (1) were fully achieved while (4) were partially implemented. \u2022 Out of the budgeted donor funding of UGX.0.544bn only UGX.36, 952,500 representing 6.8% was received. \u2022 Entity had UGX.15, 468,711 pension arrears by the end of the year under review. \u2022 Works under UgIFT were ongoing with one of the structures abandoned at roofing level and the other works had been delayed hence not started. \u2022 Under NUSAF-3 UGX.1.077bn was used to support 34 beneficiary sub-groups. Out of the 3 subprojects inspected I noted poor management of projects, incomplete works with dumped culverts and lack of signposts on CARs. Besides, there are nonfunctional project assets. \u2022 Under URF field inspection revealed sections of some roads which were poorly managed with spots of poor compaction of murram and low-cost sealing. \u2022 I noted a recovery rate of only 71% of the funds disbursed in FY 2014/2015 to 2015/2016. Besides, implantation challenges included, killer diseases under the piggery projects, effects of the weather to the agriculture projects, loss of interest in YLP funds and groups received project funds which were shared amongst group members. \u2022 Under UWEP, I noted that groups repaid only 45% of the total of disbursement in the FYs 2016/17 to 2018/19. I also noted other implantation challenges such as droughts, price fluctuations, disappearance of chairpersons on receipts of the monies, change of business than those approved, non-active groups and groups received project funds which were shared amongst group members. \u2022 Under water for production the district received UGX.0.257bn for water sector activities; however I noted non-functional water sources and poorly maintained boreholes."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 291, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["SN", "LOCAL GOVERNMENTS", "SUMMARY OF KEY FINDINGS \u2022 Under UWEP, I noted that groups repaid only 44.8% of the total of disbursement in the FYs 2017/18 to 2018/19. \u2022 Under water for production, I noted non-functional water sources."], "type": "table"}}, {"content": [["3", "Kaberamaido DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX. 1.27Bn representing 5% of the budget. Further, the entity remained with unspent balance of UGX.0.956Bn representing an absorption level of 96%. I also noted diversion of funds worth UGX.32,064,904. \u2022 The entire five projects inspected (UgIFT, URF, NUSAF 3, YLP and UWEP programme) were fully implemented. \u2022 Out of the budgeted donor funding of UGX.1.097bn only UGX.0.667Bn was received representing 60.79% was received. \u2022 I noted a delay of 22 days in the procurement process under UgIFT and works at one of the structures was at foundation level. \u2022 Under NUSAF-3 UGX.1.718bn was used to support 45 beneficiary sub-groups. Out of the 8 subprojects inspected I noted implementation challenges such as failure to implement activities, underutilization of project funds, delayed implementation of projects and incomplete works on CARs \u2022 URF field inspection revealed sections of some roads worked on were poorly maintained with overgrown grass. \u2022 I noted a recovery rate of only 17% of the funds disbursed in FY 2014/2015 to 2018/2019. There were also a number of implementation challenges such as youth changing locations, misuse of funds, disintegration of some groups, failure to payback and misinterpretation of the funds received for political handouts. \u2022 Under UWEP, I noted that groups repaid only 16% of the total of disbursement in the FYs 2016/17 to 2018/19. Out of the total recoveries of UGX.32,868,400 only UGX26,300,000 was transferred to revolving fund account."], ["4", "Dokolo DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.3.340Bn representing 14.37% of the budget. Further, the entity had unspent balance of UGX.0.145Bn representing an absorption level of 100.7%. \u2022 Out of the five projects inspected (UgIFT, URF, NUSAF 3, YLP and UWEP programme) (1) were fully achieved while (4) were partially implemented. \u2022 Out of the budgeted donor funding of UGX.0.544bn only UGX.36, 952,500 representing 6.8% was received. \u2022 Entity had UGX.15, 468,711 pension arrears by the end of the year under review. \u2022 Works under UgIFT were ongoing with one of the structures abandoned at roofing level and the other works had been delayed hence not started. \u2022 Under NUSAF-3 UGX.1.077bn was used to support 34 beneficiary sub-groups. Out of the 3 subprojects inspected I noted poor management of projects, incomplete works with dumped culverts and lack of signposts on CARs. Besides, there are nonfunctional project assets. \u2022 Under URF field inspection revealed sections of some roads which were poorly managed with spots of poor compaction of murram and low-cost sealing. \u2022 I noted a recovery rate of only 71% of the funds disbursed in FY 2014/2015 to 2015/2016. Besides, implantation challenges included, killer diseases under the piggery projects, effects of the weather to the agriculture projects, loss of interest in YLP funds and groups received project funds which were shared amongst group members. \u2022 Under UWEP, I noted that groups repaid only 45% of the total of disbursement in the FYs 2016/17 to 2018/19. I also noted other implantation challenges such as droughts, price fluctuations, disappearance of chairpersons on receipts of the monies, change of business than those approved, non-active groups and groups received project funds which were shared amongst group members. \u2022 Under water for production the district received UGX.0.257bn for water sector activities; however I noted non-functional water sources and poorly maintained boreholes."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 291, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["SN", "LOCAL GOVERNMENTS", "SUMMARY OF KEY FINDINGS \u2022 Under UWEP, I noted that groups repaid only 44.8% of the total of disbursement in the FYs 2017/18 to 2018/19. \u2022 Under water for production, I noted non-functional water sources."], "type": "table"}}, {"content": "278", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 291, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["6", "Kumi DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX. 1.49Bn representing 5.5% under release. Further, the entity remained with unspent balance of UGX.0.747Bn representing an absorption level of 97%. \u2022 Out of the five projects inspected (UgIFT, URF, NUSAF 3, YLP and UWEP programme) (2) were fully achieved while (3) were partially implemented. \u2022 Out of the budgeted donor funding of UGX.90,654,000m only UGX.15,343,500m representing 16.93% was received. \u2022 Entity had 21 pending and on-going court cases, some dating as far back as 2005. None was disposed in the year under review. \u2022 6 hectares of district land on seven locations had not been secured by titling hence the risk of encroachment and disputes. \u2022 Works under UgIFT, a 2 stance VIP latrine had not been erected yet funds had already been paid. \u2022 Under NUSAF-3 UGX.2.225bn was used to support 32 beneficiary sub-groups. I noted that UGX.75,974,550 had not been withdrawn from the bank accounts, which negatively affects project implementation. Out of the 3 subprojects inspected I noted poor management of projects and incomplete works on CARs \u2022 Under URF field inspection revealed sections of some roads were poorly maintained with overgrown bushes and silted culverts affecting the flow of rainwater. In addition, I observed incomplete works on projects. \u2022 UGX.0.320bn was received to construct five teachers\u2019 staff houses in Nyero sub-county, however I noted that the construction works of the kitchen, reservoir tank and the environmental restoration had not been done."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 292, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["SN  5", "LOCAL GOVERNMENTS Katakwi DLG Opinion Unqualified", "SUMMARY OF KEY FINDINGS \u2022 There was a shortfall in releases amounting to UGX. 2.86Bn representing 10.65% under release. Further, the entity remained with unspent balance of UGX.0.215Bn representing an absorption level of 99.11%. \u2022 Out of the four projects inspected (UgIFT, NUSAF 3, YLP and UWEP programme) (1) was fully achieved while (3) were partially implemented. \u2022 Out of the budgeted donor funding of UGX1.757bn only UGX.93,129,836m representing 5% was received. \u2022 Entity had un-remitted WHT arrears worth UGX.2,269,760m by the close of the year under review. \u2022 The Entity had non-accounted for funds worth UGX.6,910,638m by the close of the year under review. \u2022 Under NUSAF-3 UGX.1.735bn was used to support 35 beneficiary sub-groups. I noted that only 6 groups had fully implemented the activities. I noted that funds worth UGX.36,000,000 meant for NUSAF 3 subprojects was transferred to two Sub-county accounts. Out of the 3 subprojects inspected I noted poor management of projects and incomplete works on CARs \u2022 Under URF field inspection revealed that sections of some roads were poorly maintained with swampy and flooded sections making some roads sections impassable. \u2022 I noted a delay of 118 days in disbursement of YLP funds from the districts to beneficiaries. Further, I noted a recovery rate of only 13.56% of the funds disbursed in FY 2015/2016 to 2018/2019. I noted that UGX.0.8bn had been recovered by 30/6/2018 but not transferred to the national revolving fund. \u2022 I noted a delay of 222 days in disbursement of funds from the districts to beneficiaries Under UWEP, the groups had repaid only 20% of the total of disbursement in the FYs 2015/16 to 2018/19. \u2022 Inspection of Katakwi hospital revealed that the hospital has nonfunctional medical equipment\u2019s and drug stock outs. \u2022 Entity had grounded assets with no plans to resort them to useable conditions."], "type": "table"}}, {"content": "279", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 292, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["7", "Amolatar DLG **Opinion** Qualified", "\u2022 There was a shortfall in releases amounting to UGX. 1.564Bn representing 8% under release. Further, the entity remained with unspent balance of UGX.0.394Bn representing an absorption level of 98%. \u2022 Out of the five projects inspected (UgIFT, URF, NUSAF 3, YLP and UWEP programme) (2) were fully achieved while (3) were partially implemented. \u2022 Out of the budgeted donor funding of UGX.147m only UGX.84,246,413m representing 57% of the budget was received. \u2022 11 pieces of the district land in seven locations had not been secured by titling hence the risk of encroachment and disputes. \u2022 Works under UgIFT were ongoing with one of the structures which was at ring beam abandoned. \u2022 Under NUSAF-3 UGX.0.962bn was used to support 39 beneficiary sub-groups. I noted that UGX.0.407bn had not been withdrawn from the bank accounts, which negatively affects project implementation. Out of the 4 subprojects inspected I noted poor graveled road sections, not sprayed murram, lack of side drains, poorly leveled platforms, in some projects, seedlings were not yet bought and works were incomplete on CARs \u2022 Under URF, field inspection revealed sections of some roads were poorly maintained with overgrown bushes, washed away murram, swampy road sections and silted culverts affecting the flow of rainwater. In addition I noted cases of non-constitution of district road committees. \u2022 I noted a delay of 21 days in disbursement of YLP funds from the districts to beneficiaries. Further, I noted a recovery rate of only 24% of the funds disbursed in FY 2014/2015 to 2015/2016. \u2022 Under UWEP, I noted a delay of 4 months in disbursement of funds from the districts to beneficiaries. I noted that groups repaid only 25% of the total of disbursement in the FYs 2016/17 to 2017/18. Besides two women groups received project funds which were shared amongst group members. \u2022 Under water for production the district received UGX.0.242bn for water sector activities. I could however not examine the utilisation of part of these funds since the expenditure records were reported as stolen \u2022 Inspection of Amolatar HC IV revealed that the HC has challenges of drug stock outs."], ["8", "Kapelebyong DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.0.167bn representing 1.71% of the budget. Further, the entity remained with unspent balance of UGX.58,139,839 representing an absorption level of 99.4%. \u2022 Out of the eleven outputs including 3 projects inspected (URF, YLP and UWEP programme) (7) were fully achieved while (4) were partially implemented. \u2022 URF field inspection revealed sections of some roads were poorly maintained with lack of offshoots and swampy areas. \u2022 I noted a delay of 121 days in disbursement of YLP funds from the districts to beneficiaries. Further, I noted a recovery rate of only 26% of the funds disbursed in FY 2014/2015 to 2015/2016 while UGX.4,315,875m recovered was not yet transferred to the national revolving"]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 293, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["SN", "LOCAL GOVERNMENTS", "SUMMARY OF KEY FINDINGS \u2022 I noted a delay of 80 days in disbursement of YLP funds from the districts to beneficiaries. Further, I noted a recovery rate of only 24% of the funds disbursed in FY 2015/2016 to 2017/2018. Two youth groups received project funds which were then shared amongst group members. \u2022 Under UWEP, projects funds worth UGX.0.0183bn meant for F/Y 2017/2018, were released to the district in the third quarter of the F/Y 2018/2019 resulting into delayed implementation of the projects. Further, I noted that groups repaid only 39% of the total of disbursement in the FYs 2016/17 to 2018/19. Two women groups received project funds which were shared amongst group members. \u2022 Inspection of Atutur hospital revealed that the hospital structure require a face-lift that estimated at UGX.0.842bn. The hospital also had challenges of understaffing (48%) and drug stock outs."], "type": "table"}}, {"content": [["7", "Amolatar DLG **Opinion** Qualified", "\u2022 There was a shortfall in releases amounting to UGX. 1.564Bn representing 8% under release. Further, the entity remained with unspent balance of UGX.0.394Bn representing an absorption level of 98%. \u2022 Out of the five projects inspected (UgIFT, URF, NUSAF 3, YLP and UWEP programme) (2) were fully achieved while (3) were partially implemented. \u2022 Out of the budgeted donor funding of UGX.147m only UGX.84,246,413m representing 57% of the budget was received. \u2022 11 pieces of the district land in seven locations had not been secured by titling hence the risk of encroachment and disputes. \u2022 Works under UgIFT were ongoing with one of the structures which was at ring beam abandoned. \u2022 Under NUSAF-3 UGX.0.962bn was used to support 39 beneficiary sub-groups. I noted that UGX.0.407bn had not been withdrawn from the bank accounts, which negatively affects project implementation. Out of the 4 subprojects inspected I noted poor graveled road sections, not sprayed murram, lack of side drains, poorly leveled platforms, in some projects, seedlings were not yet bought and works were incomplete on CARs \u2022 Under URF, field inspection revealed sections of some roads were poorly maintained with overgrown bushes, washed away murram, swampy road sections and silted culverts affecting the flow of rainwater. In addition I noted cases of non-constitution of district road committees. \u2022 I noted a delay of 21 days in disbursement of YLP funds from the districts to beneficiaries. Further, I noted a recovery rate of only 24% of the funds disbursed in FY 2014/2015 to 2015/2016. \u2022 Under UWEP, I noted a delay of 4 months in disbursement of funds from the districts to beneficiaries. I noted that groups repaid only 25% of the total of disbursement in the FYs 2016/17 to 2017/18. Besides two women groups received project funds which were shared amongst group members. \u2022 Under water for production the district received UGX.0.242bn for water sector activities. I could however not examine the utilisation of part of these funds since the expenditure records were reported as stolen \u2022 Inspection of Amolatar HC IV revealed that the HC has challenges of drug stock outs."], ["8", "Kapelebyong DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.0.167bn representing 1.71% of the budget. Further, the entity remained with unspent balance of UGX.58,139,839 representing an absorption level of 99.4%. \u2022 Out of the eleven outputs including 3 projects inspected (URF, YLP and UWEP programme) (7) were fully achieved while (4) were partially implemented. \u2022 URF field inspection revealed sections of some roads were poorly maintained with lack of offshoots and swampy areas. \u2022 I noted a delay of 121 days in disbursement of YLP funds from the districts to beneficiaries. Further, I noted a recovery rate of only 26% of the funds disbursed in FY 2014/2015 to 2015/2016 while UGX.4,315,875m recovered was not yet transferred to the national revolving"]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 293, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["SN", "LOCAL GOVERNMENTS", "SUMMARY OF KEY FINDINGS \u2022 I noted a delay of 80 days in disbursement of YLP funds from the districts to beneficiaries. Further, I noted a recovery rate of only 24% of the funds disbursed in FY 2015/2016 to 2017/2018. Two youth groups received project funds which were then shared amongst group members. \u2022 Under UWEP, projects funds worth UGX.0.0183bn meant for F/Y 2017/2018, were released to the district in the third quarter of the F/Y 2018/2019 resulting into delayed implementation of the projects. Further, I noted that groups repaid only 39% of the total of disbursement in the FYs 2016/17 to 2018/19. Two women groups received project funds which were shared amongst group members. \u2022 Inspection of Atutur hospital revealed that the hospital structure require a face-lift that estimated at UGX.0.842bn. The hospital also had challenges of understaffing (48%) and drug stock outs."], "type": "table"}}, {"content": "280", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 293, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["9", "Serere DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX. 1.924Bn representing 6% under release. Further, the entity remained with unspent balance of UGX.0.132Bn representing an absorption level of 99.5%. \u2022 Out of the budgeted donor funding of UGX.0.580bn only UGX.0.256bn representing 44% was received. \u2022 Entity owes UGX.0.183bn and UGX.0.0573bn to pensioners and serving staff through pension and salary arrears respectively. \u2022 Under the special audit on teachers\u2019 salaries, 176 employees had accumulated unpaid salary arrears to a tune of UGX.0.351bn. \u2022 Works under UgIFT were ongoing with however there were delays noted on some structures. \u2022 Under NUSAF-3, I inspected 4 subprojects and noted cases of poor colligation of the roads, lack of compactions, lack of sign posts, delayed commencements of some projects and incomplete works on CARs. \u2022 Under URF field inspection, I noted sections of some road sides were poorly maintained with overgrown bushes, lack of off shoots and water logged sections. \u2022 Under YLP, I noted a recovery rate of only 26.5% of the funds disbursed in FY 2014/2015 to 2015/2016. I also noted that youth groups received project funds which were shared amongst group members. \u2022 Under UWEP, I noted that groups repaid only 3.9% of the total of disbursement so far made in the FYs 2016/17 to 2018/19. \u2022 Under water for production the district received UGX.0.442bn for water sector activities; however I noted non-functional water sources."], ["10", "Amuria DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX. 2.171Bn representing 9.05% of the budget. Further, the entity remained with unspent balance of UGX.0.711Bn representing an absorption level of 97%. \u2022 Out of the five projects inspected (UgIFT, URF, NUSAF 3, YLP and UWEP programme) (2) were fully achieved while (3) were partially implemented. \u2022 Out of the budgeted donor funding of UGX.0.928bn only UGX.0.244bn representing 27% was received. \u2022 The district had 72 retired staff that had not accessed the pension payroll by the close of the year under review. \u2022 I noted that the district land title for Block 1, plot 86 and 87 at Okutoi road was missing from the district land registry. \u2022 My special audit on the lack of value for money for Agricultural extension services revealed the funds to a tune of UGX 3,951,680 were mischarged. \u2022 Works under UgIFT were ongoing however I noted incomplete structures and un-cleared surrounding environment. \u2022 Under NUSAF-3 UGX.1.921bn was used to support 67 beneficiary sub-groups out of which 3 subprojects had incomplete works."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 294, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["SN", "LOCAL GOVERNMENTS", "SUMMARY OF KEY FINDINGS fund by the end of the year under review. The unremitted funds were in some cases paid to district councilors and this money was spent on personal business. \u2022 Under UWEP, I noted that groups repaid only 39% of the total of disbursement in the FYs 2017/18 to 2018/19. Further, UGX.5,985,875 was recovered but not transferred to revolving fund by year end. \u2022 Under water for production, I noted non-functional water sources.  \u2022 Entity has 13 heads of departments in acting capacity beyond the statutory period. \u2022 Under capitation grant, I noted discrepancies in the district enrolment figures with the figures for the MoES."], "type": "table"}}, {"content": [["9", "Serere DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX. 1.924Bn representing 6% under release. Further, the entity remained with unspent balance of UGX.0.132Bn representing an absorption level of 99.5%. \u2022 Out of the budgeted donor funding of UGX.0.580bn only UGX.0.256bn representing 44% was received. \u2022 Entity owes UGX.0.183bn and UGX.0.0573bn to pensioners and serving staff through pension and salary arrears respectively. \u2022 Under the special audit on teachers\u2019 salaries, 176 employees had accumulated unpaid salary arrears to a tune of UGX.0.351bn. \u2022 Works under UgIFT were ongoing with however there were delays noted on some structures. \u2022 Under NUSAF-3, I inspected 4 subprojects and noted cases of poor colligation of the roads, lack of compactions, lack of sign posts, delayed commencements of some projects and incomplete works on CARs. \u2022 Under URF field inspection, I noted sections of some road sides were poorly maintained with overgrown bushes, lack of off shoots and water logged sections. \u2022 Under YLP, I noted a recovery rate of only 26.5% of the funds disbursed in FY 2014/2015 to 2015/2016. I also noted that youth groups received project funds which were shared amongst group members. \u2022 Under UWEP, I noted that groups repaid only 3.9% of the total of disbursement so far made in the FYs 2016/17 to 2018/19. \u2022 Under water for production the district received UGX.0.442bn for water sector activities; however I noted non-functional water sources."], ["10", "Amuria DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX. 2.171Bn representing 9.05% of the budget. Further, the entity remained with unspent balance of UGX.0.711Bn representing an absorption level of 97%. \u2022 Out of the five projects inspected (UgIFT, URF, NUSAF 3, YLP and UWEP programme) (2) were fully achieved while (3) were partially implemented. \u2022 Out of the budgeted donor funding of UGX.0.928bn only UGX.0.244bn representing 27% was received. \u2022 The district had 72 retired staff that had not accessed the pension payroll by the close of the year under review. \u2022 I noted that the district land title for Block 1, plot 86 and 87 at Okutoi road was missing from the district land registry. \u2022 My special audit on the lack of value for money for Agricultural extension services revealed the funds to a tune of UGX 3,951,680 were mischarged. \u2022 Works under UgIFT were ongoing however I noted incomplete structures and un-cleared surrounding environment. \u2022 Under NUSAF-3 UGX.1.921bn was used to support 67 beneficiary sub-groups out of which 3 subprojects had incomplete works."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 294, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["SN", "LOCAL GOVERNMENTS", "SUMMARY OF KEY FINDINGS fund by the end of the year under review. The unremitted funds were in some cases paid to district councilors and this money was spent on personal business. \u2022 Under UWEP, I noted that groups repaid only 39% of the total of disbursement in the FYs 2017/18 to 2018/19. Further, UGX.5,985,875 was recovered but not transferred to revolving fund by year end. \u2022 Under water for production, I noted non-functional water sources.  \u2022 Entity has 13 heads of departments in acting capacity beyond the statutory period. \u2022 Under capitation grant, I noted discrepancies in the district enrolment figures with the figures for the MoES."], "type": "table"}}, {"content": "281", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 294, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["11", "Ngora DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX. 0.724Bn representing 4% under release. Further, the entity remained with unspent balance of UGX.0.155Bn representing an absorption level of 99%. \u2022 Out of the five projects inspected (UgIFT, URF, NUSAF 3, YLP and UWEP programme) (2) were fully achieved while (3) were partially implemented. \u2022 Under NUSAF-3 UGX.0.812bn was used to support 27 beneficiary sub-groups. I noted that UGX.0.518bn had not been withdrawn from the bank accounts by the time of audit. \u2022 Under URF field inspection revealed sections of some roads were poorly maintained with silted culverts and lacking headwalls. \u2022 Under YLP, I noted a recovery rate of only 9% of the funds disbursed in FY 2015/2016 to 2018/2019. \u2022 Under UWEP, projects funds worth UGX.0.293 for 26 women groups meant for F/Y 2018/2019 was not received. Further, I noted that groups repaid only 14% of the total of disbursement in the FYs 2016/17 to 2017/18."], ["12", "Kumi MC **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX. 1.069Bn representing 15% under release. Further, the entity remained with unspent balance of UGX.0.288Bn representing an absorption level of 95%. \u2022 Out of the three projects inspected (URF, YLP and UWEP programme) (2) were fully achieved while (1) was not implemented. \u2022 Entity failed to remit deductions worth UGX.14,790,532m to respective banks as loans and UNATU subscriptions. \u2022 Under URF field inspection revealed excess expenditures, some road sections were poorly maintained with overgrown bushes, water logged spots and potholes and blocked road drainages. \u2022 I noted a recovery rate of only 33% of the funds disbursed in FY 2016/2017 to 2017/2018. \u2022 Under UWEP, I noted that groups repaid only 77.4% of the total of disbursement in the FYs 2016/17."], ["13", "Soroti MC **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX. 9.99Bn representing 47%. Further, the entity had overspent balance of UGX.1.645Bn representing an absorption level of 115%. \u2022 Out of the four projects inspected (USMID, URF, YLP and UWEP programme) (1) were fully achieved while (3) were partially implemented. \u2022 Works under USMID, the entity received zero funding for the year under review due to failure to meet the assessment criteria. \u2022 Under URF field inspection revealed excess expenditures, some roads sections lacked drainages hence prone to damage by running water, potholes, some roads were poorly maintained with overgrown bushes, lack of road signposts and low cost sealing. \u2022 Under YLP, I noted a recovery rate of only 21.3% of the funds disbursed in FY 2015/2016 to 2018/2019."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 295, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["SN", "LOCAL GOVERNMENTS", "SUMMARY OF KEY FINDINGS \u2022 Field inspection revealed that Were-Asumuk road had excess expenditure of UGX.96,830,800, and no road signage. Sections of some of the other roads inspected were poorly maintained with overgrown grass, water logging, lack of off shoots and low cost sealing on projects. \u2022 I noted a recovery rate of only 24.75% of the funds disbursed in FY 2015/2016 under the NUSAF project. In a some of the cases reviewed, no recoveries had been done, in some cases, while in others no projects were started. \u2022 Under UWEP, projects funds meant for F/Y 2017/2018, were released to the district in the third quarter of the F/Y 2018/2019 resulting into delayed implementation of the projects. I further noted that groups repaid only 9.33% of the total of disbursement in the FYs 2016/17 to 2017/18. Besides two women groups received project funds. \u2022 Under water for production the district received UGX.0.332bn for water sector activities; however I noted non-functional water sources."], "type": "table"}}, {"content": [["11", "Ngora DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX. 0.724Bn representing 4% under release. Further, the entity remained with unspent balance of UGX.0.155Bn representing an absorption level of 99%. \u2022 Out of the five projects inspected (UgIFT, URF, NUSAF 3, YLP and UWEP programme) (2) were fully achieved while (3) were partially implemented. \u2022 Under NUSAF-3 UGX.0.812bn was used to support 27 beneficiary sub-groups. I noted that UGX.0.518bn had not been withdrawn from the bank accounts by the time of audit. \u2022 Under URF field inspection revealed sections of some roads were poorly maintained with silted culverts and lacking headwalls. \u2022 Under YLP, I noted a recovery rate of only 9% of the funds disbursed in FY 2015/2016 to 2018/2019. \u2022 Under UWEP, projects funds worth UGX.0.293 for 26 women groups meant for F/Y 2018/2019 was not received. Further, I noted that groups repaid only 14% of the total of disbursement in the FYs 2016/17 to 2017/18."], ["12", "Kumi MC **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX. 1.069Bn representing 15% under release. Further, the entity remained with unspent balance of UGX.0.288Bn representing an absorption level of 95%. \u2022 Out of the three projects inspected (URF, YLP and UWEP programme) (2) were fully achieved while (1) was not implemented. \u2022 Entity failed to remit deductions worth UGX.14,790,532m to respective banks as loans and UNATU subscriptions. \u2022 Under URF field inspection revealed excess expenditures, some road sections were poorly maintained with overgrown bushes, water logged spots and potholes and blocked road drainages. \u2022 I noted a recovery rate of only 33% of the funds disbursed in FY 2016/2017 to 2017/2018. \u2022 Under UWEP, I noted that groups repaid only 77.4% of the total of disbursement in the FYs 2016/17."], ["13", "Soroti MC **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX. 9.99Bn representing 47%. Further, the entity had overspent balance of UGX.1.645Bn representing an absorption level of 115%. \u2022 Out of the four projects inspected (USMID, URF, YLP and UWEP programme) (1) were fully achieved while (3) were partially implemented. \u2022 Works under USMID, the entity received zero funding for the year under review due to failure to meet the assessment criteria. \u2022 Under URF field inspection revealed excess expenditures, some roads sections lacked drainages hence prone to damage by running water, potholes, some roads were poorly maintained with overgrown bushes, lack of road signposts and low cost sealing. \u2022 Under YLP, I noted a recovery rate of only 21.3% of the funds disbursed in FY 2015/2016 to 2018/2019."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 295, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["SN", "LOCAL GOVERNMENTS", "SUMMARY OF KEY FINDINGS \u2022 Field inspection revealed that Were-Asumuk road had excess expenditure of UGX.96,830,800, and no road signage. Sections of some of the other roads inspected were poorly maintained with overgrown grass, water logging, lack of off shoots and low cost sealing on projects. \u2022 I noted a recovery rate of only 24.75% of the funds disbursed in FY 2015/2016 under the NUSAF project. In a some of the cases reviewed, no recoveries had been done, in some cases, while in others no projects were started. \u2022 Under UWEP, projects funds meant for F/Y 2017/2018, were released to the district in the third quarter of the F/Y 2018/2019 resulting into delayed implementation of the projects. I further noted that groups repaid only 9.33% of the total of disbursement in the FYs 2016/17 to 2017/18. Besides two women groups received project funds. \u2022 Under water for production the district received UGX.0.332bn for water sector activities; however I noted non-functional water sources."], "type": "table"}}, {"content": "282", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 295, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}, {"content": [["14", "Soroti RRH **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.33m representing 0.4% under release. Further, the entity remained with unspent balance of UGX.0.279Bn representing an absorption level of 97%.  \u2022 Entity received off budget financing of UGX.0.352bn from which UGX.0.218bn was utilized.  \u2022 I noted anomalies in the management of NTR by the entity for examples there were no receipts issues in some cases.  \u2022 Entity deducted PAYE worth UGX.0.891bn and only UGX.0.882bn was remitted to URA.  \u2022 Inspection of Soroti Regional referral hospital revealed that the hospital structure require a face- lift.  \u2022 Soroti Regional referral hospital had challenges of understaffing (23%) and drug stock outs."], ["15", "Otuke DLG **Opinion** Unqualified", "\u2022 There was a shortfall in releases amounting to UGX.0.270Bn representing 1.74% under release. \u2022 Out of the five projects inspected (UgIFT, URF, NUSAF 3, YLP and UWEP programme) (3) were fully achieved while (2) were partially implemented. \u2022 Out of the budgeted donor funding of UGX0.529bn only UGX0.182bn representing 34.4% was received. \u2022 Entity failed to pay pension to respective pensioners worth UGX0.235bn in the year under review \u2022 Entity had 12 pending and on-going court cases, some dating as far back as 2012. None was disposed in the year under review. \u2022 Works under UgIFT that were ongoing with one of the structures at roofing and plastering level were deserted. \u2022 Under NUSAF-3 UGX0.960bn was used to support 35 beneficiary sub-groups. I noted that UGX.0.280bn had not been withdrawn from the bank accounts, which negatively affects project implementation. I also noted poor management and incomplete works on CARs. \u2022 Under URF field inspection revealed sections of some roads were poorly maintained with overgrown grass, silted culverts, lack of off-shoots, water logged sections and poor compaction of murram. \u2022 Under YLP, I noted a recovery rate of only 25.46% of the funds disbursed in FY 2014/2015 to 2015/2016. I noted a delay of 82 days in disbursement of YLP funds from districts to beneficiaries. \u2022 Under UWEP, I noted that groups repaid only 50% of the total of disbursement in the FYs 2015/16 to 2016/2017. Besides two youth groups received project funds but one group disintegrated \u2022 Inspection of Anyalima P/S revealed incomplete and abandoned site works despite contract expiry and the payment of VAT refunds to non-registered VAT contractor."]], "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 296, "document_name": "Annual Consolidated OAG audit reports 2019", "columns": ["SN", "LOCAL GOVERNMENTS", "SUMMARY OF KEY FINDINGS \u2022 Under UWEP, I noted that funds disbursed to 22 groups, only 21.7% of the total of disbursement in the FYs 2016/17 to 2018/19 has been recovered. \u2022 I noted insufficient equipment\u2019s / facilities in garbage collection and disposals."], "type": "table"}}, {"content": "283", "metadata": {"headings": [{"headings_0": {"content": "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS", "page": 231, "level": 3}}], "page": 296, "document_name": "Annual Consolidated OAG audit reports 2019", "type": "paragraph"}}], "table_of_contents": [{"content": ["TABLE OF CONTENTS", "ABBREVIATIONS AND 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", "Summary of Audit Results 2 1.3", "    1.3.1 General Performance - 2", "    1.3.2 Summary of Opinions - 3", "PART 2: CONSOLIDATED FINANCIAL STATEMENTS - 4", "  2.0 REPORT OF THE AUDITOR GENERAL ON THE CONSOLIDATED FINANCIAL STATEMENTS - 4", "2.1 REPORT AND OPINION OF THE AUDITOR GENERAL ON THE GOVERNMENT OF UGANDA", "CONSOLIDATED FINANCIAL STATEMENTS - 4", "Qualified Opinion - 4", "Basis of Qualified Opinion - 4", "    2.1.1 Mischarge of Expenditure \u2013 UGX.384,756,648,951 - 4", "    2.1.2 Unaccounted for Advances \u2013 UGX.19,522,744,433 - 4", "Key Audit Matter - 5", "    2.1.3 Implementation of the approved budget - 5", "Emphasis of Matter - 8", "    2.1.4 Expenditure on unbudgeted Domestic Arrears \u2013 UGX.266,993,803,318 - 8", "    2.1.5 Payables \u2013 UGX.3,334,699,967,995 - 8", "    2.1.6 Contingent Liabilities \u2013 UGX.10,782,352,998,158 - 9", "    2.1.7 Classified Expenditure - 9", "Other Matters - 9", "    2.1.8 Failure to Budget for Domestic Arrears - 9", "    2.1.9 Garnishee of Government funds - 9", "    2.1.10 Non-recapitalization of the Uganda Communications Employees\u2019 Pension Scheme - 10", "    2.1.11 Duplication of investments in ICT infrastructure - 11", "    2.1.12 Entities due for winding up - 12", "    2.1.13 Revenue leakages due to non-collaboration of Government entities - 13", "    2.1.14 Licensing of Gaming and Betting houses - 14", "    2.1.15 Un approved salary structures and organograms - 14", "    2.1.16 Continued expenditure off the IFMS - UGX.439,655,032,782 for votes on the IFMS - 15"], "page": 3}, {"content": ["2.1.17 Failure by the Government to Pay Taxes for Organizations granted tax benefits - UGX.863,238,754,669", "15", "Other Information - 16", "Responsibilities of Management for the Consolidated Financial Statements - 16", "Auditor\u2019s Responsibilities for the Audit of the Consolidated Financial Statements - 17", "Other Reporting Responsibilities - 18", "Report on the Audit of Compliance with Legislation - 18", "2.2 REPORT AND OPINION OF THE AUDITOR GENERAL ON THE GOVERNMENT OF UGANDA", "CONSOLIDATED FINANCIAL STATEMENTS OF DISTRICT LOCAL GOVERNMENTS FOR THE YEAR ENDED 30TH", "JUNE 2019 - 19", "Qualified Opinion - 19", "Basis for Qualified Opinion - 19", "    2.2.1 Unsupported adjustments to the statement of changes in equity worth UGX.13,882,193,895 - 19", "    2.2.2 Unsupported adjustment in the Cash-flow statement - 19", "    2.2.3 Inconsistencies in the reported figures - 19", "Key Audit Matters - 20", "    2.2.4 Implementation of Budget approved by Parliament - 21", "Emphasis of Matter - 23", "    2.2.5 Inadequate controls surrounding management of payables - 23", "    2.2.6 Unpaid Pension and Gratuity Arrears - 23", "Other Matters - 23", "    2.2.7 Funds not accounted for - 23", "    2.2.8 Borrowings - 24", "Other Reporting Responsibilities - 24", "2.3 REPORT AND OPINION OF THE AUDITOR GENERAL ON THE GOVERNMENT OF UGANDA", "CONSOLIDATED FINANCIAL STATEMENTS OF MUNICIPAL COUNCILS FOR THE YEAR ENDED 30TH JUNE", "2019 \u2026 - 26", "Qualified Opinion - 26", "Basis for Qualified Opinion - 26", "    2.3.1 Misstatements in the consolidated financial statements - 26", "Key Audit Matters - 27", "    2.3.2 Implementation of Budget Approved by Parliament - 27", "Emphasis of Matter - 29", "    2.3.3 Payables, Borrowings and Pension Liabilities - 29", "    2.3.4 Receivables - 30", "    2.3.5 Unspent Salary balances - 30", "Other Matters - 31", "    2.3.6 Under Staffing - 31", "iv"], "page": 4}, {"content": ["    2.3.7 Failure to consolidate all the Municipal Councils - 31", "Other Reporting Responsibilities - 32", "2.4 REPORT OF THE AUDITOR GENERAL ON THE GOVERNMENT OF UGANDA CONSOLIDATED STATEMENT", "OF FINANCIAL PERFORMANCE OF PUBLIC CORPORATIONS AND STATE ENTERPRISES FOR THE YEAR ENDED", "30 TH JUNE 2019 - 33", "PART 3: RESULTS OF AUDIT OF THEMATIC AND FOCUS AREAS - 42", "Performance of the Approved 2018/19 Budget 42 3.1", "    3.1.1 Performance at the national level and selected MDAs - 42", "    3.1.2 Performance in the Local Governments - 45", "Compensations of Project Affected Persons (PAPS) and Acquisition of Right of Way 47 3.2", "Management of the National Backbone Project 48 3.3", "    3.3.1 Limited use of the NBI/EG infrastructure - 49", "    3.3.2 Limited use of the National data centre services - 49", "    3.3.3 Coverage of the NBI - 49", "    3.3.4 Underutilisation of the internet bandwidth - 49", "    3.3.5 Cost of the internet bandwidth - 50", "  3.4 Implementation of Performance Management Initiatives for Public Servants - 50", "Management of Petroleum Revenues and Recoverable Costs 51 3.5", "Management of Domestic Arrears 53 3.6", "    3.6.1 Outstanding domestic arrears - 53", "    3.6.2 Inadequate budget for domestic arrears - 54", "Management of Uganda Road Fund in Local Governments 54 3.7", "    3.7.1 Funding and expenditure of road fund activities - 54", "  3.8 Management of the Youth Livelihood Program (YLP) - 55", "    3.8.1 YLP at Ministry Level - 55", "    3.8.2 Youth Livelihood Programme in the Local Governments - 55", "  3.9 Management of Uganda Inter-Governmental Fiscal Transfers (UgIFT) - 57", "    3.9.1 Financial audit of UgIFT in Local Governments - 57", "    3.9.2 VFM report on UgIFT for the financial year 2017/18 - 59", "  3.10 Implementation of the Northern Uganda Social Action Fund III by Local Governments - 61", "  3.11 Management of Water for Consumption and Production in Local Governments - 62", "  3.12 Management of Uganda Women Entrepreneurship Programme in Local Governments - 63", "PART 4: RESULTS OF VALUE FOR MONEY AND SPECIALISED AUDITS - 65", "VALUE FOR MONEY AND SPECIALISED AUDITS 65 4.0", "Value for Money Audit on production and productivity of the coffee sub sector 65 4.1", "4.2 Value for Money Audit on the effectiveness of import inspections by UNBS in the regulation and", "enforcement of product standards - 66"], "page": 5}, {"content": ["Value for Money Audit on implementation of Uganda Skills Development Facility (SDF) by the Private 4.3", "Sector Foundation Uganda - 67", "Value for Money Audit on licensing and enforcement of standards in downstream petroleum operations 4.4", "by Ministry of Energy and Mineral Development - 68", "Budget performance\u2013An assessment of delivery of planned outputs by the Works and Transport Sector 4.5", "during the financial year 2018/19 - 69", "4.6 Budget performance \u2013 an assessment of delivery of planned outputs by the Health Sector during the", "financial year 2018/19 - 71", "Value for Money Audit on compensation of Project Affected Persons under the Karuma and Isimba 4.7", "Hydropower Projects and associated transmission lines - 72", "Value for Money Audit on the impact of Uganda Reproductive Health Voucher Project implemented by 4.8", "the Ministry of Health - 74", "Regulation and promotion of safe and reliable maritime services in the Water Transport Sub-Sector 76 4.9", "  4.10 Implementation of Kalangala Infrastructure Services Project (KIS) - 77", "4.11 Follow-up report on the Value for Money Audit on implementation of National Content in the oil and gas", "sector - 80", "Baseline Value for Money audit of the Uganda Inter Governmental Fiscal Transfer Programme 81 4.12", "4.13 Value for Money audit of the Uganda Support to Municipal Infrastructure Development \u2013Additional", "Funding (USMID-AF) programme for the financial year 2017/18 - 83", "PART 5: SUMMARY OF ENGINEERING AUDITS - 84", "5.0 Audit of infrastructure projects during the financial year 2018-2019 implemented by Ministries", "Departments and Agencies - 84", "Technical/Engineering Audit of the rehabilitation and expansion of Kayunga and Yumbe hospitals 84 5.1", "    5.1.1 Kayunga hospital - 85", "    5.1.2 Yumbe hospital - 86", "5.2 Engineering Audit of a selected sample of road and bridge Projects implemented by Ministry of Works", "and Transport during the financial year 2018/19 - 87", "Technical/ Engineering Audit of the two projects implemented by Uganda Civil Aviation Authority 5.3", "(UCAA) - 91", "    5.3.1 Design and build of Entebbe International Airport upgrading and expansion project - 91", "    5.3.2 Modification of the Passenger Terminal Building at Entebbe International Airport - 94", "Engineering Audit of a selected sample of road development, bridge, rehabilitation and maintenance 5.4", "projects implemented by Uganda National Roads Authority (UNRA) during the year - 96", "Key Audit Findings - 97", "Technical/Engineering Audit of the construction of staff houses in selected health facilities in seven 5.5", "districts of Karamoja Region I.E Kaabong, Kotido, Abim, Moroto, Napak, Amudat and Nakapiripirit under the", "Karamoja Region Staff Housing Project (KRSHP) - 101", "PART 6: SECTORAL AND LOCAL GOVERNMENTS CROSS CUTTING FINDINGS - 104", "  6.0 KEY SECTORAL FINDINGS AND SUMMARY OF CROSS CUTTING ISSUES - 104", "  6.1 Agriculture Sector - 104"], "page": 6}, {"content": ["  6.2 Justice Law and Order Sector - 104", "Public Administration Sector 105 6.3", "  6.4 Public Sector Management - 107", "  6.5 Energy Sector - 108", "  6.6 Security Sector - 110", "  6.7 Lands Sector - 111", "  6.8 Accountability Sector - 112", "  6.9 Information Communication Technology Sector - 112", "  6.10 Trade Sector - 113", "  6.11 Gender and Social Development Sector - 113", "  6.12 Cross cutting findings in Local Governments - 114", "ANNEXURES - 115", "ANNEXURE 1: OTHER INFORMATION, ACCOUNTING OFFICER\u2019S AND MY RESPONSIBILITIES - 115", "ANNEXURE II: SUMMARY ENTITY FINDINGS AND OPINIONS - 117", "ANNEXURE III: SUMMARY FINDINGS OF LOCAL GOVERNMENTS - 218", "ANNEXURE IV: REPORTS AND CONSOLIDATED GOVERNMENT OF UGANDA FINANCIAL STATEMENTS - 284"], "page": 7}, {"content": ["Table 1: Status of Audit performance for audit year 2019 - 2", "Table 2: Summary of Opinions - 3", "Table 3: Trend of Opinions for the last three years - 3", "Table 4: Showing budget performance findings - 6", "Table 5: Showing Inconsistencies in reported figures - 20", "Table 6: Showing differences in budget figures reported - 20", "Table 7: Showing Budget performance findings in districts - 21", "Table 8: Showing unaccounted for funds in districts - 24", "Table 9: Showing Misstatements in the consolidated financial statements of Municipal councils - 26", "Table 10: Showing budget performance findings in Municipalities - 28", "Table 11: Showing Payables, Borrowings and Pension Liabilities in Municipalities - 30", "Table 12: Showing Staffing Levels - 31", "Table 13: Showing Un-consolidated Municipalities - 31", "Table 14: Showing entities not Consolidated, but Disclosed in the consolidated summary statement - 33", "Table 15: Showing entities not reported or disclosed in the consolidated summary statement - 34", "Table 16: Showing Profitability of Enterprises - 36", "Table 17: Showing Return on Assets - 37", "Table 18: Showing Enterprise Liquidity - 39", "Table 19: Showing Enterprise Gearing - 40", "Table 20: Showing Enterprises' ability to service loan obligations - 41", "Table 21: Showing revenue performance of local governments - 45", "Table 22: Showing Levels of absorption of funds by Local governments - 46", "Table 23: Showing trend of domestic arrears - 53", "Table 24: Showing performance per category of works - 54", "Table 25: Showing unrecovered YLP funds - 56", "Table 26: Showing Non-Functional water facilities - 62", "Table 27: Showing Summary of Engineering Audits undertaken - 84", "Table 28: Showing Projects without adequate feasibility studies - 87", "Table 29: Showing findings from inspection of road works - 90", "Table 30: Showing results of assessment of quality of works - 91", "Table 31: Development and rehabilitation of projects - 96", "Table 32: Showing maintenance projects at Jinja Station - 97", "Table 33: Showing Maintenance projects at Hoima station - 97", "Table 34: Showing Unnecessary items in BOQs - 98", "Table 35: Showing Avoidable Interest on advance payments - 99", "Table 36: Showing delayed Payments to contractors - 99", "Table 37: Showing increase in project costs due to payments in foreign currencies - 99", "Table 38: Showing overpayments on excess quantities - 100", "Table 39: Showing Outstanding defects - 100", "Table 40: Showing Overpayments on the project for construction of staff houses in selected health facilities - 103", "LIST OF FIGURES", "Figure 1: Showing summary of opinions for the last 3 years - 3", "Figure 2: Extent of implementation of planned activities - 44", "Figure 3: Showing Contribution of each revenue source for Local Governments - 45", "Figure 4: Showing trend of domestic arrears for a period of three years - 53"], "page": 8}]}